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the joint venture , in turn , used the proceeds received from change healthcare inc. to repay $ 805.0 million of its indebtedness under the term loan facility ( as defined herein ) without penalty in july 2019. in march 2020 , mckesson completed a split-off of its interest in the joint venture ( “qualified mckesson exit” ) through an exchange offer of its common stock for shares of pf2 spinco , inc , a delaware corporation and wholly owned subsidiary of mckesson ( “spinco” ) . on march 10 , 2020 ( the “merger effective date” ) , pursuant to the agreement and plan of merger , dated december 20 , 2016 ( the “merger agreement” ) , by and among change healthcare inc. , mckesson and spinco , change healthcare inc. combined with spinco in a two-step all-stock “reverse morris trust” transaction that involved ( i ) a separation of spinco from mckesson pursuant to the separation and distribution agreement , dated february 10 , 2020 ( the “separation agreement” ) , followed by ( ii ) the merger of spinco with and into change healthcare inc. , with change healthcare inc. as the surviving company ( such merger , together with the other transactions contemplated by the merger agreement , the “merger” ) . the merger was consummated pursuant to the merger agreement and the separation agreement . as a result , the joint venture became a wholly owned subsidiary of change healthcare inc. pursuant to the merger agreement , mckesson accepted 15,426,537 shares of its own common stock , par value $ 0.01 in exchange for all 175,995,192 issued and outstanding shares of spinco common stock , par value $ 0.001 per share ( the “spinco common stock” ) . all shares of spinco common stock were then converted into an equal number of shares of common stock of change healthcare inc. , par value $ 0.001 , which change healthcare inc. issued to the former holders of spinco common stock , together with cash in lieu of any fractional shares . 75 subsequent to the merger , mckesson no longer holds any equity or voting interest in the joint venture . factors affecting results of operations qualified mckesson exit through the merger , change healthcare inc. acquired the interest in the joint venture that it did not own prior to the transaction . as a result , for the period from march 10 , 2020 to march 31 , 2020 , change healthcare llc was a wholly-owned subsidiary of change healthcare inc. and consolidated the financial position and results of change healthcare llc in its financial statements as of and for the year ended march 31 , 2020. change healthcare inc. accounted for the qualified mckesson exit and related transactions as a business combination achieved in stages in accordance with financial accounting standards board ( “fasb” ) accounting standards codification ( “asc” ) 805 , business combinations , resulting in a new basis of accounting . as a result , change healthcare inc. remeasured its investment in the joint venture to fair value as of the date control was obtained and recognized a loss in its statement of operations for the difference in the carrying value and fair value of this investment of approximately $ 230.2 million . further , change healthcare inc. recognized the consideration transferred , as well as the acquired business 's identifiable assets , liabilities and noncontrolling interests at their acquisition date fair value . the excess of the consideration transferred over the fair value of the identifiable assets , liabilities and noncontrolling interest , was recorded as goodwill . as a result of the accounting for these transactions and the change in basis of accounting , the consolidated results of change healthcare inc. in periods following the merger will not be comparable to the consolidated results of the joint venture in periods prior to the merger . the following are certain of the more significant changes resulting from the qualified mckesson exit that will affect the comparability of financial results and operations : increased tangible and intangible assets resulting from adjusting the basis of the assets to their fair value , which will also result in increased depreciation and amortization expense . decrease in long-term debt as a result of adjustments to state the long-term debt at its fair value . decreased deferred revenue as a result of recognizing deferred revenue only to the extent that contractual obligations remain to be fulfilled . these decreases will result in decreased solutions revenue in the near term . income currently attributable to the joint venture and not subject to u.s. federal income taxes and most state and local income taxes will become subject to such taxes , resulting in an increase in change healthcare inc. 's effective tax rate compared with the historical effective tax rate of the joint venture . see note 2 , business combinations for additional information . macroeconomic and industry trends the spread of covid-19 both globally and in the u.s. has driven lower healthcare utilization as a result of the significant reduction in , or in some cases elimination of , elective medical procedures and healthcare visits , without a corresponding increase in covid-19 related transactions . a portion of change healthcare inc. 's business is tied to overall volumes of activity in the healthcare system , and therefore has been adversely impacted by this industry trend . further , weakened economic conditions or a recession could reduce the amounts patients are willing or able to spend on healthcare services . as a result , patients may elect to delay or forgo seeking healthcare services and recent increases in unemployment rates is likely to cause commercial payer membership to decline , which could further reduce healthcare utilization and transaction volumes . story_separator_special_tag see note 11 , long-term debt . ( 3 ) consists of interest payable under the senior credit facilities and senior notes . interest related to the senior credit facilities is based on change healthcare inc. 's interest rates in effect as of march 31 , 2020 and assumes that payments are made in quarterly installments of 1 % of the original principal amount until their maturity . because the interest rates under the senior credit facilities are variable , actual payments may differ . ( 4 ) represents expected amounts due without reduction for any fair value adjustments recognized in prior acquisition method accounting . see note 17 , tax receivable agreements . ( 5 ) represents expected amounts due ; however , the timing and or amount of aggregate payments may vary based on a number of factors , including differences in the expected and actual utilization of prior net operating losses and changes in the tax rate then applicable , whether due to statutory changes or changes in apportionment . see note 17 , tax receivable agreements . 81 ( 6 ) represents expected amounts due ; however , the timing and or amount of aggregate payments may vary based on a number of factors . see note 17 , tax receivable agreements . ( 7 ) represents amounts due under existing operating leases related to change healthcare inc. 's offices and other facilities . see note 19 , commitments . ( 8 ) contingent consideration transferred in connection with acquisitions includes a contingent obligation to make additional payments based on the achievement of certain future performance objectives . because the ultimate timing and amount of payments are dependent on the outcome of future events , the timing and or amount of these additional payments may vary from this estimate . see note 19 , commitments . ( 9 ) represents contractual obligations , including the wipro agreement . see note 19 , commitments . critical accounting estimates the preparation of financial statements in accordance with gaap requires change healthcare inc. to make estimates and assumptions that affect reported amounts and related disclosures . change healthcare inc. considers an accounting estimate to be critical if : it requires assumptions to be made that were uncertain at the time the estimate was made ; and changes in the estimate or different estimates that could have been made could have a material impact on change healthcare inc. 's results of operations and financial condition . see note 3 , significant accounting policies , as well as the critical accounting estimates section for change healthcare llc , for information about other critical accounting policies . equity method investment in the joint venture as disclosed in note 3 , significant accounting policies , change healthcare inc. evaluated its equity method investment for impairment review whenever an event or change in circumstances occurs that may have a significant adverse impact on the carrying value of the investment . if a loss in value occurs that is deemed to be an other-than-temporary impairment ( “otti” ) , an impairment loss would be recognized . subsequent to its initial public offering , change healthcare inc. had a publicly available indication of the value of its investment in the joint venture . change healthcare inc. considered various factors in determining whether an otti had occurred , including change healthcare inc. 's ability and intent to hold the investment , the trading history available , the implied ebitda valuation multiples compared to public guideline companies , the joint venture 's ability to achieve milestones and any operational and strategic changes by the joint venture that might have negatively impacted the fair value . in the periods prior to the merger , change healthcare inc. determined that an otti had not occurred . goodwill goodwill from change healthcare inc. 's acquisitions is accounted for using the acquisition method of accounting . change healthcare inc. assesses its goodwill for impairment annually ( as of january 1 of each year ) or whenever significant indicators of impairment are present . change healthcare inc. first assesses whether it can reach a more likely than not conclusion that goodwill is not impaired via qualitative analysis alone . to the extent such a conclusion can not be reached based solely on a qualitative assessment , change healthcare inc. , using the assistance of a valuation specialist as appropriate , compares the fair value of each reporting unit to its associated carrying value . change healthcare inc. will generally recognize an impairment charge for the amount , if any , by which the carrying amount of the reporting unit exceeds its fair value . when necessary , change healthcare inc. estimates the fair value of its reporting units using a methodology that considers both income and market approaches . each approach requires the use of certain assumptions . the income approach requires management to exercise judgment in making assumptions regarding the reporting 82 unit 's future income stream , a discount rate and a constant rate of growth after the initial forecast period utilized . these assumptions are subject to change based on business and economic conditions and could materially affect the indicated values of the joint venture 's reporting units . the market approach requires management to exercise judgment in its selection of guideline companies , as well in its selection of the most relevant transaction multiple . guideline companies selected are comparable to change healthcare inc. in terms of product or service offerings , markets and or customers , among other characteristics . see note 9 , goodwill and intangible assets , for further discussion . change healthcare inc. believes the current assumptions and other considerations used to estimate amounts reflected in its financial statements are appropriate . however , if actual experience differs from the assumptions and other considerations used in estimating amounts reflected in change 's financial statements , the resulting changes could have a material adverse effect on

loss on extinguishment of debt loss on extinguishment of debt for the year ended march 31 , 2020 of $ 20.0 million is related to the write-off of unamortized discounts and debt issuance costs associated with debt repayments . other , net other , net primarily represents income the joint venture receives from mckesson and erx network related to transitional and other services that the joint venture provides them following the closing of the transactions in march 2017. income tax provision ( benefit ) the income tax benefit was $ 1.7 million ( effective tax rate of ( 43.5 ) % ) for the year ended march 31 , 2020 as compared to an income tax benefit of $ 4.5 million ( effective tax rate of ( 2.6 ) % ) for the year ended march 31 , 2019. the joint venture 's income taxes and related effective tax rate are routinely affected by it and its subsidiaries ' legal organization . certain of the joint venture 's subsidiaries are organized as limited liability corporations and report income that is distributed to the members where it is subject to income taxes . other subsidiaries are organized as corporations , for which the tax effects are directly reflected in the joint venture 's financial statements . 90 solutions revenue and adjusted ebitda replace_table_token_10_th ( 1 ) as a result of displaying amounts in millions , rounding differences may exist in the table above . ( 2 ) includes intersegment revenues . software and analytics software and analytics revenue increased $ 36.2 million for the year ended march 31 , 2020 as compared with the prior year .

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 loss on extinguishment of debt for the year ended march 31 , 2020 of $ 20.0 million is related to the write-off of unamortized discounts and debt issuance costs associated with debt repayments . other , net other , net primarily represents income the joint venture receives from mckesson and erx network related to transitional and other services that the joint venture provides them following the closing of the transactions in march 2017. income tax provision ( benefit ) the income tax benefit was $ 1.7 million ( effective tax rate of ( 43.5 ) % ) for the year ended march 31 , 2020 as compared to an income tax benefit of $ 4.5 million ( effective tax rate of ( 2.6 ) % ) for the year ended march 31 , 2019. the joint venture 's income taxes and related effective tax rate are routinely affected by it and its subsidiaries ' legal organization . certain of the joint venture 's subsidiaries are organized as limited liability corporations and report income that is distributed to the members where it is subject to income taxes . other subsidiaries are organized as corporations , for which the tax effects are directly reflected in the joint venture 's financial statements . 90 solutions revenue and adjusted ebitda replace_table_token_10_th ( 1 ) as a result of displaying amounts in millions , rounding differences may exist in the table above . ( 2 ) includes intersegment revenues . software and analytics software and analytics revenue increased $ 36.2 million for the year ended march 31 , 2020 as compared with the prior year . ``` Suspicious Activity Report : the joint venture , in turn , used the proceeds received from change healthcare inc. to repay $ 805.0 million of its indebtedness under the term loan facility ( as defined herein ) without penalty in july 2019. in march 2020 , mckesson completed a split-off of its interest in the joint venture ( “qualified mckesson exit” ) through an exchange offer of its common stock for shares of pf2 spinco , inc , a delaware corporation and wholly owned subsidiary of mckesson ( “spinco” ) . on march 10 , 2020 ( the “merger effective date” ) , pursuant to the agreement and plan of merger , dated december 20 , 2016 ( the “merger agreement” ) , by and among change healthcare inc. , mckesson and spinco , change healthcare inc. combined with spinco in a two-step all-stock “reverse morris trust” transaction that involved ( i ) a separation of spinco from mckesson pursuant to the separation and distribution agreement , dated february 10 , 2020 ( the “separation agreement” ) , followed by ( ii ) the merger of spinco with and into change healthcare inc. , with change healthcare inc. as the surviving company ( such merger , together with the other transactions contemplated by the merger agreement , the “merger” ) . the merger was consummated pursuant to the merger agreement and the separation agreement . as a result , the joint venture became a wholly owned subsidiary of change healthcare inc. pursuant to the merger agreement , mckesson accepted 15,426,537 shares of its own common stock , par value $ 0.01 in exchange for all 175,995,192 issued and outstanding shares of spinco common stock , par value $ 0.001 per share ( the “spinco common stock” ) . all shares of spinco common stock were then converted into an equal number of shares of common stock of change healthcare inc. , par value $ 0.001 , which change healthcare inc. issued to the former holders of spinco common stock , together with cash in lieu of any fractional shares . 75 subsequent to the merger , mckesson no longer holds any equity or voting interest in the joint venture . factors affecting results of operations qualified mckesson exit through the merger , change healthcare inc. acquired the interest in the joint venture that it did not own prior to the transaction . as a result , for the period from march 10 , 2020 to march 31 , 2020 , change healthcare llc was a wholly-owned subsidiary of change healthcare inc. and consolidated the financial position and results of change healthcare llc in its financial statements as of and for the year ended march 31 , 2020. change healthcare inc. accounted for the qualified mckesson exit and related transactions as a business combination achieved in stages in accordance with financial accounting standards board ( “fasb” ) accounting standards codification ( “asc” ) 805 , business combinations , resulting in a new basis of accounting . as a result , change healthcare inc. remeasured its investment in the joint venture to fair value as of the date control was obtained and recognized a loss in its statement of operations for the difference in the carrying value and fair value of this investment of approximately $ 230.2 million . further , change healthcare inc. recognized the consideration transferred , as well as the acquired business 's identifiable assets , liabilities and noncontrolling interests at their acquisition date fair value . the excess of the consideration transferred over the fair value of the identifiable assets , liabilities and noncontrolling interest , was recorded as goodwill . as a result of the accounting for these transactions and the change in basis of accounting , the consolidated results of change healthcare inc. in periods following the merger will not be comparable to the consolidated results of the joint venture in periods prior to the merger . the following are certain of the more significant changes resulting from the qualified mckesson exit that will affect the comparability of financial results and operations : increased tangible and intangible assets resulting from adjusting the basis of the assets to their fair value , which will also result in increased depreciation and amortization expense . decrease in long-term debt as a result of adjustments to state the long-term debt at its fair value . decreased deferred revenue as a result of recognizing deferred revenue only to the extent that contractual obligations remain to be fulfilled . these decreases will result in decreased solutions revenue in the near term . income currently attributable to the joint venture and not subject to u.s. federal income taxes and most state and local income taxes will become subject to such taxes , resulting in an increase in change healthcare inc. 's effective tax rate compared with the historical effective tax rate of the joint venture . see note 2 , business combinations for additional information . macroeconomic and industry trends the spread of covid-19 both globally and in the u.s. has driven lower healthcare utilization as a result of the significant reduction in , or in some cases elimination of , elective medical procedures and healthcare visits , without a corresponding increase in covid-19 related transactions . a portion of change healthcare inc. 's business is tied to overall volumes of activity in the healthcare system , and therefore has been adversely impacted by this industry trend . further , weakened economic conditions or a recession could reduce the amounts patients are willing or able to spend on healthcare services . as a result , patients may elect to delay or forgo seeking healthcare services and recent increases in unemployment rates is likely to cause commercial payer membership to decline , which could further reduce healthcare utilization and transaction volumes . story_separator_special_tag see note 11 , long-term debt . ( 3 ) consists of interest payable under the senior credit facilities and senior notes . interest related to the senior credit facilities is based on change healthcare inc. 's interest rates in effect as of march 31 , 2020 and assumes that payments are made in quarterly installments of 1 % of the original principal amount until their maturity . because the interest rates under the senior credit facilities are variable , actual payments may differ . ( 4 ) represents expected amounts due without reduction for any fair value adjustments recognized in prior acquisition method accounting . see note 17 , tax receivable agreements . ( 5 ) represents expected amounts due ; however , the timing and or amount of aggregate payments may vary based on a number of factors , including differences in the expected and actual utilization of prior net operating losses and changes in the tax rate then applicable , whether due to statutory changes or changes in apportionment . see note 17 , tax receivable agreements . 81 ( 6 ) represents expected amounts due ; however , the timing and or amount of aggregate payments may vary based on a number of factors . see note 17 , tax receivable agreements . ( 7 ) represents amounts due under existing operating leases related to change healthcare inc. 's offices and other facilities . see note 19 , commitments . ( 8 ) contingent consideration transferred in connection with acquisitions includes a contingent obligation to make additional payments based on the achievement of certain future performance objectives . because the ultimate timing and amount of payments are dependent on the outcome of future events , the timing and or amount of these additional payments may vary from this estimate . see note 19 , commitments . ( 9 ) represents contractual obligations , including the wipro agreement . see note 19 , commitments . critical accounting estimates the preparation of financial statements in accordance with gaap requires change healthcare inc. to make estimates and assumptions that affect reported amounts and related disclosures . change healthcare inc. considers an accounting estimate to be critical if : it requires assumptions to be made that were uncertain at the time the estimate was made ; and changes in the estimate or different estimates that could have been made could have a material impact on change healthcare inc. 's results of operations and financial condition . see note 3 , significant accounting policies , as well as the critical accounting estimates section for change healthcare llc , for information about other critical accounting policies . equity method investment in the joint venture as disclosed in note 3 , significant accounting policies , change healthcare inc. evaluated its equity method investment for impairment review whenever an event or change in circumstances occurs that may have a significant adverse impact on the carrying value of the investment . if a loss in value occurs that is deemed to be an other-than-temporary impairment ( “otti” ) , an impairment loss would be recognized . subsequent to its initial public offering , change healthcare inc. had a publicly available indication of the value of its investment in the joint venture . change healthcare inc. considered various factors in determining whether an otti had occurred , including change healthcare inc. 's ability and intent to hold the investment , the trading history available , the implied ebitda valuation multiples compared to public guideline companies , the joint venture 's ability to achieve milestones and any operational and strategic changes by the joint venture that might have negatively impacted the fair value . in the periods prior to the merger , change healthcare inc. determined that an otti had not occurred . goodwill goodwill from change healthcare inc. 's acquisitions is accounted for using the acquisition method of accounting . change healthcare inc. assesses its goodwill for impairment annually ( as of january 1 of each year ) or whenever significant indicators of impairment are present . change healthcare inc. first assesses whether it can reach a more likely than not conclusion that goodwill is not impaired via qualitative analysis alone . to the extent such a conclusion can not be reached based solely on a qualitative assessment , change healthcare inc. , using the assistance of a valuation specialist as appropriate , compares the fair value of each reporting unit to its associated carrying value . change healthcare inc. will generally recognize an impairment charge for the amount , if any , by which the carrying amount of the reporting unit exceeds its fair value . when necessary , change healthcare inc. estimates the fair value of its reporting units using a methodology that considers both income and market approaches . each approach requires the use of certain assumptions . the income approach requires management to exercise judgment in making assumptions regarding the reporting 82 unit 's future income stream , a discount rate and a constant rate of growth after the initial forecast period utilized . these assumptions are subject to change based on business and economic conditions and could materially affect the indicated values of the joint venture 's reporting units . the market approach requires management to exercise judgment in its selection of guideline companies , as well in its selection of the most relevant transaction multiple . guideline companies selected are comparable to change healthcare inc. in terms of product or service offerings , markets and or customers , among other characteristics . see note 9 , goodwill and intangible assets , for further discussion . change healthcare inc. believes the current assumptions and other considerations used to estimate amounts reflected in its financial statements are appropriate . however , if actual experience differs from the assumptions and other considerations used in estimating amounts reflected in change 's financial statements , the resulting changes could have a material adverse effect on

strategic acquisitions acquisition of decision resources group on february 28 , 2020 , we acquired 100 % of the assets , liabilities and equity interests of decision resources group ( `` drg `` ) , a premier provider of high-value data , analytics and insights products and services to the healthcare industry , from piramal enterprises limited ( `` pel `` ) , which is a part of global business conglomerate piramal group . the acquisition helps us expand our core businesses and provides us with the potential to grow in the life sciences product line . the aggregate consideration paid in connection with the closing of the drg acquisition was $ 964,997 , composed of $ 900,000 of base cash plus $ 6,100 of adjusted closing cash paid on the closing date and up to 2,895,638 of the company 's ordinary shares to be issued to pel following the one-year anniversary of closing . the contingent stock consideration was valued at $ 58,897 on the closing date and will be revalued at each period end and included in the accrued expenses and other current liabilities in the consolidated balance sheets . 36 acquisition of cpa global on october 1 , 2020 , we acquired 100 % of the assets , liabilities and equity interests of cpa global , a global leader in intellectual property software and tech-enabled services . clarivate acquired all of the outstanding shares of cpa global in a cash and stock transaction . the aggregate consideration in connection with the closing of the cpa global acquisition was $ 8,740,989 , net of $ 98,610 cash acquired , including an equity hold-back consideration of $ 46,485. the aggregate consideration was composed of ( i ) $ 6,761,515 from the issuance of up to 218,183,778 ordinary shares to redtop holdings limited , a portfolio company of leonard green & partners , l.p. , representing approximately 35 % pro forma fully diluted ownership of clarivate and ( ii ) approximately $ 2,078,084 in cash to fund the repayment of cpa global 's parent company outstanding debt of $ 2,055,822 and related interest swap termination fee of $ 22,262. of the 218,306,663 ordinary shares issuable in the acquisition , clarivate issued 216,683,778 ordinary shares on october 1 , 2020. in conjunction with the closing of the transaction , the company incurred an incremental $ 1,600,000 of term loans under our term loan facility and used the net proceeds from such borrowings , together with cash on hand , to fund the transaction . as a result of the additional term loan and the additional term loan associated with the drg acquisition , we had $ 2,847,400 outstanding on our term loan facility at december 31 , 2020. acquisition of beijing incopat technology co , ltd. on october 26 , 2020 , we acquired 100 % of the assets , liabilities and equity interests of beijing incopat technology co. , ltd. ( “ incopat ” ) , a leading patent information service provider in china via cash on hand for $ 52,133. incopat is complementary to clarivate 's intellectual property portfolio . acquisition of hanlim ips . co. , ltd. on november 23 , 2020 , we acquired 100 % of the assets , liabilities and equity interests of hanlim ips . co. , ltd. ( `` hanlim `` ) , a leading patent renewal and information service provider in south korea via cash on hand for $ 9,254. hanlim is complementary to clarivate 's intellectual property portfolio . dispositions markmonitor brand protection , antipiracy and antifraud disposition in november 2019 , we entered into an agreement with an unrelated third-party for the sale of certain assets and liabilities of our markmonitor product line within the ip group . the divestment closed in january 2020 for a consideration of approximately $ 3,751. an impairment charge of $ 18,431 was recognized in the statement of operations during the fourth quarter of 2019 to reduce the assets held for sale to their fair value . accordingly , we recorded an immaterial loss on the divestiture during the year ended december 31 , 2020. disposition of techstreet on november 6 , 2020 , the company completed the sale of certain assets and liabilities of certain non-core assets and liabilities within the ip segment for a total purchase price of $ 42,832. a gain of $ 28,140 was recognized in the consolidated statements of operations within other operating income , net during the year ended december 31 , 2020. public ordinary share offerings during 2020 , the company completed two underwritten public offerings of ordinary shares and used the proceeds it received to fund , in part , the acquisitions of the drg and cpa global businesses . february 2020 ordinary share offering in february 2020 , we completed an underwritten public offering of 27,600,000 of our ordinary shares , generating proceeds of $ 540,736 , which we used to fund a portion of the cash consideration for the drg acquisition . in addition , we incurred an incremental $ 360,000 of term loans under our term loan facility and used the net proceeds from such borrowings , together with cash on hand , to fund the remainder of the cash consideration for the drg acquisition and to pay related fees and expenses . 37 june 2020 ordinary share offering in june 2020 , we completed an underwritten public offering of 50,400,000 of our ordinary shares ( including 2,400,000 ordinary shares pursuant to the underwriters ' option to purchase up to an additional 7,200,000 ordinary shares from certain selling shareholders ) at a share price of $ 22.50. of the 50,400,000 ordinary shares , 14,000,000 ordinary shares were offered by clarivate and 36,400,000 ordinary shares were offered by selling shareholders , including 20,821,765 ordinary shares from onex , 8,097,354 ordinary shares from baring and 7,480,881 ordinary shares from directors , executive officers and other shareholders . story_separator_special_tag also included within these costs are : 1 ) transaction expenses including costs incurred to complete business combination transactions , including acquisitions , dispositions and capital market activities and include advisory , legal , and other professional and consulting costs ; and 2 ) transition , integration and other related expenses , including transformation expenses , mainly reflect the costs of transitioning certain activities performed under the transition services agreement by thomson reuters and certain consulting costs related to standing up our back-office systems to enable our operation on a stand-alone basis . depreciation depreciation expense relates to our fixed assets , including mainly computer hardware and leasehold improvements , furniture and fixtures . these assets are depreciated over their expected useful lives , and in the case of leasehold improvements over the shorter of their useful life or the duration of the related lease . 42 amortization amortization expense relates to our finite-lived intangible assets , including mainly databases and content , customer relationships , internally generated computer software and trade names . these assets are amortized over periods of between two and twenty three years . definite-lived intangible assets are tested for impairment when indicators are present , and , if impaired , are written down to fair value based on discounted cash flows . impairment on assets held for sale impairment on assets held for sale represents an impairment charge recorded for certain assets classified as assets held for sale . restructuring and impairment restructuring and impairment expense includes costs associated with involuntary termination benefits provided to employees under the terms of a one-time benefit arrangement , certain contract termination costs , and other costs associated with an exit or disposal activity . other operating income , net other operating income , net consists of gains or losses related to the disposal of our assets , asset impairments or write-downs and the consolidated impact of re-measurement of the assets and liabilities of our company , sublease income , gain recognized on foreign exchange contract settlement and our subsidiaries that are denominated in currencies other than each relevant entity 's functional currency . legal settlement legal settlement represents a net gain recorded for cash received in relation to closure of a confidential legal matter . interest expense and amortization of debt discount , net interest expense , net consists of expense related to interest on our borrowings under our term loan facility and our secured notes due 2026 , the amortization and write off of debt issuance costs and original discount , and interest related to certain derivative instruments . provision for income taxes a provision for income tax is calculated for each of the jurisdictions in which we operate . the benefit or provision for income taxes is determined using the asset and liability approach of accounting for income taxes . under this approach , deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid . the benefit or provision for income taxes represents income taxes paid or payable for the current year plus the change in deferred taxes during the year . deferred taxes result from differences between the book and tax bases of assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted . valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized . interest accrued related to unrecognized tax benefits and income tax related penalties are included in the provision for income taxes . 43 results of operations the following table presents the results of operations for the years ended december 31 , 2020 , 2019 and 2018 : replace_table_token_6_th 44 revenues , net total revenue revenues , net of $ 1,254,047 in 2020 increased by $ 279,702 , or 28.7 % , from $ 974,345 in 2019. on a constant currency basis , revenues , net increased by $ 276,176 , or 28.3 % . adjusted revenues of $ 1,277,148 , which excludes the impact of the deferred revenues adjustment , in 2020 increased by $ 302,365 , or 31.0 % , from $ 974,783 in 2019. on a constant currency basis , adjusted revenues increased by $ 298,839 , or 30.7 % . revenues , net of $ 974,345 in 2019 increased by $ 5,877 , or 0.6 % , from $ 968,468 in 2018. on a constant currency basis , revenues , net increased by $ 11,806 , or 1.2 % . adjusted revenues of $ 951,170 , which excludes the impact of the deferred revenues adjustment , in 2019 increased by $ 23,613 , or 2.5 % , from $ 951,170 in 2018. on a constant currency basis , adjusted revenues increased by $ 29,542 , or 3.1 % . the comparability of our revenues , net between periods was impacted by several factors described under “ factors affecting the comparability of our results of operations ” above . the tables below presents the items that impacted the change in our revenues , net between periods . replace_table_token_7_th replace_table_token_8_th revenues , net from our ongoing business improved for both our segments , led by science , reflecting a trend consistent with the increase in our acv between periods , mainly due to product price increases and new business . the evolution of our recurring business is discussed further below . 45 revenue by transaction type the following tables present the amounts of our subscription , transactional and re-occurring revenues for the periods indicated . replace_table_token_9_th ( 1 ) reflects the deferred revenues adjustment made as a result of purchase accounting subscription revenues of $ 867,731 in 2020 increased by $ 62,213 , or 7.7 % from $ 805,518 in 2019. on a constant currency basis , subscription revenues increased by $ 59,411 , or 7.4 % . acquisitive subscription growth was generated from the darts-ip

cash flows the following table discloses our consolidated cash flows provided by ( used in ) operating , investing and financing activities for the periods presented : replace_table_token_17_th cash flows provided by ( used in ) operating activities net cash provided by operating activities consists of net loss adjusted for non-cash items , such as : depreciation and amortization of property and equipment and intangible assets , deferred income taxes , share-based compensation , deferred finance charges and for changes in net working capital assets and liabilities . net cash provided by operating activities was $ 263,500 for the year ended december 31 , 2020 compared to net cash provided by operating activities of $ 117,580 for the year ended december 31 , 2019. the $ 263,500 of net cash provided by operating activities for the year ended december 31 , 2020 includes net loss of $ 106,310 offset with $ 302,573 of non-cash adjustments and changes in operating assets and liabilities of $ 67,237. the increase in operating cash flows was driven by year over year increases in earnings driven by increases in revenue , lower operating expenses and cash provided by acquired businesses related to drg and cpa global in 2020. net cash provided by operating activities was $ 117,580 for the year ended december 31 , 2019 compared to net cash used in operating activities of $ 26,100 for the year ended december 31 , 2018. the $ 117,580 of net cash provided by operating activities for the year ended december 31 , 2019 includes net loss of $ 210,977 offset with $ 324,842 of non-cash adjustments and changes in operating assets and liabilities of $ 3,715. the improvement in operating cash flows was driven by : ( 1 ) continual increase in deferred revenue illustrating an increase in sales year over year ; ( 2 ) lower operating loss , which included the impact of a $ 39,399 gain on legal settlement and ( 3 ) a decrease of $ 47,043 in transition , integration and other related expenses as a result of establishing a standalone company infrastructure .

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 discloses our consolidated cash flows provided by ( used in ) operating , investing and financing activities for the periods presented : replace_table_token_17_th cash flows provided by ( used in ) operating activities net cash provided by operating activities consists of net loss adjusted for non-cash items , such as : depreciation and amortization of property and equipment and intangible assets , deferred income taxes , share-based compensation , deferred finance charges and for changes in net working capital assets and liabilities . net cash provided by operating activities was $ 263,500 for the year ended december 31 , 2020 compared to net cash provided by operating activities of $ 117,580 for the year ended december 31 , 2019. the $ 263,500 of net cash provided by operating activities for the year ended december 31 , 2020 includes net loss of $ 106,310 offset with $ 302,573 of non-cash adjustments and changes in operating assets and liabilities of $ 67,237. the increase in operating cash flows was driven by year over year increases in earnings driven by increases in revenue , lower operating expenses and cash provided by acquired businesses related to drg and cpa global in 2020. net cash provided by operating activities was $ 117,580 for the year ended december 31 , 2019 compared to net cash used in operating activities of $ 26,100 for the year ended december 31 , 2018. the $ 117,580 of net cash provided by operating activities for the year ended december 31 , 2019 includes net loss of $ 210,977 offset with $ 324,842 of non-cash adjustments and changes in operating assets and liabilities of $ 3,715. the improvement in operating cash flows was driven by : ( 1 ) continual increase in deferred revenue illustrating an increase in sales year over year ; ( 2 ) lower operating loss , which included the impact of a $ 39,399 gain on legal settlement and ( 3 ) a decrease of $ 47,043 in transition , integration and other related expenses as a result of establishing a standalone company infrastructure . ``` Suspicious Activity Report : strategic acquisitions acquisition of decision resources group on february 28 , 2020 , we acquired 100 % of the assets , liabilities and equity interests of decision resources group ( `` drg `` ) , a premier provider of high-value data , analytics and insights products and services to the healthcare industry , from piramal enterprises limited ( `` pel `` ) , which is a part of global business conglomerate piramal group . the acquisition helps us expand our core businesses and provides us with the potential to grow in the life sciences product line . the aggregate consideration paid in connection with the closing of the drg acquisition was $ 964,997 , composed of $ 900,000 of base cash plus $ 6,100 of adjusted closing cash paid on the closing date and up to 2,895,638 of the company 's ordinary shares to be issued to pel following the one-year anniversary of closing . the contingent stock consideration was valued at $ 58,897 on the closing date and will be revalued at each period end and included in the accrued expenses and other current liabilities in the consolidated balance sheets . 36 acquisition of cpa global on october 1 , 2020 , we acquired 100 % of the assets , liabilities and equity interests of cpa global , a global leader in intellectual property software and tech-enabled services . clarivate acquired all of the outstanding shares of cpa global in a cash and stock transaction . the aggregate consideration in connection with the closing of the cpa global acquisition was $ 8,740,989 , net of $ 98,610 cash acquired , including an equity hold-back consideration of $ 46,485. the aggregate consideration was composed of ( i ) $ 6,761,515 from the issuance of up to 218,183,778 ordinary shares to redtop holdings limited , a portfolio company of leonard green & partners , l.p. , representing approximately 35 % pro forma fully diluted ownership of clarivate and ( ii ) approximately $ 2,078,084 in cash to fund the repayment of cpa global 's parent company outstanding debt of $ 2,055,822 and related interest swap termination fee of $ 22,262. of the 218,306,663 ordinary shares issuable in the acquisition , clarivate issued 216,683,778 ordinary shares on october 1 , 2020. in conjunction with the closing of the transaction , the company incurred an incremental $ 1,600,000 of term loans under our term loan facility and used the net proceeds from such borrowings , together with cash on hand , to fund the transaction . as a result of the additional term loan and the additional term loan associated with the drg acquisition , we had $ 2,847,400 outstanding on our term loan facility at december 31 , 2020. acquisition of beijing incopat technology co , ltd. on october 26 , 2020 , we acquired 100 % of the assets , liabilities and equity interests of beijing incopat technology co. , ltd. ( “ incopat ” ) , a leading patent information service provider in china via cash on hand for $ 52,133. incopat is complementary to clarivate 's intellectual property portfolio . acquisition of hanlim ips . co. , ltd. on november 23 , 2020 , we acquired 100 % of the assets , liabilities and equity interests of hanlim ips . co. , ltd. ( `` hanlim `` ) , a leading patent renewal and information service provider in south korea via cash on hand for $ 9,254. hanlim is complementary to clarivate 's intellectual property portfolio . dispositions markmonitor brand protection , antipiracy and antifraud disposition in november 2019 , we entered into an agreement with an unrelated third-party for the sale of certain assets and liabilities of our markmonitor product line within the ip group . the divestment closed in january 2020 for a consideration of approximately $ 3,751. an impairment charge of $ 18,431 was recognized in the statement of operations during the fourth quarter of 2019 to reduce the assets held for sale to their fair value . accordingly , we recorded an immaterial loss on the divestiture during the year ended december 31 , 2020. disposition of techstreet on november 6 , 2020 , the company completed the sale of certain assets and liabilities of certain non-core assets and liabilities within the ip segment for a total purchase price of $ 42,832. a gain of $ 28,140 was recognized in the consolidated statements of operations within other operating income , net during the year ended december 31 , 2020. public ordinary share offerings during 2020 , the company completed two underwritten public offerings of ordinary shares and used the proceeds it received to fund , in part , the acquisitions of the drg and cpa global businesses . february 2020 ordinary share offering in february 2020 , we completed an underwritten public offering of 27,600,000 of our ordinary shares , generating proceeds of $ 540,736 , which we used to fund a portion of the cash consideration for the drg acquisition . in addition , we incurred an incremental $ 360,000 of term loans under our term loan facility and used the net proceeds from such borrowings , together with cash on hand , to fund the remainder of the cash consideration for the drg acquisition and to pay related fees and expenses . 37 june 2020 ordinary share offering in june 2020 , we completed an underwritten public offering of 50,400,000 of our ordinary shares ( including 2,400,000 ordinary shares pursuant to the underwriters ' option to purchase up to an additional 7,200,000 ordinary shares from certain selling shareholders ) at a share price of $ 22.50. of the 50,400,000 ordinary shares , 14,000,000 ordinary shares were offered by clarivate and 36,400,000 ordinary shares were offered by selling shareholders , including 20,821,765 ordinary shares from onex , 8,097,354 ordinary shares from baring and 7,480,881 ordinary shares from directors , executive officers and other shareholders . story_separator_special_tag also included within these costs are : 1 ) transaction expenses including costs incurred to complete business combination transactions , including acquisitions , dispositions and capital market activities and include advisory , legal , and other professional and consulting costs ; and 2 ) transition , integration and other related expenses , including transformation expenses , mainly reflect the costs of transitioning certain activities performed under the transition services agreement by thomson reuters and certain consulting costs related to standing up our back-office systems to enable our operation on a stand-alone basis . depreciation depreciation expense relates to our fixed assets , including mainly computer hardware and leasehold improvements , furniture and fixtures . these assets are depreciated over their expected useful lives , and in the case of leasehold improvements over the shorter of their useful life or the duration of the related lease . 42 amortization amortization expense relates to our finite-lived intangible assets , including mainly databases and content , customer relationships , internally generated computer software and trade names . these assets are amortized over periods of between two and twenty three years . definite-lived intangible assets are tested for impairment when indicators are present , and , if impaired , are written down to fair value based on discounted cash flows . impairment on assets held for sale impairment on assets held for sale represents an impairment charge recorded for certain assets classified as assets held for sale . restructuring and impairment restructuring and impairment expense includes costs associated with involuntary termination benefits provided to employees under the terms of a one-time benefit arrangement , certain contract termination costs , and other costs associated with an exit or disposal activity . other operating income , net other operating income , net consists of gains or losses related to the disposal of our assets , asset impairments or write-downs and the consolidated impact of re-measurement of the assets and liabilities of our company , sublease income , gain recognized on foreign exchange contract settlement and our subsidiaries that are denominated in currencies other than each relevant entity 's functional currency . legal settlement legal settlement represents a net gain recorded for cash received in relation to closure of a confidential legal matter . interest expense and amortization of debt discount , net interest expense , net consists of expense related to interest on our borrowings under our term loan facility and our secured notes due 2026 , the amortization and write off of debt issuance costs and original discount , and interest related to certain derivative instruments . provision for income taxes a provision for income tax is calculated for each of the jurisdictions in which we operate . the benefit or provision for income taxes is determined using the asset and liability approach of accounting for income taxes . under this approach , deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid . the benefit or provision for income taxes represents income taxes paid or payable for the current year plus the change in deferred taxes during the year . deferred taxes result from differences between the book and tax bases of assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted . valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized . interest accrued related to unrecognized tax benefits and income tax related penalties are included in the provision for income taxes . 43 results of operations the following table presents the results of operations for the years ended december 31 , 2020 , 2019 and 2018 : replace_table_token_6_th 44 revenues , net total revenue revenues , net of $ 1,254,047 in 2020 increased by $ 279,702 , or 28.7 % , from $ 974,345 in 2019. on a constant currency basis , revenues , net increased by $ 276,176 , or 28.3 % . adjusted revenues of $ 1,277,148 , which excludes the impact of the deferred revenues adjustment , in 2020 increased by $ 302,365 , or 31.0 % , from $ 974,783 in 2019. on a constant currency basis , adjusted revenues increased by $ 298,839 , or 30.7 % . revenues , net of $ 974,345 in 2019 increased by $ 5,877 , or 0.6 % , from $ 968,468 in 2018. on a constant currency basis , revenues , net increased by $ 11,806 , or 1.2 % . adjusted revenues of $ 951,170 , which excludes the impact of the deferred revenues adjustment , in 2019 increased by $ 23,613 , or 2.5 % , from $ 951,170 in 2018. on a constant currency basis , adjusted revenues increased by $ 29,542 , or 3.1 % . the comparability of our revenues , net between periods was impacted by several factors described under “ factors affecting the comparability of our results of operations ” above . the tables below presents the items that impacted the change in our revenues , net between periods . replace_table_token_7_th replace_table_token_8_th revenues , net from our ongoing business improved for both our segments , led by science , reflecting a trend consistent with the increase in our acv between periods , mainly due to product price increases and new business . the evolution of our recurring business is discussed further below . 45 revenue by transaction type the following tables present the amounts of our subscription , transactional and re-occurring revenues for the periods indicated . replace_table_token_9_th ( 1 ) reflects the deferred revenues adjustment made as a result of purchase accounting subscription revenues of $ 867,731 in 2020 increased by $ 62,213 , or 7.7 % from $ 805,518 in 2019. on a constant currency basis , subscription revenues increased by $ 59,411 , or 7.4 % . acquisitive subscription growth was generated from the darts-ip

the resulting spread of covid-19 throughout the globe led the world health organization to designate covid-19 as a pandemic and numerous countries , including the u.s. , to declare national emergencies . many countries have responded to the outbreak by instituting quarantines and restrictions on travel and limiting operations of non-essential offices and retail centers , which has resulted in the closure or remote operation of non-essential businesses and increased rates of unemployment . while certain countries around the world have eased restrictions and financial markets have stabilized to some degree , the pandemic continues to cause uncertainty surrounding its ultimate impact on the global economy , generally , and the cre business in particular . we continue to actively and responsibly manage corporate liquidity and operations in light of the market disruptions caused by covid-19 . additionally , nationwide restrictions placed on most businesses in response to covid-19 are expected to cause significant cash flow disruptions across the economy that will likely impact our borrowers and their ability to stay current with their debt obligations in the near term . we have used and continue to expect to use a variety of legal and structural options to manage that risk effectively , including through forbearance and extension provisions or agreements . it is inherently difficult to accurately assess the impact of covid-19 on our revenues , profitability and financial position due to uncertainty of the severity and duration of the pandemic . in response , in the near-term , we are focused on prudently retaining and managing sufficient liquidity . we , therefore , have not paid distributions on our common shares in 2020. we continuously monitor the effects of covid-19 on our operations and financial position to ensure that we remain responsive and adaptable to the dynamic environment that has been created by the pandemic . for additional discussion with respect to the potential impact of covid-19 on our liquidity and capital resources , see “ liquidity and capital resources . ” historically , we maintained a portfolio of commercial mortgage-backed securities ( “ cmbs ” ) , including senior and subordinated investment grade cmbs , below investment grade cmbs and unrated cmbs , that we primarily financed using short-term repurchase agreements . however , the covid-19 pandemic produced material and previously unforeseeable liquidity shocks to the real estate credit markets that led to the receipt of substantial margin calls , and subsequently some default notices , from our cmbs repurchase agreement counterparties . in april 2020 , we completed the sale of substantially all of our portfolio of cmbs and settlements were reached on all of our remaining cmbs-related obligations , which were paid in full in april 2020. the repayment of all of our cmbs repurchase agreements in april 2020 signifies that we have no further exposure to financings related to cmbs . we realized a loss of $ 180.3 million on the aforementioned disposition of our cmbs portfolio . at december 31 , 2020 , we retained two unencumbered cmbs that previously had fair values below their cost bases with a collective fair value of $ 2.1 million for which we recognized an unrealized loss of $ 6.1 million in our consolidated statements of operations for the year ended december 31 , 2020. our cre loan portfolio , which had a $ 1.5 billion and $ 1.8 billion carrying value at december 31 , 2020 and 2019 , respectively , comprised : first mortgage loans , which we refer to as whole loans . these loans are typically secured by first liens on cre property , including the following property types : office , multifamily , self-storage , retail , hotel , healthcare , student housing , manufactured housing , industrial and mixed-use . at december 31 , 2020 and 2019 , our whole loans had a carrying value of $ 1.5 billion and $ 1.8 billion , respectively , or 98.0 % and 98.3 % , respectively , of the cre loan portfolio . mezzanine debt that is senior to borrower 's equity but is subordinated to other third-party debt . these loans are subordinated cre loans , usually secured by a pledge of the borrower 's equity ownership in the entity that owns the property or by a second lien mortgage on the property . at december 31 , 2020 and 2019 , our mezzanine loans had a carrying value of $ 4.4 million and $ 4.7 million , respectively , or 0.3 % of the cre loan portfolio at each date . preferred equity investments that are subordinate to first mortgage loans and mezzanine debt . these investments may be subject to more credit risk than subordinated debt but provide the potential for higher returns upon a liquidation of the underlying property and are typically structured to provide some credit enhancement differentiating it from the common equity in such investments . at december 31 , 2020 and 2019 , our preferred equity investments had a carrying value of $ 26.0 million and $ 26.1 million , respectively , or 1.7 % and 1.4 % respectively of the cre loan portfolio . we generate our income primarily from the spread between the revenues we receive from our assets and the cost to finance our ownership of those assets , including corporate debt and , to a lesser extent , from hedging interest rate risks . while the cre whole loans included in the cre loan portfolio are entirely composed of floating-rate loans benchmarked to the london interbank offered rate ( “ libor ” ) , asset yields are protected through the use of libor floors and minimum interest periods that typically range from 12 to 18 months at the time of a loan 's origination . in a lower interest rate environment , our libor floors provide asset yield protection when libor falls below an in-place libor floor . story_separator_special_tag the increase of $ 1.4 million for the comparative years ended december 31 , 2020 and 2019 was primarily attributable to amortization expense on terminated interest rate swaps during the year ended december 31 , 2020. in april 2020 , in conjunction with the disposition of our cmbs portfolio financed with short-term repurchase agreements , we terminated all interest rate swap contracts hedging that portfolio . at termination , we realized a loss of $ 11.8 million . during the year ended december 31 , 2020 , we recorded net amortization expense , reported in interest expense on the consolidated statements of operations , of $ 1.3 million related to the terminated interest rate swaps . ( back to index ) 43 ( back to index ) the following table presents the average net yield and average cost of funds for the years ended december 31 , 2020 and 2019 ( dollars in thousands , except amounts in footnotes ) : replace_table_token_3_th ( 1 ) average net yield includes net amortization/accretion and fee income and is computed based on average amortized cost . ( 2 ) includes fee income of approximately $ 6.6 million , $ 54,000 and $ 152,000 recognized on our floating-rate cre whole loans , legacy cre loan and our cre preferred equity investments , respectively , for the year ended december 31 , 2020 and approximately $ 7.8 million , $ 103,000 and $ 162,000 on our floating-rate cre whole loans , legacy cre loans and our cre preferred equity investments , respectively , for the year ended december 31 , 2019 . ( 3 ) includes net accretion income of approximately $ 616,000 and $ 2.7 million for the years ended december 31 , 2020 and 2019 , respectively , on our cmbs securities . ( 4 ) includes amortization expense of approximately $ 7.9 million and $ 8.4 million for the years ended december 31 , 2020 and 2019 , respectively , on our interest-bearing liabilities collateralized by cre whole loans . ( 5 ) includes aggregated amortization expense of approximately $ 3.6 million for the years ended december 31 , 2020 and 2019 on our convertible senior notes . ( 6 ) includes amortization expense of approximately $ 136,000 for the year ended december 31 , 2020 on our senior unsecured notes due 2027 . ( 7 ) includes amortization expense of approximately $ 279,000 for the year ended december 31 , 2019 on our trust certificates - term repurchase facilities . ( 8 ) includes net amortization expense of approximately $ 1.3 million for the year ended december 31 , 2020 and accretion income of $ 91,000 for the year ended december 31 , 2019 on 22 and two terminated interest rate swap agreements , respectively , that were in net loss and gain positions , respectively , at the time of termination . the remaining losses and gains , reported in accumulated other comprehensive ( loss ) income on the consolidated balance sheets , will be accreted over the remaining life of the debt . operating expenses year ended december 31 , 2020 as compared to the year ended december 31 , 2019 the following table sets forth information relating to our operating expenses for the years presented ( dollars in thousands ) : replace_table_token_4_th aggregate operating expenses increased by $ 33.0 million for the comparative years ended december 31 , 2020 and 2019. we attribute the changes to the following : ( back to index ) 44 ( back to index ) management fees . the decrease of $ 2.9 million for the comparative years ended december 31 , 2020 and 2019 was primarily attributable to a decrease in our base management fees during the year ended december 31 , 2020 . our monthly base management fee was equal to 1/12th of the amount of our equity multiplied by 1.50 % in accordance with our prior management agreement . in march 2020 , our equity decreased in connection with the losses incurred on the disposition of our financed cmbs portfolio . additionally , our management fees decreased due to incentive compensation of $ 606,000 that was incurred during the year ended december 31 , 2019. no incentive compensation was payable during the year ended december 31 , 2020 . as of july 31 , 2020 , as part of the amended management agreement , the monthly base management fee was amended to be the greater of 1/12th of the amount of our equity multiplied by 1.50 % or $ 442,000 through july 31 , 2022. equity compensation . the increase of $ 924,000 for the comparative years ended december 31 , 2020 and 2019 was primarily attributable to the acceleration of all unvested stock awards at july 31 , 2020 upon the close of the acres acquisition . real estate operating expense . the increase of $ 298,000 for the comparative years ended december 31 , 2020 and 2019 was attributable to expenses recorded on a real estate owned ( “ reo ” ) property delivered as collateral in a deed in lieu of foreclosure transaction in november 2020. general and administrative . general and administrative expenses increased by $ 3.9 million for the comparative years ended december 31 , 2020 and 2019. the following table summarizes the information relating to our general and administrative expenses for the years presented ( dollars in thousands ) : replace_table_token_5_th the increase in general and administrative expenses for the comparative years ended december 31 , 2020 and 2019 was primarily attributable to ( i ) an increase in professional services in connection with legal fees and advisory fees for services rendered as part of the acres acquisition as well as legal fees incurred in 2020 primarily related to the settlement of our cmbs repurchase agreements and ( ii ) an increase in wages and benefits allocated to us by our manager . the increase in professional services for the comparative periods was offset

corporate debt 4.50 % convertible senior notes and 8.00 % convertible senior notes we issued $ 100.0 million aggregate principal of our 8.00 % convertible senior notes and $ 143.8 million aggregate principal of our 4.50 % convertible senior notes due 2022 ( “ 4.50 % convertible senior notes ” ) in january 2015 and august 2017 , respectively ( together , the “ convertible senior notes ” ) . in conjunction with the issuance of our 4.50 % convertible senior notes , we extinguished $ 78.8 million aggregate principal of our 8.00 % convertible senior notes . in january 2020 , the remaining 8.00 % convertible senior notes were paid off upon maturity . the following table summarizes the convertible senior notes at december 31 , 2020 ( dollars in thousands , except the conversion prices and amounts in the footnotes ) : principal outstanding borrowing rate effective rate ( 1 ) ( 2 ) conversion rate ( 3 ) ( 4 ) conversion price ( 4 ) maturity date 4.50 % convertible senior notes $ 143,750 4.50 % 7.43 % 27.7222 $ 36.06 august 15 , 2022 ( 1 ) includes the amortization of the market discounts and deferred debt issuance costs , if any , for the 4.50 % convertible senior notes recorded in interest expense on the consolidated statements of operations . ( 2 ) during the years ended december 31 , 2020 and 2019 the effective interest rate for the 4.50 % convertible senior notes was 7.43 % . ( 3 ) represents the number of shares of common stock per $ 1,000 principal amount of the 4.50 % convertible senior notes ' principal outstanding , subject to adjustment as provided in the third supplemental indenture ( the “ 4.50 % convertible senior notes indenture ” ) . ( 4 ) the conversion rate and conversion price of the 4.50 % convertible senior notes at december 31 , 2020 are adjusted to reflect quarterly cash dividends in excess of a $ 0.30 dividend threshold , as defined in the 4.50 % convertible senior notes indenture . the 4.50

