Wave Systems (WAVX) 8-K Entry into a Material Definitive Agreement

Case 16-10284-KJC    Doc 189    Filed 06/29/16    Page 1 of 11

Exhibit 99.6

UNITED STATES BANKRUPTCY COURT

                     DISTRICT OF DELAWARE

In re Wave Systems Corp.	Case No. 16-10284 (KJC)
Debtor

INITIAL MONTHLY OPERATING REPORT

File report and attachments with Court and submit copy to United States Trustee within 15 days after order for relief.

Certificates of insurance must name United States Trustee as a party to be notified in the event of policy cancellation. Bank accounts and checks must bear the name of the debtor, the case number, and the designation “Debtor in Possession.” Examples of acceptable evidence of Debtor in Possession Bank accounts include voided checks, copy of bank deposit agreement/certificate of authority, signature card, and/or corporate checking resolution.

REQUIRED DOCUMENTS	Document Attached	Explanation Attached
12-Month Cash Flow Projection (Form IR-1)	Exhibit 1
Certificates of Insurance:	Exhibit 2
Workers Compensation	see Ex 2
Property	see Ex 2
General Liability	see Ex 2
Vehicle	N/A
Other:
Identify areas of self-insurance w/ liability caps	N/A
Evidence of Debtor in Possession Bank Accounts	Exhibit 3
Tax Escrow Account
General Operating Account	see Ex 3
Money Market Account pursuant to Local Rule 4001-3. Refer tohttp://www.deb.uscourts.gov/	N/A
Other: Bidder Deposit Account	see Ex 3
Retainers Paid (Form IR-2)	Exhibit 4

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the documents attached are true and correct to the best of my knowledge and belief.

/s/ David W. Carickhoff	June 29, 2016
David W. Carickhoff - Chapter 11 Trustee	Date

FORM IR

(4/07)

Case 16-10284-KJC    Doc 189    Filed 06/29/16    Page 2 of 11

Exhibit 1

Case 16-10284-KJC    Doc 189    Filed 06/29/16    Page 3 of 11

In re Wave Systems Corp.	Case No. 16-10284 (KJC)
Debtor

CASH FLOW PROJECTIONS FOR THE 12 MONTH PERIOD: See attached budget through 8/19/16

This schedule must be filed with the Court and a copy submitted to the United States Trustee within 15 days after the order for relief. Amended cash flow projections should be submitted as necessary.

Month

Month

Month

Month

Month

Month

Month

Month

Month

Month

Month

Month

Total

Cash Beginning of Month

RECEIPTS

CASH SALES

ACCOUNTS RECEIVABLE

LOANS AND ADVANCES

SALE OF ASSETS

OTHER (ATTACH LIST)

TOTAL RECEIPTS

DISBURSEMENTS

NET PAYROLL

PAYROLL TAXES

SALES, USE, AND OTHER TAXES

INVENTORY PURCHASES

SECURED RENTAL/LEASES

INSURANCE

ADMINISTRATIVE & SELLING

OTHER (ATTACH LIST)

PROFESSIONAL FEES

US TRUSTEE FEES

COURT COSTS

TOTAL DISBURSEMENTS

NET CASH FLOW

(RECEIPTS LESS DISBURSEMENTS)

Cash End of Month

FORM IR-1

(4/07)

Case 16-10284-KJC    Doc 189    Filed 06/29/16    Page 4 of 11

Wave Systems, Inc.

