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2,500 | non-interest income was $ 68.1 million compared to non-interest income of $ 66.3 million and $ 30.6 million for the fiscal years ended june 30 , 2017 , 2016 and 2015 . the increase from fiscal year 2016 to fiscal year 2017 was primarily the result of an increase of $ 5.9 million in banking service fees due to increased fees from h & r block-branded products , a mortgage banking income increase of $ 3.2 million , an increase in realized gain from sale of securities of $ 2.5 million , and increased levels of prepayment penalty fee income of $ 1.7 million partially offset by a decrease of $ 11.1 million in gain on sale-other primarily from reduced sales of structured settlements . the increase from 2015 to 2016 was primarily due to increased banking service fees due to increased fees from h & r block-branded products and gain on sale-other primarily from sales of structured settlements . 32 non-interest expense for the fiscal year ended june 30 , 2017 was $ 137.6 million compared to $ 112.8 million and $ 77.5 million for the years ended june 30 , 2016 and 2015 , respectively . the increase was primarily due to an increase in the bank 's staffing for lending , information technology infrastructure development and regulatory compliance . our staffing rose to 681 full-time equivalents compared to 647 and 467 at june 30 , 2017 , 2016 and 2015 , respectively . total assets were $ 8,501.7 million at june 30 , 2017 compared to $ 7,599.3 million at june 30 , 2016 . assets grew $ 902.4 million or 11.9 % during the last fiscal year , primarily due to an increase in the origination of single family mortgage loans and c & i loans . these loans were funded primarily with growth in deposits . our future performance will depend on many factors : changes in interest rates , competition for deposits and quality loans , the credit performance of our assets , regulatory actions , strategic transactions , and our ability to improve operating efficiencies . see โ item 1a . risk factors . โ mergers and acquisitions from time to time we undertake acquisitions or similar transactions consistent with the bank 's operating and growth strategies . during the fiscal years ended june 30 , 2015 and june 30 , 2016 , there were three acquisitions , which are discussed below . no acquisitions occurred during the fiscal year ended june 30 , 2017. union federal deposit acquisition in september 2014 , the bank completed the acquisition of approximately $ 42 million in deposits consisting of individual checking , money market savings , and cd accounts from union federal savings bank ( โ union โ ) and its parent company , the first marblehead corporation . h & r block bank deposit acquisition on august 31 , 2015 , our bank completed the acquisition of approximately $ 419 million in deposits consisting of checking , individual retirement savings , and cd accounts from h & r block bank and its parent company , h & r block , inc. ( โ h & r block โ ) . in connection with the closing of this transaction : ( i ) our bank and emerald financial services , llc , a delaware limited liability company and wholly-owned subsidiary of h & r block ( โ efs โ ) , entered into the program management agreement ( โ pma โ ) , dated august 31 , 2015 ; ( ii ) our bank and h & r block , efs , hrb participant i , llc , a delaware limited liability company and wholly-owned subsidiary of h & r block , entered into the emerald receivables participation agreement , dated august 31 , 2015 ; and ( iii ) our bank and h & r block entered into the guaranty agreement ( together , the โ pma and related agreements โ ) , dated august 31 , 2015. through the pma and related agreements our bank will provide h & r block-branded financial services products and services . the three products and services that represent the primary focus and the majority of transactional volume that our bank will process are described in detail below . the first product is emerald prepaid mastercard ยฎ services ( โ epc โ ) , which is under schedule a of the pma . our bank is responsible for the primary oversight and control of the prepaid card programs of a wholly owned subsidiary of h & r block . under the pma and related agreements , our bank holds the prepaid card customer deposits for those cards issued under the prepaid programs in non-interest bearing accounts and earns a fixed fee paid by h & r block 's subsidiary for each automated clearing house ( โ ach โ ) transaction processed through the prepaid card customer accounts . a portion of h & r block 's customers use the emerald card as an option to receive federal and state income tax refunds . the prepaid customer deposits are included in non-interest bearing deposit liabilities on our balance sheet and the ach fee income is included in our income statement under the line banking service fees and other income . the second product is refund transfer ( โ rt โ ) , which is under schedule b of the pma . our bank is responsible for the primary oversight and control of the refund transfer program of a wholly owned subsidiary of h & r block . under the pma and related agreements , our bank opens a temporary bank account for each h & r block customer who is receiving an income tax refund and elects to defer payment of his or her tax preparations fees . story_separator_special_tag we are subject to federal and state income taxes , and our effective tax rates were 42.10 % , 41.78 % and 41.30 % for the fiscal years ended june 30 , 2017 , 2016 , and 2015 , respectively . other factors that affect our results of operations include expenses relating to professional services , occupancy , data processing , advertising and other miscellaneous expenses . comparison of the fiscal year ended june 30 , 2017 and june 30 , 2016 net interest income . net interest income totaled $ 313.2 million for the fiscal year ended june 30 , 2017 compared to $ 261.0 million for the fiscal year ended june 30 , 2016 . the following table sets forth the effects of changing rates and volumes on our net interest income . information is provided with respect to ( i ) effects on interest income and interest expense attributable to changes in volume ( changes in volume multiplied by prior rate ) ; ( ii ) effects on interest income and interest expense attributable to changes in rate ( changes in rate multiplied by prior volume ) ; and ( iii ) changes in rate/volume ( change in rate multiplied by change in volume ) : replace_table_token_17_th interest income . interest income for the fiscal year ended june 30 , 2017 totaled $ 387.3 million , an increase of $ 69.6 million , or 21.9 % , compared to $ 317.7 million in interest income for the fiscal year ended june 30 , 2016 primarily due to growth in volume of interest-earning assets . average interest-earning assets for the fiscal year ended june 30 , 2017 increased by $ 1,243.8 million compared to the fiscal year ended june 30 , 2016 primarily due to loan and lease originations for investment which increased $ 548.8 million and loan and lease purchases for investment which increased $ 136.4 million during the year ended june 30 , 2017 . yields on loans and leases increased by 14 basis points to 5.26 % for the fiscal year ended june 30 , 2017 , primarily due to increased yields in the single family , commercial & industrial and h & r block-branded loan products . for the fiscal year ended june 30 , 2017 , the growth in average balances contributed additional interest income of $ 56.3 million , which was supplemented by a $ 11.3 million increase in interest income due to the increase in average rate . the average yield earned on our interest-earning assets increased to 4.89 % for the fiscal year ended june 30 , 2017 , up from 4.75 % for the same period in 2016 primarily due to the increase in rate from loans and leases . 38 interest expense . interest expense totaled $ 74.1 million for the fiscal year ended june 30 , 2017 , an increase of $ 17.4 million , or 30.6 % compared to $ 56.7 million in interest expense during the fiscal year ended june 30 , 2016 , due primarily to increased volumes of deposits and other borrowings as well as increased rates on deposits and advances . the average rate paid on all of our interest-bearing liabilities increased to 1.15 % for the fiscal year ended june 30 , 2017 from 1.05 % for the fiscal year ended june 30 , 2016 , due primarily to increased rates on deposits and advances from fhlb . average interest-bearing liabilities for the fiscal year ended june 30 , 2017 increased $ 1,035.5 million compared to fiscal 2016 . the average interest-bearing balances of demand and savings increased $ 970.3 million and the average interest-bearing balances increased $ 1,035.5 million due to increased deposits and the full year impact of our subordinated notes issued in march 2016. the average rate on interest-bearing deposits increased to 0.75 % from 0.67 % due to increases in prevailing deposit rates across the industry . the rates on advances from the fhlb also increased to 1.55 % from 1.31 % due primarily to the fed rate increases . the average rate on time deposits increased to 2.33 % for the fiscal year ended june 30 , 2017 from 2.12 % for the fiscal year ended june 30 , 2016 , due to issuance of longer term time deposits . the average non-interest-bearing demand deposits were $ 774.4 million for the fiscal year ended june 30 , 2017 , representing an increase of $ 34.6 million . provision for loan and lease losses . provision for loan and lease losses was $ 11.1 million for the fiscal year ended june 30 , 2017 and $ 9.7 million for fiscal 2016 . the provisions are made to maintain our allowance for loan and lease losses at levels which management believes to be adequate . the assessment of the adequacy of our allowance for loan and lease losses is based upon a number of quantitative and qualitative factors , including levels and trends of past due and nonaccrual loans , loss history and changes in the volume and mix of loans and collateral values . see โ asset quality and allowance for loan and lease losses โ for discussion of our allowance for loan and lease losses and the related loss provisions . non-interest income . the following table sets forth information regarding our non-interest income : replace_table_token_18_th non-interest income totaled $ 68.1 million for the fiscal year ended june 30 , 2017 compared to non-interest income of $ 66.3 million for fiscal 2016 . the increase was primarily the result of an increase of $ 5.9 million in banking service fees due to h & r block-branded products and service fee income , an increase in mortgage banking income of $ 3.2 million , an increase in realized gain from sale of securities of $ 2.5 million , and increased levels of prepayment penalty fee income of $ 1.7 million , partially offset by a $ 11.1
| liquidity . our sources of liquidity include deposits , borrowings , payments and maturities of outstanding loans , sales of loans , maturities or gains on sales of investment securities and other short-term investments . while scheduled loan payments and maturing investment securities and short-term investments are relatively predictable sources of funds , deposit flows and loan prepayments are greatly influenced by general interest rates , economic conditions and competition . we generally invest excess funds in overnight deposits and other short-term interest-earning assets . we use cash generated through retail deposits , our largest funding source , to offset the cash utilized in lending and investing activities . our short-term interest-earning investment securities are also used to provide liquidity for lending and other operational requirements . as an additional source of funds , we have two credit agreements . bofi federal bank can borrow up to 40 % of its total assets from the fhlb . borrowings are collateralized by pledging certain mortgage loans and investment securities to the fhlb . based on loans and securities pledged at june 30 , 2017 , we had a total borrowing availability of approximately $ 1.2 billion and an additional $ 157.6 million available with additional collateral . the bank can also borrow from the discount window at the frb . frb borrowings are collateralized by commercial loans , consumer loans and mortgage-backed securities pledged to the frb . based on loans and securities pledged at june 30 , 2017 , we had a total borrowing capacity of approximately $ 1.3 million , all of which was available for use . at june 30 , 2017 , we also had $ 35.0 million in unsecured fed funds purchase lines with two major banks under which there were no borrowings outstanding . in the past , we have used long-term borrowings to fund our loans and to minimize our interest rate risk . our future borrowings will depend on the growth of our lending operations and our exposure to interest rate risk . we expect to continue to use deposits and advances from the fhlb as the primary sources of funding our future asset growth .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity . our sources of liquidity include deposits , borrowings , payments and maturities of outstanding loans , sales of loans , maturities or gains on sales of investment securities and other short-term investments . while scheduled loan payments and maturing investment securities and short-term investments are relatively predictable sources of funds , deposit flows and loan prepayments are greatly influenced by general interest rates , economic conditions and competition . we generally invest excess funds in overnight deposits and other short-term interest-earning assets . we use cash generated through retail deposits , our largest funding source , to offset the cash utilized in lending and investing activities . our short-term interest-earning investment securities are also used to provide liquidity for lending and other operational requirements . as an additional source of funds , we have two credit agreements . bofi federal bank can borrow up to 40 % of its total assets from the fhlb . borrowings are collateralized by pledging certain mortgage loans and investment securities to the fhlb . based on loans and securities pledged at june 30 , 2017 , we had a total borrowing availability of approximately $ 1.2 billion and an additional $ 157.6 million available with additional collateral . the bank can also borrow from the discount window at the frb . frb borrowings are collateralized by commercial loans , consumer loans and mortgage-backed securities pledged to the frb . based on loans and securities pledged at june 30 , 2017 , we had a total borrowing capacity of approximately $ 1.3 million , all of which was available for use . at june 30 , 2017 , we also had $ 35.0 million in unsecured fed funds purchase lines with two major banks under which there were no borrowings outstanding . in the past , we have used long-term borrowings to fund our loans and to minimize our interest rate risk . our future borrowings will depend on the growth of our lending operations and our exposure to interest rate risk . we expect to continue to use deposits and advances from the fhlb as the primary sources of funding our future asset growth .
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Suspicious Activity Report : non-interest income was $ 68.1 million compared to non-interest income of $ 66.3 million and $ 30.6 million for the fiscal years ended june 30 , 2017 , 2016 and 2015 . the increase from fiscal year 2016 to fiscal year 2017 was primarily the result of an increase of $ 5.9 million in banking service fees due to increased fees from h & r block-branded products , a mortgage banking income increase of $ 3.2 million , an increase in realized gain from sale of securities of $ 2.5 million , and increased levels of prepayment penalty fee income of $ 1.7 million partially offset by a decrease of $ 11.1 million in gain on sale-other primarily from reduced sales of structured settlements . the increase from 2015 to 2016 was primarily due to increased banking service fees due to increased fees from h & r block-branded products and gain on sale-other primarily from sales of structured settlements . 32 non-interest expense for the fiscal year ended june 30 , 2017 was $ 137.6 million compared to $ 112.8 million and $ 77.5 million for the years ended june 30 , 2016 and 2015 , respectively . the increase was primarily due to an increase in the bank 's staffing for lending , information technology infrastructure development and regulatory compliance . our staffing rose to 681 full-time equivalents compared to 647 and 467 at june 30 , 2017 , 2016 and 2015 , respectively . total assets were $ 8,501.7 million at june 30 , 2017 compared to $ 7,599.3 million at june 30 , 2016 . assets grew $ 902.4 million or 11.9 % during the last fiscal year , primarily due to an increase in the origination of single family mortgage loans and c & i loans . these loans were funded primarily with growth in deposits . our future performance will depend on many factors : changes in interest rates , competition for deposits and quality loans , the credit performance of our assets , regulatory actions , strategic transactions , and our ability to improve operating efficiencies . see โ item 1a . risk factors . โ mergers and acquisitions from time to time we undertake acquisitions or similar transactions consistent with the bank 's operating and growth strategies . during the fiscal years ended june 30 , 2015 and june 30 , 2016 , there were three acquisitions , which are discussed below . no acquisitions occurred during the fiscal year ended june 30 , 2017. union federal deposit acquisition in september 2014 , the bank completed the acquisition of approximately $ 42 million in deposits consisting of individual checking , money market savings , and cd accounts from union federal savings bank ( โ union โ ) and its parent company , the first marblehead corporation . h & r block bank deposit acquisition on august 31 , 2015 , our bank completed the acquisition of approximately $ 419 million in deposits consisting of checking , individual retirement savings , and cd accounts from h & r block bank and its parent company , h & r block , inc. ( โ h & r block โ ) . in connection with the closing of this transaction : ( i ) our bank and emerald financial services , llc , a delaware limited liability company and wholly-owned subsidiary of h & r block ( โ efs โ ) , entered into the program management agreement ( โ pma โ ) , dated august 31 , 2015 ; ( ii ) our bank and h & r block , efs , hrb participant i , llc , a delaware limited liability company and wholly-owned subsidiary of h & r block , entered into the emerald receivables participation agreement , dated august 31 , 2015 ; and ( iii ) our bank and h & r block entered into the guaranty agreement ( together , the โ pma and related agreements โ ) , dated august 31 , 2015. through the pma and related agreements our bank will provide h & r block-branded financial services products and services . the three products and services that represent the primary focus and the majority of transactional volume that our bank will process are described in detail below . the first product is emerald prepaid mastercard ยฎ services ( โ epc โ ) , which is under schedule a of the pma . our bank is responsible for the primary oversight and control of the prepaid card programs of a wholly owned subsidiary of h & r block . under the pma and related agreements , our bank holds the prepaid card customer deposits for those cards issued under the prepaid programs in non-interest bearing accounts and earns a fixed fee paid by h & r block 's subsidiary for each automated clearing house ( โ ach โ ) transaction processed through the prepaid card customer accounts . a portion of h & r block 's customers use the emerald card as an option to receive federal and state income tax refunds . the prepaid customer deposits are included in non-interest bearing deposit liabilities on our balance sheet and the ach fee income is included in our income statement under the line banking service fees and other income . the second product is refund transfer ( โ rt โ ) , which is under schedule b of the pma . our bank is responsible for the primary oversight and control of the refund transfer program of a wholly owned subsidiary of h & r block . under the pma and related agreements , our bank opens a temporary bank account for each h & r block customer who is receiving an income tax refund and elects to defer payment of his or her tax preparations fees . story_separator_special_tag we are subject to federal and state income taxes , and our effective tax rates were 42.10 % , 41.78 % and 41.30 % for the fiscal years ended june 30 , 2017 , 2016 , and 2015 , respectively . other factors that affect our results of operations include expenses relating to professional services , occupancy , data processing , advertising and other miscellaneous expenses . comparison of the fiscal year ended june 30 , 2017 and june 30 , 2016 net interest income . net interest income totaled $ 313.2 million for the fiscal year ended june 30 , 2017 compared to $ 261.0 million for the fiscal year ended june 30 , 2016 . the following table sets forth the effects of changing rates and volumes on our net interest income . information is provided with respect to ( i ) effects on interest income and interest expense attributable to changes in volume ( changes in volume multiplied by prior rate ) ; ( ii ) effects on interest income and interest expense attributable to changes in rate ( changes in rate multiplied by prior volume ) ; and ( iii ) changes in rate/volume ( change in rate multiplied by change in volume ) : replace_table_token_17_th interest income . interest income for the fiscal year ended june 30 , 2017 totaled $ 387.3 million , an increase of $ 69.6 million , or 21.9 % , compared to $ 317.7 million in interest income for the fiscal year ended june 30 , 2016 primarily due to growth in volume of interest-earning assets . average interest-earning assets for the fiscal year ended june 30 , 2017 increased by $ 1,243.8 million compared to the fiscal year ended june 30 , 2016 primarily due to loan and lease originations for investment which increased $ 548.8 million and loan and lease purchases for investment which increased $ 136.4 million during the year ended june 30 , 2017 . yields on loans and leases increased by 14 basis points to 5.26 % for the fiscal year ended june 30 , 2017 , primarily due to increased yields in the single family , commercial & industrial and h & r block-branded loan products . for the fiscal year ended june 30 , 2017 , the growth in average balances contributed additional interest income of $ 56.3 million , which was supplemented by a $ 11.3 million increase in interest income due to the increase in average rate . the average yield earned on our interest-earning assets increased to 4.89 % for the fiscal year ended june 30 , 2017 , up from 4.75 % for the same period in 2016 primarily due to the increase in rate from loans and leases . 38 interest expense . interest expense totaled $ 74.1 million for the fiscal year ended june 30 , 2017 , an increase of $ 17.4 million , or 30.6 % compared to $ 56.7 million in interest expense during the fiscal year ended june 30 , 2016 , due primarily to increased volumes of deposits and other borrowings as well as increased rates on deposits and advances . the average rate paid on all of our interest-bearing liabilities increased to 1.15 % for the fiscal year ended june 30 , 2017 from 1.05 % for the fiscal year ended june 30 , 2016 , due primarily to increased rates on deposits and advances from fhlb . average interest-bearing liabilities for the fiscal year ended june 30 , 2017 increased $ 1,035.5 million compared to fiscal 2016 . the average interest-bearing balances of demand and savings increased $ 970.3 million and the average interest-bearing balances increased $ 1,035.5 million due to increased deposits and the full year impact of our subordinated notes issued in march 2016. the average rate on interest-bearing deposits increased to 0.75 % from 0.67 % due to increases in prevailing deposit rates across the industry . the rates on advances from the fhlb also increased to 1.55 % from 1.31 % due primarily to the fed rate increases . the average rate on time deposits increased to 2.33 % for the fiscal year ended june 30 , 2017 from 2.12 % for the fiscal year ended june 30 , 2016 , due to issuance of longer term time deposits . the average non-interest-bearing demand deposits were $ 774.4 million for the fiscal year ended june 30 , 2017 , representing an increase of $ 34.6 million . provision for loan and lease losses . provision for loan and lease losses was $ 11.1 million for the fiscal year ended june 30 , 2017 and $ 9.7 million for fiscal 2016 . the provisions are made to maintain our allowance for loan and lease losses at levels which management believes to be adequate . the assessment of the adequacy of our allowance for loan and lease losses is based upon a number of quantitative and qualitative factors , including levels and trends of past due and nonaccrual loans , loss history and changes in the volume and mix of loans and collateral values . see โ asset quality and allowance for loan and lease losses โ for discussion of our allowance for loan and lease losses and the related loss provisions . non-interest income . the following table sets forth information regarding our non-interest income : replace_table_token_18_th non-interest income totaled $ 68.1 million for the fiscal year ended june 30 , 2017 compared to non-interest income of $ 66.3 million for fiscal 2016 . the increase was primarily the result of an increase of $ 5.9 million in banking service fees due to h & r block-branded products and service fee income , an increase in mortgage banking income of $ 3.2 million , an increase in realized gain from sale of securities of $ 2.5 million , and increased levels of prepayment penalty fee income of $ 1.7 million , partially offset by a $ 11.1
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2,501 | in november 2014 , the company and landry 's , inc. and mitchell 's entertainment , inc. , an affiliate of landry 's inc. ( together with landry 's inc. , landry 's ) , entered into an asset purchase agreement ( the agreement ) . pursuant to the agreement , the company agreed to sell the mitchell 's restaurants and related assets to landry 's for $ 10 million . the sale of the mitchell 's restaurants closed on january 21 , 2015. the assets sold consist primarily of leasehold interests , leasehold improvements , restaurant equipment and furnishings , inventory , and related intangible assets , including brand names and trademarks associated with the 21 mitchell 's restaurants . under the terms of the agreement , landry 's assumed the mitchell 's restaurants ' facility lease obligations and the company will reimburse landry 's for gift cards sold prior to the closing date and used at the mitchell 's restaurants during the eighteen months following the closing date . during the third quarter of fiscal year 2016 , the company recognized a $ 466 thousand benefit from the extinguishment of the liability related to these gift cards . for financial reporting purposes , the mitchell 's restaurants are classified as a discontinued operation for all periods presented . recap of fiscal year 2016 and fiscal year 2015 operating results operating income for fiscal year 2016 increased from fiscal year 2015 by $ 2.8 million to $ 47.6 million . operating income for fiscal year 2016 was favorably impacted by an $ 11.3 million increase in restaurant sales and a decrease in food and beverage costs of $ 1.0 million . these favorable impacts were somewhat offset by increased restaurant operating expenses , marketing and advertising , general and administrative costs , depreciation and amortization expenses and pre-opening costs . higher restaurant sales were attributable both to an increase in comparable company-owned restaurant sales and new or relocated restaurants . after-tax income from continuing operations during fiscal year 2016 increased from fiscal year 2015 by $ 589 thousand to $ 30.8 million . fiscal year 2016 net income increased from fiscal year 2015 by $ 461 thousand to $ 30.5 million . operating income for fiscal year 2015 increased from fiscal year 2014 by $ 5.1 million to $ 44.8 million . operating income for fiscal year 2015 was favorably impacted by a $ 26.4 million increase in restaurant sales , which was somewhat offset by increased food and beverage costs and restaurant operating expenses . higher restaurant sales were attributable both to an increase in comparable company-owned restaurant sales and new or relocated restaurants . after-tax income from continuing operations during fiscal year 2015 increased from fiscal year 2014 by $ 3.5 million to $ 30.2 million . fiscal year 2015 net income increased from fiscal year 2014 by $ 13.5 million to $ 30.0 million . net income for fiscal year 2014 was adversely impacted by a $ 10.3 million loss from discontinued operations . the fiscal year 2014 loss from discontinued operations was largely attributable to the impairment of the assets of the mitchell 's restaurants . key financial terms and metrics we evaluate our business using a variety of key financial measures : restaurant sales . restaurant sales consist of food and beverage sales by company-owned restaurants . restaurant sales are primarily influenced by total operating weeks in the relevant period and comparable restaurant sales growth . total operating weeks is the total number of company-owned restaurants multiplied by the number of weeks each is in operation during the relevant period . total operating weeks are impacted by restaurant openings and closings , as well as changes in the number of weeks included in the relevant period . comparable restaurant sales growth reflects the change in year-over-year or quarter-over-quarter , as applicable , sales for the comparable restaurant base . we define the comparable restaurant base to be those company-owned restaurants in operation for not less than fifteen months prior to the beginning of the fiscal quarter including the period being measured . comparable restaurant sales growth is primarily influenced by customer traffic , which is measured by the number of entrรฉes sold , and the average guest check . customer traffic is influenced by the popularity of our menu items , our guest mix , our ability to deliver a high-quality dining experience and overall economic conditions . average guest check , a measure of total restaurant sales divided by the number of entrรฉes , is driven by menu mix and pricing . franchise income . franchise income includes ( 1 ) franchise and development fees charged to franchisees and ( 2 ) royalty income . franchise royalties consist of 5.0 % of adjusted gross sales from each franchisee-owned restaurant . in addition , our more recent franchise agreements require up to a 1.0 % advertising fee to be paid by the franchisee , which is applied to national advertising expenditures . under our prior franchise agreements , the company would pay 1.0 % out of the 5.0 % royalty toward national advertising . we evaluate the performance of our franchisees by measuring franchisee-owned restaurant operating weeks , which is impacted by franchisee-owned restaurant openings and closings , and comparable franchisee-owned restaurant sales growth , which together with operating weeks , drives royalty income . 22 other operating income . other operating income consists primarily of breakage income associated with gift cards , and also includes fees earned from a management agreement , banquet-related guarantee and services revenue and other incidental guest fees . food and beverage costs . food and beverage costs include all restaurant-level food and beverage costs of company-owned restaurants . we measure food and beverage costs by tracking cost of sales as a percentage of restaurant sales and cost per entrรฉe . story_separator_special_tag historically , the percentages of our annual total revenues during the first and fourth fiscal quarters have been higher due , in part , to the year-end holiday season . accordingly , results for any one quarter are not necessarily indicative of results to be expected for any other quarter or for any year , and comparable restaurant sales for any particular period may decrease . story_separator_special_tag i > capital expenditures in fiscal year 2016 , which aggregated $ 26.2 million , pertained primarily to $ 13.5 million for new restaurants and $ 8.4 million for restaurant remodel projects . capital expenditures in fiscal year 2015 , which aggregated $ 20.3 million , pertained primarily to : $ 12.5 million for restaurant remodel projects and $ 6.8 million for new restaurants . capital expenditures in fiscal year 2014 , which aggregated $ 20.1 million , pertained primarily to $ 7.7 million for various restaurant remodel projects ; $ 9.7 million for new restaurants ; and $ 2.8 million for the acquisition of the austin , tx ruth 's chris steak house restaurant from the owner franchisee . we anticipate capital expenditures in fiscal year 2017 will be approximately $ 24.0 to $ 26.0 million . we currently expect to open three company-owned restaurants at leased locations and one restaurant operating under a contractual agreement in fiscal year 2017. cash flows the following table summarizes our primary sources and uses of cash ( in thousands ) : replace_table_token_10_th operating activities . operating cash inflows pertain primarily to restaurant sales and franchise income . operating cash outflows pertain primarily to expenditures for food and beverages , restaurant operating expenses , marketing and advertising and general and administrative costs . operating activities provided cash flow all three fiscal years primarily because operating revenues have exceeded cash-based expenses . investing activities . cash used in investing activities in all three fiscal years pertained primarily to capital expenditure projects . during fiscal year 2015 , the company received $ 10.0 million for the sale of the mitchell 's restaurants and related assets . financing activities . financing activities used cash in all three years . during fiscal year 2016 , we : used $ 45.1 million to repurchase common stock ; increased the debt outstanding under our prior senior credit facility by $ 25.0 million ; paid dividends of $ 9.2 million ; and paid $ 1.5 million in employee taxes in connection with the vesting of restricted stock and the exercise of stock options . we paid $ 1.5 million in taxes in connection with the vesting of restricted stock and the exercise of stock options because some recipients elected to satisfy their individual minimum tax withholding obligations by having us withhold a number of vested shares of restricted stock and or a number of shares otherwise issuable pursuant to stock options , in each case in an amount having a value on the date of vesting or exercise equal to a recipient 's minimum federal and state withholding taxes . during fiscal year 2015 , we : reduced the debt outstanding under our prior senior credit facility by $ 13.0 million ; used $ 23.8 million to repurchase common stock ; paid dividends of $ 8.3 million ; and paid $ 1.4 million in employee taxes in connection with the vesting of restricted stock and the exercise of stock options . during fiscal year 2014 , we : reduced the debt outstanding under our senior credit facility by $ 6.0 million ; used $ 15.4 million to repurchase common stock ; paid dividends of $ 7.1 million ; and paid $ 3.1 million in employee taxes in connection with the vesting of restricted stock and the exercise of stock options . 29 contractual obligations the following table summarizes our contractual obligations as of december 25 , 2016 : replace_table_token_11_th long-term debt obligations include principal maturities and expected interest payments . expected interest payments were estimated using the interest and fee rates under our senior credit facility as of december 25 , 2016. operating lease obligations do not include contingent rent , common area maintenance , property taxes and other pass through charges from our landlords . the above table does not include recorded liabilities to vendors or employees nor does it include routine purchase commitments for food and supplies . pursuant the terms of the agreement , upon closing of the sale of the mitchell 's restaurants in january 2015 , landry 's assumed the lease obligations of the mitchell 's restaurants . however , the company has guaranteed landry 's lease obligations aggregating $ 35.3 million under nine of the leases . landry 's indemnified the company in the event of a default under any of the leases . the above table does not include potential lease obligations for the mitchell 's restaurants . off-balance sheet arrangements as of december 25 , 2016 , we do not have any off-balance sheet arrangements . critical accounting policies and estimates our discussion and analysis of results of operations and financial condition is based upon our audited consolidated financial statements , which have been prepared in accordance with u.s. generally accepted accounting principles . the preparation of these consolidated financial statements is based , in part , on our critical accounting policies that require us to make estimates and judgments that affect the amounts reported in those consolidated financial statements . our significant accounting policies , which may be affected by our estimates and assumptions , are more fully described in note 2 of the consolidated financial statements . critical accounting policies are those that we believe are most important to portraying our financial condition and results of operations and also require the greatest amount of subjective or complex judgments by management . judgments or uncertainties regarding the application of these policies may result in materially different amounts being reported under different conditions or using different assumptions . we consider the following policies to be
| liquidity and capital resources overview our principal sources of cash during fiscal year 2016 were net cash provided by operating activities and borrowings under our prior senior credit facility . our principal uses of cash during fiscal year 2016 were for capital expenditures , principal repayments under our prior senior credit facility , common stock repurchases and dividend payments . cash flows from discontinued operations are combined with the cash flows from continuing operations within each of the categories on our statement of cash flows . except for the receipt of $ 10 million for the sale of the mitchell 's restaurants during the first quarter of fiscal year 2015 , the sale of the mitchell 's restaurants or any of our closed restaurants reported in discontinued operations did not have a material impact on our cash flow during fiscal year 2015. in april 2016 , our board of directors approved a new share repurchase program authorizing the company to repurchase up to $ 60 million of outstanding commons stock from time to time . the new share repurchase program replaces the previous share repurchase program announced in november 2014 , which has been terminated . during fiscal year 2016 , 2,824,322 shares were repurchased at an aggregate cost of $ 45.1 million or an average cost of $ 15.96 per share . all repurchased shares were retired and cancelled . as of december 25 , 2016 , $ 26.6 million remained available for future purchases under the share repurchase program . during the second quarter of fiscal year 2013 , we commenced paying quarterly cash dividends to holders of common and restricted stock .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources overview our principal sources of cash during fiscal year 2016 were net cash provided by operating activities and borrowings under our prior senior credit facility . our principal uses of cash during fiscal year 2016 were for capital expenditures , principal repayments under our prior senior credit facility , common stock repurchases and dividend payments . cash flows from discontinued operations are combined with the cash flows from continuing operations within each of the categories on our statement of cash flows . except for the receipt of $ 10 million for the sale of the mitchell 's restaurants during the first quarter of fiscal year 2015 , the sale of the mitchell 's restaurants or any of our closed restaurants reported in discontinued operations did not have a material impact on our cash flow during fiscal year 2015. in april 2016 , our board of directors approved a new share repurchase program authorizing the company to repurchase up to $ 60 million of outstanding commons stock from time to time . the new share repurchase program replaces the previous share repurchase program announced in november 2014 , which has been terminated . during fiscal year 2016 , 2,824,322 shares were repurchased at an aggregate cost of $ 45.1 million or an average cost of $ 15.96 per share . all repurchased shares were retired and cancelled . as of december 25 , 2016 , $ 26.6 million remained available for future purchases under the share repurchase program . during the second quarter of fiscal year 2013 , we commenced paying quarterly cash dividends to holders of common and restricted stock .
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Suspicious Activity Report : in november 2014 , the company and landry 's , inc. and mitchell 's entertainment , inc. , an affiliate of landry 's inc. ( together with landry 's inc. , landry 's ) , entered into an asset purchase agreement ( the agreement ) . pursuant to the agreement , the company agreed to sell the mitchell 's restaurants and related assets to landry 's for $ 10 million . the sale of the mitchell 's restaurants closed on january 21 , 2015. the assets sold consist primarily of leasehold interests , leasehold improvements , restaurant equipment and furnishings , inventory , and related intangible assets , including brand names and trademarks associated with the 21 mitchell 's restaurants . under the terms of the agreement , landry 's assumed the mitchell 's restaurants ' facility lease obligations and the company will reimburse landry 's for gift cards sold prior to the closing date and used at the mitchell 's restaurants during the eighteen months following the closing date . during the third quarter of fiscal year 2016 , the company recognized a $ 466 thousand benefit from the extinguishment of the liability related to these gift cards . for financial reporting purposes , the mitchell 's restaurants are classified as a discontinued operation for all periods presented . recap of fiscal year 2016 and fiscal year 2015 operating results operating income for fiscal year 2016 increased from fiscal year 2015 by $ 2.8 million to $ 47.6 million . operating income for fiscal year 2016 was favorably impacted by an $ 11.3 million increase in restaurant sales and a decrease in food and beverage costs of $ 1.0 million . these favorable impacts were somewhat offset by increased restaurant operating expenses , marketing and advertising , general and administrative costs , depreciation and amortization expenses and pre-opening costs . higher restaurant sales were attributable both to an increase in comparable company-owned restaurant sales and new or relocated restaurants . after-tax income from continuing operations during fiscal year 2016 increased from fiscal year 2015 by $ 589 thousand to $ 30.8 million . fiscal year 2016 net income increased from fiscal year 2015 by $ 461 thousand to $ 30.5 million . operating income for fiscal year 2015 increased from fiscal year 2014 by $ 5.1 million to $ 44.8 million . operating income for fiscal year 2015 was favorably impacted by a $ 26.4 million increase in restaurant sales , which was somewhat offset by increased food and beverage costs and restaurant operating expenses . higher restaurant sales were attributable both to an increase in comparable company-owned restaurant sales and new or relocated restaurants . after-tax income from continuing operations during fiscal year 2015 increased from fiscal year 2014 by $ 3.5 million to $ 30.2 million . fiscal year 2015 net income increased from fiscal year 2014 by $ 13.5 million to $ 30.0 million . net income for fiscal year 2014 was adversely impacted by a $ 10.3 million loss from discontinued operations . the fiscal year 2014 loss from discontinued operations was largely attributable to the impairment of the assets of the mitchell 's restaurants . key financial terms and metrics we evaluate our business using a variety of key financial measures : restaurant sales . restaurant sales consist of food and beverage sales by company-owned restaurants . restaurant sales are primarily influenced by total operating weeks in the relevant period and comparable restaurant sales growth . total operating weeks is the total number of company-owned restaurants multiplied by the number of weeks each is in operation during the relevant period . total operating weeks are impacted by restaurant openings and closings , as well as changes in the number of weeks included in the relevant period . comparable restaurant sales growth reflects the change in year-over-year or quarter-over-quarter , as applicable , sales for the comparable restaurant base . we define the comparable restaurant base to be those company-owned restaurants in operation for not less than fifteen months prior to the beginning of the fiscal quarter including the period being measured . comparable restaurant sales growth is primarily influenced by customer traffic , which is measured by the number of entrรฉes sold , and the average guest check . customer traffic is influenced by the popularity of our menu items , our guest mix , our ability to deliver a high-quality dining experience and overall economic conditions . average guest check , a measure of total restaurant sales divided by the number of entrรฉes , is driven by menu mix and pricing . franchise income . franchise income includes ( 1 ) franchise and development fees charged to franchisees and ( 2 ) royalty income . franchise royalties consist of 5.0 % of adjusted gross sales from each franchisee-owned restaurant . in addition , our more recent franchise agreements require up to a 1.0 % advertising fee to be paid by the franchisee , which is applied to national advertising expenditures . under our prior franchise agreements , the company would pay 1.0 % out of the 5.0 % royalty toward national advertising . we evaluate the performance of our franchisees by measuring franchisee-owned restaurant operating weeks , which is impacted by franchisee-owned restaurant openings and closings , and comparable franchisee-owned restaurant sales growth , which together with operating weeks , drives royalty income . 22 other operating income . other operating income consists primarily of breakage income associated with gift cards , and also includes fees earned from a management agreement , banquet-related guarantee and services revenue and other incidental guest fees . food and beverage costs . food and beverage costs include all restaurant-level food and beverage costs of company-owned restaurants . we measure food and beverage costs by tracking cost of sales as a percentage of restaurant sales and cost per entrรฉe . story_separator_special_tag historically , the percentages of our annual total revenues during the first and fourth fiscal quarters have been higher due , in part , to the year-end holiday season . accordingly , results for any one quarter are not necessarily indicative of results to be expected for any other quarter or for any year , and comparable restaurant sales for any particular period may decrease . story_separator_special_tag i > capital expenditures in fiscal year 2016 , which aggregated $ 26.2 million , pertained primarily to $ 13.5 million for new restaurants and $ 8.4 million for restaurant remodel projects . capital expenditures in fiscal year 2015 , which aggregated $ 20.3 million , pertained primarily to : $ 12.5 million for restaurant remodel projects and $ 6.8 million for new restaurants . capital expenditures in fiscal year 2014 , which aggregated $ 20.1 million , pertained primarily to $ 7.7 million for various restaurant remodel projects ; $ 9.7 million for new restaurants ; and $ 2.8 million for the acquisition of the austin , tx ruth 's chris steak house restaurant from the owner franchisee . we anticipate capital expenditures in fiscal year 2017 will be approximately $ 24.0 to $ 26.0 million . we currently expect to open three company-owned restaurants at leased locations and one restaurant operating under a contractual agreement in fiscal year 2017. cash flows the following table summarizes our primary sources and uses of cash ( in thousands ) : replace_table_token_10_th operating activities . operating cash inflows pertain primarily to restaurant sales and franchise income . operating cash outflows pertain primarily to expenditures for food and beverages , restaurant operating expenses , marketing and advertising and general and administrative costs . operating activities provided cash flow all three fiscal years primarily because operating revenues have exceeded cash-based expenses . investing activities . cash used in investing activities in all three fiscal years pertained primarily to capital expenditure projects . during fiscal year 2015 , the company received $ 10.0 million for the sale of the mitchell 's restaurants and related assets . financing activities . financing activities used cash in all three years . during fiscal year 2016 , we : used $ 45.1 million to repurchase common stock ; increased the debt outstanding under our prior senior credit facility by $ 25.0 million ; paid dividends of $ 9.2 million ; and paid $ 1.5 million in employee taxes in connection with the vesting of restricted stock and the exercise of stock options . we paid $ 1.5 million in taxes in connection with the vesting of restricted stock and the exercise of stock options because some recipients elected to satisfy their individual minimum tax withholding obligations by having us withhold a number of vested shares of restricted stock and or a number of shares otherwise issuable pursuant to stock options , in each case in an amount having a value on the date of vesting or exercise equal to a recipient 's minimum federal and state withholding taxes . during fiscal year 2015 , we : reduced the debt outstanding under our prior senior credit facility by $ 13.0 million ; used $ 23.8 million to repurchase common stock ; paid dividends of $ 8.3 million ; and paid $ 1.4 million in employee taxes in connection with the vesting of restricted stock and the exercise of stock options . during fiscal year 2014 , we : reduced the debt outstanding under our senior credit facility by $ 6.0 million ; used $ 15.4 million to repurchase common stock ; paid dividends of $ 7.1 million ; and paid $ 3.1 million in employee taxes in connection with the vesting of restricted stock and the exercise of stock options . 29 contractual obligations the following table summarizes our contractual obligations as of december 25 , 2016 : replace_table_token_11_th long-term debt obligations include principal maturities and expected interest payments . expected interest payments were estimated using the interest and fee rates under our senior credit facility as of december 25 , 2016. operating lease obligations do not include contingent rent , common area maintenance , property taxes and other pass through charges from our landlords . the above table does not include recorded liabilities to vendors or employees nor does it include routine purchase commitments for food and supplies . pursuant the terms of the agreement , upon closing of the sale of the mitchell 's restaurants in january 2015 , landry 's assumed the lease obligations of the mitchell 's restaurants . however , the company has guaranteed landry 's lease obligations aggregating $ 35.3 million under nine of the leases . landry 's indemnified the company in the event of a default under any of the leases . the above table does not include potential lease obligations for the mitchell 's restaurants . off-balance sheet arrangements as of december 25 , 2016 , we do not have any off-balance sheet arrangements . critical accounting policies and estimates our discussion and analysis of results of operations and financial condition is based upon our audited consolidated financial statements , which have been prepared in accordance with u.s. generally accepted accounting principles . the preparation of these consolidated financial statements is based , in part , on our critical accounting policies that require us to make estimates and judgments that affect the amounts reported in those consolidated financial statements . our significant accounting policies , which may be affected by our estimates and assumptions , are more fully described in note 2 of the consolidated financial statements . critical accounting policies are those that we believe are most important to portraying our financial condition and results of operations and also require the greatest amount of subjective or complex judgments by management . judgments or uncertainties regarding the application of these policies may result in materially different amounts being reported under different conditions or using different assumptions . we consider the following policies to be
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2,502 | the terms of these agreements include payment to us of one or more of the following : nonrefundable , up-front license fees ; milestone payments ; and royalties on product sales . revenue from our human therapeutics segment is shown in our consolidated statements of operations as collaborative arrangements revenue . revenue from our biomanufacturing segment was generated by our former subsidiary , microbia , which had entered into research and development service agreements with various third parties . these agreements generally provided for fees for research and development services rendered . as a result of the sale of our interest in microbia , revenue from our biomanufacturing segment is included in net income ( loss ) from discontinued operations . we expect our revenue to fluctuate for the foreseeable future as our collaborative arrangements revenue is principally based on the achievement of clinical and commercial milestones . research and development expense . research and development expense consists of expenses incurred in connection with the discovery and development of our product candidates . these expenses consist primarily of compensation , benefits and other employee related expenses , research and development related facility costs and third-party contract costs relating to research , formulation , manufacturing , preclinical study and clinical trial activities . the costs of revenue related to the microbia services contracts and costs associated with microbia 's research and development activities are included in net income ( loss ) from discontinued operations . we charge all research and development expenses to operations as incurred . under our forest collaboration agreement we are reimbursed for certain research and development expenses and we net these reimbursements against our research and development expenses as incurred . 43 our lead product candidate is linaclotide and it represents the largest portion of our research and development expense for our product candidates . linaclotide is a first-in-class compound currently in phase 3 clinical development for the treatment of ibs-c and cc and is our only product candidate that has demonstrated clinical proof of concept . in september and november 2010 , we announced the positive top-line results from each of the two phase 3 clinical trials assessing the safety and efficacy of linaclotide in patients with ibs-c , and in november 2009 , we announced that we achieved positive results in each of our phase 3 cc trials . we have a pipeline of early stage , pre-proof of concept development candidates in multiple therapeutic areas , including gastrointestinal disease , pain and inflammation , and respiratory disease . we are also conducting early stage , preclinical research in these therapeutic areas , as well as in the area of cardiovascular disease . the following table sets forth our research and development expenses related to our product pipeline for the years ended december 31 , 2010 , 2009 and 2008. these expenses relate primarily to external costs associated with manufacturing , preclinical studies and clinical trial costs . costs related to facilities , depreciation , share-based compensation and research and development support services are not directly charged to programs . replace_table_token_5_th we began tracking program expenses for linaclotide in 2004 , and research and development program expenses from inception to december 31 , 2010 were approximately $ 123.4 million . the expenses for linaclotide include both reimbursements to us by forest as well as our portion of costs incurred by forest for linaclotide and invoiced to us under the cost-sharing provisions of our collaboration agreement . the lengthy process of securing fda approvals for new drugs requires the expenditure of substantial resources . any failure by us to obtain , or any delay in obtaining , regulatory approvals would materially adversely affect our product development efforts and our business overall . accordingly , we can not currently estimate with any degree of certainty the amount of time or money that we will be required to expend in the future on linaclotide or our other product candidates prior to their regulatory approval , if such approval is ever granted . as a result of these uncertainties surrounding the timing and outcome of any approvals , we are currently unable to estimate precisely when , if ever , linaclotide , or any of our other product candidates will generate revenues and cash flows . we invest carefully in our pipeline , and the commitment of funding for each subsequent stage of our development programs is dependent upon the receipt of clear , supportive data . in addition , we are actively engaged in evaluating externally discovered drug candidates at all stages of development . in evaluating potential assets , we apply the same criteria as those used for investments in internally-discovered assets . the majority of our external costs are spent on linaclotide , as costs associated with later stage clinical trials are , in most cases , more significant than those incurred in earlier stages of our pipeline . we expect external costs related to the linaclotide program to begin decreasing provided that no other clinical trials are necessary to obtain regulatory approval in the u.s. if our other product candidates are successful in early stage clinical trials , we would expect external costs to increase as the programs progress through later stage clinical trials . the remainder of our research and development expense is not tracked by project as it consists primarily of our internal costs , and it benefits multiple projects that are in earlier stages of development and which typically share resources . 44 the successful development of our product candidates is highly uncertain and subject to a number of risks including , but not limited to : the duration of clinical trials may vary substantially according to the type , complexity and novelty of the product candidate . story_separator_special_tag our forfeiture rates were 5.5 % , 5.8 % and 4.4 % as of december 31 , 2010 , 2009 and 2008 , respectively . if our actual forfeiture rate varies from our historical rates and estimates , additional adjustments to compensation expense may be required in future periods . we have historically granted stock options at exercise prices not less than the fair value of our common stock as determined by our board of directors , with input from management . due to the absence of an active market for our common stock , prior to our initial public offering on february 2 , 2010 , our board of directors has historically determined , with input from management , the estimated fair value of our common stock on the date of grant based on a number of objective and subjective factors , including : the prices at which we sold shares of convertible preferred stock ; the superior rights and preferences of securities senior to our common stock at the time of each grant ; the likelihood of achieving a liquidity event such as an initial public offering or sale of our company ; our historical operating and financial performance and the status of our research and product development efforts ; achievement of enterprise milestones , including our entering into collaboration and license agreements ; and external market conditions affecting the biotechnology industry sector . 49 in connection with the preparation of the consolidated financial statements for the years ended december 31 , 2009 and 2008 , our board of directors also considered valuations provided by management in determining the fair value of our common stock . such valuations were prepared as of march 31 , june 30 , october 28 and december 31 , 2008 , and march 31 , june 30 , september 30 , november 2 and december 31 , 2009 , and valued our common stock at $ 4.33 , $ 4.67 , $ 4.98 , $ 4.89 , $ 5.00 , $ 5.48 , $ 7.36 , $ 11.75 and $ 12.05 per share , respectively . the valuations have been used to estimate the fair value of our common stock as of each option grant date and in calculating share-based compensation expense . our board of directors has consistently used the most recent quarterly valuation provided by management for determining the fair value of our common stock unless a specific event occurred that necessitated an interim valuation . the valuations were prepared consistent with the american institute of certified public accountants practice aid , valuation of privately-held company equity securities issued as compensation , or the practice aid . we used the guideline company method and the similar transaction method of the market approach , which compare our company to similar publicly-traded companies or transactions , and an income approach , which looks at projected future cash flows , to value our company from among the alternatives discussed in the practice aid . in addition , as we had several series of convertible preferred stock outstanding prior to our initial public offering in february 2010 , it was also necessary to allocate our company 's value to the various classes of stock , including stock options . as provided in the practice aid , there are several approaches for allocating enterprise value of a privately-held company among the securities held in a complex capital structure . the possible methodologies include the probability-weighted expected return method , the option-pricing method and the current value method . we used the probability-weighted expected return method described in the practice aid to allocate the enterprise values to the common stock . under this method , the value of our common stock is estimated based upon an analysis of future values for our company assuming various future outcomes , the timing of which is based on the plans of our board of directors and management . under this approach , share value is based on the probability-weighted present value of expected future investment returns , considering each of the possible outcomes available to us , as well as the rights of each share class . we estimated the fair value of our common stock using a probability-weighted analysis of the present value of the returns afforded to our stockholders under each of four possible future scenarios . three of the scenarios assumed a stockholder exit , either through an ipo or a sale of our company . the fourth scenario assumed a sale of our company at a value that is less than the cumulative amounts invested by our preferred stockholders . for the march 31 , 2008 valuation , we utilized a one product ipo scenario reflecting only linaclotide advancing in the clinic at the time of an ipo . beginning with the october 28 , 2008 valuation , we included two separate ipo scenarios to better reflect our company 's risk profile at that time . the linaclotide program was by then advancing in two indications , cc and ibs-c. we believed that the ibs-c indication had a significantly higher market value and higher clinical risk for ironwood . to better reflect the potential liquidity outcomes for linaclotide , the first ipo scenario included an assumption of successful phase 3 clinical trials for both the cc and ibs-c indications at the time of an ipo , and the second ipo scenario reflected successful phase 3 clinical trials in only the cc indication at the time of the ipo . for both ipo scenarios and the sale scenario , the estimated future values of our common stock were calculated using assumptions including : the expected pre-money or sale valuations based on the market approach , and the income approach using the discounted cash flow method , and the expected dates of the future expected ipo or sale . for the sale at an assumed price less than the liquidation preference scenario , the estimated future and present
| liquidity and capital resources the following table sets forth the major sources and uses of cash for each of the periods set forth below : replace_table_token_12_th we have incurred losses since our inception on january 5 , 1998 and , as of december 31 , 2010 , we had a cumulative deficit of approximately $ 367.5 million . we have financed our operations to date primarily through the sale of preferred stock and common stock , including approximately $ 203.2 million of net proceeds from our ipo , payments received under collaborative arrangements , including reimbursement of certain expenses , debt financings and interest earned on investments . at december 31 , 2010 , we had approximately $ 248.0 million of unrestricted cash , cash equivalents and available-for-sale securities . our cash equivalents include amounts held in money market funds , stated at cost plus accrued interest , which approximates fair market value and amounts held in certain u.s. government sponsored securities . our available-for-sale securities include amounts held in u.s. treasury securities and u.s. government sponsored securities . we invest cash in excess of immediate requirements in accordance with our investment policy , which limits the amounts we may invest in any one type of investment and requires all investments held by us to be a+ rated so as to primarily achieve liquidity and capital preservation . cash flows from operating activities net cash used in operating activities totaled approximately $ 67.9 million for the year ended december 31 , 2010. the primary uses of cash were our net loss from continuing operations of approximately $ 56.4 million , approximately $ 6.0 million used in operating activities from discontinued operations and a decrease of approximately $ 21.3 million in working capital resulting primarily from changes in deferred revenue associated with the recognition of revenue from our forest collaboration agreement and our almirall and astellas license agreements , as well as the achievement of the milestone associated with the almirall agreement . these uses of cash were partially offset by non-cash items of approximately $ 15.8 million .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources the following table sets forth the major sources and uses of cash for each of the periods set forth below : replace_table_token_12_th we have incurred losses since our inception on january 5 , 1998 and , as of december 31 , 2010 , we had a cumulative deficit of approximately $ 367.5 million . we have financed our operations to date primarily through the sale of preferred stock and common stock , including approximately $ 203.2 million of net proceeds from our ipo , payments received under collaborative arrangements , including reimbursement of certain expenses , debt financings and interest earned on investments . at december 31 , 2010 , we had approximately $ 248.0 million of unrestricted cash , cash equivalents and available-for-sale securities . our cash equivalents include amounts held in money market funds , stated at cost plus accrued interest , which approximates fair market value and amounts held in certain u.s. government sponsored securities . our available-for-sale securities include amounts held in u.s. treasury securities and u.s. government sponsored securities . we invest cash in excess of immediate requirements in accordance with our investment policy , which limits the amounts we may invest in any one type of investment and requires all investments held by us to be a+ rated so as to primarily achieve liquidity and capital preservation . cash flows from operating activities net cash used in operating activities totaled approximately $ 67.9 million for the year ended december 31 , 2010. the primary uses of cash were our net loss from continuing operations of approximately $ 56.4 million , approximately $ 6.0 million used in operating activities from discontinued operations and a decrease of approximately $ 21.3 million in working capital resulting primarily from changes in deferred revenue associated with the recognition of revenue from our forest collaboration agreement and our almirall and astellas license agreements , as well as the achievement of the milestone associated with the almirall agreement . these uses of cash were partially offset by non-cash items of approximately $ 15.8 million .
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Suspicious Activity Report : the terms of these agreements include payment to us of one or more of the following : nonrefundable , up-front license fees ; milestone payments ; and royalties on product sales . revenue from our human therapeutics segment is shown in our consolidated statements of operations as collaborative arrangements revenue . revenue from our biomanufacturing segment was generated by our former subsidiary , microbia , which had entered into research and development service agreements with various third parties . these agreements generally provided for fees for research and development services rendered . as a result of the sale of our interest in microbia , revenue from our biomanufacturing segment is included in net income ( loss ) from discontinued operations . we expect our revenue to fluctuate for the foreseeable future as our collaborative arrangements revenue is principally based on the achievement of clinical and commercial milestones . research and development expense . research and development expense consists of expenses incurred in connection with the discovery and development of our product candidates . these expenses consist primarily of compensation , benefits and other employee related expenses , research and development related facility costs and third-party contract costs relating to research , formulation , manufacturing , preclinical study and clinical trial activities . the costs of revenue related to the microbia services contracts and costs associated with microbia 's research and development activities are included in net income ( loss ) from discontinued operations . we charge all research and development expenses to operations as incurred . under our forest collaboration agreement we are reimbursed for certain research and development expenses and we net these reimbursements against our research and development expenses as incurred . 43 our lead product candidate is linaclotide and it represents the largest portion of our research and development expense for our product candidates . linaclotide is a first-in-class compound currently in phase 3 clinical development for the treatment of ibs-c and cc and is our only product candidate that has demonstrated clinical proof of concept . in september and november 2010 , we announced the positive top-line results from each of the two phase 3 clinical trials assessing the safety and efficacy of linaclotide in patients with ibs-c , and in november 2009 , we announced that we achieved positive results in each of our phase 3 cc trials . we have a pipeline of early stage , pre-proof of concept development candidates in multiple therapeutic areas , including gastrointestinal disease , pain and inflammation , and respiratory disease . we are also conducting early stage , preclinical research in these therapeutic areas , as well as in the area of cardiovascular disease . the following table sets forth our research and development expenses related to our product pipeline for the years ended december 31 , 2010 , 2009 and 2008. these expenses relate primarily to external costs associated with manufacturing , preclinical studies and clinical trial costs . costs related to facilities , depreciation , share-based compensation and research and development support services are not directly charged to programs . replace_table_token_5_th we began tracking program expenses for linaclotide in 2004 , and research and development program expenses from inception to december 31 , 2010 were approximately $ 123.4 million . the expenses for linaclotide include both reimbursements to us by forest as well as our portion of costs incurred by forest for linaclotide and invoiced to us under the cost-sharing provisions of our collaboration agreement . the lengthy process of securing fda approvals for new drugs requires the expenditure of substantial resources . any failure by us to obtain , or any delay in obtaining , regulatory approvals would materially adversely affect our product development efforts and our business overall . accordingly , we can not currently estimate with any degree of certainty the amount of time or money that we will be required to expend in the future on linaclotide or our other product candidates prior to their regulatory approval , if such approval is ever granted . as a result of these uncertainties surrounding the timing and outcome of any approvals , we are currently unable to estimate precisely when , if ever , linaclotide , or any of our other product candidates will generate revenues and cash flows . we invest carefully in our pipeline , and the commitment of funding for each subsequent stage of our development programs is dependent upon the receipt of clear , supportive data . in addition , we are actively engaged in evaluating externally discovered drug candidates at all stages of development . in evaluating potential assets , we apply the same criteria as those used for investments in internally-discovered assets . the majority of our external costs are spent on linaclotide , as costs associated with later stage clinical trials are , in most cases , more significant than those incurred in earlier stages of our pipeline . we expect external costs related to the linaclotide program to begin decreasing provided that no other clinical trials are necessary to obtain regulatory approval in the u.s. if our other product candidates are successful in early stage clinical trials , we would expect external costs to increase as the programs progress through later stage clinical trials . the remainder of our research and development expense is not tracked by project as it consists primarily of our internal costs , and it benefits multiple projects that are in earlier stages of development and which typically share resources . 44 the successful development of our product candidates is highly uncertain and subject to a number of risks including , but not limited to : the duration of clinical trials may vary substantially according to the type , complexity and novelty of the product candidate . story_separator_special_tag our forfeiture rates were 5.5 % , 5.8 % and 4.4 % as of december 31 , 2010 , 2009 and 2008 , respectively . if our actual forfeiture rate varies from our historical rates and estimates , additional adjustments to compensation expense may be required in future periods . we have historically granted stock options at exercise prices not less than the fair value of our common stock as determined by our board of directors , with input from management . due to the absence of an active market for our common stock , prior to our initial public offering on february 2 , 2010 , our board of directors has historically determined , with input from management , the estimated fair value of our common stock on the date of grant based on a number of objective and subjective factors , including : the prices at which we sold shares of convertible preferred stock ; the superior rights and preferences of securities senior to our common stock at the time of each grant ; the likelihood of achieving a liquidity event such as an initial public offering or sale of our company ; our historical operating and financial performance and the status of our research and product development efforts ; achievement of enterprise milestones , including our entering into collaboration and license agreements ; and external market conditions affecting the biotechnology industry sector . 49 in connection with the preparation of the consolidated financial statements for the years ended december 31 , 2009 and 2008 , our board of directors also considered valuations provided by management in determining the fair value of our common stock . such valuations were prepared as of march 31 , june 30 , october 28 and december 31 , 2008 , and march 31 , june 30 , september 30 , november 2 and december 31 , 2009 , and valued our common stock at $ 4.33 , $ 4.67 , $ 4.98 , $ 4.89 , $ 5.00 , $ 5.48 , $ 7.36 , $ 11.75 and $ 12.05 per share , respectively . the valuations have been used to estimate the fair value of our common stock as of each option grant date and in calculating share-based compensation expense . our board of directors has consistently used the most recent quarterly valuation provided by management for determining the fair value of our common stock unless a specific event occurred that necessitated an interim valuation . the valuations were prepared consistent with the american institute of certified public accountants practice aid , valuation of privately-held company equity securities issued as compensation , or the practice aid . we used the guideline company method and the similar transaction method of the market approach , which compare our company to similar publicly-traded companies or transactions , and an income approach , which looks at projected future cash flows , to value our company from among the alternatives discussed in the practice aid . in addition , as we had several series of convertible preferred stock outstanding prior to our initial public offering in february 2010 , it was also necessary to allocate our company 's value to the various classes of stock , including stock options . as provided in the practice aid , there are several approaches for allocating enterprise value of a privately-held company among the securities held in a complex capital structure . the possible methodologies include the probability-weighted expected return method , the option-pricing method and the current value method . we used the probability-weighted expected return method described in the practice aid to allocate the enterprise values to the common stock . under this method , the value of our common stock is estimated based upon an analysis of future values for our company assuming various future outcomes , the timing of which is based on the plans of our board of directors and management . under this approach , share value is based on the probability-weighted present value of expected future investment returns , considering each of the possible outcomes available to us , as well as the rights of each share class . we estimated the fair value of our common stock using a probability-weighted analysis of the present value of the returns afforded to our stockholders under each of four possible future scenarios . three of the scenarios assumed a stockholder exit , either through an ipo or a sale of our company . the fourth scenario assumed a sale of our company at a value that is less than the cumulative amounts invested by our preferred stockholders . for the march 31 , 2008 valuation , we utilized a one product ipo scenario reflecting only linaclotide advancing in the clinic at the time of an ipo . beginning with the october 28 , 2008 valuation , we included two separate ipo scenarios to better reflect our company 's risk profile at that time . the linaclotide program was by then advancing in two indications , cc and ibs-c. we believed that the ibs-c indication had a significantly higher market value and higher clinical risk for ironwood . to better reflect the potential liquidity outcomes for linaclotide , the first ipo scenario included an assumption of successful phase 3 clinical trials for both the cc and ibs-c indications at the time of an ipo , and the second ipo scenario reflected successful phase 3 clinical trials in only the cc indication at the time of the ipo . for both ipo scenarios and the sale scenario , the estimated future values of our common stock were calculated using assumptions including : the expected pre-money or sale valuations based on the market approach , and the income approach using the discounted cash flow method , and the expected dates of the future expected ipo or sale . for the sale at an assumed price less than the liquidation preference scenario , the estimated future and present
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2,503 | globaltrak on april 3 , 2013 , we completed the acquisition of substantially all of the assets of globaltrak , a division of system planning corporation ( ยspcย ) . the consideration paid to acquire globaltrak was $ 3.0 million in cash , subject to a final working capital adjustment , of which $ 0.5 million was deposited into an escrow account with a third party escrow agent to fund any indemnification obligation of spc to us , primarily for breaches of representations and warranties made by spc . during the three months ended september 30 , 2013 , we reached an agreement with spc for a final working capital adjustment of $ 0.1 million which was paid to us . as of december 31 , 2013 , this amount was recorded as a decrease to goodwill in our consolidated balance sheet since the adjustment was within the one-year measurement period . as a result of the acquisition of globaltrak , we recognized $ 2.5 million of goodwill and $ 0.5 million of intangible assets , which consist of technology , trade names and trademarks and customer lists . the results of operations of globaltrak are included in our consolidated results for the period subsequent to the acquisition date of april 3 , 2013. the acquisition of globaltrak gives us access to a customer base that includes military , international , government and commercial customers as well as expanded reach in growing regions , such as the middle east , asia and south america . 54 mobilenet , inc. on april 1 , 2013 , we completed the acquisition of substantially all of the assets of mobilenet , inc. ( ยmobilenetย ) . the consideration paid by us at closing consisted of $ 3.2 million in cash , subject to a final working capital adjustment specified in the acquisition agreement , and the issuance of 329,344 shares of our common stock ( valued at $ 4.96 per share , which reflected our closing price of common stock on april 1 , 2013 ) , of which 164,672 shares of common stock were placed into an escrow account for up to 15 months from closing to fund any indemnification obligations of mobilenet to us , primarily for breaches of representations and warranties made by mobilenet . during the three months ended september 30 , 2013 , we reached an agreement with mobilenet for a final working capital adjustment of less than $ 0.1 million which was paid to mobilenet . as of december 31 , 2013 , this amount was recorded as an increase to goodwill in our consolidated balance sheet since the adjustment was within the one-year measurement period . in addition to the consideration paid at closing , the acquisition agreement provides for contingent consideration payable by us to mobilenet if service revenues attributable to the mobilenet business for either of the two one year earn-out periods , may 1 , 2013 through april 30 , 2014 and may 1 , 2014 through april 30 , 2015 , are in excess of the specified baseline amount . in that event , we have agreed to pay to mobilenet an amount equal to ( i ) 50 % of the first $ 2.0 million of such excess amount for the applicable earn-out period and ( ii ) 35 % of any amount of such excess amount for the applicable earn-out period which is greater than $ 2.0 million . up to 50 % of any potential earn-out amounts can be paid in common stock at our option . any shares of common stock to be issued will be based on the 20-day average closing price of the common stock prior to the last trading day of the earn-out period . at the acquisition date , we recorded a liability of $ 1.5 million for the estimated value of the earn-out amounts . any change in the fair value of the earn-out amounts subsequent to the acquisition date , including changes from events after the acquisition date , will be recognized in earnings in the period the estimated fair value changes . for the year ended december 31 , 2013 , the fair value of the earn-out amounts was decreased by $ 0.6 million which is recorded as a reduction to selling , general and administrative expenses in our consolidated statements of operations . as a result of the acquisition of mobilenet , we recognized $ 2.9 million of goodwill and $ 3.5 million of intangible assets , which consist of technology , trademarks and customer lists . the results of operations of mobilenet are included in our consolidated results for the period subsequent to the acquisition date of april 1 , 2013. the acquisition of mobilenet will enable us to offer mobilenet 's complete fleet management solution directly to original equipment manufacturers , dealers and fleet owners . the acquired goodwill from the acquisitions of sens , globaltrak and mobilenet will not be amortized for financial reporting purposes . however the acquired goodwill is tax deductible , and therefore amortized over fifteen years for income tax purposes . as such , deferred income tax expense and a deferred tax liability arise as a result of the difference in tax deductibility of this amount for tax and financial reporting purposes . the resulting deferred tax liability , which is expected to continue to increase over time and will remain on our balance sheet indefinitely unless there is an impairment of the goodwill . see note 4 to the consolidated financial statements for further discussion on the acquisitions of sens , globaltrak and mobilenet . story_separator_special_tag however , due to an anomaly on one of the falcon 9 's first stage engines , the rocket did not comply with a pre-planned international space station safety gate to allow it to execute the second burn . for this reason , the next-generation prototype was deployed into a lower orbit as the result of a pre-imposed safety check required by nasa . as a result of the lower than intended orbit , the prototype satellite de-orbited on october 10 , 2012 despite all available efforts to raise the orbit using the satellite 's on-board propulsion system . as a result , we recognized during the fourth quarter of 2012 an impairment charge of $ 9.8 million . on december 7 , 2012 , we received $ 10.0 million from its insurer in connection with the settlement of an insurance claim arising from the loss of the prototype satellite , which represented the full amount recoverable under the insurance policy . as a result , we recorded during the fourth quarter of 2012 an insurance recovery-satellite network of $ 10 million in our consolidated statements of operations . acquisition costs and loss on other investment acquisition-related costs directly relate to our acquisitions . these costs include professional services expenses . for the years ended december 31 , 2013 , 2012 and 2011 acquisition-related costs were $ 1.7 million , $ 0.7 million and $ 1.6 million , respectively . in connection with the acquisition of startrak , we recognized a loss of $ 0.3 million on the disposition of our investment in alanco for the difference between the fair value and the carrying value . the amount of the loss was recorded in other income ( expense ) in our consolidated statements of operations for year ended december 31 , 2011. operating expenses we incur engineering expenses associated with the operation of our communications system and the development and support of new applications , as well as sales , marketing and administrative expenses related to the operation of our business . as of december 31 , 2013 , we have 186 employees . critical accounting policies and estimates our discussion and analysis of our results of operations , liquidity and capital resources are based on our consolidated financial statements which have been prepared in conformity with accounting principles generally 60 accepted in the united states of america . the preparation of these consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and disclosure of contingent assets and liabilities . on an on-going basis , we evaluate our estimates and judgments , including those related to revenue recognition , accounts receivable , accounting for business combinations , goodwill , satellite network and other equipment , long-lived assets , capitalized development costs , income taxes , warranty costs , loss contingencies and the value of securities underlying stock-based compensation . we base our estimates on historical and anticipated results and trends and on various other assumptions that we believe are reasonable under the circumstances , including assumptions as to future events . these estimates form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . by their nature , estimates are subject to an inherent degree of uncertainty . actual results may differ from our estimates and could have a significant adverse effect on our results of operations and financial position . we believe the following critical accounting policies affect our more significant estimates and judgments in the preparation of our consolidated financial statements . revenue recognition we recognize revenues when persuasive evidence of an arrangement exists , delivery has occurred , the fee is fixed or determinable and collectibility is reasonably assured . our revenue recognition policy requires us to make significant judgments regarding the probability of collection of the resulting accounts receivable balance based on prior history and the creditworthiness of our customers . in instances where collection is not reasonably assured , revenue is recognized when we receive cash from the customer . revenues from the activation of subscriber communicators and sims are initially recorded as deferred revenues and are , thereafter , recognized ratably over the term of the agreement with the customer , generally four years which is the estimated customer relationship period . revenues generated from monthly usage and administrative fees and engineering services are recognized when the services are rendered . revenues generated from extended warranty service agreements extending beyond the initial warranty period of one year are initially recorded as deferred revenues and are , thereafter , recognized ratably over the term of the agreements generally two to five years . revenues generated from royalties under our subscriber communicator manufacturing agreements are recognized when we issue to a third party manufacturer upon request a unique serial number to be assigned to each unit manufactured by such third party manufacturer . revenues generated from the sale of satellite subscriber communicators , sims and other products are either recognized when the products are shipped or when customers accept the products , depending on the specific contractual terms . sales of subscriber communicators and sims and other items are not subject to return and title and risk of loss pass to the customer at the time of shipment . in arrangements that include multiple deliverables , we make significant estimates and judgments with the determination of revenue to be recognized . these significant estimates and judgments include identifying the various elements in an arrangement , determining if the delivered items have stand-alone value and the relative selling prices . accounts receivable accounts receivable are due in accordance with payment terms included in our negotiated contracts . amounts due are stated net of an allowance for doubtful accounts . accounts that are outstanding longer than the contractual payment terms are considered past due . we make ongoing assumptions and judgments
| liquidity and capital resources overview our liquidity requirements arise from our working capital needs and to fund capital expenditures to support our current operations , and facilitate growth and expansion . we have financed our operations and expansion mostly from sales of our common stock through public offerings and private placements of debt , convertible redeemable preferred stock and common stock . we had net income in 2013 and 2012 , however we have incurred losses through 2011 and at december 31 , 2013 we have an accumulated deficit of $ 63.4 million . as of december 31 , 2013 , our primary source of liquidity consisted of cash and cash equivalents and restricted cash totaling $ 70.5 million . operating activities cash provided by our operating activities in 2013 was $ 8.8 million resulting from net income of $ 4.8 million , supplemented by non-cash items including $ 6.0 million for depreciation and amortization and $ 3.0 million for stock-based compensation , offset by a decrease of $ 1.0 million in the fair values of acquisitions-related contingent consideration . working capital activities primarily consisted of a net uses of cash of $ 2.7 million for an increase in accounts receivable primarily due to the increase in revenues , $ 1.4 million from a decrease in accounts payable and accrued expenses primarily related to timing for payments for professional fees , and $ 1.0 million from a decrease in deferred revenue primarily related to recognizing prepaid product revenues on the acquisition date of globaltrak into revenues upon customer acceptance . 69 cash provided by our operating activities in 2012 was $ 13.9 million resulting from net income of $ 8.9 million , supplemented by non-cash items including $ 4.8 million for depreciation and amortization and $ 1.8 million for stock-based compensation , offset by $ 1.2 million gain on extinguishment of debt and accounts payable . working capital activities primarily consisted of a net use of cash of $ 1.6 million for an increase in accounts receivable primarily due to the increase in revenues .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources overview our liquidity requirements arise from our working capital needs and to fund capital expenditures to support our current operations , and facilitate growth and expansion . we have financed our operations and expansion mostly from sales of our common stock through public offerings and private placements of debt , convertible redeemable preferred stock and common stock . we had net income in 2013 and 2012 , however we have incurred losses through 2011 and at december 31 , 2013 we have an accumulated deficit of $ 63.4 million . as of december 31 , 2013 , our primary source of liquidity consisted of cash and cash equivalents and restricted cash totaling $ 70.5 million . operating activities cash provided by our operating activities in 2013 was $ 8.8 million resulting from net income of $ 4.8 million , supplemented by non-cash items including $ 6.0 million for depreciation and amortization and $ 3.0 million for stock-based compensation , offset by a decrease of $ 1.0 million in the fair values of acquisitions-related contingent consideration . working capital activities primarily consisted of a net uses of cash of $ 2.7 million for an increase in accounts receivable primarily due to the increase in revenues , $ 1.4 million from a decrease in accounts payable and accrued expenses primarily related to timing for payments for professional fees , and $ 1.0 million from a decrease in deferred revenue primarily related to recognizing prepaid product revenues on the acquisition date of globaltrak into revenues upon customer acceptance . 69 cash provided by our operating activities in 2012 was $ 13.9 million resulting from net income of $ 8.9 million , supplemented by non-cash items including $ 4.8 million for depreciation and amortization and $ 1.8 million for stock-based compensation , offset by $ 1.2 million gain on extinguishment of debt and accounts payable . working capital activities primarily consisted of a net use of cash of $ 1.6 million for an increase in accounts receivable primarily due to the increase in revenues .
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Suspicious Activity Report : globaltrak on april 3 , 2013 , we completed the acquisition of substantially all of the assets of globaltrak , a division of system planning corporation ( ยspcย ) . the consideration paid to acquire globaltrak was $ 3.0 million in cash , subject to a final working capital adjustment , of which $ 0.5 million was deposited into an escrow account with a third party escrow agent to fund any indemnification obligation of spc to us , primarily for breaches of representations and warranties made by spc . during the three months ended september 30 , 2013 , we reached an agreement with spc for a final working capital adjustment of $ 0.1 million which was paid to us . as of december 31 , 2013 , this amount was recorded as a decrease to goodwill in our consolidated balance sheet since the adjustment was within the one-year measurement period . as a result of the acquisition of globaltrak , we recognized $ 2.5 million of goodwill and $ 0.5 million of intangible assets , which consist of technology , trade names and trademarks and customer lists . the results of operations of globaltrak are included in our consolidated results for the period subsequent to the acquisition date of april 3 , 2013. the acquisition of globaltrak gives us access to a customer base that includes military , international , government and commercial customers as well as expanded reach in growing regions , such as the middle east , asia and south america . 54 mobilenet , inc. on april 1 , 2013 , we completed the acquisition of substantially all of the assets of mobilenet , inc. ( ยmobilenetย ) . the consideration paid by us at closing consisted of $ 3.2 million in cash , subject to a final working capital adjustment specified in the acquisition agreement , and the issuance of 329,344 shares of our common stock ( valued at $ 4.96 per share , which reflected our closing price of common stock on april 1 , 2013 ) , of which 164,672 shares of common stock were placed into an escrow account for up to 15 months from closing to fund any indemnification obligations of mobilenet to us , primarily for breaches of representations and warranties made by mobilenet . during the three months ended september 30 , 2013 , we reached an agreement with mobilenet for a final working capital adjustment of less than $ 0.1 million which was paid to mobilenet . as of december 31 , 2013 , this amount was recorded as an increase to goodwill in our consolidated balance sheet since the adjustment was within the one-year measurement period . in addition to the consideration paid at closing , the acquisition agreement provides for contingent consideration payable by us to mobilenet if service revenues attributable to the mobilenet business for either of the two one year earn-out periods , may 1 , 2013 through april 30 , 2014 and may 1 , 2014 through april 30 , 2015 , are in excess of the specified baseline amount . in that event , we have agreed to pay to mobilenet an amount equal to ( i ) 50 % of the first $ 2.0 million of such excess amount for the applicable earn-out period and ( ii ) 35 % of any amount of such excess amount for the applicable earn-out period which is greater than $ 2.0 million . up to 50 % of any potential earn-out amounts can be paid in common stock at our option . any shares of common stock to be issued will be based on the 20-day average closing price of the common stock prior to the last trading day of the earn-out period . at the acquisition date , we recorded a liability of $ 1.5 million for the estimated value of the earn-out amounts . any change in the fair value of the earn-out amounts subsequent to the acquisition date , including changes from events after the acquisition date , will be recognized in earnings in the period the estimated fair value changes . for the year ended december 31 , 2013 , the fair value of the earn-out amounts was decreased by $ 0.6 million which is recorded as a reduction to selling , general and administrative expenses in our consolidated statements of operations . as a result of the acquisition of mobilenet , we recognized $ 2.9 million of goodwill and $ 3.5 million of intangible assets , which consist of technology , trademarks and customer lists . the results of operations of mobilenet are included in our consolidated results for the period subsequent to the acquisition date of april 1 , 2013. the acquisition of mobilenet will enable us to offer mobilenet 's complete fleet management solution directly to original equipment manufacturers , dealers and fleet owners . the acquired goodwill from the acquisitions of sens , globaltrak and mobilenet will not be amortized for financial reporting purposes . however the acquired goodwill is tax deductible , and therefore amortized over fifteen years for income tax purposes . as such , deferred income tax expense and a deferred tax liability arise as a result of the difference in tax deductibility of this amount for tax and financial reporting purposes . the resulting deferred tax liability , which is expected to continue to increase over time and will remain on our balance sheet indefinitely unless there is an impairment of the goodwill . see note 4 to the consolidated financial statements for further discussion on the acquisitions of sens , globaltrak and mobilenet . story_separator_special_tag however , due to an anomaly on one of the falcon 9 's first stage engines , the rocket did not comply with a pre-planned international space station safety gate to allow it to execute the second burn . for this reason , the next-generation prototype was deployed into a lower orbit as the result of a pre-imposed safety check required by nasa . as a result of the lower than intended orbit , the prototype satellite de-orbited on october 10 , 2012 despite all available efforts to raise the orbit using the satellite 's on-board propulsion system . as a result , we recognized during the fourth quarter of 2012 an impairment charge of $ 9.8 million . on december 7 , 2012 , we received $ 10.0 million from its insurer in connection with the settlement of an insurance claim arising from the loss of the prototype satellite , which represented the full amount recoverable under the insurance policy . as a result , we recorded during the fourth quarter of 2012 an insurance recovery-satellite network of $ 10 million in our consolidated statements of operations . acquisition costs and loss on other investment acquisition-related costs directly relate to our acquisitions . these costs include professional services expenses . for the years ended december 31 , 2013 , 2012 and 2011 acquisition-related costs were $ 1.7 million , $ 0.7 million and $ 1.6 million , respectively . in connection with the acquisition of startrak , we recognized a loss of $ 0.3 million on the disposition of our investment in alanco for the difference between the fair value and the carrying value . the amount of the loss was recorded in other income ( expense ) in our consolidated statements of operations for year ended december 31 , 2011. operating expenses we incur engineering expenses associated with the operation of our communications system and the development and support of new applications , as well as sales , marketing and administrative expenses related to the operation of our business . as of december 31 , 2013 , we have 186 employees . critical accounting policies and estimates our discussion and analysis of our results of operations , liquidity and capital resources are based on our consolidated financial statements which have been prepared in conformity with accounting principles generally 60 accepted in the united states of america . the preparation of these consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and disclosure of contingent assets and liabilities . on an on-going basis , we evaluate our estimates and judgments , including those related to revenue recognition , accounts receivable , accounting for business combinations , goodwill , satellite network and other equipment , long-lived assets , capitalized development costs , income taxes , warranty costs , loss contingencies and the value of securities underlying stock-based compensation . we base our estimates on historical and anticipated results and trends and on various other assumptions that we believe are reasonable under the circumstances , including assumptions as to future events . these estimates form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . by their nature , estimates are subject to an inherent degree of uncertainty . actual results may differ from our estimates and could have a significant adverse effect on our results of operations and financial position . we believe the following critical accounting policies affect our more significant estimates and judgments in the preparation of our consolidated financial statements . revenue recognition we recognize revenues when persuasive evidence of an arrangement exists , delivery has occurred , the fee is fixed or determinable and collectibility is reasonably assured . our revenue recognition policy requires us to make significant judgments regarding the probability of collection of the resulting accounts receivable balance based on prior history and the creditworthiness of our customers . in instances where collection is not reasonably assured , revenue is recognized when we receive cash from the customer . revenues from the activation of subscriber communicators and sims are initially recorded as deferred revenues and are , thereafter , recognized ratably over the term of the agreement with the customer , generally four years which is the estimated customer relationship period . revenues generated from monthly usage and administrative fees and engineering services are recognized when the services are rendered . revenues generated from extended warranty service agreements extending beyond the initial warranty period of one year are initially recorded as deferred revenues and are , thereafter , recognized ratably over the term of the agreements generally two to five years . revenues generated from royalties under our subscriber communicator manufacturing agreements are recognized when we issue to a third party manufacturer upon request a unique serial number to be assigned to each unit manufactured by such third party manufacturer . revenues generated from the sale of satellite subscriber communicators , sims and other products are either recognized when the products are shipped or when customers accept the products , depending on the specific contractual terms . sales of subscriber communicators and sims and other items are not subject to return and title and risk of loss pass to the customer at the time of shipment . in arrangements that include multiple deliverables , we make significant estimates and judgments with the determination of revenue to be recognized . these significant estimates and judgments include identifying the various elements in an arrangement , determining if the delivered items have stand-alone value and the relative selling prices . accounts receivable accounts receivable are due in accordance with payment terms included in our negotiated contracts . amounts due are stated net of an allowance for doubtful accounts . accounts that are outstanding longer than the contractual payment terms are considered past due . we make ongoing assumptions and judgments
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2,504 | under our ground leases we are typically not responsible for any operating or capital expenses over the life of the lease , making the management of our portfolio relatively simple , with limited working capital needs . we believe institutional owners of commercial real estate increasingly understand that the structure of our safehold tm ground lease allows owners of high quality properties to generate higher returns with less risk . we experienced significant customer demand for our safehold tm ground leases during the year ended december 31 , 2019 , and we expect that increased customer experience and market recognition should generate greater demand for safehold tm ground leases from building owners and acquirers going forward . 31 our portfolio our portfolio of properties is diversified by property type and region . our portfolio is comprised of ground leases and a master lease ( relating to five hotel assets that we refer to as our โ park hotels portfolio โ ) that has many of the characteristics of a ground lease , including length of lease term , percentage rent participations , triple net terms and strong ground rent coverage ( which was 4.0x as of december 31 , 2019 on a weighted average basis ) . below is an overview of the top 10 assets in our portfolio as of december 31 , 2019 ( based on gross book value ) : ( 1 ) replace_table_token_1_th _ ( 1 ) gross book value represents the historical purchase price plus accrued interest on sales-type leases . ( 2 ) gross book value for this property represents our pro rata share of the gross book value of our unconsolidated venture ( refer to note 6 ) . ( 3 ) the park hotels portfolio consists of five properties and is subject to a single master lease . a majority of the land underlying one of these properties is owned by a third party and is ground leased to us through 2044 subject to changes in the cpi ; however , our tenant at the property pays this cost directly to the third party . 32 the following charts show certain statistics of our portfolio as of december 31 , 2019 , excluding unfunded commitments : 33 unfunded commitments in october 2017 , we entered into a commitment to acquire land subject to a ground lease on which a luxury multi-family project is currently being constructed in san jose , california . pursuant to the purchase agreement , we will acquire the ground lease on november 1 , 2020 from istar for $ 34.0 million . istar committed to provide a $ 80.5 million construction loan to the ground lessee . in august 2018 , we entered into an aggregate $ 30.0 million commitment to acquire land for $ 12.5 million and provide a $ 17.5 million leasehold improvement allowance for the ground lease tenant 's construction of a multi-family property in washington , dc . we acquired the land in june 2019 and will fund the leasehold improvement allowance upon the completion of certain conditions . in january 2019 , we acquired land for $ 13.0 million and simultaneously structured and entered into a ground lease as part of the ground lease tenant 's acquisition of an existing office building located in washington , dc that is to be converted into a multi-family building . we committed to provide the ground lease tenant a $ 10.5 million leasehold improvement allowance that will be funded upon the completion of certain conditions . in june 2019 , we acquired land for $ 8.1 million and simultaneously structured and entered into a ground lease as part of the ground lease tenant 's development of a to-be-built multi-family community located outside of orlando , fl . we committed to provide the ground lease tenant a $ 21.4 million leasehold improvement allowance that will be funded upon the completion of certain conditions . as of december 31 , 2019 , $ 2.1 million of the leasehold improvement allowance had been funded . results of operations for the year ended december 31 , 2019 compared to the year ended december 31 , 2018 replace_table_token_2_th operating lease income increased to $ 72.1 million during the year ended december 31 , 2019 from $ 47.4 million for the same period in 2018. the increase in 2019 was primarily due to the origination and acquisition of ground leases classified as operating leases . interest income from sales-type leases ( refer to note 3 ) was $ 18.5 million for the year ended december 31 , 2019 . on january 1 , 2019 , we adopted new accounting standards ( refer to note 3 ) and , as a result , now classify certain of our ground leases as sales-type leases . under sales-type leases , we accrue interest income under the effective interest method as opposed to recognition of operating lease income under the straight-line rent method for our ground leases that do not qualify as sales-type leases . we expect a majority of our newly originated ground leases will be classified as sales-type leases . other income for the year ended december 31 , 2019 was $ 2.8 million and consists primarily of $ 2.4 million of interest income earned on our cash balances and $ 0.4 million of other income relating to a ground lease in which we are the lessee but 34 our tenant at the property pays this expense directly under the terms of a master lease ( refer to note 3 ) . story_separator_special_tag reserve for losses in net investment in sales-type leases and ground lease receivablesโ we evaluate our net investment in sales-type leases and ground lease receivables for impairment under asc 310. as part of our process for monitoring the credit quality of our net investment in sales-type leases and ground lease receivables , we perform a quarterly assessment for each of our net investment in sales-type leases and ground lease receivables . we generally target ground lease investments in which the initial cost of the ground lease represents 30 % to 45 % of the combined property value . as such , we believe our ground lease investments represent a safe position in a property 's capital structure . this safety is derived from the typical structure of a ground lease under which the landlord has a residual right to regain possession of its land and take ownership of the buildings and improvements thereon upon a tenant default . the landlord 's residual right provides a strong incentive for a ground lease tenant or its leasehold lender to make the required ground lease rent payments and , as such , we believe there is a low likelihood of default on our net investment in sales-type leases and ground lease receivables . we consider a net investment in sales-type lease or ground lease receivable to be impaired when , based upon current information and events , we believe that it is probable that we will be unable to collect all amounts due under the contractual terms of the ground lease . as of december 31 , 2019 , all of our net investment in sales-type leases and ground lease receivables were performing in accordance with the terms of the respective leases . any potential reserve for losses in net investment in sales-type leases and ground lease receivables will reflect management 's estimate of losses inherent in the portfolio as of the balance sheet date . if we determine that the collateral fair value less costs to sell is less than the carrying value of a collateral-dependent receivable , we will record a reserve . the reserve , if applicable , will be increased ( decreased ) through `` reserve for losses on receivables `` in our consolidated statements of operations and will be decreased by charge-offs . our policy is to charge off a receivable when we determine , based on a variety of factors , that all commercially reasonable means of recovering the receivable balance have been exhausted . this may occur at different times , including when we receive cash or other assets in a pre-foreclosure sale or take control of the underlying collateral in full satisfaction of the receivable upon foreclosure or deed-in-lieu , or when we have otherwise ceased significant collection efforts . we consider circumstances such as the foregoing to be indicators that the final steps in the receivable collection process have occurred and that a receivable is uncollectible . at this point , a loss is confirmed and the receivable and related reserve will be charged off . we have one portfolio segment represented by acquiring , managing and capitalizing ground leases , whereby we utilize a uniform process for determining our reserve for losses on our net investment in sales-type leases and ground lease receivables . interest income from sales-type leases โinterest income from sales-type leases is recognized under the effective interest method . the effective interest method produces a constant yield on the net investment in the sales-type lease and ground lease receivable over the term of the lease . rent payments that are not fixed and determinable at lease inception , such as percentage rent and cpi adjustments , are not included in the effective interest method calculation and are recognized in `` interest income from sales-type leases `` in our consolidated statements of operations in the period earned . a ground lease receivable is placed on non-accrual status if and when it becomes 90-days past due or we consider the ground lease receivable impaired . equity investments in ground leases โequity investments in ground leases are accounted for pursuant to the equity method of accounting if we can significantly influence the operating and financial policies of the investee . we have a 54.8 % noncontrolling equity interest in a venture and have shared voting power with our partner . we determined the entity to be a voting interest entity and our equity interest is accounted for pursuant to the equity method of accounting . our periodic share of earnings and losses in equity method investees are included in `` earnings ( losses ) from equity method investments `` in our consolidated statements of operations . equity investments are included in `` equity investments in ground leases `` on our consolidated balance sheets . operating lease income โ operating lease income includes rent earned from leasing land and buildings owned by us to our tenants . operating lease income is recognized on the straight-line method of accounting , generally from the later of the date the lessee takes possession of the space and it is ready for its intended use or the date of acquisition of the asset subject to existing leases . accordingly , increases in contractual lease payments are recognized evenly over the term of the lease . the periodic difference 38 between operating lease income recognized under this method and contractual lease payment terms is recorded as deferred operating lease income receivable and is included in โ โ deferred operating lease income receivable `` on our consolidated balance sheets . we are also entitled to percentage rent , representing a portion of our lessee 's gross revenues from the properties , pursuant to some of our leases and record percentage rent as operating lease income when earned . operating lease income also includes the amortization of finite lived intangible assets and liabilities , which are amortized over the period during which the assets or liabilities are expected to contribute directly
| liquidity and capital resources liquidity is a measure of our ability to meet potential cash requirements , including to pay interest and repay borrowings , fund and maintain our assets and operations , complete acquisitions and originations of investments , make distributions to our stockholders and meet other general business needs . in order to qualify as a reit , we are required under the internal revenue code of 1986 to distribute to our stockholders , on an annual basis , at least 90 % of our reit taxable income , determined without regard to the deduction for dividends paid and excluding net capital gains . we expect to make quarterly cash distributions to our stockholders sufficient to meet reit qualification requirements . 35 as of december 31 , 2019 , we had $ 22.7 million of unrestricted cash , $ 359.0 million of undrawn capacity and the ability to borrow an additional $ 118.2 million on our 2017 revolver , subject to the conditions set forth in the applicable loan agreement ( refer to note 8 for more information on our 2017 revolver ) , without pledging any additional assets to the facility . we refer to this $ 140.9 million of unrestricted cash and additional borrowing capacity as our `` equity '' liquidity which can be used for general corporate purposes or leveraged ( a maximum of 2:1 in the case of our 2017 revolver ) to acquire new ground lease assets.
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources liquidity is a measure of our ability to meet potential cash requirements , including to pay interest and repay borrowings , fund and maintain our assets and operations , complete acquisitions and originations of investments , make distributions to our stockholders and meet other general business needs . in order to qualify as a reit , we are required under the internal revenue code of 1986 to distribute to our stockholders , on an annual basis , at least 90 % of our reit taxable income , determined without regard to the deduction for dividends paid and excluding net capital gains . we expect to make quarterly cash distributions to our stockholders sufficient to meet reit qualification requirements . 35 as of december 31 , 2019 , we had $ 22.7 million of unrestricted cash , $ 359.0 million of undrawn capacity and the ability to borrow an additional $ 118.2 million on our 2017 revolver , subject to the conditions set forth in the applicable loan agreement ( refer to note 8 for more information on our 2017 revolver ) , without pledging any additional assets to the facility . we refer to this $ 140.9 million of unrestricted cash and additional borrowing capacity as our `` equity '' liquidity which can be used for general corporate purposes or leveraged ( a maximum of 2:1 in the case of our 2017 revolver ) to acquire new ground lease assets.
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Suspicious Activity Report : under our ground leases we are typically not responsible for any operating or capital expenses over the life of the lease , making the management of our portfolio relatively simple , with limited working capital needs . we believe institutional owners of commercial real estate increasingly understand that the structure of our safehold tm ground lease allows owners of high quality properties to generate higher returns with less risk . we experienced significant customer demand for our safehold tm ground leases during the year ended december 31 , 2019 , and we expect that increased customer experience and market recognition should generate greater demand for safehold tm ground leases from building owners and acquirers going forward . 31 our portfolio our portfolio of properties is diversified by property type and region . our portfolio is comprised of ground leases and a master lease ( relating to five hotel assets that we refer to as our โ park hotels portfolio โ ) that has many of the characteristics of a ground lease , including length of lease term , percentage rent participations , triple net terms and strong ground rent coverage ( which was 4.0x as of december 31 , 2019 on a weighted average basis ) . below is an overview of the top 10 assets in our portfolio as of december 31 , 2019 ( based on gross book value ) : ( 1 ) replace_table_token_1_th _ ( 1 ) gross book value represents the historical purchase price plus accrued interest on sales-type leases . ( 2 ) gross book value for this property represents our pro rata share of the gross book value of our unconsolidated venture ( refer to note 6 ) . ( 3 ) the park hotels portfolio consists of five properties and is subject to a single master lease . a majority of the land underlying one of these properties is owned by a third party and is ground leased to us through 2044 subject to changes in the cpi ; however , our tenant at the property pays this cost directly to the third party . 32 the following charts show certain statistics of our portfolio as of december 31 , 2019 , excluding unfunded commitments : 33 unfunded commitments in october 2017 , we entered into a commitment to acquire land subject to a ground lease on which a luxury multi-family project is currently being constructed in san jose , california . pursuant to the purchase agreement , we will acquire the ground lease on november 1 , 2020 from istar for $ 34.0 million . istar committed to provide a $ 80.5 million construction loan to the ground lessee . in august 2018 , we entered into an aggregate $ 30.0 million commitment to acquire land for $ 12.5 million and provide a $ 17.5 million leasehold improvement allowance for the ground lease tenant 's construction of a multi-family property in washington , dc . we acquired the land in june 2019 and will fund the leasehold improvement allowance upon the completion of certain conditions . in january 2019 , we acquired land for $ 13.0 million and simultaneously structured and entered into a ground lease as part of the ground lease tenant 's acquisition of an existing office building located in washington , dc that is to be converted into a multi-family building . we committed to provide the ground lease tenant a $ 10.5 million leasehold improvement allowance that will be funded upon the completion of certain conditions . in june 2019 , we acquired land for $ 8.1 million and simultaneously structured and entered into a ground lease as part of the ground lease tenant 's development of a to-be-built multi-family community located outside of orlando , fl . we committed to provide the ground lease tenant a $ 21.4 million leasehold improvement allowance that will be funded upon the completion of certain conditions . as of december 31 , 2019 , $ 2.1 million of the leasehold improvement allowance had been funded . results of operations for the year ended december 31 , 2019 compared to the year ended december 31 , 2018 replace_table_token_2_th operating lease income increased to $ 72.1 million during the year ended december 31 , 2019 from $ 47.4 million for the same period in 2018. the increase in 2019 was primarily due to the origination and acquisition of ground leases classified as operating leases . interest income from sales-type leases ( refer to note 3 ) was $ 18.5 million for the year ended december 31 , 2019 . on january 1 , 2019 , we adopted new accounting standards ( refer to note 3 ) and , as a result , now classify certain of our ground leases as sales-type leases . under sales-type leases , we accrue interest income under the effective interest method as opposed to recognition of operating lease income under the straight-line rent method for our ground leases that do not qualify as sales-type leases . we expect a majority of our newly originated ground leases will be classified as sales-type leases . other income for the year ended december 31 , 2019 was $ 2.8 million and consists primarily of $ 2.4 million of interest income earned on our cash balances and $ 0.4 million of other income relating to a ground lease in which we are the lessee but 34 our tenant at the property pays this expense directly under the terms of a master lease ( refer to note 3 ) . story_separator_special_tag reserve for losses in net investment in sales-type leases and ground lease receivablesโ we evaluate our net investment in sales-type leases and ground lease receivables for impairment under asc 310. as part of our process for monitoring the credit quality of our net investment in sales-type leases and ground lease receivables , we perform a quarterly assessment for each of our net investment in sales-type leases and ground lease receivables . we generally target ground lease investments in which the initial cost of the ground lease represents 30 % to 45 % of the combined property value . as such , we believe our ground lease investments represent a safe position in a property 's capital structure . this safety is derived from the typical structure of a ground lease under which the landlord has a residual right to regain possession of its land and take ownership of the buildings and improvements thereon upon a tenant default . the landlord 's residual right provides a strong incentive for a ground lease tenant or its leasehold lender to make the required ground lease rent payments and , as such , we believe there is a low likelihood of default on our net investment in sales-type leases and ground lease receivables . we consider a net investment in sales-type lease or ground lease receivable to be impaired when , based upon current information and events , we believe that it is probable that we will be unable to collect all amounts due under the contractual terms of the ground lease . as of december 31 , 2019 , all of our net investment in sales-type leases and ground lease receivables were performing in accordance with the terms of the respective leases . any potential reserve for losses in net investment in sales-type leases and ground lease receivables will reflect management 's estimate of losses inherent in the portfolio as of the balance sheet date . if we determine that the collateral fair value less costs to sell is less than the carrying value of a collateral-dependent receivable , we will record a reserve . the reserve , if applicable , will be increased ( decreased ) through `` reserve for losses on receivables `` in our consolidated statements of operations and will be decreased by charge-offs . our policy is to charge off a receivable when we determine , based on a variety of factors , that all commercially reasonable means of recovering the receivable balance have been exhausted . this may occur at different times , including when we receive cash or other assets in a pre-foreclosure sale or take control of the underlying collateral in full satisfaction of the receivable upon foreclosure or deed-in-lieu , or when we have otherwise ceased significant collection efforts . we consider circumstances such as the foregoing to be indicators that the final steps in the receivable collection process have occurred and that a receivable is uncollectible . at this point , a loss is confirmed and the receivable and related reserve will be charged off . we have one portfolio segment represented by acquiring , managing and capitalizing ground leases , whereby we utilize a uniform process for determining our reserve for losses on our net investment in sales-type leases and ground lease receivables . interest income from sales-type leases โinterest income from sales-type leases is recognized under the effective interest method . the effective interest method produces a constant yield on the net investment in the sales-type lease and ground lease receivable over the term of the lease . rent payments that are not fixed and determinable at lease inception , such as percentage rent and cpi adjustments , are not included in the effective interest method calculation and are recognized in `` interest income from sales-type leases `` in our consolidated statements of operations in the period earned . a ground lease receivable is placed on non-accrual status if and when it becomes 90-days past due or we consider the ground lease receivable impaired . equity investments in ground leases โequity investments in ground leases are accounted for pursuant to the equity method of accounting if we can significantly influence the operating and financial policies of the investee . we have a 54.8 % noncontrolling equity interest in a venture and have shared voting power with our partner . we determined the entity to be a voting interest entity and our equity interest is accounted for pursuant to the equity method of accounting . our periodic share of earnings and losses in equity method investees are included in `` earnings ( losses ) from equity method investments `` in our consolidated statements of operations . equity investments are included in `` equity investments in ground leases `` on our consolidated balance sheets . operating lease income โ operating lease income includes rent earned from leasing land and buildings owned by us to our tenants . operating lease income is recognized on the straight-line method of accounting , generally from the later of the date the lessee takes possession of the space and it is ready for its intended use or the date of acquisition of the asset subject to existing leases . accordingly , increases in contractual lease payments are recognized evenly over the term of the lease . the periodic difference 38 between operating lease income recognized under this method and contractual lease payment terms is recorded as deferred operating lease income receivable and is included in โ โ deferred operating lease income receivable `` on our consolidated balance sheets . we are also entitled to percentage rent , representing a portion of our lessee 's gross revenues from the properties , pursuant to some of our leases and record percentage rent as operating lease income when earned . operating lease income also includes the amortization of finite lived intangible assets and liabilities , which are amortized over the period during which the assets or liabilities are expected to contribute directly
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2,505 | 66 based on our clinical development plans for our pipeline , in the near term we intend to predominantly focus our available resources on the continued development of cudc-907 , as well as ca-170 , ca-4948 and ca-327 in collaboration with aurigene . recent developments on march 6 , 2017 , we and curis royalty entered into a new credit agreement with healthcare royalty for the purpose of refinancing the current loan with biopharma-ii . on the effective date of the credit agreement , which is expected to occur on or before march 22 , 2017 , subject to certain conditions precedent specified in the credit agreement , the current loan with biopharma-ii would terminate in its entirety . pursuant to the credit agreement , healthcare royalty would make a $ 45.0 million loan at an interest rate of 9.95 % to curis royalty , which would be used to pay off the approximately $ 18.4 million in remaining loan obligations to biopharma-ii under the prior loan . the residual proceeds of the loan would be distributed to curis as sole equity member of curis royalty . the loan from healthcare royalty would be substantially similar to the loan with biopharma-ii , including that it would be repaid from certain royalty and royalty-related payments owed by genentech under the genentech collaboration agreement . in connection with the loan , curis royalty will grant a first priority lien and security interest ( excluding certain payments allocable to academic institutions ) in all of its assets and all real , intangible and personal property , including all of its right , title and interest in and to the erivedge royalty payments . the loan constitutes an obligation of curis royalty , and is intended to be non-recourse to curis , except that ( i ) curis has agreed , as a post-closing matter , to use reasonable best efforts to obtain genentech 's consent to a pledge of curis ' equity interest in curis royalty and ( ii ) under certain circumstances arising from the breach of certain covenants and representations , healthcare royalty may proceed directly against curis . the closing of the new loan with healthcare royalty is subject to certain conditions precedent specified in the credit agreement , including the parties having received payoff and termination documentation from biopharma-ii . for a further discussion of the loan with healthcare royalty , please refer to โ part ii , item 9b . other information - royalty financing transaction . โ our collaborations and license agreements our current collaborations and license agreements are summarized as follows : aurigene collaboration agreement collaboration overview . on january 18 , 2015 , we entered into an exclusive collaboration agreement with aurigene for the discovery , development and commercialization of small molecule compounds in the areas of immuno-oncology and selected precision oncology targets . under the collaboration agreement , aurigene granted us an option to obtain exclusive , royalty-bearing licenses to relevant aurigene technology to develop , manufacture and commercialize products containing certain of such compounds . for each program , aurigene has granted us an exclusive option , exercisable within 90 days after aurigene delivers the relevant data regarding a development candidate , to obtain an exclusive , royalty-bearing license to develop , manufacture and commercialize compounds from such program , including the development candidate and products containing such compounds , anywhere in the world with the exception of india and russia . upon our exercise of the option for a particular program , aurigene will grant us the royalty-bearing license described above for each licensed program , and we will grant aurigene an exclusive , royalty-free , fully paid license under our relevant technology to develop , manufacture and commercialize compounds from such program and products containing such compounds in india and russia . there are currently multiple licensed programs under this collaboration , including two programs targeting immune checkpoint regulators and one program targeting the irak4 kinase . in october 2015 , we exercised options to license the first two programs under this collaboration . the first licensed program is focused on the development of orally-available small molecule antagonists of the pd1 and vista pathway in the immuno-oncology field , including development candidate designated ca-170 , which is a pdl2/vista antagonist . the second licensed program is focused on orally-available small molecule inhibitors of irak4 in the precision oncology field , with the lead development candidate designated ca-4948 . in addition , in october 2015 , we selected a third program for further development under the collaboration , the second preclinical program within the immuno-oncology field , which is focused on evaluating small molecule antagonists with pd1 and tim3 immune checkpoint pathways , including compounds that target pdl1 and tim3 . in october 2016 , we exercised our option to license this third program and designated ca-327 as the development candidate . for each program we license , we are obligated to use commercially reasonable efforts to develop , obtain regulatory approval for , and commercialize at least one product in each of the u.s. , specified countries in the european union , and japan , and aurigene is obligated to use commercially reasonable efforts to perform its obligations under the development plan for such licensed program in an expeditious manner . subject to specified exceptions , we and aurigene have agreed to collaborate exclusively with each other on the discovery , research , development and commercialization of programs and compounds within immuno-oncology for an initial period of 67 approximately two years from the effective date of the collaboration agreement . at our option , and subject to specified conditions , we may extend such exclusivity for up to three additional one-year periods by paying to aurigene exclusivity option fees on an annual basis . story_separator_special_tag the termination of the august 2009 agreement was effective as of february 2015. we have re-designated the molecule cudc-305 . under the terms of the transition agreement , the licenses and all other rights related to cudc-305 have been terminated and reverted to us effective as of the termination date . debiopharm ceased enrollment in all clinical trials as of the termination date . in addition , we exercised our right , pursuant to the license agreement , to obtain a non-exclusive , worldwide , royalty-bearing license , with the right to sublicense , under other intellectual property rights of debiopharm to develop , make , have made , use , sell , offer for sale , have sold and import cudc-305 , and debiopharm will transfer to us the ind application related to cudc-305 . debiopharm also assigned to us its sole patent application related to cudc-305 . further under the terms of the transition agreement , debiopharm will transition ongoing cudc-305 development and manufacturing activities to us and will make available all necessary information generated by or on behalf of debiopharm for us to pursue the manufacturing of cudc-305 . during the year ended december 31 , 2015 , we paid $ 0.8 million to debiopharm , primarily in consideration for debiopharm providing drug product . we have agreed to pay to debiopharm royalties at a rate of 3 % of net sales by us ( excluding sales by our third party sublicensees ) of products containing cudc-305 , and the following percentages of amounts that we receive from third party sublicensees : ( i ) 10 % of any royalties that we receive from third party sublicensees based on such sublicensees ' net sales of products containing cudc-305 ; and ( ii ) 20 % of any non-royalty sublicense payments that we receive from third party sublicensees , provided that the maximum aggregate amount payable by us to debiopharm with respect to non-royalty sublicense payments is $ 30.0 million . liquidity since our inception , we have funded our operations primarily through private and public placement of our equity securities , license fees , contingent cash payments , research and development funding from our corporate collaborators , debt financings and the monetization of certain royalty rights . we have never been profitable on an annual basis , and have an accumulated deficit of $ 898.9 million as of december 31 , 2016 . we will need to generate significant revenues to achieve profitability , and do not expect to achieve profitability in the foreseeable future , if at all . we anticipate that our existing cash , cash equivalents and investments at december 31 , 2016 should enable us to maintain our planned operations into the second half of 2017. in order to ensure adequate cash resources for 12 months from the date of filing this annual report on form 10-k , we intend to ( i ) close on our committed debt refinancing with healthcare royalty and ( ii ) reduce or delay spending on our research and development programs and operating expenses to the extent we are unable to raise additional financing through our current $ 30 million at-the-market sale facility with cowen and company or other potential financing . however , additional funding may not be available to us on acceptable terms , if at all . if we are not successful in obtaining additional financing as planned , we will be required to reduce or delay spending on our research and development programs and operating expenses in the near term , which could adversely affect our financial condition , our ability to pursue our business strategies , our prospects and the value of our common stock . for a further discussion of our liquidity and funding requirements , see โ liquidity and capital resources - funding requirements . โ key drivers we believe that near-term key drivers to our success will include : our ability to successfully plan , finance and complete current and planned clinical trials for our lead proprietary drug candidate , cudc-907 , as well as for such clinical trials to generate favorable data ; our ability to successfully advance ca-170 , and for us to finance and complete the current and planned clinical trials of this drug candidate ; 71 our and aurigene 's ability to complete preclinical development and ind-enabling studies for ca-4948 and ca-327 , and for us to then finance and complete planned phase 1 clinical trials for each of these development candidates ; aurigene 's ability to advance additional preclinical immuno-oncology , and precision oncology drug candidates , and our ability to license these programs from aurigene and further progress them clinically ; genentech and roche 's ability to successfully commercialize erivedge in advanced bcc in the united states and in other global territories ; and genentech and roche 's initiation and completion of additional clinical studies of erivedge , including in diseases other than bcc , such as ipf or mf . in the longer term , a key driver to our success will be our ability , and the ability of any current or future collaborator or licensee , to successfully develop and commercialize additional drug candidates . financial operations overview general . our future operating results will largely depend on the progress of drug candidates currently in our research and development pipeline . the results of our operations will vary significantly from year to year and quarter to quarter and depend on , among other factors , the cost and outcome of any preclinical development or clinical trials then being conducted . for a discussion of our liquidity and funding requirements , see โ - liquidity and capital resources - funding requirements . โ debt . in december 2012 , our wholly-owned subsidiary , curis royalty , entered into a $ 30 million debt transaction with biopharma-ii , at an annual interest rate of 12.25 % collateralized with certain future erivedge royalty
| net cash used in operating activities of $ 35.8 million during the year ended december 31 , 2016 was primarily the result of our net loss for the period of $ 60.4 million , offset by non-cash charges consisting of the stock issuance to aurigene as partial consideration for the collaboration agreement with aurigene , stock-based compensation , non-cash interest expense and depreciation totaling $ 22.7 million . accounts payable and accrued liabilities increased $ 2.3 million , accounts receivable increased $ 0.4 million related to an increase in fourth quarter erivedge royalties and prepaid assets increased $ 0.1 million . net cash used in operating activities of $ 29.9 million during the year ended december 31 , 2015 was primarily the result of our net loss for the period of $ 59.0 million , offset by non-cash charges consisting of the stock issuance to aurigene as partial consideration for the collaboration agreement with aurigene , stock-based compensation , changes in the fair value of our warrant liability , non-cash interest expense and depreciation totaling $ 28.2 million . accounts payable and accrued liabilities increased $ 1.8 million , which includes the accrual of $ 1.0 million in supplemental research and development funding under our aurigene collaboration and an increase in clinical accruals related to our ongoing trials .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```net cash used in operating activities of $ 35.8 million during the year ended december 31 , 2016 was primarily the result of our net loss for the period of $ 60.4 million , offset by non-cash charges consisting of the stock issuance to aurigene as partial consideration for the collaboration agreement with aurigene , stock-based compensation , non-cash interest expense and depreciation totaling $ 22.7 million . accounts payable and accrued liabilities increased $ 2.3 million , accounts receivable increased $ 0.4 million related to an increase in fourth quarter erivedge royalties and prepaid assets increased $ 0.1 million . net cash used in operating activities of $ 29.9 million during the year ended december 31 , 2015 was primarily the result of our net loss for the period of $ 59.0 million , offset by non-cash charges consisting of the stock issuance to aurigene as partial consideration for the collaboration agreement with aurigene , stock-based compensation , changes in the fair value of our warrant liability , non-cash interest expense and depreciation totaling $ 28.2 million . accounts payable and accrued liabilities increased $ 1.8 million , which includes the accrual of $ 1.0 million in supplemental research and development funding under our aurigene collaboration and an increase in clinical accruals related to our ongoing trials .
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Suspicious Activity Report : 66 based on our clinical development plans for our pipeline , in the near term we intend to predominantly focus our available resources on the continued development of cudc-907 , as well as ca-170 , ca-4948 and ca-327 in collaboration with aurigene . recent developments on march 6 , 2017 , we and curis royalty entered into a new credit agreement with healthcare royalty for the purpose of refinancing the current loan with biopharma-ii . on the effective date of the credit agreement , which is expected to occur on or before march 22 , 2017 , subject to certain conditions precedent specified in the credit agreement , the current loan with biopharma-ii would terminate in its entirety . pursuant to the credit agreement , healthcare royalty would make a $ 45.0 million loan at an interest rate of 9.95 % to curis royalty , which would be used to pay off the approximately $ 18.4 million in remaining loan obligations to biopharma-ii under the prior loan . the residual proceeds of the loan would be distributed to curis as sole equity member of curis royalty . the loan from healthcare royalty would be substantially similar to the loan with biopharma-ii , including that it would be repaid from certain royalty and royalty-related payments owed by genentech under the genentech collaboration agreement . in connection with the loan , curis royalty will grant a first priority lien and security interest ( excluding certain payments allocable to academic institutions ) in all of its assets and all real , intangible and personal property , including all of its right , title and interest in and to the erivedge royalty payments . the loan constitutes an obligation of curis royalty , and is intended to be non-recourse to curis , except that ( i ) curis has agreed , as a post-closing matter , to use reasonable best efforts to obtain genentech 's consent to a pledge of curis ' equity interest in curis royalty and ( ii ) under certain circumstances arising from the breach of certain covenants and representations , healthcare royalty may proceed directly against curis . the closing of the new loan with healthcare royalty is subject to certain conditions precedent specified in the credit agreement , including the parties having received payoff and termination documentation from biopharma-ii . for a further discussion of the loan with healthcare royalty , please refer to โ part ii , item 9b . other information - royalty financing transaction . โ our collaborations and license agreements our current collaborations and license agreements are summarized as follows : aurigene collaboration agreement collaboration overview . on january 18 , 2015 , we entered into an exclusive collaboration agreement with aurigene for the discovery , development and commercialization of small molecule compounds in the areas of immuno-oncology and selected precision oncology targets . under the collaboration agreement , aurigene granted us an option to obtain exclusive , royalty-bearing licenses to relevant aurigene technology to develop , manufacture and commercialize products containing certain of such compounds . for each program , aurigene has granted us an exclusive option , exercisable within 90 days after aurigene delivers the relevant data regarding a development candidate , to obtain an exclusive , royalty-bearing license to develop , manufacture and commercialize compounds from such program , including the development candidate and products containing such compounds , anywhere in the world with the exception of india and russia . upon our exercise of the option for a particular program , aurigene will grant us the royalty-bearing license described above for each licensed program , and we will grant aurigene an exclusive , royalty-free , fully paid license under our relevant technology to develop , manufacture and commercialize compounds from such program and products containing such compounds in india and russia . there are currently multiple licensed programs under this collaboration , including two programs targeting immune checkpoint regulators and one program targeting the irak4 kinase . in october 2015 , we exercised options to license the first two programs under this collaboration . the first licensed program is focused on the development of orally-available small molecule antagonists of the pd1 and vista pathway in the immuno-oncology field , including development candidate designated ca-170 , which is a pdl2/vista antagonist . the second licensed program is focused on orally-available small molecule inhibitors of irak4 in the precision oncology field , with the lead development candidate designated ca-4948 . in addition , in october 2015 , we selected a third program for further development under the collaboration , the second preclinical program within the immuno-oncology field , which is focused on evaluating small molecule antagonists with pd1 and tim3 immune checkpoint pathways , including compounds that target pdl1 and tim3 . in october 2016 , we exercised our option to license this third program and designated ca-327 as the development candidate . for each program we license , we are obligated to use commercially reasonable efforts to develop , obtain regulatory approval for , and commercialize at least one product in each of the u.s. , specified countries in the european union , and japan , and aurigene is obligated to use commercially reasonable efforts to perform its obligations under the development plan for such licensed program in an expeditious manner . subject to specified exceptions , we and aurigene have agreed to collaborate exclusively with each other on the discovery , research , development and commercialization of programs and compounds within immuno-oncology for an initial period of 67 approximately two years from the effective date of the collaboration agreement . at our option , and subject to specified conditions , we may extend such exclusivity for up to three additional one-year periods by paying to aurigene exclusivity option fees on an annual basis . story_separator_special_tag the termination of the august 2009 agreement was effective as of february 2015. we have re-designated the molecule cudc-305 . under the terms of the transition agreement , the licenses and all other rights related to cudc-305 have been terminated and reverted to us effective as of the termination date . debiopharm ceased enrollment in all clinical trials as of the termination date . in addition , we exercised our right , pursuant to the license agreement , to obtain a non-exclusive , worldwide , royalty-bearing license , with the right to sublicense , under other intellectual property rights of debiopharm to develop , make , have made , use , sell , offer for sale , have sold and import cudc-305 , and debiopharm will transfer to us the ind application related to cudc-305 . debiopharm also assigned to us its sole patent application related to cudc-305 . further under the terms of the transition agreement , debiopharm will transition ongoing cudc-305 development and manufacturing activities to us and will make available all necessary information generated by or on behalf of debiopharm for us to pursue the manufacturing of cudc-305 . during the year ended december 31 , 2015 , we paid $ 0.8 million to debiopharm , primarily in consideration for debiopharm providing drug product . we have agreed to pay to debiopharm royalties at a rate of 3 % of net sales by us ( excluding sales by our third party sublicensees ) of products containing cudc-305 , and the following percentages of amounts that we receive from third party sublicensees : ( i ) 10 % of any royalties that we receive from third party sublicensees based on such sublicensees ' net sales of products containing cudc-305 ; and ( ii ) 20 % of any non-royalty sublicense payments that we receive from third party sublicensees , provided that the maximum aggregate amount payable by us to debiopharm with respect to non-royalty sublicense payments is $ 30.0 million . liquidity since our inception , we have funded our operations primarily through private and public placement of our equity securities , license fees , contingent cash payments , research and development funding from our corporate collaborators , debt financings and the monetization of certain royalty rights . we have never been profitable on an annual basis , and have an accumulated deficit of $ 898.9 million as of december 31 , 2016 . we will need to generate significant revenues to achieve profitability , and do not expect to achieve profitability in the foreseeable future , if at all . we anticipate that our existing cash , cash equivalents and investments at december 31 , 2016 should enable us to maintain our planned operations into the second half of 2017. in order to ensure adequate cash resources for 12 months from the date of filing this annual report on form 10-k , we intend to ( i ) close on our committed debt refinancing with healthcare royalty and ( ii ) reduce or delay spending on our research and development programs and operating expenses to the extent we are unable to raise additional financing through our current $ 30 million at-the-market sale facility with cowen and company or other potential financing . however , additional funding may not be available to us on acceptable terms , if at all . if we are not successful in obtaining additional financing as planned , we will be required to reduce or delay spending on our research and development programs and operating expenses in the near term , which could adversely affect our financial condition , our ability to pursue our business strategies , our prospects and the value of our common stock . for a further discussion of our liquidity and funding requirements , see โ liquidity and capital resources - funding requirements . โ key drivers we believe that near-term key drivers to our success will include : our ability to successfully plan , finance and complete current and planned clinical trials for our lead proprietary drug candidate , cudc-907 , as well as for such clinical trials to generate favorable data ; our ability to successfully advance ca-170 , and for us to finance and complete the current and planned clinical trials of this drug candidate ; 71 our and aurigene 's ability to complete preclinical development and ind-enabling studies for ca-4948 and ca-327 , and for us to then finance and complete planned phase 1 clinical trials for each of these development candidates ; aurigene 's ability to advance additional preclinical immuno-oncology , and precision oncology drug candidates , and our ability to license these programs from aurigene and further progress them clinically ; genentech and roche 's ability to successfully commercialize erivedge in advanced bcc in the united states and in other global territories ; and genentech and roche 's initiation and completion of additional clinical studies of erivedge , including in diseases other than bcc , such as ipf or mf . in the longer term , a key driver to our success will be our ability , and the ability of any current or future collaborator or licensee , to successfully develop and commercialize additional drug candidates . financial operations overview general . our future operating results will largely depend on the progress of drug candidates currently in our research and development pipeline . the results of our operations will vary significantly from year to year and quarter to quarter and depend on , among other factors , the cost and outcome of any preclinical development or clinical trials then being conducted . for a discussion of our liquidity and funding requirements , see โ - liquidity and capital resources - funding requirements . โ debt . in december 2012 , our wholly-owned subsidiary , curis royalty , entered into a $ 30 million debt transaction with biopharma-ii , at an annual interest rate of 12.25 % collateralized with certain future erivedge royalty
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2,506 | net loan recoveries of $ 61,000 in 2018 allowed choiceone to take a minimal provision for loan losses , compared to net charge-offs of $ 185,000 in 2017 which necessitated a provision expense of $ 485,000. a decline in noninterest income of $ 891,000 in 2018 compared to 2017 was primarily due to a nonrecurring gain of $ 908,000 on the sale of a portion of choiceone 's investment book of business that occurred in the fourth quarter of 2017. the increase of $ 1,127,000 in noninterest expense in 2018 compared to the prior year was primarily caused by higher salaries and benefits expense and other noninterest expense . dividends cash dividends of $ 5,806,000 or $ 1.40 per common share were declared in 2019 , compared to $ 2,572,000 or $ 0.71 per common share in 2018 and $ 2,317,000 or $ 0.64 per common share in 2017. dividends in 2019 included a special dividend of $ 0.60 per share paid on september 30 , 2019 in connection with the merger with county . the dividend yield on choiceone 's common stock was 4.38 % as of the end of 2019 , compared to 2.84 % in 2018 , and 2.86 % in 2017. the cash dividend payout as a percentage of net income was 81 % in 2019 , compared to 35 % in 2018 and 38 % in 2017. in addition , a 5 % stock dividend was paid on may 31 , 2018 , which caused $ 4,335,000 to be transferred from retained earnings to paid-in capital . a 5 % stock dividend was also paid on may 31 , 2017 and produced a transfer of $ 3,779,000 from retained earnings to paid-in capital . page | 23 table 1 โ average balances and tax-equivalent interest rates replace_table_token_21_th ( 1 ) interest on nontaxable securities and loans has been adjusted to a fully tax-equivalent basis to facilitate comparison to the taxable interest-earning assets . the adjustment uses an incremental tax rate of 21 % for 2019 and 2018 and 34 % for 2017 . ( 2 ) interest on loans included net origination fees charged on loans of approximately $ 866,000 , $ 1,087,000 , and $ 1,003,000 in 2019 , 2018 , and 2017 , respectively . ( 3 ) interest on taxable securities includes dividends on federal home loan bank and federal reserve bank stock . ( 4 ) noninterest-earning assets include loans in nonaccrual status , which averaged approximately $ 2,965,000 , $ 1,266,000 , and $ 1,486,000 in 2019 , 2018 , and 2017 , respectively . page | 24 table 2 โ changes in tax-equivalent net interest income replace_table_token_22_th ( 1 ) the volume variance is computed as the change in volume ( average balance ) multiplied by the previous year 's interest rate . the rate variance is computed as the change in interest rate multiplied by the previous year 's volume ( average balance ) . the change in interest due to both volume and rate has been allocated to the volume and rate changes in proportion to the relationship of the absolute dollar amounts of the change in each . ( 2 ) interest on tax-exempt securities and loans has been adjusted to a fully tax-equivalent basis using an incremental tax rate of 21 % for 2019 and 2018 , and 34 % for 2017. net interest income the presentation of net interest income on a tax-equivalent basis is not in accordance with generally accepted accounting principles ( โ gaap โ ) , but is customary in the banking industry . this non-gaap measure ensures comparability of net interest income arising from both taxable and tax-exempt loans and investment securities . the adjustments to determine net interest income on a tax-equivalent basis were $ 408,000 , $ 398,000 and $ 548,000 for the years ended 2019 , 2018 and 2017 , respectively . these adjustments were computed using a 21 % federal income tax rate in 2019 and 2018 , and 34 % federal income tax rate in 2017. tax-equivalent net interest income increased $ 5,719,000 in 2019 compared to 2018. the increase was attributed to an increase of $ 177.7 million in average interest-earning assets , partially offset by the impact of a decline of 21 basis points in choiceone 's net interest spread . the reduction in the net interest spread resulted from an increase of 26 basis points in the average rate paid on interest-bearing liabilities , while the average rate earned on interest-earning assets increased 5 basis points . the average balance of loans increased $ 130.2 million in 2019 compared to 2018 , $ 105.8 million of which was due to lakestone loans which were included in the fourth quarter of 2019. the remaining growth was primarily from residential real estate loans , whose average balance increased $ 22.6 million in 2019 compared to 2018. in addition to the average balance growth , the average rate earned on loans increased 6 basis points in 2019 compared to 2018 as a result of higher general market interest rates and higher rates charged on new loan originations . tax-equivalent interest income on loans increased $ 6.8 million in 2019 compared to the prior year . the average balance of total securities grew $ 40.0 million in 2019 compared to the prior year . the inclusion of lakestone securities in the fourth quarter of 2019 caused an average balance increase of $ 45.0 million , while the average balance of choiceone bank securities was $ 5.0 million lower in 2019 than in 2018. the average balance growth and a minimal change in the average rate earned on securities caused interest income from securities to grow $ 1.1 million in 2019 compared to the prior year . story_separator_special_tag the loans are short-term in nature and are designed to provide funding for the time period between the loan origination and its subsequent sale in the secondary market . the balance of the lines of credit held by the banks was $ 51.0 million as of december 31 , 2019 and choiceone bank held $ 20.6 million as of december 31 , 2018. information regarding impaired loans can be found in note 3 to the consolidated financial statements included in this report . in addition to its review of the loan portfolio for impaired loans , management also monitors various nonperforming loans . nonperforming loans are comprised of ( 1 ) loans accounted for on a nonaccrual basis ; ( 2 ) loans , not included in nonaccrual loans , which are contractually past due 90 days or more as to interest or principal payments ; and ( 3 ) loans , not included in nonaccrual or past due 90 days or more , which are considered troubled debt restructurings . troubled debt restructurings consist of loans where the terms have been modified to assist the borrowers in making their payments . the modifications can include capitalization of interest onto the principal balance , reduction in interest rate , and extension of the loan term . the balances of these nonperforming loans as of december 31 were as follows : replace_table_token_27_th nonaccrual loans included $ 379,000 in agricultural loans , $ 776,000 in commercial and industrial loans , $ 16,000 in consumer loans , $ 2,185,000 in commercial real estate loans , and $ 1,331,000 in residential real estate loans as of december 31 , 2019. nonaccrual loans included $ 393,000 in agricultural loans , $ 62,000 in consumer loans , $ 123,000 in commercial real estate loans , and $ 954,000 in residential real estate loans as of december 31 , 2018. the primary reason for the increase in nonaccrual loans in 2019 was the movement of one large commercial relationship into nonaccrual status during the year . loans considered troubled debt restructurings which were not on a nonaccrual basis and were not 90 days or more past due as to principal or interest payments consisted of $ 391,000 in commercial real estate loans and $ 1,335,000 in residential real estate loans at december 31 , 2019 , compared to $ 19,000 in commercial and industrial loans , $ 14,000 in consumer loans , $ 500,000 in commercial real estate loans , and $ 1,721,000 in residential real estate loans at december 31 , 2018. management also maintains a list of loans that are not classified as nonperforming loans but where some concern exists as to the borrowers ' abilities to comply with the original loan terms . these loans totaled $ 14.0 million as of december 31 , 2019 , compared to $ 1.8 million as of december 31 , 2018. page | 30 deposits and other funding sources the company 's deposit balances as of december 31 were as follows : replace_table_token_28_th total deposits increased $ 577.6 million from december 31 , 2018 to december 31 , 2019 , of which $ 573.6 million was obtained from the merger with county . excluding deposits related to lakestone , noninterest-bearing and interest-bearing demand deposits grew a total of $ 11.2 million as the banks ' depositors valued the liquidity available in this deposit category . higher rates paid on local certificates of deposit in 2019 compared to 2018 as a result of rising general market interest rates helped to generate depositor interest in this category and contributed to the $ 18.3 million of growth during 2019 excluding lakestone deposits . brokered certificates of deposit decreased $ 32.1 million in 2019 as organic loan growth was minimal . federal funds purchased declined $ 4.8 million from december 31 , 2018 to december 31 , 2019 as overnight funding was replaced by local deposits growth . federal home loan bank advances increased $ 28.0 million in 2019 as advances were used to meet short term funding needs . choiceone bank 's blanket collateral agreement covering agricultural real estate loans and residential real estate loans and lakestone 's blanket collateral agreement covering commercial real estate loans and residential real estate loans were pledged against each bank 's outstanding advances at the end of 2019. approximately $ 78.6 million of additional advances were available as of december 31 , 2019 based on the collateral pledged by the banks . in 2020 , management will continue to focus its marketing efforts toward growth in local deposits . if local deposit growth is insufficient to support asset growth , management believes that advances from the fhlb and brokered certificates of deposit can address corresponding funding needs . shareholders ' equity total shareholders ' equity increased $ 111.7 million from december 31 , 2018 to december 31 , 2019. the merger with county caused $ 107.9 million of equity to be issued in consideration for county 's stock . the remaining growth in equity resulted from the retention of earnings in 2019 as net income exceeded dividends paid by $ 1.4 million . accumulated other comprehensive income increased by $ 2.2 million in 2019 principally as a result of available for sale securities moving from a net unrealized loss at the end of 2018 to a net unrealized gain as of the end of 2019. equity issuances net of shares repurchased also contributed $ 448,000 to equity during 2019. note 20 to the consolidated financial statements presents regulatory capital information for choiceone and the banks at the end of 2019 and choiceone and choiceone bank at the end of 2018. management will monitor these capital ratios during 2020 as they relate to asset growth and earnings retention . choiceone 's board of directors and management do not plan to allow capital to decrease below those levels necessary to be considered โ well capitalized โ by regulatory guidelines . at december 31 , 2019 , the
| liquidity and interest rate risk net cash from operating activities was $ 9.2 million in 2019 compared to $ 10.0 million in 2018. net cash from investing activities was $ 36.4 million in 2019 compared to $ 43.9 million used in 2018. the increase was caused by higher net proceeds from sales of securities in 2019 compared to 2018 , limited net growth in loans in 2019 outside of lakestone loans added compared to more significant growth in 2018 , and cash received as a result of the merger with county . net cash flows from financing activities were a negative $ 5.7 million in 2019 compared to a positive $ 16.8 million in 2018. the change was caused by less growth in deposits in 2019 outside of lakestone deposits than the prior year and a decline in the balance of federal funds purchased in 2019 in contrast with an increase in 2018. this was partially offset by net proceeds from federal home loan bank advances in 2019 compared to net paydowns in 2018. choiceone 's primary market risk exposure occurs in the form of interest rate risk . liquidity risk also can have an impact but to a lesser extent . choiceone 's business is transacted in u.s. dollars with no foreign exchange risk exposure . agricultural loans comprise a relatively small portion of choiceone 's total assets . management believes that choiceone 's exposure to changes in commodity prices is insignificant . management believes that the current level of liquidity is sufficient to meet the banks ' normal operating needs . this belief is based upon the availability of deposits from both the local and national markets , maturities of securities , normal loan repayments , income retention , federal funds purchased lines of credit from correspondent banks , and advances available from the fhlb .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and interest rate risk net cash from operating activities was $ 9.2 million in 2019 compared to $ 10.0 million in 2018. net cash from investing activities was $ 36.4 million in 2019 compared to $ 43.9 million used in 2018. the increase was caused by higher net proceeds from sales of securities in 2019 compared to 2018 , limited net growth in loans in 2019 outside of lakestone loans added compared to more significant growth in 2018 , and cash received as a result of the merger with county . net cash flows from financing activities were a negative $ 5.7 million in 2019 compared to a positive $ 16.8 million in 2018. the change was caused by less growth in deposits in 2019 outside of lakestone deposits than the prior year and a decline in the balance of federal funds purchased in 2019 in contrast with an increase in 2018. this was partially offset by net proceeds from federal home loan bank advances in 2019 compared to net paydowns in 2018. choiceone 's primary market risk exposure occurs in the form of interest rate risk . liquidity risk also can have an impact but to a lesser extent . choiceone 's business is transacted in u.s. dollars with no foreign exchange risk exposure . agricultural loans comprise a relatively small portion of choiceone 's total assets . management believes that choiceone 's exposure to changes in commodity prices is insignificant . management believes that the current level of liquidity is sufficient to meet the banks ' normal operating needs . this belief is based upon the availability of deposits from both the local and national markets , maturities of securities , normal loan repayments , income retention , federal funds purchased lines of credit from correspondent banks , and advances available from the fhlb .
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Suspicious Activity Report : net loan recoveries of $ 61,000 in 2018 allowed choiceone to take a minimal provision for loan losses , compared to net charge-offs of $ 185,000 in 2017 which necessitated a provision expense of $ 485,000. a decline in noninterest income of $ 891,000 in 2018 compared to 2017 was primarily due to a nonrecurring gain of $ 908,000 on the sale of a portion of choiceone 's investment book of business that occurred in the fourth quarter of 2017. the increase of $ 1,127,000 in noninterest expense in 2018 compared to the prior year was primarily caused by higher salaries and benefits expense and other noninterest expense . dividends cash dividends of $ 5,806,000 or $ 1.40 per common share were declared in 2019 , compared to $ 2,572,000 or $ 0.71 per common share in 2018 and $ 2,317,000 or $ 0.64 per common share in 2017. dividends in 2019 included a special dividend of $ 0.60 per share paid on september 30 , 2019 in connection with the merger with county . the dividend yield on choiceone 's common stock was 4.38 % as of the end of 2019 , compared to 2.84 % in 2018 , and 2.86 % in 2017. the cash dividend payout as a percentage of net income was 81 % in 2019 , compared to 35 % in 2018 and 38 % in 2017. in addition , a 5 % stock dividend was paid on may 31 , 2018 , which caused $ 4,335,000 to be transferred from retained earnings to paid-in capital . a 5 % stock dividend was also paid on may 31 , 2017 and produced a transfer of $ 3,779,000 from retained earnings to paid-in capital . page | 23 table 1 โ average balances and tax-equivalent interest rates replace_table_token_21_th ( 1 ) interest on nontaxable securities and loans has been adjusted to a fully tax-equivalent basis to facilitate comparison to the taxable interest-earning assets . the adjustment uses an incremental tax rate of 21 % for 2019 and 2018 and 34 % for 2017 . ( 2 ) interest on loans included net origination fees charged on loans of approximately $ 866,000 , $ 1,087,000 , and $ 1,003,000 in 2019 , 2018 , and 2017 , respectively . ( 3 ) interest on taxable securities includes dividends on federal home loan bank and federal reserve bank stock . ( 4 ) noninterest-earning assets include loans in nonaccrual status , which averaged approximately $ 2,965,000 , $ 1,266,000 , and $ 1,486,000 in 2019 , 2018 , and 2017 , respectively . page | 24 table 2 โ changes in tax-equivalent net interest income replace_table_token_22_th ( 1 ) the volume variance is computed as the change in volume ( average balance ) multiplied by the previous year 's interest rate . the rate variance is computed as the change in interest rate multiplied by the previous year 's volume ( average balance ) . the change in interest due to both volume and rate has been allocated to the volume and rate changes in proportion to the relationship of the absolute dollar amounts of the change in each . ( 2 ) interest on tax-exempt securities and loans has been adjusted to a fully tax-equivalent basis using an incremental tax rate of 21 % for 2019 and 2018 , and 34 % for 2017. net interest income the presentation of net interest income on a tax-equivalent basis is not in accordance with generally accepted accounting principles ( โ gaap โ ) , but is customary in the banking industry . this non-gaap measure ensures comparability of net interest income arising from both taxable and tax-exempt loans and investment securities . the adjustments to determine net interest income on a tax-equivalent basis were $ 408,000 , $ 398,000 and $ 548,000 for the years ended 2019 , 2018 and 2017 , respectively . these adjustments were computed using a 21 % federal income tax rate in 2019 and 2018 , and 34 % federal income tax rate in 2017. tax-equivalent net interest income increased $ 5,719,000 in 2019 compared to 2018. the increase was attributed to an increase of $ 177.7 million in average interest-earning assets , partially offset by the impact of a decline of 21 basis points in choiceone 's net interest spread . the reduction in the net interest spread resulted from an increase of 26 basis points in the average rate paid on interest-bearing liabilities , while the average rate earned on interest-earning assets increased 5 basis points . the average balance of loans increased $ 130.2 million in 2019 compared to 2018 , $ 105.8 million of which was due to lakestone loans which were included in the fourth quarter of 2019. the remaining growth was primarily from residential real estate loans , whose average balance increased $ 22.6 million in 2019 compared to 2018. in addition to the average balance growth , the average rate earned on loans increased 6 basis points in 2019 compared to 2018 as a result of higher general market interest rates and higher rates charged on new loan originations . tax-equivalent interest income on loans increased $ 6.8 million in 2019 compared to the prior year . the average balance of total securities grew $ 40.0 million in 2019 compared to the prior year . the inclusion of lakestone securities in the fourth quarter of 2019 caused an average balance increase of $ 45.0 million , while the average balance of choiceone bank securities was $ 5.0 million lower in 2019 than in 2018. the average balance growth and a minimal change in the average rate earned on securities caused interest income from securities to grow $ 1.1 million in 2019 compared to the prior year . story_separator_special_tag the loans are short-term in nature and are designed to provide funding for the time period between the loan origination and its subsequent sale in the secondary market . the balance of the lines of credit held by the banks was $ 51.0 million as of december 31 , 2019 and choiceone bank held $ 20.6 million as of december 31 , 2018. information regarding impaired loans can be found in note 3 to the consolidated financial statements included in this report . in addition to its review of the loan portfolio for impaired loans , management also monitors various nonperforming loans . nonperforming loans are comprised of ( 1 ) loans accounted for on a nonaccrual basis ; ( 2 ) loans , not included in nonaccrual loans , which are contractually past due 90 days or more as to interest or principal payments ; and ( 3 ) loans , not included in nonaccrual or past due 90 days or more , which are considered troubled debt restructurings . troubled debt restructurings consist of loans where the terms have been modified to assist the borrowers in making their payments . the modifications can include capitalization of interest onto the principal balance , reduction in interest rate , and extension of the loan term . the balances of these nonperforming loans as of december 31 were as follows : replace_table_token_27_th nonaccrual loans included $ 379,000 in agricultural loans , $ 776,000 in commercial and industrial loans , $ 16,000 in consumer loans , $ 2,185,000 in commercial real estate loans , and $ 1,331,000 in residential real estate loans as of december 31 , 2019. nonaccrual loans included $ 393,000 in agricultural loans , $ 62,000 in consumer loans , $ 123,000 in commercial real estate loans , and $ 954,000 in residential real estate loans as of december 31 , 2018. the primary reason for the increase in nonaccrual loans in 2019 was the movement of one large commercial relationship into nonaccrual status during the year . loans considered troubled debt restructurings which were not on a nonaccrual basis and were not 90 days or more past due as to principal or interest payments consisted of $ 391,000 in commercial real estate loans and $ 1,335,000 in residential real estate loans at december 31 , 2019 , compared to $ 19,000 in commercial and industrial loans , $ 14,000 in consumer loans , $ 500,000 in commercial real estate loans , and $ 1,721,000 in residential real estate loans at december 31 , 2018. management also maintains a list of loans that are not classified as nonperforming loans but where some concern exists as to the borrowers ' abilities to comply with the original loan terms . these loans totaled $ 14.0 million as of december 31 , 2019 , compared to $ 1.8 million as of december 31 , 2018. page | 30 deposits and other funding sources the company 's deposit balances as of december 31 were as follows : replace_table_token_28_th total deposits increased $ 577.6 million from december 31 , 2018 to december 31 , 2019 , of which $ 573.6 million was obtained from the merger with county . excluding deposits related to lakestone , noninterest-bearing and interest-bearing demand deposits grew a total of $ 11.2 million as the banks ' depositors valued the liquidity available in this deposit category . higher rates paid on local certificates of deposit in 2019 compared to 2018 as a result of rising general market interest rates helped to generate depositor interest in this category and contributed to the $ 18.3 million of growth during 2019 excluding lakestone deposits . brokered certificates of deposit decreased $ 32.1 million in 2019 as organic loan growth was minimal . federal funds purchased declined $ 4.8 million from december 31 , 2018 to december 31 , 2019 as overnight funding was replaced by local deposits growth . federal home loan bank advances increased $ 28.0 million in 2019 as advances were used to meet short term funding needs . choiceone bank 's blanket collateral agreement covering agricultural real estate loans and residential real estate loans and lakestone 's blanket collateral agreement covering commercial real estate loans and residential real estate loans were pledged against each bank 's outstanding advances at the end of 2019. approximately $ 78.6 million of additional advances were available as of december 31 , 2019 based on the collateral pledged by the banks . in 2020 , management will continue to focus its marketing efforts toward growth in local deposits . if local deposit growth is insufficient to support asset growth , management believes that advances from the fhlb and brokered certificates of deposit can address corresponding funding needs . shareholders ' equity total shareholders ' equity increased $ 111.7 million from december 31 , 2018 to december 31 , 2019. the merger with county caused $ 107.9 million of equity to be issued in consideration for county 's stock . the remaining growth in equity resulted from the retention of earnings in 2019 as net income exceeded dividends paid by $ 1.4 million . accumulated other comprehensive income increased by $ 2.2 million in 2019 principally as a result of available for sale securities moving from a net unrealized loss at the end of 2018 to a net unrealized gain as of the end of 2019. equity issuances net of shares repurchased also contributed $ 448,000 to equity during 2019. note 20 to the consolidated financial statements presents regulatory capital information for choiceone and the banks at the end of 2019 and choiceone and choiceone bank at the end of 2018. management will monitor these capital ratios during 2020 as they relate to asset growth and earnings retention . choiceone 's board of directors and management do not plan to allow capital to decrease below those levels necessary to be considered โ well capitalized โ by regulatory guidelines . at december 31 , 2019 , the
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2,507 | the addition of our princeton rail loop , expected to come online in the spring of 2018 , will also provide us new access to coal markets served by the norfolk southern railway company . for 2017 , over 67 % of our coal sales were to customers with large scrubbed coal-fired power plants in the state of indiana . our mines and coal reserves are strategically located in close proximity to our primary customers , which reduces transportation costs and thus provides us with a competitive advantage with respect to those customers ; our closest customer 's plant is 13 miles away , and the farthest indiana customer is 80 miles away . we have access to our primary customers directly through either the csx railroad ( nyse : csx ) or the indiana rail road which is majority owned by the csx . beginning in q2 2018 , our new princeton loop will be operational and allow us to access the ns railroad ( nyse : ns ) , increasing our coal markets . the majority of our coal is sold to investment grade customers who have scrubbed power plants ; thus , we expect to be supplying these plants for many years . president trump promotes coal below is a timeline of some of the milestones accomplished for the coal industry thus far under the trump administration : november 8 , 2016 donald trump was elected president of the united states of america . his administration has dramatically improved the regulatory environment in which we operate . january 20 , 2017 donald trump was inaugurated as the 45 th president of the united states . february 15 , 2017 both the u.s. house of representatives and the senate passed resolutions disapproving the stream protection rule ( spr ) under the congressional review act ( cra ) . president trump signed the resolution on february 16 , 2017 , and , pursuant to the cra , the spr `` shall have no force or effect `` and the office of surface mining ( osm ) can not promulgate a substantially similar rule absent future legislation . 30 currently , the federal surface mining control and reclamation act of 1977 ( smcra ) is implemented by each state 's respective state agency , which is the department of reclamation in indiana . the spr would have mandated additional approvals from federal agencies , such as u.s. fish and wildlife . the rule would have also imposed additional baseline data collection , surface/groundwater monitoring , financial assurance requirements and numerous other requirements . february 17 , 2017 scott pruitt was confirmed as administrator of the environmental protection agency ( epa ) . as former attorney general of the state of oklahoma , he joined a coalition of state attorney generals in suing the epa concerning the clean power plan , the principal obama-era policy aimed at reducing u.s. greenhouse gas emissions from the electricity sector . february 28 , 2017 president trump signed an executive order regarding the โ waters of the us โ ( wotus ) rule . the order requires the epa and the army corps of engineers to review the wotus rule and publish a proposed rule that rescinds or revises the rule as appropriate and consistent with law , keeps the nation 's navigable waters free from pollution , promotes economic growth , minimizes regulatory uncertainty , and shows due regard for the roles of the congress and the states under the constitution . in president trump 's first full official speech to a joint session of congress , he stated : โ we 're going to stop the regulations that threaten the future and livelihood of our great coal miners . โ march 28 , 2017 president trump signed an executive order to dismantle many of the climate change policies enacted during the obama era . the order takes steps to downplay the future costs of carbon emissions , walks back tracking of the federal government 's carbon emissions , rescinds a 2016 moratorium on coal leases on federal lands . it also begins the process of rescinding the epa 's clean power plan to reduce carbon dioxide emissions from new and existing power plants . april 13 , 2017 the epa said it would review and reconsider the effluent limitations guidelines ( elg ) rule which targets coal combustion generators ' ash transport wastewater , and wastewater discharges from flue-gas desulfurization and mercury control systems and would require power plants to install new treatment technologies . the rule has been challenged in court by a coalition of utilities . the epa has issued an administrative stay to delay the compliance deadlines for the elg rule as long as litigation is ongoing . june 1 , 2017 president trump announced that the u.s. would pull out of the paris agreement steering away from a group of 194 other countries that have promised to curb planet-warming greenhouse gas emissions . october 10 , 2017 epa administrator scott pruitt announced that the epa would seek to repeal the clean power plan in its entirety . january 25 , 2018 the trump administration eliminated a policy dictating how certain major sources of hazardous air pollutants are regulated . the repeal of the agency 's โ once in , always in โ policy . under the new interpretation of the policy , โ major sources โ can be reclassed as โ area sources , โ which are subject to different standards when their emissions reach an enforceable limit . these actions are encouraging and will be important to us and the u.s. energy sector . story_separator_special_tag the carlisle mine is completely developed but was idle for the entirety of 2017. ace in the hole mine ( ace ) ( surface ) โ assigned the ace mine is near clay city , indiana in clay county and 42 road miles northeast of the carlisle mine . we control .9 million tons of proven coal reserves of which we own .5 million tons in fee . the two primary seams are low sulfur coal ( ~2 # so 2 ) , which make up .8 million of the .9 million tons controlled . mine development began in late december 2012 , and we began shipping coal in late august 2013. we truck low sulfur coal from ace to oaktown to blend with high sulfur coal . many utilities in the southeastern u.s. have scrubbers with lower sulfur limits ( 4.5 # so 2 ) which can not accept the higher sulfur contents of the ilb ( 4.5 # - 6.5 # so 2 ) . blending high sulfur coal to a lower sulfur specification enables us to market our high sulfur coals to more customers . we expect the maximum capacity of ace to be 0.4 tons annually . the ace mine is a multi-seam open pit strip mine . the majority of the seams are sold raw , but some of the seams will be washed prior to sales depending on quality . to convert the tons sold raw , the in-place tonnage is multiplied by a pit recovery of 94 % based on seam thickness . to convert the tons sold washed , the in-place tonnage is multiplied by a pit recovery based on seam thickness then reduced by the projected wash plant recovery of 72 % . bulldog reserves ( underground ) โ unassigned we have leased roughly 19,300 acres in vermilion county , illinois near the village of allerton . based on our reserve estimates we currently control 35.8 million tons of coal . a considerable amount of our leased acres has yet to receive any exploratory drilling . in october 2017 , we entered into an agreement to sell land associated with the bulldog mine for $ 4.9 million . as part of the transaction , we will hold the rights to repurchase the property for eight years . also in october 2017 , the illinois department of natural resources ( ildnr ) notified us that our mine application , along with modifications , was acceptable . the permit will be issued upon submittal of a fee and bond which is required to be submitted within 12 months of the notification . full-scale mine development will not commence until we have a sales commitment . we estimate the costs to develop this mine to be $ 150 million at full capacity of 3.0 million tons annually . unassigned reserves represent coal reserves that would require new mineshafts , mining equipment , and plant facilities before operations could begin on the property . the primary reason for this distinction is to inform investors which coal reserves will require substantial capital expenditures before production can begin . 33 below is a map that shows the locations of our mines . railroad legend : csx โ csx railroad inrd โ indiana rail road isrr โ indiana southern railroad ns โ norfolk southern railway mine and wash plant recovery and capacity replace_table_token_5_th * does not include out-of-seam material extracted during the mining process . * * oaktown 1 and oaktown 2 share the wash plant . story_separator_special_tag the tax cuts and jobs act ( tax act ) . the tax act reduces the corporate tax rate to 21 percent , effective january 1 , 2018. because asc 740-10-25-47 requires the effect of a change in tax laws or rates to be recognized as of the date of enactment , we are required to adjust deferred tax assets and liabilities as of december 22 , 2017. accordingly , we have recorded a deferred income tax benefit of $ 16.4 million for the year ended december 31 , 2017. our effective tax rate ( etr ) for 2017 was ( 138 ) % compared to ( 48 ) % for 2016 and 27 % for 2015. the negative etr in 2017 is due primarily to the effects of the tax act adjustment to our deferred taxes and prior year tax return reconciliation which were all recorded discretely for the year ended december 31 , 2017. the negative etr in 2016 is due to the combination of the reduction in book income before taxes because of the asset impairment expense , permanent tax benefits of statutory depletion in excess of tax basis in the mining properties , the captive insurance company effects , and stock based compensation expense . the tax rate for the years ended december 31 , 2017 and 2016 are not predictive of future tax rates due to the deferred income tax benefit of the tax act . the tax rate would have been 9 % without the effects of the deferred income tax benefit of the tax act and the prior year tax return reconciliation . historically , our actual effective tax rates have been lower than the statutory effective rate primarily due to the benefit received from statutory depletion allowances . the deduction for statutory depletion does not necessarily change proportionately to changes in income before income taxes . critical accounting estimates we believe that the estimates of our coal reserves , our business acquisitions , our interest rate swaps , our deferred tax accounts , and the estimates used in our impairment analysis are our only critical accounting estimates . the reserve estimates are used in the dd & a calculation and in our internal cash flow projections . if these estimates turn out to be materially under or over-stated , our dd & a expense and impairment test may be affected . we account for business combinations using the purchase method of accounting
| liquidity and capital resources replace_table_token_6_th 34 as set forth in our statement of cash flows , cash provided by operations was $ 62 million for 2017. this amount was adequate to fund our maintenance capital expenditures for coal properties of $ 11.1 million , our debt service requirements of $ 36.6 million , and our dividend of $ 4.9 million . our capex budget for 2018 is $ 31 million , of which $ 16 million is for maintenance capex . cash from operations for 2018 should again fund our maintenance capital expenditures , debt service , and our dividend . see note 3 to our consolidated financial statements for discussion about our bank debt . other than our surety bonds for reclamation , we have no material off-balance sheet arrangements . included in the contractual obligations table are reclamation obligations of $ 13.8 million , which are presented as asset retirement obligations ( aro ) in our accompanying balance sheets . in the event we are not able to perform reclamation , we have surety bonds totaling $ 25 million to cover aro . capital expenditures ( capex ) for 2017 , our capex was $ 28.6 million allocated as follows ( in millions ) : oaktown โ investment $ 10.1 oaktown โ maintenance capex 11.1 princeton rail loop 6.3 other projects 1.1 capex per the consolidated statement of cash flows $ 28.6 35 results of operations the following table presenting our quarterly results of operations should be read in conjunction with the consolidated financial statements and related notes included in item 8 of their annual report on form 10-k. we have prepared the unaudited information on the same basis as our audited consolidated financial statements . our operating results for any quarter are not necessarily indicative of results for any future quarters or for a full year . the following table presents our unaudited quarterly results of operations for the eight quarters ended december 31 , 2017. this table includes all adjustments , consisting only of normal recurring adjustments , that we consider necessary for fair presentation of our consolidated operating results for the quarters presented .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources replace_table_token_6_th 34 as set forth in our statement of cash flows , cash provided by operations was $ 62 million for 2017. this amount was adequate to fund our maintenance capital expenditures for coal properties of $ 11.1 million , our debt service requirements of $ 36.6 million , and our dividend of $ 4.9 million . our capex budget for 2018 is $ 31 million , of which $ 16 million is for maintenance capex . cash from operations for 2018 should again fund our maintenance capital expenditures , debt service , and our dividend . see note 3 to our consolidated financial statements for discussion about our bank debt . other than our surety bonds for reclamation , we have no material off-balance sheet arrangements . included in the contractual obligations table are reclamation obligations of $ 13.8 million , which are presented as asset retirement obligations ( aro ) in our accompanying balance sheets . in the event we are not able to perform reclamation , we have surety bonds totaling $ 25 million to cover aro . capital expenditures ( capex ) for 2017 , our capex was $ 28.6 million allocated as follows ( in millions ) : oaktown โ investment $ 10.1 oaktown โ maintenance capex 11.1 princeton rail loop 6.3 other projects 1.1 capex per the consolidated statement of cash flows $ 28.6 35 results of operations the following table presenting our quarterly results of operations should be read in conjunction with the consolidated financial statements and related notes included in item 8 of their annual report on form 10-k. we have prepared the unaudited information on the same basis as our audited consolidated financial statements . our operating results for any quarter are not necessarily indicative of results for any future quarters or for a full year . the following table presents our unaudited quarterly results of operations for the eight quarters ended december 31 , 2017. this table includes all adjustments , consisting only of normal recurring adjustments , that we consider necessary for fair presentation of our consolidated operating results for the quarters presented .
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Suspicious Activity Report : the addition of our princeton rail loop , expected to come online in the spring of 2018 , will also provide us new access to coal markets served by the norfolk southern railway company . for 2017 , over 67 % of our coal sales were to customers with large scrubbed coal-fired power plants in the state of indiana . our mines and coal reserves are strategically located in close proximity to our primary customers , which reduces transportation costs and thus provides us with a competitive advantage with respect to those customers ; our closest customer 's plant is 13 miles away , and the farthest indiana customer is 80 miles away . we have access to our primary customers directly through either the csx railroad ( nyse : csx ) or the indiana rail road which is majority owned by the csx . beginning in q2 2018 , our new princeton loop will be operational and allow us to access the ns railroad ( nyse : ns ) , increasing our coal markets . the majority of our coal is sold to investment grade customers who have scrubbed power plants ; thus , we expect to be supplying these plants for many years . president trump promotes coal below is a timeline of some of the milestones accomplished for the coal industry thus far under the trump administration : november 8 , 2016 donald trump was elected president of the united states of america . his administration has dramatically improved the regulatory environment in which we operate . january 20 , 2017 donald trump was inaugurated as the 45 th president of the united states . february 15 , 2017 both the u.s. house of representatives and the senate passed resolutions disapproving the stream protection rule ( spr ) under the congressional review act ( cra ) . president trump signed the resolution on february 16 , 2017 , and , pursuant to the cra , the spr `` shall have no force or effect `` and the office of surface mining ( osm ) can not promulgate a substantially similar rule absent future legislation . 30 currently , the federal surface mining control and reclamation act of 1977 ( smcra ) is implemented by each state 's respective state agency , which is the department of reclamation in indiana . the spr would have mandated additional approvals from federal agencies , such as u.s. fish and wildlife . the rule would have also imposed additional baseline data collection , surface/groundwater monitoring , financial assurance requirements and numerous other requirements . february 17 , 2017 scott pruitt was confirmed as administrator of the environmental protection agency ( epa ) . as former attorney general of the state of oklahoma , he joined a coalition of state attorney generals in suing the epa concerning the clean power plan , the principal obama-era policy aimed at reducing u.s. greenhouse gas emissions from the electricity sector . february 28 , 2017 president trump signed an executive order regarding the โ waters of the us โ ( wotus ) rule . the order requires the epa and the army corps of engineers to review the wotus rule and publish a proposed rule that rescinds or revises the rule as appropriate and consistent with law , keeps the nation 's navigable waters free from pollution , promotes economic growth , minimizes regulatory uncertainty , and shows due regard for the roles of the congress and the states under the constitution . in president trump 's first full official speech to a joint session of congress , he stated : โ we 're going to stop the regulations that threaten the future and livelihood of our great coal miners . โ march 28 , 2017 president trump signed an executive order to dismantle many of the climate change policies enacted during the obama era . the order takes steps to downplay the future costs of carbon emissions , walks back tracking of the federal government 's carbon emissions , rescinds a 2016 moratorium on coal leases on federal lands . it also begins the process of rescinding the epa 's clean power plan to reduce carbon dioxide emissions from new and existing power plants . april 13 , 2017 the epa said it would review and reconsider the effluent limitations guidelines ( elg ) rule which targets coal combustion generators ' ash transport wastewater , and wastewater discharges from flue-gas desulfurization and mercury control systems and would require power plants to install new treatment technologies . the rule has been challenged in court by a coalition of utilities . the epa has issued an administrative stay to delay the compliance deadlines for the elg rule as long as litigation is ongoing . june 1 , 2017 president trump announced that the u.s. would pull out of the paris agreement steering away from a group of 194 other countries that have promised to curb planet-warming greenhouse gas emissions . october 10 , 2017 epa administrator scott pruitt announced that the epa would seek to repeal the clean power plan in its entirety . january 25 , 2018 the trump administration eliminated a policy dictating how certain major sources of hazardous air pollutants are regulated . the repeal of the agency 's โ once in , always in โ policy . under the new interpretation of the policy , โ major sources โ can be reclassed as โ area sources , โ which are subject to different standards when their emissions reach an enforceable limit . these actions are encouraging and will be important to us and the u.s. energy sector . story_separator_special_tag the carlisle mine is completely developed but was idle for the entirety of 2017. ace in the hole mine ( ace ) ( surface ) โ assigned the ace mine is near clay city , indiana in clay county and 42 road miles northeast of the carlisle mine . we control .9 million tons of proven coal reserves of which we own .5 million tons in fee . the two primary seams are low sulfur coal ( ~2 # so 2 ) , which make up .8 million of the .9 million tons controlled . mine development began in late december 2012 , and we began shipping coal in late august 2013. we truck low sulfur coal from ace to oaktown to blend with high sulfur coal . many utilities in the southeastern u.s. have scrubbers with lower sulfur limits ( 4.5 # so 2 ) which can not accept the higher sulfur contents of the ilb ( 4.5 # - 6.5 # so 2 ) . blending high sulfur coal to a lower sulfur specification enables us to market our high sulfur coals to more customers . we expect the maximum capacity of ace to be 0.4 tons annually . the ace mine is a multi-seam open pit strip mine . the majority of the seams are sold raw , but some of the seams will be washed prior to sales depending on quality . to convert the tons sold raw , the in-place tonnage is multiplied by a pit recovery of 94 % based on seam thickness . to convert the tons sold washed , the in-place tonnage is multiplied by a pit recovery based on seam thickness then reduced by the projected wash plant recovery of 72 % . bulldog reserves ( underground ) โ unassigned we have leased roughly 19,300 acres in vermilion county , illinois near the village of allerton . based on our reserve estimates we currently control 35.8 million tons of coal . a considerable amount of our leased acres has yet to receive any exploratory drilling . in october 2017 , we entered into an agreement to sell land associated with the bulldog mine for $ 4.9 million . as part of the transaction , we will hold the rights to repurchase the property for eight years . also in october 2017 , the illinois department of natural resources ( ildnr ) notified us that our mine application , along with modifications , was acceptable . the permit will be issued upon submittal of a fee and bond which is required to be submitted within 12 months of the notification . full-scale mine development will not commence until we have a sales commitment . we estimate the costs to develop this mine to be $ 150 million at full capacity of 3.0 million tons annually . unassigned reserves represent coal reserves that would require new mineshafts , mining equipment , and plant facilities before operations could begin on the property . the primary reason for this distinction is to inform investors which coal reserves will require substantial capital expenditures before production can begin . 33 below is a map that shows the locations of our mines . railroad legend : csx โ csx railroad inrd โ indiana rail road isrr โ indiana southern railroad ns โ norfolk southern railway mine and wash plant recovery and capacity replace_table_token_5_th * does not include out-of-seam material extracted during the mining process . * * oaktown 1 and oaktown 2 share the wash plant . story_separator_special_tag the tax cuts and jobs act ( tax act ) . the tax act reduces the corporate tax rate to 21 percent , effective january 1 , 2018. because asc 740-10-25-47 requires the effect of a change in tax laws or rates to be recognized as of the date of enactment , we are required to adjust deferred tax assets and liabilities as of december 22 , 2017. accordingly , we have recorded a deferred income tax benefit of $ 16.4 million for the year ended december 31 , 2017. our effective tax rate ( etr ) for 2017 was ( 138 ) % compared to ( 48 ) % for 2016 and 27 % for 2015. the negative etr in 2017 is due primarily to the effects of the tax act adjustment to our deferred taxes and prior year tax return reconciliation which were all recorded discretely for the year ended december 31 , 2017. the negative etr in 2016 is due to the combination of the reduction in book income before taxes because of the asset impairment expense , permanent tax benefits of statutory depletion in excess of tax basis in the mining properties , the captive insurance company effects , and stock based compensation expense . the tax rate for the years ended december 31 , 2017 and 2016 are not predictive of future tax rates due to the deferred income tax benefit of the tax act . the tax rate would have been 9 % without the effects of the deferred income tax benefit of the tax act and the prior year tax return reconciliation . historically , our actual effective tax rates have been lower than the statutory effective rate primarily due to the benefit received from statutory depletion allowances . the deduction for statutory depletion does not necessarily change proportionately to changes in income before income taxes . critical accounting estimates we believe that the estimates of our coal reserves , our business acquisitions , our interest rate swaps , our deferred tax accounts , and the estimates used in our impairment analysis are our only critical accounting estimates . the reserve estimates are used in the dd & a calculation and in our internal cash flow projections . if these estimates turn out to be materially under or over-stated , our dd & a expense and impairment test may be affected . we account for business combinations using the purchase method of accounting
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2,508 | hybrid cloud computing our overarching cloud strategy contains three key components : ( i ) continue to expand beyond compute virtualization in the private cloud , ( ii ) extend the private cloud into the public cloud and ( iii ) connect and secure endpoints across a range of public clouds . during fiscal 2018 , hybrid cloud computing was comprised of vmware cloud provider program ( โ vcpp โ ) ( previously referred to as vmware vcloud air network ) and vmware cloud services , which enable customers to run , manage , connect and secure their applications across private and public clouds , including amazon web services ( โ aws โ ) , azure , google cloud platform and ibm cloud . during fiscal 2018 , revenue growth in our hybrid cloud computing offerings was primarily driven by our vcpp offerings . vmware cloud on aws is currently available in certain geographies , and we expect to continue expanding into additional regions in fiscal 2019. during the second quarter of fiscal 2018 , we completed the sale of our vcloud air business ( โ vcloud air โ ) to ovh us llc ( โ ovh โ ) . end-user computing our euc solution consists of vmware workspace one ( โ workspace one โ ) , our digital workspace platform , which includes vmware airwatch ( โ airwatch โ ) and vmware horizon . our airwatch business model includes an on-premises solution that we offer through the sale of perpetual licenses and an off-premises solution that we offer as software-as-a-service ( โ saas โ ) . workspace one continued to be our primary growth driver within our euc product group during fiscal 2018 . 37 dell synergies during fiscal 2018 , we continued joint marketing , sales , branding and product development efforts with dell technologies inc. ( โ dell โ ) and other dell technologies companies to enhance the collective value we deliver to our mutual customers . as a result of our collective business built with dell , we have experienced significant synergies benefiting our sales during fiscal 2018. change in fiscal year end as a result of the change to our fiscal year from a fiscal year ending on december 31 of each calendar year to a fiscal year ending on the friday nearest to january 31 of each year , the period that began on january 1 , 2017 and ended on february 3 , 2017 was a transition period ( the โ transition period โ ) . our first full fiscal year 2018 is a 52-week year that began on february 4 , 2017 and ended on february 2 , 2018. prior-period financial statements have not been recast as we believe ( i ) the year ended december 31 , 2016 is comparable to the year ended february 2 , 2018 and ( ii ) recasting prior-period results was not practicable or cost justified . we have included audited consolidated financial statements for the transition period in part ii , item 8 of this annual report on form 10-k. results of operations approximately 70 % of our sales are denominated in the united states ( โ u.s. โ ) dollar , however , in certain countries we also invoice and collect in the following currencies : euro ; british pound ; japanese yen ; australian dollar ; and chinese renminbi . in addition , we incur and pay operating expenses in currencies other than the u.s. dollar . as a result , our financial statements , including our revenue , operating expenses , unearned revenue and the resulting cash flows derived from the u.s. dollar equivalent of foreign currency transactions , are affected by foreign exchange fluctuations . revenue our revenue during the periods presented was as follows ( dollars in millions ) : replace_table_token_6_th revenue from our hybrid cloud computing offerings consisted primarily of vcpp , and revenue from our saas offerings consisted primarily of our airwatch mobile solution within workspace one . vcpp revenue is included in license revenue and saas revenue is included in both license and services revenue . hybrid cloud computing , together with our saas offerings , accounted for approximately 8 % of our total revenue during fiscal years 2018 and 2016. license revenue relating to the sale of perpetual licenses that are part of a multi-year arrangement is generally recognized upon delivery of the underlying license , whereas revenue derived from our hybrid cloud computing and saas offerings is recognized on a consumption basis or over a period of time . license revenue during fiscal 2018 , license revenue benefited from broad-based growth across our diverse portfolio and solid performance in all geographies . drivers of license revenue growth during fiscal 2018 compared to fiscal 2016 included continued scale and 38 growth of our nsx and vsan offerings . euc growth driven in part by sales of workspace one and continued strength of our vcpp offerings were also key factors contributing to license growth . strength in our renewal business , including eas , also contributed to license revenue growth during fiscal 2018 compared to fiscal 2016 . license revenue growth in fiscal 2016 compared to fiscal 2015 was largely driven by license sales of nsx , vsan and airwatch mobile solutions , as well as growth in our vcpp offering . we experienced stronger than expected sales of our compute products , in part due to strong renewals of our eas , which also contributed to the license revenue growth in fiscal 2016 compared to fiscal 2015 . services revenue during fiscal 2018 and fiscal 2016 , software maintenance revenue benefited from strong renewals of our eas , maintenance contracts sold in previous periods and additional maintenance contracts sold in conjunction with new software license sales . story_separator_special_tag key components of the tax expense relating to the 2017 tax act included provisional estimates for the mandatory one-time transition tax on accumulated earnings of foreign subsidiaries of approximately $ 800 million , and the remeasurement of our deferred tax assets and liabilities of approximately $ 170 million resulting from the reduction in the u.s. statutory corporate tax rate from 35 % to 21 % , effective january 1 , 2018. the reduction in the u.s. statutory corporate tax rate resulted in a blended u.s. statutory corporate tax rate of 34 % during fiscal 2018. our tax expense in fiscal 2018 benefited from the recognition of excess tax benefits of $ 106 million , in connection with our adoption of accounting standards update ( โ asu โ ) no . 2016-09 , compensation-stock compensation ( topic 718 ) during the first quarter of fiscal 2018. previously , the excess tax benefits were recognized in additional paid-in capital on the consolidated balance sheets . our effective income tax rate in fiscal 2016 was higher than in fiscal 2015 primarily as a result of a shift in mix of earnings from our lower tax non-u.s. jurisdictions to the u.s. this impact from the shift in mix of earnings was partially offset by the favorable impact of lower unrecognized tax benefit additions recorded in fiscal 2016 as compared to fiscal 2015. for the periods presented , our rate of taxation in non-u.s. jurisdictions was lower than our u.s. tax rate . our non-u.s. earnings are primarily earned by our subsidiaries organized in ireland , and as such , our annual effective tax rate can be significantly affected by the composition of our earnings in the u.s. and non-u.s. jurisdictions . we are included in dell 's consolidated tax group for u.s. federal income tax purposes and will continue to be included in dell 's consolidated group for periods in which dell beneficially owns at least 80 % of the total voting power and value of our combined outstanding class a and class b common stock as calculated for u.s. federal income tax purposes . the percentage of voting power and value calculated for u.s. federal income tax purposes may differ from the percentage of outstanding shares beneficially owned by dell due to the greater voting power of our class b common stock as compared to our class a common stock and other factors . each member of a consolidated group during any part of a consolidated return year is jointly and severally liable for tax on the consolidated return of such year and for any subsequently determined deficiency thereon . should dell 's ownership fall below 80 % of the total voting power or value of our outstanding stock in any period , then we would no longer be included in the dell consolidated group for u.s. federal income tax purposes , and our u.s. federal income tax would be reported separately from that of the dell consolidated group . 44 although our results are included in the dell consolidated return for u.s. federal income tax purposes , our income tax provision , including provisional estimates of taxes relating to the 2017 tax act , is calculated primarily as though we were a separate taxpayer . however , under certain circumstances , transactions between us and dell are assessed using consolidated tax return rules . our future effective tax rate will benefit significantly from certain provisions of the 2017 tax act , including the reduction in the u.s. statutory corporate tax rate . however , the effect of the global intangible low-taxed income tax and the base erosion tax , as well as changes to our provisional accounting for the effects of the 2017 tax act during the measurement period , on our future effective tax rate is uncertain . our future effective tax rate may also be affected by such factors as changes in tax laws , changes in our business or statutory rates , changing interpretation of existing laws or regulations , the impact of accounting for stock-based compensation and the recognition of excess tax benefits and tax deficiencies within the income tax provision in the period in which they occur , the impact of accounting for business combinations , changes in the composition of earnings in the u.s. compared with other regions in the world and overall levels of income before tax , changes in our international organization , as well as the expiration of statute of limitations and settlements of audits . our relationship with dell as of february 2 , 2018 , dell controlled 31 million shares of class a common stock and all 300 million shares of class b common stock , representing 81.9 % of our total outstanding shares of common stock and 97.6 % of the combined voting power of our outstanding common stock . for a description of related risks , refer to โ risks related to our relationship with dell โ in part i , item 1a of this annual report on form 10-k. the information provided below includes a summary of the transactions entered into with dell and dell 's consolidated subsidiaries , including emc ( collectively , โ dell โ ) from the effective date of the dell acquisition through february 2 , 2018 . transactions prior to the effective date of the dell acquisition reflect transactions only with emc and its consolidated subsidiaries . transactions with dell we engaged with dell in the following ongoing intercompany transactions , which resulted in revenue and receipts and unearned revenue for us : pursuant to oem and reseller arrangements , dell integrates or bundles our products and services with dell 's products and sells them to end users . dell also acts as a distributor , purchasing our standalone products and services for resale to end-user customers through vmware-authorized resellers . revenue under these arrangements is presented net of related marketing development funds and rebates paid to dell . dell purchases products and
| cash provided by operating activities increased $ 830 million in fiscal 2018 compared to fiscal 2016 . cash provided by operating activities benefited from increased cash collections due to increased sales and improved linearity due to the fiscal year change in fiscal 2018 , and a decrease in tax payments as a result of significant tax payments made during fiscal 2016. these positive impacts were partially offset by higher cash outflows related to operating expenses , as well as increased cash payments for employee-related expenses , including salaries , bonuses and commissions , resulting primarily from growth in headcount . 48 cash provided by operating activities of $ 361 million during the transition period primarily reflected cash provided by cash collections , partially offset by cash payments for employee-related expenses . cash provided by operating activities increased $ 482 million in fiscal 2016 compared to fiscal 2015 , driven primarily by increased cash collections due to growth in sales during fiscal 2016. additionally , cash provided by operating activities in fiscal 2015 reflects payments for legal settlements , including $ 76 million for the gsa settlement , and approximately $ 185 million of installment payments made to certain key employees of airwatch , with the final installment payment of $ 29 million paid during the first quarter of fiscal 2016. cash provided by operating activities was partially offset by increases in cash payments for employee-related expenses including salaries , bonuses and commissions due to incremental growth in headcount and salaries .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash provided by operating activities increased $ 830 million in fiscal 2018 compared to fiscal 2016 . cash provided by operating activities benefited from increased cash collections due to increased sales and improved linearity due to the fiscal year change in fiscal 2018 , and a decrease in tax payments as a result of significant tax payments made during fiscal 2016. these positive impacts were partially offset by higher cash outflows related to operating expenses , as well as increased cash payments for employee-related expenses , including salaries , bonuses and commissions , resulting primarily from growth in headcount . 48 cash provided by operating activities of $ 361 million during the transition period primarily reflected cash provided by cash collections , partially offset by cash payments for employee-related expenses . cash provided by operating activities increased $ 482 million in fiscal 2016 compared to fiscal 2015 , driven primarily by increased cash collections due to growth in sales during fiscal 2016. additionally , cash provided by operating activities in fiscal 2015 reflects payments for legal settlements , including $ 76 million for the gsa settlement , and approximately $ 185 million of installment payments made to certain key employees of airwatch , with the final installment payment of $ 29 million paid during the first quarter of fiscal 2016. cash provided by operating activities was partially offset by increases in cash payments for employee-related expenses including salaries , bonuses and commissions due to incremental growth in headcount and salaries .
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Suspicious Activity Report : hybrid cloud computing our overarching cloud strategy contains three key components : ( i ) continue to expand beyond compute virtualization in the private cloud , ( ii ) extend the private cloud into the public cloud and ( iii ) connect and secure endpoints across a range of public clouds . during fiscal 2018 , hybrid cloud computing was comprised of vmware cloud provider program ( โ vcpp โ ) ( previously referred to as vmware vcloud air network ) and vmware cloud services , which enable customers to run , manage , connect and secure their applications across private and public clouds , including amazon web services ( โ aws โ ) , azure , google cloud platform and ibm cloud . during fiscal 2018 , revenue growth in our hybrid cloud computing offerings was primarily driven by our vcpp offerings . vmware cloud on aws is currently available in certain geographies , and we expect to continue expanding into additional regions in fiscal 2019. during the second quarter of fiscal 2018 , we completed the sale of our vcloud air business ( โ vcloud air โ ) to ovh us llc ( โ ovh โ ) . end-user computing our euc solution consists of vmware workspace one ( โ workspace one โ ) , our digital workspace platform , which includes vmware airwatch ( โ airwatch โ ) and vmware horizon . our airwatch business model includes an on-premises solution that we offer through the sale of perpetual licenses and an off-premises solution that we offer as software-as-a-service ( โ saas โ ) . workspace one continued to be our primary growth driver within our euc product group during fiscal 2018 . 37 dell synergies during fiscal 2018 , we continued joint marketing , sales , branding and product development efforts with dell technologies inc. ( โ dell โ ) and other dell technologies companies to enhance the collective value we deliver to our mutual customers . as a result of our collective business built with dell , we have experienced significant synergies benefiting our sales during fiscal 2018. change in fiscal year end as a result of the change to our fiscal year from a fiscal year ending on december 31 of each calendar year to a fiscal year ending on the friday nearest to january 31 of each year , the period that began on january 1 , 2017 and ended on february 3 , 2017 was a transition period ( the โ transition period โ ) . our first full fiscal year 2018 is a 52-week year that began on february 4 , 2017 and ended on february 2 , 2018. prior-period financial statements have not been recast as we believe ( i ) the year ended december 31 , 2016 is comparable to the year ended february 2 , 2018 and ( ii ) recasting prior-period results was not practicable or cost justified . we have included audited consolidated financial statements for the transition period in part ii , item 8 of this annual report on form 10-k. results of operations approximately 70 % of our sales are denominated in the united states ( โ u.s. โ ) dollar , however , in certain countries we also invoice and collect in the following currencies : euro ; british pound ; japanese yen ; australian dollar ; and chinese renminbi . in addition , we incur and pay operating expenses in currencies other than the u.s. dollar . as a result , our financial statements , including our revenue , operating expenses , unearned revenue and the resulting cash flows derived from the u.s. dollar equivalent of foreign currency transactions , are affected by foreign exchange fluctuations . revenue our revenue during the periods presented was as follows ( dollars in millions ) : replace_table_token_6_th revenue from our hybrid cloud computing offerings consisted primarily of vcpp , and revenue from our saas offerings consisted primarily of our airwatch mobile solution within workspace one . vcpp revenue is included in license revenue and saas revenue is included in both license and services revenue . hybrid cloud computing , together with our saas offerings , accounted for approximately 8 % of our total revenue during fiscal years 2018 and 2016. license revenue relating to the sale of perpetual licenses that are part of a multi-year arrangement is generally recognized upon delivery of the underlying license , whereas revenue derived from our hybrid cloud computing and saas offerings is recognized on a consumption basis or over a period of time . license revenue during fiscal 2018 , license revenue benefited from broad-based growth across our diverse portfolio and solid performance in all geographies . drivers of license revenue growth during fiscal 2018 compared to fiscal 2016 included continued scale and 38 growth of our nsx and vsan offerings . euc growth driven in part by sales of workspace one and continued strength of our vcpp offerings were also key factors contributing to license growth . strength in our renewal business , including eas , also contributed to license revenue growth during fiscal 2018 compared to fiscal 2016 . license revenue growth in fiscal 2016 compared to fiscal 2015 was largely driven by license sales of nsx , vsan and airwatch mobile solutions , as well as growth in our vcpp offering . we experienced stronger than expected sales of our compute products , in part due to strong renewals of our eas , which also contributed to the license revenue growth in fiscal 2016 compared to fiscal 2015 . services revenue during fiscal 2018 and fiscal 2016 , software maintenance revenue benefited from strong renewals of our eas , maintenance contracts sold in previous periods and additional maintenance contracts sold in conjunction with new software license sales . story_separator_special_tag key components of the tax expense relating to the 2017 tax act included provisional estimates for the mandatory one-time transition tax on accumulated earnings of foreign subsidiaries of approximately $ 800 million , and the remeasurement of our deferred tax assets and liabilities of approximately $ 170 million resulting from the reduction in the u.s. statutory corporate tax rate from 35 % to 21 % , effective january 1 , 2018. the reduction in the u.s. statutory corporate tax rate resulted in a blended u.s. statutory corporate tax rate of 34 % during fiscal 2018. our tax expense in fiscal 2018 benefited from the recognition of excess tax benefits of $ 106 million , in connection with our adoption of accounting standards update ( โ asu โ ) no . 2016-09 , compensation-stock compensation ( topic 718 ) during the first quarter of fiscal 2018. previously , the excess tax benefits were recognized in additional paid-in capital on the consolidated balance sheets . our effective income tax rate in fiscal 2016 was higher than in fiscal 2015 primarily as a result of a shift in mix of earnings from our lower tax non-u.s. jurisdictions to the u.s. this impact from the shift in mix of earnings was partially offset by the favorable impact of lower unrecognized tax benefit additions recorded in fiscal 2016 as compared to fiscal 2015. for the periods presented , our rate of taxation in non-u.s. jurisdictions was lower than our u.s. tax rate . our non-u.s. earnings are primarily earned by our subsidiaries organized in ireland , and as such , our annual effective tax rate can be significantly affected by the composition of our earnings in the u.s. and non-u.s. jurisdictions . we are included in dell 's consolidated tax group for u.s. federal income tax purposes and will continue to be included in dell 's consolidated group for periods in which dell beneficially owns at least 80 % of the total voting power and value of our combined outstanding class a and class b common stock as calculated for u.s. federal income tax purposes . the percentage of voting power and value calculated for u.s. federal income tax purposes may differ from the percentage of outstanding shares beneficially owned by dell due to the greater voting power of our class b common stock as compared to our class a common stock and other factors . each member of a consolidated group during any part of a consolidated return year is jointly and severally liable for tax on the consolidated return of such year and for any subsequently determined deficiency thereon . should dell 's ownership fall below 80 % of the total voting power or value of our outstanding stock in any period , then we would no longer be included in the dell consolidated group for u.s. federal income tax purposes , and our u.s. federal income tax would be reported separately from that of the dell consolidated group . 44 although our results are included in the dell consolidated return for u.s. federal income tax purposes , our income tax provision , including provisional estimates of taxes relating to the 2017 tax act , is calculated primarily as though we were a separate taxpayer . however , under certain circumstances , transactions between us and dell are assessed using consolidated tax return rules . our future effective tax rate will benefit significantly from certain provisions of the 2017 tax act , including the reduction in the u.s. statutory corporate tax rate . however , the effect of the global intangible low-taxed income tax and the base erosion tax , as well as changes to our provisional accounting for the effects of the 2017 tax act during the measurement period , on our future effective tax rate is uncertain . our future effective tax rate may also be affected by such factors as changes in tax laws , changes in our business or statutory rates , changing interpretation of existing laws or regulations , the impact of accounting for stock-based compensation and the recognition of excess tax benefits and tax deficiencies within the income tax provision in the period in which they occur , the impact of accounting for business combinations , changes in the composition of earnings in the u.s. compared with other regions in the world and overall levels of income before tax , changes in our international organization , as well as the expiration of statute of limitations and settlements of audits . our relationship with dell as of february 2 , 2018 , dell controlled 31 million shares of class a common stock and all 300 million shares of class b common stock , representing 81.9 % of our total outstanding shares of common stock and 97.6 % of the combined voting power of our outstanding common stock . for a description of related risks , refer to โ risks related to our relationship with dell โ in part i , item 1a of this annual report on form 10-k. the information provided below includes a summary of the transactions entered into with dell and dell 's consolidated subsidiaries , including emc ( collectively , โ dell โ ) from the effective date of the dell acquisition through february 2 , 2018 . transactions prior to the effective date of the dell acquisition reflect transactions only with emc and its consolidated subsidiaries . transactions with dell we engaged with dell in the following ongoing intercompany transactions , which resulted in revenue and receipts and unearned revenue for us : pursuant to oem and reseller arrangements , dell integrates or bundles our products and services with dell 's products and sells them to end users . dell also acts as a distributor , purchasing our standalone products and services for resale to end-user customers through vmware-authorized resellers . revenue under these arrangements is presented net of related marketing development funds and rebates paid to dell . dell purchases products and
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2,509 | the establishment of such a valuation allowance , or any increase in an existing valuation allowance , would be effectuated through a charge to the provision for income taxes or a reduction in any income tax credit for the period in which such valuation allowance is established or increased . allowance for loan and lease losses . our alll is established through a provision for loan losses charged to expense and may be reduced by a recapture of previously established loss reserves , which are also reflected in the statement of income . loans are charged against the alll when management believes that collectability of the principal is unlikely . the alll is an amount that management believes will be adequate to absorb estimated losses on existing loans that may become uncollectible based on an evaluation of the collectability of loans and prior loan loss experience . this evaluation also takes into consideration such factors as changes in the nature and volume of the loan portfolio , overall portfolio quality , review of specific problem loans , current economic conditions and certain other subjective factors that may affect the borrower 's ability to pay . while we use the best information available to make this evaluation , future adjustments to our alll may be necessary if there are significant changes in economic or other conditions that can affect the collectability in full of loans in our loan portfolio . 38 adoption of new or revised accounting standards . we have elected to take advantage of the extended transition period afforded by the jobs act , for the implementation of new or revised accounting standards . as a result , we will not be required to comply with new or revised accounting standards that have different effective dates for public and private companies until those standards apply to private companies or we cease to be an ยemerging growthย company as defined in the jobs act . as a result of this election , our financial statements may not be comparable to the financials statements of companies that comply with public company effective dates . we have two business segments , ยbankingย and ยinvestment management , wealth planning and consultingย ( ยwealth managementย ) . banking includes the operations of ffb and ffis and wealth management includes the operations of ffa . the financial position and operating results of the stand-alone holding company , ffi , are included under the caption ยotherย in certain of the tables that follow , along with any consolidation elimination entries . recent developments and overview on april 19 , 2013 , we entered into a term loan note agreement with an unaffiliated bank lender under which we borrowed $ 7.5 million . these borrowings bear interest at a rate equal to ninety day libor plus 4.0 % per annum . the term of the loan is five years . the loan agreement requires us to make monthly payments of principal and interest , the amounts of which are determined on the basis of a 10 year amortization schedule , with a final payment of the unpaid principal balance , in the amount of $ 3.8 million plus accrued but unpaid interest , at the maturity date of the loan in may 2018. we have the right , in our discretion , to prepay the loan at any time in whole or , from time to time , in part , without any penalties or premium . we are required to meet certain financial covenants during the term of the loan . as security for our repayment of the loan , we pledged all of the common stock of ffb to the lender . see ยfinancial conditionยterm loanย below for additional information regarding this loan . we opened a wealth management office in las vegas in the second quarter of 2013 and we moved into our permanent 10,000 square foot leased office in the third quarter of 2013. in the fourth quarter of 2013 , we relocated our irvine wealth management office to a 2,900 square foot leased office in newport beach , california . on august 15 , 2012 , we completed the acquisition of dcb in exchange for the issuance of 815,447 shares of common stock , valued at $ 15.00 per share . as a result of the dcb acquisition , ffb acquired $ 35 million of cash , $ 9 million of securities , $ 90 million of loans , $ 6 million of deferred taxes and other assets , and assumed $ 127 million of deposits along with the operations of dcb . in addition , ffb acquired branches in palm desert and el centro , california . during the first quarter of 2013 , we finished the integration of dcb into our operations . we have continued to grow both our banking and wealth management operations . comparing 2013 to 2012 , we have increased our revenues ( net interest income and noninterest income ) by 25 % . this growth in revenues is the result of the growth in ffb 's total interest-earning assets and in aum in wealth management . during 2013 , total loans and total deposits in banking increased 22 % and 23 % , respectively , while the aum in wealth management increased by $ 366 million or 16 % and totaled $ 2.59 billion as of december 31 , 2013. the growth in aum includes the addition of $ 242 million of net new accounts and $ 237 million of gains realized in client accounts during 2013. the results of operations for banking reflect the benefits of this growth as income before taxes for banking increased $ 2.7 million from $ 10.0 million in 2012 to $ 12.7 million in 2013. because we continue to add new staff and locations as part of our business plan , the increases in our revenues in wealth management were offset by increases in noninterest expenses . story_separator_special_tag million gain on sale of reo in 2011. excluding the $ 3.7 million gain on sale of reo recognized in 2011 , the $ 1.2 million increase in noninterest income in banking for 2012 , as compared to 2011 , was due to increased activity levels in the trust operations of ffb as well as increased fees related to the prepayment of loans . trust aum increased from $ 135 million at the beginning of 2011 to $ 309 million at the end of 2012. loan prepayments totaled $ 116 million in 2012 as compared to $ 61 million in 2011. the following table provides a breakdown of noninterest income for wealth management for the years ended december 31 : replace_table_token_16_th asset management fees increased by 15 % in 2012 as compared to 2011 due to a 21 % increase in the average billable aum which was partially offset by a decrease in the weighted average investment advisory fee rate . at december 31 , 2012 , aum totaled $ 2.23 billion as compared to $ 1.83 billion at december 31 , 2011 and $ 1.56 billion at december 31 , 2010. noninterest expense : the following table provides a breakdown of noninterest expense for banking and wealth management for the years ended december 31 : replace_table_token_17_th the increase in noninterest expense in banking during 2012 as compared to 2011 was due to increases in staffing , increases in noninterest expenses as a result of the dcb acquisition and costs associated with our higher balances of loans and deposits . compensation and benefits increased $ 3.4 million in 2012 as compared to 2011 as the number of fte in banking increased to 87.9 fte during 2012 as compared to 58.6 fte during 2011. the increase in staffing was primarily due to the opening of our new office in west los angeles and increased staffing related to the dcb acquisition . the $ 1.9 million increase in occupancy and depreciation for banking in 2012 as compared to 2011 reflects the facility costs for those branches acquired or opened in 2012 as well as the full year of costs related to the branch and corporate expansions that occurred in 2011. the $ 0.5 million increase in professional services and marketing for banking in 2012 as compared to 2011 was due to costs related to our increased activities , including information technology upgrades and projects and increased management fees paid on trust aum . the $ 0.4 million increase in other expenses in 2012 as compared to 2011 reflects costs related to our continuing growth including fdic insurance premiums and general office costs . 48 the $ 1.9 million increase in noninterest expenses in wealth management during 2012 as compared to 2011 was primarily due to $ 1.6 million of higher compensation and benefits costs resulting from increased staffing associated with opening of our new office in west los angeles and increased incentive compensation related to the growth in aum . staffing for wealth management increased to 44.7 fte in 2012 from 42.0 fte in 2011. financial condition the following table shows the financial position for each of our business segments , and of ffi and elimination entries used to arrive at our consolidated totals which are included in the column labeled other , at december 31 : replace_table_token_18_th our consolidated balance sheet is primarily affected by changes occurring in our banking operations as our wealth management operations do not maintain significant levels of assets . banking has experienced and is expected to continue to experience increases in its total assets as a result of our growth strategy . 49 during 2013 , total assets for the company and ffb increased by $ 207 million . for ffb , during 2013 , loans and deposits increased $ 160.2 million and $ 155.6 million , respectively , cash and cash equivalents decreased by $ 6.2 million , securities afs increased by $ 53.3 million and fhlb advances increased by $ 34.0 million . borrowings at ffi increased by $ 7.1 million during 2013. during 2012 , our consolidated total assets increased by $ 278.9 million primarily due to a $ 278.0 million increase in assets at ffb . as a result of the dcb acquisition , ffb 's total assets and deposits increased $ 139.9 million and $ 126.9 million , respectively , in 2012. excluding the dcb acquisition , loans and deposits at ffb increased $ 129.6 million and $ 116.9 million , respectively during 2012. cash and cash equivalents , certificates of deposit and securities : cash and cash equivalents , which primarily consist of funds held at the federal reserve bank or at correspondent banks , including fed funds , decreased $ 6.2 million during 2013. changes in cash equivalents are primarily affected by the funding of loans , investments in securities , and changes in our sources of funding : deposits , fhlb advances and ffi borrowings . the $ 53.0 million increase in cash and cash equivalents during 2012 includes the $ 34.9 million received in the dcb acquisition . securities available for sale : the following table provides a summary of the company 's afs securities portfolio at december 31 : replace_table_token_19_th the us treasury securities are pledged as collateral to the state of california to meet regulatory requirements related to ffb 's trust operations . the $ 53.3 million increase in afs securities reflected our actions to increase our on-balance sheet sources of liquidity . 50 the scheduled maturities of securities afs , other than agency mortgage backed securities , and the related weighted average yield is as follows as of december 31 , 2013 : replace_table_token_20_th agency mortgage backed securities are excluded from the above table because such securities are not due at a single maturity date . the weighted average yield of the agency mortgage backed securities as of december 31 , 2013 was 2.63 % . loans . the following table sets forth our
| cash flows provided by operating activities . during the year ended december 31 , 2013 operating activities provided net cash of $ 11.2 million , comprised primarily of our net income of $ 7.9 million and $ 4.3 million of non-cash charges , including provisions for loan losses , reo losses , stock based compensation expense and depreciation and amortization , offset by $ 1.3 million non-cash deferred tax benefit recognized in our net income . in 2012 , operating activities provided net cash of $ 8.4 million , comprised primarily of net income of $ 5.8 million and $ 3.3 million of non-cash charges , including provision for loan losses , stock based compensation expense and depreciation and amortization , partially offset by a $ 2.1 million non-cash deferred tax benefit recognized in our net income . cash flows used in investing activities . during the year ended december 31 , 2013 , investing activities used net cash of $ 217.0 million , primarily to fund a $ 160.8 million net increase in loans and a $ 56.1 million net increase in securities afs . in 2012 , investing activities used net cash of $ 86.0 million , primarily to fund a $ 129.9 million net increase in loans , which was partially offset by a $ 10.4 million decrease net decrease in afs securities and fhlb stock and $ 34.9 million of cash acquired in the dcb acquisition . cash flow provided by financing activities . during the year ended december 31 , 2013 , financing activities provided net cash of $ 199.7 million , consisting primarily of a net increase of $ 152.3 million in deposits , a net increase of $ 41.1 million in borrowings and $ 6.3 million received from the sale of shares in a private offering . in 2012 , financing activities provided net cash of $ 130.6 million , consisting primarily of a net increase of $ 116.0 million in deposits , a net increase of $ 9.0 million in borrowings , and $ 5.6 million from the sale of shares in a private offering . ratio of loans to deposits .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows provided by operating activities . during the year ended december 31 , 2013 operating activities provided net cash of $ 11.2 million , comprised primarily of our net income of $ 7.9 million and $ 4.3 million of non-cash charges , including provisions for loan losses , reo losses , stock based compensation expense and depreciation and amortization , offset by $ 1.3 million non-cash deferred tax benefit recognized in our net income . in 2012 , operating activities provided net cash of $ 8.4 million , comprised primarily of net income of $ 5.8 million and $ 3.3 million of non-cash charges , including provision for loan losses , stock based compensation expense and depreciation and amortization , partially offset by a $ 2.1 million non-cash deferred tax benefit recognized in our net income . cash flows used in investing activities . during the year ended december 31 , 2013 , investing activities used net cash of $ 217.0 million , primarily to fund a $ 160.8 million net increase in loans and a $ 56.1 million net increase in securities afs . in 2012 , investing activities used net cash of $ 86.0 million , primarily to fund a $ 129.9 million net increase in loans , which was partially offset by a $ 10.4 million decrease net decrease in afs securities and fhlb stock and $ 34.9 million of cash acquired in the dcb acquisition . cash flow provided by financing activities . during the year ended december 31 , 2013 , financing activities provided net cash of $ 199.7 million , consisting primarily of a net increase of $ 152.3 million in deposits , a net increase of $ 41.1 million in borrowings and $ 6.3 million received from the sale of shares in a private offering . in 2012 , financing activities provided net cash of $ 130.6 million , consisting primarily of a net increase of $ 116.0 million in deposits , a net increase of $ 9.0 million in borrowings , and $ 5.6 million from the sale of shares in a private offering . ratio of loans to deposits .
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Suspicious Activity Report : the establishment of such a valuation allowance , or any increase in an existing valuation allowance , would be effectuated through a charge to the provision for income taxes or a reduction in any income tax credit for the period in which such valuation allowance is established or increased . allowance for loan and lease losses . our alll is established through a provision for loan losses charged to expense and may be reduced by a recapture of previously established loss reserves , which are also reflected in the statement of income . loans are charged against the alll when management believes that collectability of the principal is unlikely . the alll is an amount that management believes will be adequate to absorb estimated losses on existing loans that may become uncollectible based on an evaluation of the collectability of loans and prior loan loss experience . this evaluation also takes into consideration such factors as changes in the nature and volume of the loan portfolio , overall portfolio quality , review of specific problem loans , current economic conditions and certain other subjective factors that may affect the borrower 's ability to pay . while we use the best information available to make this evaluation , future adjustments to our alll may be necessary if there are significant changes in economic or other conditions that can affect the collectability in full of loans in our loan portfolio . 38 adoption of new or revised accounting standards . we have elected to take advantage of the extended transition period afforded by the jobs act , for the implementation of new or revised accounting standards . as a result , we will not be required to comply with new or revised accounting standards that have different effective dates for public and private companies until those standards apply to private companies or we cease to be an ยemerging growthย company as defined in the jobs act . as a result of this election , our financial statements may not be comparable to the financials statements of companies that comply with public company effective dates . we have two business segments , ยbankingย and ยinvestment management , wealth planning and consultingย ( ยwealth managementย ) . banking includes the operations of ffb and ffis and wealth management includes the operations of ffa . the financial position and operating results of the stand-alone holding company , ffi , are included under the caption ยotherย in certain of the tables that follow , along with any consolidation elimination entries . recent developments and overview on april 19 , 2013 , we entered into a term loan note agreement with an unaffiliated bank lender under which we borrowed $ 7.5 million . these borrowings bear interest at a rate equal to ninety day libor plus 4.0 % per annum . the term of the loan is five years . the loan agreement requires us to make monthly payments of principal and interest , the amounts of which are determined on the basis of a 10 year amortization schedule , with a final payment of the unpaid principal balance , in the amount of $ 3.8 million plus accrued but unpaid interest , at the maturity date of the loan in may 2018. we have the right , in our discretion , to prepay the loan at any time in whole or , from time to time , in part , without any penalties or premium . we are required to meet certain financial covenants during the term of the loan . as security for our repayment of the loan , we pledged all of the common stock of ffb to the lender . see ยfinancial conditionยterm loanย below for additional information regarding this loan . we opened a wealth management office in las vegas in the second quarter of 2013 and we moved into our permanent 10,000 square foot leased office in the third quarter of 2013. in the fourth quarter of 2013 , we relocated our irvine wealth management office to a 2,900 square foot leased office in newport beach , california . on august 15 , 2012 , we completed the acquisition of dcb in exchange for the issuance of 815,447 shares of common stock , valued at $ 15.00 per share . as a result of the dcb acquisition , ffb acquired $ 35 million of cash , $ 9 million of securities , $ 90 million of loans , $ 6 million of deferred taxes and other assets , and assumed $ 127 million of deposits along with the operations of dcb . in addition , ffb acquired branches in palm desert and el centro , california . during the first quarter of 2013 , we finished the integration of dcb into our operations . we have continued to grow both our banking and wealth management operations . comparing 2013 to 2012 , we have increased our revenues ( net interest income and noninterest income ) by 25 % . this growth in revenues is the result of the growth in ffb 's total interest-earning assets and in aum in wealth management . during 2013 , total loans and total deposits in banking increased 22 % and 23 % , respectively , while the aum in wealth management increased by $ 366 million or 16 % and totaled $ 2.59 billion as of december 31 , 2013. the growth in aum includes the addition of $ 242 million of net new accounts and $ 237 million of gains realized in client accounts during 2013. the results of operations for banking reflect the benefits of this growth as income before taxes for banking increased $ 2.7 million from $ 10.0 million in 2012 to $ 12.7 million in 2013. because we continue to add new staff and locations as part of our business plan , the increases in our revenues in wealth management were offset by increases in noninterest expenses . story_separator_special_tag million gain on sale of reo in 2011. excluding the $ 3.7 million gain on sale of reo recognized in 2011 , the $ 1.2 million increase in noninterest income in banking for 2012 , as compared to 2011 , was due to increased activity levels in the trust operations of ffb as well as increased fees related to the prepayment of loans . trust aum increased from $ 135 million at the beginning of 2011 to $ 309 million at the end of 2012. loan prepayments totaled $ 116 million in 2012 as compared to $ 61 million in 2011. the following table provides a breakdown of noninterest income for wealth management for the years ended december 31 : replace_table_token_16_th asset management fees increased by 15 % in 2012 as compared to 2011 due to a 21 % increase in the average billable aum which was partially offset by a decrease in the weighted average investment advisory fee rate . at december 31 , 2012 , aum totaled $ 2.23 billion as compared to $ 1.83 billion at december 31 , 2011 and $ 1.56 billion at december 31 , 2010. noninterest expense : the following table provides a breakdown of noninterest expense for banking and wealth management for the years ended december 31 : replace_table_token_17_th the increase in noninterest expense in banking during 2012 as compared to 2011 was due to increases in staffing , increases in noninterest expenses as a result of the dcb acquisition and costs associated with our higher balances of loans and deposits . compensation and benefits increased $ 3.4 million in 2012 as compared to 2011 as the number of fte in banking increased to 87.9 fte during 2012 as compared to 58.6 fte during 2011. the increase in staffing was primarily due to the opening of our new office in west los angeles and increased staffing related to the dcb acquisition . the $ 1.9 million increase in occupancy and depreciation for banking in 2012 as compared to 2011 reflects the facility costs for those branches acquired or opened in 2012 as well as the full year of costs related to the branch and corporate expansions that occurred in 2011. the $ 0.5 million increase in professional services and marketing for banking in 2012 as compared to 2011 was due to costs related to our increased activities , including information technology upgrades and projects and increased management fees paid on trust aum . the $ 0.4 million increase in other expenses in 2012 as compared to 2011 reflects costs related to our continuing growth including fdic insurance premiums and general office costs . 48 the $ 1.9 million increase in noninterest expenses in wealth management during 2012 as compared to 2011 was primarily due to $ 1.6 million of higher compensation and benefits costs resulting from increased staffing associated with opening of our new office in west los angeles and increased incentive compensation related to the growth in aum . staffing for wealth management increased to 44.7 fte in 2012 from 42.0 fte in 2011. financial condition the following table shows the financial position for each of our business segments , and of ffi and elimination entries used to arrive at our consolidated totals which are included in the column labeled other , at december 31 : replace_table_token_18_th our consolidated balance sheet is primarily affected by changes occurring in our banking operations as our wealth management operations do not maintain significant levels of assets . banking has experienced and is expected to continue to experience increases in its total assets as a result of our growth strategy . 49 during 2013 , total assets for the company and ffb increased by $ 207 million . for ffb , during 2013 , loans and deposits increased $ 160.2 million and $ 155.6 million , respectively , cash and cash equivalents decreased by $ 6.2 million , securities afs increased by $ 53.3 million and fhlb advances increased by $ 34.0 million . borrowings at ffi increased by $ 7.1 million during 2013. during 2012 , our consolidated total assets increased by $ 278.9 million primarily due to a $ 278.0 million increase in assets at ffb . as a result of the dcb acquisition , ffb 's total assets and deposits increased $ 139.9 million and $ 126.9 million , respectively , in 2012. excluding the dcb acquisition , loans and deposits at ffb increased $ 129.6 million and $ 116.9 million , respectively during 2012. cash and cash equivalents , certificates of deposit and securities : cash and cash equivalents , which primarily consist of funds held at the federal reserve bank or at correspondent banks , including fed funds , decreased $ 6.2 million during 2013. changes in cash equivalents are primarily affected by the funding of loans , investments in securities , and changes in our sources of funding : deposits , fhlb advances and ffi borrowings . the $ 53.0 million increase in cash and cash equivalents during 2012 includes the $ 34.9 million received in the dcb acquisition . securities available for sale : the following table provides a summary of the company 's afs securities portfolio at december 31 : replace_table_token_19_th the us treasury securities are pledged as collateral to the state of california to meet regulatory requirements related to ffb 's trust operations . the $ 53.3 million increase in afs securities reflected our actions to increase our on-balance sheet sources of liquidity . 50 the scheduled maturities of securities afs , other than agency mortgage backed securities , and the related weighted average yield is as follows as of december 31 , 2013 : replace_table_token_20_th agency mortgage backed securities are excluded from the above table because such securities are not due at a single maturity date . the weighted average yield of the agency mortgage backed securities as of december 31 , 2013 was 2.63 % . loans . the following table sets forth our
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2,510 | we recognize our revenue according to the contract type . on a daily basis , we recognize service revenue over time for contracts that provide for specific time , material and equipment charges , which we bill periodically , ranging from weekly to monthly . we use the input method to faithfully depict revenue recognition , because each day of service provided represents value to the customer . the performance obligations in these contracts are satisfied , and revenue is recognized , as the work is performed . we have used the 29 expedient available to recognize revenue when the billing corresponds to the value realized by the customer where appropriate . we account for significant fixed-price contracts , mainly relating to our subsea products segment , and to a lesser extent in our subsea projects and advanced technologies segments , by recognizing revenue over time using an input , cost-to-cost measurement percentage-of-completion method . we use the input cost-to-cost method to faithfully depict revenue recognition . this commonly used method allows appropriate calculation of progress on our contracts . a performance obligation is satisfied as we create a product on behalf of the customer over the life of the contract . the remainder of our revenue is recognized at the point in time when control transfers to the customer , thus satisfying the performance obligation . we have elected to recognize the cost for freight and shipping as an expense when incurred . taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction , and that are collected by us from customers , are excluded from revenue . in our service-based business lines , which principally charge on a day rate basis for services provided , there is no significant impact in the pattern of revenue and profit recognition as a result of implementation of asc 606. in our product-based business lines , there are impacts on the pattern of our revenue and profit recognition in our contracts using the percentage-of-completion method , as a result of the requirement to exclude uninstalled materials and significant inefficiencies from the measure of progress . this occurs in our subsea products segment . we apply judgment in the determination and allocation of transaction price to performance obligations , and the subsequent recognition of revenue , based on the facts and circumstances of each contract . we routinely review estimates related to our contracts and , where required , reflect revisions to profitability in earnings immediately . if an element of variable consideration has the potential for a significant future reversal of revenue , we will constrain that variable consideration to a level intended to remove the potential future reversal . if a current estimate of total contract cost indicates an ultimate loss on a contract , we recognize the projected loss in full when we determine it . in prior years , we have recorded adjustments to earnings as a result of revisions to contract estimates . we strive to estimate our contract costs and profitability accurately . however , there could be significant adjustments to overall contract costs in the future , due to changes in facts and circumstances . in general , our payment terms consist of those services billed regularly as provided and those products delivered at a point in time , which are invoiced after the performance obligation is satisfied . our product and service contracts with milestone payments due at agreed progress points during the contract are invoiced when those milestones are reached , which may differ from the timing of revenue recognition . our payment terms generally do not provide financing of contracts to customers , nor do we receive financing from customers as a result of these terms . property and equipment and long-lived intangible assets . we periodically and upon the occurrence of a triggering event review the realizability of our property and equipment and long-lived intangible assets to determine whether any events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable . for long-lived assets to be held and used , we base our evaluation on impairment indicators such as the nature of the assets , the future economic benefits of the assets , any historical or future profitability measurements and other external market conditions or factors that may be present . if such impairment indicators are present or other factors exist that indicate that the carrying amount of an asset may not be recoverable , we determine whether an impairment has occurred through the use of an undiscounted cash flows analysis of the asset at the lowest level for which identifiable cash flows exist . if an impairment has occurred , we recognize a loss for the difference between the carrying amount and the fair value of the asset . for assets held for sale or disposal , the fair value of the asset is measured using fair market value less cost to sell . assets are classified as held-for-sale when we have a plan for disposal of certain assets and those assets meet the held for sale criteria . 30 we charge the costs of repair and maintenance of property and equipment to operations as incurred , while we capitalize the costs of improvements that extend asset lives or functionality . goodwill . our goodwill is evaluated for impairment annually and whenever we identify certain triggering events or circumstances that would more likely than not reduce the fair value of a reporting unit below its carrying amount . story_separator_special_tag we added six , seven and six rovs to our fleet and retired ten , eight and 41 units during 2018 , 2017 and 2016 , respectively , resulting in a total of 275 work-class systems in our fleet at december 31 , 2018 . over the past three years , we retired a greater number of rovs than we have added due to market conditions and outlook . we previously had several deepwater vessels under long-term charter . the last of our long-term charters expired in march 2018. with the current market conditions , our philosophy is to attempt to charter vessels for specific projects on a back-to-back basis with the vessel owners . this generally minimizes our contract exposure by closely matching our obligations with our revenue . unless indicated otherwise , each of the chartered vessels discussed below is a deepwater multiservice subsea support vessel outfitted with two of our high-specification work-class rovs . in 2012 , we moved the chartered vessel ocean intervention iii to angola and also chartered the bourbon oceanteam 101 to work on a three-year field support vessel services contract for a unit of bp plc . we had extended the charter of the bourbon oceanteam 101 to january 2017. however , in early 2016 , the customer exercised its right , under the field support vessel services contract , to terminate its use of the bourbon oceanteam 101 at the end of may 2016. under the terms of the contract , the costs incurred by us associated with the early release and demobilization of the vessel were reimbursed by the customer . following the release of the vessel , we redelivered it to the vessel supplier . the charter for the ocean intervention iii expired at the end of july 2017. under the field support vessel services contract , which was extended through january 2022 , we are continuing to supply project management and engineering services . we also provide rov tooling and asset integrity services as requested by the customer . chartered vessels and barges are provided to the customer upon request . in march 2013 , we commenced a five-year bareboat charter for a jones act-compliant multiservice support vessel , the ocean alliance , we have been using in the u.s. gulf of mexico . in january 2015 , we commenced a two-year contract with a customer for the use of the ocean alliance , which expired in january 2017. we returned the ocean alliance to the vessel owner in the first quarter of 2018 and continue to market the vessel , now renamed the cade candies , for spot market work in the u.s. gulf of mexico on a back-to-back basis with the owner . in december 2013 , we commenced a three-year charter for the normand flower , a multiservice subsea marine support vessel . we made modifications to the vessel and used the vessel in the u.s. gulf of mexico to perform inspection , maintenance and repair projects and hardware installations . in december 2016 , we declined our option to extend the charter and the vessel was released . in november 2015 , we commenced a two-year charter for the use of the island pride , a multiservice subsea marine support vessel . we used the vessel under a two-year contract to provide field support services off the coast of india for an oil and gas customer based in india . in 34 november 2017 , that field services contract expired and we declined our option to extend the vessel charter . we also charter or lease vessels on a short-term basis as necessary to augment our fleet . during the third quarter of 2013 , we signed an agreement with a shipyard for the construction of a subsea support vessel , to be named the ocean evolution . we expect to take delivery in the first quarter and place the vessel into service in the second quarter of 2019. we intend for the vessel to be u.s. flagged and documented with a coastwise endorsement by the u.s. coast guard . the vessel has an overall length of 353 feet , a class 2 dynamic positioning system , accommodations for 110 personnel , a helideck , a 250-ton active heave-compensated crane , a working moonpool , and two of our high specification 4,000 meter work-class rovs . the vessel is also equipped with a satellite communications system capable of transmitting streaming video for real-time work observation by shore personnel . we anticipate the vessel will be used to augment our ability to provide subsea intervention services in the u.s. gulf of mexico . these services are required to perform inspection , maintenance and repair projects and hardware installations . our principal source of cash from operating activities is our net income ( loss ) , adjusted for the non-cash expenses of depreciation and amortization , deferred income taxes and noncash compensation under our restricted stock plans . our $ 37 million , $ 136 million and $ 339 million of cash provided from operating activities in 2018 , 2017 and 2016 , respectively , were affected by cash increases ( decreases ) of : ( 1 ) $ ( 87 ) million , $ 13 million and $ 123 million , respectively , of changes in accounts receivable ; ( 2 ) $ ( 12 ) million , $ 66 million and $ 18 million , respectively , of changes in inventory ; and ( 3 ) $ 29 million , $ ( 76 ) million and $ ( 115 ) million , respectively , of changes in accounts payable and accrued liabilities . the decrease in cash related to accounts receivable in 2018 reflected higher business levels in the fourth quarter of 2018 , as compared to the fourth quarter of 2017 , along with timing of customer payments . the increase in cash related to changes in current liabilities in 2018 reflected timing of
| liquidity and capital resources we consider our liquidity and capital resources adequate to support our operations and growth initiatives . at december 31 , 2018 , we had working capital of $ 750 million , including cash and cash equivalents of $ 354 million . additionally , we had $ 500 million available through our revolving credit facility under a credit agreement further described below . in november 2014 , we completed the public offering of $ 500 million aggregate principal amount of 4.650 % senior notes due 2024 ( the `` 2024 senior notes '' ) . we pay interest on the 2024 senior notes on may 15 and november 15 of each year . the 2024 senior notes are scheduled to mature on november 15 , 2024. in february 2018 , we completed the public offering of $ 300 million aggregate principal amount of 6.000 % senior notes due 2028 ( the `` 2028 senior notes '' ) . we pay interest on the 2028 senior notes on february 1 and august 1 of each year . the 2028 senior notes are scheduled to mature on february 1 , 2028. we may redeem some or all of the 2024 senior notes and the 2028 senior notes ( collectively , the `` senior notes '' ) at specified redemption prices . we used the net proceeds from the 2028 senior notes to repay our term loan indebtedness described further below .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources we consider our liquidity and capital resources adequate to support our operations and growth initiatives . at december 31 , 2018 , we had working capital of $ 750 million , including cash and cash equivalents of $ 354 million . additionally , we had $ 500 million available through our revolving credit facility under a credit agreement further described below . in november 2014 , we completed the public offering of $ 500 million aggregate principal amount of 4.650 % senior notes due 2024 ( the `` 2024 senior notes '' ) . we pay interest on the 2024 senior notes on may 15 and november 15 of each year . the 2024 senior notes are scheduled to mature on november 15 , 2024. in february 2018 , we completed the public offering of $ 300 million aggregate principal amount of 6.000 % senior notes due 2028 ( the `` 2028 senior notes '' ) . we pay interest on the 2028 senior notes on february 1 and august 1 of each year . the 2028 senior notes are scheduled to mature on february 1 , 2028. we may redeem some or all of the 2024 senior notes and the 2028 senior notes ( collectively , the `` senior notes '' ) at specified redemption prices . we used the net proceeds from the 2028 senior notes to repay our term loan indebtedness described further below .
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Suspicious Activity Report : we recognize our revenue according to the contract type . on a daily basis , we recognize service revenue over time for contracts that provide for specific time , material and equipment charges , which we bill periodically , ranging from weekly to monthly . we use the input method to faithfully depict revenue recognition , because each day of service provided represents value to the customer . the performance obligations in these contracts are satisfied , and revenue is recognized , as the work is performed . we have used the 29 expedient available to recognize revenue when the billing corresponds to the value realized by the customer where appropriate . we account for significant fixed-price contracts , mainly relating to our subsea products segment , and to a lesser extent in our subsea projects and advanced technologies segments , by recognizing revenue over time using an input , cost-to-cost measurement percentage-of-completion method . we use the input cost-to-cost method to faithfully depict revenue recognition . this commonly used method allows appropriate calculation of progress on our contracts . a performance obligation is satisfied as we create a product on behalf of the customer over the life of the contract . the remainder of our revenue is recognized at the point in time when control transfers to the customer , thus satisfying the performance obligation . we have elected to recognize the cost for freight and shipping as an expense when incurred . taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction , and that are collected by us from customers , are excluded from revenue . in our service-based business lines , which principally charge on a day rate basis for services provided , there is no significant impact in the pattern of revenue and profit recognition as a result of implementation of asc 606. in our product-based business lines , there are impacts on the pattern of our revenue and profit recognition in our contracts using the percentage-of-completion method , as a result of the requirement to exclude uninstalled materials and significant inefficiencies from the measure of progress . this occurs in our subsea products segment . we apply judgment in the determination and allocation of transaction price to performance obligations , and the subsequent recognition of revenue , based on the facts and circumstances of each contract . we routinely review estimates related to our contracts and , where required , reflect revisions to profitability in earnings immediately . if an element of variable consideration has the potential for a significant future reversal of revenue , we will constrain that variable consideration to a level intended to remove the potential future reversal . if a current estimate of total contract cost indicates an ultimate loss on a contract , we recognize the projected loss in full when we determine it . in prior years , we have recorded adjustments to earnings as a result of revisions to contract estimates . we strive to estimate our contract costs and profitability accurately . however , there could be significant adjustments to overall contract costs in the future , due to changes in facts and circumstances . in general , our payment terms consist of those services billed regularly as provided and those products delivered at a point in time , which are invoiced after the performance obligation is satisfied . our product and service contracts with milestone payments due at agreed progress points during the contract are invoiced when those milestones are reached , which may differ from the timing of revenue recognition . our payment terms generally do not provide financing of contracts to customers , nor do we receive financing from customers as a result of these terms . property and equipment and long-lived intangible assets . we periodically and upon the occurrence of a triggering event review the realizability of our property and equipment and long-lived intangible assets to determine whether any events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable . for long-lived assets to be held and used , we base our evaluation on impairment indicators such as the nature of the assets , the future economic benefits of the assets , any historical or future profitability measurements and other external market conditions or factors that may be present . if such impairment indicators are present or other factors exist that indicate that the carrying amount of an asset may not be recoverable , we determine whether an impairment has occurred through the use of an undiscounted cash flows analysis of the asset at the lowest level for which identifiable cash flows exist . if an impairment has occurred , we recognize a loss for the difference between the carrying amount and the fair value of the asset . for assets held for sale or disposal , the fair value of the asset is measured using fair market value less cost to sell . assets are classified as held-for-sale when we have a plan for disposal of certain assets and those assets meet the held for sale criteria . 30 we charge the costs of repair and maintenance of property and equipment to operations as incurred , while we capitalize the costs of improvements that extend asset lives or functionality . goodwill . our goodwill is evaluated for impairment annually and whenever we identify certain triggering events or circumstances that would more likely than not reduce the fair value of a reporting unit below its carrying amount . story_separator_special_tag we added six , seven and six rovs to our fleet and retired ten , eight and 41 units during 2018 , 2017 and 2016 , respectively , resulting in a total of 275 work-class systems in our fleet at december 31 , 2018 . over the past three years , we retired a greater number of rovs than we have added due to market conditions and outlook . we previously had several deepwater vessels under long-term charter . the last of our long-term charters expired in march 2018. with the current market conditions , our philosophy is to attempt to charter vessels for specific projects on a back-to-back basis with the vessel owners . this generally minimizes our contract exposure by closely matching our obligations with our revenue . unless indicated otherwise , each of the chartered vessels discussed below is a deepwater multiservice subsea support vessel outfitted with two of our high-specification work-class rovs . in 2012 , we moved the chartered vessel ocean intervention iii to angola and also chartered the bourbon oceanteam 101 to work on a three-year field support vessel services contract for a unit of bp plc . we had extended the charter of the bourbon oceanteam 101 to january 2017. however , in early 2016 , the customer exercised its right , under the field support vessel services contract , to terminate its use of the bourbon oceanteam 101 at the end of may 2016. under the terms of the contract , the costs incurred by us associated with the early release and demobilization of the vessel were reimbursed by the customer . following the release of the vessel , we redelivered it to the vessel supplier . the charter for the ocean intervention iii expired at the end of july 2017. under the field support vessel services contract , which was extended through january 2022 , we are continuing to supply project management and engineering services . we also provide rov tooling and asset integrity services as requested by the customer . chartered vessels and barges are provided to the customer upon request . in march 2013 , we commenced a five-year bareboat charter for a jones act-compliant multiservice support vessel , the ocean alliance , we have been using in the u.s. gulf of mexico . in january 2015 , we commenced a two-year contract with a customer for the use of the ocean alliance , which expired in january 2017. we returned the ocean alliance to the vessel owner in the first quarter of 2018 and continue to market the vessel , now renamed the cade candies , for spot market work in the u.s. gulf of mexico on a back-to-back basis with the owner . in december 2013 , we commenced a three-year charter for the normand flower , a multiservice subsea marine support vessel . we made modifications to the vessel and used the vessel in the u.s. gulf of mexico to perform inspection , maintenance and repair projects and hardware installations . in december 2016 , we declined our option to extend the charter and the vessel was released . in november 2015 , we commenced a two-year charter for the use of the island pride , a multiservice subsea marine support vessel . we used the vessel under a two-year contract to provide field support services off the coast of india for an oil and gas customer based in india . in 34 november 2017 , that field services contract expired and we declined our option to extend the vessel charter . we also charter or lease vessels on a short-term basis as necessary to augment our fleet . during the third quarter of 2013 , we signed an agreement with a shipyard for the construction of a subsea support vessel , to be named the ocean evolution . we expect to take delivery in the first quarter and place the vessel into service in the second quarter of 2019. we intend for the vessel to be u.s. flagged and documented with a coastwise endorsement by the u.s. coast guard . the vessel has an overall length of 353 feet , a class 2 dynamic positioning system , accommodations for 110 personnel , a helideck , a 250-ton active heave-compensated crane , a working moonpool , and two of our high specification 4,000 meter work-class rovs . the vessel is also equipped with a satellite communications system capable of transmitting streaming video for real-time work observation by shore personnel . we anticipate the vessel will be used to augment our ability to provide subsea intervention services in the u.s. gulf of mexico . these services are required to perform inspection , maintenance and repair projects and hardware installations . our principal source of cash from operating activities is our net income ( loss ) , adjusted for the non-cash expenses of depreciation and amortization , deferred income taxes and noncash compensation under our restricted stock plans . our $ 37 million , $ 136 million and $ 339 million of cash provided from operating activities in 2018 , 2017 and 2016 , respectively , were affected by cash increases ( decreases ) of : ( 1 ) $ ( 87 ) million , $ 13 million and $ 123 million , respectively , of changes in accounts receivable ; ( 2 ) $ ( 12 ) million , $ 66 million and $ 18 million , respectively , of changes in inventory ; and ( 3 ) $ 29 million , $ ( 76 ) million and $ ( 115 ) million , respectively , of changes in accounts payable and accrued liabilities . the decrease in cash related to accounts receivable in 2018 reflected higher business levels in the fourth quarter of 2018 , as compared to the fourth quarter of 2017 , along with timing of customer payments . the increase in cash related to changes in current liabilities in 2018 reflected timing of
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2,511 | , 2020 and excludes three properties owned by two unconsolidated joint ventures in which we own 51 % and 50 % interests . for more information regarding our properties classified as held for sale and our two unconsolidated joint ventures , see note 3 to the notes to consolidated financial statements included in part iv , item 15 of this annual report on form 10-k. occupancy data for our properties as of december 31 , 2020 and 2019 was as follows ( square feet in thousands ) : replace_table_token_3_th ( 1 ) based on properties we owned on december 31 , 2020 and 2019 , respectively . ( 2 ) based on properties we owned continuously since january 1 , 2019 ; excludes properties classified as held for sale , properties undergoing significant redevelopment , if any , and three properties owned by two unconsolidated joint ventures in which we own 51 % and 50 % interests . ( 3 ) includes one leasable land parcel . ( 4 ) subject to changes when space is remeasured or reconfigured for tenants . ( 5 ) percent leased includes ( i ) space being fitted out for tenant occupancy pursuant to our lease agreements , if any , and ( ii ) space which is leased , but is not occupied or is being offered for sublease by tenants , if any , as of the measurement date . the average effective rental rate per square foot for our properties for the years ended december 31 , 2020 and 2019 are as follows : replace_table_token_4_th ( 1 ) average effective rental rate per square foot represents total rental income during the period specified divided by the average rentable square feet leased during the period specified . ( 2 ) based on properties we owned on december 31 , 2020 and 2019 , respectively . ( 3 ) based on properties we owned continuously since january 1 , 2019 ; excludes properties classified as held for sale , properties undergoing significant redevelopment , if any , and three properties owned by two unconsolidated joint ventures in which we own 51 % and 50 % interests . during the year ended december 31 , 2020 , changes in rentable square feet leased and available for lease at our properties were as follows ( square feet in thousands ) : replace_table_token_5_th ( 1 ) based on leases entered during the year ended december 31 , 2020 . ( 2 ) rentable square feet are subject to changes when space is remeasured or reconfigured for tenants . 49 leases at our properties totaling approximately 2,334,000 rentable square feet expired during the year ended december 31 , 2020. during the year ended december 31 , 2020 , we entered leases totaling approximately 1,965,000 rentable square feet , including lease renewals of approximately 1,691,000 rentable square feet and new leases of approximately 274,000 rentable square feet . the weighted ( by rentable square feet ) average rents were 6.9 % above prior rents for the same space and the weighted ( by rentable square feet ) average lease term for new and renewal leases entered during the year ended december 31 , 2020 was 7.3 years . during the year ended december 31 , 2020 , commitments made for expenditures , such as tenant improvements and leasing costs , in connection with leasing space at our properties were as follows ( square feet in thousands ) : replace_table_token_6_th ( 1 ) includes commitments made for leasing expenditures and concessions , such as tenant improvements , leasing commissions , tenant reimbursements and free rent . during the year ended december 31 , 2020 , changes in effective rental rates per square foot achieved for new leases and lease renewals at our properties that commenced during the year ended december 31 , 2020 , when compared to prior effective rental rates per square foot in effect for the same space ( and excluding space acquired vacant ) , were as follows ( square feet in thousands ) : replace_table_token_7_th ( 1 ) effective rental rate includes contractual base rents from our tenants pursuant to our lease agreements , plus straight line rent adjustments and estimated expense reimbursements to be paid to us , and excluding lease value amortization . during the years ended december 31 , 2020 and 2019 , amounts capitalized at our properties for lease related costs , building improvements and development , redevelopment and other activities were as follows : replace_table_token_8_th ( 1 ) lease related costs generally include capital expenditures used to improve tenants ' space or amounts paid directly to tenants to improve their space and leasing related costs , such as brokerage commissions and other tenant inducements . ( 2 ) building improvements generally include expenditures to replace obsolete building components and expenditures that extend the useful life of existing assets . ( 3 ) development , redevelopment and other activities generally include capital expenditure projects that reposition a property or result in new sources of revenue . as of december 31 , 2020 , we have estimated unspent leasing related obligations of $ 51,913 , of which we expect to spend $ 19,179 over the next 12 months . 50 as of december 31 , 2020 , we had leases at our properties totaling approximately 3,657,000 rentable square feet that were scheduled to expire during 2021. as of february 18 , 2021 , we expect tenants with leases totaling approximately 2,614,000 rentable square feet that are scheduled to expire through december 31 , 2021 , to not renew their leases upon expiration and we can not be sure as to whether other tenants will renew their leases upon expiration . story_separator_special_tag 55 results of operations ( amounts in thousands , except per share amounts ) year ended december 31 , 2020 , compared to year ended december 31 , 2019 replace_table_token_11_th n/m - not meaningful ( 1 ) comparable properties consists of 177 properties we owned on december 31 , 2020 and which we owned continuously since january 1 , 2019 and excludes properties classified as held for sale , properties undergoing significant redevelopment , if any , and three properties owned by two unconsolidated joint ventures in which we own 51 % and 50 % interests . ( 2 ) our definition of net operating income , or noi , and our reconciliation of net income to noi are included below under the heading โ non-gaap financial measures . โ references to changes in the income and expense categories below relate to the comparison of consolidated results for the year ended december 31 , 2020 , compared to the year ended december 31 , 2019. for a comparison of consolidated results for the year ended december 31 , 2019 compared to the year ended december 31 , 2018 , see part ii , item 7 โ management 's discussion and analysis of financial condition and results of operations โ in our annual report on form 10-k for the fiscal year ended december 31 , 2019 . 56 rental income . the decrease in rental income reflects decreases in rental income of $ 74,411 as a result of property disposition activities , $ 10,078 related to comparable properties and $ 6,204 related to a property undergoing significant redevelopment that became vacant in september 2019 , offset by an increase in rental income of $ 208 related to acquired properties . the decrease in rental income for comparable properties is primarily due to reductions in occupied space at certain of our properties in 2020 , certain below market lease intangibles becoming fully amortized , termination fee revenue totaling $ 1,543 recorded at certain of our comparable properties in 2019 , reductions in reimbursement income due to reductions in expenses that are reimbursable to us by our tenants as a result of the covid-19 pandemic and resulting decrease in space utilization , and decreased parking revenue at certain of our comparable properties due to lower parking activity resulting from the covid-19 pandemic . rental income includes non-cash straight line rent adjustments totaling $ 16,079 in 2020 and $ 27,507 in 2019 , and amortization of acquired leases and assumed lease obligations totaling ( $ 5,440 ) in 2020 and ( $ 2,710 ) in 2019. real estate taxes . the decrease in real estate taxes reflects a decrease in real estate taxes of $ 7,765 as a result of property disposition activities , a decrease of $ 803 for a property undergoing significant redevelopment and a decrease of $ 80 for comparable properties , offset by increases in real estate taxes of $ 50 for acquired properties . real estate taxes for comparable properties declined primarily due to the effect of lower real estate tax valuation assessments resulting from successful real estate tax appeals at certain of our properties since january 1 , 2019. utility expenses . the decrease in utility expenses reflects a decrease in utility expenses of $ 4,796 as a result of property disposition activities and a decrease in utility expenses for comparable properties of $ 4,188 , offset by an increase in utility expenses for a property undergoing significant redevelopment of $ 66. utility expenses for comparable properties declined primarily due to a decrease in electricity and water usage resulting from cost savings initiatives implemented by our manager , rmr llc , in response to decreased space utilization at our properties as a result of the covid-19 pandemic , as well as the implementation of real time energy management programs at certain of our properties in 2020. other operating expenses . other operating expenses consist of salaries and benefit costs of property level personnel , repairs and maintenance expense , cleaning expense , other direct costs of operating our properties and property management fees . the decrease in other operating expenses reflects a decrease of $ 13,448 as a result of property disposition activities , a decrease of $ 1,720 for comparable properties and a decrease of $ 436 related to a property undergoing significant redevelopment , offset by an increase in other operating expenses related to acquired properties of $ 126. other operating expenses for comparable properties declined primarily due to lower net cleaning costs resulting from cost savings initiatives implemented by our manager , rmr llc , in response to decreased space utilization at our properties as a result of the covid-19 pandemic , which were partially offset by an increase in cleaning costs related to more frequent cleaning and sanitizing practices at our properties to help mitigate the spread of covid-19 , lower snow removal costs and lower parking garage maintenance costs due to lower parking activity at certain of our properties resulting from the covid-19 pandemic , partially offset by higher insurance costs in 2020. depreciation and amortization . the decrease in depreciation and amortization primarily reflects a decrease of $ 23,092 as a result of property disposition activities , a decrease for comparable properties of $ 12,891 and a decrease related to a property undergoing significant redevelopment of $ 2,567 , offset by an increase related to acquired properties of $ 231. depreciation and amortization for comparable properties and the property undergoing significant redevelopment declined due to certain leasing related assets becoming fully depreciated in 2020 , partially offset by depreciation and amortization of improvements made to certain of our properties during 2019 and 2020. loss on impairment of real estate . we recorded a $ 2,954 loss on impairment of real estate in 2020 to reduce the carrying value of four properties to their estimated fair value less costs to sell . we recorded a $ 22,255 loss on impairment of real estate
| liquidity and capital resources our operating liquidity and resources ( dollar amounts in thousands ) our principal sources of funds to meet operating and capital expenses , pay debt service obligations and make distributions to our shareholders are the operating cash flows we generate from our properties , net proceeds from property sales and borrowings under our revolving credit facility . we believe that these sources of funds will be sufficient to meet our operating and capital expenses , pay debt service obligations and make distributions to our shareholders for the next 12 months and for the foreseeable future thereafter . our future cash flows from operating activities will depend primarily upon : our ability to collect rent from our tenants ; our ability to maintain or increase the occupancy of , and the rental rates at , our properties ; our ability to control operating and capital expenses at our properties ; our ability to successfully sell properties that we market for sale ; our ability to develop or redevelop properties to produce cash flows in excess of our cost of capital ; and our ability to purchase additional properties which produce cash flows from operations in excess of our cost of acquisition capital and property operating expenses and capital expenses . with $ 750,000 available under our revolving credit facility as of february 18 , 2021 and no significant debt maturities until 2022 , we believe that we are well positioned to weather the present disruptions facing the real estate industry and the economy generally . as a result of the covid-19 pandemic , we have received requests from some of our tenants for rent assistance .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources our operating liquidity and resources ( dollar amounts in thousands ) our principal sources of funds to meet operating and capital expenses , pay debt service obligations and make distributions to our shareholders are the operating cash flows we generate from our properties , net proceeds from property sales and borrowings under our revolving credit facility . we believe that these sources of funds will be sufficient to meet our operating and capital expenses , pay debt service obligations and make distributions to our shareholders for the next 12 months and for the foreseeable future thereafter . our future cash flows from operating activities will depend primarily upon : our ability to collect rent from our tenants ; our ability to maintain or increase the occupancy of , and the rental rates at , our properties ; our ability to control operating and capital expenses at our properties ; our ability to successfully sell properties that we market for sale ; our ability to develop or redevelop properties to produce cash flows in excess of our cost of capital ; and our ability to purchase additional properties which produce cash flows from operations in excess of our cost of acquisition capital and property operating expenses and capital expenses . with $ 750,000 available under our revolving credit facility as of february 18 , 2021 and no significant debt maturities until 2022 , we believe that we are well positioned to weather the present disruptions facing the real estate industry and the economy generally . as a result of the covid-19 pandemic , we have received requests from some of our tenants for rent assistance .
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Suspicious Activity Report : , 2020 and excludes three properties owned by two unconsolidated joint ventures in which we own 51 % and 50 % interests . for more information regarding our properties classified as held for sale and our two unconsolidated joint ventures , see note 3 to the notes to consolidated financial statements included in part iv , item 15 of this annual report on form 10-k. occupancy data for our properties as of december 31 , 2020 and 2019 was as follows ( square feet in thousands ) : replace_table_token_3_th ( 1 ) based on properties we owned on december 31 , 2020 and 2019 , respectively . ( 2 ) based on properties we owned continuously since january 1 , 2019 ; excludes properties classified as held for sale , properties undergoing significant redevelopment , if any , and three properties owned by two unconsolidated joint ventures in which we own 51 % and 50 % interests . ( 3 ) includes one leasable land parcel . ( 4 ) subject to changes when space is remeasured or reconfigured for tenants . ( 5 ) percent leased includes ( i ) space being fitted out for tenant occupancy pursuant to our lease agreements , if any , and ( ii ) space which is leased , but is not occupied or is being offered for sublease by tenants , if any , as of the measurement date . the average effective rental rate per square foot for our properties for the years ended december 31 , 2020 and 2019 are as follows : replace_table_token_4_th ( 1 ) average effective rental rate per square foot represents total rental income during the period specified divided by the average rentable square feet leased during the period specified . ( 2 ) based on properties we owned on december 31 , 2020 and 2019 , respectively . ( 3 ) based on properties we owned continuously since january 1 , 2019 ; excludes properties classified as held for sale , properties undergoing significant redevelopment , if any , and three properties owned by two unconsolidated joint ventures in which we own 51 % and 50 % interests . during the year ended december 31 , 2020 , changes in rentable square feet leased and available for lease at our properties were as follows ( square feet in thousands ) : replace_table_token_5_th ( 1 ) based on leases entered during the year ended december 31 , 2020 . ( 2 ) rentable square feet are subject to changes when space is remeasured or reconfigured for tenants . 49 leases at our properties totaling approximately 2,334,000 rentable square feet expired during the year ended december 31 , 2020. during the year ended december 31 , 2020 , we entered leases totaling approximately 1,965,000 rentable square feet , including lease renewals of approximately 1,691,000 rentable square feet and new leases of approximately 274,000 rentable square feet . the weighted ( by rentable square feet ) average rents were 6.9 % above prior rents for the same space and the weighted ( by rentable square feet ) average lease term for new and renewal leases entered during the year ended december 31 , 2020 was 7.3 years . during the year ended december 31 , 2020 , commitments made for expenditures , such as tenant improvements and leasing costs , in connection with leasing space at our properties were as follows ( square feet in thousands ) : replace_table_token_6_th ( 1 ) includes commitments made for leasing expenditures and concessions , such as tenant improvements , leasing commissions , tenant reimbursements and free rent . during the year ended december 31 , 2020 , changes in effective rental rates per square foot achieved for new leases and lease renewals at our properties that commenced during the year ended december 31 , 2020 , when compared to prior effective rental rates per square foot in effect for the same space ( and excluding space acquired vacant ) , were as follows ( square feet in thousands ) : replace_table_token_7_th ( 1 ) effective rental rate includes contractual base rents from our tenants pursuant to our lease agreements , plus straight line rent adjustments and estimated expense reimbursements to be paid to us , and excluding lease value amortization . during the years ended december 31 , 2020 and 2019 , amounts capitalized at our properties for lease related costs , building improvements and development , redevelopment and other activities were as follows : replace_table_token_8_th ( 1 ) lease related costs generally include capital expenditures used to improve tenants ' space or amounts paid directly to tenants to improve their space and leasing related costs , such as brokerage commissions and other tenant inducements . ( 2 ) building improvements generally include expenditures to replace obsolete building components and expenditures that extend the useful life of existing assets . ( 3 ) development , redevelopment and other activities generally include capital expenditure projects that reposition a property or result in new sources of revenue . as of december 31 , 2020 , we have estimated unspent leasing related obligations of $ 51,913 , of which we expect to spend $ 19,179 over the next 12 months . 50 as of december 31 , 2020 , we had leases at our properties totaling approximately 3,657,000 rentable square feet that were scheduled to expire during 2021. as of february 18 , 2021 , we expect tenants with leases totaling approximately 2,614,000 rentable square feet that are scheduled to expire through december 31 , 2021 , to not renew their leases upon expiration and we can not be sure as to whether other tenants will renew their leases upon expiration . story_separator_special_tag 55 results of operations ( amounts in thousands , except per share amounts ) year ended december 31 , 2020 , compared to year ended december 31 , 2019 replace_table_token_11_th n/m - not meaningful ( 1 ) comparable properties consists of 177 properties we owned on december 31 , 2020 and which we owned continuously since january 1 , 2019 and excludes properties classified as held for sale , properties undergoing significant redevelopment , if any , and three properties owned by two unconsolidated joint ventures in which we own 51 % and 50 % interests . ( 2 ) our definition of net operating income , or noi , and our reconciliation of net income to noi are included below under the heading โ non-gaap financial measures . โ references to changes in the income and expense categories below relate to the comparison of consolidated results for the year ended december 31 , 2020 , compared to the year ended december 31 , 2019. for a comparison of consolidated results for the year ended december 31 , 2019 compared to the year ended december 31 , 2018 , see part ii , item 7 โ management 's discussion and analysis of financial condition and results of operations โ in our annual report on form 10-k for the fiscal year ended december 31 , 2019 . 56 rental income . the decrease in rental income reflects decreases in rental income of $ 74,411 as a result of property disposition activities , $ 10,078 related to comparable properties and $ 6,204 related to a property undergoing significant redevelopment that became vacant in september 2019 , offset by an increase in rental income of $ 208 related to acquired properties . the decrease in rental income for comparable properties is primarily due to reductions in occupied space at certain of our properties in 2020 , certain below market lease intangibles becoming fully amortized , termination fee revenue totaling $ 1,543 recorded at certain of our comparable properties in 2019 , reductions in reimbursement income due to reductions in expenses that are reimbursable to us by our tenants as a result of the covid-19 pandemic and resulting decrease in space utilization , and decreased parking revenue at certain of our comparable properties due to lower parking activity resulting from the covid-19 pandemic . rental income includes non-cash straight line rent adjustments totaling $ 16,079 in 2020 and $ 27,507 in 2019 , and amortization of acquired leases and assumed lease obligations totaling ( $ 5,440 ) in 2020 and ( $ 2,710 ) in 2019. real estate taxes . the decrease in real estate taxes reflects a decrease in real estate taxes of $ 7,765 as a result of property disposition activities , a decrease of $ 803 for a property undergoing significant redevelopment and a decrease of $ 80 for comparable properties , offset by increases in real estate taxes of $ 50 for acquired properties . real estate taxes for comparable properties declined primarily due to the effect of lower real estate tax valuation assessments resulting from successful real estate tax appeals at certain of our properties since january 1 , 2019. utility expenses . the decrease in utility expenses reflects a decrease in utility expenses of $ 4,796 as a result of property disposition activities and a decrease in utility expenses for comparable properties of $ 4,188 , offset by an increase in utility expenses for a property undergoing significant redevelopment of $ 66. utility expenses for comparable properties declined primarily due to a decrease in electricity and water usage resulting from cost savings initiatives implemented by our manager , rmr llc , in response to decreased space utilization at our properties as a result of the covid-19 pandemic , as well as the implementation of real time energy management programs at certain of our properties in 2020. other operating expenses . other operating expenses consist of salaries and benefit costs of property level personnel , repairs and maintenance expense , cleaning expense , other direct costs of operating our properties and property management fees . the decrease in other operating expenses reflects a decrease of $ 13,448 as a result of property disposition activities , a decrease of $ 1,720 for comparable properties and a decrease of $ 436 related to a property undergoing significant redevelopment , offset by an increase in other operating expenses related to acquired properties of $ 126. other operating expenses for comparable properties declined primarily due to lower net cleaning costs resulting from cost savings initiatives implemented by our manager , rmr llc , in response to decreased space utilization at our properties as a result of the covid-19 pandemic , which were partially offset by an increase in cleaning costs related to more frequent cleaning and sanitizing practices at our properties to help mitigate the spread of covid-19 , lower snow removal costs and lower parking garage maintenance costs due to lower parking activity at certain of our properties resulting from the covid-19 pandemic , partially offset by higher insurance costs in 2020. depreciation and amortization . the decrease in depreciation and amortization primarily reflects a decrease of $ 23,092 as a result of property disposition activities , a decrease for comparable properties of $ 12,891 and a decrease related to a property undergoing significant redevelopment of $ 2,567 , offset by an increase related to acquired properties of $ 231. depreciation and amortization for comparable properties and the property undergoing significant redevelopment declined due to certain leasing related assets becoming fully depreciated in 2020 , partially offset by depreciation and amortization of improvements made to certain of our properties during 2019 and 2020. loss on impairment of real estate . we recorded a $ 2,954 loss on impairment of real estate in 2020 to reduce the carrying value of four properties to their estimated fair value less costs to sell . we recorded a $ 22,255 loss on impairment of real estate
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2,512 | 2,554 1.85 2,306 2.23 9,607 2.07 14,576 2.05 privately-issued cmo โ โ โ โ โ โ 2,001 8.40 2,001 8.40 privately-issued abs โ โ โ โ โ โ 3,448 15.22 3,448 15.22 sba certificates โ โ โ โ 912 2.35 โ โ 912 2.35 municipal 1,096 6.25 13,976 4.11 27,634 4.98 77,720 4.71 120,426 4.72 total $ 1,205 5.84 % $ 24,290 3.16 % $ 41,136 4.02 % $ 111,468 4.59 % $ 178,099 4.27 % securities held to maturity : agency mortgage-backed securities $ โ โ % $ โ โ % $ โ โ % $ 179 4.66 % $ 179 4.66 % municipal 227 6.82 995 6.87 1,028 6.88 449 6.63 2,699 6.83 total $ 227 6.82 % $ 995 6.87 % $ 1,028 6.88 % $ 628 6.06 % $ 2,878 6.69 % as of september 30 , 2017 , we did not own any investment securities of a single issuer that had an aggregate book value in excess of 10 % of the company 's stockholders ' equity at that date , other than securities and obligations issued by u.s. government agencies and sponsored enterprises . deposits . deposit accounts , generally obtained from individuals and businesses throughout our primary market area , are our primary source of funds for lending and investments . our deposit accounts are comprised of noninterest-bearing accounts , interest-bearing savings , checking and money market accounts and time deposits . deposits increased $ 89.9 million from $ 579.5 million at september 30 , 2016 to $ 669.4 million at september 30 , 2017. the bank recognized increases in time deposits of $ 20.7 million , interest-bearing checking accounts of $ 36.3 million , noninterest-bearing checking accounts of $ 16.4 million , money market deposit accounts of $ 10.1 million and savings accounts of $ 6.4 million when comparing the two years . brokered certificates of deposit totaled $ 106.9 million at september 30 , 2017 compared to $ 81.5 million at september 30 , 2016. we have continued to promote relationship oriented deposit accounts but at times also utilize brokered certificates of deposit as a lower cost alternative to retail time deposits . in addition , we have continued to develop and promote cash management services including sweep accounts and remote deposit capture in order to increase the level of commercial deposit accounts . we believe that the development and promotion of these products has made us more competitive in attracting commercial deposits during recent periods . 39 the following table sets forth the balances of our deposit accounts at the dates indicated . replace_table_token_11_th the following table indicates the amount of jumbo certificates of deposit by time remaining until maturity as of september 30 , 2017. jumbo certificates of deposit require minimum deposits of $ 100,000 . ( in thousands ) amount three months or less $ 5,512 over three through six months 4,677 over six through twelve months 10,462 over twelve months 21,571 total $ 42,222 borrowings . we use borrowings from the fhlb consisting of advances and borrowings under a line of credit arrangement to supplement our supply of funds for loans and investments . we also utilize retail repurchase agreements as a source of borrowings . the following table sets forth certain information regarding the bank 's use of fhlb borrowings . replace_table_token_12_th the outstanding balance of borrowings from the fhlb decreased $ 3.5 million , from $ 121.6 million at september 30 , 2016 to $ 118.1 million at september 30 , 2017. fhlb borrowings are primarily used to fund loan demand and to purchase available for sale securities . the following table sets forth certain information regarding the bank 's use of borrowings under retail repurchase agreements . replace_table_token_13_th stockholders ' equity . stockholders ' equity increased $ 6.5 million , from $ 86.6 million at september 30 , 2016 to $ 93.1 million at september 30 , 2017. the increase is due to an increase in retained net income of $ 8.1 million during the year ended september 30 , 2017 . 40 results of operations for the years ended september 30 , 2017 , 2016 and 2015 overview . the company reported net income and net income available to common shareholders of $ 9.3 million ( $ 3.97 per common share diluted ) for the year ended september 30 , 2017 , compared to net income of $ 7.9 million and net income available to common shareholders of $ 7.8 million ( $ 3.41 per common share diluted ) for the year ended september 30 , 2016. the increase in net income and net income available to common shareholders was due to increases in net interest income of $ 4.2 million and noninterest income of $ 5.3 million offset by increases in provision for loan losses of $ 664,000 , noninterest expense of $ 2.5 million , and income tax expense of $ 4.8 million . net income and net income available to common shareholders increased to $ 7.9 million and $ 7.8 million ( $ 3.41 per common share diluted ) for the year ended september 30 , 2016 , respectively , compared to net income of $ 6.8 million and net income available to common shareholders of $ 6.6 million ( $ 2.93 per common share diluted ) for the year ended september 30 , 2015. during the year ended september 30 , 2016 , the company recognized a $ 4.7 million historic structure rehabilitation tax credit related to its equity investment in a community-based economic development ( โ cbed โ ) project , which resulted in a net tax benefit of $ 2.3 million for the year . story_separator_special_tag it is management 's assessment that the allowance for loan losses at september 30 , 2017 was adequate and appropriately reflected the probable incurred losses in the bank 's loan portfolio at that date . 44 noninterest income . noninterest income increased $ 5.4 million , or 155.8 % , from $ 3.4 million for the year ended september 30 , 2016 to $ 8.6 million for the year ended september 30 , 2017. the increase was due primarily to a $ 4.2 million impairment loss on a historic tax credit investment during the year ended september 30 , 2016 compared to a $ 226,000 loss in 2017 , as well as an increase in net gain on sales of loans guaranteed by the sba of $ 3.5 million . the total net gain on sales of loans guaranteed by the sba was $ 4.2 million for the year ended september 30 , 2017 as compared to $ 715,000 for the year ended september 30 , 2016. the aforementioned increases in noninterest income were offset by decreases in the net gain on sale of real estate development and net gain on trading account securities of $ 1.9 million and $ 548,000 , respectively . the decrease in the net gain on sale of real estate development is due to the sale of the company 's commercial real estate development in september 2016. the net gain on trading account securities was $ 200,000 for the year ended september 30 , 2017 as compared to $ 748,000 for the year ended september 30 , 2016. in 2016 , noninterest income decreased $ 2.6 million , or 43.6 % , from $ 6.0 million for the year ended september 30 , 2015 to $ 3.4 million for the year ended september 30 , 2016. the decrease was due primarily to the aforementioned $ 4.2 million impairment loss on the cbed project investment in 2016 , a $ 105,000 decrease in service charges on deposit accounts , a $ 139,000 decrease in real estate lease income and an $ 831,000 gain on life insurance policies in 2015 , which more than offset increases in net gain on sale of premises and equipment , net gain on sale of real estate development , net gain on sale of loans , and net gain on trading account securities of $ 168,000 , $ 1.9 million , $ 321,000 and $ 308,000 , respectively . the increases in net gain on sale of premises and equipment and net gain on sale of real estate development are due primarily to the aforementioned $ 2.0 million gain on sale of wesley commons in september 2016. the increase in net gain on sale of loans is due primarily to the sale of loans guaranteed by the sba . noninterest expense . noninterest expenses increased $ 2.6 million , or 11.2 % , from $ 22.4 million for the year ended september 30 , 2016 to $ 25.0 million for the year ended september 30 , 2017. the increase was due primarily to an increase in compensation and benefits of $ 2.2 million , which more than offset a decrease in data processing of $ 230,000. the increase in compensation and benefits was attributable to the addition of new employees to support the company 's sba lending activities as well as normal salary and benefits increases . the decrease in data processing was primarily due to new contracts signed in 2017 , which resulted in a decrease in monthly processing fees . in 2016 , noninterest expenses increased $ 1.4 million , or 6.8 % , from $ 21.0 million for the year ended september 30 , 2015 to $ 22.4 million for the year ended september 30 , 2016. the increase was due primarily to increases in compensation and benefits and data processing expenses of $ 1.0 million and $ 197,000 , respectively . the increase in compensation and benefits expense is due primarily to increased staffing as a result of the company 's enhanced focus on its sba lending activities , and normal salary , wage and benefits increases , which more than offset a decrease in esop compensation expense . the esop loan was repaid in full during the quarter ended december 31 , 2015 and , as a result , no esop compensation expense was recognized during the remainder of the 2016 fiscal year . the increase in data processing expense is due primarily to the replacement of customer magnetic strip debit cards with emv chip debit cards and data processing expense related to sba lending activities . income tax expense . the company recognized an income tax expense of $ 2.5 million for the year ended september 30 , 2017 , compared to income tax benefit of $ 2.3 million for the year ended september 30 , 2016 and income tax expense of $ 1.6 million for the year ended september 30 , 2015. the effective tax rate was 21.3 % and 18.9 % , for the years ended september 30 , 2017 and 2015 , respectively . the tax benefit for 2016 was due to the aforementioned recognition of the $ 4.7 million tax credit as a result of the cbed project investment . 45 risk management overview . managing risk is essential to successfully managing a financial institution . our most prominent risk exposures are credit risk , interest rate risk and market risk . credit risk is the risk of not collecting the interest and or the principal balance of a loan or investment when it is due . interest rate risk is the potential reduction of interest income as a result of changes in interest rates . market risk arises from fluctuations in interest rates that may result in changes in the values of financial instruments , such as available-for-sale securities that are accounted for on a mark-to-market basis . other risks that we face are operational risks , liquidity risks and
| cash and cash equivalents . at september 30 , 2017 and 2016 , cash and cash equivalents totaled $ 34.3 million and $ 29.3 million , respectively . the bank is required to maintain reserve balances on hand and with the federal reserve bank , which are unavailable for investment but interest-bearing . loans . our primary lending activity is the origination of loans secured by real estate . we originate one to four family mortgage loans , multifamily loans , commercial real estate loans , commercial business loans and construction loans . to a lesser extent , we originate various consumer loans including home equity lines of credit . 34 at september 30 , 2017 , residential mortgage loans totaled $ 171.9 million , or 27.7 % of total loans , compared to $ 178.4 million , or 32.2 % of total loans at september 30 , 2016. total residential mortgage loan balances decreased in 2017 primarily due to repayments and refinancings that were sold in the secondary market . we generally originate loans for investment purposes , although , depending on the interest rate environment , we typically sell 25-year and 30-year fixed rate residential mortgage loans that we originate into the secondary market in order to limit exposure to interest rate risk and to earn noninterest income . management intends to continue offering short-term adjustable rate residential mortgage loans and generally sell long-term fixed rate mortgage loans in the secondary market with servicing released .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash and cash equivalents . at september 30 , 2017 and 2016 , cash and cash equivalents totaled $ 34.3 million and $ 29.3 million , respectively . the bank is required to maintain reserve balances on hand and with the federal reserve bank , which are unavailable for investment but interest-bearing . loans . our primary lending activity is the origination of loans secured by real estate . we originate one to four family mortgage loans , multifamily loans , commercial real estate loans , commercial business loans and construction loans . to a lesser extent , we originate various consumer loans including home equity lines of credit . 34 at september 30 , 2017 , residential mortgage loans totaled $ 171.9 million , or 27.7 % of total loans , compared to $ 178.4 million , or 32.2 % of total loans at september 30 , 2016. total residential mortgage loan balances decreased in 2017 primarily due to repayments and refinancings that were sold in the secondary market . we generally originate loans for investment purposes , although , depending on the interest rate environment , we typically sell 25-year and 30-year fixed rate residential mortgage loans that we originate into the secondary market in order to limit exposure to interest rate risk and to earn noninterest income . management intends to continue offering short-term adjustable rate residential mortgage loans and generally sell long-term fixed rate mortgage loans in the secondary market with servicing released .
