Wave Systems (WAVX) 10-Q 8 Aug 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Jun. 30, 2014	Aug. 05, 2014	Aug. 05, 2014
		Common Class A [Member]	Common Class B [Member]
Entity Registrant Name	'WAVE SYSTEMS CORP	'	'
Entity Central Index Key	'0000919013	'	'
Document Type	'10-Q	'	'
Document Period End Date	30-Jun-14	'	'
Amendment Flag	'false	'	'
Current Fiscal Year End Date	'--12-31	'	'
Entity Current Reporting Status	'Yes	'	'
Entity Filer Category	'Smaller Reporting Company	'	'
Entity Common Stock, Shares Outstanding	'	45,895,118	8,885
Document Fiscal Year Focus	'2014	'	'
Document Fiscal Period Focus	'Q2	'	'

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Jun. 30, 2014	Dec. 31, 2013
Current Assets:	'	'
Cash and cash equivalents	$8,524,138	$2,120,102
Accounts receivable, net of allowance for doubtful accounts of $-0- at March 31, 2014 and December 31, 2013	2,076,696	2,730,077
Pledged receivables	'	1,683,188
Prepaid expenses and other current assets	407,754	488,656
Total current assets	11,008,588	7,022,023
Property and equipment, net	491,030	596,820
Amortizable intangible assets, net	2,299,573	2,590,920
Goodwill	1,448,000	1,448,000
Other assets	122,519	167,146
Total Assets	15,369,710	11,824,909
Current Liabilities:	'	'
Secured borrowings	'	1,430,710
Accounts payable and accrued expenses	4,259,732	6,789,274
Deferred revenue	6,317,784	6,996,239
Total current liabilities	10,577,516	15,216,223
Other long-term liabilities	60,812	78,618
Royalty liability	4,458,368	4,509,629
Long-term deferred revenue	814,234	1,003,614
Total liabilities	15,910,930	20,808,084
Stockholders' Deficit:	'	'
Capital in excess of par value	423,329,255	407,907,019
Accumulated deficit	-424,329,515	-417,240,480
Total Stockholders' Deficit	-541,220	-8,983,175
Total Liabilities and Stockholders' Deficit	15,369,710	11,824,909
Common Class A [Member]	'	'
Stockholders' Deficit:	'	'
Common Stock	458,951	350,197
Common Class B [Member]	'	'
Stockholders' Deficit:	'	'
Common Stock	$89	$89

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Accounts receivable, allowance for doubtful accounts (in dollars)	$0	$0
Common Class A [Member]	'	'
Common stock, par value (in dollars per share)	$0.01	$0.01
Common stock, Authorized shares	150,000,000	150,000,000
Common stock, shares issued	35,019,740	45,895,118
Common stock, shares outstanding	45,895,118	35,019,740
Common Class B [Member]	'	'
Common stock, par value (in dollars per share)	$0.01	$0.01
Common stock, Authorized shares	13,000,000	13,000,000
Common stock, shares issued	8,885	8,885
Common stock, shares outstanding	8,885	8,885

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Net revenues:	'	'	'	'
Licensing and maintenance	$4,439,820	$6,133,304	$9,772,359	$11,127,030
Services	'	608,938	'	1,408,938
Total net revenues	4,439,820	6,742,242	9,772,359	12,535,968
Operating expenses:	'	'	'	'
Licensing and maintenance - cost of net revenues	338,519	474,311	651,347	2,699,910
Services - cost of net revenues	'	105,155	'	212,516
Selling, general, and administrative	5,381,167	6,682,719	10,583,135	13,861,722
Research and development	2,474,413	2,912,128	5,539,086	6,761,110
Impairment of goodwill	'	'	'	2,590,000
Total operating expenses	8,194,099	10,174,313	16,773,568	26,125,258
Operating loss	-3,754,279	-3,432,071	-7,001,209	-13,589,290
Other income (expense):	'	'	'	'
Net currency transaction (loss) gain	-2,238	-8,363	-3,949	-6,732
Net interest expense	-39,013	-49,863	-83,877	-108,030
Total other income (expense), net	-41,251	-58,226	-87,826	-114,762
Net loss	($3,795,530)	($3,490,297)	($7,089,035)	($13,704,052)
Loss per common share - basic and diluted (in dollars per share)	($0.09)	($0.12)	($0.18)	($0.50)
Weighted average number of common shares outstanding (in shares)	41,684,076	28,317,577	40,094,319	27,326,711

Consolidated_Statement_of_Stoc

Consolidated Statement of Stockholders' Deficit (USD $)	Common Class A [Member]	Common Class B [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
	Common Stock [Member]	Common Stock [Member]
Balance at Dec. 31, 2013	$350,197	$89	$407,907,019	($417,240,480)	($8,983,175)
Balance (in shares) at Dec. 31, 2013	35,019,740	8,885	'	'	'
Increase (Decrease) in Stockholders' Equity	'	'	'	'	'
Net loss	'	'	'	-7,089,035	-7,089,035
Issuance of Class A common stock at prices ranging from $0.90 - $1.39 per share, less issuance costs of $171,168	54,105	'	5,328,904	'	5,383,009
Issuance of Class A common stock at prices ranging from $0.90 - $1.39 per share, less issuance costs of $171,168 (in shares)	5,410,450	'	'	'	'
Issuance of Class A Common Stock at $0.9725 per share, less issuance costs of $103,133	52,256	'	9,022,524	'	9,074,780
Issuance of Class A Common Stock at $0.9725 per share, less issuance costs of $103,133 (in shares)	5,225,560	'	'	'	'
Warrants exercised at $2.20 -$2.32 and $1.12 - $4.62 per share for the year 2012 and 2011 respectively	1,339	'	120,523	'	121,862
Warrants exercised at $2.20 -$2.32 and $1.12 - $4.62 per share for the year 2012 and 2011 respectively (in shares)	133,914	'	'	'	'
Shares of Class A Common Stock Issued pursuant to the Wave Employee Stock Purchase Plan at $1.29, $3.40 and $9.316 per share for the year 2013, 2012 and 2011, respectively	1,054	'	98,441	'	99,495
Issuance of Class A Common Stock pursuant to the Wave Employee Stock Purchase Plan at $ 0.9435 (in shares)	105,454	'	'	'	'
Stock based compensation	'	'	851,844	'	851,844
Balance at Jun. 30, 2014	$458,951	$89	$423,329,255	($424,329,515)	($541,220)
Balance (in shares) at Jun. 30, 2014	45,895,118	8,885	'	'	'

Consolidated_Statement_of_Stoc1

Consolidated Statement of Stockholders' Deficit (Parenthetical) (USD $)	6 Months Ended
	Jun. 30, 2014
Consolidated Statement of Stockholders' Deficit	'
Issuance of Class A Common Stock, per share, Lower range	$0.90
Issuance of Class A Common Stock, per share, Upper range	$1.39
Issuance of Class A Common Stock, issuance costs (in dollars)	$171,168
Issuance of Class A Common Stock, issuance costs (in dollars)	$853,784
Warrants exercised (in dollars per share)	0.91
Shares of Class A Common Stock Issued pursuant to the Wave Employee Stock Purchase Plan, per share	$0.94
Issuance of Class A Common Stock, per share	$1.90

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Cash flows from operating activities:	'	'
Net loss	($7,089,035)	($13,704,052)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Depreciation and amortization	461,899	547,269
Compensation associated with issuance of stock options	851,844	1,106,546
Impairment of goodwill and intangible assets	'	4,205,000
Accretion of royalty liability	48,650	40,700
Changes in assets and liabilities:	'	'
Decrease in accounts receivable	905,859	1,644,854
Decrease (increase) in prepaid expenses and other current assets	80,902	-97,144
Increase in other assets	44,627	85,668
Decrease in accounts payable and accrued expenses	-2,529,542	-262,314
(Decrease) increase in deferred revenue Decrease in royalty liability	-867,835	-197,446
Decrease in royalty liability	-99,911	-75,096
(Decrease) increase in other long-term liabilities	-17,806	2,587
Net cash used in operating activities	-8,210,348	-6,703,428
Cash flows from investing activities:	'	'
Acquisition of property and equipment	-64,762	-136,148
Net cash used in investing activities	-64,762	-136,148
Cash flows from financing activities:	'	'
Net proceeds from issuance of common stock	14,457,789	5,473,428
Proceeds from exercise of warrants	121,862	'
Proceeds from employee stock purchase plans	99,495	171,796
Proceeds from employee stock option exercises	'	42,039
Payments on capital lease obligation	'	-38,157
Net cash provided by financing activities	14,679,146	5,649,106
Net increase (decrease) in cash and cash equivalents	6,404,036	-1,190,470
Cash and cash equivalents at beginning of period	2,120,102	2,112,769
Cash and cash equivalents at end of period	8,524,138	922,299
Cash paid during the period for:	'	'
Interest	$60,209	$74,299