13 Week Cash Flow Forecast

For the period beginning May 23, 2016

Week Ended		1 5/27/16			2 6/3/16				3 6/10/16			4 6/17/16			5 6/24/16			6 7/1/16			7 7/8/16			8 7/15/16			9 7/22/16			10 7/29/16			11 8/5/16			12 8/12/16			13 8/19/16			TOTAL
Beginning Cash Position		$	80,000		$	100,373			$	100,459		$	100,709		$	100,865		$	101,031		$	101,135		$	101,455		$	101,559		$	102,133		$	102,462		$	102,566		$	102,749		$	80,000
Total Receipts										9,500						20,000																											29,500
Disbursements:
Employee Wages			44,525			44,525				45,000			45,000			45,000			55,000			55,000			55,000			55,000			55,000			55,000			55,000			55,000			664,050
Employee Benefits			4,453			4,453		��		4,453			4,633			4,933			4,933			4,933			4,933			5,233			5,233			5,233			5,233			5,233			63,883
Outside Contractors			10,000													20,000												20,000												20,000			70,000
Operating Disbursements
Data Center and Telephone			6,500													6,500												6,500												6,500			26,000
Office Rent and Op Costs																																											—
Ordinary Course Professionals			10,000													10,000												10,000												10,000			40,000
Insurance			50,000																																								50,000
Hardware/Software Licenses			10,000																																								10,000
Marketing Travel			5,000													5,000												5,000												5,000			20,000
Marketing Support																																											—
Other Expenses			5,000													5,000												5,000												5,000			20,000
Total Operating Disbursements			86,500			—				—			—			26,500			—			—			—			26,500			—			—			—			26,500			166,000
Restructuring Costs
US Trustee Fees																															4,850												4,850
Ch. 11 Trustee Professionals																												225,000			—												225,000
ESW Legal			50,000							105,000												105,000									105,000												365,000
DIP Interest						373				458			709			864			1,031			1,134			1,454			1,558			2,132			2,461			2,566			2,748			17,487
Claims/Noticing Agent													40,000			20,000						20,000									20,000						45,000			15,000			160,000
Total Restructuring Costs			50,000			373				105,458			40,709			20,864			1,031			126,134			1,454			226,558			131,982			2,461			47,566			17,748			772,337
Total Disbursements			195,478			49,350				154,910			90,341			117,296			60,963			186,067			61,387			333,291			192,215			62,694			107,798			124,480			1,736,270
Net Cash Flow			(195,478	)		(49,350	)			(145,410	)		(90,341	)		(97,296	)		(60,963	)		(186,067	)		(61,387	)		(333,291	)		(192,215	)		(62,694	)		(107,798	)		(124,480	)		(1,706,770	)
Cash Balance Before DIP Funding			(115,478	)		51,023				(44,952	)		10,368			3,569			40,068			(84,932	)		40,068			(231,732	)		(90,082	)		39,769			(5,232	)		(21,732	)		(1,626,770	)
New DIP Funding			215,478			48,978				144,952			89,633			96,432			59,933			184,932			59,933			331,732			190,083			60,232			105,233			121,732			1,709,283
New DIP Interest	0.09		373			458				709			864			1,031			1,134			1,454			1,558			2,132			2,461			2,566			2,748			2,958			20,446
Ending Cash Balance		$	100,373		$	100,459			$	100,709		$	100,865		$	101,031		$	101,135		$	101,455		$	101,559		$	102,133		$	102,462		$	102,566		$	102,749		$	102,959		$	102,959
NOTES:
Cumulative Dip balance			(215,478	)		(264,456	)			(409,408	)		(499,041	)		(595,473	)		(655,406	)		(840,338	)		(900,271	)		(1,232,003	)		(1,422,086	)		(1,482,318	)		(1,587,551	)		(1,709,283	)
Interest Calc			(372.94	)		(457.71	)			(708.59	)		(863.72	)		(1,030.63	)		(1,134.36	)		(1,454.43	)		(1,558.16	)		(2,132.31	)		(2,461.30	)		(2,565.55	)		(2,747.68	)		(2,958.37	)
Cumulative Interest balance						(830.66	)			(1,539.25	)		(2,402.97	)		(3,433.60	)		(4,567.95	)		(6,022.38	)		(7,580.55	)		(9,712.86	)		(12,174.16	)		(14,739.71	)		(17,487.40	)		(20,445.77	)

Wave Systems Post-Petition Budget 5 23 16 HB 5 23 16_15745485(5) (4) DRAFT AND CONFIDENTIAL NOT FOR FURTHER CIRCULATION SUBJECT TO FRE 408 5/25/2016 2:43 PM

Case 16-10284-KJC    Doc 189    Filed 06/29/16    Page 5 of 11

Wave Systems Corp.