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. ```corporate debt 4.50 % convertible senior notes and 8.00 % convertible senior notes we issued $ 100.0 million aggregate principal of our 8.00 % convertible senior notes and $ 143.8 million aggregate principal of our 4.50 % convertible senior notes due 2022 ( “ 4.50 % convertible senior notes ” ) in january 2015 and august 2017 , respectively ( together , the “ convertible senior notes ” ) . in conjunction with the issuance of our 4.50 % convertible senior notes , we extinguished $ 78.8 million aggregate principal of our 8.00 % convertible senior notes . in january 2020 , the remaining 8.00 % convertible senior notes were paid off upon maturity . the following table summarizes the convertible senior notes at december 31 , 2020 ( dollars in thousands , except the conversion prices and amounts in the footnotes ) : principal outstanding borrowing rate effective rate ( 1 ) ( 2 ) conversion rate ( 3 ) ( 4 ) conversion price ( 4 ) maturity date 4.50 % convertible senior notes $ 143,750 4.50 % 7.43 % 27.7222 $ 36.06 august 15 , 2022 ( 1 ) includes the amortization of the market discounts and deferred debt issuance costs , if any , for the 4.50 % convertible senior notes recorded in interest expense on the consolidated statements of operations . ( 2 ) during the years ended december 31 , 2020 and 2019 the effective interest rate for the 4.50 % convertible senior notes was 7.43 % . ( 3 ) represents the number of shares of common stock per $ 1,000 principal amount of the 4.50 % convertible senior notes ' principal outstanding , subject to adjustment as provided in the third supplemental indenture ( the “ 4.50 % convertible senior notes indenture ” ) . ( 4 ) the conversion rate and conversion price of the 4.50 % convertible senior notes at december 31 , 2020 are adjusted to reflect quarterly cash dividends in excess of a $ 0.30 dividend threshold , as defined in the 4.50 % convertible senior notes indenture . the 4.50 ``` Suspicious Activity Report : the resulting spread of covid-19 throughout the globe led the world health organization to designate covid-19 as a pandemic and numerous countries , including the u.s. , to declare national emergencies . many countries have responded to the outbreak by instituting quarantines and restrictions on travel and limiting operations of non-essential offices and retail centers , which has resulted in the closure or remote operation of non-essential businesses and increased rates of unemployment . while certain countries around the world have eased restrictions and financial markets have stabilized to some degree , the pandemic continues to cause uncertainty surrounding its ultimate impact on the global economy , generally , and the cre business in particular . we continue to actively and responsibly manage corporate liquidity and operations in light of the market disruptions caused by covid-19 . additionally , nationwide restrictions placed on most businesses in response to covid-19 are expected to cause significant cash flow disruptions across the economy that will likely impact our borrowers and their ability to stay current with their debt obligations in the near term . we have used and continue to expect to use a variety of legal and structural options to manage that risk effectively , including through forbearance and extension provisions or agreements . it is inherently difficult to accurately assess the impact of covid-19 on our revenues , profitability and financial position due to uncertainty of the severity and duration of the pandemic . in response , in the near-term , we are focused on prudently retaining and managing sufficient liquidity . we , therefore , have not paid distributions on our common shares in 2020. we continuously monitor the effects of covid-19 on our operations and financial position to ensure that we remain responsive and adaptable to the dynamic environment that has been created by the pandemic . for additional discussion with respect to the potential impact of covid-19 on our liquidity and capital resources , see “ liquidity and capital resources . ” historically , we maintained a portfolio of commercial mortgage-backed securities ( “ cmbs ” ) , including senior and subordinated investment grade cmbs , below investment grade cmbs and unrated cmbs , that we primarily financed using short-term repurchase agreements . however , the covid-19 pandemic produced material and previously unforeseeable liquidity shocks to the real estate credit markets that led to the receipt of substantial margin calls , and subsequently some default notices , from our cmbs repurchase agreement counterparties . in april 2020 , we completed the sale of substantially all of our portfolio of cmbs and settlements were reached on all of our remaining cmbs-related obligations , which were paid in full in april 2020. the repayment of all of our cmbs repurchase agreements in april 2020 signifies that we have no further exposure to financings related to cmbs . we realized a loss of $ 180.3 million on the aforementioned disposition of our cmbs portfolio . at december 31 , 2020 , we retained two unencumbered cmbs that previously had fair values below their cost bases with a collective fair value of $ 2.1 million for which we recognized an unrealized loss of $ 6.1 million in our consolidated statements of operations for the year ended december 31 , 2020. our cre loan portfolio , which had a $ 1.5 billion and $ 1.8 billion carrying value at december 31 , 2020 and 2019 , respectively , comprised : first mortgage loans , which we refer to as whole loans . these loans are typically secured by first liens on cre property , including the following property types : office , multifamily , self-storage , retail , hotel , healthcare , student housing , manufactured housing , industrial and mixed-use . at december 31 , 2020 and 2019 , our whole loans had a carrying value of $ 1.5 billion and $ 1.8 billion , respectively , or 98.0 % and 98.3 % , respectively , of the cre loan portfolio . mezzanine debt that is senior to borrower 's equity but is subordinated to other third-party debt . these loans are subordinated cre loans , usually secured by a pledge of the borrower 's equity ownership in the entity that owns the property or by a second lien mortgage on the property . at december 31 , 2020 and 2019 , our mezzanine loans had a carrying value of $ 4.4 million and $ 4.7 million , respectively , or 0.3 % of the cre loan portfolio at each date . preferred equity investments that are subordinate to first mortgage loans and mezzanine debt . these investments may be subject to more credit risk than subordinated debt but provide the potential for higher returns upon a liquidation of the underlying property and are typically structured to provide some credit enhancement differentiating it from the common equity in such investments . at december 31 , 2020 and 2019 , our preferred equity investments had a carrying value of $ 26.0 million and $ 26.1 million , respectively , or 1.7 % and 1.4 % respectively of the cre loan portfolio . we generate our income primarily from the spread between the revenues we receive from our assets and the cost to finance our ownership of those assets , including corporate debt and , to a lesser extent , from hedging interest rate risks . while the cre whole loans included in the cre loan portfolio are entirely composed of floating-rate loans benchmarked to the london interbank offered rate ( “ libor ” ) , asset yields are protected through the use of libor floors and minimum interest periods that typically range from 12 to 18 months at the time of a loan 's origination . in a lower interest rate environment , our libor floors provide asset yield protection when libor falls below an in-place libor floor . story_separator_special_tag the increase of $ 1.4 million for the comparative years ended december 31 , 2020 and 2019 was primarily attributable to amortization expense on terminated interest rate swaps during the year ended december 31 , 2020. in april 2020 , in conjunction with the disposition of our cmbs portfolio financed with short-term repurchase agreements , we terminated all interest rate swap contracts hedging that portfolio . at termination , we realized a loss of $ 11.8 million . during the year ended december 31 , 2020 , we recorded net amortization expense , reported in interest expense on the consolidated statements of operations , of $ 1.3 million related to the terminated interest rate swaps . ( back to index ) 43 ( back to index ) the following table presents the average net yield and average cost of funds for the years ended december 31 , 2020 and 2019 ( dollars in thousands , except amounts in footnotes ) : replace_table_token_3_th ( 1 ) average net yield includes net amortization/accretion and fee income and is computed based on average amortized cost . ( 2 ) includes fee income of approximately $ 6.6 million , $ 54,000 and $ 152,000 recognized on our floating-rate cre whole loans , legacy cre loan and our cre preferred equity investments , respectively , for the year ended december 31 , 2020 and approximately $ 7.8 million , $ 103,000 and $ 162,000 on our floating-rate cre whole loans , legacy cre loans and our cre preferred equity investments , respectively , for the year ended december 31 , 2019 . ( 3 ) includes net accretion income of approximately $ 616,000 and $ 2.7 million for the years ended december 31 , 2020 and 2019 , respectively , on our cmbs securities . ( 4 ) includes amortization expense of approximately $ 7.9 million and $ 8.4 million for the years ended december 31 , 2020 and 2019 , respectively , on our interest-bearing liabilities collateralized by cre whole loans . ( 5 ) includes aggregated amortization expense of approximately $ 3.6 million for the years ended december 31 , 2020 and 2019 on our convertible senior notes . ( 6 ) includes amortization expense of approximately $ 136,000 for the year ended december 31 , 2020 on our senior unsecured notes due 2027 . ( 7 ) includes amortization expense of approximately $ 279,000 for the year ended december 31 , 2019 on our trust certificates - term repurchase facilities . ( 8 ) includes net amortization expense of approximately $ 1.3 million for the year ended december 31 , 2020 and accretion income of $ 91,000 for the year ended december 31 , 2019 on 22 and two terminated interest rate swap agreements , respectively , that were in net loss and gain positions , respectively , at the time of termination . the remaining losses and gains , reported in accumulated other comprehensive ( loss ) income on the consolidated balance sheets , will be accreted over the remaining life of the debt . operating expenses year ended december 31 , 2020 as compared to the year ended december 31 , 2019 the following table sets forth information relating to our operating expenses for the years presented ( dollars in thousands ) : replace_table_token_4_th aggregate operating expenses increased by $ 33.0 million for the comparative years ended december 31 , 2020 and 2019. we attribute the changes to the following : ( back to index ) 44 ( back to index ) management fees . the decrease of $ 2.9 million for the comparative years ended december 31 , 2020 and 2019 was primarily attributable to a decrease in our base management fees during the year ended december 31 , 2020 . our monthly base management fee was equal to 1/12th of the amount of our equity multiplied by 1.50 % in accordance with our prior management agreement . in march 2020 , our equity decreased in connection with the losses incurred on the disposition of our financed cmbs portfolio . additionally , our management fees decreased due to incentive compensation of $ 606,000 that was incurred during the year ended december 31 , 2019. no incentive compensation was payable during the year ended december 31 , 2020 . as of july 31 , 2020 , as part of the amended management agreement , the monthly base management fee was amended to be the greater of 1/12th of the amount of our equity multiplied by 1.50 % or $ 442,000 through july 31 , 2022. equity compensation . the increase of $ 924,000 for the comparative years ended december 31 , 2020 and 2019 was primarily attributable to the acceleration of all unvested stock awards at july 31 , 2020 upon the close of the acres acquisition . real estate operating expense . the increase of $ 298,000 for the comparative years ended december 31 , 2020 and 2019 was attributable to expenses recorded on a real estate owned ( “ reo ” ) property delivered as collateral in a deed in lieu of foreclosure transaction in november 2020. general and administrative . general and administrative expenses increased by $ 3.9 million for the comparative years ended december 31 , 2020 and 2019. the following table summarizes the information relating to our general and administrative expenses for the years presented ( dollars in thousands ) : replace_table_token_5_th the increase in general and administrative expenses for the comparative years ended december 31 , 2020 and 2019 was primarily attributable to ( i ) an increase in professional services in connection with legal fees and advisory fees for services rendered as part of the acres acquisition as well as legal fees incurred in 2020 primarily related to the settlement of our cmbs repurchase agreements and ( ii ) an increase in wages and benefits allocated to us by our manager . the increase in professional services for the comparative periods was offset

the outlook for the energy industry is uncertain at best given the sustained reduction in crude oil and natural gas prices . pricing for our services continues to be very competitive in this environment . going into 2017 , we have an ongoing , extremely focused marketing effort and are observing an adequate amount of proposal activity , which we believe will translate into maintaining our backlog . in particular , we are focused on higher margins and lower risks associated with significant projects located inside of the united states . results of operations our revenue from operations is comprised of epcm services revenue and the sale of integrated engineered automation systems and other automation engineering services . we recognize service revenue as soon as the services are performed . the majority of our engineering services have historically been provided through time-and-material contracts whereas a majority of our integrated engineered automation system revenues are earned on fixed-price contracts . in the course of providing our services , we routinely provide materials and equipment and may provide construction or construction management services on a subcontractor basis . generally , these materials , equipment and subcontractor costs are passed through to our clients and reimbursed , along with handling fees , which in total are at margins lower than those of our services business . in accordance with industry practice and generally accepted accounting principles , all such costs and fees are included in revenue . the use of subcontractor services can change significantly from project to project ; therefore , changes in revenue and gross profit , sg & a expense and operating income as a percent of revenue may not be indicative of our core business trends . 21 segment operating sg & a expense includes management , business development and staff compensation , office costs such as rents and utilities , depreciation , amortization , travel , bad debt and other expenses generally unrelated to specific client contracts , but directly related to the support of a segment 's operations . corporate sg & a expenses includes investor relations , governance , finance , accounting , health , safety , environmental , human resources , legal and information technology which are unrelated to specific projects but which are incurred to support corporate activities . comparison of the years ended december 31 , 2016 and december 26 , 2015 the following table set forth below , for the years ended december 31 , 2016 and december 26 , 2015 , provides financial data that is derived from our consolidated statements of operations ( amounts in thousands , except per share data ) . replace_table_token_8_th 22 revenue – overall , our revenue for the year ended december 31 , 2016 , as compared to the year ended december 26 , 2015 decreased $ 20.4 million , or 25.6 % , to $ 59.2 million from $ 79.6 million . revenue from the automation segment decreased $ 4.4 million , or 14.4 % , to $ 26.0 million for the year ended december 31 , 2016 , as compared to $ 30.3 million for the comparable period in 2015 and revenues from the epcm segment decreased $ 16.0 million , or 32.5 % , to $ 33.3 million for the year ended december 31 , 2016 as compared to $ 49.3 million for the comparable period in 2015. our 2016 revenue for both the epcm and automation segments have been negatively impacted by the sustained reduction in oil and gas prices and the resulting drop in our clients ' activities in the upstream , midstream and downstream sectors of the energy industry . as a result of the sustained reduction in oil and gas prices and the resulting drop in our clients ' activities , we have taken steps to mitigate and reverse the declining revenue trends . in the latter half of 2015 , we hired three seasoned business development professionals and another in the first quarter of 2016. while it will require time for these efforts to generate revenue , our proposal activity has increased and our backlog has remained steady even though the time from proposal to award has increased . while the cost of these initiatives is immediately reflected in increased sg & a expense , we expect to recognize the benefits of these efforts over time subject to the overall level of spending in the energy sectors in which we provide services . gross profit – gross profit for the year ended december 31 , 2016 was $ 10.1 million , a decrease of $ 6.2 million , or 37.8 % , from $ 16.3 million for the comparable prior year period . gross profit margin was 17.1 % for the year ended december 31 , 2016 , a decrease from the 20.4 % gross profit margin for the year ended december 26 , 2015. gross profit in the automation segment decreased $ 3.2 million , or 34.4 % , to $ 6.1 million for a gross profit margin of 23.5 % for the year ended december 31 , 2016 as compared to $ 9.3 million with a gross profit margin of 30.7 % for the year ended december 26 , 2015. gross profit in our epcm segment decreased $ 3.0 million , or 42.4 % to $ 4.0 million for a gross profit margin of 12.1 % for the year ended december 31 , 2016 as compared to $ 7.0 million for a gross profit margin of 14.1 % for the year ended december 26 , 2015. the declines in both the epcm and automation segment 's 2016 gross profit margins are primarily due to lower manpower utilization , which increased our variable labor operating costs , resulting from the decline in our clients ' activities and corresponding reduction in the number of new projects . story_separator_special_tag the company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes . as of december 31 , 2016 and december 26 , 2015 , we do not have any significant uncertain tax positions . changes in accounting policies in november 2015 , the fasb issued accounting standards update ( “ asu ” ) no . 2015-17 , balance sheet classification of deferred taxes ( topic 740 ) : which requires deferred tax liabilities and assets to be classified as noncurrent in the balance sheet . the standard will be effective for financial statements issued for annual periods beginning after december 15 , 2016 , and interim periods within those annual periods . early adoption is permitted for financial statements that have not been previously issued . the asu may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented . we adopted this asu on a prospective basis in the fourth quarter of fiscal 2015. the change in accounting principle does not have an impact on the company 's results of operations , cash flows or stockholders ' equity . in august 2015 , the fasb issued asu no . 2015-15 , interest-imputation of interest ( topic 835-30 ) : presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements . this amendment allows for the deferral and presentation of debt issuance costs as an asset to be ratably amortized over the term of the line-of-credit arrangement , regardless of whether there are any outstanding borrowings on the line-of-credit arrangement . we have historically accounted for our debt issuance costs related to revolving credit agreements in accordance with this amendment and therefore this pronouncement did not have an impact on the company 's financial statements or related disclosures . in april 2015 , the fasb issued asu no . 2015-03 , interest - imputation of interest ( subtopic 835-30 ) : simplifying the presentation of debt issuance costs . this amendment requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability , consistent with the treatment of debt discounts . this pronouncement is effective for interim and annual financial statements issued for fiscal years beginning after december 15 , 2015. we adopted this pronouncement in the first quarter of fiscal 2016 and because the company did not have any debt outstanding at fiscal year-end 2015 or any period during 2016 , this pronouncement did not have an impact on the company 's financial statements or related disclosures . 27 new accounting pronouncements not yet adopted in may 2014 , the fasb issued asu no . 2014-09 , revenue from contracts with customers ( topic 606 ) : the asu will supersede most of the existing revenue recognition requirements in u.s. gaap and will require entities to recognize revenue at an amount that reflects the consideration to which we expect to be entitled in exchange for transferring goods or services to a customer . the new standard also requires significantly expanded disclosures regarding the qualitative and quantitative information of an entity 's nature , amount , timing , and uncertainty of revenue and cash flows arising from contracts with customers . in may 2016 , the fasb issued asu no . 2016-12 to clarify certain narrow aspects of topic 606 such as assessing the collectability criterion , presentation of sales taxes and other similar taxes collected from customers , non-cash consideration , contract modifications at transition , completed contracts at transition , and other technical corrections . this new accounting standard , as updated , is effective for interim and annual reporting periods beginning after december 15 , 2017. we are currently evaluating the provisions of this pronouncement and are assessing its potential impact on our financial position , results of operations , cash flows and related disclosures . however we are currently unable to reasonably estimate the impact this pronouncement will have on our financial statements and related disclosures . in february 2016 , the fasb issued asu no . 2016-02 , leases ( topic 842 ) , that will amend the accounting standards for leases . this new standard retains a distinction between finance leases and operating leases but the primary change is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases on the lessee 's balance sheet and certain aspects of lease accounting have been simplified . this new standard requires additional qualitative and quantitative disclosures along with specific quantitative disclosures required by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount , timing , and uncertainty of cash flows arising from leases . this pronouncement is effective for interim and annual reporting periods beginning after december 15 , 2018 , with early application permitted . we are currently evaluating the provisions of this pronouncement and are assessing its potential impact on our financial position , results of operations , cash flows and related disclosures . however we are currently unable to reasonably estimate the impact this pronouncement will have on our financial statements and related disclosures . in march 2016 , the fasb issued asu no . 2016-09 , compensation – stock compensation ( topic 718 ) : improvements to employee share-based payment accounting , to changes several aspects of accounting for share-based payment transactions , including a requirement to recognize all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement , classification of awards as either equity or liabilities , and classification on the statement of cash flows . this pronouncement is effective for interim and annual reporting periods beginning after december 31 , 2016 , with early adoption permitted . varying transition methods ( modified retrospective , retrospective or prospective ) are applied to different provisions of the standard

liquidity and capital resources overview we define liquidity as our ability to pay liabilities as they become due , fund business operations and meet monetary contractual obligations . our primary sources of liquidity are internally generated funds as we currently can not borrow under our loan agreement with regions bank due to an existing event of default resulting from our failure to comply with the fixed charge coverage ratio financial covenant . we had cash of $ 15.7 million and $ 7.8 million at december 31 , 2016 and december 26 , 2015 , respectively . our working capital as of december 31 , 2016 was $ 22.2 million as compared to $ 25.6 million as of december 26 , 2015. we believe our current cash on hand , internally generated funds and our other working capital is sufficient to fund our current operations . cash and the availability of cash could be materially restricted if ( 1 ) outstanding invoices billed are not collected or are not collected in a timely manner , ( 2 ) circumstances prevent the timely internal processing of invoices , ( 3 ) we lose one or more of our major customers , or ( 4 ) we are unable to win new projects that we can perform on a profitable basis .

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 we define liquidity as our ability to pay liabilities as they become due , fund business operations and meet monetary contractual obligations . our primary sources of liquidity are internally generated funds as we currently can not borrow under our loan agreement with regions bank due to an existing event of default resulting from our failure to comply with the fixed charge coverage ratio financial covenant . we had cash of $ 15.7 million and $ 7.8 million at december 31 , 2016 and december 26 , 2015 , respectively . our working capital as of december 31 , 2016 was $ 22.2 million as compared to $ 25.6 million as of december 26 , 2015. we believe our current cash on hand , internally generated funds and our other working capital is sufficient to fund our current operations . cash and the availability of cash could be materially restricted if ( 1 ) outstanding invoices billed are not collected or are not collected in a timely manner , ( 2 ) circumstances prevent the timely internal processing of invoices , ( 3 ) we lose one or more of our major customers , or ( 4 ) we are unable to win new projects that we can perform on a profitable basis . ``` Suspicious Activity Report : the outlook for the energy industry is uncertain at best given the sustained reduction in crude oil and natural gas prices . pricing for our services continues to be very competitive in this environment . going into 2017 , we have an ongoing , extremely focused marketing effort and are observing an adequate amount of proposal activity , which we believe will translate into maintaining our backlog . in particular , we are focused on higher margins and lower risks associated with significant projects located inside of the united states . results of operations our revenue from operations is comprised of epcm services revenue and the sale of integrated engineered automation systems and other automation engineering services . we recognize service revenue as soon as the services are performed . the majority of our engineering services have historically been provided through time-and-material contracts whereas a majority of our integrated engineered automation system revenues are earned on fixed-price contracts . in the course of providing our services , we routinely provide materials and equipment and may provide construction or construction management services on a subcontractor basis . generally , these materials , equipment and subcontractor costs are passed through to our clients and reimbursed , along with handling fees , which in total are at margins lower than those of our services business . in accordance with industry practice and generally accepted accounting principles , all such costs and fees are included in revenue . the use of subcontractor services can change significantly from project to project ; therefore , changes in revenue and gross profit , sg & a expense and operating income as a percent of revenue may not be indicative of our core business trends . 21 segment operating sg & a expense includes management , business development and staff compensation , office costs such as rents and utilities , depreciation , amortization , travel , bad debt and other expenses generally unrelated to specific client contracts , but directly related to the support of a segment 's operations . corporate sg & a expenses includes investor relations , governance , finance , accounting , health , safety , environmental , human resources , legal and information technology which are unrelated to specific projects but which are incurred to support corporate activities . comparison of the years ended december 31 , 2016 and december 26 , 2015 the following table set forth below , for the years ended december 31 , 2016 and december 26 , 2015 , provides financial data that is derived from our consolidated statements of operations ( amounts in thousands , except per share data ) . replace_table_token_8_th 22 revenue – overall , our revenue for the year ended december 31 , 2016 , as compared to the year ended december 26 , 2015 decreased $ 20.4 million , or 25.6 % , to $ 59.2 million from $ 79.6 million . revenue from the automation segment decreased $ 4.4 million , or 14.4 % , to $ 26.0 million for the year ended december 31 , 2016 , as compared to $ 30.3 million for the comparable period in 2015 and revenues from the epcm segment decreased $ 16.0 million , or 32.5 % , to $ 33.3 million for the year ended december 31 , 2016 as compared to $ 49.3 million for the comparable period in 2015. our 2016 revenue for both the epcm and automation segments have been negatively impacted by the sustained reduction in oil and gas prices and the resulting drop in our clients ' activities in the upstream , midstream and downstream sectors of the energy industry . as a result of the sustained reduction in oil and gas prices and the resulting drop in our clients ' activities , we have taken steps to mitigate and reverse the declining revenue trends . in the latter half of 2015 , we hired three seasoned business development professionals and another in the first quarter of 2016. while it will require time for these efforts to generate revenue , our proposal activity has increased and our backlog has remained steady even though the time from proposal to award has increased . while the cost of these initiatives is immediately reflected in increased sg & a expense , we expect to recognize the benefits of these efforts over time subject to the overall level of spending in the energy sectors in which we provide services . gross profit – gross profit for the year ended december 31 , 2016 was $ 10.1 million , a decrease of $ 6.2 million , or 37.8 % , from $ 16.3 million for the comparable prior year period . gross profit margin was 17.1 % for the year ended december 31 , 2016 , a decrease from the 20.4 % gross profit margin for the year ended december 26 , 2015. gross profit in the automation segment decreased $ 3.2 million , or 34.4 % , to $ 6.1 million for a gross profit margin of 23.5 % for the year ended december 31 , 2016 as compared to $ 9.3 million with a gross profit margin of 30.7 % for the year ended december 26 , 2015. gross profit in our epcm segment decreased $ 3.0 million , or 42.4 % to $ 4.0 million for a gross profit margin of 12.1 % for the year ended december 31 , 2016 as compared to $ 7.0 million for a gross profit margin of 14.1 % for the year ended december 26 , 2015. the declines in both the epcm and automation segment 's 2016 gross profit margins are primarily due to lower manpower utilization , which increased our variable labor operating costs , resulting from the decline in our clients ' activities and corresponding reduction in the number of new projects . story_separator_special_tag the company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes . as of december 31 , 2016 and december 26 , 2015 , we do not have any significant uncertain tax positions . changes in accounting policies in november 2015 , the fasb issued accounting standards update ( “ asu ” ) no . 2015-17 , balance sheet classification of deferred taxes ( topic 740 ) : which requires deferred tax liabilities and assets to be classified as noncurrent in the balance sheet . the standard will be effective for financial statements issued for annual periods beginning after december 15 , 2016 , and interim periods within those annual periods . early adoption is permitted for financial statements that have not been previously issued . the asu may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented . we adopted this asu on a prospective basis in the fourth quarter of fiscal 2015. the change in accounting principle does not have an impact on the company 's results of operations , cash flows or stockholders ' equity . in august 2015 , the fasb issued asu no . 2015-15 , interest-imputation of interest ( topic 835-30 ) : presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements . this amendment allows for the deferral and presentation of debt issuance costs as an asset to be ratably amortized over the term of the line-of-credit arrangement , regardless of whether there are any outstanding borrowings on the line-of-credit arrangement . we have historically accounted for our debt issuance costs related to revolving credit agreements in accordance with this amendment and therefore this pronouncement did not have an impact on the company 's financial statements or related disclosures . in april 2015 , the fasb issued asu no . 2015-03 , interest - imputation of interest ( subtopic 835-30 ) : simplifying the presentation of debt issuance costs . this amendment requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability , consistent with the treatment of debt discounts . this pronouncement is effective for interim and annual financial statements issued for fiscal years beginning after december 15 , 2015. we adopted this pronouncement in the first quarter of fiscal 2016 and because the company did not have any debt outstanding at fiscal year-end 2015 or any period during 2016 , this pronouncement did not have an impact on the company 's financial statements or related disclosures . 27 new accounting pronouncements not yet adopted in may 2014 , the fasb issued asu no . 2014-09 , revenue from contracts with customers ( topic 606 ) : the asu will supersede most of the existing revenue recognition requirements in u.s. gaap and will require entities to recognize revenue at an amount that reflects the consideration to which we expect to be entitled in exchange for transferring goods or services to a customer . the new standard also requires significantly expanded disclosures regarding the qualitative and quantitative information of an entity 's nature , amount , timing , and uncertainty of revenue and cash flows arising from contracts with customers . in may 2016 , the fasb issued asu no . 2016-12 to clarify certain narrow aspects of topic 606 such as assessing the collectability criterion , presentation of sales taxes and other similar taxes collected from customers , non-cash consideration , contract modifications at transition , completed contracts at transition , and other technical corrections . this new accounting standard , as updated , is effective for interim and annual reporting periods beginning after december 15 , 2017. we are currently evaluating the provisions of this pronouncement and are assessing its potential impact on our financial position , results of operations , cash flows and related disclosures . however we are currently unable to reasonably estimate the impact this pronouncement will have on our financial statements and related disclosures . in february 2016 , the fasb issued asu no . 2016-02 , leases ( topic 842 ) , that will amend the accounting standards for leases . this new standard retains a distinction between finance leases and operating leases but the primary change is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases on the lessee 's balance sheet and certain aspects of lease accounting have been simplified . this new standard requires additional qualitative and quantitative disclosures along with specific quantitative disclosures required by lessees and lessors to meet the objective of enabling users of financial statements to assess the amount , timing , and uncertainty of cash flows arising from leases . this pronouncement is effective for interim and annual reporting periods beginning after december 15 , 2018 , with early application permitted . we are currently evaluating the provisions of this pronouncement and are assessing its potential impact on our financial position , results of operations , cash flows and related disclosures . however we are currently unable to reasonably estimate the impact this pronouncement will have on our financial statements and related disclosures . in march 2016 , the fasb issued asu no . 2016-09 , compensation – stock compensation ( topic 718 ) : improvements to employee share-based payment accounting , to changes several aspects of accounting for share-based payment transactions , including a requirement to recognize all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement , classification of awards as either equity or liabilities , and classification on the statement of cash flows . this pronouncement is effective for interim and annual reporting periods beginning after december 31 , 2016 , with early adoption permitted . varying transition methods ( modified retrospective , retrospective or prospective ) are applied to different provisions of the standard

in recent years we have experienced comparatively greater success in product markets characterized by low or limited competition , for example the markets for biologic patches and valvulotome devices . in the biologic patch market , we believe that we have been able to increase market share . in the valvulotome market , we believe that we have been able to increase selling prices without compromising market share . there can be no assurance that we will not meet resistance to increased selling prices in the future . in contrast , we have experienced comparatively lesser success in highly competitive product markets such as such as prosthetic polyester and eptfe grafts , where we face stronger competition from larger companies with greater resources . while we believe that these challenging market dynamics can be mitigated by our strong relationships with our vascular surgeon customers , there can be no assurance that we will be successful in highly competitive markets . because we believe that direct-to-hospital sales engender closer customer relationships , and allow for higher selling prices and gross margins , we periodically enter into transactions with our distributors to transition their sales of our medical devices to our direct sales organization : in october 2012 , we entered into a definitive agreement with schaublin medica sa ( schaublin ) to terminate its distribution of our products in switzerland effective january 1 , 2013. the agreement required us to pay approximately $ 0.2 million in exchange for the purchase of their customer list for our products , certain customer contracts , sales and marketing transition services , and minimal inventory . in december 2012 , we entered into a definitive agreement with trytech corporation to terminate its distribution of our products in a certain japanese territory effective as of april 1 , 2013. the agreement required us to pay approximately $ 0.1 million in exchange for the purchase of their customer list for our products , certain customer contracts , sales and marketing transition services , and minimal inventory . in march 2013 , we began shipping directly to our canadian customers from our sales office in toronto , canada . we anticipate that the expansion of our direct sales organization in canada and switzerland will result in increased sales and marketing expenses during 2013 . 40 our strategy for growing our business includes the acquisition of complementary product lines and companies and occasionally the discontinuance or divestiture of products or activities that are no longer complementary : in november 2010 , we acquired our lifespan eptfe vascular graft from angiotech pharmaceuticals , inc. for $ 2.8 million and related assets from edwards lifesciences for $ 1.2 million . in june 2011 , we divested our taarget and unifit stent grafts to duke vascular , inc. for $ 0.6 million . in addition , duke vascular , inc. assumed our future obligations for the associated unite and entrust clinical trials . in august 2011 , we terminated our distribution of endologix 's aortic stent graft products in europe in exchange for $ 1.3 million . in november 2012 , we acquired the manufacturing rights manufacturing and distribution rights of the xenosure biologic vascular patch from neovasc , inc. for $ 4.6 million , having previously been an exclusive distributor of the xenosure biologic vascular patch since 2008. in addition to relying upon acquisitions to grow our business , we also rely on our product development efforts to bring differentiated technology and next-generation products to market . these efforts have led to the following recent product developments : in december 2011 , we launched the over-the-wire lemaitre valvulotome . in december 2012 , we completed first-in-man procedures with the multitasc device and the 1.5mm lemaitre valvulotome . these two products are scheduled to launch in mid-2013 . in addition to our sales growth strategies , we have also executed several operational initiatives designed to consolidate and streamline manufacturing within our burlington , ma facilities . we expect that these plant consolidations will result in improved control over our production capacity as well as reduced costs over the long-term . our most recent manufacturing transitions included : in october 2010 , we adopted a reorganization plan that was designed to eliminate redundant costs resulting from our 2007 acquisition of biomateriali and to improve efficiencies in manufacturing operations . we have completed the transition of albograft vascular graft manufacturing into our existing corporate headquarters in burlington , massachusetts . in may 2011 , we adopted a reorganization plan that was designed to eliminate redundant costs resulting from our 2010 acquisition of the lifespan vascular graft and to improve efficiencies in manufacturing operations . we have completed the transition of lifespan vascular graft manufacturing into our existing corporate headquarters in burlington , massachusetts . in november 2012 , we initiated a project to build a third clean room for our newly acquired xenosure biologic patch . we expect this transition to our burlington facility to continue into the second half of 2013 resulting in a negative impact to our gross profit . once the transition is complete , we expect the gross margins on our xenosure biologic vascular patch to improve beginning in 2014 ; however , there can be no assurance that these results will be achieved , if at all . further , the production of the xenosure biological patch will be our first experience in manufacturing biological tissues . there can be no assurance that we will not experience delays or additional expenses associated with the transfer of this patch and there can be no assurance that our current supply agreement with neovasc will be sufficient to meet sales demand during the transition . story_separator_special_tag we have assessed the need for a valuation allowance against our deferred tax assets and concluded that as of december 31 , 2012 , we will continue to carry a valuation allowance against $ 3.1 million of deferred tax assets , principally foreign net operating loss carry-forwards , which based on the weight of available evidence , we believe it is more likely than not that such assets will not be realized . we expect that our effective tax rate in 2013 will be comparable to our effective tax rate in 2012. we will be able to utilize federal research and development tax credits in 2013 from both 2012 and 2013 as a result of legislation enacted in january 2013. comparison of the year ended december 31 , 2011 , to the year ended december 31 , 2010 the following tables set forth , for the periods indicated , our results of operations and the change between the specified periods expressed as a percent increase or decrease : replace_table_token_10_th net sales . net sales increased 3 % to $ 57.7 million in 2011 from $ 56.1 million in 2010. acquisitions , primarily the lifespan vascular graft , increased sales 2 % compared to 2010. divestitures , primarily of the taarget and unifit stent graft product lines as well as the termination of the endologix aortic stent graft distribution agreement , decreased sales 4 % from the prior year . changes in foreign currency exchange rates added 2 % to year over year sales growth . sales increases in 2011 were largely driven by higher average selling prices across nearly all product lines , as well as stronger sales of biologic patches of $ 0.9 million , catheters of $ 0.6 million and vessel closure systems of $ 0.5 million , in addition to full-year lifespan vascular graft sales and favorable changes in foreign currency exchange rates . these gains were partially offset by a $ 2.6 million decrease in stent grafts , primarily due to the decline of , and subsequent exit from , these product lines . direct-to-hospital net sales were 93 % in 2011 and 2010 . 46 net sales by geography . net sales in the americas increased $ 2.4 million to $ 37.0 million in 2011. the increase was largely the result of higher average selling prices across nearly all product lines as well as increased sales of biologic patches and vessel closure systems . international net sales decreased to $ 20.7 million in 2011. the decrease was primarily driven by the divestitures of the taarget and unifit stent graft product lines and the termination of the endologix aortic stent graft distribution agreement . sales of these products decreased to $ 4.0 million in 2011 compared to $ 6.8 million in 2010. the decrease in international sales was partially offset by full-year lifespan sales of $ 1.2 million and $ 1.1 million of favorable changes in foreign currency exchange rates . international direct-to-hospital net sales were 82 % in 2011 and 2010. replace_table_token_11_th * not applicable gross profit . gross profit decreased 4 % to $ 40.2 million in 2011 from $ 41.7 million in 2010 , while our gross margin decreased 4.7 % to 69.7 % . the gross margin decrease was the result of manufacturing inefficiencies in burlington , massachusetts largely related to the albograft product line and its transfer from italy to the united states , as well as a $ 0.2 million charge related to a voluntary recall of two albograft production lots in the fourth quarter of 2011. the gross margin decrease was partially offset by higher average selling prices across nearly all product lines and improved product mix due to the termination of the endologix distribution agreement . replace_table_token_12_th * not a meaningful percentage . sales and marketing . sales and marketing expenses were $ 19.4 million in 2011 , flat versus 2010. as a percentage of net sales , sales and marketing expenses were 34 % in 2011 , down 1 % from the prior year . compared to 2010 , sales and marketing expenses were negatively affected by increases in foreign currency exchange rates of $ 0.5 million , transition services related to business development activities of $ 0.3 million , and recruiting expenses of $ 0.2 million , which were offset by a decrease in sales personnel compensation of $ 1.0 million . at december 31 , 2011 , we employed 78 sales representatives worldwide , compared to 67 in the prior year period . general and administrative . general and administrative expense increased 7 % to $ 11.2 million in 2011 from $ 10.5 million in 2010. the increase was largely the result of higher administrative costs associated with our french and spanish subsidiaries of $ 0.5 million , higher amortization costs of $ 0.3 million related to the lifespan vascular graft acquisition and our spanish distributor buy-out , and changes in foreign currency exchange rates of $ 0.2 million , partially offset by a reduction in administrative costs associated with our closure of the biomateriali subsidiary of $ 0.2 million . as a percentage of net sales , general and administrative expenses were 19 % in both 2011 and 2010 . 47 research and development . research and development expenses decreased 19 % to $ 4.4 million in 2011 from $ 5.5 million in 2010. as a percentage of net sales , research and development expenses decreased to 8 % in 2011 from 10 % in 2010. the decrease was largely driven by a reduction in regulatory and clinical affairs costs of $ 0.8 million in 2011 , related to the suspension of our unite and entrust trials in october 2010. in addition , product development costs decreased $ 0.4 million in 2011 as we reduced animal testing associated with new products approvals . on june 30 , 2011 , duke vascular , inc. assumed all future obligations of the unite and entrust trials as

liquidity and capital resources at december 31 , 2012 , our cash , cash equivalents and marketable securities were $ 16.4 million as compared to $ 20.1 million at december 31 , 2011. our cash and cash equivalents are highly liquid investments with maturities of 90 days or less at the date of purchase and consist of money market funds , and are stated at cost , which approximates fair value . we did not hold any marketable securities nor any mortgage asset-backed or auction-rate securities in our investment portfolio as of december 31 , 2012. all of our cash held outside of the united states is available for corporate use . operating and capital expenditure requirements we require cash to pay our operating expenses , make capital expenditures , fund acquisitions , and pay our long-term liabilities . since our inception , we have funded our operations through private and public placements of equity securities , short-term borrowings , and funds generated from our operations . for the year ended december 31 , 2012 , we recognized operating income of $ 4.2 million . for the year ended december 31 , 2011 , we recognized operating income of $ 3.7 million . we expect to fund any increased costs and expenditures from our existing cash and cash equivalents and marketable securities , though our future capital requirements depend on numerous factors .