Critical_Accounting_Policies

Critical Accounting Policies	6 Months Ended
	Jun. 30, 2014
Critical Accounting Policies	'
Critical Accounting Policies	'
	1.Critical Accounting Policies
	Wave’s discussion and analysis of its financial condition and results of operations are based on the Company’s consolidated financial statements which have been prepared in accordance with United States generally accepted accounting principles (“GAAP”). The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported revenues and expenses during the reporting periods. On an ongoing basis management evaluates its estimates and judgments, including those related to revenue recognition, accounts receivable reserves, depreciation and amortization, valuation of long-lived, and intangible assets, goodwill, and software development costs, contingencies and share based compensation.  Management bases its estimates on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.
	A detailed description of the accounting policies deemed critical to the understanding of the consolidated financial statements is included in the notes to Wave’s audited financial statements for the year ended December 31, 2013, included in its Form 10-K filed with the Securities and Exchange Commission on March 14, 2014.
	Revenue Recognition — Wave’s business model targets revenues from various sources including: licensing of the EMBASSY Trust Suite, Safend’s endpoint data loss protection suite, eTMS software products and development contracts.  Many of these sales arrangements include multiple-elements and/or require significant modification or customization of Wave’s software.
	Wave recognizes revenue when it is realized or realizable and earned. Wave considers revenue realized or realizable and earned when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and collectability is reasonably assured.  In addition to the aforementioned general policy, the following are the specific revenue recognition policies for each major category of revenue.
	Licensing and Maintenance
	Wave receives revenue from licensing its EMBASSY Trust Suite software through distribution arrangements with its OEM partners, software development and other services.  Wave’s distribution arrangements also give rise to separate software license upgrade agreements with the end users of the products distributed by the OEMs.  Wave applies software revenue recognition guidance to all transactions except those where no software is involved.  Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable and collectability is reasonably assured.  Persuasive evidence is generally a binding purchase order or license agreement.  Delivery occurs when product is shipped for its OEM distribution arrangements, or delivered via a license key for our license upgrade agreements.
	Wave enters into perpetual software license agreements through direct sales to customers and indirect sales through its OEM partners, distributors and resellers with the end users of the products distributed by the OEMs.  Wave has defined its two classes of end user customers as large and small based on those with orders in excess of 5,000 licenses and those with less than 5,000 licenses, respectively.  These license upgrade agreements generally include a maintenance component.  For arrangements with multiple-elements, including software licenses, maintenance and/or services, revenue is allocated and deferred in amounts equivalent to the vendor specific objective evidence (“VSOE”) of fair value for the undelivered elements and the difference between the total arrangement fee and the amount deferred for the undelivered elements is recognized as license revenue.  VSOE of fair value is based upon the price for which the undelivered element is sold separately.
	Wave has VSOE of fair value of maintenance for its small class of customers based on independent maintenance renewals.  Wave lacks sufficient independent maintenance renewals to establish VSOE for its large customer class.  As a result, for the small customer class, Wave allocates the arrangement consideration to the elements in multi-element arrangements using the residual method.  Under the residual method, the VSOE of the undelivered elements is deferred and the remaining portion of the arrangement fee for perpetual licenses is recognized as revenue upon delivery of the software, assuming all other revenue recognition criteria are met.
	When VSOE of fair value for the undelivered elements does not exist, as is the case for Wave’s large customer class, the entire arrangement fee is recognized ratably over the performance period as licensing and maintenance revenue.
	Wave’s deferred revenue consists of the unamortized maintenance for sales to its small class of customers and bundled license and maintenance arrangements where VSOE does not exist.
	Safend receives revenue from licensing its endpoint data loss protection products and services through its distribution channels.  Safend applies software revenue recognition guidance to all transactions except those where no software is involved.  Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable and collectability is reasonably assured.  Persuasive evidence is generally a binding purchase order or license agreement.  Delivery occurs when product is delivered via a license key.
	Safend enters into perpetual software license agreements through direct sales to customers and indirect sales through its OEM partners, distributors and resellers.  These license arrangements, generally also include a maintenance component.  For arrangements with multiple-elements, including software licenses, maintenance and/or services, revenue is allocated and deferred in amounts equivalent to the VSOE of fair value for the undelivered elements and the difference between the total arrangement fee and the amount deferred for the undelivered elements is recognized as licensing revenue.  VSOE of fair value is based upon the price for which the undelivered element is sold separately.
	Safend has VSOE of fair value of maintenance for its Protector product.  As a result Safend allocates the arrangement consideration among the elements in its multi-element arrangements using the residual method.  Under the residual method, the VSOE of the undelivered elements is deferred and the remaining portion of the arrangement fee for perpetual licenses is recognized as revenue upon delivery of the software, assuming all other revenue recognition criteria are met.  When VSOE of fair value for the undelivered elements does not exist, as is the case for maintenance for its Encryptor, Inspector, Discover, Reporter and Auditor products, the entire arrangement fee is recognized ratably over the performance period as licensing and maintenance revenue.
	Licensing and maintenance - cost of net revenues includes customer support personnel costs, foreign tax withholdings, amortization and impairment expense for the developed technology intangible asset, costs associated with providing consulting services and related share-based compensation expense.
	Services
	Services revenue includes revenue earned from fixed-price modifications to a contract awarded by the United States Department of Defense.  Revenue from time and material service contracts is recognized as the services are provided. Revenue from fixed price, long-term service or development contracts is recognized using the percentage of completion method or the completed contract method.  The determination between completed contract method and the percentage of completion method is based on the ability to estimate. The Company measures the percentage of completion by reference to the proportion of contract hours incurred for work performed to date to the estimated total contract hours expected to be incurred.  Losses on fixed price contracts are recognized during the period in which such losses are identified.
	Services - cost of net revenues includes non-recurring government time and materials costs incurred in connection with a contract with the United States Department of Defense and related share-based compensation expense.
	Valuation of Goodwill - We review goodwill for impairment annually and whenever events or changes in circumstances indicate the fair value of a reporting unit is more likely than not below its carrying value. If the implied fair value of the reporting unit’s goodwill is less than the carrying value, the difference is recorded as an impairment loss.
	Valuation of Long Lived Assets - We review purchased intangible assets with finite lives for impairment whenever events or changes in circumstances indicate the carrying value of an asset group may not be recoverable. Recoverability of asset groups is assessed based on the estimated undiscounted future cash flows expected to be generated by the asset group, including its ultimate disposition. If the sum of the undiscounted cash flows is less than the carrying value, the impairment to be recognized is measured by the amount by which the carrying amount of the asset group exceeds the fair value of the asset group. Assets to be disposed of are reported at the lower of the carrying amount or fair value, less costs to sell.
	Capitalized internal-use software development costs - The Company follows the provisions of ASC Topic 350-40, Intangibles Goodwill and Other—Internal Use Software. ASC Topic 350-40 provides guidance for determining whether computer software is internal-use software and also provides guidance on capitalization of the costs incurred for computer software developed or obtained for internal use.  These capitalized costs are related to Wave’s cloud platform that is hosted by the Company and accessed by its clients on a subscription basis.  The Company expenses all costs incurred during the preliminary project stage of development and capitalizes the costs incurred during the application development stage. Costs incurred relating to upgrades and enhancements to the software are capitalized if it is determined that these upgrades or enhancements add additional functionality to the software. Costs incurred to improve and support products after they become available are charged to expense as incurred.  The Company records amortization of the software on a straight-line basis over five years, which is the estimated useful life of the software.  At each balance sheet date, management evaluates the unamortized capitalized software costs for potential impairment by comparing the balance to the net realizable value of the products.
	Accounting for Transfers of Financial Assets - We derecognize financial assets, specifically accounts receivable, when control has been surrendered in compliance with ASC Topic 860, Transfers and Servicing. Transfers of accounts receivable that meet the requirements of ASC 860 for sale accounting treatment are removed from the balance sheet and gains or losses on the sale are recognized. If the conditions for sale accounting treatment are not met, or are no longer met, accounts receivable transferred are classified as collateralized receivables in the consolidated balance sheets and cash received from these transactions is classified as secured borrowings. All transfers of assets are accounted for as secured borrowings. Transaction costs associated with secured borrowings, if any, are treated as borrowing costs and recognized in interest expense.
	Share-based Compensation — We recognize compensation expense for all share-based compensation awards made to employees and directors including employee stock options and employee stock purchases related to the Employee Stock Purchase Plan. Share-based compensation expense recognized is based on the fair value of share-based payment awards adjusted for estimated forfeitures.  We estimate the fair value of share-based payment awards at grant date using a Black-Scholes option-pricing model.  Our estimate of the fair value of the share-based payment awards on the date of grant using the Black-Scholes option-pricing model is affected by our stock price as well as assumptions regarding a number of highly complex and subjective variables including, but not limited to, the estimated term of the award and our estimated stock price volatility.
	Reclassifications - Certain amounts in the Company’s prior period consolidated financial statements have been reclassified to conform to the current period presentation.
	Recently Adopted Accounting Pronouncements - In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09, Revenue From Contracts With Customers (Topic 606), which amended the existing accounting standards for revenue recognition. The amendments are based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company is required to adopt the amendments in the first quarter of 2017. Early adoption is not permitted. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. The Company is currently evaluating the impact of these amendments and the transition alternatives on its Consolidated Financial Statements.

Reverse_Stock_Split

Reverse Stock Split	6 Months Ended
	Jun. 30, 2014
Reverse Stock Split	'
Reverse Stock Split	'
	2.Reverse Stock Split
	On June 28, 2013, our Board of Directors approved a reverse stock split of our common stock at a ratio of 1-for-4, causing each four outstanding shares of Class A common stock and Class B common stock to convert automatically into one share of Class A common stock or Class B common stock, respectively. The par value of Class A common stock and Class B common stock remains $0.01 per share. The reverse split became effective on July 1, 2013.  Stockholders’ equity has been restated to give retroactive recognition to the reverse split for all periods presented by reclassifying the excess par value resulting from the reduced number of shares from common stock to paid-in capital. Except as otherwise noted, all references to common share and per common share amounts (including warrant shares, shares reserved for issuance and applicable exercise prices) for all periods presented have been retroactively restated to reflect this reverse split.