Professional Fee Budget - Accrual basis

For the period beginning May 23, 2016

Week ended	1 5/27/2016		2 6/3/2016		3 6/10/2016		4 6/17/2016		5 6/24/2016		6 7/1/2016		7 7/8/2016		8 7/15/2016		9 7/22/2016		10 7/29/2016		11 8/5/2016		12 8/12/2016		13 8/19/2016		TOTAL
Ch. 11 Trustee Professionals																												—
Archer & Greiner		35,000		30,000		35,000		35,000		30,000		30,000		35,000		45,000		45,000		45,000		45,000		40,000		40,000		490,000
Guiliano Miller		20,000		15,000		20,000		15,000		15,000		15,000		25,000		25,000		20,000		20,000		20,000		20,000		20,000		250,000
Total		55,000		45,000		55,000		50,000		45,000		45,000		60,000		70,000		65,000		65,000		65,000		60,000		60,000		740,000

Wave Systems Post-Petition Budget 5 23 16 HB 5 23 16_15745485(5) (4) DRAFT AND CONFIDENTIAL NOT FOR FURTHER CIRCULATION SUBJECT TO FRE 408 5/25/2016 2:43 PM

Case 16-10284-KJC    Doc 189    Filed 06/29/16    Page 6 of 11

Exhibit 2

The chapter 11 trustee is in the process of retaining certain employees and obtaining certain insurance coverage. Certificates of insurance will be filed in an amended report.

Case 16-10284-KJC    Doc 189    Filed 06/29/16    Page 7 of 11

Exhibit 3

Case 16-10284-KJC    Doc 189    Filed 06/29/16    Page 8 of 11

	Rabobank, N.A. P.O. Box 6010 Santa Maria, CA 93456	Interim Statement Start:       Interim Statement End:	June 01, 2016 June 16, 2016 Page 1 of 2
		Case Number: Case Name:	16-10284(KJC) WAVE SYSTEMS CORP.,
Mr. David W. Carickhoff		Trustee Number:
300 Delaware Ave               Suite 1100               Wilmington, DE 19801		Trustee Name:	Mr. David W. Carickhoff
			Questions: (800) 634-7734, ext. 8 bmsbankingcenter@bms7.comwww.bms7.com

Account number	9566	Beginning balance	$	708,471.12
		Total additions	$	0.00
		Total subtractions	$	90,335.71
		Ending balance	$	618,135.41

Case 16-10284-KJC    Doc 189    Filed 06/29/16    Page 9 of 11

	Rabobank, N.A. P.O. Box 6010 Santa Maria, CA 93456	Interim Statement Start:       Interim Statement End:	June 01, 2016 June 16, 2016 Page 1 of 1
		Case Number: Case Name:	16-10284(KJC) WAVE SYSTEMS CORP.,
Mr. David W. Carickhoff		Trustee Number:
300 Delaware Ave               Suite 1100               Wilmington, DE 19801		Trustee Name:	Mr. David W. Carickhoff
			Questions: (800) 634-7734, ext. 8 bmsbankingcenter@bms7.comwww.bms7.com

Account number	9567	Beginning balance	$	0.00
		Total additions	$	3,800,000.00
		Total subtractions	$	0.00
		Ending balance	$	3,800,000.00

Case 16-10284-KJC    Doc 189    Filed 06/29/16    Page 10 of 11

Exhibit 4

Case 16-10284-KJC    Doc 189    Filed 06/29/16    Page 11 of 11

In re Wave Systems Corp.	Case No. 16-10284 (KJC)
Debtor	Reporting Period: Initial Report

SCHEDULE OF RETAINERS PAID TO PROFESSIONALS

(This schedule is to include each Professional paid a retainer ¹)

	Check						Amount Applied
Payee	Date		Number	Name of Payor	Amount		to Date		Balance
Young Conaway Stargat		7/15 - 01/1	Various	Wave Systems Corp.	$	85,000.00	$	85,000.00	$	0.00

¹  Identify all Evergreen Retainers

Form IR-2

(4/07)