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 , 2012 , our cash , cash equivalents and marketable securities were $ 16.4 million as compared to $ 20.1 million at december 31 , 2011. our cash and cash equivalents are highly liquid investments with maturities of 90 days or less at the date of purchase and consist of money market funds , and are stated at cost , which approximates fair value . we did not hold any marketable securities nor any mortgage asset-backed or auction-rate securities in our investment portfolio as of december 31 , 2012. all of our cash held outside of the united states is available for corporate use . operating and capital expenditure requirements we require cash to pay our operating expenses , make capital expenditures , fund acquisitions , and pay our long-term liabilities . since our inception , we have funded our operations through private and public placements of equity securities , short-term borrowings , and funds generated from our operations . for the year ended december 31 , 2012 , we recognized operating income of $ 4.2 million . for the year ended december 31 , 2011 , we recognized operating income of $ 3.7 million . we expect to fund any increased costs and expenditures from our existing cash and cash equivalents and marketable securities , though our future capital requirements depend on numerous factors . ``` Suspicious Activity Report : in recent years we have experienced comparatively greater success in product markets characterized by low or limited competition , for example the markets for biologic patches and valvulotome devices . in the biologic patch market , we believe that we have been able to increase market share . in the valvulotome market , we believe that we have been able to increase selling prices without compromising market share . there can be no assurance that we will not meet resistance to increased selling prices in the future . in contrast , we have experienced comparatively lesser success in highly competitive product markets such as such as prosthetic polyester and eptfe grafts , where we face stronger competition from larger companies with greater resources . while we believe that these challenging market dynamics can be mitigated by our strong relationships with our vascular surgeon customers , there can be no assurance that we will be successful in highly competitive markets . because we believe that direct-to-hospital sales engender closer customer relationships , and allow for higher selling prices and gross margins , we periodically enter into transactions with our distributors to transition their sales of our medical devices to our direct sales organization : in october 2012 , we entered into a definitive agreement with schaublin medica sa ( schaublin ) to terminate its distribution of our products in switzerland effective january 1 , 2013. the agreement required us to pay approximately $ 0.2 million in exchange for the purchase of their customer list for our products , certain customer contracts , sales and marketing transition services , and minimal inventory . in december 2012 , we entered into a definitive agreement with trytech corporation to terminate its distribution of our products in a certain japanese territory effective as of april 1 , 2013. the agreement required us to pay approximately $ 0.1 million in exchange for the purchase of their customer list for our products , certain customer contracts , sales and marketing transition services , and minimal inventory . in march 2013 , we began shipping directly to our canadian customers from our sales office in toronto , canada . we anticipate that the expansion of our direct sales organization in canada and switzerland will result in increased sales and marketing expenses during 2013 . 40 our strategy for growing our business includes the acquisition of complementary product lines and companies and occasionally the discontinuance or divestiture of products or activities that are no longer complementary : in november 2010 , we acquired our lifespan eptfe vascular graft from angiotech pharmaceuticals , inc. for $ 2.8 million and related assets from edwards lifesciences for $ 1.2 million . in june 2011 , we divested our taarget and unifit stent grafts to duke vascular , inc. for $ 0.6 million . in addition , duke vascular , inc. assumed our future obligations for the associated unite and entrust clinical trials . in august 2011 , we terminated our distribution of endologix 's aortic stent graft products in europe in exchange for $ 1.3 million . in november 2012 , we acquired the manufacturing rights manufacturing and distribution rights of the xenosure biologic vascular patch from neovasc , inc. for $ 4.6 million , having previously been an exclusive distributor of the xenosure biologic vascular patch since 2008. in addition to relying upon acquisitions to grow our business , we also rely on our product development efforts to bring differentiated technology and next-generation products to market . these efforts have led to the following recent product developments : in december 2011 , we launched the over-the-wire lemaitre valvulotome . in december 2012 , we completed first-in-man procedures with the multitasc device and the 1.5mm lemaitre valvulotome . these two products are scheduled to launch in mid-2013 . in addition to our sales growth strategies , we have also executed several operational initiatives designed to consolidate and streamline manufacturing within our burlington , ma facilities . we expect that these plant consolidations will result in improved control over our production capacity as well as reduced costs over the long-term . our most recent manufacturing transitions included : in october 2010 , we adopted a reorganization plan that was designed to eliminate redundant costs resulting from our 2007 acquisition of biomateriali and to improve efficiencies in manufacturing operations . we have completed the transition of albograft vascular graft manufacturing into our existing corporate headquarters in burlington , massachusetts . in may 2011 , we adopted a reorganization plan that was designed to eliminate redundant costs resulting from our 2010 acquisition of the lifespan vascular graft and to improve efficiencies in manufacturing operations . we have completed the transition of lifespan vascular graft manufacturing into our existing corporate headquarters in burlington , massachusetts . in november 2012 , we initiated a project to build a third clean room for our newly acquired xenosure biologic patch . we expect this transition to our burlington facility to continue into the second half of 2013 resulting in a negative impact to our gross profit . once the transition is complete , we expect the gross margins on our xenosure biologic vascular patch to improve beginning in 2014 ; however , there can be no assurance that these results will be achieved , if at all . further , the production of the xenosure biological patch will be our first experience in manufacturing biological tissues . there can be no assurance that we will not experience delays or additional expenses associated with the transfer of this patch and there can be no assurance that our current supply agreement with neovasc will be sufficient to meet sales demand during the transition . story_separator_special_tag we have assessed the need for a valuation allowance against our deferred tax assets and concluded that as of december 31 , 2012 , we will continue to carry a valuation allowance against $ 3.1 million of deferred tax assets , principally foreign net operating loss carry-forwards , which based on the weight of available evidence , we believe it is more likely than not that such assets will not be realized . we expect that our effective tax rate in 2013 will be comparable to our effective tax rate in 2012. we will be able to utilize federal research and development tax credits in 2013 from both 2012 and 2013 as a result of legislation enacted in january 2013. comparison of the year ended december 31 , 2011 , to the year ended december 31 , 2010 the following tables set forth , for the periods indicated , our results of operations and the change between the specified periods expressed as a percent increase or decrease : replace_table_token_10_th net sales . net sales increased 3 % to $ 57.7 million in 2011 from $ 56.1 million in 2010. acquisitions , primarily the lifespan vascular graft , increased sales 2 % compared to 2010. divestitures , primarily of the taarget and unifit stent graft product lines as well as the termination of the endologix aortic stent graft distribution agreement , decreased sales 4 % from the prior year . changes in foreign currency exchange rates added 2 % to year over year sales growth . sales increases in 2011 were largely driven by higher average selling prices across nearly all product lines , as well as stronger sales of biologic patches of $ 0.9 million , catheters of $ 0.6 million and vessel closure systems of $ 0.5 million , in addition to full-year lifespan vascular graft sales and favorable changes in foreign currency exchange rates . these gains were partially offset by a $ 2.6 million decrease in stent grafts , primarily due to the decline of , and subsequent exit from , these product lines . direct-to-hospital net sales were 93 % in 2011 and 2010 . 46 net sales by geography . net sales in the americas increased $ 2.4 million to $ 37.0 million in 2011. the increase was largely the result of higher average selling prices across nearly all product lines as well as increased sales of biologic patches and vessel closure systems . international net sales decreased to $ 20.7 million in 2011. the decrease was primarily driven by the divestitures of the taarget and unifit stent graft product lines and the termination of the endologix aortic stent graft distribution agreement . sales of these products decreased to $ 4.0 million in 2011 compared to $ 6.8 million in 2010. the decrease in international sales was partially offset by full-year lifespan sales of $ 1.2 million and $ 1.1 million of favorable changes in foreign currency exchange rates . international direct-to-hospital net sales were 82 % in 2011 and 2010. replace_table_token_11_th * not applicable gross profit . gross profit decreased 4 % to $ 40.2 million in 2011 from $ 41.7 million in 2010 , while our gross margin decreased 4.7 % to 69.7 % . the gross margin decrease was the result of manufacturing inefficiencies in burlington , massachusetts largely related to the albograft product line and its transfer from italy to the united states , as well as a $ 0.2 million charge related to a voluntary recall of two albograft production lots in the fourth quarter of 2011. the gross margin decrease was partially offset by higher average selling prices across nearly all product lines and improved product mix due to the termination of the endologix distribution agreement . replace_table_token_12_th * not a meaningful percentage . sales and marketing . sales and marketing expenses were $ 19.4 million in 2011 , flat versus 2010. as a percentage of net sales , sales and marketing expenses were 34 % in 2011 , down 1 % from the prior year . compared to 2010 , sales and marketing expenses were negatively affected by increases in foreign currency exchange rates of $ 0.5 million , transition services related to business development activities of $ 0.3 million , and recruiting expenses of $ 0.2 million , which were offset by a decrease in sales personnel compensation of $ 1.0 million . at december 31 , 2011 , we employed 78 sales representatives worldwide , compared to 67 in the prior year period . general and administrative . general and administrative expense increased 7 % to $ 11.2 million in 2011 from $ 10.5 million in 2010. the increase was largely the result of higher administrative costs associated with our french and spanish subsidiaries of $ 0.5 million , higher amortization costs of $ 0.3 million related to the lifespan vascular graft acquisition and our spanish distributor buy-out , and changes in foreign currency exchange rates of $ 0.2 million , partially offset by a reduction in administrative costs associated with our closure of the biomateriali subsidiary of $ 0.2 million . as a percentage of net sales , general and administrative expenses were 19 % in both 2011 and 2010 . 47 research and development . research and development expenses decreased 19 % to $ 4.4 million in 2011 from $ 5.5 million in 2010. as a percentage of net sales , research and development expenses decreased to 8 % in 2011 from 10 % in 2010. the decrease was largely driven by a reduction in regulatory and clinical affairs costs of $ 0.8 million in 2011 , related to the suspension of our unite and entrust trials in october 2010. in addition , product development costs decreased $ 0.4 million in 2011 as we reduced animal testing associated with new products approvals . on june 30 , 2011 , duke vascular , inc. assumed all future obligations of the unite and entrust trials as

depreciation , depletion , amortization and impairment includes the systematic expensing of the capitalized costs incurred to acquire , explore and develop oil and natural gas properties . as a full cost company , we capitalize all costs associated with our development and acquisition efforts and allocate these costs to each unit of production using the units-of-production method . general and administrative expenses . general and administrative expenses include overhead , including payroll and benefits for our corporate staff , costs of maintaining our headquarters , costs of managing our acquisition and development operations , franchise taxes , audit and other professional fees and legal compliance . interest expense . we finance a portion of our working capital requirements , capital expenditures and acquisitions with borrowings . as a result , we incur interest expense that is affected by both fluctuations in interest rates and our financing decisions . we capitalize a portion of the interest paid on applicable borrowings into our full cost pool . we include interest expense that is not capitalized into the full cost pool , the amortization of deferred financing costs and bond premiums ( including origination and amendment fees ) , commitment fees and annual agency fees as interest expense . 45 income tax expense . our provision for taxes includes both federal and state taxes . we record our federal income taxes in accordance with accounting for income taxes under gaap which results in the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the book carrying amounts and the tax basis of assets and liabilities . deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carryforwards are expected to be recovered or settled . the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date . a valuation allowance is established to reduce deferred tax assets if it is more likely than not that the related tax benefits will not be realized . selected factors that affect our operating results our revenues , cash flows from operations and future growth depend substantially upon : the timing and success of drilling and production activities by our operating partners ; the prices and the supply and demand for oil , natural gas and ngls ; the quantity of oil and natural gas production from the wells in which we participate ; changes in the fair value of the derivative instruments we use to reduce our exposure to fluctuations in the price of oil ; our ability to continue to identify and acquire high-quality acreage and drilling opportunities ; and the level of our operating expenses . in addition to the factors that affect companies in our industry generally , the location of our acreage and wells in the williston basin subjects our operating results to factors specific to this region . these factors include the potential adverse impact of weather on drilling , production and transportation activities , particularly during the winter and spring months , and the limitations of the developing infrastructure and transportation capacity in this region . the price of oil in the williston basin can vary depending on the market in which it is sold and the means of transportation used to transport the oil to market . light sweet crude from the williston basin has a higher value at many major refining centers because of its higher quality relative to heavier and sour grades of oil ; however , because of north dakota 's location relative to traditional oil transport centers , this higher value is generally offset to some extent by higher transportation costs . while rail transportation has historically been more expensive than pipeline transportation , williston basin prices have at times justified shipment by rail to markets such as st. james , louisiana , which offers prices benchmarked to brent/lls . additional pipeline infrastructure during 2017 has increased takeaway capacity in the williston basin which has improved wellhead values in the region . the price at which our oil production is sold typically reflects a discount to the nymex benchmark price . thus , our operating results are also affected by changes in the oil price differentials between the nymex and the sales prices we receive for our oil production . our oil price differential to the nymex benchmark price during 2017 was $ 5.87 per barrel , as compared to $ 8.25 per barrel in 2016 . fluctuations in our oil price differential are due to several factors such as takeaway capacity relative to production levels in the williston basin , and seasonal refinery maintenance temporarily depressing crude demand . another significant factor affecting our operating results is drilling costs . the cost of drilling wells has varied significantly over the past few years as volatility in oil prices has substantially impacted the level of drilling activity in the williston basin . generally , higher oil prices have led to increased drilling activity , with the increased demand for drilling and completion services driving these costs higher . lower oil prices have generally had the opposite effect . in addition , individual components of the cost can vary depending on numerous factors such as the length of the horizontal lateral , the number of fracture stimulation stages , and the choice of proppant ( sand or ceramic ) . rig activity levels in 2017 increased from 2016 levels and a large percentage of our newer wells utilize higher intensity completion techniques . the higher intensity completions generally deliver the best returns in the current pricing environment but cost more due to increased materials and servicing costs . story_separator_special_tag net income ( loss ) is the most directly comparable gaap measure for both adjusted net income and adjusted ebitda , and tabular reconciliations for these measures are included below . we recorded a net loss of $ 9.2 million ( representing $ 0.15 per diluted share ) for 2017 , compared to a net loss of $ 293.5 million ( representing $ 4.80 per diluted share ) for 2016 and a net loss of $ 975.4 million ( representing $ 16.08 per diluted share ) for 2015 . we define adjusted net income as net income ( loss ) excluding ( i ) ( gain ) loss on the mark-to-market of derivative instruments , net of tax , ( ii ) restructuring costs , net of tax , ( iii ) impairment of oil and natural gas properties , net of tax , ( iv ) write-off of debt issuance costs , net of tax , ( v ) loss on the extinguishment of debt , net of tax , and ( vi ) certain legal settlements , net of tax . our adjusted net income for 2017 was $ 8.5 million ( representing $ 0.14 per diluted share ) as compared to adjusted net income for 2016 of $ 12.2 million ( representing $ 0.20 per diluted share ) and $ 47.6 million ( representing $ 0.78 per diluted share ) for 2015 . the decrease in adjusted net income in 2017 compared to 2016 was primarily due to lower realized commodity prices , and higher general and administrative expenses , production expenses and interest costs , which were partially offset by lower depletion expense and higher production volumes . the decrease in adjusted net income in 2016 compared to 2015 was primarily due to lower realized commodity prices and production volumes , as well as higher interest costs , which were partially offset by lower depletion expense and other operating expenses . we define adjusted ebitda as net income before ( i ) interest expense , ( ii ) income taxes , ( iii ) depreciation , depletion , amortization , and accretion , ( iv ) ( gain ) loss on the mark-to-market of derivative instruments , ( v ) non-cash share based compensation expense , ( vi ) write-off of debt issuance costs , ( vii ) loss on the extinguishment of debt , and ( viii ) impairment of oil and natural gas properties . adjusted ebitda for 2017 was $ 144.7 million , compared to adjusted ebitda of $ 148.5 million in 2016 and $ 277.3 million in 2015 . the decrease in adjusted ebitda in 2017 as compared to 2016 is primarily due to lower realized commodity prices and increased general and administrative expenses , partially offset by higher production volumes . the decrease in adjusted ebitda in 2016 as compared to 2015 was primarily due to lower realized commodity prices and lower production volumes . management believes the use of these non-gaap financial measures provides useful information to investors to gain an overall understanding of our current financial performance . specifically , management believes the non-gaap financial measures included herein provide useful information to both management and investors by excluding certain expenses and unrealized commodity gains and losses that our management believes are not indicative of our core operating results . in addition , these non-gaap financial measures are used by management for budgeting and forecasting as well as subsequently measuring our performance , and we believe that we are providing investors with financial measures that most closely align to our internal measurement processes . we consider these non-gaap measures to be useful in evaluating our core operating results as they more closely reflect our essential revenue generating activities and direct operating expenses ( resulting in cash expenditures ) needed to perform these revenue generating activities . our management also believes , based on feedback provided by the investment community , that the non-gaap financial measures are necessary to allow the investment community to construct its valuation models to better compare our results with our competitors and market sector . these measures should be considered in addition to results prepared in accordance with gaap . in addition , these non-gaap financial measures are not based on any comprehensive set of accounting rules or principles . we believe that non-gaap financial measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with gaap and that these measures should only be used to evaluate our results of operations in conjunction with the corresponding gaap financial measures . adjusted net income and adjusted ebitda are non-gaap measures . a reconciliation of these measures to gaap is included below : 52 reconciliation of adjusted net income replace_table_token_22_th _ ( 1 ) for the 2017 columns , this represents the tax impact using an estimated tax rate of 39.1 % and includes adjustments for changes in our valuation allowance of $ 3.7 million , excluding the impact for the tax cuts and jobs act that was enacted on december 22 , 2017. for 2016 and 2015 columns , this represents the tax impact using an estimated tax rate of 37.4 % for 2016 and 36.9 % for 2015 , and includes adjustments for changes in our valuation allowance of $ 109.0 million for 2016 , and $ 232.3 million for 2015 , respectively . 53 reconciliation of adjusted ebitda replace_table_token_23_th liquidity and capital resources overview our main sources of liquidity and capital resources as of the date of this report have been internally generated cash flow from operations , proceeds from senior unsecured notes , credit facility borrowings and cash settlements of derivative contracts . our primary uses of capital have been for the acquisition and development of our oil and gas properties . we continually monitor potential capital sources for opportunities to enhance liquidity or otherwise improve our financial position . one

cash flows used in investing activities we had cash flows used in investing activities of $ 119.2 million , $ 91.0 million and $ 288.9 million during the years ended december 31 , 2017 , 2016 and 2015 , respectively , primarily as a result of our capital expenditures for drilling , development and acquisition costs . the year-over-year increase in cash used in investing activities in 2017 was attributable to increased oil and gas development activities . in light of the lower price environment , oil and gas development activities were significantly lower in 2016 when compared to 2015 . during 2017 , 2016 and 2015 we added 16.9 , 10.7 and 18.6 net wells to production , respectively . our cash flows used in investing activities reflects actual cash spending , which can lag several months from when the related costs were incurred . as a result , our actual cash spending is not always reflective of current levels of development activity . for instance , during the year ended december 31 , 2017 , our capitalized costs incurred for oil and natural gas properties ( e.g . drilling and completion costs and other capital expenditures ) amounted to $ 156.0 million , while the actual cash spend in this regard amounted to $ 119.4 million . our cash spend for development and acquisition activities for the years ended december 31 , 2017 , 2016 and 2015 are summarized in the following table : replace_table_token_25_th development and acquisition activities are discretionary . we monitor our capital expenditures on a regular basis , adjusting the amount up or down , and between projects , depending on projected commodity prices , cash flows and returns . 56 cash flows ( used for ) provided by financing activities net cash provided by ( used for ) financing activities was $ 142.0 million , $ ( 7.8 ) million and $ 36.0 million for the years ended december 31 , 2017 , 2016 and 2015 , 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 flows used in investing activities we had cash flows used in investing activities of $ 119.2 million , $ 91.0 million and $ 288.9 million during the years ended december 31 , 2017 , 2016 and 2015 , respectively , primarily as a result of our capital expenditures for drilling , development and acquisition costs . the year-over-year increase in cash used in investing activities in 2017 was attributable to increased oil and gas development activities . in light of the lower price environment , oil and gas development activities were significantly lower in 2016 when compared to 2015 . during 2017 , 2016 and 2015 we added 16.9 , 10.7 and 18.6 net wells to production , respectively . our cash flows used in investing activities reflects actual cash spending , which can lag several months from when the related costs were incurred . as a result , our actual cash spending is not always reflective of current levels of development activity . for instance , during the year ended december 31 , 2017 , our capitalized costs incurred for oil and natural gas properties ( e.g . drilling and completion costs and other capital expenditures ) amounted to $ 156.0 million , while the actual cash spend in this regard amounted to $ 119.4 million . our cash spend for development and acquisition activities for the years ended december 31 , 2017 , 2016 and 2015 are summarized in the following table : replace_table_token_25_th development and acquisition activities are discretionary . we monitor our capital expenditures on a regular basis , adjusting the amount up or down , and between projects , depending on projected commodity prices , cash flows and returns . 56 cash flows ( used for ) provided by financing activities net cash provided by ( used for ) financing activities was $ 142.0 million , $ ( 7.8 ) million and $ 36.0 million for the years ended december 31 , 2017 , 2016 and 2015 , respectively . ``` Suspicious Activity Report : depreciation , depletion , amortization and impairment includes the systematic expensing of the capitalized costs incurred to acquire , explore and develop oil and natural gas properties . as a full cost company , we capitalize all costs associated with our development and acquisition efforts and allocate these costs to each unit of production using the units-of-production method . general and administrative expenses . general and administrative expenses include overhead , including payroll and benefits for our corporate staff , costs of maintaining our headquarters , costs of managing our acquisition and development operations , franchise taxes , audit and other professional fees and legal compliance . interest expense . we finance a portion of our working capital requirements , capital expenditures and acquisitions with borrowings . as a result , we incur interest expense that is affected by both fluctuations in interest rates and our financing decisions . we capitalize a portion of the interest paid on applicable borrowings into our full cost pool . we include interest expense that is not capitalized into the full cost pool , the amortization of deferred financing costs and bond premiums ( including origination and amendment fees ) , commitment fees and annual agency fees as interest expense . 45 income tax expense . our provision for taxes includes both federal and state taxes . we record our federal income taxes in accordance with accounting for income taxes under gaap which results in the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the book carrying amounts and the tax basis of assets and liabilities . deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carryforwards are expected to be recovered or settled . the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date . a valuation allowance is established to reduce deferred tax assets if it is more likely than not that the related tax benefits will not be realized . selected factors that affect our operating results our revenues , cash flows from operations and future growth depend substantially upon : the timing and success of drilling and production activities by our operating partners ; the prices and the supply and demand for oil , natural gas and ngls ; the quantity of oil and natural gas production from the wells in which we participate ; changes in the fair value of the derivative instruments we use to reduce our exposure to fluctuations in the price of oil ; our ability to continue to identify and acquire high-quality acreage and drilling opportunities ; and the level of our operating expenses . in addition to the factors that affect companies in our industry generally , the location of our acreage and wells in the williston basin subjects our operating results to factors specific to this region . these factors include the potential adverse impact of weather on drilling , production and transportation activities , particularly during the winter and spring months , and the limitations of the developing infrastructure and transportation capacity in this region . the price of oil in the williston basin can vary depending on the market in which it is sold and the means of transportation used to transport the oil to market . light sweet crude from the williston basin has a higher value at many major refining centers because of its higher quality relative to heavier and sour grades of oil ; however , because of north dakota 's location relative to traditional oil transport centers , this higher value is generally offset to some extent by higher transportation costs . while rail transportation has historically been more expensive than pipeline transportation , williston basin prices have at times justified shipment by rail to markets such as st. james , louisiana , which offers prices benchmarked to brent/lls . additional pipeline infrastructure during 2017 has increased takeaway capacity in the williston basin which has improved wellhead values in the region . the price at which our oil production is sold typically reflects a discount to the nymex benchmark price . thus , our operating results are also affected by changes in the oil price differentials between the nymex and the sales prices we receive for our oil production . our oil price differential to the nymex benchmark price during 2017 was $ 5.87 per barrel , as compared to $ 8.25 per barrel in 2016 . fluctuations in our oil price differential are due to several factors such as takeaway capacity relative to production levels in the williston basin , and seasonal refinery maintenance temporarily depressing crude demand . another significant factor affecting our operating results is drilling costs . the cost of drilling wells has varied significantly over the past few years as volatility in oil prices has substantially impacted the level of drilling activity in the williston basin . generally , higher oil prices have led to increased drilling activity , with the increased demand for drilling and completion services driving these costs higher . lower oil prices have generally had the opposite effect . in addition , individual components of the cost can vary depending on numerous factors such as the length of the horizontal lateral , the number of fracture stimulation stages , and the choice of proppant ( sand or ceramic ) . rig activity levels in 2017 increased from 2016 levels and a large percentage of our newer wells utilize higher intensity completion techniques . the higher intensity completions generally deliver the best returns in the current pricing environment but cost more due to increased materials and servicing costs . story_separator_special_tag net income ( loss ) is the most directly comparable gaap measure for both adjusted net income and adjusted ebitda , and tabular reconciliations for these measures are included below . we recorded a net loss of $ 9.2 million ( representing $ 0.15 per diluted share ) for 2017 , compared to a net loss of $ 293.5 million ( representing $ 4.80 per diluted share ) for 2016 and a net loss of $ 975.4 million ( representing $ 16.08 per diluted share ) for 2015 . we define adjusted net income as net income ( loss ) excluding ( i ) ( gain ) loss on the mark-to-market of derivative instruments , net of tax , ( ii ) restructuring costs , net of tax , ( iii ) impairment of oil and natural gas properties , net of tax , ( iv ) write-off of debt issuance costs , net of tax , ( v ) loss on the extinguishment of debt , net of tax , and ( vi ) certain legal settlements , net of tax . our adjusted net income for 2017 was $ 8.5 million ( representing $ 0.14 per diluted share ) as compared to adjusted net income for 2016 of $ 12.2 million ( representing $ 0.20 per diluted share ) and $ 47.6 million ( representing $ 0.78 per diluted share ) for 2015 . the decrease in adjusted net income in 2017 compared to 2016 was primarily due to lower realized commodity prices , and higher general and administrative expenses , production expenses and interest costs , which were partially offset by lower depletion expense and higher production volumes . the decrease in adjusted net income in 2016 compared to 2015 was primarily due to lower realized commodity prices and production volumes , as well as higher interest costs , which were partially offset by lower depletion expense and other operating expenses . we define adjusted ebitda as net income before ( i ) interest expense , ( ii ) income taxes , ( iii ) depreciation , depletion , amortization , and accretion , ( iv ) ( gain ) loss on the mark-to-market of derivative instruments , ( v ) non-cash share based compensation expense , ( vi ) write-off of debt issuance costs , ( vii ) loss on the extinguishment of debt , and ( viii ) impairment of oil and natural gas properties . adjusted ebitda for 2017 was $ 144.7 million , compared to adjusted ebitda of $ 148.5 million in 2016 and $ 277.3 million in 2015 . the decrease in adjusted ebitda in 2017 as compared to 2016 is primarily due to lower realized commodity prices and increased general and administrative expenses , partially offset by higher production volumes . the decrease in adjusted ebitda in 2016 as compared to 2015 was primarily due to lower realized commodity prices and lower production volumes . management believes the use of these non-gaap financial measures provides useful information to investors to gain an overall understanding of our current financial performance . specifically , management believes the non-gaap financial measures included herein provide useful information to both management and investors by excluding certain expenses and unrealized commodity gains and losses that our management believes are not indicative of our core operating results . in addition , these non-gaap financial measures are used by management for budgeting and forecasting as well as subsequently measuring our performance , and we believe that we are providing investors with financial measures that most closely align to our internal measurement processes . we consider these non-gaap measures to be useful in evaluating our core operating results as they more closely reflect our essential revenue generating activities and direct operating expenses ( resulting in cash expenditures ) needed to perform these revenue generating activities . our management also believes , based on feedback provided by the investment community , that the non-gaap financial measures are necessary to allow the investment community to construct its valuation models to better compare our results with our competitors and market sector . these measures should be considered in addition to results prepared in accordance with gaap . in addition , these non-gaap financial measures are not based on any comprehensive set of accounting rules or principles . we believe that non-gaap financial measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with gaap and that these measures should only be used to evaluate our results of operations in conjunction with the corresponding gaap financial measures . adjusted net income and adjusted ebitda are non-gaap measures . a reconciliation of these measures to gaap is included below : 52 reconciliation of adjusted net income replace_table_token_22_th _ ( 1 ) for the 2017 columns , this represents the tax impact using an estimated tax rate of 39.1 % and includes adjustments for changes in our valuation allowance of $ 3.7 million , excluding the impact for the tax cuts and jobs act that was enacted on december 22 , 2017. for 2016 and 2015 columns , this represents the tax impact using an estimated tax rate of 37.4 % for 2016 and 36.9 % for 2015 , and includes adjustments for changes in our valuation allowance of $ 109.0 million for 2016 , and $ 232.3 million for 2015 , respectively . 53 reconciliation of adjusted ebitda replace_table_token_23_th liquidity and capital resources overview our main sources of liquidity and capital resources as of the date of this report have been internally generated cash flow from operations , proceeds from senior unsecured notes , credit facility borrowings and cash settlements of derivative contracts . our primary uses of capital have been for the acquisition and development of our oil and gas properties . we continually monitor potential capital sources for opportunities to enhance liquidity or otherwise improve our financial position . one

as we became aware of this issue , we pulled what we believe to be all of the affected items from our stores , showrooms 22 and e-commerce sites and began working with our supplier to replace the fabric and with our other manufacturers to replace these items as quickly as possible . the lost revenue , additional costs expected to be incurred and the write down of affected product on hand from this issue will negatively impact our results from operations in fiscal 2013. we believe that our brand is recognized as premium in our offerings of run and yoga assortment , as well as a leader in technical fabrics and functionality . this has made our product desirable to our consumers and has driven demand , which we are able to meet given our increased product depth compared to last year . delivering quality to our customers is a critical factor in our market place differentiation and removing items that do not meet our standards is key to maintaining our brand reputation . in fiscal 2013 , we plan on investing in new and legacy information technology systems to develop new capabilities in our vertical retail strategy . we have recently added strong leadership in quality control , our liason office and our commercialization and development teams , and expect these people and other investments to solidify our quality consistency and our delivery capabilities . we believe our strong cash flow generation , solid balance sheet and healthy liquidity provide us with the financial flexibility to continue executing the initiatives which we believe will lead to quality growth . operating segment overview lululemon is a designer and retailer of technical athletic apparel operating primarily in north america and australia . our yoga-inspired apparel is marketed under the lululemon athletica and ivivva athletica brand names . we offer a comprehensive line of apparel and accessories including fitness pants , shorts , tops and jackets designed for athletic pursuits such as yoga , running and general fitness , and dance-inspired apparel for female youth . as of february 3 , 2013 , our branded apparel was principally sold through 211 corporate-owned stores that are located in the united states , canada , australia and new zealand and via our e-commerce websites through our direct to consumer sales channel . we believe our vertical retail strategy allows us to interact more directly with and gain insights from our customers while providing us with greater control of our brand . in fiscal 2012 , 61 % of our net revenue was derived from sales of our products in the united states , 34 % of our net revenue was derived from the sales of our products in canada and 5 % of our net revenue was derived from sales of our products outside of north america . in fiscal 2011 , 53 % of our net revenue was derived from sales of our products in the united states , 43 % of our net revenue was derived from the sales of our products in canada and 4 % of our net revenue was derived from sales of our products outside of north america . in fiscal 2010 , 46 % of our net revenue was derived from sales of our products in the united states , 52 % of our net revenue was derived from the sales of our products in canada and 2 % of our net revenue was derived from sales of our products outside of north america . our net revenue increased from $ 1,000.8 million in fiscal 2011 to $ 1,370.4 million in fiscal 2012 , representing a 37 % increase . our increase in net revenue from fiscal 2011 to fiscal 2012 resulted from the addition of 37 retail locations , and comparable store sales growth of 16 % in fiscal 2012 , excluding the impact of the 53rd week . our ability to open new stores and grow sales in existing stores has been driven by increasing demand for our technical athletic apparel and a growing recognition of the lululemon athletica brand . we believe our superior products , strategic store locations , inviting store environment , grassroots marketing approach and distinctive corporate culture are responsible for our strong financial performance . we have three reportable segments : corporate-owned stores , direct to consumer and other . we report our segments based on the financial information we use in managing our businesses . while we receive financial information for each corporate-owned store , we have aggregated all of the corporate-owned stores into one reportable segment due to the similarities in the economic and other characteristics of these stores . our corporate-owned stores segment accounted for 80 % of our net revenue in fiscal 2012 , 82 % in fiscal 2011 and 83 % in fiscal 2010. our direct to consumer segment accounted for 14 % of our net revenue in fiscal 2012 , 11 % in fiscal 2011 and 8 % in fiscal 2010. our other segment , consisting of franchise sales , wholesale accounts , sales from company-operated showrooms , warehouse sales and outlets , each accounted for less than 10 % of our net revenue in each of fiscal 2012 , fiscal 2011 and fiscal 2010. we previously reported our franchise channel as an operating segment ; however , we reacquired our remaining four franchised stores in fiscal 2011 and opening new franchise stores is not part of our growth strategy . 23 as of february 3 , 2013 , we sold our products through 211 corporate-owned stores located in , the united states , canada , australia , and new zealand . we plan to increase our net revenue in north america and australia by opening additional corporate-owned stores in new and existing markets . story_separator_special_tag income from operations before general corporate expenses for fiscal 2012 and fiscal 2011 are expressed in dollar amounts as well as percentages , presented as a percentage of net revenue of their respective operating segments below . replace_table_token_10_th 29 corporate-owned stores . income from operations from our corporate-owned stores segment increased $ 81.9 million , or 27 % , to $ 379.7 million for fiscal 2012 from $ 297.8 million for fiscal 2011 primarily due to an increase of $ 137.1 million in gross profit , which was offset partially by a natural increase in selling , general and administrative expenses related to employee costs as well as operating expenses associated with new stores and net revenue growth at existing stores . income from operations as a percentage of corporate-owned stores revenue decreased by 170 basis points primarily from a decrease in gross margin related to increased product costs . direct to consumer . income from operations from our direct to consumer segment increased $ 38.8 million , or 88 % , to $ 82.9 million in fiscal 2012 from $ 44.2 million in fiscal 2011 due to increased sales through our e-commerce website and the addition of regional websites , with gross profit increasing $ 56.2 over fiscal 2011. income from operations as a percentage of direct to consumer revenue increased by 50 basis points in fiscal 2012 compared to fiscal 2011 due to leverage on fixed costs . other . income from operations from our other segment decreased $ 3.7 million , or 18 % , to $ 17.4 million in fiscal 2012 from $ 21.1 million in fiscal 2011. the decrease was primarily the result of our reacquisition of our four remaining franchise stores during fiscal 2011 , as revenue from these stores is now included in our corporate-owned stores segment . we continue to employ our other segment strategy to increase interest in our product in markets we have not otherwise entered with corporate-owned stores . general corporate expense . general corporate expenses increased $ 27.4 million , or 36 % , to $ 103.5 million in fiscal 2012 from $ 76.1 million in fiscal 2011. this increase was primarily due to an increase in expenses related to our head office growth of $ 19.4 million , which was largely related to the growth of our information technology department for systems implementations and infrastructure investments , our human resources department as a result of the overall growth of our business , and increased professional fees related to investment in strategic initiatives and projects . general corporate expenses also increased as a result of increased stock-based compensation expense of $ 4.7 million and increased depreciation and amortization expense of $ 3.3 million . general corporate expenses are expected to continue to increase in future years as we grow our overall business and require increased efforts at our head office to support our corporate-owned stores , direct to consumer and other segments . other income ( expense ) , net other income ( expense ) , net increased $ 2.5 million , to $ 5.0 million in fiscal 2012 from $ 2.5 million in fiscal 2011. the increase was primarily a result of increased interest income earned in fiscal 2012 compared to fiscal 2011 on our increased cash balances . provision for income taxes provision for income taxes increased $ 5.5 million , or 5 % , to $ 110.0 million in fiscal 2012 from $ 104.5 million in fiscal 2011. in fiscal 2012 , our effective tax rate was 28.8 % compared to 36.1 % in fiscal 2011. the lower effective tax rate was due to the ongoing impact of revised intercompany pricing agreements . we have not recorded deferred taxes on undistributed earnings and other temporary differences of our canadian subsidiary which are considered to be indefinitely reinvested . if management 's intentions with respect to these undistributed earnings and other temporary differences were to change in the future , deferred taxes may need to be provided that could materially impact our financial results . net income net income increased $ 86.5 million , or 47 % , to $ 270.6 million in fiscal 2012 from $ 184.1 million in fiscal 2011. the increase in net income in fiscal 2012 was primarily due to a $ 193.5 million increase in gross profit resulting from sales growth at existing and additional corporate-owned stores opened during fiscal 2012 and 30 increasing traffic on our e-commerce website and the addition of regional websites and a $ 2.5 million increase in other income ( expense ) , net , offset by an increase of $ 104.0 million in selling , general and administrative expenses , and an increase of $ 5.5 million in provision for income taxes . comparison of fiscal 2011 to fiscal 2010 net revenue net revenue increased $ 289.1 million , or 41 % , to $ 1,000.8 million in fiscal 2011 from $ 711.7 million in fiscal 2010. assuming the average exchange rate between the canadian and united states dollars and the australian and united states dollars in fiscal 2010 remained constant , our net revenue would have increased $ 274.7 million , or 39 % , in fiscal 2011. the net revenue increase was driven by increased sales at locations in our comparable stores base , sales from new stores opened , sales from franchised stores that were reacquired during fiscal 2011 and the growth of our direct to consumer segment . the constant dollar increase in comparable store sales was driven primarily by the strength of our existing product lines , successful introduction of new products and increasing recognition of the lululemon athletica brand name , especially at our u.s. stores . our net revenue on a segment basis for fiscal 2011 and fiscal 2010 are expressed in dollar amounts as well as relevant percentages , presented as a percentage of total net revenue below . replace_table_token_11_th corporate-owned stores . net revenue from our

liquidity and capital resources our primary sources of liquidity are our current balances of cash and cash equivalents , cash flows from operations and borrowings available under our revolving credit facility . our primary cash needs are capital expenditures for opening new stores and remodeling existing stores , making information technology system enhancements and funding working capital requirements . cash and cash equivalents in excess of our needs are held in interest bearing accounts with financial institutions . as of february 3 , 2013 , our working capital ( excluding cash and cash equivalents ) was $ 63.5 million and our cash and cash equivalents were $ 590.2 million . the following table summarizes our net cash flows provided by and used in operating , investing and financing activities for the periods indicated : replace_table_token_13_th operating activities operating activities consist primarily of net income adjusted for certain non-cash items , including depreciation and amortization , deferred income taxes , realized gains and losses on disposal of property and equipment , stock-based compensation expense and the effect of the changes in non-cash working capital items , principally accounts receivable , inventories , accounts payable and accrued expenses . in fiscal 2012 , cash provided by operating activities increased $ 76.5 million , to $ 280.1 million compared to cash provided by operating activities of $ 203.6 million in fiscal 2011. the increase was primarily a result of increased net income , an increase in items not affecting cash , and an increase in income taxes payable , offset by decreased accounts payable . the net increase in items not affecting cash was primarily due to an increase in depreciation and amortization related to our increased store base , and an increase in stock-based compensation . depreciation and amortization relate almost entirely to leasehold improvements , furniture and fixtures , computer hardware and software , equipment and vehicles in our stores and other corporate buildings .

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 sources of liquidity are our current balances of cash and cash equivalents , cash flows from operations and borrowings available under our revolving credit facility . our primary cash needs are capital expenditures for opening new stores and remodeling existing stores , making information technology system enhancements and funding working capital requirements . cash and cash equivalents in excess of our needs are held in interest bearing accounts with financial institutions . as of february 3 , 2013 , our working capital ( excluding cash and cash equivalents ) was $ 63.5 million and our cash and cash equivalents were $ 590.2 million . the following table summarizes our net cash flows provided by and used in operating , investing and financing activities for the periods indicated : replace_table_token_13_th operating activities operating activities consist primarily of net income adjusted for certain non-cash items , including depreciation and amortization , deferred income taxes , realized gains and losses on disposal of property and equipment , stock-based compensation expense and the effect of the changes in non-cash working capital items , principally accounts receivable , inventories , accounts payable and accrued expenses . in fiscal 2012 , cash provided by operating activities increased $ 76.5 million , to $ 280.1 million compared to cash provided by operating activities of $ 203.6 million in fiscal 2011. the increase was primarily a result of increased net income , an increase in items not affecting cash , and an increase in income taxes payable , offset by decreased accounts payable . the net increase in items not affecting cash was primarily due to an increase in depreciation and amortization related to our increased store base , and an increase in stock-based compensation . depreciation and amortization relate almost entirely to leasehold improvements , furniture and fixtures , computer hardware and software , equipment and vehicles in our stores and other corporate buildings . ``` Suspicious Activity Report : as we became aware of this issue , we pulled what we believe to be all of the affected items from our stores , showrooms 22 and e-commerce sites and began working with our supplier to replace the fabric and with our other manufacturers to replace these items as quickly as possible . the lost revenue , additional costs expected to be incurred and the write down of affected product on hand from this issue will negatively impact our results from operations in fiscal 2013. we believe that our brand is recognized as premium in our offerings of run and yoga assortment , as well as a leader in technical fabrics and functionality . this has made our product desirable to our consumers and has driven demand , which we are able to meet given our increased product depth compared to last year . delivering quality to our customers is a critical factor in our market place differentiation and removing items that do not meet our standards is key to maintaining our brand reputation . in fiscal 2013 , we plan on investing in new and legacy information technology systems to develop new capabilities in our vertical retail strategy . we have recently added strong leadership in quality control , our liason office and our commercialization and development teams , and expect these people and other investments to solidify our quality consistency and our delivery capabilities . we believe our strong cash flow generation , solid balance sheet and healthy liquidity provide us with the financial flexibility to continue executing the initiatives which we believe will lead to quality growth . operating segment overview lululemon is a designer and retailer of technical athletic apparel operating primarily in north america and australia . our yoga-inspired apparel is marketed under the lululemon athletica and ivivva athletica brand names . we offer a comprehensive line of apparel and accessories including fitness pants , shorts , tops and jackets designed for athletic pursuits such as yoga , running and general fitness , and dance-inspired apparel for female youth . as of february 3 , 2013 , our branded apparel was principally sold through 211 corporate-owned stores that are located in the united states , canada , australia and new zealand and via our e-commerce websites through our direct to consumer sales channel . we believe our vertical retail strategy allows us to interact more directly with and gain insights from our customers while providing us with greater control of our brand . in fiscal 2012 , 61 % of our net revenue was derived from sales of our products in the united states , 34 % of our net revenue was derived from the sales of our products in canada and 5 % of our net revenue was derived from sales of our products outside of north america . in fiscal 2011 , 53 % of our net revenue was derived from sales of our products in the united states , 43 % of our net revenue was derived from the sales of our products in canada and 4 % of our net revenue was derived from sales of our products outside of north america . in fiscal 2010 , 46 % of our net revenue was derived from sales of our products in the united states , 52 % of our net revenue was derived from the sales of our products in canada and 2 % of our net revenue was derived from sales of our products outside of north america . our net revenue increased from $ 1,000.8 million in fiscal 2011 to $ 1,370.4 million in fiscal 2012 , representing a 37 % increase . our increase in net revenue from fiscal 2011 to fiscal 2012 resulted from the addition of 37 retail locations , and comparable store sales growth of 16 % in fiscal 2012 , excluding the impact of the 53rd week . our ability to open new stores and grow sales in existing stores has been driven by increasing demand for our technical athletic apparel and a growing recognition of the lululemon athletica brand . we believe our superior products , strategic store locations , inviting store environment , grassroots marketing approach and distinctive corporate culture are responsible for our strong financial performance . we have three reportable segments : corporate-owned stores , direct to consumer and other . we report our segments based on the financial information we use in managing our businesses . while we receive financial information for each corporate-owned store , we have aggregated all of the corporate-owned stores into one reportable segment due to the similarities in the economic and other characteristics of these stores . our corporate-owned stores segment accounted for 80 % of our net revenue in fiscal 2012 , 82 % in fiscal 2011 and 83 % in fiscal 2010. our direct to consumer segment accounted for 14 % of our net revenue in fiscal 2012 , 11 % in fiscal 2011 and 8 % in fiscal 2010. our other segment , consisting of franchise sales , wholesale accounts , sales from company-operated showrooms , warehouse sales and outlets , each accounted for less than 10 % of our net revenue in each of fiscal 2012 , fiscal 2011 and fiscal 2010. we previously reported our franchise channel as an operating segment ; however , we reacquired our remaining four franchised stores in fiscal 2011 and opening new franchise stores is not part of our growth strategy . 23 as of february 3 , 2013 , we sold our products through 211 corporate-owned stores located in , the united states , canada , australia , and new zealand . we plan to increase our net revenue in north america and australia by opening additional corporate-owned stores in new and existing markets . story_separator_special_tag income from operations before general corporate expenses for fiscal 2012 and fiscal 2011 are expressed in dollar amounts as well as percentages , presented as a percentage of net revenue of their respective operating segments below . replace_table_token_10_th 29 corporate-owned stores . income from operations from our corporate-owned stores segment increased $ 81.9 million , or 27 % , to $ 379.7 million for fiscal 2012 from $ 297.8 million for fiscal 2011 primarily due to an increase of $ 137.1 million in gross profit , which was offset partially by a natural increase in selling , general and administrative expenses related to employee costs as well as operating expenses associated with new stores and net revenue growth at existing stores . income from operations as a percentage of corporate-owned stores revenue decreased by 170 basis points primarily from a decrease in gross margin related to increased product costs . direct to consumer . income from operations from our direct to consumer segment increased $ 38.8 million , or 88 % , to $ 82.9 million in fiscal 2012 from $ 44.2 million in fiscal 2011 due to increased sales through our e-commerce website and the addition of regional websites , with gross profit increasing $ 56.2 over fiscal 2011. income from operations as a percentage of direct to consumer revenue increased by 50 basis points in fiscal 2012 compared to fiscal 2011 due to leverage on fixed costs . other . income from operations from our other segment decreased $ 3.7 million , or 18 % , to $ 17.4 million in fiscal 2012 from $ 21.1 million in fiscal 2011. the decrease was primarily the result of our reacquisition of our four remaining franchise stores during fiscal 2011 , as revenue from these stores is now included in our corporate-owned stores segment . we continue to employ our other segment strategy to increase interest in our product in markets we have not otherwise entered with corporate-owned stores . general corporate expense . general corporate expenses increased $ 27.4 million , or 36 % , to $ 103.5 million in fiscal 2012 from $ 76.1 million in fiscal 2011. this increase was primarily due to an increase in expenses related to our head office growth of $ 19.4 million , which was largely related to the growth of our information technology department for systems implementations and infrastructure investments , our human resources department as a result of the overall growth of our business , and increased professional fees related to investment in strategic initiatives and projects . general corporate expenses also increased as a result of increased stock-based compensation expense of $ 4.7 million and increased depreciation and amortization expense of $ 3.3 million . general corporate expenses are expected to continue to increase in future years as we grow our overall business and require increased efforts at our head office to support our corporate-owned stores , direct to consumer and other segments . other income ( expense ) , net other income ( expense ) , net increased $ 2.5 million , to $ 5.0 million in fiscal 2012 from $ 2.5 million in fiscal 2011. the increase was primarily a result of increased interest income earned in fiscal 2012 compared to fiscal 2011 on our increased cash balances . provision for income taxes provision for income taxes increased $ 5.5 million , or 5 % , to $ 110.0 million in fiscal 2012 from $ 104.5 million in fiscal 2011. in fiscal 2012 , our effective tax rate was 28.8 % compared to 36.1 % in fiscal 2011. the lower effective tax rate was due to the ongoing impact of revised intercompany pricing agreements . we have not recorded deferred taxes on undistributed earnings and other temporary differences of our canadian subsidiary which are considered to be indefinitely reinvested . if management 's intentions with respect to these undistributed earnings and other temporary differences were to change in the future , deferred taxes may need to be provided that could materially impact our financial results . net income net income increased $ 86.5 million , or 47 % , to $ 270.6 million in fiscal 2012 from $ 184.1 million in fiscal 2011. the increase in net income in fiscal 2012 was primarily due to a $ 193.5 million increase in gross profit resulting from sales growth at existing and additional corporate-owned stores opened during fiscal 2012 and 30 increasing traffic on our e-commerce website and the addition of regional websites and a $ 2.5 million increase in other income ( expense ) , net , offset by an increase of $ 104.0 million in selling , general and administrative expenses , and an increase of $ 5.5 million in provision for income taxes . comparison of fiscal 2011 to fiscal 2010 net revenue net revenue increased $ 289.1 million , or 41 % , to $ 1,000.8 million in fiscal 2011 from $ 711.7 million in fiscal 2010. assuming the average exchange rate between the canadian and united states dollars and the australian and united states dollars in fiscal 2010 remained constant , our net revenue would have increased $ 274.7 million , or 39 % , in fiscal 2011. the net revenue increase was driven by increased sales at locations in our comparable stores base , sales from new stores opened , sales from franchised stores that were reacquired during fiscal 2011 and the growth of our direct to consumer segment . the constant dollar increase in comparable store sales was driven primarily by the strength of our existing product lines , successful introduction of new products and increasing recognition of the lululemon athletica brand name , especially at our u.s. stores . our net revenue on a segment basis for fiscal 2011 and fiscal 2010 are expressed in dollar amounts as well as relevant percentages , presented as a percentage of total net revenue below . replace_table_token_11_th corporate-owned stores . net revenue from our

however , there can be no assurance that we will achieve or maintain profitability on a consistent basis , that we will increase our sales to new and existing customers , or that our operating expenses will increase at a lower rate than our revenue may grow . covid-19 update our first priority remains ensuring the safety and health of our employees , customers and others with whom we partner in conducting our business . in response to the pandemic , and in line with guidance provided by government agencies and international organizations , we temporarily closed substantially all of our offices and requested our employees work remotely , suspended all non-essential travel and activated our business continuity plan so we can continue to support customers while protecting our employees . we continue , in the vast majority of instances , to operate our business remotely . we have also moved all in-person customer-facing events to virtual ones . to date , the pandemic , which has affected nearly all regions around the world , and preventive measures taken to contain or mitigate the pandemic , are adversely impacting economic activity and have 60 caused and may continue to cause significant disruptions in the financial markets . the covid-19 pandemic and resulting economic uncertainty has negatively impacted our business and we anticipate that it will continue to have an adverse impact on our results of operations and financial performance . we can not predict with any certainty the degree to , or the time period over , which we will be affected by this pandemic . while we believe the pandemic has had certain impacts on our business , we do not believe there has been , nor are we anticipating , a material impact from the effects of the pandemic on our operations , financial condition , liquidity and capital and financial resources ; however , the situation is rapidly changing and hard to predict and actual results may differ materially from our current expectations . the broader implications of the covid-19 pandemic on our results of operations and overall financial performance remain uncertain , particularly because the full extent to which the covid-19 pandemic may impact our results of operations and financial performance will depend on future developments , which are highly uncertain and can not be predicted , including but not limited to , the duration and geographic spread of the pandemic , its severity , the actions to contain the virus or treat its impact , and how quickly and to what extent normal economic and operating conditions can resume . we have experienced and expect to continue to experience curtailed customer demand that could adversely impact our business , results of operations and overall financial performance in future periods . specifically , we have experienced and expect to continue to experience impacts from reduced it budgets of customers and potential customers resulting in deferred purchase decisions , delayed implementation of our products , reduced renewals of subscriptions by existing customers , and decreases in software license sales driven by channel partners . we also have experienced challenges in creating sales pipeline in the absence of in-person marketing events . we have seen and may see in the future a slowing in our collections of outstanding accounts receivable as a result of requested changes in billing terms from some of our customers . moreover , because of our subscription-based business model , the effect of the covid-19 pandemic will not be fully reflected in our results of operations and overall financial performance until future periods . there has been no impact to our financial reporting systems , internal control over financial reporting , or any disclosure controls or procedures . even after the covid-19 pandemic has subsided , we may continue to experience an adverse impact to our business as a result of its global economic impact , including any recession that has occurred or may occur in the future . specifically , difficult macroeconomic conditions , such as decreases in per capita income and levels of disposable income , increased and prolonged unemployment or a decline in business confidence and business investment , particularly in information technology , as a result of the covid-19 pandemic , could have a continuing adverse effect on the demand for some of our offerings . the degree of impact of the covid-19 pandemic on our business will depend on several factors , such as the duration and the extent of the pandemic , as well as actions taken by governments , businesses and others in response to the pandemic , all of which continue to evolve and remain uncertain at this time . we have established a task force to actively monitor the ongoing covid-19 pandemic situation and provide updates , current information , and support to our employees . we remain committed to serving our customers ' needs and to providing creative and flexible customer support . we may take further actions that alter our business operations as may be required by federal , state or local authorities or that we determine are in the best interests of our employees , customers , partners , and shareholders . see the risk factors section for further discussion of the possible impact of the covid-19 pandemic on our business . key factors affecting our performance expansion within existing customers . our business model relies on rapidly and efficiently winning new customers and expanding our relationship with these customers over time . we have designed our platform for ease-of-use and with strong integrations between apps to encourage broad adoption within organizations . story_separator_special_tag we believe that cac effectively measures the cost required to generate a dollar of net new business and we believe provides useful insight to our investors about the efficiency of our sales and marketing activities . the following table shows our cac on a quarterly basis since december 31 , 2019 and a reconciliation to the most directly comparable gaap measure for such periods . the sales and marketing expense , as reported on a gaap and non-gaap basis , are each presented on a trailing twelve month basis in the following table . replace_table_token_9_th ( 1 ) other expenses include expenses related to the reorganization of our business model in emerging markets . key components of results of operations revenue we primarily derive our revenue from the sale of subscriptions and professional services engagements . subscription revenue . subscription revenue consists of fees earned from arrangements to provide customers with the right to use our commercial software either in a cloud-based infrastructure that we provide or installed within the customer 's own environment . our subscriptions include unspecified future updates , upgrades and enhancements and technical product support . premium support and access to our on-demand training portal is also available as a subscription . subscription fees are based primarily on the number of users of our software and to a lesser extent data processing . our subscription-based arrangements generally have a minimum contractual term of one year and are generally invoiced in advance for the full subscription term . subscription fees are generally non-refundable regardless of the actual use of the service . professional services revenue . professional services revenue consists of fees earned for consulting engagements related to the deployment and configuration of our product offering , training customers and associated expenses . these engagements are generally provided by our own team of specialized consultants or by third-party consultants to whom we contract on a periodic basis . consulting engagements consist of time-based arrangements for which the revenue is recognized using a time and material basis . training revenue results from contracts to provide educational services to customers and partners regarding the use of our technologies and is recognized as delivered . we expect our professional services revenue may decline , as we work with more systems integrators , who assist our customers with the implementation of our solutions , and as our cloud offerings increase because cloud customers typically demand fewer professional services . cost of revenue cost of subscription revenue . cost of subscription revenue consists primarily of employee-related costs , including salaries and bonuses , share-based payment expenses and employee benefit costs associated with our customer support organization . it also includes expenses related to hosting and operating our cloud infrastructure , licensing of third-party intellectual property and related overhead . we use third-party cloud platform providers to provide our cloud solution . we allocate overhead such as 66 information technology infrastructure , rent and occupancy charges in each expense category based on headcount in that category . as such , general overhead expenses are reflected in cost of subscription revenue and operating expense categories . we intend to continue to invest additional resources in our cloud offerings and services . we expect that the cost of hosting fees to provide our cloud offerings will increase over time as we sell more of our cloud integration products . the timing of these expenses will affect our cost of subscription revenue in the affected periods . cost of professional services revenue . cost of professional services revenue consists primarily of personnel costs for employees including salaries and bonuses , share-based payment expenses and employee benefit costs and fees to external consultants associated with our professional service contracts , travel costs and allocated shared costs . we allocate overhead such as information technology infrastructure , rent and occupancy charges in each expense category based on headcount in that category . as such , general overhead expenses are reflected in the cost of professional services revenue and operating expense categories . gross profit and gross margin gross profit is total revenue less total cost of revenue . gross margin is gross profit expressed as a percentage of total revenue . we expect that our gross margin may fluctuate from period to period as a result of changes in the mix of our subscription and professional services revenue . over time , we expect revenue from our cloud integration business to grow as a percentage of our total revenue . as a result , the cost of hosting fees to third-party cloud infrastructure providers , as a percentage of revenue , will increase , which may affect our gross margin . operating expenses our operating expenses are classified as sales and marketing , research and development and general and administrative . for each functional category , the largest component is employee and labor-related expenses , which include salaries and bonuses , sales commissions , share-based payment expense , employee benefit costs and contractor costs . we allocate overhead such as information technology infrastructure , rent and occupancy charges in each expense category based on headcount in that category . sales and marketing . sales and marketing expenses consist primarily of salaries , sales commissions and related expenses , including share-based payment expense , for our sales and marketing employees , marketing programs and related overhead . our sales and marketing employees include quota carrying headcount , sales administration , sales engineering , marketing and management . marketing programs consist of advertising , promotional events , corporate communications , brand building , product marketing activities such as online lead generation , and developing sales strategies that emphasize particular products or services . we plan to continue to invest in sales and marketing by expanding our global promotional activities , building brand awareness , attracting new customers and sponsoring additional marketing events . the timing of these events , such as our annual sales kickoff , will affect our sales

liquidity and capital resources replace_table_token_16_th through december 31 , 2020 , we have financed our operations primarily through cash received from customers for subscriptions of our software and professional services , as well as equity and equity-linked financings . in 2019 , we received net proceeds , after deducting discounts and commission to the initial purchasers and issuance expenses , of $ 147.5 million from the issuance of our 2024 notes . in connection with the issuance of our 2024 notes , we terminated our secured revolving credit facility . as of december 31 , 2020 , we had $ 162.9 million of cash and cash equivalents . we believe that our current cash and cash equivalents will be sufficient to meet our working capital and capital expenditure requirements for the foreseeable future , despite the uncertainty in the changing market and economic conditions resulting from the covid-19 pandemic . our future capital requirements will depend on many factors , including our growth rate , and the timing and extent of our spending to support our operating expenses and strategic investments . in the event that we require or choose to seek financing from outside sources , we may not be able to raise such financing on terms acceptable to us or at all . if we are unable to raise additional capital when needed or desired , our business , results of operations and financial condition could be adversely affected .