Liquidity

Liquidity	6 Months Ended
	Jun. 30, 2014
Liquidity	'
Liquidity	'
	3.Liquidity
	The accompanying consolidated financial statements have been prepared assuming that Wave will continue as a going concern.  Wave has incurred substantial operating losses since its inception, and as of June 30, 2014, has an accumulated deficit of approximately $424,330,000.  We also expect Wave will incur an operating loss for fiscal year 2014.  As of June 30, 2014, Wave had positive working capital of approximately $431,000.
	If Wave is not successful in executing its business plan, Wave will not generate enough revenue to fund its cash flow requirements for the twelve-months ended June 30, 2015.  As of June 30, 2014, we had approximately $8,524,000 of cash on hand.  Given Wave’s forecasted capital requirements for the twelve-months ending June 30, 2015, and our cash balance as of June 30, 2014, Wave may be required to raise additional capital prior to June 30, 2015 to continue to fund its operations if its sales forecasts do not meet expectations.   During the six-months ended June 30, 2014, Wave’s ability to raise additional capital has been primarily based on three sources:
	  Sales of registered Class A Common Stock under a $20,000,000 shelf registration statement filed with the SEC on August 9, 2013 and declared effective by the Commission on September 12, 2013 (“2013 shelf registration statement”).  The remaining available gross proceeds on the 2013 shelf registration statement as of June 11, 2014 were increased by twenty percent pursuant to Rule 462(b) under the Securities Act of 1933 in connection with the offering on such date described below;
	  Sales of registered Class A Common Stock via the At the Market Sales Agreement with MLV & Co. LLC (“MLV”) entered into during January, 2012.  The At the Market Sales Agreement was amended on September 19, 2013 to authorize the issuance and sale of shares of the Company’s Class A Common Stock under the At the Market Sales Agreement for aggregate gross sales proceeds of up to $15,000,000 in connection with the 2013 shelf registration statement (the Company terminated all future sales under the At the Market Sales Agreement with MLV effective June 11, 2014); and
	  Sales of Class A Common Stock through private placements.
	On June 11, 2014, Wave entered into agreements with certain institutional investors for a private placement of 5,225,560 shares of its Class A Common Stock at a price of $1.90 per share yielding gross proceeds of $9,928,564.  This financing was completed under the 2013 shelf registration statement together with the related registration statement on Form S-3 filed pursuant to Rule 462(b).  Craig-Hallum Capital Group LLC (“Craig-Hallum”) entered into a placement agency agreement with Wave in which they agreed to act as placement agent in connection with the offering.  Wave agreed to pay Craig-Hallum a fee equal to 7% of the gross proceeds of this offering.  We realized approximately $9,075,000 in net proceeds after deducting the placement agent fees of $695,000 and additional legal and other fees associated with the issuance of these securities totaling approximately $159,000. In connection with the financing, we also issued warrants to the subscribers to purchase up to 2,090,224 shares of Wave Class A Common Stock for $1.90 per share. These warrants expire on June 11, 2019.  A prospectus supplement related to the offering was filed with the SEC on June 13, 2014.
	During the six-months ended June 30, 2014, Wave sold 5,410,450 shares of its Class A common stock through its At the Market Sales Agreement with MLV at an average price of $1.03 per share, for net proceeds of approximately $5,383,000 after deducting offering costs of approximately $171,000.  As a result of the June 11, 2014 offering which used substantially all of the remaining availability of the 2013 shelf registration statement, the Company terminated all future sales under the At the Market Sales Agreement with MLV.
	As of August 5, 2014, approximately $37,000 in gross proceeds remains under the 2013 shelf registration statement.  The Company will be filing a new shelf registration statement within the next twelve-months ending June 30, 2015.
	Wave may be required to sell shares of common stock, preferred stock, obtain debt financing or engage in a combination of these financing alternatives, to raise additional capital to continue to fund its operations for the twelve-months ending June 30, 2015.  If Wave is not successful in executing its business plan, it will be required to sell additional shares of common stock, preferred stock, obtain debt financing or engage in a combination of these financing alternatives or it could be forced to reduce expenses which may significantly impede its ability to meet its sales, marketing and development objectives, or cause it to cease operations or merge with another company.  No assurance can be provided that any of these initiatives will be successful.  Due to our current cash position, our forecasted capital needs over the next twelve months and beyond, uncertainty as to whether we will achieve our sales forecast for our products and services and the fact that we may require additional financing, substantial doubt exists with respect to our ability to continue as a going concern.

Secured_Borrowings_and_Pledged

Secured Borrowings and Pledged Receivables	6 Months Ended
	Jun. 30, 2014
Secured Borrowings and Pledged Receivables	'
Secured Borrowings and Pledged Receivables	'
	4.  Secured Borrowings and Pledged Receivables
	Pursuant to agreements entered into on April 23, 2012 with The Receivables Exchange (“TRE”) and on November 26, 2013 with CapFlow Funding Group Managers LLC (“CapFlow”), both of which are unrelated third parties, Wave has transferred certain accounts receivable to buyers which are accounted for as secured borrowings. The transferred receivables are classified as pledged receivables and Wave’s obligation to repurchase the transferred receivables is presented as secured borrowings on the consolidated balance sheet. The carrying value of each secured borrowing approximates 85% of each associated pledged receivable and takes into consideration a 15% holdback provision per the TRE and CapFlow agreements.  The customers’ payment of the pledged receivables constitutes the repayment of the related amounts borrowed. The respective financial institution will then remit the remaining 15% holdback to Wave less interest.  Beginning on November 26, 2013 Wave no longer transfers accounts receivable to TRE and currently utilizes CapFlow exclusively.  The interest rate on the secured borrowings was 1.50% for every thirty days outstanding, or an annual effective rate of approximately 18%.
	With Wave’s approval, CapFlow establishes arrangements with buyers providing for borrowings that are secured by our accounts receivable, and for which recourse exists against Wave. Wave can be required to repurchase the receivables under certain circumstances in case of specific defaults by our customers as set forth in the program terms.  CapFlow acts as the servicing agent for receivables transferred to buyers.  CapFlow collects the pledged receivables from Wave’s customers and makes the repayment to the buyers on its behalf once the receivables are collected.
	At June 30, 2014 and December 31, 2013, receivables totaling $0 and $1,683,188, respectively, were transferred to buyers, remain uncollected and are subject to repurchase. The secured borrowings totaled $0 and $1,430,710 as of June 30, 2014 and December 31, 2013, respectively. We recognized $35,227 and $66,222 of interest expense associated with the secured borrowings for the six-months ended June 30, 2014 and 2013, respectively and $11,462 and $29,141 of interest expense for the three-months ended June 30, 2014 and 2013, respectively.  Proceeds from the transfer of receivables are included in cash provided by operating activities in the consolidated statements of cash flows.  Proceeds from the transfer of pledged receivables were $1,693,450 and $4,673,508 for the six-months ended June 30, 2014 and 2013, respectively.  CapFlow and TRE collected $1,693,450 and $4,041,596 of pledged receivables in the six-months ended June 30, 2014 and 2013, respectively, which thereby reduced our repurchase obligation and were accounted for as reductions of pledged receivables and secured borrowings on the consolidated balance sheet.  No pledged receivables were repurchased by the Company in the three and six-months ended June 30, 2014 and 2013.

Loss_per_Share

Loss per Share	6 Months Ended
	Jun. 30, 2014
Loss per Share	'
Loss per Share	'
	5.Loss per Share
	Basic net loss per common share has been calculated based upon the weighted average number of shares of common stock outstanding during the period.  Diluted net loss per share is also computed using the weighted average number of common shares and excludes dilutive instruments as their effect would be anti-dilutive.  Dilutive instruments consist primarily of employee stock options and stock warrants.  Diluted net loss per share is equal to basic net loss per share and is therefore not presented separately in the financial statements.  The weighted average number of potential common shares that would have been included in diluted loss per share, had their effect not been anti-dilutive for each of the three and six-month periods ended June 30, 2014 were 419,000 and 166,000, respectively, versus 114,000 and 298,000 for the three and six-month periods ended June 30, 2013, respectively.  Employee stock options and other stock warrants to purchase a weighted average of approximately 5,940,000 and 7,729,000 shares were outstanding for the three-month and six-month periods ended June 30, 2014, respectively, versus 5,464,000 and 5,181,000 shares for the three-month and six-month periods ended June 30, 2013, respectively, but have not been included in the computation of diluted loss per share because their exercise price was greater than the average share price of Wave’s common shares and, therefore, their effect would have been anti-dilutive.

Sharebased_Compensation

Share-based Compensation	6 Months Ended
	Jun. 30, 2014
Share-based Compensation	'
Share-based Compensation	'
	6.Share-based Compensation
	Wave recognized $437,562 and $668,840 of share-based compensation during the three-months ended June 30, 2014 and 2013, respectively, and $851,844 and $1,106,546 for the six-month periods ended June 30, 2014 and 2013, respectively.  During the six-month periods ended June 30, 2014 and 2013, Wave granted 1,678,000 and 626,981 stock options at a weighted-average estimated fair value of $0.61 and $0.69, respectively.  During the three-month periods ended June 30, 2014 and 2013, Wave granted 503,600 and 69,000 stock options at a weighted-average estimated fair value of $0.76 and $0.80, respectively.
	The following table summarizes the effect of share based compensation in Wave’s statement of operations, for the three-month and six-month periods ended June 30, 2014 and 2013:
		Three months ended				Six months ended
		June 30,				June 30,
		2014		2013		2014		2013
	Cost of Sales	$	3,261	$	6,655	$	7,181	$	15,089
	Selling, General & Administrative	346,606		532,789		662,100		834,398
	Research & Development	87,695		129,396		182,563		257,059
	Total	$	437,562	$	668,840	$	851,844	$	1,106,546