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Suspicious Activity Report : 2,554 1.85 2,306 2.23 9,607 2.07 14,576 2.05 privately-issued cmo โ โ โ โ โ โ 2,001 8.40 2,001 8.40 privately-issued abs โ โ โ โ โ โ 3,448 15.22 3,448 15.22 sba certificates โ โ โ โ 912 2.35 โ โ 912 2.35 municipal 1,096 6.25 13,976 4.11 27,634 4.98 77,720 4.71 120,426 4.72 total $ 1,205 5.84 % $ 24,290 3.16 % $ 41,136 4.02 % $ 111,468 4.59 % $ 178,099 4.27 % securities held to maturity : agency mortgage-backed securities $ โ โ % $ โ โ % $ โ โ % $ 179 4.66 % $ 179 4.66 % municipal 227 6.82 995 6.87 1,028 6.88 449 6.63 2,699 6.83 total $ 227 6.82 % $ 995 6.87 % $ 1,028 6.88 % $ 628 6.06 % $ 2,878 6.69 % as of september 30 , 2017 , we did not own any investment securities of a single issuer that had an aggregate book value in excess of 10 % of the company 's stockholders ' equity at that date , other than securities and obligations issued by u.s. government agencies and sponsored enterprises . deposits . deposit accounts , generally obtained from individuals and businesses throughout our primary market area , are our primary source of funds for lending and investments . our deposit accounts are comprised of noninterest-bearing accounts , interest-bearing savings , checking and money market accounts and time deposits . deposits increased $ 89.9 million from $ 579.5 million at september 30 , 2016 to $ 669.4 million at september 30 , 2017. the bank recognized increases in time deposits of $ 20.7 million , interest-bearing checking accounts of $ 36.3 million , noninterest-bearing checking accounts of $ 16.4 million , money market deposit accounts of $ 10.1 million and savings accounts of $ 6.4 million when comparing the two years . brokered certificates of deposit totaled $ 106.9 million at september 30 , 2017 compared to $ 81.5 million at september 30 , 2016. we have continued to promote relationship oriented deposit accounts but at times also utilize brokered certificates of deposit as a lower cost alternative to retail time deposits . in addition , we have continued to develop and promote cash management services including sweep accounts and remote deposit capture in order to increase the level of commercial deposit accounts . we believe that the development and promotion of these products has made us more competitive in attracting commercial deposits during recent periods . 39 the following table sets forth the balances of our deposit accounts at the dates indicated . replace_table_token_11_th the following table indicates the amount of jumbo certificates of deposit by time remaining until maturity as of september 30 , 2017. jumbo certificates of deposit require minimum deposits of $ 100,000 . ( in thousands ) amount three months or less $ 5,512 over three through six months 4,677 over six through twelve months 10,462 over twelve months 21,571 total $ 42,222 borrowings . we use borrowings from the fhlb consisting of advances and borrowings under a line of credit arrangement to supplement our supply of funds for loans and investments . we also utilize retail repurchase agreements as a source of borrowings . the following table sets forth certain information regarding the bank 's use of fhlb borrowings . replace_table_token_12_th the outstanding balance of borrowings from the fhlb decreased $ 3.5 million , from $ 121.6 million at september 30 , 2016 to $ 118.1 million at september 30 , 2017. fhlb borrowings are primarily used to fund loan demand and to purchase available for sale securities . the following table sets forth certain information regarding the bank 's use of borrowings under retail repurchase agreements . replace_table_token_13_th stockholders ' equity . stockholders ' equity increased $ 6.5 million , from $ 86.6 million at september 30 , 2016 to $ 93.1 million at september 30 , 2017. the increase is due to an increase in retained net income of $ 8.1 million during the year ended september 30 , 2017 . 40 results of operations for the years ended september 30 , 2017 , 2016 and 2015 overview . the company reported net income and net income available to common shareholders of $ 9.3 million ( $ 3.97 per common share diluted ) for the year ended september 30 , 2017 , compared to net income of $ 7.9 million and net income available to common shareholders of $ 7.8 million ( $ 3.41 per common share diluted ) for the year ended september 30 , 2016. the increase in net income and net income available to common shareholders was due to increases in net interest income of $ 4.2 million and noninterest income of $ 5.3 million offset by increases in provision for loan losses of $ 664,000 , noninterest expense of $ 2.5 million , and income tax expense of $ 4.8 million . net income and net income available to common shareholders increased to $ 7.9 million and $ 7.8 million ( $ 3.41 per common share diluted ) for the year ended september 30 , 2016 , respectively , compared to net income of $ 6.8 million and net income available to common shareholders of $ 6.6 million ( $ 2.93 per common share diluted ) for the year ended september 30 , 2015. during the year ended september 30 , 2016 , the company recognized a $ 4.7 million historic structure rehabilitation tax credit related to its equity investment in a community-based economic development ( โ cbed โ ) project , which resulted in a net tax benefit of $ 2.3 million for the year . story_separator_special_tag it is management 's assessment that the allowance for loan losses at september 30 , 2017 was adequate and appropriately reflected the probable incurred losses in the bank 's loan portfolio at that date . 44 noninterest income . noninterest income increased $ 5.4 million , or 155.8 % , from $ 3.4 million for the year ended september 30 , 2016 to $ 8.6 million for the year ended september 30 , 2017. the increase was due primarily to a $ 4.2 million impairment loss on a historic tax credit investment during the year ended september 30 , 2016 compared to a $ 226,000 loss in 2017 , as well as an increase in net gain on sales of loans guaranteed by the sba of $ 3.5 million . the total net gain on sales of loans guaranteed by the sba was $ 4.2 million for the year ended september 30 , 2017 as compared to $ 715,000 for the year ended september 30 , 2016. the aforementioned increases in noninterest income were offset by decreases in the net gain on sale of real estate development and net gain on trading account securities of $ 1.9 million and $ 548,000 , respectively . the decrease in the net gain on sale of real estate development is due to the sale of the company 's commercial real estate development in september 2016. the net gain on trading account securities was $ 200,000 for the year ended september 30 , 2017 as compared to $ 748,000 for the year ended september 30 , 2016. in 2016 , noninterest income decreased $ 2.6 million , or 43.6 % , from $ 6.0 million for the year ended september 30 , 2015 to $ 3.4 million for the year ended september 30 , 2016. the decrease was due primarily to the aforementioned $ 4.2 million impairment loss on the cbed project investment in 2016 , a $ 105,000 decrease in service charges on deposit accounts , a $ 139,000 decrease in real estate lease income and an $ 831,000 gain on life insurance policies in 2015 , which more than offset increases in net gain on sale of premises and equipment , net gain on sale of real estate development , net gain on sale of loans , and net gain on trading account securities of $ 168,000 , $ 1.9 million , $ 321,000 and $ 308,000 , respectively . the increases in net gain on sale of premises and equipment and net gain on sale of real estate development are due primarily to the aforementioned $ 2.0 million gain on sale of wesley commons in september 2016. the increase in net gain on sale of loans is due primarily to the sale of loans guaranteed by the sba . noninterest expense . noninterest expenses increased $ 2.6 million , or 11.2 % , from $ 22.4 million for the year ended september 30 , 2016 to $ 25.0 million for the year ended september 30 , 2017. the increase was due primarily to an increase in compensation and benefits of $ 2.2 million , which more than offset a decrease in data processing of $ 230,000. the increase in compensation and benefits was attributable to the addition of new employees to support the company 's sba lending activities as well as normal salary and benefits increases . the decrease in data processing was primarily due to new contracts signed in 2017 , which resulted in a decrease in monthly processing fees . in 2016 , noninterest expenses increased $ 1.4 million , or 6.8 % , from $ 21.0 million for the year ended september 30 , 2015 to $ 22.4 million for the year ended september 30 , 2016. the increase was due primarily to increases in compensation and benefits and data processing expenses of $ 1.0 million and $ 197,000 , respectively . the increase in compensation and benefits expense is due primarily to increased staffing as a result of the company 's enhanced focus on its sba lending activities , and normal salary , wage and benefits increases , which more than offset a decrease in esop compensation expense . the esop loan was repaid in full during the quarter ended december 31 , 2015 and , as a result , no esop compensation expense was recognized during the remainder of the 2016 fiscal year . the increase in data processing expense is due primarily to the replacement of customer magnetic strip debit cards with emv chip debit cards and data processing expense related to sba lending activities . income tax expense . the company recognized an income tax expense of $ 2.5 million for the year ended september 30 , 2017 , compared to income tax benefit of $ 2.3 million for the year ended september 30 , 2016 and income tax expense of $ 1.6 million for the year ended september 30 , 2015. the effective tax rate was 21.3 % and 18.9 % , for the years ended september 30 , 2017 and 2015 , respectively . the tax benefit for 2016 was due to the aforementioned recognition of the $ 4.7 million tax credit as a result of the cbed project investment . 45 risk management overview . managing risk is essential to successfully managing a financial institution . our most prominent risk exposures are credit risk , interest rate risk and market risk . credit risk is the risk of not collecting the interest and or the principal balance of a loan or investment when it is due . interest rate risk is the potential reduction of interest income as a result of changes in interest rates . market risk arises from fluctuations in interest rates that may result in changes in the values of financial instruments , such as available-for-sale securities that are accounted for on a mark-to-market basis . other risks that we face are operational risks , liquidity risks and
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2,513 | it also features an easy-to-navigate software architecture , a vivid color touch screen and a micro-usb connection that supports both a rechargeable battery and t : connect , our custom cloud-based data management application that provides a fast , easy and visual way to display therapy management data from the pump and supported blood glucose meters . we began commercial sales of our first product , t : slim , in august 2012. during 2015 , we commenced commercial sales of two additional insulin pumps : t : flex in may 2015 and t : slim g4 in september 2015. since inception , we have derived nearly all of our revenue from the sale of insulin pumps and associated supplies in the united states . we consider the number of units shipped per quarter to be an important metric for managing our business . we have shipped nearly 34,000 insulin pumps since the initiation of our commercial efforts in 2012. pump shipments are broken down by product , and by quarter as follows : 56 replace_table_token_4_th ( 1 ) this table does not reflect returns or exchanges of pump products that occurred in the ordinary course of business . ( 2 ) during the fourth quarter of 2015 , 148 t : slim pumps and two t : flex pumps originally shipped in the third quarter of 2015 were exchanged for t : slim g4 pumps under a limited product exchange program ( as described below ) . amounts for the fourth quarter of 2015 in the table above are adjusted to reflect the impact of the exchange program . for the years ended december 31 , 2015 , 2014 and 2013 , our sales were $ 72.9 million , $ 49.7 million and $ 29.0 million , respectively . for the years ended december 31 , 2015 , 2014 and 2013 , our net loss was $ 72.4 million , $ 79.5 million and $ 63.1 million , respectively . our accumulated deficit as of december 31 , 2015 was $ 321.1 million . in connection with t : slim g4 commercial launch , we offered a limited product exchange program , referred to as the exchange program for eligible customers . the exchange program offered customers who received a t : slim or t : flex pump on or after august 1 , 2015 , a limited period in which to elect to exchange their pump for a t : slim g4 . the ability to elect an exchange ended in the early part of october 2015. at the close of the exchange program , a total of 150 t : slim or t : flex pumps were exchanged for t : slim g4 pumps . we accrued for estimated exchanges and associated costs by reducing sales and deferring cost of sales in the third quarter of 2015. the deferred sales and the cost of sales under the exchange program were recognized either upon delivery of t : slim g4 to the customer during the fourth quarter of 2015 or expiration of the program for those that were not exchanged . in the fourth quarter , t : slim g4 made up majority of our overall shipments . while there is some cannibalization of t : slim , and this high percentage may also reflect some pent up demand , we also believe this trend demonstrates that there is significant interest in this product . we expect that t : slim g4 will represent the largest percentage of our pump shipments in 2016. a substantial portion of the purchase price of an insulin pump is typically paid for by third-party payors , including private insurance companies , preferred provider organizations and other managed care providers . access to adequate coverage and reimbursement for our current and future products by third-party payors is essential to the acceptance of our products by customers . future sales of our current and future products will be limited unless our customers can rely on third-party payors to pay for all or part of the associated purchase cost . in circumstances in which we do not have contracts established with third-party payors , to the extent possible , we utilize our network of national and regional distributors to service our customers . 57 we believe we can achieve profitability because our proprietary technology platform will allow us to maximize efficiencies in the development , production and sale of our products . by offering a family of products , all of which are based on our proprietary technology platform , we believe we can develop and bring to market products more rapidly , while significantly reducing our design and development costs . due to shared product design features , ou r production system is adaptable to new products and we intend to leverage our shared manufacturing infrastructure to reduce our product costs and drive operational efficiencies . further , we expect to continue to increase production volume and to reduce th e per-unit production overhead cost for our pump products and their associated disposable cartridges over time . by expanding our product offerings to address people in different segments of the large and growing insulin-dependent diabetes market , we believ e we can increase the productivity of our sales , clinical and marketing organization , and utilize the expertise of our customer , technical and support services , thereby improving our operating margin . from inception through december 31 , 2015 , we have primarily financed our operations through sales of equity securities , and to a lesser extent , debt financings . we expect to continue to incur net losses for the next several years , and may require additional capital through equity and debt financings in order to fund our operations until we reach a level of revenue adequate to support our cost structure . story_separator_special_tag sales from t : slim pump accounted for 86 % and 90 % of sales , respectively , for the years ended december 31 , 2014 and 2013 , while pump-related supplies primarily accounted for the remainder in each year . sales of accessories were not material in either year . the growth in sales was primarily driven by a 67 % increase in t : slim pump shipments from 6,472 in 2013 to 10,822 in 2014. we expanded the number of sales territories in the united states from 36 at the end of 2013 to 60 at the end of the second quarter of 2014. as a result of our sales force expansion , our field personnel experienced some initial disruption in their sales productivity as their territories were realigned and responsibilities adjusted . 61 sales to distributors accounted for 75 % and 69 % of our total sales for the years ended december 31 , 2014 and 2013 , respectively . the increase in the percentage of our sales to distributors is primarily attributable to certain arrangements between insurance payors and our distributors that becam e effective during the third quarter of 2014. as a result of these arrangements , a portion of our business that previously involved an opportunity to make a direct sale to the customer transitioned to an opportunity to make a sale through a distributor . th e new arrangement afforded certain members easier access to our products as an in-network benefit and provided access to our products to a large portion of members who were previously unable to obtain coverage for our products at all . cost of sales and gross profit . our cost of sales in 2014 was $ 34.5 million , resulting in gross profit of $ 15.2 million , compared to $ 22.8 million in cost of sales and gross profit of $ 6.2 million in 2013. the gross margin in 2014 was 31 % , compared to 21 % in 2013. the improvement in the gross margin was primarily a result of manufacturing efficiencies associated with an increase in production output and improvement in our manufacturing processes . our pump manufacturing overhead spending decreased 19 % while our pump units produced increased 56 % in 2014 compared to 2013 , and our cartridge manufacturing overhead spending increased 40 % while our cartridge units produced increased 143 % in 2014 compared to 2013. included in cost of sales for the year ended december 31 , 2014 were costs of $ 0.4 million associated with our voluntary product recall of selected lots of cartridges initiated in january 2014. the voluntary recall resulted in a less than one percentage point reduction in the gross margin for the year ended december 31 , 2014. by comparison , the 2013 gross margin included $ 1.3 million of recall-associated costs , or a reduction of the gross margin of five percentage points . also included in cost of sales in 2013 were costs of $ 1.1 million that were previously deferred at the end of the fourth quarter of 2012 due to our lack of history for estimating product returns at that time . these costs , along with the previously deferred sales of $ 1.9 million recognized in the first quarter of 2013 , resulted in a two-percentage point increase in gross margin for the year ended december 31 , 2013. selling , general and administrative expenses . sg & a expenses increased 69 % to $ 75.1 million in 2014 from $ 44.5 million in 2013. the increase in sg & a expenses was primarily associated with the expansion of our commercial operations during 2014. as of december 31 , 2014 , our headcount for sales , general and administrative functions increased 43 % compared to december 31 , 2013. this includes an expansion from 36 to 60 territories during 2014 , as well as the growth of the administrative infrastructure to support operations . territories are maintained by sales representatives , field clinical specialists , managed care liaisons , additional sales management and other customer support personnel . employee-related expenses for our sales , general and administrative functions comprise the majority of the sg & a expenses . such employee-related expenses increased $ 24.9 million during 2014 compared to 2013 , including an increase of $ 8.3 million in stock-based compensation associated with equity awards . sg & a expenses also increased $ 5.7 million associated with marketing and promotional activities , tradeshows , travel expenses and facility expansion . research and development expenses . r & d expenses increased 43 % to $ 15.8 million in 2014 from $ 11.1 million in 2013. the increase in r & d expenses in 2014 consisted primarily of an increase of $ 2.5 million in employee-related expenses . at december 31 , 2014 , our headcount for research and development functions increased 17 % compared to december 31 , 2013. the increase in r & d expenses also consisted of a milestone payment of $ 1.0 million to dexcom under our development and commercialization agreement related to our submission of a pma for t : slim g4 to the fda in july 2014. other income ( expense ) . other expense in 2014 was $ 3.8 million , compared to $ 13.7 million in 2013. other expense in 2014 primarily consisted of interest expense associated with the term loan agreement with capital royalty partners in december 2012 and subsequently amended and restated in april 2014 , and further amended in june 2014 , february 2015 and january 2016. we borrowed $ 30 million under the term loan agreement with capital royalty partners in january 2013. in comparison , other expense in 2013 was primarily comprised of $ 9.0 million of expense associated with the revaluation of the fair value of common and preferred stock warrants and $ 4.7 million of interest expense associated with our term loan agreement with capital royalty partners .
| liquidity and capital resources at december 31 , 2015 , we had $ 73.1 million in cash and cash equivalents and short-term investments , which included $ 2.0 million of restricted cash . we borrowed $ 15.0 million in january 2016 , under the third amendment to our term loan agreement with capital royalty partners . the third amendment also provides us with a one-time option to borrow up to an additional $ 35.0 million in increments of $ 5.0 million on or before december 31 , 2016. we believe that our cash on hand , cash generated from operations , cash available under the third amendment to our term loan agreement with capital royalty partners , and proceeds from the exercise of options and warrants , as well as proceeds from employee contributions for the purchase of our common stock through our espp , will be sufficient to satisfy our liquidity requirements for at least the next 12 months . we expect that our sales performance and the resulting operating income or loss , as well as the status of each of our new product development programs , will significantly impact our cash management decisions . we have utilized , and may continue to utilize , debt arrangements with debt providers and financial institutions to finance our operations . factors such as interest rates , repayment terms and available cash will impact our decision to continue to utilize debt arrangements as a source of cash . in november 2013 , we completed an initial public offering of common stock that resulted in net proceeds of approximately $ 125.0 million , and in the first quarter of 2015 we completed a public offering of common stock that resulted in net proceeds of approximately $ 64.9 million . in the future , we may give consideration to additional public offerings of equity securities as a source of financing .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources at december 31 , 2015 , we had $ 73.1 million in cash and cash equivalents and short-term investments , which included $ 2.0 million of restricted cash . we borrowed $ 15.0 million in january 2016 , under the third amendment to our term loan agreement with capital royalty partners . the third amendment also provides us with a one-time option to borrow up to an additional $ 35.0 million in increments of $ 5.0 million on or before december 31 , 2016. we believe that our cash on hand , cash generated from operations , cash available under the third amendment to our term loan agreement with capital royalty partners , and proceeds from the exercise of options and warrants , as well as proceeds from employee contributions for the purchase of our common stock through our espp , will be sufficient to satisfy our liquidity requirements for at least the next 12 months . we expect that our sales performance and the resulting operating income or loss , as well as the status of each of our new product development programs , will significantly impact our cash management decisions . we have utilized , and may continue to utilize , debt arrangements with debt providers and financial institutions to finance our operations . factors such as interest rates , repayment terms and available cash will impact our decision to continue to utilize debt arrangements as a source of cash . in november 2013 , we completed an initial public offering of common stock that resulted in net proceeds of approximately $ 125.0 million , and in the first quarter of 2015 we completed a public offering of common stock that resulted in net proceeds of approximately $ 64.9 million . in the future , we may give consideration to additional public offerings of equity securities as a source of financing .
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Suspicious Activity Report : it also features an easy-to-navigate software architecture , a vivid color touch screen and a micro-usb connection that supports both a rechargeable battery and t : connect , our custom cloud-based data management application that provides a fast , easy and visual way to display therapy management data from the pump and supported blood glucose meters . we began commercial sales of our first product , t : slim , in august 2012. during 2015 , we commenced commercial sales of two additional insulin pumps : t : flex in may 2015 and t : slim g4 in september 2015. since inception , we have derived nearly all of our revenue from the sale of insulin pumps and associated supplies in the united states . we consider the number of units shipped per quarter to be an important metric for managing our business . we have shipped nearly 34,000 insulin pumps since the initiation of our commercial efforts in 2012. pump shipments are broken down by product , and by quarter as follows : 56 replace_table_token_4_th ( 1 ) this table does not reflect returns or exchanges of pump products that occurred in the ordinary course of business . ( 2 ) during the fourth quarter of 2015 , 148 t : slim pumps and two t : flex pumps originally shipped in the third quarter of 2015 were exchanged for t : slim g4 pumps under a limited product exchange program ( as described below ) . amounts for the fourth quarter of 2015 in the table above are adjusted to reflect the impact of the exchange program . for the years ended december 31 , 2015 , 2014 and 2013 , our sales were $ 72.9 million , $ 49.7 million and $ 29.0 million , respectively . for the years ended december 31 , 2015 , 2014 and 2013 , our net loss was $ 72.4 million , $ 79.5 million and $ 63.1 million , respectively . our accumulated deficit as of december 31 , 2015 was $ 321.1 million . in connection with t : slim g4 commercial launch , we offered a limited product exchange program , referred to as the exchange program for eligible customers . the exchange program offered customers who received a t : slim or t : flex pump on or after august 1 , 2015 , a limited period in which to elect to exchange their pump for a t : slim g4 . the ability to elect an exchange ended in the early part of october 2015. at the close of the exchange program , a total of 150 t : slim or t : flex pumps were exchanged for t : slim g4 pumps . we accrued for estimated exchanges and associated costs by reducing sales and deferring cost of sales in the third quarter of 2015. the deferred sales and the cost of sales under the exchange program were recognized either upon delivery of t : slim g4 to the customer during the fourth quarter of 2015 or expiration of the program for those that were not exchanged . in the fourth quarter , t : slim g4 made up majority of our overall shipments . while there is some cannibalization of t : slim , and this high percentage may also reflect some pent up demand , we also believe this trend demonstrates that there is significant interest in this product . we expect that t : slim g4 will represent the largest percentage of our pump shipments in 2016. a substantial portion of the purchase price of an insulin pump is typically paid for by third-party payors , including private insurance companies , preferred provider organizations and other managed care providers . access to adequate coverage and reimbursement for our current and future products by third-party payors is essential to the acceptance of our products by customers . future sales of our current and future products will be limited unless our customers can rely on third-party payors to pay for all or part of the associated purchase cost . in circumstances in which we do not have contracts established with third-party payors , to the extent possible , we utilize our network of national and regional distributors to service our customers . 57 we believe we can achieve profitability because our proprietary technology platform will allow us to maximize efficiencies in the development , production and sale of our products . by offering a family of products , all of which are based on our proprietary technology platform , we believe we can develop and bring to market products more rapidly , while significantly reducing our design and development costs . due to shared product design features , ou r production system is adaptable to new products and we intend to leverage our shared manufacturing infrastructure to reduce our product costs and drive operational efficiencies . further , we expect to continue to increase production volume and to reduce th e per-unit production overhead cost for our pump products and their associated disposable cartridges over time . by expanding our product offerings to address people in different segments of the large and growing insulin-dependent diabetes market , we believ e we can increase the productivity of our sales , clinical and marketing organization , and utilize the expertise of our customer , technical and support services , thereby improving our operating margin . from inception through december 31 , 2015 , we have primarily financed our operations through sales of equity securities , and to a lesser extent , debt financings . we expect to continue to incur net losses for the next several years , and may require additional capital through equity and debt financings in order to fund our operations until we reach a level of revenue adequate to support our cost structure . story_separator_special_tag sales from t : slim pump accounted for 86 % and 90 % of sales , respectively , for the years ended december 31 , 2014 and 2013 , while pump-related supplies primarily accounted for the remainder in each year . sales of accessories were not material in either year . the growth in sales was primarily driven by a 67 % increase in t : slim pump shipments from 6,472 in 2013 to 10,822 in 2014. we expanded the number of sales territories in the united states from 36 at the end of 2013 to 60 at the end of the second quarter of 2014. as a result of our sales force expansion , our field personnel experienced some initial disruption in their sales productivity as their territories were realigned and responsibilities adjusted . 61 sales to distributors accounted for 75 % and 69 % of our total sales for the years ended december 31 , 2014 and 2013 , respectively . the increase in the percentage of our sales to distributors is primarily attributable to certain arrangements between insurance payors and our distributors that becam e effective during the third quarter of 2014. as a result of these arrangements , a portion of our business that previously involved an opportunity to make a direct sale to the customer transitioned to an opportunity to make a sale through a distributor . th e new arrangement afforded certain members easier access to our products as an in-network benefit and provided access to our products to a large portion of members who were previously unable to obtain coverage for our products at all . cost of sales and gross profit . our cost of sales in 2014 was $ 34.5 million , resulting in gross profit of $ 15.2 million , compared to $ 22.8 million in cost of sales and gross profit of $ 6.2 million in 2013. the gross margin in 2014 was 31 % , compared to 21 % in 2013. the improvement in the gross margin was primarily a result of manufacturing efficiencies associated with an increase in production output and improvement in our manufacturing processes . our pump manufacturing overhead spending decreased 19 % while our pump units produced increased 56 % in 2014 compared to 2013 , and our cartridge manufacturing overhead spending increased 40 % while our cartridge units produced increased 143 % in 2014 compared to 2013. included in cost of sales for the year ended december 31 , 2014 were costs of $ 0.4 million associated with our voluntary product recall of selected lots of cartridges initiated in january 2014. the voluntary recall resulted in a less than one percentage point reduction in the gross margin for the year ended december 31 , 2014. by comparison , the 2013 gross margin included $ 1.3 million of recall-associated costs , or a reduction of the gross margin of five percentage points . also included in cost of sales in 2013 were costs of $ 1.1 million that were previously deferred at the end of the fourth quarter of 2012 due to our lack of history for estimating product returns at that time . these costs , along with the previously deferred sales of $ 1.9 million recognized in the first quarter of 2013 , resulted in a two-percentage point increase in gross margin for the year ended december 31 , 2013. selling , general and administrative expenses . sg & a expenses increased 69 % to $ 75.1 million in 2014 from $ 44.5 million in 2013. the increase in sg & a expenses was primarily associated with the expansion of our commercial operations during 2014. as of december 31 , 2014 , our headcount for sales , general and administrative functions increased 43 % compared to december 31 , 2013. this includes an expansion from 36 to 60 territories during 2014 , as well as the growth of the administrative infrastructure to support operations . territories are maintained by sales representatives , field clinical specialists , managed care liaisons , additional sales management and other customer support personnel . employee-related expenses for our sales , general and administrative functions comprise the majority of the sg & a expenses . such employee-related expenses increased $ 24.9 million during 2014 compared to 2013 , including an increase of $ 8.3 million in stock-based compensation associated with equity awards . sg & a expenses also increased $ 5.7 million associated with marketing and promotional activities , tradeshows , travel expenses and facility expansion . research and development expenses . r & d expenses increased 43 % to $ 15.8 million in 2014 from $ 11.1 million in 2013. the increase in r & d expenses in 2014 consisted primarily of an increase of $ 2.5 million in employee-related expenses . at december 31 , 2014 , our headcount for research and development functions increased 17 % compared to december 31 , 2013. the increase in r & d expenses also consisted of a milestone payment of $ 1.0 million to dexcom under our development and commercialization agreement related to our submission of a pma for t : slim g4 to the fda in july 2014. other income ( expense ) . other expense in 2014 was $ 3.8 million , compared to $ 13.7 million in 2013. other expense in 2014 primarily consisted of interest expense associated with the term loan agreement with capital royalty partners in december 2012 and subsequently amended and restated in april 2014 , and further amended in june 2014 , february 2015 and january 2016. we borrowed $ 30 million under the term loan agreement with capital royalty partners in january 2013. in comparison , other expense in 2013 was primarily comprised of $ 9.0 million of expense associated with the revaluation of the fair value of common and preferred stock warrants and $ 4.7 million of interest expense associated with our term loan agreement with capital royalty partners .
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2,514 | financial operations overview revenue to date , we have not generated any revenues . our ability to generate product revenues , which we do not expect will occur for many years , if ever , will depend heavily on the successful development and eventual commercialization of our product candidates . research and development expenses research and development expenses consist of costs associated with our research activities , including our drug discovery efforts , and the development of our therapeutic product candidates and companion diagnostics . our research and development expenses consist of : employee-related expenses , including salaries , benefits , travel and stock-based compensation expense ; 74 external research and development expenses incurred under arrangements with third parties , such as contract research organizations , or cros , manufacturing organizations and consultants , including our scientific advisory board ; license fees ; and facilities , depreciation and other allocated expenses , which include direct and allocated expenses for rent and maintenance of facilities , depreciation of leasehold improvements and equipment , and laboratory and other supplies . we expense research and development costs to operations as incurred . we account for nonrefundable advance payments for goods and services that will be used in future research and development activities as expenses when the service has been performed or when the goods have been received , rather than when the payment is made . we use our employee and infrastructure resources across multiple research and development projects . we do not allocate employee-related expenses or depreciation to any particular project . because all of our development projects are in preclinical development , we do not track research and development costs by project . the components of our research and development costs are described in more detail in `` ยresults of operations . `` we anticipate that our research and development expenses will increase significantly in future periods as we increase the scope and rate of our drug discovery efforts and begin costlier development activities , including clinical trials for our current and additional product candidates in the future . the successful development of our product candidates is highly uncertain . at this time , we can not reasonably estimate or know the nature , timing and estimated costs of the efforts that will be necessary to complete development of our product candidates or the period , if any , in which material net cash inflows from our product candidates may commence . this is due to the numerous risks and uncertainties associated with developing drugs , including the uncertainty of : the scope , rate of progress and expense of our drug discovery efforts and other research and development activities ; the potential benefits of our product candidates over other therapies ; our ability to market , commercialize and achieve market acceptance for any of our product candidates that we are developing or may develop in the future ; clinical trial results ; the terms and timing of regulatory approvals ; and the expense of filing , prosecuting , defending and enforcing patent claims and other intellectual property rights . a change in the outcome of any of these variables with respect to the development of a product candidate could mean a significant change in the costs and timing associated with the development of that product candidate . for example , if the fda or other regulatory authority were to require us to conduct clinical trials beyond those which we currently anticipate will be required for the completion of clinical development of a product candidate or if we experience significant delays in enrollment in any clinical trials , we could be required to expend significant additional financial resources and time on the completion of clinical development . 75 general and administrative expenses general and administrative expenses consist primarily of salaries and related costs for personnel , including stock-based compensation expense , in our executive , finance and business development functions . other general and administrative expenses include allocated facility costs and professional fees for legal , patent , investor and public relations , consulting , insurance premiums , and accounting services . interest income prior to september 30 , 2011 , our cash and cash equivalents were invested in non-interest-bearing accounts . as a result , we did n't earn interest income until the last three months of 2011. accretion of preferred stock prior to the conversion of our preferred stock into 11,740,794 shares of common stock upon the closing of our initial public offering in february 2012 , our preferred stock was redeemable beginning in 2016 at its original issue price plus any declared but unpaid dividends upon a specified vote of the preferred stockholders . accretion of preferred stock reflects the periodic accretion of issuance costs on our preferred stock to its redemption value . critical accounting policies and significant judgments and estimates our management 's discussion and analysis of our financial condition and results of operations is based on our financial statements , which we have prepared in accordance with u.s. generally accepted accounting principles . the preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities and expenses and the disclosure of contingent assets and liabilities in our financial statements . on an ongoing basis , we evaluate our estimates and judgments , including those related to accrued expenses and stock-based compensation described in greater detail below . we base our estimates on our limited historical experience , known trends and events and various other factors that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . story_separator_special_tag to the extent that we raise additional capital through the sale of equity or convertible debt securities , the ownership 82 interest of our existing stockholders will be diluted , and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our existing stockholders . debt financing , if available , may involve agreements that include covenants limiting or restricting our ability to take specific actions , such as incurring additional debt , making capital expenditures or declaring dividends . if we raise additional funds through collaborations , strategic alliances or licensing arrangements with third parties , we may have to relinquish valuable rights to our technologies , future revenue streams , research programs or product candidates or grant licenses on terms that may not be favorable to us . if we are unable to raise additional funds through equity or debt financings when needed , we may be required to delay , limit , reduce or terminate our product development or future commercialization efforts or grant rights to develop and market product candidates that we would otherwise prefer to develop and market ourselves . contractual obligations and commitments the following table summarizes our contractual obligations at december 31 , 2012. replace_table_token_10_th ( 1 ) as discussed in note 11 to the financial statements appearing elsewhere in this annual report on form 10-k , we have executed several agreements to license intellectual property . the license agreements require us to pay upfront license fees and ongoing annual license maintenance fees , totaling a minimum of $ 150,000 per year beginning in 2013 up to a maximum amount of $ 480,000 per year beginning in 2017 , as well as reimburse certain patent costs incurred by the licensors , as applicable . we have not included maintenance fees in the table above since the minimum annual payments are perpetual and the agreements are cancelable by us at any time upon prior written notice to the licensor . in july 2012 , we entered into a license agreement with pfizer inc. , ( `` pfizer `` ) , under which pfizer granted us worldwide , exclusive rights to research , develop , manufacture and commercialize products containing certain of pfizer 's inhibitors of focal adhesion kinase ( the `` products `` ) for all therapeutic , diagnostic and prophylactic uses in humans . we have the right to grant sublicenses under the foregoing licensed rights , subject to certain restrictions . we are solely responsible , at our own expense , for the clinical development of the products , which is to be conducted in accordance with an agreed-upon development plan . we are also responsible for all manufacturing and commercialization activities at our own expense . pfizer is required to provide us with an initial quantity of clinical supply of one of the products for an agreed upon price . we made a one-time cash payment to pfizer in the amount of $ 1.5 million and issued to pfizer 192,012 shares of our common stock . pfizer is also eligible to receive up to $ 2 million in developmental milestones and up to an additional $ 125 million based on the successful attainment of regulatory and commercial sales milestones . pfizer is also eligible to receive high single to mid double digit royalties on future net sales of products . our royalty obligations with respect to each product in each country begin on the date of first commercial sale of the product in that country , and end on the later of 10 years after the date of first commercial sale of the product in that country or the date of expiration or abandonment of the last claim contained in any issued patent or patent application licensed by pfizer to us that covers the product in that country . under our drug discovery platform license agreement , which we amended and restated in january 2012 , we also have agreed to make milestone payments to the whitehead institute upon achieving various development , regulatory and commercialization milestones . for each licensed product , we agreed to make milestone payments of up to an aggregate of $ 1,560,000 plus an additional amount for 83 each subsequent approval of additional indications for a maximum number of licensed products . for each identified product that is not a licensed product , we agreed to make milestone payments of up to an aggregate of $ 815,000 plus an additional amount for each subsequent approval of additional indications for a maximum number of identified products . each type of specified milestone payment is payable only for each of the maximum number of licensed products and the maximum number of identified products , as the case may be , to achieve the applicable milestone . in addition , a separate milestone payment is due upon the first commercial sale of each licensed product or identified product that is a diagnostic or prognostic test . a single additional milestone payment is due for the first issuance of licensed patent rights in the united states , the united kingdom , france , germany , spain or italy . in addition , we have agreed to pay the whitehead institute royalties as a percentage of net sales of licensed products . the royalty rate is in the low single digits as a percentage of net sales for licensed products that are therapeutics , the mid single digits for licensed products that are diagnostics or prognostics and less than one percent for identified products . under our license agreement with poniard pharmaceuticals , inc. , or poniard , that we entered into in november 2011 relating to vs-4718 and vs-5095 and other compounds covered by a licensed patent right under that agreement that have the inhibition of focal adhesion kinase as a primary mode of action , we paid an upfront license fee and agreed to pay poniard milestone payments of up to an
| liquidity and capital resources sources of liquidity to date , we have not generated any revenues . we have financed our operations to date through private placements of our preferred stock and our initial public offering , which we completed in february 2012. as of december 31 , 2012 , we had received $ 68.1 million in net proceeds from the issuance of preferred stock and $ 56.8 million in net proceeds from our initial public offering in february 2012. as of december 31 , 2012 , we had $ 91.5 million in cash , cash equivalents , short-term investments and long-term investments . we primarily invest our cash , cash equivalents and investments in a u.s. treasury money market fund , u.s. agency notes and corporate bonds . 80 cash flows the following table sets forth the primary sources and uses of cash for each of the periods set forth below . replace_table_token_9_th operating activities . the use of cash in all periods resulted primarily from our net losses adjusted for non-cash charges and favorable changes in the components of working capital . the increase in cash used in operating activities for the year ended december 31 , 2012 compared to the year ended december 31 , 2011 is due to an increase in research and development expenses as we increased our research and development headcount and increased spending on external research and development costs . the significant increase in cash used in operating activities for the year ended december 31 , 2011 compared to the period from august 4 , 2010 ( inception ) to december 31 , 2010 is due to an increase in research and development expenses as we increased our research and development headcount , increased spending on external research and development costs and from increases in the balance of accounts payable , accrued expenses and deferred rent .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources sources of liquidity to date , we have not generated any revenues . we have financed our operations to date through private placements of our preferred stock and our initial public offering , which we completed in february 2012. as of december 31 , 2012 , we had received $ 68.1 million in net proceeds from the issuance of preferred stock and $ 56.8 million in net proceeds from our initial public offering in february 2012. as of december 31 , 2012 , we had $ 91.5 million in cash , cash equivalents , short-term investments and long-term investments . we primarily invest our cash , cash equivalents and investments in a u.s. treasury money market fund , u.s. agency notes and corporate bonds . 80 cash flows the following table sets forth the primary sources and uses of cash for each of the periods set forth below . replace_table_token_9_th operating activities . the use of cash in all periods resulted primarily from our net losses adjusted for non-cash charges and favorable changes in the components of working capital . the increase in cash used in operating activities for the year ended december 31 , 2012 compared to the year ended december 31 , 2011 is due to an increase in research and development expenses as we increased our research and development headcount and increased spending on external research and development costs . the significant increase in cash used in operating activities for the year ended december 31 , 2011 compared to the period from august 4 , 2010 ( inception ) to december 31 , 2010 is due to an increase in research and development expenses as we increased our research and development headcount , increased spending on external research and development costs and from increases in the balance of accounts payable , accrued expenses and deferred rent .
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Suspicious Activity Report : financial operations overview revenue to date , we have not generated any revenues . our ability to generate product revenues , which we do not expect will occur for many years , if ever , will depend heavily on the successful development and eventual commercialization of our product candidates . research and development expenses research and development expenses consist of costs associated with our research activities , including our drug discovery efforts , and the development of our therapeutic product candidates and companion diagnostics . our research and development expenses consist of : employee-related expenses , including salaries , benefits , travel and stock-based compensation expense ; 74 external research and development expenses incurred under arrangements with third parties , such as contract research organizations , or cros , manufacturing organizations and consultants , including our scientific advisory board ; license fees ; and facilities , depreciation and other allocated expenses , which include direct and allocated expenses for rent and maintenance of facilities , depreciation of leasehold improvements and equipment , and laboratory and other supplies . we expense research and development costs to operations as incurred . we account for nonrefundable advance payments for goods and services that will be used in future research and development activities as expenses when the service has been performed or when the goods have been received , rather than when the payment is made . we use our employee and infrastructure resources across multiple research and development projects . we do not allocate employee-related expenses or depreciation to any particular project . because all of our development projects are in preclinical development , we do not track research and development costs by project . the components of our research and development costs are described in more detail in `` ยresults of operations . `` we anticipate that our research and development expenses will increase significantly in future periods as we increase the scope and rate of our drug discovery efforts and begin costlier development activities , including clinical trials for our current and additional product candidates in the future . the successful development of our product candidates is highly uncertain . at this time , we can not reasonably estimate or know the nature , timing and estimated costs of the efforts that will be necessary to complete development of our product candidates or the period , if any , in which material net cash inflows from our product candidates may commence . this is due to the numerous risks and uncertainties associated with developing drugs , including the uncertainty of : the scope , rate of progress and expense of our drug discovery efforts and other research and development activities ; the potential benefits of our product candidates over other therapies ; our ability to market , commercialize and achieve market acceptance for any of our product candidates that we are developing or may develop in the future ; clinical trial results ; the terms and timing of regulatory approvals ; and the expense of filing , prosecuting , defending and enforcing patent claims and other intellectual property rights . a change in the outcome of any of these variables with respect to the development of a product candidate could mean a significant change in the costs and timing associated with the development of that product candidate . for example , if the fda or other regulatory authority were to require us to conduct clinical trials beyond those which we currently anticipate will be required for the completion of clinical development of a product candidate or if we experience significant delays in enrollment in any clinical trials , we could be required to expend significant additional financial resources and time on the completion of clinical development . 75 general and administrative expenses general and administrative expenses consist primarily of salaries and related costs for personnel , including stock-based compensation expense , in our executive , finance and business development functions . other general and administrative expenses include allocated facility costs and professional fees for legal , patent , investor and public relations , consulting , insurance premiums , and accounting services . interest income prior to september 30 , 2011 , our cash and cash equivalents were invested in non-interest-bearing accounts . as a result , we did n't earn interest income until the last three months of 2011. accretion of preferred stock prior to the conversion of our preferred stock into 11,740,794 shares of common stock upon the closing of our initial public offering in february 2012 , our preferred stock was redeemable beginning in 2016 at its original issue price plus any declared but unpaid dividends upon a specified vote of the preferred stockholders . accretion of preferred stock reflects the periodic accretion of issuance costs on our preferred stock to its redemption value . critical accounting policies and significant judgments and estimates our management 's discussion and analysis of our financial condition and results of operations is based on our financial statements , which we have prepared in accordance with u.s. generally accepted accounting principles . the preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets , liabilities and expenses and the disclosure of contingent assets and liabilities in our financial statements . on an ongoing basis , we evaluate our estimates and judgments , including those related to accrued expenses and stock-based compensation described in greater detail below . we base our estimates on our limited historical experience , known trends and events and various other factors that we believe are reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . story_separator_special_tag to the extent that we raise additional capital through the sale of equity or convertible debt securities , the ownership 82 interest of our existing stockholders will be diluted , and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our existing stockholders . debt financing , if available , may involve agreements that include covenants limiting or restricting our ability to take specific actions , such as incurring additional debt , making capital expenditures or declaring dividends . if we raise additional funds through collaborations , strategic alliances or licensing arrangements with third parties , we may have to relinquish valuable rights to our technologies , future revenue streams , research programs or product candidates or grant licenses on terms that may not be favorable to us . if we are unable to raise additional funds through equity or debt financings when needed , we may be required to delay , limit , reduce or terminate our product development or future commercialization efforts or grant rights to develop and market product candidates that we would otherwise prefer to develop and market ourselves . contractual obligations and commitments the following table summarizes our contractual obligations at december 31 , 2012. replace_table_token_10_th ( 1 ) as discussed in note 11 to the financial statements appearing elsewhere in this annual report on form 10-k , we have executed several agreements to license intellectual property . the license agreements require us to pay upfront license fees and ongoing annual license maintenance fees , totaling a minimum of $ 150,000 per year beginning in 2013 up to a maximum amount of $ 480,000 per year beginning in 2017 , as well as reimburse certain patent costs incurred by the licensors , as applicable . we have not included maintenance fees in the table above since the minimum annual payments are perpetual and the agreements are cancelable by us at any time upon prior written notice to the licensor . in july 2012 , we entered into a license agreement with pfizer inc. , ( `` pfizer `` ) , under which pfizer granted us worldwide , exclusive rights to research , develop , manufacture and commercialize products containing certain of pfizer 's inhibitors of focal adhesion kinase ( the `` products `` ) for all therapeutic , diagnostic and prophylactic uses in humans . we have the right to grant sublicenses under the foregoing licensed rights , subject to certain restrictions . we are solely responsible , at our own expense , for the clinical development of the products , which is to be conducted in accordance with an agreed-upon development plan . we are also responsible for all manufacturing and commercialization activities at our own expense . pfizer is required to provide us with an initial quantity of clinical supply of one of the products for an agreed upon price . we made a one-time cash payment to pfizer in the amount of $ 1.5 million and issued to pfizer 192,012 shares of our common stock . pfizer is also eligible to receive up to $ 2 million in developmental milestones and up to an additional $ 125 million based on the successful attainment of regulatory and commercial sales milestones . pfizer is also eligible to receive high single to mid double digit royalties on future net sales of products . our royalty obligations with respect to each product in each country begin on the date of first commercial sale of the product in that country , and end on the later of 10 years after the date of first commercial sale of the product in that country or the date of expiration or abandonment of the last claim contained in any issued patent or patent application licensed by pfizer to us that covers the product in that country . under our drug discovery platform license agreement , which we amended and restated in january 2012 , we also have agreed to make milestone payments to the whitehead institute upon achieving various development , regulatory and commercialization milestones . for each licensed product , we agreed to make milestone payments of up to an aggregate of $ 1,560,000 plus an additional amount for 83 each subsequent approval of additional indications for a maximum number of licensed products . for each identified product that is not a licensed product , we agreed to make milestone payments of up to an aggregate of $ 815,000 plus an additional amount for each subsequent approval of additional indications for a maximum number of identified products . each type of specified milestone payment is payable only for each of the maximum number of licensed products and the maximum number of identified products , as the case may be , to achieve the applicable milestone . in addition , a separate milestone payment is due upon the first commercial sale of each licensed product or identified product that is a diagnostic or prognostic test . a single additional milestone payment is due for the first issuance of licensed patent rights in the united states , the united kingdom , france , germany , spain or italy . in addition , we have agreed to pay the whitehead institute royalties as a percentage of net sales of licensed products . the royalty rate is in the low single digits as a percentage of net sales for licensed products that are therapeutics , the mid single digits for licensed products that are diagnostics or prognostics and less than one percent for identified products . under our license agreement with poniard pharmaceuticals , inc. , or poniard , that we entered into in november 2011 relating to vs-4718 and vs-5095 and other compounds covered by a licensed patent right under that agreement that have the inhibition of focal adhesion kinase as a primary mode of action , we paid an upfront license fee and agreed to pay poniard milestone payments of up to an
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2,515 | as a result of the acquisition , the former owners of cy-srre and lry hold a majority interest in the combined entity . generally accepted accounting principles require in certain circumstances that a company whose shareholders retain the majority voting interest in the combined business be treated as the acquirer for financial reporting purposes . accordingly , the acquisition has been accounted for as a โ reverse acquisition โ arrangement whereby cy-srre and lry are deemed to have purchased srre . however , srre remains the legal entity and the registrant for securities and exchange commission reporting purposes . the historical financial statements prior to october 5 , 2004 are those of cy-srre and lry and their subsidiaries . all equity information and per share data prior to the acquisition have been restated to reflect the stock issuance as a recapitalization of cy-srre and lry . srre and its subsidiaries , namely , cy-srre , lry , shanghai xin ji yang real estate consultation company limited ( โ shxjy โ ) , shanghai shang yang investment management and consulting company limited ( โ shsy โ ) , suzhou shang yang real estate consultation company limited ( โ szsy โ ) , suzhou xin ji yang real estate consultation company limited ( โ szxjy โ ) , linyi rui lin construction and design company limited ( โ lyrl โ ) , linyi shang yang real estate development company limited ( โ lysy โ ) , , wuhan gao feng hui consultation company limited ( โ whgfh โ ) , sanya shang yang real estate consultation company limited ( โ sysy โ ) , shanghai rui jian design company limited ( โ shrj โ ) , zhong ji pu fa real estate company limited ( โ shgxl โ ) ๏ผ huai an zhan bao industrial company limited ( โ hazb โ ) and its equity investments in affiliates , namely wuhan yuan yu long real estate development company limited ( โ whyyl โ ) , are sometimes hereinafter collectively referred to as โ the company , โ โ our โ or โ us โ . the principal activities of the company are real estate agency sales , real estate marketing services , real estate investments , property leasing services and property management services in the prc . risks associated with forward-looking statements included in this form 10-k in addition to historical information , this form 10-k contains forward-looking statements . forward-looking statements are based on our current beliefs and expectations , information currently available to us , estimates and projections about our industry , and certain assumptions made by our management . these statements are not historical facts . we use words such as `` anticipates `` , `` expects `` , `` intends `` , `` plans `` , `` believes `` , `` seeks `` , `` estimates `` , and similar expressions to identify our forward-looking statements , which include , among other things , our anticipated revenue and cost of our agency and investment business . because we are unable to control or predict many of the factors that will determine our future performance and financial results , including future economic , competitive , and market conditions , our forward-looking statements are not guarantees of future performance . they are subject to risks , uncertainties , and errors in assumptions that could cause our actual results to differ materially from those reflected in our forward-looking statements . we believe that the assumptions underlying our forward-looking statements are reasonable . however , the investor should not place undue reliance on these forward-looking statements . they only reflect our view and expectations as of the date of this form 10-k. we undertake no obligation to publicly update or revise any forward-looking statement in light of new information , future events , or other occurrences . 20 there are several risks and uncertainties , including those relating to our ability to raise money and grow our business and potential difficulties in integrating new acquisitions with our current operations , especially as they pertain to foreign markets and market conditions . these risks and uncertainties can materially affect the results predicted . the company 's future operating results over both the short and long term will be subject to annual and quarterly fluctuations due to several factors , some of which are outside our control . these factors include but are not limited to fluctuating market demand for our services , and general economic conditions . recently adopted accounting standards in june 2016 , the financial accounting standards board ( fasb ) issued a new accounting standard that amends the guidance for measuring and recording credit losses on financial assets measured at amortized cost by replacing the incurred-loss model with an expected-loss model . accordingly , these financial assets are now presented at the net amount expected to be collected . this new standard also requires that credit losses related to available-for-sale debt securities be recorded as an allowance through net income rather than reducing the carrying amount under the former other-than-temporary-impairment model . we adopted this standard as of january 1 , 2020 , using a modified-retrospective approach . adoption of the standard did not have a material impact on our consolidated financial statements . in august 2018 , the fasb issued a new accounting standard update which eliminates , adds and modifies certain disclosure requirements for fair value measurements . story_separator_special_tag each grant is evaluated to determine the propriety of classification on the consolidated statements of operations and consolidated balance sheets . those grants that are substantively reimbursements of specified costs are matched with those costs and recorded as a reduction in costs . those benefits that are more general in nature or driven by business performance measures are classified as revenue . as of december 31 , 20 20 , the balance of deferred government subsidy was $ 5,079,835 ( 2019 : $ 4,751,214 ) . the subsidy is given to reimburse the land acquisition costs and certain construction costs incurred for the company 's property development project and are repayable if the company fails to complete the subsidized property development project by the agreed date . the company recorded the subsidy received as a deferred government subsidy results of operations we provide the following discussion and analyses of our changes in financial condition and results of operations for the year ended december 31 , 20 20 with comparisons to the historical year ended december 31 , 2019. net revenues the following table shows the detail for net revenues by line of business : replace_table_token_4_th the net revenue for 20 20 was $ 5,891,568 , a decrease of 82 % from $ 32,989,778 in 2019. in 2020 , property management and house sales represented 18 % , and 82 % of our total net revenue . the decrease in 2020 was mainly due to the net revenue recognized for the gxl project in 2019 and less recognized in amount of the linyi project in 2020. agency sales in 20 20 , there are no net revenues of agency sales . as compared with 2019 , net revenue of agency sales in 2020 decreased by 100 % . the decrease was mainly due to non-sales collection of projects during this year . government policies enacted in 2018 as well as similar subsequent policies aiming to stabilize real estate prices affected many businesses in the real estate industry . these restrictive policies had a substantial effect in our real estate sales revenue . we are continually seeking stable growth in our real estate sales business in 202 1. however , there can be no assurance that we will be able to do so . property management property management represented 18 % of our revenue in year of 2020 and revenue from property management increased by 82 % compared with 2019 . 23 house sales house sales represented 82 % of our revenue in year of 2020. the company has recognized a proportion of net revenue from linyi project . cost of revenues the following table shows the cost of revenues detail by line of business : replace_table_token_5_th the cost of revenues for 20 20 was $ 5,352,210 , a decrease of 80 % from $ 26,811,115 for 2019. in 2020 , property management and house sales represented 32 % , and 68 % of total cost of revenues . the decrease in cost of revenues is mainly due to the recognition of cost of revenue of house sales from the gxl project in 2019 and less in amount of the linyi project recognized in 2020. agency sales in 20 20 , there was no cost of net revenues of agency sales . as compared with 2019 , the cost decreased by 100 % . the decrease was mainly due to no sales project operation of projects during this year . property management the cost of revenue from property management for 20 20 was $ 1,705,765 , an increase from $ 1,256,678 for 2019. house sales house sales represented 68 % of our cost of revenue in year of 2020. the company has recognized its cost of revenue from the linyi project at a certain proportion . operating expenses the following table shows operating expenses detailed by line of business : replace_table_token_6_th the operating expenses for 20 20 were $ 3,699,065 , an increase from $ 3,080,061 in 2019. in 2020 , the expenses related to agency sales , property management , and house sales represented 0 % , 40 % , and 60 % of the total operating expenses . agency sales in 20 20 , there are no operating expenses of agency sales , which decreased by 100 % compared to 2019. the primary reason for the decrease in 2020 was that there was no operating expenses of agency sales . property management compared to 201 9 , the operating expenses for property management increased by 22 % compared to the amount in 2020. the primary reason for the increase was due to relevant consulting service costs and property renewing cost . 24 house sales the operating expenses related to our house sales business in 20 20 increased by 26 % compared to 2019. this increase was mainly due to the increase in our sales promotion activities in hatx project and linyi project . general and administrative expenses the general and administrative expenses in 20 20 were $ 24,624,930 , which was a 145 % increase from $ 10,047,005 in 2019. the primary reason for the increase was due to the accrued bonus.to be paid to mr. lin of $ 21,167,305. operating loss in 20 20 , we had an operating loss of $ 27,784,638 , representing an increased loss from an operating loss of $ 6,948,403 in 2019. the increase in loss was mainly due to the accrued bonus to be paid to mr. lin chi-jung of $ 21,167,305 other income , net other income in 2020 was $ 25,186,060. we have dividends received from shdew this year . major related party transaction a related party is an entity that can control or significantly influence the management or operating policies of another entity to the extent one of the entities may be prevented from pursuing its own interests . a related party may also be any party the entity deals with that can exercise that control . amount due to
| liquidity and capital resources in 20 20 , our principal sources of cash were revenues from our receipts in advance from real estate development projects , property management business , as well as the dividend distribution from our affiliates . most of our cash resources were used to fund our property development investment and revenue related expenses , such as salaries and commissions paid to the sales force , daily administrative expenses and the maintenance of regional offices . we ended the period with a cash position of $ 40,369,612. net cash provided in the company 's operating activities in 2020 was $ 18,593,966 , representing an increase of receipts in cash in the amount of $ 68,289,069 as compared to the cash used for 2019. the increase was primarily attributable to the increase in cash provided in the receipts in advance of the hatx project and linyi project of $ 87,703,469 . 25 net cash provided by the company 's investment activities was $ 26,066,084 , representing a decrease of $ 33,893,719 as compared to the cash received in investing activities for 2019. the increase in cash from investment activities was primarily attributable to the increase in cash provided in dividend distribution from shdew , an affiliate , of $ 23,869,057 in 2020. net cash used by the company 's financing activities was $ 20,317,596 , representing an increase from $ 13,813,992 in 2019. this increase was primarily attributable to restricted cash of $ 44,425,035. the cash needs for 202 1 were for the funds required to finance the company 's future projects in property agency and real estate developments .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources in 20 20 , our principal sources of cash were revenues from our receipts in advance from real estate development projects , property management business , as well as the dividend distribution from our affiliates . most of our cash resources were used to fund our property development investment and revenue related expenses , such as salaries and commissions paid to the sales force , daily administrative expenses and the maintenance of regional offices . we ended the period with a cash position of $ 40,369,612. net cash provided in the company 's operating activities in 2020 was $ 18,593,966 , representing an increase of receipts in cash in the amount of $ 68,289,069 as compared to the cash used for 2019. the increase was primarily attributable to the increase in cash provided in the receipts in advance of the hatx project and linyi project of $ 87,703,469 . 25 net cash provided by the company 's investment activities was $ 26,066,084 , representing a decrease of $ 33,893,719 as compared to the cash received in investing activities for 2019. the increase in cash from investment activities was primarily attributable to the increase in cash provided in dividend distribution from shdew , an affiliate , of $ 23,869,057 in 2020. net cash used by the company 's financing activities was $ 20,317,596 , representing an increase from $ 13,813,992 in 2019. this increase was primarily attributable to restricted cash of $ 44,425,035. the cash needs for 202 1 were for the funds required to finance the company 's future projects in property agency and real estate developments .
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Suspicious Activity Report : as a result of the acquisition , the former owners of cy-srre and lry hold a majority interest in the combined entity . generally accepted accounting principles require in certain circumstances that a company whose shareholders retain the majority voting interest in the combined business be treated as the acquirer for financial reporting purposes . accordingly , the acquisition has been accounted for as a โ reverse acquisition โ arrangement whereby cy-srre and lry are deemed to have purchased srre . however , srre remains the legal entity and the registrant for securities and exchange commission reporting purposes . the historical financial statements prior to october 5 , 2004 are those of cy-srre and lry and their subsidiaries . all equity information and per share data prior to the acquisition have been restated to reflect the stock issuance as a recapitalization of cy-srre and lry . srre and its subsidiaries , namely , cy-srre , lry , shanghai xin ji yang real estate consultation company limited ( โ shxjy โ ) , shanghai shang yang investment management and consulting company limited ( โ shsy โ ) , suzhou shang yang real estate consultation company limited ( โ szsy โ ) , suzhou xin ji yang real estate consultation company limited ( โ szxjy โ ) , linyi rui lin construction and design company limited ( โ lyrl โ ) , linyi shang yang real estate development company limited ( โ lysy โ ) , , wuhan gao feng hui consultation company limited ( โ whgfh โ ) , sanya shang yang real estate consultation company limited ( โ sysy โ ) , shanghai rui jian design company limited ( โ shrj โ ) , zhong ji pu fa real estate company limited ( โ shgxl โ ) ๏ผ huai an zhan bao industrial company limited ( โ hazb โ ) and its equity investments in affiliates , namely wuhan yuan yu long real estate development company limited ( โ whyyl โ ) , are sometimes hereinafter collectively referred to as โ the company , โ โ our โ or โ us โ . the principal activities of the company are real estate agency sales , real estate marketing services , real estate investments , property leasing services and property management services in the prc . risks associated with forward-looking statements included in this form 10-k in addition to historical information , this form 10-k contains forward-looking statements . forward-looking statements are based on our current beliefs and expectations , information currently available to us , estimates and projections about our industry , and certain assumptions made by our management . these statements are not historical facts . we use words such as `` anticipates `` , `` expects `` , `` intends `` , `` plans `` , `` believes `` , `` seeks `` , `` estimates `` , and similar expressions to identify our forward-looking statements , which include , among other things , our anticipated revenue and cost of our agency and investment business . because we are unable to control or predict many of the factors that will determine our future performance and financial results , including future economic , competitive , and market conditions , our forward-looking statements are not guarantees of future performance . they are subject to risks , uncertainties , and errors in assumptions that could cause our actual results to differ materially from those reflected in our forward-looking statements . we believe that the assumptions underlying our forward-looking statements are reasonable . however , the investor should not place undue reliance on these forward-looking statements . they only reflect our view and expectations as of the date of this form 10-k. we undertake no obligation to publicly update or revise any forward-looking statement in light of new information , future events , or other occurrences . 20 there are several risks and uncertainties , including those relating to our ability to raise money and grow our business and potential difficulties in integrating new acquisitions with our current operations , especially as they pertain to foreign markets and market conditions . these risks and uncertainties can materially affect the results predicted . the company 's future operating results over both the short and long term will be subject to annual and quarterly fluctuations due to several factors , some of which are outside our control . these factors include but are not limited to fluctuating market demand for our services , and general economic conditions . recently adopted accounting standards in june 2016 , the financial accounting standards board ( fasb ) issued a new accounting standard that amends the guidance for measuring and recording credit losses on financial assets measured at amortized cost by replacing the incurred-loss model with an expected-loss model . accordingly , these financial assets are now presented at the net amount expected to be collected . this new standard also requires that credit losses related to available-for-sale debt securities be recorded as an allowance through net income rather than reducing the carrying amount under the former other-than-temporary-impairment model . we adopted this standard as of january 1 , 2020 , using a modified-retrospective approach . adoption of the standard did not have a material impact on our consolidated financial statements . in august 2018 , the fasb issued a new accounting standard update which eliminates , adds and modifies certain disclosure requirements for fair value measurements . story_separator_special_tag each grant is evaluated to determine the propriety of classification on the consolidated statements of operations and consolidated balance sheets . those grants that are substantively reimbursements of specified costs are matched with those costs and recorded as a reduction in costs . those benefits that are more general in nature or driven by business performance measures are classified as revenue . as of december 31 , 20 20 , the balance of deferred government subsidy was $ 5,079,835 ( 2019 : $ 4,751,214 ) . the subsidy is given to reimburse the land acquisition costs and certain construction costs incurred for the company 's property development project and are repayable if the company fails to complete the subsidized property development project by the agreed date . the company recorded the subsidy received as a deferred government subsidy results of operations we provide the following discussion and analyses of our changes in financial condition and results of operations for the year ended december 31 , 20 20 with comparisons to the historical year ended december 31 , 2019. net revenues the following table shows the detail for net revenues by line of business : replace_table_token_4_th the net revenue for 20 20 was $ 5,891,568 , a decrease of 82 % from $ 32,989,778 in 2019. in 2020 , property management and house sales represented 18 % , and 82 % of our total net revenue . the decrease in 2020 was mainly due to the net revenue recognized for the gxl project in 2019 and less recognized in amount of the linyi project in 2020. agency sales in 20 20 , there are no net revenues of agency sales . as compared with 2019 , net revenue of agency sales in 2020 decreased by 100 % . the decrease was mainly due to non-sales collection of projects during this year . government policies enacted in 2018 as well as similar subsequent policies aiming to stabilize real estate prices affected many businesses in the real estate industry . these restrictive policies had a substantial effect in our real estate sales revenue . we are continually seeking stable growth in our real estate sales business in 202 1. however , there can be no assurance that we will be able to do so . property management property management represented 18 % of our revenue in year of 2020 and revenue from property management increased by 82 % compared with 2019 . 23 house sales house sales represented 82 % of our revenue in year of 2020. the company has recognized a proportion of net revenue from linyi project . cost of revenues the following table shows the cost of revenues detail by line of business : replace_table_token_5_th the cost of revenues for 20 20 was $ 5,352,210 , a decrease of 80 % from $ 26,811,115 for 2019. in 2020 , property management and house sales represented 32 % , and 68 % of total cost of revenues . the decrease in cost of revenues is mainly due to the recognition of cost of revenue of house sales from the gxl project in 2019 and less in amount of the linyi project recognized in 2020. agency sales in 20 20 , there was no cost of net revenues of agency sales . as compared with 2019 , the cost decreased by 100 % . the decrease was mainly due to no sales project operation of projects during this year . property management the cost of revenue from property management for 20 20 was $ 1,705,765 , an increase from $ 1,256,678 for 2019. house sales house sales represented 68 % of our cost of revenue in year of 2020. the company has recognized its cost of revenue from the linyi project at a certain proportion . operating expenses the following table shows operating expenses detailed by line of business : replace_table_token_6_th the operating expenses for 20 20 were $ 3,699,065 , an increase from $ 3,080,061 in 2019. in 2020 , the expenses related to agency sales , property management , and house sales represented 0 % , 40 % , and 60 % of the total operating expenses . agency sales in 20 20 , there are no operating expenses of agency sales , which decreased by 100 % compared to 2019. the primary reason for the decrease in 2020 was that there was no operating expenses of agency sales . property management compared to 201 9 , the operating expenses for property management increased by 22 % compared to the amount in 2020. the primary reason for the increase was due to relevant consulting service costs and property renewing cost . 24 house sales the operating expenses related to our house sales business in 20 20 increased by 26 % compared to 2019. this increase was mainly due to the increase in our sales promotion activities in hatx project and linyi project . general and administrative expenses the general and administrative expenses in 20 20 were $ 24,624,930 , which was a 145 % increase from $ 10,047,005 in 2019. the primary reason for the increase was due to the accrued bonus.to be paid to mr. lin of $ 21,167,305. operating loss in 20 20 , we had an operating loss of $ 27,784,638 , representing an increased loss from an operating loss of $ 6,948,403 in 2019. the increase in loss was mainly due to the accrued bonus to be paid to mr. lin chi-jung of $ 21,167,305 other income , net other income in 2020 was $ 25,186,060. we have dividends received from shdew this year . major related party transaction a related party is an entity that can control or significantly influence the management or operating policies of another entity to the extent one of the entities may be prevented from pursuing its own interests . a related party may also be any party the entity deals with that can exercise that control . amount due to
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2,516 | there is some seasonality in the businesses within our cequent reportable segments , primarily within cequent americas , where sales of towing and trailering products are generally stronger in the second and third quarters , as trailer original equipment manufacturers ( `` oems `` ) , distributors and retailers acquire product for the spring and summer selling seasons . no other reportable segment experiences significant seasonal fluctuation . we do not consider sales order backlog to be a material factor in our business . a growing portion of our sales are derived from international sources , which exposes us to certain risks , including currency risks . the demand for some of our products , particularly in our two cequent reportable segments , is heavily influenced by consumer sentiment . despite the sales increases in the past few years , we recognize that consumer sentiment and the end market conditions remain unstable , primarily for cequent americas , given continued uncertainties in employment levels and consumer credit availability , both of which significantly impact consumer discretionary spending . 26 we are sensitive to price movements in our raw materials supply base . our largest material purchases are for steel , copper , aluminum , polyethylene and other resins and energy . historically , we have experienced increasing costs of steel and resin and have worked with our suppliers to manage cost pressures and disruptions in supply . we also utilize pricing programs to pass increased steel , copper , aluminum and resin costs to customers . although we may experience delays in our ability to implement price increases , we have been generally able to recover such increased costs , except for certain circumstances , primarily within cequent americas during 2011 , where we intentionally kept selling prices constant for certain customers despite material price increases to earn incremental sales . we may experience disruptions in supply in the future and may not be able to pass along higher costs associated with such disruptions to our customers in the form of price increases . we report shipping and handling expenses associated with our cequent americas reportable segment 's distribution network as an element of selling , general and administrative expenses in our consolidated statement of operations . as such , gross margins for the cequent americas reportable segment may not be comparable to those of our other reportable segments , which primarily rely on third party distributors , for which all costs are included in cost of sales . 27 segment information and supplemental analysis the following table summarizes financial information for our six reportable segments : replace_table_token_4_th 28 replace_table_token_5_th results of operations year ended december 31 , 2013 compared with year ended december 31 , 2012 the principal factors impacting us during the year ended december 31 , 2013 , compared with the year ended december 31 , 2012 were : the impact of our various acquisitions during 2013 and 2012 ( see below for the impact by reportable segment ) ; market share gains and increased demand in certain of our reportable segments in 2013 ; continued economic strength in certain of the markets our businesses serve in 2013 compared to 2012 , contributing to increased net sales in five of six of our reportable segments ; the sale of our business in italy within the packaging reportable segment , for which we recorded a pre-tax gain of approximately $ 10.5 million ; our equity offering during 2013 , where we issued 5,175,000 shares of common stock for net proceeds of approximately $ 174.7 million ; footprint consolidation and relocation projects within our cequent americas reportable segments , under which we incurred approximately $ 25.6 million of severance , unrecoverable future lease obligation , manufacturing inefficiency , facility move and duplicate costs during 2013 , as compared to $ 7.5 million of such costs during 2012 ; and entry into our new credit agreement ( `` credit agreement `` ) in 2013 , as compared to the refinance and our former amended and restated credit agreement completed in 2012. overall , net sales increased approximately $ 122.0 million , or approximately 9.6 % , to $ 1.39 billion in 2013 , as compared to $ 1.27 billion in 2012 . during 2013 , net sales increased in all of our reportable segments except for engineered components . of the sales increase , approximately $ 83.9 million was due to our recent acquisitions . the remainder of the increase in sales levels between years was due to the impact of continued economic strength in certain of our end markets , primarily in our aerospace & defense , packaging and cequent americas reportable segments , our expansion in international markets , primarily in our packaging and cequent apea reportable segments and our new product introductions and related growth , primarily in our cequent americas and aerospace & defense reportable segments . these sales increases were partially offset by approximately $ 9.1 million of unfavorable currency exchange , as our reported results in u.s. dollars were negatively impacted as a result of the stronger u.s. dollar relative to foreign currencies , primarily in our energy and cequent apea reportable segments . gross profit margin ( gross profit as a percentage of sales ) approximated 25.3 % and 27.0 % in 2013 and 2012 , respectively . the gross profit margin in our packaging reportable segment increased as compared to 2012 , primarily due to improvements in manufacturing productivity related to labor efficiencies and automation and a reduction in purchase accounting charges from 2012 levels . gross profit margins in our other reportable segments were flat or declined , with the most significant driver being the manufacturing facility footprint consolidation and relocation projects in our cequent americas reportable segment , where we recorded incremental charges of approximately $ 16.5 million during 2013 compared to 2012 . story_separator_special_tag these increases were partially offset by reductions in legal fees associated with the anti-dumping claim in 2012 within our industrial cylinder business . operating profit within engineered components decreased approximately $ 8.5 million to $ 19.5 million , or 10.5 % of sales , in 2013 , as compared to $ 28.0 million , or 14.0 % of sales , in 2012 , primarily due to the lower sales levels between years , lower fixed cost absorption and less favorable product sales mix in our engine business , which was partially offset by sales increases and productivity initiatives in the industrial cylinder business . 32 cequent apea . net sales increased approximately $ 23.0 million , or 17.9 % , to $ 151.6 million in 2013 , as compared to $ 128.6 million in 2012 . the acquisitions of c.p . witter limited ( `` witter `` ) , in april 2013 , the towing technology and business assets of al-ko , in july 2013 , and the full year effect of the acquisition of trail com limited ( `` trail com `` ) , in july 2012 , contributed approximately $ 29.0 million of incremental sales . additionally , we realized additional sales due to new asian-based business awards . partially offsetting these increases were lower customer demand in australia as a result of political and economic conditions during the second half of 2013 and the negative impact of currency exchange of approximately $ 7.3 million , as our reported results in u.s. dollars were negatively impacted as a net result of the stronger u.s. dollar relative to foreign currencies . cequent apea 's gross profit increased approximately $ 4.7 million to $ 30.8 million , or 20.3 % of net sales in 2013 , from approximately $ 26.1 million , or 20.3 % of net sales , in 2012 , primarily due to higher sales levels . gross profit margin increased due to efficiencies gained in our new australian facility following the completion of the consolidation of two manufacturing facilities into one new facility during 2012 and productivity gains in our asian plants . however , this increase in margin was essentially offset by the combination of a less favorable product sales mix , as the newly acquired businesses have lower margins than the legacy business , and approximately $ 0.8 million of incremental purchase accounting-related adjustments associated with the step-up in value and subsequent amortization of inventory in connection with our 2013 acquisitions compared to the 2012 acquisition of trail com . cequent apea 's selling , general and administrative expenses increased approximately $ 5.0 million to $ 18.9 million , or 12.5 % of sales in 2013 , as compared to $ 13.9 million , or 10.8 % of sales in 2012 , primarily as a result of sales increases and in support of our growth initiatives , including approximately $ 2.8 million of normal operating selling , general and administrative costs related to witter and al-ko , as well as increased legal and professional diligence costs of approximately $ 1.1 million associated with completion of our european acquisitions . cequent apea 's operating profit increased approximately $ 1.6 million to $ 13.9 million , or 9.2 % of sales , in 2013 , from $ 12.3 million , or 9.6 % of net sales in 2012 . operating profit increased primarily due to higher sales levels as well as a $ 2.1 million gain on the sale of a facility in australia . operating profit margin decreased in 2013 as compared to 2012 , as the margin impact of the facility efficiency gains was more than offset by the less favorable product sales mix and incremental costs associated with our recent acquisitions . cequent americas . net sales increased approximately $ 36.9 million , or 9.2 % , to $ 437.3 million in 2013 , as compared to $ 400.4 million in 2012 , primarily due to year-over-year increases within our retail , auto original equipment ( `` oe `` ) and aftermarket channels . net sales within our retail channel increased by approximately $ 17.4 million , primarily due to increased demand from existing customers associated with new towing accessory and ramp products , growth in internet sales as well as the recent acquisition of our broom and brush product line . sales within our oe channel increased approximately $ 12.4 million due to increased oem build rates and new business awards . sales within our aftermarket channel increased approximately $ 8.8 million , predominately due to strength in the recreational vehicle and oe aftermarket subcategories and due to our july 2012 acquisition of engetran engenharia , indรบstria , e comรฉrcio de peรงas e acessรณrios veiculares ltda ( `` engetran `` ) and our november 2013 acquisition of dhf soluรงรตes automotivas ltda ( `` dhf `` ) , which combined generated approximately $ 4.6 million in incremental revenue . these increases were partially offset by a decrease of $ 1.9 million in our industrial channel , primarily due to an overall decrease in agricultural and industrial trailer production as well as the rationalization of certain lower margin electrical and lighting products . cequent americas ' gross profit decreased approximately $ 10.3 million to $ 94.2 million , or 21.5 % of sales , in 2013 , from approximately $ 104.5 million , or 26.1 % of sales , in 2012 . the profit generated from the increase in sales during 2013 was more than offset by approximately $ 15.4 million of incremental costs associated with our announced closure of our goshen , indiana manufacturing facility and relocation of the production therefrom to our lower cost country facilities . the largest costs related to the facility closure were approximately $ 4.6 million of estimated future unrecoverable lease obligations on the goshen facility and $ 4.0 million of employee severance costs primarily associated with the hourly employees . the remainder of the costs related to inefficiencies
| cash provided by operating activities in 2013 was approximately $ 87.6 million , as compared to $ 73.2 million in 2012 . significant changes in cash flows provided by operating activities and the reasons for such changes are as follows : in 2013 , the company generated $ 118.5 million in cash flows , based on the reported net income of $ 80.1 million and after considering the effects of non-cash items related to gains on dispositions of businesses and other assets , gain on bargain purchase , depreciation , amortization , stock compensation and related changes in excess tax benefits , changes in deferred income taxes , debt extinguishment costs and other , net . in 2012 , the company generated $ 128.1 million based on the reported net income of $ 36.3 million and after considering the effects of similar non-cash items . 39 increases in accounts receivable resulted in a use of cash of approximately $ 25.6 million and $ 3.8 million in 2013 and 2012 , respectively . the increase in accounts receivable is due primarily to the increase in year-over-year sales and the timing of sales and collection of cash within the period . in 2013 , accounts receivable increased by a higher percentage than sales , as evidenced by our days sales outstanding of receivables increasing to 51 days in 2013 compared to 46 days in 2012. we used approximately $ 10.7 million and $ 48.0 million of cash in 2013 and 2012 , respectively , for investment in our inventories . inventory levels increased primarily to support the increased sales volumes , including in our acquisitions , where we made additional investments post-transaction to add inventory to fill projected customer demand . in addition , during the second half of 2012 , we increased inventory levels in our cequent americas reportable segment given the planned closure of the goshen , indiana manufacturing facility .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash provided by operating activities in 2013 was approximately $ 87.6 million , as compared to $ 73.2 million in 2012 . significant changes in cash flows provided by operating activities and the reasons for such changes are as follows : in 2013 , the company generated $ 118.5 million in cash flows , based on the reported net income of $ 80.1 million and after considering the effects of non-cash items related to gains on dispositions of businesses and other assets , gain on bargain purchase , depreciation , amortization , stock compensation and related changes in excess tax benefits , changes in deferred income taxes , debt extinguishment costs and other , net . in 2012 , the company generated $ 128.1 million based on the reported net income of $ 36.3 million and after considering the effects of similar non-cash items . 39 increases in accounts receivable resulted in a use of cash of approximately $ 25.6 million and $ 3.8 million in 2013 and 2012 , respectively . the increase in accounts receivable is due primarily to the increase in year-over-year sales and the timing of sales and collection of cash within the period . in 2013 , accounts receivable increased by a higher percentage than sales , as evidenced by our days sales outstanding of receivables increasing to 51 days in 2013 compared to 46 days in 2012. we used approximately $ 10.7 million and $ 48.0 million of cash in 2013 and 2012 , respectively , for investment in our inventories . inventory levels increased primarily to support the increased sales volumes , including in our acquisitions , where we made additional investments post-transaction to add inventory to fill projected customer demand . in addition , during the second half of 2012 , we increased inventory levels in our cequent americas reportable segment given the planned closure of the goshen , indiana manufacturing facility .
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Suspicious Activity Report : there is some seasonality in the businesses within our cequent reportable segments , primarily within cequent americas , where sales of towing and trailering products are generally stronger in the second and third quarters , as trailer original equipment manufacturers ( `` oems `` ) , distributors and retailers acquire product for the spring and summer selling seasons . no other reportable segment experiences significant seasonal fluctuation . we do not consider sales order backlog to be a material factor in our business . a growing portion of our sales are derived from international sources , which exposes us to certain risks , including currency risks . the demand for some of our products , particularly in our two cequent reportable segments , is heavily influenced by consumer sentiment . despite the sales increases in the past few years , we recognize that consumer sentiment and the end market conditions remain unstable , primarily for cequent americas , given continued uncertainties in employment levels and consumer credit availability , both of which significantly impact consumer discretionary spending . 26 we are sensitive to price movements in our raw materials supply base . our largest material purchases are for steel , copper , aluminum , polyethylene and other resins and energy . historically , we have experienced increasing costs of steel and resin and have worked with our suppliers to manage cost pressures and disruptions in supply . we also utilize pricing programs to pass increased steel , copper , aluminum and resin costs to customers . although we may experience delays in our ability to implement price increases , we have been generally able to recover such increased costs , except for certain circumstances , primarily within cequent americas during 2011 , where we intentionally kept selling prices constant for certain customers despite material price increases to earn incremental sales . we may experience disruptions in supply in the future and may not be able to pass along higher costs associated with such disruptions to our customers in the form of price increases . we report shipping and handling expenses associated with our cequent americas reportable segment 's distribution network as an element of selling , general and administrative expenses in our consolidated statement of operations . as such , gross margins for the cequent americas reportable segment may not be comparable to those of our other reportable segments , which primarily rely on third party distributors , for which all costs are included in cost of sales . 27 segment information and supplemental analysis the following table summarizes financial information for our six reportable segments : replace_table_token_4_th 28 replace_table_token_5_th results of operations year ended december 31 , 2013 compared with year ended december 31 , 2012 the principal factors impacting us during the year ended december 31 , 2013 , compared with the year ended december 31 , 2012 were : the impact of our various acquisitions during 2013 and 2012 ( see below for the impact by reportable segment ) ; market share gains and increased demand in certain of our reportable segments in 2013 ; continued economic strength in certain of the markets our businesses serve in 2013 compared to 2012 , contributing to increased net sales in five of six of our reportable segments ; the sale of our business in italy within the packaging reportable segment , for which we recorded a pre-tax gain of approximately $ 10.5 million ; our equity offering during 2013 , where we issued 5,175,000 shares of common stock for net proceeds of approximately $ 174.7 million ; footprint consolidation and relocation projects within our cequent americas reportable segments , under which we incurred approximately $ 25.6 million of severance , unrecoverable future lease obligation , manufacturing inefficiency , facility move and duplicate costs during 2013 , as compared to $ 7.5 million of such costs during 2012 ; and entry into our new credit agreement ( `` credit agreement `` ) in 2013 , as compared to the refinance and our former amended and restated credit agreement completed in 2012. overall , net sales increased approximately $ 122.0 million , or approximately 9.6 % , to $ 1.39 billion in 2013 , as compared to $ 1.27 billion in 2012 . during 2013 , net sales increased in all of our reportable segments except for engineered components . of the sales increase , approximately $ 83.9 million was due to our recent acquisitions . the remainder of the increase in sales levels between years was due to the impact of continued economic strength in certain of our end markets , primarily in our aerospace & defense , packaging and cequent americas reportable segments , our expansion in international markets , primarily in our packaging and cequent apea reportable segments and our new product introductions and related growth , primarily in our cequent americas and aerospace & defense reportable segments . these sales increases were partially offset by approximately $ 9.1 million of unfavorable currency exchange , as our reported results in u.s. dollars were negatively impacted as a result of the stronger u.s. dollar relative to foreign currencies , primarily in our energy and cequent apea reportable segments . gross profit margin ( gross profit as a percentage of sales ) approximated 25.3 % and 27.0 % in 2013 and 2012 , respectively . the gross profit margin in our packaging reportable segment increased as compared to 2012 , primarily due to improvements in manufacturing productivity related to labor efficiencies and automation and a reduction in purchase accounting charges from 2012 levels . gross profit margins in our other reportable segments were flat or declined , with the most significant driver being the manufacturing facility footprint consolidation and relocation projects in our cequent americas reportable segment , where we recorded incremental charges of approximately $ 16.5 million during 2013 compared to 2012 . story_separator_special_tag these increases were partially offset by reductions in legal fees associated with the anti-dumping claim in 2012 within our industrial cylinder business . operating profit within engineered components decreased approximately $ 8.5 million to $ 19.5 million , or 10.5 % of sales , in 2013 , as compared to $ 28.0 million , or 14.0 % of sales , in 2012 , primarily due to the lower sales levels between years , lower fixed cost absorption and less favorable product sales mix in our engine business , which was partially offset by sales increases and productivity initiatives in the industrial cylinder business . 32 cequent apea . net sales increased approximately $ 23.0 million , or 17.9 % , to $ 151.6 million in 2013 , as compared to $ 128.6 million in 2012 . the acquisitions of c.p . witter limited ( `` witter `` ) , in april 2013 , the towing technology and business assets of al-ko , in july 2013 , and the full year effect of the acquisition of trail com limited ( `` trail com `` ) , in july 2012 , contributed approximately $ 29.0 million of incremental sales . additionally , we realized additional sales due to new asian-based business awards . partially offsetting these increases were lower customer demand in australia as a result of political and economic conditions during the second half of 2013 and the negative impact of currency exchange of approximately $ 7.3 million , as our reported results in u.s. dollars were negatively impacted as a net result of the stronger u.s. dollar relative to foreign currencies . cequent apea 's gross profit increased approximately $ 4.7 million to $ 30.8 million , or 20.3 % of net sales in 2013 , from approximately $ 26.1 million , or 20.3 % of net sales , in 2012 , primarily due to higher sales levels . gross profit margin increased due to efficiencies gained in our new australian facility following the completion of the consolidation of two manufacturing facilities into one new facility during 2012 and productivity gains in our asian plants . however , this increase in margin was essentially offset by the combination of a less favorable product sales mix , as the newly acquired businesses have lower margins than the legacy business , and approximately $ 0.8 million of incremental purchase accounting-related adjustments associated with the step-up in value and subsequent amortization of inventory in connection with our 2013 acquisitions compared to the 2012 acquisition of trail com . cequent apea 's selling , general and administrative expenses increased approximately $ 5.0 million to $ 18.9 million , or 12.5 % of sales in 2013 , as compared to $ 13.9 million , or 10.8 % of sales in 2012 , primarily as a result of sales increases and in support of our growth initiatives , including approximately $ 2.8 million of normal operating selling , general and administrative costs related to witter and al-ko , as well as increased legal and professional diligence costs of approximately $ 1.1 million associated with completion of our european acquisitions . cequent apea 's operating profit increased approximately $ 1.6 million to $ 13.9 million , or 9.2 % of sales , in 2013 , from $ 12.3 million , or 9.6 % of net sales in 2012 . operating profit increased primarily due to higher sales levels as well as a $ 2.1 million gain on the sale of a facility in australia . operating profit margin decreased in 2013 as compared to 2012 , as the margin impact of the facility efficiency gains was more than offset by the less favorable product sales mix and incremental costs associated with our recent acquisitions . cequent americas . net sales increased approximately $ 36.9 million , or 9.2 % , to $ 437.3 million in 2013 , as compared to $ 400.4 million in 2012 , primarily due to year-over-year increases within our retail , auto original equipment ( `` oe `` ) and aftermarket channels . net sales within our retail channel increased by approximately $ 17.4 million , primarily due to increased demand from existing customers associated with new towing accessory and ramp products , growth in internet sales as well as the recent acquisition of our broom and brush product line . sales within our oe channel increased approximately $ 12.4 million due to increased oem build rates and new business awards . sales within our aftermarket channel increased approximately $ 8.8 million , predominately due to strength in the recreational vehicle and oe aftermarket subcategories and due to our july 2012 acquisition of engetran engenharia , indรบstria , e comรฉrcio de peรงas e acessรณrios veiculares ltda ( `` engetran `` ) and our november 2013 acquisition of dhf soluรงรตes automotivas ltda ( `` dhf `` ) , which combined generated approximately $ 4.6 million in incremental revenue . these increases were partially offset by a decrease of $ 1.9 million in our industrial channel , primarily due to an overall decrease in agricultural and industrial trailer production as well as the rationalization of certain lower margin electrical and lighting products . cequent americas ' gross profit decreased approximately $ 10.3 million to $ 94.2 million , or 21.5 % of sales , in 2013 , from approximately $ 104.5 million , or 26.1 % of sales , in 2012 . the profit generated from the increase in sales during 2013 was more than offset by approximately $ 15.4 million of incremental costs associated with our announced closure of our goshen , indiana manufacturing facility and relocation of the production therefrom to our lower cost country facilities . the largest costs related to the facility closure were approximately $ 4.6 million of estimated future unrecoverable lease obligations on the goshen facility and $ 4.0 million of employee severance costs primarily associated with the hourly employees . the remainder of the costs related to inefficiencies
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2,517 | under this agreement , we may develop these jak inhibitors for the treatment of alopecia areata , or aa , and other dermatological conditions . we paid rigel an upfront nonrefundable payment of $ 8.0 million in 2015 and $ 4.0 million upon the achievement of a specified development milestone in 2019. in addition , we have agreed to make remaining aggregate payments of up to $ 76.0 million upon the achievement of specified development milestones , such as clinical trials and regulatory approvals . further , we have agreed to pay up to an additional $ 10.5 million to rigel upon the achievement of a second set of development milestones . in addition , in connection with the amendment of the agreement in october 2019 , we agreed to pay rigel an amendment fee of $ 1.5 million in three installments of $ 0.5 million in january 2020 , april 2020 and july 2020 , which is included in accrued expenses on our consolidated balance sheet . with respect to any products we commercialize under the rigel license agreement , we will pay rigel quarterly tiered royalties on our annual net sales of each product at a high single digit percentage of annual net sales , subject to specified reductions until the date that all of the patent rights for that product have expired , as determined on a country-by-country and product-by- 61 product basis or , in specified countries under specified circumstances , 10 years from the first commercial sale of such product . the rigel license agreement terminates on the date of expiration of all royalty obligations unless earlier terminated by either party for a material breach . we may also terminate the rigel license agreement without cause at any time upon advance written notice to rigel . rigel , after consultation with us , will be responsible for maintaining and prosecuting the patent rights , and we will have final decision-making authority regarding such patent rights for a product in the united states and the european union . to the extent that we jointly develop intellectual property , we will confer and decide which party will be responsible for filing , prosecuting and maintaining those patent rights . the rigel license agreement also establishes a joint steering committee composed of an equal number of representatives for each party , which will monitor progress in the development of products . stock purchase agreement with vixen pharmaceuticals , inc. and license agreement with columbia university in march 2016 , we entered into a stock purchase agreement , or the vixen agreement , with vixen pharmaceuticals , inc. , or vixen , and jak1 , llc , jak2 , llc and jak3 , llc , or together , the selling stockholders , and shareholder representative services llc as the representative of the selling stockholders . pursuant to the vixen agreement , we acquired all shares of vixen 's capital stock from the selling stockholders , or the vixen acquisition . following the vixen acquisition , vixen became our wholly-owned subsidiary . pursuant to the vixen agreement , we paid $ 0.6 million upfront and issued an aggregate of 159,420 shares of our common stock to the selling stockholders . we are obligated to make annual payments of $ 0.1 million through march 2022 , with such amounts being creditable against specified future payments that may be paid under the vixen agreement . under the vixen agreement we are obligated to make aggregate payments of up to $ 18.0 million to the selling stockholders upon the achievement of specified pre-commercialization milestones for three products covered by the vixen patent rights in the united states , the european union and japan , and aggregate payments of up to $ 22.5 million upon the achievement of specified commercial milestones for products covered by the vixen patent rights . with respect to any covered products that we commercialize under the vixen agreement , we are obligated to pay low single-digit royalties on net sales , subject to specified reductions , limitations and other adjustments , until the date that all of the patent rights for that product have expired , as determined on a country-by-country and product-by-product basis or , in specified circumstances , ten years from the first commercial sale of such product . if we sublicense any of vixen 's patent rights and know-how acquired pursuant to the vixen agreement , we will be obligated to pay a portion of any consideration we receive from such sublicenses in specified circumstances . as a result of the vixen acquisition , we became party to the exclusive license agreement , by and between vixen and the trustees of columbia university in the city of new york , or columbia , dated as of december 31 , 2015 , or , as amended , the columbia license agreement . under the columbia license agreement , we are obligated to pay columbia an annual license fee of $ 10,000 subject to specified adjustments for patent expenses incurred by columbia and creditable against any royalties that may be paid under the columbia license agreement . we are also obligated to pay up to an aggregate of $ 11.6 million upon the achievement of specified commercial milestones , including specified levels of net sales of products covered by columbia patent rights and or know-how , and royalties at a sub-single-digit percentage of annual net sales of products covered by columbia patent rights and or know-how , subject to specified adjustments . if we sublicense any of columbia 's patent rights and know-how acquired pursuant to the columbia license agreement , we will be obligated to pay columbia a portion of any consideration received from such sublicenses in specified circumstances . story_separator_special_tag we recognize revenue when collection of the consideration we are entitled to under a contract with a customer is probable . at contract inception , we assess the goods or services promised within a contract with a customer to identify the performance obligations , and to determine if they are distinct . we recognize revenue that is allocated to each distinct performance obligation when ( or as ) that performance obligation is satisfied . we only recognize revenue when collection of the consideration we are entitled to under a contract with a customer is probable . product sales , net we recognized revenue from product sales at the point the customer obtained control , which generally occurred upon delivery . we also included estimates of variable consideration in the same period revenue was recognized . components of variable consideration included trade discounts and allowances , product returns , government rebates , discounts and rebates , other incentives such as patient co-pay assistance , and other fee for service amounts . variable consideration was recorded on the consolidated balance sheet as either a reduction of accounts receivable , if payable to a customer , or as a current liability , if payable to a third-party other than a customer . we considered all relevant information when estimating variable consideration such as contractual and statutory requirements , specific known market events and trends , industry data and forecasted customer buying and payment patterns . the amount of net revenue that can be recognized is constrained by estimates of variable consideration which are included in the transaction price . payment terms with customers did not exceed one year and , therefore , we did not account for a financing component in our arrangements . we expensed incremental costs of obtaining a contract with a customer , including sales commissions , when incurred as the period of benefit was less than one year . trade discounts and allowances - we provided customers with trade discounts , rebates , allowances and or other incentives . we recorded estimates for these items as a reduction of revenue in the same period the revenue was recognized . government and payor rebates โ we contracted with , or were subject to arrangements with , certain third-party payors , including pharmacy benefit managers and government agencies , for the payment of rebates with respect to utilization of our commercial products . we also entered into agreements with gpos that provided for administrative fees and discounted pricing in the form of volume-based rebates . we were also subject to discount and rebate obligations under state medicaid programs and medicare . we recorded estimates for these discounts and rebates as a reduction of revenue in the same period the revenue was recognized . 67 other incentives โ we maintained a co-pay assistance program which was intended to provide financial assistance to qualified commercially-insured patients with prescription drug co-payments required by third-party payors . we estimated and recorded accruals for these incentives as a reduction of revenue in the period the revenue was recognized . our estimated amounts for co-pay assistance were based upon the number of claims and the cost per claim that we expected to receive associated with product that had been sold to customers but remained in the distribution channel at the end of each reporting period . product returns - consistent with industry practice , we have a product returns policy for rhofade which may provide customers a right of return for product purchased within a specified period prior to and subsequent to the product 's expiration date . the right of return lapses upon shipment of the product to a patient . we recorded an estimate for the amount of product which may be returned as a reduction of revenue in the period the related revenue was recognized . our estimates for product returns were based upon available industry data and our own sales information , including visibility into the inventory remaining in the distribution channel . there is no return liability associated with sales of eskata as we had a no returns policy for eskata when we commercialized it . contract research revenue related to laboratory services is generally recognized as the laboratory services are performed , based upon the rates specified in the contracts . under asc topic 606 , we elected to apply the โ right to invoice โ practical expedient when recognizing contract research revenue . we recognize contract research revenue in the amount to which we have the right to invoice . we recognize revenue related to grants as amounts become reimbursable under each grant , which is generally when research is performed , and the related costs are incurred . other revenue licenses of intellectual property โ we recognize revenue received from non-refundable , upfront fees related to the licensing of intellectual property when the intellectual property is determined to be distinct from the other performance obligations identified in the arrangement , the license has been transferred to the customer , and the customer is able to use and benefit from the license . milestone payments โ at the inception of each arrangement that includes milestone payments , we evaluate whether the milestones are considered probable of being reached and estimate the amount to be included in the transaction price using the most likely amount method . if it is probable that a significant revenue reversal would not occur , the associated milestone value is included in the amount allocated to the license of intellectual property . milestone payments that are not within our control or the control of the customer , such as regulatory approvals , are not considered probable of being achieved until those approvals are received . inventory inventory included the third-party cost of manufacturing and assembly of the finished product forms of eskata and rhofade , quality control and other overhead costs . inventory is stated at the lower of cost or net realizable value . inventory
| cash flows the following table summarizes our cash flows for each of the periods presented : replace_table_token_8_th operating activities during the year ended december 31 , 2019 , operating activities used $ 96.4 million of cash primarily resulting from our net loss of $ 161.4 million , partially offset by non-cash adjustments of $ 67.6 million . net cash used by changes in our operating assets and liabilities during the year ended december 31 , 2019 consisted of a $ 5.1 million decrease in accounts payable and accrued expenses and a $ 0.8 million increase in accounts receivable , which were partially offset by a $ 3.7 million decrease in prepaid expenses and other assets . the decrease in accounts payable and accrued expenses was primarily driven by lower levels of expenses , including sales discounts and allowances , as the result of the disposition of rhofade , and lower research and development expenses as a result of the completion of our two pivotal phase 3 clinical trials for a-101 45 % topical solution , as well as the timing of vendor invoicing and payments . the decrease in prepaid expenses and other assets was due to research and development activities primarily related to preclinical development activities for ati-450 and ati-502 , which concluded during the year ended december 31 , 2019 , and the elimination of sales and marketing activities as a result of the disposition of rhofade in october 2019. the increase in accounts receivable was primarily the result of the timing of cash receipts from our contract research customers . non-cash expenses of $ 67.6 million were composed of an intangible asset impairment charge of $ 27.6 million , a goodwill impairment charge of $ 18.5 million , stock-based compensation expense of $ 16.2 million , a charge of $ 0.7 million related to the change in the fair value of contingent consideration and depreciation and amortization expense of $ 6.4 million , partially offset by a gain of $ 1.9 million recognized on the disposition of rhofade .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows the following table summarizes our cash flows for each of the periods presented : replace_table_token_8_th operating activities during the year ended december 31 , 2019 , operating activities used $ 96.4 million of cash primarily resulting from our net loss of $ 161.4 million , partially offset by non-cash adjustments of $ 67.6 million . net cash used by changes in our operating assets and liabilities during the year ended december 31 , 2019 consisted of a $ 5.1 million decrease in accounts payable and accrued expenses and a $ 0.8 million increase in accounts receivable , which were partially offset by a $ 3.7 million decrease in prepaid expenses and other assets . the decrease in accounts payable and accrued expenses was primarily driven by lower levels of expenses , including sales discounts and allowances , as the result of the disposition of rhofade , and lower research and development expenses as a result of the completion of our two pivotal phase 3 clinical trials for a-101 45 % topical solution , as well as the timing of vendor invoicing and payments . the decrease in prepaid expenses and other assets was due to research and development activities primarily related to preclinical development activities for ati-450 and ati-502 , which concluded during the year ended december 31 , 2019 , and the elimination of sales and marketing activities as a result of the disposition of rhofade in october 2019. the increase in accounts receivable was primarily the result of the timing of cash receipts from our contract research customers . non-cash expenses of $ 67.6 million were composed of an intangible asset impairment charge of $ 27.6 million , a goodwill impairment charge of $ 18.5 million , stock-based compensation expense of $ 16.2 million , a charge of $ 0.7 million related to the change in the fair value of contingent consideration and depreciation and amortization expense of $ 6.4 million , partially offset by a gain of $ 1.9 million recognized on the disposition of rhofade .
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Suspicious Activity Report : under this agreement , we may develop these jak inhibitors for the treatment of alopecia areata , or aa , and other dermatological conditions . we paid rigel an upfront nonrefundable payment of $ 8.0 million in 2015 and $ 4.0 million upon the achievement of a specified development milestone in 2019. in addition , we have agreed to make remaining aggregate payments of up to $ 76.0 million upon the achievement of specified development milestones , such as clinical trials and regulatory approvals . further , we have agreed to pay up to an additional $ 10.5 million to rigel upon the achievement of a second set of development milestones . in addition , in connection with the amendment of the agreement in october 2019 , we agreed to pay rigel an amendment fee of $ 1.5 million in three installments of $ 0.5 million in january 2020 , april 2020 and july 2020 , which is included in accrued expenses on our consolidated balance sheet . with respect to any products we commercialize under the rigel license agreement , we will pay rigel quarterly tiered royalties on our annual net sales of each product at a high single digit percentage of annual net sales , subject to specified reductions until the date that all of the patent rights for that product have expired , as determined on a country-by-country and product-by- 61 product basis or , in specified countries under specified circumstances , 10 years from the first commercial sale of such product . the rigel license agreement terminates on the date of expiration of all royalty obligations unless earlier terminated by either party for a material breach . we may also terminate the rigel license agreement without cause at any time upon advance written notice to rigel . rigel , after consultation with us , will be responsible for maintaining and prosecuting the patent rights , and we will have final decision-making authority regarding such patent rights for a product in the united states and the european union . to the extent that we jointly develop intellectual property , we will confer and decide which party will be responsible for filing , prosecuting and maintaining those patent rights . the rigel license agreement also establishes a joint steering committee composed of an equal number of representatives for each party , which will monitor progress in the development of products . stock purchase agreement with vixen pharmaceuticals , inc. and license agreement with columbia university in march 2016 , we entered into a stock purchase agreement , or the vixen agreement , with vixen pharmaceuticals , inc. , or vixen , and jak1 , llc , jak2 , llc and jak3 , llc , or together , the selling stockholders , and shareholder representative services llc as the representative of the selling stockholders . pursuant to the vixen agreement , we acquired all shares of vixen 's capital stock from the selling stockholders , or the vixen acquisition . following the vixen acquisition , vixen became our wholly-owned subsidiary . pursuant to the vixen agreement , we paid $ 0.6 million upfront and issued an aggregate of 159,420 shares of our common stock to the selling stockholders . we are obligated to make annual payments of $ 0.1 million through march 2022 , with such amounts being creditable against specified future payments that may be paid under the vixen agreement . under the vixen agreement we are obligated to make aggregate payments of up to $ 18.0 million to the selling stockholders upon the achievement of specified pre-commercialization milestones for three products covered by the vixen patent rights in the united states , the european union and japan , and aggregate payments of up to $ 22.5 million upon the achievement of specified commercial milestones for products covered by the vixen patent rights . with respect to any covered products that we commercialize under the vixen agreement , we are obligated to pay low single-digit royalties on net sales , subject to specified reductions , limitations and other adjustments , until the date that all of the patent rights for that product have expired , as determined on a country-by-country and product-by-product basis or , in specified circumstances , ten years from the first commercial sale of such product . if we sublicense any of vixen 's patent rights and know-how acquired pursuant to the vixen agreement , we will be obligated to pay a portion of any consideration we receive from such sublicenses in specified circumstances . as a result of the vixen acquisition , we became party to the exclusive license agreement , by and between vixen and the trustees of columbia university in the city of new york , or columbia , dated as of december 31 , 2015 , or , as amended , the columbia license agreement . under the columbia license agreement , we are obligated to pay columbia an annual license fee of $ 10,000 subject to specified adjustments for patent expenses incurred by columbia and creditable against any royalties that may be paid under the columbia license agreement . we are also obligated to pay up to an aggregate of $ 11.6 million upon the achievement of specified commercial milestones , including specified levels of net sales of products covered by columbia patent rights and or know-how , and royalties at a sub-single-digit percentage of annual net sales of products covered by columbia patent rights and or know-how , subject to specified adjustments . if we sublicense any of columbia 's patent rights and know-how acquired pursuant to the columbia license agreement , we will be obligated to pay columbia a portion of any consideration received from such sublicenses in specified circumstances . story_separator_special_tag we recognize revenue when collection of the consideration we are entitled to under a contract with a customer is probable . at contract inception , we assess the goods or services promised within a contract with a customer to identify the performance obligations , and to determine if they are distinct . we recognize revenue that is allocated to each distinct performance obligation when ( or as ) that performance obligation is satisfied . we only recognize revenue when collection of the consideration we are entitled to under a contract with a customer is probable . product sales , net we recognized revenue from product sales at the point the customer obtained control , which generally occurred upon delivery . we also included estimates of variable consideration in the same period revenue was recognized . components of variable consideration included trade discounts and allowances , product returns , government rebates , discounts and rebates , other incentives such as patient co-pay assistance , and other fee for service amounts . variable consideration was recorded on the consolidated balance sheet as either a reduction of accounts receivable , if payable to a customer , or as a current liability , if payable to a third-party other than a customer . we considered all relevant information when estimating variable consideration such as contractual and statutory requirements , specific known market events and trends , industry data and forecasted customer buying and payment patterns . the amount of net revenue that can be recognized is constrained by estimates of variable consideration which are included in the transaction price . payment terms with customers did not exceed one year and , therefore , we did not account for a financing component in our arrangements . we expensed incremental costs of obtaining a contract with a customer , including sales commissions , when incurred as the period of benefit was less than one year . trade discounts and allowances - we provided customers with trade discounts , rebates , allowances and or other incentives . we recorded estimates for these items as a reduction of revenue in the same period the revenue was recognized . government and payor rebates โ we contracted with , or were subject to arrangements with , certain third-party payors , including pharmacy benefit managers and government agencies , for the payment of rebates with respect to utilization of our commercial products . we also entered into agreements with gpos that provided for administrative fees and discounted pricing in the form of volume-based rebates . we were also subject to discount and rebate obligations under state medicaid programs and medicare . we recorded estimates for these discounts and rebates as a reduction of revenue in the same period the revenue was recognized . 67 other incentives โ we maintained a co-pay assistance program which was intended to provide financial assistance to qualified commercially-insured patients with prescription drug co-payments required by third-party payors . we estimated and recorded accruals for these incentives as a reduction of revenue in the period the revenue was recognized . our estimated amounts for co-pay assistance were based upon the number of claims and the cost per claim that we expected to receive associated with product that had been sold to customers but remained in the distribution channel at the end of each reporting period . product returns - consistent with industry practice , we have a product returns policy for rhofade which may provide customers a right of return for product purchased within a specified period prior to and subsequent to the product 's expiration date . the right of return lapses upon shipment of the product to a patient . we recorded an estimate for the amount of product which may be returned as a reduction of revenue in the period the related revenue was recognized . our estimates for product returns were based upon available industry data and our own sales information , including visibility into the inventory remaining in the distribution channel . there is no return liability associated with sales of eskata as we had a no returns policy for eskata when we commercialized it . contract research revenue related to laboratory services is generally recognized as the laboratory services are performed , based upon the rates specified in the contracts . under asc topic 606 , we elected to apply the โ right to invoice โ practical expedient when recognizing contract research revenue . we recognize contract research revenue in the amount to which we have the right to invoice . we recognize revenue related to grants as amounts become reimbursable under each grant , which is generally when research is performed , and the related costs are incurred . other revenue licenses of intellectual property โ we recognize revenue received from non-refundable , upfront fees related to the licensing of intellectual property when the intellectual property is determined to be distinct from the other performance obligations identified in the arrangement , the license has been transferred to the customer , and the customer is able to use and benefit from the license . milestone payments โ at the inception of each arrangement that includes milestone payments , we evaluate whether the milestones are considered probable of being reached and estimate the amount to be included in the transaction price using the most likely amount method . if it is probable that a significant revenue reversal would not occur , the associated milestone value is included in the amount allocated to the license of intellectual property . milestone payments that are not within our control or the control of the customer , such as regulatory approvals , are not considered probable of being achieved until those approvals are received . inventory inventory included the third-party cost of manufacturing and assembly of the finished product forms of eskata and rhofade , quality control and other overhead costs . inventory is stated at the lower of cost or net realizable value . inventory
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2,518 | we were also recognized in 2015 as a strong performer by forrester research , inc in its independence report , โ the forrester wave : through-channel marketing automation platforms , q3 2015 . โ in recent years , our iapps content manager and iapps commerce products were selected as finalists for the 2014 , 2013 , and 2012 codie awards for best content management solution and best electronic commerce solution , globally . in 2014 and 2013 , bridgeline digital won twenty-five horizon interactive awards for outstanding development of web applications and websites . also in 2013 , the web marketing association sponsored internet advertising competition honored bridgeline digital with three awards for iapps customer websites and b2b magazine selected bridgeline digital as one of the top interactive technology companies in the united states . kmworld magazine editors selected bridgeline digital as one of the 100 companies that matter in knowledge management and also selected iapps as a trend setting product in 2013. bridgeline digital was incorporated under the laws of the state of delaware on august 28 , 2000 . 18 locations the company 's corporate office is located in burlington , massachusetts . the company maintains regional field offices serving the following geographical locations : boston , ma ; chicago , il ; denver , co ; and tampa , fl . the company has one wholly-owned subsidiary , bridgeline digital pvt . ltd. located in bangalore , india . reverse stock split on june 29 , 2017 , the company 's shareholders and the board of directors approved a reverse stock split pursuant to which all classes of our issued and outstanding shares of common stock at the close of business on such date were combined and reconstituted into a smaller number of shares of common stock in a ratio of 1 share of common stock for every 5 shares of common stock ( โ 1-for-5 reverse stock split โ ) . the 1-for-5 reverse stock split was effective as of close of business on july 24 , 2017 and the company 's stock began trading on a split-adjusted basis on july 25 , 2017. the reverse stock split reduce d the number of shares of the company 's common stock currently outstanding from approximately 21 million shares to approximately 4.2 million shares . proportional adjustments have been made to the conversion and exercise prices of the company 's outstanding convertible preferred stock , warrants , restricted stock awards , and stock options , and to the number of shares issued and issuable under the company 's stock incentive plans . upon the effectiveness of the 1-for-5 reverse stock split , each five shares of the company 's issued and outstanding common stock were automatically combined and converted into one issued and outstanding share of common stock , par value $ .001. the company did not issue any fractional shares in connection with the reverse stock split . instead , fractional share interests were rounded up to the next largest whole share . the reverse stock split does not modify the rights or preferences of the common stock . the number of authorized shares of the company 's common stock remains at 50 million shares and the par value remains $ 0.001. our consolidated financial statements have been retroactively adjusted to reflect the effects of the 1-for-5 reverse stock split . sales and marketing bridgeline employs a direct sales force and each sale takes on average 2-6 months to complete . each franchise/multi-unit organization sale takes on average one year to complete . our direct sales force focuses its efforts selling to medium-sized and large companies . these companies are generally categorized in the following vertical markets : ( i ) financial services ; ( ii ) franchises/multi-unit organizations ; ( iii ) retail brand names ; ( iv ) health services and life sciences ; ( v ) technology ( software and hardware ) ; ( vi ) credit unions and regional banks and ( vii ) associations and foundations . we have five sales geographic locations in the united states . we have business development professionals dedicated to identifying and establishing strategic alliances for iapps and iappsds . we have maintained a strategic alliance with ups logistics since 2012. bridgeline and ups logistics signed a multi-year agreement to offer b2b and b2c ecommerce web stores with an end-to-end ecommerce offering comprised of bridgeline 's ecommerce fulfilled solution and ups logistics and fulfillment services . the combined bridgeline and ups logistics offering provides customers with the ability to manage the ecommerce and supply chain fulfillment needs and was designed to benefit mid-market and larger online web stores who seek end to end solutions . we continue to pursue significant strategic alliances that will enhance the sales and distribution opportunities of iapps related intellectual property . acquisitions bridgeline will continue to evaluate expanding its distribution of iapps and its interactive development capabilities through acquisitions . we may make additional acquisitions in the foreseeable future . these potential acquisitions will be consistent with our iapps platform distribution strategy and growth strategy by providing bridgeline with new geographical distribution opportunities , an expanded customer base , an expanded sales force and an expanded developer force . in addition , integrating acquired companies into our existing operations allows us to consolidate the finance , human resources , legal , marketing , research and development of the acquired businesses with our own internal resources , hence reducing the aggregate of these expenses for the combined businesses and resulting in improved operating results . 19 cust omer information we currently have over 3,000 active customers . for the year ended september 30 , 2017 , two customers each represented approximately 12 % of the company 's total revenue . for the year ended september 30 , 2016 , one customer represented approximately 10 % of the company 's total revenue . story_separator_special_tag revenue from perpetual licenses sold through resellers is recognized upon delivery to the end user as long as evidence of an arrangement exists , collectability is probable , and the fee is fixed and determinable . revenue for subscription licenses is recognized monthly as the services are delivered . digital e ngagement services digital engagement services include professional services primarily related to the company 's web development solutions that address specific customer needs such as digital strategy , information architecture and usability engineering , .net development , rich media development , back end integration , search engine optimization , quality assurance and project management . digital engagement services are contracted for on either a fixed price or time and materials basis . for its fixed price engagements , after assigning the relative selling price to the elements of the arrangement , the company applies the proportional performance model ( if not subject to contract accounting ) to recognize revenue based on cost incurred in relation to total estimated cost at completion . the company has determined that labor costs are the most appropriate measure to allocate revenue among reporting periods , as they are the primary input when providing application development services . customers are invoiced monthly or upon the completion of milestones . for milestone based projects , since milestone pricing is based on expected hourly costs and the duration of such engagements is relatively short , this input approach principally mirrors an output approach under the proportional performance model for revenue recognition on such fixed priced engagements . for time and materials contracts , revenues are recognized as the services are provided . digital engagement services also include retained professional services contracted for on an โ on call โ basis or for a certain number of hours each month . such arrangements generally provide for a guaranteed availability of a number of professional services hours each month on a โ use it or lose it โ basis . for retained professional services sold on a stand-alone basis the company recognizes revenue as the services are delivered or over the term of the contractual retainer period . these arrangements do not require formal customer acceptance and do not grant any future right to labor hours contracted for but not used . subscriptions and pe rpetual licenses the company licenses its software on either a perpetual or subscription basis . customers who license the software on a perpetual basis receive rights to use the software for an indefinite time period and an option to purchase post-customer support ( โ pcs โ ) . for arrangements that consist of a perpetual license and pcs , as long as vendor specific objective evidence ( โ vsoe โ ) exists for the pcs , then pcs revenue is recognized ratably on a straight-line basis over the period of performance and the perpetual license is recognized on a residual basis . under the residual method , the fair value of the undelivered elements is deferred and the remaining portion of the arrangement fee is allocated to the delivered elements and recognized as revenue , assuming all other revenue recognition criteria have been met . customers may also license the software on a subscription basis , which can be described as โ software as a service โ or โ saas โ . saas is a model of software deployment where an application is hosted as a service provided to customers across the internet . subscription agreements include access to the company 's software application via an internet connection , the related hosting of the application , and pcs . customers receive automatic updates and upgrades , and new releases of the products as soon as they become available . customers can not take possession of the software . subscription agreements are either annual or month-to-month arrangements that provide for termination for convenience by either party upon 90 days ' notice . revenue is recognized monthly as the services are delivered . set up fees paid by customers in connection with subscription services are deferred and recognized ratably over the longer of the life of subscription period or the expected lives of customer relationships . the company continues to evaluate the length of the amortization period of the set up fees as it gains more experience with customer contract renewals . 28 managed service hosting managed service hosting includes hosting arrangements that provide for the use of certain hardware and infrastructure for those customers who do not wish to host our applications independently . hosting agreements are either annual or month-to-month arrangements that provide for termination for convenience by either party generally upon 30-days ' notice . revenue is recognized monthly as the hosting services are delivered . set up fees paid by customers in connection with managed hosting services are deferred and recognized ratably over the life of the hosting period . m ultiple element arrangements in accounting for multiple element arrangements , the company follows either asc topic 605-985 revenue recognition software or asc topic 605-25 revenue recognition multiple element arrangements , as applicable . in october 2009 , the fasb issued accounting standards update no . 2009-13 , revenue recognition : multiple-deliverable revenue arrangements ( โ asu 2009-13 โ ) . asu 2009-13 provides amendments to certain paragraphs of previously issued asc subtopic 605-25 โ revenue recognition : multiple-deliverable revenue arrangements . in accordance with asu 2009-13 , each deliverable within a multiple-deliverable revenue arrangement is accounted for as a separate unit of accounting if both of the following criteria are met ( 1 ) the delivered item has value to the customer on a standalone basis and ( 2 ) for an arrangement that includes a right of return relative to the delivered item , delivery or performance of the delivered item is considered probable and within our control . if the deliverables do not meet the criteria for being a separate unit of accounting then they are combined with a deliverable
| liquidity and capital resources cash flows operating activities cash used in operating activities was $ 940 thousand for fiscal 2017 compared to cash used in operating activities of $ 2.7 million for fiscal 2016. this improvement was driven by higher accounts receivables collections and the increase in operating income . investing activities cash used in investing activities was $ 93 thousand for fiscal 2017 compared with $ 165 thousand for fiscal 2016. the decrease was primarily due to a significant reduction in purchases of capital equipment and software in fiscal 2017 than in fiscal 2016 due to the transition from our network operations center to a cloud-based amazon web services model . 25 financing activities cash provided by financing activities was $ 1.1 million for fiscal 2017 compared with $ 3.2 million for fiscal 2016. in fiscal 2017 , we raised a net of $ 852 thousand from sales of common stock and had net borrowings on our bank line of credit of $ 385 thousand . at september 30 , 2017 , we had an outstanding balance under our credit line with heritage bank of $ 2.5 million . capital resources and liquidity outloo k on october 10 , 2017 , the company entered into a loan and security agreement ( the โ loan agreement โ ) with montage capital ii , l.p. ( โ montage โ ) . the loan agreement has a thirty-six ( 36 ) month term which expires on october 10 , 2020. the loan agreement provides for up to $ 1.5 million of borrowing in the form of a non-revolving term loan which may be used by the company for working capital purposes ( the โ loan โ ) .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources cash flows operating activities cash used in operating activities was $ 940 thousand for fiscal 2017 compared to cash used in operating activities of $ 2.7 million for fiscal 2016. this improvement was driven by higher accounts receivables collections and the increase in operating income . investing activities cash used in investing activities was $ 93 thousand for fiscal 2017 compared with $ 165 thousand for fiscal 2016. the decrease was primarily due to a significant reduction in purchases of capital equipment and software in fiscal 2017 than in fiscal 2016 due to the transition from our network operations center to a cloud-based amazon web services model . 25 financing activities cash provided by financing activities was $ 1.1 million for fiscal 2017 compared with $ 3.2 million for fiscal 2016. in fiscal 2017 , we raised a net of $ 852 thousand from sales of common stock and had net borrowings on our bank line of credit of $ 385 thousand . at september 30 , 2017 , we had an outstanding balance under our credit line with heritage bank of $ 2.5 million . capital resources and liquidity outloo k on october 10 , 2017 , the company entered into a loan and security agreement ( the โ loan agreement โ ) with montage capital ii , l.p. ( โ montage โ ) . the loan agreement has a thirty-six ( 36 ) month term which expires on october 10 , 2020. the loan agreement provides for up to $ 1.5 million of borrowing in the form of a non-revolving term loan which may be used by the company for working capital purposes ( the โ loan โ ) .
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Suspicious Activity Report : we were also recognized in 2015 as a strong performer by forrester research , inc in its independence report , โ the forrester wave : through-channel marketing automation platforms , q3 2015 . โ in recent years , our iapps content manager and iapps commerce products were selected as finalists for the 2014 , 2013 , and 2012 codie awards for best content management solution and best electronic commerce solution , globally . in 2014 and 2013 , bridgeline digital won twenty-five horizon interactive awards for outstanding development of web applications and websites . also in 2013 , the web marketing association sponsored internet advertising competition honored bridgeline digital with three awards for iapps customer websites and b2b magazine selected bridgeline digital as one of the top interactive technology companies in the united states . kmworld magazine editors selected bridgeline digital as one of the 100 companies that matter in knowledge management and also selected iapps as a trend setting product in 2013. bridgeline digital was incorporated under the laws of the state of delaware on august 28 , 2000 . 18 locations the company 's corporate office is located in burlington , massachusetts . the company maintains regional field offices serving the following geographical locations : boston , ma ; chicago , il ; denver , co ; and tampa , fl . the company has one wholly-owned subsidiary , bridgeline digital pvt . ltd. located in bangalore , india . reverse stock split on june 29 , 2017 , the company 's shareholders and the board of directors approved a reverse stock split pursuant to which all classes of our issued and outstanding shares of common stock at the close of business on such date were combined and reconstituted into a smaller number of shares of common stock in a ratio of 1 share of common stock for every 5 shares of common stock ( โ 1-for-5 reverse stock split โ ) . the 1-for-5 reverse stock split was effective as of close of business on july 24 , 2017 and the company 's stock began trading on a split-adjusted basis on july 25 , 2017. the reverse stock split reduce d the number of shares of the company 's common stock currently outstanding from approximately 21 million shares to approximately 4.2 million shares . proportional adjustments have been made to the conversion and exercise prices of the company 's outstanding convertible preferred stock , warrants , restricted stock awards , and stock options , and to the number of shares issued and issuable under the company 's stock incentive plans . upon the effectiveness of the 1-for-5 reverse stock split , each five shares of the company 's issued and outstanding common stock were automatically combined and converted into one issued and outstanding share of common stock , par value $ .001. the company did not issue any fractional shares in connection with the reverse stock split . instead , fractional share interests were rounded up to the next largest whole share . the reverse stock split does not modify the rights or preferences of the common stock . the number of authorized shares of the company 's common stock remains at 50 million shares and the par value remains $ 0.001. our consolidated financial statements have been retroactively adjusted to reflect the effects of the 1-for-5 reverse stock split . sales and marketing bridgeline employs a direct sales force and each sale takes on average 2-6 months to complete . each franchise/multi-unit organization sale takes on average one year to complete . our direct sales force focuses its efforts selling to medium-sized and large companies . these companies are generally categorized in the following vertical markets : ( i ) financial services ; ( ii ) franchises/multi-unit organizations ; ( iii ) retail brand names ; ( iv ) health services and life sciences ; ( v ) technology ( software and hardware ) ; ( vi ) credit unions and regional banks and ( vii ) associations and foundations . we have five sales geographic locations in the united states . we have business development professionals dedicated to identifying and establishing strategic alliances for iapps and iappsds . we have maintained a strategic alliance with ups logistics since 2012. bridgeline and ups logistics signed a multi-year agreement to offer b2b and b2c ecommerce web stores with an end-to-end ecommerce offering comprised of bridgeline 's ecommerce fulfilled solution and ups logistics and fulfillment services . the combined bridgeline and ups logistics offering provides customers with the ability to manage the ecommerce and supply chain fulfillment needs and was designed to benefit mid-market and larger online web stores who seek end to end solutions . we continue to pursue significant strategic alliances that will enhance the sales and distribution opportunities of iapps related intellectual property . acquisitions bridgeline will continue to evaluate expanding its distribution of iapps and its interactive development capabilities through acquisitions . we may make additional acquisitions in the foreseeable future . these potential acquisitions will be consistent with our iapps platform distribution strategy and growth strategy by providing bridgeline with new geographical distribution opportunities , an expanded customer base , an expanded sales force and an expanded developer force . in addition , integrating acquired companies into our existing operations allows us to consolidate the finance , human resources , legal , marketing , research and development of the acquired businesses with our own internal resources , hence reducing the aggregate of these expenses for the combined businesses and resulting in improved operating results . 19 cust omer information we currently have over 3,000 active customers . for the year ended september 30 , 2017 , two customers each represented approximately 12 % of the company 's total revenue . for the year ended september 30 , 2016 , one customer represented approximately 10 % of the company 's total revenue . story_separator_special_tag revenue from perpetual licenses sold through resellers is recognized upon delivery to the end user as long as evidence of an arrangement exists , collectability is probable , and the fee is fixed and determinable . revenue for subscription licenses is recognized monthly as the services are delivered . digital e ngagement services digital engagement services include professional services primarily related to the company 's web development solutions that address specific customer needs such as digital strategy , information architecture and usability engineering , .net development , rich media development , back end integration , search engine optimization , quality assurance and project management . digital engagement services are contracted for on either a fixed price or time and materials basis . for its fixed price engagements , after assigning the relative selling price to the elements of the arrangement , the company applies the proportional performance model ( if not subject to contract accounting ) to recognize revenue based on cost incurred in relation to total estimated cost at completion . the company has determined that labor costs are the most appropriate measure to allocate revenue among reporting periods , as they are the primary input when providing application development services . customers are invoiced monthly or upon the completion of milestones . for milestone based projects , since milestone pricing is based on expected hourly costs and the duration of such engagements is relatively short , this input approach principally mirrors an output approach under the proportional performance model for revenue recognition on such fixed priced engagements . for time and materials contracts , revenues are recognized as the services are provided . digital engagement services also include retained professional services contracted for on an โ on call โ basis or for a certain number of hours each month . such arrangements generally provide for a guaranteed availability of a number of professional services hours each month on a โ use it or lose it โ basis . for retained professional services sold on a stand-alone basis the company recognizes revenue as the services are delivered or over the term of the contractual retainer period . these arrangements do not require formal customer acceptance and do not grant any future right to labor hours contracted for but not used . subscriptions and pe rpetual licenses the company licenses its software on either a perpetual or subscription basis . customers who license the software on a perpetual basis receive rights to use the software for an indefinite time period and an option to purchase post-customer support ( โ pcs โ ) . for arrangements that consist of a perpetual license and pcs , as long as vendor specific objective evidence ( โ vsoe โ ) exists for the pcs , then pcs revenue is recognized ratably on a straight-line basis over the period of performance and the perpetual license is recognized on a residual basis . under the residual method , the fair value of the undelivered elements is deferred and the remaining portion of the arrangement fee is allocated to the delivered elements and recognized as revenue , assuming all other revenue recognition criteria have been met . customers may also license the software on a subscription basis , which can be described as โ software as a service โ or โ saas โ . saas is a model of software deployment where an application is hosted as a service provided to customers across the internet . subscription agreements include access to the company 's software application via an internet connection , the related hosting of the application , and pcs . customers receive automatic updates and upgrades , and new releases of the products as soon as they become available . customers can not take possession of the software . subscription agreements are either annual or month-to-month arrangements that provide for termination for convenience by either party upon 90 days ' notice . revenue is recognized monthly as the services are delivered . set up fees paid by customers in connection with subscription services are deferred and recognized ratably over the longer of the life of subscription period or the expected lives of customer relationships . the company continues to evaluate the length of the amortization period of the set up fees as it gains more experience with customer contract renewals . 28 managed service hosting managed service hosting includes hosting arrangements that provide for the use of certain hardware and infrastructure for those customers who do not wish to host our applications independently . hosting agreements are either annual or month-to-month arrangements that provide for termination for convenience by either party generally upon 30-days ' notice . revenue is recognized monthly as the hosting services are delivered . set up fees paid by customers in connection with managed hosting services are deferred and recognized ratably over the life of the hosting period . m ultiple element arrangements in accounting for multiple element arrangements , the company follows either asc topic 605-985 revenue recognition software or asc topic 605-25 revenue recognition multiple element arrangements , as applicable . in october 2009 , the fasb issued accounting standards update no . 2009-13 , revenue recognition : multiple-deliverable revenue arrangements ( โ asu 2009-13 โ ) . asu 2009-13 provides amendments to certain paragraphs of previously issued asc subtopic 605-25 โ revenue recognition : multiple-deliverable revenue arrangements . in accordance with asu 2009-13 , each deliverable within a multiple-deliverable revenue arrangement is accounted for as a separate unit of accounting if both of the following criteria are met ( 1 ) the delivered item has value to the customer on a standalone basis and ( 2 ) for an arrangement that includes a right of return relative to the delivered item , delivery or performance of the delivered item is considered probable and within our control . if the deliverables do not meet the criteria for being a separate unit of accounting then they are combined with a deliverable
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2,519 | net revenues for the year ended december 31 , 2014 were $ 56.0 million compared to $ 30.1 million for the same period in 2013 , an increase of $ 25.9 million , or 86.1 % , primarily as a result of the following factors : ยท net revenues for generic pharmaceutical products were $ 35.9 million during the year ended december 31 , 2014 , an increase of 85.9 % compared to $ 19.3 million for the same period in 2013. the primary reason for the increase was a $ 13.8 million increase in sales of eemt , which was the result of increases in both market share and prices . in addition , we experienced increased sales for our opium tincture , hc enema , and fluvoxamine products . in the third quarter of 2013 , a significant competitor stopped producing eemt , which led to an increase in our market share and enabled us to significantly increase the price we charge for the product . however , in the first half of 2014 , the same competitor re-entered the market , which negatively impacted our eemt unit sales beginning in the second quarter of 2014 , which impact may continue in 2015. eemt revenues for the year ended december 31 , 2014 also were reduced by $ 3.9 million in charges related to price protection contract obligations . as described in item 1. business โ government regulations โ unapproved products , we market eemt and opium tincture without fda-approved ndas . the fda 's policy with respect to the continued marketing of unapproved products appears in the fda 's september 2011 compliance policy guide sec . 440.100 titled `` marketed new drugs without approved ndas or andas . `` under this policy , the fda has stated that it will follow a risk-based approach with regard to enforcement against marketing of unapproved products . the fda evaluates whether to initiate enforcement action on a case-by-case basis , but gives higher priority to enforcement action against products in certain categories , such as those with potential safety risks or that lack evidence of effectiveness . while we believe that , so long as we comply with applicable manufacturing standards , the fda will not take action against us under the current enforcement policy , we can offer no assurances that the fda will continue this policy or not take a contrary position with any individual product or group of products . our combined net revenues for these products for the years ended december 31 , 2014 and 2013 were $ 29.8 million and $ 14.6 million , respectively . 37 ยท net revenues for branded pharmaceutical products were $ 11.0 million during the year ended december 31 , 2014 , an increase of 226.7 % compared to $ 3.4 million for the same period in 2013. the primary reasons for the increase were $ 3.3 million of sales from our lithobid product , representing six months of sales and $ 4.4 million of sales from our vancocin product , representing five months of sales . the product rights to lithobid and vancocin were acquired during the third quarter of 2014. these increase were partially offset by a decrease in sales of reglan . ยท contract manufacturing revenues were $ 5.9 million during the year ended december 31 , 2014 , a decrease of 1.4 % compared to $ 6.0 million for the same period in 2013 , due to decreased orders from contract manufacturing customers during 2014. as described in item 1. business โ government regulations โ unapproved products , we contract manufacture a group of products on behalf of a customer that are marketed by that customer without an fda-approved nda . if the fda took enforcement action against such customer , the customer may be required to seek fda approval for the group of products or withdraw them from the market . our contract manufacturing revenues for the group of unapproved products for the years ended december 31 , 2014 and 2013 were $ 1.2 million and $ 2.0 million , respectively . ยท contract services and other income were $ 3.2 million during the year ended december 31 , 2014 , an increase of 124.8 % from $ 1.4 million for the same period in 2013 , due primarily to royalties received on sales of the authorized generic of vancocin , the product rights to which were acquired in the third quarter of 2014. this increase was partially offset by a $ 0.5 million non-recurring payment in december 2013 from teva in relation to the teva license agreement acquired in the merger , as well as decreased contract services . as described in item 1. business โ government regulations โ unapproved products , we receive royalties on the net sales of a group of contract-manufactured products , which are marketed by the customer without an fda-approved nda . if the fda took enforcement action against such customer , the customer may be required to seek fda approval for the group of products or withdraw them from the market . our royalties on the net sales of these unapproved products were $ 0.3 million for each of the years ended december 31 , 2014 and 2013. cost of sales ( exclusive of depreciation and amortization ) ( in thousands ) years ended december 31 , 2014 2013 change % change cost of sales ( excl . depreciation and amortization ) $ 11,473 $ 9,974 $ 1,499 15.0 % cost of sales consists of direct labor , including manufacturing and packaging , active and inactive pharmaceutical ingredients , freight costs , and packaging components . cost of sales does not include depreciation and amortization expense , which is reported as a separate component of operating expenses on our consolidated statements of operations . story_separator_special_tag for these services , revenue is recognized according to the terms of the agreement with the customer , which sometimes include substantive , measurable risk-based milestones , and when we have a contractual right to receive such payment , the contract price is fixed or determinable , the collection of the resulting receivable is reasonably assured , and we have no further performance obligations under the agreement . we recognized $ 3.2 million and $ 1.4 million of revenue related to contract services in 2014 and 2013 , respectively . our revenue recognition accounting methodologies contain uncertainties because they require management to make assumptions and to apply judgment to estimate the amount of discounts , rebates , promotional adjustments , price adjustments , returns , chargebacks , and other potential adjustments , which are accounted for as reductions to revenue . we make these estimates based on historical experience . we have not made any material changes to our revenue recognition policies during the years ended december 31 , 2014 and 2013. we believe it is unlikely that there will be a material change in the future estimates or assumptions used to measure estimates for discounts , rebates , promotional adjustments , price adjustments , returns , chargebacks , and other potential adjustments . however , if actual results were not consistent with our estimates , we could be exposed to losses or gains that could be material , as any changes to these estimates could cause an increase or decrease in revenue recognized during the year . for example , if there were a 10 % change to these adjustments throughout the year , net revenues and net income from continuing operations before benefit/ ( provision ) for income taxes for the year ended december 31 , 2014 would be affected by $ 4.7 million . accruals for chargebacks , rebates , returns and other allowances our generic and branded product revenues are typically subject to agreements with customers allowing chargebacks , medicaid rebates , product returns , dministrative fees , and other rebates and prompt payment discounts . we accrue for these items at the time of sale based on the estimates and methodologies described below . in the aggregate , these accruals , reflected as a decrease to gross sales , exceed 50 % of generic and branded gross product sales , reduce gross revenues to net revenues in the consolidated statements of operations , and are presented as current liabilities or reductions in accounts receivable in the consolidated balance sheets . we continually monitor and re-evaluate the accruals as additional information becomes available , which includes , among other things , updates to trade inventory levels , customer product mix , and trends in medicaid rebates experience . we make adjustments to the accruals at the end of each reporting period , to reflect any such updates to the relevant facts and circumstances . accruals are relieved upon receipt of payment from or issuance of credit to the customer , or payment of rebates and fees to customer and state medicaid programs . chargebacks as discussed in note 1 of item 8. consolidated financial statements , we estimate the amount of chargebacks based our actual historical experience . a number of factors influence current period chargebacks by impacting the average selling price ( โ asp โ ) of products , including customer mix , negotiated terms , product sales mix , volume of off-contract purchases , and wholesale acquisition cost ( โ wac โ ) . 45 we have not made any material changes to our policy for estimating chargeback accruals during the years ended december 31 , 2014 and 2013. we believe it is unlikely that there will be a material change in the future estimates or assumptions used to measure chargeback estimates . however , if actual results were not consistent with our estimates , we could be exposed to losses or gains that could be material , as changes to chargeback estimates could cause an increase or decrease in revenue recognized during the year and increase or decrease accounts receivable . if there were a 10 % change in the chargeback estimates throughout the year , our net revenues and net income from continuing operations before benefit/ ( provision ) for income taxes would be affected by $ 3.6 million for the year ended december 31 , 2014. medicaid rebates as discussed in note 1 of item 8. consolidated financial statements , our estimate for medicaid rebates is based upon our average manufacturer price , best price , product mix , levels of inventory in the distribution channel that we expect to be subject to medicaid rebates , and historical experience , which are invoiced in arrears by state medicaid programs . while such experience has allowed for reasonable estimation in the past , history may not always be an accurate indicator of future rebate experience , and trends in medicaid enrollment and which products are covered by medicaid could change . we have not made any material changes to our policy for estimating medicaid rebates during the years ended december 31 , 2014 and 2013. while we anticipate that we will have further increases in our quarterly medicaid rebate amounts related to sales of our lithobid and vancocin products , we do not believe that our assumptions used to measure estimates for medicaid rebates will change materially . however , if actual results were not consistent with our estimates , we could be exposed to losses or gains that could be material , as changes to medicaid rebate estimates could cause an increase or decrease in revenue recognized during the year and decrease or increase the medicaid rebate reserve . if there were a 10 % change in the medicaid rebate estimates throughout the year , our net revenues and net income from continuing operations before benefit/ ( provision ) for income taxes would be affected by $ 0.3 million for the
| sources and uses of cash debt financing in december 2014 , we issued $ 143.8 million of 3.0 % convertible senior notes in a registered public offering ( the โ december 2014 offering โ ) , which includes the $ 18.8 million of notes issued pursuant to the full exercise of the over-allotment option granted to the underwriters in the december 2014 offering . after deducting the underwriting discounts and commissions and other expenses ( including the net cost of the bond hedge and warrant , discussed below ) , the net proceeds from the offering were approximately $ 122.6 million . the notes were issued in order to raise funds to research , develop and commercialize our drug products ; to acquire complementary businesses , products , and technologies that we may identify from time to time ; and for other working capital and general corporate purposes . the notes pay 3.0 % interest semi-annually in arrears on june 1 and december 1 of each year , starting on june 1 , 2015. the notes are convertible into 2,068,792 shares of common stock , based on an initial conversion price of $ 69.48 per share . 42 a portion of the offering proceeds was used to simultaneously enter into โ bond hedge โ ( or purchased call ) and โ warrant โ ( or written call ) transactions with an affiliate of one of the offering underwriters ( collectively , the โ call option overlay โ ) . we entered into the call option overlay to synthetically raise the initial conversion price of the notes to $ 96.21 per share and reduce the potential common stock dilution that may arise from the conversion of the notes . the exercise price of the bond hedge is $ 69.48 per share , with an underlying 2,068,792 common shares ; the exercise price of the warrant is $ 96.21 per share , also with an underlying 2,068,792 common shares .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```sources and uses of cash debt financing in december 2014 , we issued $ 143.8 million of 3.0 % convertible senior notes in a registered public offering ( the โ december 2014 offering โ ) , which includes the $ 18.8 million of notes issued pursuant to the full exercise of the over-allotment option granted to the underwriters in the december 2014 offering . after deducting the underwriting discounts and commissions and other expenses ( including the net cost of the bond hedge and warrant , discussed below ) , the net proceeds from the offering were approximately $ 122.6 million . the notes were issued in order to raise funds to research , develop and commercialize our drug products ; to acquire complementary businesses , products , and technologies that we may identify from time to time ; and for other working capital and general corporate purposes . the notes pay 3.0 % interest semi-annually in arrears on june 1 and december 1 of each year , starting on june 1 , 2015. the notes are convertible into 2,068,792 shares of common stock , based on an initial conversion price of $ 69.48 per share . 42 a portion of the offering proceeds was used to simultaneously enter into โ bond hedge โ ( or purchased call ) and โ warrant โ ( or written call ) transactions with an affiliate of one of the offering underwriters ( collectively , the โ call option overlay โ ) . we entered into the call option overlay to synthetically raise the initial conversion price of the notes to $ 96.21 per share and reduce the potential common stock dilution that may arise from the conversion of the notes . the exercise price of the bond hedge is $ 69.48 per share , with an underlying 2,068,792 common shares ; the exercise price of the warrant is $ 96.21 per share , also with an underlying 2,068,792 common shares .
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Suspicious Activity Report : net revenues for the year ended december 31 , 2014 were $ 56.0 million compared to $ 30.1 million for the same period in 2013 , an increase of $ 25.9 million , or 86.1 % , primarily as a result of the following factors : ยท net revenues for generic pharmaceutical products were $ 35.9 million during the year ended december 31 , 2014 , an increase of 85.9 % compared to $ 19.3 million for the same period in 2013. the primary reason for the increase was a $ 13.8 million increase in sales of eemt , which was the result of increases in both market share and prices . in addition , we experienced increased sales for our opium tincture , hc enema , and fluvoxamine products . in the third quarter of 2013 , a significant competitor stopped producing eemt , which led to an increase in our market share and enabled us to significantly increase the price we charge for the product . however , in the first half of 2014 , the same competitor re-entered the market , which negatively impacted our eemt unit sales beginning in the second quarter of 2014 , which impact may continue in 2015. eemt revenues for the year ended december 31 , 2014 also were reduced by $ 3.9 million in charges related to price protection contract obligations . as described in item 1. business โ government regulations โ unapproved products , we market eemt and opium tincture without fda-approved ndas . the fda 's policy with respect to the continued marketing of unapproved products appears in the fda 's september 2011 compliance policy guide sec . 440.100 titled `` marketed new drugs without approved ndas or andas . `` under this policy , the fda has stated that it will follow a risk-based approach with regard to enforcement against marketing of unapproved products . the fda evaluates whether to initiate enforcement action on a case-by-case basis , but gives higher priority to enforcement action against products in certain categories , such as those with potential safety risks or that lack evidence of effectiveness . while we believe that , so long as we comply with applicable manufacturing standards , the fda will not take action against us under the current enforcement policy , we can offer no assurances that the fda will continue this policy or not take a contrary position with any individual product or group of products . our combined net revenues for these products for the years ended december 31 , 2014 and 2013 were $ 29.8 million and $ 14.6 million , respectively . 37 ยท net revenues for branded pharmaceutical products were $ 11.0 million during the year ended december 31 , 2014 , an increase of 226.7 % compared to $ 3.4 million for the same period in 2013. the primary reasons for the increase were $ 3.3 million of sales from our lithobid product , representing six months of sales and $ 4.4 million of sales from our vancocin product , representing five months of sales . the product rights to lithobid and vancocin were acquired during the third quarter of 2014. these increase were partially offset by a decrease in sales of reglan . ยท contract manufacturing revenues were $ 5.9 million during the year ended december 31 , 2014 , a decrease of 1.4 % compared to $ 6.0 million for the same period in 2013 , due to decreased orders from contract manufacturing customers during 2014. as described in item 1. business โ government regulations โ unapproved products , we contract manufacture a group of products on behalf of a customer that are marketed by that customer without an fda-approved nda . if the fda took enforcement action against such customer , the customer may be required to seek fda approval for the group of products or withdraw them from the market . our contract manufacturing revenues for the group of unapproved products for the years ended december 31 , 2014 and 2013 were $ 1.2 million and $ 2.0 million , respectively . ยท contract services and other income were $ 3.2 million during the year ended december 31 , 2014 , an increase of 124.8 % from $ 1.4 million for the same period in 2013 , due primarily to royalties received on sales of the authorized generic of vancocin , the product rights to which were acquired in the third quarter of 2014. this increase was partially offset by a $ 0.5 million non-recurring payment in december 2013 from teva in relation to the teva license agreement acquired in the merger , as well as decreased contract services . as described in item 1. business โ government regulations โ unapproved products , we receive royalties on the net sales of a group of contract-manufactured products , which are marketed by the customer without an fda-approved nda . if the fda took enforcement action against such customer , the customer may be required to seek fda approval for the group of products or withdraw them from the market . our royalties on the net sales of these unapproved products were $ 0.3 million for each of the years ended december 31 , 2014 and 2013. cost of sales ( exclusive of depreciation and amortization ) ( in thousands ) years ended december 31 , 2014 2013 change % change cost of sales ( excl . depreciation and amortization ) $ 11,473 $ 9,974 $ 1,499 15.0 % cost of sales consists of direct labor , including manufacturing and packaging , active and inactive pharmaceutical ingredients , freight costs , and packaging components . cost of sales does not include depreciation and amortization expense , which is reported as a separate component of operating expenses on our consolidated statements of operations . story_separator_special_tag for these services , revenue is recognized according to the terms of the agreement with the customer , which sometimes include substantive , measurable risk-based milestones , and when we have a contractual right to receive such payment , the contract price is fixed or determinable , the collection of the resulting receivable is reasonably assured , and we have no further performance obligations under the agreement . we recognized $ 3.2 million and $ 1.4 million of revenue related to contract services in 2014 and 2013 , respectively . our revenue recognition accounting methodologies contain uncertainties because they require management to make assumptions and to apply judgment to estimate the amount of discounts , rebates , promotional adjustments , price adjustments , returns , chargebacks , and other potential adjustments , which are accounted for as reductions to revenue . we make these estimates based on historical experience . we have not made any material changes to our revenue recognition policies during the years ended december 31 , 2014 and 2013. we believe it is unlikely that there will be a material change in the future estimates or assumptions used to measure estimates for discounts , rebates , promotional adjustments , price adjustments , returns , chargebacks , and other potential adjustments . however , if actual results were not consistent with our estimates , we could be exposed to losses or gains that could be material , as any changes to these estimates could cause an increase or decrease in revenue recognized during the year . for example , if there were a 10 % change to these adjustments throughout the year , net revenues and net income from continuing operations before benefit/ ( provision ) for income taxes for the year ended december 31 , 2014 would be affected by $ 4.7 million . accruals for chargebacks , rebates , returns and other allowances our generic and branded product revenues are typically subject to agreements with customers allowing chargebacks , medicaid rebates , product returns , dministrative fees , and other rebates and prompt payment discounts . we accrue for these items at the time of sale based on the estimates and methodologies described below . in the aggregate , these accruals , reflected as a decrease to gross sales , exceed 50 % of generic and branded gross product sales , reduce gross revenues to net revenues in the consolidated statements of operations , and are presented as current liabilities or reductions in accounts receivable in the consolidated balance sheets . we continually monitor and re-evaluate the accruals as additional information becomes available , which includes , among other things , updates to trade inventory levels , customer product mix , and trends in medicaid rebates experience . we make adjustments to the accruals at the end of each reporting period , to reflect any such updates to the relevant facts and circumstances . accruals are relieved upon receipt of payment from or issuance of credit to the customer , or payment of rebates and fees to customer and state medicaid programs . chargebacks as discussed in note 1 of item 8. consolidated financial statements , we estimate the amount of chargebacks based our actual historical experience . a number of factors influence current period chargebacks by impacting the average selling price ( โ asp โ ) of products , including customer mix , negotiated terms , product sales mix , volume of off-contract purchases , and wholesale acquisition cost ( โ wac โ ) . 45 we have not made any material changes to our policy for estimating chargeback accruals during the years ended december 31 , 2014 and 2013. we believe it is unlikely that there will be a material change in the future estimates or assumptions used to measure chargeback estimates . however , if actual results were not consistent with our estimates , we could be exposed to losses or gains that could be material , as changes to chargeback estimates could cause an increase or decrease in revenue recognized during the year and increase or decrease accounts receivable . if there were a 10 % change in the chargeback estimates throughout the year , our net revenues and net income from continuing operations before benefit/ ( provision ) for income taxes would be affected by $ 3.6 million for the year ended december 31 , 2014. medicaid rebates as discussed in note 1 of item 8. consolidated financial statements , our estimate for medicaid rebates is based upon our average manufacturer price , best price , product mix , levels of inventory in the distribution channel that we expect to be subject to medicaid rebates , and historical experience , which are invoiced in arrears by state medicaid programs . while such experience has allowed for reasonable estimation in the past , history may not always be an accurate indicator of future rebate experience , and trends in medicaid enrollment and which products are covered by medicaid could change . we have not made any material changes to our policy for estimating medicaid rebates during the years ended december 31 , 2014 and 2013. while we anticipate that we will have further increases in our quarterly medicaid rebate amounts related to sales of our lithobid and vancocin products , we do not believe that our assumptions used to measure estimates for medicaid rebates will change materially . however , if actual results were not consistent with our estimates , we could be exposed to losses or gains that could be material , as changes to medicaid rebate estimates could cause an increase or decrease in revenue recognized during the year and decrease or increase the medicaid rebate reserve . if there were a 10 % change in the medicaid rebate estimates throughout the year , our net revenues and net income from continuing operations before benefit/ ( provision ) for income taxes would be affected by $ 0.3 million for the
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2,520 | plastics segment pricing is based on the cost of resin , colorant , fittings , labeling , labor , rent , freight , utilities and operating supplies , volume , order size , length of production runs and competition . generally , selling prices in the plastic packaging segment are periodically adjusted as the cost of resin fluctuates . typically , the price of our manufactured plastic segment products is higher for larger , more complex products . revenues in each of our segments are seasonal , reflecting a general pattern of lower sales and earnings in the metal and plastic packaging industry during the first quarter of our fiscal year when activity in several of our end markets , most notably the home improvement and repair sector , is generally slower . for example , in the first quarter of 2009 and 2008 net sales were approximately 24 % and 21 % of total net sales and gross profit was approximately 14 % and 16 % of total gross profit , respectively . these seasonal patterns cause our quarterly operating results and working capital requirements to fluctuate . page 26 index to financial statements our net sales are also impacted by the pass-through of price changes for steel and plastic resin as permitted in sales agreements with our customers . these sales agreements generally contain pass-through mechanisms by which we may recover raw material price increases , although the timing of the recovery may not coincide with when we incur the raw material cost and the amount of the recovery may not equal the increase in raw material costs . expenses our expenses primarily consist of : cost of products sold ( excluding depreciation and amortization ) . these expenses include raw materials , labor and benefits , rent , freight , utilities , repairs and maintenance , operating supplies and other direct and indirect costs associated with the manufacturing process . cost of products sold is primarily driven by the cost of these items , production volume and the mix of products manufactured . because we account for our inventories on a first-in-first-out ( ยfifoย ) basis , cost of products sold may significantly vary by period if there are fluctuations in the cost of our key raw materials ( steel and plastic resin ) . raw materials are further discussed below . depreciation and amortization . these expenses include depreciation of property , plant and equipment and amortization of identifiable intangible assets . depreciation expense is primarily driven by capital expenditures , offset by the reduction of assets that become fully depreciated and disposals of equipment . depreciation expense may also be affected by additional depreciation due to the shortening of useful lives in association with restructuring plans . amortization expense is primarily driven by the valuation of intangible assets resulting from acquisitions . restructuring . these expenses include costs related to closing redundant facilities and eliminating redundant positions . restructuring charges are typically driven by our initiatives to reduce our overall operating costs through facility consolidation and headcount reductions . the expenses include severance and termination benefits , rent and other holding costs on vacated facilities ( net of estimated or actual sublease revenue ) and costs associated with the removal of equipment . these expenses also include pension withdrawal liabilities related to the termination of employees participating in multiemployer pension plans . selling and administrative . these expenses include salaries and incentive compensation for corporate and sales personnel , professional fees , insurance , stock-based compensation expense , rent , bad debt expense and other corporate administrative costs . the primary drivers for selling and administrative expense are wage increases , inflation , regulatory compliance , stock-based compensation expense , performance-based incentive compensation and legal , accounting and other professional fees . interest . this expense includes interest accruing on our indebtedness and the amortization of debt discount and debt issuance costs . interest expense is affected by changes in average outstanding indebtedness ( including capital lease obligations ) and variable interest rates . due to immateriality , interest income is not shown separately and is netted with interest expense . the company primarily earns interest from cash on hand . other , net . these expenses include gains and losses from foreign currency transactions , gains and losses on the disposition of property , plant and equipment and other non-operating expenses . prior to the ipo in 2007 , other included financial advisory fees paid to a private equity firm that held a majority of the company 's stock . raw materials raw materials for the metal segment include tinplate , blackplate and cold rolled steel , various fittings , coatings , inks and compounds . historically , steel producers implemented annual price changes , generally at the beginning of the calendar year . however , as the cost to produce steel has become more volatile , our suppliers have begun to adjust their prices more frequently , either through price increases or surcharges . over the last four years there has page 27 index to financial statements been consolidation in the steel industry , and as a result our steel raw material purchases have been concentrated with the largest suppliers . over the past several years , steel pricing has increased more than historical levels due to increases in our steel producers ' cost of raw materials and strong global demand . raw materials for the plastics segment include resin , colorant and fittings . resin prices fluctuate periodically throughout the year , but have increased steadily over the past several years . we have generally been able to recover these raw material price increases through pass-through mechanisms in our sales agreements , although the timing of the recovery may not coincide with when we incur the raw material cost and the amount of the recovery may not equal the increase in raw material costs . story_separator_special_tag selling and administrative expense replace_table_token_12_th in 2009 , segment selling and administrative expenses declined primarily due to reduced spending related to our on-going cost reduction initiatives . in 2008 , the decrease in segment selling and administrative expense ( s & a ) for from 2007 was primarily due to lower bonus expense and spending in each of the segments . corporate undistributed expense in 2008 included a $ 1.0 million favorable adjustment related to a change in our estimate of the allowance for doubtful accounts . the adjustment was partially offset by the write-off of $ 0.7 million in accounts receivable that became uncollectible following a customer filing for liquidation in bankruptcy . excluding the above adjustment in 2008 , corporate undistributed selling and administrative expenses decreased $ 1.1 million in 2009 primarily due to lower stock-based compensation expense related to modifications made in 2007 and lower professional fees , partially offset by higher performance based bonus expense , additional bad debt expenses associated with certain uncollectible accounts receivable and higher litigation expenses . corporate undistributed expense in 2007 included approximately $ 15.8 million of an initial public offering expenses consisting of an $ 8.0 million management bonus and $ 7.8 million of stock-based compensation expense associated with the accelerated vesting of certain stock options . because of the ipo in 2007 , the vesting criteria of certain options were modified , which resulted in additional stock-based compensation expense of $ 1.5 million in 2007 and $ 4.8 million in 2008. the increase in 2008 over 2007 is due to the timing of the modification , which occurred with the ipo in june 2007. see note 10 , share-based compensation , of notes to consolidated financial statements in item 8 , ยfinancial statements and supplementary data.ย excluding stock-based compensation and ipo related expenses , corporate undistributed expense increased approximately 13 % in 2008 over 2007. the increase in 2008 is primarily due to higher expenses associated with being a public company ( primarily board of director expenses and higher d & o insurance premiums ) , higher bonus expense and higher professional fees . the majority of bonus expense is based on the achievement of certain performance goals established by the board . senior management exceeded established goals in 2009 and , on average , met established goals in 2008. performance goals were not met in 2007. page 34 index to financial statements restructuring expense in the third quarter of 2009 , the board approved a plan to eliminate our operating divisions and restructure management in order to operate the company as a single entity . management believes the strength of the company 's current management team made the divisional structure unnecessary and that the single operating structure will increase management efficiency and lower overhead expenses in support of our continued efforts to reduce the our overall cost base . in 2009 , we recorded approximately $ 1.5 million in severance and benefits and approximately $ 0.9 million related to administrative office consolidation and employee relocations . in addition to the plan , we recorded approximately $ 0.7 million in 2009 for severance and benefits related to the elimination of certain other redundant positions . in addition , we recorded approximately $ 1.8 million in 2009 in expenses related to the closure of our franklin park and cleveland facilities in 2008. in 2008 , we recorded approximately $ 8.5 million in expenses related to the closure of the franklin park and cleveland facilities , approximately $ 1.0 million related to the elimination of certain redundant positions in canada and approximately $ 0.1 million related to adjustments in prior year restructuring plans . see note 16 , ยrestructuring and reorganization liabilitiesย of notes to consolidated financial statements in item 8 , ยfinancial statements and supplementary data.ย story_separator_special_tag style= `` margin-top:0px ; margin-bottom:0px `` > historical cash flows summary cash flow information fiscal years ended september 27 , 2009 , september 28 , 2008 and september 30 , 2007 replace_table_token_13_th cash requirements for operations and capital expenditures during 2009 , 2008 and 2007 were primarily financed through internally generated cash flows and cash on hand . on occasion , short-term cash shortfalls were covered by borrowings under the revolving credit facility ; however , no amounts were outstanding under our revolving credit facility at the end of the year . in the first quarter of 2010 , we used approximately $ 32.0 million of cash on hand for the acquisition of ball plastics and approximately $ 6.5 million for mandatory excess cash flow repayments on our term loan . in the first quarter of 2009 , we used approximately $ 17.7 million of cash on hand for mandatory excess cash flow repayments on our term loan . operating activities in 2009 , cash provided by operating activities decreased $ 2.5 million ( 3 % ) from 2008 as cash from higher net income was offset by a $ 13.7 million net increase in primary working capital ( accounts receivable and inventories less accounts payable ) . in 2008 , cash provided by operating activities increased $ 26.9 million ( 57 % ) from 2007. the increase is primarily due to the payment of $ 20.1 million in ipo related expenses in 2007 , as discussed above , and from a $ 13.1 million net decrease in primary working capital ( accounts receivable and inventories less accounts payable ) in 2008. investing activities in 2009 , cash used in investing activities increased $ 12.6 million ( 37 % ) from 2008. capital expenditures decreased $ 15.5 million ( 46 % ) from 2008 due to higher than normal capital expenditures in 2008 ( as discussed below ) . in 2009 , we used $ 27.7 million of cash to acquire central can . there were no business acquisitions in 2008. in 2008 , cash used in investing activities increased $ 2.2 million ( 7 % ) from 2007. capital expenditures increased $
| loss on extinguishment of debt in 2009 , we refinanced and extinguished our senior subordinated notes due 2010 , resulting in a loss of $ 4.8 million , which consisted of a call premium of $ 3.3 million and the write-off of $ 1.5 million of unamortized debt issuance costs associated with the 2010 notes . see note 9 , ยlong-term debt , ย of notes to consolidated financial statements in item 8 , ยfinancial statements and supplementary data , ย for further information . interest expense , net in 2009 , interest expense decreased $ 0.2 million from 2008. although interest expense on our variable rate debt decreased primarily due to lower interest rates and lower average outstanding borrowings , the decrease was offset an increase of approximately $ 5.1 million related to the refinancing of our senior notes in april 2009 , which includes approximately $ 1.7 million of interest paid on the old notes during the required 30 day call period . see note 9 , ยlong-term debt , ย of notes to consolidated financial statements in item 8 , ยfinancial statements and supplementary data , ย for further information on the refinancing of the senior notes . income taxes in 2009 , the provision for income taxes was $ 11.2 million for an effective tax rate of approximately 32 % as compared to a provision for income taxes in 2008 of $ 1.3 million for an effective tax rate of approximately 10 % . in 2008 , the provision for income taxes included favorable adjustments related to a tax dispute settlement related to the fiscal 2004 acquisition of nampac ( $ 0.5 million ) , a favorable tax dispute settlement in puerto rico ( $ 0.7 million ) , a favorable adjustment related to a correction of an error in deferred taxes ( $ 2.3 million ) and favorable changes to state and canadian statutory rates ( $ 1.1 million ) . these items caused the reduction in the effective tax rate for 2008. the effective tax rate for 2007 was ( 42.8 ) % , primarily due to $ 1.5 million in non-deductible public offering expenses .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```loss on extinguishment of debt in 2009 , we refinanced and extinguished our senior subordinated notes due 2010 , resulting in a loss of $ 4.8 million , which consisted of a call premium of $ 3.3 million and the write-off of $ 1.5 million of unamortized debt issuance costs associated with the 2010 notes . see note 9 , ยlong-term debt , ย of notes to consolidated financial statements in item 8 , ยfinancial statements and supplementary data , ย for further information . interest expense , net in 2009 , interest expense decreased $ 0.2 million from 2008. although interest expense on our variable rate debt decreased primarily due to lower interest rates and lower average outstanding borrowings , the decrease was offset an increase of approximately $ 5.1 million related to the refinancing of our senior notes in april 2009 , which includes approximately $ 1.7 million of interest paid on the old notes during the required 30 day call period . see note 9 , ยlong-term debt , ย of notes to consolidated financial statements in item 8 , ยfinancial statements and supplementary data , ย for further information on the refinancing of the senior notes . income taxes in 2009 , the provision for income taxes was $ 11.2 million for an effective tax rate of approximately 32 % as compared to a provision for income taxes in 2008 of $ 1.3 million for an effective tax rate of approximately 10 % . in 2008 , the provision for income taxes included favorable adjustments related to a tax dispute settlement related to the fiscal 2004 acquisition of nampac ( $ 0.5 million ) , a favorable tax dispute settlement in puerto rico ( $ 0.7 million ) , a favorable adjustment related to a correction of an error in deferred taxes ( $ 2.3 million ) and favorable changes to state and canadian statutory rates ( $ 1.1 million ) . these items caused the reduction in the effective tax rate for 2008. the effective tax rate for 2007 was ( 42.8 ) % , primarily due to $ 1.5 million in non-deductible public offering expenses .
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Suspicious Activity Report : plastics segment pricing is based on the cost of resin , colorant , fittings , labeling , labor , rent , freight , utilities and operating supplies , volume , order size , length of production runs and competition . generally , selling prices in the plastic packaging segment are periodically adjusted as the cost of resin fluctuates . typically , the price of our manufactured plastic segment products is higher for larger , more complex products . revenues in each of our segments are seasonal , reflecting a general pattern of lower sales and earnings in the metal and plastic packaging industry during the first quarter of our fiscal year when activity in several of our end markets , most notably the home improvement and repair sector , is generally slower . for example , in the first quarter of 2009 and 2008 net sales were approximately 24 % and 21 % of total net sales and gross profit was approximately 14 % and 16 % of total gross profit , respectively . these seasonal patterns cause our quarterly operating results and working capital requirements to fluctuate . page 26 index to financial statements our net sales are also impacted by the pass-through of price changes for steel and plastic resin as permitted in sales agreements with our customers . these sales agreements generally contain pass-through mechanisms by which we may recover raw material price increases , although the timing of the recovery may not coincide with when we incur the raw material cost and the amount of the recovery may not equal the increase in raw material costs . expenses our expenses primarily consist of : cost of products sold ( excluding depreciation and amortization ) . these expenses include raw materials , labor and benefits , rent , freight , utilities , repairs and maintenance , operating supplies and other direct and indirect costs associated with the manufacturing process . cost of products sold is primarily driven by the cost of these items , production volume and the mix of products manufactured . because we account for our inventories on a first-in-first-out ( ยfifoย ) basis , cost of products sold may significantly vary by period if there are fluctuations in the cost of our key raw materials ( steel and plastic resin ) . raw materials are further discussed below . depreciation and amortization . these expenses include depreciation of property , plant and equipment and amortization of identifiable intangible assets . depreciation expense is primarily driven by capital expenditures , offset by the reduction of assets that become fully depreciated and disposals of equipment . depreciation expense may also be affected by additional depreciation due to the shortening of useful lives in association with restructuring plans . amortization expense is primarily driven by the valuation of intangible assets resulting from acquisitions . restructuring . these expenses include costs related to closing redundant facilities and eliminating redundant positions . restructuring charges are typically driven by our initiatives to reduce our overall operating costs through facility consolidation and headcount reductions . the expenses include severance and termination benefits , rent and other holding costs on vacated facilities ( net of estimated or actual sublease revenue ) and costs associated with the removal of equipment . these expenses also include pension withdrawal liabilities related to the termination of employees participating in multiemployer pension plans . selling and administrative . these expenses include salaries and incentive compensation for corporate and sales personnel , professional fees , insurance , stock-based compensation expense , rent , bad debt expense and other corporate administrative costs . the primary drivers for selling and administrative expense are wage increases , inflation , regulatory compliance , stock-based compensation expense , performance-based incentive compensation and legal , accounting and other professional fees . interest . this expense includes interest accruing on our indebtedness and the amortization of debt discount and debt issuance costs . interest expense is affected by changes in average outstanding indebtedness ( including capital lease obligations ) and variable interest rates . due to immateriality , interest income is not shown separately and is netted with interest expense . the company primarily earns interest from cash on hand . other , net . these expenses include gains and losses from foreign currency transactions , gains and losses on the disposition of property , plant and equipment and other non-operating expenses . prior to the ipo in 2007 , other included financial advisory fees paid to a private equity firm that held a majority of the company 's stock . raw materials raw materials for the metal segment include tinplate , blackplate and cold rolled steel , various fittings , coatings , inks and compounds . historically , steel producers implemented annual price changes , generally at the beginning of the calendar year . however , as the cost to produce steel has become more volatile , our suppliers have begun to adjust their prices more frequently , either through price increases or surcharges . over the last four years there has page 27 index to financial statements been consolidation in the steel industry , and as a result our steel raw material purchases have been concentrated with the largest suppliers . over the past several years , steel pricing has increased more than historical levels due to increases in our steel producers ' cost of raw materials and strong global demand . raw materials for the plastics segment include resin , colorant and fittings . resin prices fluctuate periodically throughout the year , but have increased steadily over the past several years . we have generally been able to recover these raw material price increases through pass-through mechanisms in our sales agreements , although the timing of the recovery may not coincide with when we incur the raw material cost and the amount of the recovery may not equal the increase in raw material costs . story_separator_special_tag selling and administrative expense replace_table_token_12_th in 2009 , segment selling and administrative expenses declined primarily due to reduced spending related to our on-going cost reduction initiatives . in 2008 , the decrease in segment selling and administrative expense ( s & a ) for from 2007 was primarily due to lower bonus expense and spending in each of the segments . corporate undistributed expense in 2008 included a $ 1.0 million favorable adjustment related to a change in our estimate of the allowance for doubtful accounts . the adjustment was partially offset by the write-off of $ 0.7 million in accounts receivable that became uncollectible following a customer filing for liquidation in bankruptcy . excluding the above adjustment in 2008 , corporate undistributed selling and administrative expenses decreased $ 1.1 million in 2009 primarily due to lower stock-based compensation expense related to modifications made in 2007 and lower professional fees , partially offset by higher performance based bonus expense , additional bad debt expenses associated with certain uncollectible accounts receivable and higher litigation expenses . corporate undistributed expense in 2007 included approximately $ 15.8 million of an initial public offering expenses consisting of an $ 8.0 million management bonus and $ 7.8 million of stock-based compensation expense associated with the accelerated vesting of certain stock options . because of the ipo in 2007 , the vesting criteria of certain options were modified , which resulted in additional stock-based compensation expense of $ 1.5 million in 2007 and $ 4.8 million in 2008. the increase in 2008 over 2007 is due to the timing of the modification , which occurred with the ipo in june 2007. see note 10 , share-based compensation , of notes to consolidated financial statements in item 8 , ยfinancial statements and supplementary data.ย excluding stock-based compensation and ipo related expenses , corporate undistributed expense increased approximately 13 % in 2008 over 2007. the increase in 2008 is primarily due to higher expenses associated with being a public company ( primarily board of director expenses and higher d & o insurance premiums ) , higher bonus expense and higher professional fees . the majority of bonus expense is based on the achievement of certain performance goals established by the board . senior management exceeded established goals in 2009 and , on average , met established goals in 2008. performance goals were not met in 2007. page 34 index to financial statements restructuring expense in the third quarter of 2009 , the board approved a plan to eliminate our operating divisions and restructure management in order to operate the company as a single entity . management believes the strength of the company 's current management team made the divisional structure unnecessary and that the single operating structure will increase management efficiency and lower overhead expenses in support of our continued efforts to reduce the our overall cost base . in 2009 , we recorded approximately $ 1.5 million in severance and benefits and approximately $ 0.9 million related to administrative office consolidation and employee relocations . in addition to the plan , we recorded approximately $ 0.7 million in 2009 for severance and benefits related to the elimination of certain other redundant positions . in addition , we recorded approximately $ 1.8 million in 2009 in expenses related to the closure of our franklin park and cleveland facilities in 2008. in 2008 , we recorded approximately $ 8.5 million in expenses related to the closure of the franklin park and cleveland facilities , approximately $ 1.0 million related to the elimination of certain redundant positions in canada and approximately $ 0.1 million related to adjustments in prior year restructuring plans . see note 16 , ยrestructuring and reorganization liabilitiesย of notes to consolidated financial statements in item 8 , ยfinancial statements and supplementary data.ย story_separator_special_tag style= `` margin-top:0px ; margin-bottom:0px `` > historical cash flows summary cash flow information fiscal years ended september 27 , 2009 , september 28 , 2008 and september 30 , 2007 replace_table_token_13_th cash requirements for operations and capital expenditures during 2009 , 2008 and 2007 were primarily financed through internally generated cash flows and cash on hand . on occasion , short-term cash shortfalls were covered by borrowings under the revolving credit facility ; however , no amounts were outstanding under our revolving credit facility at the end of the year . in the first quarter of 2010 , we used approximately $ 32.0 million of cash on hand for the acquisition of ball plastics and approximately $ 6.5 million for mandatory excess cash flow repayments on our term loan . in the first quarter of 2009 , we used approximately $ 17.7 million of cash on hand for mandatory excess cash flow repayments on our term loan . operating activities in 2009 , cash provided by operating activities decreased $ 2.5 million ( 3 % ) from 2008 as cash from higher net income was offset by a $ 13.7 million net increase in primary working capital ( accounts receivable and inventories less accounts payable ) . in 2008 , cash provided by operating activities increased $ 26.9 million ( 57 % ) from 2007. the increase is primarily due to the payment of $ 20.1 million in ipo related expenses in 2007 , as discussed above , and from a $ 13.1 million net decrease in primary working capital ( accounts receivable and inventories less accounts payable ) in 2008. investing activities in 2009 , cash used in investing activities increased $ 12.6 million ( 37 % ) from 2008. capital expenditures decreased $ 15.5 million ( 46 % ) from 2008 due to higher than normal capital expenditures in 2008 ( as discussed below ) . in 2009 , we used $ 27.7 million of cash to acquire central can . there were no business acquisitions in 2008. in 2008 , cash used in investing activities increased $ 2.2 million ( 7 % ) from 2007. capital expenditures increased $
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2,521 | 35 replace_table_token_8_th based on this analysis , we allocated $ 29.8 million to non-amortizable intangible assets and $ 1.7 million to amortizable intangible assets . we are amortizing the purchased amortizable intangible assets on a straight-line basis over an estimated weighted average useful life of 15.1 years . the weighted average remaining life for amortizable intangible assets at march 31 , 2014 was 14.5 years . we also recorded goodwill of $ 23.1 million based on the amount by which the purchase price exceeded the preliminary fair value of the net assets acquired . the full amount of goodwill is deductible for income tax purposes . the pro-forma effect of this acquisition on revenues and earnings was not material . acquisition of glaxosmithkline otc brands on december 20 , 2011 , we entered into two separate agreements with gsk to acquire a total of 17 north american otc healthcare brands for $ 660.0 million in cash ( the `` gsk agreement `` ) . on january 31 , 2012 , we completed , subject to a post-closing inventory and apportionment adjustment , as defined in the gsk agreement , the acquisition of the gsk brands i , including the related contracts , trademarks , and inventory for $ 615.0 million in cash . the gsk brands i include , among other brands , bc , goody 's and ecotrin brands of pain relievers ; beano , gaviscon , phazyme , tagamet and fiber choice gastrointestinal brands ; and the sominex sleep aid brand . on march 30 , 2012 , we completed , subject to a post-closing inventory and apportionment adjustment , as defined in the gsk agreement , the acquisition of the debrox and gly-oxide brands in the united states , including the related contracts , trademarks and inventory , for $ 45.0 million in cash . both the gsk brands i and gsk brands ii are complementary to our existing otc healthcare portfolio . these acquisitions were also accounted for in accordance with the business combinations topic of the fasb asc 805. the purchase price of the gsk brands i and gsk brands ii was funded by cash provided by the issuance of long-term debt and additional bank borrowings , which are discussed further in note 10 to the consolidated financial statements in this annual report on form 10-k. in april 2012 , we received the post-closing inventory and apportionment adjustments , attributable to both gsk brands i and gsk brands ii , which required us to pay an additional $ 2.8 million to gsk , and in may 2012 we received a revised post-closing inventory and apportionment adjustment , attributable to gsk brands ii , which required us to pay an additional $ 0.2 million , for a total of $ 3.0 million , to gsk . 36 concurrent with the closing of the gsk brands i transaction , we entered into a transitional services agreement with gsk ( the โ tsa โ ) , whereby gsk provided us with various services including marketing , operations , finance and other services from the gsk brands i acquisition date through june 30 , 2012 , with additional finance support through august 31 , 2012. as part of the tsa , gsk , among other things , shipped products , invoiced customers , collected from customers and paid certain vendors on our behalf . our initial costs under the tsa were approximately $ 2.5 million per month for the length of the agreement and were reduced during the service period as we removed certain services and transitioned those processes to us . we incurred $ 6.9 million in tsa costs for the year ended march 31 , 2013. pursuant to the tsa , we received on a monthly basis the amount owed to us for revenues and expenses , net of gsk 's tsa fees and inventory that gsk purchased on our behalf . the allocation of the purchase price to assets acquired is based on a valuation we performed to determine the fair value of such assets as of the acquisition date . the following table summarizes our allocation of the $ 663.0 million purchase price to the assets we acquired at the gsk brands i and gsk brands ii acquisition dates : replace_table_token_9_th transaction and other costs of $ 13.8 million associated with the gsk brands acquisition are included in general and administrative expenses in our consolidated statements of income and comprehensive income for 2012. we recorded goodwill based on the amount by which the purchase price exceeded the fair value of assets acquired . the amount of goodwill deductible for tax purposes is $ 20.2 million . the fair value of the trade names is comprised of $ 556.9 million of non-amortizable intangible assets and $ 67.2 million of amortizable intangible assets . we are amortizing the purchased amortizable intangible assets on a straight-line basis over an estimated weighted average useful life of 19.3 years . the weighted average remaining life for amortizable intangible assets at march 31 , 2014 was 17.0 years . the operating results of the gsk brands i have been included in our consolidated financial statements from february 1 , 2012 , while the operating results of the gsk brands ii are included in our consolidated financial statements beginning april 1 , 2012. sale of the phazyme brand on october 31 , 2012 , we divested the phazyme gas treatment brand , which was a non-core otc brand that we acquired from gsk in january 2012. we received $ 21.7 million from the divestiture on october 31 , 2012 and the remaining $ 0.6 million on january 4 , 2013. the proceeds were used to repay debt . no significant gain or loss was recorded as a result of the sale . story_separator_special_tag as a result , any material changes to these assumptions could require us to record additional impairment in the future . the company has experienced revenue declines in regard to certain brands in its household cleaning segment during 2013 and 2012. adverse changes in the expected operating results and or unfavorable changes in other economic factors used to estimate fair values of these specific brands could result in a non-cash impairment charge in the future . goodwill as of march 31 , 2014 , we had 20 reporting units with goodwill , including six reporting units resulting from the acquisition of the gsk brands , and five reporting units resulting from the acquisition of the care pharma brands . as part of our annual test for impairment of goodwill , management estimates the discounted cash flows of each reporting unit , which is at the brand level , and one level below the operating segment level , to estimate their respective fair values . in performing this analysis , management considers the same types of information as listed below in regard to finite-lived intangible assets . future events , such as competition , technological advances and reductions in advertising support for our trademarks and trade names , could cause subsequent evaluations to utilize different assumptions . in the event that the carrying amount of the reporting unit exceeds the fair value , management would then be required to allocate the estimated fair value of the assets and liabilities of the reporting unit as if the unit was acquired in a business combination , thereby revaluing the carrying amount of goodwill . 41 indefinite-lived intangible assets at each reporting period , management analyzes current events and circumstances to determine whether the indefinite life classification for a trademark or trade name continues to be valid . if circumstances warrant a change to a finite life , the carrying value of the intangible asset would then be amortized prospectively over the estimated remaining useful life . management tests the indefinite-lived intangible assets for impairment by comparing the carrying value of the intangible asset to its estimated fair value . since quoted market prices are seldom available for trademarks and trade names such as ours , we utilize present value techniques to estimate fair value . accordingly , management 's projections are utilized to assimilate all of the facts , circumstances and expectations related to the trademark or trade name and estimate the cash flows over its useful life . in performing this analysis , management considers the same types of information as listed below in regard to finite-lived intangible assets . in a manner similar to goodwill , future events , such as competition , technological advances and reductions in advertising support for our trademarks and trade names , could cause subsequent evaluations to utilize different assumptions . once that analysis is completed , a discount rate is applied to the cash flows to estimate fair value . finite-lived intangible assets as mentioned above , when events or changes in circumstances indicate the carrying value of the assets may not be recoverable , management performs a review to ascertain the impact of events and circumstances on the estimated useful lives and carrying values of our trademarks and trade names . in connection with this analysis , management : reviews period-to-period sales and profitability by brand ; analyzes industry trends and projects brand growth rates ; prepares annual sales forecasts ; evaluates advertising effectiveness ; analyzes gross margins ; reviews contractual benefits or limitations ; monitors competitors ' advertising spend and product innovation ; prepares projections to measure brand viability over the estimated useful life of the intangible asset ; and considers the regulatory environment , as well as industry litigation . if analysis of any of the aforementioned factors warrants a change in the estimated useful life of the intangible asset , management will reduce the estimated useful life and amortize the carrying value prospectively over the shorter remaining useful life . management 's projections are utilized to assimilate all of the facts , circumstances and expectations related to the trademark or trade name and estimate the cash flows over its useful life . future events , such as competition , technological advances and reductions in advertising support for our trademarks and trade names , could cause subsequent evaluations to utilize different assumptions . in the event that the long-term projections indicate that the carrying value is in excess of the undiscounted cash flows expected to result from the use of the intangible assets , management is required to record an impairment charge . once that analysis is completed , a discount rate is applied to the cash flows to estimate fair value . the impairment charge is measured as the excess of the carrying amount of the intangible asset over fair value as calculated using the discounted cash flow analysis . impairment analysis we utilize the discounted cash flow method to estimate the fair value of our indefinite-lived intangible assets and goodwill and the undiscounted cash flow method to estimate the fair value of our finite-lived intangible assets . this methodology is a widely-accepted valuation technique to estimate fair value utilized by market participants in the transaction evaluation process and has been applied consistently . in addition , we considered our market capitalization at march 31 , 2014 , as compared to the aggregate fair values of our reporting units , to assess the reasonableness of our estimates pursuant to the discounted cash flow methodology . as a result of our analysis , we did not record an impairment charge in 2014. based on our analysis , the aggregate fair value exceeded the carrying value by 53.1 % . one individual reporting unit 's fair value exceeded its carrying value by less than 10.0 % . the reporting unit 's associated carrying value of goodwill and intangible assets amounted to $ 0.8 million at march 31 , 2014. additionally , certain brands
| loss on extinguishment of debt on december 17 , 2013 , we offered to redeem the 2010 senior notes at a premium of 6.33 % , of which $ 201.7 million were redeemed on such date . the remaining $ 48.3 million were redeemed on january 16 , 2014. as a result , during the quarter ended december 31 , 2013 , we recorded a $ 15.0 million loss on the early extinguishment of debt relating to the $ 201.7 million 2010 senior notes redeemed and recorded an additional loss of $ 3.3 million on the remaining $ 48.3 million tendered on january 16 , 2014. the $ 18.3 million loss consists of premium payments of $ 15.5 million , write-off of deferred financing costs of $ 2.2 million , and write-off of debt discount of $ 0.6 million . income taxes the provision for income taxes during 2014 was $ 29.1 million versus $ 40.5 million in 2013. the effective tax rate on income before income taxes was 28.6 % during 2014 versus 38.2 % during 2013. the 2014 tax rate reflects the impact of non-deductible compensation of $ 1.0 million and a non-cash benefit of $ 8.9 million to adjust our current and deferred tax balances for lower state income taxes . this benefit was primarily related to a recent change in state law where we have our major distribution center that taxes earnings attributed to in-state revenues only . the 2013 tax rate reflects the impact of non-deductible compensation of $ 1.7 million and a non-cash benefit of $ 1.7 million for expected lower future state taxes .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```loss on extinguishment of debt on december 17 , 2013 , we offered to redeem the 2010 senior notes at a premium of 6.33 % , of which $ 201.7 million were redeemed on such date . the remaining $ 48.3 million were redeemed on january 16 , 2014. as a result , during the quarter ended december 31 , 2013 , we recorded a $ 15.0 million loss on the early extinguishment of debt relating to the $ 201.7 million 2010 senior notes redeemed and recorded an additional loss of $ 3.3 million on the remaining $ 48.3 million tendered on january 16 , 2014. the $ 18.3 million loss consists of premium payments of $ 15.5 million , write-off of deferred financing costs of $ 2.2 million , and write-off of debt discount of $ 0.6 million . income taxes the provision for income taxes during 2014 was $ 29.1 million versus $ 40.5 million in 2013. the effective tax rate on income before income taxes was 28.6 % during 2014 versus 38.2 % during 2013. the 2014 tax rate reflects the impact of non-deductible compensation of $ 1.0 million and a non-cash benefit of $ 8.9 million to adjust our current and deferred tax balances for lower state income taxes . this benefit was primarily related to a recent change in state law where we have our major distribution center that taxes earnings attributed to in-state revenues only . the 2013 tax rate reflects the impact of non-deductible compensation of $ 1.7 million and a non-cash benefit of $ 1.7 million for expected lower future state taxes .
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Suspicious Activity Report : 35 replace_table_token_8_th based on this analysis , we allocated $ 29.8 million to non-amortizable intangible assets and $ 1.7 million to amortizable intangible assets . we are amortizing the purchased amortizable intangible assets on a straight-line basis over an estimated weighted average useful life of 15.1 years . the weighted average remaining life for amortizable intangible assets at march 31 , 2014 was 14.5 years . we also recorded goodwill of $ 23.1 million based on the amount by which the purchase price exceeded the preliminary fair value of the net assets acquired . the full amount of goodwill is deductible for income tax purposes . the pro-forma effect of this acquisition on revenues and earnings was not material . acquisition of glaxosmithkline otc brands on december 20 , 2011 , we entered into two separate agreements with gsk to acquire a total of 17 north american otc healthcare brands for $ 660.0 million in cash ( the `` gsk agreement `` ) . on january 31 , 2012 , we completed , subject to a post-closing inventory and apportionment adjustment , as defined in the gsk agreement , the acquisition of the gsk brands i , including the related contracts , trademarks , and inventory for $ 615.0 million in cash . the gsk brands i include , among other brands , bc , goody 's and ecotrin brands of pain relievers ; beano , gaviscon , phazyme , tagamet and fiber choice gastrointestinal brands ; and the sominex sleep aid brand . on march 30 , 2012 , we completed , subject to a post-closing inventory and apportionment adjustment , as defined in the gsk agreement , the acquisition of the debrox and gly-oxide brands in the united states , including the related contracts , trademarks and inventory , for $ 45.0 million in cash . both the gsk brands i and gsk brands ii are complementary to our existing otc healthcare portfolio . these acquisitions were also accounted for in accordance with the business combinations topic of the fasb asc 805. the purchase price of the gsk brands i and gsk brands ii was funded by cash provided by the issuance of long-term debt and additional bank borrowings , which are discussed further in note 10 to the consolidated financial statements in this annual report on form 10-k. in april 2012 , we received the post-closing inventory and apportionment adjustments , attributable to both gsk brands i and gsk brands ii , which required us to pay an additional $ 2.8 million to gsk , and in may 2012 we received a revised post-closing inventory and apportionment adjustment , attributable to gsk brands ii , which required us to pay an additional $ 0.2 million , for a total of $ 3.0 million , to gsk . 36 concurrent with the closing of the gsk brands i transaction , we entered into a transitional services agreement with gsk ( the โ tsa โ ) , whereby gsk provided us with various services including marketing , operations , finance and other services from the gsk brands i acquisition date through june 30 , 2012 , with additional finance support through august 31 , 2012. as part of the tsa , gsk , among other things , shipped products , invoiced customers , collected from customers and paid certain vendors on our behalf . our initial costs under the tsa were approximately $ 2.5 million per month for the length of the agreement and were reduced during the service period as we removed certain services and transitioned those processes to us . we incurred $ 6.9 million in tsa costs for the year ended march 31 , 2013. pursuant to the tsa , we received on a monthly basis the amount owed to us for revenues and expenses , net of gsk 's tsa fees and inventory that gsk purchased on our behalf . the allocation of the purchase price to assets acquired is based on a valuation we performed to determine the fair value of such assets as of the acquisition date . the following table summarizes our allocation of the $ 663.0 million purchase price to the assets we acquired at the gsk brands i and gsk brands ii acquisition dates : replace_table_token_9_th transaction and other costs of $ 13.8 million associated with the gsk brands acquisition are included in general and administrative expenses in our consolidated statements of income and comprehensive income for 2012. we recorded goodwill based on the amount by which the purchase price exceeded the fair value of assets acquired . the amount of goodwill deductible for tax purposes is $ 20.2 million . the fair value of the trade names is comprised of $ 556.9 million of non-amortizable intangible assets and $ 67.2 million of amortizable intangible assets . we are amortizing the purchased amortizable intangible assets on a straight-line basis over an estimated weighted average useful life of 19.3 years . the weighted average remaining life for amortizable intangible assets at march 31 , 2014 was 17.0 years . the operating results of the gsk brands i have been included in our consolidated financial statements from february 1 , 2012 , while the operating results of the gsk brands ii are included in our consolidated financial statements beginning april 1 , 2012. sale of the phazyme brand on october 31 , 2012 , we divested the phazyme gas treatment brand , which was a non-core otc brand that we acquired from gsk in january 2012. we received $ 21.7 million from the divestiture on october 31 , 2012 and the remaining $ 0.6 million on january 4 , 2013. the proceeds were used to repay debt . no significant gain or loss was recorded as a result of the sale . story_separator_special_tag as a result , any material changes to these assumptions could require us to record additional impairment in the future . the company has experienced revenue declines in regard to certain brands in its household cleaning segment during 2013 and 2012. adverse changes in the expected operating results and or unfavorable changes in other economic factors used to estimate fair values of these specific brands could result in a non-cash impairment charge in the future . goodwill as of march 31 , 2014 , we had 20 reporting units with goodwill , including six reporting units resulting from the acquisition of the gsk brands , and five reporting units resulting from the acquisition of the care pharma brands . as part of our annual test for impairment of goodwill , management estimates the discounted cash flows of each reporting unit , which is at the brand level , and one level below the operating segment level , to estimate their respective fair values . in performing this analysis , management considers the same types of information as listed below in regard to finite-lived intangible assets . future events , such as competition , technological advances and reductions in advertising support for our trademarks and trade names , could cause subsequent evaluations to utilize different assumptions . in the event that the carrying amount of the reporting unit exceeds the fair value , management would then be required to allocate the estimated fair value of the assets and liabilities of the reporting unit as if the unit was acquired in a business combination , thereby revaluing the carrying amount of goodwill . 41 indefinite-lived intangible assets at each reporting period , management analyzes current events and circumstances to determine whether the indefinite life classification for a trademark or trade name continues to be valid . if circumstances warrant a change to a finite life , the carrying value of the intangible asset would then be amortized prospectively over the estimated remaining useful life . management tests the indefinite-lived intangible assets for impairment by comparing the carrying value of the intangible asset to its estimated fair value . since quoted market prices are seldom available for trademarks and trade names such as ours , we utilize present value techniques to estimate fair value . accordingly , management 's projections are utilized to assimilate all of the facts , circumstances and expectations related to the trademark or trade name and estimate the cash flows over its useful life . in performing this analysis , management considers the same types of information as listed below in regard to finite-lived intangible assets . in a manner similar to goodwill , future events , such as competition , technological advances and reductions in advertising support for our trademarks and trade names , could cause subsequent evaluations to utilize different assumptions . once that analysis is completed , a discount rate is applied to the cash flows to estimate fair value . finite-lived intangible assets as mentioned above , when events or changes in circumstances indicate the carrying value of the assets may not be recoverable , management performs a review to ascertain the impact of events and circumstances on the estimated useful lives and carrying values of our trademarks and trade names . in connection with this analysis , management : reviews period-to-period sales and profitability by brand ; analyzes industry trends and projects brand growth rates ; prepares annual sales forecasts ; evaluates advertising effectiveness ; analyzes gross margins ; reviews contractual benefits or limitations ; monitors competitors ' advertising spend and product innovation ; prepares projections to measure brand viability over the estimated useful life of the intangible asset ; and considers the regulatory environment , as well as industry litigation . if analysis of any of the aforementioned factors warrants a change in the estimated useful life of the intangible asset , management will reduce the estimated useful life and amortize the carrying value prospectively over the shorter remaining useful life . management 's projections are utilized to assimilate all of the facts , circumstances and expectations related to the trademark or trade name and estimate the cash flows over its useful life . future events , such as competition , technological advances and reductions in advertising support for our trademarks and trade names , could cause subsequent evaluations to utilize different assumptions . in the event that the long-term projections indicate that the carrying value is in excess of the undiscounted cash flows expected to result from the use of the intangible assets , management is required to record an impairment charge . once that analysis is completed , a discount rate is applied to the cash flows to estimate fair value . the impairment charge is measured as the excess of the carrying amount of the intangible asset over fair value as calculated using the discounted cash flow analysis . impairment analysis we utilize the discounted cash flow method to estimate the fair value of our indefinite-lived intangible assets and goodwill and the undiscounted cash flow method to estimate the fair value of our finite-lived intangible assets . this methodology is a widely-accepted valuation technique to estimate fair value utilized by market participants in the transaction evaluation process and has been applied consistently . in addition , we considered our market capitalization at march 31 , 2014 , as compared to the aggregate fair values of our reporting units , to assess the reasonableness of our estimates pursuant to the discounted cash flow methodology . as a result of our analysis , we did not record an impairment charge in 2014. based on our analysis , the aggregate fair value exceeded the carrying value by 53.1 % . one individual reporting unit 's fair value exceeded its carrying value by less than 10.0 % . the reporting unit 's associated carrying value of goodwill and intangible assets amounted to $ 0.8 million at march 31 , 2014. additionally , certain brands
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2,522 | annualized revenues are estimated to be approximately $ 1.6 million and are reported in the employee services practice group . lbr , located in tampa bay , florida , is a professional tax , accounting and consulting service provider with significant experience and expertise in matrimonial and family law litigation support , not-for-profit entities and health care provider services . annualized revenues are estimated to be approximately $ 9.8 million and are reported in the financial services practice group . second quarter 2014 tegrit , based in akron , ohio , is a national provider of actuarial consulting and retirement plan administration . annualized revenues are estimated to be approximately $ 8.5 million and are reported in the employee services practice group . third quarter 2014 sattler , based in lewiston , idaho , provides property and casualty , personal , and life insurance services , with a specialty in outdoor recreation insurance , to businesses across the united states . annualized revenues are estimated to be approximately $ 1.6 million and are reported in the employee services practice group . fourth quarter 2014 w & c , located in delray beach , florida , is a full service insurance brokerage firm offering clients a complete line of services including commercial lines , personal lines , risk management , and employee benefits . annualized revenues are estimated to be approximately $ 9.0 million and are reported in the employee services practice group . during the year ended december 31 , 2014 , cbiz also purchased four client lists , three of which are reported in the financial services practice group and one of which reported in the employee services practice group . during the year ended december 31 , 2014 , cbiz decided to divest four businesses : cbiz made the decision to divest the operations of two small businesses under the financial services practice group . these businesses are being held for sale at december 31 , 2014 with the results of operations for these businesses being recorded in ย ( loss ) income from operations of discontinued operations , net of taxย in the accompanying consolidated statements of comprehensive income . cbiz sold a business from the financial services practice group for $ 2.9 million . a gain of $ 1.2 million was recorded in ยgain on sale of operations , netย in the accompanying consolidated statements of comprehensive income for the year ended december 31 , 2014 . 26 cbiz sold the assets of its property tax business located in leawood , kansas for a purchase price of $ 1.2 million . an insignificant gain was recorded in ยgain on disposal of discontinued operations , net of taxย in the accompanying consolidated statements of comprehensive income for the year ended december 31 , 2014. the property tax business was classified as held for sale during the comparable period in 2013 and was previously reported in the financial services practice group . cbiz believes that repurchasing shares of its common stock provides value to its stockholders . cbiz repurchased approximately 3.2 million shares of its common stock on the open market during 2014 at a total cost of approximately $ 26.7 million . on february 11 , 2015 , cbiz 's board of directors authorized the purchase of up to 5.0 million shares of cbiz common stock through march 31 , 2016. the shares may be repurchased in the open market or through privately negotiated purchases in accordance with sec rules . subsequent to december 31 , 2014 up to the date of this filing , cbiz repurchased approximately 600,000 shares at a total cost of approximately $ 5.0 million under a rule 10b5-1 trading plan , which allows cbiz to repurchase shares below a predetermined price per share . on october 29 , 2014 , steven l. gerard announced that he will retire as cbiz , inc. ceo in march 2016 , following the filing of the company 's annual report on form 10-k for the year ending december 31 , 2015. following his retirement , mr. gerard will continue to serve as chairman of the company 's board of directors . the company 's board of directors has indicated that it will appoint jerome p. grisko , jr. , currently president and coo of the company , as mr. gerard 's successor . during the year ended december 31 , 2013 , cbiz , through its subsidiary cbiz operations , inc. , an ohio corporation , completed the sale of all of the issued and outstanding capital stock of mmp to zotec partners , llc , an indiana limited liability company , for a purchase price of $ 201.6 million , subject to final working capital adjustments which were insignificant and recorded in ยgain on disposal of discontinued operations , net of taxย in the accompanying consolidated statements of comprehensive income for the year ended december 31 , 2014. the results of operations for mmp for the years ended december 31 , 2013 and 2012 are included in ย ( loss ) income from operations of discontinued operations , net of tax.ย the gain on the sale of mmp of approximately $ 58.3 million was recorded in ยgain on disposal of discontinued operations , net of taxย in the accompanying consolidated statements of comprehensive income for the year ended december 31 , 2013. prior to the completion of this transaction , mmp was considered one of cbiz 's practice groups . following the closing of the mmp transaction , the company operates in three operating practice groups . results of operations ย continuing operations cbiz provides professional business services that help clients manage their finances and employees . cbiz delivers its integrated services through the following three practice groups : financial services , employee services and national practices . a description of these groups ' operating results and factors affecting their businesses is provided below . story_separator_special_tag the decrease in personnel costs is due primarily to an increase in demand for services provided under the edward jones cost-plus contract arrangement in 2013 , whereas no such increase occurred during the comparable period in 2014. year ended december 31 , 2013 compared to year ended december 31 , 2012 revenue the following table summarizes total revenue for the years ended december 31 , 2013 and 2012 ( in thousands , except percentages ) : replace_table_token_14_th 33 a detailed discussion of revenue by practice group is included under ยoperating practice groupsย . gross margin and operating expenses ย operating expenses increased to $ 593.3 million for the year ended december 31 , 2013 from $ 540.3 million for the same period in 2012 , and decreased as a percentage of revenue to 87.6 % for the year ended december 31 , 2013 from 88.2 % for the comparable period in 2012. the primary components of operating expenses for the years ended december 31 , 2013 and 2012 are illustrated in the following table : replace_table_token_15_th ( 1 ) other operating expenses include office expenses , equipment costs , restructuring charges , bad debt and other expenses , none of which are individually significant as a percentage of total operating expenses . personnel costs as a percentage of revenue decreased 0.8 % to 66.8 % for the year ended december 31 , 2013 compared to 2012 due to the leveraging of labor costs in relation to the increase in revenues . personnel costs as a percentage of revenue experienced by the individual practice groups are discussed in further detail under ยoperating practice groups.ย the decrease in occupancy costs of 0.4 % of revenue was a result of the fixed nature of occupancy costs . the increase in professional fees primarily relates to the increase in the use of third party consultants in cbiz 's expanded governmental audit practice where outside professional services are needed . the increase in deferred compensation costs of 0.5 % resulted from adjustments to the fair value of investments held in the deferred compensation plan . the adjustments to the fair value of investments held in relation to the deferred compensation plan totaled a gain of $ 7.4 million and $ 3.8 million for the years ended december 31 , 2013 and 2012 , respectively . these adjustments are recorded as compensation expense and are offset by the same adjustments to ยother income , net , ย and thus do not have an impact on net income . although these adjustments are recorded as operating expenses , they are not allocated to the individual practice groups corporate general and administrative expenses ย g & a expenses increased by $ 4.2 million to $ 34.4 million for the year ended december 31 , 2013 , from $ 30.2 million for the same period in 2012 , and increased as a percent of revenue by 0.2 % to 5.1 % for the year ended december 31 , 2013 . 34 the primary components of g & a expenses for the years ended december 31 , 2013 and 2012 are illustrated in the following table : replace_table_token_16_th ( 1 ) other g & a expenses include office expenses , insurance expense and other expenses , none of which are individually significant as a percentage of total corporate g & a expenses . the increase in g & a expenses as a percentage of revenue is primarily attributable to the increase of 0.5 % in professional fees . this increase is a result of cbiz recording a recovery of legal fees in the fourth quarter of 2012 that was attributable to reimbursement of incurred legal expenses . interest expense ย interest expense increased by $ 0.4 million to $ 15.4 million for the year ended december 31 , 2013 from $ 15.0 million for the comparable period in 2012. the increase is primarily due to an increase in amortization of the discount related to the 2010 notes as well as amortization of deferred debt costs related to the credit facility . debt is further discussed under ยliquidity and capital resourcesย and in note 8 of the accompanying consolidated financial statements . gain on sale of operations , net ย the gain on sale of operations , net was $ 0.1 million and $ 2.8 million for the years ended december 31 , 2013 and 2012 , respectively . the net gain in 2012 was primarily comprised of the $ 2.5 million gain recognized from the 2011 sale of the company 's individual wealth management business . other income , net ย other income , net for the year ended december 31 , 2013 primarily consisted of an $ 8.2 gain in the fair value of investments held in the rabbi trust related to the deferred compensation plan and interest income of $ 0.5 million , offset by adjustments to the fair value of the company 's contingent purchase price liability related to prior acquisitions which resulted in other expense of $ 0.9 million . regarding the deferred compensation plan , the adjustments to the investments held in the rabbi trust do not impact cbiz 's net income as they are offset by a corresponding increase or decrease to the compensation expense , which is recorded as operating and g & a expenses in the accompanying consolidated statements of comprehensive income . other income , net for the year ended december 31 , 2012 primarily consisted of a $ 4.3 million gain in the fair value of investments related to the deferred compensation plan , proceeds from various legal settlements of $ 2.5 million , adjustments to the fair value of the company 's contingent purchase price liability related to prior acquisitions which resulted in other income of $ 1.0 million , and interest income of $ 0.3 million . income taxes ย cbiz recorded income tax expense from continuing operations of $ 16.6 million and $ 14.4 million for the
| sources and uses of cash as a result of the classification of two small businesses under the financial services segment group as discontinued operations , the accompanying consolidated statement of cash flows has been restated to reflect the net income from these operations as an adjustment to reconcile net income to net cash provided by operating activities . the following table summarizes cash flows from operating , investing and financing activities for the years ended december 31 , 2014 , 2013 and 2012 ( in thousands ) : replace_table_token_21_th ( 1 ) included in operating cash flows used in discontinued operations in 2013 was cash paid for taxes of $ 47.5 million related to the gain on sale of mmp . operating activities cash flows from operating activities represent net income adjusted for certain non-cash items and changes in assets and liabilities . cbiz typically experiences a net use of cash from operations during the first quarter of its fiscal year , as accounts receivable balances grow in response to the seasonal increase in first quarter revenue generated by the financial services practice group ( primarily for accounting and tax services ) . this net use of cash is followed by strong operating cash flow during the second and third quarters , as a significant amount of revenue generated by the financial 42 services practice group during the first four months of the year are billed and collected in subsequent quarters . non-cash adjustments to net income mentioned below mainly consist of depreciation of fixed assets , amortization of intangible assets including client lists and non-compete agreements , amortization of the discount on convertible notes and deferred financing fees , provision for bad debts , adjustments to contingent purchase price liabilities , deferred income tax expense and stock-based compensation expense . during the year ended december 31 , 2014 , net cash provided by operating activities was $ 43.9 million and consisted of net income of $ 29.8 million and non-cash adjustments to net income of $ 32.7 million . these sources of cash were offset primarily by negative changes in working capital of $ 18.7 million .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```sources and uses of cash as a result of the classification of two small businesses under the financial services segment group as discontinued operations , the accompanying consolidated statement of cash flows has been restated to reflect the net income from these operations as an adjustment to reconcile net income to net cash provided by operating activities . the following table summarizes cash flows from operating , investing and financing activities for the years ended december 31 , 2014 , 2013 and 2012 ( in thousands ) : replace_table_token_21_th ( 1 ) included in operating cash flows used in discontinued operations in 2013 was cash paid for taxes of $ 47.5 million related to the gain on sale of mmp . operating activities cash flows from operating activities represent net income adjusted for certain non-cash items and changes in assets and liabilities . cbiz typically experiences a net use of cash from operations during the first quarter of its fiscal year , as accounts receivable balances grow in response to the seasonal increase in first quarter revenue generated by the financial services practice group ( primarily for accounting and tax services ) . this net use of cash is followed by strong operating cash flow during the second and third quarters , as a significant amount of revenue generated by the financial 42 services practice group during the first four months of the year are billed and collected in subsequent quarters . non-cash adjustments to net income mentioned below mainly consist of depreciation of fixed assets , amortization of intangible assets including client lists and non-compete agreements , amortization of the discount on convertible notes and deferred financing fees , provision for bad debts , adjustments to contingent purchase price liabilities , deferred income tax expense and stock-based compensation expense . during the year ended december 31 , 2014 , net cash provided by operating activities was $ 43.9 million and consisted of net income of $ 29.8 million and non-cash adjustments to net income of $ 32.7 million . these sources of cash were offset primarily by negative changes in working capital of $ 18.7 million .
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Suspicious Activity Report : annualized revenues are estimated to be approximately $ 1.6 million and are reported in the employee services practice group . lbr , located in tampa bay , florida , is a professional tax , accounting and consulting service provider with significant experience and expertise in matrimonial and family law litigation support , not-for-profit entities and health care provider services . annualized revenues are estimated to be approximately $ 9.8 million and are reported in the financial services practice group . second quarter 2014 tegrit , based in akron , ohio , is a national provider of actuarial consulting and retirement plan administration . annualized revenues are estimated to be approximately $ 8.5 million and are reported in the employee services practice group . third quarter 2014 sattler , based in lewiston , idaho , provides property and casualty , personal , and life insurance services , with a specialty in outdoor recreation insurance , to businesses across the united states . annualized revenues are estimated to be approximately $ 1.6 million and are reported in the employee services practice group . fourth quarter 2014 w & c , located in delray beach , florida , is a full service insurance brokerage firm offering clients a complete line of services including commercial lines , personal lines , risk management , and employee benefits . annualized revenues are estimated to be approximately $ 9.0 million and are reported in the employee services practice group . during the year ended december 31 , 2014 , cbiz also purchased four client lists , three of which are reported in the financial services practice group and one of which reported in the employee services practice group . during the year ended december 31 , 2014 , cbiz decided to divest four businesses : cbiz made the decision to divest the operations of two small businesses under the financial services practice group . these businesses are being held for sale at december 31 , 2014 with the results of operations for these businesses being recorded in ย ( loss ) income from operations of discontinued operations , net of taxย in the accompanying consolidated statements of comprehensive income . cbiz sold a business from the financial services practice group for $ 2.9 million . a gain of $ 1.2 million was recorded in ยgain on sale of operations , netย in the accompanying consolidated statements of comprehensive income for the year ended december 31 , 2014 . 26 cbiz sold the assets of its property tax business located in leawood , kansas for a purchase price of $ 1.2 million . an insignificant gain was recorded in ยgain on disposal of discontinued operations , net of taxย in the accompanying consolidated statements of comprehensive income for the year ended december 31 , 2014. the property tax business was classified as held for sale during the comparable period in 2013 and was previously reported in the financial services practice group . cbiz believes that repurchasing shares of its common stock provides value to its stockholders . cbiz repurchased approximately 3.2 million shares of its common stock on the open market during 2014 at a total cost of approximately $ 26.7 million . on february 11 , 2015 , cbiz 's board of directors authorized the purchase of up to 5.0 million shares of cbiz common stock through march 31 , 2016. the shares may be repurchased in the open market or through privately negotiated purchases in accordance with sec rules . subsequent to december 31 , 2014 up to the date of this filing , cbiz repurchased approximately 600,000 shares at a total cost of approximately $ 5.0 million under a rule 10b5-1 trading plan , which allows cbiz to repurchase shares below a predetermined price per share . on october 29 , 2014 , steven l. gerard announced that he will retire as cbiz , inc. ceo in march 2016 , following the filing of the company 's annual report on form 10-k for the year ending december 31 , 2015. following his retirement , mr. gerard will continue to serve as chairman of the company 's board of directors . the company 's board of directors has indicated that it will appoint jerome p. grisko , jr. , currently president and coo of the company , as mr. gerard 's successor . during the year ended december 31 , 2013 , cbiz , through its subsidiary cbiz operations , inc. , an ohio corporation , completed the sale of all of the issued and outstanding capital stock of mmp to zotec partners , llc , an indiana limited liability company , for a purchase price of $ 201.6 million , subject to final working capital adjustments which were insignificant and recorded in ยgain on disposal of discontinued operations , net of taxย in the accompanying consolidated statements of comprehensive income for the year ended december 31 , 2014. the results of operations for mmp for the years ended december 31 , 2013 and 2012 are included in ย ( loss ) income from operations of discontinued operations , net of tax.ย the gain on the sale of mmp of approximately $ 58.3 million was recorded in ยgain on disposal of discontinued operations , net of taxย in the accompanying consolidated statements of comprehensive income for the year ended december 31 , 2013. prior to the completion of this transaction , mmp was considered one of cbiz 's practice groups . following the closing of the mmp transaction , the company operates in three operating practice groups . results of operations ย continuing operations cbiz provides professional business services that help clients manage their finances and employees . cbiz delivers its integrated services through the following three practice groups : financial services , employee services and national practices . a description of these groups ' operating results and factors affecting their businesses is provided below . story_separator_special_tag the decrease in personnel costs is due primarily to an increase in demand for services provided under the edward jones cost-plus contract arrangement in 2013 , whereas no such increase occurred during the comparable period in 2014. year ended december 31 , 2013 compared to year ended december 31 , 2012 revenue the following table summarizes total revenue for the years ended december 31 , 2013 and 2012 ( in thousands , except percentages ) : replace_table_token_14_th 33 a detailed discussion of revenue by practice group is included under ยoperating practice groupsย . gross margin and operating expenses ย operating expenses increased to $ 593.3 million for the year ended december 31 , 2013 from $ 540.3 million for the same period in 2012 , and decreased as a percentage of revenue to 87.6 % for the year ended december 31 , 2013 from 88.2 % for the comparable period in 2012. the primary components of operating expenses for the years ended december 31 , 2013 and 2012 are illustrated in the following table : replace_table_token_15_th ( 1 ) other operating expenses include office expenses , equipment costs , restructuring charges , bad debt and other expenses , none of which are individually significant as a percentage of total operating expenses . personnel costs as a percentage of revenue decreased 0.8 % to 66.8 % for the year ended december 31 , 2013 compared to 2012 due to the leveraging of labor costs in relation to the increase in revenues . personnel costs as a percentage of revenue experienced by the individual practice groups are discussed in further detail under ยoperating practice groups.ย the decrease in occupancy costs of 0.4 % of revenue was a result of the fixed nature of occupancy costs . the increase in professional fees primarily relates to the increase in the use of third party consultants in cbiz 's expanded governmental audit practice where outside professional services are needed . the increase in deferred compensation costs of 0.5 % resulted from adjustments to the fair value of investments held in the deferred compensation plan . the adjustments to the fair value of investments held in relation to the deferred compensation plan totaled a gain of $ 7.4 million and $ 3.8 million for the years ended december 31 , 2013 and 2012 , respectively . these adjustments are recorded as compensation expense and are offset by the same adjustments to ยother income , net , ย and thus do not have an impact on net income . although these adjustments are recorded as operating expenses , they are not allocated to the individual practice groups corporate general and administrative expenses ย g & a expenses increased by $ 4.2 million to $ 34.4 million for the year ended december 31 , 2013 , from $ 30.2 million for the same period in 2012 , and increased as a percent of revenue by 0.2 % to 5.1 % for the year ended december 31 , 2013 . 34 the primary components of g & a expenses for the years ended december 31 , 2013 and 2012 are illustrated in the following table : replace_table_token_16_th ( 1 ) other g & a expenses include office expenses , insurance expense and other expenses , none of which are individually significant as a percentage of total corporate g & a expenses . the increase in g & a expenses as a percentage of revenue is primarily attributable to the increase of 0.5 % in professional fees . this increase is a result of cbiz recording a recovery of legal fees in the fourth quarter of 2012 that was attributable to reimbursement of incurred legal expenses . interest expense ย interest expense increased by $ 0.4 million to $ 15.4 million for the year ended december 31 , 2013 from $ 15.0 million for the comparable period in 2012. the increase is primarily due to an increase in amortization of the discount related to the 2010 notes as well as amortization of deferred debt costs related to the credit facility . debt is further discussed under ยliquidity and capital resourcesย and in note 8 of the accompanying consolidated financial statements . gain on sale of operations , net ย the gain on sale of operations , net was $ 0.1 million and $ 2.8 million for the years ended december 31 , 2013 and 2012 , respectively . the net gain in 2012 was primarily comprised of the $ 2.5 million gain recognized from the 2011 sale of the company 's individual wealth management business . other income , net ย other income , net for the year ended december 31 , 2013 primarily consisted of an $ 8.2 gain in the fair value of investments held in the rabbi trust related to the deferred compensation plan and interest income of $ 0.5 million , offset by adjustments to the fair value of the company 's contingent purchase price liability related to prior acquisitions which resulted in other expense of $ 0.9 million . regarding the deferred compensation plan , the adjustments to the investments held in the rabbi trust do not impact cbiz 's net income as they are offset by a corresponding increase or decrease to the compensation expense , which is recorded as operating and g & a expenses in the accompanying consolidated statements of comprehensive income . other income , net for the year ended december 31 , 2012 primarily consisted of a $ 4.3 million gain in the fair value of investments related to the deferred compensation plan , proceeds from various legal settlements of $ 2.5 million , adjustments to the fair value of the company 's contingent purchase price liability related to prior acquisitions which resulted in other income of $ 1.0 million , and interest income of $ 0.3 million . income taxes ย cbiz recorded income tax expense from continuing operations of $ 16.6 million and $ 14.4 million for the
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2,523 | we expect to incur substantial net losses for the next several years as we continue to develop certain of our existing product development programs , and over the long-term if we expand our research and development programs and acquire or in-license products , technologies or businesses that are complementary to our own . as of december 31 , 2012 , we had available cash and cash equivalents of $ 4.0 million and working capital of $ 3.4 million . we expect to have approximately $ 3 million in available cash as of march 31 , 2013 , and , assuming we raise additional capital , we expect to spend approximately $ 6 million from april 1 , 2013 through december 31 , 2013 to execute our strategic plan and fund operations . as of the date of this report , we have working capital sufficient to fund operations through june 30 , 2013. these factors raise substantial doubt about the company 's ability to continue as a going concern . between august 21 , 2012 and the date of this report we have generated proceeds of $ 3.0 million under the common stock purchase agreement with aspire capital fund llc ( ยaspireย ) including proceeds of $ 1.5 million on the sale 800,000 shares of our common stock subsequent to december 31 , 2012. we have the right , subject to the terms of the common stock purchase agreement , to cause aspire to acquire up to 3,231,096 shares for total gross proceeds not to exceed $ 20 million ( including the 2,019,696 shares issued or sold to aspire to date for $ 3.0 million ) , subject to daily dollar limitations and subject to the maximum dollar amount we can sell from time to time under our registration statement on form s-3 . we expect to sell additional shares under this agreement during 2013. we are also pursuing other opportunities to raise capital through the sale of our common stock or through other strategic initiatives . there can be no assurances that there will be adequate financing available to us on acceptable terms , or at all . if the company is unable to obtain additional financing , we may have to sell one or more of our programs or cease operations . we are currently focusing our development activities on mn-166 , an ibudilast-based drug candidate for the treatment of neurological disorders , and obtaining additional funding to advance clinical trial development of mn-221 , a novel , highly selective ร 2 -adrenergic receptor agonist being developed for the treatment of acute exacerbations of asthma and copd . including mn-166 and mn-221 and our other product development programs , we have acquired licenses to eight compounds for the development of ten product candidates which include clinical development for the treatment of acute exacerbations of asthma , ms and other central nervous system ( cns ) disorders , bronchial asthma , interstitial cystitis ( ic ) , solid tumor cancers , generalized anxiety disorders/insomnia , preterm labor and urinary incontinence . we entered into an agreement to form a joint venture company with zhejiang medicine co. , ltd. and beijing make-friend medicine technology co. , ltd. effective september 27 , 2011. the joint venture agreement 54 provides for the joint venture company , zhejiang sunmy bio-medical co. , ltd. ( ยzhejiang sunmyย ) , to develop and commercialize mn-221 in china . a sublicense will be required under which zhejiang sunmy will license mn-221 from us . in accordance with the joint venture agreement , in march 2012 we paid $ 680,000 for our 30 % interest in zhejiang sunmy . the other parties to the joint venture agreement provided funding for their combined 70 % interest . we have not entered into the sublicense of mn-221 with the joint venture company as of the date of this report . there is no assurance the sublicense will be executed and there is no assurance that zhejiang sunmy will be able to proceed with the development of mn-221 in china . a. zhejiang sunmy is a variable interest entity for which we are not the primary beneficiary as we do not have a majority of the board seats and we will not have power to direct or significantly influence the actions of the entity . we therefore account for the activities of zhejiang sunmy under the equity method whereby we absorb any loss or income generated by zhejiang sunmy according to our percentage ownership . at december 31 , 2012 we reflect a long-term asset on our consolidated balance sheet which represents our investment in zhejiang sunmy , net of our portion of any generated loss or income . upon completion of proof-of-concept phase 2 clinical trials , we intend to enter into strategic alliances with leading pharmaceutical or biotech companies who seek late stage product candidates , such as mn-221 , to support further clinical development and product commercialization . depending on decisions we may make as to further clinical development , we may seek to raise addition capital . we may also pursue potential partnerships and potential acquirers of license rights to our programs in markets outside the u.s. underwritten firm commitment public offering in march 2011 we completed a firm-commitment underwritten public offering of 2,750,000 units at a price to the public of $ 3.00 per unit for gross proceeds of $ 8.25 million . each unit consists of one share of common stock and a warrant to purchase one share of common stock . the shares of common stock and warrants are immediately separable and were issued separately . on march 24 , 2011 , the underwriter exercised 50,666 units of its 412,500 unit overallotment . story_separator_special_tag if assets are considered to be impaired , the impairment recognized is the amount by which the carrying value of the assets exceeds the fair value of the assets . recent accounting pronouncements in may 2011 , the financial accounting standards board , or fasb , issued updated accounting guidance that clarifies existing fair value measurements and disclosures , and eliminates differences between gaap and international financial reporting standards to make convergence guidance more understandable . this guidance is effective for interim and annual periods beginning after december 15 , 2011. the adoption of this guidance did not have a material impact on the company 's consolidated financial statements . 59 in september 2011 , the fasb , issued guidance to simplify how entities test for goodwill impairment . the updated guidance permits an assessment of qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit in which goodwill resides is less than its carrying value . for reporting units in which this assessment concludes it is more likely than not that the fair value is more than its carrying value , the updated guidance eliminates the requirement to perform further goodwill impairment testing . this new guidance is effective for fiscal years beginning after december 15 , 2011. the adoption of this guidance did not have a material impact on the company 's consolidated financial statements . effective january 1 , 2012 , the company adopted guidance issued by the fasb , concerning presentation and disclosure only for the presentation of comprehensive ( loss ) income . the adoption of this guidance did not have a material impact on the company 's consolidated financial position or results of operations , other than its impact on the presentation of comprehensive ( loss ) income . in august 2012 , the fasb issued updated guidance to 2011 guidance that permits an assessment of the qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit in which goodwill resides is less than its carrying value . this updated guidance is effective for annual and interim impairment tests performed for fiscal years beginning after september 15 , 2012 with early adoption permitted . the adoption of this standard is not expected to have a material impact on our consolidated financial statements . results of operations comparison of the years ended december 31 , 2012 and 2011 revenues revenue for the year ended december 31 , 2012 was approximately $ 803,000. there was no revenue for the year ended december 31 , 2011. the revenue recorded in 2012 related to the development services we performed under the kissei services agreement during that period . research and development research and development expenses for the year ended december 31 , 2012 were $ 5.0 million , a decrease of $ 2.8 million compared to $ 7.8 million for the year ended december 31 , 2011. this decrease in research and development expenses primarily related to a decrease of $ 3.4 million in spending on mn-221 primarily due to the completion of the cl-007 clinical trial in march 2012 , partially offset by an increase in spending of $ 1.3 million for our mn-221ยcl-012 clinical trial , and decreases in unallocated employee compensation , occupancy and legal costs totaling $ 0.6 million . general and administrative general and administrative expenses were $ 6.7 million for the year ended december 31 , 2012 , a decrease of $ 1.6 million compared to $ 8.3 million for the year ended december 31 , 2011. this decrease in general and administrative expenses was due primarily to $ 1.2 million decrease in employee compensation expense including $ 0.6 million related to stock-based compensation , and a decrease in professional legal and accounting fees of $ 0.4 million . other expense other expense for the year ended december 31 , 2012 was approximately $ 30,000 , as compared to approximately $ 80,000 for the year ended december 31 , 2011. in 2011 , other expense primarily consisted of accretion related to convertible notes and amortization of debt issuance costs paid to third parties . in 2012 , other expense consisted of losses from the joint venture accounted for under the equity method according to our percentage ownership , and net foreign exchange losses related to vendor invoices denominated in foreign currencies . 60 interest expense interest expense for the year ended december 30 , 2011 was $ 1.6 million and consisted of interest on our debt under the effective interest method and write-off of debt related costs pursuant to the early repayment of our debt with oxford . in 2012 , we held no debt and had no interest expense . other income other income for the year ended december 31 , 2012 was approximately $ 25,000 , as compared to approximately $ 60,000 for the year ended december 31 , 2011. the decrease is due to a decrease in interest income on lower cash equivalents . story_separator_special_tag payments upon the achievement of various milestones related to clinical , regulatory or commercial events ; our ability to establish and maintain strategic collaborations , including licensing and other arrangements , and to complete acquisitions of additional product candidates ; the time and costs involved in obtaining regulatory approvals ; the costs of securing manufacturing arrangements for clinical or commercial production of our product candidates ; the costs associated with expanding our management , personnel , systems and facilities ; the costs associated with any litigation ; the costs associated with the operations or wind-down of any business we may acquire ; the costs involved in filing , prosecuting , enforcing and defending patent claims and other intellectual property rights ; and the costs of establishing or contracting for sales and marketing capabilities and commercialization activities if we obtain regulatory approval to market our product candidates . 62 other significant contractual obligations the following summarizes our
| liquidity and capital resources we incurred losses of $ 11.0 million and $ 17.7 million for the years ended december 31 , 2012 , and 2011 respectively . at december 31 , 2012 , from inception , our accumulated deficit was $ 296.2 million , including $ 50.4 million of non-cash stock-based compensation charges . we have used net cash of $ 11.9 million and $ 13.3 million to fund our operating activities for the years ended december 31 , 2012 and 2011 , respectively . our operating losses to date have been funded primarily through the private placement of our equity securities , the public sale of our common stock , long-term debt , development agreements with partners and the exercise of founders ' warrants , net of treasury stock repurchases . in march 2011 we announced a firm-commitment underwritten public offering of 2,750,000 units at a price to the public of $ 3.00 per unit for gross proceeds of $ 8.25 million . each unit consists of one share of common stock , and a warrant to purchase one share of common stock . the shares of common stock and warrants are immediately separable and were issued separately . on march 24 , 2011 , the underwriter exercised 50,666 units of its 412,500 unit overallotment . in october 2011 , pursuant to a stock purchase agreement by and between us and kissei pharmaceutical co. , ltd. , or kissei , kissei purchased ( i ) an aggregate of 800,000 shares of our common stock , par value $ 0.001 per share at a price of $ 2.50 per share , and ( ii ) 220,000 shares of our series b convertible preferred stock , par value $ 0.01 per share , at a price of $ 25.00 per share . in october we received gross proceeds of $ 7.5 million related to this purchase agreement . in october 2011 , we entered into an agreement with kissei to perform research and development services relating to mn-221 in exchange for a non-refundable upfront payment of $ 2.5 million .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources we incurred losses of $ 11.0 million and $ 17.7 million for the years ended december 31 , 2012 , and 2011 respectively . at december 31 , 2012 , from inception , our accumulated deficit was $ 296.2 million , including $ 50.4 million of non-cash stock-based compensation charges . we have used net cash of $ 11.9 million and $ 13.3 million to fund our operating activities for the years ended december 31 , 2012 and 2011 , respectively . our operating losses to date have been funded primarily through the private placement of our equity securities , the public sale of our common stock , long-term debt , development agreements with partners and the exercise of founders ' warrants , net of treasury stock repurchases . in march 2011 we announced a firm-commitment underwritten public offering of 2,750,000 units at a price to the public of $ 3.00 per unit for gross proceeds of $ 8.25 million . each unit consists of one share of common stock , and a warrant to purchase one share of common stock . the shares of common stock and warrants are immediately separable and were issued separately . on march 24 , 2011 , the underwriter exercised 50,666 units of its 412,500 unit overallotment . in october 2011 , pursuant to a stock purchase agreement by and between us and kissei pharmaceutical co. , ltd. , or kissei , kissei purchased ( i ) an aggregate of 800,000 shares of our common stock , par value $ 0.001 per share at a price of $ 2.50 per share , and ( ii ) 220,000 shares of our series b convertible preferred stock , par value $ 0.01 per share , at a price of $ 25.00 per share . in october we received gross proceeds of $ 7.5 million related to this purchase agreement . in october 2011 , we entered into an agreement with kissei to perform research and development services relating to mn-221 in exchange for a non-refundable upfront payment of $ 2.5 million .
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Suspicious Activity Report : we expect to incur substantial net losses for the next several years as we continue to develop certain of our existing product development programs , and over the long-term if we expand our research and development programs and acquire or in-license products , technologies or businesses that are complementary to our own . as of december 31 , 2012 , we had available cash and cash equivalents of $ 4.0 million and working capital of $ 3.4 million . we expect to have approximately $ 3 million in available cash as of march 31 , 2013 , and , assuming we raise additional capital , we expect to spend approximately $ 6 million from april 1 , 2013 through december 31 , 2013 to execute our strategic plan and fund operations . as of the date of this report , we have working capital sufficient to fund operations through june 30 , 2013. these factors raise substantial doubt about the company 's ability to continue as a going concern . between august 21 , 2012 and the date of this report we have generated proceeds of $ 3.0 million under the common stock purchase agreement with aspire capital fund llc ( ยaspireย ) including proceeds of $ 1.5 million on the sale 800,000 shares of our common stock subsequent to december 31 , 2012. we have the right , subject to the terms of the common stock purchase agreement , to cause aspire to acquire up to 3,231,096 shares for total gross proceeds not to exceed $ 20 million ( including the 2,019,696 shares issued or sold to aspire to date for $ 3.0 million ) , subject to daily dollar limitations and subject to the maximum dollar amount we can sell from time to time under our registration statement on form s-3 . we expect to sell additional shares under this agreement during 2013. we are also pursuing other opportunities to raise capital through the sale of our common stock or through other strategic initiatives . there can be no assurances that there will be adequate financing available to us on acceptable terms , or at all . if the company is unable to obtain additional financing , we may have to sell one or more of our programs or cease operations . we are currently focusing our development activities on mn-166 , an ibudilast-based drug candidate for the treatment of neurological disorders , and obtaining additional funding to advance clinical trial development of mn-221 , a novel , highly selective ร 2 -adrenergic receptor agonist being developed for the treatment of acute exacerbations of asthma and copd . including mn-166 and mn-221 and our other product development programs , we have acquired licenses to eight compounds for the development of ten product candidates which include clinical development for the treatment of acute exacerbations of asthma , ms and other central nervous system ( cns ) disorders , bronchial asthma , interstitial cystitis ( ic ) , solid tumor cancers , generalized anxiety disorders/insomnia , preterm labor and urinary incontinence . we entered into an agreement to form a joint venture company with zhejiang medicine co. , ltd. and beijing make-friend medicine technology co. , ltd. effective september 27 , 2011. the joint venture agreement 54 provides for the joint venture company , zhejiang sunmy bio-medical co. , ltd. ( ยzhejiang sunmyย ) , to develop and commercialize mn-221 in china . a sublicense will be required under which zhejiang sunmy will license mn-221 from us . in accordance with the joint venture agreement , in march 2012 we paid $ 680,000 for our 30 % interest in zhejiang sunmy . the other parties to the joint venture agreement provided funding for their combined 70 % interest . we have not entered into the sublicense of mn-221 with the joint venture company as of the date of this report . there is no assurance the sublicense will be executed and there is no assurance that zhejiang sunmy will be able to proceed with the development of mn-221 in china . a. zhejiang sunmy is a variable interest entity for which we are not the primary beneficiary as we do not have a majority of the board seats and we will not have power to direct or significantly influence the actions of the entity . we therefore account for the activities of zhejiang sunmy under the equity method whereby we absorb any loss or income generated by zhejiang sunmy according to our percentage ownership . at december 31 , 2012 we reflect a long-term asset on our consolidated balance sheet which represents our investment in zhejiang sunmy , net of our portion of any generated loss or income . upon completion of proof-of-concept phase 2 clinical trials , we intend to enter into strategic alliances with leading pharmaceutical or biotech companies who seek late stage product candidates , such as mn-221 , to support further clinical development and product commercialization . depending on decisions we may make as to further clinical development , we may seek to raise addition capital . we may also pursue potential partnerships and potential acquirers of license rights to our programs in markets outside the u.s. underwritten firm commitment public offering in march 2011 we completed a firm-commitment underwritten public offering of 2,750,000 units at a price to the public of $ 3.00 per unit for gross proceeds of $ 8.25 million . each unit consists of one share of common stock and a warrant to purchase one share of common stock . the shares of common stock and warrants are immediately separable and were issued separately . on march 24 , 2011 , the underwriter exercised 50,666 units of its 412,500 unit overallotment . story_separator_special_tag if assets are considered to be impaired , the impairment recognized is the amount by which the carrying value of the assets exceeds the fair value of the assets . recent accounting pronouncements in may 2011 , the financial accounting standards board , or fasb , issued updated accounting guidance that clarifies existing fair value measurements and disclosures , and eliminates differences between gaap and international financial reporting standards to make convergence guidance more understandable . this guidance is effective for interim and annual periods beginning after december 15 , 2011. the adoption of this guidance did not have a material impact on the company 's consolidated financial statements . 59 in september 2011 , the fasb , issued guidance to simplify how entities test for goodwill impairment . the updated guidance permits an assessment of qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit in which goodwill resides is less than its carrying value . for reporting units in which this assessment concludes it is more likely than not that the fair value is more than its carrying value , the updated guidance eliminates the requirement to perform further goodwill impairment testing . this new guidance is effective for fiscal years beginning after december 15 , 2011. the adoption of this guidance did not have a material impact on the company 's consolidated financial statements . effective january 1 , 2012 , the company adopted guidance issued by the fasb , concerning presentation and disclosure only for the presentation of comprehensive ( loss ) income . the adoption of this guidance did not have a material impact on the company 's consolidated financial position or results of operations , other than its impact on the presentation of comprehensive ( loss ) income . in august 2012 , the fasb issued updated guidance to 2011 guidance that permits an assessment of the qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit in which goodwill resides is less than its carrying value . this updated guidance is effective for annual and interim impairment tests performed for fiscal years beginning after september 15 , 2012 with early adoption permitted . the adoption of this standard is not expected to have a material impact on our consolidated financial statements . results of operations comparison of the years ended december 31 , 2012 and 2011 revenues revenue for the year ended december 31 , 2012 was approximately $ 803,000. there was no revenue for the year ended december 31 , 2011. the revenue recorded in 2012 related to the development services we performed under the kissei services agreement during that period . research and development research and development expenses for the year ended december 31 , 2012 were $ 5.0 million , a decrease of $ 2.8 million compared to $ 7.8 million for the year ended december 31 , 2011. this decrease in research and development expenses primarily related to a decrease of $ 3.4 million in spending on mn-221 primarily due to the completion of the cl-007 clinical trial in march 2012 , partially offset by an increase in spending of $ 1.3 million for our mn-221ยcl-012 clinical trial , and decreases in unallocated employee compensation , occupancy and legal costs totaling $ 0.6 million . general and administrative general and administrative expenses were $ 6.7 million for the year ended december 31 , 2012 , a decrease of $ 1.6 million compared to $ 8.3 million for the year ended december 31 , 2011. this decrease in general and administrative expenses was due primarily to $ 1.2 million decrease in employee compensation expense including $ 0.6 million related to stock-based compensation , and a decrease in professional legal and accounting fees of $ 0.4 million . other expense other expense for the year ended december 31 , 2012 was approximately $ 30,000 , as compared to approximately $ 80,000 for the year ended december 31 , 2011. in 2011 , other expense primarily consisted of accretion related to convertible notes and amortization of debt issuance costs paid to third parties . in 2012 , other expense consisted of losses from the joint venture accounted for under the equity method according to our percentage ownership , and net foreign exchange losses related to vendor invoices denominated in foreign currencies . 60 interest expense interest expense for the year ended december 30 , 2011 was $ 1.6 million and consisted of interest on our debt under the effective interest method and write-off of debt related costs pursuant to the early repayment of our debt with oxford . in 2012 , we held no debt and had no interest expense . other income other income for the year ended december 31 , 2012 was approximately $ 25,000 , as compared to approximately $ 60,000 for the year ended december 31 , 2011. the decrease is due to a decrease in interest income on lower cash equivalents . story_separator_special_tag payments upon the achievement of various milestones related to clinical , regulatory or commercial events ; our ability to establish and maintain strategic collaborations , including licensing and other arrangements , and to complete acquisitions of additional product candidates ; the time and costs involved in obtaining regulatory approvals ; the costs of securing manufacturing arrangements for clinical or commercial production of our product candidates ; the costs associated with expanding our management , personnel , systems and facilities ; the costs associated with any litigation ; the costs associated with the operations or wind-down of any business we may acquire ; the costs involved in filing , prosecuting , enforcing and defending patent claims and other intellectual property rights ; and the costs of establishing or contracting for sales and marketing capabilities and commercialization activities if we obtain regulatory approval to market our product candidates . 62 other significant contractual obligations the following summarizes our
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2,524 | the company operates through two reportable segments : ( i ) information services and ( ii ) performance marketing . for additional information relating to our segments , see note 16 , โ segment information , โ in our notes to consolidated financial statements . information services โleveraging leading-edge technology , proprietary algorithms , and massive datasets , and through intuitive and powerful analytical applications , we provide solutions to organizations within the risk management and consumer marketing industries . core is our next generation data fusion platform , providing mission-critical information about individuals , businesses and assets to a variety of markets and industries . through machine learning and advanced analytics , our information services segment uses the power of data fusion to ingest and analyze data at a massive scale . the derived information from the data fusion process ultimately serves to generate unique solutions for banking and financial services companies , insurance companies , healthcare companies , law enforcement and government , the collection industry , law firms , retail , telecommunications companies , corporate security and investigative firms . in addition , our data acquisition solutions enable clients to rapidly grow their customer databases by using self-declared consumer insights to identify , connect with , and acquire first-party consumer data and multi-channel marketing consent at massive scale . built in a secure payment card industry ( pci ) compliant environment , our cloud-based next generation technology delivers greater than four 9s of service uptime . by leveraging our proprietary infrastructure design within the cloud , we currently operate in six datacenters spread geographically across the u.s. and are able to dynamically and seamlessly scale as needed . using our intelligent 31 framework and leveraging a micro services architecture where appropriate , we reduce operational cost and complexity , thus delivering sup erior performance at greatly reduced costs compared to traditional datacenter architectures . since the release of our core platform in may 2016 , we have added billions of data records and continue to add approximately over a billion records per month on av erage . our average query response time for a comprehensive profile is less than 250 milliseconds versus competitive platforms that measure comprehensive profile response times in seconds . performance marketing โour agile audience engine drives our performance marketing segment , which provides solutions to help brands , advertisers and marketers find the right customers in every major business-to-consumer ( b2c ) vertical , including internet and telecommunications , financial services , health and wellness , consumer packaged goods , careers and education , and retail and entertainment . we deterministically target consumers across various marketing channels and devices , through the user- supplied acquisition of personally identifiable information on behalf of our clients , such as email addresses , other identifying information and responses to dynamically-populated survey questions . additionally , 80 % of our consumer interaction comes from mobile , a highly-differentiated characteristic compared to our competitors whose platforms are not mobile-first . we own hundreds of media properties , through which we engage millions of consumers everyday with interactive content , such as job postings , cost savings , surveys , promotions and sweepstakes that generate over 800,000 registrations and over 7.5 million compiled survey responses a day . our owned media properties alone have created a database of approximately 130 million u.s. adults with detailed profiles , including 224 million unique email addresses , across over 75 million households . with meaningful , people-based interaction that focuses on consumer behavior and declared first-party data , leveraged on a mobile-centric platform that provides seamless omni-channel capabilities , we have the ability to target and develop comprehensive consumer profiles that redefine the way advertisers view their most valuable customers . previously , we provided advertising services in the out-of-home advertising industry in china under the name tiger media , inc. ( โ tiger media โ ) . on march 21 , 2015 , tiger media completed the acquisition of the best one , inc. ( โ tbo โ ) . in the transaction , tbo became a wholly owned subsidiary of tiger media , with tbo changing its name to idi holdings , llc and tiger media changing its name to idi , inc , now known as cogint , inc. tbo was a holding company engaged in the acquisition of operating businesses and the acquisition and development of technology assets across various industries . previously , on october 2 , 2014 , tbo acquired 100 % of the membership interests of interactive data , llc ( โ interactive data โ ) . historically , interactive data provided data solutions and services to the accounts receivable management industry , consisting primarily of collection agencies , collection law firms , and debt buyers , for location and identity verification , legislative compliance and debt recovery . interactive data now serves the entirety of the risk management industry . through leading-edge , proprietary technology , advanced systems architecture , and a massive data repository , interactive data addresses the rapidly growing need for actionable intelligence . on december 9 , 2015 , we completed the acquisition of fluent , llc ( โ fluent โ ) with certain transactions effective december 8 , 2015 ( the โ fluent acquisition โ ) . fluent , founded in 2010 , is a leader in people-based digital marketing and customer acquisition , serving over 500 leading consumer brands and direct marketers . fluent 's proprietary audience data and robust ad-serving technology enables marketers to acquire their best customers , with precision , at a massive scale . leveraging compelling content , unique first-party data assets , and real-time survey interaction with customers , fluent has helped marketers acquire millions of new prospective customers since its inception . story_separator_special_tag as a result , compensation expense recorded in the period that achievement is deemed probable could include a substantial amount of previously unrecorded compensation expense related to the prior periods . if ultimat ely performance goals are not met , for any share-based awards where vesting was previously deemed probable , previously recognized compensation cost will be reversed . recently issued accounting standards see item 8 of part ii , โ financial statements and supplementary data โ note 2. summary of significant accounting policies - ( t ) recently issued accounting standards . โ fourth quarter financial highlights for the three months ended december 31 , 2016 , as compared to the three months ended december 31 , 2015 : total revenue increased to $ 54.2 million from $ 10.8 million . information service revenue increased to $ 16.2 million from $ 3.1 million . performance marketing revenue increased to $ 38.0 million from $ 7.7 million . gross profit margin increased to 33 % from 21 % . net loss improved to $ 5.4 million from a net loss of $ 32.6 million . adjusted ebitda improved to $ 6.3 million from a loss of $ 2.3 million . for the three months ended december 31 , 2016 , as compared to the three months ended september 30 , 2016 : total revenue increased to $ 54.2 million from $ 52.2 million . information service revenue increased to $ 16.2 million from $ 14.8 million . performance marketing revenue increased to $ 38.0 million from $ 37.4 million . gross profit margin increased to 33 % from 24 % . net loss improved to $ 5.4 million from a net loss of $ 9.7 million . adjusted ebitda increased to $ 6.3 million from $ 3.2 million . full year financial highlights for the year ended december 31 , 2016 , as compared to the year ended december 31 , 2015 : total revenue increased to $ 186.8 million from $ 14.1 million . information service revenue increased to $ 55.4 million from $ 6.4 million . performance marketing revenue increased to $ 131.4 million from $ 7.7 million . gross profit margin increased to 28 % from 27 % . net loss improved to $ 29.1 million from $ 84.5 million . net cash provided by operating activities improved to $ 2.1 million from net cash used in operating activities of $ 10.7 million . adjusted ebitda improved to $ 15.0 million from a loss of $ 6.6 million . 36 recent business high lights within our information services segment : leveraging our agile audience engine , we now interact with over 800,000 consumers daily , generating more than 7 million consumer insights per day and 225 million insights monthly . comprehensive database includes holistic views of greater than 95 % of u.s. population , including unique data assets comprising 130 million self-reported consumer profiles up from 120 million , 224 million unique email addresses up from 150 million , across 75 million households , up from 63 million households . increased demand for our targeted acquisition solutions , leveraging our unique ability to build custom audiences in real-time and deliver specific insights that support stronger roi for our customers ' digital marketing executions . idicore continues to expand in the marketplace , landing key customer wins with head-to-head data tests against our competitors , and winning on speed , accuracy and price . added thousands of users currently utilizing idicore in their daily workflow ; these users represent a variety of industries within the risk management space , including financial services , law firms , collections , government and investigative companies . within our performance marketing segment : increased profitability resulting from the maturing of strategic growth verticals , mobile apps and career & education , optimization of media spend , and activation of new media channels utilizing our rapidly growing first-party data asset . powered by our agile audience engine 's targeting capabilities , mobile apps generated revenue of $ 7.1 million in the fourth quarter 2016 , a greater than 50 % increase over third quarter 2016. career & education vertical , focused on the โ gig economy โ and providing performance marketing and recruitment solutions to some of the world 's fastest growing brands in ride sharing , food and beverage delivery and home and personal care , grew revenue to $ 3.3 million in the fourth quarter 2016 , a greater than 25 % increase over third quarter 2016. increased activity on emerging mediums , delivering strong results for our clients by activating our data on new channels , including social , search and programmatic , email , push notifications , sms and call-based platforms . successful launch of our new pay per call ad format , receiving positive customer feedback and indication of adoption across a range of verticals . use and reconciliation of non-gaap financial measures management evaluates the financial performance of our business on a variety of key indicators , including adjusted ebitda . adjusted ebitda is a non-gaap financial measure equal to net loss , the most directly comparable financial measure based on us gaap , adding back net loss from discontinued operations , interest expense , income tax benefit , depreciation and amortization , share-based payments , and other adjustments , as noted in the tables below . replace_table_token_6_th 37 replace_table_token_7_th we present adjusted ebitda as a supplemental measure of our operating performance because we believe it provides useful information to our investors as it eliminates the impact of certain items that we do not consider indicative of our cash operations and ongoing operating performance . in addition , we use it as an integral part of our internal reporting to measure the performance of our reportable segments , evaluate the performance of our senior management and measure the operating strength of our business . adjusted ebitda is a measure frequently used by securities analysts , investors and
| cash flows used in investing activities . net cash used in investing activities for the year ended december 31 , 2016 was $ 12.0 million , which was mainly due to an aggregate of $ 10.2 million of software developed for internal use and capitalized litigation costs . net cash used in investing activities for the year ended december 31 , 2015 of $ 93.8 million was mainly due to the cash paid for the fluent acquisition of $ 93.3 million and an aggregate of $ 3.1 million of software developed for internal use and capitalized litigation costs , which were offset by the cash proceeds of $ 3.6 million as a result of the reverse acquisition of tiger media on march 21 , 2015. cash flows provided by financing activities . net cash provided by financing activities for the year ended december 31 , 2016 was $ 6.6 million , which was mainly due to the net proceeds from the registered direct offerings of $ 10.1 million , which was offset by the repayments of long-term debt of $ 2.3 million . net cash provided by financing activities for the year ended december 31 , 2015 of $ 111.9 million was the result of the following financing arrangements : ( 1 ) a registered direct offering of $ 10.0 million to an institutional investor in july 2015 ; ( 2 ) sales of series b preferred shares ( โ series b preferred โ ) and warrants to certain investors , including frost gamma investment trust , for an aggregate of $ 50.0 million in november 2015 ; ( 3 ) the term loan of $ 45.0 million 41 from three financial institutions p ursuant to a credit agreement on december 8 , 2015 ; and ( 4 ) an aggregate of $ 10.0 million promissory notes from certain investors in december 2015. as of december 31 , 2016 , the company had non-cancellable operating lease commitments of $ 3.7 million , and material commitments under non-cancellable data licensing agreements of $ 16.7 million .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows used in investing activities . net cash used in investing activities for the year ended december 31 , 2016 was $ 12.0 million , which was mainly due to an aggregate of $ 10.2 million of software developed for internal use and capitalized litigation costs . net cash used in investing activities for the year ended december 31 , 2015 of $ 93.8 million was mainly due to the cash paid for the fluent acquisition of $ 93.3 million and an aggregate of $ 3.1 million of software developed for internal use and capitalized litigation costs , which were offset by the cash proceeds of $ 3.6 million as a result of the reverse acquisition of tiger media on march 21 , 2015. cash flows provided by financing activities . net cash provided by financing activities for the year ended december 31 , 2016 was $ 6.6 million , which was mainly due to the net proceeds from the registered direct offerings of $ 10.1 million , which was offset by the repayments of long-term debt of $ 2.3 million . net cash provided by financing activities for the year ended december 31 , 2015 of $ 111.9 million was the result of the following financing arrangements : ( 1 ) a registered direct offering of $ 10.0 million to an institutional investor in july 2015 ; ( 2 ) sales of series b preferred shares ( โ series b preferred โ ) and warrants to certain investors , including frost gamma investment trust , for an aggregate of $ 50.0 million in november 2015 ; ( 3 ) the term loan of $ 45.0 million 41 from three financial institutions p ursuant to a credit agreement on december 8 , 2015 ; and ( 4 ) an aggregate of $ 10.0 million promissory notes from certain investors in december 2015. as of december 31 , 2016 , the company had non-cancellable operating lease commitments of $ 3.7 million , and material commitments under non-cancellable data licensing agreements of $ 16.7 million .