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_16_th through december 31 , 2020 , we have financed our operations primarily through cash received from customers for subscriptions of our software and professional services , as well as equity and equity-linked financings . in 2019 , we received net proceeds , after deducting discounts and commission to the initial purchasers and issuance expenses , of $ 147.5 million from the issuance of our 2024 notes . in connection with the issuance of our 2024 notes , we terminated our secured revolving credit facility . as of december 31 , 2020 , we had $ 162.9 million of cash and cash equivalents . we believe that our current cash and cash equivalents will be sufficient to meet our working capital and capital expenditure requirements for the foreseeable future , despite the uncertainty in the changing market and economic conditions resulting from the covid-19 pandemic . our future capital requirements will depend on many factors , including our growth rate , and the timing and extent of our spending to support our operating expenses and strategic investments . in the event that we require or choose to seek financing from outside sources , we may not be able to raise such financing on terms acceptable to us or at all . if we are unable to raise additional capital when needed or desired , our business , results of operations and financial condition could be adversely affected . ``` Suspicious Activity Report : however , there can be no assurance that we will achieve or maintain profitability on a consistent basis , that we will increase our sales to new and existing customers , or that our operating expenses will increase at a lower rate than our revenue may grow . covid-19 update our first priority remains ensuring the safety and health of our employees , customers and others with whom we partner in conducting our business . in response to the pandemic , and in line with guidance provided by government agencies and international organizations , we temporarily closed substantially all of our offices and requested our employees work remotely , suspended all non-essential travel and activated our business continuity plan so we can continue to support customers while protecting our employees . we continue , in the vast majority of instances , to operate our business remotely . we have also moved all in-person customer-facing events to virtual ones . to date , the pandemic , which has affected nearly all regions around the world , and preventive measures taken to contain or mitigate the pandemic , are adversely impacting economic activity and have 60 caused and may continue to cause significant disruptions in the financial markets . the covid-19 pandemic and resulting economic uncertainty has negatively impacted our business and we anticipate that it will continue to have an adverse impact on our results of operations and financial performance . we can not predict with any certainty the degree to , or the time period over , which we will be affected by this pandemic . while we believe the pandemic has had certain impacts on our business , we do not believe there has been , nor are we anticipating , a material impact from the effects of the pandemic on our operations , financial condition , liquidity and capital and financial resources ; however , the situation is rapidly changing and hard to predict and actual results may differ materially from our current expectations . the broader implications of the covid-19 pandemic on our results of operations and overall financial performance remain uncertain , particularly because the full extent to which the covid-19 pandemic may impact our results of operations and financial performance will depend on future developments , which are highly uncertain and can not be predicted , including but not limited to , the duration and geographic spread of the pandemic , its severity , the actions to contain the virus or treat its impact , and how quickly and to what extent normal economic and operating conditions can resume . we have experienced and expect to continue to experience curtailed customer demand that could adversely impact our business , results of operations and overall financial performance in future periods . specifically , we have experienced and expect to continue to experience impacts from reduced it budgets of customers and potential customers resulting in deferred purchase decisions , delayed implementation of our products , reduced renewals of subscriptions by existing customers , and decreases in software license sales driven by channel partners . we also have experienced challenges in creating sales pipeline in the absence of in-person marketing events . we have seen and may see in the future a slowing in our collections of outstanding accounts receivable as a result of requested changes in billing terms from some of our customers . moreover , because of our subscription-based business model , the effect of the covid-19 pandemic will not be fully reflected in our results of operations and overall financial performance until future periods . there has been no impact to our financial reporting systems , internal control over financial reporting , or any disclosure controls or procedures . even after the covid-19 pandemic has subsided , we may continue to experience an adverse impact to our business as a result of its global economic impact , including any recession that has occurred or may occur in the future . specifically , difficult macroeconomic conditions , such as decreases in per capita income and levels of disposable income , increased and prolonged unemployment or a decline in business confidence and business investment , particularly in information technology , as a result of the covid-19 pandemic , could have a continuing adverse effect on the demand for some of our offerings . the degree of impact of the covid-19 pandemic on our business will depend on several factors , such as the duration and the extent of the pandemic , as well as actions taken by governments , businesses and others in response to the pandemic , all of which continue to evolve and remain uncertain at this time . we have established a task force to actively monitor the ongoing covid-19 pandemic situation and provide updates , current information , and support to our employees . we remain committed to serving our customers ' needs and to providing creative and flexible customer support . we may take further actions that alter our business operations as may be required by federal , state or local authorities or that we determine are in the best interests of our employees , customers , partners , and shareholders . see the risk factors section for further discussion of the possible impact of the covid-19 pandemic on our business . key factors affecting our performance expansion within existing customers . our business model relies on rapidly and efficiently winning new customers and expanding our relationship with these customers over time . we have designed our platform for ease-of-use and with strong integrations between apps to encourage broad adoption within organizations . story_separator_special_tag we believe that cac effectively measures the cost required to generate a dollar of net new business and we believe provides useful insight to our investors about the efficiency of our sales and marketing activities . the following table shows our cac on a quarterly basis since december 31 , 2019 and a reconciliation to the most directly comparable gaap measure for such periods . the sales and marketing expense , as reported on a gaap and non-gaap basis , are each presented on a trailing twelve month basis in the following table . replace_table_token_9_th ( 1 ) other expenses include expenses related to the reorganization of our business model in emerging markets . key components of results of operations revenue we primarily derive our revenue from the sale of subscriptions and professional services engagements . subscription revenue . subscription revenue consists of fees earned from arrangements to provide customers with the right to use our commercial software either in a cloud-based infrastructure that we provide or installed within the customer 's own environment . our subscriptions include unspecified future updates , upgrades and enhancements and technical product support . premium support and access to our on-demand training portal is also available as a subscription . subscription fees are based primarily on the number of users of our software and to a lesser extent data processing . our subscription-based arrangements generally have a minimum contractual term of one year and are generally invoiced in advance for the full subscription term . subscription fees are generally non-refundable regardless of the actual use of the service . professional services revenue . professional services revenue consists of fees earned for consulting engagements related to the deployment and configuration of our product offering , training customers and associated expenses . these engagements are generally provided by our own team of specialized consultants or by third-party consultants to whom we contract on a periodic basis . consulting engagements consist of time-based arrangements for which the revenue is recognized using a time and material basis . training revenue results from contracts to provide educational services to customers and partners regarding the use of our technologies and is recognized as delivered . we expect our professional services revenue may decline , as we work with more systems integrators , who assist our customers with the implementation of our solutions , and as our cloud offerings increase because cloud customers typically demand fewer professional services . cost of revenue cost of subscription revenue . cost of subscription revenue consists primarily of employee-related costs , including salaries and bonuses , share-based payment expenses and employee benefit costs associated with our customer support organization . it also includes expenses related to hosting and operating our cloud infrastructure , licensing of third-party intellectual property and related overhead . we use third-party cloud platform providers to provide our cloud solution . we allocate overhead such as 66 information technology infrastructure , rent and occupancy charges in each expense category based on headcount in that category . as such , general overhead expenses are reflected in cost of subscription revenue and operating expense categories . we intend to continue to invest additional resources in our cloud offerings and services . we expect that the cost of hosting fees to provide our cloud offerings will increase over time as we sell more of our cloud integration products . the timing of these expenses will affect our cost of subscription revenue in the affected periods . cost of professional services revenue . cost of professional services revenue consists primarily of personnel costs for employees including salaries and bonuses , share-based payment expenses and employee benefit costs and fees to external consultants associated with our professional service contracts , travel costs and allocated shared costs . we allocate overhead such as information technology infrastructure , rent and occupancy charges in each expense category based on headcount in that category . as such , general overhead expenses are reflected in the cost of professional services revenue and operating expense categories . gross profit and gross margin gross profit is total revenue less total cost of revenue . gross margin is gross profit expressed as a percentage of total revenue . we expect that our gross margin may fluctuate from period to period as a result of changes in the mix of our subscription and professional services revenue . over time , we expect revenue from our cloud integration business to grow as a percentage of our total revenue . as a result , the cost of hosting fees to third-party cloud infrastructure providers , as a percentage of revenue , will increase , which may affect our gross margin . operating expenses our operating expenses are classified as sales and marketing , research and development and general and administrative . for each functional category , the largest component is employee and labor-related expenses , which include salaries and bonuses , sales commissions , share-based payment expense , employee benefit costs and contractor costs . we allocate overhead such as information technology infrastructure , rent and occupancy charges in each expense category based on headcount in that category . sales and marketing . sales and marketing expenses consist primarily of salaries , sales commissions and related expenses , including share-based payment expense , for our sales and marketing employees , marketing programs and related overhead . our sales and marketing employees include quota carrying headcount , sales administration , sales engineering , marketing and management . marketing programs consist of advertising , promotional events , corporate communications , brand building , product marketing activities such as online lead generation , and developing sales strategies that emphasize particular products or services . we plan to continue to invest in sales and marketing by expanding our global promotional activities , building brand awareness , attracting new customers and sponsoring additional marketing events . the timing of these events , such as our annual sales kickoff , will affect our sales

the company provides these services to its clients under annual client service contracts , although such contracts are generally cancelable on short or no notice without penalty . the company also derives some revenue from its custom and other research projects . services are provided under subscription-based service agreements . the company recognizes subscription-based service revenue over the period of time the service is provided . generally , the subscription periods are for twelve months and revenue is recognized equally over the subscription period . certain contracts are fixed-fee arrangements with a portion of the project fee billed in advance and the remainder billed periodically over the duration of the project . revenue and direct expenses for services provided under these contracts are recognized under the proportional performance method . under the proportional performance method , the company recognizes revenue based on output measures or key milestones such as survey set-up , survey mailings , survey returns and reporting . the company measures its progress based on the level of completion of these output measures and recognizes revenue accordingly . management judgments and estimates must be made and used in connection with revenue recognized using the proportional performance method . if management made different judgments and estimates , then the amount and timing of revenue for any period could differ materially from the reported revenue . the company also derives revenue from hosting arrangements where our propriety software is offered as a service to our customers through our data processing facilities . the company 's revenue also includes software-related revenue for software license revenue , installation services , post-contract support ( maintenance ) and training . software-related revenue is recognized in accordance with the provisions of accounting standards codification ( “ asc ” ) 985-605 , software-revenue recognition . hosting arrangements to provide customers with access to the company 's propriety software are marketed under long-term arrangements , generally over periods of one to three years . under these arrangements , the customer is not provided the contractual right to take possession of the licensed software at any time during the hosting period without significant penalty , and the customer is not provided the right to run the software on their own hardware or contract with another party unrelated to us to host the software . upfront fees for set-up services are typically billed for our hosting arrangements . however , these arrangements do not qualify for separation from the ongoing hosting services due to the absence of standalone value for the set-up services . therefore , we account for these arrangements as service contracts and recognize revenue ratably over the hosting service period when all other conditions to revenue are met . other conditions that must be met before the commencement of revenue recognition include achieving evidence of an arrangement , determining that the collection of the revenue is probable , and determining that fees are fixed and determinable . the company 's software arrangements typically involve the sale of a time-based license bundled with installation services , post-contract support ( “ pcs ” ) and training . license terms range from one year to three years and require an annual fee for bundled elements of the arrangement . pcs is also contractually provided for a period that is co-terminus with the term of the time-based license . the company 's installation services are not considered to be essential to the functionality of the software license . the company does not achieve vendor-specific objective evidence ( “ vsoe ” ) of the fair value of the undelivered elements of its software arrangements ( primarily pcs ) and , therefore , these arrangements are accounted for as a single unit of accounting with revenue recognized ratably over the minimum bundled pcs period . 18 the company 's revenue arrangements ( not involving software elements ) may include multiple elements . in assessing the separation of revenue for elements of such arrangements , we first determine whether each delivered element has standalone value based on whether we or other vendors sell the services separately . we also consider whether there is sufficient evidence of the fair value of the elements in allocating the fees in the arrangement to each element . revenue allocated to an element is limited to revenue that is not subject to refund or otherwise represents contingent revenue . on january 1 , 2011 , the company prospectively adopted accounting standard update ( “ asu ” ) 2009-13 , revenue recognition ( topic 605 ) : multiple-deliverable revenue arrangements ( asu 2009-13 ) . for arrangements entered into or materially modified beginning january 1 , 2011 , we allocated revenue to arrangements with multiple elements based on relative selling price using a selling price hierarchy . the selling price for a deliverable is based on its vsoe if it exists , otherwise third-party evidence of selling price . if neither exists for a deliverable , the best estimate of the selling price is used for that deliverable based on list price , representing a component of management 's market strategy , and an analysis of historical prices for bundled and standalone arrangements . valuation of goodwill and identifiable intangible assets intangible assets include customer relationships , trade names , non-compete agreements and goodwill . intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their estimated residual values and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable . the company reviews intangible assets with indefinite lives for impairment annually as of october 1 and whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable . story_separator_special_tag 23 net cash provided by operating activities was $ 18.5 million for the year ended december 31 , 2011 , which included net income of $ 11.6 million , plus non-cash charges ( benefits ) for deferred tax expense , depreciation and amortization , tax benefit from exercise of stock options and non-cash stock compensation totaling $ 7.2 million . changes in working capital decreased 2011 cash flows from operating activities by $ 273,000 , primarily due to timing of initial billings on new or renewal contracts decreasing cash flows provided from trade accounts receivable and deferred revenue , partially offset by timing of payments on accrued expenses and income taxes . net cash provided by operating activities was $ 14.6 million for the year ended december 31 , 2010 , which included net income of $ 8.5 million , plus non cash charges ( benefits ) for deferred tax expense , depreciation and amortization and non-cash stock compensation totaling $ 6.1 million . story_separator_special_tag the company believes it has adequate cash flows from operations to meet its debt and capital needs . the company entered into a revolving credit note in 2006. the maximum aggregate amount available under the revolving credit note following an addendum to the note in march 2008 , is $ 6.5 million . the revolving credit note was renewed in june 2012 to extend the term to june 30 , 2013. the company may borrow , repay and re-borrow amounts under the revolving credit note from time to time until its maturity on june 30 , 2013. the company expects to extend the term of the revolving credit note for at least one year beyond the maturity date . if , however , the note can not be extended , the company believes it has adequate cash flows from operations to meet its debt and capital needs . the term notes and revolving line of credit are secured by certain of the company 's assets , including the company 's land , building , accounts receivable and intangible assets . the term notes and the revolving credit note contain various restrictions and covenants applicable to the company , including requirements that the company maintain certain financial ratios at prescribed levels and restrictions on the ability of the company to consolidate or merge , create liens , incur additional indebtedness or dispose of assets . as of december 31 , 2012 , the company was in compliance with these restrictions and covenants . the maximum aggregate amount available under the revolving credit note of $ 6.5 million is subject to a borrowing base equal to 75.0 % of the company 's eligible accounts receivable . borrowings under the renewed revolving credit note bear interest at a variable annual rate , with three rate options at the discretion of management as follows : ( 1 ) 2.5 % plus the daily reset one-month london interbank offered rate ( “ libor ” ) rate , or ( 2 ) 2.2 % plus the one- , two- , three- , six- or twelve-month libor rate , or ( 3 ) the bank 's money market loan rate . the rate at december 31 , 2012 , was 2.71 % . as of december 31 , 2012 , the revolving credit note did not have a balance . according to borrowing base requirements , the company had the capacity to borrow $ 6.5 million as of december 31 , 2012 . 25 contractual obligations the company had contractual obligations to make payments in the following amounts in the future as of december 31 , 2012 : replace_table_token_8_th ( 1 ) amounts are inclusive of interest payments , where applicable ( 2 ) we have $ 224,000 in liabilities associated with uncertain tax positions . we are unable to reasonably estimate the expected cash settlement dates of these uncertain tax positions with the taxing authorities . the company generally does not make unconditional , non-cancelable purchase commitments . the company enters into purchase orders in the normal course of business , but these purchase obligations do not exceed one year . shareholders ' equity increased $ 1.2 million to $ 56.7 million in 2012 , from $ 55.6 million in 2011. the increase was primarily due to net income of $ 15.1 million and $ 8.2 million of related share-based compensation , partially offset by dividends paid of $ 17.4 million and stock re-purchases of $ 5.2 million . dividends paid in 2012 include $ 10.3 million for a special dividend paid in the fourth quarter of 2012. stock repurchase program in february 2006 , the board of directors of the company authorized the repurchase of 750,000 shares of common stock in the open market or in privately negotiated transactions . as of december 31 , 2012 , the remaining number of shares that could be purchased under this authorization was 143,398. off-balance sheet obligations the company has no significant off-balance sheet obligations other than the operating lease commitments disclosed in “ liquidity and capital resources . ” adoption of new accounting pronouncements in june 2011 , the fasb issued asu no . 2011-05 , presentation of comprehensive income , which amends asc 220 , comprehensive income , by requiring all non-owner changes in shareholders ' equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements . the guidance was effective retrospectively for fiscal years and interim periods within those years beginning after december 15 , 2011. in december 2011 , the fasb issued asu no . 2011-12 , deferral of the effective date for amendments to the presentation of reclassifications of items out of accumulated other comprehensive income in accounting standards update no . 2011-05 , which defers certain portions of asu no . 2011-05 indefinitely and will be further deliberated by the fasb at a future date . the company adopted the requirements of asu 2011-05 and asu 2011-12 by

cash flows from investing activities net cash of $ 2.3 million was used for investing activities in the year ended december 31 , 2012. purchases of property and equipment totaled the $ 2.3 million . net cash of $ 6.9 million was used for investing activities in the year ended december 31 , 2011. earn-out payments related to the miv acquisition approximated $ 4.1 million , and purchases of property and equipment totaled $ 2.8 million . net cash of $ 17.0 million was used for investing activities in the year ended december 31 , 2010. cash of $ 15.3 million was used for the acquisition of ocs and $ 172,000 was paid under the earn-out related to the miv acquisition . cash of $ 1.5 million was used for the purchase of property and equipment . cash flows from financing activities net cash used in financing activities was $ 16.7 million in the year ended december 31 , 2012. proceeds from the exercise of stock options and the excess tax benefit of share-based compensation provided cash of $ 1.3 million and $ 2.1 million , respectively , partially offset by repurchases of shares for payroll tax withholdings related to share-based compensation of $ 527,000. cash was used to pay dividends of $ 17.4 million , including a special dividend of $ 10.3 million in the fourth quarter of 2012. cash was also used to repay borrowings under the term note totaling $ 2.1 million and capital lease obligations of $ 109,000. net cash used in financing activities was $ 6.9

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 of $ 2.3 million was used for investing activities in the year ended december 31 , 2012. purchases of property and equipment totaled the $ 2.3 million . net cash of $ 6.9 million was used for investing activities in the year ended december 31 , 2011. earn-out payments related to the miv acquisition approximated $ 4.1 million , and purchases of property and equipment totaled $ 2.8 million . net cash of $ 17.0 million was used for investing activities in the year ended december 31 , 2010. cash of $ 15.3 million was used for the acquisition of ocs and $ 172,000 was paid under the earn-out related to the miv acquisition . cash of $ 1.5 million was used for the purchase of property and equipment . cash flows from financing activities net cash used in financing activities was $ 16.7 million in the year ended december 31 , 2012. proceeds from the exercise of stock options and the excess tax benefit of share-based compensation provided cash of $ 1.3 million and $ 2.1 million , respectively , partially offset by repurchases of shares for payroll tax withholdings related to share-based compensation of $ 527,000. cash was used to pay dividends of $ 17.4 million , including a special dividend of $ 10.3 million in the fourth quarter of 2012. cash was also used to repay borrowings under the term note totaling $ 2.1 million and capital lease obligations of $ 109,000. net cash used in financing activities was $ 6.9 ``` Suspicious Activity Report : the company provides these services to its clients under annual client service contracts , although such contracts are generally cancelable on short or no notice without penalty . the company also derives some revenue from its custom and other research projects . services are provided under subscription-based service agreements . the company recognizes subscription-based service revenue over the period of time the service is provided . generally , the subscription periods are for twelve months and revenue is recognized equally over the subscription period . certain contracts are fixed-fee arrangements with a portion of the project fee billed in advance and the remainder billed periodically over the duration of the project . revenue and direct expenses for services provided under these contracts are recognized under the proportional performance method . under the proportional performance method , the company recognizes revenue based on output measures or key milestones such as survey set-up , survey mailings , survey returns and reporting . the company measures its progress based on the level of completion of these output measures and recognizes revenue accordingly . management judgments and estimates must be made and used in connection with revenue recognized using the proportional performance method . if management made different judgments and estimates , then the amount and timing of revenue for any period could differ materially from the reported revenue . the company also derives revenue from hosting arrangements where our propriety software is offered as a service to our customers through our data processing facilities . the company 's revenue also includes software-related revenue for software license revenue , installation services , post-contract support ( maintenance ) and training . software-related revenue is recognized in accordance with the provisions of accounting standards codification ( “ asc ” ) 985-605 , software-revenue recognition . hosting arrangements to provide customers with access to the company 's propriety software are marketed under long-term arrangements , generally over periods of one to three years . under these arrangements , the customer is not provided the contractual right to take possession of the licensed software at any time during the hosting period without significant penalty , and the customer is not provided the right to run the software on their own hardware or contract with another party unrelated to us to host the software . upfront fees for set-up services are typically billed for our hosting arrangements . however , these arrangements do not qualify for separation from the ongoing hosting services due to the absence of standalone value for the set-up services . therefore , we account for these arrangements as service contracts and recognize revenue ratably over the hosting service period when all other conditions to revenue are met . other conditions that must be met before the commencement of revenue recognition include achieving evidence of an arrangement , determining that the collection of the revenue is probable , and determining that fees are fixed and determinable . the company 's software arrangements typically involve the sale of a time-based license bundled with installation services , post-contract support ( “ pcs ” ) and training . license terms range from one year to three years and require an annual fee for bundled elements of the arrangement . pcs is also contractually provided for a period that is co-terminus with the term of the time-based license . the company 's installation services are not considered to be essential to the functionality of the software license . the company does not achieve vendor-specific objective evidence ( “ vsoe ” ) of the fair value of the undelivered elements of its software arrangements ( primarily pcs ) and , therefore , these arrangements are accounted for as a single unit of accounting with revenue recognized ratably over the minimum bundled pcs period . 18 the company 's revenue arrangements ( not involving software elements ) may include multiple elements . in assessing the separation of revenue for elements of such arrangements , we first determine whether each delivered element has standalone value based on whether we or other vendors sell the services separately . we also consider whether there is sufficient evidence of the fair value of the elements in allocating the fees in the arrangement to each element . revenue allocated to an element is limited to revenue that is not subject to refund or otherwise represents contingent revenue . on january 1 , 2011 , the company prospectively adopted accounting standard update ( “ asu ” ) 2009-13 , revenue recognition ( topic 605 ) : multiple-deliverable revenue arrangements ( asu 2009-13 ) . for arrangements entered into or materially modified beginning january 1 , 2011 , we allocated revenue to arrangements with multiple elements based on relative selling price using a selling price hierarchy . the selling price for a deliverable is based on its vsoe if it exists , otherwise third-party evidence of selling price . if neither exists for a deliverable , the best estimate of the selling price is used for that deliverable based on list price , representing a component of management 's market strategy , and an analysis of historical prices for bundled and standalone arrangements . valuation of goodwill and identifiable intangible assets intangible assets include customer relationships , trade names , non-compete agreements and goodwill . intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their estimated residual values and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable . the company reviews intangible assets with indefinite lives for impairment annually as of october 1 and whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable . story_separator_special_tag 23 net cash provided by operating activities was $ 18.5 million for the year ended december 31 , 2011 , which included net income of $ 11.6 million , plus non-cash charges ( benefits ) for deferred tax expense , depreciation and amortization , tax benefit from exercise of stock options and non-cash stock compensation totaling $ 7.2 million . changes in working capital decreased 2011 cash flows from operating activities by $ 273,000 , primarily due to timing of initial billings on new or renewal contracts decreasing cash flows provided from trade accounts receivable and deferred revenue , partially offset by timing of payments on accrued expenses and income taxes . net cash provided by operating activities was $ 14.6 million for the year ended december 31 , 2010 , which included net income of $ 8.5 million , plus non cash charges ( benefits ) for deferred tax expense , depreciation and amortization and non-cash stock compensation totaling $ 6.1 million . story_separator_special_tag the company believes it has adequate cash flows from operations to meet its debt and capital needs . the company entered into a revolving credit note in 2006. the maximum aggregate amount available under the revolving credit note following an addendum to the note in march 2008 , is $ 6.5 million . the revolving credit note was renewed in june 2012 to extend the term to june 30 , 2013. the company may borrow , repay and re-borrow amounts under the revolving credit note from time to time until its maturity on june 30 , 2013. the company expects to extend the term of the revolving credit note for at least one year beyond the maturity date . if , however , the note can not be extended , the company believes it has adequate cash flows from operations to meet its debt and capital needs . the term notes and revolving line of credit are secured by certain of the company 's assets , including the company 's land , building , accounts receivable and intangible assets . the term notes and the revolving credit note contain various restrictions and covenants applicable to the company , including requirements that the company maintain certain financial ratios at prescribed levels and restrictions on the ability of the company to consolidate or merge , create liens , incur additional indebtedness or dispose of assets . as of december 31 , 2012 , the company was in compliance with these restrictions and covenants . the maximum aggregate amount available under the revolving credit note of $ 6.5 million is subject to a borrowing base equal to 75.0 % of the company 's eligible accounts receivable . borrowings under the renewed revolving credit note bear interest at a variable annual rate , with three rate options at the discretion of management as follows : ( 1 ) 2.5 % plus the daily reset one-month london interbank offered rate ( “ libor ” ) rate , or ( 2 ) 2.2 % plus the one- , two- , three- , six- or twelve-month libor rate , or ( 3 ) the bank 's money market loan rate . the rate at december 31 , 2012 , was 2.71 % . as of december 31 , 2012 , the revolving credit note did not have a balance . according to borrowing base requirements , the company had the capacity to borrow $ 6.5 million as of december 31 , 2012 . 25 contractual obligations the company had contractual obligations to make payments in the following amounts in the future as of december 31 , 2012 : replace_table_token_8_th ( 1 ) amounts are inclusive of interest payments , where applicable ( 2 ) we have $ 224,000 in liabilities associated with uncertain tax positions . we are unable to reasonably estimate the expected cash settlement dates of these uncertain tax positions with the taxing authorities . the company generally does not make unconditional , non-cancelable purchase commitments . the company enters into purchase orders in the normal course of business , but these purchase obligations do not exceed one year . shareholders ' equity increased $ 1.2 million to $ 56.7 million in 2012 , from $ 55.6 million in 2011. the increase was primarily due to net income of $ 15.1 million and $ 8.2 million of related share-based compensation , partially offset by dividends paid of $ 17.4 million and stock re-purchases of $ 5.2 million . dividends paid in 2012 include $ 10.3 million for a special dividend paid in the fourth quarter of 2012. stock repurchase program in february 2006 , the board of directors of the company authorized the repurchase of 750,000 shares of common stock in the open market or in privately negotiated transactions . as of december 31 , 2012 , the remaining number of shares that could be purchased under this authorization was 143,398. off-balance sheet obligations the company has no significant off-balance sheet obligations other than the operating lease commitments disclosed in “ liquidity and capital resources . ” adoption of new accounting pronouncements in june 2011 , the fasb issued asu no . 2011-05 , presentation of comprehensive income , which amends asc 220 , comprehensive income , by requiring all non-owner changes in shareholders ' equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements . the guidance was effective retrospectively for fiscal years and interim periods within those years beginning after december 15 , 2011. in december 2011 , the fasb issued asu no . 2011-12 , deferral of the effective date for amendments to the presentation of reclassifications of items out of accumulated other comprehensive income in accounting standards update no . 2011-05 , which defers certain portions of asu no . 2011-05 indefinitely and will be further deliberated by the fasb at a future date . the company adopted the requirements of asu 2011-05 and asu 2011-12 by

26 the greenbrier companies 2013 annual report we operate two manufacturing facilities in sahagun , mexico , one of which we own and one which is leased . in september 2013 , we were notified by the landlord of our leased facility that the landlord does not intend to renew the lease following the expiration of the lease term in november 2014. while we continue to discuss the potential extension of the lease , we are also planning for alternatives to replace the manufacturing capacity of such facility , including potentially through expanding production capacity at our owned facility in sahagun , mexico or at other manufacturing sites . results of operations the accounting policies of the three segments in which we operate are the same as those described in the summary of significant accounting policies . segment performance is evaluated based on margin . the company 's integrated business model results in selling and administrative costs being intertwined among the segments . currently , greenbrier 's management does not allocate these costs for either external or internal reporting purposes . overview ( in thousands ) 2013 2012 2011 revenue : manufacturing $ 1,215,734 $ 1,253,964 $ 721,102 wheels , repair & parts 469,222 481,865 452,865 leasing & services 71,462 71,887 69,323 1,756,418 1,807,716 1,243,290 margin : manufacturing 132,845 131,580 59,975 wheels , repair & parts 37,721 48,324 47,416 leasing & services 35,807 34,516 32,140 segment margin total 206,373 214,420 139,531 less unallocated items : selling and administrative 103,175 104,596 80,326 net gain on disposition of equipment ( 18,072 ) ( 8,964 ) ( 8,369 ) goodwill impairment 76,900 – – restructuring charges 2,719 – – interest and foreign exchange 22,158 24,809 36,992 loss on extinguishment of debt – – 15,657 earnings before income tax and earnings ( loss ) from unconsolidated affiliates 19,493 93,979 14,925 income tax expense ( 25,060 ) ( 32,393 ) ( 3,564 ) earnings ( loss ) before earnings ( loss ) from unconsolidated affiliates ( 5,567 ) 61,586 11,361 earnings ( loss ) from unconsolidated affiliates 186 ( 416 ) ( 2,974 ) net earnings ( loss ) ( 5,381 ) 61,170 8,387 net earnings attributable to noncontrolling interest ( 5,667 ) ( 2,462 ) ( 1,921 ) net earnings ( loss ) attributable to greenbrier $ ( 11,048 ) $ 58,708 $ 6,466 diluted earnings ( loss ) per common share $ ( 0.41 ) $ 1.91 $ 0.24 the decrease in revenue for the year ended august 31 , 2013 was primarily the result of a lower volume of deliveries in the manufacturing segment of our business . the increase in revenue for the year ended august 31 , 2012 was primarily the result of higher levels of activity associated with the economic recovery in the freight car market including higher railcar deliveries as a result of increased demand . the decrease in net earnings for the year ended august 31 , 2013 was primarily attributable to a non-cash goodwill impairment charge of $ 71.8 million , net of tax and restructuring charges of $ 1.8 million , net of tax . these were partially offset by an increase in gain on disposition of equipment . the increase in net earnings for the greenbrier companies 2013 annual report 27 the year ended august 31 , 2012 was primarily attributable to an increase in manufacturing margin in 2012 and loss on extinguishment of debt recognized in 2011. these factors were partially offset by higher selling and administrative costs associated with operating at higher production levels in 2012. manufacturing segment manufacturing revenue was $ 1.216 billion , $ 1.254 billion and $ 721.1 million for the years ended august 31 , 2013 , 2012 and 2011. railcar deliveries , which are the primary source of manufacturing revenue , were 11,600 units in 2013 compared to 15,000 units in 2012 and 9,400 units in 2011. manufacturing revenue decreased $ 38.2 million in 2013 compared to 2012 primarily due to a lower volume of deliveries as compared to the prior year . these lower deliveries were a result of a change in product mix to more labor intensive railcar types and lower than expected demand for certain of our products . these factors were partially offset by a higher per unit average selling price as a result of a change in product mix and an increase in marine revenue from the prior year . manufacturing revenue increased $ 532.9 million in 2012 compared to 2011 primarily due to higher railcar deliveries as a result of increased demand and a higher per unit average selling price principally due to a change in product mix . manufacturing margin as a percentage of revenue was 10.9 % in 2013 , 10.5 % in 2012 and 8.3 % in 2011. the increase in 2013 compared to 2012 was primarily the result of a favorable change in product mix and an increase in marine revenue . these factors were partially offset by inefficiencies with ramping up tank car production . the increase in 2012 compared to 2011 was primarily the result of efficiencies from operating at higher production rates and a more favorable pricing environment . in addition , 2011 was impacted by inefficiencies as we ramped up production at idle facilities . wheels , repair & parts segment wheels , repair & parts revenue was $ 469.2 million , $ 481.9 million and $ 452.9 million for the years ended august 31 , 2013 , 2012 and 2011. the $ 12.7 million decrease in revenue in 2013 compared to 2012 was primarily the result of lower demand for wheel set replacements and a decrease in scrap metal pricing and volume . these were partially offset by an increase in demand for repair work . the $ 29.0 million increase in revenue in 2012 compared to 2011 was primarily the result of higher sales volumes of repair and parts due to higher demand . story_separator_special_tag the estimated maintenance liability is based on maintenance histories for each type and age of railcar . these estimates involve judgment as to the future costs of repairs and the types and timing of repairs required over the lease term . as we can not predict with certainty the prices , timing and volume of maintenance needed in the future on railcars under long-term leases , this estimate is uncertain and could be materially different from maintenance requirements . the liability is periodically reviewed and updated based on maintenance trends and known future repair or refurbishment requirements . these adjustments could be material due to the inherent uncertainty in predicting future maintenance requirements . warranty accruals - warranty costs to cover a defined warranty period are estimated and charged to operations . the estimated warranty cost is based on historical warranty claims for each particular product type . for new product types without a warranty history , preliminary estimates are based on historical information for similar product types . these estimates are inherently uncertain as they are based on historical data for existing products and judgment for new products . if warranty claims are made in the current period for issues that have not historically been the subject of warranty claims and were not taken into consideration in establishing the accrual or if claims for issues already considered in establishing the accrual exceed expectations , warranty expense may exceed the accrual for that particular product . conversely , there is the possibility that claims may be lower than estimates . the warranty accrual is periodically reviewed and updated based on warranty trends . however , as we can not predict future claims , the potential exists for the difference in any one reporting period to be material . environmental costs - at times we may be involved in various proceedings related to environmental matters . we estimate future costs for known environmental remediation requirements and accrue for them when it is probable that we have incurred a liability and the related costs can be reasonably estimated based on currently available information . if further developments or resolution of an environmental matter result in facts and circumstances that are significantly different than the assumptions used to develop these reserves , the accrual for environmental remediation could be materially understated or overstated . adjustments to these liabilities are made when additional information becomes available that affects the estimated costs to study or remediate any environmental issues or when expenditures for which reserves are established are made . due to the uncertain nature of estimating potential environmental matters , there can be no assurance that we will not become involved in future litigation or other proceedings or , if we were found to be responsible or liable in any litigation or proceeding , that such costs would not be material to us . revenue recognition - revenue is recognized when persuasive evidence of an arrangement exists , delivery has occurred or services have been rendered , the price is fixed or determinable and collectability is reasonably assured . railcars are generally manufactured , repaired or refurbished and wheels and parts produced under firm orders from third parties . revenue is recognized when these products or services are completed , accepted by an unaffiliated customer and contractual contingencies removed . certain leases are operated under car hire arrangements whereby revenue is earned based on utilization , car hire rates and terms specified in the lease agreement . car hire revenue is reported from a third party source two months in arrears ; however , such revenue the greenbrier companies 2013 annual report 35 is accrued in the month earned based on estimates of use from historical activity and is adjusted to actual as reported . these estimates are inherently uncertain as they involve judgment as to the estimated use of each railcar . adjustments to actual have historically not been significant . revenues from construction of marine barges are either recognized on the percentage of completion method during the construction period or on the completed contract method based on the terms of the contract . under the percentage of completion method , judgment is used to determine a definitive threshold against which progress towards completion can be measured to determine timing of revenue recognition . we sell railcars with leases attached to financial investors . in addition we will often perform management or maintenance services at market rates for these railcars . pursuant to the guidance in asc 840-20-40 , we evaluate the terms of any remarketing agreements and any contractual provisions that represent retained risk and the level of retained risk based on those provisions . we apply a 10 % threshold to determine whether the level of retained risk exceeds 10 % of the individual fair value of the railcars delivered . for any contracts with multiple elements ( i.e . railcars , maintenance , management services , etc ) we allocate revenue among the deliverables primarily based upon objective and reliable evidence of the fair value of each element in the arrangement . if objective and reliable evidence of fair value of any element is not available , we will use the element 's estimated selling price for purposes of allocating the total arrangement consideration among the elements . impairment of long-lived assets - when changes in circumstances indicate the carrying amount of certain long-lived assets may not be recoverable , the assets are evaluated for impairment . if the forecast undiscounted future cash flows are less than the carrying amount of the assets , an impairment charge to reduce the carrying value of the assets to fair value is recognized in the current period . these estimates are based on the best information available at the time of the impairment and could be materially different if circumstances change . if the forecast undiscounted future cash flows exceeded the carrying amount of the assets it would indicate that the assets were

liquidity and capital resources years ended august 31 , ( in thousands ) 2013 2012 2011 net cash provided by ( used in ) operating activities $ 104,592 $ 116,056 $ ( 34,252 ) net cash provided by ( used in ) investing activities 6,159 ( 88,947 ) ( 69,264 ) net cash provided by ( used in ) financing activities ( 65,732 ) ( 28,794 ) 57,991 effect of exchange rate changes ( 1,155 ) 5,034 ( 3,117 ) net increase ( decrease ) in cash and cash equivalents $ 43,864 $ 3,349 $ ( 48,642 ) we have been financed through cash generated from operations , borrowings and issuance of stock . at august 31 , 2013 cash and cash equivalents was $ 97.4 million , an increase of $ 43.8 million from $ 53.6 million at the prior year end . cash provided by operating activities was $ 104.6 million and $ 116.1 million for the years ended august 31 , 2013 and 2012 compared to cash used in operating activities of $ 34.3 million for the year ended august 31 , 2011. the decrease in 2013 was primarily due to a change in the timing of working capital needs and timing of sales of leased railcars for syndication . the increase in 2012 was primarily due to increased profitability and a change in the timing of working capital needs as a result of working capital management initiatives and build up of working capital in 2011 to prepare for operating at higher production levels in 2012. these factors were partially offset by an increase in leased railcars for syndication expected to be sold in the following year . cash provided by ( used in ) investing activities primarily related to capital expenditures less proceeds from the sale of 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 years ended august 31 , ( in thousands ) 2013 2012 2011 net cash provided by ( used in ) operating activities $ 104,592 $ 116,056 $ ( 34,252 ) net cash provided by ( used in ) investing activities 6,159 ( 88,947 ) ( 69,264 ) net cash provided by ( used in ) financing activities ( 65,732 ) ( 28,794 ) 57,991 effect of exchange rate changes ( 1,155 ) 5,034 ( 3,117 ) net increase ( decrease ) in cash and cash equivalents $ 43,864 $ 3,349 $ ( 48,642 ) we have been financed through cash generated from operations , borrowings and issuance of stock . at august 31 , 2013 cash and cash equivalents was $ 97.4 million , an increase of $ 43.8 million from $ 53.6 million at the prior year end . cash provided by operating activities was $ 104.6 million and $ 116.1 million for the years ended august 31 , 2013 and 2012 compared to cash used in operating activities of $ 34.3 million for the year ended august 31 , 2011. the decrease in 2013 was primarily due to a change in the timing of working capital needs and timing of sales of leased railcars for syndication . the increase in 2012 was primarily due to increased profitability and a change in the timing of working capital needs as a result of working capital management initiatives and build up of working capital in 2011 to prepare for operating at higher production levels in 2012. these factors were partially offset by an increase in leased railcars for syndication expected to be sold in the following year . cash provided by ( used in ) investing activities primarily related to capital expenditures less proceeds from the sale of assets . ``` Suspicious Activity Report : 26 the greenbrier companies 2013 annual report we operate two manufacturing facilities in sahagun , mexico , one of which we own and one which is leased . in september 2013 , we were notified by the landlord of our leased facility that the landlord does not intend to renew the lease following the expiration of the lease term in november 2014. while we continue to discuss the potential extension of the lease , we are also planning for alternatives to replace the manufacturing capacity of such facility , including potentially through expanding production capacity at our owned facility in sahagun , mexico or at other manufacturing sites . results of operations the accounting policies of the three segments in which we operate are the same as those described in the summary of significant accounting policies . segment performance is evaluated based on margin . the company 's integrated business model results in selling and administrative costs being intertwined among the segments . currently , greenbrier 's management does not allocate these costs for either external or internal reporting purposes . overview ( in thousands ) 2013 2012 2011 revenue : manufacturing $ 1,215,734 $ 1,253,964 $ 721,102 wheels , repair & parts 469,222 481,865 452,865 leasing & services 71,462 71,887 69,323 1,756,418 1,807,716 1,243,290 margin : manufacturing 132,845 131,580 59,975 wheels , repair & parts 37,721 48,324 47,416 leasing & services 35,807 34,516 32,140 segment margin total 206,373 214,420 139,531 less unallocated items : selling and administrative 103,175 104,596 80,326 net gain on disposition of equipment ( 18,072 ) ( 8,964 ) ( 8,369 ) goodwill impairment 76,900 – – restructuring charges 2,719 – – interest and foreign exchange 22,158 24,809 36,992 loss on extinguishment of debt – – 15,657 earnings before income tax and earnings ( loss ) from unconsolidated affiliates 19,493 93,979 14,925 income tax expense ( 25,060 ) ( 32,393 ) ( 3,564 ) earnings ( loss ) before earnings ( loss ) from unconsolidated affiliates ( 5,567 ) 61,586 11,361 earnings ( loss ) from unconsolidated affiliates 186 ( 416 ) ( 2,974 ) net earnings ( loss ) ( 5,381 ) 61,170 8,387 net earnings attributable to noncontrolling interest ( 5,667 ) ( 2,462 ) ( 1,921 ) net earnings ( loss ) attributable to greenbrier $ ( 11,048 ) $ 58,708 $ 6,466 diluted earnings ( loss ) per common share $ ( 0.41 ) $ 1.91 $ 0.24 the decrease in revenue for the year ended august 31 , 2013 was primarily the result of a lower volume of deliveries in the manufacturing segment of our business . the increase in revenue for the year ended august 31 , 2012 was primarily the result of higher levels of activity associated with the economic recovery in the freight car market including higher railcar deliveries as a result of increased demand . the decrease in net earnings for the year ended august 31 , 2013 was primarily attributable to a non-cash goodwill impairment charge of $ 71.8 million , net of tax and restructuring charges of $ 1.8 million , net of tax . these were partially offset by an increase in gain on disposition of equipment . the increase in net earnings for the greenbrier companies 2013 annual report 27 the year ended august 31 , 2012 was primarily attributable to an increase in manufacturing margin in 2012 and loss on extinguishment of debt recognized in 2011. these factors were partially offset by higher selling and administrative costs associated with operating at higher production levels in 2012. manufacturing segment manufacturing revenue was $ 1.216 billion , $ 1.254 billion and $ 721.1 million for the years ended august 31 , 2013 , 2012 and 2011. railcar deliveries , which are the primary source of manufacturing revenue , were 11,600 units in 2013 compared to 15,000 units in 2012 and 9,400 units in 2011. manufacturing revenue decreased $ 38.2 million in 2013 compared to 2012 primarily due to a lower volume of deliveries as compared to the prior year . these lower deliveries were a result of a change in product mix to more labor intensive railcar types and lower than expected demand for certain of our products . these factors were partially offset by a higher per unit average selling price as a result of a change in product mix and an increase in marine revenue from the prior year . manufacturing revenue increased $ 532.9 million in 2012 compared to 2011 primarily due to higher railcar deliveries as a result of increased demand and a higher per unit average selling price principally due to a change in product mix . manufacturing margin as a percentage of revenue was 10.9 % in 2013 , 10.5 % in 2012 and 8.3 % in 2011. the increase in 2013 compared to 2012 was primarily the result of a favorable change in product mix and an increase in marine revenue . these factors were partially offset by inefficiencies with ramping up tank car production . the increase in 2012 compared to 2011 was primarily the result of efficiencies from operating at higher production rates and a more favorable pricing environment . in addition , 2011 was impacted by inefficiencies as we ramped up production at idle facilities . wheels , repair & parts segment wheels , repair & parts revenue was $ 469.2 million , $ 481.9 million and $ 452.9 million for the years ended august 31 , 2013 , 2012 and 2011. the $ 12.7 million decrease in revenue in 2013 compared to 2012 was primarily the result of lower demand for wheel set replacements and a decrease in scrap metal pricing and volume . these were partially offset by an increase in demand for repair work . the $ 29.0 million increase in revenue in 2012 compared to 2011 was primarily the result of higher sales volumes of repair and parts due to higher demand . story_separator_special_tag the estimated maintenance liability is based on maintenance histories for each type and age of railcar . these estimates involve judgment as to the future costs of repairs and the types and timing of repairs required over the lease term . as we can not predict with certainty the prices , timing and volume of maintenance needed in the future on railcars under long-term leases , this estimate is uncertain and could be materially different from maintenance requirements . the liability is periodically reviewed and updated based on maintenance trends and known future repair or refurbishment requirements . these adjustments could be material due to the inherent uncertainty in predicting future maintenance requirements . warranty accruals - warranty costs to cover a defined warranty period are estimated and charged to operations . the estimated warranty cost is based on historical warranty claims for each particular product type . for new product types without a warranty history , preliminary estimates are based on historical information for similar product types . these estimates are inherently uncertain as they are based on historical data for existing products and judgment for new products . if warranty claims are made in the current period for issues that have not historically been the subject of warranty claims and were not taken into consideration in establishing the accrual or if claims for issues already considered in establishing the accrual exceed expectations , warranty expense may exceed the accrual for that particular product . conversely , there is the possibility that claims may be lower than estimates . the warranty accrual is periodically reviewed and updated based on warranty trends . however , as we can not predict future claims , the potential exists for the difference in any one reporting period to be material . environmental costs - at times we may be involved in various proceedings related to environmental matters . we estimate future costs for known environmental remediation requirements and accrue for them when it is probable that we have incurred a liability and the related costs can be reasonably estimated based on currently available information . if further developments or resolution of an environmental matter result in facts and circumstances that are significantly different than the assumptions used to develop these reserves , the accrual for environmental remediation could be materially understated or overstated . adjustments to these liabilities are made when additional information becomes available that affects the estimated costs to study or remediate any environmental issues or when expenditures for which reserves are established are made . due to the uncertain nature of estimating potential environmental matters , there can be no assurance that we will not become involved in future litigation or other proceedings or , if we were found to be responsible or liable in any litigation or proceeding , that such costs would not be material to us . revenue recognition - revenue is recognized when persuasive evidence of an arrangement exists , delivery has occurred or services have been rendered , the price is fixed or determinable and collectability is reasonably assured . railcars are generally manufactured , repaired or refurbished and wheels and parts produced under firm orders from third parties . revenue is recognized when these products or services are completed , accepted by an unaffiliated customer and contractual contingencies removed . certain leases are operated under car hire arrangements whereby revenue is earned based on utilization , car hire rates and terms specified in the lease agreement . car hire revenue is reported from a third party source two months in arrears ; however , such revenue the greenbrier companies 2013 annual report 35 is accrued in the month earned based on estimates of use from historical activity and is adjusted to actual as reported . these estimates are inherently uncertain as they involve judgment as to the estimated use of each railcar . adjustments to actual have historically not been significant . revenues from construction of marine barges are either recognized on the percentage of completion method during the construction period or on the completed contract method based on the terms of the contract . under the percentage of completion method , judgment is used to determine a definitive threshold against which progress towards completion can be measured to determine timing of revenue recognition . we sell railcars with leases attached to financial investors . in addition we will often perform management or maintenance services at market rates for these railcars . pursuant to the guidance in asc 840-20-40 , we evaluate the terms of any remarketing agreements and any contractual provisions that represent retained risk and the level of retained risk based on those provisions . we apply a 10 % threshold to determine whether the level of retained risk exceeds 10 % of the individual fair value of the railcars delivered . for any contracts with multiple elements ( i.e . railcars , maintenance , management services , etc ) we allocate revenue among the deliverables primarily based upon objective and reliable evidence of the fair value of each element in the arrangement . if objective and reliable evidence of fair value of any element is not available , we will use the element 's estimated selling price for purposes of allocating the total arrangement consideration among the elements . impairment of long-lived assets - when changes in circumstances indicate the carrying amount of certain long-lived assets may not be recoverable , the assets are evaluated for impairment . if the forecast undiscounted future cash flows are less than the carrying amount of the assets , an impairment charge to reduce the carrying value of the assets to fair value is recognized in the current period . these estimates are based on the best information available at the time of the impairment and could be materially different if circumstances change . if the forecast undiscounted future cash flows exceeded the carrying amount of the assets it would indicate that the assets were

