919013--3/17/2008--WAVE_SYSTEMS

related topics

{product, market, service}

{control, financial, internal}

{interest, director, officer}

{stock, price, share}

{product, liability, claim}

{product, candidate, development}

{operation, international, foreign}

{system, service, information}

{property, intellectual, protect}

{personnel, key, retain}

{cost, operation, labor}

{cost, contract, operation}

We have a history of net losses and expect net losses will continue. If we continue to operate at a loss, our business will not be financially viable. We may not be able to fund our operations and continue as a going concern. We may be unable to raise the $12.7 million of additional cash flow, which is necessary to continue as a going concern for the next twelve months. Our market is in the early stage of development so we are unable to accurately ascertain the size and growth potential for revenue in such a market. Wave is not established in the industry so we may not be accepted as a supplier or service provider to the market. Our products have not been accepted as industry standards, which may slow their sales growth. If we do not keep up with technological changes, our product development and business growth will suffer. We are subject to risks relating potential security breaches of our software products. Competition and competing technologies may render some or all of our products non-competitive or obsolete. We have a high dependence on relationships with strategic partners that must continue or our ability to successfully produce and market our products will be impaired. Product defects or development delays may limit our ability to sell our products. If we lose our key personnel, or fail to attract and retain additional personnel, we will be unable to continue to develop our products and technology. We have a limited ability to protect our intellectual property rights and others could infringe on or misappropriate our proprietary rights. Regulation of international transactions may limit our ability to sell our products in foreign markets. Our stock price is volatile. We may be subject to conflicts of interest that could adversely slow our corporate governance process. Governmental regulation may slow our growth and decrease our profitability. If we make any acquisitions, we will incur a variety of costs and may never realize the anticipated benefits. If our common stock ceases to be listed for trading on the NASDAQ Global Market, it may harm our stock price and make it more difficult to sell shares.

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919013--3/17/2008--WAVE_SYSTEMS_CORP