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Suspicious Activity Report : the company operates through two reportable segments : ( i ) information services and ( ii ) performance marketing . for additional information relating to our segments , see note 16 , โ segment information , โ in our notes to consolidated financial statements . information services โleveraging leading-edge technology , proprietary algorithms , and massive datasets , and through intuitive and powerful analytical applications , we provide solutions to organizations within the risk management and consumer marketing industries . core is our next generation data fusion platform , providing mission-critical information about individuals , businesses and assets to a variety of markets and industries . through machine learning and advanced analytics , our information services segment uses the power of data fusion to ingest and analyze data at a massive scale . the derived information from the data fusion process ultimately serves to generate unique solutions for banking and financial services companies , insurance companies , healthcare companies , law enforcement and government , the collection industry , law firms , retail , telecommunications companies , corporate security and investigative firms . in addition , our data acquisition solutions enable clients to rapidly grow their customer databases by using self-declared consumer insights to identify , connect with , and acquire first-party consumer data and multi-channel marketing consent at massive scale . built in a secure payment card industry ( pci ) compliant environment , our cloud-based next generation technology delivers greater than four 9s of service uptime . by leveraging our proprietary infrastructure design within the cloud , we currently operate in six datacenters spread geographically across the u.s. and are able to dynamically and seamlessly scale as needed . using our intelligent 31 framework and leveraging a micro services architecture where appropriate , we reduce operational cost and complexity , thus delivering sup erior performance at greatly reduced costs compared to traditional datacenter architectures . since the release of our core platform in may 2016 , we have added billions of data records and continue to add approximately over a billion records per month on av erage . our average query response time for a comprehensive profile is less than 250 milliseconds versus competitive platforms that measure comprehensive profile response times in seconds . performance marketing โour agile audience engine drives our performance marketing segment , which provides solutions to help brands , advertisers and marketers find the right customers in every major business-to-consumer ( b2c ) vertical , including internet and telecommunications , financial services , health and wellness , consumer packaged goods , careers and education , and retail and entertainment . we deterministically target consumers across various marketing channels and devices , through the user- supplied acquisition of personally identifiable information on behalf of our clients , such as email addresses , other identifying information and responses to dynamically-populated survey questions . additionally , 80 % of our consumer interaction comes from mobile , a highly-differentiated characteristic compared to our competitors whose platforms are not mobile-first . we own hundreds of media properties , through which we engage millions of consumers everyday with interactive content , such as job postings , cost savings , surveys , promotions and sweepstakes that generate over 800,000 registrations and over 7.5 million compiled survey responses a day . our owned media properties alone have created a database of approximately 130 million u.s. adults with detailed profiles , including 224 million unique email addresses , across over 75 million households . with meaningful , people-based interaction that focuses on consumer behavior and declared first-party data , leveraged on a mobile-centric platform that provides seamless omni-channel capabilities , we have the ability to target and develop comprehensive consumer profiles that redefine the way advertisers view their most valuable customers . previously , we provided advertising services in the out-of-home advertising industry in china under the name tiger media , inc. ( โ tiger media โ ) . on march 21 , 2015 , tiger media completed the acquisition of the best one , inc. ( โ tbo โ ) . in the transaction , tbo became a wholly owned subsidiary of tiger media , with tbo changing its name to idi holdings , llc and tiger media changing its name to idi , inc , now known as cogint , inc. tbo was a holding company engaged in the acquisition of operating businesses and the acquisition and development of technology assets across various industries . previously , on october 2 , 2014 , tbo acquired 100 % of the membership interests of interactive data , llc ( โ interactive data โ ) . historically , interactive data provided data solutions and services to the accounts receivable management industry , consisting primarily of collection agencies , collection law firms , and debt buyers , for location and identity verification , legislative compliance and debt recovery . interactive data now serves the entirety of the risk management industry . through leading-edge , proprietary technology , advanced systems architecture , and a massive data repository , interactive data addresses the rapidly growing need for actionable intelligence . on december 9 , 2015 , we completed the acquisition of fluent , llc ( โ fluent โ ) with certain transactions effective december 8 , 2015 ( the โ fluent acquisition โ ) . fluent , founded in 2010 , is a leader in people-based digital marketing and customer acquisition , serving over 500 leading consumer brands and direct marketers . fluent 's proprietary audience data and robust ad-serving technology enables marketers to acquire their best customers , with precision , at a massive scale . leveraging compelling content , unique first-party data assets , and real-time survey interaction with customers , fluent has helped marketers acquire millions of new prospective customers since its inception . story_separator_special_tag as a result , compensation expense recorded in the period that achievement is deemed probable could include a substantial amount of previously unrecorded compensation expense related to the prior periods . if ultimat ely performance goals are not met , for any share-based awards where vesting was previously deemed probable , previously recognized compensation cost will be reversed . recently issued accounting standards see item 8 of part ii , โ financial statements and supplementary data โ note 2. summary of significant accounting policies - ( t ) recently issued accounting standards . โ fourth quarter financial highlights for the three months ended december 31 , 2016 , as compared to the three months ended december 31 , 2015 : total revenue increased to $ 54.2 million from $ 10.8 million . information service revenue increased to $ 16.2 million from $ 3.1 million . performance marketing revenue increased to $ 38.0 million from $ 7.7 million . gross profit margin increased to 33 % from 21 % . net loss improved to $ 5.4 million from a net loss of $ 32.6 million . adjusted ebitda improved to $ 6.3 million from a loss of $ 2.3 million . for the three months ended december 31 , 2016 , as compared to the three months ended september 30 , 2016 : total revenue increased to $ 54.2 million from $ 52.2 million . information service revenue increased to $ 16.2 million from $ 14.8 million . performance marketing revenue increased to $ 38.0 million from $ 37.4 million . gross profit margin increased to 33 % from 24 % . net loss improved to $ 5.4 million from a net loss of $ 9.7 million . adjusted ebitda increased to $ 6.3 million from $ 3.2 million . full year financial highlights for the year ended december 31 , 2016 , as compared to the year ended december 31 , 2015 : total revenue increased to $ 186.8 million from $ 14.1 million . information service revenue increased to $ 55.4 million from $ 6.4 million . performance marketing revenue increased to $ 131.4 million from $ 7.7 million . gross profit margin increased to 28 % from 27 % . net loss improved to $ 29.1 million from $ 84.5 million . net cash provided by operating activities improved to $ 2.1 million from net cash used in operating activities of $ 10.7 million . adjusted ebitda improved to $ 15.0 million from a loss of $ 6.6 million . 36 recent business high lights within our information services segment : leveraging our agile audience engine , we now interact with over 800,000 consumers daily , generating more than 7 million consumer insights per day and 225 million insights monthly . comprehensive database includes holistic views of greater than 95 % of u.s. population , including unique data assets comprising 130 million self-reported consumer profiles up from 120 million , 224 million unique email addresses up from 150 million , across 75 million households , up from 63 million households . increased demand for our targeted acquisition solutions , leveraging our unique ability to build custom audiences in real-time and deliver specific insights that support stronger roi for our customers ' digital marketing executions . idicore continues to expand in the marketplace , landing key customer wins with head-to-head data tests against our competitors , and winning on speed , accuracy and price . added thousands of users currently utilizing idicore in their daily workflow ; these users represent a variety of industries within the risk management space , including financial services , law firms , collections , government and investigative companies . within our performance marketing segment : increased profitability resulting from the maturing of strategic growth verticals , mobile apps and career & education , optimization of media spend , and activation of new media channels utilizing our rapidly growing first-party data asset . powered by our agile audience engine 's targeting capabilities , mobile apps generated revenue of $ 7.1 million in the fourth quarter 2016 , a greater than 50 % increase over third quarter 2016. career & education vertical , focused on the โ gig economy โ and providing performance marketing and recruitment solutions to some of the world 's fastest growing brands in ride sharing , food and beverage delivery and home and personal care , grew revenue to $ 3.3 million in the fourth quarter 2016 , a greater than 25 % increase over third quarter 2016. increased activity on emerging mediums , delivering strong results for our clients by activating our data on new channels , including social , search and programmatic , email , push notifications , sms and call-based platforms . successful launch of our new pay per call ad format , receiving positive customer feedback and indication of adoption across a range of verticals . use and reconciliation of non-gaap financial measures management evaluates the financial performance of our business on a variety of key indicators , including adjusted ebitda . adjusted ebitda is a non-gaap financial measure equal to net loss , the most directly comparable financial measure based on us gaap , adding back net loss from discontinued operations , interest expense , income tax benefit , depreciation and amortization , share-based payments , and other adjustments , as noted in the tables below . replace_table_token_6_th 37 replace_table_token_7_th we present adjusted ebitda as a supplemental measure of our operating performance because we believe it provides useful information to our investors as it eliminates the impact of certain items that we do not consider indicative of our cash operations and ongoing operating performance . in addition , we use it as an integral part of our internal reporting to measure the performance of our reportable segments , evaluate the performance of our senior management and measure the operating strength of our business . adjusted ebitda is a measure frequently used by securities analysts , investors and
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2,525 | vicon 's products include browser-based video monitoring systems and facial recognition systems , cameras , servers , and access control systems for every aspect of security and surveillance in industrial and commercial facilities , federal prisons , hospitals , universities , schools , and federal and state government offices . industrial services ( is ) cemtrex 's is segment , offers single-source expertise and services for rigging , millwrighting , in plant maintenance , equipment erection , relocation , and disassembly to diversified customers . we install high precision equipment in a wide variety of industrial markets like automotive , printing & graphics , industrial automation , packaging , and chemicals among others . we are a leading provider of reliability-driven maintenance and contracting solutions for the machinery , packaging , printing , chemical , and other manufacturing markets . the focus is on customers seeking to achieve greater asset utilization and reliability to cut costs and increase production from existing assets , including small projects , sustaining capital , turnarounds , maintenance , specialty welding services , and high-quality scaffolding . significant accounting policies and estimates the following discussion and analysis is based upon our consolidated financial statements which have been prepared in accordance with accounting principles generally accepted in the united states of america . the preparation of our financial statements requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses , and assets and liabilities during the periods reported . estimates are used when accounting for certain items such as revenues , allowances for returns , early payment discounts , customer discounts , doubtful accounts , employee compensation programs , depreciation and amortization periods , taxes , inventory values , and valuations of investments , goodwill , other intangible assets and long-lived assets . we base our estimates on historical experience , where applicable and other assumptions that we believe are reasonable under the circumstances . actual results may differ from our estimates under different assumptions or conditions . 15 please see note 2 for detailed information regarding our significant accounting policies and estimates in the notes to consolidated financial statements in this 2019 form 10-k. results of operations - for the fiscal years ending september 30 , 2019 and 2018 total revenue for the years ended september 30 , 2019 and 2018 was $ 39,265,041 and $ 22,641,417 , respectively , an increase of $ 16,623,624 , or 73 % . comprehensive net loss for the years ended september 30 , 2019 and 2018 was a $ 23,051,140 and $ 10,476,294 , respectively , an increase of $ 12,574,846 or 120 % . total revenue for the fiscal year increased , as compared to total revenue in the same period last year , due to the consolidation of vicon industries , inc. , sales and other increases in the advanced technology segment . net loss increased due to losses recorded on the sale of discontinued operations of the electronics manufacturing segment and our environmental products lines . for the year ended september 30 , 2019 the company had a loss of $ 10,559,963 on discontinued operations and for the year ended september 30 , 2018 , the company had a gain of $ 1,786,737 on discontinued operations . revenues our advanced technologies segment revenues for the years ended september 30 , 2019 and 2018 were $ 19,268,687 and $ 1,765,106 , respectively , an increase of $ 17,503,581 or 992 % . this increase represents mainly the consolidation of vicon industries , inc. our industrial services segment revenues for the year ended september 30 , 2019 decreased by $ 879,957 or 4 % , to $ 19,996,354 from $ 20,876,311 for the year ended september 30 , 2018. the decrease was primarily due to the timing and recognition of revenue . gross profit gross profit for the year ended september 30 , 2019 was $ 15,562,674 or 40 % of revenues as compared to gross profit of $ 8,215,954 or 36 % of revenues for the year ended september 30 , 2018. the increase in gross profit percentage in the year ended september 30 , 2018 , as compared to the prior year , was a direct result of the sale of products and services with higher profit margins . general and administrative expenses general and administrative expenses for the year ended september 30 , 2019 increased $ 6,320,565 or 41 % to $ 21,528,145 from $ 15,207,580 for the year ended september 30 , 2018. the increases in general and administrative expenses in dollars is the result of the consolidation of vicon industries , inc. research and development expenses research and development expenses for the year ended september 30 , 2019 and 2018 were $ 1,481,879 and $ 5,558,682 , respectively . research and development expenses have decreased due to the limited capital resources of the company . other income/ ( expense ) interest and other income/ ( expense ) for fiscal 2019 was $ ( 5,190,987 ) as compared to $ ( 1,338,510 ) for fiscal 2018. for fiscal year 2019 other income/ ( expense ) was due was primarily due to interest on notes payable . provision for income taxes during the fiscal year of 2019 we recorded an income tax benefit of $ 1,335,584 compared to $ 2,861,672 for the fiscal year of 2018. the provision for income tax is based upon the projected income tax from the company 's various domestic and international subsidiaries that are subject to income taxes . 16 net income/ ( loss ) the company had a net loss of $ 21,862,716 or 56 % of revenues , for the year ended september 30 , 2019 as compared to a net loss of $ 9,240,409 or 41 % of revenues , for the year ended september 30 , 2018. net loss in this period as compared to the previous period was higher due to the discontinued operations of the environmental products story_separator_special_tag vicon 's products include browser-based video monitoring systems and facial recognition systems , cameras , servers , and access control systems for every aspect of security and surveillance in industrial and commercial facilities , federal prisons , hospitals , universities , schools , and federal and state government offices . industrial services ( is ) cemtrex 's is segment , offers single-source expertise and services for rigging , millwrighting , in plant maintenance , equipment erection , relocation , and disassembly to diversified customers . we install high precision equipment in a wide variety of industrial markets like automotive , printing & graphics , industrial automation , packaging , and chemicals among others . we are a leading provider of reliability-driven maintenance and contracting solutions for the machinery , packaging , printing , chemical , and other manufacturing markets . the focus is on customers seeking to achieve greater asset utilization and reliability to cut costs and increase production from existing assets , including small projects , sustaining capital , turnarounds , maintenance , specialty welding services , and high-quality scaffolding . significant accounting policies and estimates the following discussion and analysis is based upon our consolidated financial statements which have been prepared in accordance with accounting principles generally accepted in the united states of america . the preparation of our financial statements requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses , and assets and liabilities during the periods reported . estimates are used when accounting for certain items such as revenues , allowances for returns , early payment discounts , customer discounts , doubtful accounts , employee compensation programs , depreciation and amortization periods , taxes , inventory values , and valuations of investments , goodwill , other intangible assets and long-lived assets . we base our estimates on historical experience , where applicable and other assumptions that we believe are reasonable under the circumstances . actual results may differ from our estimates under different assumptions or conditions . 15 please see note 2 for detailed information regarding our significant accounting policies and estimates in the notes to consolidated financial statements in this 2019 form 10-k. results of operations - for the fiscal years ending september 30 , 2019 and 2018 total revenue for the years ended september 30 , 2019 and 2018 was $ 39,265,041 and $ 22,641,417 , respectively , an increase of $ 16,623,624 , or 73 % . comprehensive net loss for the years ended september 30 , 2019 and 2018 was a $ 23,051,140 and $ 10,476,294 , respectively , an increase of $ 12,574,846 or 120 % . total revenue for the fiscal year increased , as compared to total revenue in the same period last year , due to the consolidation of vicon industries , inc. , sales and other increases in the advanced technology segment . net loss increased due to losses recorded on the sale of discontinued operations of the electronics manufacturing segment and our environmental products lines . for the year ended september 30 , 2019 the company had a loss of $ 10,559,963 on discontinued operations and for the year ended september 30 , 2018 , the company had a gain of $ 1,786,737 on discontinued operations . revenues our advanced technologies segment revenues for the years ended september 30 , 2019 and 2018 were $ 19,268,687 and $ 1,765,106 , respectively , an increase of $ 17,503,581 or 992 % . this increase represents mainly the consolidation of vicon industries , inc. our industrial services segment revenues for the year ended september 30 , 2019 decreased by $ 879,957 or 4 % , to $ 19,996,354 from $ 20,876,311 for the year ended september 30 , 2018. the decrease was primarily due to the timing and recognition of revenue . gross profit gross profit for the year ended september 30 , 2019 was $ 15,562,674 or 40 % of revenues as compared to gross profit of $ 8,215,954 or 36 % of revenues for the year ended september 30 , 2018. the increase in gross profit percentage in the year ended september 30 , 2018 , as compared to the prior year , was a direct result of the sale of products and services with higher profit margins . general and administrative expenses general and administrative expenses for the year ended september 30 , 2019 increased $ 6,320,565 or 41 % to $ 21,528,145 from $ 15,207,580 for the year ended september 30 , 2018. the increases in general and administrative expenses in dollars is the result of the consolidation of vicon industries , inc. research and development expenses research and development expenses for the year ended september 30 , 2019 and 2018 were $ 1,481,879 and $ 5,558,682 , respectively . research and development expenses have decreased due to the limited capital resources of the company . other income/ ( expense ) interest and other income/ ( expense ) for fiscal 2019 was $ ( 5,190,987 ) as compared to $ ( 1,338,510 ) for fiscal 2018. for fiscal year 2019 other income/ ( expense ) was due was primarily due to interest on notes payable . provision for income taxes during the fiscal year of 2019 we recorded an income tax benefit of $ 1,335,584 compared to $ 2,861,672 for the fiscal year of 2018. the provision for income tax is based upon the projected income tax from the company 's various domestic and international subsidiaries that are subject to income taxes . 16 net income/ ( loss ) the company had a net loss of $ 21,862,716 or 56 % of revenues , for the year ended september 30 , 2019 as compared to a net loss of $ 9,240,409 or 41 % of revenues , for the year ended september 30 , 2018. net loss in this period as compared to the previous period was higher due to the discontinued operations of the environmental products
| liquidity and capital resources working capital was $ 3,240,348 at september 30 , 2019 compared to $ 10,011,896 at september 30 , 2018. this includes cash and cash equivalents and restricted cash of $ 2,858,085 at september 30 , 2019 and $ 2,315,935 at september 30 , 2018 , respectively . the decrease in working capital was primarily due to the decrease in the company 's current assets of $ 13,036,655 offset by a decrease in the company 's current liabilities of $ 6,265,107 . accounts receivable decreased by $ 7,486,671 or 54 % to $ 6,458,984 at september 30 , 2019 from $ 13,945,655 at september 30 , 2018. the decrease in accounts receivable is mainly due to the company 's exit from the environmental products business and the elimination of its electronics manufacturing segment . inventories decreased by $ 6,147,303 or 54 % to $ 5,207,155 at september 30 , 2019 from $ 11,354,458 at september 30 , 2018. the decrease in inventories is attributable to the company 's exit from the environmental products business and electronics manufacturing segment . operating activities for continuing operations used $ 3,751,616 for the year ended september 30 , 2019 compared to using $ 13,005,012 of cash for the year ended september 30 , 2018. operating activities for discontinued operations provided $ 7,507,090 , and $ 10,523,481 of cash for the year ended september 30 , 2019 and 2018 , respectively .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources working capital was $ 3,240,348 at september 30 , 2019 compared to $ 10,011,896 at september 30 , 2018. this includes cash and cash equivalents and restricted cash of $ 2,858,085 at september 30 , 2019 and $ 2,315,935 at september 30 , 2018 , respectively . the decrease in working capital was primarily due to the decrease in the company 's current assets of $ 13,036,655 offset by a decrease in the company 's current liabilities of $ 6,265,107 . accounts receivable decreased by $ 7,486,671 or 54 % to $ 6,458,984 at september 30 , 2019 from $ 13,945,655 at september 30 , 2018. the decrease in accounts receivable is mainly due to the company 's exit from the environmental products business and the elimination of its electronics manufacturing segment . inventories decreased by $ 6,147,303 or 54 % to $ 5,207,155 at september 30 , 2019 from $ 11,354,458 at september 30 , 2018. the decrease in inventories is attributable to the company 's exit from the environmental products business and electronics manufacturing segment . operating activities for continuing operations used $ 3,751,616 for the year ended september 30 , 2019 compared to using $ 13,005,012 of cash for the year ended september 30 , 2018. operating activities for discontinued operations provided $ 7,507,090 , and $ 10,523,481 of cash for the year ended september 30 , 2019 and 2018 , respectively .
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Suspicious Activity Report : vicon 's products include browser-based video monitoring systems and facial recognition systems , cameras , servers , and access control systems for every aspect of security and surveillance in industrial and commercial facilities , federal prisons , hospitals , universities , schools , and federal and state government offices . industrial services ( is ) cemtrex 's is segment , offers single-source expertise and services for rigging , millwrighting , in plant maintenance , equipment erection , relocation , and disassembly to diversified customers . we install high precision equipment in a wide variety of industrial markets like automotive , printing & graphics , industrial automation , packaging , and chemicals among others . we are a leading provider of reliability-driven maintenance and contracting solutions for the machinery , packaging , printing , chemical , and other manufacturing markets . the focus is on customers seeking to achieve greater asset utilization and reliability to cut costs and increase production from existing assets , including small projects , sustaining capital , turnarounds , maintenance , specialty welding services , and high-quality scaffolding . significant accounting policies and estimates the following discussion and analysis is based upon our consolidated financial statements which have been prepared in accordance with accounting principles generally accepted in the united states of america . the preparation of our financial statements requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses , and assets and liabilities during the periods reported . estimates are used when accounting for certain items such as revenues , allowances for returns , early payment discounts , customer discounts , doubtful accounts , employee compensation programs , depreciation and amortization periods , taxes , inventory values , and valuations of investments , goodwill , other intangible assets and long-lived assets . we base our estimates on historical experience , where applicable and other assumptions that we believe are reasonable under the circumstances . actual results may differ from our estimates under different assumptions or conditions . 15 please see note 2 for detailed information regarding our significant accounting policies and estimates in the notes to consolidated financial statements in this 2019 form 10-k. results of operations - for the fiscal years ending september 30 , 2019 and 2018 total revenue for the years ended september 30 , 2019 and 2018 was $ 39,265,041 and $ 22,641,417 , respectively , an increase of $ 16,623,624 , or 73 % . comprehensive net loss for the years ended september 30 , 2019 and 2018 was a $ 23,051,140 and $ 10,476,294 , respectively , an increase of $ 12,574,846 or 120 % . total revenue for the fiscal year increased , as compared to total revenue in the same period last year , due to the consolidation of vicon industries , inc. , sales and other increases in the advanced technology segment . net loss increased due to losses recorded on the sale of discontinued operations of the electronics manufacturing segment and our environmental products lines . for the year ended september 30 , 2019 the company had a loss of $ 10,559,963 on discontinued operations and for the year ended september 30 , 2018 , the company had a gain of $ 1,786,737 on discontinued operations . revenues our advanced technologies segment revenues for the years ended september 30 , 2019 and 2018 were $ 19,268,687 and $ 1,765,106 , respectively , an increase of $ 17,503,581 or 992 % . this increase represents mainly the consolidation of vicon industries , inc. our industrial services segment revenues for the year ended september 30 , 2019 decreased by $ 879,957 or 4 % , to $ 19,996,354 from $ 20,876,311 for the year ended september 30 , 2018. the decrease was primarily due to the timing and recognition of revenue . gross profit gross profit for the year ended september 30 , 2019 was $ 15,562,674 or 40 % of revenues as compared to gross profit of $ 8,215,954 or 36 % of revenues for the year ended september 30 , 2018. the increase in gross profit percentage in the year ended september 30 , 2018 , as compared to the prior year , was a direct result of the sale of products and services with higher profit margins . general and administrative expenses general and administrative expenses for the year ended september 30 , 2019 increased $ 6,320,565 or 41 % to $ 21,528,145 from $ 15,207,580 for the year ended september 30 , 2018. the increases in general and administrative expenses in dollars is the result of the consolidation of vicon industries , inc. research and development expenses research and development expenses for the year ended september 30 , 2019 and 2018 were $ 1,481,879 and $ 5,558,682 , respectively . research and development expenses have decreased due to the limited capital resources of the company . other income/ ( expense ) interest and other income/ ( expense ) for fiscal 2019 was $ ( 5,190,987 ) as compared to $ ( 1,338,510 ) for fiscal 2018. for fiscal year 2019 other income/ ( expense ) was due was primarily due to interest on notes payable . provision for income taxes during the fiscal year of 2019 we recorded an income tax benefit of $ 1,335,584 compared to $ 2,861,672 for the fiscal year of 2018. the provision for income tax is based upon the projected income tax from the company 's various domestic and international subsidiaries that are subject to income taxes . 16 net income/ ( loss ) the company had a net loss of $ 21,862,716 or 56 % of revenues , for the year ended september 30 , 2019 as compared to a net loss of $ 9,240,409 or 41 % of revenues , for the year ended september 30 , 2018. net loss in this period as compared to the previous period was higher due to the discontinued operations of the environmental products story_separator_special_tag vicon 's products include browser-based video monitoring systems and facial recognition systems , cameras , servers , and access control systems for every aspect of security and surveillance in industrial and commercial facilities , federal prisons , hospitals , universities , schools , and federal and state government offices . industrial services ( is ) cemtrex 's is segment , offers single-source expertise and services for rigging , millwrighting , in plant maintenance , equipment erection , relocation , and disassembly to diversified customers . we install high precision equipment in a wide variety of industrial markets like automotive , printing & graphics , industrial automation , packaging , and chemicals among others . we are a leading provider of reliability-driven maintenance and contracting solutions for the machinery , packaging , printing , chemical , and other manufacturing markets . the focus is on customers seeking to achieve greater asset utilization and reliability to cut costs and increase production from existing assets , including small projects , sustaining capital , turnarounds , maintenance , specialty welding services , and high-quality scaffolding . significant accounting policies and estimates the following discussion and analysis is based upon our consolidated financial statements which have been prepared in accordance with accounting principles generally accepted in the united states of america . the preparation of our financial statements requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses , and assets and liabilities during the periods reported . estimates are used when accounting for certain items such as revenues , allowances for returns , early payment discounts , customer discounts , doubtful accounts , employee compensation programs , depreciation and amortization periods , taxes , inventory values , and valuations of investments , goodwill , other intangible assets and long-lived assets . we base our estimates on historical experience , where applicable and other assumptions that we believe are reasonable under the circumstances . actual results may differ from our estimates under different assumptions or conditions . 15 please see note 2 for detailed information regarding our significant accounting policies and estimates in the notes to consolidated financial statements in this 2019 form 10-k. results of operations - for the fiscal years ending september 30 , 2019 and 2018 total revenue for the years ended september 30 , 2019 and 2018 was $ 39,265,041 and $ 22,641,417 , respectively , an increase of $ 16,623,624 , or 73 % . comprehensive net loss for the years ended september 30 , 2019 and 2018 was a $ 23,051,140 and $ 10,476,294 , respectively , an increase of $ 12,574,846 or 120 % . total revenue for the fiscal year increased , as compared to total revenue in the same period last year , due to the consolidation of vicon industries , inc. , sales and other increases in the advanced technology segment . net loss increased due to losses recorded on the sale of discontinued operations of the electronics manufacturing segment and our environmental products lines . for the year ended september 30 , 2019 the company had a loss of $ 10,559,963 on discontinued operations and for the year ended september 30 , 2018 , the company had a gain of $ 1,786,737 on discontinued operations . revenues our advanced technologies segment revenues for the years ended september 30 , 2019 and 2018 were $ 19,268,687 and $ 1,765,106 , respectively , an increase of $ 17,503,581 or 992 % . this increase represents mainly the consolidation of vicon industries , inc. our industrial services segment revenues for the year ended september 30 , 2019 decreased by $ 879,957 or 4 % , to $ 19,996,354 from $ 20,876,311 for the year ended september 30 , 2018. the decrease was primarily due to the timing and recognition of revenue . gross profit gross profit for the year ended september 30 , 2019 was $ 15,562,674 or 40 % of revenues as compared to gross profit of $ 8,215,954 or 36 % of revenues for the year ended september 30 , 2018. the increase in gross profit percentage in the year ended september 30 , 2018 , as compared to the prior year , was a direct result of the sale of products and services with higher profit margins . general and administrative expenses general and administrative expenses for the year ended september 30 , 2019 increased $ 6,320,565 or 41 % to $ 21,528,145 from $ 15,207,580 for the year ended september 30 , 2018. the increases in general and administrative expenses in dollars is the result of the consolidation of vicon industries , inc. research and development expenses research and development expenses for the year ended september 30 , 2019 and 2018 were $ 1,481,879 and $ 5,558,682 , respectively . research and development expenses have decreased due to the limited capital resources of the company . other income/ ( expense ) interest and other income/ ( expense ) for fiscal 2019 was $ ( 5,190,987 ) as compared to $ ( 1,338,510 ) for fiscal 2018. for fiscal year 2019 other income/ ( expense ) was due was primarily due to interest on notes payable . provision for income taxes during the fiscal year of 2019 we recorded an income tax benefit of $ 1,335,584 compared to $ 2,861,672 for the fiscal year of 2018. the provision for income tax is based upon the projected income tax from the company 's various domestic and international subsidiaries that are subject to income taxes . 16 net income/ ( loss ) the company had a net loss of $ 21,862,716 or 56 % of revenues , for the year ended september 30 , 2019 as compared to a net loss of $ 9,240,409 or 41 % of revenues , for the year ended september 30 , 2018. net loss in this period as compared to the previous period was higher due to the discontinued operations of the environmental products
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2,526 | the fda granted breakthrough therapy designation for bentracimab in april 2019. the european medicines agency , or the ema , granted bentracimab priority medicines , or prime , designation in february 2020. based on feedback from the fda , we intend to submit a biologics license application , or bla , for potential accelerated approval based on an interim analysis of the first approximately 100 patients treated in our reverse-it trial , targeting that approximately one half of patients enrolled have uncontrolled major or life-threatening bleeding and approximately one half require urgent surgery or an invasive procedure . after we submit our bla with data from the first 100 patients , we intend to complete the reverse-it trial and establish a post-approval registry in accordance with fda requirements . the committee for medicinal products for human use , or chmp , of the ema has also generally agreed with our proposed clinical development plan for bentracimab . we have enrolled more than half of the first approximately 100 patients needed to support our bla submission , nearly all of whom to date have required urgent surgery or an invasive procedure . we are attempting to accelerate enrollment of patients with uncontrolled major or life-threatening bleeding , including by working to increase the number of enrolling clinical trial sites in the united states , canada , and the european union as we believe that a broader site footprint will increase the probability of enrolling these patients . all of the first approximately 100 patients enrolled in the reverse-it trial will be measured against the same verifynow prutest biomarker described above . we expect to complete enrollment of the first 100 patients in the reverse-it trial in mid-2021 , and are targeting to submit our bla for bentracimab in mid-2022 , although those timelines could be impacted by the continued scope and duration of the covid-19 pandemic . we have a limited operating history . since our inception in 2002 , our operations have focused on developing our clinical and preclinical product candidates and our proprietary elp technology , organizing and staffing our company , business planning , raising capital , establishing our intellectual property portfolio and conducting clinical trials and preclinical studies . we do not have any product candidates approved for sale and have not generated any revenue from product sales . since inception , we have financed our operations primarily through the sale of equity and debt securities and our term loans with silicon valley bank , or svb , and westriver innovation lending fund viii , l.p. , or westriver . in april 2019 , we received $ 46.3 million in net proceeds from an underwritten public offering of our common stock . in may 2019 , we received an additional $ 2.5 million under our term loan with svb and westriver , or our 2019 loan , and in october 2019 , we received an additional $ 5.0 million under our 2019 loan . in january 2020 , we entered into the sfj agreement pursuant to which sfj has agreed to provide us up to $ 120.0 million of funding to support the clinical development of bentracimab . as of december 31 , 2020 , sfj has provided funding and paid for amounts on our behalf in the aggregate amount of $ 47.1 million under the sfj agreement . in addition , we expect that sfj will fund or reimburse an additional $ 42.9 million of clinical trial costs and other expenses . sfj will also provide up to an additional $ 30.0 million of funding upon the achievement of specified clinical development milestones with respect to our ongoing reverse-it trial of bentracimab . since our inception , we have incurred significant operating losses . our net loss was $ 98.6 million for the year ended december 31 , 2020. as of december 31 , 2020 , we had an accumulated deficit of $ 260.7 million . we expect to continue to incur significant expenses and operating losses for the foreseeable future . we anticipate that our expenses will increase substantially in connection with our ongoing activities , as we : continue our ongoing clinical trials of bentracimab and pemziviptadil , as well as initiate and complete additional clinical trials , as needed ; 79 seek to expand our geographical reach through the sfj agreement and the corresponding clinical development support fees that we will incur ; pursue regulatory approvals for bentracimab as a reversal agent for the antiplatelet drug ticagrelor and pemziviptadil for the treatment of pah ; develop pb6440 for treatment-resistant hypertension ; seek to discover and develop additional clinical and preclinical product candidates ; scale up our clinical and regulatory capabilities ; establish a commercialization infrastructure and scale up external manufacturing and distribution capabilities to commercialize any product candidates for which we may obtain regulatory approval , including bentracimab and pemziviptadil ; adapt our regulatory compliance efforts to incorporate requirements applicable to marketed products ; maintain , expand and protect our intellectual property portfolio ; hire additional clinical , manufacturing and scientific personnel ; add operational , financial and management information systems and personnel , including personnel to support our product development and possible future commercialization efforts ; and incur additional legal , accounting and other expenses in operating as a public company . recent development in march 2021 , we entered into a supply agreement with biovectra inc. for the manufacture and supply of bulk drug substance for bentracimab for commercial distribution following regulatory approval . under the terms of the supply agreement , biovectra has committed to maintaining capacity to manufacture an agreed number of batches of product per year , although we are free to contract with third parties for the manufacture of bentracimab . refer to `` item 1. business `` under the subheading business - license , co-development and other agreements - biovectra supply agreement in this annual report . story_separator_special_tag we incurred $ 0.1 million in costs under the pb6440 agreement for the year ended december 31 , 2020. biovectra supply agreement in march 2021 , we entered into a supply agreement , or the biovectra agreement , with biovectra inc. , or biovectra , for the manufacture and supply by biovectra of bulk drug substance for bentracimab for commercial distribution following regulatory approval , if obtained . under the terms of the biovectra agreement , biovectra has committed to maintaining capacity to manufacture an agreed number of batches of product each year , and we have committed to purchase a specified minimum number of batches of product per year , or the minimum annual commitment , although we are free to contract with third parties for the manufacture of bentracimab . we will pay a supply price per batch of product to be determined after the manufacturing process for the product is validated in accordance with the biovectra agreement , or validation , plus the cost of certain consumables , raw materials , and third-party testing . pursuant to the minimum annual commitments , we are obligated to purchase a minimum of ( i ) approximately $ 14.0 million of batches of product in years 2022 through 2023 , ( ii ) approximately $ 37.0 million of batches of product in 2024 , and ( iii ) approximately $ 48.0 million of batches of product in each of years 2025 through 2031. in the event we do not purchase the applicable minimum annual commitment in a given year , we will be obligated to make a payment to biovectra in an amount equal to the then-applicable supply price per batch multiplied by the difference between the minimum annual commitment for such year and the number of batches of product we actually purchased in such year , or the minimum shortfall payment , except in the event that biovectra was unable to deliver the number of batches ordered by us in such year . in the event of certain serious or extended failures by biovectra to supply product in the quantities ordered by us in a given year , our minimum annual commitment for such year ( and potentially one or more subsequent years ) will be subject to reduction , and our obligation to make a minimum shortfall payment for such year ( and potentially one or more subsequent years ) will be waived . we will have the right to reduce the minimum annual commitments for the year 2026 and subsequent years by up to a specified maximum percentage per year . further , if we are only able to obtain regulatory approval for products incorporating bentracimab in only one of the u.s. or europe , biovectra and we have agreed to discuss in good faith an amendment to the biovectra agreement to reflect decreased requirements for product and impacts to the supply price to reflect lower volume commitments . results of operations comparison of the years ended december 31 , 2020 and 2019 the following table summarizes our results of operations for the years ended december 31 , 2020 and 2019 ( in thousands ) : replace_table_token_1_th 84 revenue grant revenue was $ 0.3 million for the year ended december 31 , 2020 , compared to $ 1.8 million for the year ended december 31 , 2019. the decrease was due to lower amounts available for grant reimbursement under our government grants during the year ended december 31 , 2020. we have received all $ 2.8 million in funding available under the small business innovation research grants received from the national institutes of health to support the clinical development of pemziviptadil for the treatment of pah . revenue under collaborative agreement was zero for the year ended december 31 , 2020 , compared to $ 0.6 million for the year ended december 31 , 2019. the decrease of $ 0.6 million was related to revenue we received from our agreement with immunoforge , which was entered into in 2019. research and development expense research and development expense was $ 72.1 million for the year ended december 31 , 2020 , compared to $ 30.9 million for the year ended december 31 , 2019. the increase of $ 41.2 million was primarily attributable to increases in clinical and drug production activities related to bentracimab and pemziviptadil , personnel costs due to additional headcount and costs associated with our general research efforts . the following table summarizes our research and development expense by functional area for the years ended december 31 , 2020 and 2019 ( in thousands ) : replace_table_token_2_th the following table summarizes our research and development expense by product candidate for the years ended december 31 , 2020 and 2019 ( in thousands ) : replace_table_token_3_th general and administrative expense general and administrative expense was $ 13.1 million for the year ended december 31 , 2020 , compared to $ 11.2 million for the year ended december 31 , 2019. the increase of $ 1.9 million was primarily attributable to increases in personnel expense due to additional headcount , directors and officers liability insurance and professional services related to consulting and legal services . loss from remeasurement of derivative liability loss from remeasurement of derivative liability was $ 12.5 million for the year ended december 31 , 2020. the liability was initially recorded at the present value of the estimated consideration to be received and the estimated consideration to be paid pursuant to the contractual terms of the sfj agreement , which was determined to have been fair value . the derivative liability was subsequently remeasured at year end as a level 3 derivative . 85 interest income interest income was $ 0.2 million for the year ended december 31 , 2020 , compared to $ 1.6 million for the year ended december 31 , 2019. the decrease of $ 1.3 million was attributable to higher balances of cash and cash equivalents and higher interest rates
| liquidity and capital resources since our inception , we have not generated any revenue from product sales and have incurred net losses and negative cash flows from our operations . we have financed our operations primarily through public offerings of our common stock , private placements of convertible debt and convertible preferred stock and borrowings under our term loans . in future periods we expect sfj to provide up to an additional $ 72.9 million of funding pursuant to the sfj agreement , $ 30.0 million of which we are eligible to receive upon the achievement of specified milestones with respect to our clinical development of bentracimab . as of december 31 , 2020 , we had cash and cash equivalents of $ 28.1 million . in march 2019 , we entered into the 2019 loan with svb and westriver , pursuant to which we could borrow up to $ 15.0 million , issuable in three separate tranches . as of december 31 , 2020 , we had drawn on all three tranches under the 2019 loan in the amounts of $ 7.5 million , $ 2.5 million and $ 5.0 million . in april 2019 , we completed an underwritten public offering of our common stock , which resulted in the issuance and sale of an aggregate of 4,124,475 shares of common stock at a public offering price of $ 12.00 per share , generating net proceeds of $ 46.3 million after deducting underwriting discounts and commissions and other offering costs .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources since our inception , we have not generated any revenue from product sales and have incurred net losses and negative cash flows from our operations . we have financed our operations primarily through public offerings of our common stock , private placements of convertible debt and convertible preferred stock and borrowings under our term loans . in future periods we expect sfj to provide up to an additional $ 72.9 million of funding pursuant to the sfj agreement , $ 30.0 million of which we are eligible to receive upon the achievement of specified milestones with respect to our clinical development of bentracimab . as of december 31 , 2020 , we had cash and cash equivalents of $ 28.1 million . in march 2019 , we entered into the 2019 loan with svb and westriver , pursuant to which we could borrow up to $ 15.0 million , issuable in three separate tranches . as of december 31 , 2020 , we had drawn on all three tranches under the 2019 loan in the amounts of $ 7.5 million , $ 2.5 million and $ 5.0 million . in april 2019 , we completed an underwritten public offering of our common stock , which resulted in the issuance and sale of an aggregate of 4,124,475 shares of common stock at a public offering price of $ 12.00 per share , generating net proceeds of $ 46.3 million after deducting underwriting discounts and commissions and other offering costs .
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Suspicious Activity Report : the fda granted breakthrough therapy designation for bentracimab in april 2019. the european medicines agency , or the ema , granted bentracimab priority medicines , or prime , designation in february 2020. based on feedback from the fda , we intend to submit a biologics license application , or bla , for potential accelerated approval based on an interim analysis of the first approximately 100 patients treated in our reverse-it trial , targeting that approximately one half of patients enrolled have uncontrolled major or life-threatening bleeding and approximately one half require urgent surgery or an invasive procedure . after we submit our bla with data from the first 100 patients , we intend to complete the reverse-it trial and establish a post-approval registry in accordance with fda requirements . the committee for medicinal products for human use , or chmp , of the ema has also generally agreed with our proposed clinical development plan for bentracimab . we have enrolled more than half of the first approximately 100 patients needed to support our bla submission , nearly all of whom to date have required urgent surgery or an invasive procedure . we are attempting to accelerate enrollment of patients with uncontrolled major or life-threatening bleeding , including by working to increase the number of enrolling clinical trial sites in the united states , canada , and the european union as we believe that a broader site footprint will increase the probability of enrolling these patients . all of the first approximately 100 patients enrolled in the reverse-it trial will be measured against the same verifynow prutest biomarker described above . we expect to complete enrollment of the first 100 patients in the reverse-it trial in mid-2021 , and are targeting to submit our bla for bentracimab in mid-2022 , although those timelines could be impacted by the continued scope and duration of the covid-19 pandemic . we have a limited operating history . since our inception in 2002 , our operations have focused on developing our clinical and preclinical product candidates and our proprietary elp technology , organizing and staffing our company , business planning , raising capital , establishing our intellectual property portfolio and conducting clinical trials and preclinical studies . we do not have any product candidates approved for sale and have not generated any revenue from product sales . since inception , we have financed our operations primarily through the sale of equity and debt securities and our term loans with silicon valley bank , or svb , and westriver innovation lending fund viii , l.p. , or westriver . in april 2019 , we received $ 46.3 million in net proceeds from an underwritten public offering of our common stock . in may 2019 , we received an additional $ 2.5 million under our term loan with svb and westriver , or our 2019 loan , and in october 2019 , we received an additional $ 5.0 million under our 2019 loan . in january 2020 , we entered into the sfj agreement pursuant to which sfj has agreed to provide us up to $ 120.0 million of funding to support the clinical development of bentracimab . as of december 31 , 2020 , sfj has provided funding and paid for amounts on our behalf in the aggregate amount of $ 47.1 million under the sfj agreement . in addition , we expect that sfj will fund or reimburse an additional $ 42.9 million of clinical trial costs and other expenses . sfj will also provide up to an additional $ 30.0 million of funding upon the achievement of specified clinical development milestones with respect to our ongoing reverse-it trial of bentracimab . since our inception , we have incurred significant operating losses . our net loss was $ 98.6 million for the year ended december 31 , 2020. as of december 31 , 2020 , we had an accumulated deficit of $ 260.7 million . we expect to continue to incur significant expenses and operating losses for the foreseeable future . we anticipate that our expenses will increase substantially in connection with our ongoing activities , as we : continue our ongoing clinical trials of bentracimab and pemziviptadil , as well as initiate and complete additional clinical trials , as needed ; 79 seek to expand our geographical reach through the sfj agreement and the corresponding clinical development support fees that we will incur ; pursue regulatory approvals for bentracimab as a reversal agent for the antiplatelet drug ticagrelor and pemziviptadil for the treatment of pah ; develop pb6440 for treatment-resistant hypertension ; seek to discover and develop additional clinical and preclinical product candidates ; scale up our clinical and regulatory capabilities ; establish a commercialization infrastructure and scale up external manufacturing and distribution capabilities to commercialize any product candidates for which we may obtain regulatory approval , including bentracimab and pemziviptadil ; adapt our regulatory compliance efforts to incorporate requirements applicable to marketed products ; maintain , expand and protect our intellectual property portfolio ; hire additional clinical , manufacturing and scientific personnel ; add operational , financial and management information systems and personnel , including personnel to support our product development and possible future commercialization efforts ; and incur additional legal , accounting and other expenses in operating as a public company . recent development in march 2021 , we entered into a supply agreement with biovectra inc. for the manufacture and supply of bulk drug substance for bentracimab for commercial distribution following regulatory approval . under the terms of the supply agreement , biovectra has committed to maintaining capacity to manufacture an agreed number of batches of product per year , although we are free to contract with third parties for the manufacture of bentracimab . refer to `` item 1. business `` under the subheading business - license , co-development and other agreements - biovectra supply agreement in this annual report . story_separator_special_tag we incurred $ 0.1 million in costs under the pb6440 agreement for the year ended december 31 , 2020. biovectra supply agreement in march 2021 , we entered into a supply agreement , or the biovectra agreement , with biovectra inc. , or biovectra , for the manufacture and supply by biovectra of bulk drug substance for bentracimab for commercial distribution following regulatory approval , if obtained . under the terms of the biovectra agreement , biovectra has committed to maintaining capacity to manufacture an agreed number of batches of product each year , and we have committed to purchase a specified minimum number of batches of product per year , or the minimum annual commitment , although we are free to contract with third parties for the manufacture of bentracimab . we will pay a supply price per batch of product to be determined after the manufacturing process for the product is validated in accordance with the biovectra agreement , or validation , plus the cost of certain consumables , raw materials , and third-party testing . pursuant to the minimum annual commitments , we are obligated to purchase a minimum of ( i ) approximately $ 14.0 million of batches of product in years 2022 through 2023 , ( ii ) approximately $ 37.0 million of batches of product in 2024 , and ( iii ) approximately $ 48.0 million of batches of product in each of years 2025 through 2031. in the event we do not purchase the applicable minimum annual commitment in a given year , we will be obligated to make a payment to biovectra in an amount equal to the then-applicable supply price per batch multiplied by the difference between the minimum annual commitment for such year and the number of batches of product we actually purchased in such year , or the minimum shortfall payment , except in the event that biovectra was unable to deliver the number of batches ordered by us in such year . in the event of certain serious or extended failures by biovectra to supply product in the quantities ordered by us in a given year , our minimum annual commitment for such year ( and potentially one or more subsequent years ) will be subject to reduction , and our obligation to make a minimum shortfall payment for such year ( and potentially one or more subsequent years ) will be waived . we will have the right to reduce the minimum annual commitments for the year 2026 and subsequent years by up to a specified maximum percentage per year . further , if we are only able to obtain regulatory approval for products incorporating bentracimab in only one of the u.s. or europe , biovectra and we have agreed to discuss in good faith an amendment to the biovectra agreement to reflect decreased requirements for product and impacts to the supply price to reflect lower volume commitments . results of operations comparison of the years ended december 31 , 2020 and 2019 the following table summarizes our results of operations for the years ended december 31 , 2020 and 2019 ( in thousands ) : replace_table_token_1_th 84 revenue grant revenue was $ 0.3 million for the year ended december 31 , 2020 , compared to $ 1.8 million for the year ended december 31 , 2019. the decrease was due to lower amounts available for grant reimbursement under our government grants during the year ended december 31 , 2020. we have received all $ 2.8 million in funding available under the small business innovation research grants received from the national institutes of health to support the clinical development of pemziviptadil for the treatment of pah . revenue under collaborative agreement was zero for the year ended december 31 , 2020 , compared to $ 0.6 million for the year ended december 31 , 2019. the decrease of $ 0.6 million was related to revenue we received from our agreement with immunoforge , which was entered into in 2019. research and development expense research and development expense was $ 72.1 million for the year ended december 31 , 2020 , compared to $ 30.9 million for the year ended december 31 , 2019. the increase of $ 41.2 million was primarily attributable to increases in clinical and drug production activities related to bentracimab and pemziviptadil , personnel costs due to additional headcount and costs associated with our general research efforts . the following table summarizes our research and development expense by functional area for the years ended december 31 , 2020 and 2019 ( in thousands ) : replace_table_token_2_th the following table summarizes our research and development expense by product candidate for the years ended december 31 , 2020 and 2019 ( in thousands ) : replace_table_token_3_th general and administrative expense general and administrative expense was $ 13.1 million for the year ended december 31 , 2020 , compared to $ 11.2 million for the year ended december 31 , 2019. the increase of $ 1.9 million was primarily attributable to increases in personnel expense due to additional headcount , directors and officers liability insurance and professional services related to consulting and legal services . loss from remeasurement of derivative liability loss from remeasurement of derivative liability was $ 12.5 million for the year ended december 31 , 2020. the liability was initially recorded at the present value of the estimated consideration to be received and the estimated consideration to be paid pursuant to the contractual terms of the sfj agreement , which was determined to have been fair value . the derivative liability was subsequently remeasured at year end as a level 3 derivative . 85 interest income interest income was $ 0.2 million for the year ended december 31 , 2020 , compared to $ 1.6 million for the year ended december 31 , 2019. the decrease of $ 1.3 million was attributable to higher balances of cash and cash equivalents and higher interest rates
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2,527 | we expect that our expenses and capital requirements will increase substantially in connection with our ongoing activities , particularly if and as we : ๏ท conduct clinical trials for our product candidates ; ๏ท further develop our red platform ; ๏ท continue to discover and develop additional product candidates ; ๏ท maintain , expand and protect our intellectual property portfolio ; 131 ๏ท hire additional clinical , scientific manufacturing and commercial personnel ; ๏ท expand in-house manufacturing capabilities , including through the renovation , customization and operation of our recently purchased manufacturing facility ; ๏ท establish a commercial manufacturing source and secure supply chain capacity sufficient to provide commercial quantities of any product candidates for which we may obtain regulatory approval ; ๏ท acquire or in-license other product candidates and technologies ; ๏ท seek regulatory approvals for any product candidates that successfully complete clinical trials ; ๏ท establish a sales , marketing and distribution infrastructure to commercialize any products for which we may obtain regulatory approval ; and ๏ท add operational , financial and management information systems and personnel , including personnel to support our product development and planned future commercialization efforts , as well as to support our transition to a public company . we will not generate revenue from product sales unless and until we successfully complete clinical development and obtain regulatory approval for our product candidates . if we obtain regulatory approval for any of our product candidates , we expect to incur significant expenses related to developing our commercialization capability to support product sales , marketing and distribution . further , we expect to incur additional costs associated with operating as a public company . as a result , we will need substantial additional funding to support our continuing operations and pursue our growth strategy . until such time as we can generate significant revenue from product sales , if ever , we expect to finance our operations through a combination of equity offerings , debt financings , collaborations , strategic alliances and marketing , distribution or licensing arrangements . we may be unable to raise additional funds or enter into such other agreements or arrangements when needed on favorable terms , or at all . if we fail to raise capital or enter into such agreements as , and when , needed , we may have to significantly delay , scale back or discontinue the development and commercialization of one or more of our product candidates . because of the numerous risks and uncertainties associated with pharmaceutical product development , we are unable to accurately predict the timing or amount of increased expenses or when , or if , we will be able to achieve or maintain profitability . even if we are able to generate product sales , we may not become profitable . if we fail to become profitable or are unable to sustain profitability on a continuing basis , then we may be unable to continue our operations at planned levels and be forced to reduce or terminate our operations . as of december 31 , 2018 , we had cash , cash equivalents and investments of $ 404.1 million . we believe that our existing cash , cash equivalents and investments will enable us to fund our operating expenses , capital expenditure requirements , including the renovation and customization of our recently purchased manufacturing facility , and debt service payments into 2021. see โ โliquidity and capital resources . โ components of our results of operations revenue to date , we have not generated any revenue from product sales and do not expect to generate any revenue from the sale of products in the near future . if our development efforts for our product candidates are successful and result in regulatory approval or license or collaboration agreements with third parties , we may generate revenue in the future from product sales , payments from collaboration or license agreements that we may enter into with third parties , or any combination thereof . 132 operating expenses research and development expenses research and development expenses consist primarily of costs incurred for our research activities , including our drug discovery efforts , and the development of our product candidates , which include : employeeโrelated expenses , including salaries , related benefits and stockโbased compensation expense for employees engaged in research and development functions ; expenses incurred in connection with the preclinical and clinical development of our product candidates and research programs , including under agreements with third parties , such as consultants , contractors and contract research organizations , or cros ; the cost of developing and scaling our manufacturing process and manufacturing drug products for use in our preclinical studies and clinical trials , including under agreements with third parties , such as consultants , contractors and contract manufacturing organizations , or cmos ; laboratory supplies and research materials ; facilities , depreciation and other expenses , which include direct and allocated expenses for rent and maintenance of facilities and insurance ; and payments made under thirdโparty licensing agreements . we expense research and development costs as incurred . advance payments that we make for goods or services to be received in the future for use in research and development activities are recorded as prepaid expenses . the prepaid amounts are expensed as the related goods are delivered or the services are performed . our direct external research and development expenses are tracked on a programโbyโprogram basis for clinical candidates and consist of costs that include fees , reimbursed materials and other costs paid to consultants , contractors , cmos and cros in connection with our preclinical and clinical development and manufacturing activities . story_separator_special_tag we did not invest our cash balances during the year ended december 31 , 2016. other expense was not significant for the years ended december 31 , 2017 and 2016. liquidity and capital resources since our inception , we have incurred significant operating losses . we have not yet commercialized any of our product candidates and we do not expect to generate revenue from sales of any product candidates for several years , if at all . to date , we have funded our operations with proceeds from the sale of preferred stock and issuance of debt and , most 139 recently , with proceeds from our initial public offering , or ipo . as of december 31 , 2018 , we had cash , cash equivalents and investments of $ 404.1 million . in july 2018 , we completed our ipo , pursuant to which we issued and sold 12,055,450 shares of common stock , inclusive of 1,572,450 shares pursuant to the full exercise of the underwriters ' option to purchase additional shares . we received proceeds of $ 254.3 million , after deducting underwriting discounts and commissions and other offering costs . in december 2018 , the company repaid all borrowings under its 2015 loan and security agreement and entered into a new loan and security agreement for an aggregate principal amount of $ 75.0 million , of which $ 25.0 million was drawn as of december 31 , 2018. story_separator_special_tag will be funded in three tranches of term loans of $ 25.0 million each . on the closing date , we made an initial draw of $ 25.0 million . the second tranche will be available to us through june 30 , 2019 , subject to certain conditions including the satisfaction of certain financial covenants . the third tranche will be available to us through june 30 , 2020 , subject to certain conditions including the food and drug administration 's acceptance of at least one of our investigational new drug applications and the satisfaction of certain financial covenants . interest on the outstanding loan balance will accrue at a rate of the one-month u.s. libor rate plus 5.50 % . monthly principal payments will commence 36 months after the closing date and will be amortized over the following 24 months . the term loans are subject to a prepayment fee of 1.00 % in the first year , 0.50 % in the second year and 0.25 % in the third year . in conjunction with 2018 credit facility , the company incurred issuance costs of $ 0.8 million . the loan agreement contains financial covenants that require us to maintain either a certain minimum cash balance or a minimum market capitalization threshold . we were in compliance with all such covenants as of december 31 , 2018. the loan agreement contains customary representations , warranties and covenants and also includes customary events of default , including payment defaults , breaches of covenants , change of control and a material adverse change default . upon the occurrence of an event of default , a default interest rate of an additional 4.00 % per annum may be applied to the outstanding loan balances , and the lenders may declare all outstanding obligations immediately due and payable . borrowings under the loan agreement are collateralized by substantially all of the company 's assets , other than its intellectual property . 141 funding requirements we expect our expenses to increase substantially in connection with our ongoing activities , particularly as we advance the preclinical activities and clinical trials for our product candidates in development . in addition , upon the closing of this offering , we expect to incur additional costs associated with operating as a public company . the timing and amount of our operating and capital expenditures will depend largely on : the timing and progress of preclinical and clinical development activities ; the commencement , enrollment or results of the planned clinical trials of our product candidates or any future clinical trials we may conduct , or changes in the development status of our product candidates ; the timing and outcome of regulatory review of our product candidates ; our decision to initiate a clinical trial , not to initiate a clinical trial or to terminate an existing clinical trial ; changes in laws or regulations applicable to our product candidates , including but not limited to clinical trial requirements for approvals ; developments concerning our cmos ; our ability to obtain materials to produce adequate product supply for any approved product or inability to do so at acceptable prices ; the costs and timing associated with the renovation , customization and operation of our planned multiโsuite manufacturing facility that we purchased in july 2018 ; our ability to establish collaborations if needed ; the costs and timing of future commercialization activities , including product manufacturing , marketing , sales and distribution , for any of our product candidates for which we obtain marketing approval ; the legal patent costs involved in prosecuting patent applications and enforcing patent claims and other intellectual property claims ; additions or departures of key scientific or management personnel ; unanticipated serious safety concerns related to the use of our product candidates ; and the terms and timing of any collaboration , license or other arrangement , including the terms and timing of any milestone payments thereunder . we believe that our existing cash , cash equivalents and investments , will enable us to fund our operating expenses , capital expenditure requirements , including the renovation and customization of the manufacturing facility we purchased in july 2018 , and debt service payments into 2021. we have based this estimate on assumptions that may prove to be wrong , and we could utilize our available capital resources sooner than we expect . until such time , if ever , as we can generate substantial product revenue , we expect to finance our operations
| cash flows the following table summarizes our sources and uses of cash for each of the periods presented : replace_table_token_8_th operating activities during the year ended december 31 , 2018 , operating activities used $ 58.3 million of cash , primarily resulting from our net loss of $ 89.2 million , partially offset by net nonโcash charges of $ 30.7 million , primarily consisting of stockโbased compensation expense . changes in our operating assets and liabilities for the year ended december 31 , 2018 provided net cash of $ 0.1 million , which consisted primarily of a $ 9.2 million increase in accounts payable and accrued expenses and other current liabilities , offset by a $ 9.1 million increase in prepaid expenses and other current assets and others assets . during the year ended december 31 , 2017 , operating activities used $ 21.9 million of cash , primarily resulting from our net loss of $ 43.8 million , partially offset by net nonโcash charges of $ 19.2 million , primarily consisting of stockโbased compensation expense , and net cash provided by changes in our operating assets and liabilities of $ 2.7 million . net cash provided by changes in our operating assets and liabilities for the year ended december 31 , 2017 consisted primarily of a $ 3.4 million increase in accounts payable and accrued expenses and other current liabilities , partially offset by a $ 0.6 million increase in prepaid expenses and other current assets . during the year ended december 31 , 2016 , operating activities used $ 9.5 million of cash , primarily resulting from our net loss of $ 11.0 million , partially offset by net non-cash charges of $ 0.4 million and net cash provided by changes in our operating assets and liabilities of $ 1.1 million .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows the following table summarizes our sources and uses of cash for each of the periods presented : replace_table_token_8_th operating activities during the year ended december 31 , 2018 , operating activities used $ 58.3 million of cash , primarily resulting from our net loss of $ 89.2 million , partially offset by net nonโcash charges of $ 30.7 million , primarily consisting of stockโbased compensation expense . changes in our operating assets and liabilities for the year ended december 31 , 2018 provided net cash of $ 0.1 million , which consisted primarily of a $ 9.2 million increase in accounts payable and accrued expenses and other current liabilities , offset by a $ 9.1 million increase in prepaid expenses and other current assets and others assets . during the year ended december 31 , 2017 , operating activities used $ 21.9 million of cash , primarily resulting from our net loss of $ 43.8 million , partially offset by net nonโcash charges of $ 19.2 million , primarily consisting of stockโbased compensation expense , and net cash provided by changes in our operating assets and liabilities of $ 2.7 million . net cash provided by changes in our operating assets and liabilities for the year ended december 31 , 2017 consisted primarily of a $ 3.4 million increase in accounts payable and accrued expenses and other current liabilities , partially offset by a $ 0.6 million increase in prepaid expenses and other current assets . during the year ended december 31 , 2016 , operating activities used $ 9.5 million of cash , primarily resulting from our net loss of $ 11.0 million , partially offset by net non-cash charges of $ 0.4 million and net cash provided by changes in our operating assets and liabilities of $ 1.1 million .
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Suspicious Activity Report : we expect that our expenses and capital requirements will increase substantially in connection with our ongoing activities , particularly if and as we : ๏ท conduct clinical trials for our product candidates ; ๏ท further develop our red platform ; ๏ท continue to discover and develop additional product candidates ; ๏ท maintain , expand and protect our intellectual property portfolio ; 131 ๏ท hire additional clinical , scientific manufacturing and commercial personnel ; ๏ท expand in-house manufacturing capabilities , including through the renovation , customization and operation of our recently purchased manufacturing facility ; ๏ท establish a commercial manufacturing source and secure supply chain capacity sufficient to provide commercial quantities of any product candidates for which we may obtain regulatory approval ; ๏ท acquire or in-license other product candidates and technologies ; ๏ท seek regulatory approvals for any product candidates that successfully complete clinical trials ; ๏ท establish a sales , marketing and distribution infrastructure to commercialize any products for which we may obtain regulatory approval ; and ๏ท add operational , financial and management information systems and personnel , including personnel to support our product development and planned future commercialization efforts , as well as to support our transition to a public company . we will not generate revenue from product sales unless and until we successfully complete clinical development and obtain regulatory approval for our product candidates . if we obtain regulatory approval for any of our product candidates , we expect to incur significant expenses related to developing our commercialization capability to support product sales , marketing and distribution . further , we expect to incur additional costs associated with operating as a public company . as a result , we will need substantial additional funding to support our continuing operations and pursue our growth strategy . until such time as we can generate significant revenue from product sales , if ever , we expect to finance our operations through a combination of equity offerings , debt financings , collaborations , strategic alliances and marketing , distribution or licensing arrangements . we may be unable to raise additional funds or enter into such other agreements or arrangements when needed on favorable terms , or at all . if we fail to raise capital or enter into such agreements as , and when , needed , we may have to significantly delay , scale back or discontinue the development and commercialization of one or more of our product candidates . because of the numerous risks and uncertainties associated with pharmaceutical product development , we are unable to accurately predict the timing or amount of increased expenses or when , or if , we will be able to achieve or maintain profitability . even if we are able to generate product sales , we may not become profitable . if we fail to become profitable or are unable to sustain profitability on a continuing basis , then we may be unable to continue our operations at planned levels and be forced to reduce or terminate our operations . as of december 31 , 2018 , we had cash , cash equivalents and investments of $ 404.1 million . we believe that our existing cash , cash equivalents and investments will enable us to fund our operating expenses , capital expenditure requirements , including the renovation and customization of our recently purchased manufacturing facility , and debt service payments into 2021. see โ โliquidity and capital resources . โ components of our results of operations revenue to date , we have not generated any revenue from product sales and do not expect to generate any revenue from the sale of products in the near future . if our development efforts for our product candidates are successful and result in regulatory approval or license or collaboration agreements with third parties , we may generate revenue in the future from product sales , payments from collaboration or license agreements that we may enter into with third parties , or any combination thereof . 132 operating expenses research and development expenses research and development expenses consist primarily of costs incurred for our research activities , including our drug discovery efforts , and the development of our product candidates , which include : employeeโrelated expenses , including salaries , related benefits and stockโbased compensation expense for employees engaged in research and development functions ; expenses incurred in connection with the preclinical and clinical development of our product candidates and research programs , including under agreements with third parties , such as consultants , contractors and contract research organizations , or cros ; the cost of developing and scaling our manufacturing process and manufacturing drug products for use in our preclinical studies and clinical trials , including under agreements with third parties , such as consultants , contractors and contract manufacturing organizations , or cmos ; laboratory supplies and research materials ; facilities , depreciation and other expenses , which include direct and allocated expenses for rent and maintenance of facilities and insurance ; and payments made under thirdโparty licensing agreements . we expense research and development costs as incurred . advance payments that we make for goods or services to be received in the future for use in research and development activities are recorded as prepaid expenses . the prepaid amounts are expensed as the related goods are delivered or the services are performed . our direct external research and development expenses are tracked on a programโbyโprogram basis for clinical candidates and consist of costs that include fees , reimbursed materials and other costs paid to consultants , contractors , cmos and cros in connection with our preclinical and clinical development and manufacturing activities . story_separator_special_tag we did not invest our cash balances during the year ended december 31 , 2016. other expense was not significant for the years ended december 31 , 2017 and 2016. liquidity and capital resources since our inception , we have incurred significant operating losses . we have not yet commercialized any of our product candidates and we do not expect to generate revenue from sales of any product candidates for several years , if at all . to date , we have funded our operations with proceeds from the sale of preferred stock and issuance of debt and , most 139 recently , with proceeds from our initial public offering , or ipo . as of december 31 , 2018 , we had cash , cash equivalents and investments of $ 404.1 million . in july 2018 , we completed our ipo , pursuant to which we issued and sold 12,055,450 shares of common stock , inclusive of 1,572,450 shares pursuant to the full exercise of the underwriters ' option to purchase additional shares . we received proceeds of $ 254.3 million , after deducting underwriting discounts and commissions and other offering costs . in december 2018 , the company repaid all borrowings under its 2015 loan and security agreement and entered into a new loan and security agreement for an aggregate principal amount of $ 75.0 million , of which $ 25.0 million was drawn as of december 31 , 2018. story_separator_special_tag will be funded in three tranches of term loans of $ 25.0 million each . on the closing date , we made an initial draw of $ 25.0 million . the second tranche will be available to us through june 30 , 2019 , subject to certain conditions including the satisfaction of certain financial covenants . the third tranche will be available to us through june 30 , 2020 , subject to certain conditions including the food and drug administration 's acceptance of at least one of our investigational new drug applications and the satisfaction of certain financial covenants . interest on the outstanding loan balance will accrue at a rate of the one-month u.s. libor rate plus 5.50 % . monthly principal payments will commence 36 months after the closing date and will be amortized over the following 24 months . the term loans are subject to a prepayment fee of 1.00 % in the first year , 0.50 % in the second year and 0.25 % in the third year . in conjunction with 2018 credit facility , the company incurred issuance costs of $ 0.8 million . the loan agreement contains financial covenants that require us to maintain either a certain minimum cash balance or a minimum market capitalization threshold . we were in compliance with all such covenants as of december 31 , 2018. the loan agreement contains customary representations , warranties and covenants and also includes customary events of default , including payment defaults , breaches of covenants , change of control and a material adverse change default . upon the occurrence of an event of default , a default interest rate of an additional 4.00 % per annum may be applied to the outstanding loan balances , and the lenders may declare all outstanding obligations immediately due and payable . borrowings under the loan agreement are collateralized by substantially all of the company 's assets , other than its intellectual property . 141 funding requirements we expect our expenses to increase substantially in connection with our ongoing activities , particularly as we advance the preclinical activities and clinical trials for our product candidates in development . in addition , upon the closing of this offering , we expect to incur additional costs associated with operating as a public company . the timing and amount of our operating and capital expenditures will depend largely on : the timing and progress of preclinical and clinical development activities ; the commencement , enrollment or results of the planned clinical trials of our product candidates or any future clinical trials we may conduct , or changes in the development status of our product candidates ; the timing and outcome of regulatory review of our product candidates ; our decision to initiate a clinical trial , not to initiate a clinical trial or to terminate an existing clinical trial ; changes in laws or regulations applicable to our product candidates , including but not limited to clinical trial requirements for approvals ; developments concerning our cmos ; our ability to obtain materials to produce adequate product supply for any approved product or inability to do so at acceptable prices ; the costs and timing associated with the renovation , customization and operation of our planned multiโsuite manufacturing facility that we purchased in july 2018 ; our ability to establish collaborations if needed ; the costs and timing of future commercialization activities , including product manufacturing , marketing , sales and distribution , for any of our product candidates for which we obtain marketing approval ; the legal patent costs involved in prosecuting patent applications and enforcing patent claims and other intellectual property claims ; additions or departures of key scientific or management personnel ; unanticipated serious safety concerns related to the use of our product candidates ; and the terms and timing of any collaboration , license or other arrangement , including the terms and timing of any milestone payments thereunder . we believe that our existing cash , cash equivalents and investments , will enable us to fund our operating expenses , capital expenditure requirements , including the renovation and customization of the manufacturing facility we purchased in july 2018 , and debt service payments into 2021. we have based this estimate on assumptions that may prove to be wrong , and we could utilize our available capital resources sooner than we expect . until such time , if ever , as we can generate substantial product revenue , we expect to finance our operations
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2,528 | factors that could cause or contribute to those differences include , but are not limited to , those identified below and those discussed above in the section entitled โ 1a . risk factors . โ 18 overview our principal business is the manufacturing , distribution and marketing of physical medicine products and aesthetic products . we offer a broad line of medical equipment including therapy devices , medical supplies and soft goods , treatment tables and rehabilitation equipment . our line of aesthetic equipment includes aesthetic massage and microdermabrasion devices , as well as skin care products . our products are sold to and used primarily by physical therapists , chiropractors , sports medicine practitioners , podiatrists , plastic surgeons , dermatologists , aestheticians and other aesthetic services providers . our fiscal year ends on june 30. reference to fiscal year 2014 refers to the year ended june 30 , 2014. results of operations fiscal year 2014 compared to fiscal year 2013 net sales net sales in fiscal year 2014 were $ 27,444,223 , compared to $ 29,538,275 in fiscal year 2013. in fiscal year 2013 , we introduced the new solarisplus product line which significantly increased sales of manufactured capital devices during that period . in fiscal year 2014 , increased sales of our top-selling solarisplus therapy devices and new thermostim probe were offset by lower sales of certain medical products and supplies , including other manufactured modalities , metal treatment tables , exercise products , nutritional supplements and taping products . market conditions continued to deteriorate during the year due to the patient protection and affordable care act as amended by the health care and education reconciliation act , each enacted in march 2010 ( the โ health care reform law โ ) . the health care reform law has had the effect of creating significant uncertainty relative to delivery of care and reimbursement . there has been a marked decline in the opening of new clinics and expansion of existing clinics in our marketplace which typically are a significant source of demand for our products โ particularly the higher margin capital equipment products . the uncertainty surrounding the health care reform law has not only led to customers focusing more on controlling operating costs by reducing expenditures , but has also caused a reluctance to invest in new equipment and clinic upgrades . in addition to the impacts of the health care reform law , we continue to see slower economic recovery in some parts of the country as well as a temporary decrease in demand due to severe weather events during this past winter . with a currently shrinking market , it is necessary to implement strategies to increase market share . to accomplish that , management has undertaken efforts to ( i ) expand our distribution channels by adding several new dealers and sales representatives , and ( ii ) stimulate sales of the new dynatron thermostim probe and other new products . we may also consider the acquisition of other businesses and technology . the new thermostim probe delivers thermal ( hot and cold ) therapy and or electrotherapy in a targeted , attended treatment . because the probe is operated from the control console of the solarisplus units , we are seeing demand for solarisplus units rise commensurate with the demand for the thermostim probe . management believes that as healthcare reform progresses , uncertainty in our market will diminish , and demand for our products will begin to strengthen . sales of proprietary manufactured physical medicine products represented approximately 47 % and 46 % of total physical medicine product sales in fiscal years 2014 and 2013 , respectively . distribution of products manufactured by other suppliers accounted for the balance of our physical medicine product sales in those years . sales of manufactured aesthetic products in fiscal years 2014 and 2013 , represented approximately 86 % and 78 % of total aesthetic product sales , respectively , with distributed products making up the balance . the majority of our sales revenues come from the sale of physical medicine products , both manufactured and distributed . in fiscal years 2014 and 2013 , sales of physical medicine products accounted for 91 % of total sales in both years . chargeable repairs , billable freight revenue , aesthetic product sales and other miscellaneous revenue accounted for approximately 9 % of total revenues in both years . 19 gross profit gross profit totaled $ 10,020,372 , or 36.5 % of net sales , in fiscal year 2014 , compared to $ 11,086,602 , or 37.5 % of net sales , in fiscal year 2013. lower sales revenue generated during the year was the primary factor in the reduction in gross profit compared to the prior year period . in addition , a reduction in revenue from the phasing out of our stream software service contributed to the lower gross profit and gross margin percentage generated in the reporting periods . sales of stream services were approximately $ 7,765 in 2014 , compared to $ 108,100 in 2013. those sales were 100 % gross profit as they carried no associated cost of sale . loss of approximately $ 100,000 in gross profit from the termination of the stream program accounted for one third of the drop in gross profit percentage . the balance was attributable to product mix favoring lower margin supply products and slightly increased cost of sales for manufactured capital products . story_separator_special_tag this product line consists of four units : the dynatron solarisplus 709 , 708 , 706 , and 705. these attractive units provide our most advanced technology in combination therapy devices by adding phototherapy capabilities to enhanced electrotherapy and ultrasound combination devices . the dynatron solarisplus line of products features a tri-wave phototherapy probe and a tri-wave phototherapy pad . tri-wave phototherapy features infrared , red and blue wavelength light . the dynatron solaris tri-wave phototherapy pad is capable of treating large areas of the body via unattended infrared , red and blue wavelength phototherapy . the tri-wave phototherapy probe allows the practitioner to treat specific , targeted areas of the body in an attended treatment . as part of the solarisplus product line , we also introduced a display cart specifically designed for these units . the solarisplus line has become popular for its power and versatility . the units are capable of simultaneously powering five electrotherapy channels , ultrasound therapy , a phototherapy probe and phototherapy pad . no other device on the market offers such powerful simultaneous combination therapies . 24 the introduction of so many new products in the last two years marks the most productive two year period of new product introductions in our history . with most of the planned new products now released , r & d costs in 2014 cycled back to a lower level more in line with historical amounts . management is confident the investments made in r & d will yield long-term benefits and are important to assuring that we maintain our reputation in the industry for being an innovator and leader in product development . our product catalog not only includes our proprietary products previously discussed , but also our expansive offering of non-proprietary products ( approximately 13,000 skus ) to service the broader needs of our customers . it also provides an excellent sales tool for our sales representatives in the field and the foundation for our e-commerce platform . the catalog includes an online electronic version of the catalog that is incorporated into our e-commerce website . the catalog has been praised for its clarity and ease of use . over the past few years , consolidations in our market have changed the landscape of our industry 's distribution channels . at the present time , we believe that there remain only two companies with a national direct sales force selling proprietary and distributed products : dynatronics and patterson medical . all other distribution in our market is directed through catalog companies with a limited direct sales force , or through independent local dealers that have limited geographical reach . our national direct sales force consists of direct sales employees and independent sales representatives . in addition to these direct sales representatives , we continue to enjoy a strong relationship with scores of independent dealers . we believe we have the best trained and most knowledgeable sales force in the industry . we are actively seeking to expand our market penetration through increased distribution . to accomplish this , during fiscal year 2014 , for the first time in our history , we made available to all distributors and qualified sales persons , a family of proprietary combination therapy devices , the dynatron 25 series . the availability of these products is attracting new distributors and sales persons . in addition , where these sales persons have had limited or no access to premier lines like the dynatron solarisplus products , they are now able to access these products in certain geographical areas through the authorized sales representative or dealer who has the rights to the products in those territories . making these products more widely available is expected to increase our ability to expand distribution of not only our own proprietary products , but also those we distribute on behalf of other manufacturers . pursuit of national accounts , including group purchasing organizations ( gpo ) continues to be a strategic endeavor . during fiscal year 2014 , we signed an exclusive , sole-source agreement with amerinet , one of the five largest gpo 's in the united states , to supply medical products to their acute care and alternate care members . amerinet is one of the nation 's leading healthcare gpos , helping its members to reduce healthcare costs and improve healthcare quality . the three-year agreement with amerinet became effective july 1 , 2014. the prior vendor reported approximately $ 6,000,000 per year in sales to amerinet members . we do not expect that this contract will rise to that level for various reasons and we anticipate that it will take several months to ramp up sales under this contract . we expect that sales under this contract will gradually increase over the life of the contract to a rate of approximately $ 3,000,000 annually . in 2013 , we were successful in qualifying to be an approved vendor to the federal government , including the veterans administration hospitals and medical facilities associated with military installations . economic pressures from the recent recession in the united states have affected available credit that would facilitate large capital purchases , and have also reduced demand for discretionary services such as those provided by the purchasers of our aesthetic products . as a result , we reduced our expenses in the synergie department . we believe that our aesthetic devices remain the best value on the market and we are seeking innovative ways to market these products , including strategic partnerships , both domestic and international , to help enhance sales momentum . we have long believed that international markets present an untapped potential for growth and expansion . adding new distributors in several countries will be the key to this expansion effort . we remain committed to finding the most effective ways to expand our markets internationally . over the coming year , our efforts will be focused on partnering with key manufacturers and
| liquidity and capital resources we have financed operations through cash from operations , available cash reserves , and borrowings under a line of credit with a bank . working capital decreased $ 197,993 to $ 3,347,595 as of june 30 , 2014 , inclusive of the current portion of long-term obligations and credit facilities , compared to working capital of $ 3,545,588 as of june 30 , 2013. as of june 30 , 2014 , the company had approximately $ 978,800 of available credit under a credit facility with a commercial bank . the current ratio was 1.5 to 1 as of june 30 , 2014 and june 30 , 2013. current assets were 73 % of total assets as of june 30 , 2014 and 72 % of total assets as of june 30 , 2013. cash and cash equivalents our cash and cash equivalents position as of june 30 , 2014 , was $ 332,800 , compared to cash and cash equivalents of $ 302,050 as of june 30 , 2013. our cash position varies throughout the year , but typically stays within a range of $ 200,000 to $ 350,000. we expect that cash flows from operating activities , together with amounts available through an existing line-of-credit facility , will be sufficient to cover operating needs in the ordinary course of business for at least the next twelve months . if we experience an adverse operating environment , or unusual capital expenditure requirements , additional financing may be required . no assurance can be given that additional financing , if required , would be available on terms favorable to us , or at all .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources we have financed operations through cash from operations , available cash reserves , and borrowings under a line of credit with a bank . working capital decreased $ 197,993 to $ 3,347,595 as of june 30 , 2014 , inclusive of the current portion of long-term obligations and credit facilities , compared to working capital of $ 3,545,588 as of june 30 , 2013. as of june 30 , 2014 , the company had approximately $ 978,800 of available credit under a credit facility with a commercial bank . the current ratio was 1.5 to 1 as of june 30 , 2014 and june 30 , 2013. current assets were 73 % of total assets as of june 30 , 2014 and 72 % of total assets as of june 30 , 2013. cash and cash equivalents our cash and cash equivalents position as of june 30 , 2014 , was $ 332,800 , compared to cash and cash equivalents of $ 302,050 as of june 30 , 2013. our cash position varies throughout the year , but typically stays within a range of $ 200,000 to $ 350,000. we expect that cash flows from operating activities , together with amounts available through an existing line-of-credit facility , will be sufficient to cover operating needs in the ordinary course of business for at least the next twelve months . if we experience an adverse operating environment , or unusual capital expenditure requirements , additional financing may be required . no assurance can be given that additional financing , if required , would be available on terms favorable to us , or at all .
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Suspicious Activity Report : factors that could cause or contribute to those differences include , but are not limited to , those identified below and those discussed above in the section entitled โ 1a . risk factors . โ 18 overview our principal business is the manufacturing , distribution and marketing of physical medicine products and aesthetic products . we offer a broad line of medical equipment including therapy devices , medical supplies and soft goods , treatment tables and rehabilitation equipment . our line of aesthetic equipment includes aesthetic massage and microdermabrasion devices , as well as skin care products . our products are sold to and used primarily by physical therapists , chiropractors , sports medicine practitioners , podiatrists , plastic surgeons , dermatologists , aestheticians and other aesthetic services providers . our fiscal year ends on june 30. reference to fiscal year 2014 refers to the year ended june 30 , 2014. results of operations fiscal year 2014 compared to fiscal year 2013 net sales net sales in fiscal year 2014 were $ 27,444,223 , compared to $ 29,538,275 in fiscal year 2013. in fiscal year 2013 , we introduced the new solarisplus product line which significantly increased sales of manufactured capital devices during that period . in fiscal year 2014 , increased sales of our top-selling solarisplus therapy devices and new thermostim probe were offset by lower sales of certain medical products and supplies , including other manufactured modalities , metal treatment tables , exercise products , nutritional supplements and taping products . market conditions continued to deteriorate during the year due to the patient protection and affordable care act as amended by the health care and education reconciliation act , each enacted in march 2010 ( the โ health care reform law โ ) . the health care reform law has had the effect of creating significant uncertainty relative to delivery of care and reimbursement . there has been a marked decline in the opening of new clinics and expansion of existing clinics in our marketplace which typically are a significant source of demand for our products โ particularly the higher margin capital equipment products . the uncertainty surrounding the health care reform law has not only led to customers focusing more on controlling operating costs by reducing expenditures , but has also caused a reluctance to invest in new equipment and clinic upgrades . in addition to the impacts of the health care reform law , we continue to see slower economic recovery in some parts of the country as well as a temporary decrease in demand due to severe weather events during this past winter . with a currently shrinking market , it is necessary to implement strategies to increase market share . to accomplish that , management has undertaken efforts to ( i ) expand our distribution channels by adding several new dealers and sales representatives , and ( ii ) stimulate sales of the new dynatron thermostim probe and other new products . we may also consider the acquisition of other businesses and technology . the new thermostim probe delivers thermal ( hot and cold ) therapy and or electrotherapy in a targeted , attended treatment . because the probe is operated from the control console of the solarisplus units , we are seeing demand for solarisplus units rise commensurate with the demand for the thermostim probe . management believes that as healthcare reform progresses , uncertainty in our market will diminish , and demand for our products will begin to strengthen . sales of proprietary manufactured physical medicine products represented approximately 47 % and 46 % of total physical medicine product sales in fiscal years 2014 and 2013 , respectively . distribution of products manufactured by other suppliers accounted for the balance of our physical medicine product sales in those years . sales of manufactured aesthetic products in fiscal years 2014 and 2013 , represented approximately 86 % and 78 % of total aesthetic product sales , respectively , with distributed products making up the balance . the majority of our sales revenues come from the sale of physical medicine products , both manufactured and distributed . in fiscal years 2014 and 2013 , sales of physical medicine products accounted for 91 % of total sales in both years . chargeable repairs , billable freight revenue , aesthetic product sales and other miscellaneous revenue accounted for approximately 9 % of total revenues in both years . 19 gross profit gross profit totaled $ 10,020,372 , or 36.5 % of net sales , in fiscal year 2014 , compared to $ 11,086,602 , or 37.5 % of net sales , in fiscal year 2013. lower sales revenue generated during the year was the primary factor in the reduction in gross profit compared to the prior year period . in addition , a reduction in revenue from the phasing out of our stream software service contributed to the lower gross profit and gross margin percentage generated in the reporting periods . sales of stream services were approximately $ 7,765 in 2014 , compared to $ 108,100 in 2013. those sales were 100 % gross profit as they carried no associated cost of sale . loss of approximately $ 100,000 in gross profit from the termination of the stream program accounted for one third of the drop in gross profit percentage . the balance was attributable to product mix favoring lower margin supply products and slightly increased cost of sales for manufactured capital products . story_separator_special_tag this product line consists of four units : the dynatron solarisplus 709 , 708 , 706 , and 705. these attractive units provide our most advanced technology in combination therapy devices by adding phototherapy capabilities to enhanced electrotherapy and ultrasound combination devices . the dynatron solarisplus line of products features a tri-wave phototherapy probe and a tri-wave phototherapy pad . tri-wave phototherapy features infrared , red and blue wavelength light . the dynatron solaris tri-wave phototherapy pad is capable of treating large areas of the body via unattended infrared , red and blue wavelength phototherapy . the tri-wave phototherapy probe allows the practitioner to treat specific , targeted areas of the body in an attended treatment . as part of the solarisplus product line , we also introduced a display cart specifically designed for these units . the solarisplus line has become popular for its power and versatility . the units are capable of simultaneously powering five electrotherapy channels , ultrasound therapy , a phototherapy probe and phototherapy pad . no other device on the market offers such powerful simultaneous combination therapies . 24 the introduction of so many new products in the last two years marks the most productive two year period of new product introductions in our history . with most of the planned new products now released , r & d costs in 2014 cycled back to a lower level more in line with historical amounts . management is confident the investments made in r & d will yield long-term benefits and are important to assuring that we maintain our reputation in the industry for being an innovator and leader in product development . our product catalog not only includes our proprietary products previously discussed , but also our expansive offering of non-proprietary products ( approximately 13,000 skus ) to service the broader needs of our customers . it also provides an excellent sales tool for our sales representatives in the field and the foundation for our e-commerce platform . the catalog includes an online electronic version of the catalog that is incorporated into our e-commerce website . the catalog has been praised for its clarity and ease of use . over the past few years , consolidations in our market have changed the landscape of our industry 's distribution channels . at the present time , we believe that there remain only two companies with a national direct sales force selling proprietary and distributed products : dynatronics and patterson medical . all other distribution in our market is directed through catalog companies with a limited direct sales force , or through independent local dealers that have limited geographical reach . our national direct sales force consists of direct sales employees and independent sales representatives . in addition to these direct sales representatives , we continue to enjoy a strong relationship with scores of independent dealers . we believe we have the best trained and most knowledgeable sales force in the industry . we are actively seeking to expand our market penetration through increased distribution . to accomplish this , during fiscal year 2014 , for the first time in our history , we made available to all distributors and qualified sales persons , a family of proprietary combination therapy devices , the dynatron 25 series . the availability of these products is attracting new distributors and sales persons . in addition , where these sales persons have had limited or no access to premier lines like the dynatron solarisplus products , they are now able to access these products in certain geographical areas through the authorized sales representative or dealer who has the rights to the products in those territories . making these products more widely available is expected to increase our ability to expand distribution of not only our own proprietary products , but also those we distribute on behalf of other manufacturers . pursuit of national accounts , including group purchasing organizations ( gpo ) continues to be a strategic endeavor . during fiscal year 2014 , we signed an exclusive , sole-source agreement with amerinet , one of the five largest gpo 's in the united states , to supply medical products to their acute care and alternate care members . amerinet is one of the nation 's leading healthcare gpos , helping its members to reduce healthcare costs and improve healthcare quality . the three-year agreement with amerinet became effective july 1 , 2014. the prior vendor reported approximately $ 6,000,000 per year in sales to amerinet members . we do not expect that this contract will rise to that level for various reasons and we anticipate that it will take several months to ramp up sales under this contract . we expect that sales under this contract will gradually increase over the life of the contract to a rate of approximately $ 3,000,000 annually . in 2013 , we were successful in qualifying to be an approved vendor to the federal government , including the veterans administration hospitals and medical facilities associated with military installations . economic pressures from the recent recession in the united states have affected available credit that would facilitate large capital purchases , and have also reduced demand for discretionary services such as those provided by the purchasers of our aesthetic products . as a result , we reduced our expenses in the synergie department . we believe that our aesthetic devices remain the best value on the market and we are seeking innovative ways to market these products , including strategic partnerships , both domestic and international , to help enhance sales momentum . we have long believed that international markets present an untapped potential for growth and expansion . adding new distributors in several countries will be the key to this expansion effort . we remain committed to finding the most effective ways to expand our markets internationally . over the coming year , our efforts will be focused on partnering with key manufacturers and
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2,529 | first lien facility on march 30 , 2016 , eagle shipping , as borrower , and certain of its subsidiaries that were guarantors of the company 's obligations under the company 's senior secured credit facility ( the โ exit financing facility โ ) , as guarantors , entered into an amended and restated first lien loan agreement ( the โ a & r first lien loan agreement โ ) with the lenders thereunder ( the โ first lien lenders โ ) and abn amro capital usa llc , as agent and security trustee for the lenders . the a & r first lien loan agreement amends and restates the exit financing facility in its entirety , providing for eagle shipping to be the borrower in the place of the company , and further provides for a waiver of any and all events of default occurring as a result of the company 's previously reported self-disclosure report with ofac . the a & r first lien loan agreement provides for a term loan ( which was outstanding in the amount of $ 201,468,750 after giving effect to the entry into the a & r first lien loan agreement and the second lien loan agreement ) as well as a $ 50,000,000 revolving credit facility , of which $ 10,000,000 was undrawn as of march 30 , 2016 ( the term loan , together with the revolving credit facility , the โ first lien facility โ ) . the first lien facility matures on october 15 , 2019. an aggregate fee of $ 600,000 was paid to the agent and the first lien lenders in connection with the first lien facility . eagle shipping 's obligations under the first lien facility are secured by a first priority mortgage on each of the vessels currently in eagle shipping 's fleet and such other vessels that it may from time to time include with the approval of the first lien lenders , a first priority assignment of its earnings account , its liquidity account and its vessel-owning subsidiaries ' earnings accounts , a first priority assignment of all charters with terms that may exceed 18 months , freights , earnings , insurances , requisition compensation and management agreements with respect to the vessels , a first priority pledge of the membership interests of each of eagle shipping 's vessel-owning subsidiaries , and a non-recourse pledge by the company of the membership interests of eagle shipping . in the future , eagle shipping may grant additional security to the first lien lenders from time to time in the future , subject to the terms of the intercreditor agreement between the first lien agent and the second lien agent ( the โ intercreditor agreement โ ) . see โ note 2. corporate reorganization โ to the consolidated financial statements . 53 second lien facility on march 30 , 2016 , eagle shipping , as borrower , and certain of its subsidiaries , that were guarantors of the company 's obligations under the exit financing facility , as guarantors , entered into a second lien loan agreement ( the โ second lien loan agreement โ ) with certain lenders ( the โ second lien lenders โ ) and wilmington savings fund society , fsb as agent for the second lien lenders ( the โ second lien agent โ ) . the second lien lenders include certain of the company 's existing shareholders , as well as other investors . the second lien loan agreement provides for a term loan in the amount of $ 60,000,000 ( the โ second lien facility โ ) , and matures on january 14 , 2020 ( the date that is 91 days after the original stated maturity of the first lien facility ) . the term loan under the second lien facility bears interest at a rate of libor plus 14.00 % per annum ( with a 1.0 % libor floor ) or the base rate ( as defined in the second lien loan agreement ) plus 13.00 % per annum , paid in kind quarterly in arrears . the company used the proceeds from the second lien facility to pay down $ 30,158,500 , a portion of the amount outstanding in respect of the revolving credit facility under the first lien facility , pay three quarters of amortization payments under the first lien facility , pay transaction fees in connection with the entry into the a & r first lien loan agreement and the second lien loan agreement , and add cash to the balance sheet . eagle shipping 's obligations under the second lien facility are secured by a second priority lien on the same collateral securing eagle shipping 's obligations under the first lien facility , subject to the terms of the intercreditor agreement . eagle shipping may grant additional security to the second lien lenders from time to time in the future , subject to the terms of the intercreditor agreement . see โ note 2. corporate reorganization โ to the consolidated financial statements . intercreditor agreement concurrently with eagle shipping 's entry into the a & r first lien loan agreement and the second lien loan agreement , and in connection with the granting of security interests in and liens on the collateral securing obligations under those agreements , eagle shipping entered into the intercreditor agreement . the intercreditor agreement governs the relative rights and priorities of the secured parties in respect of liens on the assets of eagle shipping and its subsidiaries securing the first lien facility and the second lien facility . story_separator_special_tag our strategy is to focus on the supramax/ultramax asset class , which is part of the the broader handymax segment , defined as dry bulk vessels between 40,000 to 65,000 dwt . supramaxes range in size from approximately 50,000 to 59,000 dwt , while ultramaxes dry bulk vessels range in size from approximately 60,000 to 65,000 dwt . these vessels have the cargo loading and unloading flexibility offered by their on-board cranes , while the cargo carrying capacity approaches that of panamax , which ranges in size between 75,000 and 83,000 dwt and which require onshore facilities to load and offload their cargoes . we believe that the cargo handling flexibility and cargo carrying capacity of the supramax/ultramax class makes it the preferred type of ship attractive to potential charterers . all 41 of our owned vessels , as of december 31 , 2016 , range in size between 48,000 and 64,000 dwt . we also have one logs-fitted handysize vessel on a long-term charter-in which is roughly 37,000 dwt in size . the supply of dry bulk vessels depends primarily on the level of the orderbook , the fleet age profile , and the operating efficiency of the existing fleet . as of december 2016 , 7 % of the world handymax fleet was 20 years or older , while the newbuilding orderbook stood at 10 % of the ( handymax ) on-the-water fleet . the 41 vessels in our operating fleet have an average age of approximately 8.7 years as of december 31 , 2016. the typical trading life of a handymax vessel is approximately 25 years . 59 the handymax market the dry bulk market was extremely challenged during 2016 due to elevated supply growth , especially during the first half of the year , and weak cargo demand , highlighted by reduced coal shipments to china and weather-related issues in brazil and australia that temporarily reduced iron ore output . the baltic supramax index ( โ bsi โ ) , a dry bulk index based on 52,000 dwt vessels , averaged $ 6,235 for 2016 , a historic low . during 2016 , the bsi reached an all-time low of $ 2,544 in february and started to recover from there , averaging $ 5,795 for the second quarter , $ 7,064 for the third quarter , and $ 8,317 for the fourth quarter . the improvement in rates during the year was driven by increased demolition ( of older vessels ) , lower supply growth , and higher iron ore and coal flows into china . looking ahead , newbuilding deliveries for 2017 and beyond are expected to be significantly less than in recent prior years , with the orderbook currently standing at under 10 % of the existing fleet . within this figure , there is broad consensus that a meaningful number of these vessels will be delayed and or may never be built , given the state of construction of the vessels themselves and or financial situation in part due to an improving macroeconomic environment . drybulk trade , which tends to be correlated to global gdp , is expected to improve by over 2 % , driven by increased flows in iron ore , coal , and minor bulks . 60 critical accounting policies and estimates the discussion and analysis of our financial condition and results of operations is based upon our consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states ( โ u.s . gaap โ or โ gaap โ ) . the preparation of those financial statements requires us to make estimates and judgments that affect the reported amounts of assets and liabilities , revenues and expenses and related disclosure of contingent assets and liabilities at the date of our financial statements . actual results may differ from these estimates under different assumptions and conditions . critical accounting policies are those that reflect significant judgments of uncertainties and potentially result in materially different results under different assumptions and conditions . we have described below what we believe are our most critical accounting policies , because they generally involve a comparatively higher degree of judgment in their application . for a description of all our accounting policies , see note 4 . โ significant accounting policies โ to our consolidated financial statements included herein . revenue recognition revenues are generated from time charters , voyage charters and commercial pool arrangements . time charter revenues are recognized on a straight-line basis over the term of the respective time charter agreements as service is provided . voyage revenues for cargo transportation are recognized ratably over the estimated relative transit time of each voyage . voyage revenue is deemed to commence upon the completion of discharge of the previous charterer 's cargo and is deemed to end upon the completion of discharge of the current cargo , provided an agreed non-cancelable charter between the company and the charterer is in existence , the charter rate is fixed and determinable , and collectability is reasonably assured . revenue under voyage charters will not be recognized until a charter has been agreed even if the vessel has discharged its previous cargo and is proceeding to an anticipated port of loading . revenues generated from time charters linked to the baltic supramax index and or revenues generated from profit sharing arrangements are recognized over the term of the respective time charter agreements as service is provided and the profit sharing is fixed and determinable . for the company 's vessel operating in a commercial pool , revenues and voyage expenses are pooled and allocated to each pool participant under a time charter agreement basis in accordance with an agreed-upon formula . the formula in the pool agreement for allocating gross shipping revenues net of voyage expenses is based on points allocated to participants ' vessels based on cargo carrying capacity and other technical characteristics , such as speed
| liquidity and capital resources the following table presents the cash flow information for the years ended december 31 , 2016 and 2015 and for the period between october 16 , 2014 and december 31 , 2014 for the successor and for the period between january 1 , 2014 and october 15 , 2014 for the predecessor . replace_table_token_15_th 71 net cash used in operating activities during 2016 was $ 45,434,310 , compared with net cash used in operating activities of $ 43,786,769 in 2015. the increase in cash flow used in operations resulted from negative working capital changes offset by lower drydock expenditures . net cash used in operating activities during 2015 was $ 43,786,769 compared with net cash used in operating activities of $ 279,181 for the period between october 16 , 2014 and december 31 , 2014 ( successor ) . net cash used in operating activities was $ 19,464,930 for the period between january 1 , 2014 and october 15 , 2014 ( predecessor ) . net cash used in investing activities during 2016 was $ 9,280,391 , compared with net cash provided by investing activities of $ 10,251,871 in 2015. during 2016 , the company purchased a 2016 built ultramax for $ 18.85 million . in addition , the company paid $ 1.9 million as an advance for acquisition of a 2017 built ultramax . the company took delivery of the vessel in the first quarter of 2017. the company sold four vessels ( the falcon , peregrine , kittiwake and harrier ) during 2016 for net proceeds of $ 13.0 million during the year . in 2015 , the company received $ 7.8 million from the sale of its investment in korea line corporation and $ 4.2 million from sale of one vessel ( the kite ) .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources the following table presents the cash flow information for the years ended december 31 , 2016 and 2015 and for the period between october 16 , 2014 and december 31 , 2014 for the successor and for the period between january 1 , 2014 and october 15 , 2014 for the predecessor . replace_table_token_15_th 71 net cash used in operating activities during 2016 was $ 45,434,310 , compared with net cash used in operating activities of $ 43,786,769 in 2015. the increase in cash flow used in operations resulted from negative working capital changes offset by lower drydock expenditures . net cash used in operating activities during 2015 was $ 43,786,769 compared with net cash used in operating activities of $ 279,181 for the period between october 16 , 2014 and december 31 , 2014 ( successor ) . net cash used in operating activities was $ 19,464,930 for the period between january 1 , 2014 and october 15 , 2014 ( predecessor ) . net cash used in investing activities during 2016 was $ 9,280,391 , compared with net cash provided by investing activities of $ 10,251,871 in 2015. during 2016 , the company purchased a 2016 built ultramax for $ 18.85 million . in addition , the company paid $ 1.9 million as an advance for acquisition of a 2017 built ultramax . the company took delivery of the vessel in the first quarter of 2017. the company sold four vessels ( the falcon , peregrine , kittiwake and harrier ) during 2016 for net proceeds of $ 13.0 million during the year . in 2015 , the company received $ 7.8 million from the sale of its investment in korea line corporation and $ 4.2 million from sale of one vessel ( the kite ) .
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Suspicious Activity Report : first lien facility on march 30 , 2016 , eagle shipping , as borrower , and certain of its subsidiaries that were guarantors of the company 's obligations under the company 's senior secured credit facility ( the โ exit financing facility โ ) , as guarantors , entered into an amended and restated first lien loan agreement ( the โ a & r first lien loan agreement โ ) with the lenders thereunder ( the โ first lien lenders โ ) and abn amro capital usa llc , as agent and security trustee for the lenders . the a & r first lien loan agreement amends and restates the exit financing facility in its entirety , providing for eagle shipping to be the borrower in the place of the company , and further provides for a waiver of any and all events of default occurring as a result of the company 's previously reported self-disclosure report with ofac . the a & r first lien loan agreement provides for a term loan ( which was outstanding in the amount of $ 201,468,750 after giving effect to the entry into the a & r first lien loan agreement and the second lien loan agreement ) as well as a $ 50,000,000 revolving credit facility , of which $ 10,000,000 was undrawn as of march 30 , 2016 ( the term loan , together with the revolving credit facility , the โ first lien facility โ ) . the first lien facility matures on october 15 , 2019. an aggregate fee of $ 600,000 was paid to the agent and the first lien lenders in connection with the first lien facility . eagle shipping 's obligations under the first lien facility are secured by a first priority mortgage on each of the vessels currently in eagle shipping 's fleet and such other vessels that it may from time to time include with the approval of the first lien lenders , a first priority assignment of its earnings account , its liquidity account and its vessel-owning subsidiaries ' earnings accounts , a first priority assignment of all charters with terms that may exceed 18 months , freights , earnings , insurances , requisition compensation and management agreements with respect to the vessels , a first priority pledge of the membership interests of each of eagle shipping 's vessel-owning subsidiaries , and a non-recourse pledge by the company of the membership interests of eagle shipping . in the future , eagle shipping may grant additional security to the first lien lenders from time to time in the future , subject to the terms of the intercreditor agreement between the first lien agent and the second lien agent ( the โ intercreditor agreement โ ) . see โ note 2. corporate reorganization โ to the consolidated financial statements . 53 second lien facility on march 30 , 2016 , eagle shipping , as borrower , and certain of its subsidiaries , that were guarantors of the company 's obligations under the exit financing facility , as guarantors , entered into a second lien loan agreement ( the โ second lien loan agreement โ ) with certain lenders ( the โ second lien lenders โ ) and wilmington savings fund society , fsb as agent for the second lien lenders ( the โ second lien agent โ ) . the second lien lenders include certain of the company 's existing shareholders , as well as other investors . the second lien loan agreement provides for a term loan in the amount of $ 60,000,000 ( the โ second lien facility โ ) , and matures on january 14 , 2020 ( the date that is 91 days after the original stated maturity of the first lien facility ) . the term loan under the second lien facility bears interest at a rate of libor plus 14.00 % per annum ( with a 1.0 % libor floor ) or the base rate ( as defined in the second lien loan agreement ) plus 13.00 % per annum , paid in kind quarterly in arrears . the company used the proceeds from the second lien facility to pay down $ 30,158,500 , a portion of the amount outstanding in respect of the revolving credit facility under the first lien facility , pay three quarters of amortization payments under the first lien facility , pay transaction fees in connection with the entry into the a & r first lien loan agreement and the second lien loan agreement , and add cash to the balance sheet . eagle shipping 's obligations under the second lien facility are secured by a second priority lien on the same collateral securing eagle shipping 's obligations under the first lien facility , subject to the terms of the intercreditor agreement . eagle shipping may grant additional security to the second lien lenders from time to time in the future , subject to the terms of the intercreditor agreement . see โ note 2. corporate reorganization โ to the consolidated financial statements . intercreditor agreement concurrently with eagle shipping 's entry into the a & r first lien loan agreement and the second lien loan agreement , and in connection with the granting of security interests in and liens on the collateral securing obligations under those agreements , eagle shipping entered into the intercreditor agreement . the intercreditor agreement governs the relative rights and priorities of the secured parties in respect of liens on the assets of eagle shipping and its subsidiaries securing the first lien facility and the second lien facility . story_separator_special_tag our strategy is to focus on the supramax/ultramax asset class , which is part of the the broader handymax segment , defined as dry bulk vessels between 40,000 to 65,000 dwt . supramaxes range in size from approximately 50,000 to 59,000 dwt , while ultramaxes dry bulk vessels range in size from approximately 60,000 to 65,000 dwt . these vessels have the cargo loading and unloading flexibility offered by their on-board cranes , while the cargo carrying capacity approaches that of panamax , which ranges in size between 75,000 and 83,000 dwt and which require onshore facilities to load and offload their cargoes . we believe that the cargo handling flexibility and cargo carrying capacity of the supramax/ultramax class makes it the preferred type of ship attractive to potential charterers . all 41 of our owned vessels , as of december 31 , 2016 , range in size between 48,000 and 64,000 dwt . we also have one logs-fitted handysize vessel on a long-term charter-in which is roughly 37,000 dwt in size . the supply of dry bulk vessels depends primarily on the level of the orderbook , the fleet age profile , and the operating efficiency of the existing fleet . as of december 2016 , 7 % of the world handymax fleet was 20 years or older , while the newbuilding orderbook stood at 10 % of the ( handymax ) on-the-water fleet . the 41 vessels in our operating fleet have an average age of approximately 8.7 years as of december 31 , 2016. the typical trading life of a handymax vessel is approximately 25 years . 59 the handymax market the dry bulk market was extremely challenged during 2016 due to elevated supply growth , especially during the first half of the year , and weak cargo demand , highlighted by reduced coal shipments to china and weather-related issues in brazil and australia that temporarily reduced iron ore output . the baltic supramax index ( โ bsi โ ) , a dry bulk index based on 52,000 dwt vessels , averaged $ 6,235 for 2016 , a historic low . during 2016 , the bsi reached an all-time low of $ 2,544 in february and started to recover from there , averaging $ 5,795 for the second quarter , $ 7,064 for the third quarter , and $ 8,317 for the fourth quarter . the improvement in rates during the year was driven by increased demolition ( of older vessels ) , lower supply growth , and higher iron ore and coal flows into china . looking ahead , newbuilding deliveries for 2017 and beyond are expected to be significantly less than in recent prior years , with the orderbook currently standing at under 10 % of the existing fleet . within this figure , there is broad consensus that a meaningful number of these vessels will be delayed and or may never be built , given the state of construction of the vessels themselves and or financial situation in part due to an improving macroeconomic environment . drybulk trade , which tends to be correlated to global gdp , is expected to improve by over 2 % , driven by increased flows in iron ore , coal , and minor bulks . 60 critical accounting policies and estimates the discussion and analysis of our financial condition and results of operations is based upon our consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states ( โ u.s . gaap โ or โ gaap โ ) . the preparation of those financial statements requires us to make estimates and judgments that affect the reported amounts of assets and liabilities , revenues and expenses and related disclosure of contingent assets and liabilities at the date of our financial statements . actual results may differ from these estimates under different assumptions and conditions . critical accounting policies are those that reflect significant judgments of uncertainties and potentially result in materially different results under different assumptions and conditions . we have described below what we believe are our most critical accounting policies , because they generally involve a comparatively higher degree of judgment in their application . for a description of all our accounting policies , see note 4 . โ significant accounting policies โ to our consolidated financial statements included herein . revenue recognition revenues are generated from time charters , voyage charters and commercial pool arrangements . time charter revenues are recognized on a straight-line basis over the term of the respective time charter agreements as service is provided . voyage revenues for cargo transportation are recognized ratably over the estimated relative transit time of each voyage . voyage revenue is deemed to commence upon the completion of discharge of the previous charterer 's cargo and is deemed to end upon the completion of discharge of the current cargo , provided an agreed non-cancelable charter between the company and the charterer is in existence , the charter rate is fixed and determinable , and collectability is reasonably assured . revenue under voyage charters will not be recognized until a charter has been agreed even if the vessel has discharged its previous cargo and is proceeding to an anticipated port of loading . revenues generated from time charters linked to the baltic supramax index and or revenues generated from profit sharing arrangements are recognized over the term of the respective time charter agreements as service is provided and the profit sharing is fixed and determinable . for the company 's vessel operating in a commercial pool , revenues and voyage expenses are pooled and allocated to each pool participant under a time charter agreement basis in accordance with an agreed-upon formula . the formula in the pool agreement for allocating gross shipping revenues net of voyage expenses is based on points allocated to participants ' vessels based on cargo carrying capacity and other technical characteristics , such as speed
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2,530 | generally , success fees accrue at a set rate and are contractually due upon a change of control in the business . some debt securities have deferred interest whereby some portion of the interest payment is added to the principal balance so that the interest is paid , together with the principal , at maturity . this form of deferred interest is often called paid-in-kind ( ยpikย ) interest . 40 typically , our equity investments consist of common stock , preferred stock , limited liability company interests , or warrants to purchase the foregoing . often , these equity investments occur in connection with our original investment , recapitalizing a business , or refinancing existing debt . we are externally managed by our investment advisor , gladstone management corporation ( the ยadviserย ) , a securities and exchange commission ( ยsecย ) registered investment adviser and an affiliate of ours , pursuant to an investment advisory and management agreement ( the ยadvisory agreementย ) . the adviser manages our investment activities . we have also entered into an administration agreement ( the ยadministration agreementย ) with gladstone administration , llc ( the ยadministratorย ) , an affiliate of ours and the adviser , whereby we pay separately for administrative services . our shares of common stock and term preferred stock are traded on the nasdaq global select market ( ยnasdaqย ) under the trading symbols ยgladย and ยgladp , ย respectively . business environment the strength of the global economy and the u.s. economy in particular , continues to be uncertain and volatile . recently , we experienced the first u.s. government shutdown in 17 years along with a stalemate in the u.s. congress over whether to raise the debt ceiling . the u.s. government budget concerns remain until early 2014 when the u.s. congress will revisit the debt ceiling debate again . prior to this recent u.s. fiscal crisis , economic conditions generally appeared to be improving , albeit slowly , since the 2008 recession . we have continued to remain cautious about a long-term economic recovery . the impacts from the 2008 recession in general , and the resulting disruptions in the capital markets in particular , have had lingering effects on our liquidity options and increased our cost of debt and equity capital . many of our portfolio companies , as well as those small and medium-sized companies that we evaluate for investment , are still feeling the adverse impacts of these political and economic conditions , and if these conditions persist , it may affect their ability to repay our loans or engage in a liquidity event , such as a sale , recapitalization or initial public offering . these political and economic conditions could also disproportionately impact some of the industries in which we have invested , causing us to be more vulnerable to losses in our portfolio , which could cause the number of our non-performing assets to increase and the fair market value of our portfolio to decrease . in addition , there has been increased competitive pressure in the bdc and investment company marketplace for senior and senior subordinated debt , resulting in lower yields for increasingly riskier investments . we believe we are in a protracted economic recovery ; however , we do not know if market conditions will continue to improve or if adverse conditions will again intensify , and we do not know the full extent to which the inability of the u.s. government to address its fiscal condition in the near and long term will affect us . if market instability persists or intensifies , we may experience difficulty in raising capital . in summary , we believe that are in a protracted economic recovery , but that the recent u.s. fiscal crisis has temporarily suppressed that recovery . we do not know the full extent to which the impact of the lingering recessionary economic conditions will affect us or our portfolio companies . portfolio activity while conditions remain somewhat challenging in the marketplace , we are seeing a number of new investment opportunities that are consistent with our investment objectives and strategies . during the year ended september 30 , 2013 , we invested in 15 new proprietary and syndicate investments totaling $ 80.4 million ; however , we experienced a net contraction in our overall portfolio of three portfolio companies , primarily due to 14 portfolio companies paying off early during the year , for an aggregate of $ 79.6 million in unscheduled payoffs . subsequent to september 30 , 2013 , we invested $ 7.0 million in one new proprietary investment , as discussed under ย investment highlights .ย in addition , in july 2012 , the sec granted us an exemptive order that expands our ability to co-invest with certain of our affiliates by permitting us , under certain circumstances , to co-invest with gladstone investment corporation ( ยgladstone investmentย ) and any future business development company or closed-end management investment company that is advised by the adviser ( or sub-advised by the adviser if it controls the fund ) or any combination of the foregoing subject to the conditions in the sec 's order . we believe this ability to co-invest will enhance our ability to further our investment objectives and strategies . we co-invested with gladstone investment in two new proprietary investmentsยone in each of may and october 2013 , as discussed under ย investment highlights .ย 41 regulatory compliance challenges in the current market are intensified for us by certain regulatory limitations under the code and the 1940 act , as well as contractual restrictions under the agreement governing our $ 137.0 million revolving line of credit ( our ยcredit facility , ย described more fully under ย revolving credit facility ย below ) that further constrain our ability to access the capital markets . to qualify to be taxed as a ric , we must distribute at least 90.0 story_separator_special_tag as of september 30 , 2012 , six portfolio companies were either fully or partially on non-accrual status with an aggregate debt cost basis of approximately $ 61.1 million , or 17.3 % of the cost basis of all debt investments in our portfolio . during the year ended september 30 , 2013 , we sold our investments in two portfolio companies that had been on non-accrual status , wrote off our investment in one portfolio company that had been on non-accrual status , and sold substantially all of the assets of one portfolio company that had been on non-accrual status . see ย overview ย investment highlights ย for more information . there were no portfolio companies that changed from accrual status to non-accrual during the year ended september 30 , 2013. other income for the years ended september 30 , 2013 and 2012 , consisted primarily of success fees , which we generally recognize when payment is received . during the year ended september 30 , 2013 , we received an aggregate of $ 1.7 million in success fees , which resulted from the early payoffs at par of westlake for $ 1.1 million in december 2012 and cmi for $ 0.6 million in september 2013. in addition , we received prepayment fees in the aggregate of $ 0.9 million during the year ended september 30 , 2013 , which resulted from the early payoffs of eight of our syndicate investments at par during the year . during the year ended september 30 , 2012 , we received an aggregate of $ 4.0 million in success fees , which resulted from the early payoffs at par of winchester electronics ( ยwinchesterย ) for $ 1.2 million , global materials technologies ( ยgmtย ) for $ 1.1 million , rcs management holding co. ( ยrcsย ) for $ 0.9 million and northern contours , inc. ( ยnorthern contoursย ) for $ 0.8 million . in addition , we received prepayment fees in the aggregate of $ 0.2 million during the year ended september 30 , 2012 , which resulted from the early payoffs of five of our syndicate investments at par during the year . the following tables list the investment income for our five largest portfolio company investments at fair value during the respective years : replace_table_token_9_th ( a ) new investment added in december 2012 ( b ) investment exited in december 2012 . ( c ) new investment added in may 2012 . ( d ) investment exited in september 2013 . 46 operating expenses operating expenses , net of credits from the adviser , decreased for the year ended september 30 , 2013 , by $ 3.5 million , or 16.5 % , as compared to the year ended september 30 , 2012. this decrease was primarily due to a decrease in interest expense on our credit facility , other expenses and incentive fees , partially offset by an increase in dividend expense on our term preferred stock . interest expense decreased by $ 1.2 million for the year ended september 30 , 2013 , as compared to the prior year , due primarily to decreased borrowings under our credit facility , resulting from a net contraction in the size of our portfolio . the weighted average balance outstanding on our credit facility during the year ended september 30 , 2013 was approximately $ 53.2 million , as compared to $ 72.2 million in the prior year , a decrease of 26.3 % . additionally , the decrease in interest expense for the year ended september 30 , 2013 , as compared the prior year , was due to the january 2013 amendment of our credit facility to remove the libor minimum of 1.5 % on advances . other expenses decreased $ 1.1 million for the year ended september 30 , 2013 , as compared to the prior year , primarily due to the receipt of certain reimbursable deal expenses in the current year , as well as a decrease in legal expenses incurred in connection with troubled loans during the year ended september 30 , 2013 , as compared to the year ended september 30 , 2012. the decrease of $ 1.1 million in net incentive fees earned by the adviser during the year ended september 30 , 2013 , as compared to the prior year , was primarily due to the increase in the incentive fee waiver in the current year . incentive fees were earned by the adviser during the year ended september 30 , 2013 and 2012 ; however , the incentive fees were partially waived by the adviser to ensure distributions to stockholders were covered entirely by net investment income during both years . the base management fee , incentive fee and associated credits are computed quarterly , as described under ย investment advisory and management agreement ย in note 4 of the notes to our accompanying consolidated financial statements and are summarized in the table below : replace_table_token_10_th ( a ) average total assets subject to the base management fee is defined as total assets , including investments made with proceeds of borrowings , less any uninvested cash or cash equivalents resulting from borrowings , valued at the end of the four most recently completed quarters within the respective years and appropriately adjusted for any share issuances or repurchases during the applicable year . ( b ) reflected , in total , as a line item on our accompanying consolidated statement of operations located elsewhere in this report . 47 realized loss and unrealized appreciation ( depreciation ) on investments realized losses for the year ended september 30 , 2013 , we recorded a net realized loss on investments of $ 5.2 million , which primarily consisted of realized losses of $ 2.9 million related to the sale of kch , $ 2.4 million related to the sale of viapack and $ 0.9 million related to the write off
| liquidity and capital resources operating activities our cash flows from operations generally come from the interest payments on debt securities that we receive from our portfolio companies , as well as cash proceeds received through repayments or sales of our investments . we utilize this cash primarily to pay interest payments on our credit facility , distributions to our stockholders , management fees to the adviser , and other operating expenses . net cash provided by operating activities for the year ended september 30 , 2013 , was $ 32.1 million as compared to $ 26.2 million for the year ended september 30 , 2012. the increase in cash from operating activities was primarily due to the increase in repayments on investments , partially offset by an increase in purchases of investments during the year ended september 30 , 2013. for the year ended september 30 , 2011 , net cash used in operating activities was $ 68.4 million , which was primarily driven by increased new investment activity during fiscal year 2011. as of september 30 , 2013 , we had loans to , syndicated participations in and or equity investments in 47 private companies , with an aggregate cost basis of approximately $ 332.3 million . as of september 30 , 2012 , we had loans to , syndicated participations in and or equity investments in 50 private companies , with an aggregate cost basis of approximately $ 365.0 million . the following table summarizes our total portfolio investment activity during the years ended september 30 , 2013 and 2012 : replace_table_token_21_th ( a ) pik interest is a non-cash source of income and is calculated at the contractual rate stated in a loan agreement and added to the principal balance of a loan .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources operating activities our cash flows from operations generally come from the interest payments on debt securities that we receive from our portfolio companies , as well as cash proceeds received through repayments or sales of our investments . we utilize this cash primarily to pay interest payments on our credit facility , distributions to our stockholders , management fees to the adviser , and other operating expenses . net cash provided by operating activities for the year ended september 30 , 2013 , was $ 32.1 million as compared to $ 26.2 million for the year ended september 30 , 2012. the increase in cash from operating activities was primarily due to the increase in repayments on investments , partially offset by an increase in purchases of investments during the year ended september 30 , 2013. for the year ended september 30 , 2011 , net cash used in operating activities was $ 68.4 million , which was primarily driven by increased new investment activity during fiscal year 2011. as of september 30 , 2013 , we had loans to , syndicated participations in and or equity investments in 47 private companies , with an aggregate cost basis of approximately $ 332.3 million . as of september 30 , 2012 , we had loans to , syndicated participations in and or equity investments in 50 private companies , with an aggregate cost basis of approximately $ 365.0 million . the following table summarizes our total portfolio investment activity during the years ended september 30 , 2013 and 2012 : replace_table_token_21_th ( a ) pik interest is a non-cash source of income and is calculated at the contractual rate stated in a loan agreement and added to the principal balance of a loan .
```
Suspicious Activity Report : generally , success fees accrue at a set rate and are contractually due upon a change of control in the business . some debt securities have deferred interest whereby some portion of the interest payment is added to the principal balance so that the interest is paid , together with the principal , at maturity . this form of deferred interest is often called paid-in-kind ( ยpikย ) interest . 40 typically , our equity investments consist of common stock , preferred stock , limited liability company interests , or warrants to purchase the foregoing . often , these equity investments occur in connection with our original investment , recapitalizing a business , or refinancing existing debt . we are externally managed by our investment advisor , gladstone management corporation ( the ยadviserย ) , a securities and exchange commission ( ยsecย ) registered investment adviser and an affiliate of ours , pursuant to an investment advisory and management agreement ( the ยadvisory agreementย ) . the adviser manages our investment activities . we have also entered into an administration agreement ( the ยadministration agreementย ) with gladstone administration , llc ( the ยadministratorย ) , an affiliate of ours and the adviser , whereby we pay separately for administrative services . our shares of common stock and term preferred stock are traded on the nasdaq global select market ( ยnasdaqย ) under the trading symbols ยgladย and ยgladp , ย respectively . business environment the strength of the global economy and the u.s. economy in particular , continues to be uncertain and volatile . recently , we experienced the first u.s. government shutdown in 17 years along with a stalemate in the u.s. congress over whether to raise the debt ceiling . the u.s. government budget concerns remain until early 2014 when the u.s. congress will revisit the debt ceiling debate again . prior to this recent u.s. fiscal crisis , economic conditions generally appeared to be improving , albeit slowly , since the 2008 recession . we have continued to remain cautious about a long-term economic recovery . the impacts from the 2008 recession in general , and the resulting disruptions in the capital markets in particular , have had lingering effects on our liquidity options and increased our cost of debt and equity capital . many of our portfolio companies , as well as those small and medium-sized companies that we evaluate for investment , are still feeling the adverse impacts of these political and economic conditions , and if these conditions persist , it may affect their ability to repay our loans or engage in a liquidity event , such as a sale , recapitalization or initial public offering . these political and economic conditions could also disproportionately impact some of the industries in which we have invested , causing us to be more vulnerable to losses in our portfolio , which could cause the number of our non-performing assets to increase and the fair market value of our portfolio to decrease . in addition , there has been increased competitive pressure in the bdc and investment company marketplace for senior and senior subordinated debt , resulting in lower yields for increasingly riskier investments . we believe we are in a protracted economic recovery ; however , we do not know if market conditions will continue to improve or if adverse conditions will again intensify , and we do not know the full extent to which the inability of the u.s. government to address its fiscal condition in the near and long term will affect us . if market instability persists or intensifies , we may experience difficulty in raising capital . in summary , we believe that are in a protracted economic recovery , but that the recent u.s. fiscal crisis has temporarily suppressed that recovery . we do not know the full extent to which the impact of the lingering recessionary economic conditions will affect us or our portfolio companies . portfolio activity while conditions remain somewhat challenging in the marketplace , we are seeing a number of new investment opportunities that are consistent with our investment objectives and strategies . during the year ended september 30 , 2013 , we invested in 15 new proprietary and syndicate investments totaling $ 80.4 million ; however , we experienced a net contraction in our overall portfolio of three portfolio companies , primarily due to 14 portfolio companies paying off early during the year , for an aggregate of $ 79.6 million in unscheduled payoffs . subsequent to september 30 , 2013 , we invested $ 7.0 million in one new proprietary investment , as discussed under ย investment highlights .ย in addition , in july 2012 , the sec granted us an exemptive order that expands our ability to co-invest with certain of our affiliates by permitting us , under certain circumstances , to co-invest with gladstone investment corporation ( ยgladstone investmentย ) and any future business development company or closed-end management investment company that is advised by the adviser ( or sub-advised by the adviser if it controls the fund ) or any combination of the foregoing subject to the conditions in the sec 's order . we believe this ability to co-invest will enhance our ability to further our investment objectives and strategies . we co-invested with gladstone investment in two new proprietary investmentsยone in each of may and october 2013 , as discussed under ย investment highlights .ย 41 regulatory compliance challenges in the current market are intensified for us by certain regulatory limitations under the code and the 1940 act , as well as contractual restrictions under the agreement governing our $ 137.0 million revolving line of credit ( our ยcredit facility , ย described more fully under ย revolving credit facility ย below ) that further constrain our ability to access the capital markets . to qualify to be taxed as a ric , we must distribute at least 90.0 story_separator_special_tag as of september 30 , 2012 , six portfolio companies were either fully or partially on non-accrual status with an aggregate debt cost basis of approximately $ 61.1 million , or 17.3 % of the cost basis of all debt investments in our portfolio . during the year ended september 30 , 2013 , we sold our investments in two portfolio companies that had been on non-accrual status , wrote off our investment in one portfolio company that had been on non-accrual status , and sold substantially all of the assets of one portfolio company that had been on non-accrual status . see ย overview ย investment highlights ย for more information . there were no portfolio companies that changed from accrual status to non-accrual during the year ended september 30 , 2013. other income for the years ended september 30 , 2013 and 2012 , consisted primarily of success fees , which we generally recognize when payment is received . during the year ended september 30 , 2013 , we received an aggregate of $ 1.7 million in success fees , which resulted from the early payoffs at par of westlake for $ 1.1 million in december 2012 and cmi for $ 0.6 million in september 2013. in addition , we received prepayment fees in the aggregate of $ 0.9 million during the year ended september 30 , 2013 , which resulted from the early payoffs of eight of our syndicate investments at par during the year . during the year ended september 30 , 2012 , we received an aggregate of $ 4.0 million in success fees , which resulted from the early payoffs at par of winchester electronics ( ยwinchesterย ) for $ 1.2 million , global materials technologies ( ยgmtย ) for $ 1.1 million , rcs management holding co. ( ยrcsย ) for $ 0.9 million and northern contours , inc. ( ยnorthern contoursย ) for $ 0.8 million . in addition , we received prepayment fees in the aggregate of $ 0.2 million during the year ended september 30 , 2012 , which resulted from the early payoffs of five of our syndicate investments at par during the year . the following tables list the investment income for our five largest portfolio company investments at fair value during the respective years : replace_table_token_9_th ( a ) new investment added in december 2012 ( b ) investment exited in december 2012 . ( c ) new investment added in may 2012 . ( d ) investment exited in september 2013 . 46 operating expenses operating expenses , net of credits from the adviser , decreased for the year ended september 30 , 2013 , by $ 3.5 million , or 16.5 % , as compared to the year ended september 30 , 2012. this decrease was primarily due to a decrease in interest expense on our credit facility , other expenses and incentive fees , partially offset by an increase in dividend expense on our term preferred stock . interest expense decreased by $ 1.2 million for the year ended september 30 , 2013 , as compared to the prior year , due primarily to decreased borrowings under our credit facility , resulting from a net contraction in the size of our portfolio . the weighted average balance outstanding on our credit facility during the year ended september 30 , 2013 was approximately $ 53.2 million , as compared to $ 72.2 million in the prior year , a decrease of 26.3 % . additionally , the decrease in interest expense for the year ended september 30 , 2013 , as compared the prior year , was due to the january 2013 amendment of our credit facility to remove the libor minimum of 1.5 % on advances . other expenses decreased $ 1.1 million for the year ended september 30 , 2013 , as compared to the prior year , primarily due to the receipt of certain reimbursable deal expenses in the current year , as well as a decrease in legal expenses incurred in connection with troubled loans during the year ended september 30 , 2013 , as compared to the year ended september 30 , 2012. the decrease of $ 1.1 million in net incentive fees earned by the adviser during the year ended september 30 , 2013 , as compared to the prior year , was primarily due to the increase in the incentive fee waiver in the current year . incentive fees were earned by the adviser during the year ended september 30 , 2013 and 2012 ; however , the incentive fees were partially waived by the adviser to ensure distributions to stockholders were covered entirely by net investment income during both years . the base management fee , incentive fee and associated credits are computed quarterly , as described under ย investment advisory and management agreement ย in note 4 of the notes to our accompanying consolidated financial statements and are summarized in the table below : replace_table_token_10_th ( a ) average total assets subject to the base management fee is defined as total assets , including investments made with proceeds of borrowings , less any uninvested cash or cash equivalents resulting from borrowings , valued at the end of the four most recently completed quarters within the respective years and appropriately adjusted for any share issuances or repurchases during the applicable year . ( b ) reflected , in total , as a line item on our accompanying consolidated statement of operations located elsewhere in this report . 47 realized loss and unrealized appreciation ( depreciation ) on investments realized losses for the year ended september 30 , 2013 , we recorded a net realized loss on investments of $ 5.2 million , which primarily consisted of realized losses of $ 2.9 million related to the sale of kch , $ 2.4 million related to the sale of viapack and $ 0.9 million related to the write off
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2,531 | timber revenue in 2015 was earned under a 2014 stumpage agreement which expires in june , 2016 internal maintenance programs for age class timber and storm protection measures . surface income decreased by $ 212,319 from 2014. surface income includes income from farm leases , right of way grants , hunting leases and other surface leases . this decrease was primarily due to two right of way agreements executed during 2014 which are not recurring revenue . outlook for fiscal year 2016 the company continues to actively search for lands that meet our criteria of timberland with mineral potential . during 2015 , the company purchased 200 acres of timberland and reviewed over 6,000 acres for potential acquisition . with the significant drop in oil and gas prices , the company anticipates that finding acceptable land at reasonable fair values during 2016 is likely . the company may consider land purchases outside of southwest louisiana . 6 the average price per bbl and mcf has dropped significantly during 2015 and the prices in the last quarter of 2015 were the lowest for the year . the company expects oil and gas revenues to continue to be depressed during 2016. due to these low average prices , the company anticipates producers will decrease their exploration and production expenditures in 2016. the company anticipates 2016 oil and gas revenues to be equal to or less than 2015 revenues . the company is actively marketing it timber and believes that it will be successful in executing stumpage agreement ( s ) during 2016. the company anticipates higher timber revenues in 2016. the company believes the potential for increased surface revenue in 2016 is likely due to the economic activity in southwest louisiana . however , at this time the company is not able to quantify the increased revenue potential . story_separator_special_tag commission 's ( โ coso โ ) internal control - integrated framework ( 2013 ) in assessing the effectiveness of the company 's icfr . management shall determine icfr ineffective if a material weakness exists in the controls . management has assessed the company 's icfr as effective as of december 31 , 2015. this annual report does not include an attestation report of the company 's registered public accounting firm regarding internal control over financial reporting . management 's report was not subject to attestation by the company 's registered public accounting firm pursuant to rules of the securities and exchange commission that permit the company to provide only management 's report in this annual report . during the quarter ending december 31 , 2015 , the company 's management followed the coso internal control - integrated framework ( 2013 ) when assessing the icfr . during the quarter ending december 31 , 2015 , there have been no changes in the company 's internal control over financial reporting that has materially affected or is reasonably likely to affect , the company 's internal control over financial reporting . item 9b . other information none . 9 part iii item 10. directors , executive officers , promoters and control persons ; compliance with section 16 ( a ) of the exchange act the information required by item 10 as to directors , nominees for directors , reports under section 16 of the securities exchange act of 1934 , the registrant 's audit committee and an audit committee financial expert is included in the registrant 's definitive proxy statement to be filed pursuant to section 14 ( a ) of the securities exchange act of 1934 and is incorporated herein by reference . executive officers of registrant are as follows : name age position with registrant brian r. jones 55 president , treasurer and director charles d. viccellio 82 secretary and director the occupations of such executive officers during the last five years and other principal affiliations are : name occupations brian r. jones president since april 25 , 2013 , treasurer and director since december 1 , 2006 ; managing member of brian r. jones cpa , llc . charles d. viccellio secretary since 1997 and director since 1996. retired attorney from the law firm of stockwell , sievert , viccellio , clements & shaddock , llp . there are no family relationships between any of our directors , except mrs. leach and mrs. werner are mother and daughter , and executive officers or any arrangement or understanding between any of our executive officers and any other person pursuant to which any executive officer was appointed to his office . the company has adopted a code of ethics that applies to officers , directors and employees . a copy of the code of ethics will be provided by writing the president at p.o . box 1864 , lake charles , louisiana 70602 . 10 item 11. executive compensation the information required by item 11 is included in the registrant 's definitive proxy statement to be filed pursuant to section 14 ( a ) of the securities and exchange act of 1934 and is incorporated herein by reference . item 12. security ownership of certain beneficial owners and management and related stockholder matters the information required by item 12 is included in the registrant 's definitive proxy statement to be filed pursuant to section 14 ( a ) of the securities exchange act of 1934 and is incorporated herein by reference . item 13. certain relationships and related transactions the information required by item 13 is included in the registrant 's definitive proxy statement to be filed pursuant to section 14 ( a ) of the securities and exchange act of 1934 and is incorporated herein by reference . item 14. principal accountants fees and services the information required by item 14 is included in the registrant 's definitive proxy statement to be filed pursuant to section 14 ( a ) of the securities and exchange act of 1934 and is incorporated herein by reference . 11 part iv item 15. exhibits story_separator_special_tag timber revenue in 2015 was earned under a 2014 stumpage agreement which expires in june , 2016 internal maintenance programs for age class timber and storm protection measures . surface income decreased by $ 212,319 from 2014. surface income includes income from farm leases , right of way grants , hunting leases and other surface leases . this decrease was primarily due to two right of way agreements executed during 2014 which are not recurring revenue . outlook for fiscal year 2016 the company continues to actively search for lands that meet our criteria of timberland with mineral potential . during 2015 , the company purchased 200 acres of timberland and reviewed over 6,000 acres for potential acquisition . with the significant drop in oil and gas prices , the company anticipates that finding acceptable land at reasonable fair values during 2016 is likely . the company may consider land purchases outside of southwest louisiana . 6 the average price per bbl and mcf has dropped significantly during 2015 and the prices in the last quarter of 2015 were the lowest for the year . the company expects oil and gas revenues to continue to be depressed during 2016. due to these low average prices , the company anticipates producers will decrease their exploration and production expenditures in 2016. the company anticipates 2016 oil and gas revenues to be equal to or less than 2015 revenues . the company is actively marketing it timber and believes that it will be successful in executing stumpage agreement ( s ) during 2016. the company anticipates higher timber revenues in 2016. the company believes the potential for increased surface revenue in 2016 is likely due to the economic activity in southwest louisiana . however , at this time the company is not able to quantify the increased revenue potential . story_separator_special_tag commission 's ( โ coso โ ) internal control - integrated framework ( 2013 ) in assessing the effectiveness of the company 's icfr . management shall determine icfr ineffective if a material weakness exists in the controls . management has assessed the company 's icfr as effective as of december 31 , 2015. this annual report does not include an attestation report of the company 's registered public accounting firm regarding internal control over financial reporting . management 's report was not subject to attestation by the company 's registered public accounting firm pursuant to rules of the securities and exchange commission that permit the company to provide only management 's report in this annual report . during the quarter ending december 31 , 2015 , the company 's management followed the coso internal control - integrated framework ( 2013 ) when assessing the icfr . during the quarter ending december 31 , 2015 , there have been no changes in the company 's internal control over financial reporting that has materially affected or is reasonably likely to affect , the company 's internal control over financial reporting . item 9b . other information none . 9 part iii item 10. directors , executive officers , promoters and control persons ; compliance with section 16 ( a ) of the exchange act the information required by item 10 as to directors , nominees for directors , reports under section 16 of the securities exchange act of 1934 , the registrant 's audit committee and an audit committee financial expert is included in the registrant 's definitive proxy statement to be filed pursuant to section 14 ( a ) of the securities exchange act of 1934 and is incorporated herein by reference . executive officers of registrant are as follows : name age position with registrant brian r. jones 55 president , treasurer and director charles d. viccellio 82 secretary and director the occupations of such executive officers during the last five years and other principal affiliations are : name occupations brian r. jones president since april 25 , 2013 , treasurer and director since december 1 , 2006 ; managing member of brian r. jones cpa , llc . charles d. viccellio secretary since 1997 and director since 1996. retired attorney from the law firm of stockwell , sievert , viccellio , clements & shaddock , llp . there are no family relationships between any of our directors , except mrs. leach and mrs. werner are mother and daughter , and executive officers or any arrangement or understanding between any of our executive officers and any other person pursuant to which any executive officer was appointed to his office . the company has adopted a code of ethics that applies to officers , directors and employees . a copy of the code of ethics will be provided by writing the president at p.o . box 1864 , lake charles , louisiana 70602 . 10 item 11. executive compensation the information required by item 11 is included in the registrant 's definitive proxy statement to be filed pursuant to section 14 ( a ) of the securities and exchange act of 1934 and is incorporated herein by reference . item 12. security ownership of certain beneficial owners and management and related stockholder matters the information required by item 12 is included in the registrant 's definitive proxy statement to be filed pursuant to section 14 ( a ) of the securities exchange act of 1934 and is incorporated herein by reference . item 13. certain relationships and related transactions the information required by item 13 is included in the registrant 's definitive proxy statement to be filed pursuant to section 14 ( a ) of the securities and exchange act of 1934 and is incorporated herein by reference . item 14. principal accountants fees and services the information required by item 14 is included in the registrant 's definitive proxy statement to be filed pursuant to section 14 ( a ) of the securities and exchange act of 1934 and is incorporated herein by reference . 11 part iv item 15. exhibits
| liquidity and capital resources the company 's current assets totaled $ 6,201,002 and total liabilities equaled $ 347,169 at december 31 , 2015. additional sources of liquidity include the company 's available bank line of credit for $ 5,000,000. in the opinion of management , current cash flow from operations , cash and cash equivalents , investments and the available line of credit are adequate for projected operation and possible land purchases . critical accounting policies the preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods . actual results could differ from those estimates . the most significant accounting estimates inherent in the preparation of our financial statements include the following items : our accounts receivable consist of incomes received after year end for royalties produced prior to year-end . when there are royalties that have not been received at the time of the preparation of the financial statements for months in the prior year , we estimate the amount to be received based on the last month 's royalties that were received from that particular company . we do not maintain an allowance for doubtful accounts because other than the accrual for earned but not received royalties , we have no accounts receivable . the company accounts for income taxes in accordance with asc topic 740 , income taxes , which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities . when land is purchased with standing timber , the cost is divided between land and timber . reforestation costs are capitalized and added to the timber asset account . the timber asset is depleted when the timber is harvested based on the relationship between the carrying value of the timber and the total timber volume estimated to be harvested over the harvest cycle .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources the company 's current assets totaled $ 6,201,002 and total liabilities equaled $ 347,169 at december 31 , 2015. additional sources of liquidity include the company 's available bank line of credit for $ 5,000,000. in the opinion of management , current cash flow from operations , cash and cash equivalents , investments and the available line of credit are adequate for projected operation and possible land purchases . critical accounting policies the preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods . actual results could differ from those estimates . the most significant accounting estimates inherent in the preparation of our financial statements include the following items : our accounts receivable consist of incomes received after year end for royalties produced prior to year-end . when there are royalties that have not been received at the time of the preparation of the financial statements for months in the prior year , we estimate the amount to be received based on the last month 's royalties that were received from that particular company . we do not maintain an allowance for doubtful accounts because other than the accrual for earned but not received royalties , we have no accounts receivable . the company accounts for income taxes in accordance with asc topic 740 , income taxes , which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities . when land is purchased with standing timber , the cost is divided between land and timber . reforestation costs are capitalized and added to the timber asset account . the timber asset is depleted when the timber is harvested based on the relationship between the carrying value of the timber and the total timber volume estimated to be harvested over the harvest cycle .
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Suspicious Activity Report : timber revenue in 2015 was earned under a 2014 stumpage agreement which expires in june , 2016 internal maintenance programs for age class timber and storm protection measures . surface income decreased by $ 212,319 from 2014. surface income includes income from farm leases , right of way grants , hunting leases and other surface leases . this decrease was primarily due to two right of way agreements executed during 2014 which are not recurring revenue . outlook for fiscal year 2016 the company continues to actively search for lands that meet our criteria of timberland with mineral potential . during 2015 , the company purchased 200 acres of timberland and reviewed over 6,000 acres for potential acquisition . with the significant drop in oil and gas prices , the company anticipates that finding acceptable land at reasonable fair values during 2016 is likely . the company may consider land purchases outside of southwest louisiana . 6 the average price per bbl and mcf has dropped significantly during 2015 and the prices in the last quarter of 2015 were the lowest for the year . the company expects oil and gas revenues to continue to be depressed during 2016. due to these low average prices , the company anticipates producers will decrease their exploration and production expenditures in 2016. the company anticipates 2016 oil and gas revenues to be equal to or less than 2015 revenues . the company is actively marketing it timber and believes that it will be successful in executing stumpage agreement ( s ) during 2016. the company anticipates higher timber revenues in 2016. the company believes the potential for increased surface revenue in 2016 is likely due to the economic activity in southwest louisiana . however , at this time the company is not able to quantify the increased revenue potential . story_separator_special_tag commission 's ( โ coso โ ) internal control - integrated framework ( 2013 ) in assessing the effectiveness of the company 's icfr . management shall determine icfr ineffective if a material weakness exists in the controls . management has assessed the company 's icfr as effective as of december 31 , 2015. this annual report does not include an attestation report of the company 's registered public accounting firm regarding internal control over financial reporting . management 's report was not subject to attestation by the company 's registered public accounting firm pursuant to rules of the securities and exchange commission that permit the company to provide only management 's report in this annual report . during the quarter ending december 31 , 2015 , the company 's management followed the coso internal control - integrated framework ( 2013 ) when assessing the icfr . during the quarter ending december 31 , 2015 , there have been no changes in the company 's internal control over financial reporting that has materially affected or is reasonably likely to affect , the company 's internal control over financial reporting . item 9b . other information none . 9 part iii item 10. directors , executive officers , promoters and control persons ; compliance with section 16 ( a ) of the exchange act the information required by item 10 as to directors , nominees for directors , reports under section 16 of the securities exchange act of 1934 , the registrant 's audit committee and an audit committee financial expert is included in the registrant 's definitive proxy statement to be filed pursuant to section 14 ( a ) of the securities exchange act of 1934 and is incorporated herein by reference . executive officers of registrant are as follows : name age position with registrant brian r. jones 55 president , treasurer and director charles d. viccellio 82 secretary and director the occupations of such executive officers during the last five years and other principal affiliations are : name occupations brian r. jones president since april 25 , 2013 , treasurer and director since december 1 , 2006 ; managing member of brian r. jones cpa , llc . charles d. viccellio secretary since 1997 and director since 1996. retired attorney from the law firm of stockwell , sievert , viccellio , clements & shaddock , llp . there are no family relationships between any of our directors , except mrs. leach and mrs. werner are mother and daughter , and executive officers or any arrangement or understanding between any of our executive officers and any other person pursuant to which any executive officer was appointed to his office . the company has adopted a code of ethics that applies to officers , directors and employees . a copy of the code of ethics will be provided by writing the president at p.o . box 1864 , lake charles , louisiana 70602 . 10 item 11. executive compensation the information required by item 11 is included in the registrant 's definitive proxy statement to be filed pursuant to section 14 ( a ) of the securities and exchange act of 1934 and is incorporated herein by reference . item 12. security ownership of certain beneficial owners and management and related stockholder matters the information required by item 12 is included in the registrant 's definitive proxy statement to be filed pursuant to section 14 ( a ) of the securities exchange act of 1934 and is incorporated herein by reference . item 13. certain relationships and related transactions the information required by item 13 is included in the registrant 's definitive proxy statement to be filed pursuant to section 14 ( a ) of the securities and exchange act of 1934 and is incorporated herein by reference . item 14. principal accountants fees and services the information required by item 14 is included in the registrant 's definitive proxy statement to be filed pursuant to section 14 ( a ) of the securities and exchange act of 1934 and is incorporated herein by reference . 11 part iv item 15. exhibits story_separator_special_tag timber revenue in 2015 was earned under a 2014 stumpage agreement which expires in june , 2016 internal maintenance programs for age class timber and storm protection measures . surface income decreased by $ 212,319 from 2014. surface income includes income from farm leases , right of way grants , hunting leases and other surface leases . this decrease was primarily due to two right of way agreements executed during 2014 which are not recurring revenue . outlook for fiscal year 2016 the company continues to actively search for lands that meet our criteria of timberland with mineral potential . during 2015 , the company purchased 200 acres of timberland and reviewed over 6,000 acres for potential acquisition . with the significant drop in oil and gas prices , the company anticipates that finding acceptable land at reasonable fair values during 2016 is likely . the company may consider land purchases outside of southwest louisiana . 6 the average price per bbl and mcf has dropped significantly during 2015 and the prices in the last quarter of 2015 were the lowest for the year . the company expects oil and gas revenues to continue to be depressed during 2016. due to these low average prices , the company anticipates producers will decrease their exploration and production expenditures in 2016. the company anticipates 2016 oil and gas revenues to be equal to or less than 2015 revenues . the company is actively marketing it timber and believes that it will be successful in executing stumpage agreement ( s ) during 2016. the company anticipates higher timber revenues in 2016. the company believes the potential for increased surface revenue in 2016 is likely due to the economic activity in southwest louisiana . however , at this time the company is not able to quantify the increased revenue potential . story_separator_special_tag commission 's ( โ coso โ ) internal control - integrated framework ( 2013 ) in assessing the effectiveness of the company 's icfr . management shall determine icfr ineffective if a material weakness exists in the controls . management has assessed the company 's icfr as effective as of december 31 , 2015. this annual report does not include an attestation report of the company 's registered public accounting firm regarding internal control over financial reporting . management 's report was not subject to attestation by the company 's registered public accounting firm pursuant to rules of the securities and exchange commission that permit the company to provide only management 's report in this annual report . during the quarter ending december 31 , 2015 , the company 's management followed the coso internal control - integrated framework ( 2013 ) when assessing the icfr . during the quarter ending december 31 , 2015 , there have been no changes in the company 's internal control over financial reporting that has materially affected or is reasonably likely to affect , the company 's internal control over financial reporting . item 9b . other information none . 9 part iii item 10. directors , executive officers , promoters and control persons ; compliance with section 16 ( a ) of the exchange act the information required by item 10 as to directors , nominees for directors , reports under section 16 of the securities exchange act of 1934 , the registrant 's audit committee and an audit committee financial expert is included in the registrant 's definitive proxy statement to be filed pursuant to section 14 ( a ) of the securities exchange act of 1934 and is incorporated herein by reference . executive officers of registrant are as follows : name age position with registrant brian r. jones 55 president , treasurer and director charles d. viccellio 82 secretary and director the occupations of such executive officers during the last five years and other principal affiliations are : name occupations brian r. jones president since april 25 , 2013 , treasurer and director since december 1 , 2006 ; managing member of brian r. jones cpa , llc . charles d. viccellio secretary since 1997 and director since 1996. retired attorney from the law firm of stockwell , sievert , viccellio , clements & shaddock , llp . there are no family relationships between any of our directors , except mrs. leach and mrs. werner are mother and daughter , and executive officers or any arrangement or understanding between any of our executive officers and any other person pursuant to which any executive officer was appointed to his office . the company has adopted a code of ethics that applies to officers , directors and employees . a copy of the code of ethics will be provided by writing the president at p.o . box 1864 , lake charles , louisiana 70602 . 10 item 11. executive compensation the information required by item 11 is included in the registrant 's definitive proxy statement to be filed pursuant to section 14 ( a ) of the securities and exchange act of 1934 and is incorporated herein by reference . item 12. security ownership of certain beneficial owners and management and related stockholder matters the information required by item 12 is included in the registrant 's definitive proxy statement to be filed pursuant to section 14 ( a ) of the securities exchange act of 1934 and is incorporated herein by reference . item 13. certain relationships and related transactions the information required by item 13 is included in the registrant 's definitive proxy statement to be filed pursuant to section 14 ( a ) of the securities and exchange act of 1934 and is incorporated herein by reference . item 14. principal accountants fees and services the information required by item 14 is included in the registrant 's definitive proxy statement to be filed pursuant to section 14 ( a ) of the securities and exchange act of 1934 and is incorporated herein by reference . 11 part iv item 15. exhibits
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2,532 | beyond our product candidates , we continue to advance and build our discovery pipeline . we are discovering and developing next-generation immunotherapies by leveraging our translational science platform to systematically and comprehensively interrogate cell types within the tumor microenvironment . our broad discovery pipeline includes multiple programs targeting myeloid cells such as macrophages , t regulatory cells and non-immune cells , such as stromal cells . we believe that the use of our translational science platform to efficiently identify novel immuno-oncology targets and advance them from discovery to investigational new drug application , or ind , stage is a sustainable approach that we plan to continually apply across our broad discovery pipeline and target selection process . in august 2020 , we entered into an agreement to exclusively license jtx-1811 to gilead sciences , inc. , or gilead . jtx-1811 is the most recent product candidate to emerge from our translational science platform , and , is a monoclonal antibody that is designed to selectively deplete t regulatory cells in the tumor microenvironment , or tme , by targeting a receptor called ccr8 , which is preferentially expressed on intra-tumoral t regulatory cells . pursuant to our exclusive license agreement with gilead , or the gilead license agreement , we granted gilead a worldwide license to develop , manufacture and commercialize jtx-1811 and certain derivatives thereof , as well as backup antibodies defined within the agreement . concurrently with the license agreement , we entered into a stock purchase agreement with gilead , or the stock purchase agreement , and a registration rights agreement . 54 under the terms of the gilead license agreement and stock purchase agreement , gilead paid us a one-time , non-refundable upfront payment of $ 85.0 million and $ 35.0 million to purchase 5,539,727 shares of our common stock pursuant to the stock purchase agreement . under the terms of the gilead license agreement , we will advance jtx-1811 until the clearance of an ind application or an earlier date specified by gilead , at which time the program will be transitioned to gilead . we are entitled to receive payments from gilead upon the achievement of specified clinical , regulatory and sales milestones , including potential clinical development and regulatory milestone payments up to an aggregate total of $ 510.0 million and potential sales milestone payments up to an aggregate total of $ 175.0 million . we are also eligible to receive tiered royalty payments based on a percentage of annual worldwide net sales ranging from the high-single digits to mid-teens , based on future annual net sales of licensed products , on a licensed product-by-licensed product and country-by-country basis . on july 22 , 2019 , we entered into an exclusive license agreement with celgene , or the celgene license agreement , granting celgene a worldwide and exclusive license to develop , manufacture and commercialize jtx-8064 and certain derivatives thereof , as well as any antibody or other biologic controlled by us that is specifically directed to the lilrb2 receptor . under the terms of the celgene license agreement , celgene paid us a one-time , non-refundable upfront payment of $ 50.0 million . celgene was subsequently acquired by bristol myers squibb , or bms , in november 2019 and the celgene license agreement was terminated effective june 3 , 2020. we now have sole worldwide rights to jtx-8064 , and all of our intellectual property rights pertaining to jtx-8064 and licensed to celgene were reacquired by us . in july 2016 , we entered into a master research and collaboration agreement , or the celgene collaboration agreement , and a series b-1 preferred stock purchase agreement with celgene . under the terms of these agreements , we received a $ 225.0 million upfront cash payment and $ 36.1 million from the sale of 10,448,100 shares of our series b-1 convertible preferred stock , which shares converted into 2,831,463 shares of common stock upon the completion of our initial public offering , or ipo , in 2017. we terminated the celgene collaboration agreement concurrently with entry into the celgene license agreement . since inception , our operations have focused on organizing and staffing our company , business planning , raising capital , developing our translational science platform and conducting research , preclinical studies and clinical trials . we do not have any products approved for sale . we are subject to a number of risks comparable to those of other similar companies , including dependence on key individuals ; the need to develop commercially viable products ; competition from other companies , many of which are larger and better capitalized ; and the need to obtain adequate additional financing to fund the development of our products . we have funded our operations primarily through proceeds received from public offerings and private placements of our stock totaling $ 298.5 million and up-front payments from our celgene and gilead collaboration and license agreements totaling $ 360.0 million . due to our significant research and development expenditures , we have accumulated substantial losses since our inception . as of december 31 , 2020 , we had an accumulated deficit of $ 151.0 million . we expect to incur substantial additional losses in the future as we expand our research and development activities . the spread of covid-19 during 2020 has caused an economic downturn on a global scale . as of february 25 , 2021 , we have not experienced a significant financial impact directly related to the covid-19 pandemic but have experienced some disruptions to clinical operations and to our supply chain . as the pandemic continues to unfold , the extent of its effect on our operational and financial performance will depend in large part on future developments , which can not be predicted with confidence at this time . story_separator_special_tag the evaluation of uncertain tax positions is based on factors , including , but not limited to , changes in the law , the measurement of tax positions taken or expected to be taken in tax returns , the effective settlement of matters subject to audit , new audit activity and changes in facts or circumstances related to a tax position . recent accounting pronouncements see note 2 to our consolidated financial statements included within part iv , item 15 of this annual report on form 10-k for a description of recent accounting pronouncements applicable to our business . results of operations comparison of the years ended december 31 , 2020 and 2019 the following table summarizes our results of operations for the years ended december 31 , 2020 and 2019 : replace_table_token_2_th license and collaboration revenue for the year ended december 31 , 2020 , we recognized $ 62.3 million of license revenue under the gilead license agreement entered into in october 2020. for the year ended december 31 , 2019 , we recognized $ 147.9 million of license and collaboration revenue , which was comprised of $ 50.0 million of license revenue under the celgene license agreement and $ 97.9 million of collaboration revenue under the celgene collaboration agreement . the celgene collaboration agreement was terminated effective july 22 , 2019 , at which time all remaining deferred revenue was recognized as we had no further performance obligations . 59 research and development expenses the following table summarizes our research and development expenses for the years ended december 31 , 2020 and 2019 : replace_table_token_3_th research and development expenses increased by $ 11.6 million from $ 67.1 million for the year ended december 31 , 2019 to $ 78.7 million for the year ended december 31 , 2020. the increase in research and development expenses was primarily attributable to : $ 7.9 million of increased external clinical and regulatory costs primarily attributable to our select clinical trial which commenced in 2020 ; $ 3.2 million of increased external research and development costs primarily attributable to ind-enabling expenses related to jtx-1811 , partially offset by reduced expenses related to jtx-8064 incurred during the year ended december 31 , 2020 ; $ 2.9 million of increased employee compensation costs primarily attributable to increased headcount , merit and bonus expense ; partially offset by $ 0.9 million of decreased other research costs primarily attributable to reduced travel expenses resulting from covid-19 travel limitations ; and $ 0.8 million of decreased lab consumables costs . general and administrative expenses the following table summarizes our general and administrative expenses for the years ended december 31 , 2020 and 2019 : replace_table_token_4_th general and administrative expenses increased by $ 0.8 million from $ 27.9 million for the year ended december 31 , 2019 to $ 28.8 million for the year ended december 31 , 2020. the increase in general and administrative expenses was primarily attributable to $ 1.5 million of increased employee compensation costs related to increased merit and bonus expense for the year ended december 31 , 2020. other income , net other income , net , decreased by $ 2.8 million from $ 4.1 million for the year ended december 31 , 2019 to $ 1.3 million for the year ended december 31 , 2020. the decrease in other income , net is attributable to reduced interest rates due to current market conditions . 60 liquidity and capital resources sources of liquidity we have funded our operations primarily through proceeds received from public offerings and private placements of our stock totaling $ 298.5 million and up-front payments from our celgene and gilead collaboration and license agreements totaling $ 360.0 million . as of december 31 , 2020 , we had cash , cash equivalents and investments of $ 213.2 million . on december 17 , 2019 , we entered into a sales agreement with cowen and company , llc , or cowen , pursuant to which we offered and sold shares of our common stock with an aggregate offering price of up to $ 50.0 million under the atm offering . the sales agreement provides that cowen will be entitled to a sales commission equal to 3.0 % of the gross sales price per share of all shares sold under the atm offering . as of december 31 , 2020 , we had sold an aggregate of 2,522,121 shares under the atm offering at an average price of $ 7.47 per share for net proceeds of $ 18.0 million after deducting sales commissions and offering expenses , of which $ 14.5 million was received during the year ended december 31 , 2020. in january 2021 , we sold an aggregate of 3,156,200 shares at an average price of $ 9.87 per share for net proceeds of $ 30.2 million . consequently , we have completed the sale of all available amounts under the atm offering , of which three investors account for $ 43.1 million of all funds raised ( see note 16 to our consolidated financial statements included within part iv , item 15 of this annual report on form 10-k ) . funding requirements our plan of operation is to continue implementing our business strategy , the research and development of our current product candidates , our preclinical development activities , the expansion of our research pipeline and the enhancement of our internal research and development capabilities . due to the inherently unpredictable nature of preclinical and clinical development and given the early stage of our programs and product candidates , we can not reasonably estimate the costs we will incur and the timelines that will be required to complete development , obtain marketing approval , and commercialize our products , if and when approved . for the same reasons , we are also unable to predict when , if ever , we will generate revenue from product sales or whether , or when , if ever , we may
| cash flows the following table provides information regarding our cash flows for the years ended december 31 , 2020 and 2019 : replace_table_token_5_th cash used in operating activities net cash used in operating activities for the year ended december 31 , 2020 was $ 27.8 million , compared to net cash used in operating activities of $ 30.1 million for the year ended december 31 , 2019. cash used in operating activities decreased by $ 2.3 million primarily due to $ 62.3 million in revenue recognized under the gilead license agreement in 2020 , partially offset by $ 50.0 million in revenue recognized under the celgene license agreement during 2019 and increased operating expenses during the year ended december 31 , 2020. cash provided by investing activities net cash provided by investing activities for the year ended december 31 , 2020 was $ 51.3 million , compared to net cash provided by investing activities of $ 31.4 million for the year ended december 31 , 2019. cash provided by investing activities increased by $19.9 million as cash was reinvested into cash equivalents , as opposed to other short-term and long-term investments , due to current market conditions during the year ended december 31 , 2020. proceeds received from maturities and sales of investments were either re-invested or used to fund operations .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows the following table provides information regarding our cash flows for the years ended december 31 , 2020 and 2019 : replace_table_token_5_th cash used in operating activities net cash used in operating activities for the year ended december 31 , 2020 was $ 27.8 million , compared to net cash used in operating activities of $ 30.1 million for the year ended december 31 , 2019. cash used in operating activities decreased by $ 2.3 million primarily due to $ 62.3 million in revenue recognized under the gilead license agreement in 2020 , partially offset by $ 50.0 million in revenue recognized under the celgene license agreement during 2019 and increased operating expenses during the year ended december 31 , 2020. cash provided by investing activities net cash provided by investing activities for the year ended december 31 , 2020 was $ 51.3 million , compared to net cash provided by investing activities of $ 31.4 million for the year ended december 31 , 2019. cash provided by investing activities increased by $19.9 million as cash was reinvested into cash equivalents , as opposed to other short-term and long-term investments , due to current market conditions during the year ended december 31 , 2020. proceeds received from maturities and sales of investments were either re-invested or used to fund operations .
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Suspicious Activity Report : beyond our product candidates , we continue to advance and build our discovery pipeline . we are discovering and developing next-generation immunotherapies by leveraging our translational science platform to systematically and comprehensively interrogate cell types within the tumor microenvironment . our broad discovery pipeline includes multiple programs targeting myeloid cells such as macrophages , t regulatory cells and non-immune cells , such as stromal cells . we believe that the use of our translational science platform to efficiently identify novel immuno-oncology targets and advance them from discovery to investigational new drug application , or ind , stage is a sustainable approach that we plan to continually apply across our broad discovery pipeline and target selection process . in august 2020 , we entered into an agreement to exclusively license jtx-1811 to gilead sciences , inc. , or gilead . jtx-1811 is the most recent product candidate to emerge from our translational science platform , and , is a monoclonal antibody that is designed to selectively deplete t regulatory cells in the tumor microenvironment , or tme , by targeting a receptor called ccr8 , which is preferentially expressed on intra-tumoral t regulatory cells . pursuant to our exclusive license agreement with gilead , or the gilead license agreement , we granted gilead a worldwide license to develop , manufacture and commercialize jtx-1811 and certain derivatives thereof , as well as backup antibodies defined within the agreement . concurrently with the license agreement , we entered into a stock purchase agreement with gilead , or the stock purchase agreement , and a registration rights agreement . 54 under the terms of the gilead license agreement and stock purchase agreement , gilead paid us a one-time , non-refundable upfront payment of $ 85.0 million and $ 35.0 million to purchase 5,539,727 shares of our common stock pursuant to the stock purchase agreement . under the terms of the gilead license agreement , we will advance jtx-1811 until the clearance of an ind application or an earlier date specified by gilead , at which time the program will be transitioned to gilead . we are entitled to receive payments from gilead upon the achievement of specified clinical , regulatory and sales milestones , including potential clinical development and regulatory milestone payments up to an aggregate total of $ 510.0 million and potential sales milestone payments up to an aggregate total of $ 175.0 million . we are also eligible to receive tiered royalty payments based on a percentage of annual worldwide net sales ranging from the high-single digits to mid-teens , based on future annual net sales of licensed products , on a licensed product-by-licensed product and country-by-country basis . on july 22 , 2019 , we entered into an exclusive license agreement with celgene , or the celgene license agreement , granting celgene a worldwide and exclusive license to develop , manufacture and commercialize jtx-8064 and certain derivatives thereof , as well as any antibody or other biologic controlled by us that is specifically directed to the lilrb2 receptor . under the terms of the celgene license agreement , celgene paid us a one-time , non-refundable upfront payment of $ 50.0 million . celgene was subsequently acquired by bristol myers squibb , or bms , in november 2019 and the celgene license agreement was terminated effective june 3 , 2020. we now have sole worldwide rights to jtx-8064 , and all of our intellectual property rights pertaining to jtx-8064 and licensed to celgene were reacquired by us . in july 2016 , we entered into a master research and collaboration agreement , or the celgene collaboration agreement , and a series b-1 preferred stock purchase agreement with celgene . under the terms of these agreements , we received a $ 225.0 million upfront cash payment and $ 36.1 million from the sale of 10,448,100 shares of our series b-1 convertible preferred stock , which shares converted into 2,831,463 shares of common stock upon the completion of our initial public offering , or ipo , in 2017. we terminated the celgene collaboration agreement concurrently with entry into the celgene license agreement . since inception , our operations have focused on organizing and staffing our company , business planning , raising capital , developing our translational science platform and conducting research , preclinical studies and clinical trials . we do not have any products approved for sale . we are subject to a number of risks comparable to those of other similar companies , including dependence on key individuals ; the need to develop commercially viable products ; competition from other companies , many of which are larger and better capitalized ; and the need to obtain adequate additional financing to fund the development of our products . we have funded our operations primarily through proceeds received from public offerings and private placements of our stock totaling $ 298.5 million and up-front payments from our celgene and gilead collaboration and license agreements totaling $ 360.0 million . due to our significant research and development expenditures , we have accumulated substantial losses since our inception . as of december 31 , 2020 , we had an accumulated deficit of $ 151.0 million . we expect to incur substantial additional losses in the future as we expand our research and development activities . the spread of covid-19 during 2020 has caused an economic downturn on a global scale . as of february 25 , 2021 , we have not experienced a significant financial impact directly related to the covid-19 pandemic but have experienced some disruptions to clinical operations and to our supply chain . as the pandemic continues to unfold , the extent of its effect on our operational and financial performance will depend in large part on future developments , which can not be predicted with confidence at this time . story_separator_special_tag the evaluation of uncertain tax positions is based on factors , including , but not limited to , changes in the law , the measurement of tax positions taken or expected to be taken in tax returns , the effective settlement of matters subject to audit , new audit activity and changes in facts or circumstances related to a tax position . recent accounting pronouncements see note 2 to our consolidated financial statements included within part iv , item 15 of this annual report on form 10-k for a description of recent accounting pronouncements applicable to our business . results of operations comparison of the years ended december 31 , 2020 and 2019 the following table summarizes our results of operations for the years ended december 31 , 2020 and 2019 : replace_table_token_2_th license and collaboration revenue for the year ended december 31 , 2020 , we recognized $ 62.3 million of license revenue under the gilead license agreement entered into in october 2020. for the year ended december 31 , 2019 , we recognized $ 147.9 million of license and collaboration revenue , which was comprised of $ 50.0 million of license revenue under the celgene license agreement and $ 97.9 million of collaboration revenue under the celgene collaboration agreement . the celgene collaboration agreement was terminated effective july 22 , 2019 , at which time all remaining deferred revenue was recognized as we had no further performance obligations . 59 research and development expenses the following table summarizes our research and development expenses for the years ended december 31 , 2020 and 2019 : replace_table_token_3_th research and development expenses increased by $ 11.6 million from $ 67.1 million for the year ended december 31 , 2019 to $ 78.7 million for the year ended december 31 , 2020. the increase in research and development expenses was primarily attributable to : $ 7.9 million of increased external clinical and regulatory costs primarily attributable to our select clinical trial which commenced in 2020 ; $ 3.2 million of increased external research and development costs primarily attributable to ind-enabling expenses related to jtx-1811 , partially offset by reduced expenses related to jtx-8064 incurred during the year ended december 31 , 2020 ; $ 2.9 million of increased employee compensation costs primarily attributable to increased headcount , merit and bonus expense ; partially offset by $ 0.9 million of decreased other research costs primarily attributable to reduced travel expenses resulting from covid-19 travel limitations ; and $ 0.8 million of decreased lab consumables costs . general and administrative expenses the following table summarizes our general and administrative expenses for the years ended december 31 , 2020 and 2019 : replace_table_token_4_th general and administrative expenses increased by $ 0.8 million from $ 27.9 million for the year ended december 31 , 2019 to $ 28.8 million for the year ended december 31 , 2020. the increase in general and administrative expenses was primarily attributable to $ 1.5 million of increased employee compensation costs related to increased merit and bonus expense for the year ended december 31 , 2020. other income , net other income , net , decreased by $ 2.8 million from $ 4.1 million for the year ended december 31 , 2019 to $ 1.3 million for the year ended december 31 , 2020. the decrease in other income , net is attributable to reduced interest rates due to current market conditions . 60 liquidity and capital resources sources of liquidity we have funded our operations primarily through proceeds received from public offerings and private placements of our stock totaling $ 298.5 million and up-front payments from our celgene and gilead collaboration and license agreements totaling $ 360.0 million . as of december 31 , 2020 , we had cash , cash equivalents and investments of $ 213.2 million . on december 17 , 2019 , we entered into a sales agreement with cowen and company , llc , or cowen , pursuant to which we offered and sold shares of our common stock with an aggregate offering price of up to $ 50.0 million under the atm offering . the sales agreement provides that cowen will be entitled to a sales commission equal to 3.0 % of the gross sales price per share of all shares sold under the atm offering . as of december 31 , 2020 , we had sold an aggregate of 2,522,121 shares under the atm offering at an average price of $ 7.47 per share for net proceeds of $ 18.0 million after deducting sales commissions and offering expenses , of which $ 14.5 million was received during the year ended december 31 , 2020. in january 2021 , we sold an aggregate of 3,156,200 shares at an average price of $ 9.87 per share for net proceeds of $ 30.2 million . consequently , we have completed the sale of all available amounts under the atm offering , of which three investors account for $ 43.1 million of all funds raised ( see note 16 to our consolidated financial statements included within part iv , item 15 of this annual report on form 10-k ) . funding requirements our plan of operation is to continue implementing our business strategy , the research and development of our current product candidates , our preclinical development activities , the expansion of our research pipeline and the enhancement of our internal research and development capabilities . due to the inherently unpredictable nature of preclinical and clinical development and given the early stage of our programs and product candidates , we can not reasonably estimate the costs we will incur and the timelines that will be required to complete development , obtain marketing approval , and commercialize our products , if and when approved . for the same reasons , we are also unable to predict when , if ever , we will generate revenue from product sales or whether , or when , if ever , we may
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2,533 | service revenues on the consolidated statements of operations include revenues from maintenance contracts , repair , installation , software and maintenance subscription arrangements and professional services . rimage has no long-term debt and does not require significant capital investment as all fabrication of its products is outsourced to vendors . results of operations revenues . the table below describes rimage 's revenues by segment and product category ( in thousands ) : replace_table_token_8_th total revenues were $ 79.4 million for 2012 , reflecting a 5.0 % reduction from total revenues of $ 83.6 million in 2011 , which decreased 5.7 % from total revenues of $ 88.7 million in 2010 . the $ 4.2 million decline in total revenues from 2011 to 2012 reflects a $ 12.3 million reduction in disc publishing product line revenues , partially offset by an $ 8.1 million increase in revenues generated by the enterprise content distribution software business . consolidated product revenues decreased $ 9.2 million from the prior year , while consolidated service revenues increased $ 5.0 million . in the aggregate , currency fluctuations decreased consolidated revenues for the year ended december 31 , 2012 by $ 1.7 million , or 2 % . the $ 12.3 million decrease in disc publishing revenues from 2011 to 2012 consists of declines of $ 6.6 million and $ 6.2 million in equipment revenues and consumables and parts revenues , respectively , partially offset by a $ 0.6 million increase in service revenues . the decrease in disc publishing equipment revenues was driven by sales declines in both europe and the u.s. sales to the company 's european channel partners were negatively impacted by continued economic challenges impacting european markets , increased competition and the negative impact of foreign currency fluctuations . equipment sales in the u.s. were negatively impacted by a significant sale to the government sector in last year 's third quarter that did not reoccur in the current year , as well as reduced sales in the company 's u.s. retail market , where sales can fluctuate significantly between periods . the 26 decline in u.s. consumable sales in the current year was primarily due to decreased usage of consumable products by the company 's retail customers and other segments of the company 's customer base . the $ 8.1 million increase in revenues generated by the enterprise content distribution software business from 2011 to 2012 was driven by the inclusion of qumu operations for a full year in 2012 compared to the post-acquisition period subsequent to october 10 , 2011 for the prior year , and also the closing and fulfillment of several large enterprise sales contracts in the last half of 2012. the increase in revenues consisted of $ 3.6 million in software , software on server appliances and software-enabled devices and $ 4.4 million in services , comprised of software maintenance contracts , subscription licenses and professional services . during the second quarter of 2012 , the company announced that qumu had partnered with one of its key managed service providers to close a multi-year , multi-million dollar contract with a fortune 50 corporation . the company will recognize revenue related to this transaction over the term of the agreement and began recognizing revenue in the third quarter of 2012. qumu continued to build sales momentum in the last half of 2012 with several new enterprise customers , ending the year with a contracted commitment backlog of $ 12.7 million . the company defines contracted commitments as the dollar value of signed customer purchase commitments . the $ 5.1 million decline in total revenues from 2010 to 2011 reflects a $ 6.9 million reduction in disc publishing product line revenues , partially offset by $ 1.8 million in new revenues generated by the enterprise content distribution software business as a result of the company 's acquisition of qumu effective october 10 , 2011. the $ 5.1 million decrease in total revenues consists of a $ 7.6 million decrease in product revenues and a $ 2.5 million increase in service revenues . the aggregate decline in product revenues reflects an $ 8.3 million reduction in sales of disc publishing products , partially offset by $ 0.7 million in new product revenues generated by the enterprise content distribution software product line . the increase in total service revenues resulted from an increase in disc publishing revenues of $ 1.4 million and new service revenues of $ 1.1 million generated from the enterprise content distribution software product line . foreign currency fluctuations increased 2011 consolidated revenues by $ 1.4 million relative to 2010. the $ 8.3 million reduction in product revenues in the disc publishing product line in 2011 as compared to the prior year reflects a $ 10.4 million reduction in equipment revenues , partially offset by a $ 2.1 million increase in consumables and parts sales . the decrease in equipment sales reflects declines in the volume of professional series and desktop series equipment sales of $ 10.0 million and $ 0.8 million , respectively , partially offset by an increase in sales of producer series equipment of $ 0.4 million . the reduction in sales of professional series equipment was largely driven by an $ 8.9 million decline in sales of these products in the u.s. retail market segment , due primarily to the completion in the first quarter of 2011 of a multi-system sales agreement with a retail customer obtained in the second quarter of 2010. a $ 1.4 million sale to a federal law enforcement agency in the third quarter of 2010 and a reduced volume of sales in europe also contributed to the decline in professional series equipment revenues as compared to the prior year . the increase in sales of producer series products was primarily impacted by a $ 1.1 million sale in the third quarter to a federal law enforcement agency and also sales to a u.s. retail customer in the second quarter . story_separator_special_tag augmenting the impact of lower effective yields in 2012 and 2011 was a reduction in cash equivalent and marketable securities balances , largely impacted by the company 's use of approximately $ 39 million in cash to acquire qumu in october 2011. other income for the year ended december 31 , 2012 also included a net loss on foreign currency transactions of $ 0.1 million . see โ liquidity and capital resources โ below for a discussion of changes in cash levels . income taxes . the provision for income taxes represents federal , state , and foreign income taxes on income or loss . for the years ended december 31 , 2012 , 2011 and 2010 , income tax expense amounted to $ 8.8 million , $ 2.0 million and $ 4.5 million , respectively , representing 22.1 % , 42.8 % and 37.2 % of income or loss before income taxes , respectively . the effective tax rate in 2012 includes the impact of a discrete charge for the establishment in the third quarter of 2012 of a valuation allowance against the company 's u.s. deferred tax assets . the company established a valuation allowance as a result of a determination that it was not โ more likely than not โ that the company would realize all deductible temporary differences and loss and credit carryforwards in the near-term future . the increase in the effective tax rate in 2011 relative to 2010 was primarily the result of nondeductible transaction expenses associated with the acquisition of qumu . partially offsetting the unfavorable impact of the above was an increase in the federal research credit resulting from an increase in qualifying development projects , including those introduced as a result of the acquisition of qumu . net income ( loss ) / net income ( loss ) per share . net income ( loss ) for the years ended december 31 , 2012 , 2011 and 2010 amounted to ( $ 48.3 ) million , $ 2.8 million and $ 7.7 million , representing ( 60.8 ) % , 3.4 % and 8.7 % of revenues , respectively . related net income ( loss ) per diluted share amounts were ( $ 4.85 ) in 2012 , $ 0.29 in 2011 and $ 0.80 in 2010 . story_separator_special_tag style= `` line-height:120 % ; padding-top:12px ; text-align : justify ; font-size:11pt ; `` > stemming primarily from a $ 3 . 5 million sale of new maintenance contracts to a retail customer in the prior year under a multi-system sales agreement , followed by a significant volume of retail contract renewals , partially offset by an increase in maintenance contract attachments for the company 's disc publishing systems and an increase in software related revenue deferrals for the company 's enterprise content distribution software business . investing activities consumed net cash of $ 24.5 million and $ 34.5 million in 2012 and 2011 , respectively , and provided net cash of $ 24.1 million in 2010 . the $ 24.5 million net use of cash in 2012 was driven primarily by $ 21.5 million in purchases of marketable securities , net of related maturities and sales . comparatively , maturities of marketable securities increased cash and cash equivalents by $ 8.6 million in 2011 and $ 28.6 million in 2010 . the $ 34.5 million net use of cash in 2011 was driven primarily by the company 's net outlay of $ 39.4 million in cash as part of its acquisition of qumu in october 2011 , and additionally , a $ 2.0 million equity investment in briefcam , a privately-held israeli company that develops video synopsis software for surveillance applications . investing activities in each year also included purchases of property and equipment of $ 2.5 million in 2012 , $ 1.2 million in 2011 , and $ 4.2 million in 2010 . capital expenditures in 2012 consisted primarily of leasehold improvements and office equipment associated with the company 's facility in san bruno , california and the second installment payment of $ 0.3 million for software source code acquired and capitalized by the company 's joint venture in late 2010. capital expenditures in 2011 consisted primarily of the first installment payment of $ 0.4 million for software source code , described above , and office equipment . capital expenditures in 2010 included $ 2.4 million of production tooling capitalized by the company in late 2009 associated with a new product line launched during the first quarter of 2010. remaining capital expenditures during 2010 consisted primarily of costs to support the company 's enhancement of its enterprise resource management system and office equipment . capital expenditures in 2013 are currently expected to amount to less than $ 1 million . financing activities used net cash of $ 15.0 million , $ 10.4 million and $ 0.3 million in 2012 , 2011 and 2010 , respectively . the net use of cash in financing activities in each year was largely attributable to the company 's repurchase of shares of its common stock , requiring $ 9.8 million , $ 6.0 million and $ 1.8 million in 2012 , 2011 and 2010 , respectively . additionally , the company paid dividends on outstanding shares of its common stock of $ 5.2 million and $ 4.6 million in 2012 and 2011 , respectively . financing activities in 2011 and 2010 included proceeds from employee stock plans of $ 0.3 million and $ 0.9 million , respectively . a $ 0.6 million equity investment from the noncontrolling interest in the company 's majority-owned joint venture in china positively impacted financing activities in 2010. a summary of rimage 's contractual obligations for minimum lease payments under non-cancelable operating or capital leases and income tax liabilities under accounting standards codification ( โ asc โ ) topic 740 at december 31 , 2012 is as follows ( in thousands ) : replace_table_token_11_th ( 1 ) amounts include
| liquidity and capital resources the company expects it will be able to maintain current operations and meet anticipated capital expenditure requirements for the foreseeable future through its internally generated funds and cash reserves . at december 31 , 2012 , the company had working capital of $ 56.1 million , down $ 22.1 million from working capital reported at december 31 , 2011 . the primary contributors to the decrease in working capital were the generation of a net loss adjusted for non-cash items during the year ended december 31 , 2012 of $ 4.6 million , repurchases of common stock of $ 9.8 million , payment of $ 5.2 million in dividends , purchases of property and equipment of $ 2.5 million and issuance of a $ 0.5 million note receivable , partially offset by $ 2.7 million of favorable changes in operating assets and liabilities . exclusive of a small amount of capital lease obligations , rimage has no long-term debt and does not require significant capital investment for its ongoing operations as all fabrication of tooling-intensive parts is outsourced to vendors . 30 since october 2010 , the company 's board of directors has approved cumulative common stock repurchases of up to 3,500,000 shares . shares may be purchased at prevailing market prices in the open market or in private transactions , subject to market conditions , share price , trading volume and other factors . the repurchase program may be discontinued at any time .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources the company expects it will be able to maintain current operations and meet anticipated capital expenditure requirements for the foreseeable future through its internally generated funds and cash reserves . at december 31 , 2012 , the company had working capital of $ 56.1 million , down $ 22.1 million from working capital reported at december 31 , 2011 . the primary contributors to the decrease in working capital were the generation of a net loss adjusted for non-cash items during the year ended december 31 , 2012 of $ 4.6 million , repurchases of common stock of $ 9.8 million , payment of $ 5.2 million in dividends , purchases of property and equipment of $ 2.5 million and issuance of a $ 0.5 million note receivable , partially offset by $ 2.7 million of favorable changes in operating assets and liabilities . exclusive of a small amount of capital lease obligations , rimage has no long-term debt and does not require significant capital investment for its ongoing operations as all fabrication of tooling-intensive parts is outsourced to vendors . 30 since october 2010 , the company 's board of directors has approved cumulative common stock repurchases of up to 3,500,000 shares . shares may be purchased at prevailing market prices in the open market or in private transactions , subject to market conditions , share price , trading volume and other factors . the repurchase program may be discontinued at any time .
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Suspicious Activity Report : service revenues on the consolidated statements of operations include revenues from maintenance contracts , repair , installation , software and maintenance subscription arrangements and professional services . rimage has no long-term debt and does not require significant capital investment as all fabrication of its products is outsourced to vendors . results of operations revenues . the table below describes rimage 's revenues by segment and product category ( in thousands ) : replace_table_token_8_th total revenues were $ 79.4 million for 2012 , reflecting a 5.0 % reduction from total revenues of $ 83.6 million in 2011 , which decreased 5.7 % from total revenues of $ 88.7 million in 2010 . the $ 4.2 million decline in total revenues from 2011 to 2012 reflects a $ 12.3 million reduction in disc publishing product line revenues , partially offset by an $ 8.1 million increase in revenues generated by the enterprise content distribution software business . consolidated product revenues decreased $ 9.2 million from the prior year , while consolidated service revenues increased $ 5.0 million . in the aggregate , currency fluctuations decreased consolidated revenues for the year ended december 31 , 2012 by $ 1.7 million , or 2 % . the $ 12.3 million decrease in disc publishing revenues from 2011 to 2012 consists of declines of $ 6.6 million and $ 6.2 million in equipment revenues and consumables and parts revenues , respectively , partially offset by a $ 0.6 million increase in service revenues . the decrease in disc publishing equipment revenues was driven by sales declines in both europe and the u.s. sales to the company 's european channel partners were negatively impacted by continued economic challenges impacting european markets , increased competition and the negative impact of foreign currency fluctuations . equipment sales in the u.s. were negatively impacted by a significant sale to the government sector in last year 's third quarter that did not reoccur in the current year , as well as reduced sales in the company 's u.s. retail market , where sales can fluctuate significantly between periods . the 26 decline in u.s. consumable sales in the current year was primarily due to decreased usage of consumable products by the company 's retail customers and other segments of the company 's customer base . the $ 8.1 million increase in revenues generated by the enterprise content distribution software business from 2011 to 2012 was driven by the inclusion of qumu operations for a full year in 2012 compared to the post-acquisition period subsequent to october 10 , 2011 for the prior year , and also the closing and fulfillment of several large enterprise sales contracts in the last half of 2012. the increase in revenues consisted of $ 3.6 million in software , software on server appliances and software-enabled devices and $ 4.4 million in services , comprised of software maintenance contracts , subscription licenses and professional services . during the second quarter of 2012 , the company announced that qumu had partnered with one of its key managed service providers to close a multi-year , multi-million dollar contract with a fortune 50 corporation . the company will recognize revenue related to this transaction over the term of the agreement and began recognizing revenue in the third quarter of 2012. qumu continued to build sales momentum in the last half of 2012 with several new enterprise customers , ending the year with a contracted commitment backlog of $ 12.7 million . the company defines contracted commitments as the dollar value of signed customer purchase commitments . the $ 5.1 million decline in total revenues from 2010 to 2011 reflects a $ 6.9 million reduction in disc publishing product line revenues , partially offset by $ 1.8 million in new revenues generated by the enterprise content distribution software business as a result of the company 's acquisition of qumu effective october 10 , 2011. the $ 5.1 million decrease in total revenues consists of a $ 7.6 million decrease in product revenues and a $ 2.5 million increase in service revenues . the aggregate decline in product revenues reflects an $ 8.3 million reduction in sales of disc publishing products , partially offset by $ 0.7 million in new product revenues generated by the enterprise content distribution software product line . the increase in total service revenues resulted from an increase in disc publishing revenues of $ 1.4 million and new service revenues of $ 1.1 million generated from the enterprise content distribution software product line . foreign currency fluctuations increased 2011 consolidated revenues by $ 1.4 million relative to 2010. the $ 8.3 million reduction in product revenues in the disc publishing product line in 2011 as compared to the prior year reflects a $ 10.4 million reduction in equipment revenues , partially offset by a $ 2.1 million increase in consumables and parts sales . the decrease in equipment sales reflects declines in the volume of professional series and desktop series equipment sales of $ 10.0 million and $ 0.8 million , respectively , partially offset by an increase in sales of producer series equipment of $ 0.4 million . the reduction in sales of professional series equipment was largely driven by an $ 8.9 million decline in sales of these products in the u.s. retail market segment , due primarily to the completion in the first quarter of 2011 of a multi-system sales agreement with a retail customer obtained in the second quarter of 2010. a $ 1.4 million sale to a federal law enforcement agency in the third quarter of 2010 and a reduced volume of sales in europe also contributed to the decline in professional series equipment revenues as compared to the prior year . the increase in sales of producer series products was primarily impacted by a $ 1.1 million sale in the third quarter to a federal law enforcement agency and also sales to a u.s. retail customer in the second quarter . story_separator_special_tag augmenting the impact of lower effective yields in 2012 and 2011 was a reduction in cash equivalent and marketable securities balances , largely impacted by the company 's use of approximately $ 39 million in cash to acquire qumu in october 2011. other income for the year ended december 31 , 2012 also included a net loss on foreign currency transactions of $ 0.1 million . see โ liquidity and capital resources โ below for a discussion of changes in cash levels . income taxes . the provision for income taxes represents federal , state , and foreign income taxes on income or loss . for the years ended december 31 , 2012 , 2011 and 2010 , income tax expense amounted to $ 8.8 million , $ 2.0 million and $ 4.5 million , respectively , representing 22.1 % , 42.8 % and 37.2 % of income or loss before income taxes , respectively . the effective tax rate in 2012 includes the impact of a discrete charge for the establishment in the third quarter of 2012 of a valuation allowance against the company 's u.s. deferred tax assets . the company established a valuation allowance as a result of a determination that it was not โ more likely than not โ that the company would realize all deductible temporary differences and loss and credit carryforwards in the near-term future . the increase in the effective tax rate in 2011 relative to 2010 was primarily the result of nondeductible transaction expenses associated with the acquisition of qumu . partially offsetting the unfavorable impact of the above was an increase in the federal research credit resulting from an increase in qualifying development projects , including those introduced as a result of the acquisition of qumu . net income ( loss ) / net income ( loss ) per share . net income ( loss ) for the years ended december 31 , 2012 , 2011 and 2010 amounted to ( $ 48.3 ) million , $ 2.8 million and $ 7.7 million , representing ( 60.8 ) % , 3.4 % and 8.7 % of revenues , respectively . related net income ( loss ) per diluted share amounts were ( $ 4.85 ) in 2012 , $ 0.29 in 2011 and $ 0.80 in 2010 . story_separator_special_tag style= `` line-height:120 % ; padding-top:12px ; text-align : justify ; font-size:11pt ; `` > stemming primarily from a $ 3 . 5 million sale of new maintenance contracts to a retail customer in the prior year under a multi-system sales agreement , followed by a significant volume of retail contract renewals , partially offset by an increase in maintenance contract attachments for the company 's disc publishing systems and an increase in software related revenue deferrals for the company 's enterprise content distribution software business . investing activities consumed net cash of $ 24.5 million and $ 34.5 million in 2012 and 2011 , respectively , and provided net cash of $ 24.1 million in 2010 . the $ 24.5 million net use of cash in 2012 was driven primarily by $ 21.5 million in purchases of marketable securities , net of related maturities and sales . comparatively , maturities of marketable securities increased cash and cash equivalents by $ 8.6 million in 2011 and $ 28.6 million in 2010 . the $ 34.5 million net use of cash in 2011 was driven primarily by the company 's net outlay of $ 39.4 million in cash as part of its acquisition of qumu in october 2011 , and additionally , a $ 2.0 million equity investment in briefcam , a privately-held israeli company that develops video synopsis software for surveillance applications . investing activities in each year also included purchases of property and equipment of $ 2.5 million in 2012 , $ 1.2 million in 2011 , and $ 4.2 million in 2010 . capital expenditures in 2012 consisted primarily of leasehold improvements and office equipment associated with the company 's facility in san bruno , california and the second installment payment of $ 0.3 million for software source code acquired and capitalized by the company 's joint venture in late 2010. capital expenditures in 2011 consisted primarily of the first installment payment of $ 0.4 million for software source code , described above , and office equipment . capital expenditures in 2010 included $ 2.4 million of production tooling capitalized by the company in late 2009 associated with a new product line launched during the first quarter of 2010. remaining capital expenditures during 2010 consisted primarily of costs to support the company 's enhancement of its enterprise resource management system and office equipment . capital expenditures in 2013 are currently expected to amount to less than $ 1 million . financing activities used net cash of $ 15.0 million , $ 10.4 million and $ 0.3 million in 2012 , 2011 and 2010 , respectively . the net use of cash in financing activities in each year was largely attributable to the company 's repurchase of shares of its common stock , requiring $ 9.8 million , $ 6.0 million and $ 1.8 million in 2012 , 2011 and 2010 , respectively . additionally , the company paid dividends on outstanding shares of its common stock of $ 5.2 million and $ 4.6 million in 2012 and 2011 , respectively . financing activities in 2011 and 2010 included proceeds from employee stock plans of $ 0.3 million and $ 0.9 million , respectively . a $ 0.6 million equity investment from the noncontrolling interest in the company 's majority-owned joint venture in china positively impacted financing activities in 2010. a summary of rimage 's contractual obligations for minimum lease payments under non-cancelable operating or capital leases and income tax liabilities under accounting standards codification ( โ asc โ ) topic 740 at december 31 , 2012 is as follows ( in thousands ) : replace_table_token_11_th ( 1 ) amounts include
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2,534 | our federal services group also provides energy consulting services and it solutions and services with a focus on medical and health related fields for various dod and federal civilian agencies , including the united states department of energy ( `` doe `` ) ; the social security administration ; the national institutes of health ( `` nih `` ) ; customers in the military health system ; and other government agencies and commercial clients . - 16 - concentration of revenues replace_table_token_6_th * our aviation group utilizes the federal services group 's fms program to sell its gas turbine mro services to the dod . management outlook aviation group we believe that our january 2019 acquisition of 1st choice aerospace will provide a significant opportunity for revenue and profit growth for our aviation group . 1st choice aerospace is expected to broaden our product lines and client base , particularly in the commercial aerospace market , and we see opportunities to strategically align 1st choice aerospace 's offerings with our existing domestic and international markets , including our recent singapore and european initiatives . for additional information regarding 1st choice aerospace , see note 17 `` subsequent events `` to our consolidated financial statement included below in item 8. our aviation group has demonstrated improved performance in 2018 , with contributions provided by both new and existing lines of business . we have increased revenue and operating profits on sales from new parts distribution and on mro services on engine accessories and components . our singapore operation began generating revenue in the second quarter as we extended new product lines to new end-user clients in the asia-pacific market , including commercial airlines . we extended key distribution agreements to other geographic markets . we believe these efforts will provide us with sustainable revenue sources with viable growth potential , and that the associated investment in increased inventory will be beneficial to our future results . we expect the addition of 1st choice aerospace to accelerate our improved results without materially increasing our inventory investment . while revenues , operating income , and inventory may experience fluctuations due to market demand and the mix of products sold , we are optimistic about the performance of our aviation group . supply chain management group our supply chain management group continues to make steady progress toward becoming a more diversified enterprise that is less reliant on a single large customer . parts sales and supply chain and inventory management support services to dod and commercial clients have shown steady increases as we capture new commercial customers . our commercial client base now includes companies in a wide array of businesses that have vehicle fleets required to meet mission critical delivery or service schedules . we also are capturing new customers and increasing revenue using e-commerce solutions . we look forward to further developing these new client relationships and expect them to reflect a more significant portion of our revenue in the future . revenues from the sale of parts to the usps declined about 3 % in 2018. we are closely monitoring the usps next-generation delivery vehicle ( โ ngdv โ ) procurement effort , which is progressing more slowly than the usps had previously expected . we are positioning ourselves to support newly procured vehicles eventually placed in service and aging vehicles that remain in service . while it will likely be several years before the ngdv is placed in service in significant numbers , the usps has begun some shorter-term annual vehicle acquisitions through the procurement of commercial off-the-shelf ( `` cots `` ) mass-market vehicles and the retirement of some of its aging cots vehicles . the turnover of these cots vehicles is the primary factor for the 3 % revenue decline in 2018. as the new cots vehicles begin to age , we expect the demand for replacement parts to keep them operating will return . as a matter of usps practice , we are a provider of replacement parts for all 215,000 usps vehicle fleet assets , including the cots vehicles . while we can not predict with certainty the impact of the usps ngdv procurement and concurrent retirement of older fleet assets on our future revenues , we believe that our years of service , unique knowledge of this client 's complex operational model and maintenance facility processes and procedures , and our superior performance strategically position us to continue to serve as a key vehicle fleet sustainment partner regardless of source or vintage . we expect to continue supporting usps during its comprehensive vehicle transition initiatives embracing emerging technologies spanning the next decade or longer . - 17 - federal services group the revenues from our fms program in 2018 declined due to the completion of the transfer of two frigates to taiwan in 2017 and procedural delays in the contracting process . our federal services group revenues were down in 2018 due to the fms revenue decline , completion of work on two of our u.s. army programs in 2017 , a reduction in work performed on our rrad ers contract in may 2018 due to a client directed reduction in force , and a decline in our energy , and management consulting work . despite these revenue challenges , our operating income has increased due to a gain on the sale of an it services contract , margin improvements on some of our u. s. army programs and the completion in 2017 of a contract that recorded a loss . in the third quarter of 2018 , we sold an it services contract that we had been awarded by the nih to a company with more extensive it client relationships . as a result , we were able to monetize the value of the contract while retaining the work we were performing and maintain our access to the contract for future potential work . tax cuts and jobs act public law no . story_separator_special_tag these costs will generally increase or decrease in conjunction with our level of products sold or contract work performed . costs and operating expenses also include expense for amortization of intangible assets acquired through our acquisitions . expense for amortization of acquisition related intangible assets is included in the segment results in which the acquisition is included . segment results also include expense for an allocation of corporate management costs . our costs and operating expenses decreased by approximately $ 61 million or 9 % in 2018 as compared to 2017. the change in costs and operating expenses resulted primarily from a decrease in our federal services group of approximately $ 74 million , an increase in our supply chain management group of approximately $ 3 million , and an increase in our aviation group of approximately $ 9 million . costs and expenses for 2018 included approximately $ 569 thousand associated with our acquisition of 1st choice aerospace in january 2019. our costs and operating expenses increased by approximately $ 66 million or 10 % in 2017 as compared to 2016. the change in costs and operating expenses resulted primarily from an increase in our federal services group of approximately $ 52 million , an increase in our supply chain management group of approximately $ 10 million , and an increase in our aviation group of approximately $ 4 million . our operating income for 2018 was relatively unchanged as compared to 2017 . operating group results included operating income increases for our federal services group of approximately $ 2.4 million and for our aviation group of approximately $ 1.4 million , and an operating income decrease for our supply chain management group of approximately $ 3.1 million . operating income for 2018 was decreased by approximately $ 569 thousand due to the costs and expenses associated with our acquisition of 1st choice aerospace in january 2019. our operating income increased by approximately $ 2.8 million or 5 % in 2017 as compared to 2016 . the change in operating income resulted primarily from changes in our operating group results and settlement of two material lawsuits . operating group results included an operating income increases for our federal services group of approximately $ 5.6 million and an operating income decreases for our aviation group of approximately $ 3.1 million and for our supply chain management group of approximately $ 878 thousand . our increase in revenue allowed us to allocate our corporate infrastructure costs over a larger revenue base , which benefited each operating group 's income . the combined effect of the lawsuit settlements resulted in a decrease in operating income of approximately $ 1.9 million for 2016. interest expense decreased approximately $ 258 thousand in 2018 as compared to 2017 and approximately $ 615 thousand in 2017 as compared to 2016 , primarily due to declines of our bank debt levels . interest expense also includes interest related to our executive and administrative headquarters facility lease . the amount of interest expense associated with our headquarters financing lease is approximately $ 1.4 million , $ 1.5 million and $ 1.6 million for 2018 , 2017 and 2016 , respectively . provision for income taxes our effective tax rate was 22.5 % for 2018 , 13.3 % for 2017 , and 35.7 % for 2016 . the tax act passed in december 2017 resulted in a decrease to our federal tax rate for 2018 to 21 % and lowered our cash tax payments for 2018. due to the tax act , we - 22 - recorded a one-time reduction in our deferred tax liabilities in the fourth quarter of 2017 that resulted in a reduction in our provision for income taxes of approximately $ 10.6 million for the year and lowered our effective tax rate for 2017. our tax rate is also affected by discrete items that may occur in any given year , but may not be consistent from year to year . in addition to state income taxes , certain tax credits and other items caused differences between our statutory u.s. federal income tax rate and our effective tax rate . other permanent differences and federal and state tax credits such as the work opportunity tax credit and a state educational improvement tax credit provided benefit to our tax rates for 2018 , 2017 and 2016 . supply chain management group results the results of operations for our supply chain management group are ( in thousands ) : replace_table_token_10_th revenues for our supply chain management group were substantially unchanged for 2018 , as compared to the prior year . revenues from sales to the usps declined approximately $ 4.9 million and revenues from sales to dod and commercial customers increased approximately $ 5.3 million or 16 % . costs and operating expenses for our supply chain management group increased approximately $ 3.4 million or 2 % and operating income decreased by approximately $ 3.1 million or 9 % for 2018 as compared to the prior year . the decrease in operating income was primarily attributable to market competition and a change in the mix of products sold . the products sold associated with our increasing dod and commercial customer revenues tend to lower our overall profit margins as our revenue mix changes . revenues for our supply chain management group increased approximately $ 9 million or 4 % for 2017 , as compared to the prior year . the revenue increase resulted primarily from an increase in sales to dod and commercial customers of approximately $ 9.6 million or 40 % . costs and operating expenses for our supply chain management group increased approximately $ 10 million or 6 % and operating income decreased by approximately $ 878 thousand or 3 % for 2017 as compared to the prior year . the increase in costs and operating expenses resulted primarily from an increase in products sold . - 23 - aviation group results the results of
| liquidity our internal sources of liquidity are primarily from operating activities , specifically from changes in our level of revenues and associated inventory , accounts receivable and accounts payable , and from profitability . significant increases or decreases in revenues and inventory , accounts receivable and accounts payable can affect our liquidity . our inventory and accounts payable levels can be affected by the timing of large opportunistic inventory purchases . our accounts receivable and accounts payable levels can be affected by changes in the level of contract work we perform , by the timing of large materials purchases and subcontractor efforts used in our contracts , and by delays in the award of contractual coverage and funding and payments . government funding delays can cause delays in our ability to invoice for revenues earned , presenting a potential negative impact on our days sales outstanding . we also purchase property and equipment ; invest in expansion , improvement , and maintenance of our operational and administrative facilities ; and invest in the acquisition of other companies . our external financing consists of a loan agreement with a bank group that provides for a term loan , revolving loans and letters of credit . the loan agreement , which was amended in january 2018 and expires in january 2023 , has a term loan facility and a revolving loan facility .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity our internal sources of liquidity are primarily from operating activities , specifically from changes in our level of revenues and associated inventory , accounts receivable and accounts payable , and from profitability . significant increases or decreases in revenues and inventory , accounts receivable and accounts payable can affect our liquidity . our inventory and accounts payable levels can be affected by the timing of large opportunistic inventory purchases . our accounts receivable and accounts payable levels can be affected by changes in the level of contract work we perform , by the timing of large materials purchases and subcontractor efforts used in our contracts , and by delays in the award of contractual coverage and funding and payments . government funding delays can cause delays in our ability to invoice for revenues earned , presenting a potential negative impact on our days sales outstanding . we also purchase property and equipment ; invest in expansion , improvement , and maintenance of our operational and administrative facilities ; and invest in the acquisition of other companies . our external financing consists of a loan agreement with a bank group that provides for a term loan , revolving loans and letters of credit . the loan agreement , which was amended in january 2018 and expires in january 2023 , has a term loan facility and a revolving loan facility .
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Suspicious Activity Report : our federal services group also provides energy consulting services and it solutions and services with a focus on medical and health related fields for various dod and federal civilian agencies , including the united states department of energy ( `` doe `` ) ; the social security administration ; the national institutes of health ( `` nih `` ) ; customers in the military health system ; and other government agencies and commercial clients . - 16 - concentration of revenues replace_table_token_6_th * our aviation group utilizes the federal services group 's fms program to sell its gas turbine mro services to the dod . management outlook aviation group we believe that our january 2019 acquisition of 1st choice aerospace will provide a significant opportunity for revenue and profit growth for our aviation group . 1st choice aerospace is expected to broaden our product lines and client base , particularly in the commercial aerospace market , and we see opportunities to strategically align 1st choice aerospace 's offerings with our existing domestic and international markets , including our recent singapore and european initiatives . for additional information regarding 1st choice aerospace , see note 17 `` subsequent events `` to our consolidated financial statement included below in item 8. our aviation group has demonstrated improved performance in 2018 , with contributions provided by both new and existing lines of business . we have increased revenue and operating profits on sales from new parts distribution and on mro services on engine accessories and components . our singapore operation began generating revenue in the second quarter as we extended new product lines to new end-user clients in the asia-pacific market , including commercial airlines . we extended key distribution agreements to other geographic markets . we believe these efforts will provide us with sustainable revenue sources with viable growth potential , and that the associated investment in increased inventory will be beneficial to our future results . we expect the addition of 1st choice aerospace to accelerate our improved results without materially increasing our inventory investment . while revenues , operating income , and inventory may experience fluctuations due to market demand and the mix of products sold , we are optimistic about the performance of our aviation group . supply chain management group our supply chain management group continues to make steady progress toward becoming a more diversified enterprise that is less reliant on a single large customer . parts sales and supply chain and inventory management support services to dod and commercial clients have shown steady increases as we capture new commercial customers . our commercial client base now includes companies in a wide array of businesses that have vehicle fleets required to meet mission critical delivery or service schedules . we also are capturing new customers and increasing revenue using e-commerce solutions . we look forward to further developing these new client relationships and expect them to reflect a more significant portion of our revenue in the future . revenues from the sale of parts to the usps declined about 3 % in 2018. we are closely monitoring the usps next-generation delivery vehicle ( โ ngdv โ ) procurement effort , which is progressing more slowly than the usps had previously expected . we are positioning ourselves to support newly procured vehicles eventually placed in service and aging vehicles that remain in service . while it will likely be several years before the ngdv is placed in service in significant numbers , the usps has begun some shorter-term annual vehicle acquisitions through the procurement of commercial off-the-shelf ( `` cots `` ) mass-market vehicles and the retirement of some of its aging cots vehicles . the turnover of these cots vehicles is the primary factor for the 3 % revenue decline in 2018. as the new cots vehicles begin to age , we expect the demand for replacement parts to keep them operating will return . as a matter of usps practice , we are a provider of replacement parts for all 215,000 usps vehicle fleet assets , including the cots vehicles . while we can not predict with certainty the impact of the usps ngdv procurement and concurrent retirement of older fleet assets on our future revenues , we believe that our years of service , unique knowledge of this client 's complex operational model and maintenance facility processes and procedures , and our superior performance strategically position us to continue to serve as a key vehicle fleet sustainment partner regardless of source or vintage . we expect to continue supporting usps during its comprehensive vehicle transition initiatives embracing emerging technologies spanning the next decade or longer . - 17 - federal services group the revenues from our fms program in 2018 declined due to the completion of the transfer of two frigates to taiwan in 2017 and procedural delays in the contracting process . our federal services group revenues were down in 2018 due to the fms revenue decline , completion of work on two of our u.s. army programs in 2017 , a reduction in work performed on our rrad ers contract in may 2018 due to a client directed reduction in force , and a decline in our energy , and management consulting work . despite these revenue challenges , our operating income has increased due to a gain on the sale of an it services contract , margin improvements on some of our u. s. army programs and the completion in 2017 of a contract that recorded a loss . in the third quarter of 2018 , we sold an it services contract that we had been awarded by the nih to a company with more extensive it client relationships . as a result , we were able to monetize the value of the contract while retaining the work we were performing and maintain our access to the contract for future potential work . tax cuts and jobs act public law no . story_separator_special_tag these costs will generally increase or decrease in conjunction with our level of products sold or contract work performed . costs and operating expenses also include expense for amortization of intangible assets acquired through our acquisitions . expense for amortization of acquisition related intangible assets is included in the segment results in which the acquisition is included . segment results also include expense for an allocation of corporate management costs . our costs and operating expenses decreased by approximately $ 61 million or 9 % in 2018 as compared to 2017. the change in costs and operating expenses resulted primarily from a decrease in our federal services group of approximately $ 74 million , an increase in our supply chain management group of approximately $ 3 million , and an increase in our aviation group of approximately $ 9 million . costs and expenses for 2018 included approximately $ 569 thousand associated with our acquisition of 1st choice aerospace in january 2019. our costs and operating expenses increased by approximately $ 66 million or 10 % in 2017 as compared to 2016. the change in costs and operating expenses resulted primarily from an increase in our federal services group of approximately $ 52 million , an increase in our supply chain management group of approximately $ 10 million , and an increase in our aviation group of approximately $ 4 million . our operating income for 2018 was relatively unchanged as compared to 2017 . operating group results included operating income increases for our federal services group of approximately $ 2.4 million and for our aviation group of approximately $ 1.4 million , and an operating income decrease for our supply chain management group of approximately $ 3.1 million . operating income for 2018 was decreased by approximately $ 569 thousand due to the costs and expenses associated with our acquisition of 1st choice aerospace in january 2019. our operating income increased by approximately $ 2.8 million or 5 % in 2017 as compared to 2016 . the change in operating income resulted primarily from changes in our operating group results and settlement of two material lawsuits . operating group results included an operating income increases for our federal services group of approximately $ 5.6 million and an operating income decreases for our aviation group of approximately $ 3.1 million and for our supply chain management group of approximately $ 878 thousand . our increase in revenue allowed us to allocate our corporate infrastructure costs over a larger revenue base , which benefited each operating group 's income . the combined effect of the lawsuit settlements resulted in a decrease in operating income of approximately $ 1.9 million for 2016. interest expense decreased approximately $ 258 thousand in 2018 as compared to 2017 and approximately $ 615 thousand in 2017 as compared to 2016 , primarily due to declines of our bank debt levels . interest expense also includes interest related to our executive and administrative headquarters facility lease . the amount of interest expense associated with our headquarters financing lease is approximately $ 1.4 million , $ 1.5 million and $ 1.6 million for 2018 , 2017 and 2016 , respectively . provision for income taxes our effective tax rate was 22.5 % for 2018 , 13.3 % for 2017 , and 35.7 % for 2016 . the tax act passed in december 2017 resulted in a decrease to our federal tax rate for 2018 to 21 % and lowered our cash tax payments for 2018. due to the tax act , we - 22 - recorded a one-time reduction in our deferred tax liabilities in the fourth quarter of 2017 that resulted in a reduction in our provision for income taxes of approximately $ 10.6 million for the year and lowered our effective tax rate for 2017. our tax rate is also affected by discrete items that may occur in any given year , but may not be consistent from year to year . in addition to state income taxes , certain tax credits and other items caused differences between our statutory u.s. federal income tax rate and our effective tax rate . other permanent differences and federal and state tax credits such as the work opportunity tax credit and a state educational improvement tax credit provided benefit to our tax rates for 2018 , 2017 and 2016 . supply chain management group results the results of operations for our supply chain management group are ( in thousands ) : replace_table_token_10_th revenues for our supply chain management group were substantially unchanged for 2018 , as compared to the prior year . revenues from sales to the usps declined approximately $ 4.9 million and revenues from sales to dod and commercial customers increased approximately $ 5.3 million or 16 % . costs and operating expenses for our supply chain management group increased approximately $ 3.4 million or 2 % and operating income decreased by approximately $ 3.1 million or 9 % for 2018 as compared to the prior year . the decrease in operating income was primarily attributable to market competition and a change in the mix of products sold . the products sold associated with our increasing dod and commercial customer revenues tend to lower our overall profit margins as our revenue mix changes . revenues for our supply chain management group increased approximately $ 9 million or 4 % for 2017 , as compared to the prior year . the revenue increase resulted primarily from an increase in sales to dod and commercial customers of approximately $ 9.6 million or 40 % . costs and operating expenses for our supply chain management group increased approximately $ 10 million or 6 % and operating income decreased by approximately $ 878 thousand or 3 % for 2017 as compared to the prior year . the increase in costs and operating expenses resulted primarily from an increase in products sold . - 23 - aviation group results the results of
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2,535 | the amount of the total otti related to other factors is recognized in other comprehensive income , net of applicable income taxes . the previous amortized cost basis less the otti recognized in earnings becomes the new amortized cost basis of the investment . for held to maturity debt securities , the amount of an otti recorded in other comprehensive income for the noncredit portion of a previous other-than-temporary impairment is amortized prospectively over the remaining life of the security on the basis of the timing of future estimated cash flows of the security . loans the corporation 's loan portfolio is carried at the principal amount outstanding , net of unearned income and principal charge-offs . certain loan fees and direct costs are being deferred and amortized as an adjustment of yield on the loans . interest income is accrued on the principal balances of loans . the accrual of interest is discontinued on a loan when , in management 's opinion , the borrower may be unable to meet payments as they become due . when the interest accrual is discontinued , all unpaid accrued interest is reversed against earnings when considered uncollectible . interest income accrued in the prior year , if any , is charged to the allowance for loan losses . interest income is subsequently recognized only to the extent cash payments are received and the loan is returned to accruing status . certain non-accrual , substantially delinquent and renegotiated loans classified as troubled debt restructures may be considered to be impaired in accordance with asc 310 , receivables . under asc 310-10 , a loan is impaired when , based on current information or events , it is probable all amounts due ( principal and interest ) according to the contractual terms of the loan agreement are uncollectible . renegotiated consumer loans classified as troubled debt restructures are considered to be impaired . in applying the provisions of asc 310-10 , the corporation considers all other investments in one-to-four family residential loans and consumer installment loans to be homogeneous and therefore excluded from separate identification for evaluation of impairment . impaired loans are carried at the fair value of collateral if the loan is collateral dependent , or the present value of estimated future cash flows using the loan 's existing rate . a portion of the allowance for loan losses is allocated to impaired loans if the value of such loans is deemed to be less than the unpaid balance . if these allocations cause the allowance for loan losses to increase , such increase is reported as a component of the provision for loan losses . loan losses are charged against the allowance when management believes the uncollectability of the loan is confirmed . the valuation would be considered level 3 , consisting of appraisals of underlying collateral and discounted cash flow analysis . 37 part ii : item 7. and item 7a . management 's discussion and analysis of financial condition and results of operations the cares act and the interagency statement on loan modifications encourage financial institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations due to the effects of covid-19 . additionally , section 4013 of the cares act further provides that a qualified loan modification is exempt by law from classification as a troubled debt restructure as defined by gaap , from the period beginning march 1 , 2020 until the earlier of december 31 , 2020 or the date that is 60 days after the date on which the national emergency concerning the covid-19 outbreak under the national emergencies act ( 50 u.s.c . 1601 et seq . ) terminates . the 2021 consolidated appropriations act extended the expiration date for covid-related loan modifications exempt from troubled debt restructuring classification under gaap until the earlier of january 1 , 2022 , or 60 days after the termination of the national emergency . additional details of the corporation 's loan modifications under these programs are included in the `` loan quality `` section of this management 's discussion and analysis of financial condition and results of operations . purchased loans loans acquired in a business combination with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be purchased credit impaired . evidence of credit quality deterioration as of purchase dates may include information such as past-due and nonaccrual status , borrower credit risk grade and recent loan to value percentages . purchased credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality ( asc 310-30 ) . these loans are initially measured at fair value based upon expected cash flows without anticipation of prepayments and includes estimated future credit losses expected to be incurred over the life of the loans . as a result , related discounts are recognized subsequently through accretion based on the expected cash flows of the acquired loans . for purposes of applying asc 310-30 , loans acquired in business combinations are individually evaluated for the initial fair value measurement . accordingly , allowances for credit losses related to these loans are not carried over at the acquisition date . the difference between contractually required payments and the cash flows expected to be collected at acquisition is referred to as the nonaccretable portion of the fair value discount or premium . the accretable portion of the fair value discount or premium is the difference between the expected cash flows and the net present value of expected cash flows , with such difference accreted into income over the term of the loans . acquired loans not accounted for under asc 310-30 are accounted for under asc 310-20 , which allows the fair value adjustment to be accreted into income over the remaining life of the loans . story_separator_special_tag for small businesses , eligible nonprofits and certain others , the cares act established a paycheck protection program ( โ ppp โ ) , which is administered by the small business administration ( โ sba โ ) . on april 24 , 2020 , the paycheck protection program and health care enhancement act was enacted . among other things , this legislation amends the initial cares act program by raising the appropriation level for ppp loans from $ 349 billion to $ 670 billion . the ppp was further modified on june 5 , 2020 with the adoption of the paycheck protection program flexibility act ( the flexibility act ) , which extended the maturity date for ppp loans from two years to five years for loans disbursed on or after the date of enactment of the flexibility act . for ppp loans disbursed prior to such enactment , the flexibility act permits the borrower and lender to mutually agree to extend the term of the loan to five years . the bank has actively participated in assisting its customers with applications for resources through the program . ppp loans earn interest at a fixed rate of 1 percent and primarily have a two-year term . the bank anticipates that the majority of these loans will ultimately be forgiven , in whole or in part , by the sba in accordance with the terms of the program . under the terms of the ppp , the loans are fully guaranteed by the sba . as of december 31 , 2020 , the bank had over 4,400 ppp loans representing $ 667.1 million , which is net of $ 12.5 million of deferred processing fee income and costs . the weighted-average deferred processing fee on ppp loans was approximately 3.09 percent and is recognized over the term of the loan . if a loan is forgiven by the sba or paid off by the borrower prior to maturity , any unamortized portion of the fee will be recognized immediately . during the year ended december 31 , 2020 , the corporation recognized interest income on ppp loans of $ 6.2 million and $ 16.2 million of ppp loan related deferred processing fee income as a yield adjustment . 40 part ii : item 7. and item 7a . management 's discussion and analysis of financial condition and results of operations the 2021 consolidated appropriations act on december 27 , 2020 , a $ 900 billion covid-19 relief package , as passed by the u.s. congress , was signed into law as part of the 2021 consolidated appropriations act ( โ caa โ ) that provides federal government funding through the end of its 2021 fiscal year . in addition to delivering direct stimulus payments to certain individuals , an increase in unemployment insurance benefits , an extension of the eviction moratorium , relief to the healthcare industry , and additional aid to various other businesses , the covid-19-related provisions of the caa provide for ( i ) an additional $ 284 billion in funding for the ppp , through march 31 , 2021 , ( ii ) an extension of the temporary delay for implementation of the cecl accounting standard , and ( iii ) further suspension of the troubled debt restructure assessment and reporting requirements for financial institutions under gaap . main street business lending program on april 9 , 2020 , the federal reserve announced its proposed main street emergency lending initiative as an additional measure to provide much-needed financial support to small and mid-sized businesses adversely impacted by the covid-19 pandemic . the main street programs are intended to provide credit flows to financial institutions so that they can provide loans to eligible small and mid-sized businesses . the funds available through the main street programs amount to $ 600 billion . under this initiative , which was modified and supplemented by the federal reserve on april 30 , 2020 , three loan facilities have been established for `` for profit `` entities : ( i ) the main street new loan facility ( the โ msnlf ) , ( ii ) the main street priority loan facility ( the โ msplf โ ) ; and ( iii ) the main street expanded loan facility ( the โ mself โ ) , each of which was authorized by the federal reserve under section 13 ( 3 ) of the federal reserve act . all three facilities use the same eligible lender and eligible borrower criteria , and have many of the same features , including the same maturity , interest rate , deferral of principal and interest for one year , and ability of the borrower to prepay without penalty . as required by the cares act , main street loans are full-recourse to the borrower and are not forgivable . the loan types differ in amounts and other terms , including in how they interact with the eligible borrower 's existing outstanding debt . the proposed minimum loan amounts under the msnlf and the msplf were initially set at $ 250,000 , but were lowered to $ 100,000 by the federal reserve effective october 30 , 2020. the minimum loan amount under the mself has been set at $ 10 million . the maximum loan amount under all three programs is dependent upon the borrower 's financial position . the bank was an approved lender for all three main street programs until the program 's termination on january 8 , 2021. paycheck protection program liquidity facility to provide liquidity to small business lenders and the broader credit markets , to help stabilize the financial system , and to provide economic relief to small businesses nationwide , the federal reserve authorized each of the federal reserve banks to participate in the paycheck protection program liquidity facility ( the โ pppl facility โ ) , pursuant to the federal reserve act . under the pppl facility , each of
| liquidity liquidity management is the process by which the corporation ensures that adequate liquid funds are available for the holding company and its subsidiaries . these funds are necessary in order to meet financial commitments on a timely basis . these commitments include withdrawals by depositors , funding credit obligations to borrowers , paying dividends to stockholders , paying operating expenses , funding capital expenditures , and maintaining deposit reserve requirements . liquidity is monitored and closely managed by the asset/liability committee . the corporation 's liquidity is dependent upon the receipt of dividends from the bank , which is subject to certain regulatory limitations and access to other funding sources . liquidity of the bank is derived primarily from core deposit growth , principal payments received on loans , the sale and maturity of investment securities , net cash provided by operating activities , and access to other funding sources . the principal source of asset-funded liquidity is investment securities classified as available for sale , the market values of which totaled $ 1.9 billion at december 31 , 2020 , an increase of $ 129.1 million , or 7.2 percent , from december 31 , 2019. securities classified as held to maturity that are maturing within a short period of time can also be a source of liquidity .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity liquidity management is the process by which the corporation ensures that adequate liquid funds are available for the holding company and its subsidiaries . these funds are necessary in order to meet financial commitments on a timely basis . these commitments include withdrawals by depositors , funding credit obligations to borrowers , paying dividends to stockholders , paying operating expenses , funding capital expenditures , and maintaining deposit reserve requirements . liquidity is monitored and closely managed by the asset/liability committee . the corporation 's liquidity is dependent upon the receipt of dividends from the bank , which is subject to certain regulatory limitations and access to other funding sources . liquidity of the bank is derived primarily from core deposit growth , principal payments received on loans , the sale and maturity of investment securities , net cash provided by operating activities , and access to other funding sources . the principal source of asset-funded liquidity is investment securities classified as available for sale , the market values of which totaled $ 1.9 billion at december 31 , 2020 , an increase of $ 129.1 million , or 7.2 percent , from december 31 , 2019. securities classified as held to maturity that are maturing within a short period of time can also be a source of liquidity .
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Suspicious Activity Report : the amount of the total otti related to other factors is recognized in other comprehensive income , net of applicable income taxes . the previous amortized cost basis less the otti recognized in earnings becomes the new amortized cost basis of the investment . for held to maturity debt securities , the amount of an otti recorded in other comprehensive income for the noncredit portion of a previous other-than-temporary impairment is amortized prospectively over the remaining life of the security on the basis of the timing of future estimated cash flows of the security . loans the corporation 's loan portfolio is carried at the principal amount outstanding , net of unearned income and principal charge-offs . certain loan fees and direct costs are being deferred and amortized as an adjustment of yield on the loans . interest income is accrued on the principal balances of loans . the accrual of interest is discontinued on a loan when , in management 's opinion , the borrower may be unable to meet payments as they become due . when the interest accrual is discontinued , all unpaid accrued interest is reversed against earnings when considered uncollectible . interest income accrued in the prior year , if any , is charged to the allowance for loan losses . interest income is subsequently recognized only to the extent cash payments are received and the loan is returned to accruing status . certain non-accrual , substantially delinquent and renegotiated loans classified as troubled debt restructures may be considered to be impaired in accordance with asc 310 , receivables . under asc 310-10 , a loan is impaired when , based on current information or events , it is probable all amounts due ( principal and interest ) according to the contractual terms of the loan agreement are uncollectible . renegotiated consumer loans classified as troubled debt restructures are considered to be impaired . in applying the provisions of asc 310-10 , the corporation considers all other investments in one-to-four family residential loans and consumer installment loans to be homogeneous and therefore excluded from separate identification for evaluation of impairment . impaired loans are carried at the fair value of collateral if the loan is collateral dependent , or the present value of estimated future cash flows using the loan 's existing rate . a portion of the allowance for loan losses is allocated to impaired loans if the value of such loans is deemed to be less than the unpaid balance . if these allocations cause the allowance for loan losses to increase , such increase is reported as a component of the provision for loan losses . loan losses are charged against the allowance when management believes the uncollectability of the loan is confirmed . the valuation would be considered level 3 , consisting of appraisals of underlying collateral and discounted cash flow analysis . 37 part ii : item 7. and item 7a . management 's discussion and analysis of financial condition and results of operations the cares act and the interagency statement on loan modifications encourage financial institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations due to the effects of covid-19 . additionally , section 4013 of the cares act further provides that a qualified loan modification is exempt by law from classification as a troubled debt restructure as defined by gaap , from the period beginning march 1 , 2020 until the earlier of december 31 , 2020 or the date that is 60 days after the date on which the national emergency concerning the covid-19 outbreak under the national emergencies act ( 50 u.s.c . 1601 et seq . ) terminates . the 2021 consolidated appropriations act extended the expiration date for covid-related loan modifications exempt from troubled debt restructuring classification under gaap until the earlier of january 1 , 2022 , or 60 days after the termination of the national emergency . additional details of the corporation 's loan modifications under these programs are included in the `` loan quality `` section of this management 's discussion and analysis of financial condition and results of operations . purchased loans loans acquired in a business combination with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be purchased credit impaired . evidence of credit quality deterioration as of purchase dates may include information such as past-due and nonaccrual status , borrower credit risk grade and recent loan to value percentages . purchased credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality ( asc 310-30 ) . these loans are initially measured at fair value based upon expected cash flows without anticipation of prepayments and includes estimated future credit losses expected to be incurred over the life of the loans . as a result , related discounts are recognized subsequently through accretion based on the expected cash flows of the acquired loans . for purposes of applying asc 310-30 , loans acquired in business combinations are individually evaluated for the initial fair value measurement . accordingly , allowances for credit losses related to these loans are not carried over at the acquisition date . the difference between contractually required payments and the cash flows expected to be collected at acquisition is referred to as the nonaccretable portion of the fair value discount or premium . the accretable portion of the fair value discount or premium is the difference between the expected cash flows and the net present value of expected cash flows , with such difference accreted into income over the term of the loans . acquired loans not accounted for under asc 310-30 are accounted for under asc 310-20 , which allows the fair value adjustment to be accreted into income over the remaining life of the loans . story_separator_special_tag for small businesses , eligible nonprofits and certain others , the cares act established a paycheck protection program ( โ ppp โ ) , which is administered by the small business administration ( โ sba โ ) . on april 24 , 2020 , the paycheck protection program and health care enhancement act was enacted . among other things , this legislation amends the initial cares act program by raising the appropriation level for ppp loans from $ 349 billion to $ 670 billion . the ppp was further modified on june 5 , 2020 with the adoption of the paycheck protection program flexibility act ( the flexibility act ) , which extended the maturity date for ppp loans from two years to five years for loans disbursed on or after the date of enactment of the flexibility act . for ppp loans disbursed prior to such enactment , the flexibility act permits the borrower and lender to mutually agree to extend the term of the loan to five years . the bank has actively participated in assisting its customers with applications for resources through the program . ppp loans earn interest at a fixed rate of 1 percent and primarily have a two-year term . the bank anticipates that the majority of these loans will ultimately be forgiven , in whole or in part , by the sba in accordance with the terms of the program . under the terms of the ppp , the loans are fully guaranteed by the sba . as of december 31 , 2020 , the bank had over 4,400 ppp loans representing $ 667.1 million , which is net of $ 12.5 million of deferred processing fee income and costs . the weighted-average deferred processing fee on ppp loans was approximately 3.09 percent and is recognized over the term of the loan . if a loan is forgiven by the sba or paid off by the borrower prior to maturity , any unamortized portion of the fee will be recognized immediately . during the year ended december 31 , 2020 , the corporation recognized interest income on ppp loans of $ 6.2 million and $ 16.2 million of ppp loan related deferred processing fee income as a yield adjustment . 40 part ii : item 7. and item 7a . management 's discussion and analysis of financial condition and results of operations the 2021 consolidated appropriations act on december 27 , 2020 , a $ 900 billion covid-19 relief package , as passed by the u.s. congress , was signed into law as part of the 2021 consolidated appropriations act ( โ caa โ ) that provides federal government funding through the end of its 2021 fiscal year . in addition to delivering direct stimulus payments to certain individuals , an increase in unemployment insurance benefits , an extension of the eviction moratorium , relief to the healthcare industry , and additional aid to various other businesses , the covid-19-related provisions of the caa provide for ( i ) an additional $ 284 billion in funding for the ppp , through march 31 , 2021 , ( ii ) an extension of the temporary delay for implementation of the cecl accounting standard , and ( iii ) further suspension of the troubled debt restructure assessment and reporting requirements for financial institutions under gaap . main street business lending program on april 9 , 2020 , the federal reserve announced its proposed main street emergency lending initiative as an additional measure to provide much-needed financial support to small and mid-sized businesses adversely impacted by the covid-19 pandemic . the main street programs are intended to provide credit flows to financial institutions so that they can provide loans to eligible small and mid-sized businesses . the funds available through the main street programs amount to $ 600 billion . under this initiative , which was modified and supplemented by the federal reserve on april 30 , 2020 , three loan facilities have been established for `` for profit `` entities : ( i ) the main street new loan facility ( the โ msnlf ) , ( ii ) the main street priority loan facility ( the โ msplf โ ) ; and ( iii ) the main street expanded loan facility ( the โ mself โ ) , each of which was authorized by the federal reserve under section 13 ( 3 ) of the federal reserve act . all three facilities use the same eligible lender and eligible borrower criteria , and have many of the same features , including the same maturity , interest rate , deferral of principal and interest for one year , and ability of the borrower to prepay without penalty . as required by the cares act , main street loans are full-recourse to the borrower and are not forgivable . the loan types differ in amounts and other terms , including in how they interact with the eligible borrower 's existing outstanding debt . the proposed minimum loan amounts under the msnlf and the msplf were initially set at $ 250,000 , but were lowered to $ 100,000 by the federal reserve effective october 30 , 2020. the minimum loan amount under the mself has been set at $ 10 million . the maximum loan amount under all three programs is dependent upon the borrower 's financial position . the bank was an approved lender for all three main street programs until the program 's termination on january 8 , 2021. paycheck protection program liquidity facility to provide liquidity to small business lenders and the broader credit markets , to help stabilize the financial system , and to provide economic relief to small businesses nationwide , the federal reserve authorized each of the federal reserve banks to participate in the paycheck protection program liquidity facility ( the โ pppl facility โ ) , pursuant to the federal reserve act . under the pppl facility , each of
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2,536 | due to the typical size of most of tvg 's and vim 's contracts , it is unlikely the loss or termination of any individual tvg or vim contract would have a material adverse effect on our business , financial condition or results of operations . ppg the contracts within the products group were either performance based or fee for service and may have required sales , marketing and distribution of a product . in performance based contracts , we typically provided and financed a portion , if not all , of the commercial activities in support of a brand in return for a percentage of product sales . an important performance parameter was normally the level of sales or prescriptions attained by the product during the period of our marketing or promotional responsibility , and in some cases , for periods after our promotional activities have ended . critical accounting policies we prepare our financial statements in accordance with u.s. generally accepted accounting principles ( gaap ) . the preparation of financial statements and related disclosures in conformity with gaap requires our management to make judgments , estimates and assumptions at a specific point in time that affect the amounts reported in the consolidated financial statements and disclosed in the accompanying notes . these assumptions and estimates are inherently uncertain . outlined below are accounting policies , which are important to our financial position and results of operations , and require the most significant judgments on the part of our management in their application . some of those judgments can be subjective and complex . management 's estimates are based on historical experience , information from third-party professionals , facts and circumstances available at the time and various other assumptions that are believed to be reasonable . actual results could differ from those estimates . additionally , changes in estimates could have a material impact on our consolidated results of operations in any one period . for a summary of all of our significant accounting policies , including the accounting policies discussed below , see note 1 to our consolidated financial statements . revenue recognition and associated costs revenue and associated costs under pharmaceutical detailing contracts are generally based on the number of physician details made or the number of sales representatives utilized . with respect to risk-based contracts , all or a portion of revenues earned are based on contractually defined percentages of either product revenues or the market value of prescriptions written and filled in a given period . these contracts are generally for terms of one to two years and may be renewed or extended . the majority of these contracts , however , are terminable by the customer for any reason upon 30 to 90 days ' notice . certain contracts provide for termination payments if the customer terminates us without cause . typically , however , these penalties do not offset the revenue we could have earned under the contract or the costs we may incur as a result of its termination . the loss or termination of a large pharmaceutical detailing contract or the loss of multiple contracts could have a material adverse effect on our business , financial condition or results of operations . revenue and associated costs under marketing service contracts are generally based on a single deliverable such as a promotional program , accredited continuing medical education seminar or marketing research/advisory program . the contracts are generally terminable by the customer for any reason . upon termination , the customer is generally responsible for payment for all work completed to date , plus the cost of any nonrefundable commitments made on behalf of the customer . there is significant customer concentration in our pharmakon business , and the loss or termination of one or more of pharmakon 's large master service agreements would have a material adverse on our business , financial condition or results of operations . due to the typical size of most contracts of tvg and vim , it is unlikely the loss or termination of any individual tvg or vim contract would have a material adverse effect on our business , financial condition or results of operations . 21 pdi , inc. annual report on form 10-k ( continued ) revenue is recognized on product detailing programs and certain marketing , promotional and medical education contracts as services are performed and the right to receive payment for the services is assured . many of the product detailing contracts allow for additional periodic incentive fees to be earned if certain performance benchmarks have been attained . revenue earned from incentive fees are recognized in the period earned and when we are reasonably assured that payment will be made . under performance based contracts , revenue is recognized when the performance based parameters are achieved . many contracts also stipulate penalties if agreed upon performance benchmarks have not been met . revenue is recognized net of any potential penalties until the performance criteria relating to the penalties have been achieved . commissions based revenue is recognized when performance is completed less an allowance for estimated cancellations based on contractual commitments and experience . revenue and associated costs from marketing research contracts are recognized upon completion of the contract . these contracts are generally short-term in nature , typically lasting two to six months . cost of services consists primarily of the costs associated with executing product detailing programs , performance based contracts or other sales and marketing services identified in the contract . cost of services includes personnel costs and other costs associated with executing a product detailing or other marketing or promotional program , as well as the initial direct costs associated with staffing a product detailing program . such costs include , but are not limited to , facility rental fees , honoraria and travel expenses , sample expenses and other promotional expenses . story_separator_special_tag because the likelihood of paying these penalties was deemed remote , the accrual was reversed in the fourth quarter of 2007 and recognized as revenue . the decrease in gross profit attributable to the marketing services segment was commensurate with the decrease in revenue discussed above as total gross profit decreased at all three business units . the gross profit percentage decreased to 44.1 % from 46.1 % in the comparable prior year period . the ppg segment had no gross profit in 2007 or 2006 . ( note : compensation and other selling , general and administrative ( other sg & a ) expense amounts for each segment contain allocated corporate overhead . ) replace_table_token_6_th the decrease in compensation expense for both sales services and marketing services segments in 2007 was the result of reduced headcount and unfilled executive positions when compared to 2006. as a percentage of total revenue , compensation expense increased to 20.9 % for 2007 from 11.7 % in 2006 primarily due to the decrease in revenue . the ppg segment did not have any compensation expense in 2007 or 2006. replace_table_token_7_th total other sg & a expenses decreased primarily due to the following : 1 ) a decrease in audit and related costs of $ 1.5 million ; 2 ) a decrease in facility costs of approximately $ 390,000 ; 3 ) a reduction in business insurance expense of approximately $ 400,000 ; and 4 ) approximately $ 600,000 less in marketing expense . these decreases were partially offset by an approximately $ 550,000 accrual in state franchise taxes pertaining to one particular state 's assessment . as a percentage of total revenue , other sg & a expenses increased to 17.1 % from 9.5 % in 2006 due to the decrease in revenue in 2007. executive severance in 2007 , we did not have any executive severance costs . in 2006 , we incurred approximately $ 573,000 in executive severance costs that related to the departure of one executive . legal and related costs in 2007 , we had legal expenses of approximately $ 335,000 , which primarily pertained to legal expenses incurred by us in the ordinary course of business . in 2006 , we had a net credit to legal expense of $ 3.3 million . the credit to legal expense included approximately $ 3.5 million in cash received in relation to the cellegy litigation matter and approximately $ 516,000 in credits related to the reversing of the california class action lawsuit accrual . for details on both legal matters , see note 9 to the consolidated financial statements . 27 pdi , inc. annual report on form 10-k ( continued ) facilities realignment in 2007 , we had net charges of approximately $ 1.0 million primarily related to the impairment of fixed assets and other expenses related to our exiting the computer data center space at our saddle river , new jersey location in december 2007. total charges in 2007 for the sales services segment were approximately $ 1.0 million and approximately $ 26,000 was credited to the marketing services segment . in 2006 , we had net charges of approximately $ 657,000 related to unused office space capacity at our saddle river , new jersey and dresher , pennsylvania locations and approximately $ 1.3 million in expense related to the impairment of fixed assets associated with the unused office space at these facilities . total charges in 2006 for the sales services segment were approximately $ 1.3 million and approximately $ 675,000 was charged to the marketing services segment . replace_table_token_8_th the operating loss in 2007 is primarily attributable to the decline in revenue and gross profit in the sales services segment due to the termination of sales force contracts mentioned previously . there was an operating loss in 2007 for the marketing services segment of $ 362,000 compared to operating income of $ 2.8 million in 2006. the decrease in operating income from marketing services segment was primarily attributable to a decrease in revenue and gross profit at all three units due to fewer projects . there was operating income of $ 3.1 million in 2006 in the ppg segment which consisted entirely of settlement payments from cellegy , net of legal expenses . there was no operating income from ppg in 2007. interest income , net interest income , net , for 2007 and 2006 was approximately $ 6.1 million and $ 4.7 million , respectively . the increase is primarily attributable to an increase in interest rates for 2007 as well as larger available cash balances . provision for income taxes we recorded a provision for income taxes of $ 1.8 million for 2007 , compared to a benefit for income taxes of $ 724,000 for 2006. our overall effective tax rate was a provision of 21.5 % and a benefit of 6.8 % for 2007 and 2006 , respectively . the tax provision for 2007 is primarily attributable to the full valuation allowance on the net deferred tax assets except for the basis difference in goodwill . federal tax attribute carryforwards at december 31 , 2007 , consist primarily of approximately $ 9.7 million of net operating losses and $ 339,000 of capital losses . in addition , we have approximately $ 47.9 million of state net operating losses carryforwards . the utilization of the federal carryforwards as an available offset to future taxable income is subject to limitations under federal income tax laws . if the federal net operating losses are not utilized , they will expire in 2027. the capital losses can only be utilized against capital gains and $ 339,000 will expire in 2009 . ( loss ) income from continuing operations there was a loss from continuing operations for 2007 of approximately $ 10.0 million , compared to income from continuing operations of approximately $ 11.4 million for 2006. discontinued operations revenue from discontinued operations for 2006 was approximately $ 1.9
| liquidity and capital resources as of december 31 , 2007 , we had cash and cash equivalents and short-term investments of approximately $ 107.0 million and working capital of $ 111.6 million , compared to cash and cash equivalents and short-term investments of approximately $ 114.7 million and working capital of approximately $ 112.2 million at december 31 , 2006. during 2007 , net cash used in operating activities was $ 6.2 million as compared to net cash provided by operating activities of $ 19.7 million during 2006. the primarily use of cash was to fund operations due to the decline in operating revenue in all segments in 2007. additionally , unearned revenue declined by $ 5.8 million due to the decline in revenue and a significant customer revising its procurement policy ( we can no longer pre-bill for services ) , partially offset by the collection of accounts receivable of $ 2.7 million and receipt of a federal income tax refund of $ 1.9 million . the net changes in the โ other changes in assets and liabilities โ section of the consolidated statement of cash flows may fluctuate depending on a number of factors , including the number and size of programs , contract terms and other timing issues . these variations may change in size and direction with each reporting period . as of december 31 , 2007 , we had $ 3.5 million of unbilled costs and accrued profits on contracts in progress . when services are performed in advance of billing , the value of such services is recorded as unbilled costs and accrued profits on contracts in progress . normally , all unbilled costs and accrued profits are earned and billed within 12 months from the end of the respective period .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources as of december 31 , 2007 , we had cash and cash equivalents and short-term investments of approximately $ 107.0 million and working capital of $ 111.6 million , compared to cash and cash equivalents and short-term investments of approximately $ 114.7 million and working capital of approximately $ 112.2 million at december 31 , 2006. during 2007 , net cash used in operating activities was $ 6.2 million as compared to net cash provided by operating activities of $ 19.7 million during 2006. the primarily use of cash was to fund operations due to the decline in operating revenue in all segments in 2007. additionally , unearned revenue declined by $ 5.8 million due to the decline in revenue and a significant customer revising its procurement policy ( we can no longer pre-bill for services ) , partially offset by the collection of accounts receivable of $ 2.7 million and receipt of a federal income tax refund of $ 1.9 million . the net changes in the โ other changes in assets and liabilities โ section of the consolidated statement of cash flows may fluctuate depending on a number of factors , including the number and size of programs , contract terms and other timing issues . these variations may change in size and direction with each reporting period . as of december 31 , 2007 , we had $ 3.5 million of unbilled costs and accrued profits on contracts in progress . when services are performed in advance of billing , the value of such services is recorded as unbilled costs and accrued profits on contracts in progress . normally , all unbilled costs and accrued profits are earned and billed within 12 months from the end of the respective period .
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Suspicious Activity Report : due to the typical size of most of tvg 's and vim 's contracts , it is unlikely the loss or termination of any individual tvg or vim contract would have a material adverse effect on our business , financial condition or results of operations . ppg the contracts within the products group were either performance based or fee for service and may have required sales , marketing and distribution of a product . in performance based contracts , we typically provided and financed a portion , if not all , of the commercial activities in support of a brand in return for a percentage of product sales . an important performance parameter was normally the level of sales or prescriptions attained by the product during the period of our marketing or promotional responsibility , and in some cases , for periods after our promotional activities have ended . critical accounting policies we prepare our financial statements in accordance with u.s. generally accepted accounting principles ( gaap ) . the preparation of financial statements and related disclosures in conformity with gaap requires our management to make judgments , estimates and assumptions at a specific point in time that affect the amounts reported in the consolidated financial statements and disclosed in the accompanying notes . these assumptions and estimates are inherently uncertain . outlined below are accounting policies , which are important to our financial position and results of operations , and require the most significant judgments on the part of our management in their application . some of those judgments can be subjective and complex . management 's estimates are based on historical experience , information from third-party professionals , facts and circumstances available at the time and various other assumptions that are believed to be reasonable . actual results could differ from those estimates . additionally , changes in estimates could have a material impact on our consolidated results of operations in any one period . for a summary of all of our significant accounting policies , including the accounting policies discussed below , see note 1 to our consolidated financial statements . revenue recognition and associated costs revenue and associated costs under pharmaceutical detailing contracts are generally based on the number of physician details made or the number of sales representatives utilized . with respect to risk-based contracts , all or a portion of revenues earned are based on contractually defined percentages of either product revenues or the market value of prescriptions written and filled in a given period . these contracts are generally for terms of one to two years and may be renewed or extended . the majority of these contracts , however , are terminable by the customer for any reason upon 30 to 90 days ' notice . certain contracts provide for termination payments if the customer terminates us without cause . typically , however , these penalties do not offset the revenue we could have earned under the contract or the costs we may incur as a result of its termination . the loss or termination of a large pharmaceutical detailing contract or the loss of multiple contracts could have a material adverse effect on our business , financial condition or results of operations . revenue and associated costs under marketing service contracts are generally based on a single deliverable such as a promotional program , accredited continuing medical education seminar or marketing research/advisory program . the contracts are generally terminable by the customer for any reason . upon termination , the customer is generally responsible for payment for all work completed to date , plus the cost of any nonrefundable commitments made on behalf of the customer . there is significant customer concentration in our pharmakon business , and the loss or termination of one or more of pharmakon 's large master service agreements would have a material adverse on our business , financial condition or results of operations . due to the typical size of most contracts of tvg and vim , it is unlikely the loss or termination of any individual tvg or vim contract would have a material adverse effect on our business , financial condition or results of operations . 21 pdi , inc. annual report on form 10-k ( continued ) revenue is recognized on product detailing programs and certain marketing , promotional and medical education contracts as services are performed and the right to receive payment for the services is assured . many of the product detailing contracts allow for additional periodic incentive fees to be earned if certain performance benchmarks have been attained . revenue earned from incentive fees are recognized in the period earned and when we are reasonably assured that payment will be made . under performance based contracts , revenue is recognized when the performance based parameters are achieved . many contracts also stipulate penalties if agreed upon performance benchmarks have not been met . revenue is recognized net of any potential penalties until the performance criteria relating to the penalties have been achieved . commissions based revenue is recognized when performance is completed less an allowance for estimated cancellations based on contractual commitments and experience . revenue and associated costs from marketing research contracts are recognized upon completion of the contract . these contracts are generally short-term in nature , typically lasting two to six months . cost of services consists primarily of the costs associated with executing product detailing programs , performance based contracts or other sales and marketing services identified in the contract . cost of services includes personnel costs and other costs associated with executing a product detailing or other marketing or promotional program , as well as the initial direct costs associated with staffing a product detailing program . such costs include , but are not limited to , facility rental fees , honoraria and travel expenses , sample expenses and other promotional expenses . story_separator_special_tag because the likelihood of paying these penalties was deemed remote , the accrual was reversed in the fourth quarter of 2007 and recognized as revenue . the decrease in gross profit attributable to the marketing services segment was commensurate with the decrease in revenue discussed above as total gross profit decreased at all three business units . the gross profit percentage decreased to 44.1 % from 46.1 % in the comparable prior year period . the ppg segment had no gross profit in 2007 or 2006 . ( note : compensation and other selling , general and administrative ( other sg & a ) expense amounts for each segment contain allocated corporate overhead . ) replace_table_token_6_th the decrease in compensation expense for both sales services and marketing services segments in 2007 was the result of reduced headcount and unfilled executive positions when compared to 2006. as a percentage of total revenue , compensation expense increased to 20.9 % for 2007 from 11.7 % in 2006 primarily due to the decrease in revenue . the ppg segment did not have any compensation expense in 2007 or 2006. replace_table_token_7_th total other sg & a expenses decreased primarily due to the following : 1 ) a decrease in audit and related costs of $ 1.5 million ; 2 ) a decrease in facility costs of approximately $ 390,000 ; 3 ) a reduction in business insurance expense of approximately $ 400,000 ; and 4 ) approximately $ 600,000 less in marketing expense . these decreases were partially offset by an approximately $ 550,000 accrual in state franchise taxes pertaining to one particular state 's assessment . as a percentage of total revenue , other sg & a expenses increased to 17.1 % from 9.5 % in 2006 due to the decrease in revenue in 2007. executive severance in 2007 , we did not have any executive severance costs . in 2006 , we incurred approximately $ 573,000 in executive severance costs that related to the departure of one executive . legal and related costs in 2007 , we had legal expenses of approximately $ 335,000 , which primarily pertained to legal expenses incurred by us in the ordinary course of business . in 2006 , we had a net credit to legal expense of $ 3.3 million . the credit to legal expense included approximately $ 3.5 million in cash received in relation to the cellegy litigation matter and approximately $ 516,000 in credits related to the reversing of the california class action lawsuit accrual . for details on both legal matters , see note 9 to the consolidated financial statements . 27 pdi , inc. annual report on form 10-k ( continued ) facilities realignment in 2007 , we had net charges of approximately $ 1.0 million primarily related to the impairment of fixed assets and other expenses related to our exiting the computer data center space at our saddle river , new jersey location in december 2007. total charges in 2007 for the sales services segment were approximately $ 1.0 million and approximately $ 26,000 was credited to the marketing services segment . in 2006 , we had net charges of approximately $ 657,000 related to unused office space capacity at our saddle river , new jersey and dresher , pennsylvania locations and approximately $ 1.3 million in expense related to the impairment of fixed assets associated with the unused office space at these facilities . total charges in 2006 for the sales services segment were approximately $ 1.3 million and approximately $ 675,000 was charged to the marketing services segment . replace_table_token_8_th the operating loss in 2007 is primarily attributable to the decline in revenue and gross profit in the sales services segment due to the termination of sales force contracts mentioned previously . there was an operating loss in 2007 for the marketing services segment of $ 362,000 compared to operating income of $ 2.8 million in 2006. the decrease in operating income from marketing services segment was primarily attributable to a decrease in revenue and gross profit at all three units due to fewer projects . there was operating income of $ 3.1 million in 2006 in the ppg segment which consisted entirely of settlement payments from cellegy , net of legal expenses . there was no operating income from ppg in 2007. interest income , net interest income , net , for 2007 and 2006 was approximately $ 6.1 million and $ 4.7 million , respectively . the increase is primarily attributable to an increase in interest rates for 2007 as well as larger available cash balances . provision for income taxes we recorded a provision for income taxes of $ 1.8 million for 2007 , compared to a benefit for income taxes of $ 724,000 for 2006. our overall effective tax rate was a provision of 21.5 % and a benefit of 6.8 % for 2007 and 2006 , respectively . the tax provision for 2007 is primarily attributable to the full valuation allowance on the net deferred tax assets except for the basis difference in goodwill . federal tax attribute carryforwards at december 31 , 2007 , consist primarily of approximately $ 9.7 million of net operating losses and $ 339,000 of capital losses . in addition , we have approximately $ 47.9 million of state net operating losses carryforwards . the utilization of the federal carryforwards as an available offset to future taxable income is subject to limitations under federal income tax laws . if the federal net operating losses are not utilized , they will expire in 2027. the capital losses can only be utilized against capital gains and $ 339,000 will expire in 2009 . ( loss ) income from continuing operations there was a loss from continuing operations for 2007 of approximately $ 10.0 million , compared to income from continuing operations of approximately $ 11.4 million for 2006. discontinued operations revenue from discontinued operations for 2006 was approximately $ 1.9
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2,537 | through this process , which typically takes several weeks , we are able to assess the characteristics and size of the prospect 's service revenue , identify potential areas of performance improvement , and formulate our proposal for managing the prospect 's service revenue . the length of our sales cycle for a new client , inclusive of the service performance analysis process and measured from our first formal discussion with the client until execution of a new client contract , is typically six months and has decreased in recent periods . implementation cycle . after entering into an engagement with a new client , and to a lesser extent after adding an engagement with an existing client , we incur sales and marketing expenses related to the commissions owed to our sales personnel . these commissions are based on realized revenue that the contract delivers over time and on the estimated total annual contract value . commission amounts based on realized revenue are expensed in the period the related revenue is recognized by the company . upfront commissions based on estimated total annual contract value are capitalizable as contract acquisition costs and expensed ratably over the expected life of the applicable contract or five years if the contract is between the company and one of its long-standing clients . we also make upfront investments in technology and personnel to support the engagement . these upfront commissions and investments are typically incurred one to three months before we begin generating sales and recognizing revenue . accordingly , in a given quarter , an increase in new clients , and , to a lesser extent , an increase in engagements with existing clients , or a significant increase in the contract value associated with such new clients and engagements , will negatively impact our gross margin and operating margins until we begin to achieve anticipated sales levels associated with the new engagements , which is typically two to three quarters after we begin selling contracts on behalf of our clients . although we expect new client engagements to contribute to our operating profitability over time , in the initial periods of a client relationship , our near-term profitability can be negatively impacted by slower-than anticipated growth in revenues for these engagements as well as the impact of the upfront costs we incur , the lower initial level of associated service sales team productivity and lack of mature data and technology integration with the client . as a result , an increase in the mix of new 16 clients as a percentage of total clients may initially have a negative impact on our operating results . similarly , a decline in the ratio of new clients to total clients may positively impact our near-term operating results . contract terms . a significant portion of our revenue comes from our pay-for-performance model . under our pay-for-performance model , we earn commissions based on the value of service contracts we sell on behalf of our clients . in some cases , we earn additional performance-based commissions for exceeding pre-determined service performance targets . our new client contracts typically have an initial term between one and two years . our contracts generally require our clients to deliver a minimum value of qualifying service revenue contracts for us to renew on their behalf during a specified period . to the extent that our clients do not meet their minimum contractual commitments over a specified period , they may be subject to fees for the shortfall . our client contracts are cancelable with relatively short notice and can be subject to the payment of an early termination fee by the client . the amount of this fee is based on the length of the remaining term and value of the contract . merger and acquisition activity . our clients , particularly those in the technology sector , participate in an active environment for mergers and acquisitions . large technology companies have maintained active acquisition programs to increase the breadth and depth of their product and service offerings and small and mid-sized companies have combined to better compete with large technology companies . a number of our clients have merged , purchased other companies or been acquired by other companies . we expect merger and acquisition activity to continue to occur in the future . the impact of these transactions on our business can vary . acquisitions of other companies by our clients can provide us with the opportunity to pursue additional business to the extent the acquired company is not already one of our clients . similarly , when a client is acquired , we may be able to use our relationship with the acquired company to build a relationship with the acquirer . in some cases , we have been able to maintain our relationship with an acquired client even where the acquiring company handles its other service contract renewals through internal resources . in other cases , however , acquirers have elected to terminate or not renew our contract with the acquired company . seasonality . we experience a seasonal variance in our revenue which is typically higher in the fourth quarter when many of our clients ' products come up for renewal , and for the third quarter of the year which is typically lower as a result of lower or flat renewal volume corresponding to the timing of our customers ' product sales particularly in the international regions . the impact of this seasonal fluctuation can be amplified if the economy as a whole is experiencing disruption or uncertainty , leading to deferral of some renewal decisions . foreign currency . our results of operations and cash flows are subject to fluctuations due to changes in foreign currency exchange rates , particularly changes in the euro , british pound , singapore dollar , philippine peso , bulgarian lev and malaysian ringgit . story_separator_special_tag story_separator_special_tag roman ' , sans-serif ; font-size:10pt ; font-weight:400 ; line-height:120 % `` > as of december 31 , 2020 and 2019 , we did not have any relationships with other entities or financial partnerships such as entities often referred to as structured finance or special-purpose entities , which have been established for facilitating off-balance sheet arrangements or other contractually narrow or limited purposes . critical accounting policies and estimates general the preparation of financial statements in conformity with gaap requires management to use judgment in the application of accounting policies , including making estimates and assumptions . if our judgment or interpretation of the facts and circumstances relating to various transactions had been different or different assumptions were made , it is possible that different accounting policies would have been applied , resulting in different financial results or a different presentation of our financial statements . our discussion and analysis of financial condition and results of operations is based on our consolidated financial statements , which have been prepared in accordance with gaap . estimates , judgments and assumptions are based on historical experiences that we believe to be reasonable under the circumstances . from time to time , we re-evaluate those estimates and assumptions . the company 's significant accounting policies are described in notes to the consolidated financial statements , `` note 2 โ summary of significant accounting policies . โ these policies were followed in preparing the consolidated financial statements as of and for the year ended december 31 , 2020 and are consistent with the year ended december 31 , 2019. the company has identified the following as critical accounting policies . these accounting policies have the most significant impact on our financial condition and results of operations and require management 's most difficult , subjective and or complex estimates . revenue recognition the company derives its revenues primarily from selling and professional services . revenue is recognized in accordance with asc 606 when performance obligations identified in a contract are satisfied , which is achieved through the transfer of control of the services to our client . selling services selling services primarily consist of variable fees earned from the following categories of selling motions : ( 1 ) digital sales , ( 2 ) customer success , and ( 3 ) channel management . professional services professional services primarily consist of fixed fees for providing data integration at scale with our systems and processes , combined with client data enhancement , enablement and optimization . professional services revenues from fixed consideration are recognized based on proportional performance over the performance period which is typically concluded within 90 days of contract execution . multiple arrangements the company enters into contracts with multiple performance obligations that incorporate fixed consideration , pay-for-performance commissions and variable bonus commissions . judgment is required to estimate the amount of variable consideration to include when estimating the total contract consideration and how to allocate the consideration if one of the distinct performance obligations is not sold at ssp . performance obligations revenue is measured based on the consideration specified in a contract . individual services within a single contract are accounted separately if they are distinct . the total contract consideration , or transaction price , is allocated between the separate services identified in the contract based on their ssp . ssp is determined based on a cost plus margin analysis for selling 23 services and a standard hourly rate card for professional services . for professional services that are contractually priced differently from ssp , the company estimates ssp using a standard hourly rate card and allocates a portion of the total contract consideration to reflect professional services revenue at ssp . the company 's performance obligations are satisfied over time and revenue is recognized based on monthly or quarterly time increments and the variable volume of closed bookings during the period at the contractual commission rates for selling services , or proportional performance during the period at ssp for professional services . because the client simultaneously receives and consumes the benefit of the company 's selling services as provided , the time increment output method depicts the measure of progress in transferring control of the services to the client . while multiple selling motions in a contract are performed at various times and patterns throughout the month or quarter and the number of closed bookings vary in any given period , each time increment of a service activity is substantially the same and has the same pattern of transfer to the client , and therefore , represents a series of distinct performance obligations that form a single performance obligation . as a result , the company allocates all variable consideration in a contract to the selling services performance obligation in accordance with the variable consideration allocation exception provisions in asc 606 ( less amounts for which it is probable a significant reversal of revenue will occur when the uncertainties related to the variability are resolved ) and applies a single measure of progress to record revenue in the period based on when the output of the variable number of closed bookings occurs or when the variable performance metric is achieved . our revenue contracts often include promises to transfer services involving multiple selling motions to a client . determining whether those services are considered distinct performance obligations and qualify as a series of distinct performance obligations that represent a single performance obligation requires significant judgment . also , due to the continuous nature of providing services to our clients , judgment is required in determining when control of the services is transferred to the client . a significant portion of our contracts is based on a pay-for-performance model that provides the company with commissions and revenue based on a volume of closed bookings each time period and variable consideration if certain performance targets are achieved during a given period of time ( such as exceeding quarterly closure rate thresholds
| liquidity and capital resources our primary operating cash requirements include the payment of compensation and related employee costs and costs for our facilities and information technology infrastructure . historically , we have financed our operations from cash provided by our operating activities . we believe our existing cash and cash equivalents will be sufficient to meet our working capital and capital expenditure needs over the next twelve months . we have considered the effects of the covid-19 pandemic , including customer purchasing and renewal decisions in our assessment of the sufficiency of our liquidity and capital resources . we will continue to monitor our financial position as pandemic-related challenges develop over time . 21 as of december 31 , 2020 , we had cash and cash equivalents of $ 34.0 million , which primarily consist of demand deposits and money market mutual funds . included in cash and cash equivalents was $ 6.7 million held by our foreign subsidiaries used to satisfy their operating requirements . we consider the undistributed earnings of servicesource europe ltd. and servicesource international singapore pte . ltd. permanently reinvested in foreign operations and have not provided for u.s. income taxes on such earnings . as of december 31 , 2020 , the company had no unremitted earnings from our foreign subsidiaries .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources our primary operating cash requirements include the payment of compensation and related employee costs and costs for our facilities and information technology infrastructure . historically , we have financed our operations from cash provided by our operating activities . we believe our existing cash and cash equivalents will be sufficient to meet our working capital and capital expenditure needs over the next twelve months . we have considered the effects of the covid-19 pandemic , including customer purchasing and renewal decisions in our assessment of the sufficiency of our liquidity and capital resources . we will continue to monitor our financial position as pandemic-related challenges develop over time . 21 as of december 31 , 2020 , we had cash and cash equivalents of $ 34.0 million , which primarily consist of demand deposits and money market mutual funds . included in cash and cash equivalents was $ 6.7 million held by our foreign subsidiaries used to satisfy their operating requirements . we consider the undistributed earnings of servicesource europe ltd. and servicesource international singapore pte . ltd. permanently reinvested in foreign operations and have not provided for u.s. income taxes on such earnings . as of december 31 , 2020 , the company had no unremitted earnings from our foreign subsidiaries .
