Wave Systems Corp.

(NASDAQ:WAVX)

	Sep 30, 2008	Jun 30, 2008	Mar 31, 2008	Dec 31, 2007
Operating revenue
Total Revenue	1,835	1,985	1,699	1,875
Operating Revenue	1,835	1,985	1,699	1,875
Adjustments To Revenue	—	—	—	—
Cost Of Sales	102	151	92	117
Cost Of Sales With Depreciation	207	240	177	232
Gross Operating Profit	1,733	1,834	1,607	1,758
Operating Expenses
Research And Development Expenses	3,177	3,145	3,253	2,871
Selling General And Administrative Expenses	4,049	4,244	4,297	4,130
Advertising Expenses	—	—	—	—
Operating Income Before Depreciation	-5,493	-5,555	-5,943	-5,242
Operating Income	-5,598	-5,643	-6,029	14,929
Depreciation	105	88	86	115
Depreciation Unreconciled	—	—	—	—
Amortization	—	—	—	—
Amortization Of Intangibles	—	—	—	—
Operating Income After Depreciation	-5,598	-5,643	-6,029	-5,357
Non Operating Expenses
Interest Expense	8	—	—	—
Pre Tax Income	-5,605	-5,640	-6,010	-5,288
Income Taxes	—	—	—	—
Minority Interest	—	—	—	—
Income Before Income Taxes	—	—	—	—
Net Income From Continuing Operations	-5,605	-5,640	-6,010	-5,288
Net Income From Discontinued Operations	—	—	—	—
Net Income From Total Operations	-5,605	-5,640	-6,010	-5,288
Non Recurring Events
Extraordinary Income Losses	—	—	—	—
Income From Cummulated Effect Of Accounting Changes	—	—	—	—
Income From Tax Loss Carryforward	—	—	—	—
Other Gains And Losses	—	—	—	—
Total Net Income	-5,605	-5,640	-6,010	-5,288
Normalized Income	-5,605	-5,640	-6,010	-5,288
NetIncome Available For Common	-5,605	-5,640	-6,010	-5,288
Preferred Dividends	—	—	—	—
Excise Taxes	—	—	—	—

	Dec 31, 2007	Dec 31, 2006	Dec 31, 2005	Dec 31, 2004
Operating revenue
Total Revenue	6,307	3,116	1,018	209
Operating Revenue	6,307	3,116	1,018	209
Adjustments To Revenue	—	—	—	—
Cost Of Sales	456	321	-115	-703
Cost Of Sales With Depreciation	812	984	727	152
Gross Operating Profit	5,851	2,796	1,133	912
Operating Expenses
Research And Development Expenses	10,558	8,486	6,938	6,853
Selling General And Administrative Expenses	15,223	12,598	11,560	12,255
Advertising Expenses	—	—	—	—
Operating Income Before Depreciation	-19,930	-18,289	-17,364	-18,196
Operating Income	—	—	—	—
Depreciation	356	663	842	855
Depreciation Unreconciled	—	—	—	—
Amortization	—	—	—	—
Amortization Of Intangibles	—	—	—	—
Operating Income After Depreciation	-20,286	-18,952	-18,206	-19,051
Non Operating Expenses
Interest Expense	—	—	—	—
Pre Tax Income	-19,952	-18,785	-17,562	-14,498
Income Taxes	—	—	—	—
Minority Interest	—	—	—	—
Income Before Income Taxes	—	—	—	—
Net Income From Continuing Operations	-19,952	-18,785	-17,562	-14,498
Net Income From Discontinued Operations	—	—	—	—
Net Income From Total Operations	-19,952	-18,785	-17,562	-14,498
Non Recurring Events
Extraordinary Income Losses	—	—	—	—
Income From Cummulated Effect Of Accounting Changes	—	—	—	—
Income From Tax Loss Carryforward	—	—	—	—
Other Gains And Losses	—	—	—	—
Total Net Income	-19,952	-18,785	-17,562	-14,498
Normalized Income	-19,952	-18,785	-17,562	-14,197
NetIncome Available For Common	-19,952	-18,785	-17,562	-14,498
Preferred Dividends	—	—	—	—
Excise Taxes	—	—	—	—