Goodwill_and_Amortizable_Intan

Goodwill and Amortizable Intangible Assets	6 Months Ended
	Jun. 30, 2014
Goodwill and Amortizable Intangible Assets	'
Goodwill and Amortizable Intangible Assets	'
	7.Goodwill and Amortizable Intangible Assets
	The following schedule presents the changes in the carrying amount of goodwill during the period ended June 30, 2014:
	Balances as of December 31, 2013	$	1,448,000
	Impairment loss	—
	Balances as of June 30, 2014	$	1,448,000
	Wave tests goodwill for impairment annually on September 30 and during interim periods whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable.  Wave uses a fair value approach in testing goodwill for impairment in accordance with the provisions of ASC Topic 350, Intangibles—Goodwill and Other. The provisions of the accounting standard for goodwill and other intangibles allow us to first assess the qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test.  After assessing the qualitative factors, if it is likely that the fair value of the reporting unit is less than its carrying amount, we will then conduct the two-step quantitative goodwill impairment test.  In the first step, we compare the fair value of each reporting unit to its carrying value. If the fair value of the reporting unit exceeds its carrying value, goodwill is not impaired and no further testing is required. If the fair value of the reporting unit is less than the carrying value, we must perform the second step of the impairment test to measure the amount of impairment loss. In the second step, the reporting unit’s fair value is allocated to all of the assets and liabilities of the reporting unit, including any unrecognized intangible assets, in a hypothetical analysis that calculates the implied fair value of goodwill in the same manner as if the reporting unit was being acquired in a business combination. If the implied fair value of the reporting unit’s goodwill is less than the carrying value, the difference is recorded as an impairment loss.
	During the first quarter of 2013, the Company determined that sufficient indicators of potential impairment existed to require an interim goodwill impairment analysis for the Safend reporting unit.  These indicators included, among others, significantly lower than expected revenue, identification of increased competition for transactions involving Safend products, inability of the combined sales force to close large transactions and downward revisions to management’s short-term and long-term forecast for Safend.  The revised forecast reflected changes related to revenue growth rates, current market trends, expected deal synergies and other expectations impacting the anticipated short-term and long-term operating results of Safend.  Due to the aforementioned indicators, the Company concluded that there were qualitative factors for the Safend unit that indicated it is more likely than not that the fair value of the Safend reporting unit was less than its carrying amount.
	The Company estimates the fair value of its reporting units using the income approach. Under the income approach, the Company calculates the fair value of a reporting unit based on the present value of estimated future cash flows.  Cash flow projections are based on management’s estimates of revenue growth rates and operating margins, taking into consideration industry and market conditions. The discount rate used is based on the weighted-average cost of capital adjusted for the relevant risk associated with business-specific characteristics and the uncertainty related to the business’ ability to execute on the projected cash flows.  The inputs used for the income approach are significant unobservable inputs, or Level 3 inputs, as described in ASC Topic 820, Fair Value Measurement.
	When indicators of impairment are present, such as those noted above, the Company tests long-lived assets (other than goodwill) for recoverability by comparing the carrying value of an asset group to the estimated undiscounted future cash flows expected to be generated by the asset group, including its ultimate disposition. Based on the results of the recoverability test during the first quarter of 2013 the Company determined that the carrying value of the Safend asset group exceeded its undiscounted cash flows and was therefore not recoverable. The Company estimated the fair value of the intangible assets under an income approach as described above. Based on the analysis, the Company recorded impairment charges of approximately $1,600,000 on developed technology intangible assets during the first quarter of 2013.  The decline in the fair value of the Safend intangible assets is attributable to the same factors as discussed above for the fair value of the Safend reporting unit.
	After adjusting the carrying value of the reporting unit for the impairment of the intangibles noted above in the first quarter of 2013, the Company completed the two step goodwill impairment test for the Safend reporting unit.  This test resulted in an implied fair value of goodwill substantially below the carrying value of the goodwill. As a result, the Company recorded a goodwill impairment charge of approximately $2,600,000 during the first quarter of 2013. The goodwill impairment charge totaling approximately $2,600,000 for the six-months ended June 30, 2013 is included in the impairment of goodwill line item in the consolidated statements of operations.  The developed technology impairment charge of approximately $1,600,000 for the six-months ended June 30, 2013 is included in the licensing and maintenance — cost of net revenues line item in the consolidated statements of operations.
	The following schedule presents intangible assets subject to amortization as of June 30, 2014 and December 31, 2013:
	June 30, 2014
	Intangible Asset	Gross		Accumulated			Accumulated			Net		Weighted
		Carrying		Amortization			Impairment					Average
		Amount					Loss					Remaining
												Useful Life
												(in years)
	Developed Technology	$	6,426,000	$	(1,279,550	)	$	(5,038,100	)	$	108,350	4.2
	Customer Relationships	3,972,000		(793,327		)	(1,786,673		)	1,392,000		7.2
	Internal-use software	726,000		(110,110		)	—			615,890		4.2
	Acquired Patents	1,100,000		(916,667		)	—			183,333		0.8
		$	12,224,000	$	(3,099,654	)	$	(6,824,773	)	$	2,299,573
	December 31, 2013
	Intangible Asset	Gross		Accumulated			Accumulated			Net		Weighted
		Carrying		Amortization			Impairment					Average
		Amount					Loss					Remaining
												Useful Life
												(in years)
	Developed Technology	$	6,426,000	$	(1,266,803	)	$	(5,038,100	)	$	121,097	4.8
	Customer Relationships	3,972,000		(697,327		)	(1,786,673		)	1,488,000		7.8
	Internal-use software	726,000		(37,510		)	—			688,490		4.8
	Acquired Patents	1,100,000		(806,667		)	—			293,333		1.4
		$	12,224,000	$	(2,808,307	)	$	(6,824,773	)	$	2,590,920
	Amortization expense associated with intangible assets was $145,674 and $291,347 for the three and six months ended June 30, 2014, respectively and $109,374 and $292,156 for the three and six months ended June 30, 2013, respectively. The estimated amortization expense for intangible assets for the next five years and thereafter is as follows (in thousands):
	Period	Estimated
		Amortization
		Expense
	Remainder of 2014	$	292
	2015	436
	2016	363
	2017	363
	2018	318
	Thereafter	528
	Total	$	2,300

Income_Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2014
Income Taxes	'
Income Taxes	'
	8.Income Taxes
	Wave has federal and state net operating loss carryforwards of approximately $300,100,000, which expire beginning in 2014 through 2033 and include approximately $8,200,000 of net operating loss carryforwards of Safend, Inc., a wholly owned US-based subsidiary of Safend, Ltd.  Pursuant to Section 382 of the Internal Revenue Code, the annual utilization of Wave’s net operating and capital loss carryforwards may be substantially limited if a cumulative change in ownership of more than 50% occurs within any three-year period.  Wave has not determined whether there have been such cumulative changes in ownership or the impact on the utilization of the loss carryforwards if such changes have occurred.  However, in considering Section 382 of the Internal Revenue Code, Wave believes that it is likely that such a change in ownership has occurred thus raising the likelihood that such net operating and capital loss carryforwards are subject to annual limitations.  In addition, the Company maintains approximately $16,000,000 of operating loss carryforwards associated with Safend, Ltd. which may be carried forward indefinitely.

Segment_Reporting

Segment Reporting	6 Months Ended
	Jun. 30, 2014
Segment Reporting	'
Segment Reporting	'
	9.  Segment Reporting
	Wave’s products include the Wave EMBASSY® digital security products and services (“EMBASSY®”) and Safend’s endpoint data loss protection products and services.  These products and services constitute Wave’s reportable segments as of June 30, 2014.
	Net losses for reportable segments exclude net interest income (expense) and other income (expense), net.  These items are not reported by segment since they are excluded from the measurement of segment performance reviewed by Wave’s Chief Financial Officer.
	The following sets forth reportable segment data:
		Three months ended						Six months ended
		June 30,						June 30,
		2014			2013			2014			2013
	Net revenues:
	EMBASSY® digital security products and services	$	3,089,603		$	5,627,124		$	7,017,638		$	10,247,910
	Safend endpoint data loss protection products and services	1,350,217			1,115,118			2,754,721			2,288,058
	Total Net Revenues	$	4,439,820		$	6,742,242		$	9,772,359		$	12,535,968
	Net income (loss):
	EMBASSY® digital security products and services	$	(4,383,707	)	$	(3,001,360	)	$	(8,118,283	)	$	(8,405,277	)
	Safend endpoint data loss protection products and services	629,428			(430,711		)	1,117,074			(5,184,013		)
	Total Segments Operating Loss	(3,754,279		)	(3,432,071		)	(7,001,209		)	(13,589,290		)
	Other income (expense), net	(2,238		)	(8,363		)	(3,949		)	(6,732		)
	Net interest expense	(39,013		)	(49,863		)	(83,877		)	(108,030		)
	Net Loss	$	(3,795,530	)	$	(3,490,297	)	$	(7,089,035	)	$	(13,704,052	)
	Impairment of Goodwill:
	EMBASSY® digital security products and services	$	—		$	—		$	—		$	—
	Safend endpoint data loss protection products and services	—			—			—			2,590,000
	Total Impairment of Goodwill	$	—		$	—		$	—		$	2,590,000
	Depreciation and Amortization Expense:
	EMBASSY® digital security products and services	$	163,959		$	166,954		$	339,329		$	344,082
	Safend endpoint data loss protection products and services	61,292			64,406			122,570			203,187
	Total Depreciation and Amortization Expense	$	225,251		$	231,360		$	461,899		$	547,269
	Capital Expenditures:
	EMBASSY® digital security products and services	$	39,041		$	33,195		$	62,531		125,504
	Safend endpoint data loss protection products and services	963			9,030			2,231			10,644
	Total Capital Expenditures	$	40,004		$	42,225		$	64,762		$	136,148
		June 30,			December 31,
		2014			2013
	Assets:
	EMBASSY digital security products and services	$	11,616,105		$	7,733,322
	Safend endpoint data loss protection products and services	3,753,605			4,091,587
	Total assets	$	15,369,710		$	11,824,909
	The following table details Wave’s sales by geographic area for the three and six-month periods ended June 30, 2014 and 2013.  Geographic area is based on the location of where the products were shipped or services rendered.
		United States			Europe			Asia			Total
		of America
	Three months ended June 30, 2014:
	EMBASSY® digital security products and services	$	2,279,031		$	543,592		$	266,980		$	3,089,603
	Safend endpoint data loss protection products and services	680,180			561,713			108,324			1,350,217
	Total	$	2,959,211		$	1,105,305		$	375,304		$	4,439,820
	% of Total Revenue	67		%	25		%	8		%	100		%
	Three months ended June 30, 2013:
	EMBASSY® digital security products and services	$	4,078,689		$	1,180,565		$	367,870		$	5,627,124
	Safend endpoint data loss protection products and services	427,518			591,071			96,529			1,115,118
	Total	$	4,506,207		$	1,771,636		464,399			$	6,742,242
	% of Total Revenue	67		%	26		%	7		%	100		%
	Six months ended June 30, 2014:
	EMBASSY® digital security products and services	$	5,113,915		$	1,243,862		$	659,861		$	7,017,638
	Safend endpoint data loss protection products and services	1,409,376			1,139,398			205,947			2,754,721
	Total	$	6,523,291		$	2,383,260		$	865,808		$	9,772,359
	% of Total Revenue	67		%	24		%	9		%	100		%
	Six months ended June 30, 2013:
	EMBASSY® digital security products and services	$	7,801,676		$	1,927,259		$	518,975		$	10,247,910
	Safend endpoint data loss protection products and services	971,916			1,149,402			166,740			2,288,058
	Total	$	8,773,592		$	3,076,661		$	685,715		$	12,535,968
	% of Total Revenue	70		%	25		%	5		%	100		%
	Approximately 90% of all long-lived assets of Wave are located within the United States of America and approximately 10% are located in the State of Israel.
	Customers, by segment, from which Wave derived revenue in excess of 10% for the three and six-month periods ended June 30, 2014 and 2013 are as follows:
				Three months ended						Six months ended
				June 30,						June 30,
			2014			2013			2014			2013
Customer	Segment		Revenue						Revenue
Dell, Inc.	EMBASSY®		$	1,528,655		$	3,225,452		$	3,549,105		$	5,683,862
% of Total Revenue			34		%	48		%	36		%	45		%