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Suspicious Activity Report : through this process , which typically takes several weeks , we are able to assess the characteristics and size of the prospect 's service revenue , identify potential areas of performance improvement , and formulate our proposal for managing the prospect 's service revenue . the length of our sales cycle for a new client , inclusive of the service performance analysis process and measured from our first formal discussion with the client until execution of a new client contract , is typically six months and has decreased in recent periods . implementation cycle . after entering into an engagement with a new client , and to a lesser extent after adding an engagement with an existing client , we incur sales and marketing expenses related to the commissions owed to our sales personnel . these commissions are based on realized revenue that the contract delivers over time and on the estimated total annual contract value . commission amounts based on realized revenue are expensed in the period the related revenue is recognized by the company . upfront commissions based on estimated total annual contract value are capitalizable as contract acquisition costs and expensed ratably over the expected life of the applicable contract or five years if the contract is between the company and one of its long-standing clients . we also make upfront investments in technology and personnel to support the engagement . these upfront commissions and investments are typically incurred one to three months before we begin generating sales and recognizing revenue . accordingly , in a given quarter , an increase in new clients , and , to a lesser extent , an increase in engagements with existing clients , or a significant increase in the contract value associated with such new clients and engagements , will negatively impact our gross margin and operating margins until we begin to achieve anticipated sales levels associated with the new engagements , which is typically two to three quarters after we begin selling contracts on behalf of our clients . although we expect new client engagements to contribute to our operating profitability over time , in the initial periods of a client relationship , our near-term profitability can be negatively impacted by slower-than anticipated growth in revenues for these engagements as well as the impact of the upfront costs we incur , the lower initial level of associated service sales team productivity and lack of mature data and technology integration with the client . as a result , an increase in the mix of new 16 clients as a percentage of total clients may initially have a negative impact on our operating results . similarly , a decline in the ratio of new clients to total clients may positively impact our near-term operating results . contract terms . a significant portion of our revenue comes from our pay-for-performance model . under our pay-for-performance model , we earn commissions based on the value of service contracts we sell on behalf of our clients . in some cases , we earn additional performance-based commissions for exceeding pre-determined service performance targets . our new client contracts typically have an initial term between one and two years . our contracts generally require our clients to deliver a minimum value of qualifying service revenue contracts for us to renew on their behalf during a specified period . to the extent that our clients do not meet their minimum contractual commitments over a specified period , they may be subject to fees for the shortfall . our client contracts are cancelable with relatively short notice and can be subject to the payment of an early termination fee by the client . the amount of this fee is based on the length of the remaining term and value of the contract . merger and acquisition activity . our clients , particularly those in the technology sector , participate in an active environment for mergers and acquisitions . large technology companies have maintained active acquisition programs to increase the breadth and depth of their product and service offerings and small and mid-sized companies have combined to better compete with large technology companies . a number of our clients have merged , purchased other companies or been acquired by other companies . we expect merger and acquisition activity to continue to occur in the future . the impact of these transactions on our business can vary . acquisitions of other companies by our clients can provide us with the opportunity to pursue additional business to the extent the acquired company is not already one of our clients . similarly , when a client is acquired , we may be able to use our relationship with the acquired company to build a relationship with the acquirer . in some cases , we have been able to maintain our relationship with an acquired client even where the acquiring company handles its other service contract renewals through internal resources . in other cases , however , acquirers have elected to terminate or not renew our contract with the acquired company . seasonality . we experience a seasonal variance in our revenue which is typically higher in the fourth quarter when many of our clients ' products come up for renewal , and for the third quarter of the year which is typically lower as a result of lower or flat renewal volume corresponding to the timing of our customers ' product sales particularly in the international regions . the impact of this seasonal fluctuation can be amplified if the economy as a whole is experiencing disruption or uncertainty , leading to deferral of some renewal decisions . foreign currency . our results of operations and cash flows are subject to fluctuations due to changes in foreign currency exchange rates , particularly changes in the euro , british pound , singapore dollar , philippine peso , bulgarian lev and malaysian ringgit . story_separator_special_tag story_separator_special_tag roman ' , sans-serif ; font-size:10pt ; font-weight:400 ; line-height:120 % `` > as of december 31 , 2020 and 2019 , we did not have any relationships with other entities or financial partnerships such as entities often referred to as structured finance or special-purpose entities , which have been established for facilitating off-balance sheet arrangements or other contractually narrow or limited purposes . critical accounting policies and estimates general the preparation of financial statements in conformity with gaap requires management to use judgment in the application of accounting policies , including making estimates and assumptions . if our judgment or interpretation of the facts and circumstances relating to various transactions had been different or different assumptions were made , it is possible that different accounting policies would have been applied , resulting in different financial results or a different presentation of our financial statements . our discussion and analysis of financial condition and results of operations is based on our consolidated financial statements , which have been prepared in accordance with gaap . estimates , judgments and assumptions are based on historical experiences that we believe to be reasonable under the circumstances . from time to time , we re-evaluate those estimates and assumptions . the company 's significant accounting policies are described in notes to the consolidated financial statements , `` note 2 โ summary of significant accounting policies . โ these policies were followed in preparing the consolidated financial statements as of and for the year ended december 31 , 2020 and are consistent with the year ended december 31 , 2019. the company has identified the following as critical accounting policies . these accounting policies have the most significant impact on our financial condition and results of operations and require management 's most difficult , subjective and or complex estimates . revenue recognition the company derives its revenues primarily from selling and professional services . revenue is recognized in accordance with asc 606 when performance obligations identified in a contract are satisfied , which is achieved through the transfer of control of the services to our client . selling services selling services primarily consist of variable fees earned from the following categories of selling motions : ( 1 ) digital sales , ( 2 ) customer success , and ( 3 ) channel management . professional services professional services primarily consist of fixed fees for providing data integration at scale with our systems and processes , combined with client data enhancement , enablement and optimization . professional services revenues from fixed consideration are recognized based on proportional performance over the performance period which is typically concluded within 90 days of contract execution . multiple arrangements the company enters into contracts with multiple performance obligations that incorporate fixed consideration , pay-for-performance commissions and variable bonus commissions . judgment is required to estimate the amount of variable consideration to include when estimating the total contract consideration and how to allocate the consideration if one of the distinct performance obligations is not sold at ssp . performance obligations revenue is measured based on the consideration specified in a contract . individual services within a single contract are accounted separately if they are distinct . the total contract consideration , or transaction price , is allocated between the separate services identified in the contract based on their ssp . ssp is determined based on a cost plus margin analysis for selling 23 services and a standard hourly rate card for professional services . for professional services that are contractually priced differently from ssp , the company estimates ssp using a standard hourly rate card and allocates a portion of the total contract consideration to reflect professional services revenue at ssp . the company 's performance obligations are satisfied over time and revenue is recognized based on monthly or quarterly time increments and the variable volume of closed bookings during the period at the contractual commission rates for selling services , or proportional performance during the period at ssp for professional services . because the client simultaneously receives and consumes the benefit of the company 's selling services as provided , the time increment output method depicts the measure of progress in transferring control of the services to the client . while multiple selling motions in a contract are performed at various times and patterns throughout the month or quarter and the number of closed bookings vary in any given period , each time increment of a service activity is substantially the same and has the same pattern of transfer to the client , and therefore , represents a series of distinct performance obligations that form a single performance obligation . as a result , the company allocates all variable consideration in a contract to the selling services performance obligation in accordance with the variable consideration allocation exception provisions in asc 606 ( less amounts for which it is probable a significant reversal of revenue will occur when the uncertainties related to the variability are resolved ) and applies a single measure of progress to record revenue in the period based on when the output of the variable number of closed bookings occurs or when the variable performance metric is achieved . our revenue contracts often include promises to transfer services involving multiple selling motions to a client . determining whether those services are considered distinct performance obligations and qualify as a series of distinct performance obligations that represent a single performance obligation requires significant judgment . also , due to the continuous nature of providing services to our clients , judgment is required in determining when control of the services is transferred to the client . a significant portion of our contracts is based on a pay-for-performance model that provides the company with commissions and revenue based on a volume of closed bookings each time period and variable consideration if certain performance targets are achieved during a given period of time ( such as exceeding quarterly closure rate thresholds
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2,538 | material events operations : in july 2011 , pan american oil company , llc ( โ pan american โ ) entered into a preliminary purchase and sale agreement with rio bravo oil , llc in which pan american agreed to purchase all of rio bravo oil llc 's right , title and interest in its approximate 27 % working interest and 23 % net revenue interest in certain leaseholds in the luling-edwards field . the purchase price was approximately $ 1.5 million in cash with a requirement to close on or before november 30 , 2011. the agreement was subsequently modified to include rio bravo 's approximate 3.345 % working interest and 12.5 % net revenue interest ( after overrides ) in certain leaseholds in the bateman field and the purchase price was increased to include approximately an additional $ 1.7 million in cash with the acquisition date extended until pan american was able to arrange funding . in february 2012 the agreement was modified again such that the assets included in the amended purchase and sale agreement included the original luling-edwards field leaseholds and an option to purchase the bateman field leaseholds . this transaction closed on february 13 , 2012. in november 2011 , pan american oil company , llc entered into two separate purchase and sale agreements with entities that were sold partial interests in the luling-edwards field by rio bravo oil , llc in march 2010. the agreements called for pan american to purchase approximately 20.75 % net revenue interest and 30 % working interest in the leaseholds in the luling-edwards field and had a combined purchase price of $ 300,000 in cash and the requirement of pan american to deliver $ 500,000 worth of the shares of preferred stock pan american receives in connection with a sale of its interests to a public company . on february 13 , 2012 , the company entered into a share exchange agreement with pan american . pursuant to the agreement , pan american exchanged its outstanding membership interests for 5,500,000 shares of rio bravo 's series a preferred stock and the assumption of approximately $ 3.3 million of liabilities . in june 2012 , the company consummated two transactions to acquire additional leasehold rights to acreage in guadeloupe and caldwell counties , texas . in the first agreement , the company entered into a purchase and sale agreement with numa luling , llc in which the company acquired all of numa luling , llc 's right , title and interest ( 25 % working interest and 25 % net revenue interest , subject to 25 % orri ) in leasehold rights to the same formation , the edwards formation , held by the company . the purchase price for the acquisition of interests held by numa luling , llc was 3,250,000 shares of series b preferred stock , which the company valued at $ 3.466 million . the second acquisition was an asset purchase agreement with eagle ford oil co , inc. in which the company acquired 80 % of the leasehold interests held by eagle ford oil co , inc .. the leaseholds acquired are for depths other than the edwards formation on the same acreage as the leaseholds owned by the company . as part of the agreement , the company agreed to carry the remaining 20 % interest for drilling and swabbing operations , but not for leasehold operating expenses . the purchase price was payment of approximately $ 2 million in cash plus a note in the amount of $ 225,000 plus the assumption of certain payment obligations to the bankruptcy estate of the previous owner of the leasehold rights . the payment of one obligation calls for the company to pay to the bankruptcy estate $ 5,000 per well drilled to a maximum of 200 wells and if that total is not met a balloon payment is due on march 16 , 2016 for the difference between $ 1 million and the per well amount funded through march 16 , 2016. in 2012 , the third party operator for the company 's leasehold interests commenced several drilling and work-over programs targeting three different depths within the buda and edwards formations . the first program started by the third party operator was an attempt to test for recompleting the wells drilled in the 2010 drilling program that were all dry holes that were acquired by the company with their purchase of pan american oil co , llc and numa luling , llc . during 2012 the company began recomplete work on the # 1h and the # 3h wells . as of december 31 , 2012 , the company had incurred drilling costs of approximately $ 232,000 in regards to this first program . the # 1h well is still being tested , while the # 3h well will go into production after proper pump size has been determined . the company expects to be able to report production test results in the second quarter of 2013 . 17 the second program started was a small workover program covering 4 previously inactive wells in the austin chalk formation that were acquired in the purchase of the leasehold interest acquired from eagle ford oil co. inc. during 2012 the company incurred work-over costs of approximately $ 98,000. the third drilling program was the drilling of a new horizontal well nearby to the wells drilled in the 2010 drilling program noted above , the tiller # 4h well . story_separator_special_tag therefore we are providing certain additional information in our financial statements regarding the predecessor businesses for periods prior to february 14 , 2012. amounts labeled as โ predecessor business โ represent operations that were not owned by us during the time period presented in our financial statements - some of which was under a different cost basis or fair value than how we reflect them after we acquired pan american . pan american oil company , llc , is considered a predecessor . also , pan american oil company , llc purchased certain oil and gas leasehold interests from rio bravo oil , llc on february 13 , 2012 prior to being acquired by the company and therefore those leasehold interests are also considered a predecessor . collectively , pan american oil company , llc and the leasehold interests acquired from rio bravo oil , llc is referred to as the โ predecessor business โ this financial information ( for which intercompany transactions between the predecessors have been eliminated ) for the period prior to february 14 , 2012 is labeled โ predecessor business โ and the company has placed a heavy black line between it and the company 's ( also referred to as the successor ) information to differentiate it from the company 's financial information . 22 comparison of the year ended december 31 , 2012 to the year ended december 31 , 2011 our operating results are not comparable to the prior period for the following reasons : ยท we changed our fiscal year from september 30 to december 31. consequently , the financial statements for the company included in this annual report are as of and for the year ending december 31 , 2012 , as of and for the three month transition period ending december 31 , 2011 and as of and for the fiscal years ending september 30 , 2011. below we have provided a comparison of company financial information for the year ended december 31 , 2012 ( derived from our audited financial statements ) to the year ended december 31 , 2011 ( derived from unaudited financial information ) . โ predecessor business โ information is not included in this comparison . ยท in the prior period we were engaged in a different business , with a completely different ownership and management . ยท in february 2012 we consummated an acquisition of pan american where we acquired leasehold interests and are now focused on the oil and gas industry . in june 2012 , the company consummated two transactions to acquire additional leasehold rights as described elsewhere in this document . this annual report should be read in conjunction with both the financial statements and the notes thereto for pan american oil company , llc and properties acquired from rio bravo oil , llc on february 13 , 2012 , included in the company 's 2 nd amendment to form 8 k/a - event reporting that it filed with the sec on may 11 , 2012 and the amendment to form 8 k/a โ event reporting dated august 20 , 2012 which presents the financial statements of the entities acquired in the second quarter of 2012. comparison of the year ended december 31 , 2012 to december 31 , 2011 ( unaudited ) in february 2012 , we entered the oil and gas exploration and development industry upon our acquisition of pan american oil company , llc , which has leasehold interests in approximately 4500 gross acres in the edwards formation in caldwell and guadeloupe counties in texas . for the year ended december 31 , 2012 our net loss from operations increased by approximately $ 2,834,748 to $ 2,886,616 from $ 51,868 for the year ended december 31 , 2011. the increased loss can be attributed to the following : in the year ended december 31 , 2012 we had revenues of approximately $ 101,556 which are attributable to our acquisition of leasehold rights from eagle ford oil co , inc. we had no revenues prior to the acquisition of leasehold rights from eagle ford oil co , inc. in 2012. our leasehold operating costs , increased to $ 799,386 in the year ended december 31 , 2012 from nil in the year ended december 31 , 2011. the increase is attributable to the acquisitions we made in 2012. in the year ended december 31 , 2012 , our general and administrative expenses increased by approximately $ 766,149 to $ 817,872 from $ 51,723 in the year ended december 31 , 2011. the increase was due to our requirements to provide for oversight and management of the properties acquired from pan american oil company , llc , the leasehold rights from numa luling , llc and the leasehold rights from eagle ford oil co , inc. we expect to increase our general and administrative expenses in future periods as we hire additional staff and develop our business . in the year ended december 31 , 2012 , our professional fee expenses increased to $ 1,273,430 from nil in the year ended december 31 , 2011. the increase was due to our increased regulatory requirements as a public company and also for our oversight and administration of our acquired properties from pan american oil company , llc , the leasehold rights from numa luling , llc and the leasehold rights from eagle ford oil co , inc. as we have chosen to operate using consultants instead of full time employees . going forward through the fiscal year 2013 , we expect our professional fees to remain at elevated levels as we expect to acquire additional companies and will need to continue to expend resources in regards to our regulatory filing commitments as a public entity . 23 depletion , depreciation and amortization expense increased in the year ended december 31 , 2012 to $ 97,484 from nil for the year ended december 31 , 2011. the increase resulted from our acquisition
| debt : on december 22 , 2011 , the company issued an unsecured promissory note in the amount of $ 200,000 to michael j. garnick , a stockholder . the promissory note accrued interest at 10 % per annum and was due on february 15 , 2012. as a condition for issuing the promissory note , the company was obligated to issue 90,000 shares of its common stock to michael j. garnick . the note was repaid in full in march 2012. in connection with the acquisition of pan american , the company acquired certain advances payable and short term bridge notes in the principal amount of $ 1,900,000 from two unaffiliated entities . of the $ 1,900,000 borrowed , $ 600,000 was evidenced by an unsecured promissory note , had an interest rate of 10 % per annum and was repaid march 2012. the remaining $ 1,300,000 borrowed was evidenced by a series of loan agreements all with essentially the same terms ; interest at the rate of 6 % per annum , unsecured , and due on the earlier of december 31 , 2012 or upon demand . as of december 31 , 2012 , $ 350,000 was due on this loan . the company is currently in negotiations with the lender to extend the maturity date of the loan and expects to complete the extension in the second quarter of 2013. in 2011 , pan american was advanced approximately $ 90,000 by a then related party . the advance is non-interest bearing , is unsecured and due on demand and as of december 31 , 2012 the balance the company owed is $ 90,704 . 18 on february 24 , 2012 , the company received gross proceeds of $ 2.5 million from the sale of two promissory notes to two unrelated entities . the notes mature on december 31 , 2014 , bear interest at the rate of 8 % per annum , are unsecured and are convertible into up to 2.5 million shares of the company 's common stock , subject to certain adjustments , at the option of the holders .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```debt : on december 22 , 2011 , the company issued an unsecured promissory note in the amount of $ 200,000 to michael j. garnick , a stockholder . the promissory note accrued interest at 10 % per annum and was due on february 15 , 2012. as a condition for issuing the promissory note , the company was obligated to issue 90,000 shares of its common stock to michael j. garnick . the note was repaid in full in march 2012. in connection with the acquisition of pan american , the company acquired certain advances payable and short term bridge notes in the principal amount of $ 1,900,000 from two unaffiliated entities . of the $ 1,900,000 borrowed , $ 600,000 was evidenced by an unsecured promissory note , had an interest rate of 10 % per annum and was repaid march 2012. the remaining $ 1,300,000 borrowed was evidenced by a series of loan agreements all with essentially the same terms ; interest at the rate of 6 % per annum , unsecured , and due on the earlier of december 31 , 2012 or upon demand . as of december 31 , 2012 , $ 350,000 was due on this loan . the company is currently in negotiations with the lender to extend the maturity date of the loan and expects to complete the extension in the second quarter of 2013. in 2011 , pan american was advanced approximately $ 90,000 by a then related party . the advance is non-interest bearing , is unsecured and due on demand and as of december 31 , 2012 the balance the company owed is $ 90,704 . 18 on february 24 , 2012 , the company received gross proceeds of $ 2.5 million from the sale of two promissory notes to two unrelated entities . the notes mature on december 31 , 2014 , bear interest at the rate of 8 % per annum , are unsecured and are convertible into up to 2.5 million shares of the company 's common stock , subject to certain adjustments , at the option of the holders .
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Suspicious Activity Report : material events operations : in july 2011 , pan american oil company , llc ( โ pan american โ ) entered into a preliminary purchase and sale agreement with rio bravo oil , llc in which pan american agreed to purchase all of rio bravo oil llc 's right , title and interest in its approximate 27 % working interest and 23 % net revenue interest in certain leaseholds in the luling-edwards field . the purchase price was approximately $ 1.5 million in cash with a requirement to close on or before november 30 , 2011. the agreement was subsequently modified to include rio bravo 's approximate 3.345 % working interest and 12.5 % net revenue interest ( after overrides ) in certain leaseholds in the bateman field and the purchase price was increased to include approximately an additional $ 1.7 million in cash with the acquisition date extended until pan american was able to arrange funding . in february 2012 the agreement was modified again such that the assets included in the amended purchase and sale agreement included the original luling-edwards field leaseholds and an option to purchase the bateman field leaseholds . this transaction closed on february 13 , 2012. in november 2011 , pan american oil company , llc entered into two separate purchase and sale agreements with entities that were sold partial interests in the luling-edwards field by rio bravo oil , llc in march 2010. the agreements called for pan american to purchase approximately 20.75 % net revenue interest and 30 % working interest in the leaseholds in the luling-edwards field and had a combined purchase price of $ 300,000 in cash and the requirement of pan american to deliver $ 500,000 worth of the shares of preferred stock pan american receives in connection with a sale of its interests to a public company . on february 13 , 2012 , the company entered into a share exchange agreement with pan american . pursuant to the agreement , pan american exchanged its outstanding membership interests for 5,500,000 shares of rio bravo 's series a preferred stock and the assumption of approximately $ 3.3 million of liabilities . in june 2012 , the company consummated two transactions to acquire additional leasehold rights to acreage in guadeloupe and caldwell counties , texas . in the first agreement , the company entered into a purchase and sale agreement with numa luling , llc in which the company acquired all of numa luling , llc 's right , title and interest ( 25 % working interest and 25 % net revenue interest , subject to 25 % orri ) in leasehold rights to the same formation , the edwards formation , held by the company . the purchase price for the acquisition of interests held by numa luling , llc was 3,250,000 shares of series b preferred stock , which the company valued at $ 3.466 million . the second acquisition was an asset purchase agreement with eagle ford oil co , inc. in which the company acquired 80 % of the leasehold interests held by eagle ford oil co , inc .. the leaseholds acquired are for depths other than the edwards formation on the same acreage as the leaseholds owned by the company . as part of the agreement , the company agreed to carry the remaining 20 % interest for drilling and swabbing operations , but not for leasehold operating expenses . the purchase price was payment of approximately $ 2 million in cash plus a note in the amount of $ 225,000 plus the assumption of certain payment obligations to the bankruptcy estate of the previous owner of the leasehold rights . the payment of one obligation calls for the company to pay to the bankruptcy estate $ 5,000 per well drilled to a maximum of 200 wells and if that total is not met a balloon payment is due on march 16 , 2016 for the difference between $ 1 million and the per well amount funded through march 16 , 2016. in 2012 , the third party operator for the company 's leasehold interests commenced several drilling and work-over programs targeting three different depths within the buda and edwards formations . the first program started by the third party operator was an attempt to test for recompleting the wells drilled in the 2010 drilling program that were all dry holes that were acquired by the company with their purchase of pan american oil co , llc and numa luling , llc . during 2012 the company began recomplete work on the # 1h and the # 3h wells . as of december 31 , 2012 , the company had incurred drilling costs of approximately $ 232,000 in regards to this first program . the # 1h well is still being tested , while the # 3h well will go into production after proper pump size has been determined . the company expects to be able to report production test results in the second quarter of 2013 . 17 the second program started was a small workover program covering 4 previously inactive wells in the austin chalk formation that were acquired in the purchase of the leasehold interest acquired from eagle ford oil co. inc. during 2012 the company incurred work-over costs of approximately $ 98,000. the third drilling program was the drilling of a new horizontal well nearby to the wells drilled in the 2010 drilling program noted above , the tiller # 4h well . story_separator_special_tag therefore we are providing certain additional information in our financial statements regarding the predecessor businesses for periods prior to february 14 , 2012. amounts labeled as โ predecessor business โ represent operations that were not owned by us during the time period presented in our financial statements - some of which was under a different cost basis or fair value than how we reflect them after we acquired pan american . pan american oil company , llc , is considered a predecessor . also , pan american oil company , llc purchased certain oil and gas leasehold interests from rio bravo oil , llc on february 13 , 2012 prior to being acquired by the company and therefore those leasehold interests are also considered a predecessor . collectively , pan american oil company , llc and the leasehold interests acquired from rio bravo oil , llc is referred to as the โ predecessor business โ this financial information ( for which intercompany transactions between the predecessors have been eliminated ) for the period prior to february 14 , 2012 is labeled โ predecessor business โ and the company has placed a heavy black line between it and the company 's ( also referred to as the successor ) information to differentiate it from the company 's financial information . 22 comparison of the year ended december 31 , 2012 to the year ended december 31 , 2011 our operating results are not comparable to the prior period for the following reasons : ยท we changed our fiscal year from september 30 to december 31. consequently , the financial statements for the company included in this annual report are as of and for the year ending december 31 , 2012 , as of and for the three month transition period ending december 31 , 2011 and as of and for the fiscal years ending september 30 , 2011. below we have provided a comparison of company financial information for the year ended december 31 , 2012 ( derived from our audited financial statements ) to the year ended december 31 , 2011 ( derived from unaudited financial information ) . โ predecessor business โ information is not included in this comparison . ยท in the prior period we were engaged in a different business , with a completely different ownership and management . ยท in february 2012 we consummated an acquisition of pan american where we acquired leasehold interests and are now focused on the oil and gas industry . in june 2012 , the company consummated two transactions to acquire additional leasehold rights as described elsewhere in this document . this annual report should be read in conjunction with both the financial statements and the notes thereto for pan american oil company , llc and properties acquired from rio bravo oil , llc on february 13 , 2012 , included in the company 's 2 nd amendment to form 8 k/a - event reporting that it filed with the sec on may 11 , 2012 and the amendment to form 8 k/a โ event reporting dated august 20 , 2012 which presents the financial statements of the entities acquired in the second quarter of 2012. comparison of the year ended december 31 , 2012 to december 31 , 2011 ( unaudited ) in february 2012 , we entered the oil and gas exploration and development industry upon our acquisition of pan american oil company , llc , which has leasehold interests in approximately 4500 gross acres in the edwards formation in caldwell and guadeloupe counties in texas . for the year ended december 31 , 2012 our net loss from operations increased by approximately $ 2,834,748 to $ 2,886,616 from $ 51,868 for the year ended december 31 , 2011. the increased loss can be attributed to the following : in the year ended december 31 , 2012 we had revenues of approximately $ 101,556 which are attributable to our acquisition of leasehold rights from eagle ford oil co , inc. we had no revenues prior to the acquisition of leasehold rights from eagle ford oil co , inc. in 2012. our leasehold operating costs , increased to $ 799,386 in the year ended december 31 , 2012 from nil in the year ended december 31 , 2011. the increase is attributable to the acquisitions we made in 2012. in the year ended december 31 , 2012 , our general and administrative expenses increased by approximately $ 766,149 to $ 817,872 from $ 51,723 in the year ended december 31 , 2011. the increase was due to our requirements to provide for oversight and management of the properties acquired from pan american oil company , llc , the leasehold rights from numa luling , llc and the leasehold rights from eagle ford oil co , inc. we expect to increase our general and administrative expenses in future periods as we hire additional staff and develop our business . in the year ended december 31 , 2012 , our professional fee expenses increased to $ 1,273,430 from nil in the year ended december 31 , 2011. the increase was due to our increased regulatory requirements as a public company and also for our oversight and administration of our acquired properties from pan american oil company , llc , the leasehold rights from numa luling , llc and the leasehold rights from eagle ford oil co , inc. as we have chosen to operate using consultants instead of full time employees . going forward through the fiscal year 2013 , we expect our professional fees to remain at elevated levels as we expect to acquire additional companies and will need to continue to expend resources in regards to our regulatory filing commitments as a public entity . 23 depletion , depreciation and amortization expense increased in the year ended december 31 , 2012 to $ 97,484 from nil for the year ended december 31 , 2011. the increase resulted from our acquisition
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2,539 | in addition , because fuel costs represent a significant part of our customers ' operating expenses , volatile and or high fuel prices can adversely affect our customers ' businesses , and consequently the demand for our services and our results of operations . our hedging activities may not be effective to mitigate volatile fuel prices and may expose us to counterparty risk . see ยitem 1a ย risk factorsย of this form 10-k. reportable segments we have three reportable operating segments : aviation , marine and land . corporate expenses are allocated to the segment based on usage , where possible , or on other factors according to the nature of the activity . we evaluate and manage our business segments using the performance measurement of income from operations . financial information with respect to our business segments is provided in note 12 to the accompanying consolidated financial statements included in this form 10-k. critical accounting policies and estimates the discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements included elsewhere in this form 10-k , which have been prepared in accordance with accounting principles generally accepted in the united states . the preparation of these financial statements requires management to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses and related disclosure of contingent assets and liabilities . on an ongoing basis , we evaluate our estimates , including those related to unbilled revenue and related costs of sales , bad debt , share-based payment awards , derivatives , goodwill and identifiable intangible assets and certain accrued liabilities . we base our estimates on historical experience and on other assumptions that are believed to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . we have identified the policies below as critical to our business operations and the understanding of our results of operations . for a detailed discussion on the application of these and other significant accounting policies , see note 1 to the accompanying consolidated financial statements included in this form 10-k. revenue recognition revenue from the sale of fuel is recognized when the sales price is fixed or determinable , collectability is reasonably assured and title passes to the customer , which is when the delivery of fuel is made to our customer directly from us , the supplier or a third-party subcontractor . our fuel sales are generated as a fuel reseller as well as from on-hand inventory supply . when acting as a fuel reseller , we generally purchase fuel from the supplier , mark it up and contemporaneously resell the fuel to the customer , normally taking delivery for purchased fuel at the same 24 place and time as the delivery is made to the customer . we record the gross sale of the fuel as we generally take inventory risk , have latitude in establishing the sales price , have discretion in the supplier selection , maintain credit risk and are the primary obligor in the sales arrangement . revenue from fuel-related services is recognized when services are performed , the sales price is fixed or determinable and collectability is reasonably assured . we record the sale of fuel-related services on a gross basis as we generally have latitude in establishing the sales price , have discretion in supplier selection , maintain credit risk and are the primary obligor in the sales arrangement . commission from fuel broker services is recognized when services are performed and collectability is reasonably assured . when acting as a fuel broker , we are paid a commission by the supplier . revenue from charge card transactions is recognized at the time the purchase is made by the customer using the charge card . revenue from charge card transactions is generated from processing fees . share-based payment awards we account for share-based payment awards on a fair value basis . under fair value accounting , the grant-date fair value of the share-based payment award is amortized as compensation expense , on a straight-line basis , over the vesting period for both graded and cliff vesting awards . annual compensation expense for share-based payment awards is reduced by an expected forfeiture amount on the outstanding share-based payment awards . we use the black-scholes option pricing model to estimate the fair value of option awards . the estimation of the fair value of option awards on the date of grant using an option-pricing model is affected by our stock price as well as assumptions regarding a number of complex and subjective variables . these variables include our expected stock price volatility over the term of the awards , actual and projected employee stock option exercise behaviors , risk-free interest rates and expected dividends . the expected term of option awards represents the estimated period of time from grant until exercise or conversion and is based on vesting schedules and expected post-vesting , exercise and employment termination behavior . expected volatility is based on the historical volatility of our common stock over the period that is equivalent to the award 's expected life . any adjustment to the historical volatility as an indicator of future volatility would be based on the impact to historical volatility of significant non-recurring events that would not be expected in the future . risk-free interest rates are based on the u.s. treasury yield curve at the time of grant for the period that is equivalent to the award 's expected life . dividend yields are based on the historical dividends of world fuel over the period that is equivalent to the award 's expected life , as adjusted for stock splits . story_separator_special_tag for 2010 , our effective tax rate was 17.5 % and our income tax provision was $ 31.0 million , as compared to an effective tax rate of 21.6 % and an income tax provision of $ 32.3 million for 2009. the lower effective tax rate for 2010 resulted primarily from differences in the actual results of our subsidiaries in tax jurisdictions with different tax rates as compared to 2009. net income and diluted earnings per share . our net income for 2010 was $ 146.9 million , an increase of $ 29.8 million , or 25.4 % , as compared to 2009. diluted earnings per share for 2010 was $ 2.31 per share , an increase of $ 0.35 per share , or 17.9 % , as compared to 2009. non-gaap net income and non-gaap diluted earnings per share . the following table sets forth the reconciliation between our net income and our non-gaap net income for 2010 and 2009 ( in thousands ) : replace_table_token_10_th the following table sets forth the reconciliation between our diluted earnings per share and our non-gaap diluted earnings per share for 2010 and 2009 : replace_table_token_11_th the non-gaap financial measures exclude costs associated with share-based compensation and amortization of acquired intangible assets , primarily because we do not believe they are reflective of the company 's core operating results . we believe the exclusion of share-based compensation from operating expenses is useful given the variation in expense that can result from changes in the fair value of our common stock , the effect of which is unrelated to the operational conditions that give rise to variations in the components of our operating costs . also , we believe the exclusion of the amortization of acquired intangible assets is useful for purposes of evaluating operating performance of our core operating results and comparing them period-over-period . we believe that these non-gaap financial measures , when considered in conjunction with our financial information prepared in accordance with gaap , are useful to investors to further aid in evaluating the ongoing financial performance of the company and to provide greater transparency as supplemental information to our gaap results . non-gaap financial measures should not be considered in isolation from , or as a substitute for , financial information prepared in accordance with gaap . in addition , our presentation of non-gaap net income and non-gaap earnings per share may not be comparable to the presentation of such metrics by other companies . investors are encouraged to review the reconciliation of these non-gaap measures to their most directly comparable gaap financial measure . 30 2009 compared to 2008 revenue . our revenue for 2009 was $ 11.3 billion , a decrease of $ 7.2 billion , or 39.0 % , as compared to 2008. our revenue during these periods was attributable to the following segments ( in thousands ) : replace_table_token_12_th our aviation segment contributed $ 4.0 billion in revenue for 2009 , a decrease of $ 3.2 billion , or 44.5 % , as compared to 2008. of the total decrease in aviation segment revenue , $ 2.7 billion was due to a decrease in the average price per gallon sold as a result of lower world oil prices in 2009 compared to record prices in 2008. the remaining decrease of $ 501.1 million was due to decreased sales volume , reflecting the result of our efforts to change the business mix to yield higher margins and our continued efforts to achieve risk adjusted returns on invested capital , primarily in the first half of 2009. our marine segment contributed $ 6.0 billion in revenue for 2009 , a decrease of $ 3.9 billion , or 39.1 % , as compared to 2008. of the total decrease in marine segment revenue , $ 2.4 billion was due to decreased sales volume primarily attributable to the deterioration in the overall volumes in the shipping industry compared to last year and our conscious effort to shed risk . the remaining decrease of $ 1.5 billion was due to a decrease in the average price per metric ton sold as a result of lower world oil prices in 2009. our land segment contributed $ 1.2 billion in revenue for 2009 , a decrease of $ 94.7 million , or 7.3 % , as compared to 2008. of the total decrease in land segment revenue , $ 349.5 million was due to a decrease in the average price per gallon sold as a result of lower world oil prices in 2009. offsetting this decrease was $ 254.8 million primarily due to increased sales volume attributable to incremental sales due to the inclusion of the results of the texor business for all of 2009 and henty and the tgs business since april 2009. gross profit . our gross profit for 2009 was $ 375.6 million , a decrease of $ 19.8 million , or 5.0 % , as compared to 2008. our gross profit during these periods was attributable to the following segments ( in thousands ) : replace_table_token_13_th our aviation segment gross profit for 2009 was $ 163.7 million , a decrease of $ 2.1 million , or 1.3 % , as compared to 2008. of the decrease in aviation segment gross profit , $ 3.6 million was due to decreased sales volume which was partially offset by $ 1.5 million in higher gross profit per gallon sold , reflecting the result of our efforts to change the business mix to yield higher margins and our continued efforts to achieve risk adjusted returns on invested capital . our marine segment gross profit for 2009 was $ 168.9 million , a decrease of $ 34.5 million , or 16.9 % , as compared to 2008. in 2008 , we were presented with extraordinary market opportunities , primarily in the second and third quarters , due to near record fuel prices , volatility and general financing constraints in the global credit market
| liquidity and capital resources the following table reflects the major categories of cash flows for 2010 , 2009 and 2008. for additional details , please see the consolidated statements of cash flows in the consolidated financial statements . replace_table_token_18_th 2010 compared to 2009 operating activities . for 2010 , net cash used in operating activities totaled $ 35.7 million as compared to net cash provided by operating activities of $ 77.9 million in 2009. the $ 113.6 million change in operating cash flows was primarily due to changes in net operating assets and liabilities , primarily accounts receivable , net , inventories and prepaid expenses , driven by increased sales volume and world oil prices as compared to 2009 , which were partially offset by increased net income . investing activities . for 2010 , net cash used in investing activities was $ 180.3 million as compared to $ 61.8 million in 2009. the $ 118.5 million increase in cash used in investing activities in 2010 was primarily due to increased cash used in the acquisition of businesses and increased capital expenditures related to systems development in 2010 as compared to 2009 , which was partially offset by the sale of short-term investments . financing activities . for 2010 , net cash provided by financing activities was $ 190.0 million as compared to net cash used in financing activities of $ 34.4 million in 2009. the $ 224.4 million change in cash flows from financing activities was primarily due to proceeds from our public offering of common stock . in september 2010 , we completed a public offering of 9.2 million shares of our common stock at a price of $ 25.00 per share . we received net proceeds of $ 218.8 million from the offering , after deducting $ 10.4 million in commissions paid to the underwriters and an estimated $ 0.8 million in other expenses incurred in connection with the offering . 2009 compared to 2008 operating activities .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources the following table reflects the major categories of cash flows for 2010 , 2009 and 2008. for additional details , please see the consolidated statements of cash flows in the consolidated financial statements . replace_table_token_18_th 2010 compared to 2009 operating activities . for 2010 , net cash used in operating activities totaled $ 35.7 million as compared to net cash provided by operating activities of $ 77.9 million in 2009. the $ 113.6 million change in operating cash flows was primarily due to changes in net operating assets and liabilities , primarily accounts receivable , net , inventories and prepaid expenses , driven by increased sales volume and world oil prices as compared to 2009 , which were partially offset by increased net income . investing activities . for 2010 , net cash used in investing activities was $ 180.3 million as compared to $ 61.8 million in 2009. the $ 118.5 million increase in cash used in investing activities in 2010 was primarily due to increased cash used in the acquisition of businesses and increased capital expenditures related to systems development in 2010 as compared to 2009 , which was partially offset by the sale of short-term investments . financing activities . for 2010 , net cash provided by financing activities was $ 190.0 million as compared to net cash used in financing activities of $ 34.4 million in 2009. the $ 224.4 million change in cash flows from financing activities was primarily due to proceeds from our public offering of common stock . in september 2010 , we completed a public offering of 9.2 million shares of our common stock at a price of $ 25.00 per share . we received net proceeds of $ 218.8 million from the offering , after deducting $ 10.4 million in commissions paid to the underwriters and an estimated $ 0.8 million in other expenses incurred in connection with the offering . 2009 compared to 2008 operating activities .
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Suspicious Activity Report : in addition , because fuel costs represent a significant part of our customers ' operating expenses , volatile and or high fuel prices can adversely affect our customers ' businesses , and consequently the demand for our services and our results of operations . our hedging activities may not be effective to mitigate volatile fuel prices and may expose us to counterparty risk . see ยitem 1a ย risk factorsย of this form 10-k. reportable segments we have three reportable operating segments : aviation , marine and land . corporate expenses are allocated to the segment based on usage , where possible , or on other factors according to the nature of the activity . we evaluate and manage our business segments using the performance measurement of income from operations . financial information with respect to our business segments is provided in note 12 to the accompanying consolidated financial statements included in this form 10-k. critical accounting policies and estimates the discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements included elsewhere in this form 10-k , which have been prepared in accordance with accounting principles generally accepted in the united states . the preparation of these financial statements requires management to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses and related disclosure of contingent assets and liabilities . on an ongoing basis , we evaluate our estimates , including those related to unbilled revenue and related costs of sales , bad debt , share-based payment awards , derivatives , goodwill and identifiable intangible assets and certain accrued liabilities . we base our estimates on historical experience and on other assumptions that are believed to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . we have identified the policies below as critical to our business operations and the understanding of our results of operations . for a detailed discussion on the application of these and other significant accounting policies , see note 1 to the accompanying consolidated financial statements included in this form 10-k. revenue recognition revenue from the sale of fuel is recognized when the sales price is fixed or determinable , collectability is reasonably assured and title passes to the customer , which is when the delivery of fuel is made to our customer directly from us , the supplier or a third-party subcontractor . our fuel sales are generated as a fuel reseller as well as from on-hand inventory supply . when acting as a fuel reseller , we generally purchase fuel from the supplier , mark it up and contemporaneously resell the fuel to the customer , normally taking delivery for purchased fuel at the same 24 place and time as the delivery is made to the customer . we record the gross sale of the fuel as we generally take inventory risk , have latitude in establishing the sales price , have discretion in the supplier selection , maintain credit risk and are the primary obligor in the sales arrangement . revenue from fuel-related services is recognized when services are performed , the sales price is fixed or determinable and collectability is reasonably assured . we record the sale of fuel-related services on a gross basis as we generally have latitude in establishing the sales price , have discretion in supplier selection , maintain credit risk and are the primary obligor in the sales arrangement . commission from fuel broker services is recognized when services are performed and collectability is reasonably assured . when acting as a fuel broker , we are paid a commission by the supplier . revenue from charge card transactions is recognized at the time the purchase is made by the customer using the charge card . revenue from charge card transactions is generated from processing fees . share-based payment awards we account for share-based payment awards on a fair value basis . under fair value accounting , the grant-date fair value of the share-based payment award is amortized as compensation expense , on a straight-line basis , over the vesting period for both graded and cliff vesting awards . annual compensation expense for share-based payment awards is reduced by an expected forfeiture amount on the outstanding share-based payment awards . we use the black-scholes option pricing model to estimate the fair value of option awards . the estimation of the fair value of option awards on the date of grant using an option-pricing model is affected by our stock price as well as assumptions regarding a number of complex and subjective variables . these variables include our expected stock price volatility over the term of the awards , actual and projected employee stock option exercise behaviors , risk-free interest rates and expected dividends . the expected term of option awards represents the estimated period of time from grant until exercise or conversion and is based on vesting schedules and expected post-vesting , exercise and employment termination behavior . expected volatility is based on the historical volatility of our common stock over the period that is equivalent to the award 's expected life . any adjustment to the historical volatility as an indicator of future volatility would be based on the impact to historical volatility of significant non-recurring events that would not be expected in the future . risk-free interest rates are based on the u.s. treasury yield curve at the time of grant for the period that is equivalent to the award 's expected life . dividend yields are based on the historical dividends of world fuel over the period that is equivalent to the award 's expected life , as adjusted for stock splits . story_separator_special_tag for 2010 , our effective tax rate was 17.5 % and our income tax provision was $ 31.0 million , as compared to an effective tax rate of 21.6 % and an income tax provision of $ 32.3 million for 2009. the lower effective tax rate for 2010 resulted primarily from differences in the actual results of our subsidiaries in tax jurisdictions with different tax rates as compared to 2009. net income and diluted earnings per share . our net income for 2010 was $ 146.9 million , an increase of $ 29.8 million , or 25.4 % , as compared to 2009. diluted earnings per share for 2010 was $ 2.31 per share , an increase of $ 0.35 per share , or 17.9 % , as compared to 2009. non-gaap net income and non-gaap diluted earnings per share . the following table sets forth the reconciliation between our net income and our non-gaap net income for 2010 and 2009 ( in thousands ) : replace_table_token_10_th the following table sets forth the reconciliation between our diluted earnings per share and our non-gaap diluted earnings per share for 2010 and 2009 : replace_table_token_11_th the non-gaap financial measures exclude costs associated with share-based compensation and amortization of acquired intangible assets , primarily because we do not believe they are reflective of the company 's core operating results . we believe the exclusion of share-based compensation from operating expenses is useful given the variation in expense that can result from changes in the fair value of our common stock , the effect of which is unrelated to the operational conditions that give rise to variations in the components of our operating costs . also , we believe the exclusion of the amortization of acquired intangible assets is useful for purposes of evaluating operating performance of our core operating results and comparing them period-over-period . we believe that these non-gaap financial measures , when considered in conjunction with our financial information prepared in accordance with gaap , are useful to investors to further aid in evaluating the ongoing financial performance of the company and to provide greater transparency as supplemental information to our gaap results . non-gaap financial measures should not be considered in isolation from , or as a substitute for , financial information prepared in accordance with gaap . in addition , our presentation of non-gaap net income and non-gaap earnings per share may not be comparable to the presentation of such metrics by other companies . investors are encouraged to review the reconciliation of these non-gaap measures to their most directly comparable gaap financial measure . 30 2009 compared to 2008 revenue . our revenue for 2009 was $ 11.3 billion , a decrease of $ 7.2 billion , or 39.0 % , as compared to 2008. our revenue during these periods was attributable to the following segments ( in thousands ) : replace_table_token_12_th our aviation segment contributed $ 4.0 billion in revenue for 2009 , a decrease of $ 3.2 billion , or 44.5 % , as compared to 2008. of the total decrease in aviation segment revenue , $ 2.7 billion was due to a decrease in the average price per gallon sold as a result of lower world oil prices in 2009 compared to record prices in 2008. the remaining decrease of $ 501.1 million was due to decreased sales volume , reflecting the result of our efforts to change the business mix to yield higher margins and our continued efforts to achieve risk adjusted returns on invested capital , primarily in the first half of 2009. our marine segment contributed $ 6.0 billion in revenue for 2009 , a decrease of $ 3.9 billion , or 39.1 % , as compared to 2008. of the total decrease in marine segment revenue , $ 2.4 billion was due to decreased sales volume primarily attributable to the deterioration in the overall volumes in the shipping industry compared to last year and our conscious effort to shed risk . the remaining decrease of $ 1.5 billion was due to a decrease in the average price per metric ton sold as a result of lower world oil prices in 2009. our land segment contributed $ 1.2 billion in revenue for 2009 , a decrease of $ 94.7 million , or 7.3 % , as compared to 2008. of the total decrease in land segment revenue , $ 349.5 million was due to a decrease in the average price per gallon sold as a result of lower world oil prices in 2009. offsetting this decrease was $ 254.8 million primarily due to increased sales volume attributable to incremental sales due to the inclusion of the results of the texor business for all of 2009 and henty and the tgs business since april 2009. gross profit . our gross profit for 2009 was $ 375.6 million , a decrease of $ 19.8 million , or 5.0 % , as compared to 2008. our gross profit during these periods was attributable to the following segments ( in thousands ) : replace_table_token_13_th our aviation segment gross profit for 2009 was $ 163.7 million , a decrease of $ 2.1 million , or 1.3 % , as compared to 2008. of the decrease in aviation segment gross profit , $ 3.6 million was due to decreased sales volume which was partially offset by $ 1.5 million in higher gross profit per gallon sold , reflecting the result of our efforts to change the business mix to yield higher margins and our continued efforts to achieve risk adjusted returns on invested capital . our marine segment gross profit for 2009 was $ 168.9 million , a decrease of $ 34.5 million , or 16.9 % , as compared to 2008. in 2008 , we were presented with extraordinary market opportunities , primarily in the second and third quarters , due to near record fuel prices , volatility and general financing constraints in the global credit market
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2,540 | 35 table of contents as a result of the structure of our revenue arrangements and our customer-types , our revenues during the three months ended march 31 , 2020 were not materially impacted by covid-19 . while we experienced a decrease to our asset-based revenues in the second quarter of 2020 compared to the first quarter of 2020 as a result of the decline in the equity markets as of march 31 , 2020 , our asset-based revenues were minimally impacted in the third quarter of 2020 as the equity markets have generally recovered to pre-pandemic levels . we have experienced no business interruptions , nor did we lose any significant customers as a result of the covid-19 pandemic . for the twelve months ended december 31 , 2020 , approximately 43 % of revenues were subscription-based . these revenues primarily consisted of fees for providing customers continuous access to our platforms . these subscription-based fees generally include fixed fees or usage-based fees . these fees vary based on the services being offered . our subscription-based fee arrangements are typically established through multi-year contracts . in the event that the equity markets fall again as a result of covid-19 or for any other reason , our revenues will be negatively impacted . based on our most recent internal forecasts and other qualitative factors , we have determined that we currently have no impairments to our assets as of december 31 , 2020. we have not modified our revolving credit agreement in connection with the covid-19 pandemic . additionally , in august 2020 , we successfully acquired additional financing in the form of convertible notes on terms favorable to the company . on march 27 , 2020 , the coronavirus aid , relief , and economic security act ( โ cares act โ ) was signed into law . one provision of the cares act provides a five-year carryback of net operating losses ( โ nols โ ) generated in tax years beginning after december 31 , 2017 and before january 1 , 2021. we estimate a refund of approximately $ 1,200 from the carryback of nols . investment in private services company on january 8 , 2020 , we acquired a 4.25 % membership interest in a private services company for cash consideration of $ 11,000. the private services company partners with independent network advisory firms to help them grow , become more profitable and run more efficiently . we account for this investment under the equity method basis of accounting . acquisition of private technology company on february 18 , 2020 , through our wholly owned subsidiary yodlee , inc. ( โ yodlee โ ) , we acquired a private technology company ( the โ private technology company acquisition โ ) . the private technology company enables the consent generation and data flow between financial information providers , such as banks and financial institutions , and financial information users , such as financial technology lenders and other financial services agencies , through a network of cloud-based interoperable interfaces or application programming interfaces . the technology and operations of the private technology company have been integrated into our envestnet data & analytics segment . in connection with the private technology company acquisition , we acquired all of the outstanding shares and paid cash consideration of $ 2,343 , net of cash acquired , subject to certain closing and post-closing adjustments , plus up to an additional $ 6,750 in contingent consideration , based upon the achievement of certain performance targets . on the date of acquisition , we recorded a liability of approximately $ 5,239 , which represented the estimated fair value of contingent consideration as of that date . in 2020 , we determined that certain performance targets for this acquisition would not be met . as a result , we reduced the contingent consideration liability plus accrued interest associated with this acquisition by $ 3,105 and recorded this as a reduction to general and administration expenses . future changes to the estimated fair value of the contingent consideration , if any , will be recognized in our earnings . we recorded estimated goodwill of $ 7,019 , which is not deductible for income tax purposes , and estimated identifiable intangible assets for proprietary technologies of $ 1,000. the tangible assets acquired and liabilities assumed were not material . acquisition of private cloud technology company on march 2 , 2020 , we acquired certain assets of a private cloud technology company ( the โ private cloud technology company acquisition โ ) . the private cloud technology company enables enterprises to design and implement the digital 36 table of contents transition from legacy systems and applications to a modern cloud computing platform . the technology and operations of the private cloud technology company have been integrated into our envestnet wealth solutions segment . in connection with the private cloud technology company acquisition , we paid estimated consideration of $ 11,968 , net of cash acquired . in connection with the acquisition , we recorded estimated goodwill of $ 10,932 , which is deductible for income tax purposes . the tangible assets acquired and liabilities assumed were not material . acquisition of private financial technology design company on march 3 , 2020 , we acquired the outstanding units of a private financial technology design company that were not owned by the company and merged the acquired company into a wholly owned subsidiary of ours ( the โ private financial technology design company acquisition โ ) . the private financial technology design company designs integrated , intuitive digital technology applications for institutional financial services firms , bank wealth management organizations , independent advisor networks , and broker-dealers . the technology and operations of the private financial technology design company have been integrated into our envestnet wealth solutions segment . story_separator_special_tag professional services and other revenues professional services and other revenues decreased 17 % from $ 37,002 in 2019 to $ 30,776 in 2020. the decrease was due to timing of the completion of customer projects and deployments , as well as a decrease in revenues resulting from the cancellation of our 2020 advisor summit . cost of revenues cost of revenues increased 10 % from $ 278,811 in 2019 to $ 305,929 in 2020 , primarily due to an increase in asset-based cost of revenues of $ 34,656 , partially offset by decreases in professional services and other revenues of $ 5,568 and subscription-based cost of revenues of $ 1,970. as a percentage of total revenues , cost of revenues remained consistent at 31 % for the years ended december 31 , 2019 and 2020. compensation and benefits compensation and benefits increased 4 % from $ 383,554 in 2019 to $ 398,970 in 2020 , primarily due to increases in severance expense of $ 9,742 and incentive compensation of $ 6,925 , partially offset by salary , benefits and related payroll taxes of $ 1,922. the increase in severance expense is primarily related to charges connected with the early retirement program that was offered to eligible employees through january 31 , 2020. the 2019 acquisitions contributed compensation and benefits expenses of $ 22,891 and $ 28,601 , to total compensation and benefits expense in 2019 and 2020 , respectively . as a percentage of total revenues , compensation and benefits decreased from 43 % in 2019 to 40 % in 2020 , primarily due to revenue growth of our 2019 acquisitions outpacing compensation and benefit growth for these same acquisitions . general and administration general and administration expenses increased 5 % from $ 152,564 in 2019 to $ 160,229 in 2020 , primarily due to increases in non-recurring restructuring charges and transaction costs of $ 11,202 , systems development expense of $ 4,772 , trade errors of $ 3,045 , permits , licenses and fees of $ 1,425 , professional and legal expenses of $ 1,363 and other miscellaneous general and administrative expenses of $ 1,278. these increases were partially offset by decreases in travel and entertainment expense of $ 12,335 , occupancy costs of $ 3,296 and marketing expense of $ 3,159. the 2019 acquisitions contributed general and administration expenses of $ 8,701 and $ 6,593 , to total general and administration expenses in 2019 and 2020 respectively . as a percentage of total revenues , general and administration expenses decreased from 17 % in 2019 to 16 % and 2020. depreciation and amortization depreciation and amortization expense increased 12 % from $ 101,271 in 2019 to $ 113,661 in 2020 , primarily due to increases in internally developed software amortization expense of $ 6,628 and intangible asset amortization expense of $ 5,107. as a percentage of total revenues , depreciation and amortization expense remained consistent at 11 % in 2019 and 2020. interest income interest income decreased from $ 3,347 in 2019 to $ 1,112 in 2020 , primarily due to less interest earned on our bank accounts and money market funds . while our cash and cash equivalent balance increased significantly in 2020 as a result of the proceeds we received from our convertible debt offering in august 2020 , interest earned on this cash continued to be low . interest expense interest expense decreased 3 % from $ 32,520 in 2019 to $ 31,504 in 2020 , primarily due to the payment of $ 345,000 of convertible notes in december 2019 and the paydown of our revolving credit facility in 2020 , partially offset by additional interest incurred on the issuance of convertible notes due 2025 in august 2020. as a percentage of total revenues , interest expense decreased from 4 % in 2019 to 3 % in 2020 . 43 table of contents other income ( expense ) , net other income ( expense ) , net increased from other expense of $ 2,849 in 2019 to other income of $ 2,906 in 2020 , primarily due to a gain of $ 4,230 recognized in 2020 on the remeasurement of our previously held interest in the private financial technology design company , a gain of $ 2,524 as a result of a fair value adjustment upon settlement of our former chief executive officer 's stock options and a gain on the sale of our interest held in a private company of $ 1,647. this increase was partially offset by additional equity method losses of $ 3,038 recorded in 2020 as compared to 2019. income tax provision replace_table_token_5_th our 2020 effective tax rate differs from the statutory rate primarily due to state taxes , the excess tax benefit related to stock-based compensation , the executive compensation deduction limitation , the generation of research and development ( โ r & d โ ) tax credits , income related to the indian partnerships , the impact of the cares act related to nol carryback , the change in the valuation allowance the company has placed on a portion of its us deferred tax assets and the settlement of asc 740-10 amounts due to the settlement of the bilateral advance pricing agreement with india and the filing of voluntary disclosure agreement returns . our 2019 effective tax rate differs from the statutory rate primarily due to state taxes , excess tax benefit related to stock-based compensation , the generation of r & d tax credits , unrecognized tax benefits , prior period true-ups and changes in valuation allowances . year ended december 31 , 2019 compared to year ended december 31 , 2018 for a discussion of the 2019 results of operations compared to 2018 , see part ii , item 7 , โ management 's discussion and analysis of financial condition and results of operations โ of our form 10-k filed with the sec on february 28 , 2020. business segments business segments are generally organized around our
| liquidity and capital resources as of december 31 , 2020 , we had total cash and cash equivalents of $ 384,565 , compared to $ 82,505 as of december 31 , 2019. in august 2020 , we issued $ 517,500 of convertible notes that mature on august 15 , 2025. see part ii , item 8 , โ note 10โdebt , convertible notes due 2025 โ for more details regarding the issuance of these convertible notes . with the proceeds from this convertible note issuance , we repaid the outstanding balance on our revolving credit facility of $ 150,000. we plan to use existing cash as of december 31 , 2020 , cash generated in the ongoing operations of our business and amounts under our revolving credit facility to fund our current operations , capital expenditures and possible acquisitions or other strategic activity , and to meet our debt service obligations . if the cash generated in the ongoing operations of our business is insufficient to fund these requirements we may be required to borrow under our revolving credit facility or incur additional debt to fund our ongoing operations or to fund potential acquisitions or other strategic activities . amended credit agreement in 2014 , we and certain of our subsidiaries entered into a credit agreement with a group of banks ( the โ banks โ ) , for which bank of montreal acted as administrative agent .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources as of december 31 , 2020 , we had total cash and cash equivalents of $ 384,565 , compared to $ 82,505 as of december 31 , 2019. in august 2020 , we issued $ 517,500 of convertible notes that mature on august 15 , 2025. see part ii , item 8 , โ note 10โdebt , convertible notes due 2025 โ for more details regarding the issuance of these convertible notes . with the proceeds from this convertible note issuance , we repaid the outstanding balance on our revolving credit facility of $ 150,000. we plan to use existing cash as of december 31 , 2020 , cash generated in the ongoing operations of our business and amounts under our revolving credit facility to fund our current operations , capital expenditures and possible acquisitions or other strategic activity , and to meet our debt service obligations . if the cash generated in the ongoing operations of our business is insufficient to fund these requirements we may be required to borrow under our revolving credit facility or incur additional debt to fund our ongoing operations or to fund potential acquisitions or other strategic activities . amended credit agreement in 2014 , we and certain of our subsidiaries entered into a credit agreement with a group of banks ( the โ banks โ ) , for which bank of montreal acted as administrative agent .
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Suspicious Activity Report : 35 table of contents as a result of the structure of our revenue arrangements and our customer-types , our revenues during the three months ended march 31 , 2020 were not materially impacted by covid-19 . while we experienced a decrease to our asset-based revenues in the second quarter of 2020 compared to the first quarter of 2020 as a result of the decline in the equity markets as of march 31 , 2020 , our asset-based revenues were minimally impacted in the third quarter of 2020 as the equity markets have generally recovered to pre-pandemic levels . we have experienced no business interruptions , nor did we lose any significant customers as a result of the covid-19 pandemic . for the twelve months ended december 31 , 2020 , approximately 43 % of revenues were subscription-based . these revenues primarily consisted of fees for providing customers continuous access to our platforms . these subscription-based fees generally include fixed fees or usage-based fees . these fees vary based on the services being offered . our subscription-based fee arrangements are typically established through multi-year contracts . in the event that the equity markets fall again as a result of covid-19 or for any other reason , our revenues will be negatively impacted . based on our most recent internal forecasts and other qualitative factors , we have determined that we currently have no impairments to our assets as of december 31 , 2020. we have not modified our revolving credit agreement in connection with the covid-19 pandemic . additionally , in august 2020 , we successfully acquired additional financing in the form of convertible notes on terms favorable to the company . on march 27 , 2020 , the coronavirus aid , relief , and economic security act ( โ cares act โ ) was signed into law . one provision of the cares act provides a five-year carryback of net operating losses ( โ nols โ ) generated in tax years beginning after december 31 , 2017 and before january 1 , 2021. we estimate a refund of approximately $ 1,200 from the carryback of nols . investment in private services company on january 8 , 2020 , we acquired a 4.25 % membership interest in a private services company for cash consideration of $ 11,000. the private services company partners with independent network advisory firms to help them grow , become more profitable and run more efficiently . we account for this investment under the equity method basis of accounting . acquisition of private technology company on february 18 , 2020 , through our wholly owned subsidiary yodlee , inc. ( โ yodlee โ ) , we acquired a private technology company ( the โ private technology company acquisition โ ) . the private technology company enables the consent generation and data flow between financial information providers , such as banks and financial institutions , and financial information users , such as financial technology lenders and other financial services agencies , through a network of cloud-based interoperable interfaces or application programming interfaces . the technology and operations of the private technology company have been integrated into our envestnet data & analytics segment . in connection with the private technology company acquisition , we acquired all of the outstanding shares and paid cash consideration of $ 2,343 , net of cash acquired , subject to certain closing and post-closing adjustments , plus up to an additional $ 6,750 in contingent consideration , based upon the achievement of certain performance targets . on the date of acquisition , we recorded a liability of approximately $ 5,239 , which represented the estimated fair value of contingent consideration as of that date . in 2020 , we determined that certain performance targets for this acquisition would not be met . as a result , we reduced the contingent consideration liability plus accrued interest associated with this acquisition by $ 3,105 and recorded this as a reduction to general and administration expenses . future changes to the estimated fair value of the contingent consideration , if any , will be recognized in our earnings . we recorded estimated goodwill of $ 7,019 , which is not deductible for income tax purposes , and estimated identifiable intangible assets for proprietary technologies of $ 1,000. the tangible assets acquired and liabilities assumed were not material . acquisition of private cloud technology company on march 2 , 2020 , we acquired certain assets of a private cloud technology company ( the โ private cloud technology company acquisition โ ) . the private cloud technology company enables enterprises to design and implement the digital 36 table of contents transition from legacy systems and applications to a modern cloud computing platform . the technology and operations of the private cloud technology company have been integrated into our envestnet wealth solutions segment . in connection with the private cloud technology company acquisition , we paid estimated consideration of $ 11,968 , net of cash acquired . in connection with the acquisition , we recorded estimated goodwill of $ 10,932 , which is deductible for income tax purposes . the tangible assets acquired and liabilities assumed were not material . acquisition of private financial technology design company on march 3 , 2020 , we acquired the outstanding units of a private financial technology design company that were not owned by the company and merged the acquired company into a wholly owned subsidiary of ours ( the โ private financial technology design company acquisition โ ) . the private financial technology design company designs integrated , intuitive digital technology applications for institutional financial services firms , bank wealth management organizations , independent advisor networks , and broker-dealers . the technology and operations of the private financial technology design company have been integrated into our envestnet wealth solutions segment . story_separator_special_tag professional services and other revenues professional services and other revenues decreased 17 % from $ 37,002 in 2019 to $ 30,776 in 2020. the decrease was due to timing of the completion of customer projects and deployments , as well as a decrease in revenues resulting from the cancellation of our 2020 advisor summit . cost of revenues cost of revenues increased 10 % from $ 278,811 in 2019 to $ 305,929 in 2020 , primarily due to an increase in asset-based cost of revenues of $ 34,656 , partially offset by decreases in professional services and other revenues of $ 5,568 and subscription-based cost of revenues of $ 1,970. as a percentage of total revenues , cost of revenues remained consistent at 31 % for the years ended december 31 , 2019 and 2020. compensation and benefits compensation and benefits increased 4 % from $ 383,554 in 2019 to $ 398,970 in 2020 , primarily due to increases in severance expense of $ 9,742 and incentive compensation of $ 6,925 , partially offset by salary , benefits and related payroll taxes of $ 1,922. the increase in severance expense is primarily related to charges connected with the early retirement program that was offered to eligible employees through january 31 , 2020. the 2019 acquisitions contributed compensation and benefits expenses of $ 22,891 and $ 28,601 , to total compensation and benefits expense in 2019 and 2020 , respectively . as a percentage of total revenues , compensation and benefits decreased from 43 % in 2019 to 40 % in 2020 , primarily due to revenue growth of our 2019 acquisitions outpacing compensation and benefit growth for these same acquisitions . general and administration general and administration expenses increased 5 % from $ 152,564 in 2019 to $ 160,229 in 2020 , primarily due to increases in non-recurring restructuring charges and transaction costs of $ 11,202 , systems development expense of $ 4,772 , trade errors of $ 3,045 , permits , licenses and fees of $ 1,425 , professional and legal expenses of $ 1,363 and other miscellaneous general and administrative expenses of $ 1,278. these increases were partially offset by decreases in travel and entertainment expense of $ 12,335 , occupancy costs of $ 3,296 and marketing expense of $ 3,159. the 2019 acquisitions contributed general and administration expenses of $ 8,701 and $ 6,593 , to total general and administration expenses in 2019 and 2020 respectively . as a percentage of total revenues , general and administration expenses decreased from 17 % in 2019 to 16 % and 2020. depreciation and amortization depreciation and amortization expense increased 12 % from $ 101,271 in 2019 to $ 113,661 in 2020 , primarily due to increases in internally developed software amortization expense of $ 6,628 and intangible asset amortization expense of $ 5,107. as a percentage of total revenues , depreciation and amortization expense remained consistent at 11 % in 2019 and 2020. interest income interest income decreased from $ 3,347 in 2019 to $ 1,112 in 2020 , primarily due to less interest earned on our bank accounts and money market funds . while our cash and cash equivalent balance increased significantly in 2020 as a result of the proceeds we received from our convertible debt offering in august 2020 , interest earned on this cash continued to be low . interest expense interest expense decreased 3 % from $ 32,520 in 2019 to $ 31,504 in 2020 , primarily due to the payment of $ 345,000 of convertible notes in december 2019 and the paydown of our revolving credit facility in 2020 , partially offset by additional interest incurred on the issuance of convertible notes due 2025 in august 2020. as a percentage of total revenues , interest expense decreased from 4 % in 2019 to 3 % in 2020 . 43 table of contents other income ( expense ) , net other income ( expense ) , net increased from other expense of $ 2,849 in 2019 to other income of $ 2,906 in 2020 , primarily due to a gain of $ 4,230 recognized in 2020 on the remeasurement of our previously held interest in the private financial technology design company , a gain of $ 2,524 as a result of a fair value adjustment upon settlement of our former chief executive officer 's stock options and a gain on the sale of our interest held in a private company of $ 1,647. this increase was partially offset by additional equity method losses of $ 3,038 recorded in 2020 as compared to 2019. income tax provision replace_table_token_5_th our 2020 effective tax rate differs from the statutory rate primarily due to state taxes , the excess tax benefit related to stock-based compensation , the executive compensation deduction limitation , the generation of research and development ( โ r & d โ ) tax credits , income related to the indian partnerships , the impact of the cares act related to nol carryback , the change in the valuation allowance the company has placed on a portion of its us deferred tax assets and the settlement of asc 740-10 amounts due to the settlement of the bilateral advance pricing agreement with india and the filing of voluntary disclosure agreement returns . our 2019 effective tax rate differs from the statutory rate primarily due to state taxes , excess tax benefit related to stock-based compensation , the generation of r & d tax credits , unrecognized tax benefits , prior period true-ups and changes in valuation allowances . year ended december 31 , 2019 compared to year ended december 31 , 2018 for a discussion of the 2019 results of operations compared to 2018 , see part ii , item 7 , โ management 's discussion and analysis of financial condition and results of operations โ of our form 10-k filed with the sec on february 28 , 2020. business segments business segments are generally organized around our
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2,541 | during the year ended december 31 , 2011 , 2010 and 2009 , the company recognized $ 4.5 million , $ 6.7 million and $ 8.3 million ( pre-tax ) of restructuring charges , primarily related to the closure of facilities , capacity reductions and costs associated with involuntary termination of employees in connection with reductions in workforce of certain facilities worldwide . 30 we believe that our global manufacturing presence increases our ability to be responsive to our customers ' needs by providing accelerated time-to-market and time-to-volume production of high quality products . these capabilities enable us to build stronger strategic relationships with our customers and to become a more integral part of their operations . our customers face challenges in planning , procuring and managing their inventories efficiently due to customer demand fluctuations , product design changes , short product life cycles and component price fluctuations . we employ production management systems to manage their procurement and manufacturing processes in an efficient and cost-effective manner so that , where possible , components arrive on a just-in-time , as-and-when-needed basis . we are a significant purchaser of electronic components and other raw materials , and can capitalize on the economies of scale associated with our relationships with suppliers to negotiate price discounts , obtain components and other raw materials that are in short supply , and return excess components . our expertise in supply chain management and our relationships with suppliers across the supply chain enables us to reduce our customers ' cost of goods sold and inventory exposure . we recognize revenue from the sale of manufactured products built to customer specifications and excess inventory when title and risk of ownership have passed , the price to the buyer is fixed and determinable and collectibility is reasonably assured , which generally is when the goods are shipped . revenue from design , development and engineering services is recognized when the services are performed and collectibility is reasonably certain . such services provided under fixed price contracts are accounted for using the percentage of completion method . we generally assume no significant obligations after product shipment as we typically warrant workmanship only . therefore , our warranty provisions are generally not significant . our cost of sales includes the cost of materials , electronic components and other materials that comprise the products we manufacture , the cost of labor and manufacturing overhead , and adjustments for excess and obsolete inventory . our procurement of materials for production requires us to commit significant working capital to our operations and to manage the purchasing , receiving , inspection and stocking of materials . although we bear the risk of fluctuations in the cost of materials and excess scrap , we periodically negotiate cost of materials adjustments with our customers . our gross margin for any product depends on the sales price , the proportionate mix of the cost of materials in the product and the cost of labor and manufacturing overhead allocated to the product . we typically have the potential to realize higher gross margins on products where the proportionate level of labor and manufacturing overhead is greater than that of materials . as we gain experience in manufacturing a product , we usually achieve increased efficiencies , which result in lower labor and manufacturing overhead costs for that product and higher gross margins . our operating results are impacted by the level of capacity utilization of manufacturing facilities . operating income margins have generally improved during periods of high production volume and high capacity utilization . during periods of low production volume , we generally have idle capacity and reduced operating income margins . severe flooding in thailand and suspension of thailand operations our facilities in ayudhaya , thailand were flooded and remained closed from october 13 , 2011 to december 20 , 2011. as a result of the flooding and temporary closing of our facilities , we recognized estimated property losses of $ 46.2 million and incurred $ 13.4 million of flood related costs in 2011. we carry property and business interruption insurance that we believe is appropriate and adequate for this situation . our combined limit for real and personal property as well as business interruption insurance is approximately $ 300 million . as such , we have recorded estimated recoveries from insurance for these property losses and flood related costs totaling $ 56.2 million . as of december 31 , 2011 , thailand flood related charges , net of insurance recoveries , were as follows ( in thousands ) : inventory losses $ 39,919 property , plant and equipment losses 6,233 other flood related costs 13,362 59,514 estimated insurance recoveries recorded in prepaid expenses and other assets ( 56,152 ) $ 3,362 31 the ayudhaya , thailand facilities are among our largest , generating approximately 24 % of our revenue in the first nine months of 2011. as a result , the impact on revenue and operations was significant in the fourth quarter of 2011 and will be significant for the next several fiscal quarters . we are managing the situation on an on-going basis and are working to mitigate the impact to us and our customers . we and our customers implemented contingency and recovery plans as a result of the flood to help enable us to meet customer needs . as part of those plans , we restarted production at our korat , thailand facility in november 2011 , and we shifted production from our ayudhaya facilities to our various other sites around the globe . story_separator_special_tag developments adverse to our major customers or their products , or the failure of a major customer to pay for components or services , could have an adverse effect on us . adverse worldwide economic conditions have impacted our customers . see note 10 to the consolidated financial statements in item 8 of this report . a substantial percentage of our sales have been made to a small number of customers , and the loss of a major customer , if not replaced , would adversely affect us . sales to our ten largest customers represented 53 % and 47 % of our sales in 2011 and 2010 , respectively . in 2011 , sales to international business machines corporation represented 14 % of our sales . no one customer represented 10 % or more of our sales in 2010. our international operations are subject to the risks of doing business abroad . see item 1a for factors pertaining to our international sales and fluctuations in the exchange rates of foreign currency and for further discussion of potential adverse effects in operating results associated with the risks of doing business abroad . during 2011 and 2010 , 51 % and 48 % , respectively , of our sales were from our international operations . we had a backlog of approximately $ 1.6 billion at december 31 , 2011 , as compared to the 2010 year-end backlog of $ 1.5 billion . backlog consists of purchase orders received , including , in some instances , forecast requirements released for production under customer contracts . although we expect to fill substantially all of our backlog at december 31 , 2011 during 2012 , we do not have long-term agreements with all of our customers and customer orders can be canceled , changed or delayed by customers . the timely replacement of canceled , changed or delayed orders with orders from new customers can not be assured , nor can there be any assurance that any of our current customers will continue to utilize our services . because of these factors , backlog is not a meaningful indicator of future financial results . 36 gross profit gross profit decreased 26 % to $ 138.8 million for 2011 from $ 187.4 million in 2010. the impact on revenue and operations from the flooding in thailand was significant in the fourth quarter of 2011. in addition to the lower sales volume and the resulting under-absorbed manufacturing overhead costs , the decrease in gross profit was also a result of $ 4.4 million of settlement costs associated with the transfer of a major program , new program ramp costs and capacity expansion costs , primarily in asia , incurred in 2011. our gross profit as a percentage of sales decreased to 6.2 % for the year ended december 31 , 2011 from 7.8 % in the same period of 2010 primarily due to lower sales volumes , product mix , new program ramp costs and capacity expansion costs , primarily in asia , which resulted in under-absorbed manufacturing overhead costs , as well as the settlement costs noted above . we experience fluctuations in gross profit from period to period . different programs contribute different gross profits depending on factors such as the types of services involved , location of production , size of the program , complexity of the product , and level of material costs associated with the various products . moreover , new programs can contribute relatively less to our gross profit in their early stages when manufacturing volumes are usually lower , resulting in inefficiencies and under-absorbed manufacturing overhead costs . in addition , a number of our new and higher volume programs remain subject to competitive constraints that could exert downward pressure on our margins . during periods of low production volume , we generally have idle capacity and reduced gross profit . selling , general and administrative expenses selling , general and administrative expenses decreased 3 % to $ 89.7 million in 2011 from $ 92.2 million in 2010 primarily due to reduced stock-based compensation expenses , decreased overhead resulting from cost controls and lower variable compensation expenses , which were partially offset by higher other employee related costs . selling , general and administrative expenses , as a percentage of sales , were 4.0 % and 3.8 % , respectively , for 2011 and 2010. the increase in selling , general and administrative expenses as a percentage of sales is due to the impact of lower sales volumes during 2011. restructuring charges we recognized $ 4.5 million in restructuring charges during 2011 primarily related to the decision to close our dublin , ireland facility . the recognition of the restructuring charges requires that we make certain judgments and estimates regarding the nature , timing and amount of costs associated with planned exit activities . to the extent our actual results in exiting these facilities differ from our estimates and assumptions , we may be required to revise the estimates of future liabilities , requiring the recognition of additional restructuring charges or the reduction of liabilities already recognized . at the end of each reporting period , we evaluate the remaining accrued balances to ensure that no excess accruals are retained and the utilization of the provisions are for their intended purpose in accordance with developed exit plans . see note 16 to the consolidated financial statements in item 8 of this report . thailand flood related charges , net of insurance we recognized $ 3.4 million in thailand flood related charges , net of estimated insurance recoveries during the fourth quarter of 2011. see note 16 to the consolidated financial statements in item 8 of this report . income tax expense ( benefit ) income tax benefit of $ 10.8 million represented a negative effective tax rate of 26.3 % for 2011 , compared with income tax expense of $ 7.3 million at an effective tax rate of 8.3
| liquidity and capital resources we have historically financed our growth and operations through funds generated from operations and proceeds from the sale and maturity of our investments . cash and cash equivalents totaled $ 283.9 million at december 31 , 2011 and $ 346.3 million at december 31 , 2010 , of which $ 195.9 million at december 31 , 2011 and $ 241.6 million at december 31 , 2010 was held outside the u.s. in various foreign subsidiaries . substantially all of the amounts held outside of the u.s. are intended to be indefinitely reinvested in foreign operations . under current tax laws and regulations , if cash and cash equivalents held outside the u.s. were to be distributed to the u.s. in the form of dividends or otherwise , we would be subject to additional u.s. income taxes and foreign withholding taxes . cash provided by operating activities was $ 54.8 million in 2011. the cash provided by operations during 2011 consisted primarily of net income of $ 52.0 million adjusted for $ 35.5 million of depreciation and amortization , $ 46.5 million of asset impairments , a $ 27.7 million decrease in accounts receivable , a $ 12.1 decrease in prepaid expense and other assets and a $ 28.4 million increase in accounts payable offset by a $ 56.2 million insurance receivable , a $ 72.7 million increase in inventories and $ 18.0 million of deferred income taxes . working capital was $ 849.0 million at december 31 , 2011 and $ 891.6 million at december 31 , 2010. we are continuing the practice of purchasing components only after customer orders or forecasts are received , which mitigates , but does not eliminate , the risk of loss on inventories . supplies of electronic components and other materials used in operations are subject to industry-wide shortages . in certain instances , suppliers may allocate available quantities to us . if shortages of these components and other material supplies used in operations occur , vendors may not ship the quantities we need for production and we may be forced to delay shipments , which would increase backorders and therefore impact cash flows .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources we have historically financed our growth and operations through funds generated from operations and proceeds from the sale and maturity of our investments . cash and cash equivalents totaled $ 283.9 million at december 31 , 2011 and $ 346.3 million at december 31 , 2010 , of which $ 195.9 million at december 31 , 2011 and $ 241.6 million at december 31 , 2010 was held outside the u.s. in various foreign subsidiaries . substantially all of the amounts held outside of the u.s. are intended to be indefinitely reinvested in foreign operations . under current tax laws and regulations , if cash and cash equivalents held outside the u.s. were to be distributed to the u.s. in the form of dividends or otherwise , we would be subject to additional u.s. income taxes and foreign withholding taxes . cash provided by operating activities was $ 54.8 million in 2011. the cash provided by operations during 2011 consisted primarily of net income of $ 52.0 million adjusted for $ 35.5 million of depreciation and amortization , $ 46.5 million of asset impairments , a $ 27.7 million decrease in accounts receivable , a $ 12.1 decrease in prepaid expense and other assets and a $ 28.4 million increase in accounts payable offset by a $ 56.2 million insurance receivable , a $ 72.7 million increase in inventories and $ 18.0 million of deferred income taxes . working capital was $ 849.0 million at december 31 , 2011 and $ 891.6 million at december 31 , 2010. we are continuing the practice of purchasing components only after customer orders or forecasts are received , which mitigates , but does not eliminate , the risk of loss on inventories . supplies of electronic components and other materials used in operations are subject to industry-wide shortages . in certain instances , suppliers may allocate available quantities to us . if shortages of these components and other material supplies used in operations occur , vendors may not ship the quantities we need for production and we may be forced to delay shipments , which would increase backorders and therefore impact cash flows .
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Suspicious Activity Report : during the year ended december 31 , 2011 , 2010 and 2009 , the company recognized $ 4.5 million , $ 6.7 million and $ 8.3 million ( pre-tax ) of restructuring charges , primarily related to the closure of facilities , capacity reductions and costs associated with involuntary termination of employees in connection with reductions in workforce of certain facilities worldwide . 30 we believe that our global manufacturing presence increases our ability to be responsive to our customers ' needs by providing accelerated time-to-market and time-to-volume production of high quality products . these capabilities enable us to build stronger strategic relationships with our customers and to become a more integral part of their operations . our customers face challenges in planning , procuring and managing their inventories efficiently due to customer demand fluctuations , product design changes , short product life cycles and component price fluctuations . we employ production management systems to manage their procurement and manufacturing processes in an efficient and cost-effective manner so that , where possible , components arrive on a just-in-time , as-and-when-needed basis . we are a significant purchaser of electronic components and other raw materials , and can capitalize on the economies of scale associated with our relationships with suppliers to negotiate price discounts , obtain components and other raw materials that are in short supply , and return excess components . our expertise in supply chain management and our relationships with suppliers across the supply chain enables us to reduce our customers ' cost of goods sold and inventory exposure . we recognize revenue from the sale of manufactured products built to customer specifications and excess inventory when title and risk of ownership have passed , the price to the buyer is fixed and determinable and collectibility is reasonably assured , which generally is when the goods are shipped . revenue from design , development and engineering services is recognized when the services are performed and collectibility is reasonably certain . such services provided under fixed price contracts are accounted for using the percentage of completion method . we generally assume no significant obligations after product shipment as we typically warrant workmanship only . therefore , our warranty provisions are generally not significant . our cost of sales includes the cost of materials , electronic components and other materials that comprise the products we manufacture , the cost of labor and manufacturing overhead , and adjustments for excess and obsolete inventory . our procurement of materials for production requires us to commit significant working capital to our operations and to manage the purchasing , receiving , inspection and stocking of materials . although we bear the risk of fluctuations in the cost of materials and excess scrap , we periodically negotiate cost of materials adjustments with our customers . our gross margin for any product depends on the sales price , the proportionate mix of the cost of materials in the product and the cost of labor and manufacturing overhead allocated to the product . we typically have the potential to realize higher gross margins on products where the proportionate level of labor and manufacturing overhead is greater than that of materials . as we gain experience in manufacturing a product , we usually achieve increased efficiencies , which result in lower labor and manufacturing overhead costs for that product and higher gross margins . our operating results are impacted by the level of capacity utilization of manufacturing facilities . operating income margins have generally improved during periods of high production volume and high capacity utilization . during periods of low production volume , we generally have idle capacity and reduced operating income margins . severe flooding in thailand and suspension of thailand operations our facilities in ayudhaya , thailand were flooded and remained closed from october 13 , 2011 to december 20 , 2011. as a result of the flooding and temporary closing of our facilities , we recognized estimated property losses of $ 46.2 million and incurred $ 13.4 million of flood related costs in 2011. we carry property and business interruption insurance that we believe is appropriate and adequate for this situation . our combined limit for real and personal property as well as business interruption insurance is approximately $ 300 million . as such , we have recorded estimated recoveries from insurance for these property losses and flood related costs totaling $ 56.2 million . as of december 31 , 2011 , thailand flood related charges , net of insurance recoveries , were as follows ( in thousands ) : inventory losses $ 39,919 property , plant and equipment losses 6,233 other flood related costs 13,362 59,514 estimated insurance recoveries recorded in prepaid expenses and other assets ( 56,152 ) $ 3,362 31 the ayudhaya , thailand facilities are among our largest , generating approximately 24 % of our revenue in the first nine months of 2011. as a result , the impact on revenue and operations was significant in the fourth quarter of 2011 and will be significant for the next several fiscal quarters . we are managing the situation on an on-going basis and are working to mitigate the impact to us and our customers . we and our customers implemented contingency and recovery plans as a result of the flood to help enable us to meet customer needs . as part of those plans , we restarted production at our korat , thailand facility in november 2011 , and we shifted production from our ayudhaya facilities to our various other sites around the globe . story_separator_special_tag developments adverse to our major customers or their products , or the failure of a major customer to pay for components or services , could have an adverse effect on us . adverse worldwide economic conditions have impacted our customers . see note 10 to the consolidated financial statements in item 8 of this report . a substantial percentage of our sales have been made to a small number of customers , and the loss of a major customer , if not replaced , would adversely affect us . sales to our ten largest customers represented 53 % and 47 % of our sales in 2011 and 2010 , respectively . in 2011 , sales to international business machines corporation represented 14 % of our sales . no one customer represented 10 % or more of our sales in 2010. our international operations are subject to the risks of doing business abroad . see item 1a for factors pertaining to our international sales and fluctuations in the exchange rates of foreign currency and for further discussion of potential adverse effects in operating results associated with the risks of doing business abroad . during 2011 and 2010 , 51 % and 48 % , respectively , of our sales were from our international operations . we had a backlog of approximately $ 1.6 billion at december 31 , 2011 , as compared to the 2010 year-end backlog of $ 1.5 billion . backlog consists of purchase orders received , including , in some instances , forecast requirements released for production under customer contracts . although we expect to fill substantially all of our backlog at december 31 , 2011 during 2012 , we do not have long-term agreements with all of our customers and customer orders can be canceled , changed or delayed by customers . the timely replacement of canceled , changed or delayed orders with orders from new customers can not be assured , nor can there be any assurance that any of our current customers will continue to utilize our services . because of these factors , backlog is not a meaningful indicator of future financial results . 36 gross profit gross profit decreased 26 % to $ 138.8 million for 2011 from $ 187.4 million in 2010. the impact on revenue and operations from the flooding in thailand was significant in the fourth quarter of 2011. in addition to the lower sales volume and the resulting under-absorbed manufacturing overhead costs , the decrease in gross profit was also a result of $ 4.4 million of settlement costs associated with the transfer of a major program , new program ramp costs and capacity expansion costs , primarily in asia , incurred in 2011. our gross profit as a percentage of sales decreased to 6.2 % for the year ended december 31 , 2011 from 7.8 % in the same period of 2010 primarily due to lower sales volumes , product mix , new program ramp costs and capacity expansion costs , primarily in asia , which resulted in under-absorbed manufacturing overhead costs , as well as the settlement costs noted above . we experience fluctuations in gross profit from period to period . different programs contribute different gross profits depending on factors such as the types of services involved , location of production , size of the program , complexity of the product , and level of material costs associated with the various products . moreover , new programs can contribute relatively less to our gross profit in their early stages when manufacturing volumes are usually lower , resulting in inefficiencies and under-absorbed manufacturing overhead costs . in addition , a number of our new and higher volume programs remain subject to competitive constraints that could exert downward pressure on our margins . during periods of low production volume , we generally have idle capacity and reduced gross profit . selling , general and administrative expenses selling , general and administrative expenses decreased 3 % to $ 89.7 million in 2011 from $ 92.2 million in 2010 primarily due to reduced stock-based compensation expenses , decreased overhead resulting from cost controls and lower variable compensation expenses , which were partially offset by higher other employee related costs . selling , general and administrative expenses , as a percentage of sales , were 4.0 % and 3.8 % , respectively , for 2011 and 2010. the increase in selling , general and administrative expenses as a percentage of sales is due to the impact of lower sales volumes during 2011. restructuring charges we recognized $ 4.5 million in restructuring charges during 2011 primarily related to the decision to close our dublin , ireland facility . the recognition of the restructuring charges requires that we make certain judgments and estimates regarding the nature , timing and amount of costs associated with planned exit activities . to the extent our actual results in exiting these facilities differ from our estimates and assumptions , we may be required to revise the estimates of future liabilities , requiring the recognition of additional restructuring charges or the reduction of liabilities already recognized . at the end of each reporting period , we evaluate the remaining accrued balances to ensure that no excess accruals are retained and the utilization of the provisions are for their intended purpose in accordance with developed exit plans . see note 16 to the consolidated financial statements in item 8 of this report . thailand flood related charges , net of insurance we recognized $ 3.4 million in thailand flood related charges , net of estimated insurance recoveries during the fourth quarter of 2011. see note 16 to the consolidated financial statements in item 8 of this report . income tax expense ( benefit ) income tax benefit of $ 10.8 million represented a negative effective tax rate of 26.3 % for 2011 , compared with income tax expense of $ 7.3 million at an effective tax rate of 8.3
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2,542 | on september 2 , 2020 , we redeemed the entire $ 300 million outstanding of 3.75 % notes due 2022 for a redemption price of $ 325.1 million , including accrued and unpaid interest through the redemption date and a make-whole amount . as of december 31 , 2020 , we have a borrowing capacity of $ 1.2 billion on our line of credit ( โ line โ ) . at december 31 , 2020 , our pro-rata net debt-to-operating ebitda re ratio on a trailing twelve month basis was 6.0x as compared to 5.4x at december 31 , 2019. subsequent to december 31 , 2020 , we repaid our $ 265 million term loan , leaving us with no unsecured debt maturities until 2024. subsequent to december 31 , 2020 , we extended our line maturity date to march 2025 , retaining the same $ 1.25 billion borrowing commitment . 40 leasing activity and significant tenants we believe our high-quality , grocery anchored shopping centers located in densely populated , desirable infill trade areas create attractive spaces for retail and service providers to operate their businesses . pro-rata percent leased the following table summarizes pro-rata percent leased of our combined consolidated and unconsolidated shopping center portfolio : replace_table_token_20_th our percent leased in both the anchor and shop space categories declined during 2020 due to tenant closures and bankruptcies primarily as a result from the impacts of the pandemic . additionally , a number of tenants at our properties were either required or elected to temporarily close due to the pandemic . some of these tenants may be unable to sustain their business models in this current pandemic environment and may fail . while the pandemic continues , we may be unable to find suitable replacement tenants for an extended period of time and the terms of the leases with replacement tenants may be less favorable to us . as such , our percent leased could decline further in future periods , resulting in reduced lease income from both lower base rent and recoveries from tenants for cam , real estate taxes , and insurance costs at our centers . pro-rata leasing activity the following table summarizes leasing activity , including our pro-rata share of activity within the portfolio of our co-investment partnerships : replace_table_token_21_th replace_table_token_22_th new leasing activity has declined as many businesses delay executing leases amidst the immediate and uncertain future economic impacts from the pandemic ; however , renewal leasing activity has remained consistent with 2019 levels . new and renewal rent spreads , as compared to prior rents on these same spaces leased , remained positive at 2.2 % for the twelve months ended december 31 , 2020 , although the spreads tightened throughout the year as compared to 5.7 % for the twelve months ended december 31 , 2019. with 41 the average annual base rent of all shop space leases due to expire during the next 12 months of $ 33.37 psf , there is a possibility of negative rent spreads occurring as we execute new or renewal lease deals , considering the t otal weighted average base rent on signed shop space leases during 2020 was lower at $ 32.87 psf . significant tenants and concentrations of risk we seek to reduce our operating and leasing risks through geographic diversification and by avoiding dependence on any single property , market , or tenant . based on percentage of annualized base rent , the following table summarizes our most significant tenants , of which the top four are grocers : replace_table_token_23_th ( 1 ) includes regency 's pro-rata share of unconsolidated properties and excludes those owned by anchors . bankruptcies and credit concerns the impact of bankruptcies may increase significantly if tenants occupying our centers are unable to withstand and recover from the disruptions caused by the pandemic , which could materially adversely impact our lease income . since the pandemic began , we have seen an increase in the number of tenants filing for bankruptcy . due to the pandemic there has been and continues to be a greater focus on whether tenants ' businesses are considered essential or non-essential , which may directly impact the tenants ' ability to operate and generate sufficient cash flows to meet their operating expenses , including lease payments . continued higher unemployment levels could also negatively impact consumer spending and , along with large-scale business failures , have an adverse effect on our results from operations . we seek to mitigate these potential impacts through tenant diversification , replacing weaker tenants with stronger operators , anchoring our centers with market leading grocery stores that drive customer traffic , and maintaining a presence in affluent suburbs and dense infill trade areas . as of december 31 , 2020 , approximately 63 % of pro-rata average base rent in our portfolio is derived from tenants ' businesses classified as essential . since the pandemic began , the company has been closely monitoring its cash collections which significantly declined from historic levels in the initial months of the pandemic , most notably from tenants whose businesses are classified as non-essential . the pandemic has continued to result in certain tenants requesting concessions from rent obligations , including deferrals , abatements and requests to negotiate future rents , while some tenants have been unable to reopen or have not honored the terms of their existing lease agreements . the company has entered into approximately 1,600 agreements , representing $ 40.8 million of pro-rata base rent or 4.6 % of our total annual base rent , with tenants within our consolidated real estate portfolio and our unconsolidated real estate investment partnerships , enabling them to defer a portion of their rental payments and repay them over future periods . the company expects to continue to work with other tenants , which may result in further rent concessions or legal actions as determined to be necessary and appropriate . story_separator_special_tag after repaying our $ 265 million term loan and funding our dividend payment in january 2021 with cash on hand , we estimate that we will require capital during the next twelve months of approximately $ 353.6 million to repay maturing debt , to fund construction and related costs for committed tenant improvements and in-process development and redevelopment , and to make capital contributions to our co-investment partnerships . if we start new developments or redevelopments , commit to new acquisitions , prepay debt prior to maturity , or repurchase shares of our common stock , our cash requirements will increase . the combination of our $ 1.2 billion capacity available on our line and no unsecured debt maturities until 2024 strengthens our financial position enabling us to fund our expected near-term operating and capital expenditures amid the uncertainty of operating cash flows during this pandemic and recovery period . we expect to generate the necessary cash to fund our long-term capital needs from cash flow from operations , borrowings from our line , proceeds from the sale of real estate , mortgage loan and unsecured bank financing , and when the capital markets are favorable , proceeds from the sale of equity or the issuance of new unsecured debt . we endeavor to maintain a high percentage of unencumbered assets , as measured by 89.6 % of our wholly-owned real estate assets being unencumbered at december 31 , 2020. such assets allow us to access the secured and unsecured debt markets and to maintain availability on the line . our trailing twelve month fixed charge coverage ratio , including our pro-rata share of our partnerships , was 3.6x and 4.3x for the periods ended december 31 , 2020 and 2019 , respectively , and our pro-rata net debt-to-operating ebitda re ratio on a trailing twelve month basis was 6.0x and 5.4x , respectively , for the same periods . we expect that these ratios could worsen during 2021 as a result of potential further impacts from the ongoing pandemic . our line , term loan , and unsecured debt require that we remain in compliance with various covenants , which are described in note 9 to the consolidated financial statements . we are in compliance with these covenants at december 31 , 2020 , and expect to remain in compliance . summary of cash flow activity the following table summarizes net cash flows related to operating , investing , and financing activities of the company : replace_table_token_34_th net cash provided by operating activities : net cash provided by operating activities decreased by $ 122.2 million due to : $ 129.0 million decrease in cash flows from operating income , largely resulting from lower rent collections attributable to the impact of the pandemic on our tenants . however , we continue to negotiate with some of our tenants on repayment periods and since the pandemic began , we have executed approximately 1,600 rent deferral agreements , representing $ 40.8 million of rent or 4.6 % of annual base rent , within our consolidated and unconsolidated real estate portfolios . the weighted average deferral period of these agreements is approximately 3.3 months , with repayment periods of approximately 9.7 months beginning in december 2020. due to the uncertainty surrounding the pandemic , there can be no assurances how much deferred rent will ultimately be paid , or paid within the timeframes negotiated and agreed upon . the duration and severity of the pandemic will continue to impact our ability to generate cash flow from operations ; offset by , $ 6.9 million increase from cash paid in 2019 to settle treasury rate locks put in place to hedge changes in interest rates on our 30 year fixed rate debt offering and to settle an interest rate swap on the repayment of our $ 300 million term loan , both during 2019 . 50 net cash used in investing activities : net cash used in investing activities changed by $ 257.1 million as follows : replace_table_token_35_th significant investing activities included : we acquired one operating property for $ 16.9 million during 2020 and four operating properties for $ 222.4 million during 2019. we invested $ 19.2 million less in 2020 than 2019 on real estate development , redevelopment , and capital improvements , as further detailed in a table below . we received proceeds of $ 189.4 million from the sale of 6 shopping centers and 11 land parcels in 2020 , including proceeds from a short term note issued at closing and repaid during the same period , compared to $ 137.6 million for 7 shopping centers and 6 land parcels in 2019. we received property insurance claim proceeds of $ 8.0 million during 2020 primarily related to a single property damaged by a tornado in 2020 and additional proceeds received on prior year fire and tornado claims . we received proceeds of $ 9.4 million during 2019 attributable to a single property that was severely damaged by a tornado in that year . we invested $ 51.4 million in our real estate partnerships during 2020 , including : o $ 19.6 million to fund our share of development and redevelopment activities , o $ 16.0 million to fund our share of acquiring an additional equity interest in one partnership , and o $ 15.8 million to fund our share of debt refinancing activities . during the same period in 2019 , we invested $ 66.9 million in our real estate partnerships , including : o $ 44.3 million to fund our share of development and redevelopment activities , o $ 9.7 million to fund our share of acquiring an additional equity interest in one partnership , o $ 8.2 million to fund our share of acquiring land under one shopping center that was previously under a ground lease , and o $ 4.7 million to fund our share of repayments for maturing debt . return of capital from our investments
| liquidity and capital resources general we use cash flows generated from operating , investing , and financing activities to strengthen our balance sheet , finance our development and redevelopment projects , fund our investment activities , and maintain financial flexibility . we continuously monitor the capital markets and evaluate our ability to issue new debt or equity , to repay maturing debt , or fund our capital commitments . except for $ 200 million of private placement debt , our parent company has no capital commitments other than its guarantees of the commitments of our operating partnership . all remaining debt is held by our operating partnership or by our co-investment partnerships . the operating partnership is a co-issuer and a guarantor of the $ 200 million of outstanding debt of our parent company . the parent company will from time to time access the capital markets for the purpose of issuing new equity and will simultaneously contribute all of the offering proceeds to the operating partnership in exchange for additional partnership units . as the pandemic and its related impacts continue to evolve , we have taken the following steps to ensure sufficient liquidity and financial flexibility : 48 we settled our forward equity agreements under our previous atm program and received proceeds of approximately $ 125.8 million in march 2020 . we renewed our atm equity offering program in may 2020 which provides for the sale of $ 500 million of common stock . as of december 31 , 2020 , all $ 500 million of common stock remained available for issuance . we issued $ 600 million of new 10-year senior unsecured public notes in may 2020 and received proceeds of $ 598.8 million .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources general we use cash flows generated from operating , investing , and financing activities to strengthen our balance sheet , finance our development and redevelopment projects , fund our investment activities , and maintain financial flexibility . we continuously monitor the capital markets and evaluate our ability to issue new debt or equity , to repay maturing debt , or fund our capital commitments . except for $ 200 million of private placement debt , our parent company has no capital commitments other than its guarantees of the commitments of our operating partnership . all remaining debt is held by our operating partnership or by our co-investment partnerships . the operating partnership is a co-issuer and a guarantor of the $ 200 million of outstanding debt of our parent company . the parent company will from time to time access the capital markets for the purpose of issuing new equity and will simultaneously contribute all of the offering proceeds to the operating partnership in exchange for additional partnership units . as the pandemic and its related impacts continue to evolve , we have taken the following steps to ensure sufficient liquidity and financial flexibility : 48 we settled our forward equity agreements under our previous atm program and received proceeds of approximately $ 125.8 million in march 2020 . we renewed our atm equity offering program in may 2020 which provides for the sale of $ 500 million of common stock . as of december 31 , 2020 , all $ 500 million of common stock remained available for issuance . we issued $ 600 million of new 10-year senior unsecured public notes in may 2020 and received proceeds of $ 598.8 million .
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Suspicious Activity Report : on september 2 , 2020 , we redeemed the entire $ 300 million outstanding of 3.75 % notes due 2022 for a redemption price of $ 325.1 million , including accrued and unpaid interest through the redemption date and a make-whole amount . as of december 31 , 2020 , we have a borrowing capacity of $ 1.2 billion on our line of credit ( โ line โ ) . at december 31 , 2020 , our pro-rata net debt-to-operating ebitda re ratio on a trailing twelve month basis was 6.0x as compared to 5.4x at december 31 , 2019. subsequent to december 31 , 2020 , we repaid our $ 265 million term loan , leaving us with no unsecured debt maturities until 2024. subsequent to december 31 , 2020 , we extended our line maturity date to march 2025 , retaining the same $ 1.25 billion borrowing commitment . 40 leasing activity and significant tenants we believe our high-quality , grocery anchored shopping centers located in densely populated , desirable infill trade areas create attractive spaces for retail and service providers to operate their businesses . pro-rata percent leased the following table summarizes pro-rata percent leased of our combined consolidated and unconsolidated shopping center portfolio : replace_table_token_20_th our percent leased in both the anchor and shop space categories declined during 2020 due to tenant closures and bankruptcies primarily as a result from the impacts of the pandemic . additionally , a number of tenants at our properties were either required or elected to temporarily close due to the pandemic . some of these tenants may be unable to sustain their business models in this current pandemic environment and may fail . while the pandemic continues , we may be unable to find suitable replacement tenants for an extended period of time and the terms of the leases with replacement tenants may be less favorable to us . as such , our percent leased could decline further in future periods , resulting in reduced lease income from both lower base rent and recoveries from tenants for cam , real estate taxes , and insurance costs at our centers . pro-rata leasing activity the following table summarizes leasing activity , including our pro-rata share of activity within the portfolio of our co-investment partnerships : replace_table_token_21_th replace_table_token_22_th new leasing activity has declined as many businesses delay executing leases amidst the immediate and uncertain future economic impacts from the pandemic ; however , renewal leasing activity has remained consistent with 2019 levels . new and renewal rent spreads , as compared to prior rents on these same spaces leased , remained positive at 2.2 % for the twelve months ended december 31 , 2020 , although the spreads tightened throughout the year as compared to 5.7 % for the twelve months ended december 31 , 2019. with 41 the average annual base rent of all shop space leases due to expire during the next 12 months of $ 33.37 psf , there is a possibility of negative rent spreads occurring as we execute new or renewal lease deals , considering the t otal weighted average base rent on signed shop space leases during 2020 was lower at $ 32.87 psf . significant tenants and concentrations of risk we seek to reduce our operating and leasing risks through geographic diversification and by avoiding dependence on any single property , market , or tenant . based on percentage of annualized base rent , the following table summarizes our most significant tenants , of which the top four are grocers : replace_table_token_23_th ( 1 ) includes regency 's pro-rata share of unconsolidated properties and excludes those owned by anchors . bankruptcies and credit concerns the impact of bankruptcies may increase significantly if tenants occupying our centers are unable to withstand and recover from the disruptions caused by the pandemic , which could materially adversely impact our lease income . since the pandemic began , we have seen an increase in the number of tenants filing for bankruptcy . due to the pandemic there has been and continues to be a greater focus on whether tenants ' businesses are considered essential or non-essential , which may directly impact the tenants ' ability to operate and generate sufficient cash flows to meet their operating expenses , including lease payments . continued higher unemployment levels could also negatively impact consumer spending and , along with large-scale business failures , have an adverse effect on our results from operations . we seek to mitigate these potential impacts through tenant diversification , replacing weaker tenants with stronger operators , anchoring our centers with market leading grocery stores that drive customer traffic , and maintaining a presence in affluent suburbs and dense infill trade areas . as of december 31 , 2020 , approximately 63 % of pro-rata average base rent in our portfolio is derived from tenants ' businesses classified as essential . since the pandemic began , the company has been closely monitoring its cash collections which significantly declined from historic levels in the initial months of the pandemic , most notably from tenants whose businesses are classified as non-essential . the pandemic has continued to result in certain tenants requesting concessions from rent obligations , including deferrals , abatements and requests to negotiate future rents , while some tenants have been unable to reopen or have not honored the terms of their existing lease agreements . the company has entered into approximately 1,600 agreements , representing $ 40.8 million of pro-rata base rent or 4.6 % of our total annual base rent , with tenants within our consolidated real estate portfolio and our unconsolidated real estate investment partnerships , enabling them to defer a portion of their rental payments and repay them over future periods . the company expects to continue to work with other tenants , which may result in further rent concessions or legal actions as determined to be necessary and appropriate . story_separator_special_tag after repaying our $ 265 million term loan and funding our dividend payment in january 2021 with cash on hand , we estimate that we will require capital during the next twelve months of approximately $ 353.6 million to repay maturing debt , to fund construction and related costs for committed tenant improvements and in-process development and redevelopment , and to make capital contributions to our co-investment partnerships . if we start new developments or redevelopments , commit to new acquisitions , prepay debt prior to maturity , or repurchase shares of our common stock , our cash requirements will increase . the combination of our $ 1.2 billion capacity available on our line and no unsecured debt maturities until 2024 strengthens our financial position enabling us to fund our expected near-term operating and capital expenditures amid the uncertainty of operating cash flows during this pandemic and recovery period . we expect to generate the necessary cash to fund our long-term capital needs from cash flow from operations , borrowings from our line , proceeds from the sale of real estate , mortgage loan and unsecured bank financing , and when the capital markets are favorable , proceeds from the sale of equity or the issuance of new unsecured debt . we endeavor to maintain a high percentage of unencumbered assets , as measured by 89.6 % of our wholly-owned real estate assets being unencumbered at december 31 , 2020. such assets allow us to access the secured and unsecured debt markets and to maintain availability on the line . our trailing twelve month fixed charge coverage ratio , including our pro-rata share of our partnerships , was 3.6x and 4.3x for the periods ended december 31 , 2020 and 2019 , respectively , and our pro-rata net debt-to-operating ebitda re ratio on a trailing twelve month basis was 6.0x and 5.4x , respectively , for the same periods . we expect that these ratios could worsen during 2021 as a result of potential further impacts from the ongoing pandemic . our line , term loan , and unsecured debt require that we remain in compliance with various covenants , which are described in note 9 to the consolidated financial statements . we are in compliance with these covenants at december 31 , 2020 , and expect to remain in compliance . summary of cash flow activity the following table summarizes net cash flows related to operating , investing , and financing activities of the company : replace_table_token_34_th net cash provided by operating activities : net cash provided by operating activities decreased by $ 122.2 million due to : $ 129.0 million decrease in cash flows from operating income , largely resulting from lower rent collections attributable to the impact of the pandemic on our tenants . however , we continue to negotiate with some of our tenants on repayment periods and since the pandemic began , we have executed approximately 1,600 rent deferral agreements , representing $ 40.8 million of rent or 4.6 % of annual base rent , within our consolidated and unconsolidated real estate portfolios . the weighted average deferral period of these agreements is approximately 3.3 months , with repayment periods of approximately 9.7 months beginning in december 2020. due to the uncertainty surrounding the pandemic , there can be no assurances how much deferred rent will ultimately be paid , or paid within the timeframes negotiated and agreed upon . the duration and severity of the pandemic will continue to impact our ability to generate cash flow from operations ; offset by , $ 6.9 million increase from cash paid in 2019 to settle treasury rate locks put in place to hedge changes in interest rates on our 30 year fixed rate debt offering and to settle an interest rate swap on the repayment of our $ 300 million term loan , both during 2019 . 50 net cash used in investing activities : net cash used in investing activities changed by $ 257.1 million as follows : replace_table_token_35_th significant investing activities included : we acquired one operating property for $ 16.9 million during 2020 and four operating properties for $ 222.4 million during 2019. we invested $ 19.2 million less in 2020 than 2019 on real estate development , redevelopment , and capital improvements , as further detailed in a table below . we received proceeds of $ 189.4 million from the sale of 6 shopping centers and 11 land parcels in 2020 , including proceeds from a short term note issued at closing and repaid during the same period , compared to $ 137.6 million for 7 shopping centers and 6 land parcels in 2019. we received property insurance claim proceeds of $ 8.0 million during 2020 primarily related to a single property damaged by a tornado in 2020 and additional proceeds received on prior year fire and tornado claims . we received proceeds of $ 9.4 million during 2019 attributable to a single property that was severely damaged by a tornado in that year . we invested $ 51.4 million in our real estate partnerships during 2020 , including : o $ 19.6 million to fund our share of development and redevelopment activities , o $ 16.0 million to fund our share of acquiring an additional equity interest in one partnership , and o $ 15.8 million to fund our share of debt refinancing activities . during the same period in 2019 , we invested $ 66.9 million in our real estate partnerships , including : o $ 44.3 million to fund our share of development and redevelopment activities , o $ 9.7 million to fund our share of acquiring an additional equity interest in one partnership , o $ 8.2 million to fund our share of acquiring land under one shopping center that was previously under a ground lease , and o $ 4.7 million to fund our share of repayments for maturing debt . return of capital from our investments
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2,543 | noninterest income to average assets is a ratio that reflects our effectiveness in generating these other forms of revenue . the company incurs noninterest expenses as result of the operations of the business . primary expenses are those of employees , occupancy and equipment , professional services , and data processing . the company seeks to minimize the amount of non-interest expense relative to the amount of total assets ; non-interest expense to assets is a key ratio that measures the efficiency of the costs incurred to operate the business . 28 executive summary the following is a summary of the company 's financial highlights and significant events during 2016 : the company merged cornerstone community bank into smartbank in the first quarter of 2016. earnings available to common shareholders were approximately $ 4.8 million , or $ 0.78 per diluted common share , in 2016 , compared to $ 1.4 million , or $ 0.32 per diluted share , in 2015 . return on average assets was 0.57 percent for 2016 , compared to 0.22 percent for 2015 . return on average equity was 5.59 percent in 2016 , compared to 2.15 percent in 2015 , and 3.41 percent in 2014. non-performing assets to total assets in 2016 were 0.42 percent , an improvement from 0.79 percent in 2015 . net interest margin , fully taxable equivalent , remained above 4 percent at 4.06 percent for 2016 . efficiency ratio , fully taxable equivalent , of 75.7 percent in 2016 was down substantially from 85.0 percent in 2015 . analysis of results of operations 2016 compared to 2015 net income was $ 5.8 million in 2016 , which was up substantially from $ 1.5 million in 2015 . net income available to common shareholders was $ 4.8 million , or $ 0.78 per diluted common share , in 2016 , an increase from $ 1.4 million , or $ 0.32 per diluted common share , in 2015 . net interest income to average assets of 3.77 percent in 2016 was up from 3.66 percent in 2015 , with the increase as a result of a higher percentage of average earning assets to average total assets . noninterest income to average assets of 0.41 percent was up from 0.33 percent in 2015 as a result of increases in customer service fees , higher gains on the sale of securities , gains on the sale of loans and other assets compared to losses in 2015 , and higher other noninterest income . noninterest expense to average assets decreased from 3.39 percent in 2015 to 3.20 percent in 2016 due to realized efficiencies of scale and the absences of merger and conversion related costs . the resulting pretax income to average assets was 0.95 percent in 2016 compared to 0.46 percent in 2015 . finally , in 2016 the effective tax rate was 36.70 percent , which was down substantially from 2015 when taxes were elevated due to merger and acquisition expenses which were nondeductible . 2015 compared to 2014 net income was $ 1.5 million in 2015 , which was down from $ 1.8 million in 2014. net income available to common shareholders was $ 1.4 million , or $ 0.32 per diluted common share , in 2015 , a decrease from $ 1.7 million , or $ 0.52 per diluted common share , in 2014. net interest income to average assets of 3.66 percent in 2015 was down from 3.71 percent in 2014 , with the decrease as a result of lower rates on earning assets . noninterest income to average assets of 0.33 percent was up substantially from 0.22 percent in 2014 as a result of gains on the sale of foreclosed assets in 2015 compared to losses in 2014. noninterest expense to average assets increased from 3.26 percent in 2014 to 3.39 percent in 2015 due to merger and conversion related costs . the resulting pretax income to average assets was 0.46 percent in 2015 compared to 0.57 percent in 2014. finally , in 2015 taxes were elevated by $ 0.3 million due to merger and acquisition expenses which were nondeductible . net interest income and yield analysis 2016 compared to 2015 net interest income , taxable equivalent , improved to $ 38.3 million in 2016 from $ 25.0 million in 2015 . the increase in net interest income , taxable equivalent , was the result of a significant increase in earning assets primarily from the merger but also from organic business activity . average earning assets increased from $ 615.3 million in 2015 to $ 944.6 million in 2016 . over this period , average loan balances increased by 282,537 thousand and average securities and interest bearing balances at other financial institutions increased by $ 54.1 million . in addition , total average interest-bearing deposits increased by $ 219.0 million . net interest income to average assets of 3.77 percent in 2016 was up from 3.66 percent in 2015 . net interest margin , taxable equivalent , was 4.06 percent in 2016 , compared to 4.07 percent in 2015 . net interest margin , taxable equivalent , was negatively affected by an increase in the cost of interest bearing liabilities from 0.52 percent in 2015 to 0.56 percent in 2016 . in 2017 we expect net interest income to average assets and net interest margin , taxable equivalent , to experience pressure as most new assets will be lower yielding and there is the potential for pressure to increase deposit rates as short term rates increase . 29 2015 compared to 2014 net interest income improved to $ 25.0 million in 2015 from $ 18.7 million in 2014 . the increase in net interest income was the result of a significant increase in earning assets primarily from the merger but also from organic business activity . average earning assets increased from $ 455.5 million in 2014 to $ 615.3 million in 2015 . story_separator_special_tag potential problem loans , which are not included in nonperforming loans , represent those loans with a well-defined weakness and where information about possible credit problems of borrowers has caused management to have doubts about the borrower 's ability to comply with present repayment terms . this definition is believed to be substantially consistent with the standards established by the bank 's primary regulators , for loans classified as substandard or worse , but not considered nonperforming loans . allocation of the allowance for loan losses we maintain the allowance at a level that we deem appropriate to adequately cover the probable losses inherent in the loan portfolio . as of december 31 , 2016 and december 31 , 2015 , our allowance for loan losses was $ 5.1 million and $ 4.4 million , respectively , which we deemed to be adequate at each of the respective dates . the increase in the allowance for loan losses in 2016 as compared to 2015 is primarily the result of increases in organic loan growth offset slightly by improving overall credit metrics within our portfolio , including the reduction in net charge-offs . our allowance for loan loss as a percentage of total loans has increased from 0.60 percent at december 31 , 2015 to 0.63 percent at december 31 , 2016 , as a result of the increase in organic loan balances as a percentage of the total portfolio . as a percentage of organic loans the allowance for loan losses decreased from 0.95 percent at december 31 , 2015 to 0.83 percent at december 31 , 2016 . in 2017 , we expect the allowance to organic loans to remain in the range of 0.80 to 0.90 percent . our purchased loans were recorded at fair value upon acquisition . the fair value adjustments on the performing purchased loans will be accreted into income over the life of the loans . at december 31 , 2016 , the remaining accretable yield was $ 9.0 million . also at the end of 2016 , the balance on pci loans was $ 35.6 million and the carrying value was $ 27.2 million , for a net difference of $ 8.4 million in discounts . these loans are subject to the same allowance methodology as our legacy portfolio . the calculated allowance is compared to the remaining fair value discount to determine if additional provisioning should be recognized . at december 31 , 2016 , there were no allowances on purchased loans . the judgments and estimates associated with our allowance determination are described in note 1 in the โ notes to consolidated financial statements . โ the following table sets forth , based on our best estimate , the allocation of the allowance to types of loans as well as the unallocated portion as of december 31 for each of the past five years and the percentage of loans in each category to total loans ( in thousands ) : replace_table_token_13_th the increase in the overall allowance for loan losses is due to the increased balance of organic loans offset by improvements of our loan portfolio and the reduction of nonperforming loans and net charge-offs , which is largely influenced by the overall improvement in the economies in our market areas . the allocation by category is determined based on the assigned risk rating , if applicable , and environmental factors applicable to each category of loans . for impaired loans , those loans are reviewed for a specific allowance allocation . as we have worked to rehabilitate impaired loans and total impaired loans has decreased , the specific allocations for impaired loans have generally decreased . specific valuation allowances related to impaired loans were approximately $ 4 thousand at december 31 , 2016 , compared to $ 258 thousand at december 31 , 2015 . additional information on the allocation of the allowance between performing and impaired loans is provided in note 4 to the โ notes to consolidated financial statements . โ 37 analysis of the allowance for loan losses the following is a summary of changes in the allowance for loan losses for each of the years in the five-year period ended december 31 , 2016 and the ratio of the allowance for loan losses to total loans as of the end of each period ( in thousands ) : replace_table_token_14_th we assess the adequacy of the allowance at the end of each calendar quarter . this assessment includes procedures to estimate the allowance and test the adequacy and appropriateness of the resulting balance . the level of the allowance is based upon our evaluation of the loan portfolios , past loan loss experience , known and inherent risks in the portfolio , the views of the bank 's regulators , adverse situations that may affect the borrower 's ability to repay ( including the timing of future payments ) , the estimated value of any underlying collateral , composition of the loan portfolio , economic conditions , industry and peer bank loan quality indications and other pertinent factors . this evaluation is inherently subjective as it requires material estimates including the amounts and timing of future cash flows expected to be received on impaired loans that may be susceptible to significant change . investment portfolio our investment portfolio , consisting primarily of federal agency bonds , mortgage-backed securities , and state and municipal securities amounted to $ 129.4 million and $ 166.4 million at december 31 , 2016 and 2015 , respectively . this decrease was a result of selling portions of the investment portfolio to fund loan demand . in 2014 , the investment portfolio amounted to $ 98.9 million and it increased in 2015 to $ 166.4 million a primarily as a result of the merger . our investment to asset ratio has decreased from18.5 percent at december 31 , 2014 , to 16.3 percent at december 31 , 2015 , and then to 12.2
| capital resources the company uses leverage analysis to examine the potential of the institution to increase assets and liabilities using the current capital base . the key measurements included in this analysis are the banks ' common equity tier 1 capital , tier 1 capital , leverage and total capital ratios . at december 31 , 2016 and 2015 , our capital ratios , including our banks ' capital ratios , exceeded regulatory minimum capital requirements . from time to time we may be required to support the capital needs of our bank subsidiary . we believe we have various capital raising techniques available to us to provide for the capital needs of our bank , if necessary . additional information on capital is provided in note 13 to the โ notes to consolidated financial statements. โ 40 off-balance sheet arrangements at december 31 , 2016 , we had $ 145.3 million of pre-approved but unused lines of credit and $ 3.2 million of standby letters of credit . these commitments generally have fixed expiration dates and many will expire without being drawn upon . the total commitment level does not necessarily represent future cash requirements . if needed to fund these outstanding commitments , the bank has the ability to liquidate federal funds sold or securities available-for-sale , or on a short-term basis to borrow and purchase federal funds from other financial institutions .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```capital resources the company uses leverage analysis to examine the potential of the institution to increase assets and liabilities using the current capital base . the key measurements included in this analysis are the banks ' common equity tier 1 capital , tier 1 capital , leverage and total capital ratios . at december 31 , 2016 and 2015 , our capital ratios , including our banks ' capital ratios , exceeded regulatory minimum capital requirements . from time to time we may be required to support the capital needs of our bank subsidiary . we believe we have various capital raising techniques available to us to provide for the capital needs of our bank , if necessary . additional information on capital is provided in note 13 to the โ notes to consolidated financial statements. โ 40 off-balance sheet arrangements at december 31 , 2016 , we had $ 145.3 million of pre-approved but unused lines of credit and $ 3.2 million of standby letters of credit . these commitments generally have fixed expiration dates and many will expire without being drawn upon . the total commitment level does not necessarily represent future cash requirements . if needed to fund these outstanding commitments , the bank has the ability to liquidate federal funds sold or securities available-for-sale , or on a short-term basis to borrow and purchase federal funds from other financial institutions .
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Suspicious Activity Report : noninterest income to average assets is a ratio that reflects our effectiveness in generating these other forms of revenue . the company incurs noninterest expenses as result of the operations of the business . primary expenses are those of employees , occupancy and equipment , professional services , and data processing . the company seeks to minimize the amount of non-interest expense relative to the amount of total assets ; non-interest expense to assets is a key ratio that measures the efficiency of the costs incurred to operate the business . 28 executive summary the following is a summary of the company 's financial highlights and significant events during 2016 : the company merged cornerstone community bank into smartbank in the first quarter of 2016. earnings available to common shareholders were approximately $ 4.8 million , or $ 0.78 per diluted common share , in 2016 , compared to $ 1.4 million , or $ 0.32 per diluted share , in 2015 . return on average assets was 0.57 percent for 2016 , compared to 0.22 percent for 2015 . return on average equity was 5.59 percent in 2016 , compared to 2.15 percent in 2015 , and 3.41 percent in 2014. non-performing assets to total assets in 2016 were 0.42 percent , an improvement from 0.79 percent in 2015 . net interest margin , fully taxable equivalent , remained above 4 percent at 4.06 percent for 2016 . efficiency ratio , fully taxable equivalent , of 75.7 percent in 2016 was down substantially from 85.0 percent in 2015 . analysis of results of operations 2016 compared to 2015 net income was $ 5.8 million in 2016 , which was up substantially from $ 1.5 million in 2015 . net income available to common shareholders was $ 4.8 million , or $ 0.78 per diluted common share , in 2016 , an increase from $ 1.4 million , or $ 0.32 per diluted common share , in 2015 . net interest income to average assets of 3.77 percent in 2016 was up from 3.66 percent in 2015 , with the increase as a result of a higher percentage of average earning assets to average total assets . noninterest income to average assets of 0.41 percent was up from 0.33 percent in 2015 as a result of increases in customer service fees , higher gains on the sale of securities , gains on the sale of loans and other assets compared to losses in 2015 , and higher other noninterest income . noninterest expense to average assets decreased from 3.39 percent in 2015 to 3.20 percent in 2016 due to realized efficiencies of scale and the absences of merger and conversion related costs . the resulting pretax income to average assets was 0.95 percent in 2016 compared to 0.46 percent in 2015 . finally , in 2016 the effective tax rate was 36.70 percent , which was down substantially from 2015 when taxes were elevated due to merger and acquisition expenses which were nondeductible . 2015 compared to 2014 net income was $ 1.5 million in 2015 , which was down from $ 1.8 million in 2014. net income available to common shareholders was $ 1.4 million , or $ 0.32 per diluted common share , in 2015 , a decrease from $ 1.7 million , or $ 0.52 per diluted common share , in 2014. net interest income to average assets of 3.66 percent in 2015 was down from 3.71 percent in 2014 , with the decrease as a result of lower rates on earning assets . noninterest income to average assets of 0.33 percent was up substantially from 0.22 percent in 2014 as a result of gains on the sale of foreclosed assets in 2015 compared to losses in 2014. noninterest expense to average assets increased from 3.26 percent in 2014 to 3.39 percent in 2015 due to merger and conversion related costs . the resulting pretax income to average assets was 0.46 percent in 2015 compared to 0.57 percent in 2014. finally , in 2015 taxes were elevated by $ 0.3 million due to merger and acquisition expenses which were nondeductible . net interest income and yield analysis 2016 compared to 2015 net interest income , taxable equivalent , improved to $ 38.3 million in 2016 from $ 25.0 million in 2015 . the increase in net interest income , taxable equivalent , was the result of a significant increase in earning assets primarily from the merger but also from organic business activity . average earning assets increased from $ 615.3 million in 2015 to $ 944.6 million in 2016 . over this period , average loan balances increased by 282,537 thousand and average securities and interest bearing balances at other financial institutions increased by $ 54.1 million . in addition , total average interest-bearing deposits increased by $ 219.0 million . net interest income to average assets of 3.77 percent in 2016 was up from 3.66 percent in 2015 . net interest margin , taxable equivalent , was 4.06 percent in 2016 , compared to 4.07 percent in 2015 . net interest margin , taxable equivalent , was negatively affected by an increase in the cost of interest bearing liabilities from 0.52 percent in 2015 to 0.56 percent in 2016 . in 2017 we expect net interest income to average assets and net interest margin , taxable equivalent , to experience pressure as most new assets will be lower yielding and there is the potential for pressure to increase deposit rates as short term rates increase . 29 2015 compared to 2014 net interest income improved to $ 25.0 million in 2015 from $ 18.7 million in 2014 . the increase in net interest income was the result of a significant increase in earning assets primarily from the merger but also from organic business activity . average earning assets increased from $ 455.5 million in 2014 to $ 615.3 million in 2015 . story_separator_special_tag potential problem loans , which are not included in nonperforming loans , represent those loans with a well-defined weakness and where information about possible credit problems of borrowers has caused management to have doubts about the borrower 's ability to comply with present repayment terms . this definition is believed to be substantially consistent with the standards established by the bank 's primary regulators , for loans classified as substandard or worse , but not considered nonperforming loans . allocation of the allowance for loan losses we maintain the allowance at a level that we deem appropriate to adequately cover the probable losses inherent in the loan portfolio . as of december 31 , 2016 and december 31 , 2015 , our allowance for loan losses was $ 5.1 million and $ 4.4 million , respectively , which we deemed to be adequate at each of the respective dates . the increase in the allowance for loan losses in 2016 as compared to 2015 is primarily the result of increases in organic loan growth offset slightly by improving overall credit metrics within our portfolio , including the reduction in net charge-offs . our allowance for loan loss as a percentage of total loans has increased from 0.60 percent at december 31 , 2015 to 0.63 percent at december 31 , 2016 , as a result of the increase in organic loan balances as a percentage of the total portfolio . as a percentage of organic loans the allowance for loan losses decreased from 0.95 percent at december 31 , 2015 to 0.83 percent at december 31 , 2016 . in 2017 , we expect the allowance to organic loans to remain in the range of 0.80 to 0.90 percent . our purchased loans were recorded at fair value upon acquisition . the fair value adjustments on the performing purchased loans will be accreted into income over the life of the loans . at december 31 , 2016 , the remaining accretable yield was $ 9.0 million . also at the end of 2016 , the balance on pci loans was $ 35.6 million and the carrying value was $ 27.2 million , for a net difference of $ 8.4 million in discounts . these loans are subject to the same allowance methodology as our legacy portfolio . the calculated allowance is compared to the remaining fair value discount to determine if additional provisioning should be recognized . at december 31 , 2016 , there were no allowances on purchased loans . the judgments and estimates associated with our allowance determination are described in note 1 in the โ notes to consolidated financial statements . โ the following table sets forth , based on our best estimate , the allocation of the allowance to types of loans as well as the unallocated portion as of december 31 for each of the past five years and the percentage of loans in each category to total loans ( in thousands ) : replace_table_token_13_th the increase in the overall allowance for loan losses is due to the increased balance of organic loans offset by improvements of our loan portfolio and the reduction of nonperforming loans and net charge-offs , which is largely influenced by the overall improvement in the economies in our market areas . the allocation by category is determined based on the assigned risk rating , if applicable , and environmental factors applicable to each category of loans . for impaired loans , those loans are reviewed for a specific allowance allocation . as we have worked to rehabilitate impaired loans and total impaired loans has decreased , the specific allocations for impaired loans have generally decreased . specific valuation allowances related to impaired loans were approximately $ 4 thousand at december 31 , 2016 , compared to $ 258 thousand at december 31 , 2015 . additional information on the allocation of the allowance between performing and impaired loans is provided in note 4 to the โ notes to consolidated financial statements . โ 37 analysis of the allowance for loan losses the following is a summary of changes in the allowance for loan losses for each of the years in the five-year period ended december 31 , 2016 and the ratio of the allowance for loan losses to total loans as of the end of each period ( in thousands ) : replace_table_token_14_th we assess the adequacy of the allowance at the end of each calendar quarter . this assessment includes procedures to estimate the allowance and test the adequacy and appropriateness of the resulting balance . the level of the allowance is based upon our evaluation of the loan portfolios , past loan loss experience , known and inherent risks in the portfolio , the views of the bank 's regulators , adverse situations that may affect the borrower 's ability to repay ( including the timing of future payments ) , the estimated value of any underlying collateral , composition of the loan portfolio , economic conditions , industry and peer bank loan quality indications and other pertinent factors . this evaluation is inherently subjective as it requires material estimates including the amounts and timing of future cash flows expected to be received on impaired loans that may be susceptible to significant change . investment portfolio our investment portfolio , consisting primarily of federal agency bonds , mortgage-backed securities , and state and municipal securities amounted to $ 129.4 million and $ 166.4 million at december 31 , 2016 and 2015 , respectively . this decrease was a result of selling portions of the investment portfolio to fund loan demand . in 2014 , the investment portfolio amounted to $ 98.9 million and it increased in 2015 to $ 166.4 million a primarily as a result of the merger . our investment to asset ratio has decreased from18.5 percent at december 31 , 2014 , to 16.3 percent at december 31 , 2015 , and then to 12.2
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2,544 | through this network approach , we seek to enable high-capacity , configurable infrastructures that can adapt to the changing needs of end-users and the applications that they require , while providing flexible interfaces for the integration of computing , storage and network resources . by increasing network flexibility for service delivery , reducing required network elements and enabling increased scale at reduced cost , our solutions simplify networks . at the same time , our approach facilitates the creation of new service offerings , creating business and operational value for our customers . our op n architecture , which underpins our solutions offering and guides our research and development strategy , is described more fully in the โ strategy โ section of the description of our business under item 1 of part 1 of this annual report . our quarterly reports on form 10-q , annual reports on form 10-k and current reports on form 8-k filed with the sec are available through the sec 's website at www.sec.gov or free of charge on our website as soon as reasonably practicable after we file these documents . we routinely post the reports above , recent news and announcements , financial results and other information about ciena that is important to investors in the `` investors `` section of our website at www.ciena.com . investors are encouraged to review the โ investors โ section of our website because , as with the other disclosure channels that we use , from time to time we may post material information on that site that is not otherwise disseminated by us . 33 market opportunity and strategy we believe that the shift that is underway in network architectures to next-generation , converged infrastructures represents significant , long-term opportunities for our business . we believe that market trends underlying this shift , including the proliferation of devices running mobile web applications , the prevalence of video applications , the increase in machine-to-machine connections , and the shift of enterprise and consumer applications to cloud-based or virtualized network environments , are indicative of increasing use and dependence by consumers and enterprises upon a growing variety of broadband applications and services . we expect that these drivers will continue to require network operators to invest in converged next-generation network infrastructures that are more automated , open and software programmable . our corporate strategy to capitalize on these market dynamics , promote operational efficiency and drive profitable growth of our business includes the initiatives set forth in the `` strategy `` section of the description of our business in item 1 of part 1 of this annual report . global market conditions and competitive landscape during fiscal 2013 , we gained considerable momentum in our business and financial results and experienced a steadily improving market environment , particularly as reflected in the spending patterns and decisions of our largest north american service provider customers . we believe that this spending reflects customer preference of , and a shift in network spending toward , high-capacity , next-generation network architectures . improved conditions during fiscal 2013 followed a lengthy period of macroeconomic uncertainty and volatility , which caused cautious customer behavior in our industry and markets . these conditions , most notably in europe , had previously resulted in lower levels of capital expenditure on communications network infrastructure . because the market opportunity and improved conditions during fiscal 2013 described above are in their early stages , we remain uncertain as to their longer-term effect on the growth of our markets and business , as well as our results of operations . although we are beginning to see network operators adopt converged network architectures that align well with our op n architecture and solutions offering , particularly in north america , competition in our sector remains significant . we continue to encounter a highly competitive marketplace , particularly for our converged packet optical products , as we and our competitors have introduced new , high-capacity , high-speed network solutions and have aggressively sought to capture market share . in this intense and fragmented competitive environment , securing new opportunities , particularly in international markets , often requires that we agree to unfavorable commercial terms that can elongate the revenue recognition cycle , add startup costs to deployment of our solutions in customer networks , require financial commitments or performance bonds that place cash resources at risk , and other onerous contractual commitments that place a disproportionate allocation of risk upon the vendor . these terms can adversely affect our results of operations and contribute to fluctuations in our results . we expect the competitive landscape to remain challenging and dynamic as we and other multinational equipment vendors introduce new , competing , next-generation platforms , seek adoption of network architectural approaches and compete to obtain new business or retain incumbent positions with large customers around the world . as networking technologies , features or layers converge , our competitive landscape may broaden beyond traditional competitors to include additional competitors focused on ip routing , information technology and software . operational reorganization to address the growing need to transport , aggregate and manage multiple types of services , network operators are increasingly demanding and adopting solutions that enable the convergence of both network functions and network layers , particularly the integration of transport , otn switching and packet switching capabilities . our op n architecture and our continued development and addition of features to our solutions portfolio are intended to address the market and networking design dynamics faced by network operators . specifically , we continue to converge otn switching and packet switching functionality into our coherent optical transport solutions . at the same time , we are integrating more transport functionality and packet switching into our switching platforms . story_separator_special_tag our gross profit as a percentage of revenue , or โ gross margin , โ is susceptible to fluctuations due to a number of factors . in any given period , gross margin can vary significantly depending upon the mix and concentration of revenue by segment , product line within a particular segment , geography , and customers . gross margin can also be affected by our concentration of lower margin `` common `` equipment sales and higher margin channel cards , the mix of lower margin installation services within our service revenue , our introduction of new products , and changes in expense for excess and obsolete inventory and warranty obligations . we expect that gross margins will be subject to fluctuation based on our level of success in driving product cost reductions , rationalizing our supply chain and consolidating third party contract manufacturers and distribution sites as part of our effort to optimize our operations . gross margin can also be adversely affected by the level of pricing pressure and competition that we encounter in the market . in an effort to retain or secure customers , enter new markets or capture market share , we may agree to pricing or other unfavorable commercial terms that result in lower or negative gross margins on a particular order or group of orders . these market dynamics and factors may adversely affect our gross margin and results of operations in certain periods . service gross margin can be affected by the mix of customers and services , particularly the mix between deployment and maintenance services , geographic mix and the timing and extent of any investments in internal resources to support this business . the tables below ( in thousands , except percentage data ) set forth the changes in revenue , cost of goods sold and gross profit for the periods indicated : replace_table_token_5_th _ * denotes % of total revenue * * denotes % change from 2012 to 2013 39 replace_table_token_6_th _ * denotes % of product revenue * * denotes % change from 2012 to 2013 replace_table_token_7_th _ * denotes % of service revenue * * denotes % change from 2012 to 2013 gross profit as a percentage of revenue increased as a result of the factors described below . gross profit on products as a percentage of product revenue increased primarily due to improved mix of higher-margin packet platforms with software content , including within our packet networking and converged packet optical segments , higher sales of integrated network service management software , lower warranty costs , and greater leverage from efforts to streamline and optimize our supply chain activities . gross profit on services as a percentage of services revenue increased primarily due to improved margins on installation and deployment services due to improved operational efficiencies , and increased consulting service revenue from our network transformation solutions offering . operating expense we expect operating expense to increase in fiscal 2014 from the level reported for fiscal 2013 to support the growth of our business and fund our research and development initiatives . operating expense consists of the component elements described below . research and development expense primarily consists of salaries and related employee expense ( including share-based compensation expense ) , prototype costs relating to design , development , and testing of our products , depreciation expense and third party consulting costs . selling and marketing expense primarily consists of salaries , commissions and related employee expense ( including share-based compensation expense ) , and sales and marketing support expense , including travel , demonstration units , trade show expense and third party consulting costs . general and administrative expense primarily consists of salaries and related employee expense ( including share-based compensation expense ) , and costs for third party consulting and other services . amortization of intangible assets primarily reflects purchased technology and customer relationships from our acquisitions . restructuring costs primarily reflect actions ciena has taken to better align its workforce , facilities and operating costs with perceived market opportunities , business strategies and changes in market and business conditions . 40 the table below ( in thousands , except percentage data ) sets forth the changes in operating expense for the periods indicated : replace_table_token_8_th _ * denotes % of total revenue * * denotes % change from 2012 to 2013 research and development expense benefited from $ 4.0 million as a result of foreign exchange rates , primarily due to the strengthening of the u.s. dollar in relation to the canadian dollar and the indian rupee . the $ 19.2 million increase primarily reflects increases of $ 15.9 million in employee compensation and related costs , $ 7.5 million in prototype expense , $ 5.2 million in facilities and information systems expense and $ 2.1 million in technology-related purchases . the increase in employee compensation is primarily related to incentive-based compensation . these increases were partially offset by a $ 12.5 million decrease in professional services . selling and marketing expense increased by $ 37.8 million , primarily reflecting increases of $ 26.5 million in employee compensation and related costs , $ 6.8 million in facilities and information systems expense , $ 4.5 million of travel and related costs , $ 2.0 million in trade show and related expense and $ 1.1 million in professional services . a significant portion of our increased employee compensation and related costs reflect commissions-based compensation associated with strong order flows achieved during fiscal 2013. these increases were partially offset by decreases of $ 1.9 million of freight and logistic costs and $ 1.3 million for customer demonstration equipment . general and administrative expense increased by $ 8.4 million primarily reflecting an increase of $ 10.8 million in employee compensation and related costs , partially offset by a $ 2.7 million decrease in facilities and information systems expense . the increase in employee compensation is primarily related to incentive-based compensation . amortization of intangible assets decreased
| cash used by increases in accounts receivable during fiscal 2013 , net of $ 2.3 million in provision for doubtful accounts , was $ 145.4 million . our days sales outstanding ( dsos ) increased from 69 days for fiscal 2012 to 84 days for fiscal 2013 . this increase was primarily due to a high volume of sales towards the end of the fourth quarter of fiscal 2013. the following table sets forth ( in thousands ) changes to our accounts receivable , net of allowance for doubtful accounts , from the end of fiscal 2012 through the end of fiscal 2013 : october 31 , increase 2012 2013 ( decrease ) accounts receivable , net $ 345,496 $ 488,578 $ 143,082 inventory cash used by increases in inventory during fiscal 2013 was $ 8.9 million . our inventory turns increased from 3.3 turns during fiscal 2012 to 3.9 turns during fiscal 2013 . during fiscal 2013 , changes in inventory reflect a $ 19.9 million non-cash provision for excess and obsolescence . the following table sets forth changes ( in thousands ) to the components of our inventory from the end of fiscal 2012 through the end fiscal 2013 : replace_table_token_20_th 48 prepaid expenses and other cash used by prepaid expense and other during fiscal 2013 was $ 82.8 million and primarily related to increases in prepaid value added tax , maintenance spares and deferred deployment expense . accounts payable , accruals and other obligations cash generated by a lower utilization of cash resources for accounts payable , accruals and other obligations during fiscal 2013 was $ 115.3 million . changes in accrued liabilities reflect a $ 24.6 million non-cash provision related to warranties .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash used by increases in accounts receivable during fiscal 2013 , net of $ 2.3 million in provision for doubtful accounts , was $ 145.4 million . our days sales outstanding ( dsos ) increased from 69 days for fiscal 2012 to 84 days for fiscal 2013 . this increase was primarily due to a high volume of sales towards the end of the fourth quarter of fiscal 2013. the following table sets forth ( in thousands ) changes to our accounts receivable , net of allowance for doubtful accounts , from the end of fiscal 2012 through the end of fiscal 2013 : october 31 , increase 2012 2013 ( decrease ) accounts receivable , net $ 345,496 $ 488,578 $ 143,082 inventory cash used by increases in inventory during fiscal 2013 was $ 8.9 million . our inventory turns increased from 3.3 turns during fiscal 2012 to 3.9 turns during fiscal 2013 . during fiscal 2013 , changes in inventory reflect a $ 19.9 million non-cash provision for excess and obsolescence . the following table sets forth changes ( in thousands ) to the components of our inventory from the end of fiscal 2012 through the end fiscal 2013 : replace_table_token_20_th 48 prepaid expenses and other cash used by prepaid expense and other during fiscal 2013 was $ 82.8 million and primarily related to increases in prepaid value added tax , maintenance spares and deferred deployment expense . accounts payable , accruals and other obligations cash generated by a lower utilization of cash resources for accounts payable , accruals and other obligations during fiscal 2013 was $ 115.3 million . changes in accrued liabilities reflect a $ 24.6 million non-cash provision related to warranties .
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Suspicious Activity Report : through this network approach , we seek to enable high-capacity , configurable infrastructures that can adapt to the changing needs of end-users and the applications that they require , while providing flexible interfaces for the integration of computing , storage and network resources . by increasing network flexibility for service delivery , reducing required network elements and enabling increased scale at reduced cost , our solutions simplify networks . at the same time , our approach facilitates the creation of new service offerings , creating business and operational value for our customers . our op n architecture , which underpins our solutions offering and guides our research and development strategy , is described more fully in the โ strategy โ section of the description of our business under item 1 of part 1 of this annual report . our quarterly reports on form 10-q , annual reports on form 10-k and current reports on form 8-k filed with the sec are available through the sec 's website at www.sec.gov or free of charge on our website as soon as reasonably practicable after we file these documents . we routinely post the reports above , recent news and announcements , financial results and other information about ciena that is important to investors in the `` investors `` section of our website at www.ciena.com . investors are encouraged to review the โ investors โ section of our website because , as with the other disclosure channels that we use , from time to time we may post material information on that site that is not otherwise disseminated by us . 33 market opportunity and strategy we believe that the shift that is underway in network architectures to next-generation , converged infrastructures represents significant , long-term opportunities for our business . we believe that market trends underlying this shift , including the proliferation of devices running mobile web applications , the prevalence of video applications , the increase in machine-to-machine connections , and the shift of enterprise and consumer applications to cloud-based or virtualized network environments , are indicative of increasing use and dependence by consumers and enterprises upon a growing variety of broadband applications and services . we expect that these drivers will continue to require network operators to invest in converged next-generation network infrastructures that are more automated , open and software programmable . our corporate strategy to capitalize on these market dynamics , promote operational efficiency and drive profitable growth of our business includes the initiatives set forth in the `` strategy `` section of the description of our business in item 1 of part 1 of this annual report . global market conditions and competitive landscape during fiscal 2013 , we gained considerable momentum in our business and financial results and experienced a steadily improving market environment , particularly as reflected in the spending patterns and decisions of our largest north american service provider customers . we believe that this spending reflects customer preference of , and a shift in network spending toward , high-capacity , next-generation network architectures . improved conditions during fiscal 2013 followed a lengthy period of macroeconomic uncertainty and volatility , which caused cautious customer behavior in our industry and markets . these conditions , most notably in europe , had previously resulted in lower levels of capital expenditure on communications network infrastructure . because the market opportunity and improved conditions during fiscal 2013 described above are in their early stages , we remain uncertain as to their longer-term effect on the growth of our markets and business , as well as our results of operations . although we are beginning to see network operators adopt converged network architectures that align well with our op n architecture and solutions offering , particularly in north america , competition in our sector remains significant . we continue to encounter a highly competitive marketplace , particularly for our converged packet optical products , as we and our competitors have introduced new , high-capacity , high-speed network solutions and have aggressively sought to capture market share . in this intense and fragmented competitive environment , securing new opportunities , particularly in international markets , often requires that we agree to unfavorable commercial terms that can elongate the revenue recognition cycle , add startup costs to deployment of our solutions in customer networks , require financial commitments or performance bonds that place cash resources at risk , and other onerous contractual commitments that place a disproportionate allocation of risk upon the vendor . these terms can adversely affect our results of operations and contribute to fluctuations in our results . we expect the competitive landscape to remain challenging and dynamic as we and other multinational equipment vendors introduce new , competing , next-generation platforms , seek adoption of network architectural approaches and compete to obtain new business or retain incumbent positions with large customers around the world . as networking technologies , features or layers converge , our competitive landscape may broaden beyond traditional competitors to include additional competitors focused on ip routing , information technology and software . operational reorganization to address the growing need to transport , aggregate and manage multiple types of services , network operators are increasingly demanding and adopting solutions that enable the convergence of both network functions and network layers , particularly the integration of transport , otn switching and packet switching capabilities . our op n architecture and our continued development and addition of features to our solutions portfolio are intended to address the market and networking design dynamics faced by network operators . specifically , we continue to converge otn switching and packet switching functionality into our coherent optical transport solutions . at the same time , we are integrating more transport functionality and packet switching into our switching platforms . story_separator_special_tag our gross profit as a percentage of revenue , or โ gross margin , โ is susceptible to fluctuations due to a number of factors . in any given period , gross margin can vary significantly depending upon the mix and concentration of revenue by segment , product line within a particular segment , geography , and customers . gross margin can also be affected by our concentration of lower margin `` common `` equipment sales and higher margin channel cards , the mix of lower margin installation services within our service revenue , our introduction of new products , and changes in expense for excess and obsolete inventory and warranty obligations . we expect that gross margins will be subject to fluctuation based on our level of success in driving product cost reductions , rationalizing our supply chain and consolidating third party contract manufacturers and distribution sites as part of our effort to optimize our operations . gross margin can also be adversely affected by the level of pricing pressure and competition that we encounter in the market . in an effort to retain or secure customers , enter new markets or capture market share , we may agree to pricing or other unfavorable commercial terms that result in lower or negative gross margins on a particular order or group of orders . these market dynamics and factors may adversely affect our gross margin and results of operations in certain periods . service gross margin can be affected by the mix of customers and services , particularly the mix between deployment and maintenance services , geographic mix and the timing and extent of any investments in internal resources to support this business . the tables below ( in thousands , except percentage data ) set forth the changes in revenue , cost of goods sold and gross profit for the periods indicated : replace_table_token_5_th _ * denotes % of total revenue * * denotes % change from 2012 to 2013 39 replace_table_token_6_th _ * denotes % of product revenue * * denotes % change from 2012 to 2013 replace_table_token_7_th _ * denotes % of service revenue * * denotes % change from 2012 to 2013 gross profit as a percentage of revenue increased as a result of the factors described below . gross profit on products as a percentage of product revenue increased primarily due to improved mix of higher-margin packet platforms with software content , including within our packet networking and converged packet optical segments , higher sales of integrated network service management software , lower warranty costs , and greater leverage from efforts to streamline and optimize our supply chain activities . gross profit on services as a percentage of services revenue increased primarily due to improved margins on installation and deployment services due to improved operational efficiencies , and increased consulting service revenue from our network transformation solutions offering . operating expense we expect operating expense to increase in fiscal 2014 from the level reported for fiscal 2013 to support the growth of our business and fund our research and development initiatives . operating expense consists of the component elements described below . research and development expense primarily consists of salaries and related employee expense ( including share-based compensation expense ) , prototype costs relating to design , development , and testing of our products , depreciation expense and third party consulting costs . selling and marketing expense primarily consists of salaries , commissions and related employee expense ( including share-based compensation expense ) , and sales and marketing support expense , including travel , demonstration units , trade show expense and third party consulting costs . general and administrative expense primarily consists of salaries and related employee expense ( including share-based compensation expense ) , and costs for third party consulting and other services . amortization of intangible assets primarily reflects purchased technology and customer relationships from our acquisitions . restructuring costs primarily reflect actions ciena has taken to better align its workforce , facilities and operating costs with perceived market opportunities , business strategies and changes in market and business conditions . 40 the table below ( in thousands , except percentage data ) sets forth the changes in operating expense for the periods indicated : replace_table_token_8_th _ * denotes % of total revenue * * denotes % change from 2012 to 2013 research and development expense benefited from $ 4.0 million as a result of foreign exchange rates , primarily due to the strengthening of the u.s. dollar in relation to the canadian dollar and the indian rupee . the $ 19.2 million increase primarily reflects increases of $ 15.9 million in employee compensation and related costs , $ 7.5 million in prototype expense , $ 5.2 million in facilities and information systems expense and $ 2.1 million in technology-related purchases . the increase in employee compensation is primarily related to incentive-based compensation . these increases were partially offset by a $ 12.5 million decrease in professional services . selling and marketing expense increased by $ 37.8 million , primarily reflecting increases of $ 26.5 million in employee compensation and related costs , $ 6.8 million in facilities and information systems expense , $ 4.5 million of travel and related costs , $ 2.0 million in trade show and related expense and $ 1.1 million in professional services . a significant portion of our increased employee compensation and related costs reflect commissions-based compensation associated with strong order flows achieved during fiscal 2013. these increases were partially offset by decreases of $ 1.9 million of freight and logistic costs and $ 1.3 million for customer demonstration equipment . general and administrative expense increased by $ 8.4 million primarily reflecting an increase of $ 10.8 million in employee compensation and related costs , partially offset by a $ 2.7 million decrease in facilities and information systems expense . the increase in employee compensation is primarily related to incentive-based compensation . amortization of intangible assets decreased
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2,545 | while we expect the pandemic to continue to negatively impact our results , the current level of uncertainty over the economic and operational impacts of covid-19 could lead to variability in results . โ fiscal 2020 results compared with fiscal 2019 results โ consolidated results โ replace_table_token_3_th โ note on non-gaap measures : throughout the following results of operations discussion , we disclose certain non-gaap financial measures , including adjusted ebitda , adjusted net income and adjusted eps . for an explanation and reconciliation of such measures , see the section titled โ non-gaap financial information ' below . โ sales : our sales decreased 1 % to $ 1.476 billion in fiscal 2020 ( 2020 ) from $ 1.496 billion in fiscal 2019 ( 2019 ) . sales from cgd and cts decreased by 6 % and 1 % , respectively , while cms sales increased by 3 % fr om 2019. sales in 2020 were negatively impacted by covid-19 due to a decrease in sales resulting from lower transit ridership and delayed orders across all three of our business segments . sales generated by businesses we acquired during 2020 and 2019 totaled $ 122.4 million in 2020 , compared to $ 81.8 million in 2019. see the segment discussions below for further analysis of segment sales . the average exchange rates between the prevailing currencies in our foreign operations and the u.s. dollar had a net unfavorable impact on sales of $ 4.5 million in 2020 compared to 2019 . 36 โ gross margin : our gross margin percentage on products sales was 28 % in 2020 and 2019. margins in 2020 were negatively impacted in cms due to lower sales of high margin expeditionary satellite communications products and investment in secure communications development contracts , offset by higher margins in cts driven by contract mix and , the impact of cost savings initiatives . our gross margin percentage on service sales increased to 36 % in 2020 from 31 % in 2019. the increase was primarily driven by the impact of productivity initiatives in cts , as well as services sales mix . โ selling , general , and administrative : sg & a expenses increased to $ 274.7 million in 2020 from $ 270.1 million in 2019. as a percentage of sales , sg & a expenses were 19 % in 2020 compared to 18 % in 2019. the increase in sg & a expenses was driven by a $ 5.7 million increase in share-based compensation expense and a $ 9.0 million increase from additional sg & a expenses incurred by businesses we acquired during 2020 and 2019. these increases were partially offset by cost reduction initiatives . โ restructuring : re structuring expenses increased to $ 16.6 million in 2020 compared to $ 15.4 million in 2019. restructuring expenses in 2020 include consulting and other costs incurred in connection with our nextcubic transformation initiatives to restructure the way we work and operate as a business , as well as costs related to the realignment of our defense businesses into cmps . restructuring expenses in fiscal 2020 and 2019 also include consulting and employee severance expenses related to performance enhancement and cost savings measures including the redesign of our supply chain strategy . โ research & development : internally funded company-sponsored research and development ( โ r & d โ ) expenses included in our consolidated statements of operations are as follows ( in thousands ) : โ replace_table_token_4_th โ company-sponsored r & d expense decreased $ 5.6 million in 2020 due to the timing of certain planned r & d projects at cts and cgd . in 2020 , cts continued to make r & d investments in new transportation product development , including fare collection technologies , real-time passenger information and development of intelligent transport systems and analytic technologies . cms ' r & d investments included secure communications and isr-as-a-service technologies , and cgd 's r & d expenditures focused on next generation live , virtual and constructive training systems . โ in addition to company-sponsored r & d , a significant portion of our new product development occurs in conjunction with the performance of work on our contracts . these costs are included in cost of sales in our consolidated statements of operations as they are directly related to contract performance . the cost of contract r & d activities included in our cost of sales are as follows ( in thousands ) : replace_table_token_5_th โ the increase in contract r & d activities is primarily related to investments in new secure communication technologies at cms . 37 โ amortization of purchased intangibles : amortization of purchased intangibles totaled $ 59.3 million in 2020 compared to $ 42.1 million in 2019. the increase in amortization expense was driven by the completion of our acquisitions of delerrok inc. ( โ delerrok โ ) and pixia corp. ( โ pixia โ ) in january 2020 , partially offset by lower amortization of purchased intangible assets that are amortized based upon accelerated methods . โ operating income : operating income decreased to $ 61.6 million in 2020 compared to $ 86.2 million in 2019. cts operating income increased by 57 % to $ 121.0 million in 2020 compared to $ 77.2 million in 2019. this increase was partially offset by cms operating results as cms generated an operating loss of $ 26.7 million in 2020 compared to operating income of $ 7.8 million in 2019. cgd 's operating income was flat at $ 22.9 million in 2020 compared to $ 23.0 million in 2019. our operating results were impacted by the accounting for businesses we acquired in 2020 and 2019 . story_separator_special_tag โ 42 amortization of purchased intangibles : amortization of purchased intangibles totaled $ 42.1 million in 2019 compared to $ 27.1 million in 2018. the increase is due to the amortization of purchased intangibles for companies acquired by cubic in fiscal year 2019 . โ gain on the sale of fixed assets : in line with our one cubic strategic objective , in fiscal 2019 , we entered into agreements related to the construction and leasing of two buildings on our existing corporate campus in san diego , california that will allow us to co-locate our san diego-based employees on a single modern campus to foster innovation and collaboration across our business . under these agreements , a financial institution will own the buildings , and we will lease the facilities for a term of five years commencing upon their completion . โ in the third quarter of 2019 , we sold land and buildings comprising our separate cts campus in san diego and entered into a lease with the buyer until the new buildings on our corporate campus are ready for occupancy in fiscal 2021. in the third quarter of 2019 , we also sold land and buildings in orlando , florida and entered a lease for new space with a smaller footprint in orlando to accommodate our employees and operations there . in connection with the sale of these real estate campuses we received total net proceeds of $ 44.9 million and recognized net gains on the sales totaling $ 32.5 million within operating income . โ operating income : operating income increased to $ 86.2 million in 2019 compared to $ 24.4 million in 2018 driven by improvements in profitability from all three of our businesses . cts operating income increased by 28 % to $ 77.2 million in 2019 compared to $ 60.4 million in 2018 , primarily due to increased volumes on contracts in new york , boston , san francisco bay area and brisbane . cms generated operating income of $ 7.8 million in fiscal 2019 compared to an operating loss of $ 0.1 million in 2018 which was driven by increases in sales across all major product lines . cgd 's operating income increased 39 % to $ 23.0 million in 2019 compared to $ 16.6 million in 2018 primarily due to the results of cost reduction efforts and reduced r & d expenditures . businesses acquired in 2019 and 2018 generated operating losses of $ 22.9 million in 2019 compared to $ 3.5 million in 2018 , including acquisition-related costs totaling $ 9.7 million in 2019 and $ 1.0 million in 2018 , and including amortization of purchased intangible assets of $ 22.0 million in 2019 and $ 0.5 million in 2018. excluding the gain on sale of fixed assets noted above , the unallocated corporate and other costs were $ 54.3 million in 2019 compared to $ 52.5 million in 2018 , and included expenses related to strategic and it system resource planning as part of our one cubic initiative totaling $ 8.2 million in 2019 and $ 24.1 million in 2018. unallocated corporate costs also include restructuring charges of $ 8.9 million and $ 3.1 million in fiscal years 2019 and 2018 , respectively . the average exchange rates between the prevailing currencies in our foreign operations and the u.s. dollar resulted in a decrease in operating income of $ 3.7 million in 2019 compared to 2018. see the segment discussions below for further analysis of segment operating income . โ interest and dividend income and interest expense : interest and dividend income was $ 6.5 million in 2019 compared to $ 1.6 million in 2018. the increase in interest income in 2019 was primarily due to the interest income recorded on long-term contracts financing receivables in our consolidated balance sheet . under asc 606 , in 2019 we recognized interest income on such receivables . interest expense was $ 20.5 million in 2019 compared to $ 10.4 million in 2018. the change in interest expense generally reflected the increase in our average outstanding debt balances primarily due to the acquisition of three businesses . โ other income ( expense ) : other income ( expense ) netted to expense of $ 20.0 million in 2019 and $ 0.7 million in 2018. the nonoperating expense in 2019 included unrealized losses of $ 21.6 million caused by the change in the fair value of an interest rate swap held by a vie that is consolidated by cubic . the 90 percent noncontrolling interest in the net loss of the consolidated vie , which is comprised primarily of the vie 's loss on its interest rate swap , is added back to our net income to arrive at net income attributable to cubic . โ income tax provision : our income tax provision totaled $ 11.0 million ( effective rate of 21 % ) for fiscal 2019 , compared to an income tax provision of $ 7.1 million ( effective rate of 48 % ) for fiscal 2018. the fiscal 2019 tax provision primarily resulted from tax on foreign earnings and state income tax , partially offset by tax benefits in connection with acquisitions involving significant u.s. deferred tax liabilities which allowed for a subsequent release of deferred tax valuation allowance . the fiscal 2018 tax provision , as a result of the tax cuts and jobs act of 2017 ( u.s. tax reform ) , includes a one-time non-cash tax benefit of $ 7.1 million , primarily related to the re-measurement of certain u.s. deferred tax 43 liabilities and the impact of the utilization of indefinite lived deferred tax liabilities as a source of future taxable income when assessing the realizability of indefinite lived deferred tax assets . โ until we re-establish a pattern of continuing profitability , in accordance with the applicable accounting guidance , u.s. income tax expense or benefit related to the recognition of deferred tax assets in
| liquidity and capital resources โ operating activities from continuing operations used cash of $ 8.3 million and $ 31.9 million in 2020 and 2019 , respectively , and provided cash of $ 8.6 million in 2018. our operating cash flows have been significantly impacted by our consolidated vie , which used cash of $ 112.5 million , $ 50.2 million , and $ 22.4 million in 2020 , 2019 , and 2018 , respectively . excluding the impact of our consolidated vie , cash flows from operating activities improved by $ 85.9 million in 2020 as compared to 2019 , driven by higher billings and collections on our long-term contracts . our contract terms with our customers can have a significant impact on our operating cash flows . contract terms , including payment terms on our long-term development contracts , are customized for each contract based upon negotiations with the respective customer . changes in the amount of contract assets are reflective of the difference between when costs are incurred and when we are able to bill for milestone payments . in 2020 , contract assets decreased by $ 80.8 million from 2019 while in 2019 , contract assets increased by $ 77.4 million from 2018 . โ changes in our operating cash flows have also been impacted by our expenditures on information technology process and supply chain redesign , primarily in 2019 and 2018. expenditures included as cash used in operations totaled $ 3.9 million , $ 8.3 million , and $ 24.1 million in 2020 , 2019 , and 2018 , respectively . โ investing activities from continuing operations used cash of $ 279.7 million , $ 458.8 million , and $ 47.1 million in 2020 , 2019 , and 2018 , respectively . in 2020 , cash used in investing activities included $ 197.8 million of cash paid related to the acquisition of pixia and $ 37.0 million of cash paid related to the acquisition of delerrok .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources โ operating activities from continuing operations used cash of $ 8.3 million and $ 31.9 million in 2020 and 2019 , respectively , and provided cash of $ 8.6 million in 2018. our operating cash flows have been significantly impacted by our consolidated vie , which used cash of $ 112.5 million , $ 50.2 million , and $ 22.4 million in 2020 , 2019 , and 2018 , respectively . excluding the impact of our consolidated vie , cash flows from operating activities improved by $ 85.9 million in 2020 as compared to 2019 , driven by higher billings and collections on our long-term contracts . our contract terms with our customers can have a significant impact on our operating cash flows . contract terms , including payment terms on our long-term development contracts , are customized for each contract based upon negotiations with the respective customer . changes in the amount of contract assets are reflective of the difference between when costs are incurred and when we are able to bill for milestone payments . in 2020 , contract assets decreased by $ 80.8 million from 2019 while in 2019 , contract assets increased by $ 77.4 million from 2018 . โ changes in our operating cash flows have also been impacted by our expenditures on information technology process and supply chain redesign , primarily in 2019 and 2018. expenditures included as cash used in operations totaled $ 3.9 million , $ 8.3 million , and $ 24.1 million in 2020 , 2019 , and 2018 , respectively . โ investing activities from continuing operations used cash of $ 279.7 million , $ 458.8 million , and $ 47.1 million in 2020 , 2019 , and 2018 , respectively . in 2020 , cash used in investing activities included $ 197.8 million of cash paid related to the acquisition of pixia and $ 37.0 million of cash paid related to the acquisition of delerrok .
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Suspicious Activity Report : while we expect the pandemic to continue to negatively impact our results , the current level of uncertainty over the economic and operational impacts of covid-19 could lead to variability in results . โ fiscal 2020 results compared with fiscal 2019 results โ consolidated results โ replace_table_token_3_th โ note on non-gaap measures : throughout the following results of operations discussion , we disclose certain non-gaap financial measures , including adjusted ebitda , adjusted net income and adjusted eps . for an explanation and reconciliation of such measures , see the section titled โ non-gaap financial information ' below . โ sales : our sales decreased 1 % to $ 1.476 billion in fiscal 2020 ( 2020 ) from $ 1.496 billion in fiscal 2019 ( 2019 ) . sales from cgd and cts decreased by 6 % and 1 % , respectively , while cms sales increased by 3 % fr om 2019. sales in 2020 were negatively impacted by covid-19 due to a decrease in sales resulting from lower transit ridership and delayed orders across all three of our business segments . sales generated by businesses we acquired during 2020 and 2019 totaled $ 122.4 million in 2020 , compared to $ 81.8 million in 2019. see the segment discussions below for further analysis of segment sales . the average exchange rates between the prevailing currencies in our foreign operations and the u.s. dollar had a net unfavorable impact on sales of $ 4.5 million in 2020 compared to 2019 . 36 โ gross margin : our gross margin percentage on products sales was 28 % in 2020 and 2019. margins in 2020 were negatively impacted in cms due to lower sales of high margin expeditionary satellite communications products and investment in secure communications development contracts , offset by higher margins in cts driven by contract mix and , the impact of cost savings initiatives . our gross margin percentage on service sales increased to 36 % in 2020 from 31 % in 2019. the increase was primarily driven by the impact of productivity initiatives in cts , as well as services sales mix . โ selling , general , and administrative : sg & a expenses increased to $ 274.7 million in 2020 from $ 270.1 million in 2019. as a percentage of sales , sg & a expenses were 19 % in 2020 compared to 18 % in 2019. the increase in sg & a expenses was driven by a $ 5.7 million increase in share-based compensation expense and a $ 9.0 million increase from additional sg & a expenses incurred by businesses we acquired during 2020 and 2019. these increases were partially offset by cost reduction initiatives . โ restructuring : re structuring expenses increased to $ 16.6 million in 2020 compared to $ 15.4 million in 2019. restructuring expenses in 2020 include consulting and other costs incurred in connection with our nextcubic transformation initiatives to restructure the way we work and operate as a business , as well as costs related to the realignment of our defense businesses into cmps . restructuring expenses in fiscal 2020 and 2019 also include consulting and employee severance expenses related to performance enhancement and cost savings measures including the redesign of our supply chain strategy . โ research & development : internally funded company-sponsored research and development ( โ r & d โ ) expenses included in our consolidated statements of operations are as follows ( in thousands ) : โ replace_table_token_4_th โ company-sponsored r & d expense decreased $ 5.6 million in 2020 due to the timing of certain planned r & d projects at cts and cgd . in 2020 , cts continued to make r & d investments in new transportation product development , including fare collection technologies , real-time passenger information and development of intelligent transport systems and analytic technologies . cms ' r & d investments included secure communications and isr-as-a-service technologies , and cgd 's r & d expenditures focused on next generation live , virtual and constructive training systems . โ in addition to company-sponsored r & d , a significant portion of our new product development occurs in conjunction with the performance of work on our contracts . these costs are included in cost of sales in our consolidated statements of operations as they are directly related to contract performance . the cost of contract r & d activities included in our cost of sales are as follows ( in thousands ) : replace_table_token_5_th โ the increase in contract r & d activities is primarily related to investments in new secure communication technologies at cms . 37 โ amortization of purchased intangibles : amortization of purchased intangibles totaled $ 59.3 million in 2020 compared to $ 42.1 million in 2019. the increase in amortization expense was driven by the completion of our acquisitions of delerrok inc. ( โ delerrok โ ) and pixia corp. ( โ pixia โ ) in january 2020 , partially offset by lower amortization of purchased intangible assets that are amortized based upon accelerated methods . โ operating income : operating income decreased to $ 61.6 million in 2020 compared to $ 86.2 million in 2019. cts operating income increased by 57 % to $ 121.0 million in 2020 compared to $ 77.2 million in 2019. this increase was partially offset by cms operating results as cms generated an operating loss of $ 26.7 million in 2020 compared to operating income of $ 7.8 million in 2019. cgd 's operating income was flat at $ 22.9 million in 2020 compared to $ 23.0 million in 2019. our operating results were impacted by the accounting for businesses we acquired in 2020 and 2019 . story_separator_special_tag โ 42 amortization of purchased intangibles : amortization of purchased intangibles totaled $ 42.1 million in 2019 compared to $ 27.1 million in 2018. the increase is due to the amortization of purchased intangibles for companies acquired by cubic in fiscal year 2019 . โ gain on the sale of fixed assets : in line with our one cubic strategic objective , in fiscal 2019 , we entered into agreements related to the construction and leasing of two buildings on our existing corporate campus in san diego , california that will allow us to co-locate our san diego-based employees on a single modern campus to foster innovation and collaboration across our business . under these agreements , a financial institution will own the buildings , and we will lease the facilities for a term of five years commencing upon their completion . โ in the third quarter of 2019 , we sold land and buildings comprising our separate cts campus in san diego and entered into a lease with the buyer until the new buildings on our corporate campus are ready for occupancy in fiscal 2021. in the third quarter of 2019 , we also sold land and buildings in orlando , florida and entered a lease for new space with a smaller footprint in orlando to accommodate our employees and operations there . in connection with the sale of these real estate campuses we received total net proceeds of $ 44.9 million and recognized net gains on the sales totaling $ 32.5 million within operating income . โ operating income : operating income increased to $ 86.2 million in 2019 compared to $ 24.4 million in 2018 driven by improvements in profitability from all three of our businesses . cts operating income increased by 28 % to $ 77.2 million in 2019 compared to $ 60.4 million in 2018 , primarily due to increased volumes on contracts in new york , boston , san francisco bay area and brisbane . cms generated operating income of $ 7.8 million in fiscal 2019 compared to an operating loss of $ 0.1 million in 2018 which was driven by increases in sales across all major product lines . cgd 's operating income increased 39 % to $ 23.0 million in 2019 compared to $ 16.6 million in 2018 primarily due to the results of cost reduction efforts and reduced r & d expenditures . businesses acquired in 2019 and 2018 generated operating losses of $ 22.9 million in 2019 compared to $ 3.5 million in 2018 , including acquisition-related costs totaling $ 9.7 million in 2019 and $ 1.0 million in 2018 , and including amortization of purchased intangible assets of $ 22.0 million in 2019 and $ 0.5 million in 2018. excluding the gain on sale of fixed assets noted above , the unallocated corporate and other costs were $ 54.3 million in 2019 compared to $ 52.5 million in 2018 , and included expenses related to strategic and it system resource planning as part of our one cubic initiative totaling $ 8.2 million in 2019 and $ 24.1 million in 2018. unallocated corporate costs also include restructuring charges of $ 8.9 million and $ 3.1 million in fiscal years 2019 and 2018 , respectively . the average exchange rates between the prevailing currencies in our foreign operations and the u.s. dollar resulted in a decrease in operating income of $ 3.7 million in 2019 compared to 2018. see the segment discussions below for further analysis of segment operating income . โ interest and dividend income and interest expense : interest and dividend income was $ 6.5 million in 2019 compared to $ 1.6 million in 2018. the increase in interest income in 2019 was primarily due to the interest income recorded on long-term contracts financing receivables in our consolidated balance sheet . under asc 606 , in 2019 we recognized interest income on such receivables . interest expense was $ 20.5 million in 2019 compared to $ 10.4 million in 2018. the change in interest expense generally reflected the increase in our average outstanding debt balances primarily due to the acquisition of three businesses . โ other income ( expense ) : other income ( expense ) netted to expense of $ 20.0 million in 2019 and $ 0.7 million in 2018. the nonoperating expense in 2019 included unrealized losses of $ 21.6 million caused by the change in the fair value of an interest rate swap held by a vie that is consolidated by cubic . the 90 percent noncontrolling interest in the net loss of the consolidated vie , which is comprised primarily of the vie 's loss on its interest rate swap , is added back to our net income to arrive at net income attributable to cubic . โ income tax provision : our income tax provision totaled $ 11.0 million ( effective rate of 21 % ) for fiscal 2019 , compared to an income tax provision of $ 7.1 million ( effective rate of 48 % ) for fiscal 2018. the fiscal 2019 tax provision primarily resulted from tax on foreign earnings and state income tax , partially offset by tax benefits in connection with acquisitions involving significant u.s. deferred tax liabilities which allowed for a subsequent release of deferred tax valuation allowance . the fiscal 2018 tax provision , as a result of the tax cuts and jobs act of 2017 ( u.s. tax reform ) , includes a one-time non-cash tax benefit of $ 7.1 million , primarily related to the re-measurement of certain u.s. deferred tax 43 liabilities and the impact of the utilization of indefinite lived deferred tax liabilities as a source of future taxable income when assessing the realizability of indefinite lived deferred tax assets . โ until we re-establish a pattern of continuing profitability , in accordance with the applicable accounting guidance , u.s. income tax expense or benefit related to the recognition of deferred tax assets in
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2,546 | in addition , certain products such as fragrances , sunglasses and eyewear are produced under product licensing agreements . jimmy choo 's design team is led by sandra choi , who has been the creative director for the brand since its inception in 1996. jimmy choo products are unique , instinctively seductive and chic . the brand offers classic and timeless luxury products , as well as innovative products that are intended to set and lead fashion trends . the jimmy choo brand is represented through its global store network , its e-commerce sites , as well as through the most prestigious department and specialty stores worldwide . prior to the third quarter of fiscal 2018 , we had three reportable segments for our michael kors brand : retail , wholesale and licensing . with the acquisition of jimmy choo , the company began to operate in four reportable segments , which are as follows : mk retail โ includes sales of michael kors products from 379 retail stores in the americas ( including concessions ) and 450 international retail stores ( including concessions ) in europe and certain parts of asia , as well as from michael kors e-commerce sites in the u.s. , canada , certain parts of europe , china , japan and south korea as of march 31 , 2018 . mk wholesale โ includes wholesale sales of michael kors products through 1,403 department store doors and 875 specialty store doors in the americas and through 1,048 specialty store doors and 218 department store doors internationally as of march 31 , 2018 . mk wholesale also includes revenues from sales of products to michael kors geographic licensees . 30 mk licensing โ includes royalties and advertising contributions earned on licensed products and use of the company 's trademarks , and rights granted to third parties for the right to operate retail stores and or sell the company 's products in certain geographic regions . jimmy choo โ includes worldwide sales of jimmy choo products through 182 retail stores ( including concessions ) and jimmy choo e-commerce sites in the u.s. , certain parts of europe and japan , through 629 wholesale doors , as well as through product and geographic licensing arrangements , as of march 31 , 2018 . certain factors affecting financial condition and results of operations establishing brand identity and enhancing global presence . we intend to grow our international presence through the formation of a global fashion luxury group , bringing together industry-leading fashion luxury brands . as mentioned above , on november 1 , 2017 , we completed our acquisition of jimmy choo for a total transaction value of $ 1.447 billion ( see note 3 to the accompanying consolidated financial statements for additional information ) . jimmy choo has a rich history as a leading global luxury house , renowned for its glamorous and fashion-forward footwear , and is an excellent complement to the michael kors brand . we believe this combination further strengthens our future growth opportunities , while also increasing both product and geographic diversification . however , there are risks associated with a new acquisition and the anticipated benefits of the acquisition on our financial results may not be in line with our expectations . we intend to continue to increase our international presence and global brand recognition by growing our existing international operations through acquisitions , the formation of various joint ventures with international partners , and continuing with our international licensing arrangements . we feel this is an efficient method for continued penetration into the global luxury goods market , especially for markets where we have yet to establish a substantial presence . in addition , our growth strategy includes assuming direct control of certain licensed international operations to better manage our growth opportunities in the related regions . on may 31 , 2016 , we acquired the previously licensed business in the greater china region ( โ mkhkl โ ) , which has operations in china , hong kong , macau and taiwan . see note 3 to the accompanying consolidated financial statements for additional information regarding our recent acquisitions . channel shift and demand for our accessories and related merchandise . our performance is affected by trends in the luxury goods industry , as well as shifts in demographics and changes in lifestyle preferences . although the overall consumer spending for personal luxury products has recently increased , consumer shopping preferences have continued to shift from physical stores to on-line shopping . we currently expect that this trend will continue in the foreseeable future . during fiscal 2018 , we have continued to strategically decrease promotional activity , which resulted in a reduction in shipments of michael kors products within our wholesale channel , which we believe is necessary to appropriately position the michael kors brand long-term . in addition , we have been strategically reducing promotional activity within our full-price retail stores . we continue to adjust our operating strategy to the changing business environment and on may 31 , 2017 , we announced that we plan to close between 100 and 125 of our michael kors full-price retail stores over the next two years in order to improve the profitability of our michael kors retail store fleet under our retail fleet optimization plan . over this time period , we expect to incur approximately $ 100 - $ 125 million of one-time costs associated with these store closures . during fiscal 2018 , we closed 47 of our michael kors full-price retail stores under the retail fleet optimization plan , which resulted in restructuring charges of $ 52.6 million recorded within restructuring and other charges in our consolidated statements of operations and comprehensive income . we currently anticipate finalizing the remainder of the planned store closures under the retail fleet optimization plan over the next two fiscal years . story_separator_special_tag based on the results of these assessments , we concluded that the fair values of the michael kors reporting units significantly exceeded the related carrying amounts and there were no reporting units at risk of impairment . the impairment analyses relating to the jimmy choo goodwill and brand were performed using a qualitative approach due to the proximity to the acquisition date and it was concluded that it is more likely than not that the fair value of goodwill and brand exceeded their respective carrying values and , therefore , did not result in impairment . see note 12 to the accompanying audited financial statements for information relating to our annual impairment analysis performed during the fourth quarter of fiscal 2018 . there were no impairment charges related to goodwill in any of the fiscal periods presented . share-based compensation we grant share-based awards to certain of our employees and directors . the grant date fair value of share options is calculated using the black-scholes option pricing model , which requires us to use subjective assumptions . the closing market price at the grant date is used to determine the grant date fair value of restricted shares , restricted share units , and performance restricted share units . these values are recognized as expense over the requisite service period , net of estimated forfeitures , based on expected attainment of pre-established performance goals for performance grants , or the passage of time for those grants which have only time-based vesting requirements . beginning in fiscal 2018 , we began using our own historical experience in determining the expected holding period and volatility of our time-based share option awards . in prior periods , we used the simplified method for determining the expected life of our options and average volatility rates of similar actively traded companies over the estimated holding period , due to insufficient historical option exercise experience as a public company . determining the grant date fair value of share-based awards requires considerable judgment , including estimating expected volatility , expected term , risk-free rate , and forfeitures . if factors change and we employ different assumptions , the fair value of future awards and resulting share-based compensation expense may differ significantly from what we have estimated in the past . 34 derivative financial instruments we use forward currency exchange contracts to manage our exposure to fluctuations in foreign currency for certain of our transactions . we are exposed to risks on certain purchase commitments to foreign suppliers based on the value of our purchasing subsidiaries ' local currency relative to the currency requirement of the supplier on the date of the commitment . as such , we enter into forward currency contracts that generally mature in 12 months or less , which is consistent with the related purchase commitments . we designate certain contracts related to the purchase of inventory that qualify for hedge accounting as cash flow hedges . all of our derivative instruments are recorded in our consolidated balance sheets at fair value on a gross basis , regardless of their hedge designation . the effective portion of changes in the fair value for contracts designated as cash flow hedges is recorded in equity as a component of accumulated other comprehensive income ( loss ) until the hedged item effects earnings . when the inventory related to forecasted inventory purchases that are being hedged is sold to a third party , the gains or losses deferred in accumulated other comprehensive income ( loss ) are recognized within cost of goods sold . we use regression analysis to assess effectiveness of derivative instruments that are designated as hedges , which compares the change in the fair value of the derivative instrument to the change in the related hedged item . effectiveness is assessed on a quarterly basis and any portion of the designated hedge contracts deemed ineffective is recorded to foreign currency gain ( loss ) . if the hedge is no longer expected to be highly effective in the future , future changes in the fair value are recognized in earnings . for those contracts that are not designated as hedges , changes in the fair value are recorded in foreign currency gain ( loss ) in our consolidated statements of operations . the company is exposed to the risk that counterparties to derivative contracts will fail to meet their contractual obligations . in order to mitigate counterparty credit risk , the company only enters into contracts with carefully selected financial institutions based upon their credit ratings and certain other financial factors , adhering to established limits for credit exposure . income taxes deferred income tax assets and liabilities reflect temporary differences between the tax basis and financial reporting basis of our assets and liabilities and are determined using the tax rates and laws in effect for the periods in which the differences are expected to reverse . we periodically assess the realizability of deferred tax assets and the adequacy of deferred tax liabilities , based on the results of local , state , federal or foreign statutory tax audits or our own estimates and judgments . realization of deferred tax assets associated with net operating loss and tax credit carryforwards is dependent upon generating sufficient taxable income prior to their expiration in the applicable tax jurisdiction . we periodically review the recoverability of our deferred tax assets and provide valuation allowances as deemed necessary to reduce deferred tax assets to amounts that more-likely-than-not will be realized . this determination involves considerable judgment and our management considers many factors when assessing the likelihood of future realization of deferred tax assets , including recent earnings results within various taxing jurisdictions , expectations of future taxable income , the carryforward periods remaining and other factors . changes in the required valuation allowance are recorded in income in the period such determination is made . deferred tax assets could be reduced in the future if our estimates of taxable
| net cash used in investing activities increased $ 882.5 million to $ 1.533 billion during fiscal 2018 , compared to $ 650.9 million during fiscal 2017 . the decrease in cash was primarily attributable to a $ 933.9 million increase of cash paid , net of cash acquired , in connection with our fiscal 2018 acquisition of the jimmy choo business , as compared to our acquisition of the previously licensed business in greater china during fiscal 2017. this decrease in cash was partially offset by lower capital expenditures of $ 44.4 million , due to lower spending related to build-outs of new stores and shop-in-shops and lower corporate expenditures . net cash used in investing activities increased $ 269.8 million to $ 650.9 million during fiscal 2017 , compared to $ 381.1 million during fiscal 2016 . the decrease in cash was primarily attributable to $ 480.6 million of cash paid , net of cash acquired , in connection with our acquisition of the previously licensed business in greater china during fiscal 2017 , partially offset by lower capital expenditures of $ 204.4 million , attributable to lower corporate expenditures and lower spending to build out new stores and shop-in-shops , partially offset by capital spending related to our newly acquired operations in china and south korea and increased investments in our e-commerce business . cash provided by ( used in ) financing activities net cash provided by financing activities was $ 389.6 million during fiscal 2018 , as compared to net cash used in financing activities of $ 850.2 million during fiscal 2017 . the $ 1.240 billion increase in cash from financing activities was due to increased debt borrowings of $ 590.9 million , which included senior notes and term loan borrowings to finance the acquisition of jimmy choo , net of cash repayments , as well as a decrease of $ 643.8 million in cash payments to repurchase our ordinary shares .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```net cash used in investing activities increased $ 882.5 million to $ 1.533 billion during fiscal 2018 , compared to $ 650.9 million during fiscal 2017 . the decrease in cash was primarily attributable to a $ 933.9 million increase of cash paid , net of cash acquired , in connection with our fiscal 2018 acquisition of the jimmy choo business , as compared to our acquisition of the previously licensed business in greater china during fiscal 2017. this decrease in cash was partially offset by lower capital expenditures of $ 44.4 million , due to lower spending related to build-outs of new stores and shop-in-shops and lower corporate expenditures . net cash used in investing activities increased $ 269.8 million to $ 650.9 million during fiscal 2017 , compared to $ 381.1 million during fiscal 2016 . the decrease in cash was primarily attributable to $ 480.6 million of cash paid , net of cash acquired , in connection with our acquisition of the previously licensed business in greater china during fiscal 2017 , partially offset by lower capital expenditures of $ 204.4 million , attributable to lower corporate expenditures and lower spending to build out new stores and shop-in-shops , partially offset by capital spending related to our newly acquired operations in china and south korea and increased investments in our e-commerce business . cash provided by ( used in ) financing activities net cash provided by financing activities was $ 389.6 million during fiscal 2018 , as compared to net cash used in financing activities of $ 850.2 million during fiscal 2017 . the $ 1.240 billion increase in cash from financing activities was due to increased debt borrowings of $ 590.9 million , which included senior notes and term loan borrowings to finance the acquisition of jimmy choo , net of cash repayments , as well as a decrease of $ 643.8 million in cash payments to repurchase our ordinary shares .
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Suspicious Activity Report : in addition , certain products such as fragrances , sunglasses and eyewear are produced under product licensing agreements . jimmy choo 's design team is led by sandra choi , who has been the creative director for the brand since its inception in 1996. jimmy choo products are unique , instinctively seductive and chic . the brand offers classic and timeless luxury products , as well as innovative products that are intended to set and lead fashion trends . the jimmy choo brand is represented through its global store network , its e-commerce sites , as well as through the most prestigious department and specialty stores worldwide . prior to the third quarter of fiscal 2018 , we had three reportable segments for our michael kors brand : retail , wholesale and licensing . with the acquisition of jimmy choo , the company began to operate in four reportable segments , which are as follows : mk retail โ includes sales of michael kors products from 379 retail stores in the americas ( including concessions ) and 450 international retail stores ( including concessions ) in europe and certain parts of asia , as well as from michael kors e-commerce sites in the u.s. , canada , certain parts of europe , china , japan and south korea as of march 31 , 2018 . mk wholesale โ includes wholesale sales of michael kors products through 1,403 department store doors and 875 specialty store doors in the americas and through 1,048 specialty store doors and 218 department store doors internationally as of march 31 , 2018 . mk wholesale also includes revenues from sales of products to michael kors geographic licensees . 30 mk licensing โ includes royalties and advertising contributions earned on licensed products and use of the company 's trademarks , and rights granted to third parties for the right to operate retail stores and or sell the company 's products in certain geographic regions . jimmy choo โ includes worldwide sales of jimmy choo products through 182 retail stores ( including concessions ) and jimmy choo e-commerce sites in the u.s. , certain parts of europe and japan , through 629 wholesale doors , as well as through product and geographic licensing arrangements , as of march 31 , 2018 . certain factors affecting financial condition and results of operations establishing brand identity and enhancing global presence . we intend to grow our international presence through the formation of a global fashion luxury group , bringing together industry-leading fashion luxury brands . as mentioned above , on november 1 , 2017 , we completed our acquisition of jimmy choo for a total transaction value of $ 1.447 billion ( see note 3 to the accompanying consolidated financial statements for additional information ) . jimmy choo has a rich history as a leading global luxury house , renowned for its glamorous and fashion-forward footwear , and is an excellent complement to the michael kors brand . we believe this combination further strengthens our future growth opportunities , while also increasing both product and geographic diversification . however , there are risks associated with a new acquisition and the anticipated benefits of the acquisition on our financial results may not be in line with our expectations . we intend to continue to increase our international presence and global brand recognition by growing our existing international operations through acquisitions , the formation of various joint ventures with international partners , and continuing with our international licensing arrangements . we feel this is an efficient method for continued penetration into the global luxury goods market , especially for markets where we have yet to establish a substantial presence . in addition , our growth strategy includes assuming direct control of certain licensed international operations to better manage our growth opportunities in the related regions . on may 31 , 2016 , we acquired the previously licensed business in the greater china region ( โ mkhkl โ ) , which has operations in china , hong kong , macau and taiwan . see note 3 to the accompanying consolidated financial statements for additional information regarding our recent acquisitions . channel shift and demand for our accessories and related merchandise . our performance is affected by trends in the luxury goods industry , as well as shifts in demographics and changes in lifestyle preferences . although the overall consumer spending for personal luxury products has recently increased , consumer shopping preferences have continued to shift from physical stores to on-line shopping . we currently expect that this trend will continue in the foreseeable future . during fiscal 2018 , we have continued to strategically decrease promotional activity , which resulted in a reduction in shipments of michael kors products within our wholesale channel , which we believe is necessary to appropriately position the michael kors brand long-term . in addition , we have been strategically reducing promotional activity within our full-price retail stores . we continue to adjust our operating strategy to the changing business environment and on may 31 , 2017 , we announced that we plan to close between 100 and 125 of our michael kors full-price retail stores over the next two years in order to improve the profitability of our michael kors retail store fleet under our retail fleet optimization plan . over this time period , we expect to incur approximately $ 100 - $ 125 million of one-time costs associated with these store closures . during fiscal 2018 , we closed 47 of our michael kors full-price retail stores under the retail fleet optimization plan , which resulted in restructuring charges of $ 52.6 million recorded within restructuring and other charges in our consolidated statements of operations and comprehensive income . we currently anticipate finalizing the remainder of the planned store closures under the retail fleet optimization plan over the next two fiscal years . story_separator_special_tag based on the results of these assessments , we concluded that the fair values of the michael kors reporting units significantly exceeded the related carrying amounts and there were no reporting units at risk of impairment . the impairment analyses relating to the jimmy choo goodwill and brand were performed using a qualitative approach due to the proximity to the acquisition date and it was concluded that it is more likely than not that the fair value of goodwill and brand exceeded their respective carrying values and , therefore , did not result in impairment . see note 12 to the accompanying audited financial statements for information relating to our annual impairment analysis performed during the fourth quarter of fiscal 2018 . there were no impairment charges related to goodwill in any of the fiscal periods presented . share-based compensation we grant share-based awards to certain of our employees and directors . the grant date fair value of share options is calculated using the black-scholes option pricing model , which requires us to use subjective assumptions . the closing market price at the grant date is used to determine the grant date fair value of restricted shares , restricted share units , and performance restricted share units . these values are recognized as expense over the requisite service period , net of estimated forfeitures , based on expected attainment of pre-established performance goals for performance grants , or the passage of time for those grants which have only time-based vesting requirements . beginning in fiscal 2018 , we began using our own historical experience in determining the expected holding period and volatility of our time-based share option awards . in prior periods , we used the simplified method for determining the expected life of our options and average volatility rates of similar actively traded companies over the estimated holding period , due to insufficient historical option exercise experience as a public company . determining the grant date fair value of share-based awards requires considerable judgment , including estimating expected volatility , expected term , risk-free rate , and forfeitures . if factors change and we employ different assumptions , the fair value of future awards and resulting share-based compensation expense may differ significantly from what we have estimated in the past . 34 derivative financial instruments we use forward currency exchange contracts to manage our exposure to fluctuations in foreign currency for certain of our transactions . we are exposed to risks on certain purchase commitments to foreign suppliers based on the value of our purchasing subsidiaries ' local currency relative to the currency requirement of the supplier on the date of the commitment . as such , we enter into forward currency contracts that generally mature in 12 months or less , which is consistent with the related purchase commitments . we designate certain contracts related to the purchase of inventory that qualify for hedge accounting as cash flow hedges . all of our derivative instruments are recorded in our consolidated balance sheets at fair value on a gross basis , regardless of their hedge designation . the effective portion of changes in the fair value for contracts designated as cash flow hedges is recorded in equity as a component of accumulated other comprehensive income ( loss ) until the hedged item effects earnings . when the inventory related to forecasted inventory purchases that are being hedged is sold to a third party , the gains or losses deferred in accumulated other comprehensive income ( loss ) are recognized within cost of goods sold . we use regression analysis to assess effectiveness of derivative instruments that are designated as hedges , which compares the change in the fair value of the derivative instrument to the change in the related hedged item . effectiveness is assessed on a quarterly basis and any portion of the designated hedge contracts deemed ineffective is recorded to foreign currency gain ( loss ) . if the hedge is no longer expected to be highly effective in the future , future changes in the fair value are recognized in earnings . for those contracts that are not designated as hedges , changes in the fair value are recorded in foreign currency gain ( loss ) in our consolidated statements of operations . the company is exposed to the risk that counterparties to derivative contracts will fail to meet their contractual obligations . in order to mitigate counterparty credit risk , the company only enters into contracts with carefully selected financial institutions based upon their credit ratings and certain other financial factors , adhering to established limits for credit exposure . income taxes deferred income tax assets and liabilities reflect temporary differences between the tax basis and financial reporting basis of our assets and liabilities and are determined using the tax rates and laws in effect for the periods in which the differences are expected to reverse . we periodically assess the realizability of deferred tax assets and the adequacy of deferred tax liabilities , based on the results of local , state , federal or foreign statutory tax audits or our own estimates and judgments . realization of deferred tax assets associated with net operating loss and tax credit carryforwards is dependent upon generating sufficient taxable income prior to their expiration in the applicable tax jurisdiction . we periodically review the recoverability of our deferred tax assets and provide valuation allowances as deemed necessary to reduce deferred tax assets to amounts that more-likely-than-not will be realized . this determination involves considerable judgment and our management considers many factors when assessing the likelihood of future realization of deferred tax assets , including recent earnings results within various taxing jurisdictions , expectations of future taxable income , the carryforward periods remaining and other factors . changes in the required valuation allowance are recorded in income in the period such determination is made . deferred tax assets could be reduced in the future if our estimates of taxable
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2,547 | although the forward-looking statements in this report reflect the good faith judgment of our management , such statements can only be based on facts and factors currently known by them . consequently , and because forward-looking statements are inherently subject to risks and uncertainties , the actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements . you are urged to carefully review and consider the various disclosures made by us in this report as we attempt to advise interested parties of the risks and factors that may affect our business , financial condition , and results of operations and prospects . overview code chain new continent limited ( formerly known as tmsr holding company limited and jm global holding company , the โ company โ or โ ccnc โ ) , through its subsidiaries and controlled entities , focuses its business in two segments : ( 1 ) coal wholesales and sales of coke , steels , construction materials , mechanical equipment and steel scrap ; and ( 2 ) the research , development and application of internet of things ( iot ) and electronic tokens . the company 's coal and coke wholesale business is carried out by jiangsu rong hai electric power fuel co. , ltd. ( โ rong hai โ ) , an entity contractually controlled by the company . the company 's iot business is carried out wuge network games co. , ltd. ( โ wuge โ ) , an entity contractually controlled by the company . on june 30 , 2020 , the company entered into a share purchase agreement with jiazhen li , former ceo of the company ( the โ buyer โ ) , long liao and chunyong zheng , who are former shareholders of wuhan host , to sell all the equity interest the company held in china sunlong . shengrong wfoe and wuhan host are indirect subsidiaries of china sunlong . as a result , as of june 30 , 2020 , operations of shengrong wfoe and wuhan host have been designated as discontinued operations . 44 key factors that affect operating results our operating subsidiaries are incorporated , and our operations and assets are primarily located , in china . accordingly , our results of operations , financial condition and prospects are affected by china 's economic and regulation conditions in the following factors : ( a ) an economic downturn in china or any regional market in china ; ( b ) economic policies and initiatives undertaken by the chinese government ; ( c ) changes in the chinese or regional business or regulatory environment affecting our customers ; and ( e ) changes in the chinese government policy on industrial solid waste . unfavorable changes could affect demand for services that we provide and could materially and adversely affect the results of operations . although the company has generally benefited from china 's economic growth and the policies to encourage the improvement of reducing of solid waste discharge , the company is also affected by the complexity , uncertainties and changes in the chinese economic conditions and regulations governing the mining industry . our fuel materials , mainly coal , operations are largely affected by the following aspects . first , the prc 's macroeconomic growth is not as fast as expected ; the slowdown of economic growth will affect the demand of the market , and the reduction of coal consumption by enterprises will affect the sales of coal and directly affect our earnings . second , the coal market price fluctuation will also affect our sales revenue ; because jiangsu rong hai has long-term and stable customers , the price fluctuations will affect the cost of purchasing coal and thus affect our revenue . third , the risk of price fluctuation in the shipping industry . the fluctuation of shipping price will also directly affect the fluctuation of coal market price , thus affecting our income . fourth , we have long-term and stable customers and continues to rely on a small number of customers from 2009 to 2019. losing our major customers will have a significant impact on our results of operations . in addition , the payment situation of these customers will be affected by abnormal market changes , which will have a negative impact on our business recovery accounts and cash flow . as a result of the novel coronavirus ( covid-19 ) outbreak , we have seen a slowdown in revenue growth in first quarter 2020 as our businesses have been negatively impacted by the covid-19 . these impacts of covid-19 on our business , financial condition , and results of operations include , but are not limited to , the following : โ we temporally closed our offices and production facilities to adhere to the policy beginning in february 2020 , as required by relevant prc regulatory authorities . our offices are slowly reopening pursuant to local guidelines . โ our customers could potentially be negatively impacted by the outbreak , which may reduce the demand of our products . as a result , our revenue and income may be negatively impacted in 2020 . โ the situation may worsen if the covid-19 outbreak continues . we will continue to closely monitor our collections throughout 2020. because of the significant uncertainties surrounding the covid-19 outbreak , the extent of the continued business disruption and the related financial impact can not be reasonably estimated at this time . 45 results of operations year ended december 31 , 2020 as compared to the year ended december 31 , 2019 replace_table_token_2_th revenues the company 's revenue consists of fuel materials revenue and others revenue . story_separator_special_tag agent arrangements , where the entity simply arranges but does not control the goods or services being transferred to the customer , will result in the recognition of the net amount the entity is entitled to retain in the exchange . revenue from equipment and systems , revenue from coating and fuel materials , and revenue from trading and others are recognized at the date of goods delivered and title passed to customers , when a formal arrangement exists , the price is fixed or determinable , the company has no other significant obligations and collectability is reasonably assured . such revenues are recognized at a point in time after all performance obligations are satisfied under the new five-step model . in addition , training service revenues are recognized when the services are rendered and the company has no other obligations , and collectability is reasonably assured . these revenues are recognized at a point in time . prior to january 1 , 2018 , the company allowed its customers to retain 5 % to 10 % of the contract price as retainage during the warranty period of 12 months to guarantee product quality . retainage is considered as a payment term included as a part of the contract price , and was recognized as revenue upon the shipment of products . due to nature of the retainage , the company 's policy is to record revenue the full value of the contract without vat , including any retainage , since the company has experienced insignificant warranty claims historically . due to the infrequent and insignificant amount of warranty claims , the ability to collect retainage was reasonably assured and was recognized at the time of shipment . on january 1 , 2018 , upon the adoption of asu 2014-09 ( asc 606 ) , revenues from product warranty are recognized over the warranty period over 12 months . payments received before all of the relevant criteria for revenue recognition are recorded as customer deposits . gross versus net revenue reporting starting from july 2016 , in the normal course of the company 's trading of industrial waste materials business , the company directly purchases the processed industrial waste materials from the company 's suppliers under the company 's specifications and drop ships the materials directly to the company 's customers . the company would inspect the materials at its customers ' site , during which inspection it temporarily assumes legal title to the materials , and after which inspection legal title is transferred to its customers . in these situations , the company generally collects the sales proceed directly from the company 's customers and pay for the inventory purchases to the company 's suppliers separately . the determination of whether revenues should be reported on a gross or net basis is based on the company 's assessment of whether it is the principal or an agent in the transaction . in determining whether the company is the principal or an agent , the company follows the new accounting guidance for principal-agent considerations . since the company is the primary obligor and is responsible for ( i ) fulfilling the processed industrial waste materials delivery , ( ii ) controlling the inventory by temporarily assume legal title to the materials after inspecting the products from our vendors before passing the materials to our customers , and ( iii ) bearing the back-end risk of inventory loss with respect to any product return from the company 's customers , the company has concluded that it is the principal in these arrangements , and therefore report revenues and cost of revenues on a gross basis . 50 recently issue accounting pronouncements in february 2018 , the fasb issued asu 2018-02 , income statement - reporting comprehensive income ( topic 220 ) : reclassification of certain tax effects from accumulated other comprehensive income . the amendments in this update affect any entity that is required to apply the provisions of topic 220 , income statement โ reporting comprehensive income , and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by gaap . the amendments in this update are effective for all entities for fiscal years beginning after december 15 , 2018 , and interim periods within those fiscal years . early adoption of the amendments in this update is permitted , including adoption in any interim period , ( 1 ) for public business entities for reporting periods for which financial statements have not yet been issued and ( 2 ) for all other entities for reporting periods for which financial statements have not yet been made available for issuance . the amendments in this update should be applied either in the period of adoption or retrospectively to each period ( or periods ) in which the effect of the change in the u.s. federal corporate income tax rate in the tax cuts and jobs act is recognized . we do not believe the adoption of this asu would have a material effect on our consolidated financial statements . we do not believe other recently issued but not yet effective accounting standards , if currently adopted , would have a material effect on our consolidated balance sheets , statements of income and comprehensive income and statements of cash flows . story_separator_special_tag needs . liquidity risk is controlled by the application of financial position analysis and monitoring procedures . when necessary , the company will turn to other financial institutions and the owners to obtain short-term funding to meet the liquidity shortage . inflation risk the company is also exposed to inflation risk inflationary factors , such as increases in raw material and overhead costs , could impair our operating results . although we do not believe that inflation has had a material impact on our financial position or results of operations to date , a high rate of inflation in
| liquidity and capital resources the company has funded working capital and other capital requirements primarily by equity contributions , loans from shareholders , cash flow from operations , short term bank loans , loans from third parties and cash received from jm global holding company through the reverse capitalization . cash is required to repay debts and pay salaries , office expenses , income taxes and other operating expenses . as of december 31 , 2020 , our net working capital deficit was approximately $ 8.8 million , over 15 % of the company 's current liabilities was from other payables โ related parties due to major shareholders . removing these liabilities , the company had net working capital of $ 9.3 million and is expected to continuing generate cash flow from operations in the twelve months period . we believe that current levels of cash and cash flows from operations will be sufficient to meet its anticipated cash needs for at least the next twelve months from the date the consolidated financial statements to be issued . however , it may need additional cash resources in the future if it experiences changed business conditions or other developments , and may also need additional cash resources in the future if it wishes to pursue opportunities for investment , acquisition , strategic cooperation or other similar actions . if it is determined that the cash requirements exceed the company 's amounts of cash and cash equivalents on hand , the company may seek to issue debt or equity securities or obtain additional credit facility .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources the company has funded working capital and other capital requirements primarily by equity contributions , loans from shareholders , cash flow from operations , short term bank loans , loans from third parties and cash received from jm global holding company through the reverse capitalization . cash is required to repay debts and pay salaries , office expenses , income taxes and other operating expenses . as of december 31 , 2020 , our net working capital deficit was approximately $ 8.8 million , over 15 % of the company 's current liabilities was from other payables โ related parties due to major shareholders . removing these liabilities , the company had net working capital of $ 9.3 million and is expected to continuing generate cash flow from operations in the twelve months period . we believe that current levels of cash and cash flows from operations will be sufficient to meet its anticipated cash needs for at least the next twelve months from the date the consolidated financial statements to be issued . however , it may need additional cash resources in the future if it experiences changed business conditions or other developments , and may also need additional cash resources in the future if it wishes to pursue opportunities for investment , acquisition , strategic cooperation or other similar actions . if it is determined that the cash requirements exceed the company 's amounts of cash and cash equivalents on hand , the company may seek to issue debt or equity securities or obtain additional credit facility .
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Suspicious Activity Report : although the forward-looking statements in this report reflect the good faith judgment of our management , such statements can only be based on facts and factors currently known by them . consequently , and because forward-looking statements are inherently subject to risks and uncertainties , the actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements . you are urged to carefully review and consider the various disclosures made by us in this report as we attempt to advise interested parties of the risks and factors that may affect our business , financial condition , and results of operations and prospects . overview code chain new continent limited ( formerly known as tmsr holding company limited and jm global holding company , the โ company โ or โ ccnc โ ) , through its subsidiaries and controlled entities , focuses its business in two segments : ( 1 ) coal wholesales and sales of coke , steels , construction materials , mechanical equipment and steel scrap ; and ( 2 ) the research , development and application of internet of things ( iot ) and electronic tokens . the company 's coal and coke wholesale business is carried out by jiangsu rong hai electric power fuel co. , ltd. ( โ rong hai โ ) , an entity contractually controlled by the company . the company 's iot business is carried out wuge network games co. , ltd. ( โ wuge โ ) , an entity contractually controlled by the company . on june 30 , 2020 , the company entered into a share purchase agreement with jiazhen li , former ceo of the company ( the โ buyer โ ) , long liao and chunyong zheng , who are former shareholders of wuhan host , to sell all the equity interest the company held in china sunlong . shengrong wfoe and wuhan host are indirect subsidiaries of china sunlong . as a result , as of june 30 , 2020 , operations of shengrong wfoe and wuhan host have been designated as discontinued operations . 44 key factors that affect operating results our operating subsidiaries are incorporated , and our operations and assets are primarily located , in china . accordingly , our results of operations , financial condition and prospects are affected by china 's economic and regulation conditions in the following factors : ( a ) an economic downturn in china or any regional market in china ; ( b ) economic policies and initiatives undertaken by the chinese government ; ( c ) changes in the chinese or regional business or regulatory environment affecting our customers ; and ( e ) changes in the chinese government policy on industrial solid waste . unfavorable changes could affect demand for services that we provide and could materially and adversely affect the results of operations . although the company has generally benefited from china 's economic growth and the policies to encourage the improvement of reducing of solid waste discharge , the company is also affected by the complexity , uncertainties and changes in the chinese economic conditions and regulations governing the mining industry . our fuel materials , mainly coal , operations are largely affected by the following aspects . first , the prc 's macroeconomic growth is not as fast as expected ; the slowdown of economic growth will affect the demand of the market , and the reduction of coal consumption by enterprises will affect the sales of coal and directly affect our earnings . second , the coal market price fluctuation will also affect our sales revenue ; because jiangsu rong hai has long-term and stable customers , the price fluctuations will affect the cost of purchasing coal and thus affect our revenue . third , the risk of price fluctuation in the shipping industry . the fluctuation of shipping price will also directly affect the fluctuation of coal market price , thus affecting our income . fourth , we have long-term and stable customers and continues to rely on a small number of customers from 2009 to 2019. losing our major customers will have a significant impact on our results of operations . in addition , the payment situation of these customers will be affected by abnormal market changes , which will have a negative impact on our business recovery accounts and cash flow . as a result of the novel coronavirus ( covid-19 ) outbreak , we have seen a slowdown in revenue growth in first quarter 2020 as our businesses have been negatively impacted by the covid-19 . these impacts of covid-19 on our business , financial condition , and results of operations include , but are not limited to , the following : โ we temporally closed our offices and production facilities to adhere to the policy beginning in february 2020 , as required by relevant prc regulatory authorities . our offices are slowly reopening pursuant to local guidelines . โ our customers could potentially be negatively impacted by the outbreak , which may reduce the demand of our products . as a result , our revenue and income may be negatively impacted in 2020 . โ the situation may worsen if the covid-19 outbreak continues . we will continue to closely monitor our collections throughout 2020. because of the significant uncertainties surrounding the covid-19 outbreak , the extent of the continued business disruption and the related financial impact can not be reasonably estimated at this time . 45 results of operations year ended december 31 , 2020 as compared to the year ended december 31 , 2019 replace_table_token_2_th revenues the company 's revenue consists of fuel materials revenue and others revenue . story_separator_special_tag agent arrangements , where the entity simply arranges but does not control the goods or services being transferred to the customer , will result in the recognition of the net amount the entity is entitled to retain in the exchange . revenue from equipment and systems , revenue from coating and fuel materials , and revenue from trading and others are recognized at the date of goods delivered and title passed to customers , when a formal arrangement exists , the price is fixed or determinable , the company has no other significant obligations and collectability is reasonably assured . such revenues are recognized at a point in time after all performance obligations are satisfied under the new five-step model . in addition , training service revenues are recognized when the services are rendered and the company has no other obligations , and collectability is reasonably assured . these revenues are recognized at a point in time . prior to january 1 , 2018 , the company allowed its customers to retain 5 % to 10 % of the contract price as retainage during the warranty period of 12 months to guarantee product quality . retainage is considered as a payment term included as a part of the contract price , and was recognized as revenue upon the shipment of products . due to nature of the retainage , the company 's policy is to record revenue the full value of the contract without vat , including any retainage , since the company has experienced insignificant warranty claims historically . due to the infrequent and insignificant amount of warranty claims , the ability to collect retainage was reasonably assured and was recognized at the time of shipment . on january 1 , 2018 , upon the adoption of asu 2014-09 ( asc 606 ) , revenues from product warranty are recognized over the warranty period over 12 months . payments received before all of the relevant criteria for revenue recognition are recorded as customer deposits . gross versus net revenue reporting starting from july 2016 , in the normal course of the company 's trading of industrial waste materials business , the company directly purchases the processed industrial waste materials from the company 's suppliers under the company 's specifications and drop ships the materials directly to the company 's customers . the company would inspect the materials at its customers ' site , during which inspection it temporarily assumes legal title to the materials , and after which inspection legal title is transferred to its customers . in these situations , the company generally collects the sales proceed directly from the company 's customers and pay for the inventory purchases to the company 's suppliers separately . the determination of whether revenues should be reported on a gross or net basis is based on the company 's assessment of whether it is the principal or an agent in the transaction . in determining whether the company is the principal or an agent , the company follows the new accounting guidance for principal-agent considerations . since the company is the primary obligor and is responsible for ( i ) fulfilling the processed industrial waste materials delivery , ( ii ) controlling the inventory by temporarily assume legal title to the materials after inspecting the products from our vendors before passing the materials to our customers , and ( iii ) bearing the back-end risk of inventory loss with respect to any product return from the company 's customers , the company has concluded that it is the principal in these arrangements , and therefore report revenues and cost of revenues on a gross basis . 50 recently issue accounting pronouncements in february 2018 , the fasb issued asu 2018-02 , income statement - reporting comprehensive income ( topic 220 ) : reclassification of certain tax effects from accumulated other comprehensive income . the amendments in this update affect any entity that is required to apply the provisions of topic 220 , income statement โ reporting comprehensive income , and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by gaap . the amendments in this update are effective for all entities for fiscal years beginning after december 15 , 2018 , and interim periods within those fiscal years . early adoption of the amendments in this update is permitted , including adoption in any interim period , ( 1 ) for public business entities for reporting periods for which financial statements have not yet been issued and ( 2 ) for all other entities for reporting periods for which financial statements have not yet been made available for issuance . the amendments in this update should be applied either in the period of adoption or retrospectively to each period ( or periods ) in which the effect of the change in the u.s. federal corporate income tax rate in the tax cuts and jobs act is recognized . we do not believe the adoption of this asu would have a material effect on our consolidated financial statements . we do not believe other recently issued but not yet effective accounting standards , if currently adopted , would have a material effect on our consolidated balance sheets , statements of income and comprehensive income and statements of cash flows . story_separator_special_tag needs . liquidity risk is controlled by the application of financial position analysis and monitoring procedures . when necessary , the company will turn to other financial institutions and the owners to obtain short-term funding to meet the liquidity shortage . inflation risk the company is also exposed to inflation risk inflationary factors , such as increases in raw material and overhead costs , could impair our operating results . although we do not believe that inflation has had a material impact on our financial position or results of operations to date , a high rate of inflation in
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2,548 | the beauty industry has continued to evolve , driven by increasing consumer desire for immersive shopping experiences , the importance of digital communication for brand building , the expanding role of e-commerce and specialty retail formats , and new brand introductions . this evolution has put pressure on traditional retail formats and traditional models of brand building and reaching consumers . we are tailoring our approach to address this evolution of the beauty industry . revenues from e-commerce channels comprise a small but fast-growing portion of our consolidated net revenues . transforming our digital and e-commerce capabilities is a central part of our overall strategy . while we are still in the early days of our digital transformation , we are making significant multi-year investments in talent acquisition , in-house content creation capabilities and product management systems that will fuel our e-commerce efforts . this , together with the dedication across each of our divisions to drive momentum in this rapidly expanding channel , will allow for expansion of our e-commerce footprint . the economics of developing , producing , launching , supporting and discontinuing products impact the timing of our sales and operating performance each period . in addition , as product life cycles shorten , results are driven primarily by successfully developing , introducing and marketing new , innovative products . we are continuing to improve our innovation process , aiming to introduce bigger , more impactful innovations while reducing time-to-market . we also support new and established products through our focus on strategic advertising and merchandising , brand repositioning , innovation and in-store execution . certain market segments and geographies in which we compete generally continue to grow moderately . while luxury fragrances and skin care categories are experiencing strong growth , low single digit declines in the retail nail , retail hair , mass body care , mass color cosmetics and mass fragrances categories in the u.s. and certain key countries in western europe continue to impact our business and financial results . we experienced strong growth in our luxury segment supported by strong category trends and our successful brand innovation , steady growth in our professional beauty segment and uneven performance in our consumer beauty segment . emerging markets have been a source of growth in many of our categories in fiscal 2018. we are also continuing to expand our presence in faster-growth emerging markets , by building strong relationships with key retailers in those markets and leveraging our broad portfolio of brands . transformation of our business following our acquisition of the p & g beauty business , we have been focused on integrating , restructuring and optimizing the combined organization . in fiscal 2018 , we successfully exited the third and final stage of our transition services agreement with p & g , following the successful exit of the first two stages in fiscal 2017. we also instituted new initiatives to deliver meaningful , sustainable expense and cost management to address increases in our fixed cost base as a combined company . the last step of the integration includes the completion of the one order , one invoice , one shipment program which will make coty a fully integrated company , able to sell , ship and invoice all of our brands in a seamless way for our customers , allowing significant simplification for our employees and increasing our scalability potential . further , in connection with the acquisition of the p & g beauty business , we are implementing our plan through which we continue to target realizing approximately $ 750 million of synergies driven by cost , procurement , supply chain and selling , general , and administrative savings through fiscal 2020. we realized cumulative synergies of approximately 20 % in fiscal 2017 , 50 % though fiscal 2018 , and we expect to cumulatively generate approximately 80 % of the net synergies throughout fiscal 2019 and the full $ 750 million through fiscal 2020. a milestone in our transformation was the completion in fiscal 2018 of our announced portfolio rationalization program and , as a result , we divested or terminated 14 brands including : clc , celine dion , cutex , esprit , guess , halle berry , jlo , lady gaga , love2love , playboy , summer and tim mcgraw , which were reported in our consumer beauty segment and cerruti and chopard , which were reported in our luxury segment . in addition , we continuously evaluate strategic transactions including acquisitions , divestitures and new brand licenses to optimize our portfolio . during fiscal 2018 , we acquired the exclusive long-term global license rights and other related assets for the burberry beauty luxury fragrances , cosmetics and skincare business ( the โ burberry beauty business โ ) , which is managed within the luxury division . we will continue to opportunistically look at strategic opportunities as and when they arise , subject to our strict financial discipline and deleveraging objectives . performance 29 in fiscal 2018 , solid operating performance was driven by steady progress on business integration . modest revenue growth was driven by strong performance in luxury , due to impactful innovations across the major brands , and solid growth in professional beauty supported by growth in both hair and nail categories , offset by declines in consumer beauty revenues as we made gradual progress towards stabilizing performance . in the fourth fiscal quarter , strong performance from luxury and solid growth in professional beauty were offset by declines in consumer beauty , where a number of temporary supply chain disruptions impacted revenues . story_separator_special_tag the increase in net revenues in fiscal 2017 reflects an increase in unit volume of 75 % and a positive price and mix impact of 4 % , partially offset by a negative foreign currency exchange translations impact of 3 % . excluding the impacts of the acquisitions and divestitures , total net revenues in fiscal 2017 decreased 8 % reflecting a negative price and mix impact of 4 % , a decrease in unit volume of 3 % and a negative foreign currency exchange translations impact of 1 % . 33 net revenues by segment replace_table_token_4_th luxury in fiscal 2018 , net revenues from the luxury segment increased 25 % , or $ 643.9 to $ 3,210.5 from $ 2,566.6 in fiscal 2017 , primarily due to the impact of the acquisitions . the incremental net revenues in the first quarter of fiscal 2018 from the acquisition of the p & g beauty business in the prior year comprised 12 % of the total percentage change in net revenues for the segment , and the acquisition of the burberry beauty business comprised 3 % of the total percentage change in net revenues for the segment in fiscal 2018 as compared to fiscal 2017. excluding the impacts of the acquisitions and divestitures , net revenues from the luxury segment increased 10 % , or $ 267.6 , to $ 2,828.6 in fiscal 2018 from $ 2,561.0 in fiscal 2017 , reflecting a positive price and mix impact of 5 % , a positive foreign currency exchange translations impact of 4 % , and an increase in unit volume of 1 % . this increase in net revenues primarily reflects : ( i ) the successful launches of tiffany & co . and gucci bloom and ( ii ) higher net revenues from calvin klein due to the launch of obsessed by calvin klein and from ck one due to the launch of a successful campaign in the third quarter of fiscal 2018. fiscal 2018 revenues were positively impacted by innovative products across our philosophy , marc jacobs and chloe brands . there was also solid growth in fiscal 2018 , compared to fiscal 2017 , of luxury brands sold in china and the middle east as well as an increased contribution of luxury brands sold through e-commerce channels . in fiscal 2017 , net revenues from the luxury segment increased 40 % or $ 730.0 to $ 2,566.6 from $ 1,836.6 in fiscal 2016 , primarily due to the impact of the acquisitions . the acquisition of the p & g beauty business comprised 33 % of the total net revenues for the segment . hugo boss and gucci fragrances were the largest contributors to net revenues as a result of the acquisition of the p & g beauty business . excluding the impacts of the acquisitions and divestitures , net revenues from the luxury segment decreased 6 % , or $ 110.0 , to $ 1,726.6 in fiscal 2017 from $ 1,836.6 in fiscal 2016 , reflecting a negative price and mix impact of 3 % , a decrease in unit volume of 2 % , and a negative foreign currency exchange translations impact of 1 % . this decrease primarily reflects lower net revenues from calvin klein and marc jacobs fragrances . net revenues from calvin klein declined due to : ( i ) our strategic efforts to rationalize wholesale distribution by reducing the amount of product diversion to the value and mass channels resulting in a lower volume and ( ii ) a higher level of discounting and promotional activities resulting in a negative price and mix . the decline in marc jacobs primarily reflects declines in volumes from existing product lines and a lower level of launch activity in fiscal 2017 as compared to fiscal 2016. consumer beauty in fiscal 2018 , net revenues from the consumer beauty segment increased 16 % , or $ 579.9 , to $ 4,268.1 from $ 3,688.2 in fiscal 2017 , due to the impact of the acquisitions . the incremental net revenues in the first quarter of fiscal 2018 from the acquisition of the p & g beauty business in the prior year comprised 11 % of the total percentage change in net revenues for the segment , and the acquisition of younique comprised 6 % of the total percentage change in net revenues for the segment in fiscal 2018 compared to fiscal 2017. excluding the impacts of the acquisitions and the divestitures , net revenues from the consumer beauty segment decreased 1 % , or $ 21.2 , to $ 3,622.3 in fiscal 2018 from $ 3,643.5 in fiscal 2017 , primarily reflecting a decrease in unit volume of 7 % , a positive foreign currency exchange translations impact of 3 % , and a positive price and mix impact of 3 % . the change in net revenues primarily reflects : ( i ) a decline in net revenues from covergirl due to declines in existing product lines along with increased markdowns and trade spending . despite declines in the brand in fiscal 2018 , we have launched a multi-year brand turnaround strategy for covergirl in north america in the second quarter of fiscal 2018 . ( ii ) lower net revenues from sally hansen and playboy due to less innovation in the first half of fiscal 2018 and declines in existing product lines . ( iii ) lower net revenues from risque due to a reduction in volume in brazil in response to decreased sales discounts in the second half of fiscal 2018 and trade inventory correction . however , we continue to experience market share growth . ( iv ) lower net revenues from astor due to shelf-space losses in germany . 34 these decreases were partially offset by : ( i ) higher net revenues from nautica primarily driven by increased volume through value distribution channels . ( ii ) higher net revenues from
| debt the balances consisted of the following as of june 30 , 2018 and june 30 , 2017 , respectively : replace_table_token_16_th ( a ) balances as of june 30 , 2018 consist of unamortized debt issuance costs of $ 31.4 for the 2018 coty revolving credit facility , $ 29.2 for the 2018 coty term a facility , $ 10.9 for the 2018 coty term b facility , $ 8.3 for the 2026 dollar and euro notes and $ 6.4 for the 2023 euro notes . ( b ) balances as of june 30 , 2017 consist of unamortized debt issuance costs of $ 17.5 for the coty revolving credit facility , $ 33.2 for the coty term loan a facility , $ 11.3 for the coty term loan b facility , $ 2.7 for the galleria term loan a facility and $ 3.0 for the galleria term loan b facility . unamortized debt issuance costs of $ 4.2 for the galleria revolving credit facility were classified as other noncurrent assets as of june 30 , 2017 . short-term debt we maintain short-term lines of credit with financial institutions around the world . total available lines of credit were $ 129.2 and $ 132.4 , of which $ 4.7 and $ 3.2 were outstanding at june 30 , 2018 and 2017 , respectively .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```debt the balances consisted of the following as of june 30 , 2018 and june 30 , 2017 , respectively : replace_table_token_16_th ( a ) balances as of june 30 , 2018 consist of unamortized debt issuance costs of $ 31.4 for the 2018 coty revolving credit facility , $ 29.2 for the 2018 coty term a facility , $ 10.9 for the 2018 coty term b facility , $ 8.3 for the 2026 dollar and euro notes and $ 6.4 for the 2023 euro notes . ( b ) balances as of june 30 , 2017 consist of unamortized debt issuance costs of $ 17.5 for the coty revolving credit facility , $ 33.2 for the coty term loan a facility , $ 11.3 for the coty term loan b facility , $ 2.7 for the galleria term loan a facility and $ 3.0 for the galleria term loan b facility . unamortized debt issuance costs of $ 4.2 for the galleria revolving credit facility were classified as other noncurrent assets as of june 30 , 2017 . short-term debt we maintain short-term lines of credit with financial institutions around the world . total available lines of credit were $ 129.2 and $ 132.4 , of which $ 4.7 and $ 3.2 were outstanding at june 30 , 2018 and 2017 , respectively .
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Suspicious Activity Report : the beauty industry has continued to evolve , driven by increasing consumer desire for immersive shopping experiences , the importance of digital communication for brand building , the expanding role of e-commerce and specialty retail formats , and new brand introductions . this evolution has put pressure on traditional retail formats and traditional models of brand building and reaching consumers . we are tailoring our approach to address this evolution of the beauty industry . revenues from e-commerce channels comprise a small but fast-growing portion of our consolidated net revenues . transforming our digital and e-commerce capabilities is a central part of our overall strategy . while we are still in the early days of our digital transformation , we are making significant multi-year investments in talent acquisition , in-house content creation capabilities and product management systems that will fuel our e-commerce efforts . this , together with the dedication across each of our divisions to drive momentum in this rapidly expanding channel , will allow for expansion of our e-commerce footprint . the economics of developing , producing , launching , supporting and discontinuing products impact the timing of our sales and operating performance each period . in addition , as product life cycles shorten , results are driven primarily by successfully developing , introducing and marketing new , innovative products . we are continuing to improve our innovation process , aiming to introduce bigger , more impactful innovations while reducing time-to-market . we also support new and established products through our focus on strategic advertising and merchandising , brand repositioning , innovation and in-store execution . certain market segments and geographies in which we compete generally continue to grow moderately . while luxury fragrances and skin care categories are experiencing strong growth , low single digit declines in the retail nail , retail hair , mass body care , mass color cosmetics and mass fragrances categories in the u.s. and certain key countries in western europe continue to impact our business and financial results . we experienced strong growth in our luxury segment supported by strong category trends and our successful brand innovation , steady growth in our professional beauty segment and uneven performance in our consumer beauty segment . emerging markets have been a source of growth in many of our categories in fiscal 2018. we are also continuing to expand our presence in faster-growth emerging markets , by building strong relationships with key retailers in those markets and leveraging our broad portfolio of brands . transformation of our business following our acquisition of the p & g beauty business , we have been focused on integrating , restructuring and optimizing the combined organization . in fiscal 2018 , we successfully exited the third and final stage of our transition services agreement with p & g , following the successful exit of the first two stages in fiscal 2017. we also instituted new initiatives to deliver meaningful , sustainable expense and cost management to address increases in our fixed cost base as a combined company . the last step of the integration includes the completion of the one order , one invoice , one shipment program which will make coty a fully integrated company , able to sell , ship and invoice all of our brands in a seamless way for our customers , allowing significant simplification for our employees and increasing our scalability potential . further , in connection with the acquisition of the p & g beauty business , we are implementing our plan through which we continue to target realizing approximately $ 750 million of synergies driven by cost , procurement , supply chain and selling , general , and administrative savings through fiscal 2020. we realized cumulative synergies of approximately 20 % in fiscal 2017 , 50 % though fiscal 2018 , and we expect to cumulatively generate approximately 80 % of the net synergies throughout fiscal 2019 and the full $ 750 million through fiscal 2020. a milestone in our transformation was the completion in fiscal 2018 of our announced portfolio rationalization program and , as a result , we divested or terminated 14 brands including : clc , celine dion , cutex , esprit , guess , halle berry , jlo , lady gaga , love2love , playboy , summer and tim mcgraw , which were reported in our consumer beauty segment and cerruti and chopard , which were reported in our luxury segment . in addition , we continuously evaluate strategic transactions including acquisitions , divestitures and new brand licenses to optimize our portfolio . during fiscal 2018 , we acquired the exclusive long-term global license rights and other related assets for the burberry beauty luxury fragrances , cosmetics and skincare business ( the โ burberry beauty business โ ) , which is managed within the luxury division . we will continue to opportunistically look at strategic opportunities as and when they arise , subject to our strict financial discipline and deleveraging objectives . performance 29 in fiscal 2018 , solid operating performance was driven by steady progress on business integration . modest revenue growth was driven by strong performance in luxury , due to impactful innovations across the major brands , and solid growth in professional beauty supported by growth in both hair and nail categories , offset by declines in consumer beauty revenues as we made gradual progress towards stabilizing performance . in the fourth fiscal quarter , strong performance from luxury and solid growth in professional beauty were offset by declines in consumer beauty , where a number of temporary supply chain disruptions impacted revenues . story_separator_special_tag the increase in net revenues in fiscal 2017 reflects an increase in unit volume of 75 % and a positive price and mix impact of 4 % , partially offset by a negative foreign currency exchange translations impact of 3 % . excluding the impacts of the acquisitions and divestitures , total net revenues in fiscal 2017 decreased 8 % reflecting a negative price and mix impact of 4 % , a decrease in unit volume of 3 % and a negative foreign currency exchange translations impact of 1 % . 33 net revenues by segment replace_table_token_4_th luxury in fiscal 2018 , net revenues from the luxury segment increased 25 % , or $ 643.9 to $ 3,210.5 from $ 2,566.6 in fiscal 2017 , primarily due to the impact of the acquisitions . the incremental net revenues in the first quarter of fiscal 2018 from the acquisition of the p & g beauty business in the prior year comprised 12 % of the total percentage change in net revenues for the segment , and the acquisition of the burberry beauty business comprised 3 % of the total percentage change in net revenues for the segment in fiscal 2018 as compared to fiscal 2017. excluding the impacts of the acquisitions and divestitures , net revenues from the luxury segment increased 10 % , or $ 267.6 , to $ 2,828.6 in fiscal 2018 from $ 2,561.0 in fiscal 2017 , reflecting a positive price and mix impact of 5 % , a positive foreign currency exchange translations impact of 4 % , and an increase in unit volume of 1 % . this increase in net revenues primarily reflects : ( i ) the successful launches of tiffany & co . and gucci bloom and ( ii ) higher net revenues from calvin klein due to the launch of obsessed by calvin klein and from ck one due to the launch of a successful campaign in the third quarter of fiscal 2018. fiscal 2018 revenues were positively impacted by innovative products across our philosophy , marc jacobs and chloe brands . there was also solid growth in fiscal 2018 , compared to fiscal 2017 , of luxury brands sold in china and the middle east as well as an increased contribution of luxury brands sold through e-commerce channels . in fiscal 2017 , net revenues from the luxury segment increased 40 % or $ 730.0 to $ 2,566.6 from $ 1,836.6 in fiscal 2016 , primarily due to the impact of the acquisitions . the acquisition of the p & g beauty business comprised 33 % of the total net revenues for the segment . hugo boss and gucci fragrances were the largest contributors to net revenues as a result of the acquisition of the p & g beauty business . excluding the impacts of the acquisitions and divestitures , net revenues from the luxury segment decreased 6 % , or $ 110.0 , to $ 1,726.6 in fiscal 2017 from $ 1,836.6 in fiscal 2016 , reflecting a negative price and mix impact of 3 % , a decrease in unit volume of 2 % , and a negative foreign currency exchange translations impact of 1 % . this decrease primarily reflects lower net revenues from calvin klein and marc jacobs fragrances . net revenues from calvin klein declined due to : ( i ) our strategic efforts to rationalize wholesale distribution by reducing the amount of product diversion to the value and mass channels resulting in a lower volume and ( ii ) a higher level of discounting and promotional activities resulting in a negative price and mix . the decline in marc jacobs primarily reflects declines in volumes from existing product lines and a lower level of launch activity in fiscal 2017 as compared to fiscal 2016. consumer beauty in fiscal 2018 , net revenues from the consumer beauty segment increased 16 % , or $ 579.9 , to $ 4,268.1 from $ 3,688.2 in fiscal 2017 , due to the impact of the acquisitions . the incremental net revenues in the first quarter of fiscal 2018 from the acquisition of the p & g beauty business in the prior year comprised 11 % of the total percentage change in net revenues for the segment , and the acquisition of younique comprised 6 % of the total percentage change in net revenues for the segment in fiscal 2018 compared to fiscal 2017. excluding the impacts of the acquisitions and the divestitures , net revenues from the consumer beauty segment decreased 1 % , or $ 21.2 , to $ 3,622.3 in fiscal 2018 from $ 3,643.5 in fiscal 2017 , primarily reflecting a decrease in unit volume of 7 % , a positive foreign currency exchange translations impact of 3 % , and a positive price and mix impact of 3 % . the change in net revenues primarily reflects : ( i ) a decline in net revenues from covergirl due to declines in existing product lines along with increased markdowns and trade spending . despite declines in the brand in fiscal 2018 , we have launched a multi-year brand turnaround strategy for covergirl in north america in the second quarter of fiscal 2018 . ( ii ) lower net revenues from sally hansen and playboy due to less innovation in the first half of fiscal 2018 and declines in existing product lines . ( iii ) lower net revenues from risque due to a reduction in volume in brazil in response to decreased sales discounts in the second half of fiscal 2018 and trade inventory correction . however , we continue to experience market share growth . ( iv ) lower net revenues from astor due to shelf-space losses in germany . 34 these decreases were partially offset by : ( i ) higher net revenues from nautica primarily driven by increased volume through value distribution channels . ( ii ) higher net revenues from
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2,549 | during 2018 , several segments of the recreational boating industry improved due to a stable consumer confidence and financing environment for dealers and consumers , although aggregate sales of the boating segments in which marine products operates were approximately equal to sales during 2017. overall industry retail sales of outboard recreational boats in 2018 were equal to sales in 2017 , and sterndrive unit sales continued to decline . our net sales improved in 2018 compared to 2017 due to a favorable model mix which yielded higher average selling prices . unit sales in 2018 increased by less than one percent compared to 2017. management will continue to monitor retail demand among the various segments in the recreational boat market , the actions of our competitors , dealer inventory levels and the availability of dealer and consumer financing for the purchase of our products and adjust our production levels as deemed appropriate . we periodically monitor our market share in the 19 to 34 foot sterndrive category as one indicator of the success of our strategies and the market 's acceptance of our products . for the 12 month period ended september 30 , 2018 ( latest data available to us ) , chaparral 's market share in the 19 to 34 foot sterndrive category was 16.1 percent compared to 16.8 percent during the same period in 2017 ; the highest market share in this category during both periods . for the 12 month period ended september 30 , 2018 , robalo 's share of the 16 to 31 foot outboard sport fishing boat market was 6.2 percent , the second highest market share within this category . marine products corporation 's share of the outboard recreational market , including both robalo and chaparral 's outboard units , was 7.1 percent of the total market within its size range for the 12 months ended september 30 , 2018. the company held the third highest share among manufacturers of various outboard brands during the period . we will continue to monitor our market share and believe it to be important , but we believe that maximizing profitability takes precedence over growing our market share . furthermore , as we continue to expand the breadth of our product offerings within our core category and new categories , we consider our overall market share across the various powerboat categories to be of greater importance to the long-term health of our company than our market share within any specific type of recreational boat . 20 outlook we believe that recreational boating retail demand in many segments of the industry will remain stable during 2019. positive factors influencing recreational boat demand include strong consumer confidence and a robust u.s. employment market , as well as a favorable financing environment for boat dealers and consumers . these positive factors are offset by potential weakness in residential real estate markets , the negative impact of recent stock market fluctuations , and slightly higher interest rates . these weaknesses may have impacted attendance at the 2019 retail boat shows , which has been slightly lower in 2019 than in 2018. although industry wide retail boat sales remain lower than they were prior to the 2008 financial crisis , retail boat sales have increased each year since 2012. fluctuations in fuel prices can impact our industry , although they were relatively stable in 2018 and we do not believe that they have recently impacted sales . in general , the overall cost of boat ownership has increased , especially in the sterndrive recreational boat market segment , which comprises approximately 38 percent of the company 's unit sales . the higher cost of boat ownership discourages consumers from purchasing recreational boats . for a number of years , marine products as well as other boat manufacturers have been improving their customer service capabilities , marketing strategies and sales promotions in order to attract more consumers to recreational boating as well as improve consumers ' boating experiences . the company provides financial incentives to its dealers for receiving favorable customer satisfaction surveys . in addition , the recreational boating industry conducts a promotional program which involves advertising and consumer targeting efforts , as well as other activities designed to increase the potential consumer market for pleasure boats . many manufacturers , including marine products , participate in this program . management believes that these efforts have incrementally benefited the industry and marine products . as in past years , marine products enhanced its selection of models for the 2019 model year which began on july 1 , 2018. we continue to emphasize the surf series line of chaparral models , our larger chaparral ssx models , and our larger robalo models . we believe that these boat models will expand our customer base , and leverage our strong dealer network and reputation for quality and styling . during 2018 we expanded our nationally advertised fixed retail pricing to include more of our models . we plan to continue to develop and produce additional new products for subsequent model years . marine products expects to benefit from the tax cuts and jobs act ( โ tax reform โ ) enacted during the fourth quarter of 2017. marine products estimates that its annual effective tax rate for 2019 will be in the low 20 percent range . since marine products believes that it will generate continued positive financial results , the company believes that it will benefit from this lower tax rate through increased earnings in 2019. our financial results for 2019 will depend on a number of factors , including interest rates , consumer confidence , the availability of credit to our dealers and consumers , fuel costs , the continued acceptance of our new products in the recreational boating market , our ability to compete in the competitive pleasure boating industry , the availability of labor and certain costs of our raw materials and key components . story_separator_special_tag while we focus on high quality manufacturing programs and processes , including actively monitoring the quality of our component suppliers and managing the dealer and customer service warranty experience and reimbursements , our estimated warranty obligation is based upon the warranty terms and the company 's enforcement of those terms over time , manufacturing defects or issues , repair costs , and the volume and mix of boat sales . the estimate of warranty costs is regularly analyzed and is adjusted based on several factors including the actual claims that occur . warranty expense as a percentage of net sales was 1.4 percent in 2018 , 1.3 percent in 2017 , and 1.7 percent in 2016. a 0.10 percentage point increase in the estimated warranty expense as a percentage of net sales during 2018 would have increased selling , general and administrative expenses and reduced operating income by approximately $ 0.3 million . income taxes - the effective income tax rate was 20.1 percent in 2018 , 35.6 percent in 2017 , and 28.5 percent in 2016. the effective tax rates vary due to changes in estimates of future taxable income , fluctuations in the tax jurisdictions in which the earnings and deductions are realized , variations in the relationship of tax-exempt income or losses to income before taxes and favorable or unfavorable adjustments to estimated tax liabilities related to proposed or probable assessments . as a result , the effective tax rate may fluctuate significantly on a quarterly or annual basis . the effective tax rate for 2018 reflects the change in federal income tax rates from 35 % to 21 % , as enacted by the tax cuts and jobs act ( tcja ) , as well as other beneficial adjustments . the company establishes a valuation allowance against the carrying value of deferred tax assets when it is determined that it is more likely than not that the asset will not be realized through future taxable income . such amounts are charged to earnings in the period the determination is made . likewise , if it is later determined that it is more likely than not that the net deferred tax assets would be realized , the applicable portion of the previously provided valuation allowance is reversed . the company considers future market growth , forecasted earnings , future taxable income , the mix of earnings in the jurisdictions in which the company operates , and prudent and feasible tax planning strategies in determining the need for a valuation allowance . the company calculates the current and deferred tax provision based on estimates and assumptions that could differ from the actual results reflected in income tax returns filed during the subsequent year . adjustments based on filed tax returns are recorded when identified , which is generally in the third quarter of the subsequent year for u.s. federal and state provisions . deferred tax liabilities and assets are determined based on the differences between the financial and tax bases of assets and liabilities using enacted tax rates in effect in the year the differences are expected to reverse . in 2017 , the company revalued its deferred tax assets and liabilities to reflect the change in federal income tax rates , as enacted by the tcja . 26 the amount of income taxes the company pays is subject to ongoing audits by federal and state tax authorities , which often result in proposed assessments . our estimate for the potential outcome for any uncertain tax issue is highly judgmental . the company believes it has adequately provided for any reasonably foreseeable outcome related to these matters . however , future results may include favorable or unfavorable adjustments to estimated tax liabilities in the period the assessments are made or resolved or when statutes of limitation on potential assessments expire . additionally , the jurisdictions in which earnings or deductions are realized may differ from current estimates . impact of recent accounting pronouncements : during the year ended december 31 , 2018 , the financial accounting standards board ( fasb ) issued the following accounting standards updates ( asus ) : recently adopted accounting pronouncements : ยท accounting standards update ( asu ) no . 2014-09 , revenue from contacts with customers ( topic 606 ) - on january 1 , 2018 , the company adopted asc 606 , revenue from contracts with customers and all the related amendments ( โ new revenue standard โ ) for all contracts using the modified retrospective method , with no cumulative-effect adjustment to retained earnings upon adoption . the comparative information has not been restated and continues to be reported under the accounting standards that were in effect for those periods . the adoption of the new revenue standard did not have a material impact on our consolidated financial statements . see note 2 net sales in the notes to consolidated financial statements for expanded disclosures . ยท asu no . 2016-01 , financial instruments โ overall ( subtopic 825-10 ) : recognition and measurement of financial assets and financial liabilities . the amendments make targeted improvements to existing u.s. gaap and affects accounting for equity investments and financial instruments and liabilities and related disclosures . the company adopted these provisions in the first quarter of 2018 and the adoption did not have a material impact on its consolidated financial statements . ยท asu no . 2016-15 , statement of cash flows ( topic 230 ) : classification of certain cash receipts and cash payments . the amendments provide guidance in the presentation and classification of certain cash receipts and cash payments in the statement of cash flows including debt prepayment or debt extinguishment costs , contingent consideration payments made after a business combination , proceeds from the settlement of insurance claims , proceeds from the settlement of corporate-owned life insurance policies , and distributions received from equity method investees . the company adopted these provisions in the first quarter of
| cash and cash flows the company 's cash and cash equivalents were $ 8.7 million at december 31 , 2018 , $ 7.7 million at december 31 , 2017 and $ 2.6 million at december 31 , 2016. in addition , the aggregate of short-term and long-term marketable securities was $ 7.7 million at december 31 , 2018 , $ 13.0 million at december 31 , 2017 and $ 9.3 million at december 31 , 2016. the following table sets forth the historical cash flows for the twelve months ended december 31 : replace_table_token_4_th 2018 cash provided by operating activities decreased by $ 6.9 million in 2018 compared to 2017. this decrease was primarily due to a net unfavorable change in working capital partially offset by an increase in net income . the major components of the net unfavorable change in working capital were as follows : an unfavorable change in other accrued expenses of $ 2.3 million due primarily to a decrease in accrued sales discounts ; an unfavorable change of $ 13.2 million in inventories primarily due to the timing of inventory purchases of key components and the timing of finished boats shipments ; and a $ 1.1 million favorable change in accounts receivable due to the timing of payments . cash provided by investing activities was $ 3.1 million in 2018 compared to $ 6.5 million used for investing activities in 2017. the increase in cash provided by investing activities in 2018 is primarily due to net sales of marketable securities coupled with a decrease in capital expenditures . cash used for financing activities increased $ 6.7 million in 2018 primarily due to an increase in cash paid for open market share repurchases , coupled with an increase in regular and special cash dividends paid during 2018 .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash and cash flows the company 's cash and cash equivalents were $ 8.7 million at december 31 , 2018 , $ 7.7 million at december 31 , 2017 and $ 2.6 million at december 31 , 2016. in addition , the aggregate of short-term and long-term marketable securities was $ 7.7 million at december 31 , 2018 , $ 13.0 million at december 31 , 2017 and $ 9.3 million at december 31 , 2016. the following table sets forth the historical cash flows for the twelve months ended december 31 : replace_table_token_4_th 2018 cash provided by operating activities decreased by $ 6.9 million in 2018 compared to 2017. this decrease was primarily due to a net unfavorable change in working capital partially offset by an increase in net income . the major components of the net unfavorable change in working capital were as follows : an unfavorable change in other accrued expenses of $ 2.3 million due primarily to a decrease in accrued sales discounts ; an unfavorable change of $ 13.2 million in inventories primarily due to the timing of inventory purchases of key components and the timing of finished boats shipments ; and a $ 1.1 million favorable change in accounts receivable due to the timing of payments . cash provided by investing activities was $ 3.1 million in 2018 compared to $ 6.5 million used for investing activities in 2017. the increase in cash provided by investing activities in 2018 is primarily due to net sales of marketable securities coupled with a decrease in capital expenditures . cash used for financing activities increased $ 6.7 million in 2018 primarily due to an increase in cash paid for open market share repurchases , coupled with an increase in regular and special cash dividends paid during 2018 .
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Suspicious Activity Report : during 2018 , several segments of the recreational boating industry improved due to a stable consumer confidence and financing environment for dealers and consumers , although aggregate sales of the boating segments in which marine products operates were approximately equal to sales during 2017. overall industry retail sales of outboard recreational boats in 2018 were equal to sales in 2017 , and sterndrive unit sales continued to decline . our net sales improved in 2018 compared to 2017 due to a favorable model mix which yielded higher average selling prices . unit sales in 2018 increased by less than one percent compared to 2017. management will continue to monitor retail demand among the various segments in the recreational boat market , the actions of our competitors , dealer inventory levels and the availability of dealer and consumer financing for the purchase of our products and adjust our production levels as deemed appropriate . we periodically monitor our market share in the 19 to 34 foot sterndrive category as one indicator of the success of our strategies and the market 's acceptance of our products . for the 12 month period ended september 30 , 2018 ( latest data available to us ) , chaparral 's market share in the 19 to 34 foot sterndrive category was 16.1 percent compared to 16.8 percent during the same period in 2017 ; the highest market share in this category during both periods . for the 12 month period ended september 30 , 2018 , robalo 's share of the 16 to 31 foot outboard sport fishing boat market was 6.2 percent , the second highest market share within this category . marine products corporation 's share of the outboard recreational market , including both robalo and chaparral 's outboard units , was 7.1 percent of the total market within its size range for the 12 months ended september 30 , 2018. the company held the third highest share among manufacturers of various outboard brands during the period . we will continue to monitor our market share and believe it to be important , but we believe that maximizing profitability takes precedence over growing our market share . furthermore , as we continue to expand the breadth of our product offerings within our core category and new categories , we consider our overall market share across the various powerboat categories to be of greater importance to the long-term health of our company than our market share within any specific type of recreational boat . 20 outlook we believe that recreational boating retail demand in many segments of the industry will remain stable during 2019. positive factors influencing recreational boat demand include strong consumer confidence and a robust u.s. employment market , as well as a favorable financing environment for boat dealers and consumers . these positive factors are offset by potential weakness in residential real estate markets , the negative impact of recent stock market fluctuations , and slightly higher interest rates . these weaknesses may have impacted attendance at the 2019 retail boat shows , which has been slightly lower in 2019 than in 2018. although industry wide retail boat sales remain lower than they were prior to the 2008 financial crisis , retail boat sales have increased each year since 2012. fluctuations in fuel prices can impact our industry , although they were relatively stable in 2018 and we do not believe that they have recently impacted sales . in general , the overall cost of boat ownership has increased , especially in the sterndrive recreational boat market segment , which comprises approximately 38 percent of the company 's unit sales . the higher cost of boat ownership discourages consumers from purchasing recreational boats . for a number of years , marine products as well as other boat manufacturers have been improving their customer service capabilities , marketing strategies and sales promotions in order to attract more consumers to recreational boating as well as improve consumers ' boating experiences . the company provides financial incentives to its dealers for receiving favorable customer satisfaction surveys . in addition , the recreational boating industry conducts a promotional program which involves advertising and consumer targeting efforts , as well as other activities designed to increase the potential consumer market for pleasure boats . many manufacturers , including marine products , participate in this program . management believes that these efforts have incrementally benefited the industry and marine products . as in past years , marine products enhanced its selection of models for the 2019 model year which began on july 1 , 2018. we continue to emphasize the surf series line of chaparral models , our larger chaparral ssx models , and our larger robalo models . we believe that these boat models will expand our customer base , and leverage our strong dealer network and reputation for quality and styling . during 2018 we expanded our nationally advertised fixed retail pricing to include more of our models . we plan to continue to develop and produce additional new products for subsequent model years . marine products expects to benefit from the tax cuts and jobs act ( โ tax reform โ ) enacted during the fourth quarter of 2017. marine products estimates that its annual effective tax rate for 2019 will be in the low 20 percent range . since marine products believes that it will generate continued positive financial results , the company believes that it will benefit from this lower tax rate through increased earnings in 2019. our financial results for 2019 will depend on a number of factors , including interest rates , consumer confidence , the availability of credit to our dealers and consumers , fuel costs , the continued acceptance of our new products in the recreational boating market , our ability to compete in the competitive pleasure boating industry , the availability of labor and certain costs of our raw materials and key components . story_separator_special_tag while we focus on high quality manufacturing programs and processes , including actively monitoring the quality of our component suppliers and managing the dealer and customer service warranty experience and reimbursements , our estimated warranty obligation is based upon the warranty terms and the company 's enforcement of those terms over time , manufacturing defects or issues , repair costs , and the volume and mix of boat sales . the estimate of warranty costs is regularly analyzed and is adjusted based on several factors including the actual claims that occur . warranty expense as a percentage of net sales was 1.4 percent in 2018 , 1.3 percent in 2017 , and 1.7 percent in 2016. a 0.10 percentage point increase in the estimated warranty expense as a percentage of net sales during 2018 would have increased selling , general and administrative expenses and reduced operating income by approximately $ 0.3 million . income taxes - the effective income tax rate was 20.1 percent in 2018 , 35.6 percent in 2017 , and 28.5 percent in 2016. the effective tax rates vary due to changes in estimates of future taxable income , fluctuations in the tax jurisdictions in which the earnings and deductions are realized , variations in the relationship of tax-exempt income or losses to income before taxes and favorable or unfavorable adjustments to estimated tax liabilities related to proposed or probable assessments . as a result , the effective tax rate may fluctuate significantly on a quarterly or annual basis . the effective tax rate for 2018 reflects the change in federal income tax rates from 35 % to 21 % , as enacted by the tax cuts and jobs act ( tcja ) , as well as other beneficial adjustments . the company establishes a valuation allowance against the carrying value of deferred tax assets when it is determined that it is more likely than not that the asset will not be realized through future taxable income . such amounts are charged to earnings in the period the determination is made . likewise , if it is later determined that it is more likely than not that the net deferred tax assets would be realized , the applicable portion of the previously provided valuation allowance is reversed . the company considers future market growth , forecasted earnings , future taxable income , the mix of earnings in the jurisdictions in which the company operates , and prudent and feasible tax planning strategies in determining the need for a valuation allowance . the company calculates the current and deferred tax provision based on estimates and assumptions that could differ from the actual results reflected in income tax returns filed during the subsequent year . adjustments based on filed tax returns are recorded when identified , which is generally in the third quarter of the subsequent year for u.s. federal and state provisions . deferred tax liabilities and assets are determined based on the differences between the financial and tax bases of assets and liabilities using enacted tax rates in effect in the year the differences are expected to reverse . in 2017 , the company revalued its deferred tax assets and liabilities to reflect the change in federal income tax rates , as enacted by the tcja . 26 the amount of income taxes the company pays is subject to ongoing audits by federal and state tax authorities , which often result in proposed assessments . our estimate for the potential outcome for any uncertain tax issue is highly judgmental . the company believes it has adequately provided for any reasonably foreseeable outcome related to these matters . however , future results may include favorable or unfavorable adjustments to estimated tax liabilities in the period the assessments are made or resolved or when statutes of limitation on potential assessments expire . additionally , the jurisdictions in which earnings or deductions are realized may differ from current estimates . impact of recent accounting pronouncements : during the year ended december 31 , 2018 , the financial accounting standards board ( fasb ) issued the following accounting standards updates ( asus ) : recently adopted accounting pronouncements : ยท accounting standards update ( asu ) no . 2014-09 , revenue from contacts with customers ( topic 606 ) - on january 1 , 2018 , the company adopted asc 606 , revenue from contracts with customers and all the related amendments ( โ new revenue standard โ ) for all contracts using the modified retrospective method , with no cumulative-effect adjustment to retained earnings upon adoption . the comparative information has not been restated and continues to be reported under the accounting standards that were in effect for those periods . the adoption of the new revenue standard did not have a material impact on our consolidated financial statements . see note 2 net sales in the notes to consolidated financial statements for expanded disclosures . ยท asu no . 2016-01 , financial instruments โ overall ( subtopic 825-10 ) : recognition and measurement of financial assets and financial liabilities . the amendments make targeted improvements to existing u.s. gaap and affects accounting for equity investments and financial instruments and liabilities and related disclosures . the company adopted these provisions in the first quarter of 2018 and the adoption did not have a material impact on its consolidated financial statements . ยท asu no . 2016-15 , statement of cash flows ( topic 230 ) : classification of certain cash receipts and cash payments . the amendments provide guidance in the presentation and classification of certain cash receipts and cash payments in the statement of cash flows including debt prepayment or debt extinguishment costs , contingent consideration payments made after a business combination , proceeds from the settlement of insurance claims , proceeds from the settlement of corporate-owned life insurance policies , and distributions received from equity method investees . the company adopted these provisions in the first quarter of
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2,550 | loans are considered impaired when , based on current information and events , it is probable that the bank will be unable to collect all amounts due according to the original terms of the loan agreement . the collection of all amounts due according to contractual terms means that both the contractual interest and principal payments of a loan will be collected as scheduled in the loan agreement . impaired loans are measured based on the present value of expected future cash flows discounted at the loan 's effective interest rate , or , as a practical expedient , at the loan 's observable market price , or the fair value of the underlying collateral . the fair value of collateral , reduced by costs to sell on a discounted basis , is used if a loan is collateral-dependent . investment securities impairment periodically , we may need to assess whether there have been any events or economic circumstances to indicate that a security on which there is an unrealized loss is impaired on an other-than-temporary basis . in any such instance , we would consider many factors , including the severity and duration of the impairment , our intent and ability to hold the security for a period of time sufficient for a recovery in value , recent events specific to the issuer or industry , and for debt securities , external credit ratings and recent downgrades . securities on which there is an unrealized loss that is deemed to be other-than-temporary are written down to fair value , with the write-down recorded as a realized loss in securities gains ( losses ) . other real estate owned other real estate owned ( โ oreo โ ) , consisting of assets that have been acquired through foreclosure , is recorded at the lower of cost or estimated fair value less the estimated cost of disposition . fair value is based on independent appraisals and other relevant factors . other real estate owned is revalued on an annual basis or more often if market conditions necessitate . valuation adjustments required at foreclosure are charged to the alll . subsequent to foreclosure , losses on the periodic revaluation of the property are charged to net income as oreo expense . significant judgments and complex estimates are required in estimating the fair value of other real estate , and the period of time within which such estimates can be considered current is significantly shortened during periods of market volatility , as experienced in recent years . as a result , the net proceeds realized from sales transactions could differ significantly from appraisals , comparable sales , and other estimates used to determine the fair value of other real estate . goodwill and other identifiable intangible assets other identifiable intangible assets include a core deposit intangible recorded in connection with the acquisition of metro . the core deposit intangible is being amortized over 7 years and the estimated useful life is periodically reviewed for reasonableness . the company has recorded $ 13.6 million of goodwill in connection with the acquisition of metro bancshares , inc. the company tests its goodwill for impairment annually unless interim events or circumstances make it more likely than not that an impairment loss has occurred . impairment is defined as the amount by which the implied fair value of the goodwill is less than the goodwill 's carrying value . impairment losses , if incurred , would be charged to operating expense . for the purposes of evaluating goodwill , the company has determined that it operates only one reporting unit . results of operations net income net income available to common stockholders was $ 81.4 million for the year ended december 31 , 2016 , compared to $ 63.3 million for the year ended december 31 , 2015. this increase in net income is primarily attributable to an increase in net interest income , which increased $ 24.8 million , or 15.3 % , to $ 187.1 million in 2016 from $ 162.3 million in 2015. noninterest income increased $ 4.5 million , or 33.1 % , to $ 18.1 million in 2016 from $ 13.6 million in 2015. noninterest expense increased by $ 7.0 million , or 9.5 % , to $ 81.0 million in 2016 from $ 74.0 million in 2015. basic and diluted net income per common share were $ 1.55 and $ 1.52 , respectively , for the year ended december 31 , 2016 , compared to $ 1.23 and $ 1.20 , respectively , for the year ended december 31 , 2015. return on average assets was 1.42 % in 2016 , compared to 1.38 % in 2015 , and return on average stockholders ' equity was 16.64 % in 2016 , compared to 14.56 % in 2015 . 40 net income available to common stockholders for the year ended december 31 , 2015 was $ 63.3 million , compared to $ 51.9 million for the year ended december 31 , 2014. this increase in net income is primarily attributable to an increase in net interest income , which increased $ 31.7 million , or 24.3 % , to $ 162.3 million in 2015 from $ 130.6 million in 2014. noninterest income increased $ 2.6 million , or 23.6 % , to $ 13.6 million in 2015 from $ 11.0 million in 2014. noninterest expense increased by $ 16.7 million , or 29.1 % , to $ 74.0 million in 2015 from $ 57.3 million in 2014. basic and diluted net income per common share were $ 1.23 and $ 1.20 , respectively , for the year ended december 31 , 2015 , compared to $ 1.09 and $ 1.05 , respectively , for the year ended december 31 , 2014. return on average assets was 1.38 % in 2015 , compared to 1.39 % in 2014 , and return on average stockholders ' equity was 14.56 % in 2015 , compared story_separator_special_tag income tax expense income tax expense was $ 29.3 million for the year ended december 31 , 2016 compared to $ 25.5 million in 2015 and $ 21.6 million in 2014. our effective tax rates for 2016 , 2015 and 2014 were 26.47 % , 28.61 % and 29.20 % , respectively . the decrease in the effective tax rate for 2015 and 2016 primarily relates to historic rehabilitation tax credits recognized in those years . our primary permanent differences are related to tax exempt income on debt securities , state income tax benefit on real estate investment trust dividends , various qualifying tax credits and change in cash surrender value of bank-owned life insurance . we have invested $ 102.5 million in bank-owned life insurance for certain named officers of the bank . the periodic increases in cash surrender value of those policies are tax exempt and therefore contribute to a larger permanent difference between book income and taxable income . we own real estate investment trusts for the purpose of holding and managing participations in residential mortgages and commercial real estate loans originated by the bank . the trusts are majority-owned subsidiaries of a trust holding company , which in turn is a wholly-owned subsidiary of the bank . the trusts earn interest income on the loans they hold and incur operating expenses related to their activities . they pay their net earnings , in the form of dividends , to the bank , which receives a deduction for state income taxes . 45 financial condition assets total assets at december 31 , 2016 , were $ 6.4 billion , an increase of $ 1.3 billion , or 25.5 % , over total assets of $ 5.1 billion at december 31 , 2015. average assets for the year ended december 31 , 2016 were $ 5.7 billion , an increase of $ 1.1 billion , or 23.9 % , over average assets of $ 4.6 billion for the year ended december 31 , 2015. loan growth was the primary reason for the increase in ending and average total assets . year-end 2016 loans were $ 4.9 billion , up $ 0.7 billion , or 16.7 % , over year-end 2015 total loans of $ 4.2 billion . total assets at december 31 , 2015 , were $ 5.1 billion , an increase of $ 1.0 billion , or 24.4 % , over total assets of $ 4.1 billion at december 31 , 2014. average assets for the year ended december 31 , 2015 were $ 4.6 billion , an increase of $ 0.8 billion , or 21.1 % , over average assets of $ 3.8 billion for the year ended december 31 , 2014. loan growth was the primary reason for the increase in ending and average total assets . year-end 2015 loans were $ 4.2 billion , up $ 0.8 billion , or 23.5 % , over year-end 2014 total loans of $ 3.4 billion . earning assets include loans , securities , short-term investments and bank-owned life insurance contracts . we maintain a higher level of earning assets in our business model than do our peers because we allocate fewer of our resources to facilities , atms , cash and due-from-bank accounts used for transaction processing . earning assets at december 31 , 2016 were $ 6.2 billion , or 96.9 % of total assets of $ 6.4 billion . earning assets at december 31 , 2015 were $ 5.0 billion , or 98.0 % of total assets of $ 5.1 billion . we believe this ratio is expected to generally continue at these levels , although it may be affected by economic factors beyond our control . investment portfolio we view the investment portfolio as a source of income and liquidity . our investment strategy is to accept a lower immediate yield in the investment portfolio by targeting shorter term investments . our investment policy provides that no more than 60 % of our total investment portfolio should be composed of municipal securities . at december 31 , 2016 , mortgage-backed securities represented 51 % of the investment portfolio , state and municipal securities represented 30 % of the investment portfolio , u.s. treasury and government agencies represented 9 % of the investment portfolio , and corporate debt represented 10 % of the investment portfolio . all of our investments in mortgage-backed securities are pass-through mortgage-backed securities . we do not currently , and did not have at december 31 , 2016 , any structured investment vehicles or any private-label mortgage-backed securities . the amortized cost of securities in our portfolio totaled $ 485.9 million at december 31 , 2016 , compared to $ 365.7 million at december 31 , 2015. the following table presents the amortized cost of securities available for sale and held to maturity by type at december 31 , 2016 , 2015 and 2014. replace_table_token_10_th the following table presents the amortized cost of our securities as of december 31 , 2016 by their stated maturities ( this maturity schedule excludes security prepayment and call features ) , as well as the taxable equivalent yields for each maturity range . 46 replace_table_token_11_th ( 1 ) yields are presented on a fully-taxable equivalent basis using a tax rate of 35 % . at december 31 , 2016 , we had $ 160.4 million in federal funds sold , compared with $ 34.8 million at december 31 , 2015. at year-end 2016 , there were no holdings of securities of any issuer , other than the u.s. government and its agencies , in an amount greater than 10 % of stockholders ' equity . the objective of our investment policy is to invest funds not otherwise needed to meet our loan demand to earn the maximum return , yet still maintain sufficient liquidity to meet fluctuations in our loan demand and deposit structure . in doing so , we balance the market and credit
| debt securities : taxable 988 24 1,012 174 ( 306 ) ( 132 ) tax-exempt ( 15 ) ( 398 ) ( 413 ) 452 ( 333 ) 119 total debt securities 973 ( 374 ) 599 626 ( 639 ) ( 13 ) federal funds sold 788 91 879 ( 86 ) 55 ( 31 ) equity securities 1 34 35 28 24 52 interest-bearing balances with banks 1,317 724 2,041 56 58 114 total interest-earning assets 32,617 243 32,860 35,101 253 35,354 interest-bearing liabilities : interest-bearing demand deposits 354 516 870 266 96 362 savings 21 7 28 32 2 34 money market 2,671 1,406 4,077 1,211 316 1,527 time deposits 343 ( 44 ) 299 793 ( 241 ) 552 total interest-bearing deposits 3,389 1,885 5,274 2,302 173 2,475 federal funds purchased 703 1,203 1,906 212 81 293 other borrowed funds 941 ( 19 ) 922 911 ( 95 ) 816 total interest-bearing - - - - - - liabilities 5,033 3,069 8,102 3,425 159 3,584 increase in net interest income $ 27,584 $ ( 2,826 ) $ 24,758 $ 31,676 $ 94 $ 31,770 42 in the table above , changes in net interest income are attributable to ( a ) changes in average balances ( volume variance ) , ( b ) changes in rates ( rate variance ) , or ( c ) changes in rate and average balances ( rate/volume variance ) . the volume variance is calculated as the change in average balances times the old rate . the rate variance is calculated as the change in rates times the old average balance . the rate/volume variance is calculated as the change in rates times the change in average balances . the rate/volume variance is allocated on a pro rata basis between the volume variance and the rate variance in the table above . from 2015 to 2016 , we experienced an unfavorable variance relating to the interest rate component because average yields on loans decreased by one basis point , while average rates paid on interest-bearing deposits increased by nine basis points .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```debt securities : taxable 988 24 1,012 174 ( 306 ) ( 132 ) tax-exempt ( 15 ) ( 398 ) ( 413 ) 452 ( 333 ) 119 total debt securities 973 ( 374 ) 599 626 ( 639 ) ( 13 ) federal funds sold 788 91 879 ( 86 ) 55 ( 31 ) equity securities 1 34 35 28 24 52 interest-bearing balances with banks 1,317 724 2,041 56 58 114 total interest-earning assets 32,617 243 32,860 35,101 253 35,354 interest-bearing liabilities : interest-bearing demand deposits 354 516 870 266 96 362 savings 21 7 28 32 2 34 money market 2,671 1,406 4,077 1,211 316 1,527 time deposits 343 ( 44 ) 299 793 ( 241 ) 552 total interest-bearing deposits 3,389 1,885 5,274 2,302 173 2,475 federal funds purchased 703 1,203 1,906 212 81 293 other borrowed funds 941 ( 19 ) 922 911 ( 95 ) 816 total interest-bearing - - - - - - liabilities 5,033 3,069 8,102 3,425 159 3,584 increase in net interest income $ 27,584 $ ( 2,826 ) $ 24,758 $ 31,676 $ 94 $ 31,770 42 in the table above , changes in net interest income are attributable to ( a ) changes in average balances ( volume variance ) , ( b ) changes in rates ( rate variance ) , or ( c ) changes in rate and average balances ( rate/volume variance ) . the volume variance is calculated as the change in average balances times the old rate . the rate variance is calculated as the change in rates times the old average balance . the rate/volume variance is calculated as the change in rates times the change in average balances . the rate/volume variance is allocated on a pro rata basis between the volume variance and the rate variance in the table above . from 2015 to 2016 , we experienced an unfavorable variance relating to the interest rate component because average yields on loans decreased by one basis point , while average rates paid on interest-bearing deposits increased by nine basis points .
