------------------------------
OMB APPROVAL
------------------------------
OMB Number: 3235-0287
Expires: January 31, 2005
Estimated average burden
hours per response.........0.5
------------------------------
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 4
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
Section 17(a) of the Public Utility Holding Company Act of 1935 or
Section 30(h) of the Investment Company Act of 1940
|_| Check this box if no longer subject to Section 16. Form 4 or Form 5
obligations may continue. See Instruction 1(b).
(Print of Type Responses)
________________________________________________________________________________
1. Name and Address of Reporting Person*
Wave Systems Corp.
--------------------------------------------------------------------------------
(Last) (First) (Middle)
480 Pleasant Street
--------------------------------------------------------------------------------
(Street)
Lee MA 01238
--------------------------------------------------------------------------------
(City) (State) (Zip)
________________________________________________________________________________
2. Issuer Name and Ticker or Trading Symbol
SSP Solutions, Inc. (SSPX)
________________________________________________________________________________
3. IRS Identification Number of Reporting Person, if an Entity (Voluntary)
13-3477246
________________________________________________________________________________
4. Statement for Month/Day/Year
04/08/03
________________________________________________________________________________
5. If Amendment, Date of Original (Month/Day/Year)
--
________________________________________________________________________________
6. Relationship of Reporting Person to Issuer
(Check all applicable)
[_] Director [X] 10% Owner
[_] Officer (give title below) [_] Other (specify below)
________________________________________________________________________________
7. Individual or Joint/Group Filing (Check applicable line)
[X] Form filed by one Reporting Person
[_] Form filed by more than one Reporting Person
________________________________________________________________________________
================================================================================
Table I -- Non-Derivative Securities Acquired, Disposed of,
or Beneficially Owned
================================================================================
6.
4. 5. Owner-
Securities Acquired (A) or Amount of ship
2A. 3. Disposed of (D) Securities Form: 7.
Deemed Transaction (Instr. 3, 4 and 5) Beneficially Direct Nature of
2. Execution Code ------------------------------- Owned at End (D) or Indirect
1. Transaction Date, if (Instr. 8) (A) of Month Indirect Beneficial
Title of Security Date any ------------ Amount or Price (Instr. 3 (I) Ownership
(Instr. 3) (mm/dd/yy) (mm/dd/yy) Code V (D) and 4) (Instr.4) (Instr. 4)
------------------------------------------------------------------------------------------------------------------------------------
Common Stock 12/31/02 P 180,858 A $1.35(1) D
------------------------------------------------------------------------------------------------------------------------------------
Common Stock 04/07/03 S 20,000 D $0.55 D
------------------------------------------------------------------------------------------------------------------------------------
Common Stock 04/08/03 S 75,000 D $0.56 4,788,083 D
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
====================================================================================================================================
* If the Form is filed by more than one Reporting Person, see Instruction
4(b)(v).
Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly.
(Print or Type Response) (Over)
FORM 4 (continued)
Table II -- Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
================================================================================
9.
Number 10.
of Owner-
deriv- ship
ative Form
2. Secur- of
Conver- 5. 7. ities Deriv- 11.
sion Number of Title and Amount Bene- ative Nature
or Derivative 6. of Underlying 8. ficially Secur- of
Exer- 3A. 4. Securities Date Securities Price Owned ity: In-
cise Deemed Trans- Acquired (A) Exercisable and (Instr. 3 and 4) of Follow- Direct direct
Price 3. Execut- action or Disposed Expiration Date ---------------- Deriv- ing (D) or Bene-
1. of Trans- ion Code of(D) (Month/Day/Year) Amount ative Reported In- ficial
Title of Deriv- action Date if (Instr. (Instr. 3, ---------------- or Secur- Trans- direct Owner-
Derivative ative Date any 8) 4 and 5) Date Expira- Number ity action(s) (I) ship
Security Secur- (mm/dd/ (mm/dd/ ------ ------------ Exer- tion of (Instr. (Instr. (Instr. (Instr.
(Instr. 3) ity yy) yy) Code V (A) (D) cisable Date Title Shares 5) 4) 4) 4)
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
====================================================================================================================================
Explanation of Responses:
(1) Wave, in exchange for entering into a Termination Agreement and Mutual
Release covering the termination of development work to be performed by Wave
and the release from debt owed to Wave for development work performed,
received a convertible unsecured promissory note (the "Note") in the
principal amount of $270,000. The Note was convertible into 200,000 shares
at $1.35 per share by either Wave or the Issuer. Wave recognized 19,142 of
the shares on a Form 4 filed October 10, 2002 because, at that time, the
Note was only convertible to the extent Wave's beneficial ownership in the
Issuer did not exceed 19.9999%. With such restriction no longer in place,
the Issuer converted the Note for the entire 200,000 shares in December 2002
without notice to Wave. Wave was only recently made aware of the
conversion.
WAVE SYSTEMS CORP.
By: /s/ Steven K. Sprague April 9, 2003
--------------------------------------------- -----------------------
**Signature of Reporting Person Date
Steven K. Sprague, its President and Chief Executive Officer
Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction
4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal
Criminal Violations.
See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed.
If space provided is insufficient, see Instruction 6 for procedure.
Page 2