Issuance_of_Common_Stock

Issuance of Common Stock	6 Months Ended
	Jun. 30, 2014
Issuance of Common Stock	'
Issuance of Common Stock	'
	10.Issuance of Common Stock
	On June 11, 2014, Wave entered into agreements with certain institutional investors for a private placement of 5,225,560 shares of its Class A Common Stock at a price of $1.90 per share yielding gross proceeds of $9,928,564.  This financing was completed under the 2013 shelf registration statement together with the related registration statement on Form S-3 filed pursuant to Rule 462(b).  Craig-Hallum entered into a placement agency agreement with Wave in which they agreed to act as placement agent in connection with the offering.  Wave agreed to pay Craig-Hallum a fee equal to 7% of the gross proceeds of this offering.  We realized approximately $9,075,000 in net proceeds after deducting the placement agent fees of $695,000 and additional legal and other fees associated with the issuance of these securities totaling approximately $159,000.  In connection with the financing, we also issued warrants to the subscribers to purchase up to 2,090,224 shares of Wave Class A Common Stock for $1.90 per share. These warrants expire on June 11, 2019.  The warrants have been accounted for as equity. A prospectus supplement related to the offering was filed with the SEC on June 13, 2014.
	During the three-month period ended June 30, 2014, Wave received net proceeds of $59,292 after deducting offering costs of approximately $3,000, in connection with the issuance of 44,666 shares of Class A Common Stock in its at the market offerings through MLV.  The shares were sold at prices ranging from $1.37 - $1.39 per share.
	On June 1, 2014, Wave issued 105,454 shares of Class A Common Stock to Wave employees for $0.94 per share, pursuant to the Wave 2004 Employee Stock Purchase Plan.  Wave received proceeds of $99,495 from the sale of these shares.
	During the three-month period ended June 30, 2014, Wave received gross proceeds of $121,862 in connection with the issuance of 133,914 shares of Class A Common Stock upon the exercise of warrants that were granted to investors as part of Wave’s December 2013 financings.  The warrants were exercised at $0.91 per share.
	During the three-month period ended March 31, 2014, Wave received net proceeds of $5,323,717 after deducting offering costs of approximately $169,000, in connection with the issuance of 5,365,784 shares of Class A Common Stock in its at the market offerings through MLV.  The shares were sold at prices ranging from $0.90 - $1.13 per share.
	On March 13, 2013, Wave entered into agreements with certain institutional investors for a private placement of 301,205 shares of its Class A Common Stock at a price of $3.32 per share, yielding gross proceeds of $1,000,000.  Wave agreed to pay Dawson James Securities, Inc., the placement agent, a fee equal to 6% of the gross proceeds of this offering. Wave realized approximately $910,000 in net proceeds after deducting the placement agent fees of $60,000 and additional legal and other fees associated with the issuance of these securities totaling approximately $30,000.  Wave also issued warrants to the subscribers to purchase 150,603 shares of Class A Common Stock at an exercise price of $3.32 per share.  These warrants expire in October 2018.
	During the three-month period ended March 31, 2013, Wave received net proceeds of $262,945 after deducting offering costs of approximately $8,700, in connection with the issuance of 94,988 shares of Class A Common Stock in its at the market offerings through MLV.  The shares were sold at prices ranging from $2.80 - $2.92 per share.
	During the three-month period ended March 31, 2013, Wave received gross proceeds of $42,039 in connection with the issuance of 12,983 shares of Class A Common Stock upon the exercise of employee stock options.  The employee stock options were exercised at $3.24 per share.

Fair_Value_Measurement

Fair Value Measurement	6 Months Ended
	Jun. 30, 2014
Fair Value Measurement	'
Fair Value Measurement	'
	11.   Fair Value Measurement
	As of June 30, 2014, Wave’s financial assets that are measured at fair value on a recurring basis are comprised of overnight money market fund investments.  Wave invests excess cash from its operating cash accounts in overnight money market funds and reflects these amounts ($7,707,231 at June 30, 2014) within cash and cash equivalents on the consolidated balance sheet using quoted prices in active markets for identical assets (Level 1) at a net value of 1:1 for each dollar invested.
	Financial instruments not measured or recorded at fair value in the accompanying unaudited consolidated financial statements consist of accounts receivable, collateralized receivables, accounts payable and secured borrowings. The estimated fair value of accounts receivable, collateralized receivables, accounts payable and secured borrowings approximates their carrying value.
	Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument.  These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision.  Changes in assumptions could significantly affect the estimates.

Critical_Accounting_Policies_P

Critical Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2014
Critical Accounting Policies	'
Revenue Recognition	'
	Revenue Recognition — Wave’s business model targets revenues from various sources including: licensing of the EMBASSY Trust Suite, Safend’s endpoint data loss protection suite, eTMS software products and development contracts.  Many of these sales arrangements include multiple-elements and/or require significant modification or customization of Wave’s software.
	Wave recognizes revenue when it is realized or realizable and earned. Wave considers revenue realized or realizable and earned when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and collectability is reasonably assured.  In addition to the aforementioned general policy, the following are the specific revenue recognition policies for each major category of revenue.
	Licensing and Maintenance
	Wave receives revenue from licensing its EMBASSY Trust Suite software through distribution arrangements with its OEM partners, software development and other services.  Wave’s distribution arrangements also give rise to separate software license upgrade agreements with the end users of the products distributed by the OEMs.  Wave applies software revenue recognition guidance to all transactions except those where no software is involved.  Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable and collectability is reasonably assured.  Persuasive evidence is generally a binding purchase order or license agreement.  Delivery occurs when product is shipped for its OEM distribution arrangements, or delivered via a license key for our license upgrade agreements.
	Wave enters into perpetual software license agreements through direct sales to customers and indirect sales through its OEM partners, distributors and resellers with the end users of the products distributed by the OEMs.  Wave has defined its two classes of end user customers as large and small based on those with orders in excess of 5,000 licenses and those with less than 5,000 licenses, respectively.  These license upgrade agreements generally include a maintenance component.  For arrangements with multiple-elements, including software licenses, maintenance and/or services, revenue is allocated and deferred in amounts equivalent to the vendor specific objective evidence (“VSOE”) of fair value for the undelivered elements and the difference between the total arrangement fee and the amount deferred for the undelivered elements is recognized as license revenue.  VSOE of fair value is based upon the price for which the undelivered element is sold separately.
	Wave has VSOE of fair value of maintenance for its small class of customers based on independent maintenance renewals.  Wave lacks sufficient independent maintenance renewals to establish VSOE for its large customer class.  As a result, for the small customer class, Wave allocates the arrangement consideration to the elements in multi-element arrangements using the residual method.  Under the residual method, the VSOE of the undelivered elements is deferred and the remaining portion of the arrangement fee for perpetual licenses is recognized as revenue upon delivery of the software, assuming all other revenue recognition criteria are met.
	When VSOE of fair value for the undelivered elements does not exist, as is the case for Wave’s large customer class, the entire arrangement fee is recognized ratably over the performance period as licensing and maintenance revenue.
	Wave’s deferred revenue consists of the unamortized maintenance for sales to its small class of customers and bundled license and maintenance arrangements where VSOE does not exist.
	Safend receives revenue from licensing its endpoint data loss protection products and services through its distribution channels.  Safend applies software revenue recognition guidance to all transactions except those where no software is involved.  Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable and collectability is reasonably assured.  Persuasive evidence is generally a binding purchase order or license agreement.  Delivery occurs when product is delivered via a license key.
	Safend enters into perpetual software license agreements through direct sales to customers and indirect sales through its OEM partners, distributors and resellers.  These license arrangements, generally also include a maintenance component.  For arrangements with multiple-elements, including software licenses, maintenance and/or services, revenue is allocated and deferred in amounts equivalent to the VSOE of fair value for the undelivered elements and the difference between the total arrangement fee and the amount deferred for the undelivered elements is recognized as licensing revenue.  VSOE of fair value is based upon the price for which the undelivered element is sold separately.
	Safend has VSOE of fair value of maintenance for its Protector product.  As a result Safend allocates the arrangement consideration among the elements in its multi-element arrangements using the residual method.  Under the residual method, the VSOE of the undelivered elements is deferred and the remaining portion of the arrangement fee for perpetual licenses is recognized as revenue upon delivery of the software, assuming all other revenue recognition criteria are met.  When VSOE of fair value for the undelivered elements does not exist, as is the case for maintenance for its Encryptor, Inspector, Discover, Reporter and Auditor products, the entire arrangement fee is recognized ratably over the performance period as licensing and maintenance revenue.
	Licensing and maintenance - cost of net revenues includes customer support personnel costs, foreign tax withholdings, amortization and impairment expense for the developed technology intangible asset, costs associated with providing consulting services and related share-based compensation expense.
	Services
	Services revenue includes revenue earned from fixed-price modifications to a contract awarded by the United States Department of Defense.  Revenue from time and material service contracts is recognized as the services are provided. Revenue from fixed price, long-term service or development contracts is recognized using the percentage of completion method or the completed contract method.  The determination between completed contract method and the percentage of completion method is based on the ability to estimate. The Company measures the percentage of completion by reference to the proportion of contract hours incurred for work performed to date to the estimated total contract hours expected to be incurred.  Losses on fixed price contracts are recognized during the period in which such losses are identified.
	Services - cost of net revenues includes non-recurring government time and materials costs incurred in connection with a contract with the United States Department of Defense and related share-based compensation expense.
Valuation of Goodwill and Purchased Intangible Assets	'
	Valuation of Goodwill - We review goodwill for impairment annually and whenever events or changes in circumstances indicate the fair value of a reporting unit is more likely than not below its carrying value. If the implied fair value of the reporting unit’s goodwill is less than the carrying value, the difference is recorded as an impairment loss.
	Valuation of Long Lived Assets - We review purchased intangible assets with finite lives for impairment whenever events or changes in circumstances indicate the carrying value of an asset group may not be recoverable. Recoverability of asset groups is assessed based on the estimated undiscounted future cash flows expected to be generated by the asset group, including its ultimate disposition. If the sum of the undiscounted cash flows is less than the carrying value, the impairment to be recognized is measured by the amount by which the carrying amount of the asset group exceeds the fair value of the asset group. Assets to be disposed of are reported at the lower of the carrying amount or fair value, less costs to sell.
Capitalized internal-use software development costs	'
	Capitalized internal-use software development costs - The Company follows the provisions of ASC Topic 350-40, Intangibles Goodwill and Other—Internal Use Software. ASC Topic 350-40 provides guidance for determining whether computer software is internal-use software and also provides guidance on capitalization of the costs incurred for computer software developed or obtained for internal use.  These capitalized costs are related to Wave’s cloud platform that is hosted by the Company and accessed by its clients on a subscription basis.  The Company expenses all costs incurred during the preliminary project stage of development and capitalizes the costs incurred during the application development stage. Costs incurred relating to upgrades and enhancements to the software are capitalized if it is determined that these upgrades or enhancements add additional functionality to the software. Costs incurred to improve and support products after they become available are charged to expense as incurred.  The Company records amortization of the software on a straight-line basis over five years, which is the estimated useful life of the software.  At each balance sheet date, management evaluates the unamortized capitalized software costs for potential impairment by comparing the balance to the net realizable value of the products.
Accounting for Transfers of Financial Assets	'
	Accounting for Transfers of Financial Assets - We derecognize financial assets, specifically accounts receivable, when control has been surrendered in compliance with ASC Topic 860, Transfers and Servicing. Transfers of accounts receivable that meet the requirements of ASC 860 for sale accounting treatment are removed from the balance sheet and gains or losses on the sale are recognized. If the conditions for sale accounting treatment are not met, or are no longer met, accounts receivable transferred are classified as collateralized receivables in the consolidated balance sheets and cash received from these transactions is classified as secured borrowings. All transfers of assets are accounted for as secured borrowings. Transaction costs associated with secured borrowings, if any, are treated as borrowing costs and recognized in interest expense.
Share-based Compensation	'
	Share-based Compensation — We recognize compensation expense for all share-based compensation awards made to employees and directors including employee stock options and employee stock purchases related to the Employee Stock Purchase Plan. Share-based compensation expense recognized is based on the fair value of share-based payment awards adjusted for estimated forfeitures.  We estimate the fair value of share-based payment awards at grant date using a Black-Scholes option-pricing model.  Our estimate of the fair value of the share-based payment awards on the date of grant using the Black-Scholes option-pricing model is affected by our stock price as well as assumptions regarding a number of highly complex and subjective variables including, but not limited to, the estimated term of the award and our estimated stock price volatility.
Reclassifications	'
	Reclassifications - Certain amounts in the Company’s prior period consolidated financial statements have been reclassified to conform to the current period presentation.