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Suspicious Activity Report : loans are considered impaired when , based on current information and events , it is probable that the bank will be unable to collect all amounts due according to the original terms of the loan agreement . the collection of all amounts due according to contractual terms means that both the contractual interest and principal payments of a loan will be collected as scheduled in the loan agreement . impaired loans are measured based on the present value of expected future cash flows discounted at the loan 's effective interest rate , or , as a practical expedient , at the loan 's observable market price , or the fair value of the underlying collateral . the fair value of collateral , reduced by costs to sell on a discounted basis , is used if a loan is collateral-dependent . investment securities impairment periodically , we may need to assess whether there have been any events or economic circumstances to indicate that a security on which there is an unrealized loss is impaired on an other-than-temporary basis . in any such instance , we would consider many factors , including the severity and duration of the impairment , our intent and ability to hold the security for a period of time sufficient for a recovery in value , recent events specific to the issuer or industry , and for debt securities , external credit ratings and recent downgrades . securities on which there is an unrealized loss that is deemed to be other-than-temporary are written down to fair value , with the write-down recorded as a realized loss in securities gains ( losses ) . other real estate owned other real estate owned ( โ oreo โ ) , consisting of assets that have been acquired through foreclosure , is recorded at the lower of cost or estimated fair value less the estimated cost of disposition . fair value is based on independent appraisals and other relevant factors . other real estate owned is revalued on an annual basis or more often if market conditions necessitate . valuation adjustments required at foreclosure are charged to the alll . subsequent to foreclosure , losses on the periodic revaluation of the property are charged to net income as oreo expense . significant judgments and complex estimates are required in estimating the fair value of other real estate , and the period of time within which such estimates can be considered current is significantly shortened during periods of market volatility , as experienced in recent years . as a result , the net proceeds realized from sales transactions could differ significantly from appraisals , comparable sales , and other estimates used to determine the fair value of other real estate . goodwill and other identifiable intangible assets other identifiable intangible assets include a core deposit intangible recorded in connection with the acquisition of metro . the core deposit intangible is being amortized over 7 years and the estimated useful life is periodically reviewed for reasonableness . the company has recorded $ 13.6 million of goodwill in connection with the acquisition of metro bancshares , inc. the company tests its goodwill for impairment annually unless interim events or circumstances make it more likely than not that an impairment loss has occurred . impairment is defined as the amount by which the implied fair value of the goodwill is less than the goodwill 's carrying value . impairment losses , if incurred , would be charged to operating expense . for the purposes of evaluating goodwill , the company has determined that it operates only one reporting unit . results of operations net income net income available to common stockholders was $ 81.4 million for the year ended december 31 , 2016 , compared to $ 63.3 million for the year ended december 31 , 2015. this increase in net income is primarily attributable to an increase in net interest income , which increased $ 24.8 million , or 15.3 % , to $ 187.1 million in 2016 from $ 162.3 million in 2015. noninterest income increased $ 4.5 million , or 33.1 % , to $ 18.1 million in 2016 from $ 13.6 million in 2015. noninterest expense increased by $ 7.0 million , or 9.5 % , to $ 81.0 million in 2016 from $ 74.0 million in 2015. basic and diluted net income per common share were $ 1.55 and $ 1.52 , respectively , for the year ended december 31 , 2016 , compared to $ 1.23 and $ 1.20 , respectively , for the year ended december 31 , 2015. return on average assets was 1.42 % in 2016 , compared to 1.38 % in 2015 , and return on average stockholders ' equity was 16.64 % in 2016 , compared to 14.56 % in 2015 . 40 net income available to common stockholders for the year ended december 31 , 2015 was $ 63.3 million , compared to $ 51.9 million for the year ended december 31 , 2014. this increase in net income is primarily attributable to an increase in net interest income , which increased $ 31.7 million , or 24.3 % , to $ 162.3 million in 2015 from $ 130.6 million in 2014. noninterest income increased $ 2.6 million , or 23.6 % , to $ 13.6 million in 2015 from $ 11.0 million in 2014. noninterest expense increased by $ 16.7 million , or 29.1 % , to $ 74.0 million in 2015 from $ 57.3 million in 2014. basic and diluted net income per common share were $ 1.23 and $ 1.20 , respectively , for the year ended december 31 , 2015 , compared to $ 1.09 and $ 1.05 , respectively , for the year ended december 31 , 2014. return on average assets was 1.38 % in 2015 , compared to 1.39 % in 2014 , and return on average stockholders ' equity was 14.56 % in 2015 , compared story_separator_special_tag income tax expense income tax expense was $ 29.3 million for the year ended december 31 , 2016 compared to $ 25.5 million in 2015 and $ 21.6 million in 2014. our effective tax rates for 2016 , 2015 and 2014 were 26.47 % , 28.61 % and 29.20 % , respectively . the decrease in the effective tax rate for 2015 and 2016 primarily relates to historic rehabilitation tax credits recognized in those years . our primary permanent differences are related to tax exempt income on debt securities , state income tax benefit on real estate investment trust dividends , various qualifying tax credits and change in cash surrender value of bank-owned life insurance . we have invested $ 102.5 million in bank-owned life insurance for certain named officers of the bank . the periodic increases in cash surrender value of those policies are tax exempt and therefore contribute to a larger permanent difference between book income and taxable income . we own real estate investment trusts for the purpose of holding and managing participations in residential mortgages and commercial real estate loans originated by the bank . the trusts are majority-owned subsidiaries of a trust holding company , which in turn is a wholly-owned subsidiary of the bank . the trusts earn interest income on the loans they hold and incur operating expenses related to their activities . they pay their net earnings , in the form of dividends , to the bank , which receives a deduction for state income taxes . 45 financial condition assets total assets at december 31 , 2016 , were $ 6.4 billion , an increase of $ 1.3 billion , or 25.5 % , over total assets of $ 5.1 billion at december 31 , 2015. average assets for the year ended december 31 , 2016 were $ 5.7 billion , an increase of $ 1.1 billion , or 23.9 % , over average assets of $ 4.6 billion for the year ended december 31 , 2015. loan growth was the primary reason for the increase in ending and average total assets . year-end 2016 loans were $ 4.9 billion , up $ 0.7 billion , or 16.7 % , over year-end 2015 total loans of $ 4.2 billion . total assets at december 31 , 2015 , were $ 5.1 billion , an increase of $ 1.0 billion , or 24.4 % , over total assets of $ 4.1 billion at december 31 , 2014. average assets for the year ended december 31 , 2015 were $ 4.6 billion , an increase of $ 0.8 billion , or 21.1 % , over average assets of $ 3.8 billion for the year ended december 31 , 2014. loan growth was the primary reason for the increase in ending and average total assets . year-end 2015 loans were $ 4.2 billion , up $ 0.8 billion , or 23.5 % , over year-end 2014 total loans of $ 3.4 billion . earning assets include loans , securities , short-term investments and bank-owned life insurance contracts . we maintain a higher level of earning assets in our business model than do our peers because we allocate fewer of our resources to facilities , atms , cash and due-from-bank accounts used for transaction processing . earning assets at december 31 , 2016 were $ 6.2 billion , or 96.9 % of total assets of $ 6.4 billion . earning assets at december 31 , 2015 were $ 5.0 billion , or 98.0 % of total assets of $ 5.1 billion . we believe this ratio is expected to generally continue at these levels , although it may be affected by economic factors beyond our control . investment portfolio we view the investment portfolio as a source of income and liquidity . our investment strategy is to accept a lower immediate yield in the investment portfolio by targeting shorter term investments . our investment policy provides that no more than 60 % of our total investment portfolio should be composed of municipal securities . at december 31 , 2016 , mortgage-backed securities represented 51 % of the investment portfolio , state and municipal securities represented 30 % of the investment portfolio , u.s. treasury and government agencies represented 9 % of the investment portfolio , and corporate debt represented 10 % of the investment portfolio . all of our investments in mortgage-backed securities are pass-through mortgage-backed securities . we do not currently , and did not have at december 31 , 2016 , any structured investment vehicles or any private-label mortgage-backed securities . the amortized cost of securities in our portfolio totaled $ 485.9 million at december 31 , 2016 , compared to $ 365.7 million at december 31 , 2015. the following table presents the amortized cost of securities available for sale and held to maturity by type at december 31 , 2016 , 2015 and 2014. replace_table_token_10_th the following table presents the amortized cost of our securities as of december 31 , 2016 by their stated maturities ( this maturity schedule excludes security prepayment and call features ) , as well as the taxable equivalent yields for each maturity range . 46 replace_table_token_11_th ( 1 ) yields are presented on a fully-taxable equivalent basis using a tax rate of 35 % . at december 31 , 2016 , we had $ 160.4 million in federal funds sold , compared with $ 34.8 million at december 31 , 2015. at year-end 2016 , there were no holdings of securities of any issuer , other than the u.s. government and its agencies , in an amount greater than 10 % of stockholders ' equity . the objective of our investment policy is to invest funds not otherwise needed to meet our loan demand to earn the maximum return , yet still maintain sufficient liquidity to meet fluctuations in our loan demand and deposit structure . in doing so , we balance the market and credit
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2,551 | obligations were established for the new jersey mill in 2014 and the golden chest mine in 2016. activity for the years ended december 31 , 2020 and 2019 is as follows : replace_table_token_10_th the original estimated reclamation costs were discounted using credit adjusted , risk-free interest rate of 5.0 % from the time the obligation was incurred to the time management expects to pay the retirement obligation . 9. joint venture arrangements new jersey mill venture agreement ( โ njmjv โ ) in january 2011 , the company and united story_separator_special_tag plan of operation new jersey mining company is a gold producer focused on diversifying and building its asset base and cash flows through a portfolio of mineral properties located in historic producing gold districts in idaho and montana . the company 's plan of operation is to generate positive cash flow , increase its gold production and asset base over time while being mindful of corporate overhead . the companies management is focused on utilizing its in-house technical and operating skills to build a portfolio of producing mines and milling operations with a primary focus on gold and secondary focus on silver and base metals . the company 's properties include : the golden chest mine ( currently in production ) , the new jersey mill ( majority ownership interest ) , and a 50 % carried to production interest in the past producing butte highlands mine located in montana . in addition to its producing and near-term production projects , new jersey mining company has additional gold exploration prospects , including the mckinley-monarch and eastern star located in central idaho , and additional holdings near the golden chest in the murray gold belt . recently , the company added two rare earth element properties in idaho to its portfolio of exploration properties in an effort to diversify its holdings towards the anticipated demand for these elements in the electrification of motorized vehicles . highlights for 2020 include : ยท for the year ending december 31 , 2020 39,880 dry metric tonnes ( dmt ) were processed at the company 's new jersey mill with an average gold head grade of 3.03 grams per tonne gold ( gpt ) . ยท njmc produced a total of 3,755 ounces of gold contained in concentrates . ยท mined 27,690 tonnes of ore from the open pit at an average grade of 1.73 gpt gold with an average stripping ratio of 9.1 and an average daily mining rate of 1,480 tonnes per day ( tpd ) . tonnes and grade were lower than expected because of unmapped historic stopes where the old-timers mined portions of the veins . ยท mined 12,190 tonnes of ore from the underground mine at an average grade of 5.98 gpt gold , placed 1,828 cubic meters of cemented rockfill ( crf ) and completed 75 meters of main access ramp ( mar ) to access new stopes . ยท added additional mining equipment and a second crew of miners in the third quarter of 2020 to increase underground mine production and initiate underground development of the main access ramp . a wireless communication system was also installed underground to improve communication and safety . ยท added two rare earth element properties in central idaho to its portfolio , the diamond creek and roberts projects . ยท acquired the alder gulch project which contains 368 acres of patented , prospective land just west of the golden chest . results of operations our financial performance for the years ended december 31 , 2020 and 2019 is summarized below : ยท revenue from gold concentrate sales was $ 5,674,947 for the year ending december 31 , 2020 compared to $ 6,119,512 for the comparable period in 2019. the decrease in revenue from mining operations is the result of fewer tonnes processed at the mill due to less tonnes and lower grade mineralized material being mined in the open pit in 2020 compared to 2019 . ยท gross profit in 2020 was $ 67,546 compared to a gross profit of $ 738,548 in 2019 also because of fewer tonnes and lower grade mineralized material being mined in the open pit in 2020 compared to 2019 . ยท the company had a net loss of $ 739,939 in 2020 compared to a net loss of $ 726,507 for the same period in 2019 . ยท the consolidated net loss included non-cash charges of $ 236,493 ( $ 1,112,434 in 2019 ) as follows : depreciation and amortization of $ 575,671 ( $ 580,005 in 2019 ) , accretion of asset retirement obligation of $ 9,632 ( $ 9,077 in 2019 ) , stock based compensation of none ( $ 190,019 in 2019 ) , loss on abandonment of mineral property of none ( $ 333,333 in 2019 ) , loss on write off of equipment $ 9,536 ( none in 2019 ) , gain on forgiveness of cares act loan of $ 358,346 ( none in 2019 ) . ยท net loss attributable to new jersey mining company was $ 642,876 and $ 609,605 in the years ended december 31 , 2020 and 2019 , respectively . ยท pre-development expenses decreased in 2020 compared to 2019 as the underground operations were commenced . ยท exploration expenses increased in 2020 compared to 2019 as funds became available . these exploration costs were primarily associated with core drilling and rare earth exploration . cash costs and all in sustaining costs reconciliation to gaap- reconciliation of cost of sales and other direct production costs and depreciation , depletion and amortization ( gaap ) to cash cost per ounce and all-in sustaining costs ( aisc ) per ounce ( non-gaap ) . the table below presents reconciliations between the most comparable gaap measure of cost of sales and other direct production costs and depreciation , depletion and amortization to the non-gaap measures of cash cost per ounce produced and all in sustaining costs per ounce produced story_separator_special_tag obligations were established for the new jersey mill in 2014 and the golden chest mine in 2016. activity for the years ended december 31 , 2020 and 2019 is as follows : replace_table_token_10_th the original estimated reclamation costs were discounted using credit adjusted , risk-free interest rate of 5.0 % from the time the obligation was incurred to the time management expects to pay the retirement obligation . 9. joint venture arrangements new jersey mill venture agreement ( โ njmjv โ ) in january 2011 , the company and united story_separator_special_tag plan of operation new jersey mining company is a gold producer focused on diversifying and building its asset base and cash flows through a portfolio of mineral properties located in historic producing gold districts in idaho and montana . the company 's plan of operation is to generate positive cash flow , increase its gold production and asset base over time while being mindful of corporate overhead . the companies management is focused on utilizing its in-house technical and operating skills to build a portfolio of producing mines and milling operations with a primary focus on gold and secondary focus on silver and base metals . the company 's properties include : the golden chest mine ( currently in production ) , the new jersey mill ( majority ownership interest ) , and a 50 % carried to production interest in the past producing butte highlands mine located in montana . in addition to its producing and near-term production projects , new jersey mining company has additional gold exploration prospects , including the mckinley-monarch and eastern star located in central idaho , and additional holdings near the golden chest in the murray gold belt . recently , the company added two rare earth element properties in idaho to its portfolio of exploration properties in an effort to diversify its holdings towards the anticipated demand for these elements in the electrification of motorized vehicles . highlights for 2020 include : ยท for the year ending december 31 , 2020 39,880 dry metric tonnes ( dmt ) were processed at the company 's new jersey mill with an average gold head grade of 3.03 grams per tonne gold ( gpt ) . ยท njmc produced a total of 3,755 ounces of gold contained in concentrates . ยท mined 27,690 tonnes of ore from the open pit at an average grade of 1.73 gpt gold with an average stripping ratio of 9.1 and an average daily mining rate of 1,480 tonnes per day ( tpd ) . tonnes and grade were lower than expected because of unmapped historic stopes where the old-timers mined portions of the veins . ยท mined 12,190 tonnes of ore from the underground mine at an average grade of 5.98 gpt gold , placed 1,828 cubic meters of cemented rockfill ( crf ) and completed 75 meters of main access ramp ( mar ) to access new stopes . ยท added additional mining equipment and a second crew of miners in the third quarter of 2020 to increase underground mine production and initiate underground development of the main access ramp . a wireless communication system was also installed underground to improve communication and safety . ยท added two rare earth element properties in central idaho to its portfolio , the diamond creek and roberts projects . ยท acquired the alder gulch project which contains 368 acres of patented , prospective land just west of the golden chest . results of operations our financial performance for the years ended december 31 , 2020 and 2019 is summarized below : ยท revenue from gold concentrate sales was $ 5,674,947 for the year ending december 31 , 2020 compared to $ 6,119,512 for the comparable period in 2019. the decrease in revenue from mining operations is the result of fewer tonnes processed at the mill due to less tonnes and lower grade mineralized material being mined in the open pit in 2020 compared to 2019 . ยท gross profit in 2020 was $ 67,546 compared to a gross profit of $ 738,548 in 2019 also because of fewer tonnes and lower grade mineralized material being mined in the open pit in 2020 compared to 2019 . ยท the company had a net loss of $ 739,939 in 2020 compared to a net loss of $ 726,507 for the same period in 2019 . ยท the consolidated net loss included non-cash charges of $ 236,493 ( $ 1,112,434 in 2019 ) as follows : depreciation and amortization of $ 575,671 ( $ 580,005 in 2019 ) , accretion of asset retirement obligation of $ 9,632 ( $ 9,077 in 2019 ) , stock based compensation of none ( $ 190,019 in 2019 ) , loss on abandonment of mineral property of none ( $ 333,333 in 2019 ) , loss on write off of equipment $ 9,536 ( none in 2019 ) , gain on forgiveness of cares act loan of $ 358,346 ( none in 2019 ) . ยท net loss attributable to new jersey mining company was $ 642,876 and $ 609,605 in the years ended december 31 , 2020 and 2019 , respectively . ยท pre-development expenses decreased in 2020 compared to 2019 as the underground operations were commenced . ยท exploration expenses increased in 2020 compared to 2019 as funds became available . these exploration costs were primarily associated with core drilling and rare earth exploration . cash costs and all in sustaining costs reconciliation to gaap- reconciliation of cost of sales and other direct production costs and depreciation , depletion and amortization ( gaap ) to cash cost per ounce and all-in sustaining costs ( aisc ) per ounce ( non-gaap ) . the table below presents reconciliations between the most comparable gaap measure of cost of sales and other direct production costs and depreciation , depletion and amortization to the non-gaap measures of cash cost per ounce produced and all in sustaining costs per ounce produced
| financial condition and liquidity replace_table_token_1_th the company has accumulated deficit of approximately $ 12.7 million at december 31 , 2020 and incurred a consolidated net loss in 2020 of $ 739,939. the company 's working capital at december 31 , 2020 is $ 2,226,162. the company is currently producing from the open-pit and underground at the golden chest . during 2020 , production generated negative cash flow from operations of $ 482,418 compared to positive cash flow used in operations of $ 206,407 in 2019. planned production for the next 18 months indicates a positive cash flow from operations will be renewed as underground mining overtakes the open pit as the primary source of mineralized material . in prior years , the company has been successful in raising required funds for ongoing operations from sale of its common stock or borrowing . management believes it has the ability to meet its contractual obligations with continuing cash flows from operations , existing cash , and potential financings for the next 12
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```financial condition and liquidity replace_table_token_1_th the company has accumulated deficit of approximately $ 12.7 million at december 31 , 2020 and incurred a consolidated net loss in 2020 of $ 739,939. the company 's working capital at december 31 , 2020 is $ 2,226,162. the company is currently producing from the open-pit and underground at the golden chest . during 2020 , production generated negative cash flow from operations of $ 482,418 compared to positive cash flow used in operations of $ 206,407 in 2019. planned production for the next 18 months indicates a positive cash flow from operations will be renewed as underground mining overtakes the open pit as the primary source of mineralized material . in prior years , the company has been successful in raising required funds for ongoing operations from sale of its common stock or borrowing . management believes it has the ability to meet its contractual obligations with continuing cash flows from operations , existing cash , and potential financings for the next 12
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Suspicious Activity Report : obligations were established for the new jersey mill in 2014 and the golden chest mine in 2016. activity for the years ended december 31 , 2020 and 2019 is as follows : replace_table_token_10_th the original estimated reclamation costs were discounted using credit adjusted , risk-free interest rate of 5.0 % from the time the obligation was incurred to the time management expects to pay the retirement obligation . 9. joint venture arrangements new jersey mill venture agreement ( โ njmjv โ ) in january 2011 , the company and united story_separator_special_tag plan of operation new jersey mining company is a gold producer focused on diversifying and building its asset base and cash flows through a portfolio of mineral properties located in historic producing gold districts in idaho and montana . the company 's plan of operation is to generate positive cash flow , increase its gold production and asset base over time while being mindful of corporate overhead . the companies management is focused on utilizing its in-house technical and operating skills to build a portfolio of producing mines and milling operations with a primary focus on gold and secondary focus on silver and base metals . the company 's properties include : the golden chest mine ( currently in production ) , the new jersey mill ( majority ownership interest ) , and a 50 % carried to production interest in the past producing butte highlands mine located in montana . in addition to its producing and near-term production projects , new jersey mining company has additional gold exploration prospects , including the mckinley-monarch and eastern star located in central idaho , and additional holdings near the golden chest in the murray gold belt . recently , the company added two rare earth element properties in idaho to its portfolio of exploration properties in an effort to diversify its holdings towards the anticipated demand for these elements in the electrification of motorized vehicles . highlights for 2020 include : ยท for the year ending december 31 , 2020 39,880 dry metric tonnes ( dmt ) were processed at the company 's new jersey mill with an average gold head grade of 3.03 grams per tonne gold ( gpt ) . ยท njmc produced a total of 3,755 ounces of gold contained in concentrates . ยท mined 27,690 tonnes of ore from the open pit at an average grade of 1.73 gpt gold with an average stripping ratio of 9.1 and an average daily mining rate of 1,480 tonnes per day ( tpd ) . tonnes and grade were lower than expected because of unmapped historic stopes where the old-timers mined portions of the veins . ยท mined 12,190 tonnes of ore from the underground mine at an average grade of 5.98 gpt gold , placed 1,828 cubic meters of cemented rockfill ( crf ) and completed 75 meters of main access ramp ( mar ) to access new stopes . ยท added additional mining equipment and a second crew of miners in the third quarter of 2020 to increase underground mine production and initiate underground development of the main access ramp . a wireless communication system was also installed underground to improve communication and safety . ยท added two rare earth element properties in central idaho to its portfolio , the diamond creek and roberts projects . ยท acquired the alder gulch project which contains 368 acres of patented , prospective land just west of the golden chest . results of operations our financial performance for the years ended december 31 , 2020 and 2019 is summarized below : ยท revenue from gold concentrate sales was $ 5,674,947 for the year ending december 31 , 2020 compared to $ 6,119,512 for the comparable period in 2019. the decrease in revenue from mining operations is the result of fewer tonnes processed at the mill due to less tonnes and lower grade mineralized material being mined in the open pit in 2020 compared to 2019 . ยท gross profit in 2020 was $ 67,546 compared to a gross profit of $ 738,548 in 2019 also because of fewer tonnes and lower grade mineralized material being mined in the open pit in 2020 compared to 2019 . ยท the company had a net loss of $ 739,939 in 2020 compared to a net loss of $ 726,507 for the same period in 2019 . ยท the consolidated net loss included non-cash charges of $ 236,493 ( $ 1,112,434 in 2019 ) as follows : depreciation and amortization of $ 575,671 ( $ 580,005 in 2019 ) , accretion of asset retirement obligation of $ 9,632 ( $ 9,077 in 2019 ) , stock based compensation of none ( $ 190,019 in 2019 ) , loss on abandonment of mineral property of none ( $ 333,333 in 2019 ) , loss on write off of equipment $ 9,536 ( none in 2019 ) , gain on forgiveness of cares act loan of $ 358,346 ( none in 2019 ) . ยท net loss attributable to new jersey mining company was $ 642,876 and $ 609,605 in the years ended december 31 , 2020 and 2019 , respectively . ยท pre-development expenses decreased in 2020 compared to 2019 as the underground operations were commenced . ยท exploration expenses increased in 2020 compared to 2019 as funds became available . these exploration costs were primarily associated with core drilling and rare earth exploration . cash costs and all in sustaining costs reconciliation to gaap- reconciliation of cost of sales and other direct production costs and depreciation , depletion and amortization ( gaap ) to cash cost per ounce and all-in sustaining costs ( aisc ) per ounce ( non-gaap ) . the table below presents reconciliations between the most comparable gaap measure of cost of sales and other direct production costs and depreciation , depletion and amortization to the non-gaap measures of cash cost per ounce produced and all in sustaining costs per ounce produced story_separator_special_tag obligations were established for the new jersey mill in 2014 and the golden chest mine in 2016. activity for the years ended december 31 , 2020 and 2019 is as follows : replace_table_token_10_th the original estimated reclamation costs were discounted using credit adjusted , risk-free interest rate of 5.0 % from the time the obligation was incurred to the time management expects to pay the retirement obligation . 9. joint venture arrangements new jersey mill venture agreement ( โ njmjv โ ) in january 2011 , the company and united story_separator_special_tag plan of operation new jersey mining company is a gold producer focused on diversifying and building its asset base and cash flows through a portfolio of mineral properties located in historic producing gold districts in idaho and montana . the company 's plan of operation is to generate positive cash flow , increase its gold production and asset base over time while being mindful of corporate overhead . the companies management is focused on utilizing its in-house technical and operating skills to build a portfolio of producing mines and milling operations with a primary focus on gold and secondary focus on silver and base metals . the company 's properties include : the golden chest mine ( currently in production ) , the new jersey mill ( majority ownership interest ) , and a 50 % carried to production interest in the past producing butte highlands mine located in montana . in addition to its producing and near-term production projects , new jersey mining company has additional gold exploration prospects , including the mckinley-monarch and eastern star located in central idaho , and additional holdings near the golden chest in the murray gold belt . recently , the company added two rare earth element properties in idaho to its portfolio of exploration properties in an effort to diversify its holdings towards the anticipated demand for these elements in the electrification of motorized vehicles . highlights for 2020 include : ยท for the year ending december 31 , 2020 39,880 dry metric tonnes ( dmt ) were processed at the company 's new jersey mill with an average gold head grade of 3.03 grams per tonne gold ( gpt ) . ยท njmc produced a total of 3,755 ounces of gold contained in concentrates . ยท mined 27,690 tonnes of ore from the open pit at an average grade of 1.73 gpt gold with an average stripping ratio of 9.1 and an average daily mining rate of 1,480 tonnes per day ( tpd ) . tonnes and grade were lower than expected because of unmapped historic stopes where the old-timers mined portions of the veins . ยท mined 12,190 tonnes of ore from the underground mine at an average grade of 5.98 gpt gold , placed 1,828 cubic meters of cemented rockfill ( crf ) and completed 75 meters of main access ramp ( mar ) to access new stopes . ยท added additional mining equipment and a second crew of miners in the third quarter of 2020 to increase underground mine production and initiate underground development of the main access ramp . a wireless communication system was also installed underground to improve communication and safety . ยท added two rare earth element properties in central idaho to its portfolio , the diamond creek and roberts projects . ยท acquired the alder gulch project which contains 368 acres of patented , prospective land just west of the golden chest . results of operations our financial performance for the years ended december 31 , 2020 and 2019 is summarized below : ยท revenue from gold concentrate sales was $ 5,674,947 for the year ending december 31 , 2020 compared to $ 6,119,512 for the comparable period in 2019. the decrease in revenue from mining operations is the result of fewer tonnes processed at the mill due to less tonnes and lower grade mineralized material being mined in the open pit in 2020 compared to 2019 . ยท gross profit in 2020 was $ 67,546 compared to a gross profit of $ 738,548 in 2019 also because of fewer tonnes and lower grade mineralized material being mined in the open pit in 2020 compared to 2019 . ยท the company had a net loss of $ 739,939 in 2020 compared to a net loss of $ 726,507 for the same period in 2019 . ยท the consolidated net loss included non-cash charges of $ 236,493 ( $ 1,112,434 in 2019 ) as follows : depreciation and amortization of $ 575,671 ( $ 580,005 in 2019 ) , accretion of asset retirement obligation of $ 9,632 ( $ 9,077 in 2019 ) , stock based compensation of none ( $ 190,019 in 2019 ) , loss on abandonment of mineral property of none ( $ 333,333 in 2019 ) , loss on write off of equipment $ 9,536 ( none in 2019 ) , gain on forgiveness of cares act loan of $ 358,346 ( none in 2019 ) . ยท net loss attributable to new jersey mining company was $ 642,876 and $ 609,605 in the years ended december 31 , 2020 and 2019 , respectively . ยท pre-development expenses decreased in 2020 compared to 2019 as the underground operations were commenced . ยท exploration expenses increased in 2020 compared to 2019 as funds became available . these exploration costs were primarily associated with core drilling and rare earth exploration . cash costs and all in sustaining costs reconciliation to gaap- reconciliation of cost of sales and other direct production costs and depreciation , depletion and amortization ( gaap ) to cash cost per ounce and all-in sustaining costs ( aisc ) per ounce ( non-gaap ) . the table below presents reconciliations between the most comparable gaap measure of cost of sales and other direct production costs and depreciation , depletion and amortization to the non-gaap measures of cash cost per ounce produced and all in sustaining costs per ounce produced
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2,552 | aceto sells generic prescription products and over-the-counter pharmaceutical products to leading wholesalers , chain drug stores , distributors and mass merchandisers . on december 21 , 2016 , wholly owned subsidiaries of rising pharmaceuticals , inc. ( โ rising โ ) , a wholly owned subsidiary of aceto , completed the acquisition of certain generic products and related assets of entities formerly known as citron pharma llc ( โ citron โ ) and its affiliate lucid pharma llc ( โ lucid โ ) . citron was a privately-held new jersey-based pharmaceutical company focused on developing and marketing generic pharmaceutical products in partnership with leading generic pharmaceutical manufacturers based in india and the united states . lucid was a privately-held new jersey-based generic pharmaceutical distributor specializing in providing cost-effective products to various agencies of the u.s. federal government including the veterans administration and the defense logistics agency . lucid serviced 18 national contracts with the federal government . rising formed two subsidiaries to consummate the product acquisition โ rising health , llc ( which acquired certain products and related assets of citron ) and acetris health , llc ( which acquired certain products and related assets of lucid ) . the assets acquired in the product purchase transaction expanded , complemented , and strengthened our existing and future product offerings . in what has become a competitive generic drug business environment , one key for long-term success is having an ever-growing commercial portfolio of generic products , a strong internal drug development pipeline and capable , reliable manufacturing partners . we believe that this transaction added significantly to the rising business platform in all three crucial areas . we also believe that , consistent with our strategy of expanding our portfolio of finished dosage form generic products through product development partnerships and acquisitions of late stage assets , abbreviated new drug applications ( โ andas โ ) and complementary generic drug businesses , this product acquisition significantly expanded our roster of commercialized products and pipeline of products under development . based on a report issued by iqvia institute on april 19 , 2018 , โ spending on medicines grew by 0.6 % in 2017 after off-invoice discounts and rebates . this spending includes all types of medicines , including institutional use for inpatients and outpatients . focusing only on retail and mail-order pharmacy distribution , net spending declined by 2.1 % . โ during the third quarter of fiscal 2018 , our rising pharmaceuticals reporting unit had a decline in actual and forecasted revenue and earnings due to the persistent adverse conditions in the generics market . in addition , in february 2018 , we were notified by the u.s. government that 11 generic drug products we acquired through our acetris health subsidiary are not in compliance with the federal trade agreement act country-of-origin provisions of a clause contained in the government supply contracts acquired from lucid . based on these indicators , we determined that it was necessary to perform an interim goodwill impairment analysis at march 31 , 2018 for our rising reporting unit . accordingly , we recognized pre-tax non-cash impairment charges of $ 256,266 consisting of $ 235,110 of a goodwill impairment charge and a $ 21,156 write-down of other identifiable intangible assets . aceto also supplies the raw materials used in the production of nutritional and packaged dietary supplements , including vitamins , amino acids , iron compounds and biochemicals used in pharmaceutical and nutritional preparations . the pharmaceutical ingredients segment has two product groups : active pharmaceutical ingredients ( apis ) and pharmaceutical intermediates . 34 we supply apis to many of the major generic drug companies , who we believe view aceto as a valued partner in their effort to develop and market generic drugs . the process of introducing a new api from pipeline to market spans a number of years and begins with aceto partnering with a generic pharmaceutical manufacturer and jointly selecting an api , several years before the expiration of a composition of matter patent , for future genericizing . we then identify the appropriate supplier , and concurrently utilizing our global technical network , work to ensure they meet standards of quality to comply with regulations . our client , the generic pharmaceutical company , will submit the anda for u.s. food and drug administration ( โ fda โ ) approval or european-equivalent approval . the introduction of the api to market occurs after all the development testing has been completed and the anda or european-equivalent is approved and the patent expires or is deemed invalid . aceto , at all times , has a pipeline of apis at various stages of development both in the united states and europe . additionally , as the pressure to lower the overall cost of healthcare increases , aceto has focused on , and works very closely with our customers to develop new api opportunities to provide alternative , more economical , second-source options for existing generic drugs . by leveraging our worldwide sourcing , regulatory and quality assurance capabilities , we provide to generic drug manufacturers an alternative , economical source for existing api products . aceto has long been a supplier of pharmaceutical intermediates , the complex chemical compounds that are the building blocks used in producing apis . these are the critical components of all drugs , whether they are already on the market or currently undergoing clinical trials . faced with significant economic pressures as well as ever-increasing regulatory barriers , the innovative drug companies look to aceto as a source for high quality intermediates . aceto employs , on occasion , the same second source strategy for our pharmaceutical intermediates business that we use in our api business . historically , pharmaceutical manufacturers have had one source for the intermediates needed to produce their products . story_separator_special_tag the company elected to early adopt accounting standards update ( โ asu โ ) 2017-04 , intangibles- goodwill and other ( topic 350 ) , during the third quarter of fiscal 2018 which eliminated the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge . instead , the amount of an impairment charge is recognized if the carrying amount of a reporting unit is greater than its fair value . the fair value of the rising reporting unit was estimated using many assumptions and estimates and a market participant approach that directly impacts the results of the testing . in making these assumptions and estimates , the company used industry accepted valuation models and set criteria that were reviewed and approved by various levels of management . accordingly , with respect to the third quarter of fiscal 2018 , the company recognized a pre-tax non-cash goodwill impairment charge of $ 235,110 related to the rising reporting unit . long-lived assets long-lived assets and certain identifiable intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable . if it is determined such indicators are present and the review indicates that the assets will not be fully recoverable , based on undiscounted estimated cash flows over the remaining amortization periods , their carrying values are reduced to estimated fair value . measurements based on undiscounted cash flows are level 3 inputs . as noted above , during the third quarter of fiscal 2018 , the company 's rising pharmaceuticals subsidiary had a decline in actual and forecasted revenue and earnings and therefore the company performed an impairment test on the related intangibles . the projected undiscounted cash flows for certain intangibles were determined to be less than the carrying value , and as a result , the company recognized an impairment charge of $ 5,745 in the third quarter of fiscal 2018. additionally , as noted above , the company was notified by the u.s. government that 11 generic drug products it acquired through its acetris health subsidiary in a product purchase agreement with an entity formerly known as lucid pharma llc were not in compliance with the federal trade agreement act country-of-origin provisions of a clause contained in the government supply contracts acquired from lucid . based on this , the company performed an impairment test on the related intangible asset and recognized an impairment charge of $ 15,411 on the customer relationships intangible asset in the third quarter of fiscal 2018 . 38 environmental and other contingencies we establish accrued liabilities for environmental matters and other contingencies when it is probable that a liability has been incurred and the amount of the liability can reasonably be estimated . if the contingency is resolved for an amount greater or less than the accrual , or our share of the contingency increases or decreases , or other assumptions relevant to the development of the estimate were to change , we would recognize an additional expense or benefit in income in the period that the determination was made . taxes we account for income taxes in accordance with gaap . gaap establishes financial accounting and reporting standards for the effects of income taxes that result from an enterprise 's activities during the current and preceding years . it requires an asset-and-liability approach to financial accounting and reporting of income taxes . deferred tax assets are recorded for net operating losses and temporary differences between the book and tax basis of assets and liabilities expected to produce tax deductions in future periods . the ultimate realization of the deferred tax assets is dependent upon the generation of future taxable income during the tax periods in which those deferred tax assets would be deductible . a valuation allowance is taken when necessary to reduce deferred tax assets to the amount expected to be realized . when determining the amount of net deferred tax assets that are more likely than not to be realized , we assess all available positive and negative evidence . this evidence includes , but is not limited to , scheduled reversal of deferred tax liabilities , prior earnings history , projected future earnings , carry-back and carry-forward periods and the feasibility of ongoing tax strategies that could potentially enhance the likelihood of the realization of a deferred tax asset . the weight given to the positive and negative evidence is commensurate with the extent the evidence may be objectively verified . as such , it is generally difficult for positive evidence regarding projected future taxable income ( exclusive of reversing taxable temporary differences and carryforwards ) to outweigh objective negative evidence such as our recent financial reporting loss for the year ended june 30 , 2018. therefore , we recorded a valuation allowance of $ 76,500 against our net u.s. deferred tax assets during the year ended june 30 , 2018. the timing of when , and the extent to which , a valuation allowance is recognized , is subjective . initially , due to the various factors that occurred in the fourth quarter of fiscal 2018 , including substantial penalties for delays in supplying products and incurring substantial expenses to address the issues that led to the impairment charges taken during the year , as well as retaining financial and legal advisors to assist us in dealing with the various challenges that the company is currently facing , including legal advisors retained in connection with various ongoing legal proceedings , we determined to record this valuation allowance during the fourth quarter of fiscal 2018. however , after weighing the information available to us at the time that our third quarter financial statements were issued , we have determined , with the assistance of our advisors , that it is reasonable to conclude that it was more likely than not that a substantial portion of the valuation allowance should have been
| cash flows at june 30 , 2018 , we had $ 100,874 in cash , of which $ 21,269 was outside the united states , $ 3,030 in short-term investments , all of which is held outside the united states and $ 317,398 in debt ( including the current portion ) , all of which is an obligation in the united states . the $ 21,269 of cash held outside of the united states is fully accessible to meet any liquidity needs of the countries in which we operate . the majority of the cash located outside of the united states is held by our european and chinese operations and can be transferred into the united states . although these amounts are fully accessible , transferring these amounts into the united states or any other countries could have certain local tax consequences . in accordance with the tcja , we recorded $ 2,445 of additional income tax expense related to deferred tax liabilities for local tax authorities as we no longer assert permanent reinvestment of our undistributed non-u.s. subsidiaries ' earnings . a portion of our cash is held in operating accounts that are with third party financial institutions . while we monitor daily the cash balances in our operating accounts and adjust the cash balances as appropriate , these cash balances could be impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets . to date , we have experienced no loss or lack of access to cash in our operating accounts . while significant demands on our cash persist , our cash position at june 30 , 2018 increased $ 45,194 from the amount at june 30 , 2017. operating activities for the year ended june 30 , 2018 provided cash of $ 101,806 for this period , as compared to cash provided of $ 44,567 for the prior year . the $ 101,806 resulted from a net loss of $ 316,121 offset by $ 315,460 derived from adjustments for non-cash items plus a net $ 102,467 increase from changes in operating assets and liabilities .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows at june 30 , 2018 , we had $ 100,874 in cash , of which $ 21,269 was outside the united states , $ 3,030 in short-term investments , all of which is held outside the united states and $ 317,398 in debt ( including the current portion ) , all of which is an obligation in the united states . the $ 21,269 of cash held outside of the united states is fully accessible to meet any liquidity needs of the countries in which we operate . the majority of the cash located outside of the united states is held by our european and chinese operations and can be transferred into the united states . although these amounts are fully accessible , transferring these amounts into the united states or any other countries could have certain local tax consequences . in accordance with the tcja , we recorded $ 2,445 of additional income tax expense related to deferred tax liabilities for local tax authorities as we no longer assert permanent reinvestment of our undistributed non-u.s. subsidiaries ' earnings . a portion of our cash is held in operating accounts that are with third party financial institutions . while we monitor daily the cash balances in our operating accounts and adjust the cash balances as appropriate , these cash balances could be impacted if the underlying financial institutions fail or are subject to other adverse conditions in the financial markets . to date , we have experienced no loss or lack of access to cash in our operating accounts . while significant demands on our cash persist , our cash position at june 30 , 2018 increased $ 45,194 from the amount at june 30 , 2017. operating activities for the year ended june 30 , 2018 provided cash of $ 101,806 for this period , as compared to cash provided of $ 44,567 for the prior year . the $ 101,806 resulted from a net loss of $ 316,121 offset by $ 315,460 derived from adjustments for non-cash items plus a net $ 102,467 increase from changes in operating assets and liabilities .
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Suspicious Activity Report : aceto sells generic prescription products and over-the-counter pharmaceutical products to leading wholesalers , chain drug stores , distributors and mass merchandisers . on december 21 , 2016 , wholly owned subsidiaries of rising pharmaceuticals , inc. ( โ rising โ ) , a wholly owned subsidiary of aceto , completed the acquisition of certain generic products and related assets of entities formerly known as citron pharma llc ( โ citron โ ) and its affiliate lucid pharma llc ( โ lucid โ ) . citron was a privately-held new jersey-based pharmaceutical company focused on developing and marketing generic pharmaceutical products in partnership with leading generic pharmaceutical manufacturers based in india and the united states . lucid was a privately-held new jersey-based generic pharmaceutical distributor specializing in providing cost-effective products to various agencies of the u.s. federal government including the veterans administration and the defense logistics agency . lucid serviced 18 national contracts with the federal government . rising formed two subsidiaries to consummate the product acquisition โ rising health , llc ( which acquired certain products and related assets of citron ) and acetris health , llc ( which acquired certain products and related assets of lucid ) . the assets acquired in the product purchase transaction expanded , complemented , and strengthened our existing and future product offerings . in what has become a competitive generic drug business environment , one key for long-term success is having an ever-growing commercial portfolio of generic products , a strong internal drug development pipeline and capable , reliable manufacturing partners . we believe that this transaction added significantly to the rising business platform in all three crucial areas . we also believe that , consistent with our strategy of expanding our portfolio of finished dosage form generic products through product development partnerships and acquisitions of late stage assets , abbreviated new drug applications ( โ andas โ ) and complementary generic drug businesses , this product acquisition significantly expanded our roster of commercialized products and pipeline of products under development . based on a report issued by iqvia institute on april 19 , 2018 , โ spending on medicines grew by 0.6 % in 2017 after off-invoice discounts and rebates . this spending includes all types of medicines , including institutional use for inpatients and outpatients . focusing only on retail and mail-order pharmacy distribution , net spending declined by 2.1 % . โ during the third quarter of fiscal 2018 , our rising pharmaceuticals reporting unit had a decline in actual and forecasted revenue and earnings due to the persistent adverse conditions in the generics market . in addition , in february 2018 , we were notified by the u.s. government that 11 generic drug products we acquired through our acetris health subsidiary are not in compliance with the federal trade agreement act country-of-origin provisions of a clause contained in the government supply contracts acquired from lucid . based on these indicators , we determined that it was necessary to perform an interim goodwill impairment analysis at march 31 , 2018 for our rising reporting unit . accordingly , we recognized pre-tax non-cash impairment charges of $ 256,266 consisting of $ 235,110 of a goodwill impairment charge and a $ 21,156 write-down of other identifiable intangible assets . aceto also supplies the raw materials used in the production of nutritional and packaged dietary supplements , including vitamins , amino acids , iron compounds and biochemicals used in pharmaceutical and nutritional preparations . the pharmaceutical ingredients segment has two product groups : active pharmaceutical ingredients ( apis ) and pharmaceutical intermediates . 34 we supply apis to many of the major generic drug companies , who we believe view aceto as a valued partner in their effort to develop and market generic drugs . the process of introducing a new api from pipeline to market spans a number of years and begins with aceto partnering with a generic pharmaceutical manufacturer and jointly selecting an api , several years before the expiration of a composition of matter patent , for future genericizing . we then identify the appropriate supplier , and concurrently utilizing our global technical network , work to ensure they meet standards of quality to comply with regulations . our client , the generic pharmaceutical company , will submit the anda for u.s. food and drug administration ( โ fda โ ) approval or european-equivalent approval . the introduction of the api to market occurs after all the development testing has been completed and the anda or european-equivalent is approved and the patent expires or is deemed invalid . aceto , at all times , has a pipeline of apis at various stages of development both in the united states and europe . additionally , as the pressure to lower the overall cost of healthcare increases , aceto has focused on , and works very closely with our customers to develop new api opportunities to provide alternative , more economical , second-source options for existing generic drugs . by leveraging our worldwide sourcing , regulatory and quality assurance capabilities , we provide to generic drug manufacturers an alternative , economical source for existing api products . aceto has long been a supplier of pharmaceutical intermediates , the complex chemical compounds that are the building blocks used in producing apis . these are the critical components of all drugs , whether they are already on the market or currently undergoing clinical trials . faced with significant economic pressures as well as ever-increasing regulatory barriers , the innovative drug companies look to aceto as a source for high quality intermediates . aceto employs , on occasion , the same second source strategy for our pharmaceutical intermediates business that we use in our api business . historically , pharmaceutical manufacturers have had one source for the intermediates needed to produce their products . story_separator_special_tag the company elected to early adopt accounting standards update ( โ asu โ ) 2017-04 , intangibles- goodwill and other ( topic 350 ) , during the third quarter of fiscal 2018 which eliminated the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge . instead , the amount of an impairment charge is recognized if the carrying amount of a reporting unit is greater than its fair value . the fair value of the rising reporting unit was estimated using many assumptions and estimates and a market participant approach that directly impacts the results of the testing . in making these assumptions and estimates , the company used industry accepted valuation models and set criteria that were reviewed and approved by various levels of management . accordingly , with respect to the third quarter of fiscal 2018 , the company recognized a pre-tax non-cash goodwill impairment charge of $ 235,110 related to the rising reporting unit . long-lived assets long-lived assets and certain identifiable intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable . if it is determined such indicators are present and the review indicates that the assets will not be fully recoverable , based on undiscounted estimated cash flows over the remaining amortization periods , their carrying values are reduced to estimated fair value . measurements based on undiscounted cash flows are level 3 inputs . as noted above , during the third quarter of fiscal 2018 , the company 's rising pharmaceuticals subsidiary had a decline in actual and forecasted revenue and earnings and therefore the company performed an impairment test on the related intangibles . the projected undiscounted cash flows for certain intangibles were determined to be less than the carrying value , and as a result , the company recognized an impairment charge of $ 5,745 in the third quarter of fiscal 2018. additionally , as noted above , the company was notified by the u.s. government that 11 generic drug products it acquired through its acetris health subsidiary in a product purchase agreement with an entity formerly known as lucid pharma llc were not in compliance with the federal trade agreement act country-of-origin provisions of a clause contained in the government supply contracts acquired from lucid . based on this , the company performed an impairment test on the related intangible asset and recognized an impairment charge of $ 15,411 on the customer relationships intangible asset in the third quarter of fiscal 2018 . 38 environmental and other contingencies we establish accrued liabilities for environmental matters and other contingencies when it is probable that a liability has been incurred and the amount of the liability can reasonably be estimated . if the contingency is resolved for an amount greater or less than the accrual , or our share of the contingency increases or decreases , or other assumptions relevant to the development of the estimate were to change , we would recognize an additional expense or benefit in income in the period that the determination was made . taxes we account for income taxes in accordance with gaap . gaap establishes financial accounting and reporting standards for the effects of income taxes that result from an enterprise 's activities during the current and preceding years . it requires an asset-and-liability approach to financial accounting and reporting of income taxes . deferred tax assets are recorded for net operating losses and temporary differences between the book and tax basis of assets and liabilities expected to produce tax deductions in future periods . the ultimate realization of the deferred tax assets is dependent upon the generation of future taxable income during the tax periods in which those deferred tax assets would be deductible . a valuation allowance is taken when necessary to reduce deferred tax assets to the amount expected to be realized . when determining the amount of net deferred tax assets that are more likely than not to be realized , we assess all available positive and negative evidence . this evidence includes , but is not limited to , scheduled reversal of deferred tax liabilities , prior earnings history , projected future earnings , carry-back and carry-forward periods and the feasibility of ongoing tax strategies that could potentially enhance the likelihood of the realization of a deferred tax asset . the weight given to the positive and negative evidence is commensurate with the extent the evidence may be objectively verified . as such , it is generally difficult for positive evidence regarding projected future taxable income ( exclusive of reversing taxable temporary differences and carryforwards ) to outweigh objective negative evidence such as our recent financial reporting loss for the year ended june 30 , 2018. therefore , we recorded a valuation allowance of $ 76,500 against our net u.s. deferred tax assets during the year ended june 30 , 2018. the timing of when , and the extent to which , a valuation allowance is recognized , is subjective . initially , due to the various factors that occurred in the fourth quarter of fiscal 2018 , including substantial penalties for delays in supplying products and incurring substantial expenses to address the issues that led to the impairment charges taken during the year , as well as retaining financial and legal advisors to assist us in dealing with the various challenges that the company is currently facing , including legal advisors retained in connection with various ongoing legal proceedings , we determined to record this valuation allowance during the fourth quarter of fiscal 2018. however , after weighing the information available to us at the time that our third quarter financial statements were issued , we have determined , with the assistance of our advisors , that it is reasonable to conclude that it was more likely than not that a substantial portion of the valuation allowance should have been
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2,553 | โ received orders including $ 710,000 for latin american prison security , and $ 735,000 of opening orders for perimeter security and public safety in asia and the u.s. 17 our revenues decreased by 2.5 % from $ 16,784,220 in the fiscal year ended september 30 , 2015 to $ 16,361,005 in the fiscal year ended september 30 , 2016. the decrease in revenues is due to delays in the award of contracts , primarily in international markets , due to various factors , including budget delays , prioritization of programs , decreased oil and gas prices , which have delayed capital expenditures , the strong dollar slowing international growth , and regional conflicts , especially in the middle east . in most cases , these opportunities were delayed and not lost to competitors . we saw improvement in u.s. military spending in fiscal year 2016 with a 60 % increase in revenues over fiscal year 2015 , driven by the delivery of our first major order on our u.s. army program of record in fiscal year 2016 for $ 915,000 , and several other orders for the u.s. navy , u.s. coast guard and the u.s. marines . revenues to u.s. law enforcement agencies and municipalities for public safety and crowd control applications were strong during the year , as well as shipments to the department of state for u.s. facilities overseas , and perimeter security for infrastructure projects , resulting in a 47 % increase in u.s. revenues . in international markets , revenues to militaries , primarily armies , navies and coast guards , and law enforcement agencies continued to be strong during the year . in addition , we had an increase in revenues from correctional facilities for security and communication . mass notification projects in asia slowed during fiscal year 2016 resulting in a 45 % reduction in mass notification revenues during the year , but these projects are expected to increase again in fiscal year 2017. during fiscal year 2016 , we expanded our omnidirectional product offering and we had some small u.s. mass notification installations , which we can use to demonstrate our capabilities to build additional business . we continue to pursue u.s. and international mass notification opportunities and we started strong in fiscal year 2017 with awards totalling $ 2.4 million . gross profit decreased by $ 857,036 to 47 % of net revenues , compared to 51 % of net revenues in fiscal year 2015 , primarily due to lower net revenues and unfavorable channel mix . operating expenses increased by $ 1,955,534 primarily due to $ 1,138,183 of non-recurring expenses related to legal and consulting costs resulting from a proxy contest initiated by a stockholder of the company , severance and related expenses in accordance with a separation agreement and general release related to the departure of the company 's prior chief executive officer , and recruiting and hiring costs related to the search and hire of a new chief executive officer . in addition , salaries , benefits and consulting costs for business development personnel and engineers increased by $ 677,513 , product development and testing increased by $ 63,629 and $ 76,209 of other increases . we also recognized a non-cash income tax benefit of $ 8,339,000 in the year ended september 30 , 2015 resulting from the release of a portion of the valuation allowance against deferred tax assets . during the year ended september 30 , 2016 , we adjusted our valuation allowance , which resulted in an additional $ 188,000 of non-cash income tax benefit . our working capital decreased by $ 2,508,030 during fiscal year 2016 , primarily due to $ 1,748,456 to repurchase company shares of common stock , $ 954,650 for the payment of dividends , and net losses after adjusting for non-cash expenses of $ 456,572 , offset by a movement of $ 859,630 of investments from long-term to short-term securities . future cash flows from operating activities are expected to fluctuate based on working capital requirements , operating expense levels and other factors . we believe we have adequate financial resources to fund operations for the next twelve months . we incurred $ 2,387,985 of research and development expense during fiscal year 2016. we designed , developed and launched the lrad rxl for the u.s. navy and were awarded a $ 7.4 million contract using this unit for situational awareness systems on military sealift command ships and other vessels . this unit combines the benefits of the remotely operated pan and tilt system of the lrad 500rx , which is a lighter , compact cost-effective version of our lrad 1000rx , with the enhanced , more powerful driver technology included in our lrad 450xl system . we are beginning to utilize our advanced driver , which offers almost twice the output of our standard driver , in other products to increase product output in a smaller size unit . we have also developed a number of product modifications and customizations to meet specific customer needs . our lrad products have been competitively selected over other commercially available systems by the united states military and by several international militaries . we seek to continually improve the quality and manufacturability of our products to retain our competitive advantage in the ahd market from both a technology standpoint and to remain cost competitive . we believe our improved products provide increased sales opportunities into government and commercial markets and demonstrate our ability to remain the leader in the ahd market . we also continued to design and expand our product offering for our one voice omnidirectional product line through increased variations of our current technology to accommodate various customer requirements , including the addition of various configurations of amplifiers , mounts , power sources and software . story_separator_special_tag we also increased salaries and consulting costs by $ 358,616 , primarily for the addition of two full time business development consultants , marketing expenses for trade shows by $ 32,795 , fees related to administration of the dividend payment and new board member fees by $ 26,133 , commission expense by $ 17,694 and $ 22,667 of other increases . we incurred non-cash share-based compensation expenses of $ 478,695 and $ 473,118 in the fiscal years ended september 30 , 2016 and 2015 , respectively . research and development expenses r & d expenses increased by $ 359,446 , or 17.7 % , primarily due to $ 310,048 for increased salaries and benefits for the addition of engineers , $ 63,629 for increased development costs for prototypes , as well as costs for contracted testing and certification costs , offset by $ 14,231 of other spending decreases . included in r & d expenses for the year ended september 30 , 2016 was $ 102,639 of non-cash share-based compensation expenses , compared to $ 120,728 for the year ended september 30 , 2015. other income other income increased by $ 3,661 due to a decrease of $ 16,895 for interest income due to lower cash balances , offset by $ 20,556 for amortization and accretion of our investments . net income the decrease in net income was due to the decrease in revenues and gross margin and an increase in operating expenses , primarily due to $ 1,138,183 of non-recurring expenses . in addition , we recorded $ 1,840 of tax provision in the current year and recorded a $ 188,000 non-cash income tax benefit for the release of a portion of our valuation allowance against deferred tax assets based on an assessment of the company 's historical and projected taxable income , along with any tax planning strategies and any other positive or negative evidence , and determined it was more likely than not that a portion of the deferred tax assets will be realized . in the year ended september 30 , 2015 , we recorded a tax benefit of $ 7,700 and released $ 8,339,000 of our valuation allowance . for additional details , refer to note 10 , income taxes . liquidity and capital resources cash and cash equivalents at september 30 , 2016 was $ 13,466,711 , compared to $ 18,316,103 at september 30 , 2015. other than cash and expected future cash flows from operating activities in subsequent periods , we have no other unused sources of liquidity at this time . principal factors that could affect the availability of our internally generated funds include : ability to meet sales projections ; government spending levels ; introduction of competing technologies ; product mix and effect on margins ; ability to reduce and manage inventory levels ; and product acceptance in new markets . 22 principal factors that could affect our ability to obtain cash from external sources include : volatility in the capital markets ; and market price and trading volume of our common stock . our board of directors approved a share buyback program under which the company may utilize up to $ 4 million in cash to repurchase outstanding common shares using available cash and from future cash flow from operations through december 31 , 2016. based on our current cash position , our order backlog , and assuming the accuracy of our currently planned expenditures , we believe we have sufficient capital to fund planned levels of operations for at least the next twelve months . however , we operate in a rapidly evolving and often unpredictable business environment that may change the timing or amount of expected future cash receipts and expenditures . accordingly , there can be no assurance that we may not be required to raise additional funds through the sale of equity or debt securities or from credit facilities . additional capital , if needed , may not be available on satisfactory terms , if at all . story_separator_special_tag quarter of fiscal 2016 or the prior fiscal year . commitments we are committed for our facility lease as more fully described in note 11 , commitments and contingencies , to our consolidated financial statements . we have a bonus plan for employees , in accordance with their terms of employment , whereby they can earn a percentage of their salary at three different levels based on meeting three different targeted objectives for earnings per share . the number of shares outstanding used for the calculation is as of october 1 , 2015. in fiscal years 2016 and 2015 , the company did not meet the targeted objectives for earnings per share so an accrual was not recorded . in april 2009 , our board of directors adopted a change in control severance benefit plan . the change of control plan provides that in the event of a qualifying termination , the participating executive will be entitled to receive ( i ) a lump sum payment equal to twenty-four months ' base salary ( less applicable tax and other withholdings ) , ( ii ) a lump sum payment equal to the officer 's target bonus for the year in which the officer is terminated , ( iii ) continuation of health benefits for twenty-four months and ( iv ) accelerated vesting of any unvested stock options and other securities or similar incentives held at the time of termination . a qualifying termination under the change of control plan is any involuntary termination without cause or any voluntary termination for good reason , in each case occurring within three months before or twelve months after a change of control of lrad . we entered into an employment agreement in august 2016 with our chief executive officer that provides for severance benefits including twelve months ' salary and health benefits , a pro-rata share of his annual cash bonus for the fiscal year in which the termination occurs
| cash flows our cash flows from operating , investing and financing activities , as reflected in the consolidated statements of cash flows , are summarized in the table below : replace_table_token_3_th operating activities net loss of $ 1,281,599 for the fiscal year ended september 30 , 2016 was reduced by $ 825,027 of non-cash items that include share-based compensation expense , deferred income taxes , depreciation and amortization , inventory obsolescence and a provision for warranty . cash generated from operating activities reflected an increase in accrued and other liabilities primarily due to increased deferred revenues from prepayments from customers , decreased prepaid expenses and other โ noncurrent , which represents the amortization of our prepaid maintenance agreement , increased payroll and related resulting primarily from increased accrued benefits , and $ 2,309 for decreased inventory . cash used in operating activities included an increase in accounts receivable of $ 1,292,589 due to higher revenues in the last month of the year , decreased accounts payable of $ 129,376 , warranty settlements of $ 38,588 and increased prepaid expenses and other of $ 29,972. net income of $ 9,687,816 for the fiscal year ended september 30 , 2015 was reduced by $ 7,373,148 of non-cash items that include deferred income taxes , share-based compensation expense , depreciation and amortization , inventory obsolescence and a provision for warranty . cash generated from operating activities reflected a decrease in accounts receivable of $ 2,167,728 , due to lower revenues and a decrease in prepaid expenses and other โ noncurrent of $ 187,485 , which represents the amortization of our prepaid maintenance agreement .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows our cash flows from operating , investing and financing activities , as reflected in the consolidated statements of cash flows , are summarized in the table below : replace_table_token_3_th operating activities net loss of $ 1,281,599 for the fiscal year ended september 30 , 2016 was reduced by $ 825,027 of non-cash items that include share-based compensation expense , deferred income taxes , depreciation and amortization , inventory obsolescence and a provision for warranty . cash generated from operating activities reflected an increase in accrued and other liabilities primarily due to increased deferred revenues from prepayments from customers , decreased prepaid expenses and other โ noncurrent , which represents the amortization of our prepaid maintenance agreement , increased payroll and related resulting primarily from increased accrued benefits , and $ 2,309 for decreased inventory . cash used in operating activities included an increase in accounts receivable of $ 1,292,589 due to higher revenues in the last month of the year , decreased accounts payable of $ 129,376 , warranty settlements of $ 38,588 and increased prepaid expenses and other of $ 29,972. net income of $ 9,687,816 for the fiscal year ended september 30 , 2015 was reduced by $ 7,373,148 of non-cash items that include deferred income taxes , share-based compensation expense , depreciation and amortization , inventory obsolescence and a provision for warranty . cash generated from operating activities reflected a decrease in accounts receivable of $ 2,167,728 , due to lower revenues and a decrease in prepaid expenses and other โ noncurrent of $ 187,485 , which represents the amortization of our prepaid maintenance agreement .
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Suspicious Activity Report : โ received orders including $ 710,000 for latin american prison security , and $ 735,000 of opening orders for perimeter security and public safety in asia and the u.s. 17 our revenues decreased by 2.5 % from $ 16,784,220 in the fiscal year ended september 30 , 2015 to $ 16,361,005 in the fiscal year ended september 30 , 2016. the decrease in revenues is due to delays in the award of contracts , primarily in international markets , due to various factors , including budget delays , prioritization of programs , decreased oil and gas prices , which have delayed capital expenditures , the strong dollar slowing international growth , and regional conflicts , especially in the middle east . in most cases , these opportunities were delayed and not lost to competitors . we saw improvement in u.s. military spending in fiscal year 2016 with a 60 % increase in revenues over fiscal year 2015 , driven by the delivery of our first major order on our u.s. army program of record in fiscal year 2016 for $ 915,000 , and several other orders for the u.s. navy , u.s. coast guard and the u.s. marines . revenues to u.s. law enforcement agencies and municipalities for public safety and crowd control applications were strong during the year , as well as shipments to the department of state for u.s. facilities overseas , and perimeter security for infrastructure projects , resulting in a 47 % increase in u.s. revenues . in international markets , revenues to militaries , primarily armies , navies and coast guards , and law enforcement agencies continued to be strong during the year . in addition , we had an increase in revenues from correctional facilities for security and communication . mass notification projects in asia slowed during fiscal year 2016 resulting in a 45 % reduction in mass notification revenues during the year , but these projects are expected to increase again in fiscal year 2017. during fiscal year 2016 , we expanded our omnidirectional product offering and we had some small u.s. mass notification installations , which we can use to demonstrate our capabilities to build additional business . we continue to pursue u.s. and international mass notification opportunities and we started strong in fiscal year 2017 with awards totalling $ 2.4 million . gross profit decreased by $ 857,036 to 47 % of net revenues , compared to 51 % of net revenues in fiscal year 2015 , primarily due to lower net revenues and unfavorable channel mix . operating expenses increased by $ 1,955,534 primarily due to $ 1,138,183 of non-recurring expenses related to legal and consulting costs resulting from a proxy contest initiated by a stockholder of the company , severance and related expenses in accordance with a separation agreement and general release related to the departure of the company 's prior chief executive officer , and recruiting and hiring costs related to the search and hire of a new chief executive officer . in addition , salaries , benefits and consulting costs for business development personnel and engineers increased by $ 677,513 , product development and testing increased by $ 63,629 and $ 76,209 of other increases . we also recognized a non-cash income tax benefit of $ 8,339,000 in the year ended september 30 , 2015 resulting from the release of a portion of the valuation allowance against deferred tax assets . during the year ended september 30 , 2016 , we adjusted our valuation allowance , which resulted in an additional $ 188,000 of non-cash income tax benefit . our working capital decreased by $ 2,508,030 during fiscal year 2016 , primarily due to $ 1,748,456 to repurchase company shares of common stock , $ 954,650 for the payment of dividends , and net losses after adjusting for non-cash expenses of $ 456,572 , offset by a movement of $ 859,630 of investments from long-term to short-term securities . future cash flows from operating activities are expected to fluctuate based on working capital requirements , operating expense levels and other factors . we believe we have adequate financial resources to fund operations for the next twelve months . we incurred $ 2,387,985 of research and development expense during fiscal year 2016. we designed , developed and launched the lrad rxl for the u.s. navy and were awarded a $ 7.4 million contract using this unit for situational awareness systems on military sealift command ships and other vessels . this unit combines the benefits of the remotely operated pan and tilt system of the lrad 500rx , which is a lighter , compact cost-effective version of our lrad 1000rx , with the enhanced , more powerful driver technology included in our lrad 450xl system . we are beginning to utilize our advanced driver , which offers almost twice the output of our standard driver , in other products to increase product output in a smaller size unit . we have also developed a number of product modifications and customizations to meet specific customer needs . our lrad products have been competitively selected over other commercially available systems by the united states military and by several international militaries . we seek to continually improve the quality and manufacturability of our products to retain our competitive advantage in the ahd market from both a technology standpoint and to remain cost competitive . we believe our improved products provide increased sales opportunities into government and commercial markets and demonstrate our ability to remain the leader in the ahd market . we also continued to design and expand our product offering for our one voice omnidirectional product line through increased variations of our current technology to accommodate various customer requirements , including the addition of various configurations of amplifiers , mounts , power sources and software . story_separator_special_tag we also increased salaries and consulting costs by $ 358,616 , primarily for the addition of two full time business development consultants , marketing expenses for trade shows by $ 32,795 , fees related to administration of the dividend payment and new board member fees by $ 26,133 , commission expense by $ 17,694 and $ 22,667 of other increases . we incurred non-cash share-based compensation expenses of $ 478,695 and $ 473,118 in the fiscal years ended september 30 , 2016 and 2015 , respectively . research and development expenses r & d expenses increased by $ 359,446 , or 17.7 % , primarily due to $ 310,048 for increased salaries and benefits for the addition of engineers , $ 63,629 for increased development costs for prototypes , as well as costs for contracted testing and certification costs , offset by $ 14,231 of other spending decreases . included in r & d expenses for the year ended september 30 , 2016 was $ 102,639 of non-cash share-based compensation expenses , compared to $ 120,728 for the year ended september 30 , 2015. other income other income increased by $ 3,661 due to a decrease of $ 16,895 for interest income due to lower cash balances , offset by $ 20,556 for amortization and accretion of our investments . net income the decrease in net income was due to the decrease in revenues and gross margin and an increase in operating expenses , primarily due to $ 1,138,183 of non-recurring expenses . in addition , we recorded $ 1,840 of tax provision in the current year and recorded a $ 188,000 non-cash income tax benefit for the release of a portion of our valuation allowance against deferred tax assets based on an assessment of the company 's historical and projected taxable income , along with any tax planning strategies and any other positive or negative evidence , and determined it was more likely than not that a portion of the deferred tax assets will be realized . in the year ended september 30 , 2015 , we recorded a tax benefit of $ 7,700 and released $ 8,339,000 of our valuation allowance . for additional details , refer to note 10 , income taxes . liquidity and capital resources cash and cash equivalents at september 30 , 2016 was $ 13,466,711 , compared to $ 18,316,103 at september 30 , 2015. other than cash and expected future cash flows from operating activities in subsequent periods , we have no other unused sources of liquidity at this time . principal factors that could affect the availability of our internally generated funds include : ability to meet sales projections ; government spending levels ; introduction of competing technologies ; product mix and effect on margins ; ability to reduce and manage inventory levels ; and product acceptance in new markets . 22 principal factors that could affect our ability to obtain cash from external sources include : volatility in the capital markets ; and market price and trading volume of our common stock . our board of directors approved a share buyback program under which the company may utilize up to $ 4 million in cash to repurchase outstanding common shares using available cash and from future cash flow from operations through december 31 , 2016. based on our current cash position , our order backlog , and assuming the accuracy of our currently planned expenditures , we believe we have sufficient capital to fund planned levels of operations for at least the next twelve months . however , we operate in a rapidly evolving and often unpredictable business environment that may change the timing or amount of expected future cash receipts and expenditures . accordingly , there can be no assurance that we may not be required to raise additional funds through the sale of equity or debt securities or from credit facilities . additional capital , if needed , may not be available on satisfactory terms , if at all . story_separator_special_tag quarter of fiscal 2016 or the prior fiscal year . commitments we are committed for our facility lease as more fully described in note 11 , commitments and contingencies , to our consolidated financial statements . we have a bonus plan for employees , in accordance with their terms of employment , whereby they can earn a percentage of their salary at three different levels based on meeting three different targeted objectives for earnings per share . the number of shares outstanding used for the calculation is as of october 1 , 2015. in fiscal years 2016 and 2015 , the company did not meet the targeted objectives for earnings per share so an accrual was not recorded . in april 2009 , our board of directors adopted a change in control severance benefit plan . the change of control plan provides that in the event of a qualifying termination , the participating executive will be entitled to receive ( i ) a lump sum payment equal to twenty-four months ' base salary ( less applicable tax and other withholdings ) , ( ii ) a lump sum payment equal to the officer 's target bonus for the year in which the officer is terminated , ( iii ) continuation of health benefits for twenty-four months and ( iv ) accelerated vesting of any unvested stock options and other securities or similar incentives held at the time of termination . a qualifying termination under the change of control plan is any involuntary termination without cause or any voluntary termination for good reason , in each case occurring within three months before or twelve months after a change of control of lrad . we entered into an employment agreement in august 2016 with our chief executive officer that provides for severance benefits including twelve months ' salary and health benefits , a pro-rata share of his annual cash bonus for the fiscal year in which the termination occurs
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2,554 | our obligation to pay such royalties will terminate upon the expiration of the last patent right covering evk-001 , which is expected to occur in 2030. initial public offering and related transactions on september 30 , 2013 , we completed our ipo , whereby we sold 2,100,000 shares of common stock at $ 12.00 per share . on october 8 , 2013 , the underwriters for our ipo exercised the over-allotment option to purchase an additional 315,000 shares of our common stock at $ 12.00 per share . net proceeds from the ipo , including the exercise of the over-allotment option , were determined as follows : gross proceeds ( including over-allotment ) $ 28,980,000 underwriting discounts and commissions and non-accountable expense allowance ( 2,344,875 ) total offering costs ( excluding value of warrants granted to underwriter of $ 470,000 ) ( 1,514,177 ) net proceeds $ 25,120,948 additionally , upon the closing of the ipo , certain related transactions occurred : the conversion of all outstanding shares of our convertible preferred stock into 2,439,002 shares of our common stock ; retention payments in the amount of $ 355,000 became payable to our executive officers . such amount was recorded as expense on a straight-line basis from may 22 , 2013 ( the date of the retention agreements entered into with the executive officers ) through december 24 , 2013 , the date at which the final payment was due based on continued employment . since the terms of the payment required the occurrence of either a change in control of the company or an equity financing , neither of which were considered probable to occur until they happen , a catch-up expense of $ 202,857 was recorded at the time of our ipo . the executive officers remained with the company through december 24 , 2013 and received the full retention payment ; 36 the issuance of warrants to purchase 84,000 shares of our common stock to the representative of the underwriters of our ipo and certain of its affiliates . the warrants will become exercisable at a price of $ 21.00 per share beginning on september 24 , 2014 and will expire on september 24 , 2018. the initial fair value of the warrants of $ 470,000 was determined using the black-scholes option pricing model on the date of the ipo and recorded as a cost of the issuance of common stock from our ipo and charged to additional paid-in capital ; the conversion of warrants to purchase 110,000 shares of convertible preferred stock into warrants to purchase 22,000 shares of our common stock and the resultant reclassification of the $ 187,000 warrant liability to additional paid-in capital ; and the filing of an amended and restated certificate of incorporation to authorize 50,000,000 shares of common stock and 5,000,000 shares of undesignated preferred stock . financial operations overview research and development expenses we expense all research and development expenses as they are incurred . research and development expenses primarily include : clinical trial and regulatory-related costs ; expenses incurred under agreements with contract research organizations , or cros , investigative sites and consultants that conduct our clinical trials ; manufacturing and stability testing costs and related supplies and materials ; and employee-related expenses , including salaries , benefits , travel and stock-based compensation expense . all of our research and development expenses to date have been incurred in connection with evk-001 . we expect our research and development expenses to increase for the foreseeable future as we advance evk-001 through clinical development , including the conduct of our planned phase 3 clinical trial . the process of conducting clinical trials necessary to obtain regulatory approval is costly and time consuming . we are unable to estimate with any certainty the costs we will incur in the continued development of evk-001 . however , we currently estimate the costs to complete our phase 3 clinical trial in women , our companion clinical trial in men and a thorough qt study of evk-001 will be approximately $ 15.0 million . clinical development timelines , the probability of success and development costs can differ materially from expectations . we may never succeed in achieving marketing approval for our product candidate . the costs of clinical trials may vary significantly over the life of a project owing to , but not limited to , the following : per patient trial costs ; the number of sites included in the trials ; the countries in which the trials are conducted ; the length of time required to enroll eligible patients ; the number of patients that participate in the trials ; the number of doses that patients receive ; the cost of comparative agents used in trials ; the drop-out or discontinuation rates of patients ; potential additional safety monitoring or other studies requested by regulatory agencies ; the duration of patient follow-up ; and the efficacy and safety profile of the product candidate . we do not expect evk-001 to be commercially available , if at all , for the next few years . general and administrative expenses general and administrative expenses consist primarily of salaries and related benefits , including stock-based compensation . other general and administrative expenses include professional fees for accounting , tax , patent costs , legal services , insurance and facility costs . we expect that general and administrative expenses will increase in the future as we expand our operating activities and incur additional costs associated with being a publicly-traded company and maintaining compliance with exchange listing and securities and exchange commission requirements . these increases will likely include higher consulting costs , legal fees , accounting fees , directors ' and officers ' liability insurance premiums and fees associated with investor relations . story_separator_special_tag results of operations comparison of years ended december 31 , 2013 and 2012 the following table summarizes the results of our operations for the fiscal years ended december 31 , 2013 and 2012 : replace_table_token_7_th research and development expenses . research and development expenses were approximately $ 957,000 for the year ended december 31 , 2013 , compared to approximately $ 1,165,000 for the year ended december 31 , 2012. the decrease of approximately $ 209,000 is primarily related to the decrease in executive compensation allocated to research and development as we worked to raise capital in 2013 and to the reversal of the 2012 bonus accrual due to the election by our board of directors in april 2013 to not pay 2012 bonuses in order to conserve cash . general and administrative expenses . general and administrative expenses were approximately $ 1,645,000 for the year ended december 31 , 2013 , compared to approximately $ 837,000 for the year ended december 31 , 2012. the increase of approximately $ 808,000 is primarily related to a larger portion of our labor costs being allocated to general and administrative activities in 2013 in preparation for our ipo and the payment for the executive team 's retention payments of $ 355,000 , offset by the reversal of the 2012 bonus accrual due to the election by our board of directors in april 2013 to not pay 2012 bonuses . 39 other income ( expense ) . other income ( expense ) was approximately $ ( 235,000 ) for the year ended december 31 , 2013 and primarily consisted of approximately $ ( 160,000 ) of interest expense and $ ( 82,000 ) related to the increase in the fair value of our outstanding warrant liability , and offset by approximately $ 7,000 of interest income . other income ( expense ) was approximately $ ( 15,000 ) for the year ended december 31 , 2012 and primarily consisted of approximately $ ( 24,000 ) of interest expense related to advances under our loan and security agreement , offset by approximately $ 2,000 of interest income and $ 7,000 of other income related to the decrease in fair value of our outstanding warrant liability . comparison of years ended december 31 , 2012 and 2011 the following table summarizes the results of our operations for the fiscal years ended december 31 , 2012 and 2011 : replace_table_token_8_th research and development expenses . research and development expenses were approximately $ 1,165,000 for the year ended december 31 , 2012 , compared to approximately $ 1,844,000 for the year ended december 31 , 2011. the decrease of approximately $ 679,000 is primarily related to the decrease in development-related costs as we finalized the phase 2 clinical trial for evk-001 and engaged with the fda for phase 3 planning . general and administrative expenses . general and administrative expenses were approximately $ 837,000 for the year ended december 31 , 2012 , compared to approximately $ 571,000 for the year ended december 31 , 2011. the increase of approximately $ 266,000 is primarily related to an increase in accruals for bonus payments to our officers in 2012. other income ( expense ) . other income ( expense ) was approximately $ ( 15,000 ) for the year ended december 31 , 2012 and primarily consisted of approximately $ ( 24,000 ) of interest expense related to advances under our loan and security agreement , offset by approximately $ 2,000 of interest income and $ 7,000 of other income related to the decrease in fair value of our outstanding warrant liability . other income ( expense ) was approximately $ 13,000 for the year ended december 31 , 2011 and primarily consisted of $ 11,000 of interest income and $ 5,000 related to the decrease in fair value of our outstanding warrant liability , offset by $ ( 3,000 ) of interest expense related to advances under our loan and security agreement . story_separator_special_tag the timing and costs associated with manufacturing evk-001 for clinical trials and other studies and , if approved , for commercial sale ; our need and ability to hire additional management , development and scientific personnel ; the cost to maintain , expand and defend the scope of our intellectual property portfolio , including the amount and timing of any payments we may be required to make , or that we may receive , in connection with licensing , filing , prosecution , defense and enforcement of any patents or other intellectual property rights ; the timing and costs associated with establishing sales and marketing capabilities ; market acceptance of evk-001 ; the extent to which we are required to pay milestone or other payments under our questcor asset purchase agreement and the timing of such payments ; the costs of acquiring , licensing or investing in additional businesses , products , product candidates and technologies ; and our need to implement additional internal systems and infrastructure , including financial and reporting systems . off-balance sheet arrangements through december 31 , 2013 , we have not entered into and did not have any relationships with unconsolidated entities or financial collaborations , such as entities often referred to as structured finance or special purpose entities , which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purpose . contractual obligations and commitments our most significant clinical trial expenditures are to cros . the contracts with cros generally are cancellable , with notice , at our option and do not have any cancellation penalties . our long-term debt obligation consists of amounts we are obligated to repay under our loan and security agreement with silicon valley bank , of which we have drawn the full amount of $ 3.0 million as of january 31 , 2013. in 2013 , we made interest-only payments of $ 128,875. in january 2014 we began making the first of 24
| liquidity and capital resources since our inception in 2007 , we have funded our operations primarily from the sale of equity securities and borrowings under our loan and security agreements . prior to our ipo , we received $ 17.7 million in net proceeds from the sale of our series a convertible preferred stock and net proceeds of $ 3.0 million under our current loan and security agreement . during 2013 , we completed our ipo and raised approximately $ 25.1 million . we have incurred losses since inception and negative cash flows from operating activities . as of december 31 , 2013 , we had approximately $ 24.2 million in cash and cash equivalents , working capital of approximately $ 22.1 million and an accumulated deficit of approximately $ 22.7 million . in june 2012 , we entered into a $ 3.0 million loan and security agreement with silicon valley bank which is collateralized by our personal property . interest on advances under the agreement is at a fixed interest rate equal to 4.50 % . the loan and security agreement contains only non-financial covenants . advances under the loan and security agreement had an interest-only period through december 31 , 2013 and a 24-month payback period that commenced in january 2014. as of december 31 , 2013 , we had drawn down the entire $ 3.0 million available under the agreement to fund working capital and have no credit available for future borrowings . in connection with the loan and security agreement , we issued a warrant to silicon valley bank which is immediately exercisable for an aggregate of 12,000 shares of our common stock , at an exercise price of $ 7.50 per share . we expect to continue to incur significant expenses and increasing operating losses for at least the next several years .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources since our inception in 2007 , we have funded our operations primarily from the sale of equity securities and borrowings under our loan and security agreements . prior to our ipo , we received $ 17.7 million in net proceeds from the sale of our series a convertible preferred stock and net proceeds of $ 3.0 million under our current loan and security agreement . during 2013 , we completed our ipo and raised approximately $ 25.1 million . we have incurred losses since inception and negative cash flows from operating activities . as of december 31 , 2013 , we had approximately $ 24.2 million in cash and cash equivalents , working capital of approximately $ 22.1 million and an accumulated deficit of approximately $ 22.7 million . in june 2012 , we entered into a $ 3.0 million loan and security agreement with silicon valley bank which is collateralized by our personal property . interest on advances under the agreement is at a fixed interest rate equal to 4.50 % . the loan and security agreement contains only non-financial covenants . advances under the loan and security agreement had an interest-only period through december 31 , 2013 and a 24-month payback period that commenced in january 2014. as of december 31 , 2013 , we had drawn down the entire $ 3.0 million available under the agreement to fund working capital and have no credit available for future borrowings . in connection with the loan and security agreement , we issued a warrant to silicon valley bank which is immediately exercisable for an aggregate of 12,000 shares of our common stock , at an exercise price of $ 7.50 per share . we expect to continue to incur significant expenses and increasing operating losses for at least the next several years .
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Suspicious Activity Report : our obligation to pay such royalties will terminate upon the expiration of the last patent right covering evk-001 , which is expected to occur in 2030. initial public offering and related transactions on september 30 , 2013 , we completed our ipo , whereby we sold 2,100,000 shares of common stock at $ 12.00 per share . on october 8 , 2013 , the underwriters for our ipo exercised the over-allotment option to purchase an additional 315,000 shares of our common stock at $ 12.00 per share . net proceeds from the ipo , including the exercise of the over-allotment option , were determined as follows : gross proceeds ( including over-allotment ) $ 28,980,000 underwriting discounts and commissions and non-accountable expense allowance ( 2,344,875 ) total offering costs ( excluding value of warrants granted to underwriter of $ 470,000 ) ( 1,514,177 ) net proceeds $ 25,120,948 additionally , upon the closing of the ipo , certain related transactions occurred : the conversion of all outstanding shares of our convertible preferred stock into 2,439,002 shares of our common stock ; retention payments in the amount of $ 355,000 became payable to our executive officers . such amount was recorded as expense on a straight-line basis from may 22 , 2013 ( the date of the retention agreements entered into with the executive officers ) through december 24 , 2013 , the date at which the final payment was due based on continued employment . since the terms of the payment required the occurrence of either a change in control of the company or an equity financing , neither of which were considered probable to occur until they happen , a catch-up expense of $ 202,857 was recorded at the time of our ipo . the executive officers remained with the company through december 24 , 2013 and received the full retention payment ; 36 the issuance of warrants to purchase 84,000 shares of our common stock to the representative of the underwriters of our ipo and certain of its affiliates . the warrants will become exercisable at a price of $ 21.00 per share beginning on september 24 , 2014 and will expire on september 24 , 2018. the initial fair value of the warrants of $ 470,000 was determined using the black-scholes option pricing model on the date of the ipo and recorded as a cost of the issuance of common stock from our ipo and charged to additional paid-in capital ; the conversion of warrants to purchase 110,000 shares of convertible preferred stock into warrants to purchase 22,000 shares of our common stock and the resultant reclassification of the $ 187,000 warrant liability to additional paid-in capital ; and the filing of an amended and restated certificate of incorporation to authorize 50,000,000 shares of common stock and 5,000,000 shares of undesignated preferred stock . financial operations overview research and development expenses we expense all research and development expenses as they are incurred . research and development expenses primarily include : clinical trial and regulatory-related costs ; expenses incurred under agreements with contract research organizations , or cros , investigative sites and consultants that conduct our clinical trials ; manufacturing and stability testing costs and related supplies and materials ; and employee-related expenses , including salaries , benefits , travel and stock-based compensation expense . all of our research and development expenses to date have been incurred in connection with evk-001 . we expect our research and development expenses to increase for the foreseeable future as we advance evk-001 through clinical development , including the conduct of our planned phase 3 clinical trial . the process of conducting clinical trials necessary to obtain regulatory approval is costly and time consuming . we are unable to estimate with any certainty the costs we will incur in the continued development of evk-001 . however , we currently estimate the costs to complete our phase 3 clinical trial in women , our companion clinical trial in men and a thorough qt study of evk-001 will be approximately $ 15.0 million . clinical development timelines , the probability of success and development costs can differ materially from expectations . we may never succeed in achieving marketing approval for our product candidate . the costs of clinical trials may vary significantly over the life of a project owing to , but not limited to , the following : per patient trial costs ; the number of sites included in the trials ; the countries in which the trials are conducted ; the length of time required to enroll eligible patients ; the number of patients that participate in the trials ; the number of doses that patients receive ; the cost of comparative agents used in trials ; the drop-out or discontinuation rates of patients ; potential additional safety monitoring or other studies requested by regulatory agencies ; the duration of patient follow-up ; and the efficacy and safety profile of the product candidate . we do not expect evk-001 to be commercially available , if at all , for the next few years . general and administrative expenses general and administrative expenses consist primarily of salaries and related benefits , including stock-based compensation . other general and administrative expenses include professional fees for accounting , tax , patent costs , legal services , insurance and facility costs . we expect that general and administrative expenses will increase in the future as we expand our operating activities and incur additional costs associated with being a publicly-traded company and maintaining compliance with exchange listing and securities and exchange commission requirements . these increases will likely include higher consulting costs , legal fees , accounting fees , directors ' and officers ' liability insurance premiums and fees associated with investor relations . story_separator_special_tag results of operations comparison of years ended december 31 , 2013 and 2012 the following table summarizes the results of our operations for the fiscal years ended december 31 , 2013 and 2012 : replace_table_token_7_th research and development expenses . research and development expenses were approximately $ 957,000 for the year ended december 31 , 2013 , compared to approximately $ 1,165,000 for the year ended december 31 , 2012. the decrease of approximately $ 209,000 is primarily related to the decrease in executive compensation allocated to research and development as we worked to raise capital in 2013 and to the reversal of the 2012 bonus accrual due to the election by our board of directors in april 2013 to not pay 2012 bonuses in order to conserve cash . general and administrative expenses . general and administrative expenses were approximately $ 1,645,000 for the year ended december 31 , 2013 , compared to approximately $ 837,000 for the year ended december 31 , 2012. the increase of approximately $ 808,000 is primarily related to a larger portion of our labor costs being allocated to general and administrative activities in 2013 in preparation for our ipo and the payment for the executive team 's retention payments of $ 355,000 , offset by the reversal of the 2012 bonus accrual due to the election by our board of directors in april 2013 to not pay 2012 bonuses . 39 other income ( expense ) . other income ( expense ) was approximately $ ( 235,000 ) for the year ended december 31 , 2013 and primarily consisted of approximately $ ( 160,000 ) of interest expense and $ ( 82,000 ) related to the increase in the fair value of our outstanding warrant liability , and offset by approximately $ 7,000 of interest income . other income ( expense ) was approximately $ ( 15,000 ) for the year ended december 31 , 2012 and primarily consisted of approximately $ ( 24,000 ) of interest expense related to advances under our loan and security agreement , offset by approximately $ 2,000 of interest income and $ 7,000 of other income related to the decrease in fair value of our outstanding warrant liability . comparison of years ended december 31 , 2012 and 2011 the following table summarizes the results of our operations for the fiscal years ended december 31 , 2012 and 2011 : replace_table_token_8_th research and development expenses . research and development expenses were approximately $ 1,165,000 for the year ended december 31 , 2012 , compared to approximately $ 1,844,000 for the year ended december 31 , 2011. the decrease of approximately $ 679,000 is primarily related to the decrease in development-related costs as we finalized the phase 2 clinical trial for evk-001 and engaged with the fda for phase 3 planning . general and administrative expenses . general and administrative expenses were approximately $ 837,000 for the year ended december 31 , 2012 , compared to approximately $ 571,000 for the year ended december 31 , 2011. the increase of approximately $ 266,000 is primarily related to an increase in accruals for bonus payments to our officers in 2012. other income ( expense ) . other income ( expense ) was approximately $ ( 15,000 ) for the year ended december 31 , 2012 and primarily consisted of approximately $ ( 24,000 ) of interest expense related to advances under our loan and security agreement , offset by approximately $ 2,000 of interest income and $ 7,000 of other income related to the decrease in fair value of our outstanding warrant liability . other income ( expense ) was approximately $ 13,000 for the year ended december 31 , 2011 and primarily consisted of $ 11,000 of interest income and $ 5,000 related to the decrease in fair value of our outstanding warrant liability , offset by $ ( 3,000 ) of interest expense related to advances under our loan and security agreement . story_separator_special_tag the timing and costs associated with manufacturing evk-001 for clinical trials and other studies and , if approved , for commercial sale ; our need and ability to hire additional management , development and scientific personnel ; the cost to maintain , expand and defend the scope of our intellectual property portfolio , including the amount and timing of any payments we may be required to make , or that we may receive , in connection with licensing , filing , prosecution , defense and enforcement of any patents or other intellectual property rights ; the timing and costs associated with establishing sales and marketing capabilities ; market acceptance of evk-001 ; the extent to which we are required to pay milestone or other payments under our questcor asset purchase agreement and the timing of such payments ; the costs of acquiring , licensing or investing in additional businesses , products , product candidates and technologies ; and our need to implement additional internal systems and infrastructure , including financial and reporting systems . off-balance sheet arrangements through december 31 , 2013 , we have not entered into and did not have any relationships with unconsolidated entities or financial collaborations , such as entities often referred to as structured finance or special purpose entities , which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purpose . contractual obligations and commitments our most significant clinical trial expenditures are to cros . the contracts with cros generally are cancellable , with notice , at our option and do not have any cancellation penalties . our long-term debt obligation consists of amounts we are obligated to repay under our loan and security agreement with silicon valley bank , of which we have drawn the full amount of $ 3.0 million as of january 31 , 2013. in 2013 , we made interest-only payments of $ 128,875. in january 2014 we began making the first of 24
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2,555 | we have announced results of two phase 3 clinical trials for the prevention of cisplatin induced hearing loss , or ototoxicity in children including the pivotal phase 3 study siopel 6 , โ a multicentre open label randomised phase 3 trial of the efficacy of sodium thiosulfate in reducing ototoxicity in patients receiving cisplatin chemotherapy for standard risk hepatoblastoma , โ and the proof of concept phase 3 study โ a randomized phase 3 study of sodium thiosulfate for the prevention of cisplatin-induced ototoxicity in children โ . we have announced results of two phase 3 clinical trials for the prevention of cisplatin induced hearing loss , or ototoxicity in children including the pivotal phase 3 study siopel 6 , โ a multicentre open label randomised phase 3 trial of the efficacy of sodium thiosulfate in reducing ototoxicity in patients receiving cisplatin chemotherapy for standard risk hepatoblastoma , โ and the proof of concept phase 3 study โ a randomized phase 3 study of sodium thiosulfate for the prevention of cisplatin-induced ototoxicity in children โ . we continue to focus our resources on the development of pedmark tm . we have licensed from ohsu intellectual property rights for the use of pedmark tm as a chemoprotectant and are developing pedmark tm as a protectant against the hearing loss often caused by platinum-based anti-cancer agents in children . preclinical and clinical studies conducted by ohsu and others have indicated that pedmark tm can effectively reduce the incidence of hearing loss caused by platinum-based anti-cancer agents . hearing loss among children receiving platinum-based chemotherapy is frequent , permanent and often severely disabling . the incidence of hearing loss in these children depends upon the dose and duration of chemotherapy , and many of these children require lifelong hearing aids . in addition , adults undergoing chemotherapy for several common malignancies , including ovarian cancer , testicular cancer , and particularly head and neck cancer and brain cancer , often receive intensive platinum-based therapy and may experience severe , irreversible hearing loss , particularly in the high frequencies . we estimate in the u.s. and europe that annually over 10,000 children with solid tumors are treated with platinum agents . the vast majority of these newly diagnosed tumors are localized and classified as low to intermediate risk in nature . these localized cancers may have overall survival rates of greater than 80 % , further emphasizing the importance of quality of life after treatment . the incidence of hearing loss in these children depends upon the dose and duration of chemotherapy , and many of these children require lifelong hearing aids . there is currently no established preventive agent for this hearing loss and only expensive , technically difficult and sub-optimal cochlear ( inner ear ) implants have been shown to provide some benefit . infants and young children at critical stages of development lack speech language development and literacy , and older children and adolescents lack speech language development and literacy , and older children and adolescents lack social-emotional development and educational achievement . in march 2018 , pedmark tm received breakthrough therapy and fast track designations from the fda . further , pedmark tm has received orphan drug designation in the u.s. in this setting . we initiated our rolling new drug application ( โ nda โ ) for pedmark tm for the prevention of ototoxicity induced by cisplatin chemotherapy patients 1 month to < 18 years of age with localized , non-metastatic , solid tumors with the fda in december 2018. we announced that we had submitted full completion of the nda in february 2020. on april 13 , 2020 , we announced that the fda had accepted for filing and granted priority review for our nda . the fda set a prescription drug fee act ( โ pdufa โ ) target action date of august 10 , 2020 for the completion of the fda 's review . on august 10 , 2020 , we announced that we received a crl from the fda regarding our nda for pedmark tm , which identified deficiencies in the third-party manufacturing facility that manufactures pedmark tm on our behalf . importantly , no clinical safety or efficacy issues were identified during the review and there is no requirement for further clinical data . in the fourth quarter of 2020 , we engaged in a type a meeting with the fda concerning the crl that we believe was constructive and collaborative . we are working closely with our third-party drug manufacturer and the fda to fully address the crl , and we plan to resubmit our nda for pedmark tm in the second quarter of 2021 . 47 in august 2018 , the pediatric committee ( โ pdco โ ) of the european medicines agency ( โ ema โ ) accepted our pediatric investigation plan ( pip ) for sodium thiosulfate with the trade name pedmarqsi for the condition of the prevention of platinum-induced hearing loss . an accepted pip is a prerequisite for filing a marketing authorization application ( โ maa โ ) for any new medicinal product in europe . the indication targeted by our pip is for the prevention of platinum-induced ototoxic hearing loss for standard risk hepatoblastoma ( sr-hb ) . additional tumor types of the proposed indication will be subject to the committee for medicinal products for human use ( โ chmp โ ) assessment at the time of the maa . no deferred clinical studies were required in the positive opinion given by pdco . we were also advised that sodium thiosulfate ( tradename to be determined ) is eligible for submission of an application for a pediatric use marketing authorization ( โ puma โ ) . story_separator_special_tag 48 results of operations fiscal 2020 versus fiscal 2019 replace_table_token_2_th ยท revenues reported represent royalties related to elion deal with processa pharmaceuticals , inc. fennec received $ 0.005 million in cash and 41,250 in restricted shares of processa pharmaceuticals , inc. ยท research and development expense decreased by $ 0.5 million in fiscal 2020 as compared to fiscal 2019 , primarily due to the shift from research and development to pre-commercialization efforts for pedmark tm which took place in the first nine months of 2020 . ยท the $ 5.5 million increase in general and administrative expenses is attributed to the increase in pre-commercialization expenses . further there was a small rise in compensation to officers , directors and key contract employees in fiscal 2020 as compared to fiscal 2019 . ยท amortization expense relates to the bridge bank loan facility as the loan origination fees were capitalized in fiscal 2019 and 2020. after receiving the crl from the fda in august 2020 , management decided to amortize the remaining amounts associated with the loan facility . the facility expired on december 31 , 2020 . ยท interest income decreased in fiscal 2020 as compared to 2019 , due to lower interest rates on money market accounts for the comparable periods . ยท there was an unrealized gain of $ 0.1 million on the processa shares between the date acquired , october 30 , 2020 , and december 31 , 2020. going forward , the processa shares will be marked to market at each balance sheet date . the resulting change in value will result in an unrealized gain or loss . quarterly information the following table presents selected consolidated financial data for each of the last eight quarters through december 31 , 2020 , as prepared under generally accepted accounting principles within the united states , or u.s. gaap ( dollars in thousands , except per share information ) . replace_table_token_3_th quarter ended december 31 , 2020 versus 2019 replace_table_token_4_th 49 revenues reported represent royalties related to elion deal with processa pharmaceuticals , inc. fennec received $ 0.005 million in cash and 41,250 in restricted shares of processa pharmaceuticals , inc. we reported a loss from operations of $ 3.3 million for the three months ended december 31 , 2020 , compared to a loss from operations of $ 3.7 million for the same period in 2019. research and development expenses totaled $ 1.2 million for the three months ended december 31 , 2020 , which was the same for the same period in 2019. general and administrative expenses decreased by $ 0.2 million in the three months ended december 31 , 2020 , as compared to the same period in 2019. the decrease arises from our reduced pre-commercialization activities for pedmark tm as we focus on preparing to resubmit our nda application to the fda . there was an unrealized gain of $ 0.1 million on the processa shares between the date acquired , october 30 , 2020 , and december 31 , 2020. going forward , the processa shares will be marked to market at each balance sheet date . the resulting change in value will result in an unrealized gain or loss . replace_table_token_5_th story_separator_special_tag margin : 0pt 0 `` > none . critical accounting policies and estimates the preparation of financial statements in conformity with u.s. gaap requires management to make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expense during the reporting period . these estimates are based on assumptions and judgments that may be affected by commercial , economic and other factors . actual results could differ from these estimates . an accounting policy is considered to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made , and if different estimates reasonably could have been used , or changes in the accounting estimates that are reasonably likely to occur periodically , could materially impact the financial statements . the following description of critical accounting policies , judgments and estimates should be read in conjunction with our december 31 , 2020 consolidated financial statements . stock-based compensation the calculation of the fair values of our stock-based compensation plans requires estimates that require management 's judgments . under asc 718 , the fair value of each stock option is estimated on the grant date using the black-scholes option-pricing model . the valuation models require assumptions and estimates to determine expected volatility , expected life , expected dividends and expected risk-free interest rates . the expected volatility was determined using historical volatility of our stock based on the contractual life of the award . the risk-free interest rate assumption was based on the yield on zero-coupon u.s. treasury strips at the award grant date . we also used historical data to estimate forfeiture experience . in valuing options granted in the fiscal years ended december 31 , 2020 and 2019 , we used the following weighted average assumptions : 51 replace_table_token_7_th common shares and warrants common shares are recorded as the net proceeds received on issuance after deducting all share issuance costs and the relative fair value of investor warrants . warrants are recorded at relative fair value and are deducted from the proceeds of common shares and recorded on the consolidated statements of shareholders ' equity as additional paid-in capital . outstanding share information our outstanding comparative share data at december 31 , 2020 and december 31 , 2019 is as follows ( in thousands ) : replace_table_token_8_th newly adopted and recent accounting pronouncements in august 2018 , the fasb issued asu 2018-13 , fair value measurement ( topic 820 ) : disclosure framework-changes to the disclosure requirements for fair value measurement . asu 2018-13 removes certain disclosures , modifies certain disclosures and
| liquidity and capital resources ยท there was a $ 16.7 million increase in cash and cash equivalents between december 31 , 2020 and december 31 , 2019. the net increase was the result of our may 2020 public offering of common shares , which raised net proceeds of $ 32.0 million , as well as $ 0.5 million from various stock option exercises , offset by cash used for operating activities . during the period ended december 31 , 2020 , cash for operations was used mainly on the pre-commercialization activities of pedmark tm and regulatory submission activities relating to the nda . ยท the increase in other current assets between december 31 , 2020 and december 31 , 2019 primarily relates to the value of the processa shares and an increase in the prepaid amount for director and officer insurance premiums and costs associated with our at the market offering agreement , which was disclosed on october 20 , 2020 . ยท current liabilities at december 31 , 2020 increased $ 0.076 million compared to december 31 , 2019 primarily due to a minor rise in accounts payable associated with our commercialization and manufacturing activities for the production of pedmark tm and related regulatory expenses at year-end 2020 . ยท working capital increased between december 31 , 2020 and december 31 , 2019 by $ 17.5 million . the increase was a result of cash used in operations offset by $ 32.0 million from our may 2020 public offering of common shares , $ 0.5 million from stock option exercises and $ 0.1 million in interest income . cash outflows related to the regulatory and pre-commercial development activities of pedmark tm and general and administrative expenses .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources ยท there was a $ 16.7 million increase in cash and cash equivalents between december 31 , 2020 and december 31 , 2019. the net increase was the result of our may 2020 public offering of common shares , which raised net proceeds of $ 32.0 million , as well as $ 0.5 million from various stock option exercises , offset by cash used for operating activities . during the period ended december 31 , 2020 , cash for operations was used mainly on the pre-commercialization activities of pedmark tm and regulatory submission activities relating to the nda . ยท the increase in other current assets between december 31 , 2020 and december 31 , 2019 primarily relates to the value of the processa shares and an increase in the prepaid amount for director and officer insurance premiums and costs associated with our at the market offering agreement , which was disclosed on october 20 , 2020 . ยท current liabilities at december 31 , 2020 increased $ 0.076 million compared to december 31 , 2019 primarily due to a minor rise in accounts payable associated with our commercialization and manufacturing activities for the production of pedmark tm and related regulatory expenses at year-end 2020 . ยท working capital increased between december 31 , 2020 and december 31 , 2019 by $ 17.5 million . the increase was a result of cash used in operations offset by $ 32.0 million from our may 2020 public offering of common shares , $ 0.5 million from stock option exercises and $ 0.1 million in interest income . cash outflows related to the regulatory and pre-commercial development activities of pedmark tm and general and administrative expenses .
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Suspicious Activity Report : we have announced results of two phase 3 clinical trials for the prevention of cisplatin induced hearing loss , or ototoxicity in children including the pivotal phase 3 study siopel 6 , โ a multicentre open label randomised phase 3 trial of the efficacy of sodium thiosulfate in reducing ototoxicity in patients receiving cisplatin chemotherapy for standard risk hepatoblastoma , โ and the proof of concept phase 3 study โ a randomized phase 3 study of sodium thiosulfate for the prevention of cisplatin-induced ototoxicity in children โ . we have announced results of two phase 3 clinical trials for the prevention of cisplatin induced hearing loss , or ototoxicity in children including the pivotal phase 3 study siopel 6 , โ a multicentre open label randomised phase 3 trial of the efficacy of sodium thiosulfate in reducing ototoxicity in patients receiving cisplatin chemotherapy for standard risk hepatoblastoma , โ and the proof of concept phase 3 study โ a randomized phase 3 study of sodium thiosulfate for the prevention of cisplatin-induced ototoxicity in children โ . we continue to focus our resources on the development of pedmark tm . we have licensed from ohsu intellectual property rights for the use of pedmark tm as a chemoprotectant and are developing pedmark tm as a protectant against the hearing loss often caused by platinum-based anti-cancer agents in children . preclinical and clinical studies conducted by ohsu and others have indicated that pedmark tm can effectively reduce the incidence of hearing loss caused by platinum-based anti-cancer agents . hearing loss among children receiving platinum-based chemotherapy is frequent , permanent and often severely disabling . the incidence of hearing loss in these children depends upon the dose and duration of chemotherapy , and many of these children require lifelong hearing aids . in addition , adults undergoing chemotherapy for several common malignancies , including ovarian cancer , testicular cancer , and particularly head and neck cancer and brain cancer , often receive intensive platinum-based therapy and may experience severe , irreversible hearing loss , particularly in the high frequencies . we estimate in the u.s. and europe that annually over 10,000 children with solid tumors are treated with platinum agents . the vast majority of these newly diagnosed tumors are localized and classified as low to intermediate risk in nature . these localized cancers may have overall survival rates of greater than 80 % , further emphasizing the importance of quality of life after treatment . the incidence of hearing loss in these children depends upon the dose and duration of chemotherapy , and many of these children require lifelong hearing aids . there is currently no established preventive agent for this hearing loss and only expensive , technically difficult and sub-optimal cochlear ( inner ear ) implants have been shown to provide some benefit . infants and young children at critical stages of development lack speech language development and literacy , and older children and adolescents lack speech language development and literacy , and older children and adolescents lack social-emotional development and educational achievement . in march 2018 , pedmark tm received breakthrough therapy and fast track designations from the fda . further , pedmark tm has received orphan drug designation in the u.s. in this setting . we initiated our rolling new drug application ( โ nda โ ) for pedmark tm for the prevention of ototoxicity induced by cisplatin chemotherapy patients 1 month to < 18 years of age with localized , non-metastatic , solid tumors with the fda in december 2018. we announced that we had submitted full completion of the nda in february 2020. on april 13 , 2020 , we announced that the fda had accepted for filing and granted priority review for our nda . the fda set a prescription drug fee act ( โ pdufa โ ) target action date of august 10 , 2020 for the completion of the fda 's review . on august 10 , 2020 , we announced that we received a crl from the fda regarding our nda for pedmark tm , which identified deficiencies in the third-party manufacturing facility that manufactures pedmark tm on our behalf . importantly , no clinical safety or efficacy issues were identified during the review and there is no requirement for further clinical data . in the fourth quarter of 2020 , we engaged in a type a meeting with the fda concerning the crl that we believe was constructive and collaborative . we are working closely with our third-party drug manufacturer and the fda to fully address the crl , and we plan to resubmit our nda for pedmark tm in the second quarter of 2021 . 47 in august 2018 , the pediatric committee ( โ pdco โ ) of the european medicines agency ( โ ema โ ) accepted our pediatric investigation plan ( pip ) for sodium thiosulfate with the trade name pedmarqsi for the condition of the prevention of platinum-induced hearing loss . an accepted pip is a prerequisite for filing a marketing authorization application ( โ maa โ ) for any new medicinal product in europe . the indication targeted by our pip is for the prevention of platinum-induced ototoxic hearing loss for standard risk hepatoblastoma ( sr-hb ) . additional tumor types of the proposed indication will be subject to the committee for medicinal products for human use ( โ chmp โ ) assessment at the time of the maa . no deferred clinical studies were required in the positive opinion given by pdco . we were also advised that sodium thiosulfate ( tradename to be determined ) is eligible for submission of an application for a pediatric use marketing authorization ( โ puma โ ) . story_separator_special_tag 48 results of operations fiscal 2020 versus fiscal 2019 replace_table_token_2_th ยท revenues reported represent royalties related to elion deal with processa pharmaceuticals , inc. fennec received $ 0.005 million in cash and 41,250 in restricted shares of processa pharmaceuticals , inc. ยท research and development expense decreased by $ 0.5 million in fiscal 2020 as compared to fiscal 2019 , primarily due to the shift from research and development to pre-commercialization efforts for pedmark tm which took place in the first nine months of 2020 . ยท the $ 5.5 million increase in general and administrative expenses is attributed to the increase in pre-commercialization expenses . further there was a small rise in compensation to officers , directors and key contract employees in fiscal 2020 as compared to fiscal 2019 . ยท amortization expense relates to the bridge bank loan facility as the loan origination fees were capitalized in fiscal 2019 and 2020. after receiving the crl from the fda in august 2020 , management decided to amortize the remaining amounts associated with the loan facility . the facility expired on december 31 , 2020 . ยท interest income decreased in fiscal 2020 as compared to 2019 , due to lower interest rates on money market accounts for the comparable periods . ยท there was an unrealized gain of $ 0.1 million on the processa shares between the date acquired , october 30 , 2020 , and december 31 , 2020. going forward , the processa shares will be marked to market at each balance sheet date . the resulting change in value will result in an unrealized gain or loss . quarterly information the following table presents selected consolidated financial data for each of the last eight quarters through december 31 , 2020 , as prepared under generally accepted accounting principles within the united states , or u.s. gaap ( dollars in thousands , except per share information ) . replace_table_token_3_th quarter ended december 31 , 2020 versus 2019 replace_table_token_4_th 49 revenues reported represent royalties related to elion deal with processa pharmaceuticals , inc. fennec received $ 0.005 million in cash and 41,250 in restricted shares of processa pharmaceuticals , inc. we reported a loss from operations of $ 3.3 million for the three months ended december 31 , 2020 , compared to a loss from operations of $ 3.7 million for the same period in 2019. research and development expenses totaled $ 1.2 million for the three months ended december 31 , 2020 , which was the same for the same period in 2019. general and administrative expenses decreased by $ 0.2 million in the three months ended december 31 , 2020 , as compared to the same period in 2019. the decrease arises from our reduced pre-commercialization activities for pedmark tm as we focus on preparing to resubmit our nda application to the fda . there was an unrealized gain of $ 0.1 million on the processa shares between the date acquired , october 30 , 2020 , and december 31 , 2020. going forward , the processa shares will be marked to market at each balance sheet date . the resulting change in value will result in an unrealized gain or loss . replace_table_token_5_th story_separator_special_tag margin : 0pt 0 `` > none . critical accounting policies and estimates the preparation of financial statements in conformity with u.s. gaap requires management to make estimates that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expense during the reporting period . these estimates are based on assumptions and judgments that may be affected by commercial , economic and other factors . actual results could differ from these estimates . an accounting policy is considered to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made , and if different estimates reasonably could have been used , or changes in the accounting estimates that are reasonably likely to occur periodically , could materially impact the financial statements . the following description of critical accounting policies , judgments and estimates should be read in conjunction with our december 31 , 2020 consolidated financial statements . stock-based compensation the calculation of the fair values of our stock-based compensation plans requires estimates that require management 's judgments . under asc 718 , the fair value of each stock option is estimated on the grant date using the black-scholes option-pricing model . the valuation models require assumptions and estimates to determine expected volatility , expected life , expected dividends and expected risk-free interest rates . the expected volatility was determined using historical volatility of our stock based on the contractual life of the award . the risk-free interest rate assumption was based on the yield on zero-coupon u.s. treasury strips at the award grant date . we also used historical data to estimate forfeiture experience . in valuing options granted in the fiscal years ended december 31 , 2020 and 2019 , we used the following weighted average assumptions : 51 replace_table_token_7_th common shares and warrants common shares are recorded as the net proceeds received on issuance after deducting all share issuance costs and the relative fair value of investor warrants . warrants are recorded at relative fair value and are deducted from the proceeds of common shares and recorded on the consolidated statements of shareholders ' equity as additional paid-in capital . outstanding share information our outstanding comparative share data at december 31 , 2020 and december 31 , 2019 is as follows ( in thousands ) : replace_table_token_8_th newly adopted and recent accounting pronouncements in august 2018 , the fasb issued asu 2018-13 , fair value measurement ( topic 820 ) : disclosure framework-changes to the disclosure requirements for fair value measurement . asu 2018-13 removes certain disclosures , modifies certain disclosures and
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2,556 | ( 2 ) year-end rig count as reported by baker hughes incorporated - worldwide rig count . ( 3 ) average daily and year-end west texas intermediate crude spot price as reported by the u.s. energy information administration . ( 4 ) average daily and year-end europe brent crude spot price as reported by the u.s. energy information administration . ( 5 ) average daily and year-end henry hub natural gas spot price as reported by the u.s. energy information administration . 19 the prices for both wti and brent crude oil began to weaken after the opec meeting held in november 2014. average prices for the majority of the 2014 calendar year were in excess of $ 99 per barrel for wti and in excess of $ 105 per barrel for brent ; however , both were down to approximately $ 55 per barrel by the end of 2014 and less than $ 40 per barrel by the end of 2015. the volatility and significant reduction in the average price of crude oil during 2015 and 2016 resulted in a significant decrease in the activities associated with both the exploration and production of oil during 2015 and throughout most of 2016. however , crude oil prices , although still volatile , began to improve during the second half of 2016 and continued to strengthen during 2017 , especially during the second half of 2017. on average , pricing for crude oil improved over 16 % for 2017 over 2016 , which resulted in much improved levels of land-based activity associated with the exploration and production of oil in the united states . in north america , the land-based rig count decreased 62 % during 2015 and another 53 % during the first half of 2016 , which greatly impacted both services and product sales to this market over this time period . although the north america rig count improved at the end of 2016 it still remained almost 20 % below 2015 levels and continued to strengthen throughout most of 2017. we saw resilient levels of activities on development projects and producing fields in the u.s. unconventional reservoirs during the second half of 2016 which continued and expanded during 2017 as we began the recovery phase of this business cycle . outside of north america , activities associated with the exploration for and production of oil have also decreased from 2014 levels , although not as significantly as the land-based activities in north america . our clients ' activities in the international and deepwater markets declined during 2015 and 2016 and remained at these lower levels in 2017 ; however , we believe these markets have shown signs of recovery as our clients have announced several new major capital projects . results of operations operating results for the year ended december 31 , 2017 compared to the years ended december 31 , 2016 and 2015 we evaluate our operating results by analyzing revenue , operating income and net income margin ( defined as net income divided by total revenue ) . since we have a relatively fixed cost structure , increases in revenue generally translate into higher operating income results as well as net income margin percentages . results for the years ended december 31 , 2017 , 2016 and 2015 are summarized in the following chart : 20 results of operations as a percentage of applicable revenue are as follows ( dollars in thousands ) : replace_table_token_4_th services revenue services revenue increased to $ 481.5 million in 2017 from $ 470.3 million in 2016 ; however , services revenue for 2016 decreased from $ 612.0 million in 2015 . the upward trend in the average price of crude oil during 2017 resulted in continued strengthening of activities associated with the exploration and production of oil during the second half of 2017. however , the most significant increase was realized in onshore activities within the united states while the decrease in international activities continued during most of 2017. average prices for wti crude oil increased 17 % in 2017 compared to an 11 % decrease in 2016 and average prices for brent crude oil increased by 24 % in 2017 compared to a 17 % decrease in 2016. as a result , the average global rig count climbed 27 % in 2017 compared to a decline of 32 % in 2016 , primarily driven by increases in the north american rig count . over this same time period , our service revenue increased slightly by 2.4 % in 2017 compared to 2016 and decreased only 23 % in 2016 compared to 2015 , as demand for our analytical , diagnostic , and completion services was less impacted by the significant decrease in drilling activities . wells must be drilled and or completed , stimulated , cored and have reservoir fluid samples collected , before we see the benefits of the increased commodity prices . the improvements in global crude oil prices during 2017 are positive indicators of a balancing market and support for future investments , as we continued our focus on worldwide crude oil related projects , including those related to the development of fields offshore south america and in the middle east . product sales revenue product sales revenue , which is tied more to completions in north america , increased 43 % to $ 178.3 million in 2017 from $ 124.5 million in 2016 ; however , product sales revenue for 2016 decreased from $ 185.6 million in 2015 .the average rig count for the u.s. and canada increased 38 % during 2017 compared to a 45 % decrease in 2016. the 43 % increase in product sales revenue outpaced the rig count increase due to our differentiated well completion product sales surpassing the industry activity levels in north america . story_separator_special_tag based on recent developments , and modest strengthening in the price of crude oil and natural gas , we believe that the level of activities and workflows experienced in 2017 will continue into 2018 and will strengthen for north america . additionally , we believe the trend in recent public announcements of major offshore and international projects by our clients will continue , and these announcements are signs that a recovery of the offshore deepwater and international markets are also improving . an increase in the activities in these markets could positively impact our revenues , operating income and operating margins as well . we expect to meet ongoing working capital needs , capital expenditure requirements and funding of our dividend and share repurchase programs from a combination of cash on hand , cash flow from operating activities and available borrowings under our credit facility . critical accounting estimates the preparation of financial statements in accordance with u.s. gaap requires us to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period . we evaluate our estimates on an ongoing basis and determine the adequacy of our estimates based on our historical experience and various other assumptions that we believe are reasonable under the circumstances . by nature , these judgments are subject to an inherent degree of uncertainty . we consider an accounting estimate to be critical if it is highly subjective and if changes in the estimate 28 under different assumptions would result in a material impact on our financial condition and results of operations . the following transaction types require significant judgment and , therefore , are considered critical accounting policies as of december 31 , 2017 . allowance for doubtful accounts we evaluate whether client receivables are collectible . we perform ongoing credit evaluations of our clients and monitor collections and payments in order to maintain a provision for estimated uncollectible accounts based on our historical collection experience and our current aging of client receivables outstanding in addition to clients ' representations and our understanding of the economic environment in which our clients operate . based on our review , we establish or adjust allowances for specific clients and the accounts receivable as a whole . our allowance for doubtful accounts decreased to $ 2.6 million as of december 31 , 2017 , compared to $ 3.1 million as of december 31 , 2016 . income taxes our income tax expense includes income taxes of the netherlands , the u.s. and other foreign countries as well as local , state and provincial income taxes . we recognize deferred tax assets or liabilities for the differences between the financial statement carrying amount and tax basis of assets and liabilities using enacted tax rates in effect for the years in which the asset is recovered or the liability is settled . we estimate the likelihood of the recoverability of our deferred tax assets ( particularly , net operating loss carry-forwards ) . any valuation allowance recorded is based on estimates and assumptions of taxable income into the future and a determination is made of the magnitude of deferred tax assets which are more likely than not to be realized . valuation allowances of our net deferred tax assets aggregated to $ 8.2 million and $ 10.0 million at december 31 , 2017 and 2016 , respectively . if these estimates and related assumptions change in the future , we may be required to record additional valuation allowances against our deferred tax assets and our effective tax rate may increase which could result in a material adverse effect on our financial position , results of operations and cash flows . we have not provided for deferred taxes on the unremitted earnings of certain subsidiaries that we consider to be indefinitely reinvested . should we make a distribution of the unremitted earnings of these subsidiaries , we may be required to record additional taxes . we record a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in our tax return . we also recognize interest and penalties , if any , related to unrecognized tax benefits in income tax expense . long-lived assets , intangibles and goodwill property , plant and equipment are carried at cost less accumulated depreciation . major renewals and improvements are capitalized while maintenance and repair costs are charged to expense as incurred . they are depreciated using the straight-line method based on their individual estimated useful lives , except for leasehold improvements , which are depreciated over the remaining lease term , if shorter . we estimate the useful lives and salvage values of our assets based on historical data of similar assets . when long-lived assets are sold or retired , the remaining costs and related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in income . these capitalized long-lived assets could become impaired if our operating plans or business environment changes . intangible assets , including patents , trademarks , and trade names , are carried at cost less accumulated amortization . intangibles with determinable lives are amortized using the straight-line method based on the estimated useful life of the intangible . intangibles with indeterminable lives , which consist primarily of corporate trade names , are not amortized , but are tested for impairment annually or whenever events or changes in circumstances indicate that impairment is possible . we review our long-lived assets , including definite-lived intangible assets , for impairment when events or changes in circumstances indicate that their net book value may not be recovered over their remaining service lives . indicators of possible impairment may include significant declines in activity levels in regions where specific assets or groups of assets are located , extended periods of
| cash flows the following table summarizes cash flows for the years ended december 31 , 2017 , 2016 and 2015 ( in thousands ) : replace_table_token_9_th the decrease in cash provided by operating activities in 2017 compared to 2016 was primarily due to increases in working capital , offset by an increase in net income while the decrease in cash provided by operations in 2016 compared to 2015 was primarily attributable to the industry downturn resulting in a year-over-year decrease in net income , partially offset by reductions in working capital . cash flow used in investing activities in 2017 increased $ 5.8 million compared to 2016 primarily as a result of increased capital expenditures . cash flow used in investing activities in 2016 decreased $ 24.9 million compared to 2015 primarily as a result of a $ 13.8 million acquisition in 2015 and lower capital expenditures in 2016. cash flow used in financing activities in 2017 decreased $ 20.8 million compared to 2016 . cash flow used in financing activities in 2016 decreased $ 55.4 million compared to 2015 . during 2017 , we used $ 16.9 million to repurchase our common shares , $ 97.1 million to pay dividends , and increased our debt balance by $ 10 million . during 2016 , we used $ 7.2 million to repurchase our common shares , $ 95.1 million to pay dividends , and decreased our debt balance by $ 215 million through the issuance of new shares . during 2015 , we used $ 159.7 million to repurchase our common shares and $ 94.2 million to pay dividends , offset by an increase in our debt balance of $ 77 million . during the year ended december 31 , 2017 , we repurchased 158,569 shares of our common stock for an aggregate amount of $ 16.9 million , or an average price of $ 106.63 per share . the repurchase of shares in the open market is at the discretion of management pursuant to shareholder authorization .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows the following table summarizes cash flows for the years ended december 31 , 2017 , 2016 and 2015 ( in thousands ) : replace_table_token_9_th the decrease in cash provided by operating activities in 2017 compared to 2016 was primarily due to increases in working capital , offset by an increase in net income while the decrease in cash provided by operations in 2016 compared to 2015 was primarily attributable to the industry downturn resulting in a year-over-year decrease in net income , partially offset by reductions in working capital . cash flow used in investing activities in 2017 increased $ 5.8 million compared to 2016 primarily as a result of increased capital expenditures . cash flow used in investing activities in 2016 decreased $ 24.9 million compared to 2015 primarily as a result of a $ 13.8 million acquisition in 2015 and lower capital expenditures in 2016. cash flow used in financing activities in 2017 decreased $ 20.8 million compared to 2016 . cash flow used in financing activities in 2016 decreased $ 55.4 million compared to 2015 . during 2017 , we used $ 16.9 million to repurchase our common shares , $ 97.1 million to pay dividends , and increased our debt balance by $ 10 million . during 2016 , we used $ 7.2 million to repurchase our common shares , $ 95.1 million to pay dividends , and decreased our debt balance by $ 215 million through the issuance of new shares . during 2015 , we used $ 159.7 million to repurchase our common shares and $ 94.2 million to pay dividends , offset by an increase in our debt balance of $ 77 million . during the year ended december 31 , 2017 , we repurchased 158,569 shares of our common stock for an aggregate amount of $ 16.9 million , or an average price of $ 106.63 per share . the repurchase of shares in the open market is at the discretion of management pursuant to shareholder authorization .
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Suspicious Activity Report : ( 2 ) year-end rig count as reported by baker hughes incorporated - worldwide rig count . ( 3 ) average daily and year-end west texas intermediate crude spot price as reported by the u.s. energy information administration . ( 4 ) average daily and year-end europe brent crude spot price as reported by the u.s. energy information administration . ( 5 ) average daily and year-end henry hub natural gas spot price as reported by the u.s. energy information administration . 19 the prices for both wti and brent crude oil began to weaken after the opec meeting held in november 2014. average prices for the majority of the 2014 calendar year were in excess of $ 99 per barrel for wti and in excess of $ 105 per barrel for brent ; however , both were down to approximately $ 55 per barrel by the end of 2014 and less than $ 40 per barrel by the end of 2015. the volatility and significant reduction in the average price of crude oil during 2015 and 2016 resulted in a significant decrease in the activities associated with both the exploration and production of oil during 2015 and throughout most of 2016. however , crude oil prices , although still volatile , began to improve during the second half of 2016 and continued to strengthen during 2017 , especially during the second half of 2017. on average , pricing for crude oil improved over 16 % for 2017 over 2016 , which resulted in much improved levels of land-based activity associated with the exploration and production of oil in the united states . in north america , the land-based rig count decreased 62 % during 2015 and another 53 % during the first half of 2016 , which greatly impacted both services and product sales to this market over this time period . although the north america rig count improved at the end of 2016 it still remained almost 20 % below 2015 levels and continued to strengthen throughout most of 2017. we saw resilient levels of activities on development projects and producing fields in the u.s. unconventional reservoirs during the second half of 2016 which continued and expanded during 2017 as we began the recovery phase of this business cycle . outside of north america , activities associated with the exploration for and production of oil have also decreased from 2014 levels , although not as significantly as the land-based activities in north america . our clients ' activities in the international and deepwater markets declined during 2015 and 2016 and remained at these lower levels in 2017 ; however , we believe these markets have shown signs of recovery as our clients have announced several new major capital projects . results of operations operating results for the year ended december 31 , 2017 compared to the years ended december 31 , 2016 and 2015 we evaluate our operating results by analyzing revenue , operating income and net income margin ( defined as net income divided by total revenue ) . since we have a relatively fixed cost structure , increases in revenue generally translate into higher operating income results as well as net income margin percentages . results for the years ended december 31 , 2017 , 2016 and 2015 are summarized in the following chart : 20 results of operations as a percentage of applicable revenue are as follows ( dollars in thousands ) : replace_table_token_4_th services revenue services revenue increased to $ 481.5 million in 2017 from $ 470.3 million in 2016 ; however , services revenue for 2016 decreased from $ 612.0 million in 2015 . the upward trend in the average price of crude oil during 2017 resulted in continued strengthening of activities associated with the exploration and production of oil during the second half of 2017. however , the most significant increase was realized in onshore activities within the united states while the decrease in international activities continued during most of 2017. average prices for wti crude oil increased 17 % in 2017 compared to an 11 % decrease in 2016 and average prices for brent crude oil increased by 24 % in 2017 compared to a 17 % decrease in 2016. as a result , the average global rig count climbed 27 % in 2017 compared to a decline of 32 % in 2016 , primarily driven by increases in the north american rig count . over this same time period , our service revenue increased slightly by 2.4 % in 2017 compared to 2016 and decreased only 23 % in 2016 compared to 2015 , as demand for our analytical , diagnostic , and completion services was less impacted by the significant decrease in drilling activities . wells must be drilled and or completed , stimulated , cored and have reservoir fluid samples collected , before we see the benefits of the increased commodity prices . the improvements in global crude oil prices during 2017 are positive indicators of a balancing market and support for future investments , as we continued our focus on worldwide crude oil related projects , including those related to the development of fields offshore south america and in the middle east . product sales revenue product sales revenue , which is tied more to completions in north america , increased 43 % to $ 178.3 million in 2017 from $ 124.5 million in 2016 ; however , product sales revenue for 2016 decreased from $ 185.6 million in 2015 .the average rig count for the u.s. and canada increased 38 % during 2017 compared to a 45 % decrease in 2016. the 43 % increase in product sales revenue outpaced the rig count increase due to our differentiated well completion product sales surpassing the industry activity levels in north america . story_separator_special_tag based on recent developments , and modest strengthening in the price of crude oil and natural gas , we believe that the level of activities and workflows experienced in 2017 will continue into 2018 and will strengthen for north america . additionally , we believe the trend in recent public announcements of major offshore and international projects by our clients will continue , and these announcements are signs that a recovery of the offshore deepwater and international markets are also improving . an increase in the activities in these markets could positively impact our revenues , operating income and operating margins as well . we expect to meet ongoing working capital needs , capital expenditure requirements and funding of our dividend and share repurchase programs from a combination of cash on hand , cash flow from operating activities and available borrowings under our credit facility . critical accounting estimates the preparation of financial statements in accordance with u.s. gaap requires us to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period . we evaluate our estimates on an ongoing basis and determine the adequacy of our estimates based on our historical experience and various other assumptions that we believe are reasonable under the circumstances . by nature , these judgments are subject to an inherent degree of uncertainty . we consider an accounting estimate to be critical if it is highly subjective and if changes in the estimate 28 under different assumptions would result in a material impact on our financial condition and results of operations . the following transaction types require significant judgment and , therefore , are considered critical accounting policies as of december 31 , 2017 . allowance for doubtful accounts we evaluate whether client receivables are collectible . we perform ongoing credit evaluations of our clients and monitor collections and payments in order to maintain a provision for estimated uncollectible accounts based on our historical collection experience and our current aging of client receivables outstanding in addition to clients ' representations and our understanding of the economic environment in which our clients operate . based on our review , we establish or adjust allowances for specific clients and the accounts receivable as a whole . our allowance for doubtful accounts decreased to $ 2.6 million as of december 31 , 2017 , compared to $ 3.1 million as of december 31 , 2016 . income taxes our income tax expense includes income taxes of the netherlands , the u.s. and other foreign countries as well as local , state and provincial income taxes . we recognize deferred tax assets or liabilities for the differences between the financial statement carrying amount and tax basis of assets and liabilities using enacted tax rates in effect for the years in which the asset is recovered or the liability is settled . we estimate the likelihood of the recoverability of our deferred tax assets ( particularly , net operating loss carry-forwards ) . any valuation allowance recorded is based on estimates and assumptions of taxable income into the future and a determination is made of the magnitude of deferred tax assets which are more likely than not to be realized . valuation allowances of our net deferred tax assets aggregated to $ 8.2 million and $ 10.0 million at december 31 , 2017 and 2016 , respectively . if these estimates and related assumptions change in the future , we may be required to record additional valuation allowances against our deferred tax assets and our effective tax rate may increase which could result in a material adverse effect on our financial position , results of operations and cash flows . we have not provided for deferred taxes on the unremitted earnings of certain subsidiaries that we consider to be indefinitely reinvested . should we make a distribution of the unremitted earnings of these subsidiaries , we may be required to record additional taxes . we record a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in our tax return . we also recognize interest and penalties , if any , related to unrecognized tax benefits in income tax expense . long-lived assets , intangibles and goodwill property , plant and equipment are carried at cost less accumulated depreciation . major renewals and improvements are capitalized while maintenance and repair costs are charged to expense as incurred . they are depreciated using the straight-line method based on their individual estimated useful lives , except for leasehold improvements , which are depreciated over the remaining lease term , if shorter . we estimate the useful lives and salvage values of our assets based on historical data of similar assets . when long-lived assets are sold or retired , the remaining costs and related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in income . these capitalized long-lived assets could become impaired if our operating plans or business environment changes . intangible assets , including patents , trademarks , and trade names , are carried at cost less accumulated amortization . intangibles with determinable lives are amortized using the straight-line method based on the estimated useful life of the intangible . intangibles with indeterminable lives , which consist primarily of corporate trade names , are not amortized , but are tested for impairment annually or whenever events or changes in circumstances indicate that impairment is possible . we review our long-lived assets , including definite-lived intangible assets , for impairment when events or changes in circumstances indicate that their net book value may not be recovered over their remaining service lives . indicators of possible impairment may include significant declines in activity levels in regions where specific assets or groups of assets are located , extended periods of
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2,557 | however when including the amount of future invoicing for contracts at each period end , the combined amount of deferred revenue and future invoicing was flat at both december 31 , 2013 and 2012 compared to the prior years . the change in deferred revenue plus future invoicing is essentially consistent with the change in agreement value at december 31 , 2013 and 2012 compared to the prior years and both metrics are reflective of flat contract bookings in both 2013 and 2012 compared to prior years . enrichment , client retention and dollar retention rates at december 31 , 2013 have all trended downward from 2011 levels . the enrichment and client retention rates include a 12-month period and as such the rates in 2013 and 2012 reflect the negative effects from the challenges associated with the implementation of the sales reorganization in early 2012 , high sales employee attrition during 2013 and 2012 , a difficult selling environment in europe during 2013 and 2012 and weaker demand for our data subscription products in 2013 , in part due to the phasing out of our standalone technology marketing navigator data product . critical accounting policies and estimates management 's discussion and analysis of financial condition and results of operations are based upon our consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states of america ( ยgaapย ) . the preparation of these financial statements requires us to 15 make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . on an ongoing basis , we evaluate our policies and estimates , including but not limited to , those related to our revenue recognition , stock-based compensation , non-marketable investments , goodwill and intangible assets , income taxes , and valuation and impairment of marketable investments . management bases its estimates on historical experience , data available at the time the estimates are made and various assumptions that are believed to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . we consider the following accounting policies to be those that require the most subjective judgment or that involve uncertainty that could have a material impact on our financial statements . if actual results differ significantly from management 's estimates and projections , there could be a material effect on our financial statements . this is not a comprehensive list of all of our accounting policies . in many cases , the accounting treatment of a particular transaction is specifically dictated by gaap , with no need for management 's judgment in its application . there are also areas in which management 's judgment in selecting any available alternative would not produce a materially different result . for a discussion of our other accounting policies , see note 1 of the notes to consolidated financial statements beginning on page f-7 . revenue recognition . effective january 1 , 2011 we adopted update no . 2009-13 , ยmultiple-deliverable revenue arrangements ย a consensus of the fasb emerging issues task forceย ( asu 2009-13 ) . asu 2009-13 updates the previous multiple-element revenue arrangements guidance . the revised guidance primarily provides three significant changes : 1 ) it eliminates the need for objective and reliable evidence of the fair value for the undelivered element in order for a delivered item to be treated as a separate unit of accounting ; 2 ) it eliminates the residual method to allocate the arrangement consideration ; and 3 ) it modifies the fair value requirements of eitf issue 00-21 by providing ยbest estimate of selling priceย in addition to vendor specific objective evidence and vendor objective evidence for determining the selling price of a deliverable . the adoption of asu 2009-13 did not have a material impact on our financial position , results of operations or cash flows . we generate revenues from licensing memberships to our research ( including our data subscription products ) , performing advisory services and consulting projects and hosting events . we execute contracts that govern the terms and conditions of each arrangement . revenues are recognized when persuasive evidence of an arrangement exists , the fee is fixed or determinable , services have been provided to the customer , and collectability is reasonably assured . our contracts may include either a single product or service or a combination of multiple products and services . revenues from contracts that contain multiple products or services are allocated among the separate units of accounting based on their relative selling prices ; however , the amount recognized is limited to the amount that is not contingent on future performance conditions . for example , when a discount off of list price is provided in a multiple element contract , the discount is applied ratably to the research and data products only ( which commence delivery on the first day of the contract ) , as the undelivered products in the contract ( advisory services or events ) would be refundable to the customer at list price if not delivered . we obtain the selling prices of our products and services based upon an analysis of standalone sales of these products and services during the year . research services revenues are recognized ratably over the term of the contract . advisory services revenues , such as workshops , speeches and advisory days , are recognized when the customer receives the agreed upon deliverable and consulting project revenues are recognized as the services are provided . reimbursed out-of-pocket expenses are recorded as advisory services revenue . event revenues are recognized upon completion of the event . story_separator_special_tag the increase in advisory and project consulting revenues in 2013 as compared to 2012 was generated in the second half of 2013 and was due primarily to both an increase in consulting headcount as we began to build out a dedicated consulting organization in 2013 as well as to increased productivity of our analyst personnel . please refer to the ยsegment resultsย section below for a discussion of revenue and direct margin results by segment . 21 cost of services and fulfillment replace_table_token_8_th the increase in cost of services and fulfillment expenses during 2013 compared to the prior year is primarily due to a $ 6.0 million increase in compensation costs resulting primarily from an increase in the number of employees , an increase in incentive bonus payments and annual merit increases . in addition , 2013 included an increase in facility costs due to new office space in the asia pacific region in the second half of 2012 and an increase in service fees for cloud-based information systems . these increases were partially offset by a decrease in professional services fees related to the amount of surveys performed and a decrease in travel and entertainment expenses . we hired additional consulting employees in 2013 in support of our decision to build a dedicated consulting organization to provide research-based project consulting services to our clients , allowing our analysts to spend additional timing on writing research and providing shorter-term advisory services . we anticipate cost of services and fulfillment to continue to increase as a percentage of total revenues in 2014 as we plan to accelerate the pace of hiring in 2014 compared to 2013 with additional consulting personnel and product specialists . selling and marketing replace_table_token_9_th the increase in selling and marketing expenses during 2013 compared to the prior year is primarily due to a $ 5.2 million increase in compensation and benefits costs resulting from both an increase in sales and marketing employees and annual merit increases . in addition , 2013 included an increase in facility costs due to new office space in the asia pacific region in the second half of 2012 and an increase in service fees for cloud-based information systems . these increases were partially offset by a decrease in travel and entertainment expenses . subject to the business environment , we intend to expand our quota carrying sales force by approximately 5 % to 7 % in 2014 as compared to 2013. any resulting increase in contract bookings for our research services would generally be recognized over a twelve-month period , which typically results in an increase in selling and marketing expense as a percentage of revenues during periods of sales force expansion . general and administrative replace_table_token_10_th 22 the increase in general and administrative expenses during 2013 compared to the prior year is primarily due to a $ 0.8 million increase in compensation and benefits costs due to an increase in incentive bonus payments and annual merit increases . in addition , 2013 included an increase in recruiting costs to support company-wide hiring in 2013 as well as an increase in facility costs due to new office space in the asia pacific region in the second half of 2012 and an increase in service fees for cloud-based information systems . these increases were partially offset by a decrease in professional services fees primarily related to a decrease in information technology projects as 2012 included an update to our website and implementation of new customer relationship management software . depreciation depreciation expense increased $ 0.3 million during 2013 compared to the prior year primarily resulting from the initiation of depreciation for our new website in march 2012. amortization of intangible assets amortization expense has remained essentially consistent during 2013 as compared to the prior year . reorganization costs during 2013 we incurred $ 1.9 million of severance and related costs for the elimination of 31 jobs or approximately 2.5 % of our workforce worldwide to streamline our operations . essentially all costs incurred for the reorganization were paid during 2013. we incurred $ 1.4 million of severance and related costs during 2012 for the termination of 17 employees related to the sales reorganization and other cost reduction initiatives . essentially all of these costs were paid during 2012. income from operations income from operations declined $ 8.9 million during 2013 as compared to the prior year and declined to 7.3 % of total revenues in 2013 from 10.5 % in the prior year . the decrease in both dollars and as a percentage of total revenues during 2013 is due primarily to low revenue growth in 2013 combined with increased compensation costs in 2013 from additional headcount investments in our consulting and sales organizations and annual merit increases . we anticipate a small contraction in income from operations as a percentage of total revenues in 2014 as compared to 2013 as we plan to continue to invest in consulting and sales headcount in 2014. other income , net other income , net primarily consists of interest income on our marketable securities as well as gains ( losses ) on foreign currency . the decrease in other income , net during 2013 is primarily due to lower interest income earned in 2013 due to lower investment balances . gains ( losses ) on investments , net gains ( losses ) on investments , net include our share of equity method investment gains ( losses ) from our technology-related investment funds and gains ( losses ) from the sale of marketable securities . on october 30 , 2013 we sold our portfolio of auction rate securities ( par value $ 11.0 million ) for a realized loss of $ 1.9 million . in addition , in 2013 we realized an approximate $ 0.7 million loss from our equity method investments primarily from a decrease in the valuation of certain assets within the funds . during 2012 the valuation of the assets within these funds remained
| liquidity and capital resources we have historically financed our operations primarily through funds generated from operations . research services revenues , which constituted approximately 68 % of our revenues during 2013 , are generally renewable annually and are typically payable in advance . we generated cash from operating activities of $ 30.7 million and $ 53.1 million during the years ended december 31 , 2013 and 2012 , respectively . the $ 22.4 million decrease in cash provided from operations during 2013 is primarily attributable to a decrease in net income of $ 13.3 million in 2013 compared to 2012 , and a decrease in cash collected from accounts receivable as we entered 2013 with a $ 6.8 million lower receivables balance as compared to 2012. during 2013 we generated $ 57.6 million of cash from investing activities , consisting primarily of $ 60.4 million in net maturities of marketable investments partially offset by $ 3.1 million of purchases of property and equipment . property and equipment purchases during 2013 consisted primarily of software and leasehold improvements . during 2012 , we used $ 4.1 million of cash from investing activities , consisting primarily of $ 5.1 million of purchases of property and equipment , partially offset by a $ 0.9 million reduction in restricted cash . property and equipment purchases during 2012 consisted primarily of software and leasehold improvements . we regularly invest excess funds in short and intermediate-term interest-bearing obligations of investment grade . we used $ 113.4 million of cash from financing activities during 2013 primarily due to $ 118.2 million of purchases of our common stock , of which $ 75.1
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources we have historically financed our operations primarily through funds generated from operations . research services revenues , which constituted approximately 68 % of our revenues during 2013 , are generally renewable annually and are typically payable in advance . we generated cash from operating activities of $ 30.7 million and $ 53.1 million during the years ended december 31 , 2013 and 2012 , respectively . the $ 22.4 million decrease in cash provided from operations during 2013 is primarily attributable to a decrease in net income of $ 13.3 million in 2013 compared to 2012 , and a decrease in cash collected from accounts receivable as we entered 2013 with a $ 6.8 million lower receivables balance as compared to 2012. during 2013 we generated $ 57.6 million of cash from investing activities , consisting primarily of $ 60.4 million in net maturities of marketable investments partially offset by $ 3.1 million of purchases of property and equipment . property and equipment purchases during 2013 consisted primarily of software and leasehold improvements . during 2012 , we used $ 4.1 million of cash from investing activities , consisting primarily of $ 5.1 million of purchases of property and equipment , partially offset by a $ 0.9 million reduction in restricted cash . property and equipment purchases during 2012 consisted primarily of software and leasehold improvements . we regularly invest excess funds in short and intermediate-term interest-bearing obligations of investment grade . we used $ 113.4 million of cash from financing activities during 2013 primarily due to $ 118.2 million of purchases of our common stock , of which $ 75.1
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Suspicious Activity Report : however when including the amount of future invoicing for contracts at each period end , the combined amount of deferred revenue and future invoicing was flat at both december 31 , 2013 and 2012 compared to the prior years . the change in deferred revenue plus future invoicing is essentially consistent with the change in agreement value at december 31 , 2013 and 2012 compared to the prior years and both metrics are reflective of flat contract bookings in both 2013 and 2012 compared to prior years . enrichment , client retention and dollar retention rates at december 31 , 2013 have all trended downward from 2011 levels . the enrichment and client retention rates include a 12-month period and as such the rates in 2013 and 2012 reflect the negative effects from the challenges associated with the implementation of the sales reorganization in early 2012 , high sales employee attrition during 2013 and 2012 , a difficult selling environment in europe during 2013 and 2012 and weaker demand for our data subscription products in 2013 , in part due to the phasing out of our standalone technology marketing navigator data product . critical accounting policies and estimates management 's discussion and analysis of financial condition and results of operations are based upon our consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states of america ( ยgaapย ) . the preparation of these financial statements requires us to 15 make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . on an ongoing basis , we evaluate our policies and estimates , including but not limited to , those related to our revenue recognition , stock-based compensation , non-marketable investments , goodwill and intangible assets , income taxes , and valuation and impairment of marketable investments . management bases its estimates on historical experience , data available at the time the estimates are made and various assumptions that are believed to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . we consider the following accounting policies to be those that require the most subjective judgment or that involve uncertainty that could have a material impact on our financial statements . if actual results differ significantly from management 's estimates and projections , there could be a material effect on our financial statements . this is not a comprehensive list of all of our accounting policies . in many cases , the accounting treatment of a particular transaction is specifically dictated by gaap , with no need for management 's judgment in its application . there are also areas in which management 's judgment in selecting any available alternative would not produce a materially different result . for a discussion of our other accounting policies , see note 1 of the notes to consolidated financial statements beginning on page f-7 . revenue recognition . effective january 1 , 2011 we adopted update no . 2009-13 , ยmultiple-deliverable revenue arrangements ย a consensus of the fasb emerging issues task forceย ( asu 2009-13 ) . asu 2009-13 updates the previous multiple-element revenue arrangements guidance . the revised guidance primarily provides three significant changes : 1 ) it eliminates the need for objective and reliable evidence of the fair value for the undelivered element in order for a delivered item to be treated as a separate unit of accounting ; 2 ) it eliminates the residual method to allocate the arrangement consideration ; and 3 ) it modifies the fair value requirements of eitf issue 00-21 by providing ยbest estimate of selling priceย in addition to vendor specific objective evidence and vendor objective evidence for determining the selling price of a deliverable . the adoption of asu 2009-13 did not have a material impact on our financial position , results of operations or cash flows . we generate revenues from licensing memberships to our research ( including our data subscription products ) , performing advisory services and consulting projects and hosting events . we execute contracts that govern the terms and conditions of each arrangement . revenues are recognized when persuasive evidence of an arrangement exists , the fee is fixed or determinable , services have been provided to the customer , and collectability is reasonably assured . our contracts may include either a single product or service or a combination of multiple products and services . revenues from contracts that contain multiple products or services are allocated among the separate units of accounting based on their relative selling prices ; however , the amount recognized is limited to the amount that is not contingent on future performance conditions . for example , when a discount off of list price is provided in a multiple element contract , the discount is applied ratably to the research and data products only ( which commence delivery on the first day of the contract ) , as the undelivered products in the contract ( advisory services or events ) would be refundable to the customer at list price if not delivered . we obtain the selling prices of our products and services based upon an analysis of standalone sales of these products and services during the year . research services revenues are recognized ratably over the term of the contract . advisory services revenues , such as workshops , speeches and advisory days , are recognized when the customer receives the agreed upon deliverable and consulting project revenues are recognized as the services are provided . reimbursed out-of-pocket expenses are recorded as advisory services revenue . event revenues are recognized upon completion of the event . story_separator_special_tag the increase in advisory and project consulting revenues in 2013 as compared to 2012 was generated in the second half of 2013 and was due primarily to both an increase in consulting headcount as we began to build out a dedicated consulting organization in 2013 as well as to increased productivity of our analyst personnel . please refer to the ยsegment resultsย section below for a discussion of revenue and direct margin results by segment . 21 cost of services and fulfillment replace_table_token_8_th the increase in cost of services and fulfillment expenses during 2013 compared to the prior year is primarily due to a $ 6.0 million increase in compensation costs resulting primarily from an increase in the number of employees , an increase in incentive bonus payments and annual merit increases . in addition , 2013 included an increase in facility costs due to new office space in the asia pacific region in the second half of 2012 and an increase in service fees for cloud-based information systems . these increases were partially offset by a decrease in professional services fees related to the amount of surveys performed and a decrease in travel and entertainment expenses . we hired additional consulting employees in 2013 in support of our decision to build a dedicated consulting organization to provide research-based project consulting services to our clients , allowing our analysts to spend additional timing on writing research and providing shorter-term advisory services . we anticipate cost of services and fulfillment to continue to increase as a percentage of total revenues in 2014 as we plan to accelerate the pace of hiring in 2014 compared to 2013 with additional consulting personnel and product specialists . selling and marketing replace_table_token_9_th the increase in selling and marketing expenses during 2013 compared to the prior year is primarily due to a $ 5.2 million increase in compensation and benefits costs resulting from both an increase in sales and marketing employees and annual merit increases . in addition , 2013 included an increase in facility costs due to new office space in the asia pacific region in the second half of 2012 and an increase in service fees for cloud-based information systems . these increases were partially offset by a decrease in travel and entertainment expenses . subject to the business environment , we intend to expand our quota carrying sales force by approximately 5 % to 7 % in 2014 as compared to 2013. any resulting increase in contract bookings for our research services would generally be recognized over a twelve-month period , which typically results in an increase in selling and marketing expense as a percentage of revenues during periods of sales force expansion . general and administrative replace_table_token_10_th 22 the increase in general and administrative expenses during 2013 compared to the prior year is primarily due to a $ 0.8 million increase in compensation and benefits costs due to an increase in incentive bonus payments and annual merit increases . in addition , 2013 included an increase in recruiting costs to support company-wide hiring in 2013 as well as an increase in facility costs due to new office space in the asia pacific region in the second half of 2012 and an increase in service fees for cloud-based information systems . these increases were partially offset by a decrease in professional services fees primarily related to a decrease in information technology projects as 2012 included an update to our website and implementation of new customer relationship management software . depreciation depreciation expense increased $ 0.3 million during 2013 compared to the prior year primarily resulting from the initiation of depreciation for our new website in march 2012. amortization of intangible assets amortization expense has remained essentially consistent during 2013 as compared to the prior year . reorganization costs during 2013 we incurred $ 1.9 million of severance and related costs for the elimination of 31 jobs or approximately 2.5 % of our workforce worldwide to streamline our operations . essentially all costs incurred for the reorganization were paid during 2013. we incurred $ 1.4 million of severance and related costs during 2012 for the termination of 17 employees related to the sales reorganization and other cost reduction initiatives . essentially all of these costs were paid during 2012. income from operations income from operations declined $ 8.9 million during 2013 as compared to the prior year and declined to 7.3 % of total revenues in 2013 from 10.5 % in the prior year . the decrease in both dollars and as a percentage of total revenues during 2013 is due primarily to low revenue growth in 2013 combined with increased compensation costs in 2013 from additional headcount investments in our consulting and sales organizations and annual merit increases . we anticipate a small contraction in income from operations as a percentage of total revenues in 2014 as compared to 2013 as we plan to continue to invest in consulting and sales headcount in 2014. other income , net other income , net primarily consists of interest income on our marketable securities as well as gains ( losses ) on foreign currency . the decrease in other income , net during 2013 is primarily due to lower interest income earned in 2013 due to lower investment balances . gains ( losses ) on investments , net gains ( losses ) on investments , net include our share of equity method investment gains ( losses ) from our technology-related investment funds and gains ( losses ) from the sale of marketable securities . on october 30 , 2013 we sold our portfolio of auction rate securities ( par value $ 11.0 million ) for a realized loss of $ 1.9 million . in addition , in 2013 we realized an approximate $ 0.7 million loss from our equity method investments primarily from a decrease in the valuation of certain assets within the funds . during 2012 the valuation of the assets within these funds remained
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2,558 | revenues generated by our other professionals , or full-time equivalents , are largely dependent on the number of consultants we employ , their hours worked , and billing rates charged , as well as the number of pages reviewed and amount of data processed in the case of our document review and electronic data discovery groups , respectively . we generate the majority of our revenues from providing professional services under four types of billing arrangements : time-and-expense , fixed-fee ( including software license revenue ) , performance-based , and support and maintenance for the software we deploy . time-and-expense billing arrangements require the client to pay based on either the number of hours worked , the number of pages reviewed , or the amount of data processed by our revenue-generating professionals at agreed upon rates . we recognize revenues under time-and-expense billing arrangements as the related services are rendered . time-and-expense engagements represented 43.6 % , 44.9 % , and 47.7 % of our revenues in 2014 , 2013 , and 2012 , respectively . in fixed-fee billing arrangements , we agree to a pre-established fee in exchange for a predetermined set of professional services . we set the fees based on our estimates of the costs and timing for completing the engagements . it is the client 's expectation in these engagements that the pre-established fee will not be exceeded except in mutually agreed upon circumstances . we generally recognize revenues under fixed-fee billing arrangements using a proportionate performance approach , which is based on work completed to-date versus our estimates of the total services to be provided under the engagement . we generate revenues from licensing two types of proprietary software to clients : revenue cycle management software and research administration and compliance software . licenses for our revenue cycle management software are 27 sold only as a component of our consulting projects , and the services we provide are essential to the functionality of the software . therefore , revenues from these software licenses are recognized over the term of the related consulting services contract , which are typically fixed-fee . license revenue from our research administration and compliance software is generally recognized in the month in which the software is delivered . for the years ended december 31 , 2014 , 2013 , and 2012 , fixed-fee engagements ( including software license revenue ) represented approximately 39.6 % , 37.2 % , and 34.7 % of our revenues , respectively . in performance-based fee billing arrangements , fees are tied to the attainment of contractually defined objectives . we enter into performance-based engagements in essentially two forms . first , we generally earn fees that are directly related to the savings formally acknowledged by the client as a result of adopting our recommendations for improving operational and cost effectiveness in the areas we review . second , we have performance-based engagements in which we earn a success fee when and if certain predefined outcomes occur . often , performance-based fees supplement our time-and-expense or fixed-fee engagements . we do not recognize revenues under performance-based billing arrangements until all related performance criteria are met . performance-based fee revenues represented 13.5 % , 14.6 % , and 14.2 % of our revenues in 2014 , 2013 , and 2012 , respectively . performance-based fee engagements may cause significant variations in quarterly revenues and operating results depending on the timing of achieving the performance-based criteria . clients that have purchased one of our software licenses can pay an annual fee for software support and maintenance . annual support and maintenance fee revenue is recognized ratably over the support period , which is generally one year . these fees are typically billed in advance and included in deferred revenues until recognized . support and maintenance revenues represented 3.3 % , 3.3 % , and 3.4 % of our revenues in 2014 , 2013 , and 2012 , respectively . our quarterly results are impacted principally by our full-time consultants ' utilization rate , the billing rates we charge our clients , the number of our revenue-generating professionals who are available to work , and the amount of performance-based fees recognized , which often vary significantly between quarters . our utilization rate can be negatively affected by increased hiring because there is generally a transition period for new professionals that results in a temporary drop in our utilization rate . our utilization rate can also be affected by seasonal variations in the demand for our services from our clients . for example , during the third and fourth quarters of the year , vacations taken by our clients can result in the deferral of activity on existing and new engagements , which would negatively affect our utilization rate . the number of business work days is also affected by the number of vacation days taken by our consultants and holidays in each quarter . we typically have fewer business work days available in the fourth quarter of the year , which can impact revenues during that period . time-and-expense engagements do not provide us with a high degree of predictability as to performance in future periods . unexpected changes in the demand for our services can result in significant variations in utilization and revenues and present a challenge to optimal hiring and staffing . moreover , our clients typically retain us on an engagement-by-engagement basis , rather than under long-term recurring contracts . the volume of work performed for any particular client can vary widely from period to period . reimbursable expenses reimbursable expenses that are billed to clients , primarily relating to travel and out-of-pocket expenses incurred in connection with engagements , are included in total revenues and reimbursable expenses , and typically an equivalent amount of these expenses are included in total direct costs and reimbursable expenses . reimbursable expenses also include those subcontractors who are billed to our clients at cost . story_separator_special_tag net litigation and other gains totaled $ 5.9 million for the year ended december 31 , 2013. these gains primarily consisted of a $ 5.3 million gain that was recorded as a result of reaching a settlement agreement to resolve a lawsuit brought by huron . depreciation and amortization expense increased $ 4.5 million , or 22.0 % , to $ 25.0 million for the year ended december 31 , 2014 , from $ 20.5 million for the year ended december 31 , 2013. the increase primarily related to the amortization of intangible assets from businesses acquired during 2014 and the fourth quarter of 2013 , as well as the depreciation of network equipment and leasehold improvements that were placed into service during the second half of 2013 and first half of 2014. intangible asset amortization included within operating expenses relates to customer relationships , non-competition agreements , trade names , and licenses acquired in connection with our acquisitions . 35 operating income operating income increased $ 3.1 million , or 2.6 % , to $ 123.0 million for the year ended december 31 , 2014 , from $ 119.9 million for the year ended december 31 , 2013. operating margin , which is defined as operating income expressed as a percentage of revenues , decreased to 15.2 % in 2014 compared to 16.6 % in 2013. the decrease in operating margin was primarily attributable to the increase in salaries and related expenses for our revenue-generating professionals as a percentage of revenues and the decrease in litigation and other gains , partially offset by revenue growth that outpaced the increase in bonus expense for our revenue-generating professionals . other expense , net other expense , net increased $ 2.1 million , or 33.9 % , to $ 8.4 million for the year ended december 31 , 2014 , from $ 6.3 million for the year ended december 31 , 2013. interest expense , net of interest income increased by $ 2.2 million , primarily from interest expense recorded for our convertible notes issued in september 2014 , partially offset by a decrease in our borrowing levels under our senior secured credit facility . for 2014 , interest expense related to the convertible notes totaled $ 3.5 million , consisting of $ 1.0 million for the stated coupon of the convertible notes and $ 2.5 million for the amortization of debt discount and debt issuance costs . for the year ending december 31 , 2015 , we expect interest expense related to the coupon of the convertible notes to be $ 3.1 million and interest expense for the amortization of debt discount and debt issuance costs related to the convertible notes to be $ 8.3 million . income tax expense for the year ended december 31 , 2014 , we recognized income tax expense from continuing operations of $ 35.6 million on income from continuing operations of $ 114.6 million , for an effective tax rate of 31.0 % . for the year ended december 31 , 2013 , we recognized income tax expense from continuing operations of $ 47.2 million on income from continuing operations of $ 113.6 million , for an effective tax rate of 41.5 % . our effective tax rate for 2014 was lower than the statutory rate , inclusive of state income taxes , primarily due to the impact of a tax election made in the first quarter of 2014 to classify one of our wholly-owned foreign subsidiaries as a disregarded entity for u.s. federal income tax purposes ( commonly referred to as a ยcheck-the-boxย election ) . as a result of this election , we expect to realize an income tax benefit of $ 13.8 million , of which $ 2.4 million is unrecognized , resulting in a net recognized tax benefit of $ 11.4 million . this recognized benefit was partially offset by $ 1.2 million in expenses related to the establishment of a valuation allowance for certain foreign tax credits and increased deferred tax liabilities as a result of the aforementioned election . our effective tax rate for 2013 was higher than the statutory rate , inclusive of state income taxes , primarily due to the impact of foreign losses with no tax benefit and certain non-deductible business expenses , partially offset by the impact of certain credits and deductions . net income from continuing operations net income from continuing operations was $ 79.1 million for the year ended december 31 , 2014 , compared to $ 66.5 million for the year ended december 31 , 2013. the $ 12.6 million increase in net income from continuing operations was primarily due to the increase in operating income , as well as the decrease in income tax expense , as discussed above . as a result of the increase in net income from continuing operations , diluted earnings per share from continuing operations for the year ended december 31 , 2014 was $ 3.45 compared to $ 2.92 for 2013. ebitda and adjusted ebitda ebitda increased $ 9.4 million , or 6.5 % , to $ 152.9 million for the year ended december 31 , 2014 , from $ 143.5 million for the year ended december 31 , 2013. adjusted ebitda increased $ 17.4 million , or 12.5 % , to $ 155.7 million in 2014 from $ 138.4 million in 2013. the increase in ebitda was primarily due to the increase in the segment operating income , as discussed below in segment results , partially offset by an increase in corporate expenses and a decrease in litigation and other gains . the increase in adjusted ebitda was primarily due to the increase in segment operating income , partially offset by an increase in corporate expenses , excluding the impact of the restructuring charges and litigation and other gains . 36 adjusted net income from continuing operations adjusted net income from continuing operations increased $ 11.0 million , or 16.3 % , to $
| liquidity and capital resources cash and cash equivalents were $ 256.9 million , $ 58.1 million , and $ 25.2 million at december 31 , 2014 , 2013 , and 2012 , respectively . as of december 31 , 2014 , our primary sources of liquidity are cash on hand , cash flows from our u.s. operations , and borrowing capacity available under our credit facility . replace_table_token_10_th 45 operating activities net cash provided by operating activities totaled $ 146.5 million , $ 115.3 million , and $ 102.4 million for the years ended december 31 , 2014 , 2013 , and 2012 , respectively . our operating assets and liabilities consist primarily of receivables from billed and unbilled services , accounts payable and accrued expenses , accrued payroll and related benefits , and deferred revenues . the volume of services rendered and the related billings and timing of collections on those billings , as well as payments of our accounts payable and salaries , bonuses , and related benefits to employees affect these account balances . the increase in cash provided by operations in 2014 compared to 2013 was primarily attributable to increased cash collections from clients , driven by our growth in revenues , as well as lower tax payments , and higher net income , partially offset by an increase in the amount paid for annual performance bonuses and an increase in unbilled services from clients . the increase in the unbilled services from clients was driven by several large healthcare implementation projects where the services provided and corresponding revenue recognized as of december 31 , 2014 has exceeded the amount billed to the client in accordance with the contractual billing terms . we expect to bill and collect these unbilled services in 2015. the increase in unbilled services is largely offset by the improved collections on billed services .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources cash and cash equivalents were $ 256.9 million , $ 58.1 million , and $ 25.2 million at december 31 , 2014 , 2013 , and 2012 , respectively . as of december 31 , 2014 , our primary sources of liquidity are cash on hand , cash flows from our u.s. operations , and borrowing capacity available under our credit facility . replace_table_token_10_th 45 operating activities net cash provided by operating activities totaled $ 146.5 million , $ 115.3 million , and $ 102.4 million for the years ended december 31 , 2014 , 2013 , and 2012 , respectively . our operating assets and liabilities consist primarily of receivables from billed and unbilled services , accounts payable and accrued expenses , accrued payroll and related benefits , and deferred revenues . the volume of services rendered and the related billings and timing of collections on those billings , as well as payments of our accounts payable and salaries , bonuses , and related benefits to employees affect these account balances . the increase in cash provided by operations in 2014 compared to 2013 was primarily attributable to increased cash collections from clients , driven by our growth in revenues , as well as lower tax payments , and higher net income , partially offset by an increase in the amount paid for annual performance bonuses and an increase in unbilled services from clients . the increase in the unbilled services from clients was driven by several large healthcare implementation projects where the services provided and corresponding revenue recognized as of december 31 , 2014 has exceeded the amount billed to the client in accordance with the contractual billing terms . we expect to bill and collect these unbilled services in 2015. the increase in unbilled services is largely offset by the improved collections on billed services .
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Suspicious Activity Report : revenues generated by our other professionals , or full-time equivalents , are largely dependent on the number of consultants we employ , their hours worked , and billing rates charged , as well as the number of pages reviewed and amount of data processed in the case of our document review and electronic data discovery groups , respectively . we generate the majority of our revenues from providing professional services under four types of billing arrangements : time-and-expense , fixed-fee ( including software license revenue ) , performance-based , and support and maintenance for the software we deploy . time-and-expense billing arrangements require the client to pay based on either the number of hours worked , the number of pages reviewed , or the amount of data processed by our revenue-generating professionals at agreed upon rates . we recognize revenues under time-and-expense billing arrangements as the related services are rendered . time-and-expense engagements represented 43.6 % , 44.9 % , and 47.7 % of our revenues in 2014 , 2013 , and 2012 , respectively . in fixed-fee billing arrangements , we agree to a pre-established fee in exchange for a predetermined set of professional services . we set the fees based on our estimates of the costs and timing for completing the engagements . it is the client 's expectation in these engagements that the pre-established fee will not be exceeded except in mutually agreed upon circumstances . we generally recognize revenues under fixed-fee billing arrangements using a proportionate performance approach , which is based on work completed to-date versus our estimates of the total services to be provided under the engagement . we generate revenues from licensing two types of proprietary software to clients : revenue cycle management software and research administration and compliance software . licenses for our revenue cycle management software are 27 sold only as a component of our consulting projects , and the services we provide are essential to the functionality of the software . therefore , revenues from these software licenses are recognized over the term of the related consulting services contract , which are typically fixed-fee . license revenue from our research administration and compliance software is generally recognized in the month in which the software is delivered . for the years ended december 31 , 2014 , 2013 , and 2012 , fixed-fee engagements ( including software license revenue ) represented approximately 39.6 % , 37.2 % , and 34.7 % of our revenues , respectively . in performance-based fee billing arrangements , fees are tied to the attainment of contractually defined objectives . we enter into performance-based engagements in essentially two forms . first , we generally earn fees that are directly related to the savings formally acknowledged by the client as a result of adopting our recommendations for improving operational and cost effectiveness in the areas we review . second , we have performance-based engagements in which we earn a success fee when and if certain predefined outcomes occur . often , performance-based fees supplement our time-and-expense or fixed-fee engagements . we do not recognize revenues under performance-based billing arrangements until all related performance criteria are met . performance-based fee revenues represented 13.5 % , 14.6 % , and 14.2 % of our revenues in 2014 , 2013 , and 2012 , respectively . performance-based fee engagements may cause significant variations in quarterly revenues and operating results depending on the timing of achieving the performance-based criteria . clients that have purchased one of our software licenses can pay an annual fee for software support and maintenance . annual support and maintenance fee revenue is recognized ratably over the support period , which is generally one year . these fees are typically billed in advance and included in deferred revenues until recognized . support and maintenance revenues represented 3.3 % , 3.3 % , and 3.4 % of our revenues in 2014 , 2013 , and 2012 , respectively . our quarterly results are impacted principally by our full-time consultants ' utilization rate , the billing rates we charge our clients , the number of our revenue-generating professionals who are available to work , and the amount of performance-based fees recognized , which often vary significantly between quarters . our utilization rate can be negatively affected by increased hiring because there is generally a transition period for new professionals that results in a temporary drop in our utilization rate . our utilization rate can also be affected by seasonal variations in the demand for our services from our clients . for example , during the third and fourth quarters of the year , vacations taken by our clients can result in the deferral of activity on existing and new engagements , which would negatively affect our utilization rate . the number of business work days is also affected by the number of vacation days taken by our consultants and holidays in each quarter . we typically have fewer business work days available in the fourth quarter of the year , which can impact revenues during that period . time-and-expense engagements do not provide us with a high degree of predictability as to performance in future periods . unexpected changes in the demand for our services can result in significant variations in utilization and revenues and present a challenge to optimal hiring and staffing . moreover , our clients typically retain us on an engagement-by-engagement basis , rather than under long-term recurring contracts . the volume of work performed for any particular client can vary widely from period to period . reimbursable expenses reimbursable expenses that are billed to clients , primarily relating to travel and out-of-pocket expenses incurred in connection with engagements , are included in total revenues and reimbursable expenses , and typically an equivalent amount of these expenses are included in total direct costs and reimbursable expenses . reimbursable expenses also include those subcontractors who are billed to our clients at cost . story_separator_special_tag net litigation and other gains totaled $ 5.9 million for the year ended december 31 , 2013. these gains primarily consisted of a $ 5.3 million gain that was recorded as a result of reaching a settlement agreement to resolve a lawsuit brought by huron . depreciation and amortization expense increased $ 4.5 million , or 22.0 % , to $ 25.0 million for the year ended december 31 , 2014 , from $ 20.5 million for the year ended december 31 , 2013. the increase primarily related to the amortization of intangible assets from businesses acquired during 2014 and the fourth quarter of 2013 , as well as the depreciation of network equipment and leasehold improvements that were placed into service during the second half of 2013 and first half of 2014. intangible asset amortization included within operating expenses relates to customer relationships , non-competition agreements , trade names , and licenses acquired in connection with our acquisitions . 35 operating income operating income increased $ 3.1 million , or 2.6 % , to $ 123.0 million for the year ended december 31 , 2014 , from $ 119.9 million for the year ended december 31 , 2013. operating margin , which is defined as operating income expressed as a percentage of revenues , decreased to 15.2 % in 2014 compared to 16.6 % in 2013. the decrease in operating margin was primarily attributable to the increase in salaries and related expenses for our revenue-generating professionals as a percentage of revenues and the decrease in litigation and other gains , partially offset by revenue growth that outpaced the increase in bonus expense for our revenue-generating professionals . other expense , net other expense , net increased $ 2.1 million , or 33.9 % , to $ 8.4 million for the year ended december 31 , 2014 , from $ 6.3 million for the year ended december 31 , 2013. interest expense , net of interest income increased by $ 2.2 million , primarily from interest expense recorded for our convertible notes issued in september 2014 , partially offset by a decrease in our borrowing levels under our senior secured credit facility . for 2014 , interest expense related to the convertible notes totaled $ 3.5 million , consisting of $ 1.0 million for the stated coupon of the convertible notes and $ 2.5 million for the amortization of debt discount and debt issuance costs . for the year ending december 31 , 2015 , we expect interest expense related to the coupon of the convertible notes to be $ 3.1 million and interest expense for the amortization of debt discount and debt issuance costs related to the convertible notes to be $ 8.3 million . income tax expense for the year ended december 31 , 2014 , we recognized income tax expense from continuing operations of $ 35.6 million on income from continuing operations of $ 114.6 million , for an effective tax rate of 31.0 % . for the year ended december 31 , 2013 , we recognized income tax expense from continuing operations of $ 47.2 million on income from continuing operations of $ 113.6 million , for an effective tax rate of 41.5 % . our effective tax rate for 2014 was lower than the statutory rate , inclusive of state income taxes , primarily due to the impact of a tax election made in the first quarter of 2014 to classify one of our wholly-owned foreign subsidiaries as a disregarded entity for u.s. federal income tax purposes ( commonly referred to as a ยcheck-the-boxย election ) . as a result of this election , we expect to realize an income tax benefit of $ 13.8 million , of which $ 2.4 million is unrecognized , resulting in a net recognized tax benefit of $ 11.4 million . this recognized benefit was partially offset by $ 1.2 million in expenses related to the establishment of a valuation allowance for certain foreign tax credits and increased deferred tax liabilities as a result of the aforementioned election . our effective tax rate for 2013 was higher than the statutory rate , inclusive of state income taxes , primarily due to the impact of foreign losses with no tax benefit and certain non-deductible business expenses , partially offset by the impact of certain credits and deductions . net income from continuing operations net income from continuing operations was $ 79.1 million for the year ended december 31 , 2014 , compared to $ 66.5 million for the year ended december 31 , 2013. the $ 12.6 million increase in net income from continuing operations was primarily due to the increase in operating income , as well as the decrease in income tax expense , as discussed above . as a result of the increase in net income from continuing operations , diluted earnings per share from continuing operations for the year ended december 31 , 2014 was $ 3.45 compared to $ 2.92 for 2013. ebitda and adjusted ebitda ebitda increased $ 9.4 million , or 6.5 % , to $ 152.9 million for the year ended december 31 , 2014 , from $ 143.5 million for the year ended december 31 , 2013. adjusted ebitda increased $ 17.4 million , or 12.5 % , to $ 155.7 million in 2014 from $ 138.4 million in 2013. the increase in ebitda was primarily due to the increase in the segment operating income , as discussed below in segment results , partially offset by an increase in corporate expenses and a decrease in litigation and other gains . the increase in adjusted ebitda was primarily due to the increase in segment operating income , partially offset by an increase in corporate expenses , excluding the impact of the restructuring charges and litigation and other gains . 36 adjusted net income from continuing operations adjusted net income from continuing operations increased $ 11.0 million , or 16.3 % , to $
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2,559 | the equity markets hit a low in march 2009 , with interest rates available on high quality financial instruments remaining low since that time . the federal funds rate has been at a range of zero to 0.25 % since december 2008. our combined funds held for clients and corporate investment portfolios earned an average rate of return of 1.3 % for fiscal 2011 , compared to 1.5 % for fiscal 2010 and 2.1 % for fiscal 2009. we continue to manage our headcount and expenses while investing in our business , particularly in areas related to selling and servicing our clients , product development , and the technology required to support these areas . we believe these investments are critical to our success . looking to the future , we continue to focus on investing in our products , people , and service capabilities , positioning ourselves to capitalize on opportunities for long-term growth . highlights of our financial results for fiscal 2011 compared to fiscal 2010 are as follows : payroll service revenue increased 2 % to $ 1.4 billion . human resource services revenue increased 10 % to $ 597.4 million . interest on funds held for clients decreased 13 % to $ 48.1 million . total revenue increased 4 % to $ 2.1 billion . operating income increased 8 % to $ 786.4 million , and operating income , net of certain items , increased 7 % to $ 738.3 million . refer to the ยnon-gaap financial measureย discussion on page 14 for further information on operating income , net of certain items . operating income for fiscal 2010 reflected an expense charge of $ 18.7 million to increase the litigation reserve related to the rapid payroll court decision , which reduced diluted earnings per share for fiscal 2010 by $ 0.03 per share . net income and diluted earnings per share increased 8 % to $ 515.3 million and $ 1.42 per share , respectively . 13 cash flow from operations increased 17 % to $ 715.3 million , primarily related to the increase in net income and fluctuations in operating assets and liabilities . dividends of $ 448.8 million were paid to stockholders , representing 87 % of net income . during fiscal 2011 , we completed the acquisition of two software-as-a-service companies , opening up additional areas of the markets we serve . surepayroll , inc. ( ยsurepayrollย ) , a provider of payroll processing for small businesses , was acquired on february 8 , 2011 for $ 114.9 million , net of cash acquired . surepayroll serves small businesses with its easy-to-use , online payroll product and mobile application . this acquisition allows us entry into a new area of the online payroll market , and provides our clients with a mobile self-service alternative . the acquisition of surepayroll was dilutive to fiscal 2011 by less than $ 0.01 per share . eplan services , inc. ( ยeplanย ) , a provider of recordkeeping and administrative solutions to the defined contribution marketplace , was acquired on may 3 , 2011 for $ 15.2 million , net of cash acquired . both entities now operate as wholly owned subsidiaries of paychex . our financial results include the results of these entities from their respective dates of acquisition . neither acquisition is significant to our consolidated financial statements . non-gaap financial measure in addition to reporting operating income , a united states ( ยu.s.ย ) generally accepted accounting principle ( ยgaapย ) measure , we present operating income , net of certain items , which is a non-gaap measure . we believe operating income , net of certain items , is an appropriate additional measure , as it is an indicator of our core business operations performance period over period . it is also the basis of the measure used internally for establishing the following year 's targets and measuring management 's performance in connection with certain performance-based compensation payments and awards . operating income , net of certain items , excludes interest on funds held for clients and the expense charge in fiscal 2010 to increase the litigation reserve . interest on funds held for clients is an adjustment to operating income due to the volatility of interest rates , which are not within the control of management . the expense charge to increase the litigation reserve is also an adjustment to operating income due to its unusual and infrequent nature . it is outside the normal course of our operations and obscures the comparability of performance period over period . operating income , net of certain items , is not calculated through the application of gaap and is not the required form of disclosure by the securities and exchange commission . as such , it should not be considered as a substitute for the gaap measure of operating income and , therefore , should not be used in isolation , but in conjunction with the gaap measure . the use of any non-gaap measure may produce results that vary from the gaap measure and may not be comparable to a similarly defined non-gaap measure used by other companies . operating income , net of certain items , increased 7 % to $ 738.3 million for fiscal 2011 , compared to $ 688.5 million for fiscal 2010 and $ 729.7 million for fiscal 2009. business outlook our client base was approximately 564,000 clients as of may 31 , 2011 , compared to approximately 536,000 clients as of may 31 , 2010 , and approximately 554,000 clients as of may 31 , 2009. our client base increased 5.2 % for fiscal 2011 , compared to declines of 3.2 % for fiscal 2010 and 3.1 % for fiscal 2009. excluding the impact of 33,000 surepayroll clients , our client base would have declined 0.9 % for fiscal 2011. this reduction reflects the impact of lack of growth in new business starts on our client base story_separator_special_tag we also believe that our investments as of may 31 , 2011 were not other-than-temporarily impaired , nor has any event occurred subsequent to that date that would indicate any other-than-temporary impairment . we anticipate that cash and total corporate investments as of may 31 , 2011 , along with projected operating cash flows will support our normal business operations , capital purchases , and dividend payments for the foreseeable future . 21 commitments and contractual obligations lines of credit : as of may 31 , 2011 , we had unused borrowing capacity available under four uncommitted , secured , short-term lines of credit at market rates of interest with financial institutions as follows : replace_table_token_16_th our credit facilities are evidenced by promissory notes and are secured by separate pledge security agreements by and between paychex and each of the financial institutions ( the ยlendersย ) , pursuant to which we have granted each of the lenders a security interest in certain of our investment securities accounts . the collateral is maintained in a pooled custody account pursuant to the terms of a control agreement and is to be administered under an intercreditor agreement among the lenders . under certain circumstances , individual lenders may require that collateral be transferred from the pooled account into segregated accounts for the benefit of such individual lenders . the primary uses of the lines of credit would be to meet short-term funding requirements related to deposit account overdrafts and client fund obligations arising from electronic payment transactions on behalf of our clients in the ordinary course of business , if necessary . no amounts were outstanding against these lines of credit during fiscal 2011 or as of may 31 , 2011. jp morgan chase bank , n.a . and bank of america , n.a . are also parties to our irrevocable standby letters of credit , which are discussed below . letters of credit : as of may 31 , 2011 , we had irrevocable standby letters of credit outstanding totaling $ 47.4 million , required to secure commitments for certain of our insurance policies . the letters of credit expire at various dates between july 2011 and december 2011 , and are collateralized by securities held in our investment portfolios . no amounts were outstanding on these letters of credit during fiscal 2011 or as of may 31 , 2011. subsequent to may 31 , 2011 , the letter of credit expiring in july 2011 was renewed and will expire in july 2012. other commitments : we have entered into various operating leases and purchase obligations that , under gaap , are not reflected on the consolidated balance sheets as of may 31 , 2011. the table below summarizes our estimated annual payment obligations under these commitments as of may 31 , 2011 : replace_table_token_17_th ( 1 ) operating leases are primarily for office space and equipment used in our branch operations . ( 2 ) purchase obligations include our estimate of the minimum outstanding commitments under purchase orders to buy goods and services and legally binding contractual arrangements with future payment obligations . included in the total purchase obligations is $ 6.0 million of commitments to purchase capital assets . amounts actually paid under certain of these arrangements may be higher due to variable components of these agreements . the liability for uncertain tax positions was approximately $ 34.4 million as of may 31 , 2011. refer to note i of the notes to consolidated financial statements , contained in item 8 of this form 10-k , for more information on income taxes . we are not able to reasonably estimate the timing of future cash flows related to this liability and have excluded it from the table above . we are currently under a state income tax audit for the fiscal years ended may 31 , 2004 through 2009. on july 14 , 2010 , we received a summary of proposed tax adjustments from the new york state department of taxation and finance , which was in excess of the reserve recorded as of may 31 , 2011. the outcome 22 of the audit and the timing of settlement , if any , are subject to significant uncertainty . it is not possible to reasonably estimate the impact , if any , if resolution is ultimately unfavorable to us . certain deferred compensation plan obligations and other long-term liabilities amounting to $ 52.1 million are excluded from the table above because the timing of actual payments can not be specifically or reasonably determined due to the variability in assumptions required to project the timing of future payments . advantage payroll services inc. ( ยadvantageย ) has license agreements with independently owned associate offices ( ยassociatesย ) , which are responsible for selling and marketing advantage payroll services and performing certain operational functions , while paychex and advantage provide all centralized back-office payroll processing and payroll tax administration services . under these arrangements , advantage pays the associates commissions based on processing activity for the related clients . when we acquired advantage , there were fifteen associates . over the past few years , some arrangements with various associates have been discontinued , and there are currently fewer than ten associates . since the actual amounts of future payments are uncertain , obligations under these arrangements are not included in the table above . commission expense for the associates for fiscal years 2011 , 2010 , and 2009 was $ 10.4 million , $ 9.9 million , and $ 12.3 million , respectively . in the normal course of business , we make representations and warranties that guarantee the performance of services under service arrangements with clients . historically , there have been no material losses related to such guarantees . in addition , we have entered into indemnification agreements with our officers and directors , which require us to defend and , if necessary , indemnify these individuals for certain
| financial position and liquidity the volatility in the global financial markets that began in september 2008 continues to curtail available liquidity and limit investment choices . despite this macroeconomic environment , as of may 31 , 2011 , our financial position remained strong with cash and total corporate investments of $ 671.3 million and no debt . our investment strategy focuses on optimizing liquidity and protecting principal . yields on high quality financial instruments remain low , negatively impacting our income earned on funds held for clients and corporate investments . we invest predominately in municipal bonds ย general obligation bonds ; pre-refunded bonds , which are secured by a u.s. government escrow ; and essential services revenue bonds . our primary short-term investment vehicle has been u.s. agency discount notes . starting in november 2009 , we began to invest in select a-1/p-1-rated variable rate demand notes ( ยvrdnsย ) and have gradually increased our investment in vrdns to $ 828.3 million as of may 31 , 2011. during fiscal 2011 , we earned an after-tax rate of approximately 0.23 % for vrdns compared to approximately 0.06 % for u.s. agency discount notes . 15 we invest primarily in high credit quality securities with aaa and aa ratings and short-term securities with a-1/p-1 ratings . we limit the amounts that can be invested in any single issuer and invest in short- to intermediate-term instruments whose fair value is less sensitive to interest rate changes . we believe that our investments as of may 31 , 2011 were not other-than-temporarily impaired , nor has any event occurred subsequent to that date that would indicate any other-than-temporary impairment . all investments held as of may 31 , 2011 were traded in active markets . our primary source of cash is our ongoing operations .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```financial position and liquidity the volatility in the global financial markets that began in september 2008 continues to curtail available liquidity and limit investment choices . despite this macroeconomic environment , as of may 31 , 2011 , our financial position remained strong with cash and total corporate investments of $ 671.3 million and no debt . our investment strategy focuses on optimizing liquidity and protecting principal . yields on high quality financial instruments remain low , negatively impacting our income earned on funds held for clients and corporate investments . we invest predominately in municipal bonds ย general obligation bonds ; pre-refunded bonds , which are secured by a u.s. government escrow ; and essential services revenue bonds . our primary short-term investment vehicle has been u.s. agency discount notes . starting in november 2009 , we began to invest in select a-1/p-1-rated variable rate demand notes ( ยvrdnsย ) and have gradually increased our investment in vrdns to $ 828.3 million as of may 31 , 2011. during fiscal 2011 , we earned an after-tax rate of approximately 0.23 % for vrdns compared to approximately 0.06 % for u.s. agency discount notes . 15 we invest primarily in high credit quality securities with aaa and aa ratings and short-term securities with a-1/p-1 ratings . we limit the amounts that can be invested in any single issuer and invest in short- to intermediate-term instruments whose fair value is less sensitive to interest rate changes . we believe that our investments as of may 31 , 2011 were not other-than-temporarily impaired , nor has any event occurred subsequent to that date that would indicate any other-than-temporary impairment . all investments held as of may 31 , 2011 were traded in active markets . our primary source of cash is our ongoing operations .
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Suspicious Activity Report : the equity markets hit a low in march 2009 , with interest rates available on high quality financial instruments remaining low since that time . the federal funds rate has been at a range of zero to 0.25 % since december 2008. our combined funds held for clients and corporate investment portfolios earned an average rate of return of 1.3 % for fiscal 2011 , compared to 1.5 % for fiscal 2010 and 2.1 % for fiscal 2009. we continue to manage our headcount and expenses while investing in our business , particularly in areas related to selling and servicing our clients , product development , and the technology required to support these areas . we believe these investments are critical to our success . looking to the future , we continue to focus on investing in our products , people , and service capabilities , positioning ourselves to capitalize on opportunities for long-term growth . highlights of our financial results for fiscal 2011 compared to fiscal 2010 are as follows : payroll service revenue increased 2 % to $ 1.4 billion . human resource services revenue increased 10 % to $ 597.4 million . interest on funds held for clients decreased 13 % to $ 48.1 million . total revenue increased 4 % to $ 2.1 billion . operating income increased 8 % to $ 786.4 million , and operating income , net of certain items , increased 7 % to $ 738.3 million . refer to the ยnon-gaap financial measureย discussion on page 14 for further information on operating income , net of certain items . operating income for fiscal 2010 reflected an expense charge of $ 18.7 million to increase the litigation reserve related to the rapid payroll court decision , which reduced diluted earnings per share for fiscal 2010 by $ 0.03 per share . net income and diluted earnings per share increased 8 % to $ 515.3 million and $ 1.42 per share , respectively . 13 cash flow from operations increased 17 % to $ 715.3 million , primarily related to the increase in net income and fluctuations in operating assets and liabilities . dividends of $ 448.8 million were paid to stockholders , representing 87 % of net income . during fiscal 2011 , we completed the acquisition of two software-as-a-service companies , opening up additional areas of the markets we serve . surepayroll , inc. ( ยsurepayrollย ) , a provider of payroll processing for small businesses , was acquired on february 8 , 2011 for $ 114.9 million , net of cash acquired . surepayroll serves small businesses with its easy-to-use , online payroll product and mobile application . this acquisition allows us entry into a new area of the online payroll market , and provides our clients with a mobile self-service alternative . the acquisition of surepayroll was dilutive to fiscal 2011 by less than $ 0.01 per share . eplan services , inc. ( ยeplanย ) , a provider of recordkeeping and administrative solutions to the defined contribution marketplace , was acquired on may 3 , 2011 for $ 15.2 million , net of cash acquired . both entities now operate as wholly owned subsidiaries of paychex . our financial results include the results of these entities from their respective dates of acquisition . neither acquisition is significant to our consolidated financial statements . non-gaap financial measure in addition to reporting operating income , a united states ( ยu.s.ย ) generally accepted accounting principle ( ยgaapย ) measure , we present operating income , net of certain items , which is a non-gaap measure . we believe operating income , net of certain items , is an appropriate additional measure , as it is an indicator of our core business operations performance period over period . it is also the basis of the measure used internally for establishing the following year 's targets and measuring management 's performance in connection with certain performance-based compensation payments and awards . operating income , net of certain items , excludes interest on funds held for clients and the expense charge in fiscal 2010 to increase the litigation reserve . interest on funds held for clients is an adjustment to operating income due to the volatility of interest rates , which are not within the control of management . the expense charge to increase the litigation reserve is also an adjustment to operating income due to its unusual and infrequent nature . it is outside the normal course of our operations and obscures the comparability of performance period over period . operating income , net of certain items , is not calculated through the application of gaap and is not the required form of disclosure by the securities and exchange commission . as such , it should not be considered as a substitute for the gaap measure of operating income and , therefore , should not be used in isolation , but in conjunction with the gaap measure . the use of any non-gaap measure may produce results that vary from the gaap measure and may not be comparable to a similarly defined non-gaap measure used by other companies . operating income , net of certain items , increased 7 % to $ 738.3 million for fiscal 2011 , compared to $ 688.5 million for fiscal 2010 and $ 729.7 million for fiscal 2009. business outlook our client base was approximately 564,000 clients as of may 31 , 2011 , compared to approximately 536,000 clients as of may 31 , 2010 , and approximately 554,000 clients as of may 31 , 2009. our client base increased 5.2 % for fiscal 2011 , compared to declines of 3.2 % for fiscal 2010 and 3.1 % for fiscal 2009. excluding the impact of 33,000 surepayroll clients , our client base would have declined 0.9 % for fiscal 2011. this reduction reflects the impact of lack of growth in new business starts on our client base story_separator_special_tag we also believe that our investments as of may 31 , 2011 were not other-than-temporarily impaired , nor has any event occurred subsequent to that date that would indicate any other-than-temporary impairment . we anticipate that cash and total corporate investments as of may 31 , 2011 , along with projected operating cash flows will support our normal business operations , capital purchases , and dividend payments for the foreseeable future . 21 commitments and contractual obligations lines of credit : as of may 31 , 2011 , we had unused borrowing capacity available under four uncommitted , secured , short-term lines of credit at market rates of interest with financial institutions as follows : replace_table_token_16_th our credit facilities are evidenced by promissory notes and are secured by separate pledge security agreements by and between paychex and each of the financial institutions ( the ยlendersย ) , pursuant to which we have granted each of the lenders a security interest in certain of our investment securities accounts . the collateral is maintained in a pooled custody account pursuant to the terms of a control agreement and is to be administered under an intercreditor agreement among the lenders . under certain circumstances , individual lenders may require that collateral be transferred from the pooled account into segregated accounts for the benefit of such individual lenders . the primary uses of the lines of credit would be to meet short-term funding requirements related to deposit account overdrafts and client fund obligations arising from electronic payment transactions on behalf of our clients in the ordinary course of business , if necessary . no amounts were outstanding against these lines of credit during fiscal 2011 or as of may 31 , 2011. jp morgan chase bank , n.a . and bank of america , n.a . are also parties to our irrevocable standby letters of credit , which are discussed below . letters of credit : as of may 31 , 2011 , we had irrevocable standby letters of credit outstanding totaling $ 47.4 million , required to secure commitments for certain of our insurance policies . the letters of credit expire at various dates between july 2011 and december 2011 , and are collateralized by securities held in our investment portfolios . no amounts were outstanding on these letters of credit during fiscal 2011 or as of may 31 , 2011. subsequent to may 31 , 2011 , the letter of credit expiring in july 2011 was renewed and will expire in july 2012. other commitments : we have entered into various operating leases and purchase obligations that , under gaap , are not reflected on the consolidated balance sheets as of may 31 , 2011. the table below summarizes our estimated annual payment obligations under these commitments as of may 31 , 2011 : replace_table_token_17_th ( 1 ) operating leases are primarily for office space and equipment used in our branch operations . ( 2 ) purchase obligations include our estimate of the minimum outstanding commitments under purchase orders to buy goods and services and legally binding contractual arrangements with future payment obligations . included in the total purchase obligations is $ 6.0 million of commitments to purchase capital assets . amounts actually paid under certain of these arrangements may be higher due to variable components of these agreements . the liability for uncertain tax positions was approximately $ 34.4 million as of may 31 , 2011. refer to note i of the notes to consolidated financial statements , contained in item 8 of this form 10-k , for more information on income taxes . we are not able to reasonably estimate the timing of future cash flows related to this liability and have excluded it from the table above . we are currently under a state income tax audit for the fiscal years ended may 31 , 2004 through 2009. on july 14 , 2010 , we received a summary of proposed tax adjustments from the new york state department of taxation and finance , which was in excess of the reserve recorded as of may 31 , 2011. the outcome 22 of the audit and the timing of settlement , if any , are subject to significant uncertainty . it is not possible to reasonably estimate the impact , if any , if resolution is ultimately unfavorable to us . certain deferred compensation plan obligations and other long-term liabilities amounting to $ 52.1 million are excluded from the table above because the timing of actual payments can not be specifically or reasonably determined due to the variability in assumptions required to project the timing of future payments . advantage payroll services inc. ( ยadvantageย ) has license agreements with independently owned associate offices ( ยassociatesย ) , which are responsible for selling and marketing advantage payroll services and performing certain operational functions , while paychex and advantage provide all centralized back-office payroll processing and payroll tax administration services . under these arrangements , advantage pays the associates commissions based on processing activity for the related clients . when we acquired advantage , there were fifteen associates . over the past few years , some arrangements with various associates have been discontinued , and there are currently fewer than ten associates . since the actual amounts of future payments are uncertain , obligations under these arrangements are not included in the table above . commission expense for the associates for fiscal years 2011 , 2010 , and 2009 was $ 10.4 million , $ 9.9 million , and $ 12.3 million , respectively . in the normal course of business , we make representations and warranties that guarantee the performance of services under service arrangements with clients . historically , there have been no material losses related to such guarantees . in addition , we have entered into indemnification agreements with our officers and directors , which require us to defend and , if necessary , indemnify these individuals for certain
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2,560 | ethane demand is expected to ramp up as new world-scale ethylene production projects , petrochemical plant modifications , plant expansions and export facilities near completion and begin coming on line in 2017. we expect increases in future ethane recoveries to have a favorable impact on oneok partners ' financial results , beginning primarily in the second half of 2017. growth projects - oneok partners completed its bear creek natural gas processing plant and related infrastructure projects in august 2016. these projects expand oneok partners ' natural gas gathering and processing and natural gas liquids gathering infrastructure in the williston basin to capture natural gas from new wells and natural gas previously flared by producers . in the natural gas pipelines segment , phase i of the roadrunner pipeline was completed in march 2016. phase ii of the roadrunner pipeline and the westex pipeline expansion project were completed in october 2016 , ahead of original schedule and below cost estimates . the roadrunner pipeline transports natural gas from the permian basin in west texas to the mexican border near el paso , texas , and together with oneok partners ' westex intrastate natural gas transmission pipeline , creates a platform for future opportunities to deliver natural gas supply to mexico . the execution of these capital investments aligns with oneok partners ' strategy to generate consistent growth and sustainable earnings through long-term fee-based projects . oneok partners ' contractual commitments from crude oil and natural gas producers , natural gas processors and electric generators are expected to provide incremental cash flows and long-term fee-based earnings . change in presentation of financial results - our chief operating decision-maker reviews the financial performance of each of oneok partners ' three segments , as well as our financial performance , on a regular basis . beginning in 2016 , adjusted ebitda by segment is utilized in this evaluation . we believe this financial measure is useful to investors because it and similar measures are used by many companies in our industry as a measurement of financial performance and are commonly employed by financial analysts and others to evaluate our financial performance and to compare financial performance among companies in our industry . see reconciliation of net income to adjusted ebitda in the โ adjusted ebitda โ section . dividends/distributions - during 2016 , we paid dividends totaling $ 2.46 per share , which is an increase from the $ 2.43 per share paid in 2015 . we declared a quarterly dividend of $ 0.615 per share ( $ 2.46 per share on an annualized basis ) in january 2017 , which is unchanged from the quarterly dividend declared in january 2016 . oneok partners ' structure as a master limited partnership requires it to pay out all of its available cash , as defined in the partnership agreement , in distributions to its unitholders . during 2016 , oneok partners paid cash distributions of $ 3.16 per unit , which is unchanged from 2015. oneok partners paid total cash distributions to us in 2016 of $ 790.0 million , which includes $ 361.2 million from our limited-partner interest and $ 428.8 million from our general-partner interest , which includes our incentive distribution rights . oneok partners paid a cash distribution of $ 0.79 per unit ( $ 3.16 per unit on an annualized basis ) for the fourth quarter 2016 . 46 financial results and operating information consolidated operations selected financial results - the following table sets forth certain selected consolidated financial results for the periods indicated : replace_table_token_5_th * percentage change is greater than 100 percent or is not meaningful . see reconciliation of net income to adjusted ebitda in the โ adjusted ebitda โ section . due to the nature of oneok partners ' contracts , changes in commodity prices and sales volumes affect both commodity sales and cost of sales and fuel in our consolidated statements of income and therefore the impact is largely offset between the two line items . 2016 vs. 2015 - operating income increased due primarily to higher natural gas and ngl volumes from completed capital-growth projects in the natural gas gathering and processing and natural gas liquids segments and new plant connections and increased ethane recovery in the natural gas liquids segment , higher fees resulting from contract restructuring in the natural gas gathering and processing segment and higher firm demand charge volumes contracted in the natural gas pipelines segment . these increases were offset partially by lower net realized ngl and natural gas prices in the natural gas gathering and processing segment , higher depreciation expense due to projects completed in 2016 and 2015 , higher labor costs associated with the growth of operations in the natural gas gathering and processing segment and higher employee-related costs associated with incentive and medical benefit plans and noncash expenses of a share-based deferred compensation plan due primarily to the increase of oneok 's share price in 2016. equity in net earnings from investments increased due primarily to higher volumes delivered to overland pass pipeline from oneok partners ' bakken ngl pipeline and higher firm transportation revenues on northern border pipeline and roadrunner , offset partially by lower equity earnings from oneok partners ' powder river basin equity investments . interest expense increased primarily as a result of higher interest costs incurred associated with our $ 500 million debt issuance in august 2015 and lower capitalized interest due to lower spending on capital-growth projects . 47 net income attributable to noncontrolling interests , which reflects primarily the portion of oneok partners that we do not own , increased in 2016 , compared with 2015 , due primarily to higher earnings at oneok partners , including noncash impairment charges in 2015 discussed below . story_separator_special_tag 2015 vs. 2014 - adjusted ebitda increased $ 131.4 million , primarily as a result of the following : an increase of $ 288.1 million in exchange services , which includes : โฆ an increase of $ 191.0 million , which resulted from increased volumes from new plants connected in the williston basin and mid-continent region and higher revenues from customers with minimum volume obligations ; โฆ an increase of $ 75.0 million due primarily to the acquisition of the west texas lpg system in the permian basin , which was acquired in november 2014 ; and โฆ an increase of $ 23.8 million resulting from decreased ethane rejection in the williston basin resulting from downstream ngl product specification issues , offset partially by higher ethane rejection in the mid-continent region ; an increase of $ 11.4 million in equity in net earnings from investments due primarily to higher volumes delivered to overland pass pipeline from the bakken ngl pipeline ; and an increase of $ 6.8 million in transportation revenues due primarily to increased volumes on oneok partners ' distribution pipelines ; offset partially by a decrease of $ 118.4 million in optimization , marketing and differentials-based activities , which resulted from a $ 66.3 million decrease due primarily to narrower ngl product price differentials , a $ 27.7 million decrease due primarily to narrower ngl location price differentials and a $ 24.4 million decrease in the marketing business . a portion of this decrease relates to the increased demand for propane experienced during the first quarter 2014 ; a decrease of $ 29.9 million related to lower isomerization volumes resulting from narrower ngl price differential between normal butane and iso-butane ; an increase of $ 18.1 million in operating costs primarily as a result of the completion of growth projects and west texas lpg acquisition , which includes : โฆ an increase of $ 29.2 million due to the west texas lpg acquisition ; and โฆ an increase of $ 6.5 million due to higher ad valorem taxes ; offset partially by โฆ a decrease of $ 17.6 million due to reduced operating costs resulting from lower rates charged by service providers , primarily from $ 6.6 million lower outside services , $ 5.0 million lower supplies and expenses and $ 3.2 million lower chemicals and materials ; and a decrease of $ 6.9 million due to the impact of operational losses in 2015 and operational measurement gains in 2014. capital expenditures decreased due primarily to the completion of several growth projects in 2014 and spending reductions for growth capital to align with customer needs . in 2015 , oneok partners recorded a noncash impairment charge of $ 10.0 million related to a previously idled asset , as the expectation for future use of the asset changed . replace_table_token_11_th ( a ) - includes volumes for consolidated entities only . ( b ) - includes volumes at company-owned and third-party facilities . 2016 vs. 2015 - ngls transported on gathering lines remained relatively unchanged due to increased volumes from new plant connections in the williston basin , increased ethane recovery and increased mid-continent volumes gathered in the stack and scoop areas , offset by decreased volumes on the west texas lpg system , decreased mid-continent volumes gathered from the barnett shale , lower short-term contracted volumes and the impact of weather on gathered volumes across oneok partners ' system in december 2016. ngls fractionated increased due to increased volumes from new plant connections in the williston basin , increased ethane recovery and increased mid-continent volumes gathered in the stack and scoop areas , offset partially by decreased 53 volumes gathered from the barnett shale and lower short-term contracted volumes and the impact of weather on gathered volumes across oneok partners ' system in december 2016. while the volume of ethane recovered increased , a portion of the fees associated with those volumes gathered and fractionated was previously being earned under contracts with minimum volume obligations . ngls transported on distribution lines increased due primarily to higher gathered and fractionated volumes as discussed above and due to increased volumes transported for oneok partners ' optimization business . 2015 vs. 2014 - ngls transported on gathering lines and ngls fractionated increased due to increased volumes from new plant connections in the williston basin and mid-continent region and decreased ethane rejection in the rocky mountain region , offset partially by increased ethane rejection in the mid-continent region . the decreased ethane rejection in the rocky mountain region began in june 2015 due to downstream ngl product specifications and increased gathered volumes by approximately 20 mbbl/d in the second half of 2015. ngls transported on gathering lines also increased significantly due to volumes from the permian basin transported on the west texas lpg system , which was acquired in november 2014. ngls transported on distribution lines increased due primarily to higher gathered and fractionated volumes as discussed above and due to increased volumes transported for oneok partners ' optimi zation business . natural gas pipelines growth projects - roadrunner is a 50 percent-owned joint venture equity-method investment project . the westex pipeline expansion is a wholly owned project . oneok partners completed the following growth projects in this segment in 2016 : replace_table_token_12_th ( a ) - excludes capitalized interest . ( b ) - 50-50 joint venture equity-method investment . approximate costs represents total project costs . roadrunner - phase i and phase ii of the roadrunner pipeline were completed in march and october 2016 , respectively . phase ii of roadrunner was completed ahead of original schedule and below cost estimates . construction of phase iii of roadrunner is planned for completion in 2019 , which will increase capacity by 70 mmcf/d and cost approximately $ 30 million- $ 40 million . oneok partners contributed approximately $ 65 million and $ 30 million to roadrunner in 2016 and 2015 , respectively . both the westex pipeline expansion and roadrunner are
| cash management - we and oneok partners each use similar centralized cash management programs that concentrate the cash assets of our operating subsidiaries in joint accounts for the purposes of providing financial flexibility and lowering the cost of borrowing , transaction costs and bank fees . both centralized cash management programs provide that funds in excess of the daily needs of the operating subsidiaries are concentrated , consolidated or otherwise made available for use by other entities within the respective consolidated groups . oneok partners ' operating subsidiaries participate to the extent they are permitted pursuant to ferc regulations or their operating agreements . under these cash management programs , depending on whether a participating subsidiary has short-term cash surpluses or cash requirements , we and oneok partners provide cash to our respective subsidiaries or the subsidiaries provide cash to us and oneok partners , respectively . 57 short-term liquidity - oneok 's sources of short-term liquidity are quarterly distributions from oneok partners , cash on hand of approximately $ 249 million as of december 31 , 2016 , and access to our $ 300 million oneok credit agreement . at december 31 , 2016 , oneok had no short-term debt outstanding . oneok partners ' principal sources of short-term liquidity consist of cash generated from operating activities , distributions received from its equity-method investments and proceeds from its commercial paper program and the oneok partners credit agreement .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash management - we and oneok partners each use similar centralized cash management programs that concentrate the cash assets of our operating subsidiaries in joint accounts for the purposes of providing financial flexibility and lowering the cost of borrowing , transaction costs and bank fees . both centralized cash management programs provide that funds in excess of the daily needs of the operating subsidiaries are concentrated , consolidated or otherwise made available for use by other entities within the respective consolidated groups . oneok partners ' operating subsidiaries participate to the extent they are permitted pursuant to ferc regulations or their operating agreements . under these cash management programs , depending on whether a participating subsidiary has short-term cash surpluses or cash requirements , we and oneok partners provide cash to our respective subsidiaries or the subsidiaries provide cash to us and oneok partners , respectively . 57 short-term liquidity - oneok 's sources of short-term liquidity are quarterly distributions from oneok partners , cash on hand of approximately $ 249 million as of december 31 , 2016 , and access to our $ 300 million oneok credit agreement . at december 31 , 2016 , oneok had no short-term debt outstanding . oneok partners ' principal sources of short-term liquidity consist of cash generated from operating activities , distributions received from its equity-method investments and proceeds from its commercial paper program and the oneok partners credit agreement .
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Suspicious Activity Report : ethane demand is expected to ramp up as new world-scale ethylene production projects , petrochemical plant modifications , plant expansions and export facilities near completion and begin coming on line in 2017. we expect increases in future ethane recoveries to have a favorable impact on oneok partners ' financial results , beginning primarily in the second half of 2017. growth projects - oneok partners completed its bear creek natural gas processing plant and related infrastructure projects in august 2016. these projects expand oneok partners ' natural gas gathering and processing and natural gas liquids gathering infrastructure in the williston basin to capture natural gas from new wells and natural gas previously flared by producers . in the natural gas pipelines segment , phase i of the roadrunner pipeline was completed in march 2016. phase ii of the roadrunner pipeline and the westex pipeline expansion project were completed in october 2016 , ahead of original schedule and below cost estimates . the roadrunner pipeline transports natural gas from the permian basin in west texas to the mexican border near el paso , texas , and together with oneok partners ' westex intrastate natural gas transmission pipeline , creates a platform for future opportunities to deliver natural gas supply to mexico . the execution of these capital investments aligns with oneok partners ' strategy to generate consistent growth and sustainable earnings through long-term fee-based projects . oneok partners ' contractual commitments from crude oil and natural gas producers , natural gas processors and electric generators are expected to provide incremental cash flows and long-term fee-based earnings . change in presentation of financial results - our chief operating decision-maker reviews the financial performance of each of oneok partners ' three segments , as well as our financial performance , on a regular basis . beginning in 2016 , adjusted ebitda by segment is utilized in this evaluation . we believe this financial measure is useful to investors because it and similar measures are used by many companies in our industry as a measurement of financial performance and are commonly employed by financial analysts and others to evaluate our financial performance and to compare financial performance among companies in our industry . see reconciliation of net income to adjusted ebitda in the โ adjusted ebitda โ section . dividends/distributions - during 2016 , we paid dividends totaling $ 2.46 per share , which is an increase from the $ 2.43 per share paid in 2015 . we declared a quarterly dividend of $ 0.615 per share ( $ 2.46 per share on an annualized basis ) in january 2017 , which is unchanged from the quarterly dividend declared in january 2016 . oneok partners ' structure as a master limited partnership requires it to pay out all of its available cash , as defined in the partnership agreement , in distributions to its unitholders . during 2016 , oneok partners paid cash distributions of $ 3.16 per unit , which is unchanged from 2015. oneok partners paid total cash distributions to us in 2016 of $ 790.0 million , which includes $ 361.2 million from our limited-partner interest and $ 428.8 million from our general-partner interest , which includes our incentive distribution rights . oneok partners paid a cash distribution of $ 0.79 per unit ( $ 3.16 per unit on an annualized basis ) for the fourth quarter 2016 . 46 financial results and operating information consolidated operations selected financial results - the following table sets forth certain selected consolidated financial results for the periods indicated : replace_table_token_5_th * percentage change is greater than 100 percent or is not meaningful . see reconciliation of net income to adjusted ebitda in the โ adjusted ebitda โ section . due to the nature of oneok partners ' contracts , changes in commodity prices and sales volumes affect both commodity sales and cost of sales and fuel in our consolidated statements of income and therefore the impact is largely offset between the two line items . 2016 vs. 2015 - operating income increased due primarily to higher natural gas and ngl volumes from completed capital-growth projects in the natural gas gathering and processing and natural gas liquids segments and new plant connections and increased ethane recovery in the natural gas liquids segment , higher fees resulting from contract restructuring in the natural gas gathering and processing segment and higher firm demand charge volumes contracted in the natural gas pipelines segment . these increases were offset partially by lower net realized ngl and natural gas prices in the natural gas gathering and processing segment , higher depreciation expense due to projects completed in 2016 and 2015 , higher labor costs associated with the growth of operations in the natural gas gathering and processing segment and higher employee-related costs associated with incentive and medical benefit plans and noncash expenses of a share-based deferred compensation plan due primarily to the increase of oneok 's share price in 2016. equity in net earnings from investments increased due primarily to higher volumes delivered to overland pass pipeline from oneok partners ' bakken ngl pipeline and higher firm transportation revenues on northern border pipeline and roadrunner , offset partially by lower equity earnings from oneok partners ' powder river basin equity investments . interest expense increased primarily as a result of higher interest costs incurred associated with our $ 500 million debt issuance in august 2015 and lower capitalized interest due to lower spending on capital-growth projects . 47 net income attributable to noncontrolling interests , which reflects primarily the portion of oneok partners that we do not own , increased in 2016 , compared with 2015 , due primarily to higher earnings at oneok partners , including noncash impairment charges in 2015 discussed below . story_separator_special_tag 2015 vs. 2014 - adjusted ebitda increased $ 131.4 million , primarily as a result of the following : an increase of $ 288.1 million in exchange services , which includes : โฆ an increase of $ 191.0 million , which resulted from increased volumes from new plants connected in the williston basin and mid-continent region and higher revenues from customers with minimum volume obligations ; โฆ an increase of $ 75.0 million due primarily to the acquisition of the west texas lpg system in the permian basin , which was acquired in november 2014 ; and โฆ an increase of $ 23.8 million resulting from decreased ethane rejection in the williston basin resulting from downstream ngl product specification issues , offset partially by higher ethane rejection in the mid-continent region ; an increase of $ 11.4 million in equity in net earnings from investments due primarily to higher volumes delivered to overland pass pipeline from the bakken ngl pipeline ; and an increase of $ 6.8 million in transportation revenues due primarily to increased volumes on oneok partners ' distribution pipelines ; offset partially by a decrease of $ 118.4 million in optimization , marketing and differentials-based activities , which resulted from a $ 66.3 million decrease due primarily to narrower ngl product price differentials , a $ 27.7 million decrease due primarily to narrower ngl location price differentials and a $ 24.4 million decrease in the marketing business . a portion of this decrease relates to the increased demand for propane experienced during the first quarter 2014 ; a decrease of $ 29.9 million related to lower isomerization volumes resulting from narrower ngl price differential between normal butane and iso-butane ; an increase of $ 18.1 million in operating costs primarily as a result of the completion of growth projects and west texas lpg acquisition , which includes : โฆ an increase of $ 29.2 million due to the west texas lpg acquisition ; and โฆ an increase of $ 6.5 million due to higher ad valorem taxes ; offset partially by โฆ a decrease of $ 17.6 million due to reduced operating costs resulting from lower rates charged by service providers , primarily from $ 6.6 million lower outside services , $ 5.0 million lower supplies and expenses and $ 3.2 million lower chemicals and materials ; and a decrease of $ 6.9 million due to the impact of operational losses in 2015 and operational measurement gains in 2014. capital expenditures decreased due primarily to the completion of several growth projects in 2014 and spending reductions for growth capital to align with customer needs . in 2015 , oneok partners recorded a noncash impairment charge of $ 10.0 million related to a previously idled asset , as the expectation for future use of the asset changed . replace_table_token_11_th ( a ) - includes volumes for consolidated entities only . ( b ) - includes volumes at company-owned and third-party facilities . 2016 vs. 2015 - ngls transported on gathering lines remained relatively unchanged due to increased volumes from new plant connections in the williston basin , increased ethane recovery and increased mid-continent volumes gathered in the stack and scoop areas , offset by decreased volumes on the west texas lpg system , decreased mid-continent volumes gathered from the barnett shale , lower short-term contracted volumes and the impact of weather on gathered volumes across oneok partners ' system in december 2016. ngls fractionated increased due to increased volumes from new plant connections in the williston basin , increased ethane recovery and increased mid-continent volumes gathered in the stack and scoop areas , offset partially by decreased 53 volumes gathered from the barnett shale and lower short-term contracted volumes and the impact of weather on gathered volumes across oneok partners ' system in december 2016. while the volume of ethane recovered increased , a portion of the fees associated with those volumes gathered and fractionated was previously being earned under contracts with minimum volume obligations . ngls transported on distribution lines increased due primarily to higher gathered and fractionated volumes as discussed above and due to increased volumes transported for oneok partners ' optimization business . 2015 vs. 2014 - ngls transported on gathering lines and ngls fractionated increased due to increased volumes from new plant connections in the williston basin and mid-continent region and decreased ethane rejection in the rocky mountain region , offset partially by increased ethane rejection in the mid-continent region . the decreased ethane rejection in the rocky mountain region began in june 2015 due to downstream ngl product specifications and increased gathered volumes by approximately 20 mbbl/d in the second half of 2015. ngls transported on gathering lines also increased significantly due to volumes from the permian basin transported on the west texas lpg system , which was acquired in november 2014. ngls transported on distribution lines increased due primarily to higher gathered and fractionated volumes as discussed above and due to increased volumes transported for oneok partners ' optimi zation business . natural gas pipelines growth projects - roadrunner is a 50 percent-owned joint venture equity-method investment project . the westex pipeline expansion is a wholly owned project . oneok partners completed the following growth projects in this segment in 2016 : replace_table_token_12_th ( a ) - excludes capitalized interest . ( b ) - 50-50 joint venture equity-method investment . approximate costs represents total project costs . roadrunner - phase i and phase ii of the roadrunner pipeline were completed in march and october 2016 , respectively . phase ii of roadrunner was completed ahead of original schedule and below cost estimates . construction of phase iii of roadrunner is planned for completion in 2019 , which will increase capacity by 70 mmcf/d and cost approximately $ 30 million- $ 40 million . oneok partners contributed approximately $ 65 million and $ 30 million to roadrunner in 2016 and 2015 , respectively . both the westex pipeline expansion and roadrunner are
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2,561 | the company does not intend to comment on or disclose developments regarding the process unless it deems further disclosure appropriate or required . please see `` risk factors `` in item 1a . accounting periods our fiscal year ends on the last wednesday in august . accordingly , each fiscal year normally consists of 13 four-week periods , or accounting periods , accounting for 364 days in the aggregate . however , every fifth or sixth year , we have a fiscal year that consists of 53 weeks , accounting for 371 days in the aggregate . our first quarter consists of four four-week periods , while our last three quarters normally consist of three four-week periods . comparability between quarters may be affected by the varying lengths of the quarters , as well as the seasonality associated with the restaurant business . same-store sales as a result of the covid-19 pandemic , we do not believe that a comparison of year-to-year restaurant sales is meaningful , and therefore , same-store sales are not presented in this annual report on form 10-k. 17 results of operations fiscal 2020 ( 52 weeks ) compared to fiscal 2019 ( 52 weeks ) sales replace_table_token_3_th total company sales decreased approximately $ 109.4 million , or 33.8 % , in fiscal 2020 compared to fiscal 2019 , consisting primarily of an approximate $ 101.0 million decrease in restaurant sales and an approximate $ 0.2 million decrease in vending revenue . culinary contract services sales decreased by an approximate $ 5.1 million . franchise revenue decreased $ 3.1 million . in fiscal 2019 and fiscal 2020 , we operated with five reportable operating segments : luby 's cafeterias , fuddruckers restaurants , cheeseburger in paradise , fuddruckers franchise operations , and culinary contract services . company-owned restaurants restaurant sales replace_table_token_4_th total restaurant sales decreased approximately $ 101.0 million in fiscal 2020 compared to fiscal 2019. the decrease in restaurant sales included an approximate $ 57.6 million decrease in sales at stand-alone luby 's cafeterias , an approximate $ 35.1 million decrease in sales at stand-alone fuddruckers restaurants , an approximate $ 6.8 million decrease in sales from combo locations , and an approximate $ 1.6 million decrease at sales from our cheeseburger in paradise restaurants . the approximate $ 57.6 million decrease in sales at stand-alone luby 's includes the reduction of 23 operating restaurants accounting for $ 19.5 million lower sales . sales at stores that did not close on a permanent basis decreased $ 38.1 million . the number of store days where restaurants were open declined 15.0 % as stores were temporarily closed due to the pandemic . as of the last week of fiscal 2020 , sales at operating stores decreased 18 % compared to the same week of fiscal 2019. the approximate $ 35.1 million decrease in sales at stand-alone fuddruckers restaurants reflects primarily the reduction of 36 operating restaurants accounting for a decrease of $ 25.5 million . the stores that did not close on a permanent basis accounted for a decrease of $ 9.6 million due to fewer operating days due to the pandemic . store days at these locations declined 22.7 % due to temporary closures from the pandemic . as of the last week of the fiscal 2020 , sales at operating stores decreased 37 % compared to the same week of fiscal 2019. the approximate $ 6.8 million decrease in sales from combo locations reflects a decline of $ 0.8 million due to the permanent closure of one location . the remaining decline was due to a reduction in operating store days for the remaining locations of 29.3 % . the approximate $ 1.6 million decrease in sales from our cheeseburger in paradise reflects the reduction of two operating restaurants as we have closed all remaining units as of august 26 , 2020 . 18 cost of food replace_table_token_5_th cost of food , which is comprised of the cost associated with the sale of food and beverage products that are consumed while dining in our restaurants , as take-out , and as catering . cost of food decreased approximately $ 27.0 million , or 33.9 % , in fiscal 2020 compared to fiscal 2019. cost of food is variable and generally fluctuates with sales and guest traffic volume . as a percentage of restaurant sales , food costs increased 0.7 % to 28.6 % in fiscal 2020 compared to 27.9 % in fiscal 2019. the cost of food as percentage of sales was impacted in part by the write off of food inventories for stores closed due to the pandemic . for stores that are not permanently closed , as a result of the pandemic , we have tried to simplify the menu and reduce waste to reduce food cost as a percentage of sales . the cost of food as a percentage of restaurant sales in the luby 's cafeteria segment increased 0.3 % to 28.7 % in fiscal 2020 compared to fiscal 2019 due in part to the reasons and initiatives stated above . the cost of food as a percentage of restaurant sales for the fuddruckers restaurants segment increased 1.6 % in fiscal 2020 compared to fiscal 2019. the cost of food as a percentage of restaurant sales for the cheeseburger in paradise segment increased 0.8 % in fiscal 2020 compared to fiscal 2019. payroll and related costs replace_table_token_6_th payroll and related costs includes restaurant-level hourly wages , including overtime pay , and pay while training , as well as management salaries and incentive payments . payroll and related costs also include the payroll taxes , workers ' compensation expense , group health insurance costs , and 401 ( k ) matching expense for all restaurant-level hourly and management employees . story_separator_special_tag interest paid in cash was $ 5.3 million in fiscal 2020 and $ 4.5 million in fiscal 2019. other income ( expense ) , net other income , net , consisted primarily of the following components : net rental property income and expenses relating to property for which we are the landlord ; prepaid sales tax discounts earned through our participation in state tax prepayment programs ; oil and gas royalty income ; and changes in the fair value of our interest rate swap agreement prior to its termination in december 2018. other income was approximately $ 1.2 million in fiscal 2020 compared to approximately $ 0.2 million in fiscal 2019. the approximate $ 1.2 million of income in fiscal 2020 is primarily net rental income , partially offset by sales tax discount expense and a reduction in the fair value of our interest rate swap in the first quarter fiscal 2019. the approximate $ 0.2 million of income in fiscal 2019 primarily reflects net rental income and an increase in the fair value of our interest rate swap , partially offset by gift card expenses ( specifically the expense of discounting gift card sales ) . taxes the income tax provision related to continuing operations for fiscal 2020 was approximately $ 0.4 million compared to an income tax provision of approximately $ 0.5 million for fiscal 2019. the income tax provision in fiscal 2020 reflects $ 0.3 million of current state income tax and $ 0.1 million of international withholding taxes . the income tax provision in fiscal 2019 reflects $ 0.4 million of current state income tax and $ 0.1 million of international withholding taxes . the effective tax rate ( `` etr `` ) for continuing operations was a negative 1.2 % for fiscal 2020 and a negative 3.2 % for fiscal 2019. the etr for fiscal 2020 differs from the federal statutory rate of 21 % due to the change in the deferred tax valuation allowance , state income taxes and other discrete items . the etr for fiscal 2019 differs from the federal statutory rate due to the change in the deferred tax valuation allowance , the federal jobs credits , state income taxes and other discrete items . discontinued operations replace_table_token_14_th the loss from discontinued operations , net of income taxes was $ 29 thousand in fiscal 2020 compared to a loss of approximately $ 7 thousand in fiscal 2019. the loss of $ 29 thousand in fiscal 2020 primarily reflected net occupancy cost associated with assets that were related to discontinued operations . the loss of $ 7 thousand in fiscal 2019 included carrying costs ( typically rent , property taxes , utilities , and maintenance ) associated with assets that were related to discontinued operations . liquidity and capital resources story_separator_special_tag million . the decreases reflect the lower activity levels in all our reportable segments at the end of fiscal 2020 as compared to fiscal 2019. the increase in operating lease liabilities current includes $ 8.1 million related to the cumulative effect of adopting the new lease accounting standard as more fully described at note 1 to the consolidated financial statements included in item 8. of this form 10-k. capital expenditures capital expenditures for fiscal 2020 were approximately $ 2.1 million primarily related to recurring maintenance of our restaurant properties and information technology infrastructure . in fiscal 2021 , we expect to invest up to $ 3.0 million for recurring maintenance for our restaurant properties , depending on the timing of the execution of our plan of liquidation . we expect to be able to fund all planned capital expenditures in fiscal 2021 using cash on hand , cash flows from operations and proceeds from the sale of assets . debt ppp loan on april 21 , 2020 , the company entered into a promissory note with texas capital bank , n.a ( `` tcb `` ) , effective april 12 , 2020 , that provides for a loan in the amount of $ 10.0 million ( the โ ppp loan โ ) pursuant to the payroll protection program ( โ ppp โ ) , established under the cares act . the ppp loan is subject to forgiveness under the ppp upon the company 's request to the extent that the proceeds are used to pay expenses permitted by the ppp , including payroll costs , covered rent and mortgage obligations , and covered utility payments . amounts outstanding under the loan bear a fixed interest rate of 1.0 % per annum with a maturity date of april 12 , 2022 , two years from the commencement date . on june 5 , 2020 , the paycheck protection program flexibility act ( the โ new act โ ) was signed into law and made significant changes to the ppp to provide additional relief for borrowers under the ppp . the new act increased flexibility for businesses that were unable to operate as normal due to covid-19 related restrictions . the new act extended the period that businesses have to use ppp funds to qualify for loan forgiveness to 24 weeks , up from 8 weeks under the original rules , relaxed the requirements that loan recipients must adhere to in order to qualify for loan forgiveness , and extended the payment deferral period to the earlier of the date when the amount of loan forgiveness is determined by the sba and lender or 10 months after the 24 week covered period ends . initially , all payments were to be deferred for six months . under the new act , payments are deferred until the sba remits any loan forgiveness amount to the lender , tcb in the case of the company . interest accrues over the entire period of the ppp loan for the portion of the ppp that is not ultimately forgiven . on november 12 , 2020 , the company submitted an application for forgiveness of the entire amount
| cash and cash equivalents in fiscal 2020 and 2019 our primary sources of short-term and long-term liquidity were proceeds from asset sales , our 2018 and 2016 credit facilities and , in fiscal 2020 , our ppp loan . cash and cash equivalents and restricted cash increased approximately $ 9.1 million from $ 12.8 million at the end of fiscal 2019 to $ 21.8 million at the end of fiscal 2020. we expect to continue to invest our available liquidity to reduce our debt , maintain our existing restaurants and infrastructure and provide working capital requirements as necessary . we plan to continue a level of capital and repair and maintenance expenditures to keep our restaurants attractive and operating efficiently . based upon our level of past and projected capital requirements , we expect that proceeds from the sale of assets , cash on hand and cash flows from operations , will be sufficient to meet our capital expenditures and working capital requirements during the next twelve months . 25 as is common in the restaurant industry , we maintain relatively low levels of accounts receivable and inventories and our vendors grant trade credit for purchases such as food and supplies . however , higher levels of accounts receivable are typical in our ccs business segment and fuddruckers franchise business segment . the following table summarizes our cash flows from operating , investing and financing activities : replace_table_token_15_th operating activities .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash and cash equivalents in fiscal 2020 and 2019 our primary sources of short-term and long-term liquidity were proceeds from asset sales , our 2018 and 2016 credit facilities and , in fiscal 2020 , our ppp loan . cash and cash equivalents and restricted cash increased approximately $ 9.1 million from $ 12.8 million at the end of fiscal 2019 to $ 21.8 million at the end of fiscal 2020. we expect to continue to invest our available liquidity to reduce our debt , maintain our existing restaurants and infrastructure and provide working capital requirements as necessary . we plan to continue a level of capital and repair and maintenance expenditures to keep our restaurants attractive and operating efficiently . based upon our level of past and projected capital requirements , we expect that proceeds from the sale of assets , cash on hand and cash flows from operations , will be sufficient to meet our capital expenditures and working capital requirements during the next twelve months . 25 as is common in the restaurant industry , we maintain relatively low levels of accounts receivable and inventories and our vendors grant trade credit for purchases such as food and supplies . however , higher levels of accounts receivable are typical in our ccs business segment and fuddruckers franchise business segment . the following table summarizes our cash flows from operating , investing and financing activities : replace_table_token_15_th operating activities .
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Suspicious Activity Report : the company does not intend to comment on or disclose developments regarding the process unless it deems further disclosure appropriate or required . please see `` risk factors `` in item 1a . accounting periods our fiscal year ends on the last wednesday in august . accordingly , each fiscal year normally consists of 13 four-week periods , or accounting periods , accounting for 364 days in the aggregate . however , every fifth or sixth year , we have a fiscal year that consists of 53 weeks , accounting for 371 days in the aggregate . our first quarter consists of four four-week periods , while our last three quarters normally consist of three four-week periods . comparability between quarters may be affected by the varying lengths of the quarters , as well as the seasonality associated with the restaurant business . same-store sales as a result of the covid-19 pandemic , we do not believe that a comparison of year-to-year restaurant sales is meaningful , and therefore , same-store sales are not presented in this annual report on form 10-k. 17 results of operations fiscal 2020 ( 52 weeks ) compared to fiscal 2019 ( 52 weeks ) sales replace_table_token_3_th total company sales decreased approximately $ 109.4 million , or 33.8 % , in fiscal 2020 compared to fiscal 2019 , consisting primarily of an approximate $ 101.0 million decrease in restaurant sales and an approximate $ 0.2 million decrease in vending revenue . culinary contract services sales decreased by an approximate $ 5.1 million . franchise revenue decreased $ 3.1 million . in fiscal 2019 and fiscal 2020 , we operated with five reportable operating segments : luby 's cafeterias , fuddruckers restaurants , cheeseburger in paradise , fuddruckers franchise operations , and culinary contract services . company-owned restaurants restaurant sales replace_table_token_4_th total restaurant sales decreased approximately $ 101.0 million in fiscal 2020 compared to fiscal 2019. the decrease in restaurant sales included an approximate $ 57.6 million decrease in sales at stand-alone luby 's cafeterias , an approximate $ 35.1 million decrease in sales at stand-alone fuddruckers restaurants , an approximate $ 6.8 million decrease in sales from combo locations , and an approximate $ 1.6 million decrease at sales from our cheeseburger in paradise restaurants . the approximate $ 57.6 million decrease in sales at stand-alone luby 's includes the reduction of 23 operating restaurants accounting for $ 19.5 million lower sales . sales at stores that did not close on a permanent basis decreased $ 38.1 million . the number of store days where restaurants were open declined 15.0 % as stores were temporarily closed due to the pandemic . as of the last week of fiscal 2020 , sales at operating stores decreased 18 % compared to the same week of fiscal 2019. the approximate $ 35.1 million decrease in sales at stand-alone fuddruckers restaurants reflects primarily the reduction of 36 operating restaurants accounting for a decrease of $ 25.5 million . the stores that did not close on a permanent basis accounted for a decrease of $ 9.6 million due to fewer operating days due to the pandemic . store days at these locations declined 22.7 % due to temporary closures from the pandemic . as of the last week of the fiscal 2020 , sales at operating stores decreased 37 % compared to the same week of fiscal 2019. the approximate $ 6.8 million decrease in sales from combo locations reflects a decline of $ 0.8 million due to the permanent closure of one location . the remaining decline was due to a reduction in operating store days for the remaining locations of 29.3 % . the approximate $ 1.6 million decrease in sales from our cheeseburger in paradise reflects the reduction of two operating restaurants as we have closed all remaining units as of august 26 , 2020 . 18 cost of food replace_table_token_5_th cost of food , which is comprised of the cost associated with the sale of food and beverage products that are consumed while dining in our restaurants , as take-out , and as catering . cost of food decreased approximately $ 27.0 million , or 33.9 % , in fiscal 2020 compared to fiscal 2019. cost of food is variable and generally fluctuates with sales and guest traffic volume . as a percentage of restaurant sales , food costs increased 0.7 % to 28.6 % in fiscal 2020 compared to 27.9 % in fiscal 2019. the cost of food as percentage of sales was impacted in part by the write off of food inventories for stores closed due to the pandemic . for stores that are not permanently closed , as a result of the pandemic , we have tried to simplify the menu and reduce waste to reduce food cost as a percentage of sales . the cost of food as a percentage of restaurant sales in the luby 's cafeteria segment increased 0.3 % to 28.7 % in fiscal 2020 compared to fiscal 2019 due in part to the reasons and initiatives stated above . the cost of food as a percentage of restaurant sales for the fuddruckers restaurants segment increased 1.6 % in fiscal 2020 compared to fiscal 2019. the cost of food as a percentage of restaurant sales for the cheeseburger in paradise segment increased 0.8 % in fiscal 2020 compared to fiscal 2019. payroll and related costs replace_table_token_6_th payroll and related costs includes restaurant-level hourly wages , including overtime pay , and pay while training , as well as management salaries and incentive payments . payroll and related costs also include the payroll taxes , workers ' compensation expense , group health insurance costs , and 401 ( k ) matching expense for all restaurant-level hourly and management employees . story_separator_special_tag interest paid in cash was $ 5.3 million in fiscal 2020 and $ 4.5 million in fiscal 2019. other income ( expense ) , net other income , net , consisted primarily of the following components : net rental property income and expenses relating to property for which we are the landlord ; prepaid sales tax discounts earned through our participation in state tax prepayment programs ; oil and gas royalty income ; and changes in the fair value of our interest rate swap agreement prior to its termination in december 2018. other income was approximately $ 1.2 million in fiscal 2020 compared to approximately $ 0.2 million in fiscal 2019. the approximate $ 1.2 million of income in fiscal 2020 is primarily net rental income , partially offset by sales tax discount expense and a reduction in the fair value of our interest rate swap in the first quarter fiscal 2019. the approximate $ 0.2 million of income in fiscal 2019 primarily reflects net rental income and an increase in the fair value of our interest rate swap , partially offset by gift card expenses ( specifically the expense of discounting gift card sales ) . taxes the income tax provision related to continuing operations for fiscal 2020 was approximately $ 0.4 million compared to an income tax provision of approximately $ 0.5 million for fiscal 2019. the income tax provision in fiscal 2020 reflects $ 0.3 million of current state income tax and $ 0.1 million of international withholding taxes . the income tax provision in fiscal 2019 reflects $ 0.4 million of current state income tax and $ 0.1 million of international withholding taxes . the effective tax rate ( `` etr `` ) for continuing operations was a negative 1.2 % for fiscal 2020 and a negative 3.2 % for fiscal 2019. the etr for fiscal 2020 differs from the federal statutory rate of 21 % due to the change in the deferred tax valuation allowance , state income taxes and other discrete items . the etr for fiscal 2019 differs from the federal statutory rate due to the change in the deferred tax valuation allowance , the federal jobs credits , state income taxes and other discrete items . discontinued operations replace_table_token_14_th the loss from discontinued operations , net of income taxes was $ 29 thousand in fiscal 2020 compared to a loss of approximately $ 7 thousand in fiscal 2019. the loss of $ 29 thousand in fiscal 2020 primarily reflected net occupancy cost associated with assets that were related to discontinued operations . the loss of $ 7 thousand in fiscal 2019 included carrying costs ( typically rent , property taxes , utilities , and maintenance ) associated with assets that were related to discontinued operations . liquidity and capital resources story_separator_special_tag million . the decreases reflect the lower activity levels in all our reportable segments at the end of fiscal 2020 as compared to fiscal 2019. the increase in operating lease liabilities current includes $ 8.1 million related to the cumulative effect of adopting the new lease accounting standard as more fully described at note 1 to the consolidated financial statements included in item 8. of this form 10-k. capital expenditures capital expenditures for fiscal 2020 were approximately $ 2.1 million primarily related to recurring maintenance of our restaurant properties and information technology infrastructure . in fiscal 2021 , we expect to invest up to $ 3.0 million for recurring maintenance for our restaurant properties , depending on the timing of the execution of our plan of liquidation . we expect to be able to fund all planned capital expenditures in fiscal 2021 using cash on hand , cash flows from operations and proceeds from the sale of assets . debt ppp loan on april 21 , 2020 , the company entered into a promissory note with texas capital bank , n.a ( `` tcb `` ) , effective april 12 , 2020 , that provides for a loan in the amount of $ 10.0 million ( the โ ppp loan โ ) pursuant to the payroll protection program ( โ ppp โ ) , established under the cares act . the ppp loan is subject to forgiveness under the ppp upon the company 's request to the extent that the proceeds are used to pay expenses permitted by the ppp , including payroll costs , covered rent and mortgage obligations , and covered utility payments . amounts outstanding under the loan bear a fixed interest rate of 1.0 % per annum with a maturity date of april 12 , 2022 , two years from the commencement date . on june 5 , 2020 , the paycheck protection program flexibility act ( the โ new act โ ) was signed into law and made significant changes to the ppp to provide additional relief for borrowers under the ppp . the new act increased flexibility for businesses that were unable to operate as normal due to covid-19 related restrictions . the new act extended the period that businesses have to use ppp funds to qualify for loan forgiveness to 24 weeks , up from 8 weeks under the original rules , relaxed the requirements that loan recipients must adhere to in order to qualify for loan forgiveness , and extended the payment deferral period to the earlier of the date when the amount of loan forgiveness is determined by the sba and lender or 10 months after the 24 week covered period ends . initially , all payments were to be deferred for six months . under the new act , payments are deferred until the sba remits any loan forgiveness amount to the lender , tcb in the case of the company . interest accrues over the entire period of the ppp loan for the portion of the ppp that is not ultimately forgiven . on november 12 , 2020 , the company submitted an application for forgiveness of the entire amount
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2,562 | this increase is primarily due to higher average debt balances , including additional borrowings incurred in late 2009 primarily to support our strategic plans , and higher costs related to the execution and maintenance of our revolving credit facility executed in june 2010 ; and net income attributable to waste management , inc. of $ 953 million , or $ 1.98 per diluted share for 2010 , as compared with $ 994 million , or $ 2.01 per diluted share in 2009. the comparability of our 2010 results with 2009 has been affected by certain items management believes are not representative or indicative of our performance . our 2010 results were affected by the following : the recognition of pre-tax charges aggregating $ 55 million related to remediation and closure costs at five closed sites , which had a negative impact of $ 0.07 on our diluted earnings per share ; the recognition of net tax charges of $ 32 million due to refinements in estimates of our deferred state income taxes and the finalization of our 2009 tax returns , partially offset by favorable tax audit settlements , all of which , combined , had a negative impact of $ 0.07 on our diluted earnings per share ; 26 the recognition of a net favorable pre-tax benefit of $ 46 million for litigation and associated costs , which had a favorable impact of $ 0.06 on our diluted earnings per share ; and the recognition of net pre-tax charges of $ 26 million as a result of the withdrawal of certain of our union bargaining units from an underfunded multiemployer pension plan , which had a negative impact of $ 0.03 on our diluted earnings per share . our 2009 results were affected by the following : the recognition of a tax benefit of $ 130 million due principally to favorable adjustments from the carry-back of a capital loss , the recognition of state net operating losses and tax credits , the finalization of our 2008 tax returns , the impact of tax audit settlements and the revaluation of deferred taxes due to canadian tax rate reductions . these items had a combined favorable impact of $ 0.26 on our diluted earnings per share ; the recognition of impairment charges totaling $ 83 million due primarily to the abandonment of revenue management software and a change in expectations for the future operations of an inactive landfill in california . these items had a negative impact of $ 0.10 on our diluted earnings per share ; and the recognition of pre-tax charges of $ 50 million related to our 2009 restructuring , primarily related to severance and benefit costs . these restructuring charges reduced diluted earnings per share for the year by $ 0.06. we are pleased about the lower rate of decline in internal revenue growth from volumes that we experienced during 2010. on the pricing front , our fourth quarter 2010 results were the strongest of the year . for both the fourth quarter and the full year of 2010 , we outpaced our long-term pricing objective of achieving price increases in the range of 50 to 100 basis points above the consumer price index , or cpi . in 2011 , we will remain committed to our pricing discipline . based on an anticipated cpi run-rate of 1.0 % , we expect our overall revenue growth from yield to be approximately 2.0 % . additionally , we expect our revenue growth from volumes to be flat to slightly positive . however , we are mindful of trends toward waste reduction at the source , diversion from landfills and customers seeking alternative methods of disposal . we will continue to implement measures that we believe will grow our business , improve our current operations performance and enhance and expand our services . free cash flow as is our practice , we are presenting free cash flow , which is a non-gaap measure of liquidity , in our disclosures because we use this measure in the evaluation and management of our business . we define free cash flow as net cash provided by operating activities , less capital expenditures , plus proceeds from divestitures of businesses ( net of cash divested ) and other sales of assets . we believe it is indicative of our ability to pay our quarterly dividends , repurchase common stock , fund acquisitions and other investments and , in the absence of refinancings , to repay our debt obligations . free cash flow is not intended to replace ยnet cash provided by operating activities , ย which is the most comparable u.s. gaap measure . however , we believe free cash flow gives investors useful insight into how we view our liquidity . nonetheless , the use of free cash flow as a liquidity measure has material limitations because it excludes certain expenditures that are required or that we have committed to , such as declared dividend payments and debt service requirements . our calculation of free cash flow and reconciliation to ยnet cash provided by operating activitiesย is shown in the table below ( in millions ) , and may not be the same as similarly titled measures presented by other companies : replace_table_token_9_th 27 our free cash flow was consistent in both years , however our cash provided by operating activities decreased $ 87 million and our capital expenditures decreased $ 75 million . the decrease in cash provided by operating activities was primarily due to net unfavorable changes in working capital , increased interest payments and higher income tax payments . these decreases in operating cash flow were partially offset by a cash benefit of $ 77 million resulting from a litigation settlement that occurred in april 2010. payments made in 2009 related to severance and benefits costs associated with our 2009 restructuring also affected the comparability of our operating cash flow for the periods presented . story_separator_special_tag internally developed estimates are based on : management 's judgment and experience in remediating our own and unrelated parties ' sites ; information available from regulatory agencies as to costs of remediation ; the number , financial resources and relative degree of responsibility of other prps who may be liable for remediation of a specific site ; and the typical allocation of costs among prps unless the actual allocation has been determined . 31 asset impairments our long-lived assets , including landfills and landfill expansions , are carried on our financial statements based on their cost less accumulated depreciation or amortization . we monitor the carrying value of our long-lived assets for potential impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable . these events or changes in circumstances are referred to as impairment indicators . if an impairment indicator occurs , we perform a test of recoverability by comparing the carrying value of the asset or asset group to its undiscounted expected future cash flows . if cash flows can not be separately and independently identified for a single asset , we will determine whether an impairment has occurred for the group of assets for which we can identify the projected cash flows . if the carrying values are in excess of undiscounted expected future cash flows , we measure any impairment by comparing the fair value of the asset or asset group to its carrying value . fair value is generally determined by considering ( i ) internally developed discounted projected cash flow analysis of the asset or asset group ; ( ii ) actual third-party valuations ; and or ( iii ) information available regarding the current market for similar assets . if the fair value of an asset or asset group is determined to be less than the carrying amount of the asset or asset group , an impairment in the amount of the difference is recorded in the period that the impairment indicator occurs and is included in the ย ( income ) expense from divestitures , asset impairments and unusual itemsย line item in our consolidated statement of operations . estimating future cash flows requires significant judgment and projections may vary from the cash flows eventually realized , which could impact our ability to accurately assess whether an asset has been impaired . there are other considerations for impairments of landfills and goodwill , as described below . landfills ย certain impairment indicators require significant judgment and understanding of the waste industry when applied to landfill development or expansion projects . for example , a regulator may initially deny a landfill expansion permit application though the expansion permit is ultimately granted . in addition , management may periodically divert waste from one landfill to another to conserve remaining permitted landfill airspace . therefore , certain events could occur in the ordinary course of business and not necessarily be considered indicators of impairment of our landfill assets due to the unique nature of the waste industry . goodwill ย at least annually , we assess our goodwill for impairment . we assess whether an impairment exists by comparing the fair value of each operating segment to its carrying value , including goodwill . we use a combination of two valuation methods , a market approach and an income approach , to estimate the fair value of our operating segments . fair value computed by these two methods is arrived at using a number of factors , including projected future operating results , economic projections , anticipated future cash flows , comparable marketplace data and the cost of capital . there are inherent uncertainties related to these factors and to our judgment in applying them to this analysis . however , we believe that these two methods provide a reasonable approach to estimating the fair value of our operating segments . the market approach estimates fair value by measuring the aggregate market value of publicly-traded companies with similar characteristics of our business as a multiple of their reported cash flows . we then apply that multiple to our operating segments ' cash flows to estimate their fair values . we believe that this approach is appropriate because it provides a fair value estimate using valuation inputs from entities with operations and economic characteristics comparable to our operating segments . the income approach is based on the long-term projected future cash flows of our operating segments . we discount the estimated cash flows to present value using a weighted-average cost of capital that considers factors such as the timing of the cash flows and the risks inherent in those cash flows . we believe that this approach is appropriate because it provides a fair value estimate based upon our operating segments ' expected long-term performance considering the economic and market conditions that generally affect our business . additional impairment assessments may be performed on an interim basis if we encounter events or changes in circumstances that would indicate that , more likely than not , the carrying value of goodwill has been impaired . see note 6 to the consolidated financial statements for additional information related to goodwill impairment considerations made during the reported periods . 32 deferred income taxes deferred income taxes are based on the difference between the financial reporting and tax basis of assets and liabilities . the deferred income tax provision represents the change during the reporting period in the deferred tax assets and deferred tax liabilities , net of the effect of acquisitions and dispositions . deferred tax assets include tax loss and credit carry-forwards and are reduced by a valuation allowance if , based on available evidence , it is more likely than not that some portion or all of the deferred tax assets will not be realized . significant judgment is required in assessing the timing and amounts of deductible and taxable items . we establish reserves for uncertain tax positions when ,
| net cash used in investing activities ย the most significant items affecting the comparison of our investing cash flows for the periods presented are summarized below : acquisitions ย our spending on acquisitions increased from $ 280 million and $ 281 million during 2008 and 2009 , respectively , to $ 407 million in 2010. during the second quarter of 2010 , we paid approximately $ 150 million to acquire a waste-to-energy facility in portsmouth , virginia . we continue to focus on accretive acquisitions and growth opportunities that will contribute to improved future results of operations and enhance and expand our existing service offerings . capital expenditures ย we used $ 1,104 million during 2010 for capital expenditures , compared with $ 1,179 million in 2009 and $ 1,221 million in 2008. net receipts from restricted funds ย net cash received from our restricted trust and escrow accounts , which are largely generated from the issuance of tax-exempt bonds for our capital needs , contributed $ 48 million to our investing activities in 2010 compared with $ 196 million in 2009 and $ 178 million in 2008. the significant decrease in cash received from our restricted trust and escrow accounts during 2010 is due to a decrease in tax-exempt borrowings .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```net cash used in investing activities ย the most significant items affecting the comparison of our investing cash flows for the periods presented are summarized below : acquisitions ย our spending on acquisitions increased from $ 280 million and $ 281 million during 2008 and 2009 , respectively , to $ 407 million in 2010. during the second quarter of 2010 , we paid approximately $ 150 million to acquire a waste-to-energy facility in portsmouth , virginia . we continue to focus on accretive acquisitions and growth opportunities that will contribute to improved future results of operations and enhance and expand our existing service offerings . capital expenditures ย we used $ 1,104 million during 2010 for capital expenditures , compared with $ 1,179 million in 2009 and $ 1,221 million in 2008. net receipts from restricted funds ย net cash received from our restricted trust and escrow accounts , which are largely generated from the issuance of tax-exempt bonds for our capital needs , contributed $ 48 million to our investing activities in 2010 compared with $ 196 million in 2009 and $ 178 million in 2008. the significant decrease in cash received from our restricted trust and escrow accounts during 2010 is due to a decrease in tax-exempt borrowings .