ebitda provides us with a measure of financial performance , independent of items that are beyond the control of management in the short-term , such as dividends required on preferred stock , depreciation and amortization , taxation and interest expense associated with our capital structure . this metric measures our financial performance based on operational factors that management can impact in the short-term , namely the cost structure or expenses of the organization . ebitda is one of the metrics used by senior management and the board of directors to review the financial performance of the business on a regular basis . ebitda is also used by research analysts and investors to evaluate the performance and value of companies in our industry . limitations of ebitda ebitda has limitations as an analytical tool . it should not be viewed in isolation or as a substitute for u.s. gaap measures of earnings . material limitations in making the adjustments to our earnings to calculate ebitda , and using this non-u.s. gaap financial measure as compared to u.s. gaap net income ( loss ) , include : the cash portion of dividends , interest expense and income tax ( benefit ) provision generally represent charges ( gains ) , which may significantly affect our financial results ; and 16 depreciation and amortization , though not directly affecting our current cash position , represent the wear and tear and or reduction in value of our fixed assets and may be indicative of future needs for capital expendi tures . an investor or potential investor may find this item important in evaluating our performance , results of operations and financial position . we use non-u.s. gaap financial measures to supplement our u.s. gaap results in order to provide a more complete understanding of the factors and trends affecting our business . ebitda is not an alternative to net income , income from operations or cash flows provided by or used in operations as calculated and presented in accordance with u.s. gaap . you should not rely on ebitda as a substitute for any such u.s. gaap financial measure . we strongly urge you to review the reconciliation of ebitda to u.s. gaap net income ( loss ) attributable to common stockholders , along with our consolidated financial statements included herein . we also strongly urge you to not rely on any single financial measure to evaluate our business . in addition , because ebitda is not a measure of financial performance under u.s. gaap and is susceptible to varying calculations , the ebitda measure , as presented in this report , may differ from and may not be comparable to similarly titled measures used by other companies . the table below shows the reconciliation of net loss attributable to common stockholders to ebitda for the years ended december 31 , 2017 and 2016 ( dollars in thousands ) : replace_table_token_4_th backlog backlog is another non-u.s.gaap indicator management uses to measure the level of outstanding orders . the order backlog at december 31 , 2017 and december 31 , 2016 was $ 18.88 million and $ 13.50 million , respectively . foreign joint ventures : summary financial information of bomay and miefe in u.s. dollars was as follows at december 31 , 2017 and 2016 ( in thousands ) : replace_table_token_5_th 17 the company 's investments in and advances to its foreign joint ventures ' operations were as follows as of december 31 , 2017 and 2016 : replace_table_token_6_th * accumulated statutory reserves in equity method investments of $ 2.81 million and $ 2.89 million at december 31 , 2017 and 2016 , respectively , are included in aeti 's consolidated retained earnings . in accordance with the people 's republic of china , ( “ prc ” ) , regulations on enterprises with foreign ownership , an enterprise established in the prc with foreign ownership is required to provide for certain statutory reserves , namely ( i ) general reserve fund , ( ii ) enterprise expansion fund and ( iii ) staff welfare and bonus fund , which are appropriated from net profit as reported in the enterprise 's prc statutory accounts . a non-wholly-owned foreign invested enterprise is permitted to provide for the above allocation at the discretion of its board of directors . the aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends . the company accounts for its investments in foreign joint ventures ' operations using the equity method of accounting . under the equity method , the company 's share of the joint ventures ' operations ' earnings or loss is recognized in the consolidated statements of operations as equity income ( loss ) from foreign joint ventures ' operations . joint venture income increases the carrying value of the joint ventures and joint venture losses reduce the carrying value . dividends received from the joint ventures reduce the carrying value . the equity income for the company 's interest in the two joint ventures for 2017 and 2016 was : bomay $ 0.43 million vs. $ 0.80 million and miefe $ 0.22 million vs. ( $ 0.27 ) million . in november 2017 , the company executed a letter of intent to divest of its ownership interest in miefe . as a result , the investment in miefe was written down to zero excluding foreign currency translation of $ 0.21 million which will be adjusted upon the completion of the disposal . historically , the operating results of bomay have appeared almost seasonal as budgets were established for new years in march and the company worked to complete production to meet targets . most of bomay 's production is for bomco for the chinese national petroleum corporation , ( “ cnpc ” ) , for land drilling in china and in other international markets where bomco or cnpc have relationships . story_separator_special_tag related translation adjustments are reported as comprehensive income , net of deferred income taxes , which is a separate component of stockholders ' equity , whereas gains and losses resulting from foreign currency transactions are included in results of operations . federal income taxes – the liability method is used in accounting for federal income taxes . under this method , deferred tax assets and liabilities are determined based on differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse . the realizability of deferred tax assets are evaluated annually and a valuation allowance is provided if it is more likely than not that the deferred tax assets will not give rise to future benefits in the company 's tax returns . as of december 31 , 2017 and 2016 , management believed there was uncertainty regarding the future realizability of deferred tax assets and a valuation allowance was established for the entire deferred tax asset balance . contingencies – the company records an estimated loss from a loss contingency when information indicates that it is probable that an asset has been impaired or a liability has been incurred and the amount of loss can be reasonably estimated . contingencies are often resolved over long time periods , are based on unique facts and circumstances , and are inherently uncertain . the company regularly evaluates the current information that is available to determine whether such accruals should be adjusted or other disclosures related to contingencies are required . the company is a party to a number of legal proceedings in the normal course of business for which appropriate provisions have been made if it is believed an ultimate loss is probable . the ultimate resolution of these matters , individually or in the aggregate , is not likely to have a material impact on the company 's consolidated financial position or results of operations . during 2017 , the company 's business operations in houston and beaumont texas were adversely impacted by hurricane harvey . although the company 's facilities did not sustain any damage , operations were temporarily idled , delaying the schedules of customer projects resulting in a $ 2.5 million negative revenue impact . the company maintains business interruption insurance and has filed a business interruption claim . we subsequently received proceeds of $ 0.12 million in january , 2018 and it is anticipated that any additional proceeds resulting from this business interruption claim would be recorded no earlier than q2 2018. equity income from foreign joint ventures ' operations – the company accounts for its investments in foreign joint ventures ' using the equity method . under the equity method , the company records its pro-rata share of foreign joint ventures ' income or losses and adjusts the basis of its investment accordingly . dividends received from the joint ventures , if any , are recorded as reductions to the investment balance . carrying value of joint venture investments – the company evaluates the carrying value of equity method investments as to whether an impairment adjustment may be necessary . in making this evaluation , a variety of quantitative and qualitative factors are considered including international , national and local economic , political and market conditions , industry trends and prospects , liquidity and capital resources and other pertinent factors . based on the most recent review at december 31 , 2017 and december 31 , 2016 , management believes the carrying value of investments in foreign joint ventures is recoverable . recently issued accounting pronouncements in may 2014 , the financial accounting standards board ( “ fasb ” ) issued accounting standards update ( “ asu ” ) no . 2014-09 , revenue from contracts with customers , which supersedes nearly all existing revenue recognition guidance under u.s. gaap . the core principle of asu no . 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services . asu no . 2014-09 defines a five step process to achieve this core principle and , in doing so , more judgment and estimates may be required under existing u.s. gaap . the standard is effective for annual periods beginning after december 15 , 2016 , and interim periods therein , using either of the following transition methods : ( i ) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients , or ( ii ) a retrospective approach with the cumulative effect of initially adopting asu no . 2014-09 recognized at the date of adoption ( which includes additional footnote disclosures ) . in july 2015 , the fasb issued asu no . 2015-14 which delayed the effective date of asu no . 2014-09 by one year ( effective for annual periods beginning after december 15 , 2017 ) . the company adopted asu 2014-09 , effective january 1 , 2018 , using the modified retrospective method . the adoption of the standard will not have a material impact on the company 's revenue recognition policies , other than enhanced disclosures related to the disaggregation of revenues from contracts with customers , the company 's performance obligations and any significant judgments . in august 2014 , the fasb issued an accounting standards update which requires management to assess whether there are conditions or events , considered in the aggregate , that raise substantial doubt about the entity 's ability to continue as a going concern within one year after the financial statements are issued . if substantial doubt exists , additional disclosures are required . this update was effective beginning with the company 's annual period ended december 31 , 2016. the company 's

liquidity and capital resources replace_table_token_8_th * “ consolidated net worth ” represents the company 's consolidated total assets less consolidated total liabilities . aeti 's long-term debt as of december 31 , 2017 was $ 5.52 million on which payments were current . see note 8 notes payable to the consolidated financial statements included in this report for discussion of recent financial activity . notes payable on march 23 , 2017 the company entered into a $ 7.00 million senior secured term note with a third-party lender . the note is payable in monthly interest only payments in arrears at a fixed rate of 11.50 % . principal of $ 0.50 million was paid on june 30 , 2017. the note was amended november 13 , 2017 requiring minimum principal reductions of $ 30,000 per month beginning in april 2018 and with the remaining balance due march 23 , 2021. the company continues to monitor its liquidity position closely and depending on the business needs may raise cash in the form of debt , equity or a combination of both , subject to lender approval . however , there can be no assura nce that additional capital can be obtained or that it can be obtained at terms that are favorable to us and our existing stockholders . uses and sources of liquidity our primary need for liquidity is to fund working capital requirements of our businesses , capital expenditures and for general corporate purposes , including debt repayment . we have incurred losses and experienced negative operating cash flows for the past several years , and accordingly , the company has taken a number of actions to continue to support its operations and meet its 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. ```liquidity and capital resources replace_table_token_8_th * “ consolidated net worth ” represents the company 's consolidated total assets less consolidated total liabilities . aeti 's long-term debt as of december 31 , 2017 was $ 5.52 million on which payments were current . see note 8 notes payable to the consolidated financial statements included in this report for discussion of recent financial activity . notes payable on march 23 , 2017 the company entered into a $ 7.00 million senior secured term note with a third-party lender . the note is payable in monthly interest only payments in arrears at a fixed rate of 11.50 % . principal of $ 0.50 million was paid on june 30 , 2017. the note was amended november 13 , 2017 requiring minimum principal reductions of $ 30,000 per month beginning in april 2018 and with the remaining balance due march 23 , 2021. the company continues to monitor its liquidity position closely and depending on the business needs may raise cash in the form of debt , equity or a combination of both , subject to lender approval . however , there can be no assura nce that additional capital can be obtained or that it can be obtained at terms that are favorable to us and our existing stockholders . uses and sources of liquidity our primary need for liquidity is to fund working capital requirements of our businesses , capital expenditures and for general corporate purposes , including debt repayment . we have incurred losses and experienced negative operating cash flows for the past several years , and accordingly , the company has taken a number of actions to continue to support its operations and meet its obligations . ``` Suspicious Activity Report : ebitda provides us with a measure of financial performance , independent of items that are beyond the control of management in the short-term , such as dividends required on preferred stock , depreciation and amortization , taxation and interest expense associated with our capital structure . this metric measures our financial performance based on operational factors that management can impact in the short-term , namely the cost structure or expenses of the organization . ebitda is one of the metrics used by senior management and the board of directors to review the financial performance of the business on a regular basis . ebitda is also used by research analysts and investors to evaluate the performance and value of companies in our industry . limitations of ebitda ebitda has limitations as an analytical tool . it should not be viewed in isolation or as a substitute for u.s. gaap measures of earnings . material limitations in making the adjustments to our earnings to calculate ebitda , and using this non-u.s. gaap financial measure as compared to u.s. gaap net income ( loss ) , include : the cash portion of dividends , interest expense and income tax ( benefit ) provision generally represent charges ( gains ) , which may significantly affect our financial results ; and 16 depreciation and amortization , though not directly affecting our current cash position , represent the wear and tear and or reduction in value of our fixed assets and may be indicative of future needs for capital expendi tures . an investor or potential investor may find this item important in evaluating our performance , results of operations and financial position . we use non-u.s. gaap financial measures to supplement our u.s. gaap results in order to provide a more complete understanding of the factors and trends affecting our business . ebitda is not an alternative to net income , income from operations or cash flows provided by or used in operations as calculated and presented in accordance with u.s. gaap . you should not rely on ebitda as a substitute for any such u.s. gaap financial measure . we strongly urge you to review the reconciliation of ebitda to u.s. gaap net income ( loss ) attributable to common stockholders , along with our consolidated financial statements included herein . we also strongly urge you to not rely on any single financial measure to evaluate our business . in addition , because ebitda is not a measure of financial performance under u.s. gaap and is susceptible to varying calculations , the ebitda measure , as presented in this report , may differ from and may not be comparable to similarly titled measures used by other companies . the table below shows the reconciliation of net loss attributable to common stockholders to ebitda for the years ended december 31 , 2017 and 2016 ( dollars in thousands ) : replace_table_token_4_th backlog backlog is another non-u.s.gaap indicator management uses to measure the level of outstanding orders . the order backlog at december 31 , 2017 and december 31 , 2016 was $ 18.88 million and $ 13.50 million , respectively . foreign joint ventures : summary financial information of bomay and miefe in u.s. dollars was as follows at december 31 , 2017 and 2016 ( in thousands ) : replace_table_token_5_th 17 the company 's investments in and advances to its foreign joint ventures ' operations were as follows as of december 31 , 2017 and 2016 : replace_table_token_6_th * accumulated statutory reserves in equity method investments of $ 2.81 million and $ 2.89 million at december 31 , 2017 and 2016 , respectively , are included in aeti 's consolidated retained earnings . in accordance with the people 's republic of china , ( “ prc ” ) , regulations on enterprises with foreign ownership , an enterprise established in the prc with foreign ownership is required to provide for certain statutory reserves , namely ( i ) general reserve fund , ( ii ) enterprise expansion fund and ( iii ) staff welfare and bonus fund , which are appropriated from net profit as reported in the enterprise 's prc statutory accounts . a non-wholly-owned foreign invested enterprise is permitted to provide for the above allocation at the discretion of its board of directors . the aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends . the company accounts for its investments in foreign joint ventures ' operations using the equity method of accounting . under the equity method , the company 's share of the joint ventures ' operations ' earnings or loss is recognized in the consolidated statements of operations as equity income ( loss ) from foreign joint ventures ' operations . joint venture income increases the carrying value of the joint ventures and joint venture losses reduce the carrying value . dividends received from the joint ventures reduce the carrying value . the equity income for the company 's interest in the two joint ventures for 2017 and 2016 was : bomay $ 0.43 million vs. $ 0.80 million and miefe $ 0.22 million vs. ( $ 0.27 ) million . in november 2017 , the company executed a letter of intent to divest of its ownership interest in miefe . as a result , the investment in miefe was written down to zero excluding foreign currency translation of $ 0.21 million which will be adjusted upon the completion of the disposal . historically , the operating results of bomay have appeared almost seasonal as budgets were established for new years in march and the company worked to complete production to meet targets . most of bomay 's production is for bomco for the chinese national petroleum corporation , ( “ cnpc ” ) , for land drilling in china and in other international markets where bomco or cnpc have relationships . story_separator_special_tag related translation adjustments are reported as comprehensive income , net of deferred income taxes , which is a separate component of stockholders ' equity , whereas gains and losses resulting from foreign currency transactions are included in results of operations . federal income taxes – the liability method is used in accounting for federal income taxes . under this method , deferred tax assets and liabilities are determined based on differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse . the realizability of deferred tax assets are evaluated annually and a valuation allowance is provided if it is more likely than not that the deferred tax assets will not give rise to future benefits in the company 's tax returns . as of december 31 , 2017 and 2016 , management believed there was uncertainty regarding the future realizability of deferred tax assets and a valuation allowance was established for the entire deferred tax asset balance . contingencies – the company records an estimated loss from a loss contingency when information indicates that it is probable that an asset has been impaired or a liability has been incurred and the amount of loss can be reasonably estimated . contingencies are often resolved over long time periods , are based on unique facts and circumstances , and are inherently uncertain . the company regularly evaluates the current information that is available to determine whether such accruals should be adjusted or other disclosures related to contingencies are required . the company is a party to a number of legal proceedings in the normal course of business for which appropriate provisions have been made if it is believed an ultimate loss is probable . the ultimate resolution of these matters , individually or in the aggregate , is not likely to have a material impact on the company 's consolidated financial position or results of operations . during 2017 , the company 's business operations in houston and beaumont texas were adversely impacted by hurricane harvey . although the company 's facilities did not sustain any damage , operations were temporarily idled , delaying the schedules of customer projects resulting in a $ 2.5 million negative revenue impact . the company maintains business interruption insurance and has filed a business interruption claim . we subsequently received proceeds of $ 0.12 million in january , 2018 and it is anticipated that any additional proceeds resulting from this business interruption claim would be recorded no earlier than q2 2018. equity income from foreign joint ventures ' operations – the company accounts for its investments in foreign joint ventures ' using the equity method . under the equity method , the company records its pro-rata share of foreign joint ventures ' income or losses and adjusts the basis of its investment accordingly . dividends received from the joint ventures , if any , are recorded as reductions to the investment balance . carrying value of joint venture investments – the company evaluates the carrying value of equity method investments as to whether an impairment adjustment may be necessary . in making this evaluation , a variety of quantitative and qualitative factors are considered including international , national and local economic , political and market conditions , industry trends and prospects , liquidity and capital resources and other pertinent factors . based on the most recent review at december 31 , 2017 and december 31 , 2016 , management believes the carrying value of investments in foreign joint ventures is recoverable . recently issued accounting pronouncements in may 2014 , the financial accounting standards board ( “ fasb ” ) issued accounting standards update ( “ asu ” ) no . 2014-09 , revenue from contracts with customers , which supersedes nearly all existing revenue recognition guidance under u.s. gaap . the core principle of asu no . 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services . asu no . 2014-09 defines a five step process to achieve this core principle and , in doing so , more judgment and estimates may be required under existing u.s. gaap . the standard is effective for annual periods beginning after december 15 , 2016 , and interim periods therein , using either of the following transition methods : ( i ) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients , or ( ii ) a retrospective approach with the cumulative effect of initially adopting asu no . 2014-09 recognized at the date of adoption ( which includes additional footnote disclosures ) . in july 2015 , the fasb issued asu no . 2015-14 which delayed the effective date of asu no . 2014-09 by one year ( effective for annual periods beginning after december 15 , 2017 ) . the company adopted asu 2014-09 , effective january 1 , 2018 , using the modified retrospective method . the adoption of the standard will not have a material impact on the company 's revenue recognition policies , other than enhanced disclosures related to the disaggregation of revenues from contracts with customers , the company 's performance obligations and any significant judgments . in august 2014 , the fasb issued an accounting standards update which requires management to assess whether there are conditions or events , considered in the aggregate , that raise substantial doubt about the entity 's ability to continue as a going concern within one year after the financial statements are issued . if substantial doubt exists , additional disclosures are required . this update was effective beginning with the company 's annual period ended december 31 , 2016. the company 's

any interruptions to , or decline in , the amount or quality of our raw materials supply could materially disrupt our production and adversely affect our business and financial condition and financial prospects . the average price that we paid for chestnuts in 2013 and 2012 was approximately $ 1,507 metric ton and $ 1,433 per metric ton , respectively , excluding value added taxes . in the past few years , increasing inflation pressures weighed on the chinese economy which reflected on agricultural product prices . we do not have effective means and do not currently hedge against changes in our raw material prices . consequently , if the costs of our raw materials increase further and we are unable to offset these increases by raising the prices of our products , our profit margins and financial condition could be adversely affected . 26 uncertainties that affect our financial condition we spend a significant amount of cash on our operations , principally to procure raw materials for our products . many of our suppliers , including chestnut , vegetable and fruit farmers , and suppliers of packaging materials , require us to pay for their supplies in cash on the same day that such supplies are delivered to us . however , some of the suppliers with whom we have a long-standing business relationship allow us to pay on credit . we fund the majority of our working capital requirements out of cash flow generated from operations . if we fail to generate sufficient sales , or if our suppliers stop offering us credit terms , we may not have sufficient liquidity to fund our operating costs and our business could be adversely affected . we also funded approximately 21.1 % and 24.4 % of our working capital requirements in 2013 and 2012 , respectively , from the proceeds of short-term loans from chinese banks . we expect to continue to do so in the future . such loans are generally secured by our fixed assets , receivables and or guarantees by third parties . our average loan balance from short-term bank loans in 2013 and 2012 were approximately $ 32.8 million and $ 34.4 million , respectively . the term of almost all such loans is one year or less . historically , we have rolled over such loans on an annual basis . however , in recent years , the chinese government has implemented more stringent credit policies to curb inflation and soaring property prices , which could negatively impact our ability to obtain or roll over these short term loans , and hence not having sufficient funds available to pay all of our borrowings upon maturity . failure to roll over our short-term borrowings at maturity or to service our debt could result in the imposition of penalties , including increases in rates of interest , legal actions against us by our creditors , or even insolvency . in addition , we completed two private placement financings in september 2010 and october 2009 with net proceeds of $ 9.0 million and $ 10.9 million , respectively , the proceeds of which were primarily used as working capital . we also secured a $ 15 million loan from deutsche investitions- und entwicklungsgesellshaft ( “deg” ) in may 2010 , which we have fully drawn down in 2011. we can provide no assurances that we will be able to enter into any future financing or refinancing agreements on terms favorable to us , especially considering the current instability of the capital markets . we anticipate that our existing capital resources , cash flows from operations and current and expected short-term bank loans will be adequate to satisfy our liquidity requirements through 2014. however , if available liquidity is not sufficient to meet our operating and loan obligations as they come due , our plans include considering pursuing alternative financing arrangements or further reducing expenditures as necessary to meet our cash requirements . however , there is no assurance that , if required , we will be able to raise additional capital or reduce discretionary spending to provide the required liquidity . currently , the capital markets for small capitalization companies are difficult and banking institutions have become stringent in their lending requirements . accordingly , we can not be sure of the availability or terms of any third party financing . in 2008 and 2009 , some of our customers , including some of our large supermarket customers , delayed their payments for up to 60 to 90 days beyond their term . our cash flow suffered while waiting for such payments . consequently , at times we had to delay payments to our suppliers and to postpone business expansion as a result of these delayed payments . starting in 2008 and through 2013 we gradually shortened credit terms for many of our international and domestic customers from between 30 and 180 days to between 30 and 60 days . our large customers may fail to meet these shortened credit terms , in which case we may not have sufficient cash flow to fund our operating costs and our business could be adversely affected . recent developments and events on march 13 , 2014 , we acquired 12,750 shares , or 51 % share capital , of athena from two existing shareholders of athena for an aggregate purchase price of €1,995,000 ( or approximately us $ 2,702,650 ) of which €500,000 ( or approximately us $ 677,350 ) ( “deferred payment” ) remains due and payable to intiraimi on february 7 , 2015 under the intiraimi purchase agreement if certain conditions are met . under the terms of the intiraimi purchase agreement , we agreed to pledge 12,750 shares , or 51 % share capital , of athena to intiraimi to guarantee the deferred payment . story_separator_special_tag b. cross-reference to other disclosures currently required under u.s. gaap for other reclassification items ( that are not required under u.s. gaap ) to be reclassified directly to net income in their entirety in the same reporting period . this would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is initially transferred to a balance sheet account ( e.g . , inventory for pension-related amounts ) instead of directly to income or expense . the amendments are effective for reporting periods beginning after december 15 , 2012 , for public companies . management does not expect the adoption of this standard will have a significant effect on the company 's consolidated financial position or results of operations . in february 2013 , the fasb issued asu no . 2013-03 , “clarifying the scope and applicability of a particular disclosure to nonpublic entities” ( “asu 2013-03” ) . the amendment clarifies that the requirement to disclose the level of the fair value hierarchy within which the fair value measurements are categorized in their entirety ( as level 1 , level 2 , or level 3 ) does not apply to private companies and nonpublic not-for-profits for items that are not measured at fair value in the statement of financial position , but for which fair value is disclosed . the amendments are effective upon issuance . management does not expect the adoption of this standard will have a significant effect on the company 's consolidated financial position or results of operations . 34 in march 2013 , the fasb issued asu no . 2013-04 , “obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date” ( “asu 2013-04” ) . the update provides guidance for the recognition , measurement , and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this asu is fixed at the reporting date , except for obligations addressed within existing guidance in us gaap . the guidance requires an entity to measure those obligations as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors . the guidance in this asu also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations . the amendments in this asu are effective for fiscal years , and interim periods within those years , beginning after december 15 , 2013. management does not expect the adoption of this standard will have a significant effect on the company 's consolidated financial position or results of operations . in march 2013 , the fasb issued asu no . 2013-05 , “parent 's accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity” ( “asu 2013-05” ) . the asu clarifies that when a parent entity ceases to have a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business ( other than a sale of in substance real estate or conveyance of oil and gas mineral rights ) within a foreign entity , the parent is required to apply the guidance in accounting standards codification 830-30 to release any related cumulative translation adjustment into net income . the asu provides that the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided . the amendments take effect prospectively for public companies for fiscal years beginning after december 15 , 2013 , and interim reporting periods within those years . management does not expect the adoption of this standard will have a significant effect on the company 's consolidated financial position or results of operations . in march 2013 , the fasb issued asu no . 2013-07 , “liquidation basis of accounting” ( “asu 2013-07” ) . the asu requires an entity to prepare its financial statements using the liquidation basis of accounting when liquidation is imminent . liquidation would be considered imminent when the likelihood is remote that the reporting entity would return from liquidation and either : ( a ) a plan for liquidation has been approved by the person or persons with the authority to make such a plan effective and the likelihood is remote that the execution of the plan will be blocked by other parties or the entity will return from liquidation , or ( b ) a plan for liquidation is imposed by other forces , and the likelihood is remote that the entity will return from liquidation . if a plan for liquidation was specified in an entity 's governing documents at its inception ( for example , limited-life entities ) , then liquidation would be imminent only if the approved plan for liquidation differs from the plan specified at the entity 's inception . the amendments take effect for all entities reporting under u.s. gaap , except investment companies that are regulated under the investment company act of 1940. the standard is effective for annual reporting periods beginning after december 31 , 2013 , and interim reporting periods therein . early adoption is permitted . management does not expect the adoption of this standard will have a significant effect on the company 's consolidated financial position or results of operations . in july 2013 , the fasb issued asu no . 2013-11 , “income taxes ( topic 740 ) - presentation of an unrecognized tax benefit when a net operating loss carryforward , a similar tax loss , or a tax credit carryforward exists

provision for bad debts ( 83,618 ) social security ( 136,910 ) land use fees ( 83,450 ) government subsidy income government subsidy income increased from approximately $ 1.2 million in 2012 to $ 1.6 million in 2013 , representing grants received mostly from the junan county government and beijing government to assist us in our research and business development . income before taxation and minority interest income before taxation and minority interest decreased $ 6.2 million , or 21.1 % , to $ 23.3 million in 2013 from $ 29.5 million in 2012 as a result of lower revenues , partially offset by lower costs of revenues and operating expenses , for the reasons indicated above . income taxes income taxes decreased approximately $ 2.2 million , or 28.0 % , to $ 5.6 million in 2013 , as compared to $ 7.7 million in 2012. this decrease was attributable to the lower income earned in 2013 as compared to 2012. minority interest shandong economic development investment holds 19.8 % of the equity of our subsidiary shandong lorain , which is reflected in the minority interest of $ 1.1 million in 2013 and $ 1.3 million in 2012. net income net income decreased $ 3.8 million , or 18.6 % , to $ 16.6 million in 2013 from $ 20.4 million in 2012 , as a result of the factors described above . liquidity and capital resources general our primary capital needs have been to fund the working capital requirements necessitated by our sales growth , adding new products and expanding our facilities . in the past , our primary sources of financing have been cash generated from operations and short-term loans from banks in china . in october 2009 and september 2010 , we obtained approximately $ 11 million and 9 million , respectively , from two private placement 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. ```provision for bad debts ( 83,618 ) social security ( 136,910 ) land use fees ( 83,450 ) government subsidy income government subsidy income increased from approximately $ 1.2 million in 2012 to $ 1.6 million in 2013 , representing grants received mostly from the junan county government and beijing government to assist us in our research and business development . income before taxation and minority interest income before taxation and minority interest decreased $ 6.2 million , or 21.1 % , to $ 23.3 million in 2013 from $ 29.5 million in 2012 as a result of lower revenues , partially offset by lower costs of revenues and operating expenses , for the reasons indicated above . income taxes income taxes decreased approximately $ 2.2 million , or 28.0 % , to $ 5.6 million in 2013 , as compared to $ 7.7 million in 2012. this decrease was attributable to the lower income earned in 2013 as compared to 2012. minority interest shandong economic development investment holds 19.8 % of the equity of our subsidiary shandong lorain , which is reflected in the minority interest of $ 1.1 million in 2013 and $ 1.3 million in 2012. net income net income decreased $ 3.8 million , or 18.6 % , to $ 16.6 million in 2013 from $ 20.4 million in 2012 , as a result of the factors described above . liquidity and capital resources general our primary capital needs have been to fund the working capital requirements necessitated by our sales growth , adding new products and expanding our facilities . in the past , our primary sources of financing have been cash generated from operations and short-term loans from banks in china . in october 2009 and september 2010 , we obtained approximately $ 11 million and 9 million , respectively , from two private placement transactions . ``` Suspicious Activity Report : any interruptions to , or decline in , the amount or quality of our raw materials supply could materially disrupt our production and adversely affect our business and financial condition and financial prospects . the average price that we paid for chestnuts in 2013 and 2012 was approximately $ 1,507 metric ton and $ 1,433 per metric ton , respectively , excluding value added taxes . in the past few years , increasing inflation pressures weighed on the chinese economy which reflected on agricultural product prices . we do not have effective means and do not currently hedge against changes in our raw material prices . consequently , if the costs of our raw materials increase further and we are unable to offset these increases by raising the prices of our products , our profit margins and financial condition could be adversely affected . 26 uncertainties that affect our financial condition we spend a significant amount of cash on our operations , principally to procure raw materials for our products . many of our suppliers , including chestnut , vegetable and fruit farmers , and suppliers of packaging materials , require us to pay for their supplies in cash on the same day that such supplies are delivered to us . however , some of the suppliers with whom we have a long-standing business relationship allow us to pay on credit . we fund the majority of our working capital requirements out of cash flow generated from operations . if we fail to generate sufficient sales , or if our suppliers stop offering us credit terms , we may not have sufficient liquidity to fund our operating costs and our business could be adversely affected . we also funded approximately 21.1 % and 24.4 % of our working capital requirements in 2013 and 2012 , respectively , from the proceeds of short-term loans from chinese banks . we expect to continue to do so in the future . such loans are generally secured by our fixed assets , receivables and or guarantees by third parties . our average loan balance from short-term bank loans in 2013 and 2012 were approximately $ 32.8 million and $ 34.4 million , respectively . the term of almost all such loans is one year or less . historically , we have rolled over such loans on an annual basis . however , in recent years , the chinese government has implemented more stringent credit policies to curb inflation and soaring property prices , which could negatively impact our ability to obtain or roll over these short term loans , and hence not having sufficient funds available to pay all of our borrowings upon maturity . failure to roll over our short-term borrowings at maturity or to service our debt could result in the imposition of penalties , including increases in rates of interest , legal actions against us by our creditors , or even insolvency . in addition , we completed two private placement financings in september 2010 and october 2009 with net proceeds of $ 9.0 million and $ 10.9 million , respectively , the proceeds of which were primarily used as working capital . we also secured a $ 15 million loan from deutsche investitions- und entwicklungsgesellshaft ( “deg” ) in may 2010 , which we have fully drawn down in 2011. we can provide no assurances that we will be able to enter into any future financing or refinancing agreements on terms favorable to us , especially considering the current instability of the capital markets . we anticipate that our existing capital resources , cash flows from operations and current and expected short-term bank loans will be adequate to satisfy our liquidity requirements through 2014. however , if available liquidity is not sufficient to meet our operating and loan obligations as they come due , our plans include considering pursuing alternative financing arrangements or further reducing expenditures as necessary to meet our cash requirements . however , there is no assurance that , if required , we will be able to raise additional capital or reduce discretionary spending to provide the required liquidity . currently , the capital markets for small capitalization companies are difficult and banking institutions have become stringent in their lending requirements . accordingly , we can not be sure of the availability or terms of any third party financing . in 2008 and 2009 , some of our customers , including some of our large supermarket customers , delayed their payments for up to 60 to 90 days beyond their term . our cash flow suffered while waiting for such payments . consequently , at times we had to delay payments to our suppliers and to postpone business expansion as a result of these delayed payments . starting in 2008 and through 2013 we gradually shortened credit terms for many of our international and domestic customers from between 30 and 180 days to between 30 and 60 days . our large customers may fail to meet these shortened credit terms , in which case we may not have sufficient cash flow to fund our operating costs and our business could be adversely affected . recent developments and events on march 13 , 2014 , we acquired 12,750 shares , or 51 % share capital , of athena from two existing shareholders of athena for an aggregate purchase price of €1,995,000 ( or approximately us $ 2,702,650 ) of which €500,000 ( or approximately us $ 677,350 ) ( “deferred payment” ) remains due and payable to intiraimi on february 7 , 2015 under the intiraimi purchase agreement if certain conditions are met . under the terms of the intiraimi purchase agreement , we agreed to pledge 12,750 shares , or 51 % share capital , of athena to intiraimi to guarantee the deferred payment . story_separator_special_tag b. cross-reference to other disclosures currently required under u.s. gaap for other reclassification items ( that are not required under u.s. gaap ) to be reclassified directly to net income in their entirety in the same reporting period . this would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is initially transferred to a balance sheet account ( e.g . , inventory for pension-related amounts ) instead of directly to income or expense . the amendments are effective for reporting periods beginning after december 15 , 2012 , for public companies . management does not expect the adoption of this standard will have a significant effect on the company 's consolidated financial position or results of operations . in february 2013 , the fasb issued asu no . 2013-03 , “clarifying the scope and applicability of a particular disclosure to nonpublic entities” ( “asu 2013-03” ) . the amendment clarifies that the requirement to disclose the level of the fair value hierarchy within which the fair value measurements are categorized in their entirety ( as level 1 , level 2 , or level 3 ) does not apply to private companies and nonpublic not-for-profits for items that are not measured at fair value in the statement of financial position , but for which fair value is disclosed . the amendments are effective upon issuance . management does not expect the adoption of this standard will have a significant effect on the company 's consolidated financial position or results of operations . 34 in march 2013 , the fasb issued asu no . 2013-04 , “obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date” ( “asu 2013-04” ) . the update provides guidance for the recognition , measurement , and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this asu is fixed at the reporting date , except for obligations addressed within existing guidance in us gaap . the guidance requires an entity to measure those obligations as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and any additional amount the reporting entity expects to pay on behalf of its co-obligors . the guidance in this asu also requires an entity to disclose the nature and amount of the obligation as well as other information about those obligations . the amendments in this asu are effective for fiscal years , and interim periods within those years , beginning after december 15 , 2013. management does not expect the adoption of this standard will have a significant effect on the company 's consolidated financial position or results of operations . in march 2013 , the fasb issued asu no . 2013-05 , “parent 's accounting for the cumulative translation adjustment upon derecognition of certain subsidiaries or groups of assets within a foreign entity or of an investment in a foreign entity” ( “asu 2013-05” ) . the asu clarifies that when a parent entity ceases to have a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business ( other than a sale of in substance real estate or conveyance of oil and gas mineral rights ) within a foreign entity , the parent is required to apply the guidance in accounting standards codification 830-30 to release any related cumulative translation adjustment into net income . the asu provides that the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided . the amendments take effect prospectively for public companies for fiscal years beginning after december 15 , 2013 , and interim reporting periods within those years . management does not expect the adoption of this standard will have a significant effect on the company 's consolidated financial position or results of operations . in march 2013 , the fasb issued asu no . 2013-07 , “liquidation basis of accounting” ( “asu 2013-07” ) . the asu requires an entity to prepare its financial statements using the liquidation basis of accounting when liquidation is imminent . liquidation would be considered imminent when the likelihood is remote that the reporting entity would return from liquidation and either : ( a ) a plan for liquidation has been approved by the person or persons with the authority to make such a plan effective and the likelihood is remote that the execution of the plan will be blocked by other parties or the entity will return from liquidation , or ( b ) a plan for liquidation is imposed by other forces , and the likelihood is remote that the entity will return from liquidation . if a plan for liquidation was specified in an entity 's governing documents at its inception ( for example , limited-life entities ) , then liquidation would be imminent only if the approved plan for liquidation differs from the plan specified at the entity 's inception . the amendments take effect for all entities reporting under u.s. gaap , except investment companies that are regulated under the investment company act of 1940. the standard is effective for annual reporting periods beginning after december 31 , 2013 , and interim reporting periods therein . early adoption is permitted . management does not expect the adoption of this standard will have a significant effect on the company 's consolidated financial position or results of operations . in july 2013 , the fasb issued asu no . 2013-11 , “income taxes ( topic 740 ) - presentation of an unrecognized tax benefit when a net operating loss carryforward , a similar tax loss , or a tax credit carryforward exists

in 2014 , our board of directors approved a change in our fiscal year , from a fiscal year ending on december 31 of each calendar year to a fiscal year ending on the saturday closest to december 31 of each calendar year . this change is effective with the 2014 fiscal year . as a result our 2014 fiscal year ended on january 3 , 2015. the change in fiscal year did not have a material impact on our results for fiscal 2014 and did not materially impact the comparison of fiscal 2014 results to fiscal 2013 results discussed below . for purposes of this discussion , fiscal 2014 means the fiscal year ended january 3 , 2015 , fiscal 2013 means the fiscal year ended december 31 , 2013. overview we are a premier juvenile products company originally founded in 1985 and have publicly traded on the nasdaq stock market since 2007 under the symbol `` sumr . `` we create branded juvenile health , safety and wellness products ( targeted for ages 0-3 years ) that are intended to deliver a diverse range of parenting solutions to families . we focus on providing innovative products to meet the `` on-the-go `` lifestyle and demands of families who seek more opportunities to connect with their children . we operate in one principal industry segment across geographically diverse marketplaces , selling our products globally to large , national retailers as well as independent retailers , and on the internet through third-party websites and our own corporate website . in north america , our customers include babies r us , wal-mart , target , amazon.com , buy buy baby , burlington coat factory , kmart , home depot , and lowe 's . our largest european-based customers are mothercare , toys r us , argos and tesco . we also sell through international distributors , representatives , and to select international retail customers in geographic locations where we do not have a direct sales presence . the juvenile products industry is estimated to be a $ 20 billion market worldwide , and consumer focus is on quality , safety , innovation , and style . due to the halo effect of baby products in retail stores , there is a strong retailer commitment to the juvenile category . we believe we are positioned to capitalize on positive market trends in the juvenile products industry , including a predicted increase in u.s. birth rates over the next several years . fiscal 2014 was a transformative year for our company . we made several changes in executive leadership , including the appointment of carol e. bramson , a member of our board of directors , as our chief executive officer in february 2014. we also added several key members to our senior management team during 2014 , including ken price as our president of global sales , ronald t. cardone as our senior vice president , information technology , and anna dooley joined us as senior vice president of product development . in late 2014 , william e. mote , jr. was appointed our chief financial officer and in march 2015 , we announced the appointment of robert stebenne as our president and chief operating officer . in addition , we substantially completed the process of exiting our licensing arrangements with disney® and carters® begun in 2013 to focus on building our own summer® , swaddleme® , and born free® branded products . as a result of exiting these arrangements , net sales in fiscal 2014 were lower than fiscal 2013 while gross profit increased in fiscal 2014 , reflecting the benefit of decreased sales of lower margin licensed , closeout and promotional product sales in fiscal 2014 as compared to fiscal 2013. in april 2014 , we announced a voluntary recall of rechargeable batteries in certain of our handheld video monitors . costs associated with the recall were approximately $ 300 , including shared costs from 15 our monitor manufacturer . the shared costs were taken as a charge to our cost of goods sold in the first quarter of 2014. we do not expect the recall to have a significant effect on 2015. in 2014 , we introduced several new products , including our pop ' n play portable playard , 3d lite™ convenience strollers and bottle genius™ formula dispenser . we also launched homesafe by summer , a line of home safety products , and in late 2014 , we announced our co-branded partnership with little me® , a premier newborn and infant clothing brand . the new co-branded product line is expected to launch in mid-2015 and provides us with the opportunity to broaden the presence of the swaddleme® brand into high-end department stores and premium specialty retailers . in addition , in 2015 we plan to launch our wifi 3.0 monitor and to expand on our success with the 3d lite convenience stroller . we expect to continue to execute on our growth strategy in 2015 by continuing to offer innovative products and to build upon consumer recognition of the summer® , swaddleme® , and born free® brands . summary of critical accounting policies and estimates the following summary of our critical accounting policies is presented to assist in understanding our consolidated financial statements . the consolidated financial statements and notes are representations of our management , who are responsible for their integrity and objectivity . these accounting policies conform to accounting principles generally accepted in the united states of america and have been consistently applied in the preparation of the consolidated financial statements . story_separator_special_tag we receive indications from retailers generally around the middle of each year as to what products the retailer will be taking into its product line for the upcoming year . based on these indications , we will acquire tools and molds required to build and produce the products . in most cases , the payments for the tools and molds are spread over a three to four month period . for fiscal year 2014 , net cash used in operating activities totaled $ 6,276. the use of cash in fiscal year 2014 is primarily attributable to investments made in inventory for 1 ) safety stock for improving sales , 2 ) new product introductions , and 3 ) in anticipation of a potential port strike on the west coast of the united states , where our main distribution center is located , as well as an increase in receivables on higher year over year sales in the fourth quarter . we expect inventory to decline in fiscal 2015 as some of these needs subside . for fiscal year 2013 , net cash provided by operating activities totaled $ 19,061. the cash generated in fiscal year 2013 is primarily attributable to the nonrepeating benefit generated from improved working capital management during the year . 19 for fiscal year 2014 , net cash used in investing activities was approximately $ 2,960. for fiscal year 2013 , net cash used in investing activities was $ 4,322. the decline in net cash used in investing activities was primarily attributable to improved capital investment management . for fiscal year 2014 , net cash provided by financing activities was approximately $ 9,040 , reflecting borrowings primarily to pay for investments made in working capital during the year . for fiscal year 2013 , net cash used in financing activities was $ 15,787 , reflecting a pay down of our credit facilities . based primarily on the above factors , net cash decreased for fiscal year 2014 by $ 301 , resulting in a cash balance of approximately $ 1,272 at fiscal year end . the following table summarizes our significant contractual commitments at fiscal 2014 year end : replace_table_token_3_th estimated future interest payments on our line of credit were based upon the interest rates in effect at january 3 , 2015. story_separator_special_tag products having a value of $ 2,000 or more . in the event of a default , all of our obligations and the obligations of our subsidiaries under the term loan agreement may be declared immediately due and payable . for certain events of default relating to insolvency and receivership , all outstanding obligations would become due and payable . the amount outstanding on the term loan at january 3 , 2015 was $ 12,750. we were in compliance with the financial covenants under the term loan agreement as of january 3 , 2015. off-balance sheet arrangements we did not have any off-balance sheet arrangements during the year ended january 3 , 2015 or the year ended december 31 , 2013. recently issued accounting pronouncements in may 2014 , the fasb issued new accounting guidance related to revenue recognition . this new standard will replace all current u.s. gaap guidance on this topic and eliminate all industry-specific guidance . the new revenue recognition standard provides a unified model to determine when and how revenue is recognized . the core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services . this guidance will be effective beginning january 1 , 2017 and can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption . we are currently evaluating the impact of the adoption of this guidance on its consolidated financial statements . management does not believe that any other recently issued , but not yet effective , accounting standards if currently adopted would have a material effect on the accompanying financial statements . special note regarding forward looking statements this report contains `` forward-looking statements `` within the meaning of section 27a of the securities act of 1933 , as amended , and section 21e of the securities exchange act of 1934 , as amended . these statements concern management 's current assumptions , estimates , beliefs , plans , strategies and expectations and anticipated events or trends and similar expressions concerning matters that are not historical facts . such forward-looking information may be identified by terms such as 22 `` expect , `` `` anticipate , `` `` believe , `` `` outlook , `` `` may , `` `` estimate , `` `` should , `` `` predict `` and similar terms or variations thereof , and includes statements regarding the effectiveness of our strategy to promote future growth and profitability , the strength of our customer and supplier relationships , our liquidity for the next 12 months , the ability of our new leadership team and expected trends and product offerings in 2015. these statements are based on a series of expectations , assumptions , estimates and projections about our company , are not guarantees of future results or performance , and involve significant risks , uncertainties and other factors , including assumptions and projections , for all forward periods . our actual results may differ materially from any future results expressed or implied by such forward-looking statements . such factors include , among others , the following : the concentration of our business with a small number of retail customers ; the purchasing policies of and advertising and promotional support from our customers ; our ability to compete by introducing new products or enhancing existing products that satisfy consumer preferences ; our ability to develop new products in a timely and cost-efficient manner ; our ability to manage inventory levels and