Sharebased_Compensation_Tables

Share-based Compensation (Tables)	6 Months Ended
	Jun. 30, 2014
Share-based Compensation	'
Summary of effect of share based compensation in the entity's statement of operations	'
		Three months ended				Six months ended
		June 30,				June 30,
		2014		2013		2014		2013
	Cost of Sales	$	3,261	$	6,655	$	7,181	$	15,089
	Selling, General & Administrative	346,606		532,789		662,100		834,398
	Research & Development	87,695		129,396		182,563		257,059
	Total	$	437,562	$	668,840	$	851,844	$	1,106,546

Goodwill_and_Amortizable_Intan1

Goodwill and Amortizable Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2014
Goodwill and Amortizable Intangible Assets	'
Schedule of changes in the carrying amount of goodwill	'
	June 30, 2014
	Balances as of December 31, 2013	$	1,448,000
	Impairment loss	—
	Balances as of June 30, 2014	$	1,448,000
Schedule of the details of intangible assets	'
	June 30, 2014
	Intangible Asset	Gross		Accumulated			Accumulated			Net		Weighted
		Carrying		Amortization			Impairment					Average
		Amount					Loss					Remaining
												Useful Life
												(in years)
	Developed Technology	$	6,426,000	$	(1,279,550	)	$	(5,038,100	)	$	108,350	4.2
	Customer Relationships	3,972,000		(793,327		)	(1,786,673		)	1,392,000		7.2
	Internal-use software	726,000		(110,110		)	—			615,890		4.2
	Acquired Patents	1,100,000		(916,667		)	—			183,333		0.8
		$	12,224,000	$	(3,099,654	)	$	(6,824,773	)	$	2,299,573
	December 31, 2013
	Intangible Asset	Gross		Accumulated			Accumulated			Net		Weighted
		Carrying		Amortization			Impairment					Average
		Amount					Loss					Remaining
												Useful Life
												(in years)
	Developed Technology	$	6,426,000	$	(1,266,803	)	$	(5,038,100	)	$	121,097	4.8
	Customer Relationships	3,972,000		(697,327		)	(1,786,673		)	1,488,000		7.8
	Internal-use software	726,000		(37,510		)	—			688,490		4.8
	Acquired Patents	1,100,000		(806,667		)	—			293,333		1.4
		$	12,224,000	$	(2,808,307	)	$	(6,824,773	)	$	2,590,920
Summary of estimated amortization expense for intangible assets	'
	The estimated amortization expense for intangible assets for the next five years and thereafter is as follows (in thousands):
	Period	Estimated
		Amortization
		Expense
	Remainder of 2014	$	292
	2015	436
	2016	363
	2017	363
	2018	318
	Thereafter	528
	Total	$	2,300

Segment_Reporting_Tables

Segment Reporting (Tables)	6 Months Ended
	Jun. 30, 2014
Segment Reporting	'
Schedule of reportable segment data	'
		Three months ended						Six months ended
		June 30,						June 30,
		2014			2013			2014			2013
	Net revenues:
	EMBASSY® digital security products and services	$	3,089,603		$	5,627,124		$	7,017,638		$	10,247,910
	Safend endpoint data loss protection products and services	1,350,217			1,115,118			2,754,721			2,288,058
	Total Net Revenues	$	4,439,820		$	6,742,242		$	9,772,359		$	12,535,968
	Net income (loss):
	EMBASSY® digital security products and services	$	(4,383,707	)	$	(3,001,360	)	$	(8,118,283	)	$	(8,405,277	)
	Safend endpoint data loss protection products and services	629,428			(430,711		)	1,117,074			(5,184,013		)
	Total Segments Operating Loss	(3,754,279		)	(3,432,071		)	(7,001,209		)	(13,589,290		)
	Other income (expense), net	(2,238		)	(8,363		)	(3,949		)	(6,732		)
	Net interest expense	(39,013		)	(49,863		)	(83,877		)	(108,030		)
	Net Loss	$	(3,795,530	)	$	(3,490,297	)	$	(7,089,035	)	$	(13,704,052	)
	Impairment of Goodwill:
	EMBASSY® digital security products and services	$	—		$	—		$	—		$	—
	Safend endpoint data loss protection products and services	—			—			—			2,590,000
	Total Impairment of Goodwill	$	—		$	—		$	—		$	2,590,000
	Depreciation and Amortization Expense:
	EMBASSY® digital security products and services	$	163,959		$	166,954		$	339,329		$	344,082
	Safend endpoint data loss protection products and services	61,292			64,406			122,570			203,187
	Total Depreciation and Amortization Expense	$	225,251		$	231,360		$	461,899		$	547,269
	Capital Expenditures:
	EMBASSY® digital security products and services	$	39,041		$	33,195		$	62,531		125,504
	Safend endpoint data loss protection products and services	963			9,030			2,231			10,644
	Total Capital Expenditures	$	40,004		$	42,225		$	64,762		$	136,148
		June 30,			December 31,
		2014			2013
	Assets:
	EMBASSY digital security products and services	$	11,616,105		$	7,733,322
	Safend endpoint data loss protection products and services	3,753,605			4,091,587
	Total assets	$	15,369,710		$	11,824,909
Schedule of sales by geographic area	'
		United States			Europe			Asia			Total
		of America
	Three months ended June 30, 2014:
	EMBASSY® digital security products and services	$	2,279,031		$	543,592		$	266,980		$	3,089,603
	Safend endpoint data loss protection products and services	680,180			561,713			108,324			1,350,217
	Total	$	2,959,211		$	1,105,305		$	375,304		$	4,439,820
	% of Total Revenue	67		%	25		%	8		%	100		%
	Three months ended June 30, 2013:
	EMBASSY® digital security products and services	$	4,078,689		$	1,180,565		$	367,870		$	5,627,124
	Safend endpoint data loss protection products and services	427,518			591,071			96,529			1,115,118
	Total	$	4,506,207		$	1,771,636		464,399			$	6,742,242
	% of Total Revenue	67		%	26		%	7		%	100		%
	Six months ended June 30, 2014:
	EMBASSY® digital security products and services	$	5,113,915		$	1,243,862		$	659,861		$	7,017,638
	Safend endpoint data loss protection products and services	1,409,376			1,139,398			205,947			2,754,721
	Total	$	6,523,291		$	2,383,260		$	865,808		$	9,772,359
	% of Total Revenue	67		%	24		%	9		%	100		%
	Six months ended June 30, 2013:
	EMBASSY® digital security products and services	$	7,801,676		$	1,927,259		$	518,975		$	10,247,910
	Safend endpoint data loss protection products and services	971,916			1,149,402			166,740			2,288,058
	Total	$	8,773,592		$	3,076,661		$	685,715		$	12,535,968
	% of Total Revenue	70		%	25		%	5		%	100		%
Schedule of customers by segment, from which Wave derived revenue in excess of 10%	'
				Three months ended						Six months ended
				June 30,						June 30,
				2014			2013			2014			2013
	Customer	Segment		Revenue						Revenue
	Dell, Inc.	EMBASSY®		$	1,528,655		$	3,225,452		$	3,549,105		$	5,683,862
	% of Total Revenue			34		%	48		%	36		%	45		%