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Suspicious Activity Report : this increase is primarily due to higher average debt balances , including additional borrowings incurred in late 2009 primarily to support our strategic plans , and higher costs related to the execution and maintenance of our revolving credit facility executed in june 2010 ; and net income attributable to waste management , inc. of $ 953 million , or $ 1.98 per diluted share for 2010 , as compared with $ 994 million , or $ 2.01 per diluted share in 2009. the comparability of our 2010 results with 2009 has been affected by certain items management believes are not representative or indicative of our performance . our 2010 results were affected by the following : the recognition of pre-tax charges aggregating $ 55 million related to remediation and closure costs at five closed sites , which had a negative impact of $ 0.07 on our diluted earnings per share ; the recognition of net tax charges of $ 32 million due to refinements in estimates of our deferred state income taxes and the finalization of our 2009 tax returns , partially offset by favorable tax audit settlements , all of which , combined , had a negative impact of $ 0.07 on our diluted earnings per share ; 26 the recognition of a net favorable pre-tax benefit of $ 46 million for litigation and associated costs , which had a favorable impact of $ 0.06 on our diluted earnings per share ; and the recognition of net pre-tax charges of $ 26 million as a result of the withdrawal of certain of our union bargaining units from an underfunded multiemployer pension plan , which had a negative impact of $ 0.03 on our diluted earnings per share . our 2009 results were affected by the following : the recognition of a tax benefit of $ 130 million due principally to favorable adjustments from the carry-back of a capital loss , the recognition of state net operating losses and tax credits , the finalization of our 2008 tax returns , the impact of tax audit settlements and the revaluation of deferred taxes due to canadian tax rate reductions . these items had a combined favorable impact of $ 0.26 on our diluted earnings per share ; the recognition of impairment charges totaling $ 83 million due primarily to the abandonment of revenue management software and a change in expectations for the future operations of an inactive landfill in california . these items had a negative impact of $ 0.10 on our diluted earnings per share ; and the recognition of pre-tax charges of $ 50 million related to our 2009 restructuring , primarily related to severance and benefit costs . these restructuring charges reduced diluted earnings per share for the year by $ 0.06. we are pleased about the lower rate of decline in internal revenue growth from volumes that we experienced during 2010. on the pricing front , our fourth quarter 2010 results were the strongest of the year . for both the fourth quarter and the full year of 2010 , we outpaced our long-term pricing objective of achieving price increases in the range of 50 to 100 basis points above the consumer price index , or cpi . in 2011 , we will remain committed to our pricing discipline . based on an anticipated cpi run-rate of 1.0 % , we expect our overall revenue growth from yield to be approximately 2.0 % . additionally , we expect our revenue growth from volumes to be flat to slightly positive . however , we are mindful of trends toward waste reduction at the source , diversion from landfills and customers seeking alternative methods of disposal . we will continue to implement measures that we believe will grow our business , improve our current operations performance and enhance and expand our services . free cash flow as is our practice , we are presenting free cash flow , which is a non-gaap measure of liquidity , in our disclosures because we use this measure in the evaluation and management of our business . we define free cash flow as net cash provided by operating activities , less capital expenditures , plus proceeds from divestitures of businesses ( net of cash divested ) and other sales of assets . we believe it is indicative of our ability to pay our quarterly dividends , repurchase common stock , fund acquisitions and other investments and , in the absence of refinancings , to repay our debt obligations . free cash flow is not intended to replace ยnet cash provided by operating activities , ย which is the most comparable u.s. gaap measure . however , we believe free cash flow gives investors useful insight into how we view our liquidity . nonetheless , the use of free cash flow as a liquidity measure has material limitations because it excludes certain expenditures that are required or that we have committed to , such as declared dividend payments and debt service requirements . our calculation of free cash flow and reconciliation to ยnet cash provided by operating activitiesย is shown in the table below ( in millions ) , and may not be the same as similarly titled measures presented by other companies : replace_table_token_9_th 27 our free cash flow was consistent in both years , however our cash provided by operating activities decreased $ 87 million and our capital expenditures decreased $ 75 million . the decrease in cash provided by operating activities was primarily due to net unfavorable changes in working capital , increased interest payments and higher income tax payments . these decreases in operating cash flow were partially offset by a cash benefit of $ 77 million resulting from a litigation settlement that occurred in april 2010. payments made in 2009 related to severance and benefits costs associated with our 2009 restructuring also affected the comparability of our operating cash flow for the periods presented . story_separator_special_tag internally developed estimates are based on : management 's judgment and experience in remediating our own and unrelated parties ' sites ; information available from regulatory agencies as to costs of remediation ; the number , financial resources and relative degree of responsibility of other prps who may be liable for remediation of a specific site ; and the typical allocation of costs among prps unless the actual allocation has been determined . 31 asset impairments our long-lived assets , including landfills and landfill expansions , are carried on our financial statements based on their cost less accumulated depreciation or amortization . we monitor the carrying value of our long-lived assets for potential impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable . these events or changes in circumstances are referred to as impairment indicators . if an impairment indicator occurs , we perform a test of recoverability by comparing the carrying value of the asset or asset group to its undiscounted expected future cash flows . if cash flows can not be separately and independently identified for a single asset , we will determine whether an impairment has occurred for the group of assets for which we can identify the projected cash flows . if the carrying values are in excess of undiscounted expected future cash flows , we measure any impairment by comparing the fair value of the asset or asset group to its carrying value . fair value is generally determined by considering ( i ) internally developed discounted projected cash flow analysis of the asset or asset group ; ( ii ) actual third-party valuations ; and or ( iii ) information available regarding the current market for similar assets . if the fair value of an asset or asset group is determined to be less than the carrying amount of the asset or asset group , an impairment in the amount of the difference is recorded in the period that the impairment indicator occurs and is included in the ย ( income ) expense from divestitures , asset impairments and unusual itemsย line item in our consolidated statement of operations . estimating future cash flows requires significant judgment and projections may vary from the cash flows eventually realized , which could impact our ability to accurately assess whether an asset has been impaired . there are other considerations for impairments of landfills and goodwill , as described below . landfills ย certain impairment indicators require significant judgment and understanding of the waste industry when applied to landfill development or expansion projects . for example , a regulator may initially deny a landfill expansion permit application though the expansion permit is ultimately granted . in addition , management may periodically divert waste from one landfill to another to conserve remaining permitted landfill airspace . therefore , certain events could occur in the ordinary course of business and not necessarily be considered indicators of impairment of our landfill assets due to the unique nature of the waste industry . goodwill ย at least annually , we assess our goodwill for impairment . we assess whether an impairment exists by comparing the fair value of each operating segment to its carrying value , including goodwill . we use a combination of two valuation methods , a market approach and an income approach , to estimate the fair value of our operating segments . fair value computed by these two methods is arrived at using a number of factors , including projected future operating results , economic projections , anticipated future cash flows , comparable marketplace data and the cost of capital . there are inherent uncertainties related to these factors and to our judgment in applying them to this analysis . however , we believe that these two methods provide a reasonable approach to estimating the fair value of our operating segments . the market approach estimates fair value by measuring the aggregate market value of publicly-traded companies with similar characteristics of our business as a multiple of their reported cash flows . we then apply that multiple to our operating segments ' cash flows to estimate their fair values . we believe that this approach is appropriate because it provides a fair value estimate using valuation inputs from entities with operations and economic characteristics comparable to our operating segments . the income approach is based on the long-term projected future cash flows of our operating segments . we discount the estimated cash flows to present value using a weighted-average cost of capital that considers factors such as the timing of the cash flows and the risks inherent in those cash flows . we believe that this approach is appropriate because it provides a fair value estimate based upon our operating segments ' expected long-term performance considering the economic and market conditions that generally affect our business . additional impairment assessments may be performed on an interim basis if we encounter events or changes in circumstances that would indicate that , more likely than not , the carrying value of goodwill has been impaired . see note 6 to the consolidated financial statements for additional information related to goodwill impairment considerations made during the reported periods . 32 deferred income taxes deferred income taxes are based on the difference between the financial reporting and tax basis of assets and liabilities . the deferred income tax provision represents the change during the reporting period in the deferred tax assets and deferred tax liabilities , net of the effect of acquisitions and dispositions . deferred tax assets include tax loss and credit carry-forwards and are reduced by a valuation allowance if , based on available evidence , it is more likely than not that some portion or all of the deferred tax assets will not be realized . significant judgment is required in assessing the timing and amounts of deductible and taxable items . we establish reserves for uncertain tax positions when ,
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2,563 | this collaboration agreement is currently focused on the discovery of new therapeutics for ophthalmic indications and originally provided for a three-year research term , which has been extended by the parties through march 2013. our two other collaboration agreements with allergan involve the development of product candidates in the areas of 39 chronic pain and glaucoma . we are eligible to receive payments upon achievement of development and regulatory milestones , as well as royalties on future product sales , if any , under each of our three collaboration agreements with allergan . each of our agreements with allergan is subject to early termination upon specified events , including , in the case of one of our agreements , if we have a change in control . upon the conclusion of the research term under each agreement , allergan may terminate the agreement by notice . in march 2009 , we entered into a collaboration agreement with meiji seika pharma . under the agreement , we are eligible to receive up to $ 25 million in aggregate payments , consisting of $ 3 million in license fees and up to $ 22 million in payments upon achievement of development and regulatory milestones in the licensed asian territory . in addition , we are eligible to receive royalties on future product sales , if any , in the asian territory . meiji seika pharma also is responsible for the first $ 15 million of designated development expenses and we will share the remaining expenses through clinical proof-of-concept , subject to possible adjustment in the event we further license the program outside of the asian territory . as of december 31 , 2011 , we had received an aggregate of $ 4.3 million in payments from meiji seika pharma , consisting of license fees and reimbursed research and development expenses . our agreement with meiji seika pharma is subject to early termination upon specified events . in may 2009 , we entered into a collaboration agreement with biovail , pursuant to which we received a non-refundable $ 30 million upfront payment . under this collaboration , we also were eligible to receive potential development , regulatory and sales milestones as well as royalties on future net sales of pimavanserin . in october 2010 , we entered an agreement with biovail to regain all rights to pimavanserin and conclude our collaboration . in connection with this agreement , we recorded all remaining revenues related to our collaboration biovail , which totaled $ 34.7 million during the fourth quarter of 2010. we recognized aggregate revenues relating to the biovail collaboration of $ 39.5 million during the year ended december 31 , 2010. we have no future obligations to biovail . research and development expenses our research and development expenses have consisted primarily of fees paid to external service providers , salaries and related personnel expenses , facilities and equipment expenses , and other costs . we charge all research and development expenses to operations as incurred . our research and development activities are primarily focused on our most advanced product candidates , including pimavanserin . we currently are responsible for all costs incurred in the development of pimavanserin as well as for the costs associated with our other internal programs . pursuant to our collaboration , meiji seika pharma is responsible for the first $ 15 million of designated development expenses for the product candidate , am-831 , and we and meiji seika pharma will share remaining expenses through clinical proof-of-concept , subject to possible adjustment . as of december 31 , 2011 , approximately $ 2.8 million of the designated development expenses had been incurred . we expect to coordinate a significant portion of the planned external development services and , accordingly , we may incur the related development costs for these external services and receive reimbursement of meiji seika pharma 's portion of these costs pursuant to the agreement . meiji seika pharma is responsible for all costs associated with the development of am-831 in the asian territory . we are not responsible for , nor have we incurred , development expenses in our clinical programs for chronic pain and glaucoma , which we are pursuing in collaboration with allergan . 40 we use external service providers to manufacture our product candidates to be used in clinical trials and for the majority of the services performed in connection with the preclinical and clinical development of our product candidates . we have used our internal research and development resources , including our employees and discovery infrastructure , across several projects and many of our costs have not been attributable to a specific project but were directed to broadly applicable research activities . accordingly , we have not reported our internal research and development costs on a project basis . to the extent that external expenses are not attributable to a specific project , they are included in other external costs . the following table summarizes our research and development expenses for the years ended december 31 , 2011 , 2010 , and 2009 ( in thousands ) : replace_table_token_4_th at this time , due to the risks inherent in the clinical trial process and given the stage of development of our programs , we are unable to estimate with any certainty the costs we will incur for the continued development of our product candidates for potential commercialization . due to these same factors , we are unable to determine the anticipated completion dates for our current research and development programs . clinical development timelines , probability of success , and development costs vary widely . story_separator_special_tag the decrease in internal research and development costs was primarily attributable to $ 4.3 million in decreased salaries and related personnel costs , and decreases in laboratory supply , equipment , facility and other costs resulting from a restructuring and related workforce reductions implemented in october 2009. salaries and related personnel costs for the year ended december 31 , 2009 included a charge of $ 905,000 in connection with these workforce reductions . general and administrative expenses general and administrative expenses decreased to $ 6.5 million in 2010 , including $ 984,000 in stock-based compensation , from $ 10.3 million in 2009 , including $ 1.3 million in stock-based compensation . the decrease in general and administrative expenses was primarily due to $ 2.3 million in decreased salaries , related personnel costs and other costs resulting from our october 2009 restructuring and $ 1.6 million in decreased external service costs . story_separator_special_tag operating assets and liabilities , including changes in deferred revenue , accounts payable and accrued expenses , and a non-cash charge resulting from termination of our swedish facility lease during 2011. deferred revenue decreased by $ 57,000 in 2011 compared to a decrease of $ 25.3 million in 2010. the decrease in deferred revenue in 2010 was primarily attributable to the conclusion of our collaboration with biovail in october 2010 and the recognition of all remaining revenue under this collaboration . accounts payable and accrued expenses increased by an aggregate of $ 248,000 in 2011 compared to an aggregate decrease of $ 3.1 million in 2010. our accounts payable and accrued expenses fluctuated significantly during these years primarily due to the timing of payments made and expenses incurred for external service costs related to our clinical trials . 45 the decrease in net cash used in operating activities in 2010 relative to 2009 was primarily due to net income of $ 15.1 million in 2010 compared to a net loss of $ 45.1 million in 2009 , as well as changes in operating assets and liabilities , including changes in deferred revenue , and accounts payable and accrued expenses . deferred revenue decreased by $ 25.3 million in 2010 compared to an increase in deferred revenue of $ 28.2 million in 2009. the decrease in deferred revenue in 2010 was primarily attributable to the recognition of $ 25.9 million in deferred revenue in connection with the conclusion of our collaboration with biovail in october 2010. the increase in deferred revenue in 2009 was primarily attributable to the $ 30 million non-refundable upfront payment received pursuant to our collaboration with biovail as well as initial licensing fees received from our collaboration with meiji seika pharma , offset by initial revenues recognized pursuant to these agreements . accounts payable and accrued expenses decreased by an aggregate of $ 3.1 million in 2010 compared to an aggregate decrease in accounts payable and accrued expenses of $ 1.6 million in 2009. the decrease in accounts payable and accrued expenses in 2010 was primarily due to payments made for external service costs related to our clinical trials , the timing and amount of which may fluctuate significantly from period to period . net cash provided by investing activities totaled $ 6.0 million in 2011 compared to net cash used in investing activities of $ 1.1 million in 2010 and net cash provided by investing activities of $ 9.4 million in 2009. net cash provided by or used in investing activities has fluctuated significantly from period to period primarily due to the timing of purchases and maturities of investment securities . the increase in net cash provided by investing activities in 2011 relative to the net cash used in investing activities in 2010 was primarily due to the maturities of investment securities exceeding purchases of investment securities . the increase in net cash used in investing activities in 2010 relative to net cash provided by investing activities in 2009 was primarily due to increased purchases of investment securities , net of maturities of investment securities . net cash provided by financing activities increased to $ 13.9 million in 2011 compared to $ 470,000 in 2010 and $ 1.2 million in 2009. the increase in net cash provided by financing activities during 2011 was primarily due to $ 13.9 million in net proceeds received from our january 2011 private equity financing . the decrease in net cash provided by financing activities in 2010 relative to 2009 was primarily attributable to reduced proceeds from the issuance of stock offset by decreased repayments of long-term debt . the following table summarizes our contractual obligations , including interest , at december 31 , 2011 ( in thousands ) : replace_table_token_5_th in april 2011 , we entered into a termination agreement related to the lease for our swedish research facility and ceased operations at this site . the lease was entered into in june 2005 and had a 10-year term . pursuant to this agreement , we made a one-time payment of $ 690,000 and issued 782,339 shares of our common stock to the landlord in settlement of all lease-related obligations . general and administrative expenses for the year ended december 31 , 2011 included a net charge of $ 1.1 million , which amount consisted of $ 1.7 million in lease termination charges offset by a $ 539,000 reduction in the cumulative translation adjustment balance related to the liquidation of substantially all assets of our swedish subsidiary . we have also entered into agreements with contract research organizations and other external service providers for services in connection with the development of our product candidates . we were contractually obligated for up to approximately $ 6.3 million of future services under these agreements as of december 31 , 2011. the nature of the work being conducted under our agreements with contract research organizations is such that , in most cases , the services may be stopped on short notice . in such event , we would not be liable
| liquidity and capital resources since inception , we have funded our operations primarily through sales of our equity securities , payments received under our collaboration agreements , debt financings , and interest income . as of december 31 , 2011 , we had received $ 341.6 million in net proceeds from sales of our equity securities , including $ 6.9 million in debt we had retired through the issuance of our common stock , $ 112.5 million in payments from collaboration agreements , $ 22.4 million in debt financing , and $ 22.2 million in interest income . at december 31 , 2011 , we had $ 31.0 million in cash , cash equivalents and investment securities compared to $ 37.1 million at december 31 , 2010. we expect that our current cash , cash equivalents and investment securities , together with anticipated payments from our existing collaborations , will be sufficient to fund our operations at least into the second quarter of 2013. we will require significant additional financing in the future to fund our operations . our future capital requirements will depend on , and could increase significantly as a result of , many factors , including : progress in , and the costs of , our clinical trials , preclinical studies and other research and development programs ; the scope , prioritization and number of research and development programs ; 44 the ability of our collaborators and us to reach the milestones , or other events or developments , under our collaboration agreements ; the extent to which we are obligated to reimburse our collaborators or our collaborators
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources since inception , we have funded our operations primarily through sales of our equity securities , payments received under our collaboration agreements , debt financings , and interest income . as of december 31 , 2011 , we had received $ 341.6 million in net proceeds from sales of our equity securities , including $ 6.9 million in debt we had retired through the issuance of our common stock , $ 112.5 million in payments from collaboration agreements , $ 22.4 million in debt financing , and $ 22.2 million in interest income . at december 31 , 2011 , we had $ 31.0 million in cash , cash equivalents and investment securities compared to $ 37.1 million at december 31 , 2010. we expect that our current cash , cash equivalents and investment securities , together with anticipated payments from our existing collaborations , will be sufficient to fund our operations at least into the second quarter of 2013. we will require significant additional financing in the future to fund our operations . our future capital requirements will depend on , and could increase significantly as a result of , many factors , including : progress in , and the costs of , our clinical trials , preclinical studies and other research and development programs ; the scope , prioritization and number of research and development programs ; 44 the ability of our collaborators and us to reach the milestones , or other events or developments , under our collaboration agreements ; the extent to which we are obligated to reimburse our collaborators or our collaborators
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Suspicious Activity Report : this collaboration agreement is currently focused on the discovery of new therapeutics for ophthalmic indications and originally provided for a three-year research term , which has been extended by the parties through march 2013. our two other collaboration agreements with allergan involve the development of product candidates in the areas of 39 chronic pain and glaucoma . we are eligible to receive payments upon achievement of development and regulatory milestones , as well as royalties on future product sales , if any , under each of our three collaboration agreements with allergan . each of our agreements with allergan is subject to early termination upon specified events , including , in the case of one of our agreements , if we have a change in control . upon the conclusion of the research term under each agreement , allergan may terminate the agreement by notice . in march 2009 , we entered into a collaboration agreement with meiji seika pharma . under the agreement , we are eligible to receive up to $ 25 million in aggregate payments , consisting of $ 3 million in license fees and up to $ 22 million in payments upon achievement of development and regulatory milestones in the licensed asian territory . in addition , we are eligible to receive royalties on future product sales , if any , in the asian territory . meiji seika pharma also is responsible for the first $ 15 million of designated development expenses and we will share the remaining expenses through clinical proof-of-concept , subject to possible adjustment in the event we further license the program outside of the asian territory . as of december 31 , 2011 , we had received an aggregate of $ 4.3 million in payments from meiji seika pharma , consisting of license fees and reimbursed research and development expenses . our agreement with meiji seika pharma is subject to early termination upon specified events . in may 2009 , we entered into a collaboration agreement with biovail , pursuant to which we received a non-refundable $ 30 million upfront payment . under this collaboration , we also were eligible to receive potential development , regulatory and sales milestones as well as royalties on future net sales of pimavanserin . in october 2010 , we entered an agreement with biovail to regain all rights to pimavanserin and conclude our collaboration . in connection with this agreement , we recorded all remaining revenues related to our collaboration biovail , which totaled $ 34.7 million during the fourth quarter of 2010. we recognized aggregate revenues relating to the biovail collaboration of $ 39.5 million during the year ended december 31 , 2010. we have no future obligations to biovail . research and development expenses our research and development expenses have consisted primarily of fees paid to external service providers , salaries and related personnel expenses , facilities and equipment expenses , and other costs . we charge all research and development expenses to operations as incurred . our research and development activities are primarily focused on our most advanced product candidates , including pimavanserin . we currently are responsible for all costs incurred in the development of pimavanserin as well as for the costs associated with our other internal programs . pursuant to our collaboration , meiji seika pharma is responsible for the first $ 15 million of designated development expenses for the product candidate , am-831 , and we and meiji seika pharma will share remaining expenses through clinical proof-of-concept , subject to possible adjustment . as of december 31 , 2011 , approximately $ 2.8 million of the designated development expenses had been incurred . we expect to coordinate a significant portion of the planned external development services and , accordingly , we may incur the related development costs for these external services and receive reimbursement of meiji seika pharma 's portion of these costs pursuant to the agreement . meiji seika pharma is responsible for all costs associated with the development of am-831 in the asian territory . we are not responsible for , nor have we incurred , development expenses in our clinical programs for chronic pain and glaucoma , which we are pursuing in collaboration with allergan . 40 we use external service providers to manufacture our product candidates to be used in clinical trials and for the majority of the services performed in connection with the preclinical and clinical development of our product candidates . we have used our internal research and development resources , including our employees and discovery infrastructure , across several projects and many of our costs have not been attributable to a specific project but were directed to broadly applicable research activities . accordingly , we have not reported our internal research and development costs on a project basis . to the extent that external expenses are not attributable to a specific project , they are included in other external costs . the following table summarizes our research and development expenses for the years ended december 31 , 2011 , 2010 , and 2009 ( in thousands ) : replace_table_token_4_th at this time , due to the risks inherent in the clinical trial process and given the stage of development of our programs , we are unable to estimate with any certainty the costs we will incur for the continued development of our product candidates for potential commercialization . due to these same factors , we are unable to determine the anticipated completion dates for our current research and development programs . clinical development timelines , probability of success , and development costs vary widely . story_separator_special_tag the decrease in internal research and development costs was primarily attributable to $ 4.3 million in decreased salaries and related personnel costs , and decreases in laboratory supply , equipment , facility and other costs resulting from a restructuring and related workforce reductions implemented in october 2009. salaries and related personnel costs for the year ended december 31 , 2009 included a charge of $ 905,000 in connection with these workforce reductions . general and administrative expenses general and administrative expenses decreased to $ 6.5 million in 2010 , including $ 984,000 in stock-based compensation , from $ 10.3 million in 2009 , including $ 1.3 million in stock-based compensation . the decrease in general and administrative expenses was primarily due to $ 2.3 million in decreased salaries , related personnel costs and other costs resulting from our october 2009 restructuring and $ 1.6 million in decreased external service costs . story_separator_special_tag operating assets and liabilities , including changes in deferred revenue , accounts payable and accrued expenses , and a non-cash charge resulting from termination of our swedish facility lease during 2011. deferred revenue decreased by $ 57,000 in 2011 compared to a decrease of $ 25.3 million in 2010. the decrease in deferred revenue in 2010 was primarily attributable to the conclusion of our collaboration with biovail in october 2010 and the recognition of all remaining revenue under this collaboration . accounts payable and accrued expenses increased by an aggregate of $ 248,000 in 2011 compared to an aggregate decrease of $ 3.1 million in 2010. our accounts payable and accrued expenses fluctuated significantly during these years primarily due to the timing of payments made and expenses incurred for external service costs related to our clinical trials . 45 the decrease in net cash used in operating activities in 2010 relative to 2009 was primarily due to net income of $ 15.1 million in 2010 compared to a net loss of $ 45.1 million in 2009 , as well as changes in operating assets and liabilities , including changes in deferred revenue , and accounts payable and accrued expenses . deferred revenue decreased by $ 25.3 million in 2010 compared to an increase in deferred revenue of $ 28.2 million in 2009. the decrease in deferred revenue in 2010 was primarily attributable to the recognition of $ 25.9 million in deferred revenue in connection with the conclusion of our collaboration with biovail in october 2010. the increase in deferred revenue in 2009 was primarily attributable to the $ 30 million non-refundable upfront payment received pursuant to our collaboration with biovail as well as initial licensing fees received from our collaboration with meiji seika pharma , offset by initial revenues recognized pursuant to these agreements . accounts payable and accrued expenses decreased by an aggregate of $ 3.1 million in 2010 compared to an aggregate decrease in accounts payable and accrued expenses of $ 1.6 million in 2009. the decrease in accounts payable and accrued expenses in 2010 was primarily due to payments made for external service costs related to our clinical trials , the timing and amount of which may fluctuate significantly from period to period . net cash provided by investing activities totaled $ 6.0 million in 2011 compared to net cash used in investing activities of $ 1.1 million in 2010 and net cash provided by investing activities of $ 9.4 million in 2009. net cash provided by or used in investing activities has fluctuated significantly from period to period primarily due to the timing of purchases and maturities of investment securities . the increase in net cash provided by investing activities in 2011 relative to the net cash used in investing activities in 2010 was primarily due to the maturities of investment securities exceeding purchases of investment securities . the increase in net cash used in investing activities in 2010 relative to net cash provided by investing activities in 2009 was primarily due to increased purchases of investment securities , net of maturities of investment securities . net cash provided by financing activities increased to $ 13.9 million in 2011 compared to $ 470,000 in 2010 and $ 1.2 million in 2009. the increase in net cash provided by financing activities during 2011 was primarily due to $ 13.9 million in net proceeds received from our january 2011 private equity financing . the decrease in net cash provided by financing activities in 2010 relative to 2009 was primarily attributable to reduced proceeds from the issuance of stock offset by decreased repayments of long-term debt . the following table summarizes our contractual obligations , including interest , at december 31 , 2011 ( in thousands ) : replace_table_token_5_th in april 2011 , we entered into a termination agreement related to the lease for our swedish research facility and ceased operations at this site . the lease was entered into in june 2005 and had a 10-year term . pursuant to this agreement , we made a one-time payment of $ 690,000 and issued 782,339 shares of our common stock to the landlord in settlement of all lease-related obligations . general and administrative expenses for the year ended december 31 , 2011 included a net charge of $ 1.1 million , which amount consisted of $ 1.7 million in lease termination charges offset by a $ 539,000 reduction in the cumulative translation adjustment balance related to the liquidation of substantially all assets of our swedish subsidiary . we have also entered into agreements with contract research organizations and other external service providers for services in connection with the development of our product candidates . we were contractually obligated for up to approximately $ 6.3 million of future services under these agreements as of december 31 , 2011. the nature of the work being conducted under our agreements with contract research organizations is such that , in most cases , the services may be stopped on short notice . in such event , we would not be liable
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2,564 | given the substantial improvement in the outlook for the labor market since the inception of the fomc 's current asset purchase program , and the sufficient underlying strength it sees in the broader economy , the fomc decided to conclude its asset purchase program . the fomc will continue its existing policy of reinvesting principal payments from its holdings of agency debt and agency mbs in agency mbs , and rolling over maturing treasury securities at auction . the fomc reaffirmed its view that the current 0 % to 0.25 % target range for the federal funds rate remains appropriate and that it will likely be so for a considerable time following the end of the asset purchase program , especially if projected inflation continues to run below the fomc 's 2 % longer-run goal . if incoming information indicates faster progress toward the fomc 's employment and inflation objectives , then increases in the federal funds target range are likely to occur sooner than currently anticipated . 40 conversely , if progress is restricted more than expected , then increases in the federal funds target range are likely to occur later than currently anticipated . even after employment and inflation are near mandate-consistent levels , economic conditions may , for some time , warrant keeping the target federal funds rate below levels the fomc views as normal in the long run . when the fomc decides to begin to remove policy accommodation , they stated they will take a balanced approach consistent with their longer-run goals of maximum employment and inflation of 2 % . economic conditions in the bank 's local market areas have a significant impact on the ability of borrowers to repay loans and the value of the collateral securing these loans . the industries in our market areas are very diversified , specifically in the kansas city metropolitan statistical area which comprises the largest segment of our loan portfolio and deposit base . as of october 2014 , the unemployment rate was 4.4 % for kansas and 5.9 % for missouri , compared to the national average of 5.8 % based on information from the bureau of economic analysis . the kansas city market area has an average household income of approximately $ 74 thousand per annum , based on 2014 estimates from the american community survey , which is a statistical survey by the u.s. census bureau . the average household income in our combined market areas is approximately $ 69 thousand per annum , with 90 % of the population at or above the poverty level , also based on the 2014 estimates from the american community survey . the fhfa price index for kansas and missouri has not experienced significant fluctuations during the past 10 years , unlike other market areas of the united states , which indicates relative stability in property values in our local market areas . the structure of the bank 's retail branches is currently undergoing a transformation as more customers utilize electronic and other remote channels to conduct business . the physical footprint of the branch is being reduced . the last branch opened by the bank occupies approximately 2,100 square feet and we anticipate that future retail branches will be even smaller , operating with three to five retail staff members . the interior layout of the branch also will transform , with future or remodeled branches designed without a teller counter and designed for more consultative interactions with less emphasis on transaction processing . to support this operating concept , the bank has fully implemented a new branch staffing model that eliminates our traditional teller role , blending transaction processing and account servicing functions under customer service associates and customer service representatives . the expanded skill set of branch staff provides branch managers greater flexibility to manage customer flows within the branches . also , the branch management ranks have been pared , with 32 of our 47 branches now operating under a manager responsible for either two or three offices . currently , any future branch management reductions are expected to result from retirements and attrition . management continues to monitor the role and functions of the branch staff and will adjust the branch management and overall branch staffing structure as necessary to achieve the bank 's targets for deposit and loan production . since 2010 , the bank has reduced retail branch staff by 24 full-time equivalent positions while adding four new branch locations . additionally , lending staff have been deployed from regionally centralized locations to the branch network . by utilizing paperless electronic document technology , the bank can better utilize staff resources regardless of their physical location . this promotes a more efficient loan process which benefits the customer and the loan operation . having loan staff located in the branch network also provides them with more frequent opportunities to interact with customers and cross-sell additional products and services . during the fourth quarter of fiscal year 2014 , the bank implemented the daily leverage strategy to increase earnings . the daily leverage strategy currently involves borrowing up to $ 2.10 billion on the bank 's fhlb line of credit in two leverage tiers . the first tier of $ 800.0 million is intended to remain borrowed on the fhlb line of credit for an extended period of time . the second tier of $ 1.30 billion is borrowed at the beginning of each quarter and paid off prior to each quarter end . the proceeds of the borrowings , net of the required fhlb stock holdings , are deposited at the federal reserve bank of kansas city . the daily leverage strategy was fully implemented beginning on august 1 , 2014 and increased fiscal year 2014 net income by $ 501 thousand . the daily leverage strategy has had minimal impact on the bank 's interest rate risk and liquidity . story_separator_special_tag the end result of these activities has been a capital ratio in excess of the well-capitalized standards set by the occ . we believe that maintaining a strong capital position safeguards the long-term interests of the bank , the company , and our stockholders . stockholder value . we strive to enhance stockholder value while maintaining a strong capital position . one way that we continue to provide returns to stockholders is through our dividend payments . total dividends declared and paid during fiscal year 2014 were $ 138.2 million . the company 's cash dividend payout policy is reviewed quarterly by management and the board of directors , and the ability to pay dividends under the policy depends upon a number of factors , including the company 's financial condition and results of operations , regulatory capital requirements , regulatory limitations on the bank 's ability to make capital distributions to the company , and the amount of cash at the holding company level . it is the intent of the board of directors to continue to pay regular quarterly and special cash dividends each year , and for fiscal year 2015 , it is the intent of the board of directors and management to continue with the payout of 100 % of the company 's earnings to its stockholders . another way we have provided returns to stockholders is through our share repurchase programs . during fiscal year 2014 , the company repurchased 6,947,065 shares of common stock at an average price of $ 11.98 per share , or $ 83.2 million . interest rate risk management . changes in interest rates are our primary market risk as our balance sheet is almost entirely comprised of interest-earning assets and interest-bearing liabilities . as such , fluctuations in interest rates have a significant impact not only upon our net income but also upon the cash flows related to those assets and liabilities and the market value of our assets and liabilities . in order to maintain what we believe to be acceptable levels of net interest income in varying interest rate environments , we actively manage our interest rate risk and assume a moderate amount of interest rate risk consistent with board policies . 45 financial condition assets . total assets were $ 9.87 billion at september 30 , 2014 compared to $ 9.19 billion at september 30 , 2013. the $ 678.6 million increase was due primarily to a $ 697.0 million increase in cash and cash equivalents , a $ 274.3 million increase in loans receivable , and an $ 84.5 million increase in fhlb stock , partially offset by a $ 394.5 million decrease in the securities portfolio . loans receivable . the loans receivable portfolio , net , increased $ 274.3 million , or 4.6 % , to $ 6.23 billion at september 30 , 2014 , from $ 5.96 billion at september 30 , 2013. the increase in the portfolio was due primarily to correspondent one- to four-family loan purchases outpacing principal repayments between periods . the growth in the loan portfolio was primarily funded with cash flows from the securities portfolio . the following table presents information related to the composition of our loan portfolio ( before deductions for undisbursed loan funds , unearned loan fees and deferred costs , and acl ) as of the dates indicated . the weighted average rate of the loan portfolio decreased six basis points from 3.82 % at september 30 , 2013 to 3.76 % at september 30 , 2014. the decrease in the rate was due primarily to adjustable-rate loans repricing to lower rates and repayments of loans with rates greater than the weighted average rate of the existing portfolio . within the one- to four-family loan portfolio at september 30 , 2014 , 67 % of the loans had a balance at origination of less than $ 417 thousand . replace_table_token_19_th 46 the following table presents , for our portfolio of one- to four-family loans , the balance , percentage of total , weighted average credit score , weighted average ltv ratio , and the average balance per loan at the dates presented . credit scores are updated at least semiannually , with the last update in september 2014 , from a nationally recognized consumer rating agency . the ltv ratios were based on the current loan balance and either the lesser of the purchase price or original appraisal , or the most recent bank appraisal , if available . in most cases , the most recent appraisal was obtained at the time of origination . replace_table_token_20_th included in the loan portfolio at september 30 , 2014 were $ 96.2 million , or 1.5 % of the total loan portfolio , of arm loans that were originated as interest-only . of these interest-only loans , $ 81.1 million were purchased in bulk loan packages from nationwide lenders , primarily during fiscal year 2005. interest-only arm loans do not typically require principal payments during their initial term , and have initial interest-only terms of either 5 or 10 years . the $ 81.1 million of bulk purchased interest-only arm loans had a weighted average credit score of 724 and a weighted average ltv ratio of 70 % at september 30 , 2014. at september 30 , 2014 , $ 52.8 million , or 55 % , of the interest-only loans were still in their interest-only payment term and $ 4.2 million , or 17 % of non-performing loans , were interest-only arms . 47 the following tables summarize activity in the loan portfolio , along with weighted average rates where applicable , for the periods indicated , excluding changes in undisbursed loan funds , acl , discounts/unearned loan fees , and premiums/deferred costs . loans that were paid-off as a result of refinances are included in repayments . purchased loans include purchases from correspondent and nationwide lenders . there were no loan purchases from nationwide
| liquidity and capital resources liquidity refers to our ability to generate sufficient cash to fund ongoing operations , to repay maturing certificates of deposit and other deposit withdrawals , to repay maturing borrowings , and to fund loan commitments . liquidity management is both a daily and long-term function of our business management . the company 's most available liquid assets are represented by cash and cash equivalents , afs securities , and short-term investment securities . the bank 's primary sources of funds are deposits , fhlb borrowings , repurchase agreements , repayments and maturities of outstanding loans and mbs and other short-term investments , and funds provided by operations . the bank 's term borrowings primarily have been used to invest in debentures and mbs in an effort to manage the bank 's interest rate risk with the intent to improve the earnings of the bank while maintaining capital ratios in excess of regulatory standards for well-capitalized financial institutions . in addition , the bank 's focus on managing risk has provided additional liquidity capacity by maintaining a balance of mbs and investment securities available as collateral for borrowings . we generally intend to maintain cash reserves sufficient to meet short-term liquidity needs , which are routinely forecasted for 10 , 30 , and 365 days . additionally , on a monthly basis , we perform a liquidity stress test in accordance with the interagency policy statement on funding and liquidity risk management . the liquidity stress test incorporates both short-term and long-term liquidity scenarios in order to identify and to quantify liquidity risk . management also continuously monitors key liquidity statistics related to items such as wholesale funding gaps , borrowings capacity , and available unpledged collateral , along with various liquidity ratios in an effort to further mitigate liquidity risk . in the event short-term liquidity needs exceed available cash , the bank has access to a line of credit at the fhlb and the federal reserve bank discount window . additionally , all or a portion of the borrowings against the fhlb line of credit in conjunction with the daily leverage strategy could be repaid at any point in time , if necessary .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources liquidity refers to our ability to generate sufficient cash to fund ongoing operations , to repay maturing certificates of deposit and other deposit withdrawals , to repay maturing borrowings , and to fund loan commitments . liquidity management is both a daily and long-term function of our business management . the company 's most available liquid assets are represented by cash and cash equivalents , afs securities , and short-term investment securities . the bank 's primary sources of funds are deposits , fhlb borrowings , repurchase agreements , repayments and maturities of outstanding loans and mbs and other short-term investments , and funds provided by operations . the bank 's term borrowings primarily have been used to invest in debentures and mbs in an effort to manage the bank 's interest rate risk with the intent to improve the earnings of the bank while maintaining capital ratios in excess of regulatory standards for well-capitalized financial institutions . in addition , the bank 's focus on managing risk has provided additional liquidity capacity by maintaining a balance of mbs and investment securities available as collateral for borrowings . we generally intend to maintain cash reserves sufficient to meet short-term liquidity needs , which are routinely forecasted for 10 , 30 , and 365 days . additionally , on a monthly basis , we perform a liquidity stress test in accordance with the interagency policy statement on funding and liquidity risk management . the liquidity stress test incorporates both short-term and long-term liquidity scenarios in order to identify and to quantify liquidity risk . management also continuously monitors key liquidity statistics related to items such as wholesale funding gaps , borrowings capacity , and available unpledged collateral , along with various liquidity ratios in an effort to further mitigate liquidity risk . in the event short-term liquidity needs exceed available cash , the bank has access to a line of credit at the fhlb and the federal reserve bank discount window . additionally , all or a portion of the borrowings against the fhlb line of credit in conjunction with the daily leverage strategy could be repaid at any point in time , if necessary .
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Suspicious Activity Report : given the substantial improvement in the outlook for the labor market since the inception of the fomc 's current asset purchase program , and the sufficient underlying strength it sees in the broader economy , the fomc decided to conclude its asset purchase program . the fomc will continue its existing policy of reinvesting principal payments from its holdings of agency debt and agency mbs in agency mbs , and rolling over maturing treasury securities at auction . the fomc reaffirmed its view that the current 0 % to 0.25 % target range for the federal funds rate remains appropriate and that it will likely be so for a considerable time following the end of the asset purchase program , especially if projected inflation continues to run below the fomc 's 2 % longer-run goal . if incoming information indicates faster progress toward the fomc 's employment and inflation objectives , then increases in the federal funds target range are likely to occur sooner than currently anticipated . 40 conversely , if progress is restricted more than expected , then increases in the federal funds target range are likely to occur later than currently anticipated . even after employment and inflation are near mandate-consistent levels , economic conditions may , for some time , warrant keeping the target federal funds rate below levels the fomc views as normal in the long run . when the fomc decides to begin to remove policy accommodation , they stated they will take a balanced approach consistent with their longer-run goals of maximum employment and inflation of 2 % . economic conditions in the bank 's local market areas have a significant impact on the ability of borrowers to repay loans and the value of the collateral securing these loans . the industries in our market areas are very diversified , specifically in the kansas city metropolitan statistical area which comprises the largest segment of our loan portfolio and deposit base . as of october 2014 , the unemployment rate was 4.4 % for kansas and 5.9 % for missouri , compared to the national average of 5.8 % based on information from the bureau of economic analysis . the kansas city market area has an average household income of approximately $ 74 thousand per annum , based on 2014 estimates from the american community survey , which is a statistical survey by the u.s. census bureau . the average household income in our combined market areas is approximately $ 69 thousand per annum , with 90 % of the population at or above the poverty level , also based on the 2014 estimates from the american community survey . the fhfa price index for kansas and missouri has not experienced significant fluctuations during the past 10 years , unlike other market areas of the united states , which indicates relative stability in property values in our local market areas . the structure of the bank 's retail branches is currently undergoing a transformation as more customers utilize electronic and other remote channels to conduct business . the physical footprint of the branch is being reduced . the last branch opened by the bank occupies approximately 2,100 square feet and we anticipate that future retail branches will be even smaller , operating with three to five retail staff members . the interior layout of the branch also will transform , with future or remodeled branches designed without a teller counter and designed for more consultative interactions with less emphasis on transaction processing . to support this operating concept , the bank has fully implemented a new branch staffing model that eliminates our traditional teller role , blending transaction processing and account servicing functions under customer service associates and customer service representatives . the expanded skill set of branch staff provides branch managers greater flexibility to manage customer flows within the branches . also , the branch management ranks have been pared , with 32 of our 47 branches now operating under a manager responsible for either two or three offices . currently , any future branch management reductions are expected to result from retirements and attrition . management continues to monitor the role and functions of the branch staff and will adjust the branch management and overall branch staffing structure as necessary to achieve the bank 's targets for deposit and loan production . since 2010 , the bank has reduced retail branch staff by 24 full-time equivalent positions while adding four new branch locations . additionally , lending staff have been deployed from regionally centralized locations to the branch network . by utilizing paperless electronic document technology , the bank can better utilize staff resources regardless of their physical location . this promotes a more efficient loan process which benefits the customer and the loan operation . having loan staff located in the branch network also provides them with more frequent opportunities to interact with customers and cross-sell additional products and services . during the fourth quarter of fiscal year 2014 , the bank implemented the daily leverage strategy to increase earnings . the daily leverage strategy currently involves borrowing up to $ 2.10 billion on the bank 's fhlb line of credit in two leverage tiers . the first tier of $ 800.0 million is intended to remain borrowed on the fhlb line of credit for an extended period of time . the second tier of $ 1.30 billion is borrowed at the beginning of each quarter and paid off prior to each quarter end . the proceeds of the borrowings , net of the required fhlb stock holdings , are deposited at the federal reserve bank of kansas city . the daily leverage strategy was fully implemented beginning on august 1 , 2014 and increased fiscal year 2014 net income by $ 501 thousand . the daily leverage strategy has had minimal impact on the bank 's interest rate risk and liquidity . story_separator_special_tag the end result of these activities has been a capital ratio in excess of the well-capitalized standards set by the occ . we believe that maintaining a strong capital position safeguards the long-term interests of the bank , the company , and our stockholders . stockholder value . we strive to enhance stockholder value while maintaining a strong capital position . one way that we continue to provide returns to stockholders is through our dividend payments . total dividends declared and paid during fiscal year 2014 were $ 138.2 million . the company 's cash dividend payout policy is reviewed quarterly by management and the board of directors , and the ability to pay dividends under the policy depends upon a number of factors , including the company 's financial condition and results of operations , regulatory capital requirements , regulatory limitations on the bank 's ability to make capital distributions to the company , and the amount of cash at the holding company level . it is the intent of the board of directors to continue to pay regular quarterly and special cash dividends each year , and for fiscal year 2015 , it is the intent of the board of directors and management to continue with the payout of 100 % of the company 's earnings to its stockholders . another way we have provided returns to stockholders is through our share repurchase programs . during fiscal year 2014 , the company repurchased 6,947,065 shares of common stock at an average price of $ 11.98 per share , or $ 83.2 million . interest rate risk management . changes in interest rates are our primary market risk as our balance sheet is almost entirely comprised of interest-earning assets and interest-bearing liabilities . as such , fluctuations in interest rates have a significant impact not only upon our net income but also upon the cash flows related to those assets and liabilities and the market value of our assets and liabilities . in order to maintain what we believe to be acceptable levels of net interest income in varying interest rate environments , we actively manage our interest rate risk and assume a moderate amount of interest rate risk consistent with board policies . 45 financial condition assets . total assets were $ 9.87 billion at september 30 , 2014 compared to $ 9.19 billion at september 30 , 2013. the $ 678.6 million increase was due primarily to a $ 697.0 million increase in cash and cash equivalents , a $ 274.3 million increase in loans receivable , and an $ 84.5 million increase in fhlb stock , partially offset by a $ 394.5 million decrease in the securities portfolio . loans receivable . the loans receivable portfolio , net , increased $ 274.3 million , or 4.6 % , to $ 6.23 billion at september 30 , 2014 , from $ 5.96 billion at september 30 , 2013. the increase in the portfolio was due primarily to correspondent one- to four-family loan purchases outpacing principal repayments between periods . the growth in the loan portfolio was primarily funded with cash flows from the securities portfolio . the following table presents information related to the composition of our loan portfolio ( before deductions for undisbursed loan funds , unearned loan fees and deferred costs , and acl ) as of the dates indicated . the weighted average rate of the loan portfolio decreased six basis points from 3.82 % at september 30 , 2013 to 3.76 % at september 30 , 2014. the decrease in the rate was due primarily to adjustable-rate loans repricing to lower rates and repayments of loans with rates greater than the weighted average rate of the existing portfolio . within the one- to four-family loan portfolio at september 30 , 2014 , 67 % of the loans had a balance at origination of less than $ 417 thousand . replace_table_token_19_th 46 the following table presents , for our portfolio of one- to four-family loans , the balance , percentage of total , weighted average credit score , weighted average ltv ratio , and the average balance per loan at the dates presented . credit scores are updated at least semiannually , with the last update in september 2014 , from a nationally recognized consumer rating agency . the ltv ratios were based on the current loan balance and either the lesser of the purchase price or original appraisal , or the most recent bank appraisal , if available . in most cases , the most recent appraisal was obtained at the time of origination . replace_table_token_20_th included in the loan portfolio at september 30 , 2014 were $ 96.2 million , or 1.5 % of the total loan portfolio , of arm loans that were originated as interest-only . of these interest-only loans , $ 81.1 million were purchased in bulk loan packages from nationwide lenders , primarily during fiscal year 2005. interest-only arm loans do not typically require principal payments during their initial term , and have initial interest-only terms of either 5 or 10 years . the $ 81.1 million of bulk purchased interest-only arm loans had a weighted average credit score of 724 and a weighted average ltv ratio of 70 % at september 30 , 2014. at september 30 , 2014 , $ 52.8 million , or 55 % , of the interest-only loans were still in their interest-only payment term and $ 4.2 million , or 17 % of non-performing loans , were interest-only arms . 47 the following tables summarize activity in the loan portfolio , along with weighted average rates where applicable , for the periods indicated , excluding changes in undisbursed loan funds , acl , discounts/unearned loan fees , and premiums/deferred costs . loans that were paid-off as a result of refinances are included in repayments . purchased loans include purchases from correspondent and nationwide lenders . there were no loan purchases from nationwide
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2,565 | although the company 's management has used available information to make judgments on the appropriate estimates to account for the above matters , there can be no assurance that future events will not significantly affect the estimated amounts related to these areas where estimates are required . however , historically , actual results have not been materially different than original estimates : revenue recognition . the company recognizes revenue from the sales of its products when ownership transfers to the customers , which occurs either at the time of shipment or upon delivery based upon contractual terms with the customer . the company recognizes customer program costs , including rebates , cooperative advertising , slotting fees and other sales related discounts , as a reduction to sales . allowance for doubtful accounts . the company provides an allowance for doubtful accounts based upon a review of outstanding accounts receivable , historical collection information and existing economic conditions . the allowance for doubtful accounts represents estimated uncollectible accounts receivables associated with potential customer defaults on contractual obligations , usually due to potential insolvencies . the allowance includes amounts for certain customers where a risk of default has been specifically identified . in addition , the allowance includes a provision for customer defaults based on historical experience . the company actively monitors its accounts receivable balances and its historical experience of annual accounts receivable write offs has been negligible . customer rebates . customer rebates and incentives are a common practice in the office products industry . we incur customer rebate costs to obtain favorable product placement , to promote sell-through of products and to maintain competitive pricing . customer rebate costs and incentives , including volume rebates , promotional funds , catalog allowances and slotting fees , are accounted for as a reduction to gross sales . these costs are recorded at the time of sale and are based on individual customer contracts . management periodically reviews accruals for these rebates and allowances , and adjusts accruals when appropriate . obsolete and slow moving inventory . inventories are stated at the lower of cost , determined on the first-in , first-out method , or market . an allowance is established to adjust the cost of inventory to its net realizable value . inventory allowances are recorded for obsolete or slow moving inventory based on assumptions about future demand and marketability of products , the impact of new product introductions and specific identification of items , such as discontinued products . these estimates could vary significantly from actual requirements if future economic conditions , customer inventory levels or competitive conditions differ from expectations . income taxes . deferred income tax liabilities or assets are established for temporary differences between financial and tax reporting bases and are subsequently adjusted to reflect changes in tax rates expected to be in effect when the temporary differences reverse . a valuation allowance is recorded to reduce deferred income tax assets to an amount that is more likely than not to be realized . 13 intangible assets . intangible assets with finite useful lives are recorded at cost upon acquisition and amortized over the term of the related contract , if any , or useful life , as applicable . intangible assets held by the company with finite useful lives include patents and trademarks . the weighted average amortization period for intangible assets at december 31 , 2011 was 14 years . the company periodically reviews the values recorded for intangible assets to assess recoverability from future operations whenever events or changes in circumstances indicate that its carrying amount may not be recoverable . at december 31 , 2011 and 2010 , the company assessed the recoverability of its long-lived assets and believed that there were no events or circumstances present that would that would require a test of recoverability on those assets . as a result , there was no impairment of the carrying amounts of such assets and no reduction in their estimated useful lives . the net book value of the company 's intangible assets increased to $ 3,284,663 as of december 31 , 2011 , from $ 1,866,231 as of december 31 , 2010 primarily as a result of the pac-kit acquisition . refer to note 17 โ business combinations - in the notes to consolidated financial statements in this report for a more detailed discussion . pension obligation . the pension benefit obligation is based on various assumptions used by third-party actuaries in calculating this amount . these assumptions include discount rates , expected return on plan assets , mortality rates and other factors . revisions in assumptions and actual results that differ from the assumptions affect future expenses , cash funding requirements and obligations . our funding policy is to fund the plan in accordance with applicable requirements of the internal revenue code and regulations . these assumptions are reviewed annually and updated as required . the company has a frozen defined benefit pension plan . two assumptions , the discount rate and the expected return on plan assets , are important elements of expense and liability measurement . we determine the discount rate used to measure plan liabilities as of the december 31 measurement date . the discount rate reflects the current rate at which the associated liabilities could be effectively settled at the end of the year . in estimating this rate , we look at rates of return on fixed-income investments of similar duration to the liabilities in the plan that receive high , investment grade ratings by recognized ratings agencies . story_separator_special_tag using these methodologies , we determined a discount rate of 3.99 % to be appropriate as of december 31 , 2011 , which is a decrease of 0.43 percentage points from the rate used as of december 31 , 2010. an increase of 1.0 % in the discount rate would have decreased our plan liabilities as of december 31 , 2011 by $ 0.1 million . the expected long-term rate of return on assets considers the company 's historical results and projected returns for similar allocations among asset classes . in accordance with generally accepted accounting principles , actual results that differ from the company 's assumptions are accumulated and amortized over future periods and , therefore , affect expense and obligation in future periods . for the u.s. pension plan , our assumption for the expected return on plan assets was 8.25 % for 2011. for more information concerning these costs and obligations , see the discussion in note 6 โ pension and profit sharing , in the notes to the company 's consolidated financial statements . accounting for stock-based compensation . stock based compensation cost is measured at the grant date fair value of the award and is recognized as expense over the requisite service period . the company uses the black-scholes option - pricing model to determine fair value of the awards , which involves certain subjective assumptions . these assumptions include estimating the length of time employees will retain their vested stock options before exercising them ( โ expected term โ ) , the estimated volatility of the company 's common stock price over the expected term ( โ volatility โ ) and the number of options for which vesting requirements will not be completed ( โ forfeitures โ ) . changes in the subjective assumptions can materially affect estimates of fair value stock-based compensation , and the related amount recognized on the consolidated statements of operations . refer to note 11 - stock option plans - in the notes to consolidated financial statements in this report for a more detailed discussion . results of operations 2011 compared with 2010 on february 28 , 2011 , the company purchased substantially all of the assets of the pac-kit safety equipment company , a leading manufacturer of first aid kits for the industrial , safety , transportation and marine markets . the company purchased the accounts receivable , inventory , equipment and intangible assets of pac-kit for approximately $ 3.4 million using funds borrowed under its revolving loan agreement with wells fargo . the pac-kit line of products consist of high quality , unitized first aid kits sold to a broad range of customers and distributors . 14 the company recorded approximately $ 1.9 million for assets acquired including accounts receivable , inventory and fixed assets , as well as approximately $ 1.5 million for intangible assets , consisting of customer relationships and the pac-kit trade name . in 2011 , the company incurred approximately $ 125,000 of integration and transaction costs associated with the acquisition . these costs were recorded in selling , general and administrative expenses . net sales in 2011 , sales increased by $ 10,152,931 or 16 % ( 14 % in constant currency ) to $ 73,301,864 compared to $ 63,148,933 in 2010. the u.s. segment sales increased by $ 9,480,000 or 20 % in 2011 compared to 2010. sales in canada increased by $ 794,000 or 10 % ( 5 % in local currency ) in 2011 compared to 2010. european sales decreased by $ 120,000 or 2 % in u.s. dollars ( 8 % in local currency ) in 2011 compared to 2010. the decline in european net sales is primarily related to the timing of shipments to mass market customers . the increase in net sales for the twelve months ended december 31 , 2011 in the u.s. segment was primarily due to the additional sales resulting from the acquisition of the pac-kit company of approximately $ 5.2 million , strong sales of first aid products and market share gains in the mass market channel . the increase in net sales in canada for the twelve months ended december 31 , 2011 was primarily due to the introduction of new products including the company 's new line of airshoc lawn and garden tools , sold to a major retail hardware chain . gross profit gross profit was 36 % of net sales in 2011 compared to 37 % in 2010. the anticipated decline in gross profit as a percentage of sales for 2011 was primarily related to the addition of the pac-kit line of products , which in general , yield a lower gross profit than the company 's historical average gross margins . the sales of pac-kit products reduced the overall gross profit percentage by approximately 80 basis points . selling , general and administrative selling , general and administrative expenses were $ 22,040,000 in 2011 compared with $ 20,385,000 in 2010 , an increase of $ 1,655,000 or 8 % . sg & a expenses were 30 % of net sales in 2011 compared to 32 % in 2010. the increase in sg & a expenses was primarily the result of incremental expenses from the addition of pac-kit , higher delivery costs and sales commissions as a result of higher sales as well as higher personnel related expenses . operating income operating income was $ 4,285,000 in 2011 , compared with $ 2,980,000 in 2010 , an increase of $ 1,305,000. operating income in the u.s. and canadian segments increased by approximately $ 825,000 and $ 117,000 , respectively , principally due to higher sales . the european operating loss declined by $ 363,000 principally due to cost cutting measures initiated in 2011 and improvement in the gross margin . interest expense , net net interest expense for 2011 was $ 255,000 , compared with $ 142,000 for 2010 , an increase of $ 113,000. the increase in
| liquidity and capital resources during 2011 , working capital increased by approximately $ 4.4 million compared to december 31 , 2011. inventory increased by approximately $ 2.2 million . the company purchased approximately $ 1.2 million of inventory as part of the acquisition of pac-kit and spent an additional $ 1.0 million on inventory in anticipation of new business in 2012. inventory turnover , calculated using a twelve month average inventory balance , decreased to 2.0 from 2.1 at december 31 , 2010. receivables increased approximately $ 600,000 at december 31 , 2011 compared to december 31 , 2010. the average number of days sales outstanding in accounts receivable was 65 days in both 2011 and 2010. the company 's working capital , current ratio and long-term debt to equity ratio follow : replace_table_token_4_th during 2011 , total debt outstanding under the company 's revolving credit facility ( referred to below ) increased by approximately $ 4.0 million compared to total debt at december 31 , 2010. the increase in debt outstanding is primarily related to the financing of the acquisition of substantially all of the assets of the pac-kit company for $ 3.4 million . as of december 31 , 2011 , $ 17,568,484 was outstanding and $ 2,431,516 was available for borrowing under the revolving credit facility .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources during 2011 , working capital increased by approximately $ 4.4 million compared to december 31 , 2011. inventory increased by approximately $ 2.2 million . the company purchased approximately $ 1.2 million of inventory as part of the acquisition of pac-kit and spent an additional $ 1.0 million on inventory in anticipation of new business in 2012. inventory turnover , calculated using a twelve month average inventory balance , decreased to 2.0 from 2.1 at december 31 , 2010. receivables increased approximately $ 600,000 at december 31 , 2011 compared to december 31 , 2010. the average number of days sales outstanding in accounts receivable was 65 days in both 2011 and 2010. the company 's working capital , current ratio and long-term debt to equity ratio follow : replace_table_token_4_th during 2011 , total debt outstanding under the company 's revolving credit facility ( referred to below ) increased by approximately $ 4.0 million compared to total debt at december 31 , 2010. the increase in debt outstanding is primarily related to the financing of the acquisition of substantially all of the assets of the pac-kit company for $ 3.4 million . as of december 31 , 2011 , $ 17,568,484 was outstanding and $ 2,431,516 was available for borrowing under the revolving credit facility .
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Suspicious Activity Report : although the company 's management has used available information to make judgments on the appropriate estimates to account for the above matters , there can be no assurance that future events will not significantly affect the estimated amounts related to these areas where estimates are required . however , historically , actual results have not been materially different than original estimates : revenue recognition . the company recognizes revenue from the sales of its products when ownership transfers to the customers , which occurs either at the time of shipment or upon delivery based upon contractual terms with the customer . the company recognizes customer program costs , including rebates , cooperative advertising , slotting fees and other sales related discounts , as a reduction to sales . allowance for doubtful accounts . the company provides an allowance for doubtful accounts based upon a review of outstanding accounts receivable , historical collection information and existing economic conditions . the allowance for doubtful accounts represents estimated uncollectible accounts receivables associated with potential customer defaults on contractual obligations , usually due to potential insolvencies . the allowance includes amounts for certain customers where a risk of default has been specifically identified . in addition , the allowance includes a provision for customer defaults based on historical experience . the company actively monitors its accounts receivable balances and its historical experience of annual accounts receivable write offs has been negligible . customer rebates . customer rebates and incentives are a common practice in the office products industry . we incur customer rebate costs to obtain favorable product placement , to promote sell-through of products and to maintain competitive pricing . customer rebate costs and incentives , including volume rebates , promotional funds , catalog allowances and slotting fees , are accounted for as a reduction to gross sales . these costs are recorded at the time of sale and are based on individual customer contracts . management periodically reviews accruals for these rebates and allowances , and adjusts accruals when appropriate . obsolete and slow moving inventory . inventories are stated at the lower of cost , determined on the first-in , first-out method , or market . an allowance is established to adjust the cost of inventory to its net realizable value . inventory allowances are recorded for obsolete or slow moving inventory based on assumptions about future demand and marketability of products , the impact of new product introductions and specific identification of items , such as discontinued products . these estimates could vary significantly from actual requirements if future economic conditions , customer inventory levels or competitive conditions differ from expectations . income taxes . deferred income tax liabilities or assets are established for temporary differences between financial and tax reporting bases and are subsequently adjusted to reflect changes in tax rates expected to be in effect when the temporary differences reverse . a valuation allowance is recorded to reduce deferred income tax assets to an amount that is more likely than not to be realized . 13 intangible assets . intangible assets with finite useful lives are recorded at cost upon acquisition and amortized over the term of the related contract , if any , or useful life , as applicable . intangible assets held by the company with finite useful lives include patents and trademarks . the weighted average amortization period for intangible assets at december 31 , 2011 was 14 years . the company periodically reviews the values recorded for intangible assets to assess recoverability from future operations whenever events or changes in circumstances indicate that its carrying amount may not be recoverable . at december 31 , 2011 and 2010 , the company assessed the recoverability of its long-lived assets and believed that there were no events or circumstances present that would that would require a test of recoverability on those assets . as a result , there was no impairment of the carrying amounts of such assets and no reduction in their estimated useful lives . the net book value of the company 's intangible assets increased to $ 3,284,663 as of december 31 , 2011 , from $ 1,866,231 as of december 31 , 2010 primarily as a result of the pac-kit acquisition . refer to note 17 โ business combinations - in the notes to consolidated financial statements in this report for a more detailed discussion . pension obligation . the pension benefit obligation is based on various assumptions used by third-party actuaries in calculating this amount . these assumptions include discount rates , expected return on plan assets , mortality rates and other factors . revisions in assumptions and actual results that differ from the assumptions affect future expenses , cash funding requirements and obligations . our funding policy is to fund the plan in accordance with applicable requirements of the internal revenue code and regulations . these assumptions are reviewed annually and updated as required . the company has a frozen defined benefit pension plan . two assumptions , the discount rate and the expected return on plan assets , are important elements of expense and liability measurement . we determine the discount rate used to measure plan liabilities as of the december 31 measurement date . the discount rate reflects the current rate at which the associated liabilities could be effectively settled at the end of the year . in estimating this rate , we look at rates of return on fixed-income investments of similar duration to the liabilities in the plan that receive high , investment grade ratings by recognized ratings agencies . story_separator_special_tag using these methodologies , we determined a discount rate of 3.99 % to be appropriate as of december 31 , 2011 , which is a decrease of 0.43 percentage points from the rate used as of december 31 , 2010. an increase of 1.0 % in the discount rate would have decreased our plan liabilities as of december 31 , 2011 by $ 0.1 million . the expected long-term rate of return on assets considers the company 's historical results and projected returns for similar allocations among asset classes . in accordance with generally accepted accounting principles , actual results that differ from the company 's assumptions are accumulated and amortized over future periods and , therefore , affect expense and obligation in future periods . for the u.s. pension plan , our assumption for the expected return on plan assets was 8.25 % for 2011. for more information concerning these costs and obligations , see the discussion in note 6 โ pension and profit sharing , in the notes to the company 's consolidated financial statements . accounting for stock-based compensation . stock based compensation cost is measured at the grant date fair value of the award and is recognized as expense over the requisite service period . the company uses the black-scholes option - pricing model to determine fair value of the awards , which involves certain subjective assumptions . these assumptions include estimating the length of time employees will retain their vested stock options before exercising them ( โ expected term โ ) , the estimated volatility of the company 's common stock price over the expected term ( โ volatility โ ) and the number of options for which vesting requirements will not be completed ( โ forfeitures โ ) . changes in the subjective assumptions can materially affect estimates of fair value stock-based compensation , and the related amount recognized on the consolidated statements of operations . refer to note 11 - stock option plans - in the notes to consolidated financial statements in this report for a more detailed discussion . results of operations 2011 compared with 2010 on february 28 , 2011 , the company purchased substantially all of the assets of the pac-kit safety equipment company , a leading manufacturer of first aid kits for the industrial , safety , transportation and marine markets . the company purchased the accounts receivable , inventory , equipment and intangible assets of pac-kit for approximately $ 3.4 million using funds borrowed under its revolving loan agreement with wells fargo . the pac-kit line of products consist of high quality , unitized first aid kits sold to a broad range of customers and distributors . 14 the company recorded approximately $ 1.9 million for assets acquired including accounts receivable , inventory and fixed assets , as well as approximately $ 1.5 million for intangible assets , consisting of customer relationships and the pac-kit trade name . in 2011 , the company incurred approximately $ 125,000 of integration and transaction costs associated with the acquisition . these costs were recorded in selling , general and administrative expenses . net sales in 2011 , sales increased by $ 10,152,931 or 16 % ( 14 % in constant currency ) to $ 73,301,864 compared to $ 63,148,933 in 2010. the u.s. segment sales increased by $ 9,480,000 or 20 % in 2011 compared to 2010. sales in canada increased by $ 794,000 or 10 % ( 5 % in local currency ) in 2011 compared to 2010. european sales decreased by $ 120,000 or 2 % in u.s. dollars ( 8 % in local currency ) in 2011 compared to 2010. the decline in european net sales is primarily related to the timing of shipments to mass market customers . the increase in net sales for the twelve months ended december 31 , 2011 in the u.s. segment was primarily due to the additional sales resulting from the acquisition of the pac-kit company of approximately $ 5.2 million , strong sales of first aid products and market share gains in the mass market channel . the increase in net sales in canada for the twelve months ended december 31 , 2011 was primarily due to the introduction of new products including the company 's new line of airshoc lawn and garden tools , sold to a major retail hardware chain . gross profit gross profit was 36 % of net sales in 2011 compared to 37 % in 2010. the anticipated decline in gross profit as a percentage of sales for 2011 was primarily related to the addition of the pac-kit line of products , which in general , yield a lower gross profit than the company 's historical average gross margins . the sales of pac-kit products reduced the overall gross profit percentage by approximately 80 basis points . selling , general and administrative selling , general and administrative expenses were $ 22,040,000 in 2011 compared with $ 20,385,000 in 2010 , an increase of $ 1,655,000 or 8 % . sg & a expenses were 30 % of net sales in 2011 compared to 32 % in 2010. the increase in sg & a expenses was primarily the result of incremental expenses from the addition of pac-kit , higher delivery costs and sales commissions as a result of higher sales as well as higher personnel related expenses . operating income operating income was $ 4,285,000 in 2011 , compared with $ 2,980,000 in 2010 , an increase of $ 1,305,000. operating income in the u.s. and canadian segments increased by approximately $ 825,000 and $ 117,000 , respectively , principally due to higher sales . the european operating loss declined by $ 363,000 principally due to cost cutting measures initiated in 2011 and improvement in the gross margin . interest expense , net net interest expense for 2011 was $ 255,000 , compared with $ 142,000 for 2010 , an increase of $ 113,000. the increase in
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2,566 | during the recovery and growth phases of the lodging cycle , our strategy emphasizes external growth objectives oriented toward active investment in hotels that are additive to the quality of our portfolio , that have attractive growth potential and that may benefit from our asset management competencies . we endeavor to structure our acquisitions in a way that will not only increase the value of our common shares , but also will advance our other corporate objectives , such as improving our financial flexibility and reducing our leverage . during periods of cyclical decline , our strategy may emphasize opportunistically investing in distressed assets and the repurchase of our equity or debt securities . ยท measured balance sheet improvement : our financial objectives include the measured improvement of our credit ratios , improved disclosures , maintenance of appropriate levels of liquidity , and a gradual reduction in our financial leverage . our financial objectives are integral to our overall corporate strategy , and accordingly we have developed our financial objectives in conjunction with our internal and external growth objectives . the lodging industry is economically sensitive . therefore , our financial objectives are aimed at reducing the potentially negative impact of combining high operating leverage with high financial leverage , while preserving access to multiple capital sources and minimizing our weighted-average cost of capital . we seek to capitalize our acquisitions in a way that will advance our financial objectives . for example , as reducing our financial leverage is a key objective , we expect to fund our acquisitions with a greater proportion of equity capital than debt capital . during the mature phase of the lodging cycle , our financial objectives may include liquidity improvement , which may be accomplished through selective hotel dispositions . during 2010 and continuing into 2011 , we witnessed improving business and consumer sentiment , which resulted in improved hotel revenues and profits . accordingly , we believe we are currently in the early stages of a recovery phase of the lodging cycle , during which hotels acquired are likely to benefit from a multi-year recovery in hotel profitability , and are likely to create long-term value in excess of our investment hurdles . accordingly , we deployed a portion of our excess cash balance during 2011 towards selective acquisitions . these selective acquisitions included : the purchase of the outside 62.0 % equity interests in our doubletree guest suites times square joint venture for $ 37.5 million in cash and the assumption of $ 270.0 million in non-recourse senior mortgage and mezzanine debt ; the purchase of the outside 50.0 % equity interest in our buyefficient joint venture for $ 9.0 million in cash ; the purchase of the jw marriott new orleans for approximately $ 51.6 million in cash and the assumption of $ 42.2 million in debt ; and the purchase of a 75.0 % majority interest in a joint venture that owns the hilton san diego bayfront for approximately $ 182.8 million . concurrent with the hilton san diego bayfront acquisition , the joint venture entered into a new $ 240.0 million mortgage financing secured by the hotel . our acquisition program is aimed at generating attractive risk-adjusted returns on our investment dollars , and therefore we may target lodging assets outside of the typical branded , urban , upper upscale profile represented by our existing portfolio in order to capitalize on opportunities which may arise . we intend to select the brands and operators for our hotels that we believe will lead to the highest returns . additionally , the scope of our acquisitions program may include large hotel portfolios or hotel loans . in general , future acquisitions may be funded by our issuance of additional debt or equity securities , including our common and preferred op units , or by draws on our $ 150.0 million senior corporate credit facility entered into in november 2010. however , in light of our current financial objectives , we expect to fund any near term acquisitions with a greater proportion of equity capital than debt capital . we have disposed , and will continue to dispose , of assets that we believe will not offer long-term returns in excess of our cost of capital , or that have a high risk profile relative to their anticipated return expectations . in april 2011 , we completed the sale of the royal palm miami beach for a gross sales price of $ 130.0 million , including $ 40.0 million in cash and a $ 90.0 million mortgage-secured purchase money loan ( the ยroyal palm noteย ) to the buyer , and recognized a gain on the sale of $ 14.0 million . we sold the royal palm note in october 2011 and received net proceeds of approximately $ 79.2 million . in anticipation of this sale , we recorded an impairment loss of $ 10.9 million in september 2011. we retained an earn-out right on the royal palm hotel which will enable the company to receive future payments of up to $ 20.0 million in the event that the hotel achieves certain return hurdles . in october 2011 , we completed the sale of the valley river inn located in eugene , oregon for a gross sales price of $ 16.4 million , including the assumption of the existing mortgage secured by the hotel which totaled $ 11.5 million at the date of sale , and recognized a gain on the sale of $ 0.9 million . story_separator_special_tag which were deeded back to the lender in november 2010 pursuant to our 2009 secured debt restructuring program ; and the marriott ontario airport , which was sold by the receiver in august 2010 pursuant to our 2009 secured debt restructuring program . income from discontinued operations for the year ended december 31 , 2010 also includes the gain on extinguishment of debt pursuant to our 2009 secured debt restructuring program for the renaissance westchester , which was deeded back to the lender and reacquired by us in june 2010 , the w san diego , which was deeded back to the lender in july 2010 , and the marriott ontario airport , which was sold by the receiver in august 2010. these amounts can be found in our consolidated financial statements and related notes included elsewhere in this annual report on form 10-k. replace_table_token_4_th 34 the following table presents our operating results for our total portfolio for 2010 and 2009 , including the amount and percentage change in the results between the two periods . the table presents the results of operations included in the consolidated statements of operations , and includes the 29 hotels ( 11,056 rooms ) as of december 31 , 2010 and 2009. income from discontinued operations for the year ended december 31 , 2010 includes the results of operations for the following : royal palm miami beach , which was sold in april 2011 ; our commercial laundry facility located in salt lake city , utah , which was sold in july 2011 ; the valley river inn located in eugene , oregon , which was sold in october 2011 ; the ยmass mutual eightย hotels , which were deeded back to the lender in november 2010 pursuant to our 2009 secured debt restructuring program ; and the marriott ontario airport , which was sold by the receiver in august 2010 pursuant to our 2009 secured debt restructuring program . income from discontinued operations for the year ended december 31 , 2010 also includes the gain on extinguishment of debt pursuant to our 2009 secured debt restructuring program for the renaissance westchester , which was deeded back to the lender and reacquired by us in june 2010 , the w san diego , which was deeded back to the lender in july 2010 , and the marriott ontario airport , which was sold by the receiver in august 2010. loss from discontinued operations for 2009 includes the results of operations for the following : our commercial laundry facility located in salt lake city , utah , which was sold in july 2011 ; the valley river inn located in eugene , oregon , which was sold in october 2011 ; renaissance westchester which was deeded back to the lender and reacquired by us in june 2010 ; w san diego which was deeded back to the lender in july 2010 ; marriott ontario airport which was sold by the receiver in august 2010 ; the mass mutual eight hotels which were deeded back to the lender in november 2010 , marriott napa valley , which was sold in may 2009 ; marriott riverside , which was sold in june 2009 ; and hyatt suites atlanta northwest , which was sold in july 2009. these amounts can be found in our consolidated financial statements and related notes included elsewhere in this annual report on form 10-k. replace_table_token_5_th 35 operating statistics . included in the following tables are comparisons of the key operating metrics for our 32 hotel comparable portfolio , which includes prior ownership results for the doubletree guest suites times square , the jw marriott new orleans and the hilton san diego bayfront , as well as operating results for the renaissance westchester during the periods in 2009 and 2010 while it was held in receivership . replace_table_token_6_th replace_table_token_7_th non-gaap financial measures . the following table reconciles net income ( loss ) to ebitda and adjusted ebitda for our hotel portfolio for the years ended december 31 , 2011 , 2010 and 2009. we believe ebitda and adjusted ebitda are useful to investors in evaluating our operating performance because these measures help investors evaluate and compare the results of our operations from period to period by removing the impact of our capital structure ( primarily interest expense ) and our asset base ( primarily depreciation and amortization ) from our operating results . we also use ebitda and adjusted ebitda as measures in determining the value of hotel acquisitions and dispositions . we caution investors that amounts presented in accordance with our definitions of ebitda and adjusted ebitda may not be comparable to similar measures disclosed by other companies , because not all companies calculate these non-gaap measures in the same manner . ebitda and adjusted ebitda should not be considered as an alternative measure of our net income ( loss ) , operating performance , cash flow or liquidity . ebitda and adjusted ebitda may include funds that may not be available for our discretionary use to fund interest expense , capital expenditures or general corporate purposes . although we believe that ebitda and adjusted ebitda can enhance an investor 's understanding of our results of operations , these non-gaap financial measures , when viewed individually , are not necessarily a better indicator of any trend as compared to gaap measures such as net income ( loss ) or cash flow from operations . in addition , you should be aware that adverse economic and market conditions may harm our cash flow . replace_table_token_8_th 36 adjusted ebitda was $ 212.5 million in 2011 as compared to $ 158.8 million in 2010 and $ 169.4 million in 2009. adjusted ebitda increased in 2011 as compared to 2010 due to additional earnings generated by the three hotels we acquired or purchased interests in during 2011 ( doubletree guest suites times square , jw marriott new orleans and hilton san diego bayfront ) and by the
| liquidity and capital resources historical . during the periods presented , our sources of cash included our operating activities , working capital , sales of hotel properties and other assets , distributions received from our unconsolidated joint ventures , proceeds from issuance of notes payable and our credit facility , and proceeds from our offerings of common and preferred stock . our primary uses of cash were for acquisitions of hotel properties and other assets , capital expenditures for hotels , operating expenses , purchases of notes receivable , repayment of notes payable ( including repurchases of senior notes ) and our credit facility , repurchases of our common stock , and dividends on our preferred stock . we can not be certain that traditional sources of funds will be available in the future . operating activities . our cash provided by or used in operating activities fluctuates primarily as a result of changes in revpar and operating cash flow through of our hotels . our net cash provided by or used in operating activities may also be affected by changes in our portfolio resulting from hotel acquisitions , dispositions or renovations . net cash provided by operating activities was $ 156.4 million for 2011 compared to $ 43.6 million for 2010 , and $ 64.8 million for 2009. the increase in 2011 as compared to 2010 was primarily due to our acquisitions of the new hotels , combined with increased earnings at our existing hotels . the decrease in 2010 as compared to 2009 was primarily due to an increase in restricted cash during 2010. investing activities . our cash provided by or used in investing activities fluctuates primarily as a result of acquisitions , dispositions and renovations of hotels .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources historical . during the periods presented , our sources of cash included our operating activities , working capital , sales of hotel properties and other assets , distributions received from our unconsolidated joint ventures , proceeds from issuance of notes payable and our credit facility , and proceeds from our offerings of common and preferred stock . our primary uses of cash were for acquisitions of hotel properties and other assets , capital expenditures for hotels , operating expenses , purchases of notes receivable , repayment of notes payable ( including repurchases of senior notes ) and our credit facility , repurchases of our common stock , and dividends on our preferred stock . we can not be certain that traditional sources of funds will be available in the future . operating activities . our cash provided by or used in operating activities fluctuates primarily as a result of changes in revpar and operating cash flow through of our hotels . our net cash provided by or used in operating activities may also be affected by changes in our portfolio resulting from hotel acquisitions , dispositions or renovations . net cash provided by operating activities was $ 156.4 million for 2011 compared to $ 43.6 million for 2010 , and $ 64.8 million for 2009. the increase in 2011 as compared to 2010 was primarily due to our acquisitions of the new hotels , combined with increased earnings at our existing hotels . the decrease in 2010 as compared to 2009 was primarily due to an increase in restricted cash during 2010. investing activities . our cash provided by or used in investing activities fluctuates primarily as a result of acquisitions , dispositions and renovations of hotels .
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Suspicious Activity Report : during the recovery and growth phases of the lodging cycle , our strategy emphasizes external growth objectives oriented toward active investment in hotels that are additive to the quality of our portfolio , that have attractive growth potential and that may benefit from our asset management competencies . we endeavor to structure our acquisitions in a way that will not only increase the value of our common shares , but also will advance our other corporate objectives , such as improving our financial flexibility and reducing our leverage . during periods of cyclical decline , our strategy may emphasize opportunistically investing in distressed assets and the repurchase of our equity or debt securities . ยท measured balance sheet improvement : our financial objectives include the measured improvement of our credit ratios , improved disclosures , maintenance of appropriate levels of liquidity , and a gradual reduction in our financial leverage . our financial objectives are integral to our overall corporate strategy , and accordingly we have developed our financial objectives in conjunction with our internal and external growth objectives . the lodging industry is economically sensitive . therefore , our financial objectives are aimed at reducing the potentially negative impact of combining high operating leverage with high financial leverage , while preserving access to multiple capital sources and minimizing our weighted-average cost of capital . we seek to capitalize our acquisitions in a way that will advance our financial objectives . for example , as reducing our financial leverage is a key objective , we expect to fund our acquisitions with a greater proportion of equity capital than debt capital . during the mature phase of the lodging cycle , our financial objectives may include liquidity improvement , which may be accomplished through selective hotel dispositions . during 2010 and continuing into 2011 , we witnessed improving business and consumer sentiment , which resulted in improved hotel revenues and profits . accordingly , we believe we are currently in the early stages of a recovery phase of the lodging cycle , during which hotels acquired are likely to benefit from a multi-year recovery in hotel profitability , and are likely to create long-term value in excess of our investment hurdles . accordingly , we deployed a portion of our excess cash balance during 2011 towards selective acquisitions . these selective acquisitions included : the purchase of the outside 62.0 % equity interests in our doubletree guest suites times square joint venture for $ 37.5 million in cash and the assumption of $ 270.0 million in non-recourse senior mortgage and mezzanine debt ; the purchase of the outside 50.0 % equity interest in our buyefficient joint venture for $ 9.0 million in cash ; the purchase of the jw marriott new orleans for approximately $ 51.6 million in cash and the assumption of $ 42.2 million in debt ; and the purchase of a 75.0 % majority interest in a joint venture that owns the hilton san diego bayfront for approximately $ 182.8 million . concurrent with the hilton san diego bayfront acquisition , the joint venture entered into a new $ 240.0 million mortgage financing secured by the hotel . our acquisition program is aimed at generating attractive risk-adjusted returns on our investment dollars , and therefore we may target lodging assets outside of the typical branded , urban , upper upscale profile represented by our existing portfolio in order to capitalize on opportunities which may arise . we intend to select the brands and operators for our hotels that we believe will lead to the highest returns . additionally , the scope of our acquisitions program may include large hotel portfolios or hotel loans . in general , future acquisitions may be funded by our issuance of additional debt or equity securities , including our common and preferred op units , or by draws on our $ 150.0 million senior corporate credit facility entered into in november 2010. however , in light of our current financial objectives , we expect to fund any near term acquisitions with a greater proportion of equity capital than debt capital . we have disposed , and will continue to dispose , of assets that we believe will not offer long-term returns in excess of our cost of capital , or that have a high risk profile relative to their anticipated return expectations . in april 2011 , we completed the sale of the royal palm miami beach for a gross sales price of $ 130.0 million , including $ 40.0 million in cash and a $ 90.0 million mortgage-secured purchase money loan ( the ยroyal palm noteย ) to the buyer , and recognized a gain on the sale of $ 14.0 million . we sold the royal palm note in october 2011 and received net proceeds of approximately $ 79.2 million . in anticipation of this sale , we recorded an impairment loss of $ 10.9 million in september 2011. we retained an earn-out right on the royal palm hotel which will enable the company to receive future payments of up to $ 20.0 million in the event that the hotel achieves certain return hurdles . in october 2011 , we completed the sale of the valley river inn located in eugene , oregon for a gross sales price of $ 16.4 million , including the assumption of the existing mortgage secured by the hotel which totaled $ 11.5 million at the date of sale , and recognized a gain on the sale of $ 0.9 million . story_separator_special_tag which were deeded back to the lender in november 2010 pursuant to our 2009 secured debt restructuring program ; and the marriott ontario airport , which was sold by the receiver in august 2010 pursuant to our 2009 secured debt restructuring program . income from discontinued operations for the year ended december 31 , 2010 also includes the gain on extinguishment of debt pursuant to our 2009 secured debt restructuring program for the renaissance westchester , which was deeded back to the lender and reacquired by us in june 2010 , the w san diego , which was deeded back to the lender in july 2010 , and the marriott ontario airport , which was sold by the receiver in august 2010. these amounts can be found in our consolidated financial statements and related notes included elsewhere in this annual report on form 10-k. replace_table_token_4_th 34 the following table presents our operating results for our total portfolio for 2010 and 2009 , including the amount and percentage change in the results between the two periods . the table presents the results of operations included in the consolidated statements of operations , and includes the 29 hotels ( 11,056 rooms ) as of december 31 , 2010 and 2009. income from discontinued operations for the year ended december 31 , 2010 includes the results of operations for the following : royal palm miami beach , which was sold in april 2011 ; our commercial laundry facility located in salt lake city , utah , which was sold in july 2011 ; the valley river inn located in eugene , oregon , which was sold in october 2011 ; the ยmass mutual eightย hotels , which were deeded back to the lender in november 2010 pursuant to our 2009 secured debt restructuring program ; and the marriott ontario airport , which was sold by the receiver in august 2010 pursuant to our 2009 secured debt restructuring program . income from discontinued operations for the year ended december 31 , 2010 also includes the gain on extinguishment of debt pursuant to our 2009 secured debt restructuring program for the renaissance westchester , which was deeded back to the lender and reacquired by us in june 2010 , the w san diego , which was deeded back to the lender in july 2010 , and the marriott ontario airport , which was sold by the receiver in august 2010. loss from discontinued operations for 2009 includes the results of operations for the following : our commercial laundry facility located in salt lake city , utah , which was sold in july 2011 ; the valley river inn located in eugene , oregon , which was sold in october 2011 ; renaissance westchester which was deeded back to the lender and reacquired by us in june 2010 ; w san diego which was deeded back to the lender in july 2010 ; marriott ontario airport which was sold by the receiver in august 2010 ; the mass mutual eight hotels which were deeded back to the lender in november 2010 , marriott napa valley , which was sold in may 2009 ; marriott riverside , which was sold in june 2009 ; and hyatt suites atlanta northwest , which was sold in july 2009. these amounts can be found in our consolidated financial statements and related notes included elsewhere in this annual report on form 10-k. replace_table_token_5_th 35 operating statistics . included in the following tables are comparisons of the key operating metrics for our 32 hotel comparable portfolio , which includes prior ownership results for the doubletree guest suites times square , the jw marriott new orleans and the hilton san diego bayfront , as well as operating results for the renaissance westchester during the periods in 2009 and 2010 while it was held in receivership . replace_table_token_6_th replace_table_token_7_th non-gaap financial measures . the following table reconciles net income ( loss ) to ebitda and adjusted ebitda for our hotel portfolio for the years ended december 31 , 2011 , 2010 and 2009. we believe ebitda and adjusted ebitda are useful to investors in evaluating our operating performance because these measures help investors evaluate and compare the results of our operations from period to period by removing the impact of our capital structure ( primarily interest expense ) and our asset base ( primarily depreciation and amortization ) from our operating results . we also use ebitda and adjusted ebitda as measures in determining the value of hotel acquisitions and dispositions . we caution investors that amounts presented in accordance with our definitions of ebitda and adjusted ebitda may not be comparable to similar measures disclosed by other companies , because not all companies calculate these non-gaap measures in the same manner . ebitda and adjusted ebitda should not be considered as an alternative measure of our net income ( loss ) , operating performance , cash flow or liquidity . ebitda and adjusted ebitda may include funds that may not be available for our discretionary use to fund interest expense , capital expenditures or general corporate purposes . although we believe that ebitda and adjusted ebitda can enhance an investor 's understanding of our results of operations , these non-gaap financial measures , when viewed individually , are not necessarily a better indicator of any trend as compared to gaap measures such as net income ( loss ) or cash flow from operations . in addition , you should be aware that adverse economic and market conditions may harm our cash flow . replace_table_token_8_th 36 adjusted ebitda was $ 212.5 million in 2011 as compared to $ 158.8 million in 2010 and $ 169.4 million in 2009. adjusted ebitda increased in 2011 as compared to 2010 due to additional earnings generated by the three hotels we acquired or purchased interests in during 2011 ( doubletree guest suites times square , jw marriott new orleans and hilton san diego bayfront ) and by the
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2,567 | our discussion includes forward-looking statements based upon current expectations that involve risks and uncertainties , such as our plans , objectives , expectations and intentions . actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors . see โ forward-looking statements . โ overview we are a leading owner , operator and provider of electric vehicle ( โ ev โ ) charging equipment and networked ev charging services . we offer both residential and commercial ev charging equipment , enabling ev drivers to easily recharge at various location types . our principal line of products and services is our blink ev charging network ( the โ blink network โ ) and ev charging equipment ( also known as electric vehicle supply equipment ) and ev related services . our blink network consists of proprietary cloud-based software that operates , maintain , and tracks all of the blink ev charging stations and the associated charging data . the blink network provides property owners , managers and parking companies , who we refer to as our โ property partners โ , with cloud-based services that enable the remote monitoring and management of ev charging stations payment processing , and provide ev drivers with vital station information including station location , availability and applicable fees . 15 we offer our property partners a range of business models for ev charging equipment and services that generally fall into one of the three business models below . โ in our comprehensive turnkey business model , we own and operate the ev charging equipment , undertake and manage the installation , maintenance and related services , and we keep substantially all of the ev charging revenue . โ in our hybrid business model , the property partner incurs the installation costs , while we provide the charging equipment . we operate and manage the ev charging station and provide connectivity of the charging station to the blink network . as a result , we share a greater portion of the ev charging revenue with the property partner than under the turnkey mode above . โ in our host owned business model , the property partner purchases , owns and manages the blink ev charging station , incurs the installation costs of the equipment , while we provide site recommendations , connectivity to the blink network and optional maintenance services , and the property partner keeps substantially all of the ev charging revenue . we have strategic partnerships across numerous transit/destination locations , including airports , auto dealers , healthcare/medical , hotels , mixed-use , municipal locations , multifamily residential and condos , parks and recreation areas , parking lots , religious institutions , restaurants , retailers , schools and universities , stadiums , supermarkets , transportation hubs , and workplace locations . as of march 25 , 2019 , we had approximately 14,583 charging stations deployed , of which , 5,072 are level 2 commercial charging units , 107 are dc fast charging ev chargers and 1,675 are residential charging units in service on the blink network . additionally , as of march 25 , 2019 , we had approximately 394 level 2 commercial charging units on other networks and there were also approximately 7,335 non-networked , residential blink ev charging stations . the non-networked , residential blink ev charging stations are all property partner owned . as reflected in our consolidated financial statements as of december 31 , 2018 , we had a cash balance of $ 18,417,513 , working capital of $ 15,586,510 and an accumulated deficit of $ 159,856,481. during the years ended december 31 , 2018 and 2017 , we incurred net losses of $ 3,421,203 and $ 75,363,496 , respectively . we have not yet achieved profitability . results of operations year ended december 31 , 2018 compared year ended december 31 , 2017 revenues total revenue for the year ended december 31 , 2018 was $ 2,686,237 compared to $ 2,500,357 for the year ended december 31 , 2017 , an increase of $ 185,880 , or 7 % . charging service revenue for company-owned charging stations was $ 1,264,719 for the year ended december 31 , 2018 compared to $ 1,186,710 for the year ended december 31 , 2017 , an increase of $ 78,009 , or 7 % . the increase was attributable to a greater number of charging stations in the network as compared to the same 2017 period . revenue from product sales was $ 476,930 for the year ended december 31 , 2018 , compared to $ 495,086 for the year ended december 31 , 2017 , a decrease of $ 18,156 , or 4 % . this decrease was attributable to a lower volume of commercial units sold as compared to the same period in 2017 network fee revenue was $ 241,826 for the year ended december 31 , 2018 , compared to $ 225,349 for the year ended december 31 , 2017 , an increase of $ 16,477 , or 7 % . the increase was commensurate with the increase in the number of charging stations in the network as compared to last year . warranty revenue was $ 109,614 for the year ended december 31 , 2018 , compared to $ 133,867 for the year ended december 31 , 2017 , a decrease of $ 24,253 , or 18 % . the decrease was primarily attributable to property partners of host owned chargers not renewing their warranty contracts . story_separator_special_tag furthermore , $ 4,468,365 of the compensation expense increase was due to stock-based compensation , inclusive of payroll tax gross-ups , granted to officers and directors of our company during the year ended december 31 , 2018. recruiting fees related to the hiring of additional senior management and it personnel in 2018 resulted in $ 213,214 of fees in 2018. general and administrative expenses increased by $ 94,642 , or 7 % , from $ 1,282,728 for the year ended december 31 , 2017 to $ 1,377,370 for the year ended december 31 , 2018. investor relations fees increased by $ 254,890 for the year ended december 31 , 2018 as investor relations professionals were initially retained in 2018. furthermore , our annual shareholders meeting was held on september 7 , 2018 resulting in incremental expenses specific to the period totaling $ 107,930. this was offset by a decrease in legal fees of $ 486,834 during the year ended december 31 , 2018 compared to the year ended december 31 , 2017 , as result of settlement and discontinuance of litigation matters . 17 other operating expenses increased by $ 509,200 , or 56 % , from $ 904,830 for the year ended december 31 , 2017 to $ 1,414,030 for the year ended december 31 , 2018. the increase was primarily attributable to an increase in rent expense of $ 123,921 related to our move to a larger office space in miami beach , florida and our leasing of additional adjacent space to our existing phoenix , arizona location for the year ended december 31 , 2018 offset by a decrease in storage facility rentals of $ 37,706. additionally , there was an increase in second generation electric charger product development expense of $ 140,092. past due sales , payroll taxes and related penalties resulted in an increased expense of $ 113,358. other income ( expense ) other income ( expense ) increased by $ 76,130,554 from an expense of $ 67,940,048 for the year ended december 31 , 2017 to income of $ 8,190,506 for the year ended december31 , 2018. during the year ended december 31 , 2018 , we settled approximately $ 17,800,000 of obligations to jmj with the issuance of series d convertible preferred stock , which resulted in a gain of approximately $ 5,800,000. additionally , we realized a decrease in the change in fair value of derivative and other accrued liabilities of $ 49,102,863 to $ 5,093,024 during the year ended december 31 , 2018 , compared to $ 44,009,839 of expense during the year ended december 31 , 2017 , as a result of warrant holders exchanging their warrants for equity . during the year ended december 31 , 2018 , we recorded a gain on the settlement of accounts payable of $ 972,637 , which increased by $ 949,723 from a gain of $ 22,914 for the year ended december 31 , 2017 period . this increase was due to liabilities being settled pursuant to agreements contingent upon the closing of our public offering on february 16 , 2018. these items were offset by a loss on settlement of liabilities for equity of approximately $ 2,136,860 , a reduction in amortization of debt discount of $ 1,756,244 , and a charge of $ 785,200 related to a contribution of capital by our chairman and ceo during the year ended december 31 , 2018. during the year ended december 31 , 2018 , we recorded a loss on settlement reserve of $ 127,941 from $ 12,980,588 during the year ended december 31 , 2017 , a decrease of $ 12,852,647. this was a result of our default on obligations to jmj of approximately $ 12,500,000. our net loss for the year ended december 31 , 2018 decreased by $ 71,942,293 , or 95 % , to $ 3,421,203 as compared to $ 75,363,496 for the year ended december 31 , 2017. the decrease was primarily attributable to an increase in other income ( expenses ) of $ 76,130,554. our net loss attributable to common shareholders for the year ended december 31 , 2018 decreased by $ 52,750,462 or 66 % , from $ 79,630,596 to $ 26,880,134 for the aforementioned reasons and due to a decrease in the dividend attributable to series c convertible preferred stockholders of $ 4,267,100 , as well as the deemed dividend attributable to the immediate accretion of the beneficial conversion feature related to the series b and c convertible preferred stock of $ 23,458,931. story_separator_special_tag โ approximately $ 1.0 million to expand our product offerings including but not limited to completing the research and development , as well as the launch , of our next generation of ev charging equipment ; โ approximately $ 3.0 million to add additional staff in the areas of finance , sales , customer support , and engineering ; and ( 4 ) the remainder for working capital and other general corporate purposes . we believe our current cash on hand is sufficient to meet our obligations , operating and capital requirements for at least the next 12 months from the date of this filing . thereafter , we may need to raise further capital , through the sale of additional equity or debt securities , or other debt instruments to support our future operations . our operating needs include the planned costs to operate our business , including amounts required to fund working capital and capital expenditures . our future capital requirements and the adequacy of our available funds will depend on many factors , including our ability to successfully commercialize our products and services , competing technological and market developments , and the need to enter into collaborations with other companies or acquire other companies or technologies to enhance or complement our product and service offerings . there is also no assurance that the amount of funds we might raise will enable us to complete our development initiatives or attain
| liquidity and capital resources on february 16 , 2018 , we closed our underwritten public offering of an aggregate 4,353,000 shares of common stock and warrants to purchase an aggregate of 8,706,000 shares of common stock at a combined public offering price of $ 4.25 per unit comprised of one share and two warrants . the public offering resulted in $ 18,504,320 and $ 14,880,815 of gross and net proceeds , respectively , reflecting underwriting discounts , commissions and other offering expenses of $ 3,623,505 , which was recorded as a reduction of additional paid-in capital . furthermore , during the year ended december 31 , 2018 , we issued an aggregate of 4,033,660 shares of common stock pursuant to the exercise of warrants at an exercise price of $ 4.25 per share for aggregate gross proceeds of $ 17,143,056. we measure our liquidity in a number of ways , including the following : replace_table_token_0_th during the year ended december 31 , 2018 , we financed our activities from proceeds derived from debt and equity financings . a significant portion of the funds raised from the sale of capital stock has been used to cover working capital needs and personnel , office expenses and various consulting and professional fees . for the years ended december 31 , 2018 and 2017 , we used cash of $ 13,420,955 and $ 2,548,661 , respectively , in operations .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources on february 16 , 2018 , we closed our underwritten public offering of an aggregate 4,353,000 shares of common stock and warrants to purchase an aggregate of 8,706,000 shares of common stock at a combined public offering price of $ 4.25 per unit comprised of one share and two warrants . the public offering resulted in $ 18,504,320 and $ 14,880,815 of gross and net proceeds , respectively , reflecting underwriting discounts , commissions and other offering expenses of $ 3,623,505 , which was recorded as a reduction of additional paid-in capital . furthermore , during the year ended december 31 , 2018 , we issued an aggregate of 4,033,660 shares of common stock pursuant to the exercise of warrants at an exercise price of $ 4.25 per share for aggregate gross proceeds of $ 17,143,056. we measure our liquidity in a number of ways , including the following : replace_table_token_0_th during the year ended december 31 , 2018 , we financed our activities from proceeds derived from debt and equity financings . a significant portion of the funds raised from the sale of capital stock has been used to cover working capital needs and personnel , office expenses and various consulting and professional fees . for the years ended december 31 , 2018 and 2017 , we used cash of $ 13,420,955 and $ 2,548,661 , respectively , in operations .
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Suspicious Activity Report : our discussion includes forward-looking statements based upon current expectations that involve risks and uncertainties , such as our plans , objectives , expectations and intentions . actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors . see โ forward-looking statements . โ overview we are a leading owner , operator and provider of electric vehicle ( โ ev โ ) charging equipment and networked ev charging services . we offer both residential and commercial ev charging equipment , enabling ev drivers to easily recharge at various location types . our principal line of products and services is our blink ev charging network ( the โ blink network โ ) and ev charging equipment ( also known as electric vehicle supply equipment ) and ev related services . our blink network consists of proprietary cloud-based software that operates , maintain , and tracks all of the blink ev charging stations and the associated charging data . the blink network provides property owners , managers and parking companies , who we refer to as our โ property partners โ , with cloud-based services that enable the remote monitoring and management of ev charging stations payment processing , and provide ev drivers with vital station information including station location , availability and applicable fees . 15 we offer our property partners a range of business models for ev charging equipment and services that generally fall into one of the three business models below . โ in our comprehensive turnkey business model , we own and operate the ev charging equipment , undertake and manage the installation , maintenance and related services , and we keep substantially all of the ev charging revenue . โ in our hybrid business model , the property partner incurs the installation costs , while we provide the charging equipment . we operate and manage the ev charging station and provide connectivity of the charging station to the blink network . as a result , we share a greater portion of the ev charging revenue with the property partner than under the turnkey mode above . โ in our host owned business model , the property partner purchases , owns and manages the blink ev charging station , incurs the installation costs of the equipment , while we provide site recommendations , connectivity to the blink network and optional maintenance services , and the property partner keeps substantially all of the ev charging revenue . we have strategic partnerships across numerous transit/destination locations , including airports , auto dealers , healthcare/medical , hotels , mixed-use , municipal locations , multifamily residential and condos , parks and recreation areas , parking lots , religious institutions , restaurants , retailers , schools and universities , stadiums , supermarkets , transportation hubs , and workplace locations . as of march 25 , 2019 , we had approximately 14,583 charging stations deployed , of which , 5,072 are level 2 commercial charging units , 107 are dc fast charging ev chargers and 1,675 are residential charging units in service on the blink network . additionally , as of march 25 , 2019 , we had approximately 394 level 2 commercial charging units on other networks and there were also approximately 7,335 non-networked , residential blink ev charging stations . the non-networked , residential blink ev charging stations are all property partner owned . as reflected in our consolidated financial statements as of december 31 , 2018 , we had a cash balance of $ 18,417,513 , working capital of $ 15,586,510 and an accumulated deficit of $ 159,856,481. during the years ended december 31 , 2018 and 2017 , we incurred net losses of $ 3,421,203 and $ 75,363,496 , respectively . we have not yet achieved profitability . results of operations year ended december 31 , 2018 compared year ended december 31 , 2017 revenues total revenue for the year ended december 31 , 2018 was $ 2,686,237 compared to $ 2,500,357 for the year ended december 31 , 2017 , an increase of $ 185,880 , or 7 % . charging service revenue for company-owned charging stations was $ 1,264,719 for the year ended december 31 , 2018 compared to $ 1,186,710 for the year ended december 31 , 2017 , an increase of $ 78,009 , or 7 % . the increase was attributable to a greater number of charging stations in the network as compared to the same 2017 period . revenue from product sales was $ 476,930 for the year ended december 31 , 2018 , compared to $ 495,086 for the year ended december 31 , 2017 , a decrease of $ 18,156 , or 4 % . this decrease was attributable to a lower volume of commercial units sold as compared to the same period in 2017 network fee revenue was $ 241,826 for the year ended december 31 , 2018 , compared to $ 225,349 for the year ended december 31 , 2017 , an increase of $ 16,477 , or 7 % . the increase was commensurate with the increase in the number of charging stations in the network as compared to last year . warranty revenue was $ 109,614 for the year ended december 31 , 2018 , compared to $ 133,867 for the year ended december 31 , 2017 , a decrease of $ 24,253 , or 18 % . the decrease was primarily attributable to property partners of host owned chargers not renewing their warranty contracts . story_separator_special_tag furthermore , $ 4,468,365 of the compensation expense increase was due to stock-based compensation , inclusive of payroll tax gross-ups , granted to officers and directors of our company during the year ended december 31 , 2018. recruiting fees related to the hiring of additional senior management and it personnel in 2018 resulted in $ 213,214 of fees in 2018. general and administrative expenses increased by $ 94,642 , or 7 % , from $ 1,282,728 for the year ended december 31 , 2017 to $ 1,377,370 for the year ended december 31 , 2018. investor relations fees increased by $ 254,890 for the year ended december 31 , 2018 as investor relations professionals were initially retained in 2018. furthermore , our annual shareholders meeting was held on september 7 , 2018 resulting in incremental expenses specific to the period totaling $ 107,930. this was offset by a decrease in legal fees of $ 486,834 during the year ended december 31 , 2018 compared to the year ended december 31 , 2017 , as result of settlement and discontinuance of litigation matters . 17 other operating expenses increased by $ 509,200 , or 56 % , from $ 904,830 for the year ended december 31 , 2017 to $ 1,414,030 for the year ended december 31 , 2018. the increase was primarily attributable to an increase in rent expense of $ 123,921 related to our move to a larger office space in miami beach , florida and our leasing of additional adjacent space to our existing phoenix , arizona location for the year ended december 31 , 2018 offset by a decrease in storage facility rentals of $ 37,706. additionally , there was an increase in second generation electric charger product development expense of $ 140,092. past due sales , payroll taxes and related penalties resulted in an increased expense of $ 113,358. other income ( expense ) other income ( expense ) increased by $ 76,130,554 from an expense of $ 67,940,048 for the year ended december 31 , 2017 to income of $ 8,190,506 for the year ended december31 , 2018. during the year ended december 31 , 2018 , we settled approximately $ 17,800,000 of obligations to jmj with the issuance of series d convertible preferred stock , which resulted in a gain of approximately $ 5,800,000. additionally , we realized a decrease in the change in fair value of derivative and other accrued liabilities of $ 49,102,863 to $ 5,093,024 during the year ended december 31 , 2018 , compared to $ 44,009,839 of expense during the year ended december 31 , 2017 , as a result of warrant holders exchanging their warrants for equity . during the year ended december 31 , 2018 , we recorded a gain on the settlement of accounts payable of $ 972,637 , which increased by $ 949,723 from a gain of $ 22,914 for the year ended december 31 , 2017 period . this increase was due to liabilities being settled pursuant to agreements contingent upon the closing of our public offering on february 16 , 2018. these items were offset by a loss on settlement of liabilities for equity of approximately $ 2,136,860 , a reduction in amortization of debt discount of $ 1,756,244 , and a charge of $ 785,200 related to a contribution of capital by our chairman and ceo during the year ended december 31 , 2018. during the year ended december 31 , 2018 , we recorded a loss on settlement reserve of $ 127,941 from $ 12,980,588 during the year ended december 31 , 2017 , a decrease of $ 12,852,647. this was a result of our default on obligations to jmj of approximately $ 12,500,000. our net loss for the year ended december 31 , 2018 decreased by $ 71,942,293 , or 95 % , to $ 3,421,203 as compared to $ 75,363,496 for the year ended december 31 , 2017. the decrease was primarily attributable to an increase in other income ( expenses ) of $ 76,130,554. our net loss attributable to common shareholders for the year ended december 31 , 2018 decreased by $ 52,750,462 or 66 % , from $ 79,630,596 to $ 26,880,134 for the aforementioned reasons and due to a decrease in the dividend attributable to series c convertible preferred stockholders of $ 4,267,100 , as well as the deemed dividend attributable to the immediate accretion of the beneficial conversion feature related to the series b and c convertible preferred stock of $ 23,458,931. story_separator_special_tag โ approximately $ 1.0 million to expand our product offerings including but not limited to completing the research and development , as well as the launch , of our next generation of ev charging equipment ; โ approximately $ 3.0 million to add additional staff in the areas of finance , sales , customer support , and engineering ; and ( 4 ) the remainder for working capital and other general corporate purposes . we believe our current cash on hand is sufficient to meet our obligations , operating and capital requirements for at least the next 12 months from the date of this filing . thereafter , we may need to raise further capital , through the sale of additional equity or debt securities , or other debt instruments to support our future operations . our operating needs include the planned costs to operate our business , including amounts required to fund working capital and capital expenditures . our future capital requirements and the adequacy of our available funds will depend on many factors , including our ability to successfully commercialize our products and services , competing technological and market developments , and the need to enter into collaborations with other companies or acquire other companies or technologies to enhance or complement our product and service offerings . there is also no assurance that the amount of funds we might raise will enable us to complete our development initiatives or attain
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2,568 | ( see โ factors that may affect our performance . โ ) critical accounting policies the following discussion and analysis of our financial condition and results of operations is based upon our consolidated financial statements and the notes thereto , which have been prepared in accordance with accounting principles generally accepted in the united states of america . the preparation of these consolidated financial statements requires us to make a number of estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial statements . on an ongoing basis , we evaluate our estimates and assumptions based upon historical experience and various factors and circumstances . we believe that our estimates and assumptions are reasonable under the circumstances . however , actual results may differ significantly from these estimates and assumptions that could have a material effect on the carrying value of assets and liabilities at the balance sheet dates and our results of operations for the reporting periods . securities . currently , we classify securities as either trading , available-for-sale or held-to-maturity . trading securities are those securities for which we have elected fair value accounting . trading securities are recorded at fair value with changes in fair value recorded in earnings each period . securities available-for-sale are reported at estimated fair value , with unrealized gains and losses , net of the related tax effects , excluded from operations and reported as a separate component of accumulated other comprehensive income or loss . the fair values of securities traded in active markets are obtained from market quotes . if quoted prices in active markets are not available , we determine the fair values by utilizing industry-standard tools to calculate the net present value of the expected cash flows available to the securities from the underlying mortgage assets . to determine the performance of the underlying mortgage loan pools , we consider where appropriate borrower prepayments , defaults , and loss severities based on a number of macroeconomic factors , including housing price changes , unemployment rates , interest rates and borrower attributes such as credit score and loan documentation at the time of origination . we input for each security our projections of monthly default rates , loss severity rates and voluntary prepayment rates for the underlying mortgages for the remaining life of the security to determine the expected cash flows . the projections of default rates are derived by the company from the historic default rate observed in the pool of loans collateralizing the security , increased by ( or decreased by ) the forecasted increase or decrease in the national unemployment rate . the projections of loss severity rates are derived by the company from the historic loss severity rate observed in the pool of loans , increased by ( or decreased by ) the forecasted decrease or increase in the national home price appreciation ( hpa ) index . to determine the discount rates used to compute the present value of the expected cash flows for these non-agency mbs securities , we separate the securities by the borrower characteristics in the underlying pool . for example , non-agency rmbs โ prime โ securities generally have borrowers with higher fico scores and better documentation of income . โ alt-a โ securities generally have borrowers with lower fico and less documentation of income . โ pay-option arms โ are alt-a securities 27 with borrowers that tend to pay the least amount of principal ( or increase their loan balance through negative amortization ) . separate discount rates are calculated for prime , alt-a and pay-option arm non-agency mbs securities using market-participant assumptions for risk , capital and return on equity . securities that management has the positive intent and ability to hold to maturity are classified as held-to-maturity and recorded at amortized cost . amortization of purchase premiums and accretion of discounts on securities are recorded as yield adjustments on such securities using the effective interest method . the specific identification method is used for purposes of determining cost in computing realized gains and losses on investment securities sold . at each reporting date , we monitor our available-for-sale and held-to-maturity securities for other-than-temporary impairment . the company measures its debt securities in an unrealized loss position at the end of the reporting period for other-than-temporary impairment by comparing the present value of the cash flows currently expected to be collected from the security with its amortized cost basis . if the calculated present value is lower than the amortized cost , the difference is the credit component of an other-than-temporary impairment of its debt securities . the excess of the present value over the fair value of the security ( if any ) is the noncredit component of the impairment , only if the company does not intend to sell the security and will not be required to sell the security before recovery of its amortized cost basis . the credit component of the other-than-temporary-impairment is recorded as a loss in earnings and the noncredit component is recorded as a charge to other comprehensive income , net of the related income tax benefit . for non-agency rmbs we determine the cash flow expected to be collected and calculate the present value for purposes of testing for other-than-temporary impairment , by utilizing the same industry-standard tool and the same cash flows as those calculated for fair values ( discussed above ) . we compute cash flows based upon the underlying mortgage loan pools and our estimates of prepayments , defaults , and loss severities . we input our projections for the underlying mortgages for the remaining life of the security to determine the expected cash flows . story_separator_special_tag provision for loan losses was $ 5.8 million for the fiscal year ended june 30 , 2011 and $ 5.8 million for fiscal 2010. the provisions are made to maintain our allowance for loan losses at levels which management believes to be adequate . the assessment of the adequacy of our allowance for loan losses is based upon a number of quantitative and qualitative factors , including levels and trends of past due and nonaccrual loans , loss history and changes in the volume and mix of loans and collateral values . see โ asset quality and allowance for loan loss โ for discussion of our allowance for loan loss and the related loss provisions . non-interest income . the following table sets forth information regarding our non-interest income : replace_table_token_25_th non-interest income totaled $ 8.0 million for the fiscal year ended june 30 , 2011 compared to non-interest income of $ 8.3 million for fiscal 2010. realized gains on securities decreased by $ 10.6 million in fiscal 2011 mainly from the slower selling of mortgage backed securities compared to fiscal 2010. the decrease of $ 6.2 million in unrealized loss on securities in fiscal 2011 was primarily the result of a decrease of $ 4.5 million in net other-than-temporary impairment ( otti ) loss offset by a fair value improvement of $ 1.7 million on collateralized debt obligations ( cdo 's ) . other activity included in total non-interest income is the increase in mortgage banking income in fiscal 2011 over fiscal 2010 of $ 3.0 million or 179.3 % , due to our increased focus on originating single family and multifamily loans for sale . increased prepayment penalty income of $ 1.0 million in fiscal 2011 was generally the result of specialty consumer loans . 34 non-interest expense . the following table sets forth information regarding our non-interest expense : replace_table_token_26_th non-interest expense totaled $ 26.5 million for the fiscal year ended june 30 , 2011 , an increase of $ 9.3 million compared to fiscal 2010. salaries , employee benefits and stock-based compensation increased $ 7.2 million in fiscal 2011 due to increased staffing . we grew to 173 employees at june 30 , 2011 , up from 90 at the end of fiscal 2010 , primarily due to growth in our lending businesses . professional services , which include accounting and legal fees , increased $ 0.6 million in fiscal 2011 compared to 2010. the increase in professional services was primarily due to contract underwriters , legal fees on loan collection and foreclosure matters . advertising and promotion expense increased $ 0.6 million , primarily due to increased reliance on third party efforts connected to the single family mortgages and an increase in multifamily advertising . fdic and ots regulatory fees increased by $ 0.5 million in fiscal 2011 , primarily due to the growth in deposits . real estate owned , repossessed rv losses and collection expenses decreased by $ 1.1 million due to the management and disposition of loan collateral . other general and administrative costs increased $ 0.7 million in fiscal 2011 relative to the increase in deposit and loan activity as well as the number of staff . income tax expense . income tax expense was $ 13.6 million for the fiscal year ended june 30 , 2011 compared to $ 14.8 million for fiscal 2010. our effective tax rates were 39.78 % and 41.11 % for the fiscal year ended june 30 , 2011 and 2010 , respectively . comparison of financial condition at june 30 , 2012 and june 30 , 2011 our total assets increased $ 446.7 million , or 23.0 % , to $ 2,386.8 million , as of june 30 , 2012 , up from $ 1,940.1 million at june 30 , 2011. the loan portfolio increased a net $ 395.5 million , primarily from portfolio loan originations of $ 732.8 million less principal repayments of $ 278.2 million . loans held for sale increased $ 59.1 million and investment securities decreased $ 38.3 million as principal repayments exceeded new security investments . total liabilities increased by $ 387.9 million or 21.6 % , to $ 2,180.2 million at june 30 , 2012 , up from $ 1,792.3 million at june 30 , 2011. the increase in total liabilities resulted primarily from growth in demand , savings and time deposits of $ 274.8 million and growth in fhlb borrowings of $ 117.0 million . stockholders ' equity increased by $ 58.8 million , or 39.8 % , to $ 206.6 million at june 30 , 2012 , up from $ 147.8 million at june 30 , 2011. the increase was primarily the result of $ 29.5 million in net income for the fiscal year , the net issuance of preferred stock of $ 19.5 million and the net issuance of common stock of $ 13.3 million . 35 asset quality and allowance for loan loss non-performing loans and foreclosed assets or โ non-performing assets โ consisted of the following : replace_table_token_27_th our non-performing assets decreased $ 0.9 million to $ 18.3 million or 0.77 % of assets at june 30 , 2012 compared to $ 19.2 million or 0.99 % of assets at june 30 , 2011. the decrease in non-performing assets during fiscal 2012 was composed of a decrease in foreclosed real estate and repossessed vehicles of $ 8.4 million , offset by an increase in non-performing loans of $ 7.5 million . the increase in non-performing assets during fiscal 2011 was composed of a decrease in non-performing loans of $ 2.1 million , offset by an increase in foreclosed real estate and repossessed vehicles of $ 6.9 million . the increase in non-performing loans as a percent of total loans is the result of one multifamily loan and 14 single family loans . foreclosed real estate and repossessed vehicles were reduced through the management and disposition of collateral . approximately 23.09 % of our non-performing
| liquidity and capital resources liquidity . our sources of liquidity include deposits , borrowings , payments and maturities of outstanding loans , sales of loans , maturities or gains on sales of investment securities and other short-term investments . while scheduled loan payments and maturing investment securities and short-term investments are relatively predictable sources of funds , deposit flows and loan prepayments are greatly influenced by general interest rates , economic conditions and competition . we generally invest excess funds in overnight deposits and other short-term interest-earning assets . we use cash generated through retail deposits , our largest funding source , to offset the cash utilized in lending and investing activities . our short-term interest-earning investment securities are also used to provide liquidity for lending and other operational requirements . as an additional source of funds , we have three credit agreements . bofi federal bank can borrow up to 40 % of its total assets from the fhlb . borrowings are collateralized by pledging certain mortgage loans and investment securities to the fhlb . based on loans and securities pledged at june 30 , 2012 , we had a total borrowing availability of approximately $ 873.6 million , of which $ 422.0 million was outstanding with $ 451.6 million available immediately and $ 38.1 million available with additional collateral . the bank can also borrow from the discount window at the frb . frb borrowings are collateralized by consumer loans and mortgage-backed securities pledged to the frb . based on loans and securities pledged at june 30 , 2012 , we had a total borrowing capacity of approximately $ 74.2 million , all of which was available for use . at june 30 , 2012 , we also had $ 20.0 million in unsecured fed funds purchase lines with two major banks under which there were no borrowings outstanding .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources liquidity . our sources of liquidity include deposits , borrowings , payments and maturities of outstanding loans , sales of loans , maturities or gains on sales of investment securities and other short-term investments . while scheduled loan payments and maturing investment securities and short-term investments are relatively predictable sources of funds , deposit flows and loan prepayments are greatly influenced by general interest rates , economic conditions and competition . we generally invest excess funds in overnight deposits and other short-term interest-earning assets . we use cash generated through retail deposits , our largest funding source , to offset the cash utilized in lending and investing activities . our short-term interest-earning investment securities are also used to provide liquidity for lending and other operational requirements . as an additional source of funds , we have three credit agreements . bofi federal bank can borrow up to 40 % of its total assets from the fhlb . borrowings are collateralized by pledging certain mortgage loans and investment securities to the fhlb . based on loans and securities pledged at june 30 , 2012 , we had a total borrowing availability of approximately $ 873.6 million , of which $ 422.0 million was outstanding with $ 451.6 million available immediately and $ 38.1 million available with additional collateral . the bank can also borrow from the discount window at the frb . frb borrowings are collateralized by consumer loans and mortgage-backed securities pledged to the frb . based on loans and securities pledged at june 30 , 2012 , we had a total borrowing capacity of approximately $ 74.2 million , all of which was available for use . at june 30 , 2012 , we also had $ 20.0 million in unsecured fed funds purchase lines with two major banks under which there were no borrowings outstanding .
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Suspicious Activity Report : ( see โ factors that may affect our performance . โ ) critical accounting policies the following discussion and analysis of our financial condition and results of operations is based upon our consolidated financial statements and the notes thereto , which have been prepared in accordance with accounting principles generally accepted in the united states of america . the preparation of these consolidated financial statements requires us to make a number of estimates and assumptions that affect the reported amounts and disclosures in the consolidated financial statements . on an ongoing basis , we evaluate our estimates and assumptions based upon historical experience and various factors and circumstances . we believe that our estimates and assumptions are reasonable under the circumstances . however , actual results may differ significantly from these estimates and assumptions that could have a material effect on the carrying value of assets and liabilities at the balance sheet dates and our results of operations for the reporting periods . securities . currently , we classify securities as either trading , available-for-sale or held-to-maturity . trading securities are those securities for which we have elected fair value accounting . trading securities are recorded at fair value with changes in fair value recorded in earnings each period . securities available-for-sale are reported at estimated fair value , with unrealized gains and losses , net of the related tax effects , excluded from operations and reported as a separate component of accumulated other comprehensive income or loss . the fair values of securities traded in active markets are obtained from market quotes . if quoted prices in active markets are not available , we determine the fair values by utilizing industry-standard tools to calculate the net present value of the expected cash flows available to the securities from the underlying mortgage assets . to determine the performance of the underlying mortgage loan pools , we consider where appropriate borrower prepayments , defaults , and loss severities based on a number of macroeconomic factors , including housing price changes , unemployment rates , interest rates and borrower attributes such as credit score and loan documentation at the time of origination . we input for each security our projections of monthly default rates , loss severity rates and voluntary prepayment rates for the underlying mortgages for the remaining life of the security to determine the expected cash flows . the projections of default rates are derived by the company from the historic default rate observed in the pool of loans collateralizing the security , increased by ( or decreased by ) the forecasted increase or decrease in the national unemployment rate . the projections of loss severity rates are derived by the company from the historic loss severity rate observed in the pool of loans , increased by ( or decreased by ) the forecasted decrease or increase in the national home price appreciation ( hpa ) index . to determine the discount rates used to compute the present value of the expected cash flows for these non-agency mbs securities , we separate the securities by the borrower characteristics in the underlying pool . for example , non-agency rmbs โ prime โ securities generally have borrowers with higher fico scores and better documentation of income . โ alt-a โ securities generally have borrowers with lower fico and less documentation of income . โ pay-option arms โ are alt-a securities 27 with borrowers that tend to pay the least amount of principal ( or increase their loan balance through negative amortization ) . separate discount rates are calculated for prime , alt-a and pay-option arm non-agency mbs securities using market-participant assumptions for risk , capital and return on equity . securities that management has the positive intent and ability to hold to maturity are classified as held-to-maturity and recorded at amortized cost . amortization of purchase premiums and accretion of discounts on securities are recorded as yield adjustments on such securities using the effective interest method . the specific identification method is used for purposes of determining cost in computing realized gains and losses on investment securities sold . at each reporting date , we monitor our available-for-sale and held-to-maturity securities for other-than-temporary impairment . the company measures its debt securities in an unrealized loss position at the end of the reporting period for other-than-temporary impairment by comparing the present value of the cash flows currently expected to be collected from the security with its amortized cost basis . if the calculated present value is lower than the amortized cost , the difference is the credit component of an other-than-temporary impairment of its debt securities . the excess of the present value over the fair value of the security ( if any ) is the noncredit component of the impairment , only if the company does not intend to sell the security and will not be required to sell the security before recovery of its amortized cost basis . the credit component of the other-than-temporary-impairment is recorded as a loss in earnings and the noncredit component is recorded as a charge to other comprehensive income , net of the related income tax benefit . for non-agency rmbs we determine the cash flow expected to be collected and calculate the present value for purposes of testing for other-than-temporary impairment , by utilizing the same industry-standard tool and the same cash flows as those calculated for fair values ( discussed above ) . we compute cash flows based upon the underlying mortgage loan pools and our estimates of prepayments , defaults , and loss severities . we input our projections for the underlying mortgages for the remaining life of the security to determine the expected cash flows . story_separator_special_tag provision for loan losses was $ 5.8 million for the fiscal year ended june 30 , 2011 and $ 5.8 million for fiscal 2010. the provisions are made to maintain our allowance for loan losses at levels which management believes to be adequate . the assessment of the adequacy of our allowance for loan losses is based upon a number of quantitative and qualitative factors , including levels and trends of past due and nonaccrual loans , loss history and changes in the volume and mix of loans and collateral values . see โ asset quality and allowance for loan loss โ for discussion of our allowance for loan loss and the related loss provisions . non-interest income . the following table sets forth information regarding our non-interest income : replace_table_token_25_th non-interest income totaled $ 8.0 million for the fiscal year ended june 30 , 2011 compared to non-interest income of $ 8.3 million for fiscal 2010. realized gains on securities decreased by $ 10.6 million in fiscal 2011 mainly from the slower selling of mortgage backed securities compared to fiscal 2010. the decrease of $ 6.2 million in unrealized loss on securities in fiscal 2011 was primarily the result of a decrease of $ 4.5 million in net other-than-temporary impairment ( otti ) loss offset by a fair value improvement of $ 1.7 million on collateralized debt obligations ( cdo 's ) . other activity included in total non-interest income is the increase in mortgage banking income in fiscal 2011 over fiscal 2010 of $ 3.0 million or 179.3 % , due to our increased focus on originating single family and multifamily loans for sale . increased prepayment penalty income of $ 1.0 million in fiscal 2011 was generally the result of specialty consumer loans . 34 non-interest expense . the following table sets forth information regarding our non-interest expense : replace_table_token_26_th non-interest expense totaled $ 26.5 million for the fiscal year ended june 30 , 2011 , an increase of $ 9.3 million compared to fiscal 2010. salaries , employee benefits and stock-based compensation increased $ 7.2 million in fiscal 2011 due to increased staffing . we grew to 173 employees at june 30 , 2011 , up from 90 at the end of fiscal 2010 , primarily due to growth in our lending businesses . professional services , which include accounting and legal fees , increased $ 0.6 million in fiscal 2011 compared to 2010. the increase in professional services was primarily due to contract underwriters , legal fees on loan collection and foreclosure matters . advertising and promotion expense increased $ 0.6 million , primarily due to increased reliance on third party efforts connected to the single family mortgages and an increase in multifamily advertising . fdic and ots regulatory fees increased by $ 0.5 million in fiscal 2011 , primarily due to the growth in deposits . real estate owned , repossessed rv losses and collection expenses decreased by $ 1.1 million due to the management and disposition of loan collateral . other general and administrative costs increased $ 0.7 million in fiscal 2011 relative to the increase in deposit and loan activity as well as the number of staff . income tax expense . income tax expense was $ 13.6 million for the fiscal year ended june 30 , 2011 compared to $ 14.8 million for fiscal 2010. our effective tax rates were 39.78 % and 41.11 % for the fiscal year ended june 30 , 2011 and 2010 , respectively . comparison of financial condition at june 30 , 2012 and june 30 , 2011 our total assets increased $ 446.7 million , or 23.0 % , to $ 2,386.8 million , as of june 30 , 2012 , up from $ 1,940.1 million at june 30 , 2011. the loan portfolio increased a net $ 395.5 million , primarily from portfolio loan originations of $ 732.8 million less principal repayments of $ 278.2 million . loans held for sale increased $ 59.1 million and investment securities decreased $ 38.3 million as principal repayments exceeded new security investments . total liabilities increased by $ 387.9 million or 21.6 % , to $ 2,180.2 million at june 30 , 2012 , up from $ 1,792.3 million at june 30 , 2011. the increase in total liabilities resulted primarily from growth in demand , savings and time deposits of $ 274.8 million and growth in fhlb borrowings of $ 117.0 million . stockholders ' equity increased by $ 58.8 million , or 39.8 % , to $ 206.6 million at june 30 , 2012 , up from $ 147.8 million at june 30 , 2011. the increase was primarily the result of $ 29.5 million in net income for the fiscal year , the net issuance of preferred stock of $ 19.5 million and the net issuance of common stock of $ 13.3 million . 35 asset quality and allowance for loan loss non-performing loans and foreclosed assets or โ non-performing assets โ consisted of the following : replace_table_token_27_th our non-performing assets decreased $ 0.9 million to $ 18.3 million or 0.77 % of assets at june 30 , 2012 compared to $ 19.2 million or 0.99 % of assets at june 30 , 2011. the decrease in non-performing assets during fiscal 2012 was composed of a decrease in foreclosed real estate and repossessed vehicles of $ 8.4 million , offset by an increase in non-performing loans of $ 7.5 million . the increase in non-performing assets during fiscal 2011 was composed of a decrease in non-performing loans of $ 2.1 million , offset by an increase in foreclosed real estate and repossessed vehicles of $ 6.9 million . the increase in non-performing loans as a percent of total loans is the result of one multifamily loan and 14 single family loans . foreclosed real estate and repossessed vehicles were reduced through the management and disposition of collateral . approximately 23.09 % of our non-performing
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2,569 | our 2010 results reflect a $ 414 thousand one-time charge related to the demolition of our 149 room motor lodge in the fourth quarter of 2010. the quality of the rooms of the motor lodge was no longer consistent with the higher standards of our upgraded facilities . we converted the motor lodge to paved surface parking right next to the atlantis . the factors described above were the primary drivers of : ยท decreases of 2.5 % and 1.5 % in our casino and hotel revenues , respectively ; ยท increases of 4.8 % and 1.5 % in our food and beverage and other revenues , respectively ; ยท a 30.4 % decrease in income from operations ; ยท a decrease in our 2011 operating margin of 3.0 points or 29.7 % . capital spending and development we seek to continuously upgrade and maintain the atlantis facility in order to present a fresh , high quality product to our guests . in january 2009 , we completed the final phase of a multi-phase expansion project with the opening of the new spa atlantis featuring an atmosphere , amenities and treatments that are unique from any other offering in our market . additionally , many of the pre-expansion areas of the atlantis were remodeled to be consistent with the upgraded look and feel of the new facilities . from inception of the project in 2007 through the completion date in january 2009 , the company incurred approximately $ 80 million related to these capital projects . with the opening of the skywalk the atlantis became the only hotel-casino to be physically connected to the reno-sparks convention center . the reno-sparks convention center offers approximately 500,000 square feet of leasable exhibition , meeting room , ballroom and lobby space . our capital expenditures were $ 17.4 million in 2011 , $ 6.8 million in 2010 , and $ 15.8 million in 2009. during 2009 capital expenditures primarily consisted of construction costs associated with the expansion , skybridge and redesign capital projects that commenced in june 2007. during 2009 we also spent approximately $ 5.2 million to acquire two additional land parcels with buildings within close proximity to the atlantis ( see additional discussion of these parcels below under ยpropertiesย in item 2 ) . capital expenditures in 2010 and 2011 were for various general facility improvements and for purchase of additional gaming equipment at the atlantis . during 2011 , we also acquired a 1.5 acre land parcel in black hawk , colorado for $ 8.4 million and paid a $ 3.8 million deposit related to the acquisition of the riviera black hawk casino . the land parcel is contiguous to the riviera black hawk casino . on september 29 , 2011 monarch entered an agreement to purchase riviera black hawk , inc. ( see ยthe acquisitionย below ) . future cash needed to finance ongoing capital expenditures , and close the acquisition transaction ( see ยthe acquisitionย below ) , is expected to be available from operating cash flow , the credit facility ( see ยthe credit facilityย below ) and , if necessary , additional borrowings . 25 critical accounting policies and estimates we prepare our consolidated financial statements in conformity with accounting principles generally accepted in the united states . certain of our policies , including the estimated useful lives assigned to our assets , the determination of the allowance for doubtful accounts , self-insurance reserves , the calculation of income tax liabilities and the calculation of share-based compensation , require that we apply significant judgment in defining the appropriate assumptions for calculating financial estimates . by their nature , these judgments are subject to an inherent degree of uncertainty . our judgments are based on historical experience , terms of existing contracts , observation of trends in the industry , information provided by customers and information available from other outside sources , as appropriate . there can be no assurance that actual results will not differ from our estimates . to provide an understanding of the methodologies applied , our significant accounting policies are discussed where appropriate in this discussion and analysis and in the notes to consolidated financial statements . the consolidated financial statements include the accounts of monarch , golden road , high desert , golden north , and monarch growth . intercompany balances and transactions are eliminated . allowance for doubtful accounts the company extends short-term credit to its gaming customers . such credit is non-interest bearing and is due on demand . in addition , the company also has receivables due from hotel guests which are primarily secured with a credit card at the time a customer checks in . an allowance for doubtful accounts is set up for all company receivables based upon the company 's historical collection and write-off experience , unless situations warrant a specific identification of a necessary reserve related to certain receivables . the company charges off its uncollectible receivables once all efforts have been made to collect such receivables . the book value of receivables approximates fair value due to the short-term nature of the receivables . self-insurance reserves we are currently self-insured up to certain stop loss amounts for workers ' compensation and certain medical benefit costs provided to our employees . the company reviews self-insurance reserves at least quarterly . the reserve is determined by reviewing the actual expenditures for the previous twelve-month period and reports prepared by the third party plan administrator for any significant unpaid claims . the reserve is an amount estimated to pay both reported and unreported claims as of the balance sheet date . we believe changes in medical costs , trends in claims of our employee base , accident frequency and severity and other factors could materially affect the estimate for this reserve . story_separator_special_tag we may prepay borrowings under the new credit facility without penalty ( subject to certain charges applicable to the prepayment of libor borrowings prior to the end of the applicable interest period ) . amounts prepaid may be reborrowed so long as the total borrowings outstanding do not exceed the maximum principal available . we paid various one-time fees and other loan costs upon the closing of the refinancing of the new credit facility that are amortized over the facility 's term using the straight-line method which approximates the effective interest method . at december 31 , 2011 , we had $ 24.7 million outstanding under the new credit facility , none of which was classified as short-term debt . short-term debt represents the difference between the amount outstanding at december 31 , 2011 and the maximum principal allowed under the new credit facility on december 31 , 2012. the interest rate under our credit facility is libor , or a base rate ( as defined in the new credit facility agreement ) , plus an interest rate margin ranging from 1.25 % to 2.50 % depending on our leverage ratio . the interest rate is adjusted quarterly based on our leverage ratio calculated using operating results over the previous four quarters and borrowings at the end of the most recent quarter . at december 31 , 2011 pricing was set at the opening pricing point of libor plus 2.250 % and will be 32 adjusted in subsequent quarters in accordance with our leverage ratio . at december 31 , 2011 , the one-month libor rate was 0.29 % . the acquisition on september 29 , 2011 , monarch entered into a definitive stock purchase agreement ( the ยagreementย ) with riviera operating corporation , a nevada corporation , riviera holdings corporation , a nevada corporation ( collectively the ยsellerย and together with monarch , the ยpartiesย ) and riviera black hawk , inc. , a colorado corporation ( ยriviera black hawkย ) . pursuant to the agreement , the seller agreed to sell all of the issued and outstanding shares of common stock of riviera black hawk to monarch . monarch will pay $ 76 million ( the ยpurchase priceย ) , subject to certain post-closing working capital adjustments . at closing , seller will pay substantially all of riviera black hawk 's indebtedness and will leave at least $ 2.1 million of net working capital comprised of at least $ 2.1 million of cash . the closing of the transaction contemplated by the agreement ( the ยclosing ) is subject to the satisfaction or waiver of certain conditions , including , without limitation , ( i ) the approval of the transaction by the colorado limited gaming commission , ( ii ) the issuance of required licenses to monarch , and certain monarch management , from the colorado gaming commission , ( iii ) the absence of the occurrence of a material adverse effect on riviera black hawk between the date of the agreement and the closing of the transaction ( iv ) the receipt of certain consents , approvals or authorizations required to consummate the transaction contemplated by the agreement and other licenses and permits required to operate riviera black hawk , ( v ) certain materiality exceptions , the accuracy of the representations and warranties made by monarch and seller , respectively , ( vi ) compliance with the parties respective obligations under the agreement , ( vii ) the expiration or termination of the waiting period under the hart-scott-rodino antitrust improvements act of 1976 , as amended and ( viii ) other customary closing conditions . the transaction is not subject to a financing or due diligence condition . in accordance with the agreement , monarch made a non-refundable ( except under certain conditions ) deposit of $ 3.8 million ( the ยdepositย ) which will be credited against the purchase price upon the closing . upon closing , monarch is also obligated to pay a $ 1.25 million success fee to its financial advisor . in addition to certain other termination rights , the agreement may be terminated by either monarch or the seller if the closing has not occurred by the last day of the calendar month of the date that is nine months after the date of the agreement ( the ยoutside dateย ) . monarch may extend the outside date to twelve months by increasing the deposit by $ 500,000. the parties have made certain representations and warranties in the agreement , including , without limitation , representations and warranties regarding the condition of the assets and liabilities of riviera black hawk , as applicable , pursuant to the agreement and the availability of funds to consummate the transaction . additionally , the parties have agreed to certain covenants , including , without limitation , covenants governing the operation of riviera black hawk prior to the closing and certain matters post-closing . pursuant to the terms of the agreement , in addition to monarch 's indemnification obligations , the seller has agreed to limited indemnification for losses incurred or sustained due to actions arising out of the agreement and the transaction contemplated thereby . statement on forward looking information certain information included herein contains statements that may be considered forward-looking , such as statements relating to projections of future results of operations or financial condition , expectations for our casino and expectations of the continued availability of capital resources . any forward-looking statement made by us necessarily is based upon a number of estimates and assumptions that , while considered reasonable by us , is inherently subject to significant business , economic and competitive uncertainties and contingencies , many of which are beyond our control , and are subject to 33 change . actual results of our operations may vary materially from any forward-looking statement made by us or on our behalf . forward-looking statements should not be regarded as representation
| liquidity and capital resources for the year ended december 31 , 2011 , net cash provided by operating activities totaled $ 22.6 million , a decrease of approximately $ 3.4 million , or 13.1 % , compared to the same period last year . this decrease was primarily related to lower net income , lower accounts payable , lower accrued expenses , lower deferred income taxes , higher depreciation and amortization related to the capitalization of our capital projects ( see ยcapital spending and developmentย above ) , lower share based compensation , lower provision for bad debts , higher inventories , higher prepaid expenses , and higher loss on disposal of assets in 2011 compared to 2010. net cash used in investing activities totaled $ 17.4 million and $ 6.8 million in the years ended december 31 , 2011 and 2010 , respectively . during 2011 , net cash used in investing activities consisted primarily of $ 8.4 million for the acquisition of a land parcel in black hawk , colorado contiguous to the riviera black hawk casino , a $ 3.8 million acquisition deposit related to the acquisition agreement for riviera black hawk , inc. , and capital expenditures for various general facility improvements and for purchase of additional gaming equipment . net cash used in investing activities during 2010 consisted primarily of capital expenditures for various general facility improvements and for purchase of additional gaming equipment . net cash used in financing activities of $ 5.4 million and $ 19.8 million during 2011 and 2010 , respectively , primarily represent net payments of our credit facility ( see ยthe credit facilityย below ) and loan issuance costs related to refinancing the previous credit facility .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources for the year ended december 31 , 2011 , net cash provided by operating activities totaled $ 22.6 million , a decrease of approximately $ 3.4 million , or 13.1 % , compared to the same period last year . this decrease was primarily related to lower net income , lower accounts payable , lower accrued expenses , lower deferred income taxes , higher depreciation and amortization related to the capitalization of our capital projects ( see ยcapital spending and developmentย above ) , lower share based compensation , lower provision for bad debts , higher inventories , higher prepaid expenses , and higher loss on disposal of assets in 2011 compared to 2010. net cash used in investing activities totaled $ 17.4 million and $ 6.8 million in the years ended december 31 , 2011 and 2010 , respectively . during 2011 , net cash used in investing activities consisted primarily of $ 8.4 million for the acquisition of a land parcel in black hawk , colorado contiguous to the riviera black hawk casino , a $ 3.8 million acquisition deposit related to the acquisition agreement for riviera black hawk , inc. , and capital expenditures for various general facility improvements and for purchase of additional gaming equipment . net cash used in investing activities during 2010 consisted primarily of capital expenditures for various general facility improvements and for purchase of additional gaming equipment . net cash used in financing activities of $ 5.4 million and $ 19.8 million during 2011 and 2010 , respectively , primarily represent net payments of our credit facility ( see ยthe credit facilityย below ) and loan issuance costs related to refinancing the previous credit facility .
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Suspicious Activity Report : our 2010 results reflect a $ 414 thousand one-time charge related to the demolition of our 149 room motor lodge in the fourth quarter of 2010. the quality of the rooms of the motor lodge was no longer consistent with the higher standards of our upgraded facilities . we converted the motor lodge to paved surface parking right next to the atlantis . the factors described above were the primary drivers of : ยท decreases of 2.5 % and 1.5 % in our casino and hotel revenues , respectively ; ยท increases of 4.8 % and 1.5 % in our food and beverage and other revenues , respectively ; ยท a 30.4 % decrease in income from operations ; ยท a decrease in our 2011 operating margin of 3.0 points or 29.7 % . capital spending and development we seek to continuously upgrade and maintain the atlantis facility in order to present a fresh , high quality product to our guests . in january 2009 , we completed the final phase of a multi-phase expansion project with the opening of the new spa atlantis featuring an atmosphere , amenities and treatments that are unique from any other offering in our market . additionally , many of the pre-expansion areas of the atlantis were remodeled to be consistent with the upgraded look and feel of the new facilities . from inception of the project in 2007 through the completion date in january 2009 , the company incurred approximately $ 80 million related to these capital projects . with the opening of the skywalk the atlantis became the only hotel-casino to be physically connected to the reno-sparks convention center . the reno-sparks convention center offers approximately 500,000 square feet of leasable exhibition , meeting room , ballroom and lobby space . our capital expenditures were $ 17.4 million in 2011 , $ 6.8 million in 2010 , and $ 15.8 million in 2009. during 2009 capital expenditures primarily consisted of construction costs associated with the expansion , skybridge and redesign capital projects that commenced in june 2007. during 2009 we also spent approximately $ 5.2 million to acquire two additional land parcels with buildings within close proximity to the atlantis ( see additional discussion of these parcels below under ยpropertiesย in item 2 ) . capital expenditures in 2010 and 2011 were for various general facility improvements and for purchase of additional gaming equipment at the atlantis . during 2011 , we also acquired a 1.5 acre land parcel in black hawk , colorado for $ 8.4 million and paid a $ 3.8 million deposit related to the acquisition of the riviera black hawk casino . the land parcel is contiguous to the riviera black hawk casino . on september 29 , 2011 monarch entered an agreement to purchase riviera black hawk , inc. ( see ยthe acquisitionย below ) . future cash needed to finance ongoing capital expenditures , and close the acquisition transaction ( see ยthe acquisitionย below ) , is expected to be available from operating cash flow , the credit facility ( see ยthe credit facilityย below ) and , if necessary , additional borrowings . 25 critical accounting policies and estimates we prepare our consolidated financial statements in conformity with accounting principles generally accepted in the united states . certain of our policies , including the estimated useful lives assigned to our assets , the determination of the allowance for doubtful accounts , self-insurance reserves , the calculation of income tax liabilities and the calculation of share-based compensation , require that we apply significant judgment in defining the appropriate assumptions for calculating financial estimates . by their nature , these judgments are subject to an inherent degree of uncertainty . our judgments are based on historical experience , terms of existing contracts , observation of trends in the industry , information provided by customers and information available from other outside sources , as appropriate . there can be no assurance that actual results will not differ from our estimates . to provide an understanding of the methodologies applied , our significant accounting policies are discussed where appropriate in this discussion and analysis and in the notes to consolidated financial statements . the consolidated financial statements include the accounts of monarch , golden road , high desert , golden north , and monarch growth . intercompany balances and transactions are eliminated . allowance for doubtful accounts the company extends short-term credit to its gaming customers . such credit is non-interest bearing and is due on demand . in addition , the company also has receivables due from hotel guests which are primarily secured with a credit card at the time a customer checks in . an allowance for doubtful accounts is set up for all company receivables based upon the company 's historical collection and write-off experience , unless situations warrant a specific identification of a necessary reserve related to certain receivables . the company charges off its uncollectible receivables once all efforts have been made to collect such receivables . the book value of receivables approximates fair value due to the short-term nature of the receivables . self-insurance reserves we are currently self-insured up to certain stop loss amounts for workers ' compensation and certain medical benefit costs provided to our employees . the company reviews self-insurance reserves at least quarterly . the reserve is determined by reviewing the actual expenditures for the previous twelve-month period and reports prepared by the third party plan administrator for any significant unpaid claims . the reserve is an amount estimated to pay both reported and unreported claims as of the balance sheet date . we believe changes in medical costs , trends in claims of our employee base , accident frequency and severity and other factors could materially affect the estimate for this reserve . story_separator_special_tag we may prepay borrowings under the new credit facility without penalty ( subject to certain charges applicable to the prepayment of libor borrowings prior to the end of the applicable interest period ) . amounts prepaid may be reborrowed so long as the total borrowings outstanding do not exceed the maximum principal available . we paid various one-time fees and other loan costs upon the closing of the refinancing of the new credit facility that are amortized over the facility 's term using the straight-line method which approximates the effective interest method . at december 31 , 2011 , we had $ 24.7 million outstanding under the new credit facility , none of which was classified as short-term debt . short-term debt represents the difference between the amount outstanding at december 31 , 2011 and the maximum principal allowed under the new credit facility on december 31 , 2012. the interest rate under our credit facility is libor , or a base rate ( as defined in the new credit facility agreement ) , plus an interest rate margin ranging from 1.25 % to 2.50 % depending on our leverage ratio . the interest rate is adjusted quarterly based on our leverage ratio calculated using operating results over the previous four quarters and borrowings at the end of the most recent quarter . at december 31 , 2011 pricing was set at the opening pricing point of libor plus 2.250 % and will be 32 adjusted in subsequent quarters in accordance with our leverage ratio . at december 31 , 2011 , the one-month libor rate was 0.29 % . the acquisition on september 29 , 2011 , monarch entered into a definitive stock purchase agreement ( the ยagreementย ) with riviera operating corporation , a nevada corporation , riviera holdings corporation , a nevada corporation ( collectively the ยsellerย and together with monarch , the ยpartiesย ) and riviera black hawk , inc. , a colorado corporation ( ยriviera black hawkย ) . pursuant to the agreement , the seller agreed to sell all of the issued and outstanding shares of common stock of riviera black hawk to monarch . monarch will pay $ 76 million ( the ยpurchase priceย ) , subject to certain post-closing working capital adjustments . at closing , seller will pay substantially all of riviera black hawk 's indebtedness and will leave at least $ 2.1 million of net working capital comprised of at least $ 2.1 million of cash . the closing of the transaction contemplated by the agreement ( the ยclosing ) is subject to the satisfaction or waiver of certain conditions , including , without limitation , ( i ) the approval of the transaction by the colorado limited gaming commission , ( ii ) the issuance of required licenses to monarch , and certain monarch management , from the colorado gaming commission , ( iii ) the absence of the occurrence of a material adverse effect on riviera black hawk between the date of the agreement and the closing of the transaction ( iv ) the receipt of certain consents , approvals or authorizations required to consummate the transaction contemplated by the agreement and other licenses and permits required to operate riviera black hawk , ( v ) certain materiality exceptions , the accuracy of the representations and warranties made by monarch and seller , respectively , ( vi ) compliance with the parties respective obligations under the agreement , ( vii ) the expiration or termination of the waiting period under the hart-scott-rodino antitrust improvements act of 1976 , as amended and ( viii ) other customary closing conditions . the transaction is not subject to a financing or due diligence condition . in accordance with the agreement , monarch made a non-refundable ( except under certain conditions ) deposit of $ 3.8 million ( the ยdepositย ) which will be credited against the purchase price upon the closing . upon closing , monarch is also obligated to pay a $ 1.25 million success fee to its financial advisor . in addition to certain other termination rights , the agreement may be terminated by either monarch or the seller if the closing has not occurred by the last day of the calendar month of the date that is nine months after the date of the agreement ( the ยoutside dateย ) . monarch may extend the outside date to twelve months by increasing the deposit by $ 500,000. the parties have made certain representations and warranties in the agreement , including , without limitation , representations and warranties regarding the condition of the assets and liabilities of riviera black hawk , as applicable , pursuant to the agreement and the availability of funds to consummate the transaction . additionally , the parties have agreed to certain covenants , including , without limitation , covenants governing the operation of riviera black hawk prior to the closing and certain matters post-closing . pursuant to the terms of the agreement , in addition to monarch 's indemnification obligations , the seller has agreed to limited indemnification for losses incurred or sustained due to actions arising out of the agreement and the transaction contemplated thereby . statement on forward looking information certain information included herein contains statements that may be considered forward-looking , such as statements relating to projections of future results of operations or financial condition , expectations for our casino and expectations of the continued availability of capital resources . any forward-looking statement made by us necessarily is based upon a number of estimates and assumptions that , while considered reasonable by us , is inherently subject to significant business , economic and competitive uncertainties and contingencies , many of which are beyond our control , and are subject to 33 change . actual results of our operations may vary materially from any forward-looking statement made by us or on our behalf . forward-looking statements should not be regarded as representation
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2,570 | the sales growth in brazil is a result of increasing demand for franklin submersible pumps and motors , customer acceptance of the many product line upgrades that have been implemented over the past two years , and general market conditions . new distribution outlets in chile and colombia contributed to significantly increased sales in these markets compared to 2013. these sales increases were partially offset with lower sales in argentina . water systems sales in the middle east and africa were about 11 percent of consolidated sales and increased by about 2 percent compared to 2013. water systems sales in the middle east and africa were reduced by $ 11.3 million or about 10 13 percent in the year due to foreign currency translation . excluding acquisitions and the impact of foreign currency translation , sales were up about 11 percent compared to 2013. the growth was driven by strong sales of groundwater pumping equipment in turkey . water systems sales in europe were about 8 percent of consolidated sales and grew by about 11 percent compared to the prior year . acquisition related sales during 2014 were about 2 percent in europe . foreign currency translation rate changes decreased sales by about 1 percent compared to sales in 2013. excluding acquisitions and foreign currency translation , european sales grew by about 10 percent during 2014. sales improvements in europe included growth in both groundwater pumping equipment and pioneer products . water systems sales in the asia pacific region were 7 percent of consolidated sales and grew by about 11 percent compared to the prior year . acquisition related sales during 2014 increased sales by about 7 percent in asia pacific . foreign currency translation rate changes decreased sales in 2014 in the asia pacific region by about 2 percent . excluding acquisitions and foreign currency translation sales grew by about 7 percent during 2014. sales in australia grew by about 28 percent led by improved pioneer product sales in the region and aided in part by the launch of the new solar powered water well pumping system . sales in taiwan and southeast asia grew by about 5 percent compared to the prior year , as the company continues to benefit from the improved customer service levels attributable to a new distribution center in singapore . these sales increases were partially offset by smaller declines in sales in japan and china . net sales-fueling systems fueling systems sales which represented 21 percent of consolidated sales were $ 223.2 million in 2014 , an increase of $ 24.1 million or about 12 percent versus 2013. the incremental impact of sales from acquired businesses was $ 0.1 million . foreign currency translation rate changes increased sales $ 0.7 million compared to sales in 2013. the sales change in 2014 , excluding acquisitions and foreign currency translation , was an increase of $ 23.3 million or about 12 percent . this growth was led by sales increases in developing markets , which grew by 15 percent compared to the prior year , as customers outside north america continue to invest in the company 's pressure pumping systems for transferring gasoline from underground tanks . as well , adoption of the company 's electronic fuel management products is increasing among international customers . fueling systems sales in more developed markets ; like the u.s. , canada and europe grew by about 11 percent compared to prior year . cost of sales cost of sales as a percent of net sales for 2014 and 2013 was 67.1 percent and 65.7 percent , respectively . correspondingly , the gross profit margin decreased to 32.9 percent from 34.3 percent , a 140 basis point decline . the gross profit margin change was due primarily to a sales revenue mix shift in the water systems segment , as groundwater pumping system sales have declined and surface pumping equipment system sales have increased , contributing significantly to lower gross profit margins in 2014. direct materials as a percentage of sales was 46.4 percent up 200 basis points compared to 44.4 percent last year . this increase in direct materials was partially offset by lower labor and burden costs . the company 's consolidated gross profit was $ 344.4 million for 2014 , up $ 12.9 million or 4 percent from 2013. selling , general and administrative ( โ sg & a โ ) selling , general , and administrative ( sg & a ) expenses were $ 227.7 million in 2014 and increased by $ 23.7 million or about 12 percent in 2014 compared to last year . in 2014 , increases in sg & a attributable to acquisitions were about $ 6 million or about 3 percent . additional year over year changes in sg & a costs were increases in marketing and selling-related expenses attributable to sales volume and higher research , development , and engineering expenses . restructuring expenses restructuring expenses for 2014 were $ 16.6 million and reduced diluted earnings per share by approximately $ 0.24. restructuring expenses in 2014 included severance costs , equipment relocation expenses , asset write-downs and primarily related to the closure of the wittlich , germany facility and other european manufacturing realignment activities . there were $ 3.7 million of restructuring expenses in 2013. operating income operating income was $ 100.1 million in 2014 , down $ 23.7 million from $ 123.8 million in 2013 . 14 replace_table_token_8_th there were specific items in 2014 and 2013 that impacted operating income that were not operational in nature . in 2014 they were as follows : there were $ 16.6 million of restructuring charges . restructuring expenses in 2014 were $ 14.7 million in severance cost , $ 1.7 million expenses related to equipment transfers , freight and other relocation costs and $ 0.2 million in asset write-offs primarily related to the transfer of production activities from germany to the czech republic and other continued manufacturing realignments . $ 3.2 story_separator_special_tag these initiatives include the startup of a pump rental business in the united kingdom , opening four new distribution centers in developing regions , sales and marketing costs for the new artificial lift product line and the rollout of the franklin control systems high horsepower drive and control products through the u.s. water systems distribution channel . operating income-fueling systems fueling systems operating income after non-gaap adjustments was $ 42.3 million in 2013 compared to $ 37.0 million after non-gaap adjustments in 2012 , an increase of 14 percent . the 2013 operating income margin after non-gaap adjustments was 21.2 percent and increased by 20 basis points compared to the 21.0 percent of net sales in 2012. this increased profitability was the result of operating leverage . operating income-other operating income-other is composed primarily of unallocated general and administrative expenses . general and administrative expenses were higher due to increases related to information technology expenditures for software , telephone and other erp integration costs as well as higher performance based and stock based compensation expenses . interest expense interest expense for 2013 and 2012 was $ 10.6 million and $ 10.2 million , respectively . other income or expense other income or expense was a gain of $ 1.7 million in 2013 and a gain of $ 14.9 million in 2012. included in other income or 21 expense in 2013 was interest income of $ 1.8 million , primarily derived from the investment of cash balances in short-term securities . included in other income in 2012 was a one-time gain on the pioneer transaction worth $ 12.2 million . the gain on the original investment the company held in pioneer arose as a the result of a new enterprise valuation of the pioneer entity compared to the book value of franklin electric 's equity investment in pioneer . also included in other income in 2013 was income from equity investments of $ 0.6 million and interest income of $ 2.3 million , primarily derived from the investment of cash balances in short-term securities . foreign exchange foreign currency-based transactions produced a loss for 2013 of $ 3.3 million , primarily due to the turkish lira , the euro , south african rand , brazilian real and canadian dollar relative to the u.s. dollar , none of which individually were significant . foreign currency-based transactions produced a loss for 2012 of $ 1.7 million , primarily due to the mexican peso , the euro , south african rand , brazilian real and czech koruna relative to the u.s. dollar , none of which individually were significant income taxes the provision for income taxes in 2013 and 2012 was $ 28.9 million and $ 32.2 million , respectively . the tax rate for 2013 was 25.9 percent and 2012 was 27.8 percent . the projected tax rate may differ from the statutory rate primarily due to the indefinite reinvestment of foreign earnings taxed at rates below the u.s. statutory rate as well as recognition of foreign tax credits . the company has the ability to indefinitely reinvest these foreign earnings based on the earnings and cash projections of its other operations as well as cash on hand and available credit . net income net income for 2013 was $ 82.7 million compared to 2012 net income of $ 83.7 million . net income attributable to franklin electric co. , inc. for 2013 was $ 82.0 million , or $ 1.68 per diluted share , compared to 2012 net income attributable to franklin electric co. , inc. of $ 82.9 million or $ 1.73 per diluted share . net income attributable to franklin electric co. , inc. after non-gaap adjustments for 2013 was $ 82.9 million , or $ 1.72 per diluted share , compared to 2012 net income attributable to franklin electric co. , inc. after non-gaap adjustments of $ 74.7 million or $ 1.57 per diluted share . there were specific items in 2013 and 2012 that impacted net income attributable to franklin electric co. , inc. that were not operational in nature . the company refers to these items as โ non-gaap adjustments โ for purposes of presenting the non-gaap financial measures of net income attributable to franklin electric co. , inc. and adjusted eps . the company believes this information helps investors understand underlying trends in the company 's business more easily . the differences between these non-gaap financial measures and the most comparable gaap measures are reconciled in the following tables : 22 replace_table_token_15_th replace_table_token_16_th story_separator_special_tag style= `` text-align : center ; `` > 24 consideration of $ 5.6 million to impo . in addition to the project bonds , the company refinanced the impo debt for $ 14.2 million and borrowed from and repaid on the revolver $ 17.0 million . in addition , the company completed the repurchase of 88,200 shares of the company 's common stock for $ 2.8 million pursuant to the company 's stock repurchase program , and received $ 9.6 million from employees as payment for the exercise price of their stock options and taxes owed upon the exercise of their stock options and release of their restricted awards . dividends in the amount of $ 15.3 million were paid to shareholders . during 2012 , the company completed the repurchase of 400,000 shares of the company 's common stock for $ 10.0 million pursuant to the company 's stock repurchase program . dividends in the amount of $ 13.8 million were paid to shareholders . at least annually the dividend policy is reviewed , and the company attempts to purchase shares annually to offset dilution of equity awards , but market conditions may prompt a perceived more efficient alternate use of cash . the company in recent history has not looked to the public capital markets for financing , and under current circumstances the company does not foresee a need to do so in the near future . aggregate contractual obligations
| capital resources and liquidity overview the company 's primary sources of liquidity are cash on hand , cash flows from operations and long-term debt funds available . on december 31 , 2012 , the company , allen county , indiana , and certain institutional investors entered into a bond purchase and loan agreement . under the agreement , allen county , indiana issued a series of project bonds entitled โ taxable economic development bonds , series 2012 ( franklin electric co. , inc. project ) . โ the aggregate principal amount of the project bonds issued and authenticated was limited to $ 25.0 million . interest and principal balance of the project bonds are due and payable by the company directly to the institutional investors in aggregate semi-annual installments commencing on july 10 , 2013 , and concluding on january 10 , 2033. the company also has an amended and restated uncommitted note purchase and private shelf agreement ( the โ prudential agreement โ ) in the amount of $ 200.0 million , with $ 150.0 million of notes issued thereunder . the company has scheduled principal payments beginning in 2015 under the prudential agreement , at which time it amortizes for 5 years at an amount of 23 $ 30.0 million per year . as of january 3 , 2015 , the company had $ 50.0 million borrowing capacity under the prudential agreement . in addition , the company has a committed , unsecured , revolving credit agreement maturing on december 14 , 2016 ( the โ agreement โ ) in the amount of $ 150.0 million . as of january 3 , 2015 , the company had $ 144.9 million borrowing capacity under the agreement as $ 5.1 million in letters of commercial and standby letters of credit were outstanding and undrawn . there were no other outstanding borrowings as of january 3 , 2015 on the agreement . the agreement , the prudential agreement , and the project bonds contain customary affirmative and negative covenants . the affirmative covenants relate to financial statements , notices of material events , conduct of business , inspection of property , maintenance of insurance , compliance with laws , and most favored lender obligations .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```capital resources and liquidity overview the company 's primary sources of liquidity are cash on hand , cash flows from operations and long-term debt funds available . on december 31 , 2012 , the company , allen county , indiana , and certain institutional investors entered into a bond purchase and loan agreement . under the agreement , allen county , indiana issued a series of project bonds entitled โ taxable economic development bonds , series 2012 ( franklin electric co. , inc. project ) . โ the aggregate principal amount of the project bonds issued and authenticated was limited to $ 25.0 million . interest and principal balance of the project bonds are due and payable by the company directly to the institutional investors in aggregate semi-annual installments commencing on july 10 , 2013 , and concluding on january 10 , 2033. the company also has an amended and restated uncommitted note purchase and private shelf agreement ( the โ prudential agreement โ ) in the amount of $ 200.0 million , with $ 150.0 million of notes issued thereunder . the company has scheduled principal payments beginning in 2015 under the prudential agreement , at which time it amortizes for 5 years at an amount of 23 $ 30.0 million per year . as of january 3 , 2015 , the company had $ 50.0 million borrowing capacity under the prudential agreement . in addition , the company has a committed , unsecured , revolving credit agreement maturing on december 14 , 2016 ( the โ agreement โ ) in the amount of $ 150.0 million . as of january 3 , 2015 , the company had $ 144.9 million borrowing capacity under the agreement as $ 5.1 million in letters of commercial and standby letters of credit were outstanding and undrawn . there were no other outstanding borrowings as of january 3 , 2015 on the agreement . the agreement , the prudential agreement , and the project bonds contain customary affirmative and negative covenants . the affirmative covenants relate to financial statements , notices of material events , conduct of business , inspection of property , maintenance of insurance , compliance with laws , and most favored lender obligations .
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Suspicious Activity Report : the sales growth in brazil is a result of increasing demand for franklin submersible pumps and motors , customer acceptance of the many product line upgrades that have been implemented over the past two years , and general market conditions . new distribution outlets in chile and colombia contributed to significantly increased sales in these markets compared to 2013. these sales increases were partially offset with lower sales in argentina . water systems sales in the middle east and africa were about 11 percent of consolidated sales and increased by about 2 percent compared to 2013. water systems sales in the middle east and africa were reduced by $ 11.3 million or about 10 13 percent in the year due to foreign currency translation . excluding acquisitions and the impact of foreign currency translation , sales were up about 11 percent compared to 2013. the growth was driven by strong sales of groundwater pumping equipment in turkey . water systems sales in europe were about 8 percent of consolidated sales and grew by about 11 percent compared to the prior year . acquisition related sales during 2014 were about 2 percent in europe . foreign currency translation rate changes decreased sales by about 1 percent compared to sales in 2013. excluding acquisitions and foreign currency translation , european sales grew by about 10 percent during 2014. sales improvements in europe included growth in both groundwater pumping equipment and pioneer products . water systems sales in the asia pacific region were 7 percent of consolidated sales and grew by about 11 percent compared to the prior year . acquisition related sales during 2014 increased sales by about 7 percent in asia pacific . foreign currency translation rate changes decreased sales in 2014 in the asia pacific region by about 2 percent . excluding acquisitions and foreign currency translation sales grew by about 7 percent during 2014. sales in australia grew by about 28 percent led by improved pioneer product sales in the region and aided in part by the launch of the new solar powered water well pumping system . sales in taiwan and southeast asia grew by about 5 percent compared to the prior year , as the company continues to benefit from the improved customer service levels attributable to a new distribution center in singapore . these sales increases were partially offset by smaller declines in sales in japan and china . net sales-fueling systems fueling systems sales which represented 21 percent of consolidated sales were $ 223.2 million in 2014 , an increase of $ 24.1 million or about 12 percent versus 2013. the incremental impact of sales from acquired businesses was $ 0.1 million . foreign currency translation rate changes increased sales $ 0.7 million compared to sales in 2013. the sales change in 2014 , excluding acquisitions and foreign currency translation , was an increase of $ 23.3 million or about 12 percent . this growth was led by sales increases in developing markets , which grew by 15 percent compared to the prior year , as customers outside north america continue to invest in the company 's pressure pumping systems for transferring gasoline from underground tanks . as well , adoption of the company 's electronic fuel management products is increasing among international customers . fueling systems sales in more developed markets ; like the u.s. , canada and europe grew by about 11 percent compared to prior year . cost of sales cost of sales as a percent of net sales for 2014 and 2013 was 67.1 percent and 65.7 percent , respectively . correspondingly , the gross profit margin decreased to 32.9 percent from 34.3 percent , a 140 basis point decline . the gross profit margin change was due primarily to a sales revenue mix shift in the water systems segment , as groundwater pumping system sales have declined and surface pumping equipment system sales have increased , contributing significantly to lower gross profit margins in 2014. direct materials as a percentage of sales was 46.4 percent up 200 basis points compared to 44.4 percent last year . this increase in direct materials was partially offset by lower labor and burden costs . the company 's consolidated gross profit was $ 344.4 million for 2014 , up $ 12.9 million or 4 percent from 2013. selling , general and administrative ( โ sg & a โ ) selling , general , and administrative ( sg & a ) expenses were $ 227.7 million in 2014 and increased by $ 23.7 million or about 12 percent in 2014 compared to last year . in 2014 , increases in sg & a attributable to acquisitions were about $ 6 million or about 3 percent . additional year over year changes in sg & a costs were increases in marketing and selling-related expenses attributable to sales volume and higher research , development , and engineering expenses . restructuring expenses restructuring expenses for 2014 were $ 16.6 million and reduced diluted earnings per share by approximately $ 0.24. restructuring expenses in 2014 included severance costs , equipment relocation expenses , asset write-downs and primarily related to the closure of the wittlich , germany facility and other european manufacturing realignment activities . there were $ 3.7 million of restructuring expenses in 2013. operating income operating income was $ 100.1 million in 2014 , down $ 23.7 million from $ 123.8 million in 2013 . 14 replace_table_token_8_th there were specific items in 2014 and 2013 that impacted operating income that were not operational in nature . in 2014 they were as follows : there were $ 16.6 million of restructuring charges . restructuring expenses in 2014 were $ 14.7 million in severance cost , $ 1.7 million expenses related to equipment transfers , freight and other relocation costs and $ 0.2 million in asset write-offs primarily related to the transfer of production activities from germany to the czech republic and other continued manufacturing realignments . $ 3.2 story_separator_special_tag these initiatives include the startup of a pump rental business in the united kingdom , opening four new distribution centers in developing regions , sales and marketing costs for the new artificial lift product line and the rollout of the franklin control systems high horsepower drive and control products through the u.s. water systems distribution channel . operating income-fueling systems fueling systems operating income after non-gaap adjustments was $ 42.3 million in 2013 compared to $ 37.0 million after non-gaap adjustments in 2012 , an increase of 14 percent . the 2013 operating income margin after non-gaap adjustments was 21.2 percent and increased by 20 basis points compared to the 21.0 percent of net sales in 2012. this increased profitability was the result of operating leverage . operating income-other operating income-other is composed primarily of unallocated general and administrative expenses . general and administrative expenses were higher due to increases related to information technology expenditures for software , telephone and other erp integration costs as well as higher performance based and stock based compensation expenses . interest expense interest expense for 2013 and 2012 was $ 10.6 million and $ 10.2 million , respectively . other income or expense other income or expense was a gain of $ 1.7 million in 2013 and a gain of $ 14.9 million in 2012. included in other income or 21 expense in 2013 was interest income of $ 1.8 million , primarily derived from the investment of cash balances in short-term securities . included in other income in 2012 was a one-time gain on the pioneer transaction worth $ 12.2 million . the gain on the original investment the company held in pioneer arose as a the result of a new enterprise valuation of the pioneer entity compared to the book value of franklin electric 's equity investment in pioneer . also included in other income in 2013 was income from equity investments of $ 0.6 million and interest income of $ 2.3 million , primarily derived from the investment of cash balances in short-term securities . foreign exchange foreign currency-based transactions produced a loss for 2013 of $ 3.3 million , primarily due to the turkish lira , the euro , south african rand , brazilian real and canadian dollar relative to the u.s. dollar , none of which individually were significant . foreign currency-based transactions produced a loss for 2012 of $ 1.7 million , primarily due to the mexican peso , the euro , south african rand , brazilian real and czech koruna relative to the u.s. dollar , none of which individually were significant income taxes the provision for income taxes in 2013 and 2012 was $ 28.9 million and $ 32.2 million , respectively . the tax rate for 2013 was 25.9 percent and 2012 was 27.8 percent . the projected tax rate may differ from the statutory rate primarily due to the indefinite reinvestment of foreign earnings taxed at rates below the u.s. statutory rate as well as recognition of foreign tax credits . the company has the ability to indefinitely reinvest these foreign earnings based on the earnings and cash projections of its other operations as well as cash on hand and available credit . net income net income for 2013 was $ 82.7 million compared to 2012 net income of $ 83.7 million . net income attributable to franklin electric co. , inc. for 2013 was $ 82.0 million , or $ 1.68 per diluted share , compared to 2012 net income attributable to franklin electric co. , inc. of $ 82.9 million or $ 1.73 per diluted share . net income attributable to franklin electric co. , inc. after non-gaap adjustments for 2013 was $ 82.9 million , or $ 1.72 per diluted share , compared to 2012 net income attributable to franklin electric co. , inc. after non-gaap adjustments of $ 74.7 million or $ 1.57 per diluted share . there were specific items in 2013 and 2012 that impacted net income attributable to franklin electric co. , inc. that were not operational in nature . the company refers to these items as โ non-gaap adjustments โ for purposes of presenting the non-gaap financial measures of net income attributable to franklin electric co. , inc. and adjusted eps . the company believes this information helps investors understand underlying trends in the company 's business more easily . the differences between these non-gaap financial measures and the most comparable gaap measures are reconciled in the following tables : 22 replace_table_token_15_th replace_table_token_16_th story_separator_special_tag style= `` text-align : center ; `` > 24 consideration of $ 5.6 million to impo . in addition to the project bonds , the company refinanced the impo debt for $ 14.2 million and borrowed from and repaid on the revolver $ 17.0 million . in addition , the company completed the repurchase of 88,200 shares of the company 's common stock for $ 2.8 million pursuant to the company 's stock repurchase program , and received $ 9.6 million from employees as payment for the exercise price of their stock options and taxes owed upon the exercise of their stock options and release of their restricted awards . dividends in the amount of $ 15.3 million were paid to shareholders . during 2012 , the company completed the repurchase of 400,000 shares of the company 's common stock for $ 10.0 million pursuant to the company 's stock repurchase program . dividends in the amount of $ 13.8 million were paid to shareholders . at least annually the dividend policy is reviewed , and the company attempts to purchase shares annually to offset dilution of equity awards , but market conditions may prompt a perceived more efficient alternate use of cash . the company in recent history has not looked to the public capital markets for financing , and under current circumstances the company does not foresee a need to do so in the near future . aggregate contractual obligations
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2,571 | on january 3 , 2020 , we acquired hemacare corporation ( hemacare ) , a business specializing in the production of human-derived cellular products for the cell therapy market . the acquisition of hemacare will expand our comprehensive portfolio of early-stage research and manufacturing support solutions to encompass the production and customization of high-quality , human derived cellular products to better support clients ' cell therapy programs . the preliminary purchase price of hemacare was approximately $ 380 million in cash . the acquisition was funded through a combination of cash on hand and proceeds from our credit facility under the multi-currency revolving facility . this business will be reported as part of our rms reportable segment . 32 on august 28 , 2019 , we acquired an 80 % ownership interest in a supplier that supports our dsa reportable segment . the remaining 20 % interest is a redeemable non-controlling interest . the preliminary purchase price was $ 23.4 million , net of a $ 4.0 million pre-existing relationship for a supply agreement settled upon acquisition , and subject to certain post-closing adjustments that may change the purchase price . the acquisition was funded through a combination of cash on hand and proceeds from our credit facility under the multi-currency revolving facility . the business is reported as part of our dsa reportable segment . on april 29 , 2019 , we acquired citoxlab , a non-clinical cro , specializing in regulated safety assessment services , non-regulated discovery services , and medical device testing . with operations in europe and north america , the acquisition of citoxlab further strengthens our position as a leading , global , early-stage cro by expanding our scientific portfolio and geographic footprint , which enhances our ability to partner with clients across the drug discovery and development continuum . the preliminary purchase price for citoxlab was $ 527.7 million in cash , subject to certain post-closing adjustments that may change the purchase price . the acquisition was funded through a combination of cash on hand and proceeds from our credit facility under the multi-currency revolving facility . citoxlab is reported as part of our dsa reportable segment . on april 3 , 2018 , we acquired mpi research , a non-clinical cro providing comprehensive testing services to biopharmaceutical and medical device companies worldwide . the acquisition enhances our position as a leading global early-stage cro by strengthening our ability to partner with clients across the drug discovery and development continuum . the purchase price for mpi research was $ 829.7 million in cash . the acquisition was funded by borrowings on our credit facility as well as the issuance of $ 500.0 million of 5.5 % senior notes due 2026 ( 2026 senior notes ) in an unregistered offering . mpi research is reported as part of our dsa reportable segment . on january 11 , 2018 , we acquired kws biotest limited ( kws biotest ) , a cro specializing in in vitro and in vivo discovery testing services for immuno-oncology , inflammatory and infectious diseases . the acquisition enhances our discovery expertise , with complementary offerings that provide our customers with additional tools in the active therapeutic research areas of oncology and immunology . the purchase price for kws biotest was $ 20.3 million in cash . in addition to the initial purchase price , the transaction included aggregate , undiscounted contingent payments of up to ยฃ 3.0 million based on future performance . during the three months ended september 29 , 2018 , the terms of these contingent payments were amended , resulting in a fixed payment of ยฃ 2.0 million , or $ 2.6 million , which was paid during the three months ended march 30 , 2019. the kws biotest business is reported as part of our dsa reportable segment . on august 4 , 2017 , we acquired brains on-line , a cro providing critical data that advances novel therapeutics for the treatment of central nervous system ( cns ) diseases . brains on-line strategically expands our existing cns capabilities and establishes us as a single-source provider for a broad portfolio of discovery cns services . the purchase price for brains on-line was $ 21.3 million in cash . in addition to the initial purchase price , the transaction included aggregate , undiscounted contingent payments of up to 6.7 million based on future performance . during the first quarter of fiscal year 2019 , the terms of these contingent payments were amended , resulting in a fixed payment of $ 2.6 million , which was paid during the three months ended june 29 , 2019. the brains on-line business is reported as part of our dsa reportable segment . on february 10 , 2017 , we completed the divestiture of our cdmo business to quotient clinical ltd. , based in london , england for $ 75.0 million in proceeds , net of cash , cash equivalents , and working capital adjustments . the cdmo business was acquired in april 2016 as part of the acquisition of wil research and was reported in our manufacturing reportable segment . fiscal quarters our fiscal year is typically based on 52-week s , with each quarter comp osed of 13 weeks ending on the last saturday on , or closest to , march 31 , june 30 , september 30 , and december 31. a 53 rd week was included in the fourth quarter of fiscal year 2016 , which is occasionally necessary to align with a december 31 calendar year-end . business trends the demand for our products and services continued to increase meaningfully in fiscal year 2019. our pharmaceutical and biotechnology clients continued to intensify their use of strategic outsourcing to improve their operating efficiency and to access capabilities that they do not maintain internally . story_separator_special_tag the ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible . in making this determination , under the applicable financial accounting standards , we are allowed to consider the scheduled reversal of deferred tax liabilities , projected 36 future taxable income , and the effects of tax planning strategies . in the event that actual results differ from our estimates , we adjust our estimates in future periods and we may need to establish a valuation allowance , which could materially impact our financial position and results of operations . our valuation allowance increased by $ 300.2 million from $ 9.8 million as of december 29 , 2018 to $ 310.0 million as of december 28 , 2019 . the increase is primarily related to the recognition of $ 315.5 million of net operating loss deferred tax assets due to changes in our financing structure , $ 294.9 million of which we do not believe is more likely than not to be utilized . we account for uncertain tax positions using a โ more-likely-than-not โ threshold for recognizing and resolving uncertain tax positions . we evaluate uncertain tax positions on a quarterly basis and consider various factors , that include , but are not limited to , changes in tax law , the measurement of tax positions taken or expected to be taken in tax returns , the effective settlement of matters subject to audit , information obtained during in process audit activities and changes in facts or circumstances related to a tax position . we adjust the level of the liability to reflect any subsequent changes in the relevant facts surrounding the uncertain positions . our liabilities for uncertain tax positions can be relieved only if the contingency becomes legally extinguished through either payment to the taxing authority or the expiration of the statute of limitations , the recognition of the benefits associated with the position meet the โ more-likely-than-not โ threshold or the liability becomes effectively settled through the controversy process . we consider matters to be effectively settled once the taxing authority has completed all of its required or expected examination procedures , including all appeals and administrative reviews ; we have no plans to appeal or litigate any aspect of the tax position ; and we believe that it is highly unlikely that the taxing authority would re-examine the related tax position . we also accrue for potential interest and penalties related to unrecognized tax benefits in income tax expense . on december 22 , 2017 , the u.s. government enacted comprehensive tax legislation commonly referred to as u.s. tax reform . u.s. tax reform made broad and complex changes to the u.s. tax code , including , but not limited to , ( i ) reducing the u.s. federal statutory tax rate from 35 % to 21 % ; ( ii ) requiring companies to pay a one-time transition tax ( transition tax ) on certain unrepatriated earnings of foreign subsidiaries ; ( iii ) generally eliminating u.s federal income taxes on dividends from foreign subsidiaries ; ( iv ) requiring a current inclusion in u.s. federal taxable income of certain earnings of controlled foreign corporations ; ( v ) eliminating the corporate alternative minimum tax ( amt ) and changing how existing amt credits can be realized ; ( vi ) subjecting certain foreign earnings to u.s. taxation through base erosion anti-abuse tax ( beat ) and global intangible low-taxed income ( gilti ) ; ( vii ) creating a new limitation on deductible interest expense ; ( viii ) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after december 31 , 2017 , and ( ix ) modifying the officer 's compensation limitation . our accounting for the elements of u.s. tax reform is complete . we have made an accounting policy election to treat taxes due on the gilti inclusion as a current period expense . see note 11 , โ income taxes โ for further discussion . goodwill and intangible assets we use assumptions and estimates in determining the fair value of assets acquired and liabilities assumed in a business combination . the determination of the fair value of intangible assets , which represent a significant portion of the purchase price in many of our acquisitions , requires the use of significant judgment with regard to ( i ) the fair value ; and ( ii ) whether such intangibles are amortizable or non-amortizable and , if the former , the period and the method by which the intangible asset will be amortized . we utilize commonly accepted valuation techniques , such as the income approach and the cost approach , as appropriate , in establishing the fair value of intangible assets . typically , key assumptions include projections of cash flows that arise from identifiable intangible assets of acquired businesses as well as discount rates based on an analysis of the weighted average cost of capital , adjusted for specific risks associated with the assets . in our recent acquisitions , customer relationship intangible assets ( also referred to as client relationships ) have been the most significant identifiable assets acquired . to determine the fair value of the acquired client relationships , we utilized the multiple period excess earnings model ( a commonly accepted valuation technique ) , which includes the following key assumptions : projections of cash flows from the acquired entities , which included future revenue growth rates , operating income margins , and customer attrition rates ; as well as discount rates based on an analysis of the acquired entities ' weighted average cost of capital . the value of client relationships acquired were $ 134.6 million for citoxlab in fiscal year 2019 and $ 264.9 million for mpi research in fiscal year 2018. we review definite-lived intangible assets for impairment
| cash flows the following table presents our net cash provided by operating activities : replace_table_token_19_th net cash provided by cash flows from operating activities represents the cash receipts and disbursements related to all of our activities other than investing and financing activities . operating cash flow is derived by adjusting our income from continuing operations for ( 1 ) non-cash operating items such as depreciation and amortization , stock-based compensation , deferred income taxes , gains on venture capital investments and divestiture , and impairment charges , as well as ( 2 ) changes in operating assets and liabilities , which reflect timing differences between the receipt and payment of cash associated with transactions and when they are recognized in our results of operations . for fiscal year 2019 , compared to fiscal year 2018 , the increase in net cash provided by operating activities was primarily driven by an increase in income from continuing operations , net of income taxes 47 and the favorable timing of vendor and supplier payments compared to the same period in 2018 ; partially offset by unfavorable changes in operating assets and liabilities , specifically related to the timing of net contract balances from contracts with customers ( collectively trade receivables , net ; deferred revenue ; and customer contract deposits ) , increases in inventory levels in response to customer demand , and higher compensation payments compared to the prior year period . the increase in net cash provided by operating activities from fiscal year 2017 to 2018 was primarily driven by an increase in income from continuing operations and positive changes in operating assets and liabilities resulting from an increase in our deferred revenue ( primarily due to a one-time up-front payment received in connection with a strategic agreement ) , an increase in customer contract deposits , as well as improved collections of our receivables .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows the following table presents our net cash provided by operating activities : replace_table_token_19_th net cash provided by cash flows from operating activities represents the cash receipts and disbursements related to all of our activities other than investing and financing activities . operating cash flow is derived by adjusting our income from continuing operations for ( 1 ) non-cash operating items such as depreciation and amortization , stock-based compensation , deferred income taxes , gains on venture capital investments and divestiture , and impairment charges , as well as ( 2 ) changes in operating assets and liabilities , which reflect timing differences between the receipt and payment of cash associated with transactions and when they are recognized in our results of operations . for fiscal year 2019 , compared to fiscal year 2018 , the increase in net cash provided by operating activities was primarily driven by an increase in income from continuing operations , net of income taxes 47 and the favorable timing of vendor and supplier payments compared to the same period in 2018 ; partially offset by unfavorable changes in operating assets and liabilities , specifically related to the timing of net contract balances from contracts with customers ( collectively trade receivables , net ; deferred revenue ; and customer contract deposits ) , increases in inventory levels in response to customer demand , and higher compensation payments compared to the prior year period . the increase in net cash provided by operating activities from fiscal year 2017 to 2018 was primarily driven by an increase in income from continuing operations and positive changes in operating assets and liabilities resulting from an increase in our deferred revenue ( primarily due to a one-time up-front payment received in connection with a strategic agreement ) , an increase in customer contract deposits , as well as improved collections of our receivables .
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Suspicious Activity Report : on january 3 , 2020 , we acquired hemacare corporation ( hemacare ) , a business specializing in the production of human-derived cellular products for the cell therapy market . the acquisition of hemacare will expand our comprehensive portfolio of early-stage research and manufacturing support solutions to encompass the production and customization of high-quality , human derived cellular products to better support clients ' cell therapy programs . the preliminary purchase price of hemacare was approximately $ 380 million in cash . the acquisition was funded through a combination of cash on hand and proceeds from our credit facility under the multi-currency revolving facility . this business will be reported as part of our rms reportable segment . 32 on august 28 , 2019 , we acquired an 80 % ownership interest in a supplier that supports our dsa reportable segment . the remaining 20 % interest is a redeemable non-controlling interest . the preliminary purchase price was $ 23.4 million , net of a $ 4.0 million pre-existing relationship for a supply agreement settled upon acquisition , and subject to certain post-closing adjustments that may change the purchase price . the acquisition was funded through a combination of cash on hand and proceeds from our credit facility under the multi-currency revolving facility . the business is reported as part of our dsa reportable segment . on april 29 , 2019 , we acquired citoxlab , a non-clinical cro , specializing in regulated safety assessment services , non-regulated discovery services , and medical device testing . with operations in europe and north america , the acquisition of citoxlab further strengthens our position as a leading , global , early-stage cro by expanding our scientific portfolio and geographic footprint , which enhances our ability to partner with clients across the drug discovery and development continuum . the preliminary purchase price for citoxlab was $ 527.7 million in cash , subject to certain post-closing adjustments that may change the purchase price . the acquisition was funded through a combination of cash on hand and proceeds from our credit facility under the multi-currency revolving facility . citoxlab is reported as part of our dsa reportable segment . on april 3 , 2018 , we acquired mpi research , a non-clinical cro providing comprehensive testing services to biopharmaceutical and medical device companies worldwide . the acquisition enhances our position as a leading global early-stage cro by strengthening our ability to partner with clients across the drug discovery and development continuum . the purchase price for mpi research was $ 829.7 million in cash . the acquisition was funded by borrowings on our credit facility as well as the issuance of $ 500.0 million of 5.5 % senior notes due 2026 ( 2026 senior notes ) in an unregistered offering . mpi research is reported as part of our dsa reportable segment . on january 11 , 2018 , we acquired kws biotest limited ( kws biotest ) , a cro specializing in in vitro and in vivo discovery testing services for immuno-oncology , inflammatory and infectious diseases . the acquisition enhances our discovery expertise , with complementary offerings that provide our customers with additional tools in the active therapeutic research areas of oncology and immunology . the purchase price for kws biotest was $ 20.3 million in cash . in addition to the initial purchase price , the transaction included aggregate , undiscounted contingent payments of up to ยฃ 3.0 million based on future performance . during the three months ended september 29 , 2018 , the terms of these contingent payments were amended , resulting in a fixed payment of ยฃ 2.0 million , or $ 2.6 million , which was paid during the three months ended march 30 , 2019. the kws biotest business is reported as part of our dsa reportable segment . on august 4 , 2017 , we acquired brains on-line , a cro providing critical data that advances novel therapeutics for the treatment of central nervous system ( cns ) diseases . brains on-line strategically expands our existing cns capabilities and establishes us as a single-source provider for a broad portfolio of discovery cns services . the purchase price for brains on-line was $ 21.3 million in cash . in addition to the initial purchase price , the transaction included aggregate , undiscounted contingent payments of up to 6.7 million based on future performance . during the first quarter of fiscal year 2019 , the terms of these contingent payments were amended , resulting in a fixed payment of $ 2.6 million , which was paid during the three months ended june 29 , 2019. the brains on-line business is reported as part of our dsa reportable segment . on february 10 , 2017 , we completed the divestiture of our cdmo business to quotient clinical ltd. , based in london , england for $ 75.0 million in proceeds , net of cash , cash equivalents , and working capital adjustments . the cdmo business was acquired in april 2016 as part of the acquisition of wil research and was reported in our manufacturing reportable segment . fiscal quarters our fiscal year is typically based on 52-week s , with each quarter comp osed of 13 weeks ending on the last saturday on , or closest to , march 31 , june 30 , september 30 , and december 31. a 53 rd week was included in the fourth quarter of fiscal year 2016 , which is occasionally necessary to align with a december 31 calendar year-end . business trends the demand for our products and services continued to increase meaningfully in fiscal year 2019. our pharmaceutical and biotechnology clients continued to intensify their use of strategic outsourcing to improve their operating efficiency and to access capabilities that they do not maintain internally . story_separator_special_tag the ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible . in making this determination , under the applicable financial accounting standards , we are allowed to consider the scheduled reversal of deferred tax liabilities , projected 36 future taxable income , and the effects of tax planning strategies . in the event that actual results differ from our estimates , we adjust our estimates in future periods and we may need to establish a valuation allowance , which could materially impact our financial position and results of operations . our valuation allowance increased by $ 300.2 million from $ 9.8 million as of december 29 , 2018 to $ 310.0 million as of december 28 , 2019 . the increase is primarily related to the recognition of $ 315.5 million of net operating loss deferred tax assets due to changes in our financing structure , $ 294.9 million of which we do not believe is more likely than not to be utilized . we account for uncertain tax positions using a โ more-likely-than-not โ threshold for recognizing and resolving uncertain tax positions . we evaluate uncertain tax positions on a quarterly basis and consider various factors , that include , but are not limited to , changes in tax law , the measurement of tax positions taken or expected to be taken in tax returns , the effective settlement of matters subject to audit , information obtained during in process audit activities and changes in facts or circumstances related to a tax position . we adjust the level of the liability to reflect any subsequent changes in the relevant facts surrounding the uncertain positions . our liabilities for uncertain tax positions can be relieved only if the contingency becomes legally extinguished through either payment to the taxing authority or the expiration of the statute of limitations , the recognition of the benefits associated with the position meet the โ more-likely-than-not โ threshold or the liability becomes effectively settled through the controversy process . we consider matters to be effectively settled once the taxing authority has completed all of its required or expected examination procedures , including all appeals and administrative reviews ; we have no plans to appeal or litigate any aspect of the tax position ; and we believe that it is highly unlikely that the taxing authority would re-examine the related tax position . we also accrue for potential interest and penalties related to unrecognized tax benefits in income tax expense . on december 22 , 2017 , the u.s. government enacted comprehensive tax legislation commonly referred to as u.s. tax reform . u.s. tax reform made broad and complex changes to the u.s. tax code , including , but not limited to , ( i ) reducing the u.s. federal statutory tax rate from 35 % to 21 % ; ( ii ) requiring companies to pay a one-time transition tax ( transition tax ) on certain unrepatriated earnings of foreign subsidiaries ; ( iii ) generally eliminating u.s federal income taxes on dividends from foreign subsidiaries ; ( iv ) requiring a current inclusion in u.s. federal taxable income of certain earnings of controlled foreign corporations ; ( v ) eliminating the corporate alternative minimum tax ( amt ) and changing how existing amt credits can be realized ; ( vi ) subjecting certain foreign earnings to u.s. taxation through base erosion anti-abuse tax ( beat ) and global intangible low-taxed income ( gilti ) ; ( vii ) creating a new limitation on deductible interest expense ; ( viii ) changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after december 31 , 2017 , and ( ix ) modifying the officer 's compensation limitation . our accounting for the elements of u.s. tax reform is complete . we have made an accounting policy election to treat taxes due on the gilti inclusion as a current period expense . see note 11 , โ income taxes โ for further discussion . goodwill and intangible assets we use assumptions and estimates in determining the fair value of assets acquired and liabilities assumed in a business combination . the determination of the fair value of intangible assets , which represent a significant portion of the purchase price in many of our acquisitions , requires the use of significant judgment with regard to ( i ) the fair value ; and ( ii ) whether such intangibles are amortizable or non-amortizable and , if the former , the period and the method by which the intangible asset will be amortized . we utilize commonly accepted valuation techniques , such as the income approach and the cost approach , as appropriate , in establishing the fair value of intangible assets . typically , key assumptions include projections of cash flows that arise from identifiable intangible assets of acquired businesses as well as discount rates based on an analysis of the weighted average cost of capital , adjusted for specific risks associated with the assets . in our recent acquisitions , customer relationship intangible assets ( also referred to as client relationships ) have been the most significant identifiable assets acquired . to determine the fair value of the acquired client relationships , we utilized the multiple period excess earnings model ( a commonly accepted valuation technique ) , which includes the following key assumptions : projections of cash flows from the acquired entities , which included future revenue growth rates , operating income margins , and customer attrition rates ; as well as discount rates based on an analysis of the acquired entities ' weighted average cost of capital . the value of client relationships acquired were $ 134.6 million for citoxlab in fiscal year 2019 and $ 264.9 million for mpi research in fiscal year 2018. we review definite-lived intangible assets for impairment
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2,572 | we plan to leverage our demonstrated ability to drive organic growth , identify and integrate acquisitions and develop talent throughout the organization to maximize the potential of the dkny and donna karan brands . in march 2017 , we entered into an agreement with macy 's under which macy 's serves , since february 2018 , as the exclusive u.s. department store for sales of dkny women 's apparel and accessories . under the agreement , macy 's has the exclusive rights to sell dkny women 's apparel , including women 's sportswear , dresses , suit separates , women 's performance wear , denim , swimwear and outerwear , handbags and women 's shoes , as well as men 's swimwear and outerwear , and luggage in all macy 's locations and on macys.com . the agreement also plans for increased and enhanced dkny shop-in-shops in many macy 's stores . g-iii and macy 's are committed to making dkny the premier fashion and lifestyle brand . we sell dkny products through department stores , specialty retailers and online retailers worldwide , as well as through company-operated retail stores , e-commerce sites and distribution agreements . we also maintain dkny 's agreements with international license partners and distributors outside of the united states . products outside the exclusive categories and products distributed by dkny 's various licensees under other categories will continue to be sold to department stores , including macy 's . in addition , we re-launched donna karan as an aspirational luxury brand that is priced above dkny and targeted to fine department stores globally . in august 2017 , we entered into a joint venture with amlon capital b.v. ( โ amlon โ ) to produce and market women 's and men 's apparel and accessories pursuant to a long-term license for dkny and donna karan in the people 's republic of china , including macau , hong kong and taiwan . we own 49 % of the joint venture , with amlon owning the remaining 51 % . the principals of amlon were formerly executives of tommy hilfiger and were instrumental in the expansion of the tommy hilfiger brand in china . the joint venture will be funded with $ 25 million of equity to be used to strengthen the dkny and donna karan brands and accelerate the growth of the business in the region . of this amount , we are required to contribute an aggregate of $ 10.0 million to this joint venture by august 2018. starting january 1 , 2018 , this joint venture is the exclusive seller of women 's and men 's apparel , handbags , luggage and certain accessories under the dkny and donna karan brands in the territory . the joint venture commenced operations in the second half of fiscal 2018 and was operating 13 stores as of january , 31 . 2018. the acquisition of dki negatively impacted our results of operations in fiscal 2017 and in fiscal 2018. we expect dki to be profitable in fiscal 2019. karl lagerfeld paris in june 2015 , we acquired a 49 % interest in a joint venture that holds the worldwide rights to the karl lagerfeld trademarks , including the karl lagerfeld paris brand we currently use , for consumer products ( with certain exceptions ) and apparel in the united states , canada and mexico . we were also the first licensee of the joint venture , having been granted a license for women 's apparel , women 's handbags , women 's and men 's footwear and men 's apparel . we began shipping karl lagerfeld paris sportswear , dresses , women 's outerwear and handbags in the third quarter of fiscal 2016 , karl lagerfeld paris women 's footwear in the first quarter of fiscal 2017 and karl lagerfeld paris women 's suits in the third quarter of fiscal 2017. in february 2016 , we acquired a 19 % minority interest in the parent company of the group that holds the worldwide rights to the karl lagerfeld brand . this investment is intended to expand the partnership between us and the owners of the karl lagerfeld brand and extend their business development opportunities on a global scale . the business plan for this entity includes developing its wholesale business , expanding its outlet retail footprint and further developing out its online presence . 43 licensed products the sale of licensed products is a key element of our strategy and we have continually expanded our offerings of licensed products for more than 20 years . sales of licensed products accounted for 58.6 % of our net sales in fiscal 2018 , 60.7 % of our net sales in fiscal 2017 and 59.2 % of our net sales in fiscal 2016. our most significant licensor is calvin klein with whom we have ten different license agreements . we have also entered into distribution agreements with respect to calvin klein luggage in a limited number of countries in asia , europe and north america . in september 2017 , we renewed our license agreements with levi 's and dockers for an additional four-year term . we also recently extended through 2020 our license agreements with the national basketball association and for vince camuto dresses . in july 2016 , we signed a three-year extension through march 2020 of our license agreement with the national football league . this agreement includes men 's and women 's outerwear , starter men 's and women 's outerwear , men 's and women 's lifestyle apparel , hands high men 's and women 's lifestyle apparel , and touch by alyssa milano women 's lifestyle apparel . in february 2016 , we expanded our relationship with tommy hilfiger through a new license agreement for tommy hilfiger womenswear in the united states and canada . story_separator_special_tag impairment of long-lived assets in accordance with financial accounting standards board ( โ fasb โ ) accounting standards codification ( โ asc โ ) topic 360 โ property , plant and equipment , we annually evaluate the carrying value of our long-lived assets to determine whether changes have occurred that would suggest that the carrying amount of such assets may not be recoverable based on the estimated future undiscounted cash flows of the businesses to which the assets relate . any impairment would be equal to the amount by which the carrying value of the assets exceeded its fair value . in fiscal 2018 , the we recorded a $ 6.5 million impairment charge related to leasehold improvements and furniture and fixtures at certain of our wilsons , g.h . bass and vilebrequin stores as a result of the performance at these stores . in addition , we recorded a $ 738,000 impairment charge with respect to furniture and fixtures located in certain customers ' stores . in fiscal 2017 , the company recorded a $ 10.5 million impairment charge related to leasehold improvements and furniture and fixtures at certain of our wilsons and g.h . bass stores as a result of the performance at these stores . equity awards all share-based payments to employees , including grants of restricted stock units and employee stock options , are recognized in the consolidated financial statements as compensation expense over the service period ( generally the vesting period ) based on their fair values . restricted stock units that do not have performance conditions are valued based on the quoted market price on date of grant . restricted stock units with performance conditions are valued with the assistance of a valuation expert . stock options are valued using the black-scholes option pricing model . the black-scholes model requires subjective assumptions regarding dividend yields , expected volatility , expected life of options and risk-free interest rates . these assumptions reflect management 's best estimates . changes in these inputs and assumptions can materially affect the estimate of fair value and the amount of our compensation expenses for stock options . 48 results of operations the following table sets forth selected operating data as a percentage of our net sales for the fiscal years indicated below : โ โ โ 2018 โ โ 2017 โ โ 2016 โ net sales โ โ โ โ 100.0 % โ โ โ โ โ 100.0 % โ โ โ โ โ 100.0 % โ โ cost of goods sold โ โ โ โ 62.4 โ โ โ โ โ 64.8 โ โ โ โ โ 64.2 โ โ gross profit โ โ โ โ 37.6 โ โ โ โ โ 35.2 โ โ โ โ โ 35.8 โ โ selling , general and administrative expenses โ โ โ โ 30.5 โ โ โ โ โ 29.5 โ โ โ โ โ 26.8 โ โ depreciation and amortization โ โ โ โ 1.3 โ โ โ โ โ 1.4 โ โ โ โ โ 1.1 โ โ asset impairments โ โ โ โ 0.3 โ โ โ โ โ 0.4 โ โ โ โ โ โ โ โ operating profit โ โ โ โ 5.5 โ โ โ โ โ 3.9 โ โ โ โ โ 7.9 โ โ interest and financing charges , net โ โ โ โ ( 1.6 ) โ โ โ โ โ ( 0.6 ) โ โ โ โ โ ( 0.3 ) โ โ income before income taxes โ โ โ โ 3.9 โ โ โ โ โ 3.3 โ โ โ โ โ 7.6 โ โ income tax expense โ โ โ โ 1.7 โ โ โ โ โ 1.1 โ โ โ โ โ 2.8 โ โ net income โ โ โ โ 2.2 % โ โ โ โ โ 2.2 % โ โ โ โ โ 4.8 % โ โ โ year ended january 31 , 2018 ( โ fiscal 2018 โ ) compared to year ended january 31 , 2017 ( โ fiscal 2017 โ ) net sales for fiscal 2018 increased to $ 2.81 billion from $ 2.39 billion in the prior year . net sales of our segments are reported before intercompany eliminations . net sales of our wholesale operations segment increased to $ 2.45 billion from $ 2.01 billion in the comparable period last year . net sales from our dkny and donna karan product lines accounted for $ 250.2 million in fiscal 2018 compared to $ 16.6 million in fiscal 2017 when we operated the business for only two months . the increase in net sales of our wholesale operations segment was also a result of a $ 138.6 million increase in net sales of tommy hilfiger licensed products primarily from our denim , women 's sportswear and women 's outerwear product categories , which were recently launched , as well as an increase in net sales in the men 's outerwear and dresses categories . the increase in net sales was also driven by a $ 85.7 million increase in net sales of calvin klein licensed products , primarily from dresses and women 's performance wear , and a $ 34.2 million increase in net sales of karl lagerfeld paris licensed products . these increases are offset , in part , by a $ 38.3 million decrease in net sales of private label products and a $ 15.7 million decrease in net sales of jessica simpson licensed products , for which the license agreement was terminated in june 2017. net sales of our retail operations segment increased to $ 502.5 million from $ 474.2 million in the same period last year . our retail operations report on a 52/53 week fiscal year . net sales increased by $ 6.9 million as a result of fiscal 2018 containing 53 weeks compared to 52 weeks in fiscal 2017. the remainder of the increase in net sales was due to $ 69.9 million in net sales
| cash from investing activities in fiscal 2018 , we used $ 33.9 million of cash in investing activities . the cash used in investing activities consisted of capital expenditures related to additional fixturing costs at department stores , as well as renovating , repurposing and relocating g.h . bass and wilsons leather stores to karl lagerfeld paris and dkny stores . in fiscal 2017 , we used $ 525.8 million in investing activities of which $ 465.4 million was in connection with the acquisition of dki . we also used $ 24.9 million for capital expenditures , primarily related to fixturing costs at department stores , and $ 35.4 million for the investment in klh . in fiscal 2016 , we used $ 67.7 million of cash in investing activities of which $ 42.2 million was for capital expenditures , primarily related to fixturing costs at department stores , as well as for remodeling , relocating and adding new wilsons , g.h . bass and vilebrequin stores . the remainder of the cash used in investing activities of $ 25.5 million related to the investment in klna . cash from financing activities in fiscal 2018 , we used $ 83.7 million of cash in financing activities primarily for the reduction in net borrowings under our credit agreement . cash from financing activities provided $ 367.6 million in fiscal 2017 , primarily from additional borrowings to finance the dki acquisition . cash from financing activities provided $ 0.5 million in fiscal 2016 , primarily as a result of net proceeds from the exercise of stock options . financing needs we believe that our cash on hand and cash generated from operations , together with funds available under the abl credit agreement , are sufficient to meet our expected operating and capital expenditure requirements . we may seek to acquire other businesses in order to expand our product offerings . we may need additional financing in order to complete one or more acquisitions . we can not be certain that we will be able to obtain additional financing , if required , on acceptable terms or at all .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash from investing activities in fiscal 2018 , we used $ 33.9 million of cash in investing activities . the cash used in investing activities consisted of capital expenditures related to additional fixturing costs at department stores , as well as renovating , repurposing and relocating g.h . bass and wilsons leather stores to karl lagerfeld paris and dkny stores . in fiscal 2017 , we used $ 525.8 million in investing activities of which $ 465.4 million was in connection with the acquisition of dki . we also used $ 24.9 million for capital expenditures , primarily related to fixturing costs at department stores , and $ 35.4 million for the investment in klh . in fiscal 2016 , we used $ 67.7 million of cash in investing activities of which $ 42.2 million was for capital expenditures , primarily related to fixturing costs at department stores , as well as for remodeling , relocating and adding new wilsons , g.h . bass and vilebrequin stores . the remainder of the cash used in investing activities of $ 25.5 million related to the investment in klna . cash from financing activities in fiscal 2018 , we used $ 83.7 million of cash in financing activities primarily for the reduction in net borrowings under our credit agreement . cash from financing activities provided $ 367.6 million in fiscal 2017 , primarily from additional borrowings to finance the dki acquisition . cash from financing activities provided $ 0.5 million in fiscal 2016 , primarily as a result of net proceeds from the exercise of stock options . financing needs we believe that our cash on hand and cash generated from operations , together with funds available under the abl credit agreement , are sufficient to meet our expected operating and capital expenditure requirements . we may seek to acquire other businesses in order to expand our product offerings . we may need additional financing in order to complete one or more acquisitions . we can not be certain that we will be able to obtain additional financing , if required , on acceptable terms or at all .
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Suspicious Activity Report : we plan to leverage our demonstrated ability to drive organic growth , identify and integrate acquisitions and develop talent throughout the organization to maximize the potential of the dkny and donna karan brands . in march 2017 , we entered into an agreement with macy 's under which macy 's serves , since february 2018 , as the exclusive u.s. department store for sales of dkny women 's apparel and accessories . under the agreement , macy 's has the exclusive rights to sell dkny women 's apparel , including women 's sportswear , dresses , suit separates , women 's performance wear , denim , swimwear and outerwear , handbags and women 's shoes , as well as men 's swimwear and outerwear , and luggage in all macy 's locations and on macys.com . the agreement also plans for increased and enhanced dkny shop-in-shops in many macy 's stores . g-iii and macy 's are committed to making dkny the premier fashion and lifestyle brand . we sell dkny products through department stores , specialty retailers and online retailers worldwide , as well as through company-operated retail stores , e-commerce sites and distribution agreements . we also maintain dkny 's agreements with international license partners and distributors outside of the united states . products outside the exclusive categories and products distributed by dkny 's various licensees under other categories will continue to be sold to department stores , including macy 's . in addition , we re-launched donna karan as an aspirational luxury brand that is priced above dkny and targeted to fine department stores globally . in august 2017 , we entered into a joint venture with amlon capital b.v. ( โ amlon โ ) to produce and market women 's and men 's apparel and accessories pursuant to a long-term license for dkny and donna karan in the people 's republic of china , including macau , hong kong and taiwan . we own 49 % of the joint venture , with amlon owning the remaining 51 % . the principals of amlon were formerly executives of tommy hilfiger and were instrumental in the expansion of the tommy hilfiger brand in china . the joint venture will be funded with $ 25 million of equity to be used to strengthen the dkny and donna karan brands and accelerate the growth of the business in the region . of this amount , we are required to contribute an aggregate of $ 10.0 million to this joint venture by august 2018. starting january 1 , 2018 , this joint venture is the exclusive seller of women 's and men 's apparel , handbags , luggage and certain accessories under the dkny and donna karan brands in the territory . the joint venture commenced operations in the second half of fiscal 2018 and was operating 13 stores as of january , 31 . 2018. the acquisition of dki negatively impacted our results of operations in fiscal 2017 and in fiscal 2018. we expect dki to be profitable in fiscal 2019. karl lagerfeld paris in june 2015 , we acquired a 49 % interest in a joint venture that holds the worldwide rights to the karl lagerfeld trademarks , including the karl lagerfeld paris brand we currently use , for consumer products ( with certain exceptions ) and apparel in the united states , canada and mexico . we were also the first licensee of the joint venture , having been granted a license for women 's apparel , women 's handbags , women 's and men 's footwear and men 's apparel . we began shipping karl lagerfeld paris sportswear , dresses , women 's outerwear and handbags in the third quarter of fiscal 2016 , karl lagerfeld paris women 's footwear in the first quarter of fiscal 2017 and karl lagerfeld paris women 's suits in the third quarter of fiscal 2017. in february 2016 , we acquired a 19 % minority interest in the parent company of the group that holds the worldwide rights to the karl lagerfeld brand . this investment is intended to expand the partnership between us and the owners of the karl lagerfeld brand and extend their business development opportunities on a global scale . the business plan for this entity includes developing its wholesale business , expanding its outlet retail footprint and further developing out its online presence . 43 licensed products the sale of licensed products is a key element of our strategy and we have continually expanded our offerings of licensed products for more than 20 years . sales of licensed products accounted for 58.6 % of our net sales in fiscal 2018 , 60.7 % of our net sales in fiscal 2017 and 59.2 % of our net sales in fiscal 2016. our most significant licensor is calvin klein with whom we have ten different license agreements . we have also entered into distribution agreements with respect to calvin klein luggage in a limited number of countries in asia , europe and north america . in september 2017 , we renewed our license agreements with levi 's and dockers for an additional four-year term . we also recently extended through 2020 our license agreements with the national basketball association and for vince camuto dresses . in july 2016 , we signed a three-year extension through march 2020 of our license agreement with the national football league . this agreement includes men 's and women 's outerwear , starter men 's and women 's outerwear , men 's and women 's lifestyle apparel , hands high men 's and women 's lifestyle apparel , and touch by alyssa milano women 's lifestyle apparel . in february 2016 , we expanded our relationship with tommy hilfiger through a new license agreement for tommy hilfiger womenswear in the united states and canada . story_separator_special_tag impairment of long-lived assets in accordance with financial accounting standards board ( โ fasb โ ) accounting standards codification ( โ asc โ ) topic 360 โ property , plant and equipment , we annually evaluate the carrying value of our long-lived assets to determine whether changes have occurred that would suggest that the carrying amount of such assets may not be recoverable based on the estimated future undiscounted cash flows of the businesses to which the assets relate . any impairment would be equal to the amount by which the carrying value of the assets exceeded its fair value . in fiscal 2018 , the we recorded a $ 6.5 million impairment charge related to leasehold improvements and furniture and fixtures at certain of our wilsons , g.h . bass and vilebrequin stores as a result of the performance at these stores . in addition , we recorded a $ 738,000 impairment charge with respect to furniture and fixtures located in certain customers ' stores . in fiscal 2017 , the company recorded a $ 10.5 million impairment charge related to leasehold improvements and furniture and fixtures at certain of our wilsons and g.h . bass stores as a result of the performance at these stores . equity awards all share-based payments to employees , including grants of restricted stock units and employee stock options , are recognized in the consolidated financial statements as compensation expense over the service period ( generally the vesting period ) based on their fair values . restricted stock units that do not have performance conditions are valued based on the quoted market price on date of grant . restricted stock units with performance conditions are valued with the assistance of a valuation expert . stock options are valued using the black-scholes option pricing model . the black-scholes model requires subjective assumptions regarding dividend yields , expected volatility , expected life of options and risk-free interest rates . these assumptions reflect management 's best estimates . changes in these inputs and assumptions can materially affect the estimate of fair value and the amount of our compensation expenses for stock options . 48 results of operations the following table sets forth selected operating data as a percentage of our net sales for the fiscal years indicated below : โ โ โ 2018 โ โ 2017 โ โ 2016 โ net sales โ โ โ โ 100.0 % โ โ โ โ โ 100.0 % โ โ โ โ โ 100.0 % โ โ cost of goods sold โ โ โ โ 62.4 โ โ โ โ โ 64.8 โ โ โ โ โ 64.2 โ โ gross profit โ โ โ โ 37.6 โ โ โ โ โ 35.2 โ โ โ โ โ 35.8 โ โ selling , general and administrative expenses โ โ โ โ 30.5 โ โ โ โ โ 29.5 โ โ โ โ โ 26.8 โ โ depreciation and amortization โ โ โ โ 1.3 โ โ โ โ โ 1.4 โ โ โ โ โ 1.1 โ โ asset impairments โ โ โ โ 0.3 โ โ โ โ โ 0.4 โ โ โ โ โ โ โ โ operating profit โ โ โ โ 5.5 โ โ โ โ โ 3.9 โ โ โ โ โ 7.9 โ โ interest and financing charges , net โ โ โ โ ( 1.6 ) โ โ โ โ โ ( 0.6 ) โ โ โ โ โ ( 0.3 ) โ โ income before income taxes โ โ โ โ 3.9 โ โ โ โ โ 3.3 โ โ โ โ โ 7.6 โ โ income tax expense โ โ โ โ 1.7 โ โ โ โ โ 1.1 โ โ โ โ โ 2.8 โ โ net income โ โ โ โ 2.2 % โ โ โ โ โ 2.2 % โ โ โ โ โ 4.8 % โ โ โ year ended january 31 , 2018 ( โ fiscal 2018 โ ) compared to year ended january 31 , 2017 ( โ fiscal 2017 โ ) net sales for fiscal 2018 increased to $ 2.81 billion from $ 2.39 billion in the prior year . net sales of our segments are reported before intercompany eliminations . net sales of our wholesale operations segment increased to $ 2.45 billion from $ 2.01 billion in the comparable period last year . net sales from our dkny and donna karan product lines accounted for $ 250.2 million in fiscal 2018 compared to $ 16.6 million in fiscal 2017 when we operated the business for only two months . the increase in net sales of our wholesale operations segment was also a result of a $ 138.6 million increase in net sales of tommy hilfiger licensed products primarily from our denim , women 's sportswear and women 's outerwear product categories , which were recently launched , as well as an increase in net sales in the men 's outerwear and dresses categories . the increase in net sales was also driven by a $ 85.7 million increase in net sales of calvin klein licensed products , primarily from dresses and women 's performance wear , and a $ 34.2 million increase in net sales of karl lagerfeld paris licensed products . these increases are offset , in part , by a $ 38.3 million decrease in net sales of private label products and a $ 15.7 million decrease in net sales of jessica simpson licensed products , for which the license agreement was terminated in june 2017. net sales of our retail operations segment increased to $ 502.5 million from $ 474.2 million in the same period last year . our retail operations report on a 52/53 week fiscal year . net sales increased by $ 6.9 million as a result of fiscal 2018 containing 53 weeks compared to 52 weeks in fiscal 2017. the remainder of the increase in net sales was due to $ 69.9 million in net sales
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2,573 | we believe that the best opportunity for increasing sales in china will be best met by having a strong presence directly in the country . we expect that internal cash flow from our operations , as well as financing available through lenders will continue to fund our growth opportunities . we will continue our dividend program as we believe that our cash flows can support our growth initiatives and also reward our shareholders at the same time . we will emphasize gross margin improvement . gross margin improvement requires cost reduction , new products emphasizing more complete motion control systems and a support structure trained to sell , apply and service our products and customers . we made good progress in 2012 and these initiatives will continue in 2013. further development and promotion of our parent brand , allied motion , will continue in 2013. a global structure has been defined and we intend to use that to our advantage in the marketplace . and last but not least , we are taking our commitment to ast to a new level as we have invested in additional resources as part of our operational excellence team . as always , we will continuously utilize ast to improve efficiencies and eliminate waste throughout our company . ast is critical to and helps create the path to success in all regions of the world . 10 operating results year 2012 compared to 2011 replace_table_token_4_th net income : the company achieved net income for the year ended december 31 , 2012 of $ 5,397,000 or $ .63 per diluted share compared to $ 6,967,000 or $ 0.81 per diluted share for 2011. the 2011 results include a $ 1.1 million adjustment to the earnout that was part of the รถstergrens acquisition in 2010. excluding the earnout adjustment of $ 1.1 million , the company 's net income for 2011 was $ 0.68 per diluted share , and the company 's net income decreased 7 % , or $ 0.05 per diluted share . ebitda and adjusted ebitda : ebitda was $ 9,309,000 and $ 11,774,000 for 2012 and 2011 , respectively . adjusted ebitda was $ 9,918,000 for 2012 compared to $ 11,376,000 for 2011. ebitda and adjusted ebitda are non-gaap measurements . ebitda consists of income before interest expense , provision for income taxes , depreciation and amortization . adjusted ebitda is before stock compensation expense , as well as other nonrecurring items , such as adjustments to the earnout related to the รถstergrens acquisition . see information included in `` non-gaap measures `` below for a reconciliation of net income to ebitda and adjusted ebitda . revenues : revenues were $ 101,968,000 in 2012 compared to $ 110,941,000 in 2011. the 8 % decrease in sales from last year was the result of decreased sales in virtually all of our major industry sectors , partially offset by increased sales into the company 's medical markets . the 8 % decrease in sales is comprised of a 4 % decrease in sales to us customers and a 13 % decrease in sales to non-us customers . 56 % of our sales for the year were to us customers with the balance of our sales to customers primarily in europe , canada and asia . of the 8 % decrease in revenues , 6 % was due to a decrease in sales volume for the year and 2 % was due to the dollar strengthening against the foreign currencies in which the company does business , primarily the euro and the swedish krona . 11 backlog : the company 's backlog at december 31 , 2012 consisted of sales orders totaling approximately $ 32,915,000 while backlog at december 31 , 2011 was $ 44,005,000 reflecting a 25 % decrease from the end of 2011. backlog may fluctuate up or down throughout the year for various reasons , not limited to the following : customer order patterns , annual versus intermittent orders , and long-term blanket orders versus new product orders . beginning in 2013 , for booking reporting purposes , we will no longer include the full value of the blanket orders when received and will only report them as bookings once a release date is provided from the customer . gross margin : gross margin as a percentage of revenues was 29 % and 30 % for 2012 and 2011 , respectively . this 1 % decrease in gross margin for 2012 , when compared to 2011 , was due to the sales mix , lower fixed overhead absorption based on the lower sales , and a warranty charge that was recorded to cover the expected costs of replacing certain products in the field due to an incorrect electronic component in a printed circuit board supplied by one of the company 's sub-contract suppliers . selling expenses : selling expenses were $ 5,093,000 and $ 5,626,000 in 2012 and 2011 , respectively . the 9 % decrease in 2012 is primarily due to a change in responsibility for certain employees of the company who were previously involved in sales , as well as lower sales incentive compensation when compared to 2011. general and administrative expenses : general and administrative expenses were $ 10,811,000 in 2012 and $ 12,639,000 for 2011. the 14 % decrease is primarily a result of lower compensation expense , which includes incentive bonuses . amortization of intangible assets : amortization of intangible assets expense was $ 548,000 and $ 732,000 in 2012 and 2011 , respectively . the 25 % decrease is the result of certain intangible assets becoming fully amortized in 2012. income taxes : provision for income taxes was $ 2,101,000 and $ 2,552,000 for 2012 and 2011 , respectively . the effective income tax rate as a percentage of income before income taxes was 28.0 % and 26.8 % in 2012 and 2011 , respectively . the effective tax rate for 2012 and 2011 is lower story_separator_special_tag we believe that the best opportunity for increasing sales in china will be best met by having a strong presence directly in the country . we expect that internal cash flow from our operations , as well as financing available through lenders will continue to fund our growth opportunities . we will continue our dividend program as we believe that our cash flows can support our growth initiatives and also reward our shareholders at the same time . we will emphasize gross margin improvement . gross margin improvement requires cost reduction , new products emphasizing more complete motion control systems and a support structure trained to sell , apply and service our products and customers . we made good progress in 2012 and these initiatives will continue in 2013. further development and promotion of our parent brand , allied motion , will continue in 2013. a global structure has been defined and we intend to use that to our advantage in the marketplace . and last but not least , we are taking our commitment to ast to a new level as we have invested in additional resources as part of our operational excellence team . as always , we will continuously utilize ast to improve efficiencies and eliminate waste throughout our company . ast is critical to and helps create the path to success in all regions of the world . 10 operating results year 2012 compared to 2011 replace_table_token_4_th net income : the company achieved net income for the year ended december 31 , 2012 of $ 5,397,000 or $ .63 per diluted share compared to $ 6,967,000 or $ 0.81 per diluted share for 2011. the 2011 results include a $ 1.1 million adjustment to the earnout that was part of the รถstergrens acquisition in 2010. excluding the earnout adjustment of $ 1.1 million , the company 's net income for 2011 was $ 0.68 per diluted share , and the company 's net income decreased 7 % , or $ 0.05 per diluted share . ebitda and adjusted ebitda : ebitda was $ 9,309,000 and $ 11,774,000 for 2012 and 2011 , respectively . adjusted ebitda was $ 9,918,000 for 2012 compared to $ 11,376,000 for 2011. ebitda and adjusted ebitda are non-gaap measurements . ebitda consists of income before interest expense , provision for income taxes , depreciation and amortization . adjusted ebitda is before stock compensation expense , as well as other nonrecurring items , such as adjustments to the earnout related to the รถstergrens acquisition . see information included in `` non-gaap measures `` below for a reconciliation of net income to ebitda and adjusted ebitda . revenues : revenues were $ 101,968,000 in 2012 compared to $ 110,941,000 in 2011. the 8 % decrease in sales from last year was the result of decreased sales in virtually all of our major industry sectors , partially offset by increased sales into the company 's medical markets . the 8 % decrease in sales is comprised of a 4 % decrease in sales to us customers and a 13 % decrease in sales to non-us customers . 56 % of our sales for the year were to us customers with the balance of our sales to customers primarily in europe , canada and asia . of the 8 % decrease in revenues , 6 % was due to a decrease in sales volume for the year and 2 % was due to the dollar strengthening against the foreign currencies in which the company does business , primarily the euro and the swedish krona . 11 backlog : the company 's backlog at december 31 , 2012 consisted of sales orders totaling approximately $ 32,915,000 while backlog at december 31 , 2011 was $ 44,005,000 reflecting a 25 % decrease from the end of 2011. backlog may fluctuate up or down throughout the year for various reasons , not limited to the following : customer order patterns , annual versus intermittent orders , and long-term blanket orders versus new product orders . beginning in 2013 , for booking reporting purposes , we will no longer include the full value of the blanket orders when received and will only report them as bookings once a release date is provided from the customer . gross margin : gross margin as a percentage of revenues was 29 % and 30 % for 2012 and 2011 , respectively . this 1 % decrease in gross margin for 2012 , when compared to 2011 , was due to the sales mix , lower fixed overhead absorption based on the lower sales , and a warranty charge that was recorded to cover the expected costs of replacing certain products in the field due to an incorrect electronic component in a printed circuit board supplied by one of the company 's sub-contract suppliers . selling expenses : selling expenses were $ 5,093,000 and $ 5,626,000 in 2012 and 2011 , respectively . the 9 % decrease in 2012 is primarily due to a change in responsibility for certain employees of the company who were previously involved in sales , as well as lower sales incentive compensation when compared to 2011. general and administrative expenses : general and administrative expenses were $ 10,811,000 in 2012 and $ 12,639,000 for 2011. the 14 % decrease is primarily a result of lower compensation expense , which includes incentive bonuses . amortization of intangible assets : amortization of intangible assets expense was $ 548,000 and $ 732,000 in 2012 and 2011 , respectively . the 25 % decrease is the result of certain intangible assets becoming fully amortized in 2012. income taxes : provision for income taxes was $ 2,101,000 and $ 2,552,000 for 2012 and 2011 , respectively . the effective income tax rate as a percentage of income before income taxes was 28.0 % and 26.8 % in 2012 and 2011 , respectively . the effective tax rate for 2012 and 2011 is lower
| liquidity and capital resources the company 's liquidity position as measured by cash and cash equivalents increased $ 573,000 during 2012 to a balance of $ 9,728,000 at december 31 , 2012 , compared to an increase of 5,602,000 during 2011. during 2012 , operations provided $ 4,604,000 in cash compared to $ 8,881,000 provided for 2011. the decrease in cash provided from operations of $ 4,277,000 is due to lower profits , higher incentive bonus payments made in 2012 for bonuses earned in 2011 and higher tax payments . net cash used in investing activities was $ 3,947,000 and $ 2,181,000 for 2012 and 2011 , respectively . purchases of property and equipment were $ 2,597,000 and $ 1,849,000 in 2012 and 2011 , respectively . investing activities also included a payment of $ 1,350,000 , which is the final portion of consideration for the รถstergrens acquisition . net cash used in financing activities was $ 244,000 in 2012 compared to $ 838,000 for 2011. the decrease in cash used in 2012 is primarily due to the company paying off debt in 2011. the activity in 2012 consists of dividend payments to shareholders , primarily offset by more company stock purchased by the allied motion employee stock ownership plan ( esop ) , based on higher company contributions to the plan for 2011. at december 31 , 2012 , the company had $ 397,000 in debt obligations . the average outstanding borrowings for 2012 were $ 198,000. the company 's credit agreement , as amended , is used for borrowing needs that may occur in the united states and europe . the credit agreement provides revolving credit up to $ 4 million and 3 million . borrowings under the revolver incur interest of libor plus 1.5 % . overnight borrowings incur interest at prime plus 0.50 % . the unused portion of the revolver is charged a commitment fee of .375 % per annum . the credit agreement contains certain financial covenants related to maximum leverage , minimum fixed charge coverage and minimum tangible net worth of the company .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources the company 's liquidity position as measured by cash and cash equivalents increased $ 573,000 during 2012 to a balance of $ 9,728,000 at december 31 , 2012 , compared to an increase of 5,602,000 during 2011. during 2012 , operations provided $ 4,604,000 in cash compared to $ 8,881,000 provided for 2011. the decrease in cash provided from operations of $ 4,277,000 is due to lower profits , higher incentive bonus payments made in 2012 for bonuses earned in 2011 and higher tax payments . net cash used in investing activities was $ 3,947,000 and $ 2,181,000 for 2012 and 2011 , respectively . purchases of property and equipment were $ 2,597,000 and $ 1,849,000 in 2012 and 2011 , respectively . investing activities also included a payment of $ 1,350,000 , which is the final portion of consideration for the รถstergrens acquisition . net cash used in financing activities was $ 244,000 in 2012 compared to $ 838,000 for 2011. the decrease in cash used in 2012 is primarily due to the company paying off debt in 2011. the activity in 2012 consists of dividend payments to shareholders , primarily offset by more company stock purchased by the allied motion employee stock ownership plan ( esop ) , based on higher company contributions to the plan for 2011. at december 31 , 2012 , the company had $ 397,000 in debt obligations . the average outstanding borrowings for 2012 were $ 198,000. the company 's credit agreement , as amended , is used for borrowing needs that may occur in the united states and europe . the credit agreement provides revolving credit up to $ 4 million and 3 million . borrowings under the revolver incur interest of libor plus 1.5 % . overnight borrowings incur interest at prime plus 0.50 % . the unused portion of the revolver is charged a commitment fee of .375 % per annum . the credit agreement contains certain financial covenants related to maximum leverage , minimum fixed charge coverage and minimum tangible net worth of the company .
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Suspicious Activity Report : we believe that the best opportunity for increasing sales in china will be best met by having a strong presence directly in the country . we expect that internal cash flow from our operations , as well as financing available through lenders will continue to fund our growth opportunities . we will continue our dividend program as we believe that our cash flows can support our growth initiatives and also reward our shareholders at the same time . we will emphasize gross margin improvement . gross margin improvement requires cost reduction , new products emphasizing more complete motion control systems and a support structure trained to sell , apply and service our products and customers . we made good progress in 2012 and these initiatives will continue in 2013. further development and promotion of our parent brand , allied motion , will continue in 2013. a global structure has been defined and we intend to use that to our advantage in the marketplace . and last but not least , we are taking our commitment to ast to a new level as we have invested in additional resources as part of our operational excellence team . as always , we will continuously utilize ast to improve efficiencies and eliminate waste throughout our company . ast is critical to and helps create the path to success in all regions of the world . 10 operating results year 2012 compared to 2011 replace_table_token_4_th net income : the company achieved net income for the year ended december 31 , 2012 of $ 5,397,000 or $ .63 per diluted share compared to $ 6,967,000 or $ 0.81 per diluted share for 2011. the 2011 results include a $ 1.1 million adjustment to the earnout that was part of the รถstergrens acquisition in 2010. excluding the earnout adjustment of $ 1.1 million , the company 's net income for 2011 was $ 0.68 per diluted share , and the company 's net income decreased 7 % , or $ 0.05 per diluted share . ebitda and adjusted ebitda : ebitda was $ 9,309,000 and $ 11,774,000 for 2012 and 2011 , respectively . adjusted ebitda was $ 9,918,000 for 2012 compared to $ 11,376,000 for 2011. ebitda and adjusted ebitda are non-gaap measurements . ebitda consists of income before interest expense , provision for income taxes , depreciation and amortization . adjusted ebitda is before stock compensation expense , as well as other nonrecurring items , such as adjustments to the earnout related to the รถstergrens acquisition . see information included in `` non-gaap measures `` below for a reconciliation of net income to ebitda and adjusted ebitda . revenues : revenues were $ 101,968,000 in 2012 compared to $ 110,941,000 in 2011. the 8 % decrease in sales from last year was the result of decreased sales in virtually all of our major industry sectors , partially offset by increased sales into the company 's medical markets . the 8 % decrease in sales is comprised of a 4 % decrease in sales to us customers and a 13 % decrease in sales to non-us customers . 56 % of our sales for the year were to us customers with the balance of our sales to customers primarily in europe , canada and asia . of the 8 % decrease in revenues , 6 % was due to a decrease in sales volume for the year and 2 % was due to the dollar strengthening against the foreign currencies in which the company does business , primarily the euro and the swedish krona . 11 backlog : the company 's backlog at december 31 , 2012 consisted of sales orders totaling approximately $ 32,915,000 while backlog at december 31 , 2011 was $ 44,005,000 reflecting a 25 % decrease from the end of 2011. backlog may fluctuate up or down throughout the year for various reasons , not limited to the following : customer order patterns , annual versus intermittent orders , and long-term blanket orders versus new product orders . beginning in 2013 , for booking reporting purposes , we will no longer include the full value of the blanket orders when received and will only report them as bookings once a release date is provided from the customer . gross margin : gross margin as a percentage of revenues was 29 % and 30 % for 2012 and 2011 , respectively . this 1 % decrease in gross margin for 2012 , when compared to 2011 , was due to the sales mix , lower fixed overhead absorption based on the lower sales , and a warranty charge that was recorded to cover the expected costs of replacing certain products in the field due to an incorrect electronic component in a printed circuit board supplied by one of the company 's sub-contract suppliers . selling expenses : selling expenses were $ 5,093,000 and $ 5,626,000 in 2012 and 2011 , respectively . the 9 % decrease in 2012 is primarily due to a change in responsibility for certain employees of the company who were previously involved in sales , as well as lower sales incentive compensation when compared to 2011. general and administrative expenses : general and administrative expenses were $ 10,811,000 in 2012 and $ 12,639,000 for 2011. the 14 % decrease is primarily a result of lower compensation expense , which includes incentive bonuses . amortization of intangible assets : amortization of intangible assets expense was $ 548,000 and $ 732,000 in 2012 and 2011 , respectively . the 25 % decrease is the result of certain intangible assets becoming fully amortized in 2012. income taxes : provision for income taxes was $ 2,101,000 and $ 2,552,000 for 2012 and 2011 , respectively . the effective income tax rate as a percentage of income before income taxes was 28.0 % and 26.8 % in 2012 and 2011 , respectively . the effective tax rate for 2012 and 2011 is lower story_separator_special_tag we believe that the best opportunity for increasing sales in china will be best met by having a strong presence directly in the country . we expect that internal cash flow from our operations , as well as financing available through lenders will continue to fund our growth opportunities . we will continue our dividend program as we believe that our cash flows can support our growth initiatives and also reward our shareholders at the same time . we will emphasize gross margin improvement . gross margin improvement requires cost reduction , new products emphasizing more complete motion control systems and a support structure trained to sell , apply and service our products and customers . we made good progress in 2012 and these initiatives will continue in 2013. further development and promotion of our parent brand , allied motion , will continue in 2013. a global structure has been defined and we intend to use that to our advantage in the marketplace . and last but not least , we are taking our commitment to ast to a new level as we have invested in additional resources as part of our operational excellence team . as always , we will continuously utilize ast to improve efficiencies and eliminate waste throughout our company . ast is critical to and helps create the path to success in all regions of the world . 10 operating results year 2012 compared to 2011 replace_table_token_4_th net income : the company achieved net income for the year ended december 31 , 2012 of $ 5,397,000 or $ .63 per diluted share compared to $ 6,967,000 or $ 0.81 per diluted share for 2011. the 2011 results include a $ 1.1 million adjustment to the earnout that was part of the รถstergrens acquisition in 2010. excluding the earnout adjustment of $ 1.1 million , the company 's net income for 2011 was $ 0.68 per diluted share , and the company 's net income decreased 7 % , or $ 0.05 per diluted share . ebitda and adjusted ebitda : ebitda was $ 9,309,000 and $ 11,774,000 for 2012 and 2011 , respectively . adjusted ebitda was $ 9,918,000 for 2012 compared to $ 11,376,000 for 2011. ebitda and adjusted ebitda are non-gaap measurements . ebitda consists of income before interest expense , provision for income taxes , depreciation and amortization . adjusted ebitda is before stock compensation expense , as well as other nonrecurring items , such as adjustments to the earnout related to the รถstergrens acquisition . see information included in `` non-gaap measures `` below for a reconciliation of net income to ebitda and adjusted ebitda . revenues : revenues were $ 101,968,000 in 2012 compared to $ 110,941,000 in 2011. the 8 % decrease in sales from last year was the result of decreased sales in virtually all of our major industry sectors , partially offset by increased sales into the company 's medical markets . the 8 % decrease in sales is comprised of a 4 % decrease in sales to us customers and a 13 % decrease in sales to non-us customers . 56 % of our sales for the year were to us customers with the balance of our sales to customers primarily in europe , canada and asia . of the 8 % decrease in revenues , 6 % was due to a decrease in sales volume for the year and 2 % was due to the dollar strengthening against the foreign currencies in which the company does business , primarily the euro and the swedish krona . 11 backlog : the company 's backlog at december 31 , 2012 consisted of sales orders totaling approximately $ 32,915,000 while backlog at december 31 , 2011 was $ 44,005,000 reflecting a 25 % decrease from the end of 2011. backlog may fluctuate up or down throughout the year for various reasons , not limited to the following : customer order patterns , annual versus intermittent orders , and long-term blanket orders versus new product orders . beginning in 2013 , for booking reporting purposes , we will no longer include the full value of the blanket orders when received and will only report them as bookings once a release date is provided from the customer . gross margin : gross margin as a percentage of revenues was 29 % and 30 % for 2012 and 2011 , respectively . this 1 % decrease in gross margin for 2012 , when compared to 2011 , was due to the sales mix , lower fixed overhead absorption based on the lower sales , and a warranty charge that was recorded to cover the expected costs of replacing certain products in the field due to an incorrect electronic component in a printed circuit board supplied by one of the company 's sub-contract suppliers . selling expenses : selling expenses were $ 5,093,000 and $ 5,626,000 in 2012 and 2011 , respectively . the 9 % decrease in 2012 is primarily due to a change in responsibility for certain employees of the company who were previously involved in sales , as well as lower sales incentive compensation when compared to 2011. general and administrative expenses : general and administrative expenses were $ 10,811,000 in 2012 and $ 12,639,000 for 2011. the 14 % decrease is primarily a result of lower compensation expense , which includes incentive bonuses . amortization of intangible assets : amortization of intangible assets expense was $ 548,000 and $ 732,000 in 2012 and 2011 , respectively . the 25 % decrease is the result of certain intangible assets becoming fully amortized in 2012. income taxes : provision for income taxes was $ 2,101,000 and $ 2,552,000 for 2012 and 2011 , respectively . the effective income tax rate as a percentage of income before income taxes was 28.0 % and 26.8 % in 2012 and 2011 , respectively . the effective tax rate for 2012 and 2011 is lower
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2,574 | in the industry since 1984 and began operating as a reit for federal income tax purposes effective january 1 , 2013. as a result of the reit conversion , we reorganized our operations and moved non-real estate components into trss . through the trs structure , the portion of our businesses which are non-real estate related , such as our managed-only contracts , international operations , electronic monitoring services , and other non-residential and community based facilities , are part of wholly-owned taxable subsidiaries of the reit . most of our business segments , which are real estate related and involve company-owned and company-leased facilities , are part of the reit . the trs structure allows us to maintain the strategic alignment of almost all of our diversified business segments under one entity . the trs assets and operations will continue to be subject to federal and state corporate income taxes and to foreign taxes as applicable in the jurisdictions in which those assets and operations are located . 55 as a reit , we are required to distribute annually at least 90 % of our reit taxable income ( determined without regard to the dividends paid deduction and by excluding net capital gain ) and we began paying regular distributions in 2013. we declared and paid the following regular reit distributions to our shareholders for the years ended december 31 , 2017 , 2016 and 2015 which were treated for federal income taxes as follows ( retroactively adjusted to reflect the effects of our 3-for-2 stock split ) : replace_table_token_16_th ( 1 ) the amount constitutes a ยqualified dividendย , as defined by the internal revenue service . ( 2 ) the amount constitutes a ยreturn of capitalย , as defined by the internal revenue service . critical accounting policies we believe that the accounting policies described below are critical to understanding our business , results of operations and financial condition because they involve the more significant judgments and estimates used in the preparation of our consolidated financial statements . we have discussed the development , selection and application of our critical accounting policies with the audit committee of our board of directors , and our audit committee has reviewed our disclosure relating to our critical accounting policies in this ยmanagement 's discussion and analysis of financial condition and results of operations.ย our consolidated financial statements are prepared in conformity with accounting principles generally accepted in the united states . as such , we are required to make certain estimates , judgments and assumptions that we believe are reasonable based upon the information available . these estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . we routinely evaluate our estimates based on historical experience and on various other assumptions that our management believes are reasonable under the circumstances . actual results may differ from these estimates under different assumptions or conditions . if actual results significantly differ from our estimates , our financial condition and results of operations could be materially impacted . other significant accounting policies , primarily those with lower levels of uncertainty than those discussed below , are also critical to understanding our consolidated financial statements . the notes to our consolidated financial statements contain additional information related to our accounting policies and should be read in conjunction with this discussion . revenue recognition facility management revenues are recognized as services are provided under facility management contracts with approved government appropriations based on a net rate per day per inmate or on a fixed monthly rate , as 56 applicable . a limited number of our contracts have provisions upon which a small portion of the revenue for the contract is based on the performance of certain targets . revenue based on the performance of certain targets is less than 1 % of our consolidated annual revenues . these performance targets are based on specific criteria to be met over specific periods of time . such criteria includes our ability to achieve certain contractual benchmarks relative to the quality of service we provide , non-occurrence of certain disruptive events , effectiveness of our quality control programs and our responsiveness to customer requirements and concerns . for the limited number of contracts where revenue is based on the performance of certain targets , revenue is either ( i ) recorded pro rata when revenue is fixed and determinable or ( ii ) recorded when the specified time period lapses . in many instances , we are a party to more than one contract with a single entity . in these instances , each contract is accounted for separately . construction revenues are recognized from our contracts with certain customers to perform construction and design services ( ยproject development servicesย ) for various facilities . in these instances , we act as the primary developer and subcontract with bonded national and or regional design build contractors . these construction revenues are recognized as earned on a percentage of completion basis measured by the percentage of costs incurred to date as compared to the estimated total cost for each contract . provisions for estimated losses on uncompleted contracts and changes to cost estimates are made in the period in which we determine that such losses and changes are probable . typically , we enter into fixed price contracts and do not perform additional work unless approved change orders are in place . costs attributable to unapproved change orders are expensed in the period in which the costs are incurred if we believe that it is not probable that the costs will be recovered through a change in the contract price . story_separator_special_tag we perform the impairment analyses on an annual basis for each of the idle facilities and update each quarter for market developments for the potential utilization of each of the facilities in order to identify events that may cause us to reconsider the most recent assumptions . such events could include negotiations with a prospective customer for the utilization of an idle facility at terms significantly less favorable than used in our most recent impairment analysis , or changes in legislation surrounding a particular facility that could impact our ability to house certain types of inmates at such facility . further , a substantial increase in the number of available beds at other facilities that we own , or in the marketplace , could lead to deterioration in market conditions and projected cash flows . although they are not frequently received , an unsolicited offer to purchase any of our idle facilities , at amounts that are less than their carrying value could also cause us to reconsider the assumptions used in the most recent impairment analysis . we have identified marketing prospects to utilize each of the remaining currently idled facilities and do not see any catalysts that would result in a current impairment . however , we can provide no assurance that we will be able to secure management contracts to utilize our idle facilities , or that we will not incur impairment charges in the future . in all cases , the projected undiscounted cash flows in our analysis as of december 31 , 2017 substantially exceeded the carrying amounts of each facility . our evaluations also take into consideration historical experience in securing new management contracts to utilize facilities that had been previously idled for periods comparable to or in excess of the periods our currently idle facilities have been idled . such previously idle facilities are currently being operated under contracts that generate cash flows resulting in the recoverability of the net book value of the previously idled facilities by substantial amounts . due to a variety of factors , the lead time to negotiate contracts with federal and state agencies to utilize idle bed capacity is generally lengthy which has historically resulted in periods of idleness similar to the ones we are currently experiencing . as a result of our analyses , we determined each of these assets to have recoverable values substantially in excess of the corresponding carrying values . by their nature , these estimates contain uncertainties with respect to the extent and timing of the respective cash flows due to potential delays or material changes to forecasted terms and conditions in contracts with prospective customers that could impact the estimate of projected cash flows . notwithstanding the effects the current economy has had on our customers ' demand for prison beds in the short term which has led to our decision to idle certain facilities , we believe the long-term trends favor an increase in the utilization of our idle correctional facilities . this belief is also based on our experience in working with governmental agencies faced with significant budgetary challenges which is a primary contributing factor to the lack of appropriated funding to build new bed capacity by federal and state agencies . recent accounting pronouncements recent accounting pronouncements the company implemented the following accounting standards during the year ended december 31 , 2017 : in january 2017 , the financial accounting standards board ( ยfasbย ) issued accounting standards update ( ยasuย ) no . 2017-04 , ยintangibles-goodwill and other , ย which is intended to simplify the test for goodwill impairment . to simplify the subsequent measurement of goodwill , this update eliminates step 2 from the goodwill impairment test . in computing the implied fair value of goodwill under step 2 , an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination . instead , under the amendments in this update , an entity should perform its annual , or interim , goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount . an entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit 's fair value . an entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary . the amendments in this update are effective for public companies for fiscal years beginning after december 15 , 2019 , including interim periods within those fiscal years . early adoption is permitted for interim or annual goodwill tests performed on testing dates after january 1 , 61 2017. we have elected to early adopt this standard during the fourth quarter of 2017. the implementation of this standard did not have a material impact on our financial position , results of operations or cash flows . in march 2016 , the fasb issued asu no . 2016-09 , ยcompensation ย stock compensation ( topic 718 ) , ย as a part of its simplification initiative . the company adopted this asu during 2017. key areas of the amendments in this standard are ( i ) all excess tax benefits ( deficiencies ) from stock plan transactions should be recognized in the income statement as opposed to being recognized in additional paid-in capital ; ( ii ) the tax withholding threshold for triggering liability accounting on a net settlement transaction has been increased from the minimum statutory rate to the maximum statutory rate ; and ( iii ) an entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures as they occur . the guidance also provides clarification of the presentation of certain components of
| liquidity and capital resources amended and restated credit agreement on march 23 , 2017 , we executed a third amended and restated credit agreement by and among the geo group , inc. and geo corrections holdings , inc. , ( ยcorrectionsย and , together with the geo group , inc. , the ยborrowersย ) , the australian borrowers named therein , bnp paribas , as administrative agent , and the lenders who are , or may from time to time become , a party thereto ( the ยcredit agreementย ) . the credit agreement refinances geo 's prior $ 291 million term loan , reestablishes geo 's ability to implement at a later date an australian dollar letter of credit facility ( the ยaustralian lc facilityย ) providing for the issuance of financial letters of credit and performance letters of credit , in each case denominated in australian dollars up to aud275 million , an increase from the prior aud225 million australian dollar letter of credit facility , and certain other modifications to the prior credit agreement . loan costs of approximately $ 7 million were incurred and capitalized in connection with the transaction . the credit agreement evidences a senior credit facility ( the ยsenior credit facilityย ) consisting of an $ 800 million term loan ( the ยterm loanย ) bearing interest at libor plus 2.25 % ( with a libor floor of 0.75 % ) , and a $ 900 million revolving credit facility ( the ยrevolverย ) initially bearing interest at libor plus 2.25 % ( with no libor floor ) together with aud275 million available solely for the issuance of financial letters of credit and performance letters of credit , in each case denominated in australian dollars under the australian lc facility . as of december 31 , 2017 , there were no letters of credit issued under the australian lc facility . amounts to be borrowed by geo under the credit agreement are subject to the satisfaction of customary conditions to borrowing .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources amended and restated credit agreement on march 23 , 2017 , we executed a third amended and restated credit agreement by and among the geo group , inc. and geo corrections holdings , inc. , ( ยcorrectionsย and , together with the geo group , inc. , the ยborrowersย ) , the australian borrowers named therein , bnp paribas , as administrative agent , and the lenders who are , or may from time to time become , a party thereto ( the ยcredit agreementย ) . the credit agreement refinances geo 's prior $ 291 million term loan , reestablishes geo 's ability to implement at a later date an australian dollar letter of credit facility ( the ยaustralian lc facilityย ) providing for the issuance of financial letters of credit and performance letters of credit , in each case denominated in australian dollars up to aud275 million , an increase from the prior aud225 million australian dollar letter of credit facility , and certain other modifications to the prior credit agreement . loan costs of approximately $ 7 million were incurred and capitalized in connection with the transaction . the credit agreement evidences a senior credit facility ( the ยsenior credit facilityย ) consisting of an $ 800 million term loan ( the ยterm loanย ) bearing interest at libor plus 2.25 % ( with a libor floor of 0.75 % ) , and a $ 900 million revolving credit facility ( the ยrevolverย ) initially bearing interest at libor plus 2.25 % ( with no libor floor ) together with aud275 million available solely for the issuance of financial letters of credit and performance letters of credit , in each case denominated in australian dollars under the australian lc facility . as of december 31 , 2017 , there were no letters of credit issued under the australian lc facility . amounts to be borrowed by geo under the credit agreement are subject to the satisfaction of customary conditions to borrowing .
```
Suspicious Activity Report : in the industry since 1984 and began operating as a reit for federal income tax purposes effective january 1 , 2013. as a result of the reit conversion , we reorganized our operations and moved non-real estate components into trss . through the trs structure , the portion of our businesses which are non-real estate related , such as our managed-only contracts , international operations , electronic monitoring services , and other non-residential and community based facilities , are part of wholly-owned taxable subsidiaries of the reit . most of our business segments , which are real estate related and involve company-owned and company-leased facilities , are part of the reit . the trs structure allows us to maintain the strategic alignment of almost all of our diversified business segments under one entity . the trs assets and operations will continue to be subject to federal and state corporate income taxes and to foreign taxes as applicable in the jurisdictions in which those assets and operations are located . 55 as a reit , we are required to distribute annually at least 90 % of our reit taxable income ( determined without regard to the dividends paid deduction and by excluding net capital gain ) and we began paying regular distributions in 2013. we declared and paid the following regular reit distributions to our shareholders for the years ended december 31 , 2017 , 2016 and 2015 which were treated for federal income taxes as follows ( retroactively adjusted to reflect the effects of our 3-for-2 stock split ) : replace_table_token_16_th ( 1 ) the amount constitutes a ยqualified dividendย , as defined by the internal revenue service . ( 2 ) the amount constitutes a ยreturn of capitalย , as defined by the internal revenue service . critical accounting policies we believe that the accounting policies described below are critical to understanding our business , results of operations and financial condition because they involve the more significant judgments and estimates used in the preparation of our consolidated financial statements . we have discussed the development , selection and application of our critical accounting policies with the audit committee of our board of directors , and our audit committee has reviewed our disclosure relating to our critical accounting policies in this ยmanagement 's discussion and analysis of financial condition and results of operations.ย our consolidated financial statements are prepared in conformity with accounting principles generally accepted in the united states . as such , we are required to make certain estimates , judgments and assumptions that we believe are reasonable based upon the information available . these estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . we routinely evaluate our estimates based on historical experience and on various other assumptions that our management believes are reasonable under the circumstances . actual results may differ from these estimates under different assumptions or conditions . if actual results significantly differ from our estimates , our financial condition and results of operations could be materially impacted . other significant accounting policies , primarily those with lower levels of uncertainty than those discussed below , are also critical to understanding our consolidated financial statements . the notes to our consolidated financial statements contain additional information related to our accounting policies and should be read in conjunction with this discussion . revenue recognition facility management revenues are recognized as services are provided under facility management contracts with approved government appropriations based on a net rate per day per inmate or on a fixed monthly rate , as 56 applicable . a limited number of our contracts have provisions upon which a small portion of the revenue for the contract is based on the performance of certain targets . revenue based on the performance of certain targets is less than 1 % of our consolidated annual revenues . these performance targets are based on specific criteria to be met over specific periods of time . such criteria includes our ability to achieve certain contractual benchmarks relative to the quality of service we provide , non-occurrence of certain disruptive events , effectiveness of our quality control programs and our responsiveness to customer requirements and concerns . for the limited number of contracts where revenue is based on the performance of certain targets , revenue is either ( i ) recorded pro rata when revenue is fixed and determinable or ( ii ) recorded when the specified time period lapses . in many instances , we are a party to more than one contract with a single entity . in these instances , each contract is accounted for separately . construction revenues are recognized from our contracts with certain customers to perform construction and design services ( ยproject development servicesย ) for various facilities . in these instances , we act as the primary developer and subcontract with bonded national and or regional design build contractors . these construction revenues are recognized as earned on a percentage of completion basis measured by the percentage of costs incurred to date as compared to the estimated total cost for each contract . provisions for estimated losses on uncompleted contracts and changes to cost estimates are made in the period in which we determine that such losses and changes are probable . typically , we enter into fixed price contracts and do not perform additional work unless approved change orders are in place . costs attributable to unapproved change orders are expensed in the period in which the costs are incurred if we believe that it is not probable that the costs will be recovered through a change in the contract price . story_separator_special_tag we perform the impairment analyses on an annual basis for each of the idle facilities and update each quarter for market developments for the potential utilization of each of the facilities in order to identify events that may cause us to reconsider the most recent assumptions . such events could include negotiations with a prospective customer for the utilization of an idle facility at terms significantly less favorable than used in our most recent impairment analysis , or changes in legislation surrounding a particular facility that could impact our ability to house certain types of inmates at such facility . further , a substantial increase in the number of available beds at other facilities that we own , or in the marketplace , could lead to deterioration in market conditions and projected cash flows . although they are not frequently received , an unsolicited offer to purchase any of our idle facilities , at amounts that are less than their carrying value could also cause us to reconsider the assumptions used in the most recent impairment analysis . we have identified marketing prospects to utilize each of the remaining currently idled facilities and do not see any catalysts that would result in a current impairment . however , we can provide no assurance that we will be able to secure management contracts to utilize our idle facilities , or that we will not incur impairment charges in the future . in all cases , the projected undiscounted cash flows in our analysis as of december 31 , 2017 substantially exceeded the carrying amounts of each facility . our evaluations also take into consideration historical experience in securing new management contracts to utilize facilities that had been previously idled for periods comparable to or in excess of the periods our currently idle facilities have been idled . such previously idle facilities are currently being operated under contracts that generate cash flows resulting in the recoverability of the net book value of the previously idled facilities by substantial amounts . due to a variety of factors , the lead time to negotiate contracts with federal and state agencies to utilize idle bed capacity is generally lengthy which has historically resulted in periods of idleness similar to the ones we are currently experiencing . as a result of our analyses , we determined each of these assets to have recoverable values substantially in excess of the corresponding carrying values . by their nature , these estimates contain uncertainties with respect to the extent and timing of the respective cash flows due to potential delays or material changes to forecasted terms and conditions in contracts with prospective customers that could impact the estimate of projected cash flows . notwithstanding the effects the current economy has had on our customers ' demand for prison beds in the short term which has led to our decision to idle certain facilities , we believe the long-term trends favor an increase in the utilization of our idle correctional facilities . this belief is also based on our experience in working with governmental agencies faced with significant budgetary challenges which is a primary contributing factor to the lack of appropriated funding to build new bed capacity by federal and state agencies . recent accounting pronouncements recent accounting pronouncements the company implemented the following accounting standards during the year ended december 31 , 2017 : in january 2017 , the financial accounting standards board ( ยfasbย ) issued accounting standards update ( ยasuย ) no . 2017-04 , ยintangibles-goodwill and other , ย which is intended to simplify the test for goodwill impairment . to simplify the subsequent measurement of goodwill , this update eliminates step 2 from the goodwill impairment test . in computing the implied fair value of goodwill under step 2 , an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination . instead , under the amendments in this update , an entity should perform its annual , or interim , goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount . an entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit 's fair value . an entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary . the amendments in this update are effective for public companies for fiscal years beginning after december 15 , 2019 , including interim periods within those fiscal years . early adoption is permitted for interim or annual goodwill tests performed on testing dates after january 1 , 61 2017. we have elected to early adopt this standard during the fourth quarter of 2017. the implementation of this standard did not have a material impact on our financial position , results of operations or cash flows . in march 2016 , the fasb issued asu no . 2016-09 , ยcompensation ย stock compensation ( topic 718 ) , ย as a part of its simplification initiative . the company adopted this asu during 2017. key areas of the amendments in this standard are ( i ) all excess tax benefits ( deficiencies ) from stock plan transactions should be recognized in the income statement as opposed to being recognized in additional paid-in capital ; ( ii ) the tax withholding threshold for triggering liability accounting on a net settlement transaction has been increased from the minimum statutory rate to the maximum statutory rate ; and ( iii ) an entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures as they occur . the guidance also provides clarification of the presentation of certain components of
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2,575 | company-operated shop-in-shop/concession locations worldwide under our tommy hilfiger and calvin klein trademarks , and ( c ) digital commerce sites in over 30 countries under our tommy hilfiger and calvin klein trademarks and in the united states through our directly operated digital commerce sites for speedo , true & co . , van heusen , and izod , as well as our 32 stylebureau .com site . additionally , we generate royalty , advertising and other revenue from fees for licensing the use of our trademarks . we manage our operations through our operating divisions , which are presented as six reportable segments : ( i ) tommy hilfiger north america ; ( ii ) tommy hilfiger international ; ( iii ) calvin klein north america ; ( iv ) calvin klein international ; ( v ) heritage brands wholesale ; and ( vi ) heritage brands retail . we have entered into the following transactions that have impacted our results of operations and the comparability among the years , including our 2020 expectations as compared to 2019 , as discussed below : we entered into a definitive agreement on january 9 , 2020 to sell our speedo north america business to pentland for $ 170 million in cash , subject to a working capital adjustment , as described above . we recorded a pre-tax noncash loss of $ 142 million in the fourth quarter of 2019 related to the speedo transaction and expected deconsolidation of the net assets of the business , consisting of ( i ) a noncash impairment of our perpetual license right for the speedo trademark and ( ii ) a noncash loss to reduce the carrying value of the business to its estimated fair value , less costs to sell . we entered into agreements on july 3 , 2019 to terminate early the licenses for the global calvin klein and tommy hilfiger north america socks and hosiery businesses in order to consolidate the socks and hosiery businesses for all of our brands in the united states and canada in a newly formed joint venture , pvh legwear , in which we own a 49 % economic interest , and to bring in-house the international calvin klein socks and hosiery wholesale businesses . pvh legwear was formed with a wholly owned subsidiary of our former heritage brands socks and hosiery licensee , and licenses from us the rights to distribute and sell tommy hilfiger , calvin klein , izod , van heusen and warner 's socks and hosiery beginning in december 2019. we recorded a pre-tax charge of $ 60 million during 2019 in connection with these agreements . we completed the australia and th csap acquisitions in the second quarter of 2019. the australia acquisition closed on may 31 , 2019. prior to the closing , we , along with gazal , jointly owned and managed a joint venture , pvh australia , which licensed and operated businesses under the tommy hilfiger , calvin klein and van heusen brands , along with other owned and licensed brands . pvh australia came under our full control as a result of the australia acquisition and we now operate directly those businesses . the aggregate net purchase price for the shares acquired was $ 59 million , net of cash acquired and after taking into account the proceeds from the divestiture to a third party of an office building and warehouse owned by gazal in june 2019. we completed the th csap acquisition on july 1 , 2019 for $ 74 million , as a result of which we now operate directly the tommy hilfiger retail business in the central and southeast asia market . please see note 3 , โ acquisitions , โ in the notes to consolidated financial statements included in item 8 of this report for further discussion . in connection with the australia and th csap acquisitions , we recorded an aggregate net pre-tax gain of $ 83 million during 2019 , including ( i ) a noncash gain of $ 113 million to write up our existing equity investments in gazal and pvh australia to fair value , partially offset by ( ii ) $ 21 million of pre-tax costs , primarily consisting of noncash valuation adjustments and one-time expenses recorded on our equity investments in gazal and pvh australia prior to the australia acquisition closing , and ( iii ) a $ 9 million expense recorded in interest expense , net resulting from the remeasurement of our mandatorily redeemable non-controlling interest that was recognized in connection with the australia acquisition . we entered into a licensing agreement on may 30 , 2019 with g-iii for the design , production and wholesale distribution of calvin klein jeans women 's jeanswear collections in the united states and canada , which resulted in the discontinuation of our directly operated calvin klein north america women 's jeanswear wholesale business in 2019. we refinanced on april 29 , 2019 our senior credit facilities and recorded pre-tax debt modification and extinguishment charges of $ 5 million . please see the section entitled โ liquidity and capital resources โ below for further discussion . we closed our tommy hilfiger flagship and anchor stores in the united states ( the โ th u.s. store closures โ ) in the first quarter of 2019 and recorded pre-tax costs of $ 55 million , primarily consisting of noncash lease asset impairments . please see note 12 , โ fair value measurements , โ in the notes to consolidated financial statements included in item 8 of this report for further discussion of the noncash lease asset impairments . we announced on january 10 , 2019 a restructuring in connection with strategic changes for our calvin klein business ( the โ calvin klein restructuring โ ) . story_separator_special_tag the following table shows our revenue mix between net sales and royalty , advertising and other revenue , as well as our gross margin for 2019 , 2018 and 2017 : replace_table_token_3_th gross profit in 2019 was $ 5.388 billion , or 54.4 % of total revenue , as compared to $ 5.308 billion , or 55.0 % of total revenue , in 2018. the 60 basis point decrease in gross margin was principally driven by ( i ) a gross margin decline in our tommy hilfiger north america business due to more promotional selling as compared to the prior year , ( ii ) the impact of additional inventory reserves recorded in the fourth quarter of 2019 in anticipation of lower 2020 sales trends as a result of the onset of the covid-19 outbreak , ( iii ) short-lived noncash inventory valuation adjustments recorded in connection with the australia and th csap acquisitions , and ( iv ) the negative impact of tariffs imposed on goods imported from china into the united states . these decreases were partially offset by the favorable impact of faster growth in our tommy hilfiger 37 international and calvin klein international segments than in our north america segments , as our international segments generally carry higher gross margins , as well as gross margin improvements realized in our calvin klein north america business . gross profit in 2018 was $ 5.308 billion , or 55.0 % of total revenue , as compared to $ 4.894 billion , or 54.9 % of total revenue , in 2017. the 10 basis point increase in gross margin was principally driven by ( i ) a favorable mix of business due to faster growth in our tommy hilfiger international and calvin klein international segments than in our north america segments , as our international segments generally carry higher gross margins , and ( ii ) gross margin improvement in our tommy hilfiger business . partially offsetting these increases were gross margin declines in our calvin klein and heritage brands businesses principally due to more promotional selling . we currently expect that gross margin in 2020 will decrease as compared to 2019 primarily due to ( i ) the need for increased promotional selling and inventory liquidation as a result of the covid-19 outbreak and ( ii ) the unfavorable impact of the stronger united states dollar on our international businesses that purchase inventory in united states dollars , particularly our european businesses , as the increased local currency value of inventory results in higher cost of goods in local currency when the goods are sold . there is significant uncertainty with respect to the impact of the covid-19 outbreak on our business and the businesses of our licensees and other business partners . sg & a expenses our sg & a expenses were as follows : replace_table_token_4_th sg & a expenses in 2019 were $ 4.715 billion , or 47.6 % of total revenue , as compared to $ 4.433 billion , or 45.9 % of total revenue in 2018. the 170 basis point increase in sg & a expenses as a percentage of total revenue was principally attributable to ( i ) an increase in costs incurred in connection with the calvin klein restructuring , ( ii ) the costs incurred in connection with the socks and hosiery transaction , and ( iii ) the costs incurred in connection with the th u.s. store closures . also contributing to the increase was a change in the mix of business due to faster growth in our tommy hilfiger international and calvin klein international segments than in our north america segments , as our international segments generally carry higher sg & a expenses as percentages of total revenue . sg & a expenses in 2018 were $ 4.433 billion , or 45.9 % of total revenue , as compared to $ 4.245 billion , or 47.6 % of total revenue in 2017. the 170 basis point decrease in sg & a expenses as a percentage of total revenue was principally attributable to the absence in 2018 of costs that were recorded in 2017 in connection with ( i ) the mr. hilfiger amendment , ( ii ) the li & fung termination , and ( iii ) the relocation of our tommy hilfiger office in new york , including noncash depreciation expense . also contributing to the decrease was a leveraging of expenses in the tommy hilfiger business . these decreases were partially offset by ( i ) a change in the mix of business due to faster growth in our tommy hilfiger international and calvin klein international segments than in our north america segments , as our international segments generally carry higher sg & a expenses as percentages of total revenue , ( ii ) the costs incurred in connection with the calvin klein restructuring and ( iii ) an increase in corporate expenses due , in part , to investments in digital and information technology initiatives . in light of the negative impacts on our business resulting from the covid-19 outbreak , we are taking measures to significantly reduce sg & a expenses in 2020. as such , we currently expect our sg & a expenses in 2020 will be significantly lower as compared to 2019 , including as a result of the reductions resulting from these measures and the absence in 2020 of costs related to ( i ) the calvin klein restructuring , ( ii ) the socks and hosiery transaction and ( iii ) the th u.s. store closures . however , we expect our sg & a expenses as a percentage of total revenue in 2020 will increase as compared to 2019 primarily due to a deleveraging of expenses driven by the expected decline in revenue resulting from the covid-19 outbreak . there is significant uncertainty with respect to the impact of the covid-19 outbreak on our business and our sg & a
| cash flow summary cash and cash equivalents at february 2 , 2020 was $ 503 million , an increase of $ 51 million from the amount at february 3 , 2019 of $ 452 million . the change in cash and cash equivalents included the impact of ( i ) $ 325 million of common stock repurchases under the stock repurchase program , ( ii ) $ 71 million of long-term debt repayments , ( iii ) a $ 59 million net payment made in connection with the australia acquisition , and ( iv ) a $ 74 million payment made in connection with the th csap acquisition . cash flow in 2020 will be impacted by various factors in addition to those noted below in this โ liquidity and capital resources โ section , including ( i ) mandatory long-term debt repayments of approximately $ 14 million , subject to exchange rate fluctuations , ( ii ) common stock repurchases under the stock repurchase program of $ 111 million , which reflects stock repurchases through march 2020 with no further repurchases planned for the remainder of 2020 , and ( iii ) the expected proceeds of $ 170 million , subject to a working capital adjustment , related to the speedo transaction , which is expected to close in the first quarter of 2020. in addition , in march 2020 we increased the aggregate borrowings outstanding under our senior unsecured revolving credit facilities , other short-term revolving credit facilities and unsecured commercial paper note program to approximately $ 930 million , in order to increase our cash position and preserve financial flexibility in responding to the impacts of the covid-19 outbreak on our business .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flow summary cash and cash equivalents at february 2 , 2020 was $ 503 million , an increase of $ 51 million from the amount at february 3 , 2019 of $ 452 million . the change in cash and cash equivalents included the impact of ( i ) $ 325 million of common stock repurchases under the stock repurchase program , ( ii ) $ 71 million of long-term debt repayments , ( iii ) a $ 59 million net payment made in connection with the australia acquisition , and ( iv ) a $ 74 million payment made in connection with the th csap acquisition . cash flow in 2020 will be impacted by various factors in addition to those noted below in this โ liquidity and capital resources โ section , including ( i ) mandatory long-term debt repayments of approximately $ 14 million , subject to exchange rate fluctuations , ( ii ) common stock repurchases under the stock repurchase program of $ 111 million , which reflects stock repurchases through march 2020 with no further repurchases planned for the remainder of 2020 , and ( iii ) the expected proceeds of $ 170 million , subject to a working capital adjustment , related to the speedo transaction , which is expected to close in the first quarter of 2020. in addition , in march 2020 we increased the aggregate borrowings outstanding under our senior unsecured revolving credit facilities , other short-term revolving credit facilities and unsecured commercial paper note program to approximately $ 930 million , in order to increase our cash position and preserve financial flexibility in responding to the impacts of the covid-19 outbreak on our business .
