SECURITIES AND EXCHANGE COMMISSION
WASHINGTON DC 20549
Securities Exchange Act of 1934
Date of report(Date of earliest event reported) September 28, 2015
WAVE SYSTEMS CORP.
(Exact Name of Registrant as Specified in Charter)
(State or Other Jurisdiction of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)
480 Pleasant Street, Lee, Massachusetts 01238
(Address of Principal Executive Offices) (ZIP Code)
Registrant's telephone number, including area code (413) 243-1600
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 4.01. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT.
On September 28, 2015, Wave Systems Corp. (the "Company”) was notified by KPMG LLP (“KPMG”) that the firm resigned as the Registrant’s independent registered public accounting firm effective upon the Company filing its September 30, 2015 Form 10-Q.
During the years ended December 31, 2014 and 2013, and the subsequent interim period through September 28, 2015, there were no: (1) disagreements with KPMG on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which disagreements if not resolved to their satisfaction would have caused them to make reference in connection with their opinion to the subject matter of the disagreement, or (2) reportable events as defined in Item 304(a)(1)(v) of Regulation S-K except as described below with respect to the material weakness in 2013. The audit reports of KPMG on the consolidated financial statements of the Company as of and for the years ended December 31, 2014 and 2013 did not contain any adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope, or accounting principles, except for:
- a separate paragraph stating that "the Company has suffered recurring losses from operations and has a net capital deficiency that raise substantial doubt about its ability to continue as a going concern. The Company's plans in regard to these matters are also described in Note 4. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty." and
- a separate paragraph stating "in accordance with the standards of the Public Company Accounting Oversight Board (United States), the Company's internal control over financial reporting as of December 31, 2013, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and our report dated March 14, 2014 expressed an adverse opinion on the effectiveness of the Company's internal control over financial reporting." The material weakness that resulted in the 2013 adverse opinion was remediated during 2014 and there were no material weaknesses identified in 2014.
The Company provided KPMG with a copy of this disclosure set forth under this Item 4.01 and was requested to furnish a letter addressed to the Securities & Exchange Commission stating whether or not it agrees with the above statements.
A copy of the letter from KPMG is attached hereto as Exhibit 16.1.
After receiving the notification from KPMG, the Company began its search for a new independent registered public accounting firm.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
16.1 Letter dated October 2, 2015 from KPMG LLP
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.
WAVE SYSTEMS CORP.
By: /s/ Walter A. Shephard_________________
Walter A. Shephard
Chief Financial Officer
Dated: October 2, 2015