capital resources in addition to operating cash flow , we also rely on our existing asset-based revolving credit facility with bank of america , n.a . to meet our financing requirements , which are subject to changes in our inventory and account receivable levels . we regularly evaluate market conditions , our liquidity profile , and various financing alternatives for opportunities to enhance our capital structure . if market conditions are favorable , we may refinance our existing debt or issue additional securities . based on past performance and current expectations , we believe that our anticipated cash flow from operations and availability under our existing credit facility are sufficient to fund our working capital , capital expenditures and debt service requirements for at least the next 12 months . however , if we are unable to meet our current financial forecast and can not raise additional funds or adjust our operations accordingly , we may not remain in compliance with the financial covenants required under our revolving credit facility . unforeseen circumstances , such as softness in the retail industry or deterioration in the business of a significant customer , could create a situation where we can not access all of our available lines of credit due to not having sufficient assets or fixed charge coverage ratio as required under our credit facility . there is no assurance that we will meet all of our financial or other covenants in the future , or that our lenders will grant waivers if there are covenant violations . in addition , should we need to raise additional funds through additional debt or equity financings , any sale of additional debt or equity securities may cause dilution to existing stockholders . if sufficient funds are not available or are not available on acceptable terms , our ability to address any unexpected changes in our operations could be limited . furthermore , there can be no assurance that we will be able to raise such funds if and when they are required . failure to obtain future funding when needed or on acceptable terms could materially adversely affect our results of operations . 20 credit facility the following is a summary of our existing 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. ```capital resources in addition to operating cash flow , we also rely on our existing asset-based revolving credit facility with bank of america , n.a . to meet our financing requirements , which are subject to changes in our inventory and account receivable levels . we regularly evaluate market conditions , our liquidity profile , and various financing alternatives for opportunities to enhance our capital structure . if market conditions are favorable , we may refinance our existing debt or issue additional securities . based on past performance and current expectations , we believe that our anticipated cash flow from operations and availability under our existing credit facility are sufficient to fund our working capital , capital expenditures and debt service requirements for at least the next 12 months . however , if we are unable to meet our current financial forecast and can not raise additional funds or adjust our operations accordingly , we may not remain in compliance with the financial covenants required under our revolving credit facility . unforeseen circumstances , such as softness in the retail industry or deterioration in the business of a significant customer , could create a situation where we can not access all of our available lines of credit due to not having sufficient assets or fixed charge coverage ratio as required under our credit facility . there is no assurance that we will meet all of our financial or other covenants in the future , or that our lenders will grant waivers if there are covenant violations . in addition , should we need to raise additional funds through additional debt or equity financings , any sale of additional debt or equity securities may cause dilution to existing stockholders . if sufficient funds are not available or are not available on acceptable terms , our ability to address any unexpected changes in our operations could be limited . furthermore , there can be no assurance that we will be able to raise such funds if and when they are required . failure to obtain future funding when needed or on acceptable terms could materially adversely affect our results of operations . 20 credit facility the following is a summary of our existing credit facility . ``` Suspicious Activity Report : in 2014 , our board of directors approved a change in our fiscal year , from a fiscal year ending on december 31 of each calendar year to a fiscal year ending on the saturday closest to december 31 of each calendar year . this change is effective with the 2014 fiscal year . as a result our 2014 fiscal year ended on january 3 , 2015. the change in fiscal year did not have a material impact on our results for fiscal 2014 and did not materially impact the comparison of fiscal 2014 results to fiscal 2013 results discussed below . for purposes of this discussion , fiscal 2014 means the fiscal year ended january 3 , 2015 , fiscal 2013 means the fiscal year ended december 31 , 2013. overview we are a premier juvenile products company originally founded in 1985 and have publicly traded on the nasdaq stock market since 2007 under the symbol `` sumr . `` we create branded juvenile health , safety and wellness products ( targeted for ages 0-3 years ) that are intended to deliver a diverse range of parenting solutions to families . we focus on providing innovative products to meet the `` on-the-go `` lifestyle and demands of families who seek more opportunities to connect with their children . we operate in one principal industry segment across geographically diverse marketplaces , selling our products globally to large , national retailers as well as independent retailers , and on the internet through third-party websites and our own corporate website . in north america , our customers include babies r us , wal-mart , target , amazon.com , buy buy baby , burlington coat factory , kmart , home depot , and lowe 's . our largest european-based customers are mothercare , toys r us , argos and tesco . we also sell through international distributors , representatives , and to select international retail customers in geographic locations where we do not have a direct sales presence . the juvenile products industry is estimated to be a $ 20 billion market worldwide , and consumer focus is on quality , safety , innovation , and style . due to the halo effect of baby products in retail stores , there is a strong retailer commitment to the juvenile category . we believe we are positioned to capitalize on positive market trends in the juvenile products industry , including a predicted increase in u.s. birth rates over the next several years . fiscal 2014 was a transformative year for our company . we made several changes in executive leadership , including the appointment of carol e. bramson , a member of our board of directors , as our chief executive officer in february 2014. we also added several key members to our senior management team during 2014 , including ken price as our president of global sales , ronald t. cardone as our senior vice president , information technology , and anna dooley joined us as senior vice president of product development . in late 2014 , william e. mote , jr. was appointed our chief financial officer and in march 2015 , we announced the appointment of robert stebenne as our president and chief operating officer . in addition , we substantially completed the process of exiting our licensing arrangements with disney® and carters® begun in 2013 to focus on building our own summer® , swaddleme® , and born free® branded products . as a result of exiting these arrangements , net sales in fiscal 2014 were lower than fiscal 2013 while gross profit increased in fiscal 2014 , reflecting the benefit of decreased sales of lower margin licensed , closeout and promotional product sales in fiscal 2014 as compared to fiscal 2013. in april 2014 , we announced a voluntary recall of rechargeable batteries in certain of our handheld video monitors . costs associated with the recall were approximately $ 300 , including shared costs from 15 our monitor manufacturer . the shared costs were taken as a charge to our cost of goods sold in the first quarter of 2014. we do not expect the recall to have a significant effect on 2015. in 2014 , we introduced several new products , including our pop ' n play portable playard , 3d lite™ convenience strollers and bottle genius™ formula dispenser . we also launched homesafe by summer , a line of home safety products , and in late 2014 , we announced our co-branded partnership with little me® , a premier newborn and infant clothing brand . the new co-branded product line is expected to launch in mid-2015 and provides us with the opportunity to broaden the presence of the swaddleme® brand into high-end department stores and premium specialty retailers . in addition , in 2015 we plan to launch our wifi 3.0 monitor and to expand on our success with the 3d lite convenience stroller . we expect to continue to execute on our growth strategy in 2015 by continuing to offer innovative products and to build upon consumer recognition of the summer® , swaddleme® , and born free® brands . summary of critical accounting policies and estimates the following summary of our critical accounting policies is presented to assist in understanding our consolidated financial statements . the consolidated financial statements and notes are representations of our management , who are responsible for their integrity and objectivity . these accounting policies conform to accounting principles generally accepted in the united states of america and have been consistently applied in the preparation of the consolidated financial statements . story_separator_special_tag we receive indications from retailers generally around the middle of each year as to what products the retailer will be taking into its product line for the upcoming year . based on these indications , we will acquire tools and molds required to build and produce the products . in most cases , the payments for the tools and molds are spread over a three to four month period . for fiscal year 2014 , net cash used in operating activities totaled $ 6,276. the use of cash in fiscal year 2014 is primarily attributable to investments made in inventory for 1 ) safety stock for improving sales , 2 ) new product introductions , and 3 ) in anticipation of a potential port strike on the west coast of the united states , where our main distribution center is located , as well as an increase in receivables on higher year over year sales in the fourth quarter . we expect inventory to decline in fiscal 2015 as some of these needs subside . for fiscal year 2013 , net cash provided by operating activities totaled $ 19,061. the cash generated in fiscal year 2013 is primarily attributable to the nonrepeating benefit generated from improved working capital management during the year . 19 for fiscal year 2014 , net cash used in investing activities was approximately $ 2,960. for fiscal year 2013 , net cash used in investing activities was $ 4,322. the decline in net cash used in investing activities was primarily attributable to improved capital investment management . for fiscal year 2014 , net cash provided by financing activities was approximately $ 9,040 , reflecting borrowings primarily to pay for investments made in working capital during the year . for fiscal year 2013 , net cash used in financing activities was $ 15,787 , reflecting a pay down of our credit facilities . based primarily on the above factors , net cash decreased for fiscal year 2014 by $ 301 , resulting in a cash balance of approximately $ 1,272 at fiscal year end . the following table summarizes our significant contractual commitments at fiscal 2014 year end : replace_table_token_3_th estimated future interest payments on our line of credit were based upon the interest rates in effect at january 3 , 2015. story_separator_special_tag products having a value of $ 2,000 or more . in the event of a default , all of our obligations and the obligations of our subsidiaries under the term loan agreement may be declared immediately due and payable . for certain events of default relating to insolvency and receivership , all outstanding obligations would become due and payable . the amount outstanding on the term loan at january 3 , 2015 was $ 12,750. we were in compliance with the financial covenants under the term loan agreement as of january 3 , 2015. off-balance sheet arrangements we did not have any off-balance sheet arrangements during the year ended january 3 , 2015 or the year ended december 31 , 2013. recently issued accounting pronouncements in may 2014 , the fasb issued new accounting guidance related to revenue recognition . this new standard will replace all current u.s. gaap guidance on this topic and eliminate all industry-specific guidance . the new revenue recognition standard provides a unified model to determine when and how revenue is recognized . the core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services . this guidance will be effective beginning january 1 , 2017 and can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption . we are currently evaluating the impact of the adoption of this guidance on its consolidated financial statements . management does not believe that any other recently issued , but not yet effective , accounting standards if currently adopted would have a material effect on the accompanying financial statements . special note regarding forward looking statements this report contains `` forward-looking statements `` within the meaning of section 27a of the securities act of 1933 , as amended , and section 21e of the securities exchange act of 1934 , as amended . these statements concern management 's current assumptions , estimates , beliefs , plans , strategies and expectations and anticipated events or trends and similar expressions concerning matters that are not historical facts . such forward-looking information may be identified by terms such as 22 `` expect , `` `` anticipate , `` `` believe , `` `` outlook , `` `` may , `` `` estimate , `` `` should , `` `` predict `` and similar terms or variations thereof , and includes statements regarding the effectiveness of our strategy to promote future growth and profitability , the strength of our customer and supplier relationships , our liquidity for the next 12 months , the ability of our new leadership team and expected trends and product offerings in 2015. these statements are based on a series of expectations , assumptions , estimates and projections about our company , are not guarantees of future results or performance , and involve significant risks , uncertainties and other factors , including assumptions and projections , for all forward periods . our actual results may differ materially from any future results expressed or implied by such forward-looking statements . such factors include , among others , the following : the concentration of our business with a small number of retail customers ; the purchasing policies of and advertising and promotional support from our customers ; our ability to compete by introducing new products or enhancing existing products that satisfy consumer preferences ; our ability to develop new products in a timely and cost-efficient manner ; our ability to manage inventory levels and

unexpected liabilities under any pension plans applicable to our employees ; work stoppages , union negotiations , labor disputes and other matters associated with our labor force ; our ability to protect and enforce intellectual property rights ; intellectual property infringement suits against us by third parties ; our ability to realize the anticipated benefits of any acquisitions and divestitures ; our joint ventures ' ability to operate according to our business strategy should our joint venture partners fail to fulfill their obligations ; risk that the insurance we maintain may not fully cover all potential exposures ; the risk of impairment charges related to goodwill , identifiable intangible assets and fixed assets ; our substantial indebtedness ; our ability to obtain additional capital on commercially reasonable terms may be limited ; the amount of the costs , fees , expenses and charges related to being a public company ; any statements of belief and any statements of assumptions underlying any of the foregoing ; other factors disclosed in this annual report on form 10-k ; and other factors beyond our control . these cautionary statements should not be construed by you to be exhaustive and are made only as of the date of this annual report on form 10-k. we undertake no obligation to update or revise any forward-looking statements , whether as a result of new information , future events or otherwise . overview we are a leading global manufacturer , marketer and distributor of high performance coatings systems . we have over a 150 -year heritage in the coatings industry and are known for manufacturing high-quality products with well-recognized brands supported by market-leading technologies and customer service . our diverse global footprint of 46 manufacturing facilities , four technology centers , 47 customer training centers and approximately 13,000 employees allows us to meet the needs of customers in over 130 countries . we serve our customers through an extensive sales force and technical support organization , as well as through approximately 4,000 independent , locally based distributors . we operate our business in two operating segments , performance coatings and transportation coatings . our segments are based on the type and concentration of customers served , service requirements , methods of distribution and major product lines . through our performance coatings segment we provide high-quality liquid and powder coatings solutions to a fragmented and local customer base . we are one of only a few suppliers with the technology to provide precise color matching and highly durable coatings systems . the end-markets within this segment are refinish and industrial . through our transportation coatings segment we provide advanced coating technologies to oems of light and commercial vehicles . these increasingly global customers require a high level of technical support coupled with cost-effective , environmentally responsible , coatings systems that can be applied with a high degree of precision , consistency and speed . the end-markets within this segment are light vehicle and commercial vehicle . 38 business highlights general business highlights our net sales decreased 0.3 % for the year ended december 31 , 2016 compared to the year ended december 31 , 2015 , due to a decline of 4.6 % from unfavorable currency translation . this decrease was largely offset as a result of higher average selling prices as well as stronger volumes which together contributed to 4.3 % of growth . the following trends have impacted our segment and end-market sales performance for the year ended december 31 , 2016 : performance coatings : net sales excluding currency translation increased approximately 6.6 % driven by increases in average selling price within our refinish end-market , particularly within north america and latin america . furthering these increases was volume growth in both our refinish and industrial end-markets , including the benefits associated with our acquisitions completed during 2016. transportation coatings : net sales excluding currency translation increased approximately 1.1 % driven primarily by volume growth within our light vehicle end-market as a result of business wins and increased vehicle builds in north america and asia offset by volume declines within our commercial vehicle end-market in north america as a result of overall industry demand . our business serves four end-markets globally as follows : replace_table_token_4_th acquisitions highlights during the year ended december 31 , 2016 , we successfully completed multiple strategic business acquisitions across both of our segments . these include a refinish business based in southeast asia , a light vehicle business specializing in interior coatings based in north america , a fifty-one percent controlling interest in a north american industrial business specializing in coil and spray coatings , and a refinish distributor in western europe . our 2016 aggregate spending for these acquisitions was $ 114.8 million , net of cash acquired , and contributed $ 50.4 million to net sales in 2016. capital and liquidity highlights during the year ended december 31 , 2016 , we refinanced or amended our senior notes and credit agreement , including extending the maturity date on our revolving credit facility , allowing us to lower interest rates , extend maturity profiles , rebalance our dollar and euro mix of debt and favorably change certain debt covenants . in addition , we made prepayments on our 2020 term loans ( as defined herein ) totaling $ 474.4 million during 2016. the benefits of these transactions are anticipated to save approximately $ 35.0 million in annual cash interest . for additional information , refer to note 21 to the consolidated financial statements included elsewhere in the annual report on form 10-k and our liquidity and capital resource discussion within this item 7. other highlights effective with the august 2016 carlyle offering , carlyle no longer has any beneficial interest in axalta 's common shares , other than de minimis amounts held or owned in the ordinary course of business purchased subsequent to the initial february 1 , 2013 acquisition . story_separator_special_tag the decrease from currency translation was slightly offset by the contribution of higher volumes of 1.7 % which includes impacts of our acquisitions completed during 2016. cost of sales as a percentage of net sales decreased from 63.5 % for the year ended december 31 , 2015 to 62.0 % for the year ended december 31 , 2016 primarily as a result of reductions associated with lower raw material prices , favorable pricing on our product mix and impacts of our cost savings initiatives . selling , general and administrative expenses selling , general and administrative expenses increased $ 47.7 million , or 5.2 % , to $ 962.5 million for the year ended december 31 , 2016 compared to $ 914.8 million for the year ended december 31 , 2015 . selling , general and administrative expenses for the year ended december 31 , 2016 included $ 77.6 million of costs related to our cost-savings initiatives as compared to $ 64.4 million of costs for the year ended december 31 , 2015 associated with our transition-related activities and cost-savings initiatives , resulting in an increase of $ 13.2 million over the comparable period . in addition , there was an increase of $ 8.0 million in stock-based compensation for the year ended december 31 , 2016 . further contributing to the increase during the year ended december 31 , 2016 over the comparable period were increases in selling expense associated with increased sales volumes and $ 17.5 million in costs related to our recent acquisitions . offsetting these increases were favorable impacts of currency exchange during the year ended december 31 , 2016 , which contributed to an approximately 1.7 % reduction in selling , general and administrative expenses due primarily to the weakening of certain currencies within latin america compared to the u.s. dollar . venezuela asset impairment venezuela asset impairment relates to the impairment charge of $ 57.9 million recognized during the year ended december 31 , 2016 relating to our long-lived assets within our venezuelan subsidiary . there was no comparative impairment recorded during the year ended december 31 , 2015 . research and development expenses research and development expenses increased $ 6.1 million , or 11.8 % , to $ 57.7 million for the year ended december 31 , 2016 compared to $ 51.6 million for the year ended december 31 , 2015 . this increase was driven by additional spending as we focus on developing new and existing coatings products as well as sourcing additional capabilities . the impacts of currency exchange did not have a material impact on the comparable periods . amortization of acquired intangibles amortization of acquired intangibles increased $ 2.7 million , or 3.3 % , to $ 83.4 million for the year ended december 31 , 2016 compared to $ 80.7 million for the year ended december 31 , 2015 . this increase was a result of our recent acquisitions , which contributed $ 3.5 million , offset slightly by the impacts of weakening currencies in all regions against the u.s. dollar . interest expense , net interest expense , net decreased $ 18.3 million , or 9.3 % , to $ 178.2 million for the year ended december 31 , 2016 compared to $ 196.5 million for the year ended december 31 , 2015 . the decrease was driven by the prepayment of principal balances associated with our 2020 dollar term loans made in 2015 and 2016 and the prepayment on the principal balance of our 2020 euro term loans made in 2016. additionally , refinancing of our senior indebtedness during the year ended december 31 , 2016 , reduced the overall interest rates of our debt portfolio and further contributed to the decrease . other expense , net other expense , net increased $ 31.5 million , or 28.3 % , to $ 142.7 million for the year ended december 31 , 2016 compared to $ 111.2 million for the year ended december 31 , 2015 . the amendment to our credit agreement , refinancing of our indebtedness and prepayments of our term loans during the year ended december 31 , 2016 resulted in an increase in other expense over the comparable period of $ 95.1 million . during the year ended december 31 , 2016 there were $ 4.3 million in losses on derivative instruments associated with our foreign currency contracts compared to $ 5.6 million in gains during the year ended december 31 , 2015 , resulting in a $ 9.9 million increase . in addition , we recognized a gain of $ 5.4 million for the year ended december 31 , 2015 resulting from the remeasurement of our previously held interest in an equity method investee upon the acquisition of a controlling interest whereas no similar gain was recognized during the year ended december 31 , 2016 , thereby resulting in an increase in other expense , net for the comparable periods . 45 during the year ended december 31 , 2016 our venezuelan subsidiary continued to be impacted by a significant devaluation of its currency translation rates . this devaluation resulted in impairment charges of $ 10.5 million and $ 30.6 million for the years ended december 31 , 2016 and 2015 , respectively , based on our evaluation of the carrying value associated with our real estate investment , resulting in a decrease of $ 20.1 million over the comparable period . offsetting the year over year loss , foreign exchange losses , net , decreased from $ 93.7 million for the year ended december 31 , 2015 to $ 30.6 million for the year ended december 31 , 2016. this decrease was primarily driven by the revaluation of our venezuela subsidiary which resulted in $ 51.5 million for the year ended december 31 , 2015 compared to $ 23.5 million for the year ended december 31 , 2016. the remaining decrease primarily related to the remeasurement of intercompany transactional exposures denominated

net cash used in investing activities net cash used in investing activities for the year ended december 31 , 2016 was $ 257.0 million . this use was substantially driven by purchases of property , plant and equipment of $ 136.2 million , business acquisitions of $ 114.8 million ( net of cash acquired ) , and $ 6.0 million of other investing activities that includes $ 3.9 million of asset acquisitions . 52 net cash used in financing activities net cash used in financing activities for the year ended december 31 , 2016 was $ 232.6 million . this use was driven by payments of $ 1,755.7 million relating to the redemption of our 2021 dollar and euro senior notes , the net paydown and early repayments of our 2020 term loans , and quarterly principal payments as required under the credit agreement . these payments were offset by proceeds of $ 1,604.3 million relating to the issuance of our new 2024 dollar and euro senior notes and our new 2025 euro senior notes , as well as the increase in principal on our 2023 euro term loans as a part of the refinancing . the issuance and refinancing of our new indebtedness required us to pay financing costs of $ 86.3 million , which included a premium for early redemption of our 2021 dollar and euro senior notes of $ 56.6 million . in addition , we had cash received from stock options exercised for $ 16.7 million , which is offset by repayments of short-term borrowings of $ 8.6 million , dividends paid to noncontrolling interests of $ 3.0 million , and $ 0.2 million of other financing activities . other impacts on cash currency exchange impacts on cash for the year ended december 31 , 2016 were $ 19.3 million primarily driven by the impacts on cash resulting from the weakening of our translation rates compared to the u.s. dollar for our venezuelan subsidiary which contributed $ 14.0 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. ```net cash used in investing activities net cash used in investing activities for the year ended december 31 , 2016 was $ 257.0 million . this use was substantially driven by purchases of property , plant and equipment of $ 136.2 million , business acquisitions of $ 114.8 million ( net of cash acquired ) , and $ 6.0 million of other investing activities that includes $ 3.9 million of asset acquisitions . 52 net cash used in financing activities net cash used in financing activities for the year ended december 31 , 2016 was $ 232.6 million . this use was driven by payments of $ 1,755.7 million relating to the redemption of our 2021 dollar and euro senior notes , the net paydown and early repayments of our 2020 term loans , and quarterly principal payments as required under the credit agreement . these payments were offset by proceeds of $ 1,604.3 million relating to the issuance of our new 2024 dollar and euro senior notes and our new 2025 euro senior notes , as well as the increase in principal on our 2023 euro term loans as a part of the refinancing . the issuance and refinancing of our new indebtedness required us to pay financing costs of $ 86.3 million , which included a premium for early redemption of our 2021 dollar and euro senior notes of $ 56.6 million . in addition , we had cash received from stock options exercised for $ 16.7 million , which is offset by repayments of short-term borrowings of $ 8.6 million , dividends paid to noncontrolling interests of $ 3.0 million , and $ 0.2 million of other financing activities . other impacts on cash currency exchange impacts on cash for the year ended december 31 , 2016 were $ 19.3 million primarily driven by the impacts on cash resulting from the weakening of our translation rates compared to the u.s. dollar for our venezuelan subsidiary which contributed $ 14.0 million . ``` Suspicious Activity Report : unexpected liabilities under any pension plans applicable to our employees ; work stoppages , union negotiations , labor disputes and other matters associated with our labor force ; our ability to protect and enforce intellectual property rights ; intellectual property infringement suits against us by third parties ; our ability to realize the anticipated benefits of any acquisitions and divestitures ; our joint ventures ' ability to operate according to our business strategy should our joint venture partners fail to fulfill their obligations ; risk that the insurance we maintain may not fully cover all potential exposures ; the risk of impairment charges related to goodwill , identifiable intangible assets and fixed assets ; our substantial indebtedness ; our ability to obtain additional capital on commercially reasonable terms may be limited ; the amount of the costs , fees , expenses and charges related to being a public company ; any statements of belief and any statements of assumptions underlying any of the foregoing ; other factors disclosed in this annual report on form 10-k ; and other factors beyond our control . these cautionary statements should not be construed by you to be exhaustive and are made only as of the date of this annual report on form 10-k. we undertake no obligation to update or revise any forward-looking statements , whether as a result of new information , future events or otherwise . overview we are a leading global manufacturer , marketer and distributor of high performance coatings systems . we have over a 150 -year heritage in the coatings industry and are known for manufacturing high-quality products with well-recognized brands supported by market-leading technologies and customer service . our diverse global footprint of 46 manufacturing facilities , four technology centers , 47 customer training centers and approximately 13,000 employees allows us to meet the needs of customers in over 130 countries . we serve our customers through an extensive sales force and technical support organization , as well as through approximately 4,000 independent , locally based distributors . we operate our business in two operating segments , performance coatings and transportation coatings . our segments are based on the type and concentration of customers served , service requirements , methods of distribution and major product lines . through our performance coatings segment we provide high-quality liquid and powder coatings solutions to a fragmented and local customer base . we are one of only a few suppliers with the technology to provide precise color matching and highly durable coatings systems . the end-markets within this segment are refinish and industrial . through our transportation coatings segment we provide advanced coating technologies to oems of light and commercial vehicles . these increasingly global customers require a high level of technical support coupled with cost-effective , environmentally responsible , coatings systems that can be applied with a high degree of precision , consistency and speed . the end-markets within this segment are light vehicle and commercial vehicle . 38 business highlights general business highlights our net sales decreased 0.3 % for the year ended december 31 , 2016 compared to the year ended december 31 , 2015 , due to a decline of 4.6 % from unfavorable currency translation . this decrease was largely offset as a result of higher average selling prices as well as stronger volumes which together contributed to 4.3 % of growth . the following trends have impacted our segment and end-market sales performance for the year ended december 31 , 2016 : performance coatings : net sales excluding currency translation increased approximately 6.6 % driven by increases in average selling price within our refinish end-market , particularly within north america and latin america . furthering these increases was volume growth in both our refinish and industrial end-markets , including the benefits associated with our acquisitions completed during 2016. transportation coatings : net sales excluding currency translation increased approximately 1.1 % driven primarily by volume growth within our light vehicle end-market as a result of business wins and increased vehicle builds in north america and asia offset by volume declines within our commercial vehicle end-market in north america as a result of overall industry demand . our business serves four end-markets globally as follows : replace_table_token_4_th acquisitions highlights during the year ended december 31 , 2016 , we successfully completed multiple strategic business acquisitions across both of our segments . these include a refinish business based in southeast asia , a light vehicle business specializing in interior coatings based in north america , a fifty-one percent controlling interest in a north american industrial business specializing in coil and spray coatings , and a refinish distributor in western europe . our 2016 aggregate spending for these acquisitions was $ 114.8 million , net of cash acquired , and contributed $ 50.4 million to net sales in 2016. capital and liquidity highlights during the year ended december 31 , 2016 , we refinanced or amended our senior notes and credit agreement , including extending the maturity date on our revolving credit facility , allowing us to lower interest rates , extend maturity profiles , rebalance our dollar and euro mix of debt and favorably change certain debt covenants . in addition , we made prepayments on our 2020 term loans ( as defined herein ) totaling $ 474.4 million during 2016. the benefits of these transactions are anticipated to save approximately $ 35.0 million in annual cash interest . for additional information , refer to note 21 to the consolidated financial statements included elsewhere in the annual report on form 10-k and our liquidity and capital resource discussion within this item 7. other highlights effective with the august 2016 carlyle offering , carlyle no longer has any beneficial interest in axalta 's common shares , other than de minimis amounts held or owned in the ordinary course of business purchased subsequent to the initial february 1 , 2013 acquisition . story_separator_special_tag the decrease from currency translation was slightly offset by the contribution of higher volumes of 1.7 % which includes impacts of our acquisitions completed during 2016. cost of sales as a percentage of net sales decreased from 63.5 % for the year ended december 31 , 2015 to 62.0 % for the year ended december 31 , 2016 primarily as a result of reductions associated with lower raw material prices , favorable pricing on our product mix and impacts of our cost savings initiatives . selling , general and administrative expenses selling , general and administrative expenses increased $ 47.7 million , or 5.2 % , to $ 962.5 million for the year ended december 31 , 2016 compared to $ 914.8 million for the year ended december 31 , 2015 . selling , general and administrative expenses for the year ended december 31 , 2016 included $ 77.6 million of costs related to our cost-savings initiatives as compared to $ 64.4 million of costs for the year ended december 31 , 2015 associated with our transition-related activities and cost-savings initiatives , resulting in an increase of $ 13.2 million over the comparable period . in addition , there was an increase of $ 8.0 million in stock-based compensation for the year ended december 31 , 2016 . further contributing to the increase during the year ended december 31 , 2016 over the comparable period were increases in selling expense associated with increased sales volumes and $ 17.5 million in costs related to our recent acquisitions . offsetting these increases were favorable impacts of currency exchange during the year ended december 31 , 2016 , which contributed to an approximately 1.7 % reduction in selling , general and administrative expenses due primarily to the weakening of certain currencies within latin america compared to the u.s. dollar . venezuela asset impairment venezuela asset impairment relates to the impairment charge of $ 57.9 million recognized during the year ended december 31 , 2016 relating to our long-lived assets within our venezuelan subsidiary . there was no comparative impairment recorded during the year ended december 31 , 2015 . research and development expenses research and development expenses increased $ 6.1 million , or 11.8 % , to $ 57.7 million for the year ended december 31 , 2016 compared to $ 51.6 million for the year ended december 31 , 2015 . this increase was driven by additional spending as we focus on developing new and existing coatings products as well as sourcing additional capabilities . the impacts of currency exchange did not have a material impact on the comparable periods . amortization of acquired intangibles amortization of acquired intangibles increased $ 2.7 million , or 3.3 % , to $ 83.4 million for the year ended december 31 , 2016 compared to $ 80.7 million for the year ended december 31 , 2015 . this increase was a result of our recent acquisitions , which contributed $ 3.5 million , offset slightly by the impacts of weakening currencies in all regions against the u.s. dollar . interest expense , net interest expense , net decreased $ 18.3 million , or 9.3 % , to $ 178.2 million for the year ended december 31 , 2016 compared to $ 196.5 million for the year ended december 31 , 2015 . the decrease was driven by the prepayment of principal balances associated with our 2020 dollar term loans made in 2015 and 2016 and the prepayment on the principal balance of our 2020 euro term loans made in 2016. additionally , refinancing of our senior indebtedness during the year ended december 31 , 2016 , reduced the overall interest rates of our debt portfolio and further contributed to the decrease . other expense , net other expense , net increased $ 31.5 million , or 28.3 % , to $ 142.7 million for the year ended december 31 , 2016 compared to $ 111.2 million for the year ended december 31 , 2015 . the amendment to our credit agreement , refinancing of our indebtedness and prepayments of our term loans during the year ended december 31 , 2016 resulted in an increase in other expense over the comparable period of $ 95.1 million . during the year ended december 31 , 2016 there were $ 4.3 million in losses on derivative instruments associated with our foreign currency contracts compared to $ 5.6 million in gains during the year ended december 31 , 2015 , resulting in a $ 9.9 million increase . in addition , we recognized a gain of $ 5.4 million for the year ended december 31 , 2015 resulting from the remeasurement of our previously held interest in an equity method investee upon the acquisition of a controlling interest whereas no similar gain was recognized during the year ended december 31 , 2016 , thereby resulting in an increase in other expense , net for the comparable periods . 45 during the year ended december 31 , 2016 our venezuelan subsidiary continued to be impacted by a significant devaluation of its currency translation rates . this devaluation resulted in impairment charges of $ 10.5 million and $ 30.6 million for the years ended december 31 , 2016 and 2015 , respectively , based on our evaluation of the carrying value associated with our real estate investment , resulting in a decrease of $ 20.1 million over the comparable period . offsetting the year over year loss , foreign exchange losses , net , decreased from $ 93.7 million for the year ended december 31 , 2015 to $ 30.6 million for the year ended december 31 , 2016. this decrease was primarily driven by the revaluation of our venezuela subsidiary which resulted in $ 51.5 million for the year ended december 31 , 2015 compared to $ 23.5 million for the year ended december 31 , 2016. the remaining decrease primarily related to the remeasurement of intercompany transactional exposures denominated

due to the impact of the strong u.s. dollar on foreign currency , our large multi-national customers , who generate a significant amount of their revenues outside the u.s. , continue to be cautious . in the year ended december 31 , 2015 , online revenues from our top 12 global customers , which have the most international exposure , decreased slightly compared to the same period a year ago . online revenues from our mid-sized customers ( our next largest 100 customers , who have less exposure internationally ) increased by approximately 15 % year over year . revenues attributable to our smaller customers , which tend to be venture capital-backed start-ups that primarily operate in north america , increased by approximately 21 % over the prior year period . all three customer segments continued to report a challenging environment , and this translated into our customers remaining cautious with their marketing expenditures . our key strategic initiatives include : geographic – during 2015 , approximately 33 % of our online revenues were derived from international campaigns . international online revenues ( which also includes it deal alert revenues of $ 3.8 million as discussed below ) increased by approximately 12 % in the year ended december 31 , 2015 as compared to the same period a year ago . we continue to execute very well internationally as we continue to deepen our relatively new relationships with our customers in the united kingdom , france , germany , australia , singapore , china and latin america . due to the impact of the strong u.s. dollar on foreign currency , however , our largest customers continue to be cautious . product – it deal alert revenues were approximately $ 23.2 million in the year ended december 31 , 2015 , up from approximately $ 16.8 million in the same period in 2014. this includes international it deal alert revenues of $ 3.8 million , which is also included in international revenues as discussed above . in the fourth quarter of 2015 , we had over 288 active customers utilizing our it deal alert products and services ; this is up from 260 customers in the third quarter of 2015. we expect it deal alert to continue to be a meaningful growth driver into 2016. sources of revenues we sell customized marketing programs to it vendors targeting a specific audience within a particular it sector or sub-sector . we maintain multiple points of contact with our customers to provide support throughout their organizations and their customers ' it sales cycles . as a result , our customers often run multiple advertising programs with us in order to target their desired audience of it professionals more effectively . there are multiple factors that can impact our customers ' advertising objectives and spending with us , including but not limited to , it product launches , increases or decreases to their advertising budgets , the timing of key industry marketing events , responses to competitor activities and efforts to address specific marketing objectives such as creating brand awareness or generating sales leads . our products and services are generally delivered under short-term contracts that run for the length of a given advertising program , typically less than six months . in the year ended december 31 , 2015 , demand generation and brand advertising remained our primary sources of revenue , while data analytics-driven intelligence solutions , driven by growth in our it deal alert products and services , contributed approximately 22 % of online revenue as compared with approximately 17 % for the same period in 2014 . 39 the majority of our revenues are derived from the delivery of our online offerings . online revenue represented 94 % , 92 % and 90 % of total revenues for the years ended december 31 , 2015 , 2014 and 2013 , respectively . we use online and a select number of face-to-face event offerings to provide it vendors with numerous touch points to identify , reach and influence key it decision makers . the following is a description of the products and services we offer : online offerings it deal alert . it deal alert is a suite of products and services for it vendors that leverages the detailed purchase intent data that we collect about end-user it organizations . through proprietary scoring methodologies , we use this data to help our customers identify and prioritize accounts whose content consumption around specific it topics indicates that they are “in-market” for a particular product or service . we also use the data directly to identify and further profile accounts ' upcoming purchase plans . it deal alert : qualified sales opportunities . qualified sales opportunities is a product that profiles specific in-progress purchase projects , including information on scope and purchase considerations , in over 100 technology-specific segments . it deal alert : priority engine . priority engine is a subscription service powered by our activity intelligence platform , which integrates with salesforce.com . the service delivers information to allow marketers and sales personnel to identify accounts actively researching new technology purchases , and to reach active prospects within those organizations that are relevant to the purchase . we sell this service in approximately 300 technology-specific segments . it deal alert : deal data . deal data is a customized solution aimed at sales intelligence and data scientist functions within our customers that makes our activity intelligence data directly consumable by the customer 's internal applications . it deal alert : techtarget research . techtarget research is a newly launched subscription product that sources proprietary information about purchase transactions from it professionals who are making and have recently completed these purchases . the offering provides data on market trends , pricing dynamics and vendor win/loss and displacement trends . core online . story_separator_special_tag we review our allowance for doubtful accounts on a regular basis , and all past due balances are reviewed individually for collectability . account balances are charged against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote . provisions for doubtful accounts are recorded in general and administrative expense . if our historical collection experience does not reflect our future ability to collect outstanding accounts receivable , our future provision for doubtful accounts could be materially affected . to date , we have not incurred any write-offs of accounts receivable significantly different than the amounts reserved . the allowance for doubtful accounts was $ 1.7 million and $ 1.0 million at december 31 , 2015 and 2014 , respectively . 45 stock-based compensation we measure stock-based compensation at the grant date based on the fair value of the award and recognize stock-based compensation in our results of operations using the straight-line method over the vesting period of the award . we use the black-scholes option pricing model to determine the fair value of stock option awards . we calculated the fair values of the options granted using the following estimated weighted average assumptions : replace_table_token_9_th the expected volatility of options granted in 2015 , 2014 and 2013 was determined using a weighted average of the historical volatility of our stock for a period equal to the expected life of the option . the risk-free interest rate is based on a zero coupon u.s. treasury instrument whose term is consistent with the expected life of the stock options . we have not paid and do not anticipate paying cash dividends on our shares of common stock ; therefore , the expected dividend yield is assumed to be zero . we applied an estimated annual forfeiture rate in determining the expense recorded in each year . internal-use software and website development costs we capitalize costs of materials , consultants and compensation and related expenses of employees who devote time to the development of internal-use software and website applications and infrastructure involving developing software to operate our websites . however , we expense as incurred website development costs for new features and functionalities since it is not probable that they will result in additional functionality until they are both developed and tested with confirmation that they are more effective than the current set of features and functionalities on our websites . our judgment is required in determining the point at which various projects enter the state at which costs may be capitalized , in assessing the ongoing value of the capitalized costs and in determining the estimated useful lives over which the costs are amortized , which is generally three years . to the extent that we change the manner in which we develop and test new features and functionalities related to our websites , assess the ongoing value of capitalized assets or determine the estimated useful lives over which the costs are amortized , the amount of website development costs we capitalize and amortize in future periods would be impacted . we review capitalized internal-use software and website development costs for recoverability whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable . we would recognize an impairment loss only if the carrying amount of the asset is not recoverable and exceeds its fair value . we capitalized internal-use software and website development costs of $ 2.9 million , $ 3.0 million and $ 3.6 million for the years ended december 31 , 2015 , 2014 and 2013 , respectively . income taxes we are subject to income taxes in both the u.s. and foreign jurisdictions , and we use estimates in determining our provision for income taxes . we recognize deferred tax assets and liabilities based on temporary differences between the financial reporting and income tax bases of assets and liabilities using statutory rates . our deferred tax assets are comprised primarily of book to tax differences on stock-based compensation and timing of deductions for deferred rent , accrued expenses , depreciation and amortization . as of december 31 , 2015 , we had a california net operating loss ( “nol” ) carryforward acquired from bitpipe of approximately $ 0.2 million which expires in 2018. we also had foreign nol carryforwards of $ 1.4 million , which may be used to offset future taxable income in foreign jurisdictions until they expire , through 2020. the deferred tax assets related to the california and foreign nol carryforwards have been fully offset by a valuation allowance . 46 additionally , we have a $ 0.2 million federal nol carryforward that will expire in 2034. net income ( loss ) per share we calculate basic earnings per share ( “eps” ) by dividing earnings available to common shareholders for the period by the weighted average number of common shares and vested , undelivered restricted stock awards outstanding during the period . because the holders of unvested restricted stock awards do not have nonforfeitable rights to dividends or dividend equivalents , we do not consider these awards to be participating securities that should be included in our computation of earnings per share under the two-class method . diluted eps is computed using the weighted-average number of common shares and vested , undelivered restricted stock awards outstanding during the period , plus the dilutive effect of potential future issuances of common stock relating to stock option programs and other potentially dilutive securities using the treasury stock method . in calculating diluted eps , the dilutive effect of stock options and restricted stock awards is computed using the average market price for the respective period . in addition , the assumed proceeds under the treasury stock method include the average unrecognized compensation expense and assumed tax benefit of stock options and restricted stock awards that are in-the-money . this results in the “assumed” buyback of additional shares , thereby reducing

cash flows replace_table_token_19_th 53 operating activities cash provided by operating activities primarily consists of net income adjusted for certain non-cash items including depreciation and amortization , the provision for bad debt , stock-based compensation , deferred income taxes , and the effect of changes in working capital and other activities . cash provided by operating activities for the year ended december 31 , 2015 was $ 11.3 million compared to $ 18.2 million and $ 8.3 million in the years ended december 31 , 2014 and 2013 , respectively . the decrease in cash provided by operations in fiscal 2015 compared to fiscal 2014 was primarily a result of changes in operating assets and liabilities of $ ( 7.5 ) million in 2015 compared to $ 0.8 million in 2014. significant components of the changes in assets and liabilities in 2015 included an increase in accounts receivable of $ 4.2 million , as evidenced by the increase in dso during the period , a $ 1.6 million decrease in income taxes payable , a $ 0.9 million decrease in accounts payable and a $ 1.0 million decrease in accrued compensation , primarily resulting from annual bonuses from 2014 that were paid in the first quarter of 2015. these changes were offset in part by an increase in accrued expenses of $ 1.8 million , primarily related to tax withholdings on net share settlements , and an increase in deferred revenue of $ 0.7 million . additionally , tax benefits relating to excess stock-based compensation deductions are presented as financing 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. ```cash flows replace_table_token_19_th 53 operating activities cash provided by operating activities primarily consists of net income adjusted for certain non-cash items including depreciation and amortization , the provision for bad debt , stock-based compensation , deferred income taxes , and the effect of changes in working capital and other activities . cash provided by operating activities for the year ended december 31 , 2015 was $ 11.3 million compared to $ 18.2 million and $ 8.3 million in the years ended december 31 , 2014 and 2013 , respectively . the decrease in cash provided by operations in fiscal 2015 compared to fiscal 2014 was primarily a result of changes in operating assets and liabilities of $ ( 7.5 ) million in 2015 compared to $ 0.8 million in 2014. significant components of the changes in assets and liabilities in 2015 included an increase in accounts receivable of $ 4.2 million , as evidenced by the increase in dso during the period , a $ 1.6 million decrease in income taxes payable , a $ 0.9 million decrease in accounts payable and a $ 1.0 million decrease in accrued compensation , primarily resulting from annual bonuses from 2014 that were paid in the first quarter of 2015. these changes were offset in part by an increase in accrued expenses of $ 1.8 million , primarily related to tax withholdings on net share settlements , and an increase in deferred revenue of $ 0.7 million . additionally , tax benefits relating to excess stock-based compensation deductions are presented as financing cash flows . ``` Suspicious Activity Report : due to the impact of the strong u.s. dollar on foreign currency , our large multi-national customers , who generate a significant amount of their revenues outside the u.s. , continue to be cautious . in the year ended december 31 , 2015 , online revenues from our top 12 global customers , which have the most international exposure , decreased slightly compared to the same period a year ago . online revenues from our mid-sized customers ( our next largest 100 customers , who have less exposure internationally ) increased by approximately 15 % year over year . revenues attributable to our smaller customers , which tend to be venture capital-backed start-ups that primarily operate in north america , increased by approximately 21 % over the prior year period . all three customer segments continued to report a challenging environment , and this translated into our customers remaining cautious with their marketing expenditures . our key strategic initiatives include : geographic – during 2015 , approximately 33 % of our online revenues were derived from international campaigns . international online revenues ( which also includes it deal alert revenues of $ 3.8 million as discussed below ) increased by approximately 12 % in the year ended december 31 , 2015 as compared to the same period a year ago . we continue to execute very well internationally as we continue to deepen our relatively new relationships with our customers in the united kingdom , france , germany , australia , singapore , china and latin america . due to the impact of the strong u.s. dollar on foreign currency , however , our largest customers continue to be cautious . product – it deal alert revenues were approximately $ 23.2 million in the year ended december 31 , 2015 , up from approximately $ 16.8 million in the same period in 2014. this includes international it deal alert revenues of $ 3.8 million , which is also included in international revenues as discussed above . in the fourth quarter of 2015 , we had over 288 active customers utilizing our it deal alert products and services ; this is up from 260 customers in the third quarter of 2015. we expect it deal alert to continue to be a meaningful growth driver into 2016. sources of revenues we sell customized marketing programs to it vendors targeting a specific audience within a particular it sector or sub-sector . we maintain multiple points of contact with our customers to provide support throughout their organizations and their customers ' it sales cycles . as a result , our customers often run multiple advertising programs with us in order to target their desired audience of it professionals more effectively . there are multiple factors that can impact our customers ' advertising objectives and spending with us , including but not limited to , it product launches , increases or decreases to their advertising budgets , the timing of key industry marketing events , responses to competitor activities and efforts to address specific marketing objectives such as creating brand awareness or generating sales leads . our products and services are generally delivered under short-term contracts that run for the length of a given advertising program , typically less than six months . in the year ended december 31 , 2015 , demand generation and brand advertising remained our primary sources of revenue , while data analytics-driven intelligence solutions , driven by growth in our it deal alert products and services , contributed approximately 22 % of online revenue as compared with approximately 17 % for the same period in 2014 . 39 the majority of our revenues are derived from the delivery of our online offerings . online revenue represented 94 % , 92 % and 90 % of total revenues for the years ended december 31 , 2015 , 2014 and 2013 , respectively . we use online and a select number of face-to-face event offerings to provide it vendors with numerous touch points to identify , reach and influence key it decision makers . the following is a description of the products and services we offer : online offerings it deal alert . it deal alert is a suite of products and services for it vendors that leverages the detailed purchase intent data that we collect about end-user it organizations . through proprietary scoring methodologies , we use this data to help our customers identify and prioritize accounts whose content consumption around specific it topics indicates that they are “in-market” for a particular product or service . we also use the data directly to identify and further profile accounts ' upcoming purchase plans . it deal alert : qualified sales opportunities . qualified sales opportunities is a product that profiles specific in-progress purchase projects , including information on scope and purchase considerations , in over 100 technology-specific segments . it deal alert : priority engine . priority engine is a subscription service powered by our activity intelligence platform , which integrates with salesforce.com . the service delivers information to allow marketers and sales personnel to identify accounts actively researching new technology purchases , and to reach active prospects within those organizations that are relevant to the purchase . we sell this service in approximately 300 technology-specific segments . it deal alert : deal data . deal data is a customized solution aimed at sales intelligence and data scientist functions within our customers that makes our activity intelligence data directly consumable by the customer 's internal applications . it deal alert : techtarget research . techtarget research is a newly launched subscription product that sources proprietary information about purchase transactions from it professionals who are making and have recently completed these purchases . the offering provides data on market trends , pricing dynamics and vendor win/loss and displacement trends . core online . story_separator_special_tag we review our allowance for doubtful accounts on a regular basis , and all past due balances are reviewed individually for collectability . account balances are charged against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote . provisions for doubtful accounts are recorded in general and administrative expense . if our historical collection experience does not reflect our future ability to collect outstanding accounts receivable , our future provision for doubtful accounts could be materially affected . to date , we have not incurred any write-offs of accounts receivable significantly different than the amounts reserved . the allowance for doubtful accounts was $ 1.7 million and $ 1.0 million at december 31 , 2015 and 2014 , respectively . 45 stock-based compensation we measure stock-based compensation at the grant date based on the fair value of the award and recognize stock-based compensation in our results of operations using the straight-line method over the vesting period of the award . we use the black-scholes option pricing model to determine the fair value of stock option awards . we calculated the fair values of the options granted using the following estimated weighted average assumptions : replace_table_token_9_th the expected volatility of options granted in 2015 , 2014 and 2013 was determined using a weighted average of the historical volatility of our stock for a period equal to the expected life of the option . the risk-free interest rate is based on a zero coupon u.s. treasury instrument whose term is consistent with the expected life of the stock options . we have not paid and do not anticipate paying cash dividends on our shares of common stock ; therefore , the expected dividend yield is assumed to be zero . we applied an estimated annual forfeiture rate in determining the expense recorded in each year . internal-use software and website development costs we capitalize costs of materials , consultants and compensation and related expenses of employees who devote time to the development of internal-use software and website applications and infrastructure involving developing software to operate our websites . however , we expense as incurred website development costs for new features and functionalities since it is not probable that they will result in additional functionality until they are both developed and tested with confirmation that they are more effective than the current set of features and functionalities on our websites . our judgment is required in determining the point at which various projects enter the state at which costs may be capitalized , in assessing the ongoing value of the capitalized costs and in determining the estimated useful lives over which the costs are amortized , which is generally three years . to the extent that we change the manner in which we develop and test new features and functionalities related to our websites , assess the ongoing value of capitalized assets or determine the estimated useful lives over which the costs are amortized , the amount of website development costs we capitalize and amortize in future periods would be impacted . we review capitalized internal-use software and website development costs for recoverability whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable . we would recognize an impairment loss only if the carrying amount of the asset is not recoverable and exceeds its fair value . we capitalized internal-use software and website development costs of $ 2.9 million , $ 3.0 million and $ 3.6 million for the years ended december 31 , 2015 , 2014 and 2013 , respectively . income taxes we are subject to income taxes in both the u.s. and foreign jurisdictions , and we use estimates in determining our provision for income taxes . we recognize deferred tax assets and liabilities based on temporary differences between the financial reporting and income tax bases of assets and liabilities using statutory rates . our deferred tax assets are comprised primarily of book to tax differences on stock-based compensation and timing of deductions for deferred rent , accrued expenses , depreciation and amortization . as of december 31 , 2015 , we had a california net operating loss ( “nol” ) carryforward acquired from bitpipe of approximately $ 0.2 million which expires in 2018. we also had foreign nol carryforwards of $ 1.4 million , which may be used to offset future taxable income in foreign jurisdictions until they expire , through 2020. the deferred tax assets related to the california and foreign nol carryforwards have been fully offset by a valuation allowance . 46 additionally , we have a $ 0.2 million federal nol carryforward that will expire in 2034. net income ( loss ) per share we calculate basic earnings per share ( “eps” ) by dividing earnings available to common shareholders for the period by the weighted average number of common shares and vested , undelivered restricted stock awards outstanding during the period . because the holders of unvested restricted stock awards do not have nonforfeitable rights to dividends or dividend equivalents , we do not consider these awards to be participating securities that should be included in our computation of earnings per share under the two-class method . diluted eps is computed using the weighted-average number of common shares and vested , undelivered restricted stock awards outstanding during the period , plus the dilutive effect of potential future issuances of common stock relating to stock option programs and other potentially dilutive securities using the treasury stock method . in calculating diluted eps , the dilutive effect of stock options and restricted stock awards is computed using the average market price for the respective period . in addition , the assumed proceeds under the treasury stock method include the average unrecognized compensation expense and assumed tax benefit of stock options and restricted stock awards that are in-the-money . this results in the “assumed” buyback of additional shares , thereby reducing