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Suspicious Activity Report : company-operated shop-in-shop/concession locations worldwide under our tommy hilfiger and calvin klein trademarks , and ( c ) digital commerce sites in over 30 countries under our tommy hilfiger and calvin klein trademarks and in the united states through our directly operated digital commerce sites for speedo , true & co . , van heusen , and izod , as well as our 32 stylebureau .com site . additionally , we generate royalty , advertising and other revenue from fees for licensing the use of our trademarks . we manage our operations through our operating divisions , which are presented as six reportable segments : ( i ) tommy hilfiger north america ; ( ii ) tommy hilfiger international ; ( iii ) calvin klein north america ; ( iv ) calvin klein international ; ( v ) heritage brands wholesale ; and ( vi ) heritage brands retail . we have entered into the following transactions that have impacted our results of operations and the comparability among the years , including our 2020 expectations as compared to 2019 , as discussed below : we entered into a definitive agreement on january 9 , 2020 to sell our speedo north america business to pentland for $ 170 million in cash , subject to a working capital adjustment , as described above . we recorded a pre-tax noncash loss of $ 142 million in the fourth quarter of 2019 related to the speedo transaction and expected deconsolidation of the net assets of the business , consisting of ( i ) a noncash impairment of our perpetual license right for the speedo trademark and ( ii ) a noncash loss to reduce the carrying value of the business to its estimated fair value , less costs to sell . we entered into agreements on july 3 , 2019 to terminate early the licenses for the global calvin klein and tommy hilfiger north america socks and hosiery businesses in order to consolidate the socks and hosiery businesses for all of our brands in the united states and canada in a newly formed joint venture , pvh legwear , in which we own a 49 % economic interest , and to bring in-house the international calvin klein socks and hosiery wholesale businesses . pvh legwear was formed with a wholly owned subsidiary of our former heritage brands socks and hosiery licensee , and licenses from us the rights to distribute and sell tommy hilfiger , calvin klein , izod , van heusen and warner 's socks and hosiery beginning in december 2019. we recorded a pre-tax charge of $ 60 million during 2019 in connection with these agreements . we completed the australia and th csap acquisitions in the second quarter of 2019. the australia acquisition closed on may 31 , 2019. prior to the closing , we , along with gazal , jointly owned and managed a joint venture , pvh australia , which licensed and operated businesses under the tommy hilfiger , calvin klein and van heusen brands , along with other owned and licensed brands . pvh australia came under our full control as a result of the australia acquisition and we now operate directly those businesses . the aggregate net purchase price for the shares acquired was $ 59 million , net of cash acquired and after taking into account the proceeds from the divestiture to a third party of an office building and warehouse owned by gazal in june 2019. we completed the th csap acquisition on july 1 , 2019 for $ 74 million , as a result of which we now operate directly the tommy hilfiger retail business in the central and southeast asia market . please see note 3 , โ acquisitions , โ in the notes to consolidated financial statements included in item 8 of this report for further discussion . in connection with the australia and th csap acquisitions , we recorded an aggregate net pre-tax gain of $ 83 million during 2019 , including ( i ) a noncash gain of $ 113 million to write up our existing equity investments in gazal and pvh australia to fair value , partially offset by ( ii ) $ 21 million of pre-tax costs , primarily consisting of noncash valuation adjustments and one-time expenses recorded on our equity investments in gazal and pvh australia prior to the australia acquisition closing , and ( iii ) a $ 9 million expense recorded in interest expense , net resulting from the remeasurement of our mandatorily redeemable non-controlling interest that was recognized in connection with the australia acquisition . we entered into a licensing agreement on may 30 , 2019 with g-iii for the design , production and wholesale distribution of calvin klein jeans women 's jeanswear collections in the united states and canada , which resulted in the discontinuation of our directly operated calvin klein north america women 's jeanswear wholesale business in 2019. we refinanced on april 29 , 2019 our senior credit facilities and recorded pre-tax debt modification and extinguishment charges of $ 5 million . please see the section entitled โ liquidity and capital resources โ below for further discussion . we closed our tommy hilfiger flagship and anchor stores in the united states ( the โ th u.s. store closures โ ) in the first quarter of 2019 and recorded pre-tax costs of $ 55 million , primarily consisting of noncash lease asset impairments . please see note 12 , โ fair value measurements , โ in the notes to consolidated financial statements included in item 8 of this report for further discussion of the noncash lease asset impairments . we announced on january 10 , 2019 a restructuring in connection with strategic changes for our calvin klein business ( the โ calvin klein restructuring โ ) . story_separator_special_tag the following table shows our revenue mix between net sales and royalty , advertising and other revenue , as well as our gross margin for 2019 , 2018 and 2017 : replace_table_token_3_th gross profit in 2019 was $ 5.388 billion , or 54.4 % of total revenue , as compared to $ 5.308 billion , or 55.0 % of total revenue , in 2018. the 60 basis point decrease in gross margin was principally driven by ( i ) a gross margin decline in our tommy hilfiger north america business due to more promotional selling as compared to the prior year , ( ii ) the impact of additional inventory reserves recorded in the fourth quarter of 2019 in anticipation of lower 2020 sales trends as a result of the onset of the covid-19 outbreak , ( iii ) short-lived noncash inventory valuation adjustments recorded in connection with the australia and th csap acquisitions , and ( iv ) the negative impact of tariffs imposed on goods imported from china into the united states . these decreases were partially offset by the favorable impact of faster growth in our tommy hilfiger 37 international and calvin klein international segments than in our north america segments , as our international segments generally carry higher gross margins , as well as gross margin improvements realized in our calvin klein north america business . gross profit in 2018 was $ 5.308 billion , or 55.0 % of total revenue , as compared to $ 4.894 billion , or 54.9 % of total revenue , in 2017. the 10 basis point increase in gross margin was principally driven by ( i ) a favorable mix of business due to faster growth in our tommy hilfiger international and calvin klein international segments than in our north america segments , as our international segments generally carry higher gross margins , and ( ii ) gross margin improvement in our tommy hilfiger business . partially offsetting these increases were gross margin declines in our calvin klein and heritage brands businesses principally due to more promotional selling . we currently expect that gross margin in 2020 will decrease as compared to 2019 primarily due to ( i ) the need for increased promotional selling and inventory liquidation as a result of the covid-19 outbreak and ( ii ) the unfavorable impact of the stronger united states dollar on our international businesses that purchase inventory in united states dollars , particularly our european businesses , as the increased local currency value of inventory results in higher cost of goods in local currency when the goods are sold . there is significant uncertainty with respect to the impact of the covid-19 outbreak on our business and the businesses of our licensees and other business partners . sg & a expenses our sg & a expenses were as follows : replace_table_token_4_th sg & a expenses in 2019 were $ 4.715 billion , or 47.6 % of total revenue , as compared to $ 4.433 billion , or 45.9 % of total revenue in 2018. the 170 basis point increase in sg & a expenses as a percentage of total revenue was principally attributable to ( i ) an increase in costs incurred in connection with the calvin klein restructuring , ( ii ) the costs incurred in connection with the socks and hosiery transaction , and ( iii ) the costs incurred in connection with the th u.s. store closures . also contributing to the increase was a change in the mix of business due to faster growth in our tommy hilfiger international and calvin klein international segments than in our north america segments , as our international segments generally carry higher sg & a expenses as percentages of total revenue . sg & a expenses in 2018 were $ 4.433 billion , or 45.9 % of total revenue , as compared to $ 4.245 billion , or 47.6 % of total revenue in 2017. the 170 basis point decrease in sg & a expenses as a percentage of total revenue was principally attributable to the absence in 2018 of costs that were recorded in 2017 in connection with ( i ) the mr. hilfiger amendment , ( ii ) the li & fung termination , and ( iii ) the relocation of our tommy hilfiger office in new york , including noncash depreciation expense . also contributing to the decrease was a leveraging of expenses in the tommy hilfiger business . these decreases were partially offset by ( i ) a change in the mix of business due to faster growth in our tommy hilfiger international and calvin klein international segments than in our north america segments , as our international segments generally carry higher sg & a expenses as percentages of total revenue , ( ii ) the costs incurred in connection with the calvin klein restructuring and ( iii ) an increase in corporate expenses due , in part , to investments in digital and information technology initiatives . in light of the negative impacts on our business resulting from the covid-19 outbreak , we are taking measures to significantly reduce sg & a expenses in 2020. as such , we currently expect our sg & a expenses in 2020 will be significantly lower as compared to 2019 , including as a result of the reductions resulting from these measures and the absence in 2020 of costs related to ( i ) the calvin klein restructuring , ( ii ) the socks and hosiery transaction and ( iii ) the th u.s. store closures . however , we expect our sg & a expenses as a percentage of total revenue in 2020 will increase as compared to 2019 primarily due to a deleveraging of expenses driven by the expected decline in revenue resulting from the covid-19 outbreak . there is significant uncertainty with respect to the impact of the covid-19 outbreak on our business and our sg & a
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2,576 | our goal is to use our company 's assetsโour brands , financial strength , and the talent and strong commitment of our management and employeesโto become more competitive and to accelerate growth . critical accounting policies and estimates management 's discussion and analysis of financial condition and results of operations are based upon our financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states ( โ gaap โ ) . the preparation of these consolidated financial statements requires our management to make assumptions and estimates about future events and apply judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . these estimates are based on management 's historical and industry experience and on various other assumptions that are believed to be reasonable under the circumstances . on a regular basis , we evaluate these accounting policies , assumptions , estimates and judgments to ensure that our financial statements are presented fairly and in accordance with gaap . however , because future events and their effects can not be determined with certainty , actual results may differ from our estimates , and such differences could be material . a full discussion of our significant accounting policies is contained in note 2 to our consolidated financial statements , which is included in item 8 โ โ financial statements and supplementary data โ of this report . we believe that the following accounting estimates are the most critical to aid in fully understanding and evaluating our financial results . these estimates require our most difficult , subjective or complex judgments because they relate to matters that are inherently uncertain . we have reviewed these critical accounting policies and estimates and related disclosures with our audit committee . long-lived assets we review long-lived assets , such as property and equipment , and intangible assets subject to amortization , for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable . these events or changes in circumstances include , but are not limited to , significant underperformance relative to historical or projected future operating results , significant changes in the manner of use of the acquired assets or the strategy for the overall business , and significant negative industry or economic trends . recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset group to the estimated undiscounted cash flows over the estimated remaining useful life of the primary asset included in the asset group . if the asset group is not recoverable , the impairment loss is calculated as the excess of the carrying value over the fair value . we define our asset group as an operating club or restaurant location , which is also our reporting unit or the lowest level for which cash flows can be identified . key estimates in the undiscounted cash flow model include management 's estimate of the projected revenues and operating margins . if fair value is used to determine an impairment loss , an additional key assumption is the selection of a weighted-average cost of capital to discount cash flows . assets to be disposed of are separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell and are no longer depreciated . during the fourth quarter of 2019 , we impaired two clubs for a total of $ 4.2 million ; during the fourth quarter of 2018 , we impaired one club and one bombshells by a total of $ 1.6 million ; and during the fourth quarter of fiscal 2017 , we impaired one club by $ 385,000. goodwill and other intangible assets goodwill and other intangible assets that have indefinite useful lives are tested annually for impairment during our fourth fiscal quarter , and are tested for impairment more frequently if events and circumstances indicate that the asset might be impaired . 22 our impairment calculations require management to make assumptions and to apply judgment in order to estimate fair values . if our actual results are not consistent with our estimates and assumptions , we may be exposed to impairments that could be material . we do not believe that there is a reasonable likelihood that there will be a change in the estimates or assumptions we used that could cause a material change in our calculated impairment charges . for our goodwill impairment review , we have the option to first perform a qualitative assessment to determine if it is more likely than not that the fair value of the reporting unit is less than its carrying value . this assessment is based on several factors , including industry and market conditions , overall financial performance , including an assessment of cash flows in comparison to actual and projected results of prior periods . if it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value based on our qualitative analysis , or if we elect to skip this step , we perform a step 1 quantitative analysis to determine the fair value of the reporting unit . the fair value is determined using market-related valuation models , including earnings multiples , discounted cash flows , and comparable asset market values . key estimates in the discounted cash flow model include management 's estimate of the projected revenues and operating margins , along with the selection of a weighted-average cost of capital to discount cash flows . story_separator_special_tag income from operations below is a table which reflects segment contribution to income from operations ( in thousands ) : replace_table_token_18_th our operating margin ( income from operations divided by revenues ) was 19.2 % in 2019 , 16.6 % in 2018 , and 16.0 % in 2017. nightclubs operating margin was 34.1 % , 31.1 % , and 28.2 % in 2019 , 2018 , and 2017 , respectively , primarily due to the closure of underperforming units , fixed expense leverage on increasing sales , and impairment of assets of $ 5.9 million , $ 4.4 million , and $ 6.5 million for 2019 , 2018 , and 2017 , respectively . bombshells operating margin was 7.4 % , 8.5 % , and 16.4 % in 2019 , 2018 , and 2017 , respectively , mainly due to pre-opening expenses in 2019 ( particularly in salaries and wages and selling , general and administrative expenses ) and impairment of assets of $ 1.1 million in 2018 . 30 excluding the impact of settlement of lawsuits , impairment of assets , gain on insurance , gain on patron tax settlement , and gain on sale of businesses and assets , operating margin for the nightclub segment would have been 35.9 % , 35.1 % , and 33.1 % for 2019 , 2018 , and 2017 , respectively . excluding the impact of impairment of assets , loss on sale of assets , and settlement of lawsuits , bombshells segment operating margin would have been 7.6 % , 15.1 % , and 16.4 % for 2019 , 2018 , and 2017 , respectively . refer to discussion of non-gaap financial measures on page 32. interest expense interest expense increased by $ 255,000 from 2018 to 2019 , and increased by $ 1.2 million from 2017 to 2018. the increase in interest expense is due to higher average debt balance partially offset by lower weighted average interest rate . during the first quarter of 2018 , we significantly increased our debt balance with our $ 81 million refinancing , but that transaction also significantly reduced our weighted average interest rate . during 2019 , our debt repayments were significantly higher than our borrowing , excluding borrowings from acquisitions , thereby reducing interest expense as a percentage of revenue . we consider rent plus interest expense as our occupancy costs since most of our debts are for real property where our clubs and restaurants are located . for occupancy cost purposes , we exclude non-real-estate-related interest expense . as a percentage of revenues , total occupancy costs , with its components , are shown below . replace_table_token_19_th income taxes income taxes were an expense of $ 4.9 million in 2019 , a benefit of $ 3.1 million in 2018 , and an expense of $ 6.4 million in 2017. our effective income tax rate was a 20.1 % expense in 2019 , a 17.5 % benefit in 2018 , and a 43.4 % expense in 2017. the components of our annual effective income tax rate are the following : replace_table_token_20_th during fiscal year 2017 , due to higher income before tax , our income tax rate has increased to 37 % , of which has impacted the fourth quarter with the change in rate from 35 % in the first nine months of the year and in prior years . a full year impact in the change in rate of our deferred tax liability has also been recognized in the fourth quarter . the change in deferred tax liability rate for 2017 is due to the 1 % increase in our effective tax rate from the increase in the federal rate and also an increase in the states rate . this amount results from increasing by 2 % the rate applied to our entire deferred tax liabilities at the beginning of the year . the reserve for uncertain tax positions results from an audit of the returns of one of the states in which we operate . as a result of the items discussed above which affected the fiscal year , the fourth quarter effective tax rate rose to 99.6 % expense on a pre-tax loss . on december 22 , 2017 , during our first quarter 2018 , the tax cuts and jobs act ( the โ tax act โ ) was enacted into law , which provides for significant changes to the u.s. internal revenue code of 1986 , as amended , such as a reduction in the statutory federal corporate tax rate from a maximum of 35 % to a flat 21 % rate effective from january 1 , 2018 forward and changes and limitations to certain tax deductions . the company has a fiscal year end of september 30 , so the change to the statutory corporate tax rate results in a blended federal statutory rate of 24.5 % for its fiscal year 2018. the increase in state tax effective rate from 2017 to 2018 was mainly caused by the impact of return-to-provision true-up , which has an expense impact in 2018 while having a benefit in 2017. during fiscal 2019 , the effective income tax rate has normalized to 20.1 % , with the rate difference from the statutory federal corporate tax rate of 21 % coming from offsetting impact of state income tax , net of federal benefit , and tax credits that are mostly fica tip credits . 31 non-gaap financial measures in addition to our financial information presented in accordance with gaap , management uses certain non-gaap financial measures , within the meaning of the sec regulation g , to clarify and enhance understanding of past performance and prospects for the future . generally , a non-gaap financial measure is a numerical measure of a company 's operating performance , financial position or cash flows that excludes or includes amounts that are included in or excluded from the most directly comparable measure calculated and
| cash flows from investing activities following are our summarized cash flows from investing activities ( in thousands ) : replace_table_token_25_th we opened four new units in 2019 ( acquired two clubs in chicago , illinois and pittsburgh , pennsylvania , and built two new bombshells in houston , texas ) ; opened two new units in 2018 ( one acquired club in kappa , illinois and one built bombshells in pearland , texas ) ; and opened five new units in 2017 ( including two acquired and one reconcepted from a bombshells to a club ) . see note 15 to our consolidated financial statements . as of september 30 , 2019 , 2018 , and 2017 , we had $ 8.9 million , $ 6.4 million , and $ 1.6 million in construction-in-progress related mostly to bombshells opening in the subsequent fiscal year . following is a reconciliation of our additions to property and equipment for the years ended september 30 , 2019 , 2018 , and 2017 ( in thousands ) : replace_table_token_26_th * excludes real estate acquired through business acquisitions . 35 cash flows from financing activities following are our summarized cash flows from financing activities ( in thousands ) : replace_table_token_27_th we purchased shares of our common stock representing 128,040 shares , 0 shares , and 89,685 shares in 2019 , 2018 , and 2017 , respectively . we have paid quarterly dividends of $ 0.03 per share for fiscal 2019 , 2018 and 2017 , except for the fourth quarter of 2019 where we paid $ 0.04 per share . see note 9 to our consolidated financial statements for a detailed discussion of our debt obligations . non-gaap cash flow measure management also uses certain non-gaap cash flow measures such as free cash flows . we define free cash flow as net cash provided by operating activities less maintenance capital expenditures . see table below ( in thousands ) : replace_table_token_28_th we do not include total capital expenditures as a reduction from net cash flow from operating activities to arrive at free cash flow .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows from investing activities following are our summarized cash flows from investing activities ( in thousands ) : replace_table_token_25_th we opened four new units in 2019 ( acquired two clubs in chicago , illinois and pittsburgh , pennsylvania , and built two new bombshells in houston , texas ) ; opened two new units in 2018 ( one acquired club in kappa , illinois and one built bombshells in pearland , texas ) ; and opened five new units in 2017 ( including two acquired and one reconcepted from a bombshells to a club ) . see note 15 to our consolidated financial statements . as of september 30 , 2019 , 2018 , and 2017 , we had $ 8.9 million , $ 6.4 million , and $ 1.6 million in construction-in-progress related mostly to bombshells opening in the subsequent fiscal year . following is a reconciliation of our additions to property and equipment for the years ended september 30 , 2019 , 2018 , and 2017 ( in thousands ) : replace_table_token_26_th * excludes real estate acquired through business acquisitions . 35 cash flows from financing activities following are our summarized cash flows from financing activities ( in thousands ) : replace_table_token_27_th we purchased shares of our common stock representing 128,040 shares , 0 shares , and 89,685 shares in 2019 , 2018 , and 2017 , respectively . we have paid quarterly dividends of $ 0.03 per share for fiscal 2019 , 2018 and 2017 , except for the fourth quarter of 2019 where we paid $ 0.04 per share . see note 9 to our consolidated financial statements for a detailed discussion of our debt obligations . non-gaap cash flow measure management also uses certain non-gaap cash flow measures such as free cash flows . we define free cash flow as net cash provided by operating activities less maintenance capital expenditures . see table below ( in thousands ) : replace_table_token_28_th we do not include total capital expenditures as a reduction from net cash flow from operating activities to arrive at free cash flow .
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Suspicious Activity Report : our goal is to use our company 's assetsโour brands , financial strength , and the talent and strong commitment of our management and employeesโto become more competitive and to accelerate growth . critical accounting policies and estimates management 's discussion and analysis of financial condition and results of operations are based upon our financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states ( โ gaap โ ) . the preparation of these consolidated financial statements requires our management to make assumptions and estimates about future events and apply judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . these estimates are based on management 's historical and industry experience and on various other assumptions that are believed to be reasonable under the circumstances . on a regular basis , we evaluate these accounting policies , assumptions , estimates and judgments to ensure that our financial statements are presented fairly and in accordance with gaap . however , because future events and their effects can not be determined with certainty , actual results may differ from our estimates , and such differences could be material . a full discussion of our significant accounting policies is contained in note 2 to our consolidated financial statements , which is included in item 8 โ โ financial statements and supplementary data โ of this report . we believe that the following accounting estimates are the most critical to aid in fully understanding and evaluating our financial results . these estimates require our most difficult , subjective or complex judgments because they relate to matters that are inherently uncertain . we have reviewed these critical accounting policies and estimates and related disclosures with our audit committee . long-lived assets we review long-lived assets , such as property and equipment , and intangible assets subject to amortization , for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable . these events or changes in circumstances include , but are not limited to , significant underperformance relative to historical or projected future operating results , significant changes in the manner of use of the acquired assets or the strategy for the overall business , and significant negative industry or economic trends . recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset group to the estimated undiscounted cash flows over the estimated remaining useful life of the primary asset included in the asset group . if the asset group is not recoverable , the impairment loss is calculated as the excess of the carrying value over the fair value . we define our asset group as an operating club or restaurant location , which is also our reporting unit or the lowest level for which cash flows can be identified . key estimates in the undiscounted cash flow model include management 's estimate of the projected revenues and operating margins . if fair value is used to determine an impairment loss , an additional key assumption is the selection of a weighted-average cost of capital to discount cash flows . assets to be disposed of are separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell and are no longer depreciated . during the fourth quarter of 2019 , we impaired two clubs for a total of $ 4.2 million ; during the fourth quarter of 2018 , we impaired one club and one bombshells by a total of $ 1.6 million ; and during the fourth quarter of fiscal 2017 , we impaired one club by $ 385,000. goodwill and other intangible assets goodwill and other intangible assets that have indefinite useful lives are tested annually for impairment during our fourth fiscal quarter , and are tested for impairment more frequently if events and circumstances indicate that the asset might be impaired . 22 our impairment calculations require management to make assumptions and to apply judgment in order to estimate fair values . if our actual results are not consistent with our estimates and assumptions , we may be exposed to impairments that could be material . we do not believe that there is a reasonable likelihood that there will be a change in the estimates or assumptions we used that could cause a material change in our calculated impairment charges . for our goodwill impairment review , we have the option to first perform a qualitative assessment to determine if it is more likely than not that the fair value of the reporting unit is less than its carrying value . this assessment is based on several factors , including industry and market conditions , overall financial performance , including an assessment of cash flows in comparison to actual and projected results of prior periods . if it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value based on our qualitative analysis , or if we elect to skip this step , we perform a step 1 quantitative analysis to determine the fair value of the reporting unit . the fair value is determined using market-related valuation models , including earnings multiples , discounted cash flows , and comparable asset market values . key estimates in the discounted cash flow model include management 's estimate of the projected revenues and operating margins , along with the selection of a weighted-average cost of capital to discount cash flows . story_separator_special_tag income from operations below is a table which reflects segment contribution to income from operations ( in thousands ) : replace_table_token_18_th our operating margin ( income from operations divided by revenues ) was 19.2 % in 2019 , 16.6 % in 2018 , and 16.0 % in 2017. nightclubs operating margin was 34.1 % , 31.1 % , and 28.2 % in 2019 , 2018 , and 2017 , respectively , primarily due to the closure of underperforming units , fixed expense leverage on increasing sales , and impairment of assets of $ 5.9 million , $ 4.4 million , and $ 6.5 million for 2019 , 2018 , and 2017 , respectively . bombshells operating margin was 7.4 % , 8.5 % , and 16.4 % in 2019 , 2018 , and 2017 , respectively , mainly due to pre-opening expenses in 2019 ( particularly in salaries and wages and selling , general and administrative expenses ) and impairment of assets of $ 1.1 million in 2018 . 30 excluding the impact of settlement of lawsuits , impairment of assets , gain on insurance , gain on patron tax settlement , and gain on sale of businesses and assets , operating margin for the nightclub segment would have been 35.9 % , 35.1 % , and 33.1 % for 2019 , 2018 , and 2017 , respectively . excluding the impact of impairment of assets , loss on sale of assets , and settlement of lawsuits , bombshells segment operating margin would have been 7.6 % , 15.1 % , and 16.4 % for 2019 , 2018 , and 2017 , respectively . refer to discussion of non-gaap financial measures on page 32. interest expense interest expense increased by $ 255,000 from 2018 to 2019 , and increased by $ 1.2 million from 2017 to 2018. the increase in interest expense is due to higher average debt balance partially offset by lower weighted average interest rate . during the first quarter of 2018 , we significantly increased our debt balance with our $ 81 million refinancing , but that transaction also significantly reduced our weighted average interest rate . during 2019 , our debt repayments were significantly higher than our borrowing , excluding borrowings from acquisitions , thereby reducing interest expense as a percentage of revenue . we consider rent plus interest expense as our occupancy costs since most of our debts are for real property where our clubs and restaurants are located . for occupancy cost purposes , we exclude non-real-estate-related interest expense . as a percentage of revenues , total occupancy costs , with its components , are shown below . replace_table_token_19_th income taxes income taxes were an expense of $ 4.9 million in 2019 , a benefit of $ 3.1 million in 2018 , and an expense of $ 6.4 million in 2017. our effective income tax rate was a 20.1 % expense in 2019 , a 17.5 % benefit in 2018 , and a 43.4 % expense in 2017. the components of our annual effective income tax rate are the following : replace_table_token_20_th during fiscal year 2017 , due to higher income before tax , our income tax rate has increased to 37 % , of which has impacted the fourth quarter with the change in rate from 35 % in the first nine months of the year and in prior years . a full year impact in the change in rate of our deferred tax liability has also been recognized in the fourth quarter . the change in deferred tax liability rate for 2017 is due to the 1 % increase in our effective tax rate from the increase in the federal rate and also an increase in the states rate . this amount results from increasing by 2 % the rate applied to our entire deferred tax liabilities at the beginning of the year . the reserve for uncertain tax positions results from an audit of the returns of one of the states in which we operate . as a result of the items discussed above which affected the fiscal year , the fourth quarter effective tax rate rose to 99.6 % expense on a pre-tax loss . on december 22 , 2017 , during our first quarter 2018 , the tax cuts and jobs act ( the โ tax act โ ) was enacted into law , which provides for significant changes to the u.s. internal revenue code of 1986 , as amended , such as a reduction in the statutory federal corporate tax rate from a maximum of 35 % to a flat 21 % rate effective from january 1 , 2018 forward and changes and limitations to certain tax deductions . the company has a fiscal year end of september 30 , so the change to the statutory corporate tax rate results in a blended federal statutory rate of 24.5 % for its fiscal year 2018. the increase in state tax effective rate from 2017 to 2018 was mainly caused by the impact of return-to-provision true-up , which has an expense impact in 2018 while having a benefit in 2017. during fiscal 2019 , the effective income tax rate has normalized to 20.1 % , with the rate difference from the statutory federal corporate tax rate of 21 % coming from offsetting impact of state income tax , net of federal benefit , and tax credits that are mostly fica tip credits . 31 non-gaap financial measures in addition to our financial information presented in accordance with gaap , management uses certain non-gaap financial measures , within the meaning of the sec regulation g , to clarify and enhance understanding of past performance and prospects for the future . generally , a non-gaap financial measure is a numerical measure of a company 's operating performance , financial position or cash flows that excludes or includes amounts that are included in or excluded from the most directly comparable measure calculated and
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2,577 | this brought the total u.s. rig count to 929 , at december 31 , 2017 , an increase of 41 % during 2017 compared to 659 rigs at the end of the 2016. given the historical volatility of crude prices , there is a continued risk that if prices do not continue to improve , or if they start to decline again due to high levels of crude oil production , there is a potential for slowing growth rates in various global regions and or for ongoing supply/demand imbalances . prices for natural gas in the u.s. averaged $ 2.99 per mmbtu for 2017 , compared to $ 2.40 per mmbtu for 2016. as a result of natural gas production growth outpacing demand in the u.s. , natural gas prices continue to be weak relative to prices experienced from 2006 through 2008 and are expected to remain below levels considered economical for new investments in numerous natural gas fields . draws in late 2017 were larger than normal , resulting in total u.s. natural gas inventories of 2.8 trillion cubic feet at the end of 2017 , 13.0 % lower than levels at this time a year ago , and 12.1 % lower than the five-year average . inventories are expected to build slightly above the five year average by the end of october 2018. after a period of growth in exploration activities and associated spending leading up to the end of 2014 , many e & p companies shifted their focus to production activities , away from exploration , as the continued decline in oil and gas prices resulted in decreased revenues , prompting cost reduction initiatives across the industry . from the end of 2014 through 2017 , e & p companies decreased spending on exploration and reportedly focused their spending on critical production requirements and existing commitments . we believe this was due to several factors , but primarily because operational cash flows of e & p companies were no longer sufficient to cover capital expenditures while continuing to pay cash dividends to shareholders . e & p companies relied on asset sales and debt financings to fund capital requirements amid demands for greater returns to shareholders . the combination of these factors placed many e & p companies in a position where they were unable to cover both their capital expenditure budgets and targeted cash returns to shareholders . as a result , e & p companies dramatically cut spending , with exploration spending receiving the largest reductions and seismic spending being one of the most discretionary parts of their exploration budgets . as a result of this industry downturn , many customers experienced a significant reduction in their liquidity with challenges accessing the capital markets . several exploration and production companies declared bankruptcy , or exchanged equity for the forgiveness of debt , while others were forced to sell assets in an effort to preserve 34 liquidity . however , over the past 12 months , access to the capital and debt markets improved significantly for certain of these customers . e & p spending is expected to continue to rebound in 2018 over 2017 , which was preceded by two successive years of double digit declines as commodity prices are forecasted to remain more stable . this positive trend in e & p spending , aided by favorable macroeconomic conditions has resulted in increased revenues during 2017. if the global supply of oil decreases due to reduced capital investment by e & p companies , government instability occurs in a major oil-producing nation or energy demand increases in the u.s. or in countries such as china and india , the recovery in wti and brent crude oil prices could continue to improve . if commodity prices do not continue to improve or if they start to deteriorate again , demand for our services and products could decline . impact to our business during 2017 , we saw renewed customer interest in underwriting of our new venture multi-client programs as oil companies were able to right-size their expenditures to current oil prices and generate profits for the first time in eight quarters . during 2017 , revenues increased 14 % versus prior year . investments in our multi-client data library are dependent upon the timing of our new venture projects and the availability of underwriting by our customers . we continue to maintain high standards for the underwriting of any new projects , and sanctioned several new programs during 2017 that were originally planned to occur during 2016. our โ asset light โ strategy enables us to scale our business to avoid significant fixed costs and to remain financially flexible as we manage the timing and levels of our capital expenditures . in our e & p technology & services segment , our new venture revenues increased driven by our 3-d multi-client reimaging programs offshore mexico and brazil , as well as revenues from a new 2-d multi-client program in panama and other programs that have recently been launched , which met our conservative underwriting standards . imaging services revenues decreased as a result of our strategic shift toward higher return multi-client programs . the imaging work on multi-client programs are reflected as part of new venture or data library revenues depending on the program status , whereas revenues from proprietary imaging programs are reflected as part of imaging services . the imaging services group is fully utilized , with a large portion of our capacity dedicated to multi-client programs . story_separator_special_tag other income โ other income for 2016 was $ 1.4 million compared to other income of $ 98.3 million for 2015. the difference primarily relates to changes in our accrual for loss contingency related to a legal matter . see further discussion at footnote 6 โ legal matters โ and in part 1 , item 3 , โ legal proceedings . โ the following table reflects the significant items of other income ( in thousands ) : replace_table_token_9_th income tax expense โ income tax expense for 2016 was $ 4.4 million compared to $ 4.0 million for 2015. our effective tax rates for 2016 and 2015 were ( 7.3 ) % and ( 19.2 ) % , respectively . our effective tax rate for 2016 and 2015 was negatively impacted by the establishment of a valuation allowance related to our u.s. losses incurred in both years . see further discussion of establishment of the deferred tax valuation allowance at footnote 5 โ income taxes โ of footnotes to consolidated financial statements . our income tax expense for 2016 and 2015 relates to income from our non-u.s. businesses . this foreign tax expense has not been offset by the tax benefits on losses within the u.s. and other jurisdictions , from which we can not currently benefit . liquidity and capital resources sources of capital as of december 31 , 2017 , we had $ 52.1 million in cash on hand and $ 15.5 million of undrawn borrowing base availability under the credit facility . our cash requirements include working capital requirements and cash required for our debt service payments , multi-client seismic data acquisition activities and capital expenditures . as of december 31 , 2017 , we had working capital of $ ( 8.6 ) million , which includes a current liability of $ 28.5 million of senior secured third-priority lien notes that are payable during the second quarter of 2018 , which we expect to pay using available liquidity . working capital requirements are primarily driven by our investment in our ( i ) multi-client data library ( $ 23.7 million in 2017 ) and royalty payments for multi-client sales . also , our headcount has traditionally been a significant driver of our working capital needs . as a significant portion of our business is involved in the planning , processing and interpretation of seismic data , one of our largest investments is in our employees , which involves cash expenditures for their salaries , bonuses , payroll taxes and related compensation expenses . during late 2014 and continuing through mid-2016 , we reduced our workforce by over 60 % , and closed selected facilities . our workforce has since stabilized . these actions are expected to result in annualized cash savings of approximately $ 95 million which we began to fully realize in 2017. during 2017 , we saw an improved operating environment in oil prices which has contributed to a stabilization in our workforce . 42 our working capital requirements may change from time to time depending upon many factors , including our operating results and adjustments in our operating plan in response to industry conditions , competition and unexpected events . in recent years , our primary sources of funds have been cash flows generated from operations , existing cash balances , debt and equity issuances and borrowings under our revolving credit facilities . revolving credit facility in august 2014 , we and our material u.s. subsidiaries , gx technology corporation , ion exploration products ( u.s.a. ) , inc. and i/o marine systems , inc. ( collectively , the โ subsidiary borrowers โ ) entered into a revolving credit and security agreement with pnc bank , national association ( โ pnc โ ) , as agent ( the โ original credit agreement โ ) , which was amended by the first amendment to revolving credit and security agreement in august 2015 ( the โ first amendment โ ) and the second amendment to revolving credit and security agreement in april 2016 ( the โ second amendment โ ; the original credit agreement , as amended by the first amendment and the second amendment , the โ credit facility โ ) . the credit facility is available to provide for the borrowers ' general corporate needs , including working capital requirements , capital expenditures , surety deposits and acquisition financing . the maximum amount of the revolving line of credit under the credit facility is the lesser of $ 40.0 million and a monthly borrowing base ( which may be recalculated more frequently under certain circumstances ) . the borrowing base under the credit facility will increase or decrease monthly using a formula based on certain eligible receivables , eligible inventory and other amounts , including a percentage of the net orderly liquidation value of our multi-client data library ( not to exceed $ 15.0 million for the multi-client data library data component ) . as of december 31 , 2017 , the borrowing base under the credit facility was $ 25.5 million , and there was $ 10.0 million of outstanding indebtedness under the credit facility . we experienced a significant increase in our accounts and unbilled receivables during the second half of 2017 due to the significant revenue increase , however , a majority of those increases were part of our foreign operations , which are not included in the borrowing base calculation . the credit facility requires us to maintain compliance with various covenants . at december 31 , 2017 , we were in compliance with all of the covenants under the credit facility . for further information regarding our credit facility see footnote 3 โ long-term debt and lease obligations โ of footnotes to consolidated financial statements . senior secured notes in may 2013 , we sold $ 175.0 million aggregate principal amount of 8.125 % senior secured second-priority notes due 2018 ( the โ third lien notes โ ) in a
| cash flow from operations net cash provided by operating activities was $ 28.0 million for 2017 , compared to net cash used in operating activities of $ 1.6 million for 2016 . the increase in net cash provided by operations was due to a significant increase in new venture revenues in 2017 , compared to 2016 and due to $ 20.8 million damages payment in 2016 for the westerngeco lawsuit , which was partially offset by increases in unbilled receivables as of december 31 , 2017. net cash provided by operating activities was $ 1.6 million for 2016 , compared to net cash used in operating activities of $ 16.5 million for 2015. the increase in our cash flows from operations was primarily due to reduced spend due to our cost reduction initiatives and accounts receivable collections offset by a $ 20.8 million damages payment for the westerngeco lawsuit . cash flow used in investing activities net cash flow used in investing activities was $ 24.8 million for 2017 , compared to $ 13.6 million for 2016 . the principal uses of cash in our investing activities during 2017 were $ 23.7 million of investments in our multi-client data library and $ 1.1 million of investments in property , plant and equipment . 44 net cash flow used in investing activities was $ 13.6 million for 2016 , compared to $ 63.5 million for 2015. the principal uses of cash in our investing activities during 2016 were $ 14.9 million of investments in our multi-client data library and $ 1.5 million of investments in property , plant and equipment , partially offset by proceeds from the escrow related to the sale of a cost method investment in 2014. cash flow used in financing activities net cash flow used in financing activities was $ 3.6 million for 2017 , compared to $ 21.6 million of net cash flow used in financing activities for 2016 .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flow from operations net cash provided by operating activities was $ 28.0 million for 2017 , compared to net cash used in operating activities of $ 1.6 million for 2016 . the increase in net cash provided by operations was due to a significant increase in new venture revenues in 2017 , compared to 2016 and due to $ 20.8 million damages payment in 2016 for the westerngeco lawsuit , which was partially offset by increases in unbilled receivables as of december 31 , 2017. net cash provided by operating activities was $ 1.6 million for 2016 , compared to net cash used in operating activities of $ 16.5 million for 2015. the increase in our cash flows from operations was primarily due to reduced spend due to our cost reduction initiatives and accounts receivable collections offset by a $ 20.8 million damages payment for the westerngeco lawsuit . cash flow used in investing activities net cash flow used in investing activities was $ 24.8 million for 2017 , compared to $ 13.6 million for 2016 . the principal uses of cash in our investing activities during 2017 were $ 23.7 million of investments in our multi-client data library and $ 1.1 million of investments in property , plant and equipment . 44 net cash flow used in investing activities was $ 13.6 million for 2016 , compared to $ 63.5 million for 2015. the principal uses of cash in our investing activities during 2016 were $ 14.9 million of investments in our multi-client data library and $ 1.5 million of investments in property , plant and equipment , partially offset by proceeds from the escrow related to the sale of a cost method investment in 2014. cash flow used in financing activities net cash flow used in financing activities was $ 3.6 million for 2017 , compared to $ 21.6 million of net cash flow used in financing activities for 2016 .
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Suspicious Activity Report : this brought the total u.s. rig count to 929 , at december 31 , 2017 , an increase of 41 % during 2017 compared to 659 rigs at the end of the 2016. given the historical volatility of crude prices , there is a continued risk that if prices do not continue to improve , or if they start to decline again due to high levels of crude oil production , there is a potential for slowing growth rates in various global regions and or for ongoing supply/demand imbalances . prices for natural gas in the u.s. averaged $ 2.99 per mmbtu for 2017 , compared to $ 2.40 per mmbtu for 2016. as a result of natural gas production growth outpacing demand in the u.s. , natural gas prices continue to be weak relative to prices experienced from 2006 through 2008 and are expected to remain below levels considered economical for new investments in numerous natural gas fields . draws in late 2017 were larger than normal , resulting in total u.s. natural gas inventories of 2.8 trillion cubic feet at the end of 2017 , 13.0 % lower than levels at this time a year ago , and 12.1 % lower than the five-year average . inventories are expected to build slightly above the five year average by the end of october 2018. after a period of growth in exploration activities and associated spending leading up to the end of 2014 , many e & p companies shifted their focus to production activities , away from exploration , as the continued decline in oil and gas prices resulted in decreased revenues , prompting cost reduction initiatives across the industry . from the end of 2014 through 2017 , e & p companies decreased spending on exploration and reportedly focused their spending on critical production requirements and existing commitments . we believe this was due to several factors , but primarily because operational cash flows of e & p companies were no longer sufficient to cover capital expenditures while continuing to pay cash dividends to shareholders . e & p companies relied on asset sales and debt financings to fund capital requirements amid demands for greater returns to shareholders . the combination of these factors placed many e & p companies in a position where they were unable to cover both their capital expenditure budgets and targeted cash returns to shareholders . as a result , e & p companies dramatically cut spending , with exploration spending receiving the largest reductions and seismic spending being one of the most discretionary parts of their exploration budgets . as a result of this industry downturn , many customers experienced a significant reduction in their liquidity with challenges accessing the capital markets . several exploration and production companies declared bankruptcy , or exchanged equity for the forgiveness of debt , while others were forced to sell assets in an effort to preserve 34 liquidity . however , over the past 12 months , access to the capital and debt markets improved significantly for certain of these customers . e & p spending is expected to continue to rebound in 2018 over 2017 , which was preceded by two successive years of double digit declines as commodity prices are forecasted to remain more stable . this positive trend in e & p spending , aided by favorable macroeconomic conditions has resulted in increased revenues during 2017. if the global supply of oil decreases due to reduced capital investment by e & p companies , government instability occurs in a major oil-producing nation or energy demand increases in the u.s. or in countries such as china and india , the recovery in wti and brent crude oil prices could continue to improve . if commodity prices do not continue to improve or if they start to deteriorate again , demand for our services and products could decline . impact to our business during 2017 , we saw renewed customer interest in underwriting of our new venture multi-client programs as oil companies were able to right-size their expenditures to current oil prices and generate profits for the first time in eight quarters . during 2017 , revenues increased 14 % versus prior year . investments in our multi-client data library are dependent upon the timing of our new venture projects and the availability of underwriting by our customers . we continue to maintain high standards for the underwriting of any new projects , and sanctioned several new programs during 2017 that were originally planned to occur during 2016. our โ asset light โ strategy enables us to scale our business to avoid significant fixed costs and to remain financially flexible as we manage the timing and levels of our capital expenditures . in our e & p technology & services segment , our new venture revenues increased driven by our 3-d multi-client reimaging programs offshore mexico and brazil , as well as revenues from a new 2-d multi-client program in panama and other programs that have recently been launched , which met our conservative underwriting standards . imaging services revenues decreased as a result of our strategic shift toward higher return multi-client programs . the imaging work on multi-client programs are reflected as part of new venture or data library revenues depending on the program status , whereas revenues from proprietary imaging programs are reflected as part of imaging services . the imaging services group is fully utilized , with a large portion of our capacity dedicated to multi-client programs . story_separator_special_tag other income โ other income for 2016 was $ 1.4 million compared to other income of $ 98.3 million for 2015. the difference primarily relates to changes in our accrual for loss contingency related to a legal matter . see further discussion at footnote 6 โ legal matters โ and in part 1 , item 3 , โ legal proceedings . โ the following table reflects the significant items of other income ( in thousands ) : replace_table_token_9_th income tax expense โ income tax expense for 2016 was $ 4.4 million compared to $ 4.0 million for 2015. our effective tax rates for 2016 and 2015 were ( 7.3 ) % and ( 19.2 ) % , respectively . our effective tax rate for 2016 and 2015 was negatively impacted by the establishment of a valuation allowance related to our u.s. losses incurred in both years . see further discussion of establishment of the deferred tax valuation allowance at footnote 5 โ income taxes โ of footnotes to consolidated financial statements . our income tax expense for 2016 and 2015 relates to income from our non-u.s. businesses . this foreign tax expense has not been offset by the tax benefits on losses within the u.s. and other jurisdictions , from which we can not currently benefit . liquidity and capital resources sources of capital as of december 31 , 2017 , we had $ 52.1 million in cash on hand and $ 15.5 million of undrawn borrowing base availability under the credit facility . our cash requirements include working capital requirements and cash required for our debt service payments , multi-client seismic data acquisition activities and capital expenditures . as of december 31 , 2017 , we had working capital of $ ( 8.6 ) million , which includes a current liability of $ 28.5 million of senior secured third-priority lien notes that are payable during the second quarter of 2018 , which we expect to pay using available liquidity . working capital requirements are primarily driven by our investment in our ( i ) multi-client data library ( $ 23.7 million in 2017 ) and royalty payments for multi-client sales . also , our headcount has traditionally been a significant driver of our working capital needs . as a significant portion of our business is involved in the planning , processing and interpretation of seismic data , one of our largest investments is in our employees , which involves cash expenditures for their salaries , bonuses , payroll taxes and related compensation expenses . during late 2014 and continuing through mid-2016 , we reduced our workforce by over 60 % , and closed selected facilities . our workforce has since stabilized . these actions are expected to result in annualized cash savings of approximately $ 95 million which we began to fully realize in 2017. during 2017 , we saw an improved operating environment in oil prices which has contributed to a stabilization in our workforce . 42 our working capital requirements may change from time to time depending upon many factors , including our operating results and adjustments in our operating plan in response to industry conditions , competition and unexpected events . in recent years , our primary sources of funds have been cash flows generated from operations , existing cash balances , debt and equity issuances and borrowings under our revolving credit facilities . revolving credit facility in august 2014 , we and our material u.s. subsidiaries , gx technology corporation , ion exploration products ( u.s.a. ) , inc. and i/o marine systems , inc. ( collectively , the โ subsidiary borrowers โ ) entered into a revolving credit and security agreement with pnc bank , national association ( โ pnc โ ) , as agent ( the โ original credit agreement โ ) , which was amended by the first amendment to revolving credit and security agreement in august 2015 ( the โ first amendment โ ) and the second amendment to revolving credit and security agreement in april 2016 ( the โ second amendment โ ; the original credit agreement , as amended by the first amendment and the second amendment , the โ credit facility โ ) . the credit facility is available to provide for the borrowers ' general corporate needs , including working capital requirements , capital expenditures , surety deposits and acquisition financing . the maximum amount of the revolving line of credit under the credit facility is the lesser of $ 40.0 million and a monthly borrowing base ( which may be recalculated more frequently under certain circumstances ) . the borrowing base under the credit facility will increase or decrease monthly using a formula based on certain eligible receivables , eligible inventory and other amounts , including a percentage of the net orderly liquidation value of our multi-client data library ( not to exceed $ 15.0 million for the multi-client data library data component ) . as of december 31 , 2017 , the borrowing base under the credit facility was $ 25.5 million , and there was $ 10.0 million of outstanding indebtedness under the credit facility . we experienced a significant increase in our accounts and unbilled receivables during the second half of 2017 due to the significant revenue increase , however , a majority of those increases were part of our foreign operations , which are not included in the borrowing base calculation . the credit facility requires us to maintain compliance with various covenants . at december 31 , 2017 , we were in compliance with all of the covenants under the credit facility . for further information regarding our credit facility see footnote 3 โ long-term debt and lease obligations โ of footnotes to consolidated financial statements . senior secured notes in may 2013 , we sold $ 175.0 million aggregate principal amount of 8.125 % senior secured second-priority notes due 2018 ( the โ third lien notes โ ) in a
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2,578 | these significant accounting estimates and critical accounting policies include : revenue recognition our rental income is primarily related to rent received from tenants in our mobs and triple-net leased healthcare facilities . rent from tenants in our mob and triple-net leased healthcare facilities operating segments is recorded in accordance with the terms of each lease on a straight-line basis over the initial term of the lease . because many of the leases provide for rental increases at specified intervals , accounting principles generally accepted in the united states ( `` gaap `` ) require us to record a receivable , and include in revenues on a straight-line basis , unbilled rent receivables that we will only receive if the tenant makes all rent payments required through the expiration of the initial term of the lease . when we acquire a property , the acquisition date is considered to be the commencement date for purposes of this calculation . for new leases after acquisition , the commencement date is considered to be the date the tenant takes control of the space . for lease modifications , the commencement date is considered to be the date the lease is executed . we defer the revenue related to lease payments received from tenants in advance of their due dates . cost recoveries from tenants are included in operating expense reimbursement in the period the related costs are incurred , as applicable . resident services and fee income primarily relates to rent from residents in our seniors housing โ operating properties ( `` shop `` ) held using a structure permitted by the reit investment diversification and empowerment act of 2007 and to fees for ancillary services performed for residents in our shops . rental income from residents of our shop operating segment is recognized as earned . residents pay monthly rent that covers occupancy of their unit and basic services , including utilities , meals and some housekeeping services . the terms of the rent are short term in nature , primarily month-to-month . fees for ancillary services are recorded in the period in which the services are performed . we defer the revenue related to lease payments received from tenants and residents in advance of their due dates . we continually review receivables related to rent and unbilled rent receivables and determine collectability by taking into consideration the tenant 's payment history , the financial condition of the tenant , business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located . in the event that the collectability of a receivable is in doubt , we record an increase in the allowance for uncollectible accounts on the consolidated balance sheets or record a direct write-off of the receivable in the consolidated statements of operations and comprehensive loss . real estate investments investments in real estate are recorded at cost . improvements and replacements are capitalized when they extend the useful life or improve the productive capacity of the asset . costs of repairs and maintenance are expensed as incurred . we evaluate the inputs , processes and outputs of each asset acquired to determine if the transaction is a business combination or asset acquisition . if an acquisition qualifies as a business combination , the related transaction costs are recorded as an expense in the consolidated statements of operations and comprehensive loss . if an acquisition qualifies as an asset acquisition , the related transaction costs are generally capitalized and subsequently amortized over the useful life of the acquired assets . in business combinations , we allocate the purchase price of acquired properties to tangible and identifiable intangible assets or liabilities based on their respective fair values . tangible assets may include land , land improvements , buildings , fixtures and tenant improvements . intangible assets may include the value of in-place leases and above- and below-market leases . in addition , any assumed mortgages receivable or payable and any assumed or issued non-controlling interests are recorded at their estimated fair values . we generally determine the value of construction in progress based upon the replacement cost . during the construction period , we capitalize interest , insurance and real estate taxes until the development has reached substantial completion . the fair value of the tangible assets of an acquired property with an in-place operating lease is determined by valuing the property as if it were vacant , and the โ as-if-vacant โ value is then allocated to the tangible assets based on the fair value of the tangible assets . the fair value of in-place leases is determined by considering estimates of carrying costs during the expected lease-up periods , current market conditions , as well as costs to execute similar leases . the fair value of above- or below-market leases is recorded based on the present value of the difference between the contractual amount to be paid pursuant to the in-place lease and our estimate of the fair market lease rate for the corresponding in-place lease , measured over the remaining term of the lease including any below-market fixed rate renewal options for below-market leases . in making estimates of fair values for purposes of allocating purchase price , we utilize a number of sources , including real estate valuations prepared by independent valuation firms . we also consider information and other factors including market conditions , the industry that the tenant operates in , characteristics of the real estate , i.e . location , size , demographics , value and comparative rental rates , tenant credit profile and the importance of the location of the real estate to the operations of the tenant 's business . in allocating the fair value to assumed mortgages , amounts are recorded to debt premiums or discounts based on the present value of the estimated cash flows , which is calculated to account for either above- or below-market interest rates . story_separator_special_tag as a result , we evaluated the impact on our ability to recover the carrying value of such properties based on the expected cash flows over our intended holding period . we determined that the carrying value of six of the held for use properties exceeded their estimated fair values and , as a result , recognized the impairment charge . impairment related to the sale of real estate investments during the year ended december 31 , 2016 related to two real estate investments held for sale with an accepted sales price less than the carrying value . this resulted in an impairment of $ 0.4 million during the period . operating fees to related parties operating fees to related parties increased $ 1.7 million to $ 22.3 million for the year ended december 31 , 2017 from $ 20.6 million for the year ended december 31 , 2016 . our advisor and property manager are paid for asset management and property management services for managing our properties on a day-to-day basis . effective february 17 , 2017 , we pay a base management fee equal to $ 1.6 million per month , while the variable portion of the base management fee is equal , per month , to one twelfth per month of 1.25 % of the cumulative net proceeds of any equity raised ( excluding drip proceeds ) subsequent to february 17 , 2017. during the year ended december 31 , 2016 , our asset management fee was equal to a percentage of the lesser of ( a ) cost of assets and ( b ) fair value of assets . asset management fees increased $ 0.5 million to $ 19.2 million for the year ended december 31 , 2017 from $ 17.6 million for the year ended december 31 , 2016 . we incurred $ 3.1 million and $ 3.0 million in property management fees during the year s ended december 31 , 2017 and december 31 , 2016 , respectively . property management fees increase or decrease in direct correlation with gross revenues of the properties managed . see note 9 โ related party transactions and arrangements to our consolidated financial statements provides detail on our fees and expense reimbursements . 59 acquisition and transaction related expenses acquisition and transaction related expenses generally increase in direct correlation with the number and contract purchase price of properties acquired or sold during the period and the level of activity surrounding any contemplated transaction or strategic process . acquisition and transaction related expenses of $ 3.0 million for the year ended december 31 , 2017 . acquisition and transaction related expenses of approximately $ 3.2 million for the year ended december 31 , 2016 , primarily related to the board 's evaluation of potential strategic alternatives and costs associated with property acquisitions . general and administrative expenses general and administrative expenses increased $ 3.6 million to $ 15.7 million for the year ended december 31 , 2017 compared to $ 12.1 million for the year ended december 31 , 2016 , which includes $ 8.1 million and $ 5.1 million incurred in expense reimbursements and distributions on partnership units of the op designated as `` class b units `` ( `` class b units `` ) to related parties . general and administrative expenses primarily relate to professional fees for audit , transfer agent and legal services as well as certain expenses reimbursed to related parties . depreciation and amortization expenses depreciation and amortization expense decreased $ 21.3 million to $ 77.6 million for the year ended december 31 , 2017 from $ 98.9 million for the year ended december 31 , 2016 . same store depreciation and amortization decreased $ 22.2 million , of which $ 15.5 million was related to the same store shop portfolio . this change was primarily attributed to several intangible assets becoming fully amortized in late 2016 as well as lower depreciation base in 2017 due to the $ 19.0 million asset impairment discussed above . interest expense interest expense increased $ 10.4 million to $ 30.3 million for the year ended december 31 , 2017 from $ 19.9 million for the year ended december 31 , 2016 . the increase in interest expense is related to higher overall outstanding debt including new borrowings under the fannie mae facilities . our increased outstanding debt also includes a multi-property mortgage loan with capital one , national association , along with certain other lenders , that was entered into june 30 , 2017 for $ 250.0 million ( the `` mob loan `` ) and an $ 82.0 million multi-property mortgage loan ( the `` bridge loan `` ) entered into in december 2017. our interest expense in future periods will vary based on our level of future borrowings , the cost of borrowings and the opportunity to acquire real estate assets which meet our investment objectives . interest and other income interest and other income increased to approximately $ 0.3 million for the year ended december 31 , 2017 from approximately $ 47 thousand for the year ended december 31 , 2016 . interest and other income includes income from our investment securities and interest income earned on cash and cash equivalents held during the period . the increase resulted from the recognition of a prospective buyer 's non-refundable deposit on an unconsummated sale of a vacant land parcel during the year ended december 31 , 2017 . loss on non-designated derivative instruments loss on non-designated derivative instruments for the year ended december 31 , 2017 related to interest rate caps that are designed to protect us from adverse interest rate changes in connection with our fannie credit facilities , which have floating interest rates . the 2017 loss of approximately $ 0.2 million reflects mark-to-market fair value adjustments for the interest rate caps , which have not been designated as cash flow hedges . gain on sale of real estate investment gain on
| cash flows from investing activities net cash used in investing activities during the year ended december 31 , 2017 was $ 194.4 million . the cash used in investing activities included $ 188.9 million for investments in real estate , including the asset purchase from american realty capital healthcare trust iii , inc. ( see note 9 โ related party transactions and arrangements ) , and to fund the ongoing development property in jupiter , florida , as well as $ 8.3 million of capital expenditures . these cash outflows were partially offset by proceeds from the sale of real estate of $ 0.8 million , proceeds from asset acquisitions of $ 0.9 million and proceeds from a deposit for a potential real estate sale of $ 1.1 million . net cash used in investing activities during the year ended december 31 , 2016 was $ 19.1 million . the cash used in investing activities included $ 38.7 million to fund the ongoing development property in jupiter , florida as well as $ 7.5 million of capital expenditures . these cash outflows were partially offset by proceeds from the sale of real estate of $ 25.9 million , proceeds from the sale of investment securities of $ 1.1 million and proceeds from a deposit for a potential real estate sale of $ 0.1 million . net cash used in investing activities during the year ended december 31 , 2015 was $ 556.8 million .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows from investing activities net cash used in investing activities during the year ended december 31 , 2017 was $ 194.4 million . the cash used in investing activities included $ 188.9 million for investments in real estate , including the asset purchase from american realty capital healthcare trust iii , inc. ( see note 9 โ related party transactions and arrangements ) , and to fund the ongoing development property in jupiter , florida , as well as $ 8.3 million of capital expenditures . these cash outflows were partially offset by proceeds from the sale of real estate of $ 0.8 million , proceeds from asset acquisitions of $ 0.9 million and proceeds from a deposit for a potential real estate sale of $ 1.1 million . net cash used in investing activities during the year ended december 31 , 2016 was $ 19.1 million . the cash used in investing activities included $ 38.7 million to fund the ongoing development property in jupiter , florida as well as $ 7.5 million of capital expenditures . these cash outflows were partially offset by proceeds from the sale of real estate of $ 25.9 million , proceeds from the sale of investment securities of $ 1.1 million and proceeds from a deposit for a potential real estate sale of $ 0.1 million . net cash used in investing activities during the year ended december 31 , 2015 was $ 556.8 million .
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Suspicious Activity Report : these significant accounting estimates and critical accounting policies include : revenue recognition our rental income is primarily related to rent received from tenants in our mobs and triple-net leased healthcare facilities . rent from tenants in our mob and triple-net leased healthcare facilities operating segments is recorded in accordance with the terms of each lease on a straight-line basis over the initial term of the lease . because many of the leases provide for rental increases at specified intervals , accounting principles generally accepted in the united states ( `` gaap `` ) require us to record a receivable , and include in revenues on a straight-line basis , unbilled rent receivables that we will only receive if the tenant makes all rent payments required through the expiration of the initial term of the lease . when we acquire a property , the acquisition date is considered to be the commencement date for purposes of this calculation . for new leases after acquisition , the commencement date is considered to be the date the tenant takes control of the space . for lease modifications , the commencement date is considered to be the date the lease is executed . we defer the revenue related to lease payments received from tenants in advance of their due dates . cost recoveries from tenants are included in operating expense reimbursement in the period the related costs are incurred , as applicable . resident services and fee income primarily relates to rent from residents in our seniors housing โ operating properties ( `` shop `` ) held using a structure permitted by the reit investment diversification and empowerment act of 2007 and to fees for ancillary services performed for residents in our shops . rental income from residents of our shop operating segment is recognized as earned . residents pay monthly rent that covers occupancy of their unit and basic services , including utilities , meals and some housekeeping services . the terms of the rent are short term in nature , primarily month-to-month . fees for ancillary services are recorded in the period in which the services are performed . we defer the revenue related to lease payments received from tenants and residents in advance of their due dates . we continually review receivables related to rent and unbilled rent receivables and determine collectability by taking into consideration the tenant 's payment history , the financial condition of the tenant , business conditions in the industry in which the tenant operates and economic conditions in the area in which the property is located . in the event that the collectability of a receivable is in doubt , we record an increase in the allowance for uncollectible accounts on the consolidated balance sheets or record a direct write-off of the receivable in the consolidated statements of operations and comprehensive loss . real estate investments investments in real estate are recorded at cost . improvements and replacements are capitalized when they extend the useful life or improve the productive capacity of the asset . costs of repairs and maintenance are expensed as incurred . we evaluate the inputs , processes and outputs of each asset acquired to determine if the transaction is a business combination or asset acquisition . if an acquisition qualifies as a business combination , the related transaction costs are recorded as an expense in the consolidated statements of operations and comprehensive loss . if an acquisition qualifies as an asset acquisition , the related transaction costs are generally capitalized and subsequently amortized over the useful life of the acquired assets . in business combinations , we allocate the purchase price of acquired properties to tangible and identifiable intangible assets or liabilities based on their respective fair values . tangible assets may include land , land improvements , buildings , fixtures and tenant improvements . intangible assets may include the value of in-place leases and above- and below-market leases . in addition , any assumed mortgages receivable or payable and any assumed or issued non-controlling interests are recorded at their estimated fair values . we generally determine the value of construction in progress based upon the replacement cost . during the construction period , we capitalize interest , insurance and real estate taxes until the development has reached substantial completion . the fair value of the tangible assets of an acquired property with an in-place operating lease is determined by valuing the property as if it were vacant , and the โ as-if-vacant โ value is then allocated to the tangible assets based on the fair value of the tangible assets . the fair value of in-place leases is determined by considering estimates of carrying costs during the expected lease-up periods , current market conditions , as well as costs to execute similar leases . the fair value of above- or below-market leases is recorded based on the present value of the difference between the contractual amount to be paid pursuant to the in-place lease and our estimate of the fair market lease rate for the corresponding in-place lease , measured over the remaining term of the lease including any below-market fixed rate renewal options for below-market leases . in making estimates of fair values for purposes of allocating purchase price , we utilize a number of sources , including real estate valuations prepared by independent valuation firms . we also consider information and other factors including market conditions , the industry that the tenant operates in , characteristics of the real estate , i.e . location , size , demographics , value and comparative rental rates , tenant credit profile and the importance of the location of the real estate to the operations of the tenant 's business . in allocating the fair value to assumed mortgages , amounts are recorded to debt premiums or discounts based on the present value of the estimated cash flows , which is calculated to account for either above- or below-market interest rates . story_separator_special_tag as a result , we evaluated the impact on our ability to recover the carrying value of such properties based on the expected cash flows over our intended holding period . we determined that the carrying value of six of the held for use properties exceeded their estimated fair values and , as a result , recognized the impairment charge . impairment related to the sale of real estate investments during the year ended december 31 , 2016 related to two real estate investments held for sale with an accepted sales price less than the carrying value . this resulted in an impairment of $ 0.4 million during the period . operating fees to related parties operating fees to related parties increased $ 1.7 million to $ 22.3 million for the year ended december 31 , 2017 from $ 20.6 million for the year ended december 31 , 2016 . our advisor and property manager are paid for asset management and property management services for managing our properties on a day-to-day basis . effective february 17 , 2017 , we pay a base management fee equal to $ 1.6 million per month , while the variable portion of the base management fee is equal , per month , to one twelfth per month of 1.25 % of the cumulative net proceeds of any equity raised ( excluding drip proceeds ) subsequent to february 17 , 2017. during the year ended december 31 , 2016 , our asset management fee was equal to a percentage of the lesser of ( a ) cost of assets and ( b ) fair value of assets . asset management fees increased $ 0.5 million to $ 19.2 million for the year ended december 31 , 2017 from $ 17.6 million for the year ended december 31 , 2016 . we incurred $ 3.1 million and $ 3.0 million in property management fees during the year s ended december 31 , 2017 and december 31 , 2016 , respectively . property management fees increase or decrease in direct correlation with gross revenues of the properties managed . see note 9 โ related party transactions and arrangements to our consolidated financial statements provides detail on our fees and expense reimbursements . 59 acquisition and transaction related expenses acquisition and transaction related expenses generally increase in direct correlation with the number and contract purchase price of properties acquired or sold during the period and the level of activity surrounding any contemplated transaction or strategic process . acquisition and transaction related expenses of $ 3.0 million for the year ended december 31 , 2017 . acquisition and transaction related expenses of approximately $ 3.2 million for the year ended december 31 , 2016 , primarily related to the board 's evaluation of potential strategic alternatives and costs associated with property acquisitions . general and administrative expenses general and administrative expenses increased $ 3.6 million to $ 15.7 million for the year ended december 31 , 2017 compared to $ 12.1 million for the year ended december 31 , 2016 , which includes $ 8.1 million and $ 5.1 million incurred in expense reimbursements and distributions on partnership units of the op designated as `` class b units `` ( `` class b units `` ) to related parties . general and administrative expenses primarily relate to professional fees for audit , transfer agent and legal services as well as certain expenses reimbursed to related parties . depreciation and amortization expenses depreciation and amortization expense decreased $ 21.3 million to $ 77.6 million for the year ended december 31 , 2017 from $ 98.9 million for the year ended december 31 , 2016 . same store depreciation and amortization decreased $ 22.2 million , of which $ 15.5 million was related to the same store shop portfolio . this change was primarily attributed to several intangible assets becoming fully amortized in late 2016 as well as lower depreciation base in 2017 due to the $ 19.0 million asset impairment discussed above . interest expense interest expense increased $ 10.4 million to $ 30.3 million for the year ended december 31 , 2017 from $ 19.9 million for the year ended december 31 , 2016 . the increase in interest expense is related to higher overall outstanding debt including new borrowings under the fannie mae facilities . our increased outstanding debt also includes a multi-property mortgage loan with capital one , national association , along with certain other lenders , that was entered into june 30 , 2017 for $ 250.0 million ( the `` mob loan `` ) and an $ 82.0 million multi-property mortgage loan ( the `` bridge loan `` ) entered into in december 2017. our interest expense in future periods will vary based on our level of future borrowings , the cost of borrowings and the opportunity to acquire real estate assets which meet our investment objectives . interest and other income interest and other income increased to approximately $ 0.3 million for the year ended december 31 , 2017 from approximately $ 47 thousand for the year ended december 31 , 2016 . interest and other income includes income from our investment securities and interest income earned on cash and cash equivalents held during the period . the increase resulted from the recognition of a prospective buyer 's non-refundable deposit on an unconsummated sale of a vacant land parcel during the year ended december 31 , 2017 . loss on non-designated derivative instruments loss on non-designated derivative instruments for the year ended december 31 , 2017 related to interest rate caps that are designed to protect us from adverse interest rate changes in connection with our fannie credit facilities , which have floating interest rates . the 2017 loss of approximately $ 0.2 million reflects mark-to-market fair value adjustments for the interest rate caps , which have not been designated as cash flow hedges . gain on sale of real estate investment gain on
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2,579 | in addition , we recorded a charge in the current period of $ 211,000 related to amounts paid to althea for costs to fill and finish alferonยฎ and had recorded these amounts within work-in-process inventory . we no longer believe that the benefits from these payments will be realized and have written off the amount in the current period . research and development costs overall research and development ( โ r & d โ ) costs for the year ended december 31 , 2017 were approximately $ 4,098,000 as compared to $ 5,107,000 for the same period a year ago , reflecting a decrease of approximately $ 1,009,000 or 20 % . the primary reason for the decrease in research and development costs was an overall decrease in ampligenยฎ and alferonยฎ costs as a result of cost cutting programs . general and administrative expenses general and administrative ( โ g & a โ ) expenses for the years ended december 31 , 2017 and 2016 , were approximately $ 6,572,000 and $ 7,681,000 , respectively , reflecting a decrease of approximately $ 1,109,000 or 14 % . the decrease in g & a expenses during the current period was mainly due to a one-time charge of $ 850,000 in 2016 resulting from a severance payment to a former executive upon termination . interest and other income interest and other income for the years ended december 31 , 2017 and 2016 was approximately $ 88,000 and $ 129,000 , respectively , representing a decrease of approximately $ 41,000 or 32 % . the primary cause for the decrease in investment income during the current period was primarily due to lower balances available to invest in the current period as compared to the prior period . redeemable warrants the quarterly fiscal revaluation of certain redeemable warrants resulted in a non-cash adjustment to the redeemable warrants liability for the year ended december 31 , 2017 amounting to a higher gain of approximately $ 740,000 ( see part i ; item 1 ; financial statements ; โ note 17 : fair value โ for the various factors considered in the valuation of redeemable warrants ) . insurance proceeds from legal settlement during the year ended december 31 , 2016 insurance proceeds , net of costs , of approximately $ 1,626,000 were received from the settlement of litigations . there were no insurance proceeds received in the year ended december 31 , 2017 . 39 sale of new jersey tax net operating loss in january 2016 , the company effectively sold $ 16,000,000 of its approximately $ 29,000,000 of new jersey state net operating loss carryforwards ( for the year 2014 ) for approximately $ 1,320,000 and sold research credits for $ 241,000. also , in december 2016 , the company effectively sold $ 14,000,000 of its new jersey state net operating loss carryforwards ( for the year 2015 ) for approximately $ 1,120,000 and sold research credits for $ 189,000. in december 2017 , the company effectively sold $ 8,000,000 new jersey state net operating loss for approximately $ 622,000 and sold research credits for $ 169,000. year ended december 31 , 2016 versus year ended december 31 , 2015 net loss our net loss was approximately $ 7,502,000 and $ 15,230,000 for the year ended december 31 , 2016 and 2015 , respectively , representing a decrease in loss of approximately $ 7,728,000 or 51 % when compared to the same period in 2015. this decrease in loss for this year was primarily due to the following : 1 ) a decrease in research and development expense of $ 2,931,000 or 36 % ; 2 ) a decrease in production costs of approximately $ 490,000 or 31 % ; 3 ) an insurance settlement net of litigation expenses recorded as other income of $ 1,626,000 ; 4 ) an increase in the gain from sale of income tax net operating losses of $ 1,496,000 or 109 % ; and 5 ) a gain on the valuation adjustment on the redeemable warrants of approximately $ 1,677,000 ; offset by 6 ) an increase in general and administrative expense of approximately $ 534,000 or 7 % . net loss per share was $ ( 0.34 ) and $ ( 0.77 ) for the year ended december 31 , 2016 and 2015 , respectively . the weighted average number of shares of our common stock outstanding as of december 31 , 2016 was 21,818,206 as compared to 19,679,315 as of december 31 , 2015. revenues revenues from our ampligenยฎ cost recovery program were $ 92,000 and $ 133,000 for the year ended december 31 , 2016 and 2015 , respectively . for the years ended december 31 , 2016 and 2015 , we had no alferon n injectionยฎ finished good product to commercially sell and all revenue was generated from the fda approved open-label treatment protocol , ( โ amp-511 โ ) , that allows patient access to ampligenยฎ for treatment in an open-label safety study . production costs production costs were approximately $ 1,108,000 and 1,598,000 , respectively , for the years ended december 31 , 2016 and 2015. this decrease of approximately $ 490,000 or 31 % was primarily due to a decline in ongoing stability testing on alferonยฎ work-in-process inventory . research and development costs overall research and development ( โ r & d โ ) costs for the year ended december 31 , 2016 were approximately $ 5,107,000 as compared to $ 8,038,000 for the same period a year ago , reflecting a decrease of approximately $ 2,931,000 or 36 % . story_separator_special_tag โ new accounting pronouncements refer to โ note 2 ( i ) โ recent accounting standards and pronouncements โ under notes to consolidated financial statements . disclosure about off-balance sheet arrangements none . critical accounting policies financial reporting release no . 60 requires all companies to include a discussion of critical accounting policies or methods used in the preparation of financial statements . our significant accounting policies are described in the notes to consolidated financial statements . the significant accounting policies that we believe are most critical to aid in fully understanding our reported financial results are the following : revenue the company has elected to apply the full retrospective application to implement the new revenue recognition standard asc 606. the company , based on the nature of its ampligen sales under its cost recovery programs , determined that there were no material differences between the new accounting standard and legacy gaap and that difficulties will not arise for any โ open โ contract issues with its customers during the transition period . the company also determined that the adoption of this standard will have little or no impact to the company 's opening balance of retained earnings . revenue from the sale of ampligenยฎ under cost recovery clinical treatment protocols approved by the fda is recognized when the treatment is provided to the patient . revenues from the sale of product are recognized when the product is delivered , as title is then transferred to the customer . we have no other obligation associated with our products once shipment has been accepted by the customer inventories we use the lower of first-in , first-out ( โ fifo โ ) cost and net realizable value method of accounting for inventory . 45 patents and trademarks patents and trademarks are stated at cost ( primarily legal fees ) and are amortized using the straight-line method over the estimated useful life of 17 years . we review our patents and trademark rights periodically to determine whether they have continuing value . such review includes an analysis of the patent and trademark 's ultimate revenue and profitability potential . in addition , management 's review addresses whether each patent continues to fit into our strategic business plans . long-lived assets we assess long-lived assets for impairment when events or changes in circumstances indicate that the carrying value of the assets or the asset grouping may not be recoverable . factors that we considers in deciding when to perform an impairment review include significant under-performance of a business or product line in relation to expectations , significant negative industry or economic trends , and significant changes or planned changes in its use of the assets . we measure the recoverability of assets that it will continue to use in its operations by comparing the carrying value of the asset grouping to our estimate of the related total future undiscounted net cash flows . if an asset grouping 's carrying value is not recoverable through the related undiscounted cash flows , the asset grouping is considered to be impaired . we measure the impairment by comparing the difference between the asset grouping 's carrying value and its fair value . long-lived assets are considered a non-financial asset and are recorded at fair value only if an impairment charge is recognized . impairments are determined for groups of assets related to the lowest level of identifiable independent cash flows . we make subjective judgments in determining the independent cash flows that can be related to specific asset groupings . in addition , as we review our manufacturing process and other manufacturing planning decisions , we must make subjective judgments regarding the remaining useful lives of assets . when we determine that the useful lives of assets are shorter than originally estimated , we accelerate the rate of depreciation over the assets ' new , shorter useful lives . stock-based compensation under fasb asc 718-compensation-stock compensation ( โ asc 718 โ ) share-based compensation cost is measured at the grant date , based on the estimated fair value of the award , and is recognized as expense over the requisite service period . we adopted the provisions of asc-718 , using a modified prospective application . under this method , compensation cost is recognized for all share-based payments granted , modified or settled after the date of adoption , as well as for any unvested awards that were granted prior to the date of adoption . the fair value of each option award is estimated on the date of grant using a black-scholes-merton pricing option valuation model . expected volatility is based on the historical volatility of the price of our common stock . the risk-free interest rate is based on u.s. treasury issues with a term equal to the expected life of the option . we use historical data to estimate expected dividend yield , expected life , which represents the period of time the options are expected to be outstanding until they are exercised , and forfeiture rates . redeemable warrants we utilize the guidance contained in asc 480 ( formerly sfas 150 ) in the determination of whether to record warrants and options as equity and or liability . if the guidance of asc 480 is deemed inconclusive , we continue our analysis utilizing asc 815 ( formerly eitf 00-19 ) . our method of recording the related value attempts to be consistent with the standards as defined by the financial accounting standards board utilizing the concept of โ fair value โ from asc 820-10-55-1 that states that any fair value measurement requires that the reporting entity , to determine the valuation technique ( s ) appropriate for the measurement , consider the availability of data with which to develop inputs that represent the assumptions that market participants would use in pricing the asset or liability and the level in the fair value hierarchy within which the inputs fall . 46 we recomputed the
| liquidity and capital resources under new leadership and direction , we have set and met extensive financial goals . in february 2018 , we sold an under-utilized warehouse at jules lane for $ 1,050,000. in march 2018 , we sold our manufacturing facility for $ 4,080,000 while simultaneously entering into a favorable long term lease with an option to repurchase the facility . in february and march , 2018 , we realized $ 1,260,000 through the exercising of outstanding warrants . in december 2017 , we reactivated the eda and , through strategic management , have raised $ 853,000 and , most recently , on march 24 , 2018 , we sold common stock netting us an additional $ 475,000. in short , we have raised in excess of $ 5,000,000 allowing us to move forward free of debt . cash used in operating activities for the year ended december 31 , 2017 was approximately $ 7,941,000 compared to approximately $ 7,380,000 for the same period in 2016 , an increase of $ 561,000 or 8 % . the primary reasons for this increase in cash used in operations in 2017 was the receipt of $ 2,870,000 in funds in 2016 from the sale of our new jersey state net operating loss carryforwards and $ 1,626,000 of insurance proceeds for litigation settlements . in 2017 we received only $ 791,000 from the sale of our new jersey net operating loss carryforwards .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources under new leadership and direction , we have set and met extensive financial goals . in february 2018 , we sold an under-utilized warehouse at jules lane for $ 1,050,000. in march 2018 , we sold our manufacturing facility for $ 4,080,000 while simultaneously entering into a favorable long term lease with an option to repurchase the facility . in february and march , 2018 , we realized $ 1,260,000 through the exercising of outstanding warrants . in december 2017 , we reactivated the eda and , through strategic management , have raised $ 853,000 and , most recently , on march 24 , 2018 , we sold common stock netting us an additional $ 475,000. in short , we have raised in excess of $ 5,000,000 allowing us to move forward free of debt . cash used in operating activities for the year ended december 31 , 2017 was approximately $ 7,941,000 compared to approximately $ 7,380,000 for the same period in 2016 , an increase of $ 561,000 or 8 % . the primary reasons for this increase in cash used in operations in 2017 was the receipt of $ 2,870,000 in funds in 2016 from the sale of our new jersey state net operating loss carryforwards and $ 1,626,000 of insurance proceeds for litigation settlements . in 2017 we received only $ 791,000 from the sale of our new jersey net operating loss carryforwards .
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Suspicious Activity Report : in addition , we recorded a charge in the current period of $ 211,000 related to amounts paid to althea for costs to fill and finish alferonยฎ and had recorded these amounts within work-in-process inventory . we no longer believe that the benefits from these payments will be realized and have written off the amount in the current period . research and development costs overall research and development ( โ r & d โ ) costs for the year ended december 31 , 2017 were approximately $ 4,098,000 as compared to $ 5,107,000 for the same period a year ago , reflecting a decrease of approximately $ 1,009,000 or 20 % . the primary reason for the decrease in research and development costs was an overall decrease in ampligenยฎ and alferonยฎ costs as a result of cost cutting programs . general and administrative expenses general and administrative ( โ g & a โ ) expenses for the years ended december 31 , 2017 and 2016 , were approximately $ 6,572,000 and $ 7,681,000 , respectively , reflecting a decrease of approximately $ 1,109,000 or 14 % . the decrease in g & a expenses during the current period was mainly due to a one-time charge of $ 850,000 in 2016 resulting from a severance payment to a former executive upon termination . interest and other income interest and other income for the years ended december 31 , 2017 and 2016 was approximately $ 88,000 and $ 129,000 , respectively , representing a decrease of approximately $ 41,000 or 32 % . the primary cause for the decrease in investment income during the current period was primarily due to lower balances available to invest in the current period as compared to the prior period . redeemable warrants the quarterly fiscal revaluation of certain redeemable warrants resulted in a non-cash adjustment to the redeemable warrants liability for the year ended december 31 , 2017 amounting to a higher gain of approximately $ 740,000 ( see part i ; item 1 ; financial statements ; โ note 17 : fair value โ for the various factors considered in the valuation of redeemable warrants ) . insurance proceeds from legal settlement during the year ended december 31 , 2016 insurance proceeds , net of costs , of approximately $ 1,626,000 were received from the settlement of litigations . there were no insurance proceeds received in the year ended december 31 , 2017 . 39 sale of new jersey tax net operating loss in january 2016 , the company effectively sold $ 16,000,000 of its approximately $ 29,000,000 of new jersey state net operating loss carryforwards ( for the year 2014 ) for approximately $ 1,320,000 and sold research credits for $ 241,000. also , in december 2016 , the company effectively sold $ 14,000,000 of its new jersey state net operating loss carryforwards ( for the year 2015 ) for approximately $ 1,120,000 and sold research credits for $ 189,000. in december 2017 , the company effectively sold $ 8,000,000 new jersey state net operating loss for approximately $ 622,000 and sold research credits for $ 169,000. year ended december 31 , 2016 versus year ended december 31 , 2015 net loss our net loss was approximately $ 7,502,000 and $ 15,230,000 for the year ended december 31 , 2016 and 2015 , respectively , representing a decrease in loss of approximately $ 7,728,000 or 51 % when compared to the same period in 2015. this decrease in loss for this year was primarily due to the following : 1 ) a decrease in research and development expense of $ 2,931,000 or 36 % ; 2 ) a decrease in production costs of approximately $ 490,000 or 31 % ; 3 ) an insurance settlement net of litigation expenses recorded as other income of $ 1,626,000 ; 4 ) an increase in the gain from sale of income tax net operating losses of $ 1,496,000 or 109 % ; and 5 ) a gain on the valuation adjustment on the redeemable warrants of approximately $ 1,677,000 ; offset by 6 ) an increase in general and administrative expense of approximately $ 534,000 or 7 % . net loss per share was $ ( 0.34 ) and $ ( 0.77 ) for the year ended december 31 , 2016 and 2015 , respectively . the weighted average number of shares of our common stock outstanding as of december 31 , 2016 was 21,818,206 as compared to 19,679,315 as of december 31 , 2015. revenues revenues from our ampligenยฎ cost recovery program were $ 92,000 and $ 133,000 for the year ended december 31 , 2016 and 2015 , respectively . for the years ended december 31 , 2016 and 2015 , we had no alferon n injectionยฎ finished good product to commercially sell and all revenue was generated from the fda approved open-label treatment protocol , ( โ amp-511 โ ) , that allows patient access to ampligenยฎ for treatment in an open-label safety study . production costs production costs were approximately $ 1,108,000 and 1,598,000 , respectively , for the years ended december 31 , 2016 and 2015. this decrease of approximately $ 490,000 or 31 % was primarily due to a decline in ongoing stability testing on alferonยฎ work-in-process inventory . research and development costs overall research and development ( โ r & d โ ) costs for the year ended december 31 , 2016 were approximately $ 5,107,000 as compared to $ 8,038,000 for the same period a year ago , reflecting a decrease of approximately $ 2,931,000 or 36 % . story_separator_special_tag โ new accounting pronouncements refer to โ note 2 ( i ) โ recent accounting standards and pronouncements โ under notes to consolidated financial statements . disclosure about off-balance sheet arrangements none . critical accounting policies financial reporting release no . 60 requires all companies to include a discussion of critical accounting policies or methods used in the preparation of financial statements . our significant accounting policies are described in the notes to consolidated financial statements . the significant accounting policies that we believe are most critical to aid in fully understanding our reported financial results are the following : revenue the company has elected to apply the full retrospective application to implement the new revenue recognition standard asc 606. the company , based on the nature of its ampligen sales under its cost recovery programs , determined that there were no material differences between the new accounting standard and legacy gaap and that difficulties will not arise for any โ open โ contract issues with its customers during the transition period . the company also determined that the adoption of this standard will have little or no impact to the company 's opening balance of retained earnings . revenue from the sale of ampligenยฎ under cost recovery clinical treatment protocols approved by the fda is recognized when the treatment is provided to the patient . revenues from the sale of product are recognized when the product is delivered , as title is then transferred to the customer . we have no other obligation associated with our products once shipment has been accepted by the customer inventories we use the lower of first-in , first-out ( โ fifo โ ) cost and net realizable value method of accounting for inventory . 45 patents and trademarks patents and trademarks are stated at cost ( primarily legal fees ) and are amortized using the straight-line method over the estimated useful life of 17 years . we review our patents and trademark rights periodically to determine whether they have continuing value . such review includes an analysis of the patent and trademark 's ultimate revenue and profitability potential . in addition , management 's review addresses whether each patent continues to fit into our strategic business plans . long-lived assets we assess long-lived assets for impairment when events or changes in circumstances indicate that the carrying value of the assets or the asset grouping may not be recoverable . factors that we considers in deciding when to perform an impairment review include significant under-performance of a business or product line in relation to expectations , significant negative industry or economic trends , and significant changes or planned changes in its use of the assets . we measure the recoverability of assets that it will continue to use in its operations by comparing the carrying value of the asset grouping to our estimate of the related total future undiscounted net cash flows . if an asset grouping 's carrying value is not recoverable through the related undiscounted cash flows , the asset grouping is considered to be impaired . we measure the impairment by comparing the difference between the asset grouping 's carrying value and its fair value . long-lived assets are considered a non-financial asset and are recorded at fair value only if an impairment charge is recognized . impairments are determined for groups of assets related to the lowest level of identifiable independent cash flows . we make subjective judgments in determining the independent cash flows that can be related to specific asset groupings . in addition , as we review our manufacturing process and other manufacturing planning decisions , we must make subjective judgments regarding the remaining useful lives of assets . when we determine that the useful lives of assets are shorter than originally estimated , we accelerate the rate of depreciation over the assets ' new , shorter useful lives . stock-based compensation under fasb asc 718-compensation-stock compensation ( โ asc 718 โ ) share-based compensation cost is measured at the grant date , based on the estimated fair value of the award , and is recognized as expense over the requisite service period . we adopted the provisions of asc-718 , using a modified prospective application . under this method , compensation cost is recognized for all share-based payments granted , modified or settled after the date of adoption , as well as for any unvested awards that were granted prior to the date of adoption . the fair value of each option award is estimated on the date of grant using a black-scholes-merton pricing option valuation model . expected volatility is based on the historical volatility of the price of our common stock . the risk-free interest rate is based on u.s. treasury issues with a term equal to the expected life of the option . we use historical data to estimate expected dividend yield , expected life , which represents the period of time the options are expected to be outstanding until they are exercised , and forfeiture rates . redeemable warrants we utilize the guidance contained in asc 480 ( formerly sfas 150 ) in the determination of whether to record warrants and options as equity and or liability . if the guidance of asc 480 is deemed inconclusive , we continue our analysis utilizing asc 815 ( formerly eitf 00-19 ) . our method of recording the related value attempts to be consistent with the standards as defined by the financial accounting standards board utilizing the concept of โ fair value โ from asc 820-10-55-1 that states that any fair value measurement requires that the reporting entity , to determine the valuation technique ( s ) appropriate for the measurement , consider the availability of data with which to develop inputs that represent the assumptions that market participants would use in pricing the asset or liability and the level in the fair value hierarchy within which the inputs fall . 46 we recomputed the
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2,580 | in addition to volumetric revenues , the revenue requirements approved by the cpuc include service charges , flat rate charges , and other items not subject to the wram . cost-recovery rates are designed to permit full recovery of certain costs allowed to be recovered by the commissions . cost-recovery rates such as the mcba provides for recovery of adopted expense levels for purchased water , purchased power and pump taxes , as established by the cpuc . in addition , cost-recovery rates include recovery of cost related to water conservation programs and certain other operating expenses adopted by the cpuc . variances ( which include the effects of changes in both rate and volume for the mcba ) between adopted and actual costs are recorded as a component of revenue , as the amount of such variances will 31 be recovered from or refunded to our customers at a later date . cost-recovery expenses are generally recognized when the expenses are incurred with no markup for return or profit . the balances in the wram and mcba assets and liabilities accounts will fluctuate on a monthly basis depending upon the variance between adopted and actual results . the recovery or refund of the wram is netted against the mcba over- or under-recovery for the corresponding district and the deferred net balances are interest bearing at the current 90 day commercial paper rate . at the end of the calendar year , cal water files with the cpuc to refund or collect the balance in the accounts . the majority of undercollected net wram and mcba receivable balances are collected over 12 and 18 months . cal water defers any net wram and mcba revenues and associated costs whenever the net receivable balances are estimated to be collected more than 24 months after the respective reporting period in which it was recorded . the deferred net wram and mcba revenue and associated costs were determined using forecasts of customer consumption trends in future reporting periods and the timing of when the cpuc will authorize cal water 's filings to recover unbilled balances . deferred revenues and associated costs are recorded in the periods when the collection is within 24 months of the respective reporting period . customers meter reads occur on various business days throughout the month . as a result , there are unmetered or unbilled customer usage each month . the estimated unbilled revenue for monthly unmetered customer usage is recorded using the number of unbilled days for that month and average daily customer billing rate for the previous month . the average daily customer billing rate for the previous month fluctuates depending on customer usage . estimated unbilled revenue is not included in the wram until it is billed . flat rate customers are billed in advance at the beginning of the service period . the revenue is prorated so that the portion of revenue applicable to the current period is included in that period 's revenue , with the balance recorded as unearned revenue on the balance sheet and recognized as revenue when earned in the subsequent accounting period . our unearned revenue liability was $ 1.3 million as of december 31 , 2015 and was $ 1.5 million as of december 31 , 2014. this liability is included in `` other accrued liabilities `` on our consolidated balance sheets . regulated utility accounting because we operate almost exclusively in a regulated business , we are subject to the accounting standards for regulated utilities . the commissions in the states in which we operate establish rates that are designed to permit the recovery of the cost of service and a return on investment . we capitalize and record regulatory assets for costs that would otherwise be charged to expense if it is probable that the incurred costs will be recovered in future rates . regulatory assets are amortized over the future periods that the costs are expected to be recovered . if costs expected to be incurred in the future are currently being recovered through rates , we record those expected future costs as regulatory liabilities . in addition , we record regulatory liabilities when the commissions require a refund to be made to our customers over future periods . determining probability requires significant judgment by management and includes , but is not limited to , consideration of testimony presented in regulatory hearings , proposed regulatory decisions , final regulatory orders , and the strength or status of applications for rehearing or state court appeals . we also record a regulatory asset when a mechanism is in place to recover current expenditures and historical experience indicates that recovery of incurred costs is probable , such as the regulatory assets for pension benefits ; and deferred income tax . if we determine that a portion of our assets used in utility operations is not recoverable in customer rates , we would be required to recognize the loss of the assets disallowed . income taxes we account for income taxes using the asset and liability method . deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis . we measure deferred tax assets and liabilities at enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled . we recognize the effect on the deferred tax assets and liabilities of a change in tax rate in the period that includes the enactment date . we must also assess the likelihood that deferred tax assets will be recovered in future taxable income and , to the extent recovery is not probable , a valuation allowance would be recorded . story_separator_special_tag a small portion of supply comes from surface sources and is processed through company-owned water treatment plants . to the best of management 's knowledge , we are meeting water quality , environmental , and other regulatory standards for all company-owned systems . 37 california 's normal weather pattern yields little precipitation between mid-spring and mid-fall . the washington water service areas receive precipitation in all seasons , with the heaviest amounts during the winter . new mexico water 's rainfall is heaviest in the summer monsoon season . hawaii water receives precipitation throughout the year , with the largest amounts in the winter months . water usage in all service areas is highest during the warm and dry summers and declines in the cool winter months . rain and snow during the winter months replenish underground water aquifers and fill reservoirs , providing the water supply for subsequent delivery to customers . management believes that supply pumped from underground aquifers and purchased from wholesale suppliers will be adequate to meet customer demand during 2016 and beyond . however , water rationing may be required in future periods , if declared by the state or local jurisdictions . long-term water supply plans are developed for each of our districts to help assure an adequate water supply under various operating and supply conditions . some districts have unique challenges in meeting water quality standards , but management believes that supplies will meet current standards using current treatment processes . story_separator_special_tag style= `` line-height:120 % ; padding-bottom:10px ; padding-top:10px ; text-align : justify ; text-indent:32px ; font-size:10pt ; `` > at the january 2016 meeting , the board of directors declared the quarterly dividend , increasing it for the 49 th consecutive year . the quarterly dividend was raised from $ 0.1675 to $ 0.1725 per common share , or an annual rate of $ 0.69 per common share . dividends have been paid for 70 consecutive years . the annual dividends paid per common share in 2015 , 2014 , and 2013 were $ 0.67 , $ 0.65 , and $ 0.64 , respectively . earnings not paid as dividends are reinvested in the business for the benefit of stockholders . the dividend payout ratio was 71 % in 2015 , 55 % in 2014 and 63 % in 2013 , for an average of 62 % over the 3-year period . our long-term targeted dividend payout ratio is 60 % . short-term financing short-term liquidity is provided by the bank lines of credit described above and by internally generated funds . long-term financing is accomplished through the use of both debt and equity . as of december 31 , 2015 , there were short-term borrowings of $ 33.6 million outstanding on our unsecured revolving line of credit compared to $ 79.1 million outstanding on our original unsecured revolving line of credit as of december 31 , 2014. the decrease during 2015 was mostly due to the sale of first mortgage bonds and use of the net proceeds to repay the balance owed on the cal water line of credit . as of december 31 , 2014 , there were short-term borrowings of $ 79.1 million outstanding on our unsecured revolving line of credit compared to $ 46.8 million outstanding on our original unsecured revolving line of credit as of december 31 , 2013. the increase during 2014 was mostly due to financing of capital expenditures and general corporate purposes . given our ability to access our lines of credit on a daily basis , cash balances are managed to levels required for daily cash needs and excess cash is invested in short-term or cash equivalent instruments . minimal operating levels of cash are maintained for washington water , new mexico water , and hawaii water . the company and subsidiaries which it designates may borrow up to $ 150 million under its short-term credit facility . cal water may borrow up to $ 300 million under its credit facility ; however , all borrowings need to be repaid within 12 months unless otherwise authorized by the cpuc . both short-term credit agreements contain affirmative and negative covenants and events of default customary for credit facilities of this type including , among other things , limitations and prohibitions relating to additional indebtedness , liens , mergers , and asset sales . also , these unsecured credit agreements contain financial covenants governing the company and its subsidiaries ' consolidated total debt ratio not to exceed 66.7 % and interest coverage ratio of three or more . as of december 31 , 2015 , the company 's consolidated total debt ratio was 49.1 % ( trade payable and short term borrowings are included as debt for this calculation ) and the interest ratio was greater than five . in summary , we have met all of the covenant requirements and are eligible to use the full amounts of these credit agreements . 39 on october 13 , 2015 , the cal water sold $ 100.0 million of first mortgage bonds and used the net proceeds of $ 99.3 million to pay down outstanding short-term borrowings , fund capital expenditures , and general corporate purposes . we made principal payments on first mortgage bonds and other long-term debt of $ 7.0 million during 2015. there was $ 0.5 million of new debt added to long-term debt during 2014 , and we made principal payments on first mortgage bonds and other long-term debt of $ 8.7 million during 2014. long-term financing , which includes first mortgage bonds , senior notes , other debt securities , and common stock , has typically been used to replace short-term borrowings and fund capital expenditures . internally generated funds , after making dividend payments , provide positive cash flow , but have not been at a level to meet the needs of our capital expenditure requirements . management expects this trend to continue given our capital expenditures plan for
| liquidity and capital resources cash flow from operations during 2015 , we generated cash flow from operations of $ 144.6 million , compared to $ 128.1 million during 2014. the increase in 2015 was mostly due to interim rates collections of $ 13.8 million as authorized by the cal water 2012 grc decision . during 2014 , we generated cash flow from operations of $ 128.1 million , compared to $ 124.2 million during 2013. the increase during 2014 compared to 2013 was mostly due a $ 6.0 million refund for 2013 calendar year federal and state income tax payments , higher billing rates in 2014 due to the cal water 2012 grc decision , timing of collections from customers , and the timing of liability payments also impacted the increase . the water business is seasonal . billed revenue is lower in the cool , wet winter months when less water is used compared to the warm , dry summer months when water use is highest . this seasonality results in the possible need for short-term borrowings under the bank lines of credit in the event cash is not sufficient to cover operating and capital costs during the winter period . the increase in cash flow during the summer allows short-term borrowings to be paid down . customer water usage can be lower than normal in years when more than normal precipitation falls in our service areas or temperatures are lower than normal , especially in the summer months . the reduction in water usage reduces cash flow from operations and increases the need for short-term bank borrowings . in addition , short-term borrowings are used to finance capital expenditures until long-term financing is arranged . investing activities during 2015 , 2014 and 2013 , we used $ 176.8 million , $ 132.0 million , and $ 123.0 million , respectively , of cash for capital expenditures , both company-funded and developer-funded . the 2015 capital expenditures exceeded the high end of the budgeted capital expenditures of $ 145.0 million .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources cash flow from operations during 2015 , we generated cash flow from operations of $ 144.6 million , compared to $ 128.1 million during 2014. the increase in 2015 was mostly due to interim rates collections of $ 13.8 million as authorized by the cal water 2012 grc decision . during 2014 , we generated cash flow from operations of $ 128.1 million , compared to $ 124.2 million during 2013. the increase during 2014 compared to 2013 was mostly due a $ 6.0 million refund for 2013 calendar year federal and state income tax payments , higher billing rates in 2014 due to the cal water 2012 grc decision , timing of collections from customers , and the timing of liability payments also impacted the increase . the water business is seasonal . billed revenue is lower in the cool , wet winter months when less water is used compared to the warm , dry summer months when water use is highest . this seasonality results in the possible need for short-term borrowings under the bank lines of credit in the event cash is not sufficient to cover operating and capital costs during the winter period . the increase in cash flow during the summer allows short-term borrowings to be paid down . customer water usage can be lower than normal in years when more than normal precipitation falls in our service areas or temperatures are lower than normal , especially in the summer months . the reduction in water usage reduces cash flow from operations and increases the need for short-term bank borrowings . in addition , short-term borrowings are used to finance capital expenditures until long-term financing is arranged . investing activities during 2015 , 2014 and 2013 , we used $ 176.8 million , $ 132.0 million , and $ 123.0 million , respectively , of cash for capital expenditures , both company-funded and developer-funded . the 2015 capital expenditures exceeded the high end of the budgeted capital expenditures of $ 145.0 million .
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Suspicious Activity Report : in addition to volumetric revenues , the revenue requirements approved by the cpuc include service charges , flat rate charges , and other items not subject to the wram . cost-recovery rates are designed to permit full recovery of certain costs allowed to be recovered by the commissions . cost-recovery rates such as the mcba provides for recovery of adopted expense levels for purchased water , purchased power and pump taxes , as established by the cpuc . in addition , cost-recovery rates include recovery of cost related to water conservation programs and certain other operating expenses adopted by the cpuc . variances ( which include the effects of changes in both rate and volume for the mcba ) between adopted and actual costs are recorded as a component of revenue , as the amount of such variances will 31 be recovered from or refunded to our customers at a later date . cost-recovery expenses are generally recognized when the expenses are incurred with no markup for return or profit . the balances in the wram and mcba assets and liabilities accounts will fluctuate on a monthly basis depending upon the variance between adopted and actual results . the recovery or refund of the wram is netted against the mcba over- or under-recovery for the corresponding district and the deferred net balances are interest bearing at the current 90 day commercial paper rate . at the end of the calendar year , cal water files with the cpuc to refund or collect the balance in the accounts . the majority of undercollected net wram and mcba receivable balances are collected over 12 and 18 months . cal water defers any net wram and mcba revenues and associated costs whenever the net receivable balances are estimated to be collected more than 24 months after the respective reporting period in which it was recorded . the deferred net wram and mcba revenue and associated costs were determined using forecasts of customer consumption trends in future reporting periods and the timing of when the cpuc will authorize cal water 's filings to recover unbilled balances . deferred revenues and associated costs are recorded in the periods when the collection is within 24 months of the respective reporting period . customers meter reads occur on various business days throughout the month . as a result , there are unmetered or unbilled customer usage each month . the estimated unbilled revenue for monthly unmetered customer usage is recorded using the number of unbilled days for that month and average daily customer billing rate for the previous month . the average daily customer billing rate for the previous month fluctuates depending on customer usage . estimated unbilled revenue is not included in the wram until it is billed . flat rate customers are billed in advance at the beginning of the service period . the revenue is prorated so that the portion of revenue applicable to the current period is included in that period 's revenue , with the balance recorded as unearned revenue on the balance sheet and recognized as revenue when earned in the subsequent accounting period . our unearned revenue liability was $ 1.3 million as of december 31 , 2015 and was $ 1.5 million as of december 31 , 2014. this liability is included in `` other accrued liabilities `` on our consolidated balance sheets . regulated utility accounting because we operate almost exclusively in a regulated business , we are subject to the accounting standards for regulated utilities . the commissions in the states in which we operate establish rates that are designed to permit the recovery of the cost of service and a return on investment . we capitalize and record regulatory assets for costs that would otherwise be charged to expense if it is probable that the incurred costs will be recovered in future rates . regulatory assets are amortized over the future periods that the costs are expected to be recovered . if costs expected to be incurred in the future are currently being recovered through rates , we record those expected future costs as regulatory liabilities . in addition , we record regulatory liabilities when the commissions require a refund to be made to our customers over future periods . determining probability requires significant judgment by management and includes , but is not limited to , consideration of testimony presented in regulatory hearings , proposed regulatory decisions , final regulatory orders , and the strength or status of applications for rehearing or state court appeals . we also record a regulatory asset when a mechanism is in place to recover current expenditures and historical experience indicates that recovery of incurred costs is probable , such as the regulatory assets for pension benefits ; and deferred income tax . if we determine that a portion of our assets used in utility operations is not recoverable in customer rates , we would be required to recognize the loss of the assets disallowed . income taxes we account for income taxes using the asset and liability method . deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis . we measure deferred tax assets and liabilities at enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled . we recognize the effect on the deferred tax assets and liabilities of a change in tax rate in the period that includes the enactment date . we must also assess the likelihood that deferred tax assets will be recovered in future taxable income and , to the extent recovery is not probable , a valuation allowance would be recorded . story_separator_special_tag a small portion of supply comes from surface sources and is processed through company-owned water treatment plants . to the best of management 's knowledge , we are meeting water quality , environmental , and other regulatory standards for all company-owned systems . 37 california 's normal weather pattern yields little precipitation between mid-spring and mid-fall . the washington water service areas receive precipitation in all seasons , with the heaviest amounts during the winter . new mexico water 's rainfall is heaviest in the summer monsoon season . hawaii water receives precipitation throughout the year , with the largest amounts in the winter months . water usage in all service areas is highest during the warm and dry summers and declines in the cool winter months . rain and snow during the winter months replenish underground water aquifers and fill reservoirs , providing the water supply for subsequent delivery to customers . management believes that supply pumped from underground aquifers and purchased from wholesale suppliers will be adequate to meet customer demand during 2016 and beyond . however , water rationing may be required in future periods , if declared by the state or local jurisdictions . long-term water supply plans are developed for each of our districts to help assure an adequate water supply under various operating and supply conditions . some districts have unique challenges in meeting water quality standards , but management believes that supplies will meet current standards using current treatment processes . story_separator_special_tag style= `` line-height:120 % ; padding-bottom:10px ; padding-top:10px ; text-align : justify ; text-indent:32px ; font-size:10pt ; `` > at the january 2016 meeting , the board of directors declared the quarterly dividend , increasing it for the 49 th consecutive year . the quarterly dividend was raised from $ 0.1675 to $ 0.1725 per common share , or an annual rate of $ 0.69 per common share . dividends have been paid for 70 consecutive years . the annual dividends paid per common share in 2015 , 2014 , and 2013 were $ 0.67 , $ 0.65 , and $ 0.64 , respectively . earnings not paid as dividends are reinvested in the business for the benefit of stockholders . the dividend payout ratio was 71 % in 2015 , 55 % in 2014 and 63 % in 2013 , for an average of 62 % over the 3-year period . our long-term targeted dividend payout ratio is 60 % . short-term financing short-term liquidity is provided by the bank lines of credit described above and by internally generated funds . long-term financing is accomplished through the use of both debt and equity . as of december 31 , 2015 , there were short-term borrowings of $ 33.6 million outstanding on our unsecured revolving line of credit compared to $ 79.1 million outstanding on our original unsecured revolving line of credit as of december 31 , 2014. the decrease during 2015 was mostly due to the sale of first mortgage bonds and use of the net proceeds to repay the balance owed on the cal water line of credit . as of december 31 , 2014 , there were short-term borrowings of $ 79.1 million outstanding on our unsecured revolving line of credit compared to $ 46.8 million outstanding on our original unsecured revolving line of credit as of december 31 , 2013. the increase during 2014 was mostly due to financing of capital expenditures and general corporate purposes . given our ability to access our lines of credit on a daily basis , cash balances are managed to levels required for daily cash needs and excess cash is invested in short-term or cash equivalent instruments . minimal operating levels of cash are maintained for washington water , new mexico water , and hawaii water . the company and subsidiaries which it designates may borrow up to $ 150 million under its short-term credit facility . cal water may borrow up to $ 300 million under its credit facility ; however , all borrowings need to be repaid within 12 months unless otherwise authorized by the cpuc . both short-term credit agreements contain affirmative and negative covenants and events of default customary for credit facilities of this type including , among other things , limitations and prohibitions relating to additional indebtedness , liens , mergers , and asset sales . also , these unsecured credit agreements contain financial covenants governing the company and its subsidiaries ' consolidated total debt ratio not to exceed 66.7 % and interest coverage ratio of three or more . as of december 31 , 2015 , the company 's consolidated total debt ratio was 49.1 % ( trade payable and short term borrowings are included as debt for this calculation ) and the interest ratio was greater than five . in summary , we have met all of the covenant requirements and are eligible to use the full amounts of these credit agreements . 39 on october 13 , 2015 , the cal water sold $ 100.0 million of first mortgage bonds and used the net proceeds of $ 99.3 million to pay down outstanding short-term borrowings , fund capital expenditures , and general corporate purposes . we made principal payments on first mortgage bonds and other long-term debt of $ 7.0 million during 2015. there was $ 0.5 million of new debt added to long-term debt during 2014 , and we made principal payments on first mortgage bonds and other long-term debt of $ 8.7 million during 2014. long-term financing , which includes first mortgage bonds , senior notes , other debt securities , and common stock , has typically been used to replace short-term borrowings and fund capital expenditures . internally generated funds , after making dividend payments , provide positive cash flow , but have not been at a level to meet the needs of our capital expenditure requirements . management expects this trend to continue given our capital expenditures plan for
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2,581 | the company is no longer limited in its ability to conduct business in the state of california . for the year ended june 30 , 2007 , sales in california represented approximately 12 % of our total revenue . for the years ended june 30 , 2009 and 2008 , we had an insignificant amount of sales in california . launch of crexendo business solutions division in march 2009 , we launched our crexendo business solutions division with a focus on providing customized website design , hosting , search engine optimization and search engine management services to the small , medium , and large enterprises . unlike our storesonline division , which utilizes a two-step training event go to market strategy , crexendo business solutions ' go-to market 21 strategy utilizes a network of value added resellers ( ยvarsย ) along with inside telephone sales reps to reach our target market . as of june 30 , 2009 , we have reseller agreements with 10 vars . no revenue was generated from our crexendo business solutions division for the year ended june 30 , 2009. launch of crexendo network services in february 2009 , we launched our crexendo network services division with a focus on providing hosted telecom solutions to the small , medium , and large enterprises . crexendo network services is in the development phase with an anticipated product launch in calendar 2010. crexendo network services will be marketed through both our crexendo business solutions and storesonline divisions . no revenue was generated from our crexendo network services division for the year ended june 30 , 2009. reduction in staff in december 2007 , we reduced the number of workshop teams from nine to six and reduced our total employee base by 20 % in an effort to streamline the launch of storesonline express , visit targeted markets less frequently to cultivate greater demand , and reduce overall company expenses . in january 2009 , we reduced the number of workshop teams from six to four and reduced our total employee base by 20 % in response to current market conditions and our increased focus on the small to medium enterprise market . critical accounting policies and estimates our consolidated financial statements have been prepared in accordance with us gaap and form the basis for the following discussion and analysis on critical accounting policies and estimates . the preparation of these financial statements requires estimates and assumptions that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . on a regular basis we evaluate our estimates and assumptions . estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances , which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . management has discussed the development , selection and disclosure of these estimates with the board of directors and its audit committee . a summary of our significant accounting policies is provided in note 2 to our consolidated financial statements . we believe the critical accounting policies and estimates described below reflect our more significant estimates and assumptions used in the preparation of our consolidated financial statements . the impact and any associated risks on our business that are related to these policies are also discussed throughout this ยmanagement 's discussion and analysis of financial condition and results of operationsย where such policies affect reported and expected financial results . revenue recognition the company sells licenses to customers to use the company 's storesonline software ( sos ) . the sos is a web-based software product that enables customers to develop internet websites for commerce without requiring additional assistance from the company , if the customers desire . when customers purchase an sos license at one of the company 's internet preview seminars or workshops , they receive a license , site key , password , and instructions which allow immediate access to the company 's website and servers where all of the necessary software programs and tools are located to be downloaded or to complete the construction of their websites on the company 's servers . additionally , the company provides website setup services and customer support for incremental fees . when customers complete their websites , those websites can be hosted with the company or any other provider of such services at the customers ' option . if the customers choose to host with the company , the company will host the websites for an additional fee . customers have the option to create their websites completely on their own without access to the company website and the option to host their websites with another hosting service . the company also sells website design services , search engine optimization and search engine management services through the crexendo business solutions platform . revenue for these services is recognized , net of expected refunds , when persuasive evidence of an arrangement exists , work has been completed , the fee is fixed or determinable , and collectability is probable . product and other revenue cash sales of sos licenses are recognized as revenue , net of expected customer refunds , upon expiration of the customers ' rescission period , which typically occurs three days after the licenses and products are delivered or when the internet training workshop takes place , whichever occurs later . fees for sos licenses sold under extended payment term arrangements ( eptas ) are recognized as revenue upon receipt of cash from customers and not at the time of sale . story_separator_special_tag trends in cost of product and other revenue will not always be consistent with the trends in revenue due to the fact that cost of product and other revenue is typically recognized at the time of sale and no later than the expiration of the customers ' three-day cancellation period , but the related revenue is often deferred in accordance with sop 97-2. selling and marketing selling and marketing expenses consist of payroll and related expenses for sales and marketing activities , advertising , and promotional and public relations expenses . selling and marketing expenses for fiscal 2008 increased 18 % to $ 69,787,000 from $ 66,744,000 for fiscal 2007. the increase in selling and marketing expenses is primarily attributable to lower response rates to our selling and marketing activities due to negative economic conditions as well as negative media reports about the company . additionally , salaries and wages increased over fiscal 2007 despite a decrease in sales due to larger preview sales teams as a result of the implementation of storesonline express during the third quarter of fiscal 2008. increases in postage on the company 's direct mail materials also caused an increase in advertising expense . selling and marketing expenses were also negatively impacted by increased travel costs associated with higher fuel prices . trends in selling and marketing expenses will not always be consistent with the trends in revenues due to the fact that selling and marketing expenses are typically recognized when incurred , at the time of sale , and no later than the expiration of the customers ' three-day cancellation period , but the related revenues are often deferred in accordance with sop 97-2 . 26 general and administrative general and administrative expenses consist of payroll and related expenses for executive , accounting and administrative personnel ; legal , accounting and other professional fees , finance company service fees , and other general corporate expenses . general and administrative expenses in fiscal 2008 increased 18 % to $ 18,210,000 from $ 15,480,000 in fiscal 2007. the increase in general and administrative expenses during fiscal 2008 is primarily attributable to an increase in legal fees of $ 900,000 associated with various legal actions and an increase in financial servicing fees of $ 1,119,000 as a result of higher collections of accounts receivable . the balance of the increase in general and administrative expenses is the result of the general increase in costs for items such as insurance , rent , telephone , office supplies and other expenses . interest income interest income is primarily derived from the epta contracts , which generally carry an 18 % simple interest rate . interest income for fiscal 2008 increased 25 % to $ 8,858,000 compared to $ 7,079,000 for fiscal 2007. the increase is attributable to the increase in the collections of trade receivables . income tax provision during fiscal 2008 , we recorded an income tax provision of $ 3,039,000 compared to $ 2,686,000 during fiscal 2007. income taxes are based on the estimated annual effective federal , state and foreign income tax rates . the income tax provision recorded in fiscal 2008 is higher than federal , state , and foreign statutory rates as a result of changes in estimates of state net operating loss apportionments and as a result of stock-based compensation expense for incentive stock options which is not deductible for income tax purposes . in december 2005 , we determined that it was more-likely-than-not that $ 11,877,000 of our net deferred income tax assets would be realized . due to our increased taxable earnings projections and discrete event developments in the resolution of certain contingencies during fiscal 2007 , we determined that it was more-likely-than-not that our remaining deferred income tax assets of $ 7,746,000 would be realized . the benefit resulting from the removal of the corresponding valuation allowance was offset by an income tax provision of $ 10,432,000 , resulting in a net income tax provision of $ 2,686,000 during fiscal 2007. liquidity and capital resources as of june 30 , 2009 , we had working capital of $ 16,337,000 compared to working capital of $ 20,558,000 as of june 30 , 2008. as of june 30 , 2009 , we had working capital , excluding deferred revenue , of $ 39,964,000 compared to $ 53,417,000 as of june 30 , 2008. deferred revenue balances represent historical sales for which the company can not immediately recognize revenue . the costs and expenses we incur as these deferred revenue amounts are recognized as product and other revenues are expected to be insignificant . consequently , we do not consider deferred revenue to be a factor that impacts our liquidity or future cash requirements . story_separator_special_tag style= `` margin-top:7.8px ; margin-bottom:7.8px ; text-indent:48px `` > recent accounting pronouncements not yet adopted in february 2008 , fasb staff position 157-2 , effective date of fasb statement no . 157 , was issued which delays the effective date of sfas no . 157 to july 1 , 2009 for the company , for all nonfinancial assets and nonfinancial liabilities , except for items that are recognized or disclosed at fair value in the financial statements on a recurring basis ( at least annually ) . the company believes the adoption of the delayed items of sfas no . 157 will not have a material impact on the consolidated financial statements . in december 2007 , sfas no . 141r , business combinations , was issued which replaces sfas no . 141. sfas no . 141r retains the purchase method of accounting for acquisitions , but requires a number of changes , including changes in the way assets and liabilities are recognized in the purchase accounting . it also changes the recognition of assets acquired and liabilities assumed arising from contingencies , requires the capitalization of in-process research and development at fair value , and requires the expensing of acquisition-related costs as incurred . sfas no
| cash and cash equivalents as of june 30 , 2009 , we had $ 20,474,000 of cash and cash equivalents compared to $ 26,184,000 as of june 30 , 2008. during fiscal 2009 we used $ 6,985,000 in cash for operating activities . during fiscal 2008 and 2007 , we generated positive cash flows from operating activities of $ 10,361,000 , and $ 22,554,000 , respectively . available-for-sale securities as of june 30 , 2009 , we held no available-for-sale securities compared to $ 3,800,000 as of june 30 , 2008. available-for-sale securities consisted primarily of auction rate securities ( ยarsย ) . these were long-term variable rate bonds tied to short-term interest rates that reset through a ยdutch auctionย process , historically occurring every 7 to 35 days , and other variable rate debt and equity securities , which were held by merrill lynch . in january 2009 , we liquidated all of our ars at par value . trade receivables trade receivables and long-term trade receivables , net of allowance for doubtful accounts , totaled $ 30,756,000 as of june 30 , 2009 , compared to $ 38,568,000 as of june 30 , 2008. long-term trade receivables , net of allowance for doubtful accounts , were $ 9,985,000 as of june 30 , 2009 compared to $ 9,845,000 as of june 30 , 2008. we offer our customers a 24-month installment contract as one of several payment options . the payments that become due more than 12 months after the end of the fiscal period are classified as long-term trade receivables . we have sold some of our domestic trade receivables in the past . in the future , we may evaluate agreements with third-party financing companies for the sale of our international and domestic trade receivables . accounts payable accounts payable as of june 30 , 2009 totaled $ 2,266,000 , compared to $ 4,760,000 as of june 30 , 2008. the aging of accounts payable as of june 30 , 2009 and 2008 was generally within our vendors ' terms of payment .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash and cash equivalents as of june 30 , 2009 , we had $ 20,474,000 of cash and cash equivalents compared to $ 26,184,000 as of june 30 , 2008. during fiscal 2009 we used $ 6,985,000 in cash for operating activities . during fiscal 2008 and 2007 , we generated positive cash flows from operating activities of $ 10,361,000 , and $ 22,554,000 , respectively . available-for-sale securities as of june 30 , 2009 , we held no available-for-sale securities compared to $ 3,800,000 as of june 30 , 2008. available-for-sale securities consisted primarily of auction rate securities ( ยarsย ) . these were long-term variable rate bonds tied to short-term interest rates that reset through a ยdutch auctionย process , historically occurring every 7 to 35 days , and other variable rate debt and equity securities , which were held by merrill lynch . in january 2009 , we liquidated all of our ars at par value . trade receivables trade receivables and long-term trade receivables , net of allowance for doubtful accounts , totaled $ 30,756,000 as of june 30 , 2009 , compared to $ 38,568,000 as of june 30 , 2008. long-term trade receivables , net of allowance for doubtful accounts , were $ 9,985,000 as of june 30 , 2009 compared to $ 9,845,000 as of june 30 , 2008. we offer our customers a 24-month installment contract as one of several payment options . the payments that become due more than 12 months after the end of the fiscal period are classified as long-term trade receivables . we have sold some of our domestic trade receivables in the past . in the future , we may evaluate agreements with third-party financing companies for the sale of our international and domestic trade receivables . accounts payable accounts payable as of june 30 , 2009 totaled $ 2,266,000 , compared to $ 4,760,000 as of june 30 , 2008. the aging of accounts payable as of june 30 , 2009 and 2008 was generally within our vendors ' terms of payment .
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Suspicious Activity Report : the company is no longer limited in its ability to conduct business in the state of california . for the year ended june 30 , 2007 , sales in california represented approximately 12 % of our total revenue . for the years ended june 30 , 2009 and 2008 , we had an insignificant amount of sales in california . launch of crexendo business solutions division in march 2009 , we launched our crexendo business solutions division with a focus on providing customized website design , hosting , search engine optimization and search engine management services to the small , medium , and large enterprises . unlike our storesonline division , which utilizes a two-step training event go to market strategy , crexendo business solutions ' go-to market 21 strategy utilizes a network of value added resellers ( ยvarsย ) along with inside telephone sales reps to reach our target market . as of june 30 , 2009 , we have reseller agreements with 10 vars . no revenue was generated from our crexendo business solutions division for the year ended june 30 , 2009. launch of crexendo network services in february 2009 , we launched our crexendo network services division with a focus on providing hosted telecom solutions to the small , medium , and large enterprises . crexendo network services is in the development phase with an anticipated product launch in calendar 2010. crexendo network services will be marketed through both our crexendo business solutions and storesonline divisions . no revenue was generated from our crexendo network services division for the year ended june 30 , 2009. reduction in staff in december 2007 , we reduced the number of workshop teams from nine to six and reduced our total employee base by 20 % in an effort to streamline the launch of storesonline express , visit targeted markets less frequently to cultivate greater demand , and reduce overall company expenses . in january 2009 , we reduced the number of workshop teams from six to four and reduced our total employee base by 20 % in response to current market conditions and our increased focus on the small to medium enterprise market . critical accounting policies and estimates our consolidated financial statements have been prepared in accordance with us gaap and form the basis for the following discussion and analysis on critical accounting policies and estimates . the preparation of these financial statements requires estimates and assumptions that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . on a regular basis we evaluate our estimates and assumptions . estimates are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances , which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results may differ from these estimates under different assumptions or conditions . management has discussed the development , selection and disclosure of these estimates with the board of directors and its audit committee . a summary of our significant accounting policies is provided in note 2 to our consolidated financial statements . we believe the critical accounting policies and estimates described below reflect our more significant estimates and assumptions used in the preparation of our consolidated financial statements . the impact and any associated risks on our business that are related to these policies are also discussed throughout this ยmanagement 's discussion and analysis of financial condition and results of operationsย where such policies affect reported and expected financial results . revenue recognition the company sells licenses to customers to use the company 's storesonline software ( sos ) . the sos is a web-based software product that enables customers to develop internet websites for commerce without requiring additional assistance from the company , if the customers desire . when customers purchase an sos license at one of the company 's internet preview seminars or workshops , they receive a license , site key , password , and instructions which allow immediate access to the company 's website and servers where all of the necessary software programs and tools are located to be downloaded or to complete the construction of their websites on the company 's servers . additionally , the company provides website setup services and customer support for incremental fees . when customers complete their websites , those websites can be hosted with the company or any other provider of such services at the customers ' option . if the customers choose to host with the company , the company will host the websites for an additional fee . customers have the option to create their websites completely on their own without access to the company website and the option to host their websites with another hosting service . the company also sells website design services , search engine optimization and search engine management services through the crexendo business solutions platform . revenue for these services is recognized , net of expected refunds , when persuasive evidence of an arrangement exists , work has been completed , the fee is fixed or determinable , and collectability is probable . product and other revenue cash sales of sos licenses are recognized as revenue , net of expected customer refunds , upon expiration of the customers ' rescission period , which typically occurs three days after the licenses and products are delivered or when the internet training workshop takes place , whichever occurs later . fees for sos licenses sold under extended payment term arrangements ( eptas ) are recognized as revenue upon receipt of cash from customers and not at the time of sale . story_separator_special_tag trends in cost of product and other revenue will not always be consistent with the trends in revenue due to the fact that cost of product and other revenue is typically recognized at the time of sale and no later than the expiration of the customers ' three-day cancellation period , but the related revenue is often deferred in accordance with sop 97-2. selling and marketing selling and marketing expenses consist of payroll and related expenses for sales and marketing activities , advertising , and promotional and public relations expenses . selling and marketing expenses for fiscal 2008 increased 18 % to $ 69,787,000 from $ 66,744,000 for fiscal 2007. the increase in selling and marketing expenses is primarily attributable to lower response rates to our selling and marketing activities due to negative economic conditions as well as negative media reports about the company . additionally , salaries and wages increased over fiscal 2007 despite a decrease in sales due to larger preview sales teams as a result of the implementation of storesonline express during the third quarter of fiscal 2008. increases in postage on the company 's direct mail materials also caused an increase in advertising expense . selling and marketing expenses were also negatively impacted by increased travel costs associated with higher fuel prices . trends in selling and marketing expenses will not always be consistent with the trends in revenues due to the fact that selling and marketing expenses are typically recognized when incurred , at the time of sale , and no later than the expiration of the customers ' three-day cancellation period , but the related revenues are often deferred in accordance with sop 97-2 . 26 general and administrative general and administrative expenses consist of payroll and related expenses for executive , accounting and administrative personnel ; legal , accounting and other professional fees , finance company service fees , and other general corporate expenses . general and administrative expenses in fiscal 2008 increased 18 % to $ 18,210,000 from $ 15,480,000 in fiscal 2007. the increase in general and administrative expenses during fiscal 2008 is primarily attributable to an increase in legal fees of $ 900,000 associated with various legal actions and an increase in financial servicing fees of $ 1,119,000 as a result of higher collections of accounts receivable . the balance of the increase in general and administrative expenses is the result of the general increase in costs for items such as insurance , rent , telephone , office supplies and other expenses . interest income interest income is primarily derived from the epta contracts , which generally carry an 18 % simple interest rate . interest income for fiscal 2008 increased 25 % to $ 8,858,000 compared to $ 7,079,000 for fiscal 2007. the increase is attributable to the increase in the collections of trade receivables . income tax provision during fiscal 2008 , we recorded an income tax provision of $ 3,039,000 compared to $ 2,686,000 during fiscal 2007. income taxes are based on the estimated annual effective federal , state and foreign income tax rates . the income tax provision recorded in fiscal 2008 is higher than federal , state , and foreign statutory rates as a result of changes in estimates of state net operating loss apportionments and as a result of stock-based compensation expense for incentive stock options which is not deductible for income tax purposes . in december 2005 , we determined that it was more-likely-than-not that $ 11,877,000 of our net deferred income tax assets would be realized . due to our increased taxable earnings projections and discrete event developments in the resolution of certain contingencies during fiscal 2007 , we determined that it was more-likely-than-not that our remaining deferred income tax assets of $ 7,746,000 would be realized . the benefit resulting from the removal of the corresponding valuation allowance was offset by an income tax provision of $ 10,432,000 , resulting in a net income tax provision of $ 2,686,000 during fiscal 2007. liquidity and capital resources as of june 30 , 2009 , we had working capital of $ 16,337,000 compared to working capital of $ 20,558,000 as of june 30 , 2008. as of june 30 , 2009 , we had working capital , excluding deferred revenue , of $ 39,964,000 compared to $ 53,417,000 as of june 30 , 2008. deferred revenue balances represent historical sales for which the company can not immediately recognize revenue . the costs and expenses we incur as these deferred revenue amounts are recognized as product and other revenues are expected to be insignificant . consequently , we do not consider deferred revenue to be a factor that impacts our liquidity or future cash requirements . story_separator_special_tag style= `` margin-top:7.8px ; margin-bottom:7.8px ; text-indent:48px `` > recent accounting pronouncements not yet adopted in february 2008 , fasb staff position 157-2 , effective date of fasb statement no . 157 , was issued which delays the effective date of sfas no . 157 to july 1 , 2009 for the company , for all nonfinancial assets and nonfinancial liabilities , except for items that are recognized or disclosed at fair value in the financial statements on a recurring basis ( at least annually ) . the company believes the adoption of the delayed items of sfas no . 157 will not have a material impact on the consolidated financial statements . in december 2007 , sfas no . 141r , business combinations , was issued which replaces sfas no . 141. sfas no . 141r retains the purchase method of accounting for acquisitions , but requires a number of changes , including changes in the way assets and liabilities are recognized in the purchase accounting . it also changes the recognition of assets acquired and liabilities assumed arising from contingencies , requires the capitalization of in-process research and development at fair value , and requires the expensing of acquisition-related costs as incurred . sfas no
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2,582 | million after deducting offering expenses . the notes are senior unsecured obligations and bear interest at a rate of 2.5 % per year , payable semi-annually in arrears on march 15 and december 15 of each year , beginning march 15 , 2015. the notes will mature on september 15 , 2021 , unless earlier converted , redeemed or repurchased . product license agreements rociletinib in may 2010 , we entered into an exclusive worldwide license agreement with avila therapeutics , inc. ( now celgene avilomics research inc. , part of celgene corporation ( โ celgene โ ) ) to discover , develop and commercialize a covalent inhibitor of mutant forms of the egfr gene product . as a result of the collaboration contemplated by the agreement , rociletinib was identified as the lead inhibitor candidate , which we are developing under the terms of the license agreement . 46 under the agreement , we are required to use commercially reasonable efforts to develop and commercialize rociletinib , and we are responsible for all preclinical , clinical , regulatory and other activities necessary to develop and commercialize rociletinib . we made an up-front payment of $ 2.0 million upon execution of the license agreement , a $ 4.0 million milestone payment in the first quarter of 2012 upon the acceptance by the u.s. food and drug administration ( โ fda โ ) of our investigational new drug ( โ ind โ ) application for rociletinib and a $ 5.0 million milestone payment in the first quarter of 2014 upon the initiation of the phase ii study for rociletinib . we recognized all payments as acquired in-process research and development expense . when and if commercial sales of rociletinib commence , we will pay celgene tiered royalties at percentage rates ranging from mid-single digits to low teens based on annual net sales achieved . we are required to pay up to an additional aggregate of $ 110.0 million in regulatory milestone payments if certain clinical study objectives and regulatory filings , acceptances and approvals are achieved . in addition , we are required to pay up to an aggregate of $ 120.0 million in sales milestone payments if certain annual sales targets are achieved , the majority of which relate to annual sales targets of $ 500.0 million and above . in january 2013 , the company entered into an exclusive license agreement with gatekeeper pharmaceuticals , inc. ( โ gatekeeper โ ) to acquire exclusive rights under patent applications associated with mutant egfr inhibitors and methods of treatment . pursuant to the terms of the license agreement , the company made an up-front payment of $ 250 thousand upon execution of the agreement , which was recognized as acquired in-process research and development expense . if rociletinib is approved for commercial sale , the company will pay royalties to gatekeeper on future net sales . rucaparib in june 2011 , we entered into a license agreement with pfizer inc. to obtain the exclusive global rights to develop and commercialize rucaparib . the exclusive rights are exclusive even as to pfizer and include the right to grant sublicenses . under the terms of the license agreement , we made a $ 7.0 million up-front payment to pfizer . in april 2014 , the company initiated a pivotal registration study for rucaparib , which resulted in a $ 0.4 million milestone payment to pfizer as required by the license agreement . this payment was recognized as acquired in-process research and development expense . we are obligated under the license agreement to use commercially reasonable efforts to develop and commercialize rucaparib , and we are responsible for all remaining development and commercialization costs for rucaparib . when and if commercial sales of rucaparib begin , we will pay pfizer tiered royalties at a mid-teen percentage rate on our net sales , with standard provisions for royalty offsets to the extent we need to obtain any rights from third parties to commercialize rucaparib . we are required to make regulatory milestone payments to pfizer of up to an additional $ 88.5 million if specified clinical study objectives and regulatory filings , acceptances and approvals are achieved . in addition , we are obligated to make sales milestone payments to pfizer if specified annual sales targets for rucaparib are met , the majority of which relate to annual sales targets of $ 500.0 million and above , which , in the aggregate , could amount to total milestone payments of $ 170.0 million . in april 2012 , the company entered into a license agreement with astrazeneca uk limited to acquire exclusive rights associated with rucaparib under a family of patents and patent applications that claim methods of treating patients with parp inhibitors in certain indications . the license enables the development and commercialization of rucaparib for the uses claimed by these patents . pursuant to the terms of the license agreement , the company made an up-front payment of $ 250 thousand upon execution of the agreement , which was recognized as acquired in-process research and development expense . the company may be required to pay up to an aggregate of $ 0.7 million in milestone payments if certain regulatory filings , acceptances and approvals are achieved . if approved , astrazeneca will also receive royalties on any net sales of rucaparib . lucitanib on november 19 , 2013 , the company acquired all of the issued and outstanding capital stock of eos and gained rights to develop and commercialize lucitanib , an oral , selective tyrosine kinase inhibitor . as further described below , eos licensed the worldwide rights , excluding china , to develop and commercialize lucitanib from advenchen laboratories llc ( โ advenchen โ ) . story_separator_special_tag the assumptions related to determining the value of contingent consideration include significant judgment and changes to the assumptions may have a material impact on the amount of accretion of contingent purchase consideration expense recorded in any given period . the acquisition of eos in november 2013 resulted in the recognition of a contingent consideration liability , based on assumptions related to potential future payout amounts , estimated discount rate , probability of success for each milestone achievement and the estimated timing of the milestone payments to the former eos shareholders . intangible assets intangible acquired in-process research and development ( โ ipr & d โ ) assets were established as part of the purchase accounting of eos and are not amortized . amortization of these assets will commence when the useful lives of the intangible assets have been determined . ipr & d intangible assets are evaluated for impairment at least annually or more frequently if impairment indicators exist and any reduction in fair value would be recognized as an expense on the consolidated statements of operations . revenue recognition revenue is recognized from milestone payments when the following criteria have been met : ( 1 ) persuasive evidence of an arrangement exists ; ( 2 ) delivery has occurred or services have been rendered ; ( 3 ) the price is fixed or determinable ; and collectability is reasonably assured . we exercise judgment in determining that collectability is reasonable assured or that services have been delivered in accordance with the arrangement . we assess whether the fee is fixed or determinable based on the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment . we assess collectability based primarily on the customer 's payment history and creditworthiness of the customer . payments that are contingent upon the achievement of a milestone will be recognized in the period in which the milestone is achieved . results of operations comparison of years ended december 31 , 2014 , 2013 and 2012 : license and milestone revenue . license and milestone revenue for the year ended december 31 , 2014 was due to the recognition of $ 13.6 million of milestone revenue from servier upon the end of opposition and appeal of the lucitanib patent by the european patent office in the first quarter of 2014. we did not recognize any revenue in 2013 and 2012. research and development expenses . research and development expenses for the years ended december 31 , 2014 , 2013 and 2012 were as follows : replace_table_token_6_th the increase in research and development expenses for the year ended december 31 , 2014 compared to 2013 was primarily due to expanded development activities for the rociletinib and rucaparib programs . costs associated with clinical and nonclinical development activities for rociletinib were $ 29.4 million higher than 2013 driven by higher enrollment in the ongoing phase i/ii study in nsclc , as well as the initiation of the tiger-1 , tiger-2 and japanese phase i studies in 2014. clinical trial costs for rucaparib were $ 11.8 million higher than the prior year primarily due to the initiation of the ariel2 and ariel3 studies in ovarian cancer . our development costs for rucaparib were also $ 3.4 million higher than 2013 due to the expansion of our collaboration with foundation medicine , inc. to incorporate a coordinated regulatory strategy for the development of a novel companion diagnostic test . clinical supply and related manufacturing development costs for both programs were $ 13.8 million higher than 2013 , as we increased production to support expanded clinical studies . in addition , salaries , share-based compensation expense and other personnel related costs were $ 13.2 million higher in 2014 driven by higher headcount to support our expanded development activities . these increases were partially offset by $ 4.4 million lower costs due to the termination of the ckit program in late 2013 . 52 research and development activities for rucaparib increased by $ 15.7 million in 2013 over 2012 primarily due to the initiation of the ariel2 and ariel3 clinical trials ( increase of $ 7.0 million ) and increased manufacturing of clinical drug supply to support all of the rucaparib clinical trials ( increase of $ 7.7 million ) . research and development activities for rociletinib increased by $ 9.3 million in 2013 over 2012. costs for the ongoing phase i/ii clinical trial for rociletinib increased by $ 1.9 million due to a larger number of patients enrolled in this study in 2013. in addition , we completed a clinical study related to a new formulation of rociletinib in 2013 , which increased clinical trial costs by $ 1.3 million . finally , the development of an improved formulation of rociletinib and increased manufacturing of drug supply to support the rociletinib clinical trials resulted in an increase of $ 6.1 million in research and development expenses . in 2013 , we performed a full year of drug discovery activities for ckit resulting in an increase of $ 2.3 million over 2012 for which costs commenced in the third quarter of 2012. salaries , share-based compensation expense and other personnel related costs for employees working on our research and development programs increased by $ 3.6 million during 2013 , as we increased headcount to support our expanded development activities . these increases in research and development expenses were partially offset by a $ 23.2 million decline in co-101 related expenses due to the termination of this program in late 2012. general and administrative expenses . general and administrative expenses for the years ended december 31 , 2014 , 2013 and 2012 were as follows : replace_table_token_7_th the increase in general and administrative expenses for the year ended december 31 , 2014 over 2013 was primarily attributable to $ 4.8 million higher share-based compensation expense . the increase in general and administrative expenses for the year ended december 31 , 2013 over 2012 was
| liquidity and capital resources we have funded our operations through the private placement of preferred stock and convertible debt securities and the public offering of our common stock . as of december 31 , 2014 , we have received $ 278.3 million in net proceeds from the issuance of convertible senior notes , $ 75.5 million in net proceeds from the issuance of convertible preferred stock , $ 27.9 million through the issuance of convertible promissory notes , $ 458.4 million in net proceeds from the issuance of common stock and $ 4.4 million in proceeds from employee stock option exercises and stock purchases under our employee stock purchase plan . as of december 31 , 2014 , we had cash and cash equivalents totaling $ 482.7 million . the following table sets forth the primary sources and uses of cash for each of the periods set forth below : replace_table_token_10_th operating activities net cash used in operating activities for all periods resulted primarily from our net losses adjusted for non-cash charges and changes in components of working capital . net cash used in operating activities increased $ 45.3 million for the year ended december 31 , 2014 compared to 2013 driven by higher rociletinib and rucaparib research and development costs associated with the expansion of clinical trials , drug formulation and manufacturing costs and higher salaries , benefits and personnel-related costs resulting from higher headcount to support the expanded development activities of our product candidates , partially offset by the milestone revenue payment received from servier .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources we have funded our operations through the private placement of preferred stock and convertible debt securities and the public offering of our common stock . as of december 31 , 2014 , we have received $ 278.3 million in net proceeds from the issuance of convertible senior notes , $ 75.5 million in net proceeds from the issuance of convertible preferred stock , $ 27.9 million through the issuance of convertible promissory notes , $ 458.4 million in net proceeds from the issuance of common stock and $ 4.4 million in proceeds from employee stock option exercises and stock purchases under our employee stock purchase plan . as of december 31 , 2014 , we had cash and cash equivalents totaling $ 482.7 million . the following table sets forth the primary sources and uses of cash for each of the periods set forth below : replace_table_token_10_th operating activities net cash used in operating activities for all periods resulted primarily from our net losses adjusted for non-cash charges and changes in components of working capital . net cash used in operating activities increased $ 45.3 million for the year ended december 31 , 2014 compared to 2013 driven by higher rociletinib and rucaparib research and development costs associated with the expansion of clinical trials , drug formulation and manufacturing costs and higher salaries , benefits and personnel-related costs resulting from higher headcount to support the expanded development activities of our product candidates , partially offset by the milestone revenue payment received from servier .
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Suspicious Activity Report : million after deducting offering expenses . the notes are senior unsecured obligations and bear interest at a rate of 2.5 % per year , payable semi-annually in arrears on march 15 and december 15 of each year , beginning march 15 , 2015. the notes will mature on september 15 , 2021 , unless earlier converted , redeemed or repurchased . product license agreements rociletinib in may 2010 , we entered into an exclusive worldwide license agreement with avila therapeutics , inc. ( now celgene avilomics research inc. , part of celgene corporation ( โ celgene โ ) ) to discover , develop and commercialize a covalent inhibitor of mutant forms of the egfr gene product . as a result of the collaboration contemplated by the agreement , rociletinib was identified as the lead inhibitor candidate , which we are developing under the terms of the license agreement . 46 under the agreement , we are required to use commercially reasonable efforts to develop and commercialize rociletinib , and we are responsible for all preclinical , clinical , regulatory and other activities necessary to develop and commercialize rociletinib . we made an up-front payment of $ 2.0 million upon execution of the license agreement , a $ 4.0 million milestone payment in the first quarter of 2012 upon the acceptance by the u.s. food and drug administration ( โ fda โ ) of our investigational new drug ( โ ind โ ) application for rociletinib and a $ 5.0 million milestone payment in the first quarter of 2014 upon the initiation of the phase ii study for rociletinib . we recognized all payments as acquired in-process research and development expense . when and if commercial sales of rociletinib commence , we will pay celgene tiered royalties at percentage rates ranging from mid-single digits to low teens based on annual net sales achieved . we are required to pay up to an additional aggregate of $ 110.0 million in regulatory milestone payments if certain clinical study objectives and regulatory filings , acceptances and approvals are achieved . in addition , we are required to pay up to an aggregate of $ 120.0 million in sales milestone payments if certain annual sales targets are achieved , the majority of which relate to annual sales targets of $ 500.0 million and above . in january 2013 , the company entered into an exclusive license agreement with gatekeeper pharmaceuticals , inc. ( โ gatekeeper โ ) to acquire exclusive rights under patent applications associated with mutant egfr inhibitors and methods of treatment . pursuant to the terms of the license agreement , the company made an up-front payment of $ 250 thousand upon execution of the agreement , which was recognized as acquired in-process research and development expense . if rociletinib is approved for commercial sale , the company will pay royalties to gatekeeper on future net sales . rucaparib in june 2011 , we entered into a license agreement with pfizer inc. to obtain the exclusive global rights to develop and commercialize rucaparib . the exclusive rights are exclusive even as to pfizer and include the right to grant sublicenses . under the terms of the license agreement , we made a $ 7.0 million up-front payment to pfizer . in april 2014 , the company initiated a pivotal registration study for rucaparib , which resulted in a $ 0.4 million milestone payment to pfizer as required by the license agreement . this payment was recognized as acquired in-process research and development expense . we are obligated under the license agreement to use commercially reasonable efforts to develop and commercialize rucaparib , and we are responsible for all remaining development and commercialization costs for rucaparib . when and if commercial sales of rucaparib begin , we will pay pfizer tiered royalties at a mid-teen percentage rate on our net sales , with standard provisions for royalty offsets to the extent we need to obtain any rights from third parties to commercialize rucaparib . we are required to make regulatory milestone payments to pfizer of up to an additional $ 88.5 million if specified clinical study objectives and regulatory filings , acceptances and approvals are achieved . in addition , we are obligated to make sales milestone payments to pfizer if specified annual sales targets for rucaparib are met , the majority of which relate to annual sales targets of $ 500.0 million and above , which , in the aggregate , could amount to total milestone payments of $ 170.0 million . in april 2012 , the company entered into a license agreement with astrazeneca uk limited to acquire exclusive rights associated with rucaparib under a family of patents and patent applications that claim methods of treating patients with parp inhibitors in certain indications . the license enables the development and commercialization of rucaparib for the uses claimed by these patents . pursuant to the terms of the license agreement , the company made an up-front payment of $ 250 thousand upon execution of the agreement , which was recognized as acquired in-process research and development expense . the company may be required to pay up to an aggregate of $ 0.7 million in milestone payments if certain regulatory filings , acceptances and approvals are achieved . if approved , astrazeneca will also receive royalties on any net sales of rucaparib . lucitanib on november 19 , 2013 , the company acquired all of the issued and outstanding capital stock of eos and gained rights to develop and commercialize lucitanib , an oral , selective tyrosine kinase inhibitor . as further described below , eos licensed the worldwide rights , excluding china , to develop and commercialize lucitanib from advenchen laboratories llc ( โ advenchen โ ) . story_separator_special_tag the assumptions related to determining the value of contingent consideration include significant judgment and changes to the assumptions may have a material impact on the amount of accretion of contingent purchase consideration expense recorded in any given period . the acquisition of eos in november 2013 resulted in the recognition of a contingent consideration liability , based on assumptions related to potential future payout amounts , estimated discount rate , probability of success for each milestone achievement and the estimated timing of the milestone payments to the former eos shareholders . intangible assets intangible acquired in-process research and development ( โ ipr & d โ ) assets were established as part of the purchase accounting of eos and are not amortized . amortization of these assets will commence when the useful lives of the intangible assets have been determined . ipr & d intangible assets are evaluated for impairment at least annually or more frequently if impairment indicators exist and any reduction in fair value would be recognized as an expense on the consolidated statements of operations . revenue recognition revenue is recognized from milestone payments when the following criteria have been met : ( 1 ) persuasive evidence of an arrangement exists ; ( 2 ) delivery has occurred or services have been rendered ; ( 3 ) the price is fixed or determinable ; and collectability is reasonably assured . we exercise judgment in determining that collectability is reasonable assured or that services have been delivered in accordance with the arrangement . we assess whether the fee is fixed or determinable based on the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment . we assess collectability based primarily on the customer 's payment history and creditworthiness of the customer . payments that are contingent upon the achievement of a milestone will be recognized in the period in which the milestone is achieved . results of operations comparison of years ended december 31 , 2014 , 2013 and 2012 : license and milestone revenue . license and milestone revenue for the year ended december 31 , 2014 was due to the recognition of $ 13.6 million of milestone revenue from servier upon the end of opposition and appeal of the lucitanib patent by the european patent office in the first quarter of 2014. we did not recognize any revenue in 2013 and 2012. research and development expenses . research and development expenses for the years ended december 31 , 2014 , 2013 and 2012 were as follows : replace_table_token_6_th the increase in research and development expenses for the year ended december 31 , 2014 compared to 2013 was primarily due to expanded development activities for the rociletinib and rucaparib programs . costs associated with clinical and nonclinical development activities for rociletinib were $ 29.4 million higher than 2013 driven by higher enrollment in the ongoing phase i/ii study in nsclc , as well as the initiation of the tiger-1 , tiger-2 and japanese phase i studies in 2014. clinical trial costs for rucaparib were $ 11.8 million higher than the prior year primarily due to the initiation of the ariel2 and ariel3 studies in ovarian cancer . our development costs for rucaparib were also $ 3.4 million higher than 2013 due to the expansion of our collaboration with foundation medicine , inc. to incorporate a coordinated regulatory strategy for the development of a novel companion diagnostic test . clinical supply and related manufacturing development costs for both programs were $ 13.8 million higher than 2013 , as we increased production to support expanded clinical studies . in addition , salaries , share-based compensation expense and other personnel related costs were $ 13.2 million higher in 2014 driven by higher headcount to support our expanded development activities . these increases were partially offset by $ 4.4 million lower costs due to the termination of the ckit program in late 2013 . 52 research and development activities for rucaparib increased by $ 15.7 million in 2013 over 2012 primarily due to the initiation of the ariel2 and ariel3 clinical trials ( increase of $ 7.0 million ) and increased manufacturing of clinical drug supply to support all of the rucaparib clinical trials ( increase of $ 7.7 million ) . research and development activities for rociletinib increased by $ 9.3 million in 2013 over 2012. costs for the ongoing phase i/ii clinical trial for rociletinib increased by $ 1.9 million due to a larger number of patients enrolled in this study in 2013. in addition , we completed a clinical study related to a new formulation of rociletinib in 2013 , which increased clinical trial costs by $ 1.3 million . finally , the development of an improved formulation of rociletinib and increased manufacturing of drug supply to support the rociletinib clinical trials resulted in an increase of $ 6.1 million in research and development expenses . in 2013 , we performed a full year of drug discovery activities for ckit resulting in an increase of $ 2.3 million over 2012 for which costs commenced in the third quarter of 2012. salaries , share-based compensation expense and other personnel related costs for employees working on our research and development programs increased by $ 3.6 million during 2013 , as we increased headcount to support our expanded development activities . these increases in research and development expenses were partially offset by a $ 23.2 million decline in co-101 related expenses due to the termination of this program in late 2012. general and administrative expenses . general and administrative expenses for the years ended december 31 , 2014 , 2013 and 2012 were as follows : replace_table_token_7_th the increase in general and administrative expenses for the year ended december 31 , 2014 over 2013 was primarily attributable to $ 4.8 million higher share-based compensation expense . the increase in general and administrative expenses for the year ended december 31 , 2013 over 2012 was
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2,583 | in addition , our current period loss includes a $ 5.5 million gain ( recorded as a reduction to operating expenses ) for a final 55 settlement payment received for the termination of our assay agreement with roche diagnostics . this compares to an $ 8.3 million gain recorded in 2013 for the initial settlement payment received pursuant to the same termination agreement . cash provided by operating activities for the year ended december 31 , 2014 was $ 7.5 million , compared to $ 8.4 million for the year ended december 31 , 2013. as of december 31 , 2014 , we had $ 97.9 million in cash and short term investments compared to $ 93.2 million at december 31 , 2013 . 2014 developments hcv co-promotion initiatives on june 10 , 2014 , we entered into an agreement with abbvie to co-promote our oraquick ยฎ hcv test in the united states . the product is used to test individuals at-risk for the hepatitis c virus . we are responsible for manufacturing and selling the product into all markets covered by the agreement . pursuant to the agreement , we have granted exclusive co-promotion rights for the oraquick ยฎ hcv test in certain markets to abbvie and will provide certain additional services in support of hcv testing . in exchange for these exclusive rights and other services which we will provide to abbvie , we are eligible to receive up to $ 75.0 million in aggregate payments over the term of the agreement , which runs through december 31 , 2019. we plan to recognize the payments ratably on a monthly basis over the life of the agreement . the first $ 15.0 million payment was received in july 2014 and as of december 31 , 2014 , we recognized $ 7.6 million in revenues . in addition , if certain performance-based milestones are achieved , we will be eligible to receive additional payments annually , ranging from $ 3.5 to $ 55.5 million over the life of the agreement , beginning in 2015. the agreement also contains certain termination , indemnification and other provisions typical of agreements of this type . payments received under this agreement will be recorded as licensing and product development revenue in our statements of operations . during the second half of 2014 , we began three initiatives under the co-promotion agreement , each with the intent of increasing hcv awareness and making our oraquick ยฎ hcv test and abbvie 's patient support program widely available to patients . the first initiative focuses on primary care and specialty physicians . in august 2014 , abbvie began detailing our oraquick ยฎ hcv test to physicians and we commenced a comprehensive product training program for these customers . as a result of these efforts , hundreds of physician offices have indicated an interest in our product . we have also developed a patient care database and limited co-insurance reimbursement program for use in connection with this and the other initiatives under the agreement . the second initiative targets employers or employer groups with employees that are at high risk for hcv . our initial focus has been on commercial long-haul truck drivers . we intend to continue promoting the use of our test through health and wellness providers who serve professional truckers . a third initiative is to focus on national retail pharmacies and retail clinics . we and abbvie have initiated discussions with several major retail pharmacies about increasing awareness and making our oraquick ยฎ hcv test and abbvie 's patient support program available through retail outlets . although we expect the abbvie agreement to benefit our oraquick ยฎ hcv business , it is difficult to predict when , or if , we will be able to achieve our objectives under the agreement , including receipt of one or more performance fees . if we fail to do so , or if the agreement is terminated early , the level of compensation we receive would be reduced and our financial results and business prospects could be adversely affected . launch of the next generation intercept ยฎ collection device we have completed development of a our second generation intercept i2 ย oral specimen collection device . in july 2014 , we commercially launched the new device into the u.s. criminal justice and forensic toxicology markets and into certain international markets . a generic version of this device is also sold , primarily to laboratories for validation studies . 56 drugs-of-abuse assay agreement we continue to make progress under our agreement with thermo fisher to develop and supply homogenous fully-automated oral fluid drugs of abuse assays to be used with our new intercept i2 ย collection device . in the fourth quarter of 2014 , six high-throughput , fully-automated oral fluid assays were launched into the u.s criminal justice and forensic toxicology markets , consisting of a nida-5 panel for detection of amphetamines , methamphetamines , cocaine , opiates , pcp and thc , or marijuana . six additional assays are expected to launch in 2015. as a result of this progress , in late june 2014 we issued our final purchase order for fully-automated assays developed under our terminated agreement with roche diagnostics ( ยrocheย ) . pursuant to the terms of the termination agreement with roche , we received $ 5.5 million as a result of the submission of our final purchase order . this payment was recorded as a reduction of operating expense in our consolidated statement of operations . rapid ebola test in 2014 , we began efforts to develop and commercialize a rapid , point-of-care antigen test for the ebola virus , using our oraquick ยฎ technology platform . we have achieved significant development and clinical milestones for this product and we are close to finalizing the design of a prototype device . story_separator_special_tag general and administrative expenses increased 13 % to $ 20.6 million in 2014 from $ 18.2 million in 2013 due to higher legal , staffing and consulting expenses . 62 all of the above , along with the $ 5.5 million contract termination payment from roche , contributed to osur 's operating loss of $ 8.3 million for 2014 , which included non-cash charges of $ 3.3 million for depreciation and amortization and $ 5.3 million for stock-based compensation . dnag segment dnag 's gross margin was 73 % in 2014 compared to 67 % in 2013. this improvement was primarily attributable to an increased volume of higher margin sales experienced in 2014 when compared to 2013. dnag operating expenses rose to $ 13.7 million in 2014 from $ 13.0 million in 2013. research and development expenses remained relatively flat at $ 2.6 million in 2014 and 2013. sales and marketing expenses increased 14 % to $ 8.0 million in 2014 from $ 7.0 million in 2013 largely due to higher staffing and consulting costs . general and administrative expenses decreased 9 % to $ 3.1 million in 2014 from $ 3.4 million in 2013 largely due to lower legal fees . all of the above contributed to dnag 's operating income of $ 3.5 million for 2014 , which included non-cash charges of $ 3.1 million for depreciation and amortization and $ 432,000 for stock-based compensation . consolidated income taxes we continue to believe the full valuation allowance established in 2008 against osur 's total u.s. net deferred tax asset is appropriate as the facts and circumstances necessitating the allowance have not changed . as a result , no u.s. income tax benefit was recorded for osur 's pre-tax loss in 2014 or 2013. for the year ended december 31 , 2014 , we recorded canadian income tax expense of $ 343,000. for the year ended december 31 , 2013 , we recorded a canadian income tax benefit of $ 772,000 which was associated with certain canadian research and development and investment tax credits . the canadian income tax benefit was considered realizable based upon the scheduled reversal of the deferred tax liabilities recorded in connection with the acquisition of dnag . year ended december 31 , 2013 compared to december 31 , 2012 consolidated net revenues the table below shows the amount of total net product revenues generated by each of our business segments and net revenues generated by licensing and product development activities ( dollars in thousands ) . replace_table_token_10_th consolidated net revenues increased 13 % to $ 98.9 million in 2013 from $ 87.8 million in 2012. net product revenues increased 15 % during the year ended december 31 , 2013 when compared to the year ended 63 december 31 , 2012 , primarily as a result of higher sales of our infectious disease testing and molecular collection systems products . these increases were partially offset by lower sales of our substance abuse testing , insurance risk assessment and cryosurgical systems products . licensing and product development revenues decreased in the current year compared to the prior year primarily as a result of the absence of a $ 1.0 million milestone payment received in the first quarter of 2012 related to the achievement of certain regulatory and commercial objectives pursuant to the terms of our hcv agreement with merck . no similar payment was received during 2013 because the agreement with merck was terminated in november 2012. consolidated net revenues derived from products sold to customers outside the u.s. were $ 21.7 million and $ 20.3 million , or 22 % and 23 % of consolidated net revenues for the years ended december 31 , 2013 and 2012 , respectively . because the majority of our international sales are denominated in u.s. dollars , the impact of fluctuating foreign currency exchange rates was not material to our total net revenues . net revenues by segment osur segment the table below shows the amount of total net revenues generated by our osur segment in each of our principal markets and by licensing and product development activities ( dollars in thousands ) . replace_table_token_11_th infectious disease testing market sales to the infectious disease testing market increased 19 % to $ 51.0 million in 2013 from $ 42.7 million in 2012 , primarily due to sales of our oraquick ยฎ in-home hiv test and higher sales of our oraquick ยฎ hcv and hiv products in international markets . the table below shows a breakdown of our total net oraquick ยฎ revenues ( dollars in thousands ) during 2013 and 2012. replace_table_token_12_th 64 domestic oraquick ยฎ hiv sales decreased 6 % to $ 32.3 million in 2013 from $ 34.3 million in 2012. this decrease was primarily caused by competition from other rapid and automated laboratory-based hiv tests and reductions in government funding . international sales of our oraquick ยฎ hiv test increased 10 % to $ 3.4 million in 2013 from $ 3.1 million in 2012 primarily as a result of higher sales in mexico , africa , and europe . in 2013 , we recorded $ 9.1 million in net revenues from sales of our oraquick ยฎ in-home hiv test , including $ 2.5 million of previously deferred revenue recognized in december 2013 when we changed our revenue recognition policy for this product . since the product launch in late 2012 , revenues had been recognized upon consummation of a purchase by consumers either in a store or over the internet . in december 2013 , as a result of our growing experience with this product and improved ability to estimate potential product returns , we began recognizing revenues upon shipment of the product to retailers or distributors . sales during 2013 also included approximately $ 701,000 of direct sales to certain public health customers compared to $ 19,000 in 2012. we began shipping our oraquick ยฎ in-home hiv test to the retail outlets at the end of
| liquidity and capital resources replace_table_token_15_th our cash and short-term investment balances increased to $ 97.9 million at december 31 , 2014 from $ 93.2 million at december 31 , 2013. our working capital increased to $ 104.8 million at december 31 , 2014 from $ 100.6 million at december 31 , 2013. during 2014 , we generated $ 7.5 million in cash from our operating activities . our net loss of $ 4.6 million was offset by non-cash stock-based compensation expense of $ 5.7 million , depreciation and amortization expense of $ 6.3 million , an unrealized foreign currency gain of $ 305,000 , and deferred income tax expense of $ 294,000. an increase in deferred revenue of $ 6.9 million also contributed to the cash generated during the year . the deferred revenue increase is related to the receipt of $ 15.0 million from abbvie in july 2014 , reduced by the amount ratably recognized in revenue during the year . also contributing to the increase in cash was an increase in accounts payable of $ 2.2 million largely associated with expenses related to the abbvie agreement , and a decrease in prepaid expenses and other current assets of $ 475,000. these increases in cash were partially offset by a $ 4.4 million increase in inventory associated with our oraquick ยฎ hcv product , a $ 3.4 million increase in accounts receivable resulting from the increase and timing of sales at dnag , and a $ 1.7 million decrease in accrued expenses largely associated with a decrease in our royalty obligations . we used a net amount of $ 8.0 million in investing activities during 2014 to purchase $ 9.4 million in short-term investments and $ 3.0 million to acquire property and equipment . these payments were offset by proceeds received from the maturities of short-term investments of $ 4.4 million . during the year ended december 31 , 2015 , we expect to invest approximately $ 4.0 million in capital expenditures , primarily to purchase additional manufacturing equipment , upgrade certain older equipment and make improvements to our facilities .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources replace_table_token_15_th our cash and short-term investment balances increased to $ 97.9 million at december 31 , 2014 from $ 93.2 million at december 31 , 2013. our working capital increased to $ 104.8 million at december 31 , 2014 from $ 100.6 million at december 31 , 2013. during 2014 , we generated $ 7.5 million in cash from our operating activities . our net loss of $ 4.6 million was offset by non-cash stock-based compensation expense of $ 5.7 million , depreciation and amortization expense of $ 6.3 million , an unrealized foreign currency gain of $ 305,000 , and deferred income tax expense of $ 294,000. an increase in deferred revenue of $ 6.9 million also contributed to the cash generated during the year . the deferred revenue increase is related to the receipt of $ 15.0 million from abbvie in july 2014 , reduced by the amount ratably recognized in revenue during the year . also contributing to the increase in cash was an increase in accounts payable of $ 2.2 million largely associated with expenses related to the abbvie agreement , and a decrease in prepaid expenses and other current assets of $ 475,000. these increases in cash were partially offset by a $ 4.4 million increase in inventory associated with our oraquick ยฎ hcv product , a $ 3.4 million increase in accounts receivable resulting from the increase and timing of sales at dnag , and a $ 1.7 million decrease in accrued expenses largely associated with a decrease in our royalty obligations . we used a net amount of $ 8.0 million in investing activities during 2014 to purchase $ 9.4 million in short-term investments and $ 3.0 million to acquire property and equipment . these payments were offset by proceeds received from the maturities of short-term investments of $ 4.4 million . during the year ended december 31 , 2015 , we expect to invest approximately $ 4.0 million in capital expenditures , primarily to purchase additional manufacturing equipment , upgrade certain older equipment and make improvements to our facilities .
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Suspicious Activity Report : in addition , our current period loss includes a $ 5.5 million gain ( recorded as a reduction to operating expenses ) for a final 55 settlement payment received for the termination of our assay agreement with roche diagnostics . this compares to an $ 8.3 million gain recorded in 2013 for the initial settlement payment received pursuant to the same termination agreement . cash provided by operating activities for the year ended december 31 , 2014 was $ 7.5 million , compared to $ 8.4 million for the year ended december 31 , 2013. as of december 31 , 2014 , we had $ 97.9 million in cash and short term investments compared to $ 93.2 million at december 31 , 2013 . 2014 developments hcv co-promotion initiatives on june 10 , 2014 , we entered into an agreement with abbvie to co-promote our oraquick ยฎ hcv test in the united states . the product is used to test individuals at-risk for the hepatitis c virus . we are responsible for manufacturing and selling the product into all markets covered by the agreement . pursuant to the agreement , we have granted exclusive co-promotion rights for the oraquick ยฎ hcv test in certain markets to abbvie and will provide certain additional services in support of hcv testing . in exchange for these exclusive rights and other services which we will provide to abbvie , we are eligible to receive up to $ 75.0 million in aggregate payments over the term of the agreement , which runs through december 31 , 2019. we plan to recognize the payments ratably on a monthly basis over the life of the agreement . the first $ 15.0 million payment was received in july 2014 and as of december 31 , 2014 , we recognized $ 7.6 million in revenues . in addition , if certain performance-based milestones are achieved , we will be eligible to receive additional payments annually , ranging from $ 3.5 to $ 55.5 million over the life of the agreement , beginning in 2015. the agreement also contains certain termination , indemnification and other provisions typical of agreements of this type . payments received under this agreement will be recorded as licensing and product development revenue in our statements of operations . during the second half of 2014 , we began three initiatives under the co-promotion agreement , each with the intent of increasing hcv awareness and making our oraquick ยฎ hcv test and abbvie 's patient support program widely available to patients . the first initiative focuses on primary care and specialty physicians . in august 2014 , abbvie began detailing our oraquick ยฎ hcv test to physicians and we commenced a comprehensive product training program for these customers . as a result of these efforts , hundreds of physician offices have indicated an interest in our product . we have also developed a patient care database and limited co-insurance reimbursement program for use in connection with this and the other initiatives under the agreement . the second initiative targets employers or employer groups with employees that are at high risk for hcv . our initial focus has been on commercial long-haul truck drivers . we intend to continue promoting the use of our test through health and wellness providers who serve professional truckers . a third initiative is to focus on national retail pharmacies and retail clinics . we and abbvie have initiated discussions with several major retail pharmacies about increasing awareness and making our oraquick ยฎ hcv test and abbvie 's patient support program available through retail outlets . although we expect the abbvie agreement to benefit our oraquick ยฎ hcv business , it is difficult to predict when , or if , we will be able to achieve our objectives under the agreement , including receipt of one or more performance fees . if we fail to do so , or if the agreement is terminated early , the level of compensation we receive would be reduced and our financial results and business prospects could be adversely affected . launch of the next generation intercept ยฎ collection device we have completed development of a our second generation intercept i2 ย oral specimen collection device . in july 2014 , we commercially launched the new device into the u.s. criminal justice and forensic toxicology markets and into certain international markets . a generic version of this device is also sold , primarily to laboratories for validation studies . 56 drugs-of-abuse assay agreement we continue to make progress under our agreement with thermo fisher to develop and supply homogenous fully-automated oral fluid drugs of abuse assays to be used with our new intercept i2 ย collection device . in the fourth quarter of 2014 , six high-throughput , fully-automated oral fluid assays were launched into the u.s criminal justice and forensic toxicology markets , consisting of a nida-5 panel for detection of amphetamines , methamphetamines , cocaine , opiates , pcp and thc , or marijuana . six additional assays are expected to launch in 2015. as a result of this progress , in late june 2014 we issued our final purchase order for fully-automated assays developed under our terminated agreement with roche diagnostics ( ยrocheย ) . pursuant to the terms of the termination agreement with roche , we received $ 5.5 million as a result of the submission of our final purchase order . this payment was recorded as a reduction of operating expense in our consolidated statement of operations . rapid ebola test in 2014 , we began efforts to develop and commercialize a rapid , point-of-care antigen test for the ebola virus , using our oraquick ยฎ technology platform . we have achieved significant development and clinical milestones for this product and we are close to finalizing the design of a prototype device . story_separator_special_tag general and administrative expenses increased 13 % to $ 20.6 million in 2014 from $ 18.2 million in 2013 due to higher legal , staffing and consulting expenses . 62 all of the above , along with the $ 5.5 million contract termination payment from roche , contributed to osur 's operating loss of $ 8.3 million for 2014 , which included non-cash charges of $ 3.3 million for depreciation and amortization and $ 5.3 million for stock-based compensation . dnag segment dnag 's gross margin was 73 % in 2014 compared to 67 % in 2013. this improvement was primarily attributable to an increased volume of higher margin sales experienced in 2014 when compared to 2013. dnag operating expenses rose to $ 13.7 million in 2014 from $ 13.0 million in 2013. research and development expenses remained relatively flat at $ 2.6 million in 2014 and 2013. sales and marketing expenses increased 14 % to $ 8.0 million in 2014 from $ 7.0 million in 2013 largely due to higher staffing and consulting costs . general and administrative expenses decreased 9 % to $ 3.1 million in 2014 from $ 3.4 million in 2013 largely due to lower legal fees . all of the above contributed to dnag 's operating income of $ 3.5 million for 2014 , which included non-cash charges of $ 3.1 million for depreciation and amortization and $ 432,000 for stock-based compensation . consolidated income taxes we continue to believe the full valuation allowance established in 2008 against osur 's total u.s. net deferred tax asset is appropriate as the facts and circumstances necessitating the allowance have not changed . as a result , no u.s. income tax benefit was recorded for osur 's pre-tax loss in 2014 or 2013. for the year ended december 31 , 2014 , we recorded canadian income tax expense of $ 343,000. for the year ended december 31 , 2013 , we recorded a canadian income tax benefit of $ 772,000 which was associated with certain canadian research and development and investment tax credits . the canadian income tax benefit was considered realizable based upon the scheduled reversal of the deferred tax liabilities recorded in connection with the acquisition of dnag . year ended december 31 , 2013 compared to december 31 , 2012 consolidated net revenues the table below shows the amount of total net product revenues generated by each of our business segments and net revenues generated by licensing and product development activities ( dollars in thousands ) . replace_table_token_10_th consolidated net revenues increased 13 % to $ 98.9 million in 2013 from $ 87.8 million in 2012. net product revenues increased 15 % during the year ended december 31 , 2013 when compared to the year ended 63 december 31 , 2012 , primarily as a result of higher sales of our infectious disease testing and molecular collection systems products . these increases were partially offset by lower sales of our substance abuse testing , insurance risk assessment and cryosurgical systems products . licensing and product development revenues decreased in the current year compared to the prior year primarily as a result of the absence of a $ 1.0 million milestone payment received in the first quarter of 2012 related to the achievement of certain regulatory and commercial objectives pursuant to the terms of our hcv agreement with merck . no similar payment was received during 2013 because the agreement with merck was terminated in november 2012. consolidated net revenues derived from products sold to customers outside the u.s. were $ 21.7 million and $ 20.3 million , or 22 % and 23 % of consolidated net revenues for the years ended december 31 , 2013 and 2012 , respectively . because the majority of our international sales are denominated in u.s. dollars , the impact of fluctuating foreign currency exchange rates was not material to our total net revenues . net revenues by segment osur segment the table below shows the amount of total net revenues generated by our osur segment in each of our principal markets and by licensing and product development activities ( dollars in thousands ) . replace_table_token_11_th infectious disease testing market sales to the infectious disease testing market increased 19 % to $ 51.0 million in 2013 from $ 42.7 million in 2012 , primarily due to sales of our oraquick ยฎ in-home hiv test and higher sales of our oraquick ยฎ hcv and hiv products in international markets . the table below shows a breakdown of our total net oraquick ยฎ revenues ( dollars in thousands ) during 2013 and 2012. replace_table_token_12_th 64 domestic oraquick ยฎ hiv sales decreased 6 % to $ 32.3 million in 2013 from $ 34.3 million in 2012. this decrease was primarily caused by competition from other rapid and automated laboratory-based hiv tests and reductions in government funding . international sales of our oraquick ยฎ hiv test increased 10 % to $ 3.4 million in 2013 from $ 3.1 million in 2012 primarily as a result of higher sales in mexico , africa , and europe . in 2013 , we recorded $ 9.1 million in net revenues from sales of our oraquick ยฎ in-home hiv test , including $ 2.5 million of previously deferred revenue recognized in december 2013 when we changed our revenue recognition policy for this product . since the product launch in late 2012 , revenues had been recognized upon consummation of a purchase by consumers either in a store or over the internet . in december 2013 , as a result of our growing experience with this product and improved ability to estimate potential product returns , we began recognizing revenues upon shipment of the product to retailers or distributors . sales during 2013 also included approximately $ 701,000 of direct sales to certain public health customers compared to $ 19,000 in 2012. we began shipping our oraquick ยฎ in-home hiv test to the retail outlets at the end of
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2,584 | net sales for fiscal 2019 in the emea segment increased $ 28.4 million , or 10.1 % , as compared to fiscal 2018 . the increase in net sales was the result of a $ 20.2 million increase in production ramps of new products for existing customers , a $ 4.2 million increase in production ramps for new customers and overall net increased customer end-market demand . the increase was partially offset by a $ 6.2 million reduction due to a disengagement with a customer . our net sales by market sector for the indicated fiscal years were as follows ( in millions ) : replace_table_token_5_th healthcare/life sciences . net sales for fiscal 2019 in the healthcare/life sciences sector increased $ 180.1 million , or 17.3 % , as compared to fiscal 2018 . the increase was driven by overall net increased customer end-market demand , a $ 32.7 million increase in production ramps of new products for existing customers and a $ 26.9 million increase in production ramps for new customers . industrial/commercial . net sales for fiscal 2019 in the industrial/commercial sector increased $ 63.5 million , or 6.9 % , as compared to fiscal 2018 . the increase was driven by a $ 64.8 million increase in production ramps of new products for existing customers and a $ 33.2 million increase in production ramps for new customers . the increase was partially offset by a $ 7.3 million decrease due to end-of-life products , a $ 4.2 million decrease due to a disengagement with a customer and overall net decreased customer end-market demand . aerospace/defense . net sales for fiscal 2019 in the aerospace/defense sector increased $ 143.5 million , or 32.2 % , as compared to fiscal 2018 . the increase was driven by a $ 120.2 million increase in production ramps of new products for existing customers , a $ 9.9 million increase in production ramps for new customers and overall net increased customer end-market demand . communications . net sales for fiscal 2019 in the communications sector decreased $ 96.2 million , or 20.4 % , as compared to fiscal 2018 . the decrease was driven by a $ 37.3 million reduction due to disengagements with customers , a $ 15.3 million decrease due to end-of-life products and overall net decreased customer end-market demand . the decrease was partially offset by an $ 18.1 million increase in production ramps of new products for existing customers and a $ 4.5 million increase in production ramps for new customers . 24 as a percentage of consolidated net sales , net sales attributable to customers representing 10 % or more of consolidated net sales as well as the percentage of net sales attributable to our ten largest customers for the indicated fiscal years were as follows : replace_table_token_6_th cost of sales . cost of sales for fiscal 2019 increased $ 256.7 million , or 9.8 % , as compared to fiscal 2018 . cost of sales is comprised primarily of material and component costs , labor costs and overhead . in fiscal 2019 and 2018 , approximately 89 % of the total cost of sales was variable in nature and fluctuated with sales volumes . of these amounts , approximately 86 % and 88 % of these costs in fiscal 2019 and 2018 , respectively , were related to material and component costs . as compared to fiscal 2018 , the increase in cost of sales in fiscal 2019 was primarily driven by the increase in net sales and increased fixed costs to support program ramps . partially offsetting the increase was a positive shift in customer mix and the $ 13.5 million one-time employee bonus ( the `` one-time employee bonus `` ) that was paid during fiscal 2018 , of which $ 12.6 million impacted cost of sales in that period . gross profit . gross profit for fiscal 2019 increased $ 34.2 million , or 13.3 % , as compared to fiscal 2018 . gross margin of 9.2 % increased by 20 basis points as compared to fiscal 2018. the primary driver of the increases in gross profit and gross margin as compared to fiscal 2018 was the increase in net sales , a positive shift in customer mix and the one-time employee bonus that was paid during fiscal 2018. operating income . operating income for fiscal 2019 increased $ 23.8 million , or 20.1 % , as compared to fiscal 2018 as a result of the increase in gross profit as well as the non-recurrence of the one-time employee bonus that was paid during fiscal 2018 , as noted above . this was partially offset by an $ 8.8 million increase in selling and administrative expenses , driven by a $ 4.9 million increase in compensation expense , and $ 1.7 million of restructuring costs . operating margin of 4.5 % increased 40 basis points compared to fiscal 2018 primarily due to the increase in gross margin as a result of the factors discussed above . a discussion of operating income by reportable segment is presented below ( in millions ) : replace_table_token_7_th amer . operating income increased $ 19.2 million in fiscal 2019 as compared to fiscal 2018 , primarily as a result of the increase in net sales and a positive shift in customer mix , partially offset by increased fixed costs to support new program ramps . apac . operating income decreased $ 5.7 million in fiscal 2019 as compared to fiscal 2018 , primarily as a result of a negative shift in customer mix and increased fixed costs to support new program ramps , partially offset by the increase in net sales . emea . operating income increased $ 3.0 million in fiscal 2019 as compared to fiscal 2018 primarily as a result of the increase in net sales and a positive shift in customer mix , partially offset by increased fixed costs to support new program ramps . story_separator_special_tag 2 ) as of september 28 , 2019 , capital lease obligations consists of capital lease payments and interest as well as the non-cash financing obligation related to the failed sale-leasebacks in guadalajara , mexico ; see note 4 , `` debt , capital lease obligations and other financing , `` in notes to consolidated financial statements for further information . 3 ) as of september 28 , 2019 , purchase obligations consist primarily of purchases of inventory and equipment in the ordinary course of business . 4 ) consists of u.s. federal income taxes on the deemed repatriation of undistributed foreign earnings due to tax reform . refer to `` liquidity and capital resources `` above for further detail . 5 ) as of september 28 , 2019 , other obligations on the balance sheet included deferred compensation obligations to certain of our former and current executive officers , as well as other key employees , and an asset retirement obligation . we have excluded from the above table the impact of approximately $ 2.3 million , as of september 28 , 2019 , related to unrecognized income tax benefits . the company can not make reliable estimates of the future cash flows by period related to these obligations . 6 ) as of september 28 , 2019 , other obligations not on the balance sheet consist of guarantees and a commitment for salary continuation and certain benefits in the event employment of one executive officer of the company is terminated without cause . excluded from the amounts disclosed are certain bonus and incentive compensation amounts , which would be paid on a prorated basis in the year of termination . 7 ) includes future minimum lease payments for two facilities in guadalajara , mexico , leased under 10-year and 15-year base lease agreements , both of which include two 5-year renewal options ; see note 4 , `` debt , capital lease obligations and other financing , `` in notes to consolidated financial statements for further information . 32 disclosure about critical accounting estimates our accounting policies are disclosed in note 1 of notes to consolidated financial statements . during fiscal 2019 , other than changes related to revenue recognition , there were no material changes to these policies . our more critical accounting estimates are described below : revenue recognition : asu 2014-09 , topic 606 , which was adopted at the beginning of fiscal 2019 , resulted in a change to the timing of revenue recognition for a significant portion of the company 's revenue , whereby revenue is now recognized over time as products are produced , as opposed to at a point in time based upon shipping terms . since adopting the standard , revenue is recognized over time for arrangements with customers for which : ( i ) the company 's performance does not create an asset with an alternative use to the company , and ( ii ) the company has an enforceable right to payment , including a reasonable profit margin , for performance completed to date . revenue recognized over time is estimated based on costs incurred to date plus a reasonable profit margin . if either of the two conditions noted above are not met to recognize revenue over time , revenue is recognized following the transfer of control of such products to the customer , which typically occurs upon shipment or delivery depending on the terms of the underlying arrangement . the company recognizes revenue when a contract exists and when , or as , it satisfies a performance obligation by transferring control of a product or service to a customer . contracts are accounted for when they have approval and commitment from both parties , the rights of the parties are identified , payment terms are identified , the contract has commercial substance and collectability of consideration is probable . a performance obligation is a promise in a contract to transfer a distinct good or service to the customer . the company generally enters into a master services arrangement that establishes the framework under which business will be conducted . these arrangements represent the master terms and conditions of the company 's services that apply to individual orders , but they do not commit the customer to work with , or to continue to work with , the company nor do they obligate the customer to any specific volume or pricing of purchases . moreover , these terms can be amended in appropriate situations . customer purchase orders are received for specific quantities with predominantly fixed pricing and delivery requirements . thus , for the majority of our contracts , there is no guarantee of any revenue to the company until a customer submits a purchase order . as a result , the company generally considers its arrangement with a customer to be the combination of the master services arrangement and the purchase order . most of the company 's arrangements with customers create a single performance obligation as the promise to transfer the individual manufactured product or service is capable of being distinct . the company 's performance obligations are satisfied over time as work progresses or at a point in time . a performance obligation is satisfied over time if the company has an enforceable right to payment , including a reasonable profit margin . determining if an enforceable right to payment includes a reasonable profit margin requires judgment and is assessed on a contract by contract basis . if an enforceable right to payment for work-in-process does not exist , revenue is recognized following the transfer of control of such products to the customer , which typically occurs upon shipment or delivery depending on the terms of the underlying contract . for contracts requiring over time revenue recognition , the selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be
| cash flows . the following table provides a summary of cash flows for fiscal 2019 and 2018 , excluding the effect of exchange rates on cash and cash equivalents and restricted cash ( in millions ) : replace_table_token_13_th operating activities . cash flows provided by operating activities were $ 115.3 million for fiscal 2019 , as compared to $ 66.8 million for fiscal 2018 . the increase was primarily due to cash flow improvements ( reductions ) of : $ 159.4 million in inventory cash flows driven by inventory management efforts . $ 66.4 million in customer deposit cash flows driven by significant deposits received from three customers . $ ( 150.1 ) million in accounts payables cash flows driven by reduced purchasing in an effort to manage inventory . $ ( 66.0 ) million in accounts receivable cash flows , which resulted primarily from the increase in net sales . $ 14.1 million in other current and noncurrent liabilities cash flows driven by an increase in advance payments from customers . 28 the following table provides a summary of cash cycle days for the periods indicated ( in days ) : replace_table_token_14_th we calculate days in accounts receivable and contract assets as each balance sheet item for the respective quarter divided by annualized sales for the respective quarter by day . we calculate days in inventory , accounts payable , and cash deposits as each balance sheet line item for the respective quarter divided by annualized cost of sales for the respective quarter by day . we calculate annualized cash cycle as the sum of days in accounts receivable , days in contract assets and days in inventory , less days in accounts payable and days in cash deposits . on september 30 , 2018 , the company adopted accounting standards update no . 2014-09 ( โ asu 2014-09 โ ) , revenue recognition ( topic 606 ) . for the three months ended september 28 , 2019 , cash cycle days include contract assets and an associated reduction in inventory . as the guidance was adopted using a modified retrospective approach , no impact to prior periods was required to be recognized .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows . the following table provides a summary of cash flows for fiscal 2019 and 2018 , excluding the effect of exchange rates on cash and cash equivalents and restricted cash ( in millions ) : replace_table_token_13_th operating activities . cash flows provided by operating activities were $ 115.3 million for fiscal 2019 , as compared to $ 66.8 million for fiscal 2018 . the increase was primarily due to cash flow improvements ( reductions ) of : $ 159.4 million in inventory cash flows driven by inventory management efforts . $ 66.4 million in customer deposit cash flows driven by significant deposits received from three customers . $ ( 150.1 ) million in accounts payables cash flows driven by reduced purchasing in an effort to manage inventory . $ ( 66.0 ) million in accounts receivable cash flows , which resulted primarily from the increase in net sales . $ 14.1 million in other current and noncurrent liabilities cash flows driven by an increase in advance payments from customers . 28 the following table provides a summary of cash cycle days for the periods indicated ( in days ) : replace_table_token_14_th we calculate days in accounts receivable and contract assets as each balance sheet item for the respective quarter divided by annualized sales for the respective quarter by day . we calculate days in inventory , accounts payable , and cash deposits as each balance sheet line item for the respective quarter divided by annualized cost of sales for the respective quarter by day . we calculate annualized cash cycle as the sum of days in accounts receivable , days in contract assets and days in inventory , less days in accounts payable and days in cash deposits . on september 30 , 2018 , the company adopted accounting standards update no . 2014-09 ( โ asu 2014-09 โ ) , revenue recognition ( topic 606 ) . for the three months ended september 28 , 2019 , cash cycle days include contract assets and an associated reduction in inventory . as the guidance was adopted using a modified retrospective approach , no impact to prior periods was required to be recognized .
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Suspicious Activity Report : net sales for fiscal 2019 in the emea segment increased $ 28.4 million , or 10.1 % , as compared to fiscal 2018 . the increase in net sales was the result of a $ 20.2 million increase in production ramps of new products for existing customers , a $ 4.2 million increase in production ramps for new customers and overall net increased customer end-market demand . the increase was partially offset by a $ 6.2 million reduction due to a disengagement with a customer . our net sales by market sector for the indicated fiscal years were as follows ( in millions ) : replace_table_token_5_th healthcare/life sciences . net sales for fiscal 2019 in the healthcare/life sciences sector increased $ 180.1 million , or 17.3 % , as compared to fiscal 2018 . the increase was driven by overall net increased customer end-market demand , a $ 32.7 million increase in production ramps of new products for existing customers and a $ 26.9 million increase in production ramps for new customers . industrial/commercial . net sales for fiscal 2019 in the industrial/commercial sector increased $ 63.5 million , or 6.9 % , as compared to fiscal 2018 . the increase was driven by a $ 64.8 million increase in production ramps of new products for existing customers and a $ 33.2 million increase in production ramps for new customers . the increase was partially offset by a $ 7.3 million decrease due to end-of-life products , a $ 4.2 million decrease due to a disengagement with a customer and overall net decreased customer end-market demand . aerospace/defense . net sales for fiscal 2019 in the aerospace/defense sector increased $ 143.5 million , or 32.2 % , as compared to fiscal 2018 . the increase was driven by a $ 120.2 million increase in production ramps of new products for existing customers , a $ 9.9 million increase in production ramps for new customers and overall net increased customer end-market demand . communications . net sales for fiscal 2019 in the communications sector decreased $ 96.2 million , or 20.4 % , as compared to fiscal 2018 . the decrease was driven by a $ 37.3 million reduction due to disengagements with customers , a $ 15.3 million decrease due to end-of-life products and overall net decreased customer end-market demand . the decrease was partially offset by an $ 18.1 million increase in production ramps of new products for existing customers and a $ 4.5 million increase in production ramps for new customers . 24 as a percentage of consolidated net sales , net sales attributable to customers representing 10 % or more of consolidated net sales as well as the percentage of net sales attributable to our ten largest customers for the indicated fiscal years were as follows : replace_table_token_6_th cost of sales . cost of sales for fiscal 2019 increased $ 256.7 million , or 9.8 % , as compared to fiscal 2018 . cost of sales is comprised primarily of material and component costs , labor costs and overhead . in fiscal 2019 and 2018 , approximately 89 % of the total cost of sales was variable in nature and fluctuated with sales volumes . of these amounts , approximately 86 % and 88 % of these costs in fiscal 2019 and 2018 , respectively , were related to material and component costs . as compared to fiscal 2018 , the increase in cost of sales in fiscal 2019 was primarily driven by the increase in net sales and increased fixed costs to support program ramps . partially offsetting the increase was a positive shift in customer mix and the $ 13.5 million one-time employee bonus ( the `` one-time employee bonus `` ) that was paid during fiscal 2018 , of which $ 12.6 million impacted cost of sales in that period . gross profit . gross profit for fiscal 2019 increased $ 34.2 million , or 13.3 % , as compared to fiscal 2018 . gross margin of 9.2 % increased by 20 basis points as compared to fiscal 2018. the primary driver of the increases in gross profit and gross margin as compared to fiscal 2018 was the increase in net sales , a positive shift in customer mix and the one-time employee bonus that was paid during fiscal 2018. operating income . operating income for fiscal 2019 increased $ 23.8 million , or 20.1 % , as compared to fiscal 2018 as a result of the increase in gross profit as well as the non-recurrence of the one-time employee bonus that was paid during fiscal 2018 , as noted above . this was partially offset by an $ 8.8 million increase in selling and administrative expenses , driven by a $ 4.9 million increase in compensation expense , and $ 1.7 million of restructuring costs . operating margin of 4.5 % increased 40 basis points compared to fiscal 2018 primarily due to the increase in gross margin as a result of the factors discussed above . a discussion of operating income by reportable segment is presented below ( in millions ) : replace_table_token_7_th amer . operating income increased $ 19.2 million in fiscal 2019 as compared to fiscal 2018 , primarily as a result of the increase in net sales and a positive shift in customer mix , partially offset by increased fixed costs to support new program ramps . apac . operating income decreased $ 5.7 million in fiscal 2019 as compared to fiscal 2018 , primarily as a result of a negative shift in customer mix and increased fixed costs to support new program ramps , partially offset by the increase in net sales . emea . operating income increased $ 3.0 million in fiscal 2019 as compared to fiscal 2018 primarily as a result of the increase in net sales and a positive shift in customer mix , partially offset by increased fixed costs to support new program ramps . story_separator_special_tag 2 ) as of september 28 , 2019 , capital lease obligations consists of capital lease payments and interest as well as the non-cash financing obligation related to the failed sale-leasebacks in guadalajara , mexico ; see note 4 , `` debt , capital lease obligations and other financing , `` in notes to consolidated financial statements for further information . 3 ) as of september 28 , 2019 , purchase obligations consist primarily of purchases of inventory and equipment in the ordinary course of business . 4 ) consists of u.s. federal income taxes on the deemed repatriation of undistributed foreign earnings due to tax reform . refer to `` liquidity and capital resources `` above for further detail . 5 ) as of september 28 , 2019 , other obligations on the balance sheet included deferred compensation obligations to certain of our former and current executive officers , as well as other key employees , and an asset retirement obligation . we have excluded from the above table the impact of approximately $ 2.3 million , as of september 28 , 2019 , related to unrecognized income tax benefits . the company can not make reliable estimates of the future cash flows by period related to these obligations . 6 ) as of september 28 , 2019 , other obligations not on the balance sheet consist of guarantees and a commitment for salary continuation and certain benefits in the event employment of one executive officer of the company is terminated without cause . excluded from the amounts disclosed are certain bonus and incentive compensation amounts , which would be paid on a prorated basis in the year of termination . 7 ) includes future minimum lease payments for two facilities in guadalajara , mexico , leased under 10-year and 15-year base lease agreements , both of which include two 5-year renewal options ; see note 4 , `` debt , capital lease obligations and other financing , `` in notes to consolidated financial statements for further information . 32 disclosure about critical accounting estimates our accounting policies are disclosed in note 1 of notes to consolidated financial statements . during fiscal 2019 , other than changes related to revenue recognition , there were no material changes to these policies . our more critical accounting estimates are described below : revenue recognition : asu 2014-09 , topic 606 , which was adopted at the beginning of fiscal 2019 , resulted in a change to the timing of revenue recognition for a significant portion of the company 's revenue , whereby revenue is now recognized over time as products are produced , as opposed to at a point in time based upon shipping terms . since adopting the standard , revenue is recognized over time for arrangements with customers for which : ( i ) the company 's performance does not create an asset with an alternative use to the company , and ( ii ) the company has an enforceable right to payment , including a reasonable profit margin , for performance completed to date . revenue recognized over time is estimated based on costs incurred to date plus a reasonable profit margin . if either of the two conditions noted above are not met to recognize revenue over time , revenue is recognized following the transfer of control of such products to the customer , which typically occurs upon shipment or delivery depending on the terms of the underlying arrangement . the company recognizes revenue when a contract exists and when , or as , it satisfies a performance obligation by transferring control of a product or service to a customer . contracts are accounted for when they have approval and commitment from both parties , the rights of the parties are identified , payment terms are identified , the contract has commercial substance and collectability of consideration is probable . a performance obligation is a promise in a contract to transfer a distinct good or service to the customer . the company generally enters into a master services arrangement that establishes the framework under which business will be conducted . these arrangements represent the master terms and conditions of the company 's services that apply to individual orders , but they do not commit the customer to work with , or to continue to work with , the company nor do they obligate the customer to any specific volume or pricing of purchases . moreover , these terms can be amended in appropriate situations . customer purchase orders are received for specific quantities with predominantly fixed pricing and delivery requirements . thus , for the majority of our contracts , there is no guarantee of any revenue to the company until a customer submits a purchase order . as a result , the company generally considers its arrangement with a customer to be the combination of the master services arrangement and the purchase order . most of the company 's arrangements with customers create a single performance obligation as the promise to transfer the individual manufactured product or service is capable of being distinct . the company 's performance obligations are satisfied over time as work progresses or at a point in time . a performance obligation is satisfied over time if the company has an enforceable right to payment , including a reasonable profit margin . determining if an enforceable right to payment includes a reasonable profit margin requires judgment and is assessed on a contract by contract basis . if an enforceable right to payment for work-in-process does not exist , revenue is recognized following the transfer of control of such products to the customer , which typically occurs upon shipment or delivery depending on the terms of the underlying contract . for contracts requiring over time revenue recognition , the selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be
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2,585 | the adjusted non-gaap results are identified using the term ยbase , ย for example , ยbase earnings.ย the company 's base financial performance measures are not in accordance with , nor an alternative for , measures conforming to generally accepted accounting principles and may be different from non-gaap measures used by other companies . in addition , these non-gaap measures are not based on any comprehensive set of accounting rules or principles . sonoco continues to provide all information required by gaap , but it believes that evaluating its ongoing operating results may not be as useful if an investor or other user is limited to reviewing only gaap financial measures . the company uses the non-gaap ยbaseย performance measures presented herein for internal planning and forecasting purposes , to evaluate its ongoing operations , and to evaluate the ultimate performance of management and each business unit against plan/forecast all the way up through the evaluation of the chief executive officer 's performance by the board of directors . in addition , these same non-gaap measures are used in determining incentive compensation for the entire management team and in providing earnings guidance to the investing community . sonoco management does not , nor does it suggest that investors should , consider these non-gaap financial measures in isolation from , or as a substitute for , financial information prepared in accordance with gaap . sonoco presents these non-gaap financial measures to provide users information to evaluate sonoco 's operating results in a manner similar to how management evaluates business performance . material limitations associated with the use of such measures are that they do not reflect all period costs included in operating expenses and may not reflect financial results that are comparable to financial results of other companies that present similar costs differently . furthermore , the calculations of these non-gaap measures are based on subjective determinations of management regarding the nature and classification of events and circumstances that the investor may find material and view differently . to compensate for these limitations , management believes that it is useful in understanding and analyzing the results of the business to review both gaap information which includes all of the items impacting financial results and the non-gaap measures that exclude certain elements , as described above . restructuring and restructuring-related asset impairment charges are a recurring item as sonoco 's restructuring programs usually require several years to fully implement and the company is continually seeking to take actions that could enhance its efficiency . although recurring , these charges are subject to significant fluctuations from period to period due to the varying levels of restructuring activity and the inherent imprecision in the estimates used to recognize the impairment of assets and the wide variety of costs and taxes associated with severance and termination benefits in the countries in which the restructuring actions occur . reconciliations of gaap to base results are presented on page 22 in conjunction with management 's discussion and analysis of the company 's results of operations . whenever reviewing a non-gaap financial measure , readers are encouraged to review the related reconciliation to fully understand how it differs from the related gaap measure . reconciliations are not provided for non-gaap measures related to future years due to the likely occurrence of one or more of the following , the timing and magnitude of which management is unable to reliably forecast : possible gains or losses on the sale of businesses or other assets , restructuring costs and restructuring-related impairment charges , acquisition-related form 10-k 18 sonoco 2016 annual report costs , and the tax effect of these items and or other income tax-related events . these items could have a significant impact on the company 's future gaap financial results . 2016 overview and 2017 outlook despite low growth rates in many of the company 's served markets and headwinds stemming from the continued strength of the u.s. dollar , sonoco reported solid results in 2016 , posting year-over-year improvements in all of our segments . operating profit in the consumer packaging segment improved $ 9.3 million , or 4 percent , year-over-year . although the operating profit improvement was lower in dollar terms , our protective solutions and display and packaging segments both posted double digit percentage growth in operating profits year over year . on a company-wide basis , gains from a positive overall price/cost relationship ( the relationship of the change in sales prices to the change in costs of materials , energy and freight ) , manufacturing productivity improvements and the benefit of lower pension expense were only somewhat offset by volume/mix , higher labor , maintenance and other operating costs , and the impact of foreign currency translation . as a result , consolidated gross profit margin for 2016 improved to 19.6 % compared to 18.7 % in 2015. current year net income attributable to sonoco ( gaap earnings ) improved $ 36.3 million year over year , or 14.5 % , and includes a $ 104.3 million net gain , $ 49.3 million after tax , related to the sale of the company 's rigid plastics blow molding operations . base earnings for the current year , which excludes this gain as well as certain other items of income and expense , as more fully described within this item under ยuse of non-gaap financial measuresย and reconciled within this item under ยreconciliations of gaap to non-gaap financial measures , ย improved $ 20.6 million , or 8.0 % , year over year . key expectations for 2016 were that overall volumes would increase by around 2 % , price/cost would be relatively flat , productivity would be strong enough to more than offset the expected inflation in labor and other costs , and there would be a benefit from lower pension and post-retirement expense . story_separator_special_tag replace_table_token_6_th ( 2 ) consists of the following : gain from the release of reserves related to the partial settlement of the fox river environmental claims totaling $ 32,543 ( $ 19,928 after tax ) ; income tax gains from the release of valuation allowances against net deferred tax assets in spain , canada , the netherlands , and the united kingdom totaling $ 9,563 ; legal and financial professional expenses associated with the company 's investigation of financial misstatements in mexico totaling $ 7,099 ( $ 4,380 after tax ) ; additional expenses related to executive life insurance policies totaling $ 2,188 ( $ 1,344 after tax ) ; and other charges totaling $ 976 ( $ 741 after tax ) . replace_table_token_7_th ( 3 ) consists of excess property insurance settlement gains on a facility in thailand damaged by a flood in 2011 totaling $ 2,568 ( $ 2,006 after tax ) and other non-base income tax benefits totaling $ 1,349. form 10-k 22 sonoco 2016 annual report results of operations ย 2016 versus 2015 for 2016 , net income attributable to sonoco ( gaap earnings ) was $ 286.4 million ( $ 2.81 per diluted share ) , compared with $ 250.1 million ( $ 2.44 per diluted share ) for 2015. current-year earnings reflect a net after-tax benefit of $ 9.2 million , consisting of the gain from the disposal of the company 's rigid plastics blow molding operations , partially offset by restructuring costs , asset impairment charges , acquisition-related expenses , and foreign income tax losses related to rate adjustments . net income in 2015 was negatively impacted by net after-tax charge of $ 6.5 million consisting of restructuring costs , asset impairment charges , legal and professional fees associated with the company 's investigation of financial misstatements in mexico , acquisition-related expenses , and excess executive life insurance expenses , partially offset by gains related to the final settlement of certain of the fox river environmental claims and income tax gains from the release of valuation allowances against certain net deferred tax assets . base earnings in 2016 were $ 277.2 million ( $ 2.72 per diluted share ) , compared with $ 256.7 million ( $ 2.51 per diluted share ) in 2015. both gaap and base earnings benefitted from a positive price/cost relationship , total productivity improvements and lower pension expense . these favorable factors were partially offset by volume declines , particularly in rigid paper north america , higher overhead , management incentive and other operating costs , and unfavorable changes in foreign currency translation . the effective tax rate on gaap earnings was 37.3 % , compared with 26.8 % in 2015 , and the effective tax rate on base earnings was 30.6 % , compared with 31.0 % in 2015. the main drivers of the unfavorable change in the rate on gaap earnings include taxes on the gain related to the current-year disposal of the rigid plastics blow molding operations and prior year income tax benefits related to the release of valuation allowances against deferred tax assets in certain international jurisdictions . the effective tax rate on base earnings was essentially flat year over year . consolidated net sales for 2016 were $ 4.8 billion , a $ 181 million , or 3.7 % , decrease from 2015. the components of the sales change were : ( $ in millions ) volume/mix $ 6 selling price ( 25 ) acquisitions and divestitures , net ( 25 ) foreign currency translation and other , net ( 137 ) total sales decrease $ ( 181 ) in order to enhance the meaningfulness of reported changes in volume/mix , a $ 63.7 million reduction in packaging center sales resulting from changes in the level of activity , primarily from the previously reported loss of contract packaging business in irapuato , mexico , is classified above as ยotherย due to the low/inconsistent correlation that typically exists between changes in revenue and changes in operating profit in our packaging center operations . sales volume/mix was essentially flat as organic volume growth and a favorable change in product mix in a number of our businesses offset volume declines in rigid paper containers . for the most part , price changes for the company 's products were driven by changes in the underlying raw materials costs . in 2016 , many of the company 's primary raw materials saw decreases in their market prices ; however , old corrugated containers ( occ ) saw a moderate increase year over year . this increase most directly affected the paper and industrial converted products segment while the decrease in other raw materials , mainly resins , most directly affected the consumer packaging segment . while the company 's 2016 and 2015 acquisitions added more than $ 20 million to comparable year-over-year sales , the impact was more than offset by comparable sales decreases related to dispositions , the most significant of which was the 2016 sale of the company 's rigid plastics blow molding operations . finally , foreign exchange rate changes decreased sales year-over-year as almost all of the foreign currencies in which the company conducts business weakened in relation to the u.s. dollar . total domestic sales were $ 3.1 billion , down 3.1 % from 2015 levels . international sales were $ 1.7 billion , down 4.6 % from 2015 with most of the decrease driven by the impact of foreign currency translation . additionally , sales in mexico were lower due to the loss of contract packaging business in irapuato , mexico . costs and expenses/margins cost of sales was down $ 189.5 million in 2016 , or 4.7 % , from the prior year primarily as a result of foreign currency translation , certain raw material price declines , disposed businesses , lower pension expense and productivity improvements , somewhat offset by the impact of acquisitions . partially offsetting these benefits were
| cash flow operating activities cash flow from operations totaled $ 398.7 million in 2016 and $ 452.9 million in 2015 , a year-over-year decrease of $ 54.3 million . although current net income increased year over year by $ 37.3 million , it includes a pre-tax gain of $ 108.7 million from the november 2016 sale of the company 's rigid plastics blow molding operations , the proceeds of which are reported as investing cash flows . current year net income also reflects lower pension and postretirement expenses , which together with higher pension and postretirement cash contributions resulted in a combined year-over-year decrease in operating cash flow of $ 22.7 million . more cash was consumed by working capital changes in 2016 compared with the prior year . the change in trade accounts receivable consumed $ 29.3 million more cash year over year . while the seasonal slowdown at the end of 2016 was greater than in 2015 , ending trade accounts receivable increased more in 2016 than in 2015 , due largely to current-year payment term extensions and isolated payment collection timing issues at the end of 2016. changes in inventory used $ 11.5 million of cash in 2016 versus $ 2.6 million in 2015 , a higher year-over-year use of cash of $ 8.9 million , primarily attributable to certain businesses engaging in raw material pre-buying at the end of 2016 in anticipation of upcoming price increases . the change in accounts payable provided $ 5.6 million of cash in 2016 compared with $ 12.3 million in 2015 , a lower year-over- sonoco 2016 annual report 25 form 10-k year provision of $ 6.8 million .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flow operating activities cash flow from operations totaled $ 398.7 million in 2016 and $ 452.9 million in 2015 , a year-over-year decrease of $ 54.3 million . although current net income increased year over year by $ 37.3 million , it includes a pre-tax gain of $ 108.7 million from the november 2016 sale of the company 's rigid plastics blow molding operations , the proceeds of which are reported as investing cash flows . current year net income also reflects lower pension and postretirement expenses , which together with higher pension and postretirement cash contributions resulted in a combined year-over-year decrease in operating cash flow of $ 22.7 million . more cash was consumed by working capital changes in 2016 compared with the prior year . the change in trade accounts receivable consumed $ 29.3 million more cash year over year . while the seasonal slowdown at the end of 2016 was greater than in 2015 , ending trade accounts receivable increased more in 2016 than in 2015 , due largely to current-year payment term extensions and isolated payment collection timing issues at the end of 2016. changes in inventory used $ 11.5 million of cash in 2016 versus $ 2.6 million in 2015 , a higher year-over-year use of cash of $ 8.9 million , primarily attributable to certain businesses engaging in raw material pre-buying at the end of 2016 in anticipation of upcoming price increases . the change in accounts payable provided $ 5.6 million of cash in 2016 compared with $ 12.3 million in 2015 , a lower year-over- sonoco 2016 annual report 25 form 10-k year provision of $ 6.8 million .
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Suspicious Activity Report : the adjusted non-gaap results are identified using the term ยbase , ย for example , ยbase earnings.ย the company 's base financial performance measures are not in accordance with , nor an alternative for , measures conforming to generally accepted accounting principles and may be different from non-gaap measures used by other companies . in addition , these non-gaap measures are not based on any comprehensive set of accounting rules or principles . sonoco continues to provide all information required by gaap , but it believes that evaluating its ongoing operating results may not be as useful if an investor or other user is limited to reviewing only gaap financial measures . the company uses the non-gaap ยbaseย performance measures presented herein for internal planning and forecasting purposes , to evaluate its ongoing operations , and to evaluate the ultimate performance of management and each business unit against plan/forecast all the way up through the evaluation of the chief executive officer 's performance by the board of directors . in addition , these same non-gaap measures are used in determining incentive compensation for the entire management team and in providing earnings guidance to the investing community . sonoco management does not , nor does it suggest that investors should , consider these non-gaap financial measures in isolation from , or as a substitute for , financial information prepared in accordance with gaap . sonoco presents these non-gaap financial measures to provide users information to evaluate sonoco 's operating results in a manner similar to how management evaluates business performance . material limitations associated with the use of such measures are that they do not reflect all period costs included in operating expenses and may not reflect financial results that are comparable to financial results of other companies that present similar costs differently . furthermore , the calculations of these non-gaap measures are based on subjective determinations of management regarding the nature and classification of events and circumstances that the investor may find material and view differently . to compensate for these limitations , management believes that it is useful in understanding and analyzing the results of the business to review both gaap information which includes all of the items impacting financial results and the non-gaap measures that exclude certain elements , as described above . restructuring and restructuring-related asset impairment charges are a recurring item as sonoco 's restructuring programs usually require several years to fully implement and the company is continually seeking to take actions that could enhance its efficiency . although recurring , these charges are subject to significant fluctuations from period to period due to the varying levels of restructuring activity and the inherent imprecision in the estimates used to recognize the impairment of assets and the wide variety of costs and taxes associated with severance and termination benefits in the countries in which the restructuring actions occur . reconciliations of gaap to base results are presented on page 22 in conjunction with management 's discussion and analysis of the company 's results of operations . whenever reviewing a non-gaap financial measure , readers are encouraged to review the related reconciliation to fully understand how it differs from the related gaap measure . reconciliations are not provided for non-gaap measures related to future years due to the likely occurrence of one or more of the following , the timing and magnitude of which management is unable to reliably forecast : possible gains or losses on the sale of businesses or other assets , restructuring costs and restructuring-related impairment charges , acquisition-related form 10-k 18 sonoco 2016 annual report costs , and the tax effect of these items and or other income tax-related events . these items could have a significant impact on the company 's future gaap financial results . 2016 overview and 2017 outlook despite low growth rates in many of the company 's served markets and headwinds stemming from the continued strength of the u.s. dollar , sonoco reported solid results in 2016 , posting year-over-year improvements in all of our segments . operating profit in the consumer packaging segment improved $ 9.3 million , or 4 percent , year-over-year . although the operating profit improvement was lower in dollar terms , our protective solutions and display and packaging segments both posted double digit percentage growth in operating profits year over year . on a company-wide basis , gains from a positive overall price/cost relationship ( the relationship of the change in sales prices to the change in costs of materials , energy and freight ) , manufacturing productivity improvements and the benefit of lower pension expense were only somewhat offset by volume/mix , higher labor , maintenance and other operating costs , and the impact of foreign currency translation . as a result , consolidated gross profit margin for 2016 improved to 19.6 % compared to 18.7 % in 2015. current year net income attributable to sonoco ( gaap earnings ) improved $ 36.3 million year over year , or 14.5 % , and includes a $ 104.3 million net gain , $ 49.3 million after tax , related to the sale of the company 's rigid plastics blow molding operations . base earnings for the current year , which excludes this gain as well as certain other items of income and expense , as more fully described within this item under ยuse of non-gaap financial measuresย and reconciled within this item under ยreconciliations of gaap to non-gaap financial measures , ย improved $ 20.6 million , or 8.0 % , year over year . key expectations for 2016 were that overall volumes would increase by around 2 % , price/cost would be relatively flat , productivity would be strong enough to more than offset the expected inflation in labor and other costs , and there would be a benefit from lower pension and post-retirement expense . story_separator_special_tag replace_table_token_6_th ( 2 ) consists of the following : gain from the release of reserves related to the partial settlement of the fox river environmental claims totaling $ 32,543 ( $ 19,928 after tax ) ; income tax gains from the release of valuation allowances against net deferred tax assets in spain , canada , the netherlands , and the united kingdom totaling $ 9,563 ; legal and financial professional expenses associated with the company 's investigation of financial misstatements in mexico totaling $ 7,099 ( $ 4,380 after tax ) ; additional expenses related to executive life insurance policies totaling $ 2,188 ( $ 1,344 after tax ) ; and other charges totaling $ 976 ( $ 741 after tax ) . replace_table_token_7_th ( 3 ) consists of excess property insurance settlement gains on a facility in thailand damaged by a flood in 2011 totaling $ 2,568 ( $ 2,006 after tax ) and other non-base income tax benefits totaling $ 1,349. form 10-k 22 sonoco 2016 annual report results of operations ย 2016 versus 2015 for 2016 , net income attributable to sonoco ( gaap earnings ) was $ 286.4 million ( $ 2.81 per diluted share ) , compared with $ 250.1 million ( $ 2.44 per diluted share ) for 2015. current-year earnings reflect a net after-tax benefit of $ 9.2 million , consisting of the gain from the disposal of the company 's rigid plastics blow molding operations , partially offset by restructuring costs , asset impairment charges , acquisition-related expenses , and foreign income tax losses related to rate adjustments . net income in 2015 was negatively impacted by net after-tax charge of $ 6.5 million consisting of restructuring costs , asset impairment charges , legal and professional fees associated with the company 's investigation of financial misstatements in mexico , acquisition-related expenses , and excess executive life insurance expenses , partially offset by gains related to the final settlement of certain of the fox river environmental claims and income tax gains from the release of valuation allowances against certain net deferred tax assets . base earnings in 2016 were $ 277.2 million ( $ 2.72 per diluted share ) , compared with $ 256.7 million ( $ 2.51 per diluted share ) in 2015. both gaap and base earnings benefitted from a positive price/cost relationship , total productivity improvements and lower pension expense . these favorable factors were partially offset by volume declines , particularly in rigid paper north america , higher overhead , management incentive and other operating costs , and unfavorable changes in foreign currency translation . the effective tax rate on gaap earnings was 37.3 % , compared with 26.8 % in 2015 , and the effective tax rate on base earnings was 30.6 % , compared with 31.0 % in 2015. the main drivers of the unfavorable change in the rate on gaap earnings include taxes on the gain related to the current-year disposal of the rigid plastics blow molding operations and prior year income tax benefits related to the release of valuation allowances against deferred tax assets in certain international jurisdictions . the effective tax rate on base earnings was essentially flat year over year . consolidated net sales for 2016 were $ 4.8 billion , a $ 181 million , or 3.7 % , decrease from 2015. the components of the sales change were : ( $ in millions ) volume/mix $ 6 selling price ( 25 ) acquisitions and divestitures , net ( 25 ) foreign currency translation and other , net ( 137 ) total sales decrease $ ( 181 ) in order to enhance the meaningfulness of reported changes in volume/mix , a $ 63.7 million reduction in packaging center sales resulting from changes in the level of activity , primarily from the previously reported loss of contract packaging business in irapuato , mexico , is classified above as ยotherย due to the low/inconsistent correlation that typically exists between changes in revenue and changes in operating profit in our packaging center operations . sales volume/mix was essentially flat as organic volume growth and a favorable change in product mix in a number of our businesses offset volume declines in rigid paper containers . for the most part , price changes for the company 's products were driven by changes in the underlying raw materials costs . in 2016 , many of the company 's primary raw materials saw decreases in their market prices ; however , old corrugated containers ( occ ) saw a moderate increase year over year . this increase most directly affected the paper and industrial converted products segment while the decrease in other raw materials , mainly resins , most directly affected the consumer packaging segment . while the company 's 2016 and 2015 acquisitions added more than $ 20 million to comparable year-over-year sales , the impact was more than offset by comparable sales decreases related to dispositions , the most significant of which was the 2016 sale of the company 's rigid plastics blow molding operations . finally , foreign exchange rate changes decreased sales year-over-year as almost all of the foreign currencies in which the company conducts business weakened in relation to the u.s. dollar . total domestic sales were $ 3.1 billion , down 3.1 % from 2015 levels . international sales were $ 1.7 billion , down 4.6 % from 2015 with most of the decrease driven by the impact of foreign currency translation . additionally , sales in mexico were lower due to the loss of contract packaging business in irapuato , mexico . costs and expenses/margins cost of sales was down $ 189.5 million in 2016 , or 4.7 % , from the prior year primarily as a result of foreign currency translation , certain raw material price declines , disposed businesses , lower pension expense and productivity improvements , somewhat offset by the impact of acquisitions . partially offsetting these benefits were
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2,586 | . for 2016 , the return on average equity was 9.72 % , compared to 4.97 % for 2015. the return on average assets was 1.07 % for 2016 and 0.54 % for 2015. the annualized return on average assets and return on average equity excluding merger related expenses were 1.09 % and 9.92 % in 2016 , compared to 0.87 % and 7.95 % in 2015 , respectively . the results for 2016 included $ 73 thousand in gains on sales of securities , compared to $ 94 thousand in 2015. in addition , 2016 results include $ 238 thousand in gains from the sale of land and buildings . on june 1 , 2016 , the bank completed the acquisition of bowers , and merged bowers with insurance , the bank 's wholly-owned insurance agency subsidiary . bowers will continue to operate out of its cortland , ohio location and will enhance the company 's current product lineup , and offer broader options of commercial , farm , home , and auto property/casualty insurance carriers to meet all the needs of all the company 's customers . the transaction involved both cash and 123,280 shares of stock totaling $ 3.2 million , including up to $ 1.2 million of future payments , contingent upon bowers meeting performance targets . goodwill of $ 1.8 million , which is recorded on the balance sheet , arising from the acquisition consisted largely of synergies and the cost savings resulting from the combining of the companies . the goodwill was determined not to be deductible for income tax purposes . the fair value of other intangible assets of $ 1.6 million is related to client relationships , company name and noncompetition agreements . 30 on june 19 , 2015 , the company completed the acquisition of all outstanding stock of national bancshares corpora tion ( โ nboh โ ) , the parent company of first national bank of orrville ( โ first national bank โ ) . the transaction involved both cash and 7,262,955 shares of stock totaling $ 74.8 million . first national bank branches became branches of farmers bank . pursuant to the agreement , each shareholder of nboh received either $ 32.15 per share in cash or 4.034 shares of farmers ' common stock , subject to an overall limitation of 80 % of the shares of nboh being exchanged for stock and 20 % for cash . on october 1 , 2015 , the company completed the acquisition of tri-state 1st banc , inc. ( โ tri-state โ ) , the parent company of 1 st national community bank ( โ fncb โ ) . pursuant to the terms of the merger agreement , common shareholders of tri-state were entitled to receive 1.747 shares of farmers ' common stock , or $ 14.20 in cash , for each common share , without par value , of tri-state ( the โ tri-state common shares โ ) , subject to proration provisions specified in the merger agreement that provide for a targeted aggregate split of total consideration consisting of 75 % company common shares and 25 % cash . preferred shareholders of tri-state received $ 13.60 in cash for each share of series a preferred stock , without par value , of tri-state . total consideration actually paid was in the form of $ 3.6 million in cash and $ 10.7 million worth of the company 's stock on october 1 , 2015. net interest income net interest income , the principal source of the company 's earnings , represents the difference between interest income on interest-earning assets and interest expense on interest-bearing liabilities . for 2016 , taxable equivalent net interest income increased $ 18.8 million , or 36.3 % , from 2015. interest-earning assets averaged $ 1.761 billion during 2016 , increasing $ 398.6 million compared to 2015. the company 's interest-bearing liabilities increased 27.8 % from $ 1.057 billion in 2015 to $ 1.351 billion in 2016. the two previously mentioned acquisitions increased interest-earning assets by $ 647.5 million and interest-bearing liabilities by $ 605.5 million at their respective completion dates . the company finances its earning assets with a combination of interest-bearing and interest-free funds . the interest-bearing funds are composed of deposits , short-term borrowings and long-term debt . interest paid for the use of these funds is the second factor in the net interest income equation . interest-free funds , such as demand deposits and stockholders ' equity , require no interest expense and , therefore , contribute significantly to net interest income . the profit margin , or spread , on invested funds is a key performance measure . the company monitors two key performance indicators - net interest spread and net interest margin . the net interest spread represents the difference between the average rate earned on interest-earning assets and the average rate paid on interest-bearing liabilities . the net interest spread in 2016 was 3.94 % , increasing from 3.72 % in 2015. the net interest margin represents the overall profit margin โ net interest income as a percentage of total interest-earning assets . this performance indicator gives effect to interest earned for all investable funds including the substantial volume of interest-free funds . for 2016 , the net interest margin , measured on a fully taxable equivalent basis , increased to 4.01 % , compared to 3.81 % in 2015. the net interest margin , excluding the impact of amortization and accretion from the current year acquisitions , improved 19 basis points to 3.95 % for the year ended december 31 , 2016. the accretion added $ 98 thousand per month during 2016 and will continue over the next several years . the increase in net interest margin is largely a result of interest bearing liabilities repricing at lower rates and the shifting of assets from investment securities to higher interest income rates of loans . story_separator_special_tag farmers typically obtains an external appraisal to validate its internal collateral valuation as soon as is practical and adjusts the associated specific loss reserve , if necessary . 37 the rat io of the allowance for loan losses to non-performing loans at december 31 , 2016 improved to 132.83 % , compared to 85.96 % at december 31 , 2015. nonaccrual agricultural loans were the only category that increased during the year , from $ 73 thousand at decemb er 31 , 2015 to $ 686 thousand , or 0.53 % of total agricultural loans at december 31 , 2016. the balance in the allowance for loan losses increased in 2016 , with the increased loan portfolio size , to $ 10.9 million compared to $ 9.0 million in 2015. replace_table_token_14_th the company has forgone interest income of approximately $ 553 thousand from nonaccrual loans as of december 31 , 2016 that would have been earned , over the life of the loans , if all loans had performed in accordance with their original terms . net charge-offs as a percentage of average loans outstanding decreased from 0.23 % for 2015 to 0.15 % for 2016 as a result of the larger loan portfolio and improved loan quality . net charge-offs decreased from $ 2.2 million in 2015 to $ 2.0 million in 2016. each of the loan types experienced a decrease in gross charge-offs in comparing the two periods . the following table summarizes the company 's allocation of the allowance for loan losses for the past five years : replace_table_token_15_th the allowance allocated to each of the four loan categories should not be interpreted as an indication that charge-offs in 2017 will occur in the same proportions or that the allocation indicates future charge-off trends . the allowance allocated to the one-to-four family real estate loan category and the consumer loan category is based upon 38 the company 's allowance methodology for homogeneous loans , and increases and decreases in the balances of those portfolios . in previous years , the indirect installment loan category has represented the largest percentage of loan losses . the consumer loan category represents approximately 15.3 % of total loans and in 2016 , the net loan losses accounted for 69.4 % of the losses of the entire loan portfolio . for the commer cial loan category , which represents 17.2 % of the total loan portfolio , management relies on the bank 's internal loan review procedures and allocates accordingly based on loan classifications . the net charge-offs in the commercial real estate portfolio , w hich represents 37.4 % of the total portfolio , was $ 334 thousand for 2016. there were no loans other than those identified above , that management has known information about possible credit problems of borrowers and their ability to comply with the loan repayment terms . management is actively monitoring certain borrowers ' financial condition and loans which management wants to more closely monitor due to special circumstances . these loans and their potential loss exposure have been considered in management 's analysis of the adequacy of the allowance for loan losses . loan commitments and lines of credit in the normal course of business , the bank has extended various commitments for credit . commitments for mortgages , revolving lines of credit and letters of credit generally are extended for a period of one month up to one year . normally , no fees are charged on any unused portion , but an annual fee of two percent is charged for the issuance of a letter of credit . as of december 31 , 2016 , there were no concentrations of loans exceeding 10 % of total loans that are not disclosed as a category of loans . as of that date , there were also no other interest-earning assets that are either nonaccrual , past due , restructured or non-performing . investment securities the investment securities portfolio decreased $ 24.3 million in 2016. this decrease resulted from some maturing securities not being reinvested and used instead to fund loan portfolio growth . the company 's investment strategy is to maintain a diverse investment security portfolio with a higher concentration in mortgage-backed securities that are issued by u.s. government sponsored enterprises and tax-free municipal securities . farmers sold $ 11.5 million in securities in 2016 , resulting in net security gains of $ 73 thousand . farmers recognized market appreciation on faster paying mortgage-backed securities and lower rated municipal securities , and reinvested in new mortgage-backed securities and higher rated municipal securities to further diversify the securities portfolio . during 2014 , the company created the investments subsidiary to hold municipal securities and take advantage of more favorable tax treatment . at december 31 , 2016 , the investments entity had a balance of $ 76.9 million in municipal securities . farmers ' objective in managing the investment portfolio is to preserve and enhance corporate liquidity through investment in primarily short and intermediate term securities which are readily marketable and of the highest credit quality . in general , investment in securities is limited to those funds the bank feels it has in excess of funds used to satisfy loan demand and operating considerations . the volcker rule places limits on the trading activity of insured depository institutions and entities affiliated with a depository institution , subject to certain exceptions . the bank does not engage in any of the trading activities or own any of the types of funds regulated by the volcker rule . mortgage-backed securities are created by the pooling of mortgages and issuance of a security . mortgage-backed securities typically represent a participation interest in a pool of single-family or multi-family mortgages . prepayment estimates for mortgage-backed securities are performed at purchase to ensure that prepayment assumptions are reasonable considering the underlying collateral for the mortgage-backed securities at issue and current mortgage interest rates and to determine the yield and
| liquidity farmers maintains , in the opinion of management , liquidity sufficient to satisfy depositors ' requirements and meet the credit needs of customers . the company depends on its ability to maintain its market share of deposits as well as acquiring new funds . the company 's ability to attract deposits and borrow funds depends in large measure on its profitability , capitalization and overall financial condition . principal sources of liquidity include assets considered relatively liquid , such as short-term investment securities , federal funds sold and cash and due from banks . along with its liquid assets , farmers has additional sources of liquidity available which help to insure that adequate funds are available as needed . these other sources include , but are not limited to , loan repayments , the ability to obtain deposits through the adjustment of interest rates and the purchasing of federal funds and borrowings on approved lines of credit at two major domestic banks . at december 31 , 2016 , farmers had not borrowed against these lines of credit . management feels that its liquidity position is more than adequate and will continue to monitor the position on a monthly basis . the company also has additional borrowing capacity with the fhlb , as well as access to the federal reserve discount window , which provides an additional source of funds . the company views its membership in the fhlb as a solid source of liquidity . as of december 31 , 2016 , the bank is eligible to borrow an additional $ 144 million from the fhlb under various fixed rate and variable rate credit facilities . advances outstanding from the fhlb at december 31 , 2016 amounted to $ 132.9 million . farmers ' primary investing activities are originating loans and purchasing securities .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity farmers maintains , in the opinion of management , liquidity sufficient to satisfy depositors ' requirements and meet the credit needs of customers . the company depends on its ability to maintain its market share of deposits as well as acquiring new funds . the company 's ability to attract deposits and borrow funds depends in large measure on its profitability , capitalization and overall financial condition . principal sources of liquidity include assets considered relatively liquid , such as short-term investment securities , federal funds sold and cash and due from banks . along with its liquid assets , farmers has additional sources of liquidity available which help to insure that adequate funds are available as needed . these other sources include , but are not limited to , loan repayments , the ability to obtain deposits through the adjustment of interest rates and the purchasing of federal funds and borrowings on approved lines of credit at two major domestic banks . at december 31 , 2016 , farmers had not borrowed against these lines of credit . management feels that its liquidity position is more than adequate and will continue to monitor the position on a monthly basis . the company also has additional borrowing capacity with the fhlb , as well as access to the federal reserve discount window , which provides an additional source of funds . the company views its membership in the fhlb as a solid source of liquidity . as of december 31 , 2016 , the bank is eligible to borrow an additional $ 144 million from the fhlb under various fixed rate and variable rate credit facilities . advances outstanding from the fhlb at december 31 , 2016 amounted to $ 132.9 million . farmers ' primary investing activities are originating loans and purchasing securities .
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Suspicious Activity Report : . for 2016 , the return on average equity was 9.72 % , compared to 4.97 % for 2015. the return on average assets was 1.07 % for 2016 and 0.54 % for 2015. the annualized return on average assets and return on average equity excluding merger related expenses were 1.09 % and 9.92 % in 2016 , compared to 0.87 % and 7.95 % in 2015 , respectively . the results for 2016 included $ 73 thousand in gains on sales of securities , compared to $ 94 thousand in 2015. in addition , 2016 results include $ 238 thousand in gains from the sale of land and buildings . on june 1 , 2016 , the bank completed the acquisition of bowers , and merged bowers with insurance , the bank 's wholly-owned insurance agency subsidiary . bowers will continue to operate out of its cortland , ohio location and will enhance the company 's current product lineup , and offer broader options of commercial , farm , home , and auto property/casualty insurance carriers to meet all the needs of all the company 's customers . the transaction involved both cash and 123,280 shares of stock totaling $ 3.2 million , including up to $ 1.2 million of future payments , contingent upon bowers meeting performance targets . goodwill of $ 1.8 million , which is recorded on the balance sheet , arising from the acquisition consisted largely of synergies and the cost savings resulting from the combining of the companies . the goodwill was determined not to be deductible for income tax purposes . the fair value of other intangible assets of $ 1.6 million is related to client relationships , company name and noncompetition agreements . 30 on june 19 , 2015 , the company completed the acquisition of all outstanding stock of national bancshares corpora tion ( โ nboh โ ) , the parent company of first national bank of orrville ( โ first national bank โ ) . the transaction involved both cash and 7,262,955 shares of stock totaling $ 74.8 million . first national bank branches became branches of farmers bank . pursuant to the agreement , each shareholder of nboh received either $ 32.15 per share in cash or 4.034 shares of farmers ' common stock , subject to an overall limitation of 80 % of the shares of nboh being exchanged for stock and 20 % for cash . on october 1 , 2015 , the company completed the acquisition of tri-state 1st banc , inc. ( โ tri-state โ ) , the parent company of 1 st national community bank ( โ fncb โ ) . pursuant to the terms of the merger agreement , common shareholders of tri-state were entitled to receive 1.747 shares of farmers ' common stock , or $ 14.20 in cash , for each common share , without par value , of tri-state ( the โ tri-state common shares โ ) , subject to proration provisions specified in the merger agreement that provide for a targeted aggregate split of total consideration consisting of 75 % company common shares and 25 % cash . preferred shareholders of tri-state received $ 13.60 in cash for each share of series a preferred stock , without par value , of tri-state . total consideration actually paid was in the form of $ 3.6 million in cash and $ 10.7 million worth of the company 's stock on october 1 , 2015. net interest income net interest income , the principal source of the company 's earnings , represents the difference between interest income on interest-earning assets and interest expense on interest-bearing liabilities . for 2016 , taxable equivalent net interest income increased $ 18.8 million , or 36.3 % , from 2015. interest-earning assets averaged $ 1.761 billion during 2016 , increasing $ 398.6 million compared to 2015. the company 's interest-bearing liabilities increased 27.8 % from $ 1.057 billion in 2015 to $ 1.351 billion in 2016. the two previously mentioned acquisitions increased interest-earning assets by $ 647.5 million and interest-bearing liabilities by $ 605.5 million at their respective completion dates . the company finances its earning assets with a combination of interest-bearing and interest-free funds . the interest-bearing funds are composed of deposits , short-term borrowings and long-term debt . interest paid for the use of these funds is the second factor in the net interest income equation . interest-free funds , such as demand deposits and stockholders ' equity , require no interest expense and , therefore , contribute significantly to net interest income . the profit margin , or spread , on invested funds is a key performance measure . the company monitors two key performance indicators - net interest spread and net interest margin . the net interest spread represents the difference between the average rate earned on interest-earning assets and the average rate paid on interest-bearing liabilities . the net interest spread in 2016 was 3.94 % , increasing from 3.72 % in 2015. the net interest margin represents the overall profit margin โ net interest income as a percentage of total interest-earning assets . this performance indicator gives effect to interest earned for all investable funds including the substantial volume of interest-free funds . for 2016 , the net interest margin , measured on a fully taxable equivalent basis , increased to 4.01 % , compared to 3.81 % in 2015. the net interest margin , excluding the impact of amortization and accretion from the current year acquisitions , improved 19 basis points to 3.95 % for the year ended december 31 , 2016. the accretion added $ 98 thousand per month during 2016 and will continue over the next several years . the increase in net interest margin is largely a result of interest bearing liabilities repricing at lower rates and the shifting of assets from investment securities to higher interest income rates of loans . story_separator_special_tag farmers typically obtains an external appraisal to validate its internal collateral valuation as soon as is practical and adjusts the associated specific loss reserve , if necessary . 37 the rat io of the allowance for loan losses to non-performing loans at december 31 , 2016 improved to 132.83 % , compared to 85.96 % at december 31 , 2015. nonaccrual agricultural loans were the only category that increased during the year , from $ 73 thousand at decemb er 31 , 2015 to $ 686 thousand , or 0.53 % of total agricultural loans at december 31 , 2016. the balance in the allowance for loan losses increased in 2016 , with the increased loan portfolio size , to $ 10.9 million compared to $ 9.0 million in 2015. replace_table_token_14_th the company has forgone interest income of approximately $ 553 thousand from nonaccrual loans as of december 31 , 2016 that would have been earned , over the life of the loans , if all loans had performed in accordance with their original terms . net charge-offs as a percentage of average loans outstanding decreased from 0.23 % for 2015 to 0.15 % for 2016 as a result of the larger loan portfolio and improved loan quality . net charge-offs decreased from $ 2.2 million in 2015 to $ 2.0 million in 2016. each of the loan types experienced a decrease in gross charge-offs in comparing the two periods . the following table summarizes the company 's allocation of the allowance for loan losses for the past five years : replace_table_token_15_th the allowance allocated to each of the four loan categories should not be interpreted as an indication that charge-offs in 2017 will occur in the same proportions or that the allocation indicates future charge-off trends . the allowance allocated to the one-to-four family real estate loan category and the consumer loan category is based upon 38 the company 's allowance methodology for homogeneous loans , and increases and decreases in the balances of those portfolios . in previous years , the indirect installment loan category has represented the largest percentage of loan losses . the consumer loan category represents approximately 15.3 % of total loans and in 2016 , the net loan losses accounted for 69.4 % of the losses of the entire loan portfolio . for the commer cial loan category , which represents 17.2 % of the total loan portfolio , management relies on the bank 's internal loan review procedures and allocates accordingly based on loan classifications . the net charge-offs in the commercial real estate portfolio , w hich represents 37.4 % of the total portfolio , was $ 334 thousand for 2016. there were no loans other than those identified above , that management has known information about possible credit problems of borrowers and their ability to comply with the loan repayment terms . management is actively monitoring certain borrowers ' financial condition and loans which management wants to more closely monitor due to special circumstances . these loans and their potential loss exposure have been considered in management 's analysis of the adequacy of the allowance for loan losses . loan commitments and lines of credit in the normal course of business , the bank has extended various commitments for credit . commitments for mortgages , revolving lines of credit and letters of credit generally are extended for a period of one month up to one year . normally , no fees are charged on any unused portion , but an annual fee of two percent is charged for the issuance of a letter of credit . as of december 31 , 2016 , there were no concentrations of loans exceeding 10 % of total loans that are not disclosed as a category of loans . as of that date , there were also no other interest-earning assets that are either nonaccrual , past due , restructured or non-performing . investment securities the investment securities portfolio decreased $ 24.3 million in 2016. this decrease resulted from some maturing securities not being reinvested and used instead to fund loan portfolio growth . the company 's investment strategy is to maintain a diverse investment security portfolio with a higher concentration in mortgage-backed securities that are issued by u.s. government sponsored enterprises and tax-free municipal securities . farmers sold $ 11.5 million in securities in 2016 , resulting in net security gains of $ 73 thousand . farmers recognized market appreciation on faster paying mortgage-backed securities and lower rated municipal securities , and reinvested in new mortgage-backed securities and higher rated municipal securities to further diversify the securities portfolio . during 2014 , the company created the investments subsidiary to hold municipal securities and take advantage of more favorable tax treatment . at december 31 , 2016 , the investments entity had a balance of $ 76.9 million in municipal securities . farmers ' objective in managing the investment portfolio is to preserve and enhance corporate liquidity through investment in primarily short and intermediate term securities which are readily marketable and of the highest credit quality . in general , investment in securities is limited to those funds the bank feels it has in excess of funds used to satisfy loan demand and operating considerations . the volcker rule places limits on the trading activity of insured depository institutions and entities affiliated with a depository institution , subject to certain exceptions . the bank does not engage in any of the trading activities or own any of the types of funds regulated by the volcker rule . mortgage-backed securities are created by the pooling of mortgages and issuance of a security . mortgage-backed securities typically represent a participation interest in a pool of single-family or multi-family mortgages . prepayment estimates for mortgage-backed securities are performed at purchase to ensure that prepayment assumptions are reasonable considering the underlying collateral for the mortgage-backed securities at issue and current mortgage interest rates and to determine the yield and
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2,587 | the north american class 5-7 production has steadily increased from 201,000 in 2013 to 237,000 in 2015. according to a january 2016 report by act research , north american class 5-7 production levels are expected to be relatively flat in 2016 at 233,000 and gradually increase to 273,000 in 2020. we believe the demand for north american class 5-7 in 2016 will be relatively stable . in 2015 , approximately 49 % of our revenue was generated from sales to north american md/hd truck oems . our remaining revenue in 2015 was primarily derived from sales to oems in the global construction equipment market , aftermarket , oe service organizations , military market and other commercial vehicle specialty markets . demand for our products is driven to a significant degree by preferences of the end-user of the commercial vehicle , particularly with respect to heavy-duty trucks . unlike the automotive industry , commercial vehicle oems generally afford the end-user the ability to specify many of the component parts that will be used to manufacture the commercial vehicle , including a wide variety of cab interior styles and colors , the brand and type of seats , type of seat fabric and color and specific interior styling . in addition , certain of our products are only utilized in north american class 8 market , such as our storage systems , sleeper boxes and privacy curtains , and , as a result , changes in demand for heavy-duty trucks or the mix of options on a vehicle can have a greater impact on our business than changes in the overall demand for commercial vehicles . to the extent that demand for higher content vehicles increases or decreases , our revenues and gross profit will be impacted positively or negatively . demand for our construction products is dependent on the vehicle production and demand for new commercial vehicles in the global construction equipment market and generally follows certain economic conditions around the world . our products are primarily used in the medium-and heavy-duty construction equipment markets ( weighing over 12 metric tons ) . demand in the medium-and heavy-duty construction equipment market is typically related to the level of larger scale infrastructure development projects such as highways , dams , harbors , hospitals , airports and industrial development , as well as activity in the mining , forestry and other raw material based industries . we believe there is a bias toward continuing softness in global construction and agriculture markets in 2016. we generally compete for new business at the beginning of the development of a new vehicle platform and upon the redesign of existing programs . new platform development generally begins at least one to three years before the marketing of such models 31 by our customers . contract durations for commercial vehicle products generally extend for the entire life of the platform , which is typically five to seven years . our long-term strategy our long-term strategic plan is a roadmap by product , geographic region , and end market to guide resource allocation and other decision making to achieve our long-term goals . to that end , we evaluated our opportunity to grow organically by end market . we currently believe we have approximately 5 % market share of the addressable global truck , bus , construction and agriculture end markets . accordingly , we believe we have significant opportunity to grow organically in our end markets . we evaluated our product portfolio in the context of this organic market growth opportunity and our ability to win in the marketplace . our core products are seats , trim and wire harnesses and our complementary products include structures , wipers , mirrors and office seats . we expect to realize some geographic diversification over the planned period toward asia-pacific . we also expect to realize some end market diversification more weighted toward the agriculture market , and to a lesser extent the construction market . we intend to allocate resources consistent with our strategic plan ; and more specifically , consistent with our core and complementary product portfolio , geographic region and end market diversification objectives . we periodically evaluate our long-term strategic plan in response to significant changes in our business environment and other factors . although our long-term strategic plan is an organic growth plan , we will consider opportunistic acquisitions to supplement our product portfolio , and to enhance our ability to serve our customers in our geographic end markets . strategic footprint we continuously review our manufacturing footprint to ensure we efficiently utilize our resources . in december 2015 , management announced a restructuring and cost reduction plan , which is expected to lower operating costs by $ 8 to $ 12 million annually when fully implemented as of the end of 2017. pre-tax costs associated with these actions , including associated capital investment , were $ 0.8 million in 2015 and are expected to be $ 6 to $ 8 million in 2016 and $ 4 to $ 6 million in 2017. the majority of these costs are employee-related separation costs and other costs associated with the transfer of production and subsequent closure of facilities . recently issued accounting pronouncements see note 2 to our consolidated financial statements in item 8 in this annual report on form 10-k for a description of recently issued and or adopted accounting pronouncements . consolidated results of operations the table below sets forth certain operating data expressed as a percentage of revenues for the periods indicated ( dollars are in thousands ) : replace_table_token_8_th 32 year ended december 31 , 2015 compared to year ended december 31 , 2014 c onsolidated r esults revenues . on a consolidated basis , revenue decreased $ 14.4 million , or 1.7 % , to $ 825.3 million for the year ended december 31 , 2015 compared to $ 839.7 million for the year ended december 31 , 2014 . story_separator_special_tag the increase in gtb segment revenues is primarily a result of : a $ 49.5 million , or 15 % , increase primarily in oem north american md/hd truck revenues ; a $ 2.2 million , or 3 % , increase in aftermarket revenues ; a $ 3.9 million , or 13 % , increase in oem bus revenues ; and a $ 5.3 million , or 13 % , increase in revenues from other markets . in 2015 , the classification of some sales by end market were changed for certain customers . these classification changes were applied to prior periods above to conform to current year presentation . gross profit . gtb segment gross profit increased $ 21.9 million , or 36.8 % , to $ 81.4 million for the year ended december 31 , 2014 from $ 59.5 million for the year ended december 31 , 2013 . included in gross profit is cost of revenues which consists primarily of raw material and purchased component costs for our products , wages and benefits for our employees and overhead expenses such as manufacturing supplies , facility rent and utilities costs related to our operations . cost of revenues increased $ 39.0 million , or 9.4 % , as a result of an increase in raw material and purchased component costs of $ 31.7 million , salaries and benefits of $ 4.7 million and overhead of $ 2.6 million . as a percentage of revenues , gross profit increased to 15.2 % for the year ended december 31 , 2014 from 12.6 % for the year ended december 31 , 2013 . the increase in gross profit resulted from the increase in sales volume as well as non-recurrence of machinery and equipment and it asset impairments incurred in 2013 amounting to $ 2.7 million . this was offset by closure costs of $ 1.3 million associated with our tigard , oregon facility and an impairment charge of $ 0.8 million resulting from the sale of our norwalk , ohio facility . selling , general and administrative expenses . selling , general and administrative expenses consist primarily of wages and benefits and other overhead expenses such as marketing , travel , legal , audit , rent and utilities costs , which are not directly or indirectly associated with the manufacturing of our products . gtb segment selling , general and administrative expenses increased $ 0.9 million , or 3.0 % , to $ 28.9 million for the year ended december 31 , 2014 from $ 28.0 million for the year ended december 31 , 2013 . the increase in selling , general and administrative expenses is primarily the result of additional spending incurred in 2014 to support enhancements in the manner to which we go to market . global construction and agriculture segment results 36 replace_table_token_12_th revenue . gca segment revenues increased $ 34.4 million , or 12.1 % , to $ 317.2 million for the year ended december 31 , 2014 from $ 282.8 million for the year ended december 31 , 2013 . the increase in gca segment revenue is primarily a result of : a $ 24.7 million , or 17 % , increase in north american oem construction revenue ; a $ 4.4 million , or 210 % , increase in agriculture revenues ; and a $ 5.4 million , or 4 % , increase in revenues from other markets . in 2015 , the classification of some sales by end market were changed for certain customers . these classification changes were applied to prior periods above to conform to current year presentation . gross profit . gca segment gross profit increased $ 5.2 million , or 21.4 % , to $ 29.6 million for the year ended december 31 , 2014 from $ 24.4 million for the year ended december 31 , 2013 . included in gross profit is cost of revenues which consists primarily of raw material and purchased component costs for our products , wages and benefits for our employees and overhead expenses such as manufacturing supplies , facility rent and utilities costs related to our operations . cost of revenues increased $ 29.1 million , or 11.3 % , as a result of an increase in raw material and purchased component costs of $ 23.5 million , salaries and benefits of $ 1.2 million and overhead of $ 4.4 million . as a percentage of revenues , gross profit increased to 9.3 % for the year ended december 31 , 2014 from 8.6 % for the year ended december 31 , 2013 . the increase in gross profit resulted from the increase in sales volume , partially offset by foreign currency exchange transaction impacts of $ 1.0 million . selling , general and administrative expenses . selling , general and administrative expenses consist primarily of wages and benefits and other overhead expenses such as marketing , travel , legal , audit , rent and utilities costs , which are not directly or indirectly associated with the manufacturing of our products . gca segment selling , general and administrative expenses increased $ 2.6 million , or 13.6 % , to $ 21.9 million in the year ended december 31 , 2014 from $ 19.3 million for the year ended december 31 , 2013 . the increase in selling , general and administrative expenses primarily resulted from the increase in additional spending incurred in 2014 to support enhancements in the manner to which we go to market . liquidity and capital resources cash flows our primary source of liquidity during the year ended december 31 , 2015 was cash generated from the sale of our various products to our customers throughout the year . we believe that cash from operations , existing cash reserves , and availability under our revolving credit facility will provide adequate funds for our working capital needs , planned capital expenditures and cash interest payments through 2016 . however ,
| net cash used in financing activities was $ 16.0 million for the year ended december 31 , 2015 compared to $ 0.5 million provided by financing activities for the year ended december 31 , 2014 , and $ 0.9 million used in financing activities for the year ended december 31 , 2013 . the increase in net cash used in financing activities for the year ended december 31 , 2015 primarily resulted from the redemption of $ 15 million of our 7.875 % notes . the net cash provided by financing activities for the year ended december 31 , 2014 resulted from loan proceeds taken against our life insurance policies to fund deferred compensation payments 37 totaling $ 1.0 million . the net cash used in financing activities for the year ended december 31 , 2013 primarily related to the surrender of common stock by employees upon vesting of their restricted stock . as of december 31 , 2015 , cash held by foreign subsidiaries was $ 25.8 million . if we were to repatriate any portion of these funds back to the u.s. we would accrue and pay the appropriate withholding and income taxes on amounts repatriated . we do not intend to repatriate funds held by our foreign affiliates , but rather intend to use the cash to fund the growth of our foreign operations . debt and credit facilities as of december 31 , 2015 , our outstanding indebtedness consisted of an aggregate of $ 235.0 million of 7.875 % senior secured notes due 2019 ( the โ 7.875 % notes โ ) . in addition , we had $ 2.5 million of outstanding letters of credit under various financing arrangements and $ 37.5 million of borrowing capacity under our revolving credit facility , which is subject to an availability block and minimum availability commitment . revolving credit facility on november 15 , 2013 , the company and certain of our subsidiaries , as borrowers ( collectively , the โ borrowers โ ) entered into a second amended and restated loan and security agreement ( `` second arls agreement '' ) with bank of america , n.a .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```net cash used in financing activities was $ 16.0 million for the year ended december 31 , 2015 compared to $ 0.5 million provided by financing activities for the year ended december 31 , 2014 , and $ 0.9 million used in financing activities for the year ended december 31 , 2013 . the increase in net cash used in financing activities for the year ended december 31 , 2015 primarily resulted from the redemption of $ 15 million of our 7.875 % notes . the net cash provided by financing activities for the year ended december 31 , 2014 resulted from loan proceeds taken against our life insurance policies to fund deferred compensation payments 37 totaling $ 1.0 million . the net cash used in financing activities for the year ended december 31 , 2013 primarily related to the surrender of common stock by employees upon vesting of their restricted stock . as of december 31 , 2015 , cash held by foreign subsidiaries was $ 25.8 million . if we were to repatriate any portion of these funds back to the u.s. we would accrue and pay the appropriate withholding and income taxes on amounts repatriated . we do not intend to repatriate funds held by our foreign affiliates , but rather intend to use the cash to fund the growth of our foreign operations . debt and credit facilities as of december 31 , 2015 , our outstanding indebtedness consisted of an aggregate of $ 235.0 million of 7.875 % senior secured notes due 2019 ( the โ 7.875 % notes โ ) . in addition , we had $ 2.5 million of outstanding letters of credit under various financing arrangements and $ 37.5 million of borrowing capacity under our revolving credit facility , which is subject to an availability block and minimum availability commitment . revolving credit facility on november 15 , 2013 , the company and certain of our subsidiaries , as borrowers ( collectively , the โ borrowers โ ) entered into a second amended and restated loan and security agreement ( `` second arls agreement '' ) with bank of america , n.a .