Critical_Accounting_Policies_D

Critical Accounting Policies (Details)	6 Months Ended
	Jun. 30, 2014
Revenue Recognition	'
Number of classes of end user customers	2
Minimum order of licenses of end user customers defined as large	5,000
Maximum order of licenses of end user customers defined as small	5,000
Computer Software, Intangible Asset [Member]	'
Capitalized internal-use software development costs	'
Estimated useful life	'5 years

Reverse_Stock_Split_Details

Reverse Stock Split (Details) (USD $)	0 Months Ended
	Jun. 28, 2013	Jun. 30, 2014	Dec. 31, 2013
Reverse stock split	'	'	'
Reverse stock split ratio	0.25	'	'
Common Class A [Member]	'	'	'
Reverse stock split	'	'	'
Reverse stock split ratio	0.25	'	'
Common stock, par value (in dollars per share)	$0.01	$0.01	$0.01
Common Class B [Member]	'	'	'
Reverse stock split	'	'	'
Reverse stock split ratio	0.025	'	'
Common stock, par value (in dollars per share)	$0.01	$0.01	$0.01

Liquidity_Details

Liquidity (Details) (USD $)

6 Months Ended

3 Months Ended

6 Months Ended

0 Months Ended

0 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Dec. 31, 2013

Dec. 31, 2012

Mar. 13, 2013

Jun. 30, 2014

Mar. 31, 2014

Mar. 31, 2013

Jun. 30, 2014

Jun. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Mar. 31, 2013

Sep. 19, 2013

Aug. 05, 2014

Aug. 09, 2013

Jun. 11, 2014

Jun. 11, 2014

Common Class A [Member]

At the Market Sales Agreement [Member]

At the Market Sales Agreement [Member]

At the Market Sales Agreement [Member]

At the Market Sales Agreement [Member]

At the Market Sales Agreement [Member]

At the Market Sales Agreement [Member]

At the Market Sales Agreement [Member]

At the Market Sales Agreement [Member]

At the Market Sales Agreement [Member]

Shelf Registration 2013 [Member]

Shelf Registration 2013 [Member]

Shelf Registration 2011 [Member]

Shelf Registration 2011 [Member]

Warrants Issued, March 2013 [Member]

Common Class A [Member]

Common Class A [Member]

Common Class A [Member]

Common Class A [Member]

Common Class A [Member]

Common Class A [Member]

Common Class A [Member]

Common Class A [Member]

Common Class A [Member]

Common Stock [Member]

Common Stock [Member]

Common Class A [Member]

Common Class A [Member]

Average [Member]

Maximum [Member]

Maximum [Member]

Maximum [Member]

Scenario, Plan [Member]

Subsequent Event [Member]

Scenario, Plan [Member]

Warrants July 2013 Investors [Member]

Maximum [Member]

Liquidity

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Accumulated deficit

$424,329,515

'

$417,240,480

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Positive working capital

431,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Cash on hand

8,524,138

922,299

2,120,102

2,112,769

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Liquidity

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Shelf registration statement, amount

'

'

'

'

'

'

'

'

'

'

'

'

'

'

37,000

20,000,000

'

'

Number of shares sold

'

'

'

'

'

44,666

5,365,784

94,988

5,410,450

'

'

'

'

'

'

'

5,225,560

'

Share price (in dollars per share)

'

'

'

'

'

'

'

'

'

$1.03

$1.39

$1.13

$2.92

'

'

'

$1.90

'

Gross proceeds from issuance of common stock

'

'

'

'

'

'

'

'

'

'

'

'

'

15,000,000

'

'

9,928,564

'

Placement agent fees equal to gross proceeds from offering (as a percent)

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

7.00%

'

Net proceeds from issuance of common stock

14,457,789

5,473,428

'

'

'

59,292

5,323,717

262,945

5,383,000

'

'

'

'

'

'

'

9,075,000

'

Placement agent fees

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

695,000

'

Legal and other fees

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

159,000

'

Offering costs

'

'

'

'

'

$3,000

$169,000

$8,700

$171,000

'

'

'

'

'

'

'

'

'

Common stock agreed to be issued against warrants (in shares)

'

'

'

'

150,603

'

'

'

'

'

'

'

'

'

'

'

'

2,090,224

Warrants exercised (in dollars per share)

0.91

'

'

'

3.32

'

'

'

'

'

'

'

'

'

'

'

'

1.9

Secured_Borrowings_and_Pledged1

Secured Borrowings and Pledged Receivables (Details) (Asset-backed Securities [Member], USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Asset-backed Securities [Member]	'	'	'	'	'
Secured Borrowings and Collateralized Receivables	'	'	'	'	'
Carrying value of secured borrowing as a percentage of associated pledged receivable	'	'	85.00%	'	'
Percentage of holdback provision as per the TRE agreement	'	'	15.00%	'	'
Interest rate on secured borrowings for every thirty days outstanding (as a percent)	1.50%	'	1.50%	'	'
Annual effective rate of interest (as a percent)	18.00%	'	18.00%	'	'
Receivables transferred to buyer, remain uncollected	$0	'	$0	'	$1,683,188
Secured borrowings	0	'	0	'	1,430,710
Interest expense associated with the secured borrowings	11,462	29,141	35,227	66,222	'
Proceeds from the transfer of pledged receivables	'	'	1,693,450	4,673,508	'
Amount of pledged receivables collected by CapFlow and TRE	'	'	1,693,450	4,041,596	'
Pledged receivables repurchased	'	'	$0	$0	'

Loss_per_Share_Details

Loss per Share (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Potential Common Shares [Member]	'	'	'	'
Loss per share	'	'	'	'
Antidilutive securities excluded from earnings per share	419,000	114,000	166,000	298,000
Employee Stock Option and Other Stock Warrants [Member]	'	'	'	'
Loss per share	'	'	'	'
Antidilutive securities excluded from earnings per share	5,940,000	5,464,000	7,729,000	5,181,000

Sharebased_Compensation_Detail

Share-based Compensation (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Share-based Compensation	'	'	'	'
Stock options granted (in shares)	503,600	69,000	1,678,000	626,981
Weighted-average estimated fair value (in dollars per share)	$0.76	$0.80	$0.61	$0.69
Share-based Compensation	'	'	'	'
Share-based Compensation expense	$437,562	$668,840	$851,844	$1,106,546
Cost of Sales [Member]	'	'	'	'
Share-based Compensation	'	'	'	'
Share-based Compensation expense	3,261	6,655	7,181	15,089
Selling, General and Administrative Expenses [Member]	'	'	'	'
Share-based Compensation	'	'	'	'
Share-based Compensation expense	346,606	532,789	662,100	834,398
Research and Development Expense [Member]	'	'	'	'
Share-based Compensation	'	'	'	'
Share-based Compensation expense	$87,695	$129,396	$182,563	$257,059

Goodwill_and_Amortizable_Intan2

Goodwill and Amortizable Intangible Assets (Details) (USD $)

3 Months Ended

6 Months Ended

6 Months Ended

12 Months Ended

6 Months Ended

12 Months Ended

6 Months Ended

12 Months Ended

6 Months Ended

12 Months Ended

3 Months Ended

6 Months Ended

3 Months Ended

6 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Jun. 30, 2013

Dec. 31, 2013

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2014

Dec. 31, 2013

Jun. 30, 2014

Dec. 31, 2013

Mar. 31, 2013

Jun. 30, 2013

Mar. 31, 2013

Jun. 30, 2013

Developed Technology Rights [Member]

Developed Technology Rights [Member]

Customer Relationships [Member]

Customer Relationships [Member]

Computer Software, Intangible Asset [Member]

Computer Software, Intangible Asset [Member]

Patents [Member]

Patents [Member]

Safend Ltd [Member]

Safend Ltd [Member]

Safend Ltd [Member]

Safend Ltd [Member]

Developed Technology Rights [Member]

Developed Technology Rights [Member]

Changes in the carrying amount of goodwill

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Balance at the beginning of the period

'

'

$1,448,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Impairment loss

'

'

'

2,590,000

'

'

'

'

'

'

'

'

'

2,600,000

2,600,000

'

'

Balance at the end of the period

1,448,000

'

1,448,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Impairment charge on developed technology intangible assets

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

1,600,000

1,600,000

Intangible Asset

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Gross Carrying Amount

12,224,000

'

12,224,000

'

12,224,000

6,426,000

6,426,000

3,972,000

3,972,000

726,000

726,000

1,100,000

1,100,000

'

'

'

'

Accumulated Amortization

-3,099,654

'

-3,099,654

'

-2,808,307

-1,279,550

-1,266,803

-793,327

-697,327

-110,110

-37,510

-916,667

-806,667

'

'

'

'

Accumulated Impairment loss

-6,824,773

'

-6,824,773

'

-6,824,773

-5,038,100

-5,038,100

-1,786,673

-1,786,673

'

'

'

'

'

'

'

'

Net

2,299,573

'

2,299,573

'

2,590,920

108,350

121,097

1,392,000

1,488,000

615,890

688,490

183,333

293,333

'

'

'

'

Weighted Average Remaining Useful Life

'

'

'

'

'

'4 years 2 months 12 days

'4 years 9 months 18 days

'7 years 2 months 12 days

'7 years 9 months 18 days

'4 years 2 months 12 days

'4 years 9 months 18 days

'9 months 18 days

'1 year 4 months 24 days

'

'

'

'

Estimated useful life

'

'

'

'

'

'

'

'

'

'5 years

'

'

'

'

'

'

'

Intangible assets amortization expense

$145,674

$109,374

$291,347

$292,156

'

'

'

'

'

'

'

'

'

'

'

'

'