we base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances , the results of which form the basis for making judgments about carrying values of assets and liabilities that are not apparent from other sources . since future events and their impact can not be determined with certainty , the actual results will likely differ from our estimates . such differences could be material to the consolidated financial statements . we believe that our application of accounting policies , and the estimates inherently required therein , are reasonable . we periodically reevaluate these accounting policies and estimates , and make adjustments when facts and circumstances dictate a change . historically , we have found our application of accounting policies to be appropriate , and actual results have not differed materially from those determined using necessary estimates . our accounting policies are more fully described in the notes to our consolidated financial statements included in this annual report on form 10-k. the critical accounting policies , judgments and estimates that we believe have the most significant effect on our financial statements are : · valuation of inventories ; · carrying value of long-lived assets ; · software development costs ; · revenue recognition ; · product warranty ; · derivatives and fair value measurements ; · stock-based compensation ; and · income taxes . valuation of inventories inventory is stated at the lower of cost or net realizable value , with cost determined on a weighted average first-in , first-out method . inventory includes purchased parts and components , work in process and finished goods . provisions for excess , obsolete or slow moving inventory are recorded after periodic evaluation of historical sales , current economic trends , forecasted sales , estimated product life cycles and estimated inventory levels . purchasing practices , electronic component obsolescence , accuracy of sales and production forecasts , introduction of new products , product life cycles , product support and foreign regulations governing hazardous materials are the factors that contribute to inventory valuation risks . exposure to inventory valuation risks is managed by maintaining safety stocks , minimum purchase lots , managing product and end-of-life issues brought on by aging components or new product introductions , and by utilizing certain inventory minimization strategies such as vendor-managed inventories . the accounting estimate related to valuation of inventories is considered a “ critical accounting estimate ” because it is susceptible to changes from period-to-period due to the requirement for management to make estimates relative to each of the underlying factors , ranging from purchasing to sales , production , and after-sale support . if actual demand , market conditions or product life cycles differ from estimates , inventory adjustments to lower market values would result in a reduction to the carrying value of inventory , an increase in inventory write-offs and a decrease to gross margins . the company wrote down to net realizable value all of its component and finished goods inventory related to its iwear video headphones resulting from the decision in early 2017 to reduce the suggested retail selling price to a price below the cost . the total write down provision totaled $ 1,124,401 and represents the estimated net realizable of such existing inventory , net of the costs of completion of components and work in progress . this provision has been included in operating expenses on the consolidated statement of operations . 31 carrying value of long-lived assets if facts and circumstances indicate that a long-lived asset , including a products ' mold tooling and equipment , may be impaired , the carrying value is reviewed in accordance with fasb asc topic 360-10 accounting for the impairment or disposal of long-lived assets . if this review indicates that the carrying value of the asset will not be recovered as determined based on projected undiscounted cash flows related to the asset over its remaining life , the carrying value of the asset is reduced to its estimated fair value . impairment losses are dependent on a number of factors such as general economic trends and major technology advances , and thus could be significantly different than historical results . no impairment charges on tooling and equipment were recorded in 2016 or 2015. we perform a valuation of our patents and trademark assets when events or circumstances indicate their carrying amounts may be unrecoverable . we recorded an impairment charge of $ 20,506 representing cost of $ 44,371 , less accumulated amortization of $ 23,865 in 2016 , and an impairment charge of $ 13,222 representing cost of $ 21,954 , less accumulated amortization of $ 8,732 in 2015 regarding our abandoned patents and trademarks . the value of the remaining intellectual property , such as patents and trademarks , were valued ( net of accumulated amortization ) at $ 535,461 as of december 31 , 2016 , because management believes that its value is recoverable . software development costs the company capitalizes the costs of obtaining and developing its software once technological feasibility has been determined by management . such costs are accumulated and capitalized . these projects could take several years to complete . the capitalized costs are then amortized over 3 to 5 years on a straight-line basis . unsuccessful or discontinued software projects are written off and expensed in the fiscal period where the application is abandoned or discontinued . the value of the unamortized software development costs remaining were valued ( net of accumulated amortization ) at $ 214,838 as of december 31 , 2016 , because management believes that its value is recoverable . revenue recognition we recognize revenue from product sales in accordance with fasb asc topic 605 revenue recognition . product sales represent the majority of our revenue and there have been no material changes in or inflation in our product pricing over the past two fiscal years . story_separator_special_tag there was an overall decrease in product sales for the year ended december 31 , 2016 over the same period in 2015 of $ 556,275 or 22 % . the following table reflects the major components of our sales : 36 replace_table_token_4_th the decrease in smart glasses was primarily the result of a 25 % decrease in sales of the m100 smart glasses . after the announcement of the new m300 at ces in january 2016 , many customers have delayed further purchases of our smart glasses until we commence shipping the m300 smart glasses . pre-orders for the new m300 , including migration packages , are included primarily as deferred revenues and will not be recognized as revenues until those orders are finally shipped to the customer . our iwear video headphones sales were 18 % of product revenues for the year ended december 31 , 2016 versus nil in the same period in 2015 when it was not yet available . revenues from this product line were constrained throughout most of 2016 due to production difficulties , but production capacities are consistently improving . for the 2015 comparative period , approximately 8 % of revenues came from the wrap ar series of video eyewear products which was discontinued in the summer of 2015 , whereas no such product revenues were reported in the 2016 period . sales of waveguide related component sales were 5 % of total sales versus 14 % in the prior period , partially due to customers awaiting shipments of the next generation of waveguides . cost of sales and gross profit ( loss ) . cost of product revenues and engineering services is comprised of materials , components , labor , warranty costs , freight costs , manufacturing overhead , software royalties , and the non-cash amortization of software development costs related to the production of our products and rendering engineering services . the following table reflects the components of our cost of goods sold for products : replace_table_token_5_th the decreased net gross profit ( loss ) percentage earned in the year ended december 31 , 2016 , as compared to the same period in 2015 was primarily the result of lower sales levels to absorb many of our relatively fixed manufacturing overheads and amortization costs and the fact that we earn significantly lower gross margins on iwear as compared to our smart glasses and prior wrap ar products . production issues and product shortages contributed to a negative margin on iwear for 2016. manufacturing overhead costs rose primarily due to increased salaries and production labor costs of $ 198,862 , with over half related to iwear rework costing ; increased rent and utility cost allocations of $ 162,293 due to our larger plant , resulted in an increase of $ 361,155 from 2015. freight costs of $ 482,010 were substantially higher for the 2016 period as compared to $ 250,981 in 2015. as our new iwear product is bulkier and heavier and ships in a larger retail package than our prior products , the costs of air shipments became prohibitive material given that production volumes from china increased from 2015. research and development . our research and development expenses consist primarily of compensation costs for personnel , related stock compensation expenses , third party services , purchase of research supplies and materials , and consulting fees related to research and development costs . software development expenses to determine technical feasibility before final development and ongoing maintenance that are not capitalized are included in research and development costs . replace_table_token_6_th 37 comparing research and development costs for the year ended december 31 , 2016 versus the same period in 2015 , there was an increase in 2016 salary , benefits and stock compensation expenses of $ 1,040,841 , primarily the result of additional r & d staff versus the same period in 2015 ; a $ 131,654 reduction in new staff recruitment fees ; an increase in project development and research costs of $ 1,937,091 primarily related to the new product development for the m300 smart glasses and to a smaller extent the m3000 , with the majority of these amounts being spent on outside contractors which assisted in the development work ; an increase in $ 208,665 in rent and utility costs related to the expanded r & d portion of our new corporate facilities ; an increase of $ 231,773 in external research related consulting fees for optics and waveguide research ; and an $ 11,612 increase in travel costs related to our outside production contractor and development contractors . selling and marketing . selling and marketing costs consist of trade show costs , advertising , travel costs , sales staff compensation costs including stock compensation expense , consulting fees , pr agency fees , website costs and sales commissions paid to full-time staff and outside consultants . replace_table_token_7_th these costs increased overall due to the following factors : higher salary , commissions , benefits and stock compensation expenses related to new staff additions totaling $ 418,180 in both north american and europe ; increased trade show costs of $ 402,380 due to larger exhibit booth sizes and show rentals and attendance at several additional major trade shows during 2016 versus 2015 ; increased public relations and video production costs of $ 340,761 due to the hiring of an additional pr and marketing service firm as compared to the 2015 period and the production of 4 new product videos in 2016 ; a $ 144,319 increase in website costs including additions to our main new corporate and european websites ; a $ 92,093 increase in travel costs ; and a $ 42,736 increase in rent and utility costs . general and administrative . general and administrative costs include professional fees , investor relations ( ir ) costs including shares and warrants issued for ir services , salaries and related stock compensation , travel costs , office and rental costs . replace_table_token_8_th general

liquidity and capital resources as of december 31 , 2016 , we had cash and cash equivalents of $ 14,533,944 , an increase of $ 2,656,886 from $ 11,877,058 as of december 31 , 2015. at december 31 , 2016 , we had current assets of $ 18,230,053 compared to current liabilities of $ 4,421,959 which resulted in a working capital position of $ 13,808,094. as at december 31 , 2015 , we had a working capital position of $ 14,728,089. our current liabilities are comprised principally of accounts payable , current portion of convertible long-term debt , and accrued expenses . 38 operating activities . we used $ 14,396,964 of cash for operating activities in 2016 compared to $ 11,668,079 in 2015. in addition to the net loss adjusted for non-cash items , working capital operating uses for 2016 resulted from a $ 426,521 increase in inventory and a $ 78,389 increase in prepaid expenses . the major working capital operating items for 2015 resulted from a $ 2,437,149 increase in inventory and a $ 1,276,132 reduction in accounts payable . investing activities . investing activities used $ 2,186,303 of cash for 2016 as compared to a use of $ 2,084,739 for the same period in 2015. in 2016 , we used $ 2,039,299 of cash primarily for the completion of our new clean room , new product tooling , and new projection optics tooling and additional manufacturing and r & d equipment , as compared to $ 1,892,831 of cash used in 2015 primarily for the purchase of lease improvements and equipment for our new office and manufacturing facility as well as additions to product tooling . the costs of registering our intellectual property rights were $ 147,004 in 2016 and $ 191,908 in the same period in 2015. financing 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 as of december 31 , 2016 , we had cash and cash equivalents of $ 14,533,944 , an increase of $ 2,656,886 from $ 11,877,058 as of december 31 , 2015. at december 31 , 2016 , we had current assets of $ 18,230,053 compared to current liabilities of $ 4,421,959 which resulted in a working capital position of $ 13,808,094. as at december 31 , 2015 , we had a working capital position of $ 14,728,089. our current liabilities are comprised principally of accounts payable , current portion of convertible long-term debt , and accrued expenses . 38 operating activities . we used $ 14,396,964 of cash for operating activities in 2016 compared to $ 11,668,079 in 2015. in addition to the net loss adjusted for non-cash items , working capital operating uses for 2016 resulted from a $ 426,521 increase in inventory and a $ 78,389 increase in prepaid expenses . the major working capital operating items for 2015 resulted from a $ 2,437,149 increase in inventory and a $ 1,276,132 reduction in accounts payable . investing activities . investing activities used $ 2,186,303 of cash for 2016 as compared to a use of $ 2,084,739 for the same period in 2015. in 2016 , we used $ 2,039,299 of cash primarily for the completion of our new clean room , new product tooling , and new projection optics tooling and additional manufacturing and r & d equipment , as compared to $ 1,892,831 of cash used in 2015 primarily for the purchase of lease improvements and equipment for our new office and manufacturing facility as well as additions to product tooling . the costs of registering our intellectual property rights were $ 147,004 in 2016 and $ 191,908 in the same period in 2015. financing activities . ``` Suspicious Activity Report : we base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances , the results of which form the basis for making judgments about carrying values of assets and liabilities that are not apparent from other sources . since future events and their impact can not be determined with certainty , the actual results will likely differ from our estimates . such differences could be material to the consolidated financial statements . we believe that our application of accounting policies , and the estimates inherently required therein , are reasonable . we periodically reevaluate these accounting policies and estimates , and make adjustments when facts and circumstances dictate a change . historically , we have found our application of accounting policies to be appropriate , and actual results have not differed materially from those determined using necessary estimates . our accounting policies are more fully described in the notes to our consolidated financial statements included in this annual report on form 10-k. the critical accounting policies , judgments and estimates that we believe have the most significant effect on our financial statements are : · valuation of inventories ; · carrying value of long-lived assets ; · software development costs ; · revenue recognition ; · product warranty ; · derivatives and fair value measurements ; · stock-based compensation ; and · income taxes . valuation of inventories inventory is stated at the lower of cost or net realizable value , with cost determined on a weighted average first-in , first-out method . inventory includes purchased parts and components , work in process and finished goods . provisions for excess , obsolete or slow moving inventory are recorded after periodic evaluation of historical sales , current economic trends , forecasted sales , estimated product life cycles and estimated inventory levels . purchasing practices , electronic component obsolescence , accuracy of sales and production forecasts , introduction of new products , product life cycles , product support and foreign regulations governing hazardous materials are the factors that contribute to inventory valuation risks . exposure to inventory valuation risks is managed by maintaining safety stocks , minimum purchase lots , managing product and end-of-life issues brought on by aging components or new product introductions , and by utilizing certain inventory minimization strategies such as vendor-managed inventories . the accounting estimate related to valuation of inventories is considered a “ critical accounting estimate ” because it is susceptible to changes from period-to-period due to the requirement for management to make estimates relative to each of the underlying factors , ranging from purchasing to sales , production , and after-sale support . if actual demand , market conditions or product life cycles differ from estimates , inventory adjustments to lower market values would result in a reduction to the carrying value of inventory , an increase in inventory write-offs and a decrease to gross margins . the company wrote down to net realizable value all of its component and finished goods inventory related to its iwear video headphones resulting from the decision in early 2017 to reduce the suggested retail selling price to a price below the cost . the total write down provision totaled $ 1,124,401 and represents the estimated net realizable of such existing inventory , net of the costs of completion of components and work in progress . this provision has been included in operating expenses on the consolidated statement of operations . 31 carrying value of long-lived assets if facts and circumstances indicate that a long-lived asset , including a products ' mold tooling and equipment , may be impaired , the carrying value is reviewed in accordance with fasb asc topic 360-10 accounting for the impairment or disposal of long-lived assets . if this review indicates that the carrying value of the asset will not be recovered as determined based on projected undiscounted cash flows related to the asset over its remaining life , the carrying value of the asset is reduced to its estimated fair value . impairment losses are dependent on a number of factors such as general economic trends and major technology advances , and thus could be significantly different than historical results . no impairment charges on tooling and equipment were recorded in 2016 or 2015. we perform a valuation of our patents and trademark assets when events or circumstances indicate their carrying amounts may be unrecoverable . we recorded an impairment charge of $ 20,506 representing cost of $ 44,371 , less accumulated amortization of $ 23,865 in 2016 , and an impairment charge of $ 13,222 representing cost of $ 21,954 , less accumulated amortization of $ 8,732 in 2015 regarding our abandoned patents and trademarks . the value of the remaining intellectual property , such as patents and trademarks , were valued ( net of accumulated amortization ) at $ 535,461 as of december 31 , 2016 , because management believes that its value is recoverable . software development costs the company capitalizes the costs of obtaining and developing its software once technological feasibility has been determined by management . such costs are accumulated and capitalized . these projects could take several years to complete . the capitalized costs are then amortized over 3 to 5 years on a straight-line basis . unsuccessful or discontinued software projects are written off and expensed in the fiscal period where the application is abandoned or discontinued . the value of the unamortized software development costs remaining were valued ( net of accumulated amortization ) at $ 214,838 as of december 31 , 2016 , because management believes that its value is recoverable . revenue recognition we recognize revenue from product sales in accordance with fasb asc topic 605 revenue recognition . product sales represent the majority of our revenue and there have been no material changes in or inflation in our product pricing over the past two fiscal years . story_separator_special_tag there was an overall decrease in product sales for the year ended december 31 , 2016 over the same period in 2015 of $ 556,275 or 22 % . the following table reflects the major components of our sales : 36 replace_table_token_4_th the decrease in smart glasses was primarily the result of a 25 % decrease in sales of the m100 smart glasses . after the announcement of the new m300 at ces in january 2016 , many customers have delayed further purchases of our smart glasses until we commence shipping the m300 smart glasses . pre-orders for the new m300 , including migration packages , are included primarily as deferred revenues and will not be recognized as revenues until those orders are finally shipped to the customer . our iwear video headphones sales were 18 % of product revenues for the year ended december 31 , 2016 versus nil in the same period in 2015 when it was not yet available . revenues from this product line were constrained throughout most of 2016 due to production difficulties , but production capacities are consistently improving . for the 2015 comparative period , approximately 8 % of revenues came from the wrap ar series of video eyewear products which was discontinued in the summer of 2015 , whereas no such product revenues were reported in the 2016 period . sales of waveguide related component sales were 5 % of total sales versus 14 % in the prior period , partially due to customers awaiting shipments of the next generation of waveguides . cost of sales and gross profit ( loss ) . cost of product revenues and engineering services is comprised of materials , components , labor , warranty costs , freight costs , manufacturing overhead , software royalties , and the non-cash amortization of software development costs related to the production of our products and rendering engineering services . the following table reflects the components of our cost of goods sold for products : replace_table_token_5_th the decreased net gross profit ( loss ) percentage earned in the year ended december 31 , 2016 , as compared to the same period in 2015 was primarily the result of lower sales levels to absorb many of our relatively fixed manufacturing overheads and amortization costs and the fact that we earn significantly lower gross margins on iwear as compared to our smart glasses and prior wrap ar products . production issues and product shortages contributed to a negative margin on iwear for 2016. manufacturing overhead costs rose primarily due to increased salaries and production labor costs of $ 198,862 , with over half related to iwear rework costing ; increased rent and utility cost allocations of $ 162,293 due to our larger plant , resulted in an increase of $ 361,155 from 2015. freight costs of $ 482,010 were substantially higher for the 2016 period as compared to $ 250,981 in 2015. as our new iwear product is bulkier and heavier and ships in a larger retail package than our prior products , the costs of air shipments became prohibitive material given that production volumes from china increased from 2015. research and development . our research and development expenses consist primarily of compensation costs for personnel , related stock compensation expenses , third party services , purchase of research supplies and materials , and consulting fees related to research and development costs . software development expenses to determine technical feasibility before final development and ongoing maintenance that are not capitalized are included in research and development costs . replace_table_token_6_th 37 comparing research and development costs for the year ended december 31 , 2016 versus the same period in 2015 , there was an increase in 2016 salary , benefits and stock compensation expenses of $ 1,040,841 , primarily the result of additional r & d staff versus the same period in 2015 ; a $ 131,654 reduction in new staff recruitment fees ; an increase in project development and research costs of $ 1,937,091 primarily related to the new product development for the m300 smart glasses and to a smaller extent the m3000 , with the majority of these amounts being spent on outside contractors which assisted in the development work ; an increase in $ 208,665 in rent and utility costs related to the expanded r & d portion of our new corporate facilities ; an increase of $ 231,773 in external research related consulting fees for optics and waveguide research ; and an $ 11,612 increase in travel costs related to our outside production contractor and development contractors . selling and marketing . selling and marketing costs consist of trade show costs , advertising , travel costs , sales staff compensation costs including stock compensation expense , consulting fees , pr agency fees , website costs and sales commissions paid to full-time staff and outside consultants . replace_table_token_7_th these costs increased overall due to the following factors : higher salary , commissions , benefits and stock compensation expenses related to new staff additions totaling $ 418,180 in both north american and europe ; increased trade show costs of $ 402,380 due to larger exhibit booth sizes and show rentals and attendance at several additional major trade shows during 2016 versus 2015 ; increased public relations and video production costs of $ 340,761 due to the hiring of an additional pr and marketing service firm as compared to the 2015 period and the production of 4 new product videos in 2016 ; a $ 144,319 increase in website costs including additions to our main new corporate and european websites ; a $ 92,093 increase in travel costs ; and a $ 42,736 increase in rent and utility costs . general and administrative . general and administrative costs include professional fees , investor relations ( ir ) costs including shares and warrants issued for ir services , salaries and related stock compensation , travel costs , office and rental costs . replace_table_token_8_th general

we launched iluvien in germany and the united kingdom , in the second quarter of 2013 and in the u.s. and portugal in the first quarter of 2015. our distributor in the middle east launched iluvien in the united arab emirates in the fourth quarter of 2016. in italy , our distributor plans to launch iluvien in 2017. we do not expect to have positive cash flow from operations until 2017 , if at all . due to the limited revenue generated by iluvien to date , we may have to raise additional capital to fund the continued commercialization of iluvien . if we are unable to raise additional financing , we will need to adjust our commercial plans so that we can continue to operate with our existing cash resources or there may be substantial doubt about our ability to continue as a going concern . 44 in october 2016 , we entered into the fourth loan amendment ( as defined below ) with hercules capital , inc. ( hercules ) in order to modify certain terms of the term loan agreement ( as defined below ) and obtained additional loan amounts . if there is an event of default , all amounts may become due under the term loan agreement and there would continue to be substantial doubt about our ability to continue as a going concern . our agreement with psivida us , inc. we entered into an agreement with psivida us , inc. ( psivida ) for the use of fluocinolone acetonide ( fac ) in psivida 's proprietary delivery device in february 2005 , which was subsequently amended and restated in 2008. psivida is a global drug delivery company committed to the biomedical sector and the development of drug delivery products . our agreement with psivida provides us with a worldwide exclusive license to develop and sell iluvien , which consists of a tiny polyimide tube with a permeable membrane cap on one end and an impermeable silicone cap on the other end that is filled with fac in a polyvinyl alcohol matrix for delivery to the back of the eye for the treatment and prevention of eye diseases in humans ( other than uveitis ) . this agreement also provides us with a worldwide non-exclusive license to develop and sell psivida 's proprietary delivery device to deliver other corticosteroids to the back of the eye for the treatment and prevention of eye diseases in humans ( other than uveitis ) or to treat dme by delivering a compound to the back of the eye through a direct delivery method through an incision required for a 25-gauge or larger needle . we do not have the right to develop and sell psivida 's proprietary delivery device in connection with indications for diseases outside of the eye or for the treatment of uveitis . further , our agreement with psivida permits psivida to grant to any other party the right to use its intellectual property ( i ) to treat dme through an incision smaller than that required for a 25-gauge needle , unless using a corticosteroid delivered to the back of the eye , ( ii ) to deliver any compound outside the back of the eye unless it is to treat dme through an incision required for a 25-gauge or larger needle , or ( iii ) to deliver non-corticosteroids to the back of the eye , unless it is to treat dme through an incision required for a 25-gauge or larger needle . we were not in breach of our agreement with psivida as of december 31 , 2016. the agreement provides that after commercialization of iluvien , psivida will be entitled to 20 % of the net profits and 33 % of any lump sum milestone payments received from a sub-licensee of iluvien , as defined in the amended and restated agreement . in connection with this arrangement we are entitled to recover 20 % of commercialization costs of iluvien , as defined in the agreement , incurred prior to product profitability out of psivida 's share of net profits . as of december 31 , 2016 and 2015 , we could offset future royalty payments to psivida in the amounts of $ 25.8 million and $ 21.6 million , respectively , due to the accumulation of commercialization costs . due to the uncertainty of future profits from iluvien , we have fully reserved these amounts in the accompanying consolidated financial statements . as of december 31 , 2016 we owed psivida approximately $ 240,000 for their portion of net profits on a cash basis , as defined in the amended and restated agreement , from the fourth quarter of 2016. as a result of the food and drug administration 's ( fda ) approval of iluvien in september 2014 , we paid psivida a milestone payment of $ 25.0 million ( the psivida milestone payment ) in october 2014. in the second quarter of 2016 , psivida disputed portions of our claimed commercialization costs for the year ended december 31 , 2014. as part of this dispute , psivida notified us that it disagreed with $ 1.3 million of the $ 13.0 million in commercialization costs receivable that we had reported as of december 31 , 2014 and claimed incremental profit sharing payments of $ 136,000 for the year ended december 31 , 2014. we are disputing psivida 's assertions using the alternative dispute resolution mechanism under the psivida agreement . story_separator_special_tag we expect to continue to develop stable formulations of iluvien or any future products or product candidates , test such formulations in preclinical studies for toxicology , safety and efficacy and to conduct clinical trials for each future product candidate . we anticipate funding clinical trials ourselves , but we may engage collaboration partners at certain stages of clinical development . as we obtain results from clinical trials , we may elect to discontinue or delay clinical trials for certain products or product candidates or programs in order to focus our resources on more promising products or product candidates or programs . completion of clinical trials by us or our future collaborators may take several years or more , the length of time generally varying with the type , complexity , novelty and intended use of a product candidate . our only commercial product is iluvien , which has received marketing authorization in the u.s. , austria , belgium , the czech republic , denmark , finland , germany , france , ireland , italy , luxembourg , the netherlands , norway , poland , portugal , spain , sweden and the united kingdom . in the u.s. , iluvien is indicated for the treatment of dme in patients who have been previously treated with a course of corticosteroids and did not have a clinically significant rise in iop . in the eea countries in which iluvien has received marketing authorization , it is indicated for the treatment of vision impairment 48 associated with chronic dme considered insufficiently responsive to available therapies . iluvien has not been approved in any jurisdiction other than as set forth above . in order to grant marketing approval , a health authority such as the fda or foreign regulatory agencies must conclude that clinical and preclinical data establish the safety and efficacy of iluvien or any future products or product candidates with an appropriate benefit to risk profile relevant to a particular indication and that the product can be manufactured under current good manufacturing practice ( cgmp ) in a reproducible manner to deliver the product 's intended performance in terms of its stability , quality , purity and potency . until our submissions are reviewed by health authorities , there is no way to predict the outcome of their review . even if the clinical studies meet their predetermined primary endpoints and a registration dossier is accepted for filing , a health authority could still determine that an appropriate benefit to risk relationship does not exist for the indication that we are seeking . we can not forecast with any degree of certainty whether iluvien or any future products or product candidates will be subject to future collaborations or how such arrangements would affect our development plan or capital requirements . as a result of the uncertainties discussed above , we are unable to determine the duration and completion costs of our development projects or when and to what extent we will receive cash inflows from the commercialization and sale of an approved product candidate . general and administrative expenses general and administrative expenses consist primarily of compensation for employees in executive and administrative functions , including finance , accounting , information technology and human resources . other significant costs include facilities costs and professional fees for accounting and legal services , including legal services associated with obtaining and maintaining patents . we expect to continue to incur significant costs to comply with the corporate governance , internal control and similar requirements applicable to public companies . sales and marketing expenses sales and marketing expenses consist primarily of professional fees and compensation for employees for the commercial promotion , the assessment of the commercial opportunity of , the development of market awareness for , the pursuit of market reimbursement and the execution of launch plans for iluvien . other costs include professional fees associated with developing plans for iluvien or any future products or product candidates and maintaining public relations . we launched iluvien in germany and the united kingdom , in the second quarter of 2013 and the u.s. and portugal in the first quarter of 2015. we expect significant increases in our sales and marketing expenses as we continue the commercialization of iluvien in these countries . in november 2012 , we entered into a master services agreement with quintiles commercial europe limited . under the agreement , quintiles commercial europe limited and its affiliates ( collectively , quintiles commercial ) provided certain services to us in relation to the commercialization of iluvien , in france , germany and the united kingdom . in december 2013 and january 2014 , respectively , we transitioned our german and united kingdom country manager positions in-house . in april 2015 , we terminated the project orders associated with france and germany and transitioned the persons employed by quintiles commercial to our payroll . in july 2015 , we terminated the remaining project orders associated with the united kingdom and transitioned the covered positions employed by quintiles commercial to our payroll . as of december 31 , 2015 the master services agreement with quintiles commercial had been terminated . as of december 31 , 2016 , we had a european management team , local management teams and commercial personnel in france , germany , portugal and the united kingdom totaling 31 persons , of which three are consultants . in the fourth quarter of 2016 , after unsuccessfully negotiating with the french government to obtain an appropriate price , we decided to close operations in france . we expect the closing of operations to be completed in early 2017. we are continuing to evaluate our options to enter the french market , including potential distributor relationships . in the fourth quarter of 2014 , following the fda approval of iluvien in the u.s. , we began establishing the infrastructure to support the anticipated commercial launch of iluvien in the u.s. in the first quarter of

liquidity and capital resources since inception , we have incurred recurring losses , negative cash flow from operations and have accumulated a deficit of $ 377.1 million from our inception through december 31 , 2016. we have funded our operations through the public and private placement of common stock , convertible preferred stock , warrants , the sale of certain assets of the non-prescription business in which we were previously engaged and certain debt facilities . in september 2014 , we entered into a sales agreement with cowen and company , llc ( cowen ) to offer shares of our common stock , $ 0.01 par value per share , from time to time through cowen , as our sales agent for the offer and sale of the shares up to an aggregate offering price of $ 35.0 million . we paid a commission equal to 3 % of the gross proceeds from the sales of shares of our common stock under the sales agreement . we intended to use the net proceeds from this offering for general corporate purposes , including capital expenditures , debt repayments and working capital . in 2016 , we sold a total of 662,779 shares of our common stock at a weighted average price of $ 1.83 per share through our at-the-market offering , for total gross proceeds of approximately $ 1.2 million , reduced by approximately $ 60,000 of related commissions , issuance costs and placement agent fees . in 2015 , we sold a total of 268,978 shares of our common stock at a weighted average price of $ 3.07 per share through our at-the-market offering , for total gross proceeds of approximately $ 825,000 , further reduced by approximately $ 100,000 of related commissions , issuance costs and placement agent fees . in august 2016 , we closed an underwritten public offering pursuant to which we sold and issued 18,900,000 shares of our common stock at a price to the public of $ 1.40 per share , resulting in gross proceeds of $ 26,460,000 , offset by payments of approximately $ 1.3 million of related 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. ```liquidity and capital resources since inception , we have incurred recurring losses , negative cash flow from operations and have accumulated a deficit of $ 377.1 million from our inception through december 31 , 2016. we have funded our operations through the public and private placement of common stock , convertible preferred stock , warrants , the sale of certain assets of the non-prescription business in which we were previously engaged and certain debt facilities . in september 2014 , we entered into a sales agreement with cowen and company , llc ( cowen ) to offer shares of our common stock , $ 0.01 par value per share , from time to time through cowen , as our sales agent for the offer and sale of the shares up to an aggregate offering price of $ 35.0 million . we paid a commission equal to 3 % of the gross proceeds from the sales of shares of our common stock under the sales agreement . we intended to use the net proceeds from this offering for general corporate purposes , including capital expenditures , debt repayments and working capital . in 2016 , we sold a total of 662,779 shares of our common stock at a weighted average price of $ 1.83 per share through our at-the-market offering , for total gross proceeds of approximately $ 1.2 million , reduced by approximately $ 60,000 of related commissions , issuance costs and placement agent fees . in 2015 , we sold a total of 268,978 shares of our common stock at a weighted average price of $ 3.07 per share through our at-the-market offering , for total gross proceeds of approximately $ 825,000 , further reduced by approximately $ 100,000 of related commissions , issuance costs and placement agent fees . in august 2016 , we closed an underwritten public offering pursuant to which we sold and issued 18,900,000 shares of our common stock at a price to the public of $ 1.40 per share , resulting in gross proceeds of $ 26,460,000 , offset by payments of approximately $ 1.3 million of related issuance costs . ``` Suspicious Activity Report : we launched iluvien in germany and the united kingdom , in the second quarter of 2013 and in the u.s. and portugal in the first quarter of 2015. our distributor in the middle east launched iluvien in the united arab emirates in the fourth quarter of 2016. in italy , our distributor plans to launch iluvien in 2017. we do not expect to have positive cash flow from operations until 2017 , if at all . due to the limited revenue generated by iluvien to date , we may have to raise additional capital to fund the continued commercialization of iluvien . if we are unable to raise additional financing , we will need to adjust our commercial plans so that we can continue to operate with our existing cash resources or there may be substantial doubt about our ability to continue as a going concern . 44 in october 2016 , we entered into the fourth loan amendment ( as defined below ) with hercules capital , inc. ( hercules ) in order to modify certain terms of the term loan agreement ( as defined below ) and obtained additional loan amounts . if there is an event of default , all amounts may become due under the term loan agreement and there would continue to be substantial doubt about our ability to continue as a going concern . our agreement with psivida us , inc. we entered into an agreement with psivida us , inc. ( psivida ) for the use of fluocinolone acetonide ( fac ) in psivida 's proprietary delivery device in february 2005 , which was subsequently amended and restated in 2008. psivida is a global drug delivery company committed to the biomedical sector and the development of drug delivery products . our agreement with psivida provides us with a worldwide exclusive license to develop and sell iluvien , which consists of a tiny polyimide tube with a permeable membrane cap on one end and an impermeable silicone cap on the other end that is filled with fac in a polyvinyl alcohol matrix for delivery to the back of the eye for the treatment and prevention of eye diseases in humans ( other than uveitis ) . this agreement also provides us with a worldwide non-exclusive license to develop and sell psivida 's proprietary delivery device to deliver other corticosteroids to the back of the eye for the treatment and prevention of eye diseases in humans ( other than uveitis ) or to treat dme by delivering a compound to the back of the eye through a direct delivery method through an incision required for a 25-gauge or larger needle . we do not have the right to develop and sell psivida 's proprietary delivery device in connection with indications for diseases outside of the eye or for the treatment of uveitis . further , our agreement with psivida permits psivida to grant to any other party the right to use its intellectual property ( i ) to treat dme through an incision smaller than that required for a 25-gauge needle , unless using a corticosteroid delivered to the back of the eye , ( ii ) to deliver any compound outside the back of the eye unless it is to treat dme through an incision required for a 25-gauge or larger needle , or ( iii ) to deliver non-corticosteroids to the back of the eye , unless it is to treat dme through an incision required for a 25-gauge or larger needle . we were not in breach of our agreement with psivida as of december 31 , 2016. the agreement provides that after commercialization of iluvien , psivida will be entitled to 20 % of the net profits and 33 % of any lump sum milestone payments received from a sub-licensee of iluvien , as defined in the amended and restated agreement . in connection with this arrangement we are entitled to recover 20 % of commercialization costs of iluvien , as defined in the agreement , incurred prior to product profitability out of psivida 's share of net profits . as of december 31 , 2016 and 2015 , we could offset future royalty payments to psivida in the amounts of $ 25.8 million and $ 21.6 million , respectively , due to the accumulation of commercialization costs . due to the uncertainty of future profits from iluvien , we have fully reserved these amounts in the accompanying consolidated financial statements . as of december 31 , 2016 we owed psivida approximately $ 240,000 for their portion of net profits on a cash basis , as defined in the amended and restated agreement , from the fourth quarter of 2016. as a result of the food and drug administration 's ( fda ) approval of iluvien in september 2014 , we paid psivida a milestone payment of $ 25.0 million ( the psivida milestone payment ) in october 2014. in the second quarter of 2016 , psivida disputed portions of our claimed commercialization costs for the year ended december 31 , 2014. as part of this dispute , psivida notified us that it disagreed with $ 1.3 million of the $ 13.0 million in commercialization costs receivable that we had reported as of december 31 , 2014 and claimed incremental profit sharing payments of $ 136,000 for the year ended december 31 , 2014. we are disputing psivida 's assertions using the alternative dispute resolution mechanism under the psivida agreement . story_separator_special_tag we expect to continue to develop stable formulations of iluvien or any future products or product candidates , test such formulations in preclinical studies for toxicology , safety and efficacy and to conduct clinical trials for each future product candidate . we anticipate funding clinical trials ourselves , but we may engage collaboration partners at certain stages of clinical development . as we obtain results from clinical trials , we may elect to discontinue or delay clinical trials for certain products or product candidates or programs in order to focus our resources on more promising products or product candidates or programs . completion of clinical trials by us or our future collaborators may take several years or more , the length of time generally varying with the type , complexity , novelty and intended use of a product candidate . our only commercial product is iluvien , which has received marketing authorization in the u.s. , austria , belgium , the czech republic , denmark , finland , germany , france , ireland , italy , luxembourg , the netherlands , norway , poland , portugal , spain , sweden and the united kingdom . in the u.s. , iluvien is indicated for the treatment of dme in patients who have been previously treated with a course of corticosteroids and did not have a clinically significant rise in iop . in the eea countries in which iluvien has received marketing authorization , it is indicated for the treatment of vision impairment 48 associated with chronic dme considered insufficiently responsive to available therapies . iluvien has not been approved in any jurisdiction other than as set forth above . in order to grant marketing approval , a health authority such as the fda or foreign regulatory agencies must conclude that clinical and preclinical data establish the safety and efficacy of iluvien or any future products or product candidates with an appropriate benefit to risk profile relevant to a particular indication and that the product can be manufactured under current good manufacturing practice ( cgmp ) in a reproducible manner to deliver the product 's intended performance in terms of its stability , quality , purity and potency . until our submissions are reviewed by health authorities , there is no way to predict the outcome of their review . even if the clinical studies meet their predetermined primary endpoints and a registration dossier is accepted for filing , a health authority could still determine that an appropriate benefit to risk relationship does not exist for the indication that we are seeking . we can not forecast with any degree of certainty whether iluvien or any future products or product candidates will be subject to future collaborations or how such arrangements would affect our development plan or capital requirements . as a result of the uncertainties discussed above , we are unable to determine the duration and completion costs of our development projects or when and to what extent we will receive cash inflows from the commercialization and sale of an approved product candidate . general and administrative expenses general and administrative expenses consist primarily of compensation for employees in executive and administrative functions , including finance , accounting , information technology and human resources . other significant costs include facilities costs and professional fees for accounting and legal services , including legal services associated with obtaining and maintaining patents . we expect to continue to incur significant costs to comply with the corporate governance , internal control and similar requirements applicable to public companies . sales and marketing expenses sales and marketing expenses consist primarily of professional fees and compensation for employees for the commercial promotion , the assessment of the commercial opportunity of , the development of market awareness for , the pursuit of market reimbursement and the execution of launch plans for iluvien . other costs include professional fees associated with developing plans for iluvien or any future products or product candidates and maintaining public relations . we launched iluvien in germany and the united kingdom , in the second quarter of 2013 and the u.s. and portugal in the first quarter of 2015. we expect significant increases in our sales and marketing expenses as we continue the commercialization of iluvien in these countries . in november 2012 , we entered into a master services agreement with quintiles commercial europe limited . under the agreement , quintiles commercial europe limited and its affiliates ( collectively , quintiles commercial ) provided certain services to us in relation to the commercialization of iluvien , in france , germany and the united kingdom . in december 2013 and january 2014 , respectively , we transitioned our german and united kingdom country manager positions in-house . in april 2015 , we terminated the project orders associated with france and germany and transitioned the persons employed by quintiles commercial to our payroll . in july 2015 , we terminated the remaining project orders associated with the united kingdom and transitioned the covered positions employed by quintiles commercial to our payroll . as of december 31 , 2015 the master services agreement with quintiles commercial had been terminated . as of december 31 , 2016 , we had a european management team , local management teams and commercial personnel in france , germany , portugal and the united kingdom totaling 31 persons , of which three are consultants . in the fourth quarter of 2016 , after unsuccessfully negotiating with the french government to obtain an appropriate price , we decided to close operations in france . we expect the closing of operations to be completed in early 2017. we are continuing to evaluate our options to enter the french market , including potential distributor relationships . in the fourth quarter of 2014 , following the fda approval of iluvien in the u.s. , we began establishing the infrastructure to support the anticipated commercial launch of iluvien in the u.s. in the first quarter of

the following are select highlights for 2018 : at december 31 , 2018 , the market value of assets under management and or administration at the private wealth management division of the bank was $ 5.8 billion , reflecting an increase of 5 percent from $ 5.5 billion at december 31 , 2017. fee income from the private wealth management division totaled $ 33.2 million for 2018 , growing from $ 23.2 million for 2017. loans at december 31 , 2018 totaled $ 3.93 billion . this reflected net growth of $ 227.4 million , or 6 percent , from $ 3.70 billion at december 31 , 2017. total c & i loans ( including equipment finance ) at december 31 , 2018 totaled $ 1.40 billion . this reflected net growth of $ 438.7 million , or 46 percent , from $ 958.3 million at december 31 , 2017. total “ customer ” deposits ( defined as deposits excluding brokered cds and brokered “ overnight ” interest-bearing demand deposits ) at december 31 , 2018 were $ 3.66 billion , reflecting an increase of $ 213.4 million , or 6 percent , when compared to $ 3.45 billion at december 31 , 2017. asset quality metrics continued to be strong at december 31 , 2018. nonperforming assets at december 31 , 2018 were $ 25.7 million , or 0.56 percent of total assets . total loans past due 30 through 89 days and still accruing were $ 1.10 million or 0.03 percent of total loans at december 31 , 2018. the company 's and bank 's capital ratios at december 31 , 2018 all increased compared to the december 31 , 2017 levels . critical accounting policies and estimates : management 's discussion and analysis of financial condition and results of operations is based upon the company 's consolidated financial statements , which have been prepared in accordance with u.s. generally accepted accounting principles . the preparation of these financial statements requires the company to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses . note 1 to the company 's consolidated financial statements contains a summary of the company 's significant accounting policies . management believes that the company 's policy with respect to the methodology for the determination of the allowance for loan losses and the determination of other-than-temporary impairment of securities involves a higher degree of complexity and requires management to make difficult and subjective judgments , which often require assumptions or estimates about highly uncertain matters . changes in these judgments , assumptions or estimates could materially impact results of operations . this critical policy and its application are periodically reviewed with the audit committee and the board of directors . the provision for loan losses is based upon management 's evaluation of the adequacy of the allowance , including an assessment of known and inherent risks in the portfolio , giving consideration to the size and composition of the loan portfolio , actual loan loss experience , level of delinquencies , detailed analysis of individual loans for which full collectability may not be assured , the existence and estimated fair value of any underlying collateral and guarantees securing the loans , and current economic and market conditions . although management uses the best information available , the level of the allowance for loan losses remains an estimate , which is subject to significant judgment and change . various regulatory agencies , as an integral part of their examination process , periodically review the company 's allowance for loan losses . such agencies may require the company to make additional provisions for loan losses based upon information available to them at the time of their examination . furthermore , the majority of the company 's loans are secured by real estate in the state of new jersey and the new york city area . accordingly , the collectability of a substantial portion of the carrying value of the company 's loan portfolio is susceptible to changes in local market conditions and may experience adverse economic conditions . future adjustments to the provision for loan losses and allowance for loan losses may be necessary due to economic , operating , regulatory and other conditions beyond the company 's control . the company accounts for its securities in accordance with “ accounting for certain investments in debt and equity securities , ” which was codified into accounting standards codification ( “ asc ” ) 320. debt securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity . 24 debt securities are classified as available for sale when they might be sold before maturity due to changes in interest rates , prepayment risk , liquidity or other factors . securities available for sale are carried at fair value , with unrealized holding gains and losses reported in other comprehensive income , net of tax . at december 31 , 2018 and 2017 , all securities were classified as available for sale , with the exception of the company 's investment in the cra investment fund . the company adopted asu 2016-01 “ financial instruments ” which resulted in the reclassification of the cra investment from available for sale to equity securities . securities are evaluated on at least a quarterly basis to determine whether a decline in value is other-than-temporary . to determine whether a decline in value is other-than-temporary , management considers the reasons underlying the decline , the near-term prospects of the issuer , the extent and duration of the decline and whether the company intends to sell , or it is more likely than not that it will be required to sell , a security in an unrealized loss position before recovery of its amortized cost basis . story_separator_special_tag the carrying value of investment securities available for sale for the years ended december 31 , 2018 , 2017 and 2016 are shown below : replace_table_token_10_th the following table presents the contractual maturities and yields of debt securities available for sale , stated at fair value , as of december 31 , 2018 : replace_table_token_11_th ( 1 ) shown using stated final maturity ( 2 ) yields presented on a fully tax-equivalent basis . 33 federal funds sold and interest-earning deposits are an additional part of the company 's liquidity and interest rate risk management strategies . the combined average balance of these investments during 2018 was $ 103.2 million compared to $ 115.7 million in 2017. loans : the loan portfolio represents the largest portion of the company 's earning assets and is the primary source of interest and fee income . loans are primarily originated in new jersey and the boroughs of new york city and , to a lesser extent , pennsylvania and delaware . as of december 31 , 2018 , 36 percent of the total loan portfolio is concentrated in c & i loans ( including equipment financing ) , 29 percent in multifamily loans and 18 percent of the total loan portfolio is concentrated in commercial mortgages . total loans were $ 3.93 billion and $ 3.70 billion at december 31 , 2018 and 2017 , respectively , an increase of $ 223.5 million , or 6 percent , over the previous year . during 2018 , commercial mortgages increased $ 75.5 million due to a continued focus on this type of business . commercial loans , which includes equipment financing , totaled $ 1.40 billion at december 31 , 2018 , increasing $ 438.8 million , or 46 percent , from 2017. the increase in this portfolio was attributed to : the addition of seasoned bankers including an equipment finance team in 2017 ; a continued focus on client service and value-added aspects of the lending process ; and a continued focus on markets outside of the immediate branch service area , including markets around the teaneck and princeton , new jersey private banking offices . multifamily mortgage loans were $ 1.14 billion at december 31 , 2018 , a decrease of $ 253.2 million or 18 percent when compared to 2017 , through reduced origination levels and $ 131.3 million in loan sales in 2018. this was part of the company 's balance sheet management strategy to continue to reduce lower yielding , primarily fixed-rate multifamily loans as a percent of the overall loan portfolio with higher yielding , primarily floating rate of shorter duration c & i loans becoming a larger percentage of the overall loan portfolio . in late 2015 , the company began providing loans that are partially guaranteed by the small business administration ( “ sba ” ) , for the purposes of providing working capital and or , financing the purchase of equipment , inventory or commercial real estate and that could be used for start-up businesses . all sba loans are underwritten and documented as prescribed by the sba . the company will generally sell the guaranteed portion of the sba loans in the secondary market , with the non-guaranteed portion held in the loan portfolio . during 2018 , the bank sold $ 17.5 million of the guaranteed portion of sba loans into the secondary market . as of december 31 , 2018 , the balance of the non-guaranteed portion of sba loans held on our balance sheet totaled $ 12.0 million . the following table presents an analysis of outstanding loans by loan type , excluding multifamily loans held for sale , net of unamortized discounts and deferred loan origination costs , at the dates presented , replace_table_token_12_th the following table presents the contractual repayments of the loan portfolio , by loan type , at december 31 , 2018 : replace_table_token_13_th 34 the following table presents the loans , by loan type , that have a predetermined interest rate and an adjustable interest rate due after one year at december 31 , 2018 : replace_table_token_14_th the company has not made nor invested in subprime loans or “ alt-a ” type mortgages . at december 31 , 2018 , there were no commitments to lend additional funds to borrowers whose loans were classified as nonperforming . consistent with the company 's balance sheet management strategy , the company sold approximately $ 131.3 million of performing multifamily mortgages in 2018. the company sold approximately $ 66.1 million of performing multifamily mortgages and $ 43.9 million of residential mortgages in 2017. the geographic breakdown of the multifamily portfolio , net of participated multifamily loans , at december 31 , 2018 is as follows : replace_table_token_15_th a further breakdown of the multifamily portfolio by county within each respective state is as follows : replace_table_token_16_th principal types of owner occupied commercial real estate properties ( by call report code ) , included in commercial loans on the balance sheet , at december 31 , 2018 are : replace_table_token_17_th 35 principal types of non-owner occupied commercial real estate properties ( by call report code ) , at december 31 , 2018 are as follows . these loans are included in commercial mortgage loans and commercial loans on the company 's balance sheet . replace_table_token_18_th at december 31 , 2018 and 2017 , the bank had a concentration in commercial real estate loans as defined by applicable regulatory guidance . the following table presents such concentration levels at december 31 , 2018 and 2017 : replace_table_token_19_th the bank believes it addresses the key elements in the risk management framework laid out by its regulators for the effective management of cre concentration risks . goodwill : at december 31 , 2018 goodwill totaled $ 24.4 million , an increase of $ 7.3 million from $ 17.1 million at december 31 , 2017. the increase in goodwill is due to the acquisition of

liquidity : liquidity refers to an institution 's ability to meet short-term requirements including funding of loans , deposit withdrawals and maturing obligations , as well as long-term obligations , including potential capital expenditures . the company 's liquidity risk management is intended to ensure the company has adequate funding and liquidity to support its assets across a range of market environments and conditions , including stressed conditions . principal sources of liquidity include cash , temporary investments , securities available for sale , customer deposit inflows , loan repayments and secured borrowings . other liquidity sources include loan sales and loan participations . management actively monitors and manages the company 's liquidity position and believes it is sufficient to meet future needs . cash and cash equivalents , including federal funds sold and interest-earning deposits , totaled $ 160.8 million at december 31 , 2018. in addition , the company had $ 377.9 million in securities designated as available for sale at december 31 , 2018. these securities can be sold , or used as collateral for borrowings , in response to liquidity concerns . securities available for sale with a fair value of $ 337.1 million as of december 31 , 2018 were pledged to secure public funds and for other purposes required or permitted by law . however , only $ 11.8 million of that total is actually encumbered . in addition , the company generates significant liquidity from scheduled and unscheduled principal repayments of loans and mortgage-backed securities . a further source of liquidity is borrowing capacity . at december 31 , 2018 , unused secured borrowing commitments totaled $ 1.3 billion from the fhlb and $ 1.3 billion from the federal reserve bank of new york .