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Suspicious Activity Report : the north american class 5-7 production has steadily increased from 201,000 in 2013 to 237,000 in 2015. according to a january 2016 report by act research , north american class 5-7 production levels are expected to be relatively flat in 2016 at 233,000 and gradually increase to 273,000 in 2020. we believe the demand for north american class 5-7 in 2016 will be relatively stable . in 2015 , approximately 49 % of our revenue was generated from sales to north american md/hd truck oems . our remaining revenue in 2015 was primarily derived from sales to oems in the global construction equipment market , aftermarket , oe service organizations , military market and other commercial vehicle specialty markets . demand for our products is driven to a significant degree by preferences of the end-user of the commercial vehicle , particularly with respect to heavy-duty trucks . unlike the automotive industry , commercial vehicle oems generally afford the end-user the ability to specify many of the component parts that will be used to manufacture the commercial vehicle , including a wide variety of cab interior styles and colors , the brand and type of seats , type of seat fabric and color and specific interior styling . in addition , certain of our products are only utilized in north american class 8 market , such as our storage systems , sleeper boxes and privacy curtains , and , as a result , changes in demand for heavy-duty trucks or the mix of options on a vehicle can have a greater impact on our business than changes in the overall demand for commercial vehicles . to the extent that demand for higher content vehicles increases or decreases , our revenues and gross profit will be impacted positively or negatively . demand for our construction products is dependent on the vehicle production and demand for new commercial vehicles in the global construction equipment market and generally follows certain economic conditions around the world . our products are primarily used in the medium-and heavy-duty construction equipment markets ( weighing over 12 metric tons ) . demand in the medium-and heavy-duty construction equipment market is typically related to the level of larger scale infrastructure development projects such as highways , dams , harbors , hospitals , airports and industrial development , as well as activity in the mining , forestry and other raw material based industries . we believe there is a bias toward continuing softness in global construction and agriculture markets in 2016. we generally compete for new business at the beginning of the development of a new vehicle platform and upon the redesign of existing programs . new platform development generally begins at least one to three years before the marketing of such models 31 by our customers . contract durations for commercial vehicle products generally extend for the entire life of the platform , which is typically five to seven years . our long-term strategy our long-term strategic plan is a roadmap by product , geographic region , and end market to guide resource allocation and other decision making to achieve our long-term goals . to that end , we evaluated our opportunity to grow organically by end market . we currently believe we have approximately 5 % market share of the addressable global truck , bus , construction and agriculture end markets . accordingly , we believe we have significant opportunity to grow organically in our end markets . we evaluated our product portfolio in the context of this organic market growth opportunity and our ability to win in the marketplace . our core products are seats , trim and wire harnesses and our complementary products include structures , wipers , mirrors and office seats . we expect to realize some geographic diversification over the planned period toward asia-pacific . we also expect to realize some end market diversification more weighted toward the agriculture market , and to a lesser extent the construction market . we intend to allocate resources consistent with our strategic plan ; and more specifically , consistent with our core and complementary product portfolio , geographic region and end market diversification objectives . we periodically evaluate our long-term strategic plan in response to significant changes in our business environment and other factors . although our long-term strategic plan is an organic growth plan , we will consider opportunistic acquisitions to supplement our product portfolio , and to enhance our ability to serve our customers in our geographic end markets . strategic footprint we continuously review our manufacturing footprint to ensure we efficiently utilize our resources . in december 2015 , management announced a restructuring and cost reduction plan , which is expected to lower operating costs by $ 8 to $ 12 million annually when fully implemented as of the end of 2017. pre-tax costs associated with these actions , including associated capital investment , were $ 0.8 million in 2015 and are expected to be $ 6 to $ 8 million in 2016 and $ 4 to $ 6 million in 2017. the majority of these costs are employee-related separation costs and other costs associated with the transfer of production and subsequent closure of facilities . recently issued accounting pronouncements see note 2 to our consolidated financial statements in item 8 in this annual report on form 10-k for a description of recently issued and or adopted accounting pronouncements . consolidated results of operations the table below sets forth certain operating data expressed as a percentage of revenues for the periods indicated ( dollars are in thousands ) : replace_table_token_8_th 32 year ended december 31 , 2015 compared to year ended december 31 , 2014 c onsolidated r esults revenues . on a consolidated basis , revenue decreased $ 14.4 million , or 1.7 % , to $ 825.3 million for the year ended december 31 , 2015 compared to $ 839.7 million for the year ended december 31 , 2014 . story_separator_special_tag the increase in gtb segment revenues is primarily a result of : a $ 49.5 million , or 15 % , increase primarily in oem north american md/hd truck revenues ; a $ 2.2 million , or 3 % , increase in aftermarket revenues ; a $ 3.9 million , or 13 % , increase in oem bus revenues ; and a $ 5.3 million , or 13 % , increase in revenues from other markets . in 2015 , the classification of some sales by end market were changed for certain customers . these classification changes were applied to prior periods above to conform to current year presentation . gross profit . gtb segment gross profit increased $ 21.9 million , or 36.8 % , to $ 81.4 million for the year ended december 31 , 2014 from $ 59.5 million for the year ended december 31 , 2013 . included in gross profit is cost of revenues which consists primarily of raw material and purchased component costs for our products , wages and benefits for our employees and overhead expenses such as manufacturing supplies , facility rent and utilities costs related to our operations . cost of revenues increased $ 39.0 million , or 9.4 % , as a result of an increase in raw material and purchased component costs of $ 31.7 million , salaries and benefits of $ 4.7 million and overhead of $ 2.6 million . as a percentage of revenues , gross profit increased to 15.2 % for the year ended december 31 , 2014 from 12.6 % for the year ended december 31 , 2013 . the increase in gross profit resulted from the increase in sales volume as well as non-recurrence of machinery and equipment and it asset impairments incurred in 2013 amounting to $ 2.7 million . this was offset by closure costs of $ 1.3 million associated with our tigard , oregon facility and an impairment charge of $ 0.8 million resulting from the sale of our norwalk , ohio facility . selling , general and administrative expenses . selling , general and administrative expenses consist primarily of wages and benefits and other overhead expenses such as marketing , travel , legal , audit , rent and utilities costs , which are not directly or indirectly associated with the manufacturing of our products . gtb segment selling , general and administrative expenses increased $ 0.9 million , or 3.0 % , to $ 28.9 million for the year ended december 31 , 2014 from $ 28.0 million for the year ended december 31 , 2013 . the increase in selling , general and administrative expenses is primarily the result of additional spending incurred in 2014 to support enhancements in the manner to which we go to market . global construction and agriculture segment results 36 replace_table_token_12_th revenue . gca segment revenues increased $ 34.4 million , or 12.1 % , to $ 317.2 million for the year ended december 31 , 2014 from $ 282.8 million for the year ended december 31 , 2013 . the increase in gca segment revenue is primarily a result of : a $ 24.7 million , or 17 % , increase in north american oem construction revenue ; a $ 4.4 million , or 210 % , increase in agriculture revenues ; and a $ 5.4 million , or 4 % , increase in revenues from other markets . in 2015 , the classification of some sales by end market were changed for certain customers . these classification changes were applied to prior periods above to conform to current year presentation . gross profit . gca segment gross profit increased $ 5.2 million , or 21.4 % , to $ 29.6 million for the year ended december 31 , 2014 from $ 24.4 million for the year ended december 31 , 2013 . included in gross profit is cost of revenues which consists primarily of raw material and purchased component costs for our products , wages and benefits for our employees and overhead expenses such as manufacturing supplies , facility rent and utilities costs related to our operations . cost of revenues increased $ 29.1 million , or 11.3 % , as a result of an increase in raw material and purchased component costs of $ 23.5 million , salaries and benefits of $ 1.2 million and overhead of $ 4.4 million . as a percentage of revenues , gross profit increased to 9.3 % for the year ended december 31 , 2014 from 8.6 % for the year ended december 31 , 2013 . the increase in gross profit resulted from the increase in sales volume , partially offset by foreign currency exchange transaction impacts of $ 1.0 million . selling , general and administrative expenses . selling , general and administrative expenses consist primarily of wages and benefits and other overhead expenses such as marketing , travel , legal , audit , rent and utilities costs , which are not directly or indirectly associated with the manufacturing of our products . gca segment selling , general and administrative expenses increased $ 2.6 million , or 13.6 % , to $ 21.9 million in the year ended december 31 , 2014 from $ 19.3 million for the year ended december 31 , 2013 . the increase in selling , general and administrative expenses primarily resulted from the increase in additional spending incurred in 2014 to support enhancements in the manner to which we go to market . liquidity and capital resources cash flows our primary source of liquidity during the year ended december 31 , 2015 was cash generated from the sale of our various products to our customers throughout the year . we believe that cash from operations , existing cash reserves , and availability under our revolving credit facility will provide adequate funds for our working capital needs , planned capital expenditures and cash interest payments through 2016 . however ,
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2,588 | 44 financial overview financial results we reported losses from operations of approximately $ 55 million for 2017 , $ 14 million for 2016 and $ 31 million for 2015. we reported net losses of approximately $ 35 million for 2017 , $ 14 million for 2016 and $ 32 million for 2015. our revenue was approximately $ 330 million in 2017 , $ 253 million in 2016 and $ 249 million in 2015. our gross profit was approximately $ 201 million in 2017 , $ 168 million in 2016 and $ 162 million in 2015. our gross profit as a percentage of revenue ( `` total gross margin `` ) was approximately 61 % in 2017 , 66 % in 2016 and 65 % in 2015. our operating expenses were approximately $ 257 million in 2017 , compared to approximately $ 181 million in 2016 and approximately $ 193 million in 2015. our 2017 operating expenses included approximately $ 15 million of acquisition- and integration-related expenses , nearly all related to the merger , and approximately $ 9 million of restructuring expense . our 2017 restructuring expense was primarily related to severance and related costs . our 2016 operating expenses included approximately $ 1 million of acquisition- and integration-related costs for professional and services fees related to our acquisition of taqua and approximately $ 3 million of restructuring expense , primarily comprised of approximately $ 2 million related to our 2016 restructuring initiative and approximately $ 1 million related to our taqua restructuring initiative . our 2015 operating expenses included approximately $ 2 million of restructuring expense , comprised of approximately $ 4 million of expense related to our 2015 restructuring initiative , net of approximately $ 2 million of reversals of restructuring expense previously recorded in connection with our 2012 restructuring initiative . we recorded stock-based compensation expense of approximately $ 26 million in 2017 , $ 20 million in 2016 and $ 22 million in 2015. the expense recorded in 2017 includes approximately $ 9 million of incremental expense related to the acceleration of stock options and certain full value stock awards in connection with the merger . see `` results of operations `` in this management 's discussion and analysis of financial condition and results of operations ( `` md & a `` ) for additional discussion of our results of operations for the years ended december 31 , 2017 , 2016 and 2015. restructuring and cost reduction initiatives in connection with the merger , we implemented a restructuring plan in the fourth quarter of 2017 to eliminate certain redundant positions and facilities within the combined companies ( the `` merger restructuring initiative `` ) . accordingly , we recorded $ 8.5 million of restructuring expense in 2017 related to the merger restructuring initiative . we believe that the payments related to the amount accrued at december 31 , 2017 will be completed in 2018. we anticipate that we will record additional future expense in connection with this initiative for headcount and redundant facilities aggregating approximately $ 12 million . we believe that the payments related to this expected additional future expense will be completed by early 2019. we assumed genband 's restructuring liability aggregating approximately $ 4 million at the merger date ( the `` genband restructuring initiative `` ) , primarily related to headcount reductions . we do not expect to record additional expense in connection with this initiative except for adjustments for changes in estimated costs . we expect that the payments related to this assumed liability will be completed in 2018. in connection with the acquisition of taqua , we implemented a restructuring plan in the third quarter of 2016 to eliminate certain redundant positions within the combined companies . on october 24 , 2016 , the audit committee of our board of directors ( the `` audit committee `` ) approved a broader taqua restructuring plan related to headcount and redundant facilities ( collectively , the `` taqua restructuring initiative `` ) . in connection with this initiative , we have recorded approximately $ 2 million of restructuring expense for severance and related costs and estimated costs related to the elimination of redundant facilities , including adjustments recorded for changes in cost estimates for the planned restructuring activities . the actions under the taqua restructuring initiative have been implemented and accordingly , we do not expect to record additional expense in connection with this initiative . the amounts accrued for severance and related costs were fully paid by the end of the third quarter of 2017. we expect that the amounts accrued for facilities costs will be paid by the end of 2018 . 45 on july 25 , 2016 , we announced a program ( the `` 2016 restructuring initiative `` ) to further accelerate our investment in new technologies as the communications industry migrates to a cloud-based architecture and pursues new strategic initiatives , such as new products and an expanded go-to-market footprint in selected geographies and discrete vertical markets . we have recorded an aggregate of approximately $ 2 million of restructuring expense in connection with this initiative , primarily for severance and related costs . the amounts accrued for severance and related costs were fully paid by the end of the third quarter of 2017. we expect that the amounts accrued for facilities will be paid by the end of october 2019. to better align our cost structure to our then-current revenue expectations , in april 2015 , we announced a cost reduction review . on april 16 , 2015 , we initiated a restructuring plan to reduce our workforce by approximately 150 positions , or approximately 13 % of our worldwide workforce ( the `` 2015 restructuring initiative `` ) . we recorded nominal restructuring expense in 2016 and approximately $ 4 million in 2015 in connection with the 2015 restructuring initiative . story_separator_special_tag subsidiaries as of december 31 , 2017 , with the exception of the company 's irish subsidiary , as we do not plan to permanently reinvest these amounts outside the united states . the repatriation of the undistributed earnings would result in withholding taxes imposed on the repatriation . consequently , we have recorded a tax liability of $ 3.2 million , consisting primarily of withholding and distribution taxes , relating to undistributed earnings from these subsidiaries as of december 31 , 2017. had the earnings of the irish subsidiary been determined to not be permanently reinvested outside the u.s. , no additional deferred tax liability would be required due to no withholding taxes or income tax expense being imposed on such repatriation . we assess all material positions taken in any income tax return , including all significant uncertain positions , in all tax years that are still subject to assessment or challenge by relevant taxing authorities . assessing an uncertain tax position begins with the initial determination of the position 's sustainability and is measured at the largest amount of benefit that has a greater than 50 % likelihood of being realized upon ultimate settlement . as of each balance sheet date , unresolved uncertain tax positions must be reassessed , and we will determine whether ( i ) the factors underlying the sustainability assertion have changed and ( ii ) the amount of recognized tax benefit is still appropriate . the recognition and measurement of tax benefits require significant judgment . judgments concerning the recognition and measurement of a tax benefit might change as new information becomes available . on december 22 , 2017 , the u.s. government enacted comprehensive tax legislation commonly referred to as the tax cuts and jobs act ( the `` tax act `` ) . the tax act makes broad and complex changes to the u.s. tax code , including , but not limited to : reducing the u.s. federal corporate tax rate from 35 % to 21 % ; requiring companies to pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries ; generally eliminating u.s. federal income taxes on dividends from foreign subsidiaries ; requiring a current inclusion in u.s. federal taxable income of certain earnings ( global intangible low-taxed income ) of controlled foreign corporation ; eliminating the corporate alternative minimum tax ( `` amt `` ) and changing how existing amt credits can be realized ; creating the base erosion anti-abuse tax ; creating a new limitation on deductible interest expense ; changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after december 31 , 2017 ; providing a tax deduction for foreign-derived intangible income ; and changing rules related to deductibility of compensation for certain officers . the impact of certain effects of the tax act has been recognized in the period in which the new legislation was enacted per guidance in staff accounting bulletin 118 , which allows for a measurement period to complete the accounting for certain elements of the tax reform . we have not yet completed a full evaluation of the impact of the tax act on our financial statements , however , we have provided a reasonable estimate for the impact related to remeasured deferred tax assets based on the new federal income tax rate of 21 % . we have also provided for the provisional impact related to the tax act 's change to the federal nol and amt carryovers . the total estimated impact of $ 5 million is reflected in income from continuing operations , and increased the tax benefit for the year ended december 31 , 2017. we will continue to make and refine our calculations as 49 additional analysis is completed . we can not predict with certainty how the tax act will affect the company 's financial position or results of operations . results of operations years ended december 31 , 2017 and 2016 revenue . revenue for the years ended december 31 , 2017 and 2016 was as follows ( in millions , except percentages ) : replace_table_token_6_th product revenue is comprised of sales of our network transformation , security and applications solutions . the increase in product revenue in 2017 compared to 2016 was primarily the result of the inclusion genband 's product revenue approximating $ 38 million for the period since the merger date , approximately $ 20 million of higher sales of our security and application products and the inclusion of approximately $ 4 million of 2017 product revenue from taqua . these increases were partially offset by net decreases in sales of certain other products , primarily our legacy gateway products . in 2017 , approximately 24 % of our product revenue was from indirect sales through our channel partner program , compared to approximately 26 % in 2016. in 2017 , approximately 20 % of our product revenue was attributable to sales to enterprise customers , compared to approximately 19 % in 2016. these sales were made through both our direct sales team and indirect sales channel partners . the timing of the completion of customer projects , revenue recognition criteria satisfaction and customer payments may cause our product revenue to fluctuate from one period to the next . service revenue is primarily comprised of hardware and software maintenance and support ( โ maintenance revenue โ ) and network design , installation and other professional services ( โ professional services revenue โ ) . service revenue for the years ended december 31 , 2017 and 2016 was comprised of the following ( in millions , except percentages ) : replace_table_token_7_th our maintenance revenue increased in 2017 compared to 2016 primarily due to the inclusion of approximately $ 21 million of revenue attributable to genband in 2017 for the period since the merger date and the inclusion of approximately $ 5 million of revenue attributable to taqua . the increase in
| of cash . our investing activities provided approximately $ 21 million of cash in 2017 and used approximately $ 27 million of cash in 2016. in 2017 , net sales of our investments in marketable securities provided approximately $ 67 million of cash , of which we used approximately $ 43 million to pay the cash consideration for genband . we used approximately $ 4 million to purchase property and equipment . in 2016 , we used approximately $ 21 million of cash , net of cash acquired , for business acquisitions , approximately $ 5 million of cash used for the purchase of property and equipment and approximately $ 3 million for net investments in marketable securities . the amount used for business acquisitions was comprised of $ 20 million , net of cash acquired , for the acquisition of taqua and slightly under $ 1 million paid as the final consideration installment for the sdn business . our financing activities used approximately $ 4 million of cash in 2017 and approximately $ 10 million of cash in 2016. the 2017 amount was primarily comprised of approximately $ 8 million used to pay withholding obligations related to the net share settlement of restricted and performance-based stock grants upon vesting and $ 1 million to pay debt issuance costs related to our credit agreement , partially offset by approximately $ 2 million of net borrowings against our credit agreement , $ 1 million of proceeds from the sale of our common stock in connection with our amended and restated 2000 employee stock purchaseplan , as amended ( `` espp '' ) and approximately $ 1 million of proceeds from the exercise of stock options .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```of cash . our investing activities provided approximately $ 21 million of cash in 2017 and used approximately $ 27 million of cash in 2016. in 2017 , net sales of our investments in marketable securities provided approximately $ 67 million of cash , of which we used approximately $ 43 million to pay the cash consideration for genband . we used approximately $ 4 million to purchase property and equipment . in 2016 , we used approximately $ 21 million of cash , net of cash acquired , for business acquisitions , approximately $ 5 million of cash used for the purchase of property and equipment and approximately $ 3 million for net investments in marketable securities . the amount used for business acquisitions was comprised of $ 20 million , net of cash acquired , for the acquisition of taqua and slightly under $ 1 million paid as the final consideration installment for the sdn business . our financing activities used approximately $ 4 million of cash in 2017 and approximately $ 10 million of cash in 2016. the 2017 amount was primarily comprised of approximately $ 8 million used to pay withholding obligations related to the net share settlement of restricted and performance-based stock grants upon vesting and $ 1 million to pay debt issuance costs related to our credit agreement , partially offset by approximately $ 2 million of net borrowings against our credit agreement , $ 1 million of proceeds from the sale of our common stock in connection with our amended and restated 2000 employee stock purchaseplan , as amended ( `` espp '' ) and approximately $ 1 million of proceeds from the exercise of stock options .
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Suspicious Activity Report : 44 financial overview financial results we reported losses from operations of approximately $ 55 million for 2017 , $ 14 million for 2016 and $ 31 million for 2015. we reported net losses of approximately $ 35 million for 2017 , $ 14 million for 2016 and $ 32 million for 2015. our revenue was approximately $ 330 million in 2017 , $ 253 million in 2016 and $ 249 million in 2015. our gross profit was approximately $ 201 million in 2017 , $ 168 million in 2016 and $ 162 million in 2015. our gross profit as a percentage of revenue ( `` total gross margin `` ) was approximately 61 % in 2017 , 66 % in 2016 and 65 % in 2015. our operating expenses were approximately $ 257 million in 2017 , compared to approximately $ 181 million in 2016 and approximately $ 193 million in 2015. our 2017 operating expenses included approximately $ 15 million of acquisition- and integration-related expenses , nearly all related to the merger , and approximately $ 9 million of restructuring expense . our 2017 restructuring expense was primarily related to severance and related costs . our 2016 operating expenses included approximately $ 1 million of acquisition- and integration-related costs for professional and services fees related to our acquisition of taqua and approximately $ 3 million of restructuring expense , primarily comprised of approximately $ 2 million related to our 2016 restructuring initiative and approximately $ 1 million related to our taqua restructuring initiative . our 2015 operating expenses included approximately $ 2 million of restructuring expense , comprised of approximately $ 4 million of expense related to our 2015 restructuring initiative , net of approximately $ 2 million of reversals of restructuring expense previously recorded in connection with our 2012 restructuring initiative . we recorded stock-based compensation expense of approximately $ 26 million in 2017 , $ 20 million in 2016 and $ 22 million in 2015. the expense recorded in 2017 includes approximately $ 9 million of incremental expense related to the acceleration of stock options and certain full value stock awards in connection with the merger . see `` results of operations `` in this management 's discussion and analysis of financial condition and results of operations ( `` md & a `` ) for additional discussion of our results of operations for the years ended december 31 , 2017 , 2016 and 2015. restructuring and cost reduction initiatives in connection with the merger , we implemented a restructuring plan in the fourth quarter of 2017 to eliminate certain redundant positions and facilities within the combined companies ( the `` merger restructuring initiative `` ) . accordingly , we recorded $ 8.5 million of restructuring expense in 2017 related to the merger restructuring initiative . we believe that the payments related to the amount accrued at december 31 , 2017 will be completed in 2018. we anticipate that we will record additional future expense in connection with this initiative for headcount and redundant facilities aggregating approximately $ 12 million . we believe that the payments related to this expected additional future expense will be completed by early 2019. we assumed genband 's restructuring liability aggregating approximately $ 4 million at the merger date ( the `` genband restructuring initiative `` ) , primarily related to headcount reductions . we do not expect to record additional expense in connection with this initiative except for adjustments for changes in estimated costs . we expect that the payments related to this assumed liability will be completed in 2018. in connection with the acquisition of taqua , we implemented a restructuring plan in the third quarter of 2016 to eliminate certain redundant positions within the combined companies . on october 24 , 2016 , the audit committee of our board of directors ( the `` audit committee `` ) approved a broader taqua restructuring plan related to headcount and redundant facilities ( collectively , the `` taqua restructuring initiative `` ) . in connection with this initiative , we have recorded approximately $ 2 million of restructuring expense for severance and related costs and estimated costs related to the elimination of redundant facilities , including adjustments recorded for changes in cost estimates for the planned restructuring activities . the actions under the taqua restructuring initiative have been implemented and accordingly , we do not expect to record additional expense in connection with this initiative . the amounts accrued for severance and related costs were fully paid by the end of the third quarter of 2017. we expect that the amounts accrued for facilities costs will be paid by the end of 2018 . 45 on july 25 , 2016 , we announced a program ( the `` 2016 restructuring initiative `` ) to further accelerate our investment in new technologies as the communications industry migrates to a cloud-based architecture and pursues new strategic initiatives , such as new products and an expanded go-to-market footprint in selected geographies and discrete vertical markets . we have recorded an aggregate of approximately $ 2 million of restructuring expense in connection with this initiative , primarily for severance and related costs . the amounts accrued for severance and related costs were fully paid by the end of the third quarter of 2017. we expect that the amounts accrued for facilities will be paid by the end of october 2019. to better align our cost structure to our then-current revenue expectations , in april 2015 , we announced a cost reduction review . on april 16 , 2015 , we initiated a restructuring plan to reduce our workforce by approximately 150 positions , or approximately 13 % of our worldwide workforce ( the `` 2015 restructuring initiative `` ) . we recorded nominal restructuring expense in 2016 and approximately $ 4 million in 2015 in connection with the 2015 restructuring initiative . story_separator_special_tag subsidiaries as of december 31 , 2017 , with the exception of the company 's irish subsidiary , as we do not plan to permanently reinvest these amounts outside the united states . the repatriation of the undistributed earnings would result in withholding taxes imposed on the repatriation . consequently , we have recorded a tax liability of $ 3.2 million , consisting primarily of withholding and distribution taxes , relating to undistributed earnings from these subsidiaries as of december 31 , 2017. had the earnings of the irish subsidiary been determined to not be permanently reinvested outside the u.s. , no additional deferred tax liability would be required due to no withholding taxes or income tax expense being imposed on such repatriation . we assess all material positions taken in any income tax return , including all significant uncertain positions , in all tax years that are still subject to assessment or challenge by relevant taxing authorities . assessing an uncertain tax position begins with the initial determination of the position 's sustainability and is measured at the largest amount of benefit that has a greater than 50 % likelihood of being realized upon ultimate settlement . as of each balance sheet date , unresolved uncertain tax positions must be reassessed , and we will determine whether ( i ) the factors underlying the sustainability assertion have changed and ( ii ) the amount of recognized tax benefit is still appropriate . the recognition and measurement of tax benefits require significant judgment . judgments concerning the recognition and measurement of a tax benefit might change as new information becomes available . on december 22 , 2017 , the u.s. government enacted comprehensive tax legislation commonly referred to as the tax cuts and jobs act ( the `` tax act `` ) . the tax act makes broad and complex changes to the u.s. tax code , including , but not limited to : reducing the u.s. federal corporate tax rate from 35 % to 21 % ; requiring companies to pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries ; generally eliminating u.s. federal income taxes on dividends from foreign subsidiaries ; requiring a current inclusion in u.s. federal taxable income of certain earnings ( global intangible low-taxed income ) of controlled foreign corporation ; eliminating the corporate alternative minimum tax ( `` amt `` ) and changing how existing amt credits can be realized ; creating the base erosion anti-abuse tax ; creating a new limitation on deductible interest expense ; changing rules related to uses and limitations of net operating loss carryforwards created in tax years beginning after december 31 , 2017 ; providing a tax deduction for foreign-derived intangible income ; and changing rules related to deductibility of compensation for certain officers . the impact of certain effects of the tax act has been recognized in the period in which the new legislation was enacted per guidance in staff accounting bulletin 118 , which allows for a measurement period to complete the accounting for certain elements of the tax reform . we have not yet completed a full evaluation of the impact of the tax act on our financial statements , however , we have provided a reasonable estimate for the impact related to remeasured deferred tax assets based on the new federal income tax rate of 21 % . we have also provided for the provisional impact related to the tax act 's change to the federal nol and amt carryovers . the total estimated impact of $ 5 million is reflected in income from continuing operations , and increased the tax benefit for the year ended december 31 , 2017. we will continue to make and refine our calculations as 49 additional analysis is completed . we can not predict with certainty how the tax act will affect the company 's financial position or results of operations . results of operations years ended december 31 , 2017 and 2016 revenue . revenue for the years ended december 31 , 2017 and 2016 was as follows ( in millions , except percentages ) : replace_table_token_6_th product revenue is comprised of sales of our network transformation , security and applications solutions . the increase in product revenue in 2017 compared to 2016 was primarily the result of the inclusion genband 's product revenue approximating $ 38 million for the period since the merger date , approximately $ 20 million of higher sales of our security and application products and the inclusion of approximately $ 4 million of 2017 product revenue from taqua . these increases were partially offset by net decreases in sales of certain other products , primarily our legacy gateway products . in 2017 , approximately 24 % of our product revenue was from indirect sales through our channel partner program , compared to approximately 26 % in 2016. in 2017 , approximately 20 % of our product revenue was attributable to sales to enterprise customers , compared to approximately 19 % in 2016. these sales were made through both our direct sales team and indirect sales channel partners . the timing of the completion of customer projects , revenue recognition criteria satisfaction and customer payments may cause our product revenue to fluctuate from one period to the next . service revenue is primarily comprised of hardware and software maintenance and support ( โ maintenance revenue โ ) and network design , installation and other professional services ( โ professional services revenue โ ) . service revenue for the years ended december 31 , 2017 and 2016 was comprised of the following ( in millions , except percentages ) : replace_table_token_7_th our maintenance revenue increased in 2017 compared to 2016 primarily due to the inclusion of approximately $ 21 million of revenue attributable to genband in 2017 for the period since the merger date and the inclusion of approximately $ 5 million of revenue attributable to taqua . the increase in
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2,589 | `` total revenue for 2015 was $ 8,209 million , a three percent decrease from $ 8,420 million in 2014. excluding the impact of currency and substrate sales , revenue was up $ 315 million from $ 6,486 million to $ 6,801 million , driven primarily by stronger oe light vehicle volumes in north america , europe , india and china , increased aftermarket sales in north america and south america and new platforms in europe , china and japan , which were partially offset by lower commercial truck , off-highway and other revenue mainly in south america and china . cost of sales : cost of sales for 2015 was $ 6,845 million , or 83.4 percent of sales , compared to $ 7,025 million , or 83.4 percent of sales in 2014. the following table lists the primary drivers behind the change in cost of sales ( $ millions ) . replace_table_token_14_th the decrease in cost of sales was due to the impact of currency exchange rates , lower net material costs , and lower other costs , mainly manufacturing , partially offset by the year-over-year increase in volume . 41 gross margin : revenue less cost of sales for 2015 was $ 1,364 million , or 16.6 percent of sales , versus $ 1,395 million , or 16.6 percent of sales in 2014. the effect on gross margin resulting from year-over-year increase in volume , lower net material costs and lower other costs , mainly manufacturing , was more than offset by unfavorable currency . engineering , research and development : engineering , research and development expense was $ 146 million and $ 169 million in 2015 and 2014 , respectively , mainly due to currency impact and the timing of customers ' recoveries . selling , general and administrative ( sg & a ) : selling , general and administrative expense was down $ 28 million in 2015 , at $ 491 million , compared to $ 519 million in 2014 , mainly due to currency impact . depreciation and amortization : depreciation and amortization expense was $ 203 million and $ 208 million for 2015 and 2014 , respectively . earnings before interest expense , taxes and noncontrolling interests ( โ ebit โ ) was $ 519 million for 2015 , an increase of $ 27 million , when compared to $ 492 million in the prior year . higher oe light vehicle volumes in north america , europe , india and china , increased aftermarket sales in north america and south america , new platforms in europe , china and japan , the benefit of our product cost leadership initiatives and savings from previous restructuring activities were partially offset by lower commercial truck , off-highway and other revenue mainly in south america and china , unfavorable mix , higher restructuring costs and $ 64 million of negative currency . ebit for 2015 also benefited from the timing of a customer recovery in china clean air of $ 5 million . ebit for 2014 included a $ 7 million adjustment to workers ' compensation reserves . results from operations net sales and operating revenues for years 2015 and 2014 the tables below reflect our revenues for 2015 and 2014. we show the component of our oe revenue represented by substrate sales . while we generally have primary design , engineering and manufacturing responsibility for oe emission control systems , we do not manufacture substrates . substrates are porous ceramic filters coated with a catalyst - typically , precious metals such as platinum , palladium and rhodium . these are supplied to us by tier 2 suppliers generally as directed by our oe customers . we generally earn a small margin on these components of the system . as the need for more sophisticated emission control solutions increases to meet more stringent environmental regulations , and as we capture more diesel aftertreatment business , these substrate components have been increasing as a percentage of our revenue . while these substrates dilute our gross margin percentage , they are a necessary component of an emission control system . our value-add content in an emission control system includes designing the system to meet environmental regulations through integration of the substrates into the system , maximizing use of thermal energy to heat up the catalyst quickly , efficiently managing airflow to reduce back pressure as the exhaust stream moves past the catalyst , managing the expansion and contraction of the emission control system components due to temperature extremes experienced by an emission control system , using advanced acoustic engineering tools to design the desired exhaust sound , minimizing the opportunity for the fragile components of the substrate to be damaged when we integrate it into the emission control system and reducing unwanted noise , vibration and harshness transmitted through the emission control system . we present these substrate sales separately in the following table because we believe investors utilize this information to understand the impact of this portion of our revenues on our overall business and because it removes the impact of potentially volatile precious metals pricing from our revenues . while our original equipment customers generally assume the risk of precious metals pricing volatility , it impacts our reported revenues . presenting revenues that exclude โ substrates โ used in catalytic converters and diesel particulate filters removes this impact . additionally , we present these reconciliations of revenues in order to reflect value-add revenues without the effect of changes in foreign currency rates . we have not reflected any currency impact in the 2014 table since this is the base period for measuring the effects of currency during 2015 on our operations . we believe investors find this information useful in understanding period-to-period comparisons in our revenues . story_separator_special_tag ebit as a percentage of revenues for asia pacific in 2014 was even when compared to 2013. the benefit from higher light vehicle production volumes , new platforms and higher commercial truck and off-highway vehicle revenues in china and japan and restructuring savings in australia was offset by lower volumes in australia and thailand , higher engineering expenses and higher restructuring and related expenses . 50 in the ride performance division , ebit as a percentage of revenues in 2014 was up two percentage points compared to the 2013. in 2014 , ebit as a percentage of revenues for north america was up one percentage point compared to 2013. the benefits of increased light vehicle and commercial truck volumes and positive aftermarket product mix were partially offset by higher restructuring and related expenses and unfavorable currency . ebit as a percentage of revenues in europe , south america and india was up five percentage points in 2014 when compared to 2013. the increase was driven by lower year-over-year restructuring and related expenses , increased light vehicle and commercial truck volumes in europe , higher aftermarket revenues in south america and india and year-over-year savings from prior restructuring activities , partially offset by lower light vehicle sales in south america and negative currency . in asia pacific , ebit as a percentage of revenues in 2014 was up six percentage points from 2013. ebit benefited from higher light vehicle production volumes in china , savings from prior restructuring activities in australia and positive currency , partially offset by lower volumes in australia . interest expense , net of interest capitalized we reported interest expense in 2015 of $ 67 million ( substantially all in our u.s. operations ) net of interest capitalized of $ 6 million , and $ 91 million ( substantially all in our u.s. operations ) net of interest capitalized of $ 5 million in 2014. included in 2014 was $ 13 million of expense related to our refinancing activities . the decrease was due to lower interest rates from the refinancing completed in december 2014 where we extended maturities , increased the size of our senior secured credit facility and reduced the rates on the credit facility and refinanced the senior unsecured notes with new maturity dates bearing lower interest rates . we reported interest expense in 2014 of $ 91 million ( substantially all in our u.s. operations ) net of interest capitalized of $ 5 million , up from $ 80 million ( substantially all in our u.s. operations ) net of interest capitalized of $ 4 million in 2013. included in 2014 was $ 13 million of expense related to our refinancing activities . excluding the refinancing expenses , interest expense decreased by $ 2 million in 2014 compared to 2013. on december 31 , 2015 , we had $ 758 million in long-term debt obligations that have fixed interest rates . of that amount , $ 500 million is fixed through december 2020 , $ 225 million is fixed through december 2024 and the remainder is fixed from 2015 through 2025. we also have $ 382 million in long-term debt obligations that are subject to variable interest rates . for more detailed explanations on our debt structure and senior credit facility refer to โ liquidity and capital resources โ capitalization โ later in this management 's discussion and analysis . income taxes we reported income tax expense of $ 149 million in 2015. the tax expense recorded in 2015 included a net tax benefit of $ 15 million primarily relating to prior year u.s. research and development tax credits , changes to uncertain tax positions , and prior year income tax adjustments . we reported an income tax expense of $ 131 million for 2014. the tax expense recorded in 2014 includes a net tax benefit of $ 11 million for prior year tax adjustments primarily relating to changes to uncertain tax positions and prior year income tax estimates . we reported an income tax expense of $ 122 million for 2013. the tax expense recorded in 2013 includes a net tax benefit of $ 25 million for tax adjustments primarily related to recognizing a u.s. tax benefit for foreign taxes and changes to prior year estimates including changes to uncertain tax positions . the u.s. tax benefit for foreign taxes is driven by our ability to claim a u.s. foreign tax credit beginning in 2013. the u.s. foreign tax credit regime provides for a credit against u.s. taxes otherwise payable for foreign taxes paid with regard to dividends , interest and royalties paid to us in the u.s. we believe it is reasonably possible that up to $ 10 million in unrecognized tax benefits related to the expiration of foreign statute of limitations and the conclusion of income tax examinations may be recognized within the next twelve months . our federal net operating loss ( `` nol `` ) at december 31 , 2013 totaled $ 37 million . we had fully utilized our nol as of june 30 , 2014. the state nols expire in various tax years through 2032. restructuring and other charges over the past several years , we have adopted plans to restructure portions of our operations . these plans were approved by our board of directors and were designed to reduce operational and administrative overhead costs throughout the business . in 2013 , we incurred $ 78 million in restructuring and related costs , primarily related to european cost reduction efforts , including non-cash asset write downs of $ 3 million , the costs to exit the distribution of aftermarket exhaust products and ending production of leaf springs in australia , headcount reductions in various regions , and the net impact of freezing our defined benefit plans in the united kingdom , of which $ 70 million was recorded in cost of sales , $ 6 million in sg & a , $ 1 million in engineering
| cash flows for 2015 and 2014 replace_table_token_29_th operating activities for 2015 , operating activities provided $ 517 million in cash compared to $ 341 million cash provided during last year . the higher cash from operations was primarily driven by higher earnings , working capital improvements , lower interest payments and lower tax payments . for 2015 , cash used for working capital was $ 9 million versus $ 137 million of cash used for working capital in 2014. receivables were a use of cash of $ 90 million for 2015 compared to a use of cash of $ 83 million in the prior year . inventory represented a cash outflow of $ 36 million for 2015 and a cash outflow of $ 74 million during 2014. accounts payable provided $ 90 million of cash for the year ended december 31 , 2015 , compared to $ 94 million of cash provided for the year ended december 31 , 2014. cash taxes were $ 105 million for 2015 , net of a us tax refund of $ 25 million for overpayment in 2014 , compared to $ 136 million in the prior year . investing activities cash used for investing activities was $ 36 million lower in 2015 compared to 2014. cash payments for plant , property and equipment were $ 286 million in 2015 versus payments of $ 328 million in 2014 , a decrease of $ 42 million .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows for 2015 and 2014 replace_table_token_29_th operating activities for 2015 , operating activities provided $ 517 million in cash compared to $ 341 million cash provided during last year . the higher cash from operations was primarily driven by higher earnings , working capital improvements , lower interest payments and lower tax payments . for 2015 , cash used for working capital was $ 9 million versus $ 137 million of cash used for working capital in 2014. receivables were a use of cash of $ 90 million for 2015 compared to a use of cash of $ 83 million in the prior year . inventory represented a cash outflow of $ 36 million for 2015 and a cash outflow of $ 74 million during 2014. accounts payable provided $ 90 million of cash for the year ended december 31 , 2015 , compared to $ 94 million of cash provided for the year ended december 31 , 2014. cash taxes were $ 105 million for 2015 , net of a us tax refund of $ 25 million for overpayment in 2014 , compared to $ 136 million in the prior year . investing activities cash used for investing activities was $ 36 million lower in 2015 compared to 2014. cash payments for plant , property and equipment were $ 286 million in 2015 versus payments of $ 328 million in 2014 , a decrease of $ 42 million .
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Suspicious Activity Report : `` total revenue for 2015 was $ 8,209 million , a three percent decrease from $ 8,420 million in 2014. excluding the impact of currency and substrate sales , revenue was up $ 315 million from $ 6,486 million to $ 6,801 million , driven primarily by stronger oe light vehicle volumes in north america , europe , india and china , increased aftermarket sales in north america and south america and new platforms in europe , china and japan , which were partially offset by lower commercial truck , off-highway and other revenue mainly in south america and china . cost of sales : cost of sales for 2015 was $ 6,845 million , or 83.4 percent of sales , compared to $ 7,025 million , or 83.4 percent of sales in 2014. the following table lists the primary drivers behind the change in cost of sales ( $ millions ) . replace_table_token_14_th the decrease in cost of sales was due to the impact of currency exchange rates , lower net material costs , and lower other costs , mainly manufacturing , partially offset by the year-over-year increase in volume . 41 gross margin : revenue less cost of sales for 2015 was $ 1,364 million , or 16.6 percent of sales , versus $ 1,395 million , or 16.6 percent of sales in 2014. the effect on gross margin resulting from year-over-year increase in volume , lower net material costs and lower other costs , mainly manufacturing , was more than offset by unfavorable currency . engineering , research and development : engineering , research and development expense was $ 146 million and $ 169 million in 2015 and 2014 , respectively , mainly due to currency impact and the timing of customers ' recoveries . selling , general and administrative ( sg & a ) : selling , general and administrative expense was down $ 28 million in 2015 , at $ 491 million , compared to $ 519 million in 2014 , mainly due to currency impact . depreciation and amortization : depreciation and amortization expense was $ 203 million and $ 208 million for 2015 and 2014 , respectively . earnings before interest expense , taxes and noncontrolling interests ( โ ebit โ ) was $ 519 million for 2015 , an increase of $ 27 million , when compared to $ 492 million in the prior year . higher oe light vehicle volumes in north america , europe , india and china , increased aftermarket sales in north america and south america , new platforms in europe , china and japan , the benefit of our product cost leadership initiatives and savings from previous restructuring activities were partially offset by lower commercial truck , off-highway and other revenue mainly in south america and china , unfavorable mix , higher restructuring costs and $ 64 million of negative currency . ebit for 2015 also benefited from the timing of a customer recovery in china clean air of $ 5 million . ebit for 2014 included a $ 7 million adjustment to workers ' compensation reserves . results from operations net sales and operating revenues for years 2015 and 2014 the tables below reflect our revenues for 2015 and 2014. we show the component of our oe revenue represented by substrate sales . while we generally have primary design , engineering and manufacturing responsibility for oe emission control systems , we do not manufacture substrates . substrates are porous ceramic filters coated with a catalyst - typically , precious metals such as platinum , palladium and rhodium . these are supplied to us by tier 2 suppliers generally as directed by our oe customers . we generally earn a small margin on these components of the system . as the need for more sophisticated emission control solutions increases to meet more stringent environmental regulations , and as we capture more diesel aftertreatment business , these substrate components have been increasing as a percentage of our revenue . while these substrates dilute our gross margin percentage , they are a necessary component of an emission control system . our value-add content in an emission control system includes designing the system to meet environmental regulations through integration of the substrates into the system , maximizing use of thermal energy to heat up the catalyst quickly , efficiently managing airflow to reduce back pressure as the exhaust stream moves past the catalyst , managing the expansion and contraction of the emission control system components due to temperature extremes experienced by an emission control system , using advanced acoustic engineering tools to design the desired exhaust sound , minimizing the opportunity for the fragile components of the substrate to be damaged when we integrate it into the emission control system and reducing unwanted noise , vibration and harshness transmitted through the emission control system . we present these substrate sales separately in the following table because we believe investors utilize this information to understand the impact of this portion of our revenues on our overall business and because it removes the impact of potentially volatile precious metals pricing from our revenues . while our original equipment customers generally assume the risk of precious metals pricing volatility , it impacts our reported revenues . presenting revenues that exclude โ substrates โ used in catalytic converters and diesel particulate filters removes this impact . additionally , we present these reconciliations of revenues in order to reflect value-add revenues without the effect of changes in foreign currency rates . we have not reflected any currency impact in the 2014 table since this is the base period for measuring the effects of currency during 2015 on our operations . we believe investors find this information useful in understanding period-to-period comparisons in our revenues . story_separator_special_tag ebit as a percentage of revenues for asia pacific in 2014 was even when compared to 2013. the benefit from higher light vehicle production volumes , new platforms and higher commercial truck and off-highway vehicle revenues in china and japan and restructuring savings in australia was offset by lower volumes in australia and thailand , higher engineering expenses and higher restructuring and related expenses . 50 in the ride performance division , ebit as a percentage of revenues in 2014 was up two percentage points compared to the 2013. in 2014 , ebit as a percentage of revenues for north america was up one percentage point compared to 2013. the benefits of increased light vehicle and commercial truck volumes and positive aftermarket product mix were partially offset by higher restructuring and related expenses and unfavorable currency . ebit as a percentage of revenues in europe , south america and india was up five percentage points in 2014 when compared to 2013. the increase was driven by lower year-over-year restructuring and related expenses , increased light vehicle and commercial truck volumes in europe , higher aftermarket revenues in south america and india and year-over-year savings from prior restructuring activities , partially offset by lower light vehicle sales in south america and negative currency . in asia pacific , ebit as a percentage of revenues in 2014 was up six percentage points from 2013. ebit benefited from higher light vehicle production volumes in china , savings from prior restructuring activities in australia and positive currency , partially offset by lower volumes in australia . interest expense , net of interest capitalized we reported interest expense in 2015 of $ 67 million ( substantially all in our u.s. operations ) net of interest capitalized of $ 6 million , and $ 91 million ( substantially all in our u.s. operations ) net of interest capitalized of $ 5 million in 2014. included in 2014 was $ 13 million of expense related to our refinancing activities . the decrease was due to lower interest rates from the refinancing completed in december 2014 where we extended maturities , increased the size of our senior secured credit facility and reduced the rates on the credit facility and refinanced the senior unsecured notes with new maturity dates bearing lower interest rates . we reported interest expense in 2014 of $ 91 million ( substantially all in our u.s. operations ) net of interest capitalized of $ 5 million , up from $ 80 million ( substantially all in our u.s. operations ) net of interest capitalized of $ 4 million in 2013. included in 2014 was $ 13 million of expense related to our refinancing activities . excluding the refinancing expenses , interest expense decreased by $ 2 million in 2014 compared to 2013. on december 31 , 2015 , we had $ 758 million in long-term debt obligations that have fixed interest rates . of that amount , $ 500 million is fixed through december 2020 , $ 225 million is fixed through december 2024 and the remainder is fixed from 2015 through 2025. we also have $ 382 million in long-term debt obligations that are subject to variable interest rates . for more detailed explanations on our debt structure and senior credit facility refer to โ liquidity and capital resources โ capitalization โ later in this management 's discussion and analysis . income taxes we reported income tax expense of $ 149 million in 2015. the tax expense recorded in 2015 included a net tax benefit of $ 15 million primarily relating to prior year u.s. research and development tax credits , changes to uncertain tax positions , and prior year income tax adjustments . we reported an income tax expense of $ 131 million for 2014. the tax expense recorded in 2014 includes a net tax benefit of $ 11 million for prior year tax adjustments primarily relating to changes to uncertain tax positions and prior year income tax estimates . we reported an income tax expense of $ 122 million for 2013. the tax expense recorded in 2013 includes a net tax benefit of $ 25 million for tax adjustments primarily related to recognizing a u.s. tax benefit for foreign taxes and changes to prior year estimates including changes to uncertain tax positions . the u.s. tax benefit for foreign taxes is driven by our ability to claim a u.s. foreign tax credit beginning in 2013. the u.s. foreign tax credit regime provides for a credit against u.s. taxes otherwise payable for foreign taxes paid with regard to dividends , interest and royalties paid to us in the u.s. we believe it is reasonably possible that up to $ 10 million in unrecognized tax benefits related to the expiration of foreign statute of limitations and the conclusion of income tax examinations may be recognized within the next twelve months . our federal net operating loss ( `` nol `` ) at december 31 , 2013 totaled $ 37 million . we had fully utilized our nol as of june 30 , 2014. the state nols expire in various tax years through 2032. restructuring and other charges over the past several years , we have adopted plans to restructure portions of our operations . these plans were approved by our board of directors and were designed to reduce operational and administrative overhead costs throughout the business . in 2013 , we incurred $ 78 million in restructuring and related costs , primarily related to european cost reduction efforts , including non-cash asset write downs of $ 3 million , the costs to exit the distribution of aftermarket exhaust products and ending production of leaf springs in australia , headcount reductions in various regions , and the net impact of freezing our defined benefit plans in the united kingdom , of which $ 70 million was recorded in cost of sales , $ 6 million in sg & a , $ 1 million in engineering
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2,590 | interest and miscellaneous income was $ 4,026,000 for the year ended december 31 , 2015 as compared to $ 45,000 for the same period of 2014 , an increase of $ 3,981,000. miscellaneous income is higher in 2015 than for the same period in 2014 due to change in fair value of our contingent consideration liability ( $ 3,898,000 ) related to the acquisition of abeona ohio and write-offs of certain accounts payables ( $ 38,000 ) and interest income ( $ 45,000 ) . interest and other expense was $ 6,000 for the year ended december 31 , 2015 as compared to $ 582,000 in the same period of 2014 , a decrease of $ 576,000. the interest in 2014 represents interest accrued on unpaid dividends . all dividends and accrued interest on dividends due were paid in december 2014. there are no more dividends accruing . we recorded a loss for the derivative liability related to preferred stock of $ 23,110,000 for the year ended december 31 , 2014. the preferred stock related to the dividends was converted into common stock in december 2014. preferred stock dividends of $ 2,875,000 were accrued for the year ended december 31 , 2014. the preferred stock related to the dividends was converted into common stock in december 2014. net loss allocable to common stockholders for the year ended december 31 , 2015 was $ 14,526,000 , or a $ 0.53 basic and diluted loss per common share as compared to a net loss of $ 29,653,000 , or a $ 15.26 basic and diluted loss per common share , for the same period in 2014 , a decreased loss of $ 15,127,000. story_separator_special_tag trials ; ยท the costs involved in filing , prosecuting and enforcing patent claims ; ยท the costs involved in conducting clinical trials ; ยท competing technological developments ; ยท the cost of manufacturing and scale-up ; ยท the ability to establish and maintain effective commercialization arrangements and activities ; and ยท successful regulatory filings . we have devoted substantially all of our efforts and resources to research and development conducted on our own behalf . the following table summarizes research and development spending by project category , which spending includes , but is not limited to , payroll and personnel expense , lab supplies , preclinical expense , development cost , clinical trial expense , outside manufacturing expense and consulting expense : replace_table_token_2_th ( 1 ) cumulative spending from inception of the company or project through december 31 , 2015 . ( 2 ) includes other projects which the company is no longer focused . 32 due to uncertainties and certain of the risk factors described above , including those relating to our ability to successfully commercialize our drug candidates , our ability to obtain necessary additional capital to fund operations in the future , our ability to successfully manufacture our products and our product candidates in clinical quantities or for commercial purposes , government regulation to which we are subject , the uncertainty associated with preclinical and clinical testing , intense competition that we face , market acceptance of our products and protection of our intellectual property , it is not possible to reliably predict future spending or time to completion by project or product category or the period in which material net cash inflows from significant projects are expected to commence . if we are unable to timely complete a particular project , our research and development efforts could be delayed or reduced , our business could suffer depending on the significance of the project and we might need to raise additional capital to fund operations , as discussed in the risk factors above , including without limitation those relating to the uncertainty of the success of our research and development activities and our ability to obtain necessary additional capital to fund operations in the future . as discussed in such risk factors , delays in our research and development efforts and any inability to raise additional funds could cause us to eliminate one or more of our research and development programs . we plan to continue our policy of investing any available funds in certificates of deposit , money market funds , government securities and investment-grade interest-bearing securities . we do not invest in derivative financial instruments . we do not believe inflation or changing prices have had a material impact on our revenue or operating costs in the past three years . climate change we do not believe there is anything unique to our business which would result in climate change regulations having a disproportional effect on us as compared to u.s. industry overall . critical accounting policies and estimates the preparation of our consolidated financial statements in conformity with accounting principles generally accepted in the u.s. requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities , disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reported period . in applying our accounting principles , we must often make individual estimates and assumptions regarding expected outcomes or uncertainties . as you might expect , the actual results or outcomes are often different than the estimated or assumed amounts . these differences are usually minor and are included in our consolidated financial statements as soon as they are known . our estimates , judgments and assumptions are continually evaluated based on available information and experience . because of the use of estimates inherent in the financial reporting process , actual results could differ from those estimates . receivables receivables are reported in the balance sheets at the outstanding amount net of an allowance for doubtful accounts . we continually evaluate the creditworthiness of our customers and their financial condition and generally do not require collateral . story_separator_special_tag the allowance for doubtful accounts is based upon reviews of specific customer balances , historic losses , and general economic conditions . as of december 31 , 2015 and 2014 , no allowance was recorded as all accounts were considered collectible . 33 licensed technology we maintain licensed technology on our consolidated balance sheet until either the licensed technology agreement underlying it is completed or the asset becomes impaired . when we determine that an asset has become impaired or we abandon a project , we write down the carrying value of the related intangible asset to its fair value and take an impairment charge in the period in which the impairment occurs . generally licensed technology is amortized over the life of the patent or the agreement . we test our intangible assets for impairment on an annual basis , or more frequently if indicators are present or changes in circumstance suggest that impairment may exist . events that could result in an impairment , or trigger an interim impairment assessment , include the receipt of additional clinical or nonclinical data regarding our drug candidate or a potentially competitive drug candidate , changes in the clinical development program for a drug candidate or new information regarding potential sales for the drug . in connection with each annual impairment assessment and any interim impairment assessment , we compare the fair value of the asset as of the date of the assessment with the carrying value of the asset on our consolidated balance sheet . in 2015 , we did not impair any licensed technology . gene therapy license agreements on may 15 , 2015 , we acquired abeona therapeutics llc which had a an exclusive license through nationwide children 's hospital to the ab-101 and ab-102 patent portfolios for developing treatments for patients with sanfilippo syndrome type a and type b. this portfolio comprises 1 patent family : โ products and methods for delivery of polynuleotides by adeno-associated virus for lysosomal storage disorders โ . additionally , abeona has secured fda orphan drug designation for both sanfilippo a and b , which will provide 7 years of post-launch market exclusivity for both abx-a and abx-b in the u.s. abeona will be seeking orphan drug status within the ema , which will grant 10 years of post-market exclusivity in the european union . the license is amortized over the life of the license of 20 years . on june 5 , 2015 , we entered into an exclusive , worldwide , licensing agreement with the unemed corporation , the technology transfer and commercialization office for the university of nebraska medical center ( unmc ) in omaha , nebraska , for an aav gene therapy for the treatment of juvenile batten disease . we licensed the rights to two patents ( 62/092,501 and 62/146,793 ) . under the terms of the licensing agreement , we paid a license fee of $ 75,000 and will pay milestone payments on certain milestone events . commencing with the first commercial sale of licensed products a royalty will be paid . terms of the agreement require we execute a sponsored research agreement with unmc focused on additional efficacy studies within 12 months . on october 14 , 2015 we entered into a sponsored research agreement with unmc to support ongoing aav9/cln3 projects in the amount of $ 215,000. on june 5 , 2015 , we entered into an exclusive , worldwide , licensing agreement with the university of minnesota for an aav gene therapy for the treatment of patients with fanconi anemia ( fa ) disorder and other rare blood diseases . we licensed one patent ( 62/000,590 ) , method for editing a genetic sequence . under terms of the licensing agreement , we paid a license fee of $ 80,000 , will pay an additional license fee of $ 50,000 , will pay annual maintenance fees and a royalty fee with the first commercial sale of licensed products . on september 17 , 2015 , we entered into a nonexclusive license agreement with stanford university for an aav delivery vector for the treatment of fa and rare blood disease platform . this license augments the university of minnesota agreement . we licensed two patents ( 13/594,773 and epo 12756603.2 ) . under terms of the licensing agreement , we paid a license fee of $ 25,000 , will pay annual maintenance fees and a royalty fee with the first commercial sale of licensed products . plasma-based therapeutics license agreements on september 22 , 2014 , we entered into an exclusive , worldwide licensing agreement with licensor to obtain rights to utilize and to sub-license to other pharmaceuticals firms , its patented methods for the extraction of therapeutic biologics from human plasma . under the terms of the licensing agreement , as amended on january 23 , 2015 , we paid a license fee of $ 1 million in cash , will pay $ 4,000,000 in cash or 1,096,151 shares of our common stock in 2017 , a regulatory approval milestone payment of 513,375 shares of our common stock upon the first fda regulatory approval of a drug derived from the licensor 's proprietary sdf process , and a tiered royalty on annual net sales of plasma fractions produced with licensor 's proprietary sdf process . the license is amortized over the life of the patent of 11 years . goodwill as of december 31 , 2015 , goodwill of $ 32.5 million was recorded on the company 's balance sheet . the implied fair value of goodwill represented the excess of the abeona ohio 's value over and above the fair value of its tangible assets and identifiable intangible assets . in accordance with accounting standards codification ( โ asc โ ) no . 350 โ intangibles โ goodwill and other , goodwill is not amortized , but is rather tested annually for impairment and whenever changes in circumstances occur that would indicate impairment
| liquidity and capital resources we have historically funded our operations primarily through public and private sales of common stock , preferred stock , convertible notes and through licensing agreements . our principal source of liquidity is cash and cash equivalents . licensing payments and royalty revenues provided limited funding for operations during the period ended december 31 , 2015. as of december 31 , 2015 , our cash and cash equivalents were $ 40,138,000. as of december 31 , 2015 , our working capital was $ 39,091,000. our working capital at december 31 , 2015 represented an increase of $ 30,434,000 as compared to our working capital as of december 31 , 2014 of $ 8,657,000. the net increase in the working capital at december 31 , 2015 reflects financings , warrant exercises and the acquisition of abeona therapeutics llc ( abeona ohio ) less twelve months of net operating costs and changes in current assets and liabilities . on july 31 , 2015 we closed an upsized $ 15.5 million direct placement of registered common stock with institutional investors , including soros fund management and perceptive life science fund , and two members of our board of directors . the financing was comprised of 2.83 million shares of our common stock at a price of $ 5.50 per share . on may 11 , 2015 , we closed a $ 10 million private placement of common stock consisting of 1,250,000 shares of our common stock , at a price of $ 8.00 per share and warrants to purchase 625,000 shares of common stock . the warrants have an exercise price of $ 8.00 per share and are exercisable for 30 months from the closing date .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources we have historically funded our operations primarily through public and private sales of common stock , preferred stock , convertible notes and through licensing agreements . our principal source of liquidity is cash and cash equivalents . licensing payments and royalty revenues provided limited funding for operations during the period ended december 31 , 2015. as of december 31 , 2015 , our cash and cash equivalents were $ 40,138,000. as of december 31 , 2015 , our working capital was $ 39,091,000. our working capital at december 31 , 2015 represented an increase of $ 30,434,000 as compared to our working capital as of december 31 , 2014 of $ 8,657,000. the net increase in the working capital at december 31 , 2015 reflects financings , warrant exercises and the acquisition of abeona therapeutics llc ( abeona ohio ) less twelve months of net operating costs and changes in current assets and liabilities . on july 31 , 2015 we closed an upsized $ 15.5 million direct placement of registered common stock with institutional investors , including soros fund management and perceptive life science fund , and two members of our board of directors . the financing was comprised of 2.83 million shares of our common stock at a price of $ 5.50 per share . on may 11 , 2015 , we closed a $ 10 million private placement of common stock consisting of 1,250,000 shares of our common stock , at a price of $ 8.00 per share and warrants to purchase 625,000 shares of common stock . the warrants have an exercise price of $ 8.00 per share and are exercisable for 30 months from the closing date .
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Suspicious Activity Report : interest and miscellaneous income was $ 4,026,000 for the year ended december 31 , 2015 as compared to $ 45,000 for the same period of 2014 , an increase of $ 3,981,000. miscellaneous income is higher in 2015 than for the same period in 2014 due to change in fair value of our contingent consideration liability ( $ 3,898,000 ) related to the acquisition of abeona ohio and write-offs of certain accounts payables ( $ 38,000 ) and interest income ( $ 45,000 ) . interest and other expense was $ 6,000 for the year ended december 31 , 2015 as compared to $ 582,000 in the same period of 2014 , a decrease of $ 576,000. the interest in 2014 represents interest accrued on unpaid dividends . all dividends and accrued interest on dividends due were paid in december 2014. there are no more dividends accruing . we recorded a loss for the derivative liability related to preferred stock of $ 23,110,000 for the year ended december 31 , 2014. the preferred stock related to the dividends was converted into common stock in december 2014. preferred stock dividends of $ 2,875,000 were accrued for the year ended december 31 , 2014. the preferred stock related to the dividends was converted into common stock in december 2014. net loss allocable to common stockholders for the year ended december 31 , 2015 was $ 14,526,000 , or a $ 0.53 basic and diluted loss per common share as compared to a net loss of $ 29,653,000 , or a $ 15.26 basic and diluted loss per common share , for the same period in 2014 , a decreased loss of $ 15,127,000. story_separator_special_tag trials ; ยท the costs involved in filing , prosecuting and enforcing patent claims ; ยท the costs involved in conducting clinical trials ; ยท competing technological developments ; ยท the cost of manufacturing and scale-up ; ยท the ability to establish and maintain effective commercialization arrangements and activities ; and ยท successful regulatory filings . we have devoted substantially all of our efforts and resources to research and development conducted on our own behalf . the following table summarizes research and development spending by project category , which spending includes , but is not limited to , payroll and personnel expense , lab supplies , preclinical expense , development cost , clinical trial expense , outside manufacturing expense and consulting expense : replace_table_token_2_th ( 1 ) cumulative spending from inception of the company or project through december 31 , 2015 . ( 2 ) includes other projects which the company is no longer focused . 32 due to uncertainties and certain of the risk factors described above , including those relating to our ability to successfully commercialize our drug candidates , our ability to obtain necessary additional capital to fund operations in the future , our ability to successfully manufacture our products and our product candidates in clinical quantities or for commercial purposes , government regulation to which we are subject , the uncertainty associated with preclinical and clinical testing , intense competition that we face , market acceptance of our products and protection of our intellectual property , it is not possible to reliably predict future spending or time to completion by project or product category or the period in which material net cash inflows from significant projects are expected to commence . if we are unable to timely complete a particular project , our research and development efforts could be delayed or reduced , our business could suffer depending on the significance of the project and we might need to raise additional capital to fund operations , as discussed in the risk factors above , including without limitation those relating to the uncertainty of the success of our research and development activities and our ability to obtain necessary additional capital to fund operations in the future . as discussed in such risk factors , delays in our research and development efforts and any inability to raise additional funds could cause us to eliminate one or more of our research and development programs . we plan to continue our policy of investing any available funds in certificates of deposit , money market funds , government securities and investment-grade interest-bearing securities . we do not invest in derivative financial instruments . we do not believe inflation or changing prices have had a material impact on our revenue or operating costs in the past three years . climate change we do not believe there is anything unique to our business which would result in climate change regulations having a disproportional effect on us as compared to u.s. industry overall . critical accounting policies and estimates the preparation of our consolidated financial statements in conformity with accounting principles generally accepted in the u.s. requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities , disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reported period . in applying our accounting principles , we must often make individual estimates and assumptions regarding expected outcomes or uncertainties . as you might expect , the actual results or outcomes are often different than the estimated or assumed amounts . these differences are usually minor and are included in our consolidated financial statements as soon as they are known . our estimates , judgments and assumptions are continually evaluated based on available information and experience . because of the use of estimates inherent in the financial reporting process , actual results could differ from those estimates . receivables receivables are reported in the balance sheets at the outstanding amount net of an allowance for doubtful accounts . we continually evaluate the creditworthiness of our customers and their financial condition and generally do not require collateral . story_separator_special_tag the allowance for doubtful accounts is based upon reviews of specific customer balances , historic losses , and general economic conditions . as of december 31 , 2015 and 2014 , no allowance was recorded as all accounts were considered collectible . 33 licensed technology we maintain licensed technology on our consolidated balance sheet until either the licensed technology agreement underlying it is completed or the asset becomes impaired . when we determine that an asset has become impaired or we abandon a project , we write down the carrying value of the related intangible asset to its fair value and take an impairment charge in the period in which the impairment occurs . generally licensed technology is amortized over the life of the patent or the agreement . we test our intangible assets for impairment on an annual basis , or more frequently if indicators are present or changes in circumstance suggest that impairment may exist . events that could result in an impairment , or trigger an interim impairment assessment , include the receipt of additional clinical or nonclinical data regarding our drug candidate or a potentially competitive drug candidate , changes in the clinical development program for a drug candidate or new information regarding potential sales for the drug . in connection with each annual impairment assessment and any interim impairment assessment , we compare the fair value of the asset as of the date of the assessment with the carrying value of the asset on our consolidated balance sheet . in 2015 , we did not impair any licensed technology . gene therapy license agreements on may 15 , 2015 , we acquired abeona therapeutics llc which had a an exclusive license through nationwide children 's hospital to the ab-101 and ab-102 patent portfolios for developing treatments for patients with sanfilippo syndrome type a and type b. this portfolio comprises 1 patent family : โ products and methods for delivery of polynuleotides by adeno-associated virus for lysosomal storage disorders โ . additionally , abeona has secured fda orphan drug designation for both sanfilippo a and b , which will provide 7 years of post-launch market exclusivity for both abx-a and abx-b in the u.s. abeona will be seeking orphan drug status within the ema , which will grant 10 years of post-market exclusivity in the european union . the license is amortized over the life of the license of 20 years . on june 5 , 2015 , we entered into an exclusive , worldwide , licensing agreement with the unemed corporation , the technology transfer and commercialization office for the university of nebraska medical center ( unmc ) in omaha , nebraska , for an aav gene therapy for the treatment of juvenile batten disease . we licensed the rights to two patents ( 62/092,501 and 62/146,793 ) . under the terms of the licensing agreement , we paid a license fee of $ 75,000 and will pay milestone payments on certain milestone events . commencing with the first commercial sale of licensed products a royalty will be paid . terms of the agreement require we execute a sponsored research agreement with unmc focused on additional efficacy studies within 12 months . on october 14 , 2015 we entered into a sponsored research agreement with unmc to support ongoing aav9/cln3 projects in the amount of $ 215,000. on june 5 , 2015 , we entered into an exclusive , worldwide , licensing agreement with the university of minnesota for an aav gene therapy for the treatment of patients with fanconi anemia ( fa ) disorder and other rare blood diseases . we licensed one patent ( 62/000,590 ) , method for editing a genetic sequence . under terms of the licensing agreement , we paid a license fee of $ 80,000 , will pay an additional license fee of $ 50,000 , will pay annual maintenance fees and a royalty fee with the first commercial sale of licensed products . on september 17 , 2015 , we entered into a nonexclusive license agreement with stanford university for an aav delivery vector for the treatment of fa and rare blood disease platform . this license augments the university of minnesota agreement . we licensed two patents ( 13/594,773 and epo 12756603.2 ) . under terms of the licensing agreement , we paid a license fee of $ 25,000 , will pay annual maintenance fees and a royalty fee with the first commercial sale of licensed products . plasma-based therapeutics license agreements on september 22 , 2014 , we entered into an exclusive , worldwide licensing agreement with licensor to obtain rights to utilize and to sub-license to other pharmaceuticals firms , its patented methods for the extraction of therapeutic biologics from human plasma . under the terms of the licensing agreement , as amended on january 23 , 2015 , we paid a license fee of $ 1 million in cash , will pay $ 4,000,000 in cash or 1,096,151 shares of our common stock in 2017 , a regulatory approval milestone payment of 513,375 shares of our common stock upon the first fda regulatory approval of a drug derived from the licensor 's proprietary sdf process , and a tiered royalty on annual net sales of plasma fractions produced with licensor 's proprietary sdf process . the license is amortized over the life of the patent of 11 years . goodwill as of december 31 , 2015 , goodwill of $ 32.5 million was recorded on the company 's balance sheet . the implied fair value of goodwill represented the excess of the abeona ohio 's value over and above the fair value of its tangible assets and identifiable intangible assets . in accordance with accounting standards codification ( โ asc โ ) no . 350 โ intangibles โ goodwill and other , goodwill is not amortized , but is rather tested annually for impairment and whenever changes in circumstances occur that would indicate impairment
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2,591 | importantly , we continually evaluate various strategic options that we believe may enable us to enhance stockholder value , including the possible separation of these two distinct businesses . avidโour cdmo business avid provides fully-integrated cgmp services from cell line development to commercial biomanufacturing of large molecules , such as monoclonal antibodies and recombinant proteins for third-party customers while also supporting peregrine 's internal drug development business . we believe this integration offers considerable time and cost efficiencies for our internal drug development business . 30 we have been developing and manufacturing biologics since 1993 in our franklin biomanufacturing facility ( the โ franklin facility โ ) located at our current headquarters in tustin , california and formed avid in 2002 to offer these services to third-party customers using . in march 2016 , we expanded our manufacturing capacity through the launch of our myford biomanufacturing facility ( the โ myford facility โ ) , which doubled our manufacturing capacity . the 42,000 square foot facility , which is our second biomanufacturing facility , can accommodate single-use bioreactors up to the 2,000-liter manufacturing scale . the myford facility was designed to accommodate a fully disposable biomanufacturing process for products in late stage clinical development to commercial . to date , myford facility has been utilized to complete a number of process validation runs for our third-party customers , which may lead to future commercial production , and has supported the process validation of our internal product , bavituximab . the myford facility is located adjacent to our franklin facility . as we look to expand our cdmo business , in february 2017 , we leased an additional 42,000 square feet of vacant warehouse space within the same building as our existing myford facility . the proximity of this space will allow us to utilize existing manufacturing infrastructure that we believe should enhance our manufacturing efficiencies and reduce the overall cost and timeframe to construct a third biomanufacturing facility . although we previously anticipated that the new manufacturing facility would be constructed and ready for manufacturing activities by mid-calendar year 2018 , due to unanticipated changes in and or timing of customer demand ( as discussed above ) , we have decided to defer construction of this third facility until demand from existing or potential new customers is expected to exceed the current capacity at our franklin facility and myford facility . additionally , commencement of construction is also subject to our ability to raise sufficient additional capital to support this expansion effort . as a result , we presently do not expect to commence construction of this third facility prior to april 30 , 2018. peregrineโour research and development business peregrine is developing therapeutics designed to fight cancer by reversing the immunosuppressive environment that tumors establish in order to proliferate . by doing so , these therapeutics allow the immune system to recognize and destroy tumor cells . bavituximab is our lead immunotherapy candidate and currently we are collaborating with the national comprehensive cancer networkยฎ ( โ nccn โ ) and memorial sloan kettering cancer center ( โ mskcc โ ) , to evaluate the potential of bavituximab in combination with immune stimulating therapies . clinical development strategy in june 2016 , we announced a clinical development strategy focused on conducting small , early stage studies of bavituximab in combination with immune stimulating therapies . these trials may be conducted independently , in conjunction with our collaborators , or through investigator sponsored trials ( โ ists โ ) . the goal of these trials is to generate compelling clinical and translational data demonstrating bavituximab 's immunotherapeutic mechanism of action in a combination treatment setting . additionally , we are in the process of completing an extensive review and analysis of the available data from the discontinued phase iii sunrise trial discussed below and testing the numerous collected samples for potential biomarkers in order to determine if certain subgroups may have benefited more from the bavituximab treatment . we believe such information will assist us in guiding the bavituximab clinical program . in keeping with this strategy , we are evaluating options to advance clinical development bavituximab in an efficient and cost-effective way . we believe this strategy will allow us to ( i ) continue our research and development activities while avoiding costly , later stage clinical trials , thereby allowing us to achieve profitability sooner , and ( ii ) generate additional data that we believe , if positive , could create future potential value , including attracting potential licensing partners or re-engaging our collaboration with astrazeneca . 31 nccn collaboration in january 2016 , we announced that we entered into a research collaboration with nccn , a not-for-profit alliance of 27 of the world 's leading cancer centers , to expand the clinical research and development of bavituximab for the treatment of a range of tumors . under this research collaboration , we are funding three ists and related correlative studies with bavituximab at nccn member institutions and their affiliate community hospitals through a $ 2 million research grant to nccn 's oncology research program . nccn is responsible for oversight and monitoring of the three clinical studies awarded under the research grant . in september 2016 , nccn announced that investigators at the following nccn-affiliated institutions received the grant award : 1. moffitt cancer centerโa phase i trial of sorafenib and bavituximab plus stereotactic body radiation therapy for unresectable hepatitis c associated hepatocellular carcinoma . this trial is open for enrollment . 2. massachusetts general hospital cancer centerโphase i/ii clinical trial of bavituximab with radiation and temozolomide for patients with newly diagnosed glioblastoma . this trial is open for enrollment . 3. the sidney kimmel comprehensive cancer center at johns hopkinsโphase ii study of pembrolizumab and bavituximab for progressive recurrent/metastatic squamous cell carcinoma of the head and neck . story_separator_special_tag revenue is recognized for these โ bill-and-hold โ arrangements in accordance with the authoritative guidance , which requires , among other things , the existence of a valid business purpose for the arrangement ; the โ bill-and-hold โ arrangement is at the request of the customer ; title and risk of ownership must pass to the customer ; the product is complete and ready for shipment ; a fixed delivery date that is reasonable and consistent with the customer 's business practices ; the product has been separated from our inventory ; and no further performance obligations by us exist . in addition , we also follow the authoritative guidance when reporting revenue as gross when we act as a principal versus reporting revenue as net when we act as an agent . for transactions in which we act as a principal , have discretion to choose suppliers , bear credit and inventory risk and perform a substantive part of the services , revenue is recorded at the gross amount billed to a customer and costs associated with these reimbursements are reflected as a component of cost of sales for contract manufacturing services . any amounts received prior to satisfying our revenue recognition criteria are recorded as deferred revenue or customer deposits in the accompanying consolidated financial statements . we also record a provision for estimated contract losses , if any , in the period in which they are determined . research and development expenses research and development expenses primarily include ( i ) payroll and related costs , including share-based compensation associated with research and development personnel , ( ii ) costs related to clinical trials and preclinical testing of our technologies under development , ( iii ) costs to develop and manufacture the product candidates , including raw materials and supplies , product testing , depreciation , and facility related expenses , ( iv ) expenses for research services provided by universities and contract laboratories , including sponsored research funding , and ( v ) other research and development expenses . research and development expenses are charged to expense as incurred when these expenditures relate to our research and development efforts and have no alternative future uses . clinical trial costs are a significant component of our research and development expenses . we have a history of contracting with third parties that perform various clinical trial activities on our behalf in the ongoing development of our product candidates . the financial terms of these contracts are subject to negotiations and may vary from contract to contract and may result in uneven payment flow . expenses related to clinical trials are accrued based on our estimates and or representations from third parties ( including clinical research organizations ) regarding services performed . if the contracted amounts are modified ( for instance , as a result of changes in the clinical trial protocol or scope of work to be performed ) , we modify our accruals accordingly on a prospective basis . revisions in the scope of a contract are charged to expense in the period in which the facts that give rise to the revision become reasonably certain . there were no material adjustments for a change in estimate to research and development expenses in the accompanying consolidated financial statements in any of the three years ended april 30 , 2017. under certain research and development agreements , we are obligated to make certain advance payments , including nonrefundable amounts , for goods or services that will be used or rendered for future research and development activities and are deferred and capitalized as prepaid research and development expenses . these advance payments are recognized as an expense in the period the related goods are delivered or the related services are performed . we assess our prepaid research and development expenses for impairment when events or changes in circumstances indicate that the carrying amount of the prepaid expense may not be recoverable or provide future economic benefit . 37 in addition , under certain in-licensing agreements associated with the research and development of our product candidates , we are obligated to pay certain milestone payments based on potential clinical development and regulatory milestones ( as described in note 4 to the accompanying consolidated financial statements ) . these milestone payments have no alternative future uses ( in other research and development projects or otherwise ) and therefore have no separate economic values and are expensed as research and development costs at the time the costs are incurred . we have no in-licensed product candidates that have alternative future uses in research and development projects or otherwise . in addition , we do not perform any research and development activities for any unrelated entities . share-based compensation we account for stock options and other share-based awards granted under our equity compensation plans in accordance with the authoritative guidance for share-based compensation . the estimated fair value of share-based payments to employees in exchange for services is measured at the grant date , using a fair value based method , such as a black-scholes option valuation model , and is recognized as expense on a straight-line basis over the requisite service periods . the fair value of modifications to share-based awards , if any , is generally estimated using a black-scholes option valuation model , unless a lattice model is required . share-based compensation expense recognized during the period is based on the value of the portion of the share-based payment that is ultimately expected to vest during the period and is reduced for estimated forfeitures . the authoritative guidance requires forfeitures to be estimated at the time of grant and revised , if necessary , in subsequent periods if actual forfeitures differ from those estimates . as of april 30 , 2017 , there were no outstanding share-based awards with market or performance conditions . the estimated fair value of stock options are measured at the grant date , using a
| cash used in operating activities . net cash used in operating activities represents our ( i ) net loss , as reported , ( ii ) less non-cash operating expenses , and ( iii ) net changes in the timing of cash flows as reflected by the changes in operating assets and liabilities , as described in the below table : replace_table_token_8_th net cash used in operating activities increased $ 195,000 to $ 39,786,000 for fiscal year 2017 compared to net cash used in operating activities of $ 39,591,000 for fiscal year 2016. this increase in net cash used in operating activities was due to a net change in operating assets and liabilities of $ 27,068,000 due to the timing of cash receipts and expenditures primarily associated with customer deposits , deferred revenue , accrued clinical trial and related fees , inventories , and trade and other receivables , offset by a decrease of $ 26,873,000 in net loss reported for fiscal year 2017 after deducting non-cash operating expenses as described in the above table . net cash used in operating activities increased $ 3,572,000 to $ 39,591,000 for fiscal year 2016 compared to net cash used in operating activities of $ 36,019,000 for fiscal year 2015. this increase in net cash used in operating activities was due to an increase of $ 6,592,000 in net loss reported for fiscal year 2016 after deducting non-cash operating expenses as described in the above table , offset by a net change in operating assets and liabilities of $ 3,020,000 due to the timing of cash receipts and expenditures . cash used in investing activities . net cash used in investing activities for the fiscal years ended april 30 , 2017 , 2016 , and 2015 , was $ 2,992,000 , $ 8,791,000 , and $ 8,449,000 , respectively .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash used in operating activities . net cash used in operating activities represents our ( i ) net loss , as reported , ( ii ) less non-cash operating expenses , and ( iii ) net changes in the timing of cash flows as reflected by the changes in operating assets and liabilities , as described in the below table : replace_table_token_8_th net cash used in operating activities increased $ 195,000 to $ 39,786,000 for fiscal year 2017 compared to net cash used in operating activities of $ 39,591,000 for fiscal year 2016. this increase in net cash used in operating activities was due to a net change in operating assets and liabilities of $ 27,068,000 due to the timing of cash receipts and expenditures primarily associated with customer deposits , deferred revenue , accrued clinical trial and related fees , inventories , and trade and other receivables , offset by a decrease of $ 26,873,000 in net loss reported for fiscal year 2017 after deducting non-cash operating expenses as described in the above table . net cash used in operating activities increased $ 3,572,000 to $ 39,591,000 for fiscal year 2016 compared to net cash used in operating activities of $ 36,019,000 for fiscal year 2015. this increase in net cash used in operating activities was due to an increase of $ 6,592,000 in net loss reported for fiscal year 2016 after deducting non-cash operating expenses as described in the above table , offset by a net change in operating assets and liabilities of $ 3,020,000 due to the timing of cash receipts and expenditures . cash used in investing activities . net cash used in investing activities for the fiscal years ended april 30 , 2017 , 2016 , and 2015 , was $ 2,992,000 , $ 8,791,000 , and $ 8,449,000 , respectively .
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Suspicious Activity Report : importantly , we continually evaluate various strategic options that we believe may enable us to enhance stockholder value , including the possible separation of these two distinct businesses . avidโour cdmo business avid provides fully-integrated cgmp services from cell line development to commercial biomanufacturing of large molecules , such as monoclonal antibodies and recombinant proteins for third-party customers while also supporting peregrine 's internal drug development business . we believe this integration offers considerable time and cost efficiencies for our internal drug development business . 30 we have been developing and manufacturing biologics since 1993 in our franklin biomanufacturing facility ( the โ franklin facility โ ) located at our current headquarters in tustin , california and formed avid in 2002 to offer these services to third-party customers using . in march 2016 , we expanded our manufacturing capacity through the launch of our myford biomanufacturing facility ( the โ myford facility โ ) , which doubled our manufacturing capacity . the 42,000 square foot facility , which is our second biomanufacturing facility , can accommodate single-use bioreactors up to the 2,000-liter manufacturing scale . the myford facility was designed to accommodate a fully disposable biomanufacturing process for products in late stage clinical development to commercial . to date , myford facility has been utilized to complete a number of process validation runs for our third-party customers , which may lead to future commercial production , and has supported the process validation of our internal product , bavituximab . the myford facility is located adjacent to our franklin facility . as we look to expand our cdmo business , in february 2017 , we leased an additional 42,000 square feet of vacant warehouse space within the same building as our existing myford facility . the proximity of this space will allow us to utilize existing manufacturing infrastructure that we believe should enhance our manufacturing efficiencies and reduce the overall cost and timeframe to construct a third biomanufacturing facility . although we previously anticipated that the new manufacturing facility would be constructed and ready for manufacturing activities by mid-calendar year 2018 , due to unanticipated changes in and or timing of customer demand ( as discussed above ) , we have decided to defer construction of this third facility until demand from existing or potential new customers is expected to exceed the current capacity at our franklin facility and myford facility . additionally , commencement of construction is also subject to our ability to raise sufficient additional capital to support this expansion effort . as a result , we presently do not expect to commence construction of this third facility prior to april 30 , 2018. peregrineโour research and development business peregrine is developing therapeutics designed to fight cancer by reversing the immunosuppressive environment that tumors establish in order to proliferate . by doing so , these therapeutics allow the immune system to recognize and destroy tumor cells . bavituximab is our lead immunotherapy candidate and currently we are collaborating with the national comprehensive cancer networkยฎ ( โ nccn โ ) and memorial sloan kettering cancer center ( โ mskcc โ ) , to evaluate the potential of bavituximab in combination with immune stimulating therapies . clinical development strategy in june 2016 , we announced a clinical development strategy focused on conducting small , early stage studies of bavituximab in combination with immune stimulating therapies . these trials may be conducted independently , in conjunction with our collaborators , or through investigator sponsored trials ( โ ists โ ) . the goal of these trials is to generate compelling clinical and translational data demonstrating bavituximab 's immunotherapeutic mechanism of action in a combination treatment setting . additionally , we are in the process of completing an extensive review and analysis of the available data from the discontinued phase iii sunrise trial discussed below and testing the numerous collected samples for potential biomarkers in order to determine if certain subgroups may have benefited more from the bavituximab treatment . we believe such information will assist us in guiding the bavituximab clinical program . in keeping with this strategy , we are evaluating options to advance clinical development bavituximab in an efficient and cost-effective way . we believe this strategy will allow us to ( i ) continue our research and development activities while avoiding costly , later stage clinical trials , thereby allowing us to achieve profitability sooner , and ( ii ) generate additional data that we believe , if positive , could create future potential value , including attracting potential licensing partners or re-engaging our collaboration with astrazeneca . 31 nccn collaboration in january 2016 , we announced that we entered into a research collaboration with nccn , a not-for-profit alliance of 27 of the world 's leading cancer centers , to expand the clinical research and development of bavituximab for the treatment of a range of tumors . under this research collaboration , we are funding three ists and related correlative studies with bavituximab at nccn member institutions and their affiliate community hospitals through a $ 2 million research grant to nccn 's oncology research program . nccn is responsible for oversight and monitoring of the three clinical studies awarded under the research grant . in september 2016 , nccn announced that investigators at the following nccn-affiliated institutions received the grant award : 1. moffitt cancer centerโa phase i trial of sorafenib and bavituximab plus stereotactic body radiation therapy for unresectable hepatitis c associated hepatocellular carcinoma . this trial is open for enrollment . 2. massachusetts general hospital cancer centerโphase i/ii clinical trial of bavituximab with radiation and temozolomide for patients with newly diagnosed glioblastoma . this trial is open for enrollment . 3. the sidney kimmel comprehensive cancer center at johns hopkinsโphase ii study of pembrolizumab and bavituximab for progressive recurrent/metastatic squamous cell carcinoma of the head and neck . story_separator_special_tag revenue is recognized for these โ bill-and-hold โ arrangements in accordance with the authoritative guidance , which requires , among other things , the existence of a valid business purpose for the arrangement ; the โ bill-and-hold โ arrangement is at the request of the customer ; title and risk of ownership must pass to the customer ; the product is complete and ready for shipment ; a fixed delivery date that is reasonable and consistent with the customer 's business practices ; the product has been separated from our inventory ; and no further performance obligations by us exist . in addition , we also follow the authoritative guidance when reporting revenue as gross when we act as a principal versus reporting revenue as net when we act as an agent . for transactions in which we act as a principal , have discretion to choose suppliers , bear credit and inventory risk and perform a substantive part of the services , revenue is recorded at the gross amount billed to a customer and costs associated with these reimbursements are reflected as a component of cost of sales for contract manufacturing services . any amounts received prior to satisfying our revenue recognition criteria are recorded as deferred revenue or customer deposits in the accompanying consolidated financial statements . we also record a provision for estimated contract losses , if any , in the period in which they are determined . research and development expenses research and development expenses primarily include ( i ) payroll and related costs , including share-based compensation associated with research and development personnel , ( ii ) costs related to clinical trials and preclinical testing of our technologies under development , ( iii ) costs to develop and manufacture the product candidates , including raw materials and supplies , product testing , depreciation , and facility related expenses , ( iv ) expenses for research services provided by universities and contract laboratories , including sponsored research funding , and ( v ) other research and development expenses . research and development expenses are charged to expense as incurred when these expenditures relate to our research and development efforts and have no alternative future uses . clinical trial costs are a significant component of our research and development expenses . we have a history of contracting with third parties that perform various clinical trial activities on our behalf in the ongoing development of our product candidates . the financial terms of these contracts are subject to negotiations and may vary from contract to contract and may result in uneven payment flow . expenses related to clinical trials are accrued based on our estimates and or representations from third parties ( including clinical research organizations ) regarding services performed . if the contracted amounts are modified ( for instance , as a result of changes in the clinical trial protocol or scope of work to be performed ) , we modify our accruals accordingly on a prospective basis . revisions in the scope of a contract are charged to expense in the period in which the facts that give rise to the revision become reasonably certain . there were no material adjustments for a change in estimate to research and development expenses in the accompanying consolidated financial statements in any of the three years ended april 30 , 2017. under certain research and development agreements , we are obligated to make certain advance payments , including nonrefundable amounts , for goods or services that will be used or rendered for future research and development activities and are deferred and capitalized as prepaid research and development expenses . these advance payments are recognized as an expense in the period the related goods are delivered or the related services are performed . we assess our prepaid research and development expenses for impairment when events or changes in circumstances indicate that the carrying amount of the prepaid expense may not be recoverable or provide future economic benefit . 37 in addition , under certain in-licensing agreements associated with the research and development of our product candidates , we are obligated to pay certain milestone payments based on potential clinical development and regulatory milestones ( as described in note 4 to the accompanying consolidated financial statements ) . these milestone payments have no alternative future uses ( in other research and development projects or otherwise ) and therefore have no separate economic values and are expensed as research and development costs at the time the costs are incurred . we have no in-licensed product candidates that have alternative future uses in research and development projects or otherwise . in addition , we do not perform any research and development activities for any unrelated entities . share-based compensation we account for stock options and other share-based awards granted under our equity compensation plans in accordance with the authoritative guidance for share-based compensation . the estimated fair value of share-based payments to employees in exchange for services is measured at the grant date , using a fair value based method , such as a black-scholes option valuation model , and is recognized as expense on a straight-line basis over the requisite service periods . the fair value of modifications to share-based awards , if any , is generally estimated using a black-scholes option valuation model , unless a lattice model is required . share-based compensation expense recognized during the period is based on the value of the portion of the share-based payment that is ultimately expected to vest during the period and is reduced for estimated forfeitures . the authoritative guidance requires forfeitures to be estimated at the time of grant and revised , if necessary , in subsequent periods if actual forfeitures differ from those estimates . as of april 30 , 2017 , there were no outstanding share-based awards with market or performance conditions . the estimated fair value of stock options are measured at the grant date , using a
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2,592 | veracyte is now contracted as an in-network service provider to health plans representing over 200 million people in the united states our second commercial product , the percepta classifier , is the first genomic test to gain medicare coverage for improved lung cancer screening and diagnosis , making it a covered benefit for more than 60 million people . 50 fourth quarter and full-year 2018 financial results for the three- and twelve-month periods ended december 31 , 2018 , compared to the prior year : revenue was $ 25.8 million and $ 92.0 million , respectively , an increase of 31 % and 28 % ; gross margin was 66 % and 64 % , respectively , an increase of 6 % and 3 % ; operating expenses , excluding cost of revenue , were $ 20.1 million and $ 81.2 million , respectively , an increase of 12 % and 15 % ; net loss and comprehensive loss was ( $ 3.1 ) million and ( $ 23.0 ) million , respectively , an improvement of 63 % and 26 % ; basic and diluted net loss per common share was ( $ 0.08 ) and ( $ 0.62 ) , respectively , an improvement , of 67 % and 32 % ; net cash used in operating activities was $ 1.2 million and $ 13.5 million , respectively , an improvement of 79 % and 44 % ; cash burn ( 1 ) was $ 1.7 million and $ 15.4 million , respectively , an improvement of 73 % and 39 % ; and cash and cash equivalents was $ 78.0 million at december 31 , 2018 . ( 1 ) a reconciliation of net cash used in operating activities to cash burn has been provided below : to supplement our financial statements prepared in accordance with u. s. gaap , we monitor and consider cash burn , which is a non-u.s. gaap financial measure . this non-u.s. gaap financial measure is not based on any standardized methodology prescribed by u.s. gaap and is not necessarily comparable to similarly-titled measures presented by other companies . we define cash burn as net cash used in operating activities plus net capital expenditures , such as net purchases of property and equipment . we believe cash burn to be a liquidity measure that provides useful information to management and investors about the amount of cash consumed by the operations of the business , including our purchases of property and equipment . a limitation of using this non-u.s. gaap measure is that cash burn does not represent the total change in cash , cash equivalents and restricted cash for the period because it excludes cash provided by or used for other investing and financing activities . we account for this limitation by providing information about our capital expenditures and other investing and financing activities in the statements of cash flows in our financial statements and by presenting cash flows from investing and financing activities in our reconciliation of cash burn . in addition , it is important to note that other companies , including companies in our industry , may not use cash burn , may calculate cash burn in a different manner than we do or may use other financial measures to evaluate their performance , all of which could reduce the usefulness of cash burn as a comparative measure . because of these limitations , cash burn should not be considered in isolation from , or as a substitute for , financial information prepared in accordance with u.s. gaap . the reconciliation of cash burn to net cash used in operating activities is provided in the table below ( in thousands of dollars ) : replace_table_token_4_th 2018 full-year and recent business highlights commercial expansion : grew total genomic test volume to 9,154 tests in the fourth quarter of 2018 , representing 28 % growth over 2017 , which resulted in full-year 2018 growth of 22 % over 2017 , or 31,710 tests . 51 transitioned all afirma customers to the second-generation afirma genomic sequencing classifier ( gsc ) platform and launched the afirma xpression atlas to provide a comprehensive solution that informs both thyroid cancer diagnosis and treatment decisions . notably , 30 % of afirma gsc orders included xpression atlas in 2018 , ahead of the company 's expectations . grew percepta bronchial genomic classifier volume to nearly 1,550 tests in its first full year of commercialization , with genomic volume accelerating 74 % sequentially from the third quarter to the fourth quarter of 2018. esta blished 20 leading early access program ( eap ) sites across the united states for envisia in 2018 , addressing physician demand for patient access to the classifier which improves idiopathic pulmonary fibrosis ( ipf ) diagnosis and builds a solid foundation for the company to commercially expand it in 2019. biopharmaceutical collaborations executed a long-term strategic collaboration with johnson & johnson , llc and johnson & johnson 's lung cancer initiative to advance diagnostics , including a nasal swab test , for early lung cancer detection . veracyte estimates the combined monetary and non-monetary value of the collaboration to be more than $ 50 million . the company believes this collaboration expands its addressable lung cancer diagnostic market to a more than $ 30 billion global opportunity . entered into a research collaboration with loxo oncology , through which loxo has access to data from veracyte 's afirma xpression atlas platform to help in its development of therapies for patients with genetically defined cancers , including thyroid cancer . reimbursement progress : received draft medicare coverage for the envisia genomic classifier through the moldx program , with a final positive coverage decision expected in early 2019. achieved in-network status as a service provider with the last of the major commercial health plans , which veracyte believes will facilitate coverage and reimbursement for its percepta and envisia classifiers . story_separator_special_tag we have also incurred increased selling and marketing expense as a result of investments in our lung product portfolio and believe total selling and marketing expenses will continue to increase as we launch and promote our new tests . general and administrative general and administrative expenses include compensation expenses for executive officers and administrative , billing and client service personnel , professional fees for legal and audit services , occupancy costs , depreciation and amortization , and other expenses such as information technology and miscellaneous expenses offset by allocation of facility and information technology expenses to other functions . for the year ended december 31 , 2018 , approximately 66 % of the average headcount classified as general and administrative encompass our billing and customer care teams . we expect general and administrative expenses to continue to increase as we build our general and administration infrastructure and to stabilize thereafter . intangible asset amortization intangible asset amortization began in april 2015 when we launched the percepta test . the related finite-lived intangible asset with a cost of $ 16.0 million and a net book value of $ 12.0 million at december 31 , 2018 is being amortized over 15 years , using the straight-line method . interest expense interest expense is attributable to our borrowings under debt agreements and capital leases as well as costs associated with the pre-payment of debt . other income , net other income , net consists primarily of sublease rental income and interest income received from payers and from our cash equivalents . critical accounting policies and estimates our management 's discussion and analysis of our financial condition and results of operations is based on our audited financial statements , which have been prepared in accordance with united states generally accepted accounting principles , or u.s. gaap . the preparation of the financial statements requires us 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 revenue generated and expenses incurred during the reporting periods . our estimates are based on our historical experience and on various other factors that we believe are 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 and any such differences may be material . we believe that the accounting policies discussed below are critical to understanding our historical and future performance , as these policies relate to the more significant areas involving management 's judgments and estimates . revenue from diagnostic services 56 we recognize revenue related to billings on an accrual basis based on estimates of the amount that will ultimately be realized . in determining the amount to accrue for a delivered test , we consider factors such as payment history , payer coverage , whether there is a reimbursement contract between the payer and us , payment as a percentage of agreed upon rate ( if applicable ) , amount paid per test and any current developments or changes that could impact reimbursement . these estimates require significant judgment by management . generally , we determine accrual rates based on the average reimbursement from payers for tests that are on average a year old , since it can take a significant period of time to collect from some payers . except in situations where we believe the rate we reasonably expect to collect to vary due to a coverage decision , contract , more recent reimbursement data or evidence to the contrary , we use an average of reimbursement for tests provided over four quarters as it reduces the effects of temporary volatility and seasonal effects . we use judgment in determining accrual rates and our judgments will continue to evolve in the future as we continue to gain reimbursement experience . arrangements with multiple-performance obligations from time to time , we enter into arrangements for the research and development and or commercialization of services . such arrangements may require us to deliver various rights , services and or samples , including intellectual property rights/licenses , research and development services , and or commercialization of services . the underlying terms of these arrangements generally provide for consideration to us in the form of nonrefundable upfront license fees , development and commercial performance milestone payments , royalty payments and or profit sharing . in arrangements involving more than one performance obligation , each required performance obligation is evaluated to determine whether it qualifies as a distinct performance obligation based on whether ( i ) the customer can benefit from the good or service either on its own or together with other resources that are readily available and ( ii ) the good or service is separately identifiable from other promises in the contract . the consideration under the arrangement is then allocated to each separate distinct performance obligation based on its respective relative stand-alone selling price . the estimated selling price of each deliverable reflects our best estimate of what the selling price would be if the deliverable was regularly sold by us on a stand-alone basis or using an adjusted market assessment approach if selling price on a stand-alone basis is not available . the consideration allocated to each distinct performance obligation is recognized as revenue when control of the related goods or services is transferred . consideration associated with at-risk substantive performance milestones is recognized as revenue when it is probable that a significant reversal of the cumulative revenue recognized will not occur . should there be royalties , we utilize the sales and usage-based royalty exception in arrangements that resulted from the license of intellectual property , recognizing revenues generated from royalties or profit sharing as the underlying sales occur . other significant accounting
| cash flows the following table summarizes our cash flows for the years ended december 31 , 2018 , 2017 and 2016 ( in thousands of dollars ) : 63 replace_table_token_12_th cash flows from operating activities cash used in operating activities for the year ended december 31 , 2018 was $ 13.5 million . the net loss of $ 23.0 million includes non-cash charges of $ 6.0 million of stock-based compensation expense and $ 3.9 million of depreciation and amortization , which includes $ 1.1 million of intangible asset amortization . it also includes $ 0.3 million of end-of-term debt obligation accruals . cash used as a result of changes in operating assets and liabilities of $ 0.7 million was primarily due to a decrease in accounts payable of $ 1.6 million , an increase in other assets of $ 0.8 million and increases in prepaid expenses and other current assets and accounts receivable of $ 0.9 million , partially offset by a decrease in supplies of $ 1.9 million and an increase in accrued liabilities and deferred rent of $ 0.7 million . cash used in operating activities for the year ended december 31 , 2017 was $ 23.9 million . the net loss of $ 31.0 million includes non-cash charges of $ 6.6 million of stock-based compensation expense and $ 3.8 million of depreciation and amortization , which includes $ 1.1 million of intangible asset amortization . it also includes a $ 1.5 million prepayment penalty for exiting our previous credit agreement which is a financing cash flow , and the amortization and write-off of $ 0.5 million of debt issuance costs .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows the following table summarizes our cash flows for the years ended december 31 , 2018 , 2017 and 2016 ( in thousands of dollars ) : 63 replace_table_token_12_th cash flows from operating activities cash used in operating activities for the year ended december 31 , 2018 was $ 13.5 million . the net loss of $ 23.0 million includes non-cash charges of $ 6.0 million of stock-based compensation expense and $ 3.9 million of depreciation and amortization , which includes $ 1.1 million of intangible asset amortization . it also includes $ 0.3 million of end-of-term debt obligation accruals . cash used as a result of changes in operating assets and liabilities of $ 0.7 million was primarily due to a decrease in accounts payable of $ 1.6 million , an increase in other assets of $ 0.8 million and increases in prepaid expenses and other current assets and accounts receivable of $ 0.9 million , partially offset by a decrease in supplies of $ 1.9 million and an increase in accrued liabilities and deferred rent of $ 0.7 million . cash used in operating activities for the year ended december 31 , 2017 was $ 23.9 million . the net loss of $ 31.0 million includes non-cash charges of $ 6.6 million of stock-based compensation expense and $ 3.8 million of depreciation and amortization , which includes $ 1.1 million of intangible asset amortization . it also includes a $ 1.5 million prepayment penalty for exiting our previous credit agreement which is a financing cash flow , and the amortization and write-off of $ 0.5 million of debt issuance costs .
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Suspicious Activity Report : veracyte is now contracted as an in-network service provider to health plans representing over 200 million people in the united states our second commercial product , the percepta classifier , is the first genomic test to gain medicare coverage for improved lung cancer screening and diagnosis , making it a covered benefit for more than 60 million people . 50 fourth quarter and full-year 2018 financial results for the three- and twelve-month periods ended december 31 , 2018 , compared to the prior year : revenue was $ 25.8 million and $ 92.0 million , respectively , an increase of 31 % and 28 % ; gross margin was 66 % and 64 % , respectively , an increase of 6 % and 3 % ; operating expenses , excluding cost of revenue , were $ 20.1 million and $ 81.2 million , respectively , an increase of 12 % and 15 % ; net loss and comprehensive loss was ( $ 3.1 ) million and ( $ 23.0 ) million , respectively , an improvement of 63 % and 26 % ; basic and diluted net loss per common share was ( $ 0.08 ) and ( $ 0.62 ) , respectively , an improvement , of 67 % and 32 % ; net cash used in operating activities was $ 1.2 million and $ 13.5 million , respectively , an improvement of 79 % and 44 % ; cash burn ( 1 ) was $ 1.7 million and $ 15.4 million , respectively , an improvement of 73 % and 39 % ; and cash and cash equivalents was $ 78.0 million at december 31 , 2018 . ( 1 ) a reconciliation of net cash used in operating activities to cash burn has been provided below : to supplement our financial statements prepared in accordance with u. s. gaap , we monitor and consider cash burn , which is a non-u.s. gaap financial measure . this non-u.s. gaap financial measure is not based on any standardized methodology prescribed by u.s. gaap and is not necessarily comparable to similarly-titled measures presented by other companies . we define cash burn as net cash used in operating activities plus net capital expenditures , such as net purchases of property and equipment . we believe cash burn to be a liquidity measure that provides useful information to management and investors about the amount of cash consumed by the operations of the business , including our purchases of property and equipment . a limitation of using this non-u.s. gaap measure is that cash burn does not represent the total change in cash , cash equivalents and restricted cash for the period because it excludes cash provided by or used for other investing and financing activities . we account for this limitation by providing information about our capital expenditures and other investing and financing activities in the statements of cash flows in our financial statements and by presenting cash flows from investing and financing activities in our reconciliation of cash burn . in addition , it is important to note that other companies , including companies in our industry , may not use cash burn , may calculate cash burn in a different manner than we do or may use other financial measures to evaluate their performance , all of which could reduce the usefulness of cash burn as a comparative measure . because of these limitations , cash burn should not be considered in isolation from , or as a substitute for , financial information prepared in accordance with u.s. gaap . the reconciliation of cash burn to net cash used in operating activities is provided in the table below ( in thousands of dollars ) : replace_table_token_4_th 2018 full-year and recent business highlights commercial expansion : grew total genomic test volume to 9,154 tests in the fourth quarter of 2018 , representing 28 % growth over 2017 , which resulted in full-year 2018 growth of 22 % over 2017 , or 31,710 tests . 51 transitioned all afirma customers to the second-generation afirma genomic sequencing classifier ( gsc ) platform and launched the afirma xpression atlas to provide a comprehensive solution that informs both thyroid cancer diagnosis and treatment decisions . notably , 30 % of afirma gsc orders included xpression atlas in 2018 , ahead of the company 's expectations . grew percepta bronchial genomic classifier volume to nearly 1,550 tests in its first full year of commercialization , with genomic volume accelerating 74 % sequentially from the third quarter to the fourth quarter of 2018. esta blished 20 leading early access program ( eap ) sites across the united states for envisia in 2018 , addressing physician demand for patient access to the classifier which improves idiopathic pulmonary fibrosis ( ipf ) diagnosis and builds a solid foundation for the company to commercially expand it in 2019. biopharmaceutical collaborations executed a long-term strategic collaboration with johnson & johnson , llc and johnson & johnson 's lung cancer initiative to advance diagnostics , including a nasal swab test , for early lung cancer detection . veracyte estimates the combined monetary and non-monetary value of the collaboration to be more than $ 50 million . the company believes this collaboration expands its addressable lung cancer diagnostic market to a more than $ 30 billion global opportunity . entered into a research collaboration with loxo oncology , through which loxo has access to data from veracyte 's afirma xpression atlas platform to help in its development of therapies for patients with genetically defined cancers , including thyroid cancer . reimbursement progress : received draft medicare coverage for the envisia genomic classifier through the moldx program , with a final positive coverage decision expected in early 2019. achieved in-network status as a service provider with the last of the major commercial health plans , which veracyte believes will facilitate coverage and reimbursement for its percepta and envisia classifiers . story_separator_special_tag we have also incurred increased selling and marketing expense as a result of investments in our lung product portfolio and believe total selling and marketing expenses will continue to increase as we launch and promote our new tests . general and administrative general and administrative expenses include compensation expenses for executive officers and administrative , billing and client service personnel , professional fees for legal and audit services , occupancy costs , depreciation and amortization , and other expenses such as information technology and miscellaneous expenses offset by allocation of facility and information technology expenses to other functions . for the year ended december 31 , 2018 , approximately 66 % of the average headcount classified as general and administrative encompass our billing and customer care teams . we expect general and administrative expenses to continue to increase as we build our general and administration infrastructure and to stabilize thereafter . intangible asset amortization intangible asset amortization began in april 2015 when we launched the percepta test . the related finite-lived intangible asset with a cost of $ 16.0 million and a net book value of $ 12.0 million at december 31 , 2018 is being amortized over 15 years , using the straight-line method . interest expense interest expense is attributable to our borrowings under debt agreements and capital leases as well as costs associated with the pre-payment of debt . other income , net other income , net consists primarily of sublease rental income and interest income received from payers and from our cash equivalents . critical accounting policies and estimates our management 's discussion and analysis of our financial condition and results of operations is based on our audited financial statements , which have been prepared in accordance with united states generally accepted accounting principles , or u.s. gaap . the preparation of the financial statements requires us 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 revenue generated and expenses incurred during the reporting periods . our estimates are based on our historical experience and on various other factors that we believe are 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 and any such differences may be material . we believe that the accounting policies discussed below are critical to understanding our historical and future performance , as these policies relate to the more significant areas involving management 's judgments and estimates . revenue from diagnostic services 56 we recognize revenue related to billings on an accrual basis based on estimates of the amount that will ultimately be realized . in determining the amount to accrue for a delivered test , we consider factors such as payment history , payer coverage , whether there is a reimbursement contract between the payer and us , payment as a percentage of agreed upon rate ( if applicable ) , amount paid per test and any current developments or changes that could impact reimbursement . these estimates require significant judgment by management . generally , we determine accrual rates based on the average reimbursement from payers for tests that are on average a year old , since it can take a significant period of time to collect from some payers . except in situations where we believe the rate we reasonably expect to collect to vary due to a coverage decision , contract , more recent reimbursement data or evidence to the contrary , we use an average of reimbursement for tests provided over four quarters as it reduces the effects of temporary volatility and seasonal effects . we use judgment in determining accrual rates and our judgments will continue to evolve in the future as we continue to gain reimbursement experience . arrangements with multiple-performance obligations from time to time , we enter into arrangements for the research and development and or commercialization of services . such arrangements may require us to deliver various rights , services and or samples , including intellectual property rights/licenses , research and development services , and or commercialization of services . the underlying terms of these arrangements generally provide for consideration to us in the form of nonrefundable upfront license fees , development and commercial performance milestone payments , royalty payments and or profit sharing . in arrangements involving more than one performance obligation , each required performance obligation is evaluated to determine whether it qualifies as a distinct performance obligation based on whether ( i ) the customer can benefit from the good or service either on its own or together with other resources that are readily available and ( ii ) the good or service is separately identifiable from other promises in the contract . the consideration under the arrangement is then allocated to each separate distinct performance obligation based on its respective relative stand-alone selling price . the estimated selling price of each deliverable reflects our best estimate of what the selling price would be if the deliverable was regularly sold by us on a stand-alone basis or using an adjusted market assessment approach if selling price on a stand-alone basis is not available . the consideration allocated to each distinct performance obligation is recognized as revenue when control of the related goods or services is transferred . consideration associated with at-risk substantive performance milestones is recognized as revenue when it is probable that a significant reversal of the cumulative revenue recognized will not occur . should there be royalties , we utilize the sales and usage-based royalty exception in arrangements that resulted from the license of intellectual property , recognizing revenues generated from royalties or profit sharing as the underlying sales occur . other significant accounting
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2,593 | on december 21 , 2012 , we amended the senior credit facility to reduce the minimum fixed charge coverage ratio from 1.35x to 1.25x through expiration in september 2014. at-the-market preferred stock offering - in september 2011 , we entered into an at-the-market ( โ atm โ ) program with an investment banking firm , pursuant to which we may issue up to 700,000 shares of 8.55 % series a cumulative preferred stock and up to 700,000 shares of 8.45 % series d cumulative preferred stock at market prices up to $ 30.0 million in total proceeds . the atm program remains in effect until such time that either party elects to terminate or the share or dollar threshholds are reached . on march 2 , 2012 , we commenced issuances of preferred stock and during the first two quarters of the year ended december 31 , 2012 , we issued 169,306 shares of 8.55 % series a cumulative preferred stock for gross proceeds of $ 4.2 million and 501,909 shares of 8.45 % series d cumulative preferred stock for gross proceeds of $ 12.3 million . such proceeds , net of commissions and other expenses , were $ 16.0 million for the year ended december 31 , 2012. refinanced our $ 167.2 million mortgage loan - on may 9 , 2012 , we refinanced our $ 167.2 million mortgage loan , due may 2012 , and having an interest rate of libor plus 1.65 % , with a $ 135.0 million mortgage loan , due may 2014 with three one-year extension options and an interest rate of libor plus 6.50 % . as a result , our doubletree guest suites hotel property in columbus , ohio , which was one of ten hotels securing our $ 167.2 million mortgage loan , was no longer encumbered and later sold as the nine remaining hotels secure our $ 135.0 million mortgage loan . disposition of hotel properties - during the second quarter of 2012 we determined that the hilton el conquistador in tuscon , arizona was not to be held long-term as operating cash flows were not anticipated to cover principal and interest payments of the related debt secured by this hotel . in addition , regarding this loan , we ceased making principal and interest 37 payments after july 31 , 2012. based on our assessment , which included marketing this hotel for sale , we concluded that the carrying value of this asset would not be recoverable . consequently , in the second quarter of 2012 , we recognized an impairment charge of $ 4.1 million related to this hotel , which reduced its carrying value to $ 19.7 million and represented our estimate of its fair value . effective august 15 , 2012 , via a consensual foreclosure with our lender , a receiver appointed by pima county superior court in arizona completed taking possession and full control of this hotel . the hotel was disposed of in december 2012 when title passed to the lender . additionally we sold our doubletree guest suites hotel in columbus , ohio in november 2012 for net proceeds of $ 7.7 million . the results of operations of these hotels will be included in discontinued operations in our consolidated statements of operations for all periods presented . refinanced our $ 153.9 million mortgage loan - on november 7 , 2012 , we refinanced our $ 153.9 million non-recourse mortgage loan set to mature in december 2015 , and having an interest rate of 12.72 % , with a $ 211.0 million mortgage loan due november 2014 with three one-year extension options . the new loan is interest only and provides for a floating interest rate of libor plus 6.15 % with a 0.25 % libor floor . the new loan remains secured by the same five hotels including : the embassy suites crystal city , embassy suites orlando airport , embassy suites santa clara , embassy suites portland and the hilton costa mesa . liquidity and capital resources our cash position from operations is affected primarily by macro industry movements in occupancy and rate as well as our ability to control costs . further , interest rates can greatly affect the cost of our debt service as well as the value of any financial hedges we may put in place . we monitor industry fundamentals and interest rates very closely . capital expenditures above our reserves will affect cash flow as well . certain of our loan agreements contain cash trap provisions that may get triggered if the performance of our hotels decline . when these provisions are triggered , substantially all of the profit generated by our hotels is deposited directly into lockbox accounts and then swept into cash management accounts for the benefit of our various lenders . cash is distributed to us only after certain items are paid , including deposits into ground leasing and maintenance reserves and the payment of debt service , insurance , taxes , operating expenses , and extraordinary capital expenditures and ground leasing expenses . this could affect our liquidity and our ability to make distributions to our stockholders . also , we have entered into certain customary guaranty agreements pursuant to which we guaranty payment of any recourse liabilities of our subsidiaries or joint ventures that may result from non-recourse carve-outs , which include , but are not limited to fraud , misrepresentation , willful misconduct resulting in waste , misappropriations of rents following an event of default , voluntary bankruptcy filings , unpermitted transfers of collateral , and certain environmental liabilities . certain of these guarantees represent a guaranty of material amounts , and if we are required to make payments under those guarantees , our liquidity could be adversely affected . story_separator_special_tag for 2011 , other income also included a gain of $ 30.0 million recognized from a litigation settlement , income of $ 9.7 million recognized from the 11 % of ownership interest we acquired in a joint venture at no cost , income of $ 289,000 from a previously written-off mezzanine loan and the credit default swap premium amortization of $ 31,000. interest expense and amortization of loan costs . interest expense and amortization of loan costs increased $ 7.6 million to $ 144.8 million for 2012 from $ 137.2 million for 2011 . the increase is primarily due to higher interest expense of $ 6.1 million primarily attributable to higher interest rates associated with mortgage loans refinanced in december 2011 and may 2012 partially offset by lower interest associated with our senior credit facility which was repaid in 2011. the remaining increase is due to higher loan cost amortization of $ 1.5 million . the average libor rates for 2012 and 2011 were 0.24 % and 0.23 % , respectively . write-off of premiums , loan costs and exit fees . in 2012 , we refinanced our $ 167.2 million mortgage loan and our $ 153.9 million mortgage loan which resulted in the write-off of the associated unamortized deferred loan costs of $ 1.9 million . we also incurred prepayment penalties of $ 2.1 million associated with our $ 153.9 million mortgage loan . in 2011 , we repaid the outstanding balance on the $ 250.0 million senior credit facility , terminated the credit facility , and wrote-off the unamortized deferred loan cost of $ 729,000. unrealized gain ( loss ) on investments . unrealized gain ( loss ) on investments of $ 2.5 million and $ ( 391,000 ) for 2012 and 2011 , respectively , are based on changes in closing market prices during the period or , if derivatives , overall security market fluctuations . unrealized gain ( loss ) on derivatives . for 2012 , we recorded an unrealized loss of $ 35.7 million , consisting of $ 31.7 million related to interest-rate derivatives and $ 3.9 million related to credit default swaps . in 2011 , we recorded an unrealized loss of $ 70.3 million related to losses of $ 69.0 million on interest-rate derivatives and an unrealized loss of $ 1.3 million related to credit default swaps entered into in 2011. the fair value of interest-rate derivatives is primarily based on movements in the libor forward curve and the passage of time . the fair value of credit default swaps is based on the change in value of cmbx indices . income tax expense . we recorded income tax expense of $ 2.4 million and $ 1.6 million for 2012 and 2011 , respectively . the increase in income tax expense in 2012 is primarily due to the texas margin tax . our texas margin tax was significantly lower in 2011 as we recorded a large benefit for the tax write-off of certain mezzanine loans for the 2010 tax year that was not anticipated at december 31 , 2010. loss from discontinued operations . for 2012 , loss from discontinued operations was $ 3.7 million related to two hotel properties disposed of in 2012. the hilton hotel in tuscon , arizona was disposed of in december 2012. the doubetree guest suites hotel in columbus , ohio was sold in november 2012 for net proceeds of $ 7.7 million . we recorded an impairment charge of $ 4.1 million related to the hilton hotel and a net gain of $ 4.5 million upon disposition of these hotels . for 2011 , loss from 43 discontinued operations was $ 7.9 million , which includes the two aforementioned hotels as well as four hotels sold in 2011. the jw marriott san francisco in california , the hilton rye town in new york , and the hampton inn houston in texas were sold in the first quarter of 2011 and the hampton inn hotel in jacksonville , florida , was sold in the third quarter of 2011. the 2011 period included an impairment charge of $ 6.2 million related to the hampton inn hotel in jacksonville , florida and a net gain of $ 2.6 million related to sales of these hotels . income from consolidated joint ventures attributable to noncontrolling interests . noncontrolling interest partners in consolidated joint ventures were allocated income of $ 868,000 and $ 610,000 during 2012 and 2011 , respectively . in 2011 , we recorded a gain of $ 2.1 million from the sale of the hampton inn hotel in houston , texas , that was held by a joint venture . net loss attributable to redeemable noncontrolling interests in operating partnership . noncontrolling interests in operating partnership were allocated net loss of $ 9.3 million and $ 2.8 million in 2012 and 2011 , respectively . redeemable noncontrolling interests represented ownership interests of 12.92 % and 11.43 % in the operating partnership at december 31 , 2012 and december 31 , 2011 , respectively . comparison of year ended december 31 , 2011 with year ended december 31 , 2010 income from continuing operations represents the operating results of 94 hotel properties ( โ comparable hotels โ ) and worldquest included in continuing operations for the years ended december 31 , 2011 and 2010. the results of worldquest are included since its acquisition in march 2011. additionally , there is one hotel property we began consolidating as of december 2 , 2011. the hotel property previously was under a triple-net operating lease for which we only recorded rental income through december 1 , 2011. the following table illustrates the key performance indicators of these hotels : replace_table_token_10_th revenue . room revenues from comparable hotels increased $ 43.9 million , or 7.0 % , during the year ended december 31 , 2011 ( โ 2011 โ ) compared to the year ended december 31 , 2010 ( โ 2010 โ )
| net cash flows provided by operating activities . net cash flows provided by operating activities were $ 130.6 million and $ 74.6 million for the year ended december 31 , 2012 and 2011 , respectively . the increase in cash flows from operating activities was primarily due to increased hotel ebitda , the timing of collecting receivables from hotel guests , paying vendors , and settling with hotel managers and a decrease in restricted cash due to the release of cash deposits for certain loans and capital expenditures . net cash flows used in investing activities . for the year ended december 31 , 2012 , investing activities used net cash flows of $ 68.4 million , which primarily consisted of $ 81.4 million of capital improvements made to various hotel properties offset by cash inflows of $ 5.2 million attributable to cash payments received on previously impaired mezzanine loans and net proceeds of $ 7.7 million attributable to the sale of our douletree guest suites hotel in columbus , ohio . for the year ended december 31 , 2011 , investing activities used net cash flows of $ 47.8 million . cash outlays consisted of $ 145.4 million for the acquisition of a 71.74 % interest in pim highland jv , $ 12.0 million for the acquisition of hotel condominiums , and $ 67.8 million for capital improvements made to various hotel properties . cash inflows consisted of $ 154.0 million from the sale of four hotel properties and two condominium properties , $ 22.6 million from repayment of mezzanine loans , and $ 748,000 of insurance proceeds from settlement of insurance claims . net cash flows used in financing activities . for the year ended december 31 , 2012 , net cash flows used in financing activities were $ 43.9 million . cash outlays primarily consisted of $ 353.4 million for repayments of indebtedness , $ 71.6 million for dividend payments to common and preferred stockholders and unit holders , $ 10.4 million for payments of deferred loan costs and $ 1.9 million for distributions to noncontrolling interests in joint ventures .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```net cash flows provided by operating activities . net cash flows provided by operating activities were $ 130.6 million and $ 74.6 million for the year ended december 31 , 2012 and 2011 , respectively . the increase in cash flows from operating activities was primarily due to increased hotel ebitda , the timing of collecting receivables from hotel guests , paying vendors , and settling with hotel managers and a decrease in restricted cash due to the release of cash deposits for certain loans and capital expenditures . net cash flows used in investing activities . for the year ended december 31 , 2012 , investing activities used net cash flows of $ 68.4 million , which primarily consisted of $ 81.4 million of capital improvements made to various hotel properties offset by cash inflows of $ 5.2 million attributable to cash payments received on previously impaired mezzanine loans and net proceeds of $ 7.7 million attributable to the sale of our douletree guest suites hotel in columbus , ohio . for the year ended december 31 , 2011 , investing activities used net cash flows of $ 47.8 million . cash outlays consisted of $ 145.4 million for the acquisition of a 71.74 % interest in pim highland jv , $ 12.0 million for the acquisition of hotel condominiums , and $ 67.8 million for capital improvements made to various hotel properties . cash inflows consisted of $ 154.0 million from the sale of four hotel properties and two condominium properties , $ 22.6 million from repayment of mezzanine loans , and $ 748,000 of insurance proceeds from settlement of insurance claims . net cash flows used in financing activities . for the year ended december 31 , 2012 , net cash flows used in financing activities were $ 43.9 million . cash outlays primarily consisted of $ 353.4 million for repayments of indebtedness , $ 71.6 million for dividend payments to common and preferred stockholders and unit holders , $ 10.4 million for payments of deferred loan costs and $ 1.9 million for distributions to noncontrolling interests in joint ventures .
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Suspicious Activity Report : on december 21 , 2012 , we amended the senior credit facility to reduce the minimum fixed charge coverage ratio from 1.35x to 1.25x through expiration in september 2014. at-the-market preferred stock offering - in september 2011 , we entered into an at-the-market ( โ atm โ ) program with an investment banking firm , pursuant to which we may issue up to 700,000 shares of 8.55 % series a cumulative preferred stock and up to 700,000 shares of 8.45 % series d cumulative preferred stock at market prices up to $ 30.0 million in total proceeds . the atm program remains in effect until such time that either party elects to terminate or the share or dollar threshholds are reached . on march 2 , 2012 , we commenced issuances of preferred stock and during the first two quarters of the year ended december 31 , 2012 , we issued 169,306 shares of 8.55 % series a cumulative preferred stock for gross proceeds of $ 4.2 million and 501,909 shares of 8.45 % series d cumulative preferred stock for gross proceeds of $ 12.3 million . such proceeds , net of commissions and other expenses , were $ 16.0 million for the year ended december 31 , 2012. refinanced our $ 167.2 million mortgage loan - on may 9 , 2012 , we refinanced our $ 167.2 million mortgage loan , due may 2012 , and having an interest rate of libor plus 1.65 % , with a $ 135.0 million mortgage loan , due may 2014 with three one-year extension options and an interest rate of libor plus 6.50 % . as a result , our doubletree guest suites hotel property in columbus , ohio , which was one of ten hotels securing our $ 167.2 million mortgage loan , was no longer encumbered and later sold as the nine remaining hotels secure our $ 135.0 million mortgage loan . disposition of hotel properties - during the second quarter of 2012 we determined that the hilton el conquistador in tuscon , arizona was not to be held long-term as operating cash flows were not anticipated to cover principal and interest payments of the related debt secured by this hotel . in addition , regarding this loan , we ceased making principal and interest 37 payments after july 31 , 2012. based on our assessment , which included marketing this hotel for sale , we concluded that the carrying value of this asset would not be recoverable . consequently , in the second quarter of 2012 , we recognized an impairment charge of $ 4.1 million related to this hotel , which reduced its carrying value to $ 19.7 million and represented our estimate of its fair value . effective august 15 , 2012 , via a consensual foreclosure with our lender , a receiver appointed by pima county superior court in arizona completed taking possession and full control of this hotel . the hotel was disposed of in december 2012 when title passed to the lender . additionally we sold our doubletree guest suites hotel in columbus , ohio in november 2012 for net proceeds of $ 7.7 million . the results of operations of these hotels will be included in discontinued operations in our consolidated statements of operations for all periods presented . refinanced our $ 153.9 million mortgage loan - on november 7 , 2012 , we refinanced our $ 153.9 million non-recourse mortgage loan set to mature in december 2015 , and having an interest rate of 12.72 % , with a $ 211.0 million mortgage loan due november 2014 with three one-year extension options . the new loan is interest only and provides for a floating interest rate of libor plus 6.15 % with a 0.25 % libor floor . the new loan remains secured by the same five hotels including : the embassy suites crystal city , embassy suites orlando airport , embassy suites santa clara , embassy suites portland and the hilton costa mesa . liquidity and capital resources our cash position from operations is affected primarily by macro industry movements in occupancy and rate as well as our ability to control costs . further , interest rates can greatly affect the cost of our debt service as well as the value of any financial hedges we may put in place . we monitor industry fundamentals and interest rates very closely . capital expenditures above our reserves will affect cash flow as well . certain of our loan agreements contain cash trap provisions that may get triggered if the performance of our hotels decline . when these provisions are triggered , substantially all of the profit generated by our hotels is deposited directly into lockbox accounts and then swept into cash management accounts for the benefit of our various lenders . cash is distributed to us only after certain items are paid , including deposits into ground leasing and maintenance reserves and the payment of debt service , insurance , taxes , operating expenses , and extraordinary capital expenditures and ground leasing expenses . this could affect our liquidity and our ability to make distributions to our stockholders . also , we have entered into certain customary guaranty agreements pursuant to which we guaranty payment of any recourse liabilities of our subsidiaries or joint ventures that may result from non-recourse carve-outs , which include , but are not limited to fraud , misrepresentation , willful misconduct resulting in waste , misappropriations of rents following an event of default , voluntary bankruptcy filings , unpermitted transfers of collateral , and certain environmental liabilities . certain of these guarantees represent a guaranty of material amounts , and if we are required to make payments under those guarantees , our liquidity could be adversely affected . story_separator_special_tag for 2011 , other income also included a gain of $ 30.0 million recognized from a litigation settlement , income of $ 9.7 million recognized from the 11 % of ownership interest we acquired in a joint venture at no cost , income of $ 289,000 from a previously written-off mezzanine loan and the credit default swap premium amortization of $ 31,000. interest expense and amortization of loan costs . interest expense and amortization of loan costs increased $ 7.6 million to $ 144.8 million for 2012 from $ 137.2 million for 2011 . the increase is primarily due to higher interest expense of $ 6.1 million primarily attributable to higher interest rates associated with mortgage loans refinanced in december 2011 and may 2012 partially offset by lower interest associated with our senior credit facility which was repaid in 2011. the remaining increase is due to higher loan cost amortization of $ 1.5 million . the average libor rates for 2012 and 2011 were 0.24 % and 0.23 % , respectively . write-off of premiums , loan costs and exit fees . in 2012 , we refinanced our $ 167.2 million mortgage loan and our $ 153.9 million mortgage loan which resulted in the write-off of the associated unamortized deferred loan costs of $ 1.9 million . we also incurred prepayment penalties of $ 2.1 million associated with our $ 153.9 million mortgage loan . in 2011 , we repaid the outstanding balance on the $ 250.0 million senior credit facility , terminated the credit facility , and wrote-off the unamortized deferred loan cost of $ 729,000. unrealized gain ( loss ) on investments . unrealized gain ( loss ) on investments of $ 2.5 million and $ ( 391,000 ) for 2012 and 2011 , respectively , are based on changes in closing market prices during the period or , if derivatives , overall security market fluctuations . unrealized gain ( loss ) on derivatives . for 2012 , we recorded an unrealized loss of $ 35.7 million , consisting of $ 31.7 million related to interest-rate derivatives and $ 3.9 million related to credit default swaps . in 2011 , we recorded an unrealized loss of $ 70.3 million related to losses of $ 69.0 million on interest-rate derivatives and an unrealized loss of $ 1.3 million related to credit default swaps entered into in 2011. the fair value of interest-rate derivatives is primarily based on movements in the libor forward curve and the passage of time . the fair value of credit default swaps is based on the change in value of cmbx indices . income tax expense . we recorded income tax expense of $ 2.4 million and $ 1.6 million for 2012 and 2011 , respectively . the increase in income tax expense in 2012 is primarily due to the texas margin tax . our texas margin tax was significantly lower in 2011 as we recorded a large benefit for the tax write-off of certain mezzanine loans for the 2010 tax year that was not anticipated at december 31 , 2010. loss from discontinued operations . for 2012 , loss from discontinued operations was $ 3.7 million related to two hotel properties disposed of in 2012. the hilton hotel in tuscon , arizona was disposed of in december 2012. the doubetree guest suites hotel in columbus , ohio was sold in november 2012 for net proceeds of $ 7.7 million . we recorded an impairment charge of $ 4.1 million related to the hilton hotel and a net gain of $ 4.5 million upon disposition of these hotels . for 2011 , loss from 43 discontinued operations was $ 7.9 million , which includes the two aforementioned hotels as well as four hotels sold in 2011. the jw marriott san francisco in california , the hilton rye town in new york , and the hampton inn houston in texas were sold in the first quarter of 2011 and the hampton inn hotel in jacksonville , florida , was sold in the third quarter of 2011. the 2011 period included an impairment charge of $ 6.2 million related to the hampton inn hotel in jacksonville , florida and a net gain of $ 2.6 million related to sales of these hotels . income from consolidated joint ventures attributable to noncontrolling interests . noncontrolling interest partners in consolidated joint ventures were allocated income of $ 868,000 and $ 610,000 during 2012 and 2011 , respectively . in 2011 , we recorded a gain of $ 2.1 million from the sale of the hampton inn hotel in houston , texas , that was held by a joint venture . net loss attributable to redeemable noncontrolling interests in operating partnership . noncontrolling interests in operating partnership were allocated net loss of $ 9.3 million and $ 2.8 million in 2012 and 2011 , respectively . redeemable noncontrolling interests represented ownership interests of 12.92 % and 11.43 % in the operating partnership at december 31 , 2012 and december 31 , 2011 , respectively . comparison of year ended december 31 , 2011 with year ended december 31 , 2010 income from continuing operations represents the operating results of 94 hotel properties ( โ comparable hotels โ ) and worldquest included in continuing operations for the years ended december 31 , 2011 and 2010. the results of worldquest are included since its acquisition in march 2011. additionally , there is one hotel property we began consolidating as of december 2 , 2011. the hotel property previously was under a triple-net operating lease for which we only recorded rental income through december 1 , 2011. the following table illustrates the key performance indicators of these hotels : replace_table_token_10_th revenue . room revenues from comparable hotels increased $ 43.9 million , or 7.0 % , during the year ended december 31 , 2011 ( โ 2011 โ ) compared to the year ended december 31 , 2010 ( โ 2010 โ )
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2,594 | although the company 's consumer products generally are consumer staples and less vulnerable to decreases in discretionary spending than other products , the continued economic downturn has reduced demand in many categories , particularly those in personal care , and affected company sales in recent periods . some customers have responded to economic conditions by increasing their private label offerings ( primarily in the dietary supplements , diagnostic kits and oral analgesics categories ) , and consolidating the product selections they offer to the top few leading brands in each category . in addition , an increasing portion of the company 's product categories are being sold by club stores , dollar stores and mass merchandisers . these customer actions have placed downward pressure on the company 's sales and gross margins . the company expects the challenging conditions of the last several years to continue in 2014 primarily due to continued weak consumer demand in many categories , new product introductions by competitors and continuing aggressive competitive pricing pressures . in the u.s. , a continued slowdown in income growth , the unemployment rate and the uncertainty of unemployment benefits for the long-term unemployed may also adversely impact consumption patterns . to continue to deliver attractive results for stockholders in this environment , the company intends to continue to aggressively pursue several key strategic initiatives : maintain competitive marketing and trade spending , tightly control its cost structure , continue to develop and launch new and differentiated products , and pursue strategic acquisitions . the company also intends to continue to grow its product sales geographically ( in an attempt to mitigate the impact of weakness in any one area ) , and maintain an offering of premium and value brand products ( to appeal to a wide range of consumers ) . the company continues to experience heightened competitive activity in certain product categories from other larger multinational competitors , some of which have greater resources . such activities have included new product introductions , more aggressive product claims and marketing challenges , as well as increased promotional spending . since the 2012 introduction in the u.s. of unit dose laundry detergent by various manufacturers , including the company , there has been significant product and price competition in the laundry detergent category , contributing to an overall category decline . during 2012 , the category declined by 0.6 % and during 2013 , the category declined an additional 3.2 % . while the company 's laundry detergent sales have increased , more than offsetting the impact of the total laundry detergent category decline , there is no assurance that the category will not decline further or that the company will be able to offset any such category decline . moreover , p & g , one of the company 's major competitors and the market leader in premium laundry detergent , including unit dose laundry detergent , has recently reconfigured certain of its product offerings and related marketing and pricing strategies and launched various products to compete more directly with the company 's core arm & hammer , xtra and oxiclean power brands . for example , in 2014 , p & g is launching a lower-priced laundry detergent to compete directly with the company 's core value laundry detergents , is attempting to leverage its leadership position in unit dose laundry detergent with the introduction of 36 church & dwight co. , inc. and subsidiaries ( dollars in millions , except share and per share data ) a premium unit dose offering , and has launched a versatile stain remover , all of which are expected to be supported by aggressive trade spending and marketing . these actions , together with expected ongoing weak consumer spending and increased price competition , could negatively impact the company 's laundry detergent and versatile stain remover businesses . the company is responding to these competitive pressures by , among other things , focusing on strengthening its key brands , including increased focus on the arm & hammer , oxiclean , trojan and l'il critters and vitafusion mega brands , which each span various product categories and represented approximately 60 % of the company 's sales and profits in 2013 , through the launch of innovative new products and strong sales execution supported by increased marketing and trade spending . these mega brands have advantages over other power brands , including the ability to leverage research and development and marketing investments and lower overhead costs across mega brand categories . for example , the company 's 2014 responsive product introductions include the simultaneous launch of oxiclean branded products into the mid/premium tier laundry detergent segment , auto dish detergent category and bleach alternatives with continued support of , and innovation in , the company 's base arm & hammer and oxiclean businesses , to create scale and maximize marketing efforts . mega brand launches and launches of other products are anticipated to contribute more incremental new product revenue than the introduction of new products has in prior years , and a significant portion of those revenues will include expansion into new categories with premium household products , supported by increased levels of slotting , trade promotions and incremental marketing support and planned ongoing technology investment . there can be no assurance that these measures will be successful . despite challenging economic conditions and customer responses to these conditions , the company was able to grow market share in six of nine of its ยpower brandsย in 2013 , including laundry detergent . the company 's global product portfolio consists of both premium ( 55 % of total revenue in 2013 ) and value ( 45 % of total revenue in 2013 ) brands , which it believes enables it to succeed in a range of economic environments . story_separator_special_tag the company 's weighted average discount rate for its international pension plans as of december 31 , 2013 is 4.48 % as compared to 4.16 % used at december 31 , 2012. based on the published rate as of december 31 , 2013 that matched estimated cash flows for the plans , the company used a weighted average discount rate of 4.56 % for its postretirement plans as compared to 3.89 % used at december 31 , 2012 . 41 church & dwight co. , inc. and subsidiaries ( dollars in millions , except share and per share data ) the expected long-term rate of return on international pension plan assets is selected by taking into account the historical trend , the expected duration of the projected benefit obligation for the plans , the asset mix of the plans and known economic and market conditions at the time of valuation . based on these factors , the company 's weighted average expected long-term rate of return for assets of its pension plans for 2013 was 5.45 % , compared to 5.35 % used in 2012. a 50 basis point change in the expected long-term rate of return would result in an approximate $ 0.5 change in pension expense for 2014. as noted above , changes in assumptions used by management may result in material changes in the company 's pension and postretirement benefit costs . in 2013 , other comprehensive income reflected a $ 5.0 decrease in its remaining pension plan obligations and a $ 6.6 decrease for postretirement benefit plans . the changes are related to the change in discount rates for all plans and other actuarial assumptions . the company made cash contributions of approximately $ 17.5 to its pension plans in 2013 , including voluntary contributions of $ 13.0. the company estimates it will be required to make cash contributions to its pension plans of approximately $ 3.4 in 2014 to offset 2014 benefit payments and administrative costs in excess of investment returns . income taxes income taxes are accounted for under the asset and liability method . deferred tax assets and liabilities are recognized to reflect the future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases , and operating loss and tax credit carryforwards . deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the differences are expected to be recovered or settled . management provides a valuation allowance against deferred tax assets for amounts which are not considered ยmore likely than notย to be realized . the company records liabilities for potential assessments in various tax jurisdictions under asc topic 740 , income taxes . the liabilities relate to tax return positions that , although supportable by the company , may be challenged by the tax authorities and do not meet the minimum recognition threshold required under applicable accounting guidance for the related tax benefit to be recognized in the income statement . the company adjusts this liability as a result of changes in tax legislation , interpretations of laws by courts , rulings by tax authorities , changes in estimates and the expiration of the statute of limitations . many of the judgments involved in adjusting the liability involve assumptions and estimates that are highly uncertain and subject to change . in this regard , settlement of any issue , or an adverse determination in litigation , with a taxing authority could require the use of cash and result in an increase in the company 's annual tax rate . conversely , favorable resolution of an issue with a taxing authority would be recognized as a reduction to the company 's annual tax rate . new accounting pronouncements during the first quarter of 2013 , the financial accounting standards board ( ยfasbย ) issued guidance for the reporting of amounts reclassified out of accumulated other comprehensive income . the guidance requires an entity to present information about significant items reclassified out of accumulated other comprehensive income either on the face of the statement where net income is presented or as a separate disclosure in the notes to the financial statements . the company elected to present the requirements in the notes to the financial statements ( see note 15 ) . the adoption of the new pronouncement did not have an impact on the company 's consolidated financial position , results of operations or cash flows . in july 2013 , the fasb issued guidance requiring an entity to net its liability for unrecognized tax benefits against the deferred tax assets for all same jurisdiction net operating losses or similar tax loss carryforwards or tax credit carryforwards . a gross presentation will be required only if such carryforwards are not available as of 42 church & dwight co. , inc. and subsidiaries ( dollars in millions , except share and per share data ) reporting date to settle any additional income taxes resulting from disallowance of the uncertain tax position or the entity does not intend to use these carryforwards for this purpose . the new guidance is effective on a prospective basis for fiscal years beginning after december 15 , 2013 and interim periods within those years . this new guidance is not expected to have a material impact on the company 's consolidated financial position , results of operations or cash flows . there have been no other accounting pronouncements issued but not yet adopted by the company which are expected to have a material impact on the company 's consolidated financial position , results of operations or cash flows . 43 church & dwight co. , inc. and subsidiaries ( dollars in millions , except share and per share data ) results of operations for the years ended december 31 , 2013 , 2012 and 2011 the discussion of results of operations at the
| liquidity and capital resources as of december 31 , 2013 , the company had $ 496.9 in cash , approximately $ 350 available through the revolving facility under its credit agreement and its commercial paper program , and a commitment increase feature under the credit agreement that enables the company to borrow up to an additional $ 500 , subject to lending commitments of the participating lenders and certain conditions as described in the credit agreement . to preserve its liquidity , the company invests its cash primarily in prime money market funds and short term bank deposits . as of december 31 , 2013 , the amount of cash and cash equivalents included in the company 's assets , that was held by foreign subsidiaries was approximately $ 231.1. if these funds are needed for operations in the u.s. , the company will be required to accrue and pay taxes in the u.s. to repatriate these funds . however , the company 's intent is to permanently reinvest these funds outside the u.s. , and the company does not currently expect to repatriate them to fund operations in the u.s. on september 26 , 2012 , the company closed an underwritten public offering of $ 400 aggregate principal amount of 2.875 % senior notes ( the ย2022 notesย ) . the 2022 notes were issued under the second supplemental indenture ( the ยsecond supplemental indentureย ) , dated september 26 , 2012 , to the indenture dated december 15 , 2010 , between the company and the bank of new york mellon trust company , n.a. , as trustee . interest on the 2022 notes is payable semi-annually , beginning april 1 , 2013. the 2022 notes will mature on october 1 , 2022 , unless earlier retired or redeemed pursuant to the terms of the second supplemental indenture .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```liquidity and capital resources as of december 31 , 2013 , the company had $ 496.9 in cash , approximately $ 350 available through the revolving facility under its credit agreement and its commercial paper program , and a commitment increase feature under the credit agreement that enables the company to borrow up to an additional $ 500 , subject to lending commitments of the participating lenders and certain conditions as described in the credit agreement . to preserve its liquidity , the company invests its cash primarily in prime money market funds and short term bank deposits . as of december 31 , 2013 , the amount of cash and cash equivalents included in the company 's assets , that was held by foreign subsidiaries was approximately $ 231.1. if these funds are needed for operations in the u.s. , the company will be required to accrue and pay taxes in the u.s. to repatriate these funds . however , the company 's intent is to permanently reinvest these funds outside the u.s. , and the company does not currently expect to repatriate them to fund operations in the u.s. on september 26 , 2012 , the company closed an underwritten public offering of $ 400 aggregate principal amount of 2.875 % senior notes ( the ย2022 notesย ) . the 2022 notes were issued under the second supplemental indenture ( the ยsecond supplemental indentureย ) , dated september 26 , 2012 , to the indenture dated december 15 , 2010 , between the company and the bank of new york mellon trust company , n.a. , as trustee . interest on the 2022 notes is payable semi-annually , beginning april 1 , 2013. the 2022 notes will mature on october 1 , 2022 , unless earlier retired or redeemed pursuant to the terms of the second supplemental indenture .
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Suspicious Activity Report : although the company 's consumer products generally are consumer staples and less vulnerable to decreases in discretionary spending than other products , the continued economic downturn has reduced demand in many categories , particularly those in personal care , and affected company sales in recent periods . some customers have responded to economic conditions by increasing their private label offerings ( primarily in the dietary supplements , diagnostic kits and oral analgesics categories ) , and consolidating the product selections they offer to the top few leading brands in each category . in addition , an increasing portion of the company 's product categories are being sold by club stores , dollar stores and mass merchandisers . these customer actions have placed downward pressure on the company 's sales and gross margins . the company expects the challenging conditions of the last several years to continue in 2014 primarily due to continued weak consumer demand in many categories , new product introductions by competitors and continuing aggressive competitive pricing pressures . in the u.s. , a continued slowdown in income growth , the unemployment rate and the uncertainty of unemployment benefits for the long-term unemployed may also adversely impact consumption patterns . to continue to deliver attractive results for stockholders in this environment , the company intends to continue to aggressively pursue several key strategic initiatives : maintain competitive marketing and trade spending , tightly control its cost structure , continue to develop and launch new and differentiated products , and pursue strategic acquisitions . the company also intends to continue to grow its product sales geographically ( in an attempt to mitigate the impact of weakness in any one area ) , and maintain an offering of premium and value brand products ( to appeal to a wide range of consumers ) . the company continues to experience heightened competitive activity in certain product categories from other larger multinational competitors , some of which have greater resources . such activities have included new product introductions , more aggressive product claims and marketing challenges , as well as increased promotional spending . since the 2012 introduction in the u.s. of unit dose laundry detergent by various manufacturers , including the company , there has been significant product and price competition in the laundry detergent category , contributing to an overall category decline . during 2012 , the category declined by 0.6 % and during 2013 , the category declined an additional 3.2 % . while the company 's laundry detergent sales have increased , more than offsetting the impact of the total laundry detergent category decline , there is no assurance that the category will not decline further or that the company will be able to offset any such category decline . moreover , p & g , one of the company 's major competitors and the market leader in premium laundry detergent , including unit dose laundry detergent , has recently reconfigured certain of its product offerings and related marketing and pricing strategies and launched various products to compete more directly with the company 's core arm & hammer , xtra and oxiclean power brands . for example , in 2014 , p & g is launching a lower-priced laundry detergent to compete directly with the company 's core value laundry detergents , is attempting to leverage its leadership position in unit dose laundry detergent with the introduction of 36 church & dwight co. , inc. and subsidiaries ( dollars in millions , except share and per share data ) a premium unit dose offering , and has launched a versatile stain remover , all of which are expected to be supported by aggressive trade spending and marketing . these actions , together with expected ongoing weak consumer spending and increased price competition , could negatively impact the company 's laundry detergent and versatile stain remover businesses . the company is responding to these competitive pressures by , among other things , focusing on strengthening its key brands , including increased focus on the arm & hammer , oxiclean , trojan and l'il critters and vitafusion mega brands , which each span various product categories and represented approximately 60 % of the company 's sales and profits in 2013 , through the launch of innovative new products and strong sales execution supported by increased marketing and trade spending . these mega brands have advantages over other power brands , including the ability to leverage research and development and marketing investments and lower overhead costs across mega brand categories . for example , the company 's 2014 responsive product introductions include the simultaneous launch of oxiclean branded products into the mid/premium tier laundry detergent segment , auto dish detergent category and bleach alternatives with continued support of , and innovation in , the company 's base arm & hammer and oxiclean businesses , to create scale and maximize marketing efforts . mega brand launches and launches of other products are anticipated to contribute more incremental new product revenue than the introduction of new products has in prior years , and a significant portion of those revenues will include expansion into new categories with premium household products , supported by increased levels of slotting , trade promotions and incremental marketing support and planned ongoing technology investment . there can be no assurance that these measures will be successful . despite challenging economic conditions and customer responses to these conditions , the company was able to grow market share in six of nine of its ยpower brandsย in 2013 , including laundry detergent . the company 's global product portfolio consists of both premium ( 55 % of total revenue in 2013 ) and value ( 45 % of total revenue in 2013 ) brands , which it believes enables it to succeed in a range of economic environments . story_separator_special_tag the company 's weighted average discount rate for its international pension plans as of december 31 , 2013 is 4.48 % as compared to 4.16 % used at december 31 , 2012. based on the published rate as of december 31 , 2013 that matched estimated cash flows for the plans , the company used a weighted average discount rate of 4.56 % for its postretirement plans as compared to 3.89 % used at december 31 , 2012 . 41 church & dwight co. , inc. and subsidiaries ( dollars in millions , except share and per share data ) the expected long-term rate of return on international pension plan assets is selected by taking into account the historical trend , the expected duration of the projected benefit obligation for the plans , the asset mix of the plans and known economic and market conditions at the time of valuation . based on these factors , the company 's weighted average expected long-term rate of return for assets of its pension plans for 2013 was 5.45 % , compared to 5.35 % used in 2012. a 50 basis point change in the expected long-term rate of return would result in an approximate $ 0.5 change in pension expense for 2014. as noted above , changes in assumptions used by management may result in material changes in the company 's pension and postretirement benefit costs . in 2013 , other comprehensive income reflected a $ 5.0 decrease in its remaining pension plan obligations and a $ 6.6 decrease for postretirement benefit plans . the changes are related to the change in discount rates for all plans and other actuarial assumptions . the company made cash contributions of approximately $ 17.5 to its pension plans in 2013 , including voluntary contributions of $ 13.0. the company estimates it will be required to make cash contributions to its pension plans of approximately $ 3.4 in 2014 to offset 2014 benefit payments and administrative costs in excess of investment returns . income taxes income taxes are accounted for under the asset and liability method . deferred tax assets and liabilities are recognized to reflect the future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases , and operating loss and tax credit carryforwards . deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the differences are expected to be recovered or settled . management provides a valuation allowance against deferred tax assets for amounts which are not considered ยmore likely than notย to be realized . the company records liabilities for potential assessments in various tax jurisdictions under asc topic 740 , income taxes . the liabilities relate to tax return positions that , although supportable by the company , may be challenged by the tax authorities and do not meet the minimum recognition threshold required under applicable accounting guidance for the related tax benefit to be recognized in the income statement . the company adjusts this liability as a result of changes in tax legislation , interpretations of laws by courts , rulings by tax authorities , changes in estimates and the expiration of the statute of limitations . many of the judgments involved in adjusting the liability involve assumptions and estimates that are highly uncertain and subject to change . in this regard , settlement of any issue , or an adverse determination in litigation , with a taxing authority could require the use of cash and result in an increase in the company 's annual tax rate . conversely , favorable resolution of an issue with a taxing authority would be recognized as a reduction to the company 's annual tax rate . new accounting pronouncements during the first quarter of 2013 , the financial accounting standards board ( ยfasbย ) issued guidance for the reporting of amounts reclassified out of accumulated other comprehensive income . the guidance requires an entity to present information about significant items reclassified out of accumulated other comprehensive income either on the face of the statement where net income is presented or as a separate disclosure in the notes to the financial statements . the company elected to present the requirements in the notes to the financial statements ( see note 15 ) . the adoption of the new pronouncement did not have an impact on the company 's consolidated financial position , results of operations or cash flows . in july 2013 , the fasb issued guidance requiring an entity to net its liability for unrecognized tax benefits against the deferred tax assets for all same jurisdiction net operating losses or similar tax loss carryforwards or tax credit carryforwards . a gross presentation will be required only if such carryforwards are not available as of 42 church & dwight co. , inc. and subsidiaries ( dollars in millions , except share and per share data ) reporting date to settle any additional income taxes resulting from disallowance of the uncertain tax position or the entity does not intend to use these carryforwards for this purpose . the new guidance is effective on a prospective basis for fiscal years beginning after december 15 , 2013 and interim periods within those years . this new guidance is not expected to have a material impact on the company 's consolidated financial position , results of operations or cash flows . there have been no other accounting pronouncements issued but not yet adopted by the company which are expected to have a material impact on the company 's consolidated financial position , results of operations or cash flows . 43 church & dwight co. , inc. and subsidiaries ( dollars in millions , except share and per share data ) results of operations for the years ended december 31 , 2013 , 2012 and 2011 the discussion of results of operations at the
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2,595 | 34 the table below shows average crude oil and natural gas prices for west texas intermediate crude oil ( wti ) , united kingdom brent crude oil ( brent ) , and henry hub natural gas : replace_table_token_7_th average oil prices were approximately 7 % lower in 2014 than 2013. average natural gas prices were approximately 17 % higher in 2014 than 2013. these oil and natural gas price levels during 2014 were sufficient to support high levels of exploration and production activity , including the continued development of offshore projects . oil prices experienced a significant decline in the second half of 2014 , declining over 17 % from the average price during the first half and ending the year more than 50 % off their june peak . as of february 25 , 2015 , the west texas intermediate oil price has continued to decline another 7 % from the end of 2014. we expect the precipitous decline in oil prices over the last several months to have a significant negative impact on spending by our customers and therefore on our results of operations in 2015. in addition to the commodity price levels , the average active rig count data below , based on the weekly baker hughes incorporated rig count , reflect a broad measure of industry activity and resultant demand for our drilling , completion and production related products and services . replace_table_token_8_th generally , our sales are impacted by changes in rig activity and wells completed . the average u.s. rig count increased 6 % from 2013 , the international rig count increased 3 % from 2013 and the canadian rig count remained stable . the u.s. rig count peaked in september 2014 at 1,931 rigs . as a result of lower oil prices , the u.s. rig count experienced a 5 % decline in the fourth quarter . as of february 25 , 2015 , the u.s. rig count has continued to decline an additional 29 % from the end of 2014. many oil and gas companies have announced substantially reduced capital spending plans , which is expected to result in a significant decline in the rig count in 2015 . 35 in addition to the absolute number of active rigs , due to greater application of improved drilling and completion technologies , the current rig fleet is becoming more efficient , allowing more wells to be drilled per rig . the trends in the capabilities of the rig fleet are reflected in the table above through the increases in horizontal and directional drilling rigs as a portion of the total rig count . although well completions are expected to decrease in 2015 , we expect the decline to be less than the decrease in the overall rig count . acquisitions on may 1 , 2014 , we completed the acquisition of quality wireline & cable , inc. ( `` quality `` ) for consideration of $ 38.3 million . quality is a calgary , alberta based manufacturer of high-performance cased-hole electro-mechanical wireline cables and specialty cables for the oil and gas industry . quality is included in the drilling & subsea segment . on july 1 , 2013 , we completed two acquisitions and an investment in a joint venture for aggregate consideration of approximately $ 230.0 million , each of which were financed with cash on hand and borrowings under our credit facility . the three transactions included the following : b+v oil tools , a manufacturer of pipe handling equipment used on offshore and onshore drilling rigs with locations in hamburg , germany and willis , texas . b+v oil tools is included in the drilling & subsea segment ; moffat , a newcastle , england based manufacturer of subsea pipeline inspection gauge launching and receiving systems , and subsea connectors . moffat is included in the drilling & subsea segment ; and the joint purchase of global tubing with an equal partner , with management retaining a small interest . global tubing is a dayton , texas based provider of coiled tubing strings and related services . our equity investment is reported in the production & infrastructure segment and is accounted for using the equity method of accounting . none of these transactions included potential future payments contingent on financial performance . we completed four acquisitions in the fourth quarter 2012 , syntech technology , incorporated , wireline solutions , llc , dynacon , inc. and merrimac manufacturing , inc. , all of which are included in the drilling & subsea segment . we paid aggregate cash consideration of approximately $ 139.7 million for these acquisitions in 2012. there are factors related to the businesses we have acquired that may result in lower net profit margins on a going-forward basis , primarily the federal income tax status of the legal entity and the level of depreciation and amortization charges arising out of the accounting for the purchase . in february 2015 , we completed the acquisition of j-mac tool , inc. ( โ j-mac โ ) for aggregate consideration of approximately $ 65.0 million . j-mac , located in fort worth , texas , manufactures hydraulic fracturing pumps , power ends , fluid ends and other pump accessories . the acquired business also provides repair and refurbishment services at its main location in fort worth and at other service center locations . j-mac will be included in the production & infrastructure segment . for additional information regarding our 2014 , 2013 , and 2012 acquisitions , please read note 3 of the notes to the consolidated financial statements in part ii , item 8 `` financial statements and supplementary data `` of this annual report on form 10-k. evaluation of operations we manage our operations through the two business segments described above . story_separator_special_tag the cost saving measures implemented in the second half of the year , coupled with increased shipments of the longer dated international orders received in the first half of the year , contributed to good margin recovery for drilling products in the second half of 2013. we also experienced a decline in our downhole products operating margin percentage as a higher proportion of shipments were destined for lower margin international projects . production & infrastructure segment โ operating margin percentage declined 170 basis points to 14.8 % for the year ended december 31 , 2013 , from 16.5 % for the year ended december 31 , 2012. the decline in operating margin percentage is attributable to lower margins in well stimulation products on significantly lower activity levels and increased pricing competition . the decline was offset partially by the inclusion of $ 7.3 million of equity in earnings of the global tubing llc joint venture in the second half of 2013. corporate โ selling , general and administrative expenses for corporate increased $ 8.8 million , or 42.7 % , for the year ended december 31 , 2013 compared to the year ended december 31 , 2012 due to higher personnel costs and various professional fees primarily associated with being a publicly traded company and complying with applicable regulations . corporate costs included , among other items , payroll related costs for general management and management of finance and administration , legal , human resources and information technology ; professional fees for external legal , accounting and related services ; and marketing costs . corporate costs also included $ 0.4 million in severance charges in 2013 . 42 other items not included in segment operating income several items are not included in segment operating income , but are included in total operating income . these items include : transaction expenses , gains/losses from the sale of assets , contingent consideration and impairment of intangible assets . transaction expenses relate to legal and other advisory costs incurred in acquiring businesses and are not considered to be part of segment operating income . including $ 0.8 million reported as part of equity in earnings of global tubing llc , transaction costs were $ 3.5 million for the year ended december 31 , 2013 , for two acquisitions and an investment in a joint venture all closed effective july 1 , 2013 , and $ 1.8 million for the year ended december 31 , 2012. refer to note 3 , acquisitions , for further information . the contingent consideration credit recorded during the year ended december 31 , 2012 was related to two acquisitions in 2011 in which part of the purchase price was payable in cash and or shares of the our common stock based on the earnings of the acquired entities through the end of 2012. the net change in the accrual was recorded as part of operating income , and the reduction in this obligation resulted in an increase to operating income of $ 4.6 million during the year ended december 31 , 2012. during the year ended december 31 , 2012 , an impairment loss of $ 1.2 million was recorded on certain intangible assets resulting from a lack of orders related to a specific service line . other income and expense other income and expense includes interest expense , foreign exchange gains and losses and deferred loan costs written off . we incurred $ 18.4 million of interest expense during the year ended december 31 , 2013 , an increase of $ 2.0 million from the year ended december 31 , 2012. the increase in interest expense was partially attributable to an increase in debt incurred to finance the two acquisitions and an investment in a joint venture completed in the third quarter 2013 , and a higher interest rate under our senior notes issued in the fourth quarter 2013 compared to the variable interest rate under our credit facility . the term loan under our credit facility was paid off from the net proceeds on our senior notes . accordingly , unamortized debt issue costs of $ 2.1 million associated with the term loan were charged to expense during 2013. taxes tax expense includes current income taxes expected to be due based on taxable income to be reported during the periods in the various jurisdictions in which we conduct business , and deferred income taxes based on changes in the tax effect of temporary differences between the bases of assets and liabilities for financial reporting and tax purposes at the beginning and end of the respective periods . the effective tax rate , calculated by dividing total tax expense by income before income taxes , was 30.4 % and 32.0 % for the years ended december 31 , 2013 and 2012 , respectively . the effective tax rate for the year ended december 31 , 2013 is lower than the comparable period in 2012 primarily due to a higher proportion of our earnings being generated outside the united states in jurisdictions subject to lower tax rates and due to a reduction in the tax provision from the finalization of certain prior year tax returns . liquidity and capital resources sources and uses of liquidity our internal sources of liquidity are cash on hand and cash flows from operations , while our primary external sources have included our credit facility described below , trade credit , the issuance of our senior notes described below and sales of our common stock . our primary uses of capital have been for acquisitions , ongoing maintenance and growth capital expenditures , inventories and sales on credit to our customers . we continually monitor potential capital sources , including equity and debt financing , to meet our investment and target liquidity requirements . our future success and growth will be highly dependent on our ability to continue to access outside sources of capital . at december 31 , 2014 , we had
| net cash provided by operating activities was $ 211.4 million and $ 137.9 million for the years ended december 31 , 2013 and 2012 , respectively . cash provided by operations increased as a result of reduced investments in working capital as compared to the prior year , primarily inventory , which added $ 33.1 million as compared to the use of cash of $ 100.3 million in the prior year . offsetting the positive impacts of the reduced investments in working capital was a 44 decrease in net income to $ 129.6 million for the year ended december 31 , 2013 , from $ 151.5 million for the year ended december 31 , 2012 . our operating cash flows are sensitive to a number of variables , the most significant of which is the level of drilling and production activity for oil and natural gas reserves . these activity levels are in turn impacted by the volatility of oil and natural gas prices , regional and worldwide economic activity and its effect on demand for hydrocarbons , weather , infrastructure capacity to reach markets and other variable factors . these factors are beyond our control and are difficult to predict . cash flows used in investing activities net cash used in investing activities was $ 70.7 million and $ 289.0 million for the year ended december 31 , 2014 and 2013 , respectively , a $ 218.3 million decrease . the decrease was primarily due to consideration of $ 38.3 million paid for an acquisition during the year ended december 31 , 2014 compared to the consideration of $ 229.7 million paid for two acquisitions and an investment in a joint venture closed during the year ended december 31 , 2013 . additionally , a lower investment in property and equipment of $ 53.8 million was made during the year ended december 31 , 2014 compared an investment of $ 60.3 million during the year ended december 31 , 2013 .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```net cash provided by operating activities was $ 211.4 million and $ 137.9 million for the years ended december 31 , 2013 and 2012 , respectively . cash provided by operations increased as a result of reduced investments in working capital as compared to the prior year , primarily inventory , which added $ 33.1 million as compared to the use of cash of $ 100.3 million in the prior year . offsetting the positive impacts of the reduced investments in working capital was a 44 decrease in net income to $ 129.6 million for the year ended december 31 , 2013 , from $ 151.5 million for the year ended december 31 , 2012 . our operating cash flows are sensitive to a number of variables , the most significant of which is the level of drilling and production activity for oil and natural gas reserves . these activity levels are in turn impacted by the volatility of oil and natural gas prices , regional and worldwide economic activity and its effect on demand for hydrocarbons , weather , infrastructure capacity to reach markets and other variable factors . these factors are beyond our control and are difficult to predict . cash flows used in investing activities net cash used in investing activities was $ 70.7 million and $ 289.0 million for the year ended december 31 , 2014 and 2013 , respectively , a $ 218.3 million decrease . the decrease was primarily due to consideration of $ 38.3 million paid for an acquisition during the year ended december 31 , 2014 compared to the consideration of $ 229.7 million paid for two acquisitions and an investment in a joint venture closed during the year ended december 31 , 2013 . additionally , a lower investment in property and equipment of $ 53.8 million was made during the year ended december 31 , 2014 compared an investment of $ 60.3 million during the year ended december 31 , 2013 .
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Suspicious Activity Report : 34 the table below shows average crude oil and natural gas prices for west texas intermediate crude oil ( wti ) , united kingdom brent crude oil ( brent ) , and henry hub natural gas : replace_table_token_7_th average oil prices were approximately 7 % lower in 2014 than 2013. average natural gas prices were approximately 17 % higher in 2014 than 2013. these oil and natural gas price levels during 2014 were sufficient to support high levels of exploration and production activity , including the continued development of offshore projects . oil prices experienced a significant decline in the second half of 2014 , declining over 17 % from the average price during the first half and ending the year more than 50 % off their june peak . as of february 25 , 2015 , the west texas intermediate oil price has continued to decline another 7 % from the end of 2014. we expect the precipitous decline in oil prices over the last several months to have a significant negative impact on spending by our customers and therefore on our results of operations in 2015. in addition to the commodity price levels , the average active rig count data below , based on the weekly baker hughes incorporated rig count , reflect a broad measure of industry activity and resultant demand for our drilling , completion and production related products and services . replace_table_token_8_th generally , our sales are impacted by changes in rig activity and wells completed . the average u.s. rig count increased 6 % from 2013 , the international rig count increased 3 % from 2013 and the canadian rig count remained stable . the u.s. rig count peaked in september 2014 at 1,931 rigs . as a result of lower oil prices , the u.s. rig count experienced a 5 % decline in the fourth quarter . as of february 25 , 2015 , the u.s. rig count has continued to decline an additional 29 % from the end of 2014. many oil and gas companies have announced substantially reduced capital spending plans , which is expected to result in a significant decline in the rig count in 2015 . 35 in addition to the absolute number of active rigs , due to greater application of improved drilling and completion technologies , the current rig fleet is becoming more efficient , allowing more wells to be drilled per rig . the trends in the capabilities of the rig fleet are reflected in the table above through the increases in horizontal and directional drilling rigs as a portion of the total rig count . although well completions are expected to decrease in 2015 , we expect the decline to be less than the decrease in the overall rig count . acquisitions on may 1 , 2014 , we completed the acquisition of quality wireline & cable , inc. ( `` quality `` ) for consideration of $ 38.3 million . quality is a calgary , alberta based manufacturer of high-performance cased-hole electro-mechanical wireline cables and specialty cables for the oil and gas industry . quality is included in the drilling & subsea segment . on july 1 , 2013 , we completed two acquisitions and an investment in a joint venture for aggregate consideration of approximately $ 230.0 million , each of which were financed with cash on hand and borrowings under our credit facility . the three transactions included the following : b+v oil tools , a manufacturer of pipe handling equipment used on offshore and onshore drilling rigs with locations in hamburg , germany and willis , texas . b+v oil tools is included in the drilling & subsea segment ; moffat , a newcastle , england based manufacturer of subsea pipeline inspection gauge launching and receiving systems , and subsea connectors . moffat is included in the drilling & subsea segment ; and the joint purchase of global tubing with an equal partner , with management retaining a small interest . global tubing is a dayton , texas based provider of coiled tubing strings and related services . our equity investment is reported in the production & infrastructure segment and is accounted for using the equity method of accounting . none of these transactions included potential future payments contingent on financial performance . we completed four acquisitions in the fourth quarter 2012 , syntech technology , incorporated , wireline solutions , llc , dynacon , inc. and merrimac manufacturing , inc. , all of which are included in the drilling & subsea segment . we paid aggregate cash consideration of approximately $ 139.7 million for these acquisitions in 2012. there are factors related to the businesses we have acquired that may result in lower net profit margins on a going-forward basis , primarily the federal income tax status of the legal entity and the level of depreciation and amortization charges arising out of the accounting for the purchase . in february 2015 , we completed the acquisition of j-mac tool , inc. ( โ j-mac โ ) for aggregate consideration of approximately $ 65.0 million . j-mac , located in fort worth , texas , manufactures hydraulic fracturing pumps , power ends , fluid ends and other pump accessories . the acquired business also provides repair and refurbishment services at its main location in fort worth and at other service center locations . j-mac will be included in the production & infrastructure segment . for additional information regarding our 2014 , 2013 , and 2012 acquisitions , please read note 3 of the notes to the consolidated financial statements in part ii , item 8 `` financial statements and supplementary data `` of this annual report on form 10-k. evaluation of operations we manage our operations through the two business segments described above . story_separator_special_tag the cost saving measures implemented in the second half of the year , coupled with increased shipments of the longer dated international orders received in the first half of the year , contributed to good margin recovery for drilling products in the second half of 2013. we also experienced a decline in our downhole products operating margin percentage as a higher proportion of shipments were destined for lower margin international projects . production & infrastructure segment โ operating margin percentage declined 170 basis points to 14.8 % for the year ended december 31 , 2013 , from 16.5 % for the year ended december 31 , 2012. the decline in operating margin percentage is attributable to lower margins in well stimulation products on significantly lower activity levels and increased pricing competition . the decline was offset partially by the inclusion of $ 7.3 million of equity in earnings of the global tubing llc joint venture in the second half of 2013. corporate โ selling , general and administrative expenses for corporate increased $ 8.8 million , or 42.7 % , for the year ended december 31 , 2013 compared to the year ended december 31 , 2012 due to higher personnel costs and various professional fees primarily associated with being a publicly traded company and complying with applicable regulations . corporate costs included , among other items , payroll related costs for general management and management of finance and administration , legal , human resources and information technology ; professional fees for external legal , accounting and related services ; and marketing costs . corporate costs also included $ 0.4 million in severance charges in 2013 . 42 other items not included in segment operating income several items are not included in segment operating income , but are included in total operating income . these items include : transaction expenses , gains/losses from the sale of assets , contingent consideration and impairment of intangible assets . transaction expenses relate to legal and other advisory costs incurred in acquiring businesses and are not considered to be part of segment operating income . including $ 0.8 million reported as part of equity in earnings of global tubing llc , transaction costs were $ 3.5 million for the year ended december 31 , 2013 , for two acquisitions and an investment in a joint venture all closed effective july 1 , 2013 , and $ 1.8 million for the year ended december 31 , 2012. refer to note 3 , acquisitions , for further information . the contingent consideration credit recorded during the year ended december 31 , 2012 was related to two acquisitions in 2011 in which part of the purchase price was payable in cash and or shares of the our common stock based on the earnings of the acquired entities through the end of 2012. the net change in the accrual was recorded as part of operating income , and the reduction in this obligation resulted in an increase to operating income of $ 4.6 million during the year ended december 31 , 2012. during the year ended december 31 , 2012 , an impairment loss of $ 1.2 million was recorded on certain intangible assets resulting from a lack of orders related to a specific service line . other income and expense other income and expense includes interest expense , foreign exchange gains and losses and deferred loan costs written off . we incurred $ 18.4 million of interest expense during the year ended december 31 , 2013 , an increase of $ 2.0 million from the year ended december 31 , 2012. the increase in interest expense was partially attributable to an increase in debt incurred to finance the two acquisitions and an investment in a joint venture completed in the third quarter 2013 , and a higher interest rate under our senior notes issued in the fourth quarter 2013 compared to the variable interest rate under our credit facility . the term loan under our credit facility was paid off from the net proceeds on our senior notes . accordingly , unamortized debt issue costs of $ 2.1 million associated with the term loan were charged to expense during 2013. taxes tax expense includes current income taxes expected to be due based on taxable income to be reported during the periods in the various jurisdictions in which we conduct business , and deferred income taxes based on changes in the tax effect of temporary differences between the bases of assets and liabilities for financial reporting and tax purposes at the beginning and end of the respective periods . the effective tax rate , calculated by dividing total tax expense by income before income taxes , was 30.4 % and 32.0 % for the years ended december 31 , 2013 and 2012 , respectively . the effective tax rate for the year ended december 31 , 2013 is lower than the comparable period in 2012 primarily due to a higher proportion of our earnings being generated outside the united states in jurisdictions subject to lower tax rates and due to a reduction in the tax provision from the finalization of certain prior year tax returns . liquidity and capital resources sources and uses of liquidity our internal sources of liquidity are cash on hand and cash flows from operations , while our primary external sources have included our credit facility described below , trade credit , the issuance of our senior notes described below and sales of our common stock . our primary uses of capital have been for acquisitions , ongoing maintenance and growth capital expenditures , inventories and sales on credit to our customers . we continually monitor potential capital sources , including equity and debt financing , to meet our investment and target liquidity requirements . our future success and growth will be highly dependent on our ability to continue to access outside sources of capital . at december 31 , 2014 , we had
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2,596 | accordingly , the results of medicomp , inc. , including the gain recognized on its disposal , have been included in discontinued operations for each of the three years in the three-year period ended december 31 , 2011 on our consolidated statements of operations . refer to note 18 ย sale of medicomp , inc. to our consolidated financial statements included in this annual report on form 10-k for details . revenues sales of remodulin comprise the largest share of our revenues . other significant sources of revenues include sales of tyvaso and adcirca . sales of tyvaso and adcirca have continued to grow since their commercial introduction in 2009 , as each of these therapies has gained broader market acceptance . we sell remodulin and tyvaso in the united states to our specialty pharmaceutical distributors : accredo health group , inc. , curascript , inc. and cvs caremark . adcirca is sold to pharmaceutical wholesalers that are part of lilly 's pharmaceutical wholesaler network . we also sell remodulin to distributors outside of the united states . on july 21 , 2011 , express scripts , inc. , the parent company of curascript , announced the signing of a merger agreement with medco health solutions , inc. , the parent company of accredo . the parties announced that the merger , which is subject to regulatory and shareholder approvals , is expected to close in the first half of 2012. presently , we do not expect the merger , if approved , to materially affect our business . we require our distributors to maintain reasonable levels of contingent inventory at all times as the interruption of remodulin or tyvaso therapy can be life threatening . consequently , sales of these therapies in any given quarter may not precisely reflect patient demand . our distributors typically place monthly orders based on estimates of future demand and considerations of contractual minimum inventory requirements . as a result , sales volume of remodulin and tyvaso can vary , depending on the timing and magnitude of these orders . the patient protection and affordable care act , as amended by the health care and education reconciliation act ( collectively , the acts ) contains broad provisions that will be implemented over the next several years . we are continually evaluating the impact of the acts on our business ; however , our evaluation is dependent upon the issuance of final regulations and the impact this legislation will have on insurance companies and their relationships with drug manufacturers . on january 1 , 2011 , certain provisions of the acts that address the coverage gap in the medicare part d prescription drug program ( commonly known as the `` donut hole `` ) became effective . under these provisions , drug manufacturers are required to provide a 50 percent discount on branded prescription drugs to patients receiving reimbursement under medicare part d while they remain in this coverage gap . these provisions of the acts apply to adcirca , which is our only commercial pharmaceutical product covered by medicare part d. approximately 35 percent of our adcirca patients are covered under medicare part d. the vast majority of our remodulin and tyvaso medicare patients are covered under medicare part b , which does not contain a similar coverage gap . we were not materially impacted by the acts during 2010 and our revenues were reduced by less than one percent in 2011 as a result of the acts . however , the potential long-term impact of the acts on our business is inherently difficult to predict as many details regarding the implementation of this legislation have not yet been determined . presently , we have not identified any provisions that could 61 materially impact our business , but will continue to monitor future developments related to this legislation . total revenues are reported net of : ( 1 ) estimated rebates ; ( 2 ) prompt pay discounts ; ( 3 ) allowances for product returns or exchanges ; and ( 4 ) distributor fees . we estimate our liability for rebates based on an analysis of historical levels of rebates by product to both state medicaid agencies and commercial third-party payers relative to sales of each product . in addition , we determine our obligation for prescription drug discounts required for medicare part d patients within the coverage gap based on estimations of the number of medicare part d patients and the period such patients will remain within the coverage gap . we provide prompt pay discounts to customers that pay amounts due within a specific time period and base our estimates for prompt pay discounts on observed customer payment behavior . we derive estimates relating to the allowance for returns of adcirca from published industry data specific to specialty pharmaceuticals and will continue to do so until we have sufficient historical data on which to base our allowance . in addition , we compare patient prescription data for adcirca to sales of adcirca on a quarterly basis to ensure a reasonable relationship between prescription and sales trends . to date , we have not identified any unusual patterns in the volume of prescriptions relative to sales that would warrant reconsideration of , or adjustment to , the methodology we currently employ to estimate our allowance for returns . the allowance for exchanges for remodulin is based on the historical rate of product exchanges , which has been too immaterial to record . in addition , because tyvaso is distributed in the same manner and under similar contractual arrangements as remodulin , the level of product exchanges for tyvaso has been comparable to that of remodulin and we anticipate minimal exchange activity in the future for both products . lastly , we estimate distributor fees based on contractual rates for specific services applied to the estimated units of service provided for the period . story_separator_special_tag cancer disease projects ch14.18 antibody in july 2010 , we entered into a cooperative research and development agreement ( crada ) with the national cancer institute ( nci ) to collaborate on the late-stage development and regulatory submissions of chimeric monoclonal antibody 14.18 ( ch14.18 ) for children with high-risk neuroblastoma and patients with other forms of cancer . ch14.18 is an antibody that has shown potential in the treatment of certain types of cancer by targeting gd2 , a glycolipid on the surface of tumor cells . under the terms of the crada , nci is conducting a clinical trial in approximately 100 patients to define more clearly the safety and toxicity profile of ch14.18 immunotherapy in children , and we are developing the commercial manufacturing capability for the antibody . as part of developing our commercial manufacturing capability , we will need to demonstrate comparability of our ch14.18 to the nci-produced ch14.18 , which typically includes a series of analytical and bioanalytical assays and human pharmacokinetics . the nci studies , including a previously conducted phase iii clinical trial and all other necessary studies supported by nci , will be used as the basis for a biologics license application we expect to file seeking fda approval of ch14.18 immunotherapy for the treatment of neuroblastoma . we have received orphan drug designation for ch14.18 from the fda and european medicines agency . 66 8h9 antibody pursuant to a december 2007 agreement with memorial sloan-kettering cancer center , we obtained certain license rights to an investigational monoclonal antibody , 8h9 , for the treatment of metastatic brain cancer . 8h9 is a mouse igg1 mab that is highly reactive with a range of human solid tumors , including human brain cancers . the 8h9 antibody is in early investigational development for metastases that develop in the brain from the spread of cancers from other tissues in the body . metastatic brain cancers are ten times more common than cancers that originate in the brain , and prognosis for patients with metastatic brain cancers is very poor . in the united states , more than 100,000 cases of metastatic brain cancer are diagnosed each year . we have spent $ 75.0 million from inception to december 31 , 2011 , on our cancer programs . infectious disease projects pursuant to our research agreement with the university of oxford ( oxford ) , we have the exclusive right to commercialize a platform of glycobiology antiviral drug candidates in various preclinical and clinical stages of testing for the treatment of a wide variety of viruses . through our research agreement with oxford , we are also supporting research into new glycobiology antiviral drug candidates and technologies . we are currently testing many of these compounds in preclinical studies and oxford continues to synthesize new agents that we may elect to test . on september 30 , 2011 , we were awarded a cost plus fixed fee contract with an aggregate value of up to $ 45.0 million under a broad agency announcement from the u.s. national institute of allergy and infectious diseases for studies directed at the development of a broad spectrum antiviral drug based on our glycobiology antiviral platform . under the contract 's base period of forty-two months , we will receive $ 10.6 million in funding and there are eight milestone-based options to expand the project and funding under the contract , up to an aggregate of $ 45.0 million . we recognize revenue on this contract to the extent of costs incurred , plus a proportionate amount of fees earned . we have spent $ 52.6 million from inception to december 31 , 2011 , on our infectious disease programs . future prospects because pah remains a progressive disease without a cure , we expect continued growth in the demand for our commercial products as alternatives or complements to other existing approved therapies . furthermore , the commercial introduction of tyvaso and adcirca has enabled us to offer products to more patients along the full continuum of the disease . the continued achievement of our growth objectives will depend in large part upon the successful commercial development of products within our pipeline . to this end , we submitted to the fda an nda for oral treprostinil in december 2011 , plan to initiate enrollment in the freedom-c 3 study of oral treprostinil and a new event-driven phase iii tyvaso study during 2012 and continue to develop beraprost-mr. in addition , we seek to expand the use of our therapies to treat patients at earlier stages in the pah disease progression . our future growth and profitability will depend on many factors including , but not limited to : ( 1 ) the timing and outcome of clinical trials and regulatory approvals , including the filing and approval of our nda for oral treprostinil , and the pmr for tyvaso ; ( 2 ) the timing of the commercial launch of new products ; ( 3 ) the pricing of and demand for our products and services ; ( 4 ) the reimbursement of our products by public and private insurance organizations ; ( 5 ) the competition we face within our industry ; ( 6 ) our ability to effectively manage our growth in an increasingly complex regulatory environment ; and ( 7 ) our ability to defend against generic competition , including the recent challenge to our remodulin patents by a generic drug company . 67 we operate in a highly competitive market in which a small number of pharmaceutical companies control a majority of the currently approved pah therapies . these pharmaceutical companies not only possess greater visibility in the market , but also greater financial , technical and marketing resources than we do . in addition , there are a number of investigational products in late-stage development that , if approved , may erode the market share of our existing commercial therapies and make market
| debt to the consolidated financial statements included in this annual report on form 10-k for details . other noncurrent liabilities at december 31 , 2011 were $ 80.5 million , compared to $ 39.3 million at december 31 , 2010. the $ 41.2 million increase was largely due to the recognition of the net , non-current portion of our royalty buy-down obligation to toray in the amount of $ 28.3 million and a $ 6.5 million increase in our supplemental executive retirement plan ( serp ) obligation which reflects an increased number of serp participants . additional paid-in capital increased by $ 64.0 million from $ 928.7 million at december 31 , 2010 to $ 992.7 million at december 31 , 2011. the increase consisted principally of the following elements : ( 1 ) increases of $ 24.0 million and $ 11.3 million , respectively , relating to proceeds received from stock-option exercises and related tax benefits ; ( 2 ) an increase of $ 27.3 million recognized in connection with the value of the shares we received from the exercise of a note hedge upon the conversion of the 2011 convertible notes ; and ( 3 ) an increase of $ 27.1 million representing the net effects of the issuance of the 2016 convertible notes and related note hedge and warrant transactions .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```debt to the consolidated financial statements included in this annual report on form 10-k for details . other noncurrent liabilities at december 31 , 2011 were $ 80.5 million , compared to $ 39.3 million at december 31 , 2010. the $ 41.2 million increase was largely due to the recognition of the net , non-current portion of our royalty buy-down obligation to toray in the amount of $ 28.3 million and a $ 6.5 million increase in our supplemental executive retirement plan ( serp ) obligation which reflects an increased number of serp participants . additional paid-in capital increased by $ 64.0 million from $ 928.7 million at december 31 , 2010 to $ 992.7 million at december 31 , 2011. the increase consisted principally of the following elements : ( 1 ) increases of $ 24.0 million and $ 11.3 million , respectively , relating to proceeds received from stock-option exercises and related tax benefits ; ( 2 ) an increase of $ 27.3 million recognized in connection with the value of the shares we received from the exercise of a note hedge upon the conversion of the 2011 convertible notes ; and ( 3 ) an increase of $ 27.1 million representing the net effects of the issuance of the 2016 convertible notes and related note hedge and warrant transactions .
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Suspicious Activity Report : accordingly , the results of medicomp , inc. , including the gain recognized on its disposal , have been included in discontinued operations for each of the three years in the three-year period ended december 31 , 2011 on our consolidated statements of operations . refer to note 18 ย sale of medicomp , inc. to our consolidated financial statements included in this annual report on form 10-k for details . revenues sales of remodulin comprise the largest share of our revenues . other significant sources of revenues include sales of tyvaso and adcirca . sales of tyvaso and adcirca have continued to grow since their commercial introduction in 2009 , as each of these therapies has gained broader market acceptance . we sell remodulin and tyvaso in the united states to our specialty pharmaceutical distributors : accredo health group , inc. , curascript , inc. and cvs caremark . adcirca is sold to pharmaceutical wholesalers that are part of lilly 's pharmaceutical wholesaler network . we also sell remodulin to distributors outside of the united states . on july 21 , 2011 , express scripts , inc. , the parent company of curascript , announced the signing of a merger agreement with medco health solutions , inc. , the parent company of accredo . the parties announced that the merger , which is subject to regulatory and shareholder approvals , is expected to close in the first half of 2012. presently , we do not expect the merger , if approved , to materially affect our business . we require our distributors to maintain reasonable levels of contingent inventory at all times as the interruption of remodulin or tyvaso therapy can be life threatening . consequently , sales of these therapies in any given quarter may not precisely reflect patient demand . our distributors typically place monthly orders based on estimates of future demand and considerations of contractual minimum inventory requirements . as a result , sales volume of remodulin and tyvaso can vary , depending on the timing and magnitude of these orders . the patient protection and affordable care act , as amended by the health care and education reconciliation act ( collectively , the acts ) contains broad provisions that will be implemented over the next several years . we are continually evaluating the impact of the acts on our business ; however , our evaluation is dependent upon the issuance of final regulations and the impact this legislation will have on insurance companies and their relationships with drug manufacturers . on january 1 , 2011 , certain provisions of the acts that address the coverage gap in the medicare part d prescription drug program ( commonly known as the `` donut hole `` ) became effective . under these provisions , drug manufacturers are required to provide a 50 percent discount on branded prescription drugs to patients receiving reimbursement under medicare part d while they remain in this coverage gap . these provisions of the acts apply to adcirca , which is our only commercial pharmaceutical product covered by medicare part d. approximately 35 percent of our adcirca patients are covered under medicare part d. the vast majority of our remodulin and tyvaso medicare patients are covered under medicare part b , which does not contain a similar coverage gap . we were not materially impacted by the acts during 2010 and our revenues were reduced by less than one percent in 2011 as a result of the acts . however , the potential long-term impact of the acts on our business is inherently difficult to predict as many details regarding the implementation of this legislation have not yet been determined . presently , we have not identified any provisions that could 61 materially impact our business , but will continue to monitor future developments related to this legislation . total revenues are reported net of : ( 1 ) estimated rebates ; ( 2 ) prompt pay discounts ; ( 3 ) allowances for product returns or exchanges ; and ( 4 ) distributor fees . we estimate our liability for rebates based on an analysis of historical levels of rebates by product to both state medicaid agencies and commercial third-party payers relative to sales of each product . in addition , we determine our obligation for prescription drug discounts required for medicare part d patients within the coverage gap based on estimations of the number of medicare part d patients and the period such patients will remain within the coverage gap . we provide prompt pay discounts to customers that pay amounts due within a specific time period and base our estimates for prompt pay discounts on observed customer payment behavior . we derive estimates relating to the allowance for returns of adcirca from published industry data specific to specialty pharmaceuticals and will continue to do so until we have sufficient historical data on which to base our allowance . in addition , we compare patient prescription data for adcirca to sales of adcirca on a quarterly basis to ensure a reasonable relationship between prescription and sales trends . to date , we have not identified any unusual patterns in the volume of prescriptions relative to sales that would warrant reconsideration of , or adjustment to , the methodology we currently employ to estimate our allowance for returns . the allowance for exchanges for remodulin is based on the historical rate of product exchanges , which has been too immaterial to record . in addition , because tyvaso is distributed in the same manner and under similar contractual arrangements as remodulin , the level of product exchanges for tyvaso has been comparable to that of remodulin and we anticipate minimal exchange activity in the future for both products . lastly , we estimate distributor fees based on contractual rates for specific services applied to the estimated units of service provided for the period . story_separator_special_tag cancer disease projects ch14.18 antibody in july 2010 , we entered into a cooperative research and development agreement ( crada ) with the national cancer institute ( nci ) to collaborate on the late-stage development and regulatory submissions of chimeric monoclonal antibody 14.18 ( ch14.18 ) for children with high-risk neuroblastoma and patients with other forms of cancer . ch14.18 is an antibody that has shown potential in the treatment of certain types of cancer by targeting gd2 , a glycolipid on the surface of tumor cells . under the terms of the crada , nci is conducting a clinical trial in approximately 100 patients to define more clearly the safety and toxicity profile of ch14.18 immunotherapy in children , and we are developing the commercial manufacturing capability for the antibody . as part of developing our commercial manufacturing capability , we will need to demonstrate comparability of our ch14.18 to the nci-produced ch14.18 , which typically includes a series of analytical and bioanalytical assays and human pharmacokinetics . the nci studies , including a previously conducted phase iii clinical trial and all other necessary studies supported by nci , will be used as the basis for a biologics license application we expect to file seeking fda approval of ch14.18 immunotherapy for the treatment of neuroblastoma . we have received orphan drug designation for ch14.18 from the fda and european medicines agency . 66 8h9 antibody pursuant to a december 2007 agreement with memorial sloan-kettering cancer center , we obtained certain license rights to an investigational monoclonal antibody , 8h9 , for the treatment of metastatic brain cancer . 8h9 is a mouse igg1 mab that is highly reactive with a range of human solid tumors , including human brain cancers . the 8h9 antibody is in early investigational development for metastases that develop in the brain from the spread of cancers from other tissues in the body . metastatic brain cancers are ten times more common than cancers that originate in the brain , and prognosis for patients with metastatic brain cancers is very poor . in the united states , more than 100,000 cases of metastatic brain cancer are diagnosed each year . we have spent $ 75.0 million from inception to december 31 , 2011 , on our cancer programs . infectious disease projects pursuant to our research agreement with the university of oxford ( oxford ) , we have the exclusive right to commercialize a platform of glycobiology antiviral drug candidates in various preclinical and clinical stages of testing for the treatment of a wide variety of viruses . through our research agreement with oxford , we are also supporting research into new glycobiology antiviral drug candidates and technologies . we are currently testing many of these compounds in preclinical studies and oxford continues to synthesize new agents that we may elect to test . on september 30 , 2011 , we were awarded a cost plus fixed fee contract with an aggregate value of up to $ 45.0 million under a broad agency announcement from the u.s. national institute of allergy and infectious diseases for studies directed at the development of a broad spectrum antiviral drug based on our glycobiology antiviral platform . under the contract 's base period of forty-two months , we will receive $ 10.6 million in funding and there are eight milestone-based options to expand the project and funding under the contract , up to an aggregate of $ 45.0 million . we recognize revenue on this contract to the extent of costs incurred , plus a proportionate amount of fees earned . we have spent $ 52.6 million from inception to december 31 , 2011 , on our infectious disease programs . future prospects because pah remains a progressive disease without a cure , we expect continued growth in the demand for our commercial products as alternatives or complements to other existing approved therapies . furthermore , the commercial introduction of tyvaso and adcirca has enabled us to offer products to more patients along the full continuum of the disease . the continued achievement of our growth objectives will depend in large part upon the successful commercial development of products within our pipeline . to this end , we submitted to the fda an nda for oral treprostinil in december 2011 , plan to initiate enrollment in the freedom-c 3 study of oral treprostinil and a new event-driven phase iii tyvaso study during 2012 and continue to develop beraprost-mr. in addition , we seek to expand the use of our therapies to treat patients at earlier stages in the pah disease progression . our future growth and profitability will depend on many factors including , but not limited to : ( 1 ) the timing and outcome of clinical trials and regulatory approvals , including the filing and approval of our nda for oral treprostinil , and the pmr for tyvaso ; ( 2 ) the timing of the commercial launch of new products ; ( 3 ) the pricing of and demand for our products and services ; ( 4 ) the reimbursement of our products by public and private insurance organizations ; ( 5 ) the competition we face within our industry ; ( 6 ) our ability to effectively manage our growth in an increasingly complex regulatory environment ; and ( 7 ) our ability to defend against generic competition , including the recent challenge to our remodulin patents by a generic drug company . 67 we operate in a highly competitive market in which a small number of pharmaceutical companies control a majority of the currently approved pah therapies . these pharmaceutical companies not only possess greater visibility in the market , but also greater financial , technical and marketing resources than we do . in addition , there are a number of investigational products in late-stage development that , if approved , may erode the market share of our existing commercial therapies and make market
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2,597 | vimseltinib we are currently studying vimseltinib in an open-label phase 1/2 study designed to evaluate the safety , efficacy , pk , and pd of vimseltinib in patients with malignant solid tumors as well as patients with tgct . in november 2020 , we announced the selection of a phase 2 dose and initiated the expansion portion of the study with vimseltinib in patients with symptomatic tgct not suitable for surgery . we are continuing to enroll tgct patients in cohort 9 of the dose escalation portion of the study to complete enrollment in this cohort . we expect to present updated data for vimseltinib in the second half of 2021. rebastinib we are currently studying rebastinib in two phase 1b/2 studies in combination with chemotherapy , one with paclitaxel and one with carboplatin . in october 2018 , we initiated an open-label , multicenter , phase 1b/2 study of rebastinib in combination with paclitaxel to assess safety , tolerability , pk , and efficacy in patients with advanced or metastatic solid tumors . in january 2019 , we initiated an open-label , multicenter , phase 1b/2 study of rebastinib in combination with carboplatin in patients with advanced or metastatic solid tumors . in january 2020 , we selected a phase 2 dose for , and activated , part 2 of the phase 1b/2 study of rebastinib in combination with carboplatin . in may 2020 , we announced that in part 2 of the study of rebastinib in combination with paclitaxel , we observed the required number of responses in the first stage in both the endometrial and platinum-resistant ovarian cancer cohorts , triggering the expansion of enrollment in these cohorts . in addition , based on the clinical activity observed in part 1 , we added a cohort for patients with carcinosarcoma in part 2 of the study of rebastinib in combination with paclitaxel . we expect to present updated data from the study of rebastinib in combination with paclitaxel in patients with endometrial cancer in the second quarter of 2021 and in patients with proc in the second half of 2021. dcc-3116 in january 2021 , we announced our plans to initiate a phase 1 study of dcc-3116 in the second quarter of 2021 , subject to fda authorization to proceed under our ind for dcc-3116 , submitted in the fourth quarter of 2020 and cleared by the fda . coronavirus ( covid-19 ) the full extent to which the covid-19 pandemic , or the future outbreak of any other highly infectious or contagious diseases , may impact our business , including our preclinical studies , clinical trial operations , or commercialization efforts will depend on continuously changing circumstances , which are highly uncertain and can not be predicted at this time , such as the duration of such pandemic including future waves of infection , new strains of the virus that causes covid-19 , or the broad availability of effective vaccines , the actions taken to contain the pandemic or mitigate its impact , and the direct and indirect economic effects of the pandemic and containment measures , among others . the ongoing fluidity of this situation precludes any prediction as to the full impact of the covid-19 pandemic but it could have a material adverse effect on our business , financial condition , and results of operations . the covid-19 pandemic may also have the effect of heightening the risks to which we are subject , including various aspects of our preclinical studies and ongoing clinical trials , the reliance on third parties in our supply chain for materials and manufacturing of our drug and drug candidates , disruptions in health regulatory agencies ' operations globally , the volatility of our common stock , our ability to access capital markets , and our ability to successfully launch , commercialize , and generate revenue from qinlock . we are continuing to assess the long-term impact of covid-19 on our business operations in an effort to mitigate interruption to our clinical programs , research efforts , commercial launch of qinlock , and other business activities and to ensure the safety and well-being of our employees , as well as the physicians and patients participating in our clinical studies . because covid-19 infections have been reported throughout the u.s. and worldwide , certain national , state , and local governmental authorities have issued orders , proclamations , and or directives aimed at minimizing the spread of covid-19 . although some of these restrictions were eased or lifted , in response to local surges and new waves of infection , some countries , states , and local governments have reinstituted these restrictions , and additional , more restrictive orders , proclamations , and or directives may be issued in the future . in response to the covid-19 pandemic , we have implemented precautionary measures to protect the health and safety of our employees , partners , and patients , including encouraging all employees , other than those engaged in laboratory research activities , to work-from-home , and requiring adherence to onsite occupancy limits and appropriate safety measures designed to comply with federal , state , and local guidelines . 105 our ability to successfully launch , commercialize , and generate revenue from qinlock may be adversely affected by the impact of the covid-19 pandemic . for example , limited hospital access for non-patients , social distancing requirements , and precautionary measures due to covid-19 have impacted the ability of our sales personnel to interact in-person with customers . in response , we have implemented a virtual launch model , which may adversely affect the ability of our sales professionals to effectively market qinlock to physicians , which may have a negative impact on our sales and our market penetration . in addition , in the u.s. we are utilizing various programs to help patients afford our products , including patient assistance programs for eligible patients . story_separator_special_tag chargebacks and administrative fees : chargebacks for discounts represent our estimated obligations resulting from contractual commitments to sell product to qualified healthcare providers and government agencies at prices lower than the list 109 prices charged to the customers who directly purchase the product from us . the customers charge us for the difference between what the customers pay us for the product and the customer 's ultimate contractually committed or government required lower selling price to the qualified healthcare providers . as part of our contractual commitments to sell product to qualified healthcare providers , we pay fees for administrative services , such as account management and data reporting . government rebates : government rebates consist of medicare , tricare , and medicaid rebates . these reserves are recorded in the same period the related revenue is recognized . for medicare , we also estimate the number of patients in the prescription drug coverage gap for whom we will owe a rebate under the medicare part d program . trade discounts and allowances : we provide customers with discounts that are explicitly stated in contracts and recorded in the period the related product revenue is recognized . in addition , we also receive sales order management , inventory management , and data services from customers in exchange for certain fees . product returns : we estimate the amount of our product sales that may be returned by our customers and record this estimate in the period the related product revenue is recognized . we currently estimate product return liabilities based on available industry data and our visibility into the inventory remaining in the distribution channel . other incentives : other incentives include co-payment assistance provided to qualified patients , whereby we may provide financial assistance to patients with prescription drug co-payments required by the patient 's insurance provider . reserves for co-payment assistance are recorded in the same period the related revenue is recognized . accrued research and development expenses as part of the process of preparing our consolidated financial statements , we are required to estimate our accrued research and development expenses . this process involves reviewing open contracts and purchase orders , communicating with our applicable personnel to identify services that have been performed on our behalf , and estimating the associated cost incurred for the services when we have not yet been invoiced or otherwise notified of actual costs . the majority of our service providers invoice us in arrears for services performed , on a pre-determined schedule or when contractual milestones are met ; however , some require advance payments . we make estimates of our accrued expenses as of each balance sheet date in the consolidated financial statements based on facts and circumstances known to us at that time . we periodically confirm the accuracy of the estimates with the service providers and make adjustments if necessary . examples of estimated accrued research and development expenses include fees paid to : vendors in connection with the preclinical development activities ; cmos in connection with the production of preclinical and clinical trial materials ; cros in connection with preclinical and clinical studies ; and investigative sites in connection with clinical trials . we base our expenses related to preclinical studies and clinical trials on our estimates of the services received and efforts expended pursuant to quotes and contracts with multiple research institutions and cros that conduct and manage preclinical studies and clinical trials on our behalf . the financial terms of these agreements are subject to negotiation , vary from contract to contract and may result in uneven payment flows . there may be instances in which payments made to our vendors will exceed the level of services provided and result in a prepayment of the expense . in accruing service fees , we estimate the time period over which services will be performed and the level of effort to be expended in each period . if the actual timing of the performance of services or the level of effort varies from the estimate , we adjust the accrual or prepaid expense accordingly . although we do not expect our estimates to be materially different from amounts actually incurred , our understanding of the status and timing of services performed relative to the actual status and timing of services performed may vary and may result in reporting amounts that are too high or too low in any particular period . to date , there have not been any material adjustments to our prior estimates of accrued research and development expenses . stock-based compensation we measure all stock option awards granted to employees and directors based on the fair value on the date of the grant and recognize compensation expense of those awards over the requisite service period , which is generally the vesting period of the respective award . the straight-line method of expense recognition is applied to all awards with service-only conditions . we estimate the fair value of each stock option award using the black-scholes option-pricing model , which uses as inputs the fair value of our common stock and assumptions we make for the volatility of our common stock , the expected term of our 110 stock-based awards , the risk-free interest rate for a period that approximates the expected term of our stock-based awards , and our expected dividend yield . prior to october 2017 , we were a privately-held company and lacked company-specific historical and implied volatility information . therefore , we estimate our expected volatility based on the historical volatility of a set of our publicly traded peer companies as well as the limited historical volatility of our own traded stock price . we estimate the expected term of our options using the `` simplified `` method for awards that qualify as `` plain-vanilla `` options . the risk-free interest rate is determined by reference to the u.s. treasury yield curve in effect at the time of grant of the
| cash flows as of december 31 , 2020 , our principal sources of liquidity were cash , cash equivalents , and marketable securities of $ 561.3 million , which consisted of cash , money market funds , u.s. government securities , commercial paper , corporate debt securities , and certificates of deposit . the primary objectives of our investment activities are to preserve principal , provide liquidity , and maximize income without significantly increasing risk . given the nature of these investments , we believe that the market for these instruments is not illiquid . the following table summarizes our sources and uses of cash and cash equivalents for each of the periods presented : replace_table_token_6_th operating activities during the year ended december 31 , 2020 compared to the same period in 2019 , net cash used by operating activities increased $ 90.4 million , primarily resulting from an increase in our net loss of $ 74.2 million and increases in net cash outflows related to changes in our operating assets and liabilities of $ 38.6 million , partially offset by increases in net non-cash charges of $ 22.5 million . the increase in net cash outflows related to changes in our operating assets and liabilities was primarily due to an increase in accounts receivable of $ 13.9 million and an increase in inventory of $ 3.2 million . the increases in accounts receivable and inventory were primarily associated with sales of qinlock and the commencement of the capitalization of qinlock inventory , respectively , following the fda approval of qinlock in may 2020. other net cash outflows related to changes in our operating assets and liabilities were generally due to the timing of vendor invoicing and payments . net non-cash charges increased primarily due to an increase in share-based compensation of $ 16.7 million .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows as of december 31 , 2020 , our principal sources of liquidity were cash , cash equivalents , and marketable securities of $ 561.3 million , which consisted of cash , money market funds , u.s. government securities , commercial paper , corporate debt securities , and certificates of deposit . the primary objectives of our investment activities are to preserve principal , provide liquidity , and maximize income without significantly increasing risk . given the nature of these investments , we believe that the market for these instruments is not illiquid . the following table summarizes our sources and uses of cash and cash equivalents for each of the periods presented : replace_table_token_6_th operating activities during the year ended december 31 , 2020 compared to the same period in 2019 , net cash used by operating activities increased $ 90.4 million , primarily resulting from an increase in our net loss of $ 74.2 million and increases in net cash outflows related to changes in our operating assets and liabilities of $ 38.6 million , partially offset by increases in net non-cash charges of $ 22.5 million . the increase in net cash outflows related to changes in our operating assets and liabilities was primarily due to an increase in accounts receivable of $ 13.9 million and an increase in inventory of $ 3.2 million . the increases in accounts receivable and inventory were primarily associated with sales of qinlock and the commencement of the capitalization of qinlock inventory , respectively , following the fda approval of qinlock in may 2020. other net cash outflows related to changes in our operating assets and liabilities were generally due to the timing of vendor invoicing and payments . net non-cash charges increased primarily due to an increase in share-based compensation of $ 16.7 million .
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Suspicious Activity Report : vimseltinib we are currently studying vimseltinib in an open-label phase 1/2 study designed to evaluate the safety , efficacy , pk , and pd of vimseltinib in patients with malignant solid tumors as well as patients with tgct . in november 2020 , we announced the selection of a phase 2 dose and initiated the expansion portion of the study with vimseltinib in patients with symptomatic tgct not suitable for surgery . we are continuing to enroll tgct patients in cohort 9 of the dose escalation portion of the study to complete enrollment in this cohort . we expect to present updated data for vimseltinib in the second half of 2021. rebastinib we are currently studying rebastinib in two phase 1b/2 studies in combination with chemotherapy , one with paclitaxel and one with carboplatin . in october 2018 , we initiated an open-label , multicenter , phase 1b/2 study of rebastinib in combination with paclitaxel to assess safety , tolerability , pk , and efficacy in patients with advanced or metastatic solid tumors . in january 2019 , we initiated an open-label , multicenter , phase 1b/2 study of rebastinib in combination with carboplatin in patients with advanced or metastatic solid tumors . in january 2020 , we selected a phase 2 dose for , and activated , part 2 of the phase 1b/2 study of rebastinib in combination with carboplatin . in may 2020 , we announced that in part 2 of the study of rebastinib in combination with paclitaxel , we observed the required number of responses in the first stage in both the endometrial and platinum-resistant ovarian cancer cohorts , triggering the expansion of enrollment in these cohorts . in addition , based on the clinical activity observed in part 1 , we added a cohort for patients with carcinosarcoma in part 2 of the study of rebastinib in combination with paclitaxel . we expect to present updated data from the study of rebastinib in combination with paclitaxel in patients with endometrial cancer in the second quarter of 2021 and in patients with proc in the second half of 2021. dcc-3116 in january 2021 , we announced our plans to initiate a phase 1 study of dcc-3116 in the second quarter of 2021 , subject to fda authorization to proceed under our ind for dcc-3116 , submitted in the fourth quarter of 2020 and cleared by the fda . coronavirus ( covid-19 ) the full extent to which the covid-19 pandemic , or the future outbreak of any other highly infectious or contagious diseases , may impact our business , including our preclinical studies , clinical trial operations , or commercialization efforts will depend on continuously changing circumstances , which are highly uncertain and can not be predicted at this time , such as the duration of such pandemic including future waves of infection , new strains of the virus that causes covid-19 , or the broad availability of effective vaccines , the actions taken to contain the pandemic or mitigate its impact , and the direct and indirect economic effects of the pandemic and containment measures , among others . the ongoing fluidity of this situation precludes any prediction as to the full impact of the covid-19 pandemic but it could have a material adverse effect on our business , financial condition , and results of operations . the covid-19 pandemic may also have the effect of heightening the risks to which we are subject , including various aspects of our preclinical studies and ongoing clinical trials , the reliance on third parties in our supply chain for materials and manufacturing of our drug and drug candidates , disruptions in health regulatory agencies ' operations globally , the volatility of our common stock , our ability to access capital markets , and our ability to successfully launch , commercialize , and generate revenue from qinlock . we are continuing to assess the long-term impact of covid-19 on our business operations in an effort to mitigate interruption to our clinical programs , research efforts , commercial launch of qinlock , and other business activities and to ensure the safety and well-being of our employees , as well as the physicians and patients participating in our clinical studies . because covid-19 infections have been reported throughout the u.s. and worldwide , certain national , state , and local governmental authorities have issued orders , proclamations , and or directives aimed at minimizing the spread of covid-19 . although some of these restrictions were eased or lifted , in response to local surges and new waves of infection , some countries , states , and local governments have reinstituted these restrictions , and additional , more restrictive orders , proclamations , and or directives may be issued in the future . in response to the covid-19 pandemic , we have implemented precautionary measures to protect the health and safety of our employees , partners , and patients , including encouraging all employees , other than those engaged in laboratory research activities , to work-from-home , and requiring adherence to onsite occupancy limits and appropriate safety measures designed to comply with federal , state , and local guidelines . 105 our ability to successfully launch , commercialize , and generate revenue from qinlock may be adversely affected by the impact of the covid-19 pandemic . for example , limited hospital access for non-patients , social distancing requirements , and precautionary measures due to covid-19 have impacted the ability of our sales personnel to interact in-person with customers . in response , we have implemented a virtual launch model , which may adversely affect the ability of our sales professionals to effectively market qinlock to physicians , which may have a negative impact on our sales and our market penetration . in addition , in the u.s. we are utilizing various programs to help patients afford our products , including patient assistance programs for eligible patients . story_separator_special_tag chargebacks and administrative fees : chargebacks for discounts represent our estimated obligations resulting from contractual commitments to sell product to qualified healthcare providers and government agencies at prices lower than the list 109 prices charged to the customers who directly purchase the product from us . the customers charge us for the difference between what the customers pay us for the product and the customer 's ultimate contractually committed or government required lower selling price to the qualified healthcare providers . as part of our contractual commitments to sell product to qualified healthcare providers , we pay fees for administrative services , such as account management and data reporting . government rebates : government rebates consist of medicare , tricare , and medicaid rebates . these reserves are recorded in the same period the related revenue is recognized . for medicare , we also estimate the number of patients in the prescription drug coverage gap for whom we will owe a rebate under the medicare part d program . trade discounts and allowances : we provide customers with discounts that are explicitly stated in contracts and recorded in the period the related product revenue is recognized . in addition , we also receive sales order management , inventory management , and data services from customers in exchange for certain fees . product returns : we estimate the amount of our product sales that may be returned by our customers and record this estimate in the period the related product revenue is recognized . we currently estimate product return liabilities based on available industry data and our visibility into the inventory remaining in the distribution channel . other incentives : other incentives include co-payment assistance provided to qualified patients , whereby we may provide financial assistance to patients with prescription drug co-payments required by the patient 's insurance provider . reserves for co-payment assistance are recorded in the same period the related revenue is recognized . accrued research and development expenses as part of the process of preparing our consolidated financial statements , we are required to estimate our accrued research and development expenses . this process involves reviewing open contracts and purchase orders , communicating with our applicable personnel to identify services that have been performed on our behalf , and estimating the associated cost incurred for the services when we have not yet been invoiced or otherwise notified of actual costs . the majority of our service providers invoice us in arrears for services performed , on a pre-determined schedule or when contractual milestones are met ; however , some require advance payments . we make estimates of our accrued expenses as of each balance sheet date in the consolidated financial statements based on facts and circumstances known to us at that time . we periodically confirm the accuracy of the estimates with the service providers and make adjustments if necessary . examples of estimated accrued research and development expenses include fees paid to : vendors in connection with the preclinical development activities ; cmos in connection with the production of preclinical and clinical trial materials ; cros in connection with preclinical and clinical studies ; and investigative sites in connection with clinical trials . we base our expenses related to preclinical studies and clinical trials on our estimates of the services received and efforts expended pursuant to quotes and contracts with multiple research institutions and cros that conduct and manage preclinical studies and clinical trials on our behalf . the financial terms of these agreements are subject to negotiation , vary from contract to contract and may result in uneven payment flows . there may be instances in which payments made to our vendors will exceed the level of services provided and result in a prepayment of the expense . in accruing service fees , we estimate the time period over which services will be performed and the level of effort to be expended in each period . if the actual timing of the performance of services or the level of effort varies from the estimate , we adjust the accrual or prepaid expense accordingly . although we do not expect our estimates to be materially different from amounts actually incurred , our understanding of the status and timing of services performed relative to the actual status and timing of services performed may vary and may result in reporting amounts that are too high or too low in any particular period . to date , there have not been any material adjustments to our prior estimates of accrued research and development expenses . stock-based compensation we measure all stock option awards granted to employees and directors based on the fair value on the date of the grant and recognize compensation expense of those awards over the requisite service period , which is generally the vesting period of the respective award . the straight-line method of expense recognition is applied to all awards with service-only conditions . we estimate the fair value of each stock option award using the black-scholes option-pricing model , which uses as inputs the fair value of our common stock and assumptions we make for the volatility of our common stock , the expected term of our 110 stock-based awards , the risk-free interest rate for a period that approximates the expected term of our stock-based awards , and our expected dividend yield . prior to october 2017 , we were a privately-held company and lacked company-specific historical and implied volatility information . therefore , we estimate our expected volatility based on the historical volatility of a set of our publicly traded peer companies as well as the limited historical volatility of our own traded stock price . we estimate the expected term of our options using the `` simplified `` method for awards that qualify as `` plain-vanilla `` options . the risk-free interest rate is determined by reference to the u.s. treasury yield curve in effect at the time of grant of the
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2,598 | the company believes that after giving effect to the sale of 16,000,000 midas gold shares held by the company 's subsidiary vista gold u.s. inc. for gross proceeds of c $ 12,800 ( $ 11,640 ) and paying down the 2013 facility by approximately c $ 5,516 ( $ 5,000 ) ( see note 20 of the consolidated financial statements ) , it will have sufficient working capital to operate the company through 2014 and repay the remaining approximately c $ 1,443 ( $ 1,300 ) on its 2013 facility in full upon the facility maturing in march of 2015 or earlier ( defined below in โ financial position , liquidity and capital resources . โ ) results from operations summary for the year ended december 31 , 2013 , substantially all of our resources were focused on our mt . todd gold project in nt , australia , where we completed a pre-feasibility study and submitted a final environmental impact statement . through 2013 we introduced a range of cost cutting measures including the elimination of discretionary spending , downsizing the company and voluntary reductions to cash compensation for senior management . consolidated net loss for the year s ended december 31 , 2013 and 2012 was $ 59,488 and $ 70,656 or $ 0.73 and $ 0.9 5 per basic share , respectively . for the same period in 2011 we reported net income of $ 51,546 or $ 0.75 per basic share . the principal components of these year-over-year changes are discussed below . exploration , property evaluation and holding costs exploration , property evaluation and holding costs were $ 15,600 , $ 27,536 and $ 21,774 during the years ended december 31 , 2013 , 2012 and 2011 , respectively . the lower 2013 costs were in part due to the cost reductions noted above . in addition , several capital intensive activities which had started in 2012 were completed in early 2013. this includ es the mt todd gold project pre-feasibility study and related activities , permitting , and the september 2012 start of water treatment in the existing open pit . at our los cardones gold project , costs decreased in 2012 from 2011 because since february 2012 invecture group , s.a. de c.v. ( โ invecture โ ) began to incur all costs associated with the progression of this project under an earn-in right agreement ( โ earn-in right agreement โ ) . we completed a drilling program at our guadalupe de los reyes go ld/silver project in early 2012 , no similar programs were completed in 2013. corporate administration and investor relations corporate administration and investor relations costs were $ 5 , 528 , $ 8,096 , and $ 6,375 during the years ended december 31 , 2013 , 2012 , and 2011 , respectively . the decrease in 2013 was primarily attributable to cost cutting initiatives discussed above . the higher 2012 costs included abnormally high legal and professional fees associated with activities such as our shelf registration statement and completion of the earn-in right agreement , and an increase in stock-based compensation expense incurred to attract additional professional staff and consultants and to incentivize and retain professional staff and directors . depreciation and amortization depreciation and amortization expense was $ 1 , 021 , $ 589 , and $ 420 for years ended december 31 , 2013 , 2012 , and 2011 , respectively . the increases period-to-period were primarily attributable to increased capital expenditures at the mt . todd gold project during late 2012 and early 2013 . gain on disposal of mineral property pursuant to a joint venture agreement and an additional option agreement with awak mas holdings pty . ltd. ( โ am holdings โ ) a subsidiary of one asia , whereby am holdings had the right to earn an 80 % interest in our awak mas gold project in indonesia , we received certain cash payments in excess of the carrying value of the project , which resulted in a realized gain of $ 2,934 during the year ended december 31 , 2012. in april 2011 , vista was issued 30,402,615 midas gold shares as consideration for its interest in gold assets in the yellow pine-stibnite district in idaho . upon initial recognition of its investment in the midas gold shares , vista elected to apply the fair value option , and as such , the investment was recorded at fair value in the consolidated balance sheets . the difference between the fair value of our midas gold shares and the carrying value of our yellow pine assets resulted in an unrealized gain of $ 77,803 for the year ended december 31 , 2011 . non-operating income and expenses unrealized gain / ( loss ) on other investment s unrealized gain/ ( loss ) on other investments was $ ( 48,499 ) , $ ( 50,363 ) and $ 37,347 for the years ended december 31 , 2013 , 2012 and 2011 , respectively . these amounts are substantially the result of changes in fair value of our midas gold shares . write-down of property , plant and equipment impairment charges of $ 3,500 and $ 7,117 for the years ended december 31 , 2013 and 2012 , respectively , were primarily due to the write -down the carrying value of the mill equipment to its estimated fair value of $ 6,500 and $ 10,000 , respectively , net of costs to sell and commissions , based on an independent assessment from a third party who has been contracted to sell the mill equipment on our behalf . there were no such charges during the year ended december 31 , 2011. deferred income tax benefit/ ( expense ) fluctuations in the fair value of our midas gold shares result in fluctuations in the deferred income tax benefit/ ( expense ) . story_separator_special_tag mineral p roperties mineral property acquisition costs , including directly related costs , are capitalized when incurred , and mineral property exploration costs are expensed as incurred . when we determine that a mineral property can be economically developed in accordance with u.s. gaap , the costs then incurred to develop such property will be capitalized . c apitalized costs will be depleted using the units-of-production method over the estimated life of the proven and probable reserves . if mineral properties are subsequently abandoned or impaired , any undepleted costs will be charged to loss in that period . the recoverability of the carrying values of our mineral properties is dependent upon economic reserves being discovered or developed on the properties , permitting , financing , start-up , and commercial production from , or the sale/lease of , or other strategic transactions related to these properties . development and or start-up of any of these projects will depend on , among other things , management 's ability to raise additional capital for these purposes . we assess the carrying cost of our mineral properties for impairment whenever information or circumstances indicate the potential for impairment . this would include events and circumstances such as our inability to obtain all the necessary permits , changes in the legal status of our mineral properties , government actions , the results of exploration activities and technical evaluations and changes in economic conditions , including the price of gold and other commodities or input prices . such evaluations compare estimated future net cash flows with our carrying costs and future obligations on an undiscounted basis . if it is determined that the estimated future undiscounted cash flows are less than the carrying value of the property , a write-down to the estimated fair value will then be reported in our consolidated statement of income/ ( loss ) for the period . where estimates of future net cash flows are not determinable and where other conditions indicate the potential for impairment , management uses its judgment to assess if the carrying value can be recovered and to estimate fair value . assets held for sale plant and equipment is classified as held for sale when the following conditions are met : ( i ) assets ( or group of assets ) are actively marketed for a price which reasonably approximates the fair value at the time of sale ; ( ii ) management has committed to a plan to sell the assets ( or group of assets ) ; ( iii ) the assets ( or group of assets ) are available for sale in current condition ; and ( iv ) sale is probable within the next 12 months . warrants and compensation options warrants and compensation options issued are recorded at fair value using the black-scholes merton fair value model adjusted to relative fair value . stock-based compensation under our stock option and long-term equity incentive plans , stock incentive options and awards may be granted to executives , employees , consultants and non-employee directors . compensation expense for such grants is recorded in the consolidated statements of income/ ( loss ) and comprehensive income/ ( loss ) as a component of exploration , property evaluation and holding costs and corporate administration and investor relations , with a corresponding increase to additional paid-in capital in the consolidated balance sheets . the fair values of the options are calculated using the black -scholes option pricing model . the expense is based on the fair values of the grant on the grant date and is recognized over the vesting period specified for each grant . financial instruments accounting standards codification topic 820 , fair value measurements and disclosures ( โ asc 820 โ ) of the financial accounti n g standards board ( โ fasb โ ) requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value . asc 820 establishes a fair value hierarchy based on the level of independent , objective evidence surrounding the inputs used to measure fair value . a financial instrument 's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement . asc 820 prioritizes the inputs into three levels that may be used to measure fair value : ยท level 1 โ unadjusted quoted prices in active markets that are accessible at the measurement date for identical , unrestricted assets or liabilities . ยท level 2 โ observable inputs other than quoted prices included within level 1 that are observable for the asset or liability , either directly or indirectly , including quoted prices for similar assets and liabilities in active markets ; quoted prices for identical or similar assets and liabilities in markets that are not active ; or other inputs that are observable or can be corroborated by observable market data by correlation or other means . ยท level 3 โ prices or valuation techniques requiring inputs that a re both significant to the fair value measurement and unobservable . our financial instruments include cash and cash equivalents , marketable securities , amayapampa interest ( see note 7 to the financial statements ) , short- and long-term investments , accounts payable and certain other current assets and liabilities . due to the short-term nature of our cash and cash equivalents , accounts payable and certain other current assets and liabilities , we believe that their carrying amounts approximate fair value . our marketable securities are classified as available-for-sale . accordingly , these securities are carried at fair value , which is based upon quoted ma rket prices in an active market and included in level 1 of the fair value hierarchy . our other investments , comprised of midas gold shares , is accounted for using the fair value option based on quoted market prices in an active market and is included in
| net cash provided b y investing activities of $ 5,039 for the year ended december 31 , 2013 was primarily due to receipt of $ 7,000 related to the sale of the los cardones project , offset by additions to plant and equipment of $ 2,199 at the mt . todd gold project . net cash provided by investing activities o f $ 3,839 for the year ended december 31 , 2012 was primarily due to receipt of $ 5,500 from agreements related to awak mas and los cardones projects , offset by additions to plant and equipment of $ 2,066 , mainly at our mt . todd gold project . net cash used in investing activities of $ 4,044 for the same period in 2011 was primarily due to the acquisition for cash of 1,400,000 additional midas gold shares issued in a private placement . financing activities net cash provided by financing activities was $ 6,677 for the year ended december 31 , 2013 due to the draw-down of a loan facility during 2013 , net of repayments . during march 2013 , we closed and drew a c $ 10,000 ( $ 9,764 ) loan facility ( the โ 2013 facility โ ) . the 2013 facility originally matured march 2014 , with early repayment of the 2013 facility allowed , at the company 's option , provided that at least four months interest has been paid . during the fourth quarte r of 2013 , the company and the l ender agreed to extend the maturity date of the 2013 facility to march 2015. the 2013 facility is secured by a general security agreement ( โ gsa โ ) with certain exclusions . in addition , the company has pledged all the company 's midas gold shares ( note 5 ) as security and paid the lender an extension fee comprised of 486,382 vista common shares .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```net cash provided b y investing activities of $ 5,039 for the year ended december 31 , 2013 was primarily due to receipt of $ 7,000 related to the sale of the los cardones project , offset by additions to plant and equipment of $ 2,199 at the mt . todd gold project . net cash provided by investing activities o f $ 3,839 for the year ended december 31 , 2012 was primarily due to receipt of $ 5,500 from agreements related to awak mas and los cardones projects , offset by additions to plant and equipment of $ 2,066 , mainly at our mt . todd gold project . net cash used in investing activities of $ 4,044 for the same period in 2011 was primarily due to the acquisition for cash of 1,400,000 additional midas gold shares issued in a private placement . financing activities net cash provided by financing activities was $ 6,677 for the year ended december 31 , 2013 due to the draw-down of a loan facility during 2013 , net of repayments . during march 2013 , we closed and drew a c $ 10,000 ( $ 9,764 ) loan facility ( the โ 2013 facility โ ) . the 2013 facility originally matured march 2014 , with early repayment of the 2013 facility allowed , at the company 's option , provided that at least four months interest has been paid . during the fourth quarte r of 2013 , the company and the l ender agreed to extend the maturity date of the 2013 facility to march 2015. the 2013 facility is secured by a general security agreement ( โ gsa โ ) with certain exclusions . in addition , the company has pledged all the company 's midas gold shares ( note 5 ) as security and paid the lender an extension fee comprised of 486,382 vista common shares .
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Suspicious Activity Report : the company believes that after giving effect to the sale of 16,000,000 midas gold shares held by the company 's subsidiary vista gold u.s. inc. for gross proceeds of c $ 12,800 ( $ 11,640 ) and paying down the 2013 facility by approximately c $ 5,516 ( $ 5,000 ) ( see note 20 of the consolidated financial statements ) , it will have sufficient working capital to operate the company through 2014 and repay the remaining approximately c $ 1,443 ( $ 1,300 ) on its 2013 facility in full upon the facility maturing in march of 2015 or earlier ( defined below in โ financial position , liquidity and capital resources . โ ) results from operations summary for the year ended december 31 , 2013 , substantially all of our resources were focused on our mt . todd gold project in nt , australia , where we completed a pre-feasibility study and submitted a final environmental impact statement . through 2013 we introduced a range of cost cutting measures including the elimination of discretionary spending , downsizing the company and voluntary reductions to cash compensation for senior management . consolidated net loss for the year s ended december 31 , 2013 and 2012 was $ 59,488 and $ 70,656 or $ 0.73 and $ 0.9 5 per basic share , respectively . for the same period in 2011 we reported net income of $ 51,546 or $ 0.75 per basic share . the principal components of these year-over-year changes are discussed below . exploration , property evaluation and holding costs exploration , property evaluation and holding costs were $ 15,600 , $ 27,536 and $ 21,774 during the years ended december 31 , 2013 , 2012 and 2011 , respectively . the lower 2013 costs were in part due to the cost reductions noted above . in addition , several capital intensive activities which had started in 2012 were completed in early 2013. this includ es the mt todd gold project pre-feasibility study and related activities , permitting , and the september 2012 start of water treatment in the existing open pit . at our los cardones gold project , costs decreased in 2012 from 2011 because since february 2012 invecture group , s.a. de c.v. ( โ invecture โ ) began to incur all costs associated with the progression of this project under an earn-in right agreement ( โ earn-in right agreement โ ) . we completed a drilling program at our guadalupe de los reyes go ld/silver project in early 2012 , no similar programs were completed in 2013. corporate administration and investor relations corporate administration and investor relations costs were $ 5 , 528 , $ 8,096 , and $ 6,375 during the years ended december 31 , 2013 , 2012 , and 2011 , respectively . the decrease in 2013 was primarily attributable to cost cutting initiatives discussed above . the higher 2012 costs included abnormally high legal and professional fees associated with activities such as our shelf registration statement and completion of the earn-in right agreement , and an increase in stock-based compensation expense incurred to attract additional professional staff and consultants and to incentivize and retain professional staff and directors . depreciation and amortization depreciation and amortization expense was $ 1 , 021 , $ 589 , and $ 420 for years ended december 31 , 2013 , 2012 , and 2011 , respectively . the increases period-to-period were primarily attributable to increased capital expenditures at the mt . todd gold project during late 2012 and early 2013 . gain on disposal of mineral property pursuant to a joint venture agreement and an additional option agreement with awak mas holdings pty . ltd. ( โ am holdings โ ) a subsidiary of one asia , whereby am holdings had the right to earn an 80 % interest in our awak mas gold project in indonesia , we received certain cash payments in excess of the carrying value of the project , which resulted in a realized gain of $ 2,934 during the year ended december 31 , 2012. in april 2011 , vista was issued 30,402,615 midas gold shares as consideration for its interest in gold assets in the yellow pine-stibnite district in idaho . upon initial recognition of its investment in the midas gold shares , vista elected to apply the fair value option , and as such , the investment was recorded at fair value in the consolidated balance sheets . the difference between the fair value of our midas gold shares and the carrying value of our yellow pine assets resulted in an unrealized gain of $ 77,803 for the year ended december 31 , 2011 . non-operating income and expenses unrealized gain / ( loss ) on other investment s unrealized gain/ ( loss ) on other investments was $ ( 48,499 ) , $ ( 50,363 ) and $ 37,347 for the years ended december 31 , 2013 , 2012 and 2011 , respectively . these amounts are substantially the result of changes in fair value of our midas gold shares . write-down of property , plant and equipment impairment charges of $ 3,500 and $ 7,117 for the years ended december 31 , 2013 and 2012 , respectively , were primarily due to the write -down the carrying value of the mill equipment to its estimated fair value of $ 6,500 and $ 10,000 , respectively , net of costs to sell and commissions , based on an independent assessment from a third party who has been contracted to sell the mill equipment on our behalf . there were no such charges during the year ended december 31 , 2011. deferred income tax benefit/ ( expense ) fluctuations in the fair value of our midas gold shares result in fluctuations in the deferred income tax benefit/ ( expense ) . story_separator_special_tag mineral p roperties mineral property acquisition costs , including directly related costs , are capitalized when incurred , and mineral property exploration costs are expensed as incurred . when we determine that a mineral property can be economically developed in accordance with u.s. gaap , the costs then incurred to develop such property will be capitalized . c apitalized costs will be depleted using the units-of-production method over the estimated life of the proven and probable reserves . if mineral properties are subsequently abandoned or impaired , any undepleted costs will be charged to loss in that period . the recoverability of the carrying values of our mineral properties is dependent upon economic reserves being discovered or developed on the properties , permitting , financing , start-up , and commercial production from , or the sale/lease of , or other strategic transactions related to these properties . development and or start-up of any of these projects will depend on , among other things , management 's ability to raise additional capital for these purposes . we assess the carrying cost of our mineral properties for impairment whenever information or circumstances indicate the potential for impairment . this would include events and circumstances such as our inability to obtain all the necessary permits , changes in the legal status of our mineral properties , government actions , the results of exploration activities and technical evaluations and changes in economic conditions , including the price of gold and other commodities or input prices . such evaluations compare estimated future net cash flows with our carrying costs and future obligations on an undiscounted basis . if it is determined that the estimated future undiscounted cash flows are less than the carrying value of the property , a write-down to the estimated fair value will then be reported in our consolidated statement of income/ ( loss ) for the period . where estimates of future net cash flows are not determinable and where other conditions indicate the potential for impairment , management uses its judgment to assess if the carrying value can be recovered and to estimate fair value . assets held for sale plant and equipment is classified as held for sale when the following conditions are met : ( i ) assets ( or group of assets ) are actively marketed for a price which reasonably approximates the fair value at the time of sale ; ( ii ) management has committed to a plan to sell the assets ( or group of assets ) ; ( iii ) the assets ( or group of assets ) are available for sale in current condition ; and ( iv ) sale is probable within the next 12 months . warrants and compensation options warrants and compensation options issued are recorded at fair value using the black-scholes merton fair value model adjusted to relative fair value . stock-based compensation under our stock option and long-term equity incentive plans , stock incentive options and awards may be granted to executives , employees , consultants and non-employee directors . compensation expense for such grants is recorded in the consolidated statements of income/ ( loss ) and comprehensive income/ ( loss ) as a component of exploration , property evaluation and holding costs and corporate administration and investor relations , with a corresponding increase to additional paid-in capital in the consolidated balance sheets . the fair values of the options are calculated using the black -scholes option pricing model . the expense is based on the fair values of the grant on the grant date and is recognized over the vesting period specified for each grant . financial instruments accounting standards codification topic 820 , fair value measurements and disclosures ( โ asc 820 โ ) of the financial accounti n g standards board ( โ fasb โ ) requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value . asc 820 establishes a fair value hierarchy based on the level of independent , objective evidence surrounding the inputs used to measure fair value . a financial instrument 's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement . asc 820 prioritizes the inputs into three levels that may be used to measure fair value : ยท level 1 โ unadjusted quoted prices in active markets that are accessible at the measurement date for identical , unrestricted assets or liabilities . ยท level 2 โ observable inputs other than quoted prices included within level 1 that are observable for the asset or liability , either directly or indirectly , including quoted prices for similar assets and liabilities in active markets ; quoted prices for identical or similar assets and liabilities in markets that are not active ; or other inputs that are observable or can be corroborated by observable market data by correlation or other means . ยท level 3 โ prices or valuation techniques requiring inputs that a re both significant to the fair value measurement and unobservable . our financial instruments include cash and cash equivalents , marketable securities , amayapampa interest ( see note 7 to the financial statements ) , short- and long-term investments , accounts payable and certain other current assets and liabilities . due to the short-term nature of our cash and cash equivalents , accounts payable and certain other current assets and liabilities , we believe that their carrying amounts approximate fair value . our marketable securities are classified as available-for-sale . accordingly , these securities are carried at fair value , which is based upon quoted ma rket prices in an active market and included in level 1 of the fair value hierarchy . our other investments , comprised of midas gold shares , is accounted for using the fair value option based on quoted market prices in an active market and is included in
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2,599 | we have been providing freighter aircraft and services for cargo handling and logistical support for amazon 's asi since september 2015. revenues from our commercial arrangements with asi comprised approximately 27 % , 27 % and 18 % of our consolidated revenues excluding directly reimbursed revenues during the years ended december 31 , 2018 , 2017 and 2016 , respectively . on march 8 , 2016 , we entered into an air transportation services agreement ( the โ atsa โ ) with asi pursuant to which cam leased 20 boeing 767 freighter aircraft to asi , including 12 boeing 767-200 freighter aircraft for a term of five years and eight boeing 767-300 freighter aircraft for a term of seven years . the atsa also provides for the operation of those aircraft by our airline subsidiaries , for a term of five years , and the performance of ground handling services by our subsidiary , lgstx . in december 2018 , the company announced agreements with amazon to 1 ) lease and operate ten additional boeing 767-300 aircraft for asi , 2 ) extend the term of the 12 boeing 767-200 aircraft currently leased to asi by two years to 2023 with an option for three more years , 3 ) 25 extend the term of the eight boeing 767-300 aircraft currently leased to asi by three years to 2026 and 2027 with an option for three more years and 4 ) extend the atsa by five years through march 2026 , with an option to extend for an additional three years . during january , 2019 , amendments to extend the terms of aircraft leases were executed . we plan to deliver five of the 767-300 aircraft in 2019 and the remainder in 2020 for lease . all ten of these aircraft leases will be for ten years . under the atsa , we operate the aircraft based on pre-defined fees scaled for the number of aircraft hours flown , aircraft scheduled and flight crews provided to asi for its network . in conjunction with the execution of the atsa , the company and amazon entered into an investment agreement and a stockholders agreement on march 8 , 2016. the investment agreement calls for the company to issue warrants in three tranches which grant amazon the right to acquire up to 19.9 % of the company 's pre-transaction outstanding common shares measured on a gaap-diluted basis , adjusted for share issuances and repurchases by the company following the date of the investment agreement and after giving effect to the warrants granted . in conjunction with the commitment for the ten additional 767 aircraft leases , extensions of twenty existing boeing 767 aircraft leases and additional aircraft operations under the atsa , amazon will be issued warrants for 14.8 million common shares which could expand its potential ownership in the company to approximately 33.2 % , including the warrants described above for the 2016 agreements . these new warrants will vest as existing leases are extended and additional aircraft leases are executed and added to the atsa operations . additionally , amazon can earn incremental warrant rights , increasing its potential ownership from 33.2 % up to approximately 39.9 % of the company , by leasing up to seventeen more cargo aircraft from the company before january 2026. for additional information about the warrants see note d to the accompanying consolidated financial statements . our accounting for the warrants issued to amazon has been determined in accordance with the financial reporting guidance for equity-based payments to non-employees and for financial instruments . the fair value of the warrants issued or issuable to amazon are recorded as a lease incentive asset and are amortized against revenues over the duration of the aircraft leases . the warrants are accounted for as financial instruments , and accordingly , the fair value of the outstanding warrants are measured and classified in liabilities at the end of each reporting period . as of december 31 , 2018 , our liabilities reflected 14.83 million outstanding warrants having a fair value of $ 13.76 per share . during 2018 , the re-measurements of the warrants to fair value resulted in a non-operating gain of $ 7.4 million before the effect of income taxes compared to a $ 81.8 million loss for the year ended december 31 , 2017. the dod comprised 15 % , 10 % and 14 % of the company 's consolidated revenues excluding directly reimbursed revenues during the years ended december 31 , 2018 , 2017 and 2016 , respectively . the company 's airlines provide passenger airlift services to the u.s. dod as participants in the craf program . due to the acquisition of oai , we expect the dod to comprise 35 % of our 2019 consolidated revenues . results of operations aircraft fleet summary our fleet of cargo and passenger aircraft is summarized in the following table as of december 31 , 2018 , 2017 and 2016. our cam-owned operating aircraft fleet has increased by 29 aircraft since the end of 2016 , driven by customer demand for the boeing 767-300 converted freighter as well as the purchase of 11 passenger aircraft operated by oai . our freighters , converted from passenger aircraft , utilize standard shipping containers and can be deployed into regional cargo markets more economically than larger capacity aircraft , newly built freighters or other competing alternatives . at december 31 , 2018 , the company owned five boeing 767-300 aircraft that were either already undergoing , or awaiting induction into the freighter conversion process . aircraft fleet activity during 2018 is summarized below : - cam completed the modification of nine boeing 767-300 freighter aircraft , six purchased in the previous year and three purchased in 2018. cam began to lease seven of those aircraft under multi-year leases to external customers . cam began to lease the other two aircraft to ati . story_separator_special_tag the pre-tax earnings from mro services decreased by $ 5.2 million to $ 14.5 million in 2018. the decline in mro services profitability reflects a mix of more lower margin maintenance services revenues and longer completion times . other activities we provide other support services to our acmi services customers and other airlines by leveraging our knowledge and capabilities developed for our own operations over the years . through september 30 , 2018 , we provided mail and package sorting and logistical support to the u.s. postal service ( โ usps โ ) at five usps facilities . we arrange and perform similar services for certain asi gateway locations in the u.s. we provide maintenance for ground equipment , facilities and material handling equipment . we also resell aviation fuel in ohio and provide flight training . external customer revenues from all other activities , excluding directly reimbursed revenues , decreased $ 3.1 million in 2018 compared to 2017. declines in usps revenue during 2018 were offset partially by additional ground support services provided to asi . during june of 2018 , we began to provide cargo handling and related ground support services directly to asi at one of its gateway locations . 31 the pre-tax earnings from other activities increased by $ 3.5 million to $ 9.1 million in 2018. additional earnings were a result of additional asi services and improved results from an airline affiliate accounted for under the equity method . expenses from continuing operations salaries , wages and benefits expense increased $ 24.4 million during 2018 compared to 2017 driven by higher headcount for flight operations , maintenance services and package sorting services . the increase in expense for 2018 included $ 13.4 million for omni , acquired in november 2018. the increase during 2018 also included higher flight crew wages in conjunction with an amendment to the collective bargaining agreement with the ati crewmembers , additional employees and additional aircraft maintenance technician time to support increased block hours and increased mro services revenues . depreciation and amortization expense increased $ 24.3 million during 2018 compared to 2017. the increase in depreciation expense included $ 8.7 million for omni assets acquired in november 2018. the increase also reflects incremental depreciation for 15 boeing 767-300 aircraft and additional aircraft engines added to the operating fleet since mid-2017 , as well as capitalized heavy maintenance and navigation technology upgrades . we expect depreciation expense to increase during future periods in conjunction with our fleet expansion and capital spending plans . maintenance , materials and repairs expense increased by $ 5.1 million during 2018 compared to 2017. the increase in expense for 2018 included $ 2.8 million for omni , acquired in november 2018. the remainder of the increase was due primarily to mro services for external customers . during 2018 , mro services had an increased level of customer revenues and direct expenses compared to 2017. aircraft maintenance and material expenses can vary among periods due to the number of maintenance events and the scope of airframe checks that are performed . fuel expense decreased by $ 110.3 million during 2018 compared to 2017. in 2017 , fuel expense included reimbursable fuel billed to dhl , asi and other acmi customers which is being netted against the revenue in 2018 after the adoption of topic 606. the customer-reimbursed fuel for 2017 was $ 133.5 million . fuel expense includes the cost of fuel to operate dod charters as well as fuel used to position aircraft for service and for maintenance purposes . fuel expense , excluding customer-reimbursed fuel , increased $ 23.2 million for 2018 compared to 2017. the increase for 2018 included $ 13.8 million for omni . the remainder of the increase was due to more block hours flown for military customers in 2018. contracted ground and aviation services expense includes navigational services , aircraft and cargo handling services , baggage handling services and other airport services . contracted ground and aviation services decreased $ 130.5 million during 2018 compared to 2017. the decrease is primarily due to the netting of reimbursable revenues from certain ground services arranged for asi against the expense in 2018 due to the adoption of topic 606. the customer-reimbursed expenses in 2017 were $ 138.4 million . without these customer-reimbursed expenses , contracted ground and aviation services increased $ 7.9 million during 2018 compared to 2017. this increase included $ 5.8 million for omni . travel expense increased by $ 7.1 million during 2018 compared to 2017. the increase for 2018 included $ 6.3 million for omni . landing and ramp expense , which includes the cost of deicing chemicals , decreased by $ 16.3 million during 2018 compared to 2017. the decrease is primarily due to the netting of reimbursable revenues from landing and ramp fees billed to dhl , asi and other acmi customers against expense in 2018 due to the adoption of topic 606. rent expense increased by $ 0.3 million during 2018 compared to 2017. this increase included $ 1.1 million for omni . this increase was partially offset by decreases in building rent after the expiration of the contracts for the five usps facilities . insurance expense increased by $ 1.3 million during 2018 compared to 2017. aircraft fleet insurance has increased due to additional aircraft operations during 2018 compared to 2017. other operating expenses increased by $ 1.8 million during 2018 compared to 2017. other operating expenses include professional fees , employee training and utilities . the increase for 2018 included $ 4.0 million for omni . other operating expenses during 2018 were partially offset by improved operating results of an airline affiliate accounted for under the equity method . 32 interest expense increased by $ 11.8 million during 2018 compared to 2017. interest expense increased due to a higher average debt level , including an additional term loan under the senior credit agreement of $ 675.0 million to finance the acquisition of omni and
| cash flows net cash generated from operating activities totaled $ 298.0 million , $ 235.0 million and $ 193.1 million in 2018 , 2017 and 2016 , respectively . improved cash flows generated from operating activities during 2018 and 2017 , were driven primarily by additional aircraft leases to customers and by increased operating levels of the acmi services segment . cash outlays for pension contributions were $ 22.2 million , $ 4.5 million and $ 6.3 million in 2018 , 2017 and 2016 , respectively . capital spending levels were primarily the result of aircraft modification costs and the acquisition of aircraft for freighter modification . cash payments for capital expenditures were $ 292.9 million , $ 296.9 million and $ 264.5 million in 2018 , 2017 and 2016 , respectively . capital expenditures in 2018 included $ 197.1 million for the acquisition of eight boeing 767-300 aircraft and freighter modification costs ; $ 61.7 million for required heavy maintenance ; and $ 34.1 million for other equipment , including purchases of aircraft engines and rotables . capital expenditures in 2017 included $ 209.4 million for the acquisition of eight boeing 767-300 aircraft and two boeing 737-400 aircraft and freighter modification costs ; $ 53.3 million for required heavy maintenance ; and $ 34.2 million for other equipment , including purchases of aircraft engines and rotables . our capital expenditures in 2016 included $ 185.3 million for the acquisition of eleven boeing 767-300 aircraft , freighter modification costs and next generation navigation modifications ; $ 30.4 million for required heavy maintenance ; and $ 48.8 million for other equipment , including purchases of aircraft engines and rotables . cash proceeds of $ 17.6 million , $ 0.4 million and $ 12.4 million were received in 2018 , 2017 and 2016 , respectively , for the sale of aircraft engines , airframes and parts .
| Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. |
Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
```cash flows net cash generated from operating activities totaled $ 298.0 million , $ 235.0 million and $ 193.1 million in 2018 , 2017 and 2016 , respectively . improved cash flows generated from operating activities during 2018 and 2017 , were driven primarily by additional aircraft leases to customers and by increased operating levels of the acmi services segment . cash outlays for pension contributions were $ 22.2 million , $ 4.5 million and $ 6.3 million in 2018 , 2017 and 2016 , respectively . capital spending levels were primarily the result of aircraft modification costs and the acquisition of aircraft for freighter modification . cash payments for capital expenditures were $ 292.9 million , $ 296.9 million and $ 264.5 million in 2018 , 2017 and 2016 , respectively . capital expenditures in 2018 included $ 197.1 million for the acquisition of eight boeing 767-300 aircraft and freighter modification costs ; $ 61.7 million for required heavy maintenance ; and $ 34.1 million for other equipment , including purchases of aircraft engines and rotables . capital expenditures in 2017 included $ 209.4 million for the acquisition of eight boeing 767-300 aircraft and two boeing 737-400 aircraft and freighter modification costs ; $ 53.3 million for required heavy maintenance ; and $ 34.2 million for other equipment , including purchases of aircraft engines and rotables . our capital expenditures in 2016 included $ 185.3 million for the acquisition of eleven boeing 767-300 aircraft , freighter modification costs and next generation navigation modifications ; $ 30.4 million for required heavy maintenance ; and $ 48.8 million for other equipment , including purchases of aircraft engines and rotables . cash proceeds of $ 17.6 million , $ 0.4 million and $ 12.4 million were received in 2018 , 2017 and 2016 , respectively , for the sale of aircraft engines , airframes and parts .
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Suspicious Activity Report : we have been providing freighter aircraft and services for cargo handling and logistical support for amazon 's asi since september 2015. revenues from our commercial arrangements with asi comprised approximately 27 % , 27 % and 18 % of our consolidated revenues excluding directly reimbursed revenues during the years ended december 31 , 2018 , 2017 and 2016 , respectively . on march 8 , 2016 , we entered into an air transportation services agreement ( the โ atsa โ ) with asi pursuant to which cam leased 20 boeing 767 freighter aircraft to asi , including 12 boeing 767-200 freighter aircraft for a term of five years and eight boeing 767-300 freighter aircraft for a term of seven years . the atsa also provides for the operation of those aircraft by our airline subsidiaries , for a term of five years , and the performance of ground handling services by our subsidiary , lgstx . in december 2018 , the company announced agreements with amazon to 1 ) lease and operate ten additional boeing 767-300 aircraft for asi , 2 ) extend the term of the 12 boeing 767-200 aircraft currently leased to asi by two years to 2023 with an option for three more years , 3 ) 25 extend the term of the eight boeing 767-300 aircraft currently leased to asi by three years to 2026 and 2027 with an option for three more years and 4 ) extend the atsa by five years through march 2026 , with an option to extend for an additional three years . during january , 2019 , amendments to extend the terms of aircraft leases were executed . we plan to deliver five of the 767-300 aircraft in 2019 and the remainder in 2020 for lease . all ten of these aircraft leases will be for ten years . under the atsa , we operate the aircraft based on pre-defined fees scaled for the number of aircraft hours flown , aircraft scheduled and flight crews provided to asi for its network . in conjunction with the execution of the atsa , the company and amazon entered into an investment agreement and a stockholders agreement on march 8 , 2016. the investment agreement calls for the company to issue warrants in three tranches which grant amazon the right to acquire up to 19.9 % of the company 's pre-transaction outstanding common shares measured on a gaap-diluted basis , adjusted for share issuances and repurchases by the company following the date of the investment agreement and after giving effect to the warrants granted . in conjunction with the commitment for the ten additional 767 aircraft leases , extensions of twenty existing boeing 767 aircraft leases and additional aircraft operations under the atsa , amazon will be issued warrants for 14.8 million common shares which could expand its potential ownership in the company to approximately 33.2 % , including the warrants described above for the 2016 agreements . these new warrants will vest as existing leases are extended and additional aircraft leases are executed and added to the atsa operations . additionally , amazon can earn incremental warrant rights , increasing its potential ownership from 33.2 % up to approximately 39.9 % of the company , by leasing up to seventeen more cargo aircraft from the company before january 2026. for additional information about the warrants see note d to the accompanying consolidated financial statements . our accounting for the warrants issued to amazon has been determined in accordance with the financial reporting guidance for equity-based payments to non-employees and for financial instruments . the fair value of the warrants issued or issuable to amazon are recorded as a lease incentive asset and are amortized against revenues over the duration of the aircraft leases . the warrants are accounted for as financial instruments , and accordingly , the fair value of the outstanding warrants are measured and classified in liabilities at the end of each reporting period . as of december 31 , 2018 , our liabilities reflected 14.83 million outstanding warrants having a fair value of $ 13.76 per share . during 2018 , the re-measurements of the warrants to fair value resulted in a non-operating gain of $ 7.4 million before the effect of income taxes compared to a $ 81.8 million loss for the year ended december 31 , 2017. the dod comprised 15 % , 10 % and 14 % of the company 's consolidated revenues excluding directly reimbursed revenues during the years ended december 31 , 2018 , 2017 and 2016 , respectively . the company 's airlines provide passenger airlift services to the u.s. dod as participants in the craf program . due to the acquisition of oai , we expect the dod to comprise 35 % of our 2019 consolidated revenues . results of operations aircraft fleet summary our fleet of cargo and passenger aircraft is summarized in the following table as of december 31 , 2018 , 2017 and 2016. our cam-owned operating aircraft fleet has increased by 29 aircraft since the end of 2016 , driven by customer demand for the boeing 767-300 converted freighter as well as the purchase of 11 passenger aircraft operated by oai . our freighters , converted from passenger aircraft , utilize standard shipping containers and can be deployed into regional cargo markets more economically than larger capacity aircraft , newly built freighters or other competing alternatives . at december 31 , 2018 , the company owned five boeing 767-300 aircraft that were either already undergoing , or awaiting induction into the freighter conversion process . aircraft fleet activity during 2018 is summarized below : - cam completed the modification of nine boeing 767-300 freighter aircraft , six purchased in the previous year and three purchased in 2018. cam began to lease seven of those aircraft under multi-year leases to external customers . cam began to lease the other two aircraft to ati . story_separator_special_tag the pre-tax earnings from mro services decreased by $ 5.2 million to $ 14.5 million in 2018. the decline in mro services profitability reflects a mix of more lower margin maintenance services revenues and longer completion times . other activities we provide other support services to our acmi services customers and other airlines by leveraging our knowledge and capabilities developed for our own operations over the years . through september 30 , 2018 , we provided mail and package sorting and logistical support to the u.s. postal service ( โ usps โ ) at five usps facilities . we arrange and perform similar services for certain asi gateway locations in the u.s. we provide maintenance for ground equipment , facilities and material handling equipment . we also resell aviation fuel in ohio and provide flight training . external customer revenues from all other activities , excluding directly reimbursed revenues , decreased $ 3.1 million in 2018 compared to 2017. declines in usps revenue during 2018 were offset partially by additional ground support services provided to asi . during june of 2018 , we began to provide cargo handling and related ground support services directly to asi at one of its gateway locations . 31 the pre-tax earnings from other activities increased by $ 3.5 million to $ 9.1 million in 2018. additional earnings were a result of additional asi services and improved results from an airline affiliate accounted for under the equity method . expenses from continuing operations salaries , wages and benefits expense increased $ 24.4 million during 2018 compared to 2017 driven by higher headcount for flight operations , maintenance services and package sorting services . the increase in expense for 2018 included $ 13.4 million for omni , acquired in november 2018. the increase during 2018 also included higher flight crew wages in conjunction with an amendment to the collective bargaining agreement with the ati crewmembers , additional employees and additional aircraft maintenance technician time to support increased block hours and increased mro services revenues . depreciation and amortization expense increased $ 24.3 million during 2018 compared to 2017. the increase in depreciation expense included $ 8.7 million for omni assets acquired in november 2018. the increase also reflects incremental depreciation for 15 boeing 767-300 aircraft and additional aircraft engines added to the operating fleet since mid-2017 , as well as capitalized heavy maintenance and navigation technology upgrades . we expect depreciation expense to increase during future periods in conjunction with our fleet expansion and capital spending plans . maintenance , materials and repairs expense increased by $ 5.1 million during 2018 compared to 2017. the increase in expense for 2018 included $ 2.8 million for omni , acquired in november 2018. the remainder of the increase was due primarily to mro services for external customers . during 2018 , mro services had an increased level of customer revenues and direct expenses compared to 2017. aircraft maintenance and material expenses can vary among periods due to the number of maintenance events and the scope of airframe checks that are performed . fuel expense decreased by $ 110.3 million during 2018 compared to 2017. in 2017 , fuel expense included reimbursable fuel billed to dhl , asi and other acmi customers which is being netted against the revenue in 2018 after the adoption of topic 606. the customer-reimbursed fuel for 2017 was $ 133.5 million . fuel expense includes the cost of fuel to operate dod charters as well as fuel used to position aircraft for service and for maintenance purposes . fuel expense , excluding customer-reimbursed fuel , increased $ 23.2 million for 2018 compared to 2017. the increase for 2018 included $ 13.8 million for omni . the remainder of the increase was due to more block hours flown for military customers in 2018. contracted ground and aviation services expense includes navigational services , aircraft and cargo handling services , baggage handling services and other airport services . contracted ground and aviation services decreased $ 130.5 million during 2018 compared to 2017. the decrease is primarily due to the netting of reimbursable revenues from certain ground services arranged for asi against the expense in 2018 due to the adoption of topic 606. the customer-reimbursed expenses in 2017 were $ 138.4 million . without these customer-reimbursed expenses , contracted ground and aviation services increased $ 7.9 million during 2018 compared to 2017. this increase included $ 5.8 million for omni . travel expense increased by $ 7.1 million during 2018 compared to 2017. the increase for 2018 included $ 6.3 million for omni . landing and ramp expense , which includes the cost of deicing chemicals , decreased by $ 16.3 million during 2018 compared to 2017. the decrease is primarily due to the netting of reimbursable revenues from landing and ramp fees billed to dhl , asi and other acmi customers against expense in 2018 due to the adoption of topic 606. rent expense increased by $ 0.3 million during 2018 compared to 2017. this increase included $ 1.1 million for omni . this increase was partially offset by decreases in building rent after the expiration of the contracts for the five usps facilities . insurance expense increased by $ 1.3 million during 2018 compared to 2017. aircraft fleet insurance has increased due to additional aircraft operations during 2018 compared to 2017. other operating expenses increased by $ 1.8 million during 2018 compared to 2017. other operating expenses include professional fees , employee training and utilities . the increase for 2018 included $ 4.0 million for omni . other operating expenses during 2018 were partially offset by improved operating results of an airline affiliate accounted for under the equity method . 32 interest expense increased by $ 11.8 million during 2018 compared to 2017. interest expense increased due to a higher average debt level , including an additional term loan under the senior credit agreement of $ 675.0 million to finance the acquisition of omni and
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