Goodwill_and_Amortizable_Intan3

Goodwill and Amortizable Intangible Assets (Details 2) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Estimated Amortization Expense	'	'
Remainder of 2014	$292	'
2015	436	'
2016	363	'
2017	363	'
2018	318	'
Thereafter	528	'
Net	$2,299,573	$2,590,920

Income_Taxes_Details

Income Taxes (Details) (USD $)	Jun. 30, 2014
Income Taxes	'
Net operating loss	$300,100,000
Subsidiaries [Member]	'
Income Taxes	'
Net operating loss	8,200,000
Safend Ltd [Member]	'
Income Taxes	'
Net operating loss	$16,000,000

Segment_Reporting_Details

Segment Reporting (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Segment Reporting	'	'	'	'	'
Net Revenues	$4,439,820	$6,742,242	$9,772,359	$12,535,968	'
Segments net loss	-3,754,279	-3,432,071	-7,001,209	-13,589,290	'
Net other income (expense), net	-2,238	-8,363	-3,949	-6,732	'
Net interest expense	-39,013	-49,863	-83,877	-108,030	'
Net loss	-3,795,530	-3,490,297	-7,089,035	-13,704,052	'
Impairment of goodwill	'	'	'	2,590,000	'
Depreciation and amortization expense	225,251	231,360	461,899	547,269	'
Capital expenditures	40,004	42,225	64,762	136,148	'
Assets	15,369,710	'	15,369,710	'	11,824,909
Embassy Digital Security Products and Services [Member]	'	'	'	'	'
Segment Reporting	'	'	'	'	'
Net Revenues	3,089,603	5,627,124	7,017,638	10,247,910	'
Segments net loss	-4,383,707	-3,001,360	-8,118,283	-8,405,277	'
Depreciation and amortization expense	163,959	166,954	339,329	344,082	'
Capital expenditures	39,041	33,195	62,531	125,504	'
Assets	11,616,105	'	11,616,105	'	7,733,322
Safend Endpoint Data Loss Protection Products and Services [Member]	'	'	'	'	'
Segment Reporting	'	'	'	'	'
Net Revenues	1,350,217	1,115,118	2,754,721	2,288,058	'
Segments net loss	629,428	-430,711	1,117,074	-5,184,013	'
Impairment of goodwill	'	'	'	2,590,000	'
Depreciation and amortization expense	61,292	64,406	122,570	203,187	'
Capital expenditures	963	9,030	2,231	10,644	'
Assets	$3,753,605	'	$3,753,605	'	$4,091,587

Segment_Reporting_Details_2

Segment Reporting (Details 2) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Segment Reporting	'	'	'	'
Total net revenues	$4,439,820	$6,742,242	$9,772,359	$12,535,968
UNITED STATES	'	'	'	'
Segment Reporting	'	'	'	'
Total net revenues	2,959,211	4,506,207	6,523,291	8,773,592
Europe [Member]	'	'	'	'
Segment Reporting	'	'	'	'
Total net revenues	1,105,305	1,771,636	2,383,260	3,076,661
Asia [Member]	'	'	'	'
Segment Reporting	'	'	'	'
Total net revenues	375,304	464,399	865,808	685,715
Geographic Concentration Risk [Member] | UNITED STATES	'	'	'	'
Segment Reporting	'	'	'	'
% of total revenue	67.00%	67.00%	67.00%	70.00%
Geographic Concentration Risk [Member] | Europe [Member]	'	'	'	'
Segment Reporting	'	'	'	'
% of total revenue	25.00%	26.00%	24.00%	25.00%
Geographic Concentration Risk [Member] | Asia [Member]	'	'	'	'
Segment Reporting	'	'	'	'
% of total revenue	8.00%	7.00%	9.00%	5.00%
Sales Revenue, Segment [Member] | Geographic Concentration Risk [Member]	'	'	'	'
Segment Reporting	'	'	'	'
% of total revenue	100.00%	100.00%	100.00%	100.00%
Embassy Digital Security Products and Services [Member]	'	'	'	'
Segment Reporting	'	'	'	'
Total net revenues	3,089,603	5,627,124	7,017,638	10,247,910
Embassy Digital Security Products and Services [Member] | UNITED STATES	'	'	'	'
Segment Reporting	'	'	'	'
Total net revenues	2,279,031	4,078,689	5,113,915	7,801,676
Embassy Digital Security Products and Services [Member] | Europe [Member]	'	'	'	'
Segment Reporting	'	'	'	'
Total net revenues	543,592	1,180,565	1,243,862	1,927,259
Embassy Digital Security Products and Services [Member] | Asia [Member]	'	'	'	'
Segment Reporting	'	'	'	'
Total net revenues	266,980	367,870	659,861	518,975
Safend Endpoint Data Loss Protection Products and Services [Member]	'	'	'	'
Segment Reporting	'	'	'	'
Total net revenues	1,350,217	1,115,118	2,754,721	2,288,058
Safend Endpoint Data Loss Protection Products and Services [Member] | UNITED STATES	'	'	'	'
Segment Reporting	'	'	'	'
Total net revenues	680,180	427,518	1,409,376	971,916
Safend Endpoint Data Loss Protection Products and Services [Member] | Europe [Member]	'	'	'	'
Segment Reporting	'	'	'	'
Total net revenues	561,713	591,071	1,139,398	1,149,402
Safend Endpoint Data Loss Protection Products and Services [Member] | Asia [Member]	'	'	'	'
Segment Reporting	'	'	'	'
Total net revenues	$108,324	$96,529	$205,947	$166,740

Segment_Reporting_Details_3

Segment Reporting (Details 3) (Embassy Digital Security Products and Services [Member], Dell Inc [Member], USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Embassy Digital Security Products and Services [Member] | Dell Inc [Member]	'	'	'	'
Major customers, by segment	'	'	'	'
Revenue	$1,528,655	$3,225,452	$3,549,105	$5,683,862
% of total revenue	34.00%	48.00%	36.00%	45.00%

Issuance_of_Common_Stock_Detai

Issuance of Common Stock (Details) (USD $)

6 Months Ended

3 Months Ended

3 Months Ended

6 Months Ended

0 Months Ended

0 Months Ended

Jun. 30, 2014

Jun. 30, 2013

Jun. 30, 2014

Mar. 31, 2013

Mar. 13, 2013

Jun. 30, 2014

Mar. 31, 2014

Mar. 31, 2013

Jun. 30, 2014

Jun. 30, 2014

Mar. 31, 2014

Mar. 31, 2013

Jun. 30, 2014

Mar. 31, 2014

Mar. 31, 2013

Mar. 13, 2013

Jun. 11, 2014

Jun. 11, 2014

Jun. 01, 2013

Jun. 01, 2014

Common Class A [Member]

Common Class A [Member]

Common Class A [Member]

Common Class A [Member]

Common Class A [Member]

Common Class A [Member]

Common Class A [Member]

Common Class A [Member]

Common Class A [Member]

Common Class A [Member]

Common Class A [Member]

Common Class A [Member]

Common Class A [Member]

Common Class A [Member]

Common Class A [Member]

Common Class A [Member]

Employee Stock Purchase Plan 2004 [Member]

Employee Stock Purchase Plan 2004 [Member]

Employee and Nonemployees Stock Option [Member]

Employee and Nonemployees Stock Option [Member]

Warrants Issued, March 2013 [Member]

At the Market Sales Agreement [Member]

At the Market Sales Agreement [Member]

At the Market Sales Agreement [Member]

At the Market Sales Agreement [Member]

At the Market Sales Agreement [Member]

At the Market Sales Agreement [Member]

At the Market Sales Agreement [Member]

At the Market Sales Agreement [Member]

At the Market Sales Agreement [Member]

At the Market Sales Agreement [Member]

Equity Issuance [Member]

Shelf Registration 2011 [Member]

Shelf Registration 2011 [Member]

Common Class A [Member]

Common Class A [Member]

Minimum [Member]

Minimum [Member]

Minimum [Member]

Maximum [Member]

Maximum [Member]

Maximum [Member]

Warrants July 2013 Investors [Member]

Common Stock

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Net proceeds from issuance of common stock

$14,457,789

$5,473,428

'

'

'

$59,292

$5,323,717

$262,945

$5,383,000

'

'

'

'

'

'

$910,000

$9,075,000

'

'

'

Offering costs

'

'

'

'

'

3,000

169,000

8,700

171,000

'

'

'

'

'

'

'

'

'

'

'

Number of shares sold

'

'

'

'

'

44,666

5,365,784

94,988

5,410,450

'

'

'

'

'

'

301,205

5,225,560

'

'

'

Share price (in dollars per share)

'

'

'

'

'

'

'

'

'

$1.37

$0.90

$2.80

$1.39

$1.13

$2.92

$3.32

$1.90

'

'

$0.94

Gross proceeds from issuance of common stock

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

1,000,000

9,928,564

'

'

'

Placement agent fees equal to gross proceeds from offering (as a percent)

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

6.00%

7.00%

'

'

'

Placement agent fees

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

60,000

695,000

'

'

'

Legal and other fees

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

30,000

159,000

'

'

'

Number of shares under warrants

'

'

'

'

150,603

'

'

'

'

'

'

'

'

'

'

'

'

2,090,224

'

'

Exercise price of warrants (in dollars per share)

0.91

'

'

'

3.32

'

'

'

'

'

'

'

'

'

'

'

'

1.9

'

'

Proceeds from employee stock option exercises

'

42,039

121,862

42,039

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Stock Issued During Period, Shares, Employee Stock Purchase Plans

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

105,454

'

Issuance of shares upon exercise of employee stock options

'

'

133,914

12,983

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Excluding Stock Options

$99,495

$171,796

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

$99,495

'

Exercise price of employee stock options exercised (in dollars per share)

'

'

$0.91

$3.24

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Fair_Value_Measurement_Details

Fair Value Measurement (Details) (Fair Value, Measurements, Recurring [Member], Fair Value, Inputs, Level 1 [Member], USD $)	Jun. 30, 2014
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]	'
Disclosures about the Fair Value of Financial Instruments	'
Overnight money market funds	$7,707,231
Ratio for the net value of money market funds for each dollar invested based on quoted prices in active markets for identical assets (level 1)	1