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 refers to an institution 's ability to meet short-term requirements including funding of loans , deposit withdrawals and maturing obligations , as well as long-term obligations , including potential capital expenditures . the company 's liquidity risk management is intended to ensure the company has adequate funding and liquidity to support its assets across a range of market environments and conditions , including stressed conditions . principal sources of liquidity include cash , temporary investments , securities available for sale , customer deposit inflows , loan repayments and secured borrowings . other liquidity sources include loan sales and loan participations . management actively monitors and manages the company 's liquidity position and believes it is sufficient to meet future needs . cash and cash equivalents , including federal funds sold and interest-earning deposits , totaled $ 160.8 million at december 31 , 2018. in addition , the company had $ 377.9 million in securities designated as available for sale at december 31 , 2018. these securities can be sold , or used as collateral for borrowings , in response to liquidity concerns . securities available for sale with a fair value of $ 337.1 million as of december 31 , 2018 were pledged to secure public funds and for other purposes required or permitted by law . however , only $ 11.8 million of that total is actually encumbered . in addition , the company generates significant liquidity from scheduled and unscheduled principal repayments of loans and mortgage-backed securities . a further source of liquidity is borrowing capacity . at december 31 , 2018 , unused secured borrowing commitments totaled $ 1.3 billion from the fhlb and $ 1.3 billion from the federal reserve bank of new york . ``` Suspicious Activity Report : the following are select highlights for 2018 : at december 31 , 2018 , the market value of assets under management and or administration at the private wealth management division of the bank was $ 5.8 billion , reflecting an increase of 5 percent from $ 5.5 billion at december 31 , 2017. fee income from the private wealth management division totaled $ 33.2 million for 2018 , growing from $ 23.2 million for 2017. loans at december 31 , 2018 totaled $ 3.93 billion . this reflected net growth of $ 227.4 million , or 6 percent , from $ 3.70 billion at december 31 , 2017. total c & i loans ( including equipment finance ) at december 31 , 2018 totaled $ 1.40 billion . this reflected net growth of $ 438.7 million , or 46 percent , from $ 958.3 million at december 31 , 2017. total “ customer ” deposits ( defined as deposits excluding brokered cds and brokered “ overnight ” interest-bearing demand deposits ) at december 31 , 2018 were $ 3.66 billion , reflecting an increase of $ 213.4 million , or 6 percent , when compared to $ 3.45 billion at december 31 , 2017. asset quality metrics continued to be strong at december 31 , 2018. nonperforming assets at december 31 , 2018 were $ 25.7 million , or 0.56 percent of total assets . total loans past due 30 through 89 days and still accruing were $ 1.10 million or 0.03 percent of total loans at december 31 , 2018. the company 's and bank 's capital ratios at december 31 , 2018 all increased compared to the december 31 , 2017 levels . critical accounting policies and estimates : management 's discussion and analysis of financial condition and results of operations is based upon the company 's consolidated financial statements , which have been prepared in accordance with u.s. generally accepted accounting principles . the preparation of these financial statements requires the company to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses . note 1 to the company 's consolidated financial statements contains a summary of the company 's significant accounting policies . management believes that the company 's policy with respect to the methodology for the determination of the allowance for loan losses and the determination of other-than-temporary impairment of securities involves a higher degree of complexity and requires management to make difficult and subjective judgments , which often require assumptions or estimates about highly uncertain matters . changes in these judgments , assumptions or estimates could materially impact results of operations . this critical policy and its application are periodically reviewed with the audit committee and the board of directors . the provision for loan losses is based upon management 's evaluation of the adequacy of the allowance , including an assessment of known and inherent risks in the portfolio , giving consideration to the size and composition of the loan portfolio , actual loan loss experience , level of delinquencies , detailed analysis of individual loans for which full collectability may not be assured , the existence and estimated fair value of any underlying collateral and guarantees securing the loans , and current economic and market conditions . although management uses the best information available , the level of the allowance for loan losses remains an estimate , which is subject to significant judgment and change . various regulatory agencies , as an integral part of their examination process , periodically review the company 's allowance for loan losses . such agencies may require the company to make additional provisions for loan losses based upon information available to them at the time of their examination . furthermore , the majority of the company 's loans are secured by real estate in the state of new jersey and the new york city area . accordingly , the collectability of a substantial portion of the carrying value of the company 's loan portfolio is susceptible to changes in local market conditions and may experience adverse economic conditions . future adjustments to the provision for loan losses and allowance for loan losses may be necessary due to economic , operating , regulatory and other conditions beyond the company 's control . the company accounts for its securities in accordance with “ accounting for certain investments in debt and equity securities , ” which was codified into accounting standards codification ( “ asc ” ) 320. debt securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity . 24 debt securities are classified as available for sale when they might be sold before maturity due to changes in interest rates , prepayment risk , liquidity or other factors . securities available for sale are carried at fair value , with unrealized holding gains and losses reported in other comprehensive income , net of tax . at december 31 , 2018 and 2017 , all securities were classified as available for sale , with the exception of the company 's investment in the cra investment fund . the company adopted asu 2016-01 “ financial instruments ” which resulted in the reclassification of the cra investment from available for sale to equity securities . securities are evaluated on at least a quarterly basis to determine whether a decline in value is other-than-temporary . to determine whether a decline in value is other-than-temporary , management considers the reasons underlying the decline , the near-term prospects of the issuer , the extent and duration of the decline and whether the company intends to sell , or it is more likely than not that it will be required to sell , a security in an unrealized loss position before recovery of its amortized cost basis . story_separator_special_tag the carrying value of investment securities available for sale for the years ended december 31 , 2018 , 2017 and 2016 are shown below : replace_table_token_10_th the following table presents the contractual maturities and yields of debt securities available for sale , stated at fair value , as of december 31 , 2018 : replace_table_token_11_th ( 1 ) shown using stated final maturity ( 2 ) yields presented on a fully tax-equivalent basis . 33 federal funds sold and interest-earning deposits are an additional part of the company 's liquidity and interest rate risk management strategies . the combined average balance of these investments during 2018 was $ 103.2 million compared to $ 115.7 million in 2017. loans : the loan portfolio represents the largest portion of the company 's earning assets and is the primary source of interest and fee income . loans are primarily originated in new jersey and the boroughs of new york city and , to a lesser extent , pennsylvania and delaware . as of december 31 , 2018 , 36 percent of the total loan portfolio is concentrated in c & i loans ( including equipment financing ) , 29 percent in multifamily loans and 18 percent of the total loan portfolio is concentrated in commercial mortgages . total loans were $ 3.93 billion and $ 3.70 billion at december 31 , 2018 and 2017 , respectively , an increase of $ 223.5 million , or 6 percent , over the previous year . during 2018 , commercial mortgages increased $ 75.5 million due to a continued focus on this type of business . commercial loans , which includes equipment financing , totaled $ 1.40 billion at december 31 , 2018 , increasing $ 438.8 million , or 46 percent , from 2017. the increase in this portfolio was attributed to : the addition of seasoned bankers including an equipment finance team in 2017 ; a continued focus on client service and value-added aspects of the lending process ; and a continued focus on markets outside of the immediate branch service area , including markets around the teaneck and princeton , new jersey private banking offices . multifamily mortgage loans were $ 1.14 billion at december 31 , 2018 , a decrease of $ 253.2 million or 18 percent when compared to 2017 , through reduced origination levels and $ 131.3 million in loan sales in 2018. this was part of the company 's balance sheet management strategy to continue to reduce lower yielding , primarily fixed-rate multifamily loans as a percent of the overall loan portfolio with higher yielding , primarily floating rate of shorter duration c & i loans becoming a larger percentage of the overall loan portfolio . in late 2015 , the company began providing loans that are partially guaranteed by the small business administration ( “ sba ” ) , for the purposes of providing working capital and or , financing the purchase of equipment , inventory or commercial real estate and that could be used for start-up businesses . all sba loans are underwritten and documented as prescribed by the sba . the company will generally sell the guaranteed portion of the sba loans in the secondary market , with the non-guaranteed portion held in the loan portfolio . during 2018 , the bank sold $ 17.5 million of the guaranteed portion of sba loans into the secondary market . as of december 31 , 2018 , the balance of the non-guaranteed portion of sba loans held on our balance sheet totaled $ 12.0 million . the following table presents an analysis of outstanding loans by loan type , excluding multifamily loans held for sale , net of unamortized discounts and deferred loan origination costs , at the dates presented , replace_table_token_12_th the following table presents the contractual repayments of the loan portfolio , by loan type , at december 31 , 2018 : replace_table_token_13_th 34 the following table presents the loans , by loan type , that have a predetermined interest rate and an adjustable interest rate due after one year at december 31 , 2018 : replace_table_token_14_th the company has not made nor invested in subprime loans or “ alt-a ” type mortgages . at december 31 , 2018 , there were no commitments to lend additional funds to borrowers whose loans were classified as nonperforming . consistent with the company 's balance sheet management strategy , the company sold approximately $ 131.3 million of performing multifamily mortgages in 2018. the company sold approximately $ 66.1 million of performing multifamily mortgages and $ 43.9 million of residential mortgages in 2017. the geographic breakdown of the multifamily portfolio , net of participated multifamily loans , at december 31 , 2018 is as follows : replace_table_token_15_th a further breakdown of the multifamily portfolio by county within each respective state is as follows : replace_table_token_16_th principal types of owner occupied commercial real estate properties ( by call report code ) , included in commercial loans on the balance sheet , at december 31 , 2018 are : replace_table_token_17_th 35 principal types of non-owner occupied commercial real estate properties ( by call report code ) , at december 31 , 2018 are as follows . these loans are included in commercial mortgage loans and commercial loans on the company 's balance sheet . replace_table_token_18_th at december 31 , 2018 and 2017 , the bank had a concentration in commercial real estate loans as defined by applicable regulatory guidance . the following table presents such concentration levels at december 31 , 2018 and 2017 : replace_table_token_19_th the bank believes it addresses the key elements in the risk management framework laid out by its regulators for the effective management of cre concentration risks . goodwill : at december 31 , 2018 goodwill totaled $ 24.4 million , an increase of $ 7.3 million from $ 17.1 million at december 31 , 2017. the increase in goodwill is due to the acquisition of

the key elements of our strategy are : to innovate and efficiently add new functionality and product offerings to the marketaxess platform that we believe will help to increase our market share with existing clients , as well as expand our client base ; to leverage our technology , as well as our strong broker-dealer and institutional investor relationships , to deploy our electronic trading platform into additional product segments within the fixed-income securities markets , deliver fixed-income securities-related technical services and products , and deploy our electronic trading platform into new client segments ; to continue building our existing service offerings so that our electronic trading platform is fully integrated into the workflow of our broker-dealer and institutional investor clients and to continue to add functionality to allow our clients to achieve a fully automated end-to-end straight-through processing solution ( automation from trade initiation to settlement ) ; -44- to add new content and analytical capabilities to corporate bondticker™ in order to improve the value of the information we provide to our clients ; and to continue to supplement our internal growth by entering into strategic alliances , or acquiring businesses or technologies that will enable us to enter new markets , provide new products or services , or otherwise enhance the value of our platform to our clients . on october 26 , 2012 , we entered into an agreement to acquire all of the outstanding shares of xtrakter limited ( “xtrakter” ) from euroclear s.a./n.v . xtrakter is a u.k.-based provider of regulatory transaction reporting , financial market data and trade matching services to the european securities markets . the acquisition of xtrakter will provide us with an expanded set of technology solutions ahead of incoming regulatory mandates from the markets in financial instruments directive in europe . critical factors affecting our industry and our company economic , political and market factors the global fixed-income securities industry is risky and volatile and is directly affected by a number of economic , political and market factors that may result in declining trading volume . these factors could have a material adverse effect on our business , financial condition and results of operations . these factors include , among others , credit market conditions , the current interest rate environment , including the volatility of interest rates and investors ' forecasts of future interest rates , economic and political conditions in the united states , europe and elsewhere , and consolidation or contraction of broker-dealers . competitive landscape the global fixed-income securities industry generally , and the electronic financial services markets in which we engage , in particular , are highly competitive , and we expect competition to intensify in the future . sources of competition for us will continue to include , among others , bond trading conducted directly between broker-dealers and their institutional investor clients over the telephone or electronically and other multi-dealer trading companies . competitors , including companies in which some of our broker-dealer clients have invested , have developed electronic trading platforms or have announced their intention to explore the development of electronic platforms that may compete with us . in general , we compete on the basis of a number of key factors , including , among others , the liquidity provided on our platform , the magnitude and frequency of price improvement enabled by our platform and the quality and speed of execution . we believe that our ability to grow volumes and revenues will largely depend on our performance with respect to these factors . our competitive position is also enhanced by the familiarity and integration of our broker-dealer and institutional investor clients with our electronic trading platform and other systems . we have focused on the unique aspects of the credit markets we serve in the development of our platform , working closely with our clients to provide a system that is suited to their needs . regulatory environment our industry has been and is subject to continuous regulatory changes and may become subject to new regulations or changes in the interpretation or enforcement of existing regulations , which could require us to incur significant costs . our u.s. subsidiary , marketaxess corporation , is a registered broker-dealer with the sec and is a member of finra . our u.k. subsidiary , marketaxess europe limited , is registered as a multilateral trading facility dealer with the fsa in the u.k. marketaxess canada limited , a canadian subsidiary , is registered as an alternative trading system dealer under the securities act of ontario and is a member of the investment industry regulatory organization of canada . relevant regulations prohibit repayment of borrowings from these subsidiaries or their affiliates , paying cash dividends , making loans to us or our affiliates or otherwise entering into transactions that result in a significant reduction in regulatory net capital or financial resources , without prior notification to or approval from such regulated entity 's principal regulator . -45- in july 2010 , the dodd-frank wall street reform and consumer protection act ( the “dodd-frank act” ) was signed into law . u.s. financial regulators are in the midst of an intense period of rulemaking that is required to implement the provisions of the dodd-frank act , and market participants will need to make strategic decisions in an environment of regulatory uncertainty . among the most significant aspects of the derivatives section of the dodd-frank act are mandatory clearing of certain derivatives transactions ( “swaps” ) through regulated central clearing organizations and mandatory trading of those swaps through either regulated exchanges or swap execution facilities , in each case , subject to certain key exceptions . as with other parts of the dodd-frank act , many of the details of the new regulatory regime relating to swaps are left to the regulators to determine through rulemaking . story_separator_special_tag income taxes income taxes are accounted for using the asset and liability method . deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when such differences are expected to reverse . the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date . a valuation allowance is recognized against deferred tax assets if it is more likely than not that such assets will not be realized in future years . we recognize interest and penalties related to unrecognized tax benefits in general and administrative expenses in the consolidated statements of operations . business combinations , goodwill and intangibles assets business combinations are accounted for under the purchase method . the total cost of an acquisition is allocated to the underlying net assets based on their respective estimated fair values . the excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill . determining the fair value of certain assets acquired and liabilities assumed is judgmental in nature and often involves the use of significant estimates and assumptions , including assumptions with respect to future cash flows , discount rates , growth rates and asset lives . we perform an impairment review of goodwill on an annual basis and more frequently if circumstances change . intangible assets with definite lives , including purchased technologies , customer relationships and other intangible assets , are amortized on a straight-line basis over their estimated useful lives , ranging from five to ten years . intangible assets are assessed for impairment when events or circumstances indicate a possible impairment . segment results as an electronic , multi-dealer platform for trading fixed-income securities , our operations constitute a single business segment . because of the highly integrated nature of the financial markets in which we compete and the integration of our worldwide business activities , we believe that results by geographic region , products or types of clients are not necessarily meaningful in understanding our business . results of operations year ended december 31 , 2012 compared to year ended december 31 , 2011 overview total revenues increased by $ 17.1 million or 9.4 % to $ 198.2 million for the year ended december 31 , 2012 from $ 181.1 million for the year ended december 31 , 2011. this increase in total revenues was primarily due to an increase in commissions of $ 18.8 million . total expenses increased by $ 9.2 million or 8.9 % to $ 111.5 million for the year ended december 31 , 2012 from $ 102.4 million for the year ended december 31 , 2011. the increase was primarily due to higher professional and consulting fees of $ 2.9 million , technology and communications expense of $ 1.9 million , employee compensation and benefits expense of $ 1.6 million and amortization and depreciation expenses of $ 1.5 million . -50- income before taxes increased by $ 8.0 million or 10.1 % to $ 86.7 million for the year ended december 31 , 2012 from $ 78.7 million for the year ended december 31 , 2011. net income increased by $ 12.4 million or 25.9 % to $ 60.1 million for the year ended december 31 , 2012 from $ 47.7 million for the year ended december 31 , 2011. revenues our revenues for the years ended december 31 , 2012 and 2011 , and the resulting dollar and percentage changes , were as follows : replace_table_token_4_th commissions . our commission revenues for the years ended december 31 , 2012 and 2011 , and the resulting dollar and percentage changes , were as follows : replace_table_token_5_th due in part to the continuing sovereign debt concerns and the competitive environment in europe , trading volume in our eurobond product significantly decreased over the past several years . monthly distribution fees paid by most of our european broker-dealer market makers were reduced effective march 1 , 2012 , but the dealer variable fee schedule remained unchanged . several additional european broker-dealer market-makers remain on the original fee plan and may move to the new fee plan in the future . -51- the following table shows the extent to which the increase in commissions for the year ended december 31 , 2012 was attributable to changes in transaction volumes , variable transaction fees per million and distribution fees : replace_table_token_6_th our trading volume for each of the years presented was as follows : replace_table_token_7_th for volume reporting purposes , transactions in foreign currencies are converted to u.s. dollars at average monthly rates . the 13.6 % increase in u.s. high-grade volume was principally due to an increase in the company 's estimated market share of total u.s. high-grade corporate bond volume as reported by trace from 11.1 % for the year ended december 31 , 2011 to 12.4 % for the year ended december 31 , 2012. estimated trace u.s. high-grade volume for the year ended december 31 , 2012 was $ 3.0 trillion , an increase of approximately 1.6 % from the year ended december 31 , 2011. our eurobond volumes decreased by 6.5 % for the year ended december 31 , 2012 compared to the year ended december 31 , 2011 due , in part , to unfavorable market conditions in the european region . emerging markets , high-yield and other volume increased by 13.9 % for the year ended december 31 , 2012 compared to the year ended december 31 , 2011 , primarily due to higher emerging markets and high-yield bond volumes . our average variable transaction fee per million for the years ended december 31 , 2012 and 2011 was as follows : replace_table_token_8_th -52- the u.s. high-grade average variable transaction fee per million increased to $

liquidity and capital resources during the past three years , we have met our funding requirements through cash on hand and internally generated funds . cash and cash equivalents and securities available-for-sale totaled $ 180.1 million at december 31 , 2012. on january 14 , 2013 , we entered into a three-year credit agreement that provides for revolving loans and letters of credit up to an aggregate of $ 50.0 million . subject to satisfaction of certain specified conditions , we are permitted to upsize the credit facility by an additional $ 50.0 million in total . our cash flows were as follows : replace_table_token_18_th we define free cash flow as cash flow from operating activities less expenditures for furniture , equipment and leasehold improvements and capitalized software development costs . for the years ended december 31 , 2012 , 2011 and 2010 , free cash flow was $ 71.2 million , $ 58.3 million and $ 57.0 million , respectively . free cash flow is a non-gaap financial measure . we believe that this non-gaap financial measure , when taken into consideration with the corresponding gaap financial measures , is important in gaining an understanding of our financial strength and cash flow generation . -60- cash flows for the year ended december 31 , 2012 compared to year ended december 31 , 2011 net cash provided by operating activities was $ 81.6 million for the year ended december 31 , 2012 compared to $ 65.5 million for the year ended december 31 , 2011. the $ 16.1 million increase was due to higher net income of $ 12.4 million and an increase in cash provided by working capital of $ 17.5 million , offset by a decrease in deferred taxes of $ 16.8 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 during the past three years , we have met our funding requirements through cash on hand and internally generated funds . cash and cash equivalents and securities available-for-sale totaled $ 180.1 million at december 31 , 2012. on january 14 , 2013 , we entered into a three-year credit agreement that provides for revolving loans and letters of credit up to an aggregate of $ 50.0 million . subject to satisfaction of certain specified conditions , we are permitted to upsize the credit facility by an additional $ 50.0 million in total . our cash flows were as follows : replace_table_token_18_th we define free cash flow as cash flow from operating activities less expenditures for furniture , equipment and leasehold improvements and capitalized software development costs . for the years ended december 31 , 2012 , 2011 and 2010 , free cash flow was $ 71.2 million , $ 58.3 million and $ 57.0 million , respectively . free cash flow is a non-gaap financial measure . we believe that this non-gaap financial measure , when taken into consideration with the corresponding gaap financial measures , is important in gaining an understanding of our financial strength and cash flow generation . -60- cash flows for the year ended december 31 , 2012 compared to year ended december 31 , 2011 net cash provided by operating activities was $ 81.6 million for the year ended december 31 , 2012 compared to $ 65.5 million for the year ended december 31 , 2011. the $ 16.1 million increase was due to higher net income of $ 12.4 million and an increase in cash provided by working capital of $ 17.5 million , offset by a decrease in deferred taxes of $ 16.8 million . ``` Suspicious Activity Report : the key elements of our strategy are : to innovate and efficiently add new functionality and product offerings to the marketaxess platform that we believe will help to increase our market share with existing clients , as well as expand our client base ; to leverage our technology , as well as our strong broker-dealer and institutional investor relationships , to deploy our electronic trading platform into additional product segments within the fixed-income securities markets , deliver fixed-income securities-related technical services and products , and deploy our electronic trading platform into new client segments ; to continue building our existing service offerings so that our electronic trading platform is fully integrated into the workflow of our broker-dealer and institutional investor clients and to continue to add functionality to allow our clients to achieve a fully automated end-to-end straight-through processing solution ( automation from trade initiation to settlement ) ; -44- to add new content and analytical capabilities to corporate bondticker™ in order to improve the value of the information we provide to our clients ; and to continue to supplement our internal growth by entering into strategic alliances , or acquiring businesses or technologies that will enable us to enter new markets , provide new products or services , or otherwise enhance the value of our platform to our clients . on october 26 , 2012 , we entered into an agreement to acquire all of the outstanding shares of xtrakter limited ( “xtrakter” ) from euroclear s.a./n.v . xtrakter is a u.k.-based provider of regulatory transaction reporting , financial market data and trade matching services to the european securities markets . the acquisition of xtrakter will provide us with an expanded set of technology solutions ahead of incoming regulatory mandates from the markets in financial instruments directive in europe . critical factors affecting our industry and our company economic , political and market factors the global fixed-income securities industry is risky and volatile and is directly affected by a number of economic , political and market factors that may result in declining trading volume . these factors could have a material adverse effect on our business , financial condition and results of operations . these factors include , among others , credit market conditions , the current interest rate environment , including the volatility of interest rates and investors ' forecasts of future interest rates , economic and political conditions in the united states , europe and elsewhere , and consolidation or contraction of broker-dealers . competitive landscape the global fixed-income securities industry generally , and the electronic financial services markets in which we engage , in particular , are highly competitive , and we expect competition to intensify in the future . sources of competition for us will continue to include , among others , bond trading conducted directly between broker-dealers and their institutional investor clients over the telephone or electronically and other multi-dealer trading companies . competitors , including companies in which some of our broker-dealer clients have invested , have developed electronic trading platforms or have announced their intention to explore the development of electronic platforms that may compete with us . in general , we compete on the basis of a number of key factors , including , among others , the liquidity provided on our platform , the magnitude and frequency of price improvement enabled by our platform and the quality and speed of execution . we believe that our ability to grow volumes and revenues will largely depend on our performance with respect to these factors . our competitive position is also enhanced by the familiarity and integration of our broker-dealer and institutional investor clients with our electronic trading platform and other systems . we have focused on the unique aspects of the credit markets we serve in the development of our platform , working closely with our clients to provide a system that is suited to their needs . regulatory environment our industry has been and is subject to continuous regulatory changes and may become subject to new regulations or changes in the interpretation or enforcement of existing regulations , which could require us to incur significant costs . our u.s. subsidiary , marketaxess corporation , is a registered broker-dealer with the sec and is a member of finra . our u.k. subsidiary , marketaxess europe limited , is registered as a multilateral trading facility dealer with the fsa in the u.k. marketaxess canada limited , a canadian subsidiary , is registered as an alternative trading system dealer under the securities act of ontario and is a member of the investment industry regulatory organization of canada . relevant regulations prohibit repayment of borrowings from these subsidiaries or their affiliates , paying cash dividends , making loans to us or our affiliates or otherwise entering into transactions that result in a significant reduction in regulatory net capital or financial resources , without prior notification to or approval from such regulated entity 's principal regulator . -45- in july 2010 , the dodd-frank wall street reform and consumer protection act ( the “dodd-frank act” ) was signed into law . u.s. financial regulators are in the midst of an intense period of rulemaking that is required to implement the provisions of the dodd-frank act , and market participants will need to make strategic decisions in an environment of regulatory uncertainty . among the most significant aspects of the derivatives section of the dodd-frank act are mandatory clearing of certain derivatives transactions ( “swaps” ) through regulated central clearing organizations and mandatory trading of those swaps through either regulated exchanges or swap execution facilities , in each case , subject to certain key exceptions . as with other parts of the dodd-frank act , many of the details of the new regulatory regime relating to swaps are left to the regulators to determine through rulemaking . story_separator_special_tag income taxes income taxes are accounted for using the asset and liability method . deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when such differences are expected to reverse . the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date . a valuation allowance is recognized against deferred tax assets if it is more likely than not that such assets will not be realized in future years . we recognize interest and penalties related to unrecognized tax benefits in general and administrative expenses in the consolidated statements of operations . business combinations , goodwill and intangibles assets business combinations are accounted for under the purchase method . the total cost of an acquisition is allocated to the underlying net assets based on their respective estimated fair values . the excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill . determining the fair value of certain assets acquired and liabilities assumed is judgmental in nature and often involves the use of significant estimates and assumptions , including assumptions with respect to future cash flows , discount rates , growth rates and asset lives . we perform an impairment review of goodwill on an annual basis and more frequently if circumstances change . intangible assets with definite lives , including purchased technologies , customer relationships and other intangible assets , are amortized on a straight-line basis over their estimated useful lives , ranging from five to ten years . intangible assets are assessed for impairment when events or circumstances indicate a possible impairment . segment results as an electronic , multi-dealer platform for trading fixed-income securities , our operations constitute a single business segment . because of the highly integrated nature of the financial markets in which we compete and the integration of our worldwide business activities , we believe that results by geographic region , products or types of clients are not necessarily meaningful in understanding our business . results of operations year ended december 31 , 2012 compared to year ended december 31 , 2011 overview total revenues increased by $ 17.1 million or 9.4 % to $ 198.2 million for the year ended december 31 , 2012 from $ 181.1 million for the year ended december 31 , 2011. this increase in total revenues was primarily due to an increase in commissions of $ 18.8 million . total expenses increased by $ 9.2 million or 8.9 % to $ 111.5 million for the year ended december 31 , 2012 from $ 102.4 million for the year ended december 31 , 2011. the increase was primarily due to higher professional and consulting fees of $ 2.9 million , technology and communications expense of $ 1.9 million , employee compensation and benefits expense of $ 1.6 million and amortization and depreciation expenses of $ 1.5 million . -50- income before taxes increased by $ 8.0 million or 10.1 % to $ 86.7 million for the year ended december 31 , 2012 from $ 78.7 million for the year ended december 31 , 2011. net income increased by $ 12.4 million or 25.9 % to $ 60.1 million for the year ended december 31 , 2012 from $ 47.7 million for the year ended december 31 , 2011. revenues our revenues for the years ended december 31 , 2012 and 2011 , and the resulting dollar and percentage changes , were as follows : replace_table_token_4_th commissions . our commission revenues for the years ended december 31 , 2012 and 2011 , and the resulting dollar and percentage changes , were as follows : replace_table_token_5_th due in part to the continuing sovereign debt concerns and the competitive environment in europe , trading volume in our eurobond product significantly decreased over the past several years . monthly distribution fees paid by most of our european broker-dealer market makers were reduced effective march 1 , 2012 , but the dealer variable fee schedule remained unchanged . several additional european broker-dealer market-makers remain on the original fee plan and may move to the new fee plan in the future . -51- the following table shows the extent to which the increase in commissions for the year ended december 31 , 2012 was attributable to changes in transaction volumes , variable transaction fees per million and distribution fees : replace_table_token_6_th our trading volume for each of the years presented was as follows : replace_table_token_7_th for volume reporting purposes , transactions in foreign currencies are converted to u.s. dollars at average monthly rates . the 13.6 % increase in u.s. high-grade volume was principally due to an increase in the company 's estimated market share of total u.s. high-grade corporate bond volume as reported by trace from 11.1 % for the year ended december 31 , 2011 to 12.4 % for the year ended december 31 , 2012. estimated trace u.s. high-grade volume for the year ended december 31 , 2012 was $ 3.0 trillion , an increase of approximately 1.6 % from the year ended december 31 , 2011. our eurobond volumes decreased by 6.5 % for the year ended december 31 , 2012 compared to the year ended december 31 , 2011 due , in part , to unfavorable market conditions in the european region . emerging markets , high-yield and other volume increased by 13.9 % for the year ended december 31 , 2012 compared to the year ended december 31 , 2011 , primarily due to higher emerging markets and high-yield bond volumes . our average variable transaction fee per million for the years ended december 31 , 2012 and 2011 was as follows : replace_table_token_8_th -52- the u.s. high-grade average variable transaction fee per million increased to $

in addition , many of our redevelopment and 3-r projects include consolidating small shop space to accommodate construction of new junior anchor space . capital and financing activities our ability to obtain capital on satisfactory terms and to refinance borrowings as they mature is affected by the condition of the economy in general and by the financial strength of properties securing borrowings . throughout 2017 , we were able to maintain our strong balance sheet , financial flexibility and liquidity to fund future growth . we ended the year with approximately $ 398 million of combined cash and borrowing capacity on our unsecured revolving credit facility . in addition , as of december 31 , 2017 , we have approximately $ 82.4 million of debt maturities through december 31 , 2020. the amount that we may borrow under our unsecured revolving credit facility is limited by the value of the assets in our unencumbered asset pool . as of december 31 , 2017 , the value of the assets in our unencumbered asset pool was $ 1.4 billion . the investment grade credit ratings we have received provide us with access to the unsecured public bond market , which we may continue to use in the future to finance acquisition activity , repay maturing debt and fix interest rates . summary of critical accounting policies and estimates our significant accounting policies are more fully described in note 2 to the accompanying consolidated financial statements . as disclosed in note 2 , the preparation of financial statements in accordance with gaap requires management to make estimates and assumptions about future events that affect the amounts reported in the financial statements and accompanying notes . actual results could differ from those estimates . we believe that the following discussion addresses our most critical accounting policies , which are those that are most important to the compilation of our financial condition and results of operations and require management 's most difficult , subjective , and complex judgments . valuation of investment properties management reviews operational and development projects , land parcels and intangible assets for impairment on at least a quarterly basis or whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable . the review for possible impairment requires management to make certain assumptions and estimates and requires significant judgment . impairment losses for investment properties and intangible assets are measured when the undiscounted cash flows 49 estimated to be generated by the investment properties during the expected holding period are less than the carrying amounts of those assets . impairment losses are recorded as the excess of the carrying value over the estimated fair value of the asset . our impairment review for land and development properties assumes we have the intent and the ability to complete the developments or projected uses for the land parcels . if we determine those plans will not be completed or our assumptions with respect to operating assets are not realized , an impairment loss may be appropriate . depreciation may be accelerated for a redevelopment project , including partial demolition of existing structures after the asset is assessed for impairment . operating properties will be classified as held for sale only when those properties are available for immediate sale in their present condition and for which management believes it is probable that a sale of the property will be completed within one year , among other factors . operating properties classified as held for sale are carried at the lower of cost or fair value less estimated costs to sell . depreciation and amortization are suspended during the held-for-sale period . our operating properties have operations and cash flows that can be clearly distinguished from the rest of our activities . historically , the operations reported in discontinued operations include those operating properties that were sold or were considered held for sale and for which operations and cash flows can be clearly distinguished . the operations from these properties are eliminated from ongoing operations , and we will not have a continuing involvement after disposition . in 2014 , we adopted the provisions of asu 2014-08 , presentation of financial statements ( topic 205 ) and property , plant , and equipment ( topic 360 ) : reporting discontinued operations and disclosures of disposals of components of an entity , which will result in fewer real estate sales being classified within discontinued operations , as only disposals representing a strategic shift in operations will be presented as discontinued operations . no properties that have been sold , or designated as held-for-sale , since the adoption of asu 2014-08 , have met the revised criteria for classification within discontinued operations . acquisition of real estate investments upon acquisition of real estate operating properties , we estimate the fair value of acquired identifiable tangible assets and identified intangible assets and liabilities , assumed debt , and any noncontrolling interest in the acquiree at the date of acquisition , based on evaluation of information and estimates available at that date . based on these estimates , we record the estimated fair value to the applicable assets and liabilities . in making estimates of fair values , a number of sources are utilized , including information obtained as a result of pre-acquisition due diligence , marketing and leasing activities . the estimates of fair value were determined to have primarily relied upon level 2 and level 3 inputs , as defined below . story_separator_special_tag the nareit white paper defines ffo as net income ( determined in accordance with gaap ) , excluding gains ( or 55 losses ) from sales and impairments of depreciated property , plus depreciation and amortization , and after adjustments for unconsolidated partnerships and joint ventures . considering the nature of our business as a real estate owner and operator , we believe that ffo is helpful to investors in measuring our operational performance because it excludes various items included in net income that do not relate to or are not indicative of our operating performance , such as gains or losses from sales of depreciated property and depreciation and amortization , which can make periodic and peer analyses of operating performance more difficult . for informational purposes , we have also provided ffo adjusted for accelerated amortization of debt issuance costs , transaction costs , a severance charge and a debt extinguishment loss in 2016. we believe this supplemental information provides a meaningful measure of our operating performance . we believe our presentation of ffo , as adjusted , provides investors with another financial measure that may facilitate comparison of operating performance between periods and among our peer companies . ffo should not be considered as an alternative to net income ( determined in accordance with gaap ) as an indicator of our financial performance , is not an alternative to cash flow from operating activities ( determined in accordance with gaap ) as a measure of our liquidity , and is not indicative of funds available to satisfy our cash needs , including our ability to make distributions . our computation of ffo may not be comparable to ffo reported by other reits that do not define the term in accordance with the current nareit definition or that interpret the current nareit definition differently than we do . our calculations of ffo 1 and reconciliation to consolidated net income and ffo , as adjusted for the years ended december 31 , 2017 , 2016 and 2015 ( unaudited ) are as follows : replace_table_token_24_th 1 “ ffo of the operating partnership `` measures 100 % of the operating performance of the operating partnership 's real estate properties . “ ffo attributable to kite realty group trust common shareholders ” reflects a reduction for the redeemable noncontrolling weighted average diluted interest in the operating partnership . earnings before interest , tax , depreciation , and amortization ( ebitda ) 56 we define ebitda , a non-gaap financial measure , as net income before depreciation and amortization , interest expense and income tax expense of taxable reit subsidiary . for informational purposes , we have also provided adjusted ebitda , which we define as ebitda less ( i ) ebitda from unconsolidated entities , ( ii ) gains on sales of operating properties or impairment charges , ( iii ) other income and expense , ( iv ) noncontrolling interest ebitda and ( v ) other non-recurring activity or items impacting comparability from period to period . annualized adjusted ebitda is adjusted ebitda for the most recent quarter multiplied by four . net debt to adjusted ebitda is our share of net debt divided by annualized adjusted ebitda . ebitda , adjusted ebitda , annualized adjusted ebitda and net debt to adjusted ebitda , as calculated by us , are not comparable to ebitda and ebitda-related measures reported by other reits that do not define ebitda and ebitda-related measures exactly as we do . ebitda , adjusted ebitda and annualized adjusted ebitda do not represent cash generated from operating activities in accordance with gaap , and should not be considered alternatives to net income as an indicator of performance or as alternatives to cash flows from operating activities as an indicator of liquidity . considering the nature of our business as a real estate owner and operator , we believe that ebitda , adjusted ebitda and the ratio of net debt to adjusted ebitda are helpful to investors in measuring our operational performance because they exclude various items included in net income that do not relate to or are not indicative of our operating performance , such as gains or losses from sales of depreciated property and depreciation and amortization , which can make periodic and peer analyses of operating performance more difficult . for informational purposes , we have also provided annualized adjusted ebitda , adjusted as described above . we believe this supplemental information provides a meaningful measure of our operating performance . we believe presenting ebitda and the related measures in this manner allows investors and other interested parties to form a more meaningful assessment of our operating results . the following table presents a reconciliation of our ebitda , adjusted ebitda and annualized adjusted ebitda to consolidated net income ( the most directly comparable gaap measure ) and a calculation of net debt to adjusted ebitda . replace_table_token_25_th 1 represents adjusted ebitda for the three months ended december 31 , 2017 ( as shown in the table above ) multiplied by four . 57 comparison of operating results for the years ended december 31 , 2017 and 2016 the following table reflects changes in the components of our consolidated statements of operations for the years ended december 31 , 2017 and 2016 : replace_table_token_26_th rental income ( including tenant reimbursements ) increased $ 1.9 million , or 0.6 % , due to the following : replace_table_token_27_th the net increase of $ 8.0 million in rental income for properties that were fully operational during 2016 and 2017 is primarily attributable to an increase in rental rates and an increase in occupancy , which leads to more tenants paying rent . the increase in rental revenue is primarily due to multiple anchor and small shop tenants opening as we completed or partially completed various redevelopment and repositioning projects including trader joe 's at centennial gateway , ross dress for less at trussville promenade , party city at market

cash provided by operating activities was $ 153.7 million for the year ended december 31 , 2017 , a decrease of $ 1.3 million from the same period of 2016 . the slight decrease was primarily due to a decrease in cash provided by operating activities due to our 2017 property sales , partially offset by the completion of several 3-r projects , and higher revenue on sales of undepreciated assets in 2017. cash used in investing activities was $ 0.1 million for the year ended december 31 , 2017 , as compared to cash used in investing activities of $ 82.7 million in the same period of 2016 . the major changes in cash used in investing activities are as follows : net proceeds of $ 76.1 million related to the sale of cove center , clay marketplace , the shops at village walk and wheatland towne crossing in 2017 , compared to net proceeds of $ 14.2 million from two property sales in 2016 ; and decrease in capital expenditures of $ 23.8 million , partially offset by a decrease in construction payables of $ 4.3 million . in 2017 , we incurred additional construction costs at our parkside towne commons - phase ii and holly springs towne center - phase ii development projects , and additional construction costs at several of our redevelopment properties . cash used in financing activities was $ 149.3 million for the year ended december 31 , 2017 , compared to cash used in financing activities of $ 86.3 million in the same period of 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 provided by operating activities was $ 153.7 million for the year ended december 31 , 2017 , a decrease of $ 1.3 million from the same period of 2016 . the slight decrease was primarily due to a decrease in cash provided by operating activities due to our 2017 property sales , partially offset by the completion of several 3-r projects , and higher revenue on sales of undepreciated assets in 2017. cash used in investing activities was $ 0.1 million for the year ended december 31 , 2017 , as compared to cash used in investing activities of $ 82.7 million in the same period of 2016 . the major changes in cash used in investing activities are as follows : net proceeds of $ 76.1 million related to the sale of cove center , clay marketplace , the shops at village walk and wheatland towne crossing in 2017 , compared to net proceeds of $ 14.2 million from two property sales in 2016 ; and decrease in capital expenditures of $ 23.8 million , partially offset by a decrease in construction payables of $ 4.3 million . in 2017 , we incurred additional construction costs at our parkside towne commons - phase ii and holly springs towne center - phase ii development projects , and additional construction costs at several of our redevelopment properties . cash used in financing activities was $ 149.3 million for the year ended december 31 , 2017 , compared to cash used in financing activities of $ 86.3 million in the same period of 2016 . ``` Suspicious Activity Report : in addition , many of our redevelopment and 3-r projects include consolidating small shop space to accommodate construction of new junior anchor space . capital and financing activities our ability to obtain capital on satisfactory terms and to refinance borrowings as they mature is affected by the condition of the economy in general and by the financial strength of properties securing borrowings . throughout 2017 , we were able to maintain our strong balance sheet , financial flexibility and liquidity to fund future growth . we ended the year with approximately $ 398 million of combined cash and borrowing capacity on our unsecured revolving credit facility . in addition , as of december 31 , 2017 , we have approximately $ 82.4 million of debt maturities through december 31 , 2020. the amount that we may borrow under our unsecured revolving credit facility is limited by the value of the assets in our unencumbered asset pool . as of december 31 , 2017 , the value of the assets in our unencumbered asset pool was $ 1.4 billion . the investment grade credit ratings we have received provide us with access to the unsecured public bond market , which we may continue to use in the future to finance acquisition activity , repay maturing debt and fix interest rates . summary of critical accounting policies and estimates our significant accounting policies are more fully described in note 2 to the accompanying consolidated financial statements . as disclosed in note 2 , the preparation of financial statements in accordance with gaap requires management to make estimates and assumptions about future events that affect the amounts reported in the financial statements and accompanying notes . actual results could differ from those estimates . we believe that the following discussion addresses our most critical accounting policies , which are those that are most important to the compilation of our financial condition and results of operations and require management 's most difficult , subjective , and complex judgments . valuation of investment properties management reviews operational and development projects , land parcels and intangible assets for impairment on at least a quarterly basis or whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable . the review for possible impairment requires management to make certain assumptions and estimates and requires significant judgment . impairment losses for investment properties and intangible assets are measured when the undiscounted cash flows 49 estimated to be generated by the investment properties during the expected holding period are less than the carrying amounts of those assets . impairment losses are recorded as the excess of the carrying value over the estimated fair value of the asset . our impairment review for land and development properties assumes we have the intent and the ability to complete the developments or projected uses for the land parcels . if we determine those plans will not be completed or our assumptions with respect to operating assets are not realized , an impairment loss may be appropriate . depreciation may be accelerated for a redevelopment project , including partial demolition of existing structures after the asset is assessed for impairment . operating properties will be classified as held for sale only when those properties are available for immediate sale in their present condition and for which management believes it is probable that a sale of the property will be completed within one year , among other factors . operating properties classified as held for sale are carried at the lower of cost or fair value less estimated costs to sell . depreciation and amortization are suspended during the held-for-sale period . our operating properties have operations and cash flows that can be clearly distinguished from the rest of our activities . historically , the operations reported in discontinued operations include those operating properties that were sold or were considered held for sale and for which operations and cash flows can be clearly distinguished . the operations from these properties are eliminated from ongoing operations , and we will not have a continuing involvement after disposition . in 2014 , we adopted the provisions of asu 2014-08 , presentation of financial statements ( topic 205 ) and property , plant , and equipment ( topic 360 ) : reporting discontinued operations and disclosures of disposals of components of an entity , which will result in fewer real estate sales being classified within discontinued operations , as only disposals representing a strategic shift in operations will be presented as discontinued operations . no properties that have been sold , or designated as held-for-sale , since the adoption of asu 2014-08 , have met the revised criteria for classification within discontinued operations . acquisition of real estate investments upon acquisition of real estate operating properties , we estimate the fair value of acquired identifiable tangible assets and identified intangible assets and liabilities , assumed debt , and any noncontrolling interest in the acquiree at the date of acquisition , based on evaluation of information and estimates available at that date . based on these estimates , we record the estimated fair value to the applicable assets and liabilities . in making estimates of fair values , a number of sources are utilized , including information obtained as a result of pre-acquisition due diligence , marketing and leasing activities . the estimates of fair value were determined to have primarily relied upon level 2 and level 3 inputs , as defined below . story_separator_special_tag the nareit white paper defines ffo as net income ( determined in accordance with gaap ) , excluding gains ( or 55 losses ) from sales and impairments of depreciated property , plus depreciation and amortization , and after adjustments for unconsolidated partnerships and joint ventures . considering the nature of our business as a real estate owner and operator , we believe that ffo is helpful to investors in measuring our operational performance because it excludes various items included in net income that do not relate to or are not indicative of our operating performance , such as gains or losses from sales of depreciated property and depreciation and amortization , which can make periodic and peer analyses of operating performance more difficult . for informational purposes , we have also provided ffo adjusted for accelerated amortization of debt issuance costs , transaction costs , a severance charge and a debt extinguishment loss in 2016. we believe this supplemental information provides a meaningful measure of our operating performance . we believe our presentation of ffo , as adjusted , provides investors with another financial measure that may facilitate comparison of operating performance between periods and among our peer companies . ffo should not be considered as an alternative to net income ( determined in accordance with gaap ) as an indicator of our financial performance , is not an alternative to cash flow from operating activities ( determined in accordance with gaap ) as a measure of our liquidity , and is not indicative of funds available to satisfy our cash needs , including our ability to make distributions . our computation of ffo may not be comparable to ffo reported by other reits that do not define the term in accordance with the current nareit definition or that interpret the current nareit definition differently than we do . our calculations of ffo 1 and reconciliation to consolidated net income and ffo , as adjusted for the years ended december 31 , 2017 , 2016 and 2015 ( unaudited ) are as follows : replace_table_token_24_th 1 “ ffo of the operating partnership `` measures 100 % of the operating performance of the operating partnership 's real estate properties . “ ffo attributable to kite realty group trust common shareholders ” reflects a reduction for the redeemable noncontrolling weighted average diluted interest in the operating partnership . earnings before interest , tax , depreciation , and amortization ( ebitda ) 56 we define ebitda , a non-gaap financial measure , as net income before depreciation and amortization , interest expense and income tax expense of taxable reit subsidiary . for informational purposes , we have also provided adjusted ebitda , which we define as ebitda less ( i ) ebitda from unconsolidated entities , ( ii ) gains on sales of operating properties or impairment charges , ( iii ) other income and expense , ( iv ) noncontrolling interest ebitda and ( v ) other non-recurring activity or items impacting comparability from period to period . annualized adjusted ebitda is adjusted ebitda for the most recent quarter multiplied by four . net debt to adjusted ebitda is our share of net debt divided by annualized adjusted ebitda . ebitda , adjusted ebitda , annualized adjusted ebitda and net debt to adjusted ebitda , as calculated by us , are not comparable to ebitda and ebitda-related measures reported by other reits that do not define ebitda and ebitda-related measures exactly as we do . ebitda , adjusted ebitda and annualized adjusted ebitda do not represent cash generated from operating activities in accordance with gaap , and should not be considered alternatives to net income as an indicator of performance or as alternatives to cash flows from operating activities as an indicator of liquidity . considering the nature of our business as a real estate owner and operator , we believe that ebitda , adjusted ebitda and the ratio of net debt to adjusted ebitda are helpful to investors in measuring our operational performance because they exclude various items included in net income that do not relate to or are not indicative of our operating performance , such as gains or losses from sales of depreciated property and depreciation and amortization , which can make periodic and peer analyses of operating performance more difficult . for informational purposes , we have also provided annualized adjusted ebitda , adjusted as described above . we believe this supplemental information provides a meaningful measure of our operating performance . we believe presenting ebitda and the related measures in this manner allows investors and other interested parties to form a more meaningful assessment of our operating results . the following table presents a reconciliation of our ebitda , adjusted ebitda and annualized adjusted ebitda to consolidated net income ( the most directly comparable gaap measure ) and a calculation of net debt to adjusted ebitda . replace_table_token_25_th 1 represents adjusted ebitda for the three months ended december 31 , 2017 ( as shown in the table above ) multiplied by four . 57 comparison of operating results for the years ended december 31 , 2017 and 2016 the following table reflects changes in the components of our consolidated statements of operations for the years ended december 31 , 2017 and 2016 : replace_table_token_26_th rental income ( including tenant reimbursements ) increased $ 1.9 million , or 0.6 % , due to the following : replace_table_token_27_th the net increase of $ 8.0 million in rental income for properties that were fully operational during 2016 and 2017 is primarily attributable to an increase in rental rates and an increase in occupancy , which leads to more tenants paying rent . the increase in rental revenue is primarily due to multiple anchor and small shop tenants opening as we completed or partially completed various redevelopment and repositioning projects including trader joe 's at centennial gateway , ross dress for less at trussville promenade , party city at market

in 2016 the company 's average checking and savings deposits were 5 percent higher than in 2015. these lower-costing deposit products , which earn relatively low interest rates and are less volatile than time deposits during periods of rising market interest rates , represented 94 percent of average total deposits in 2016. credit quality improved with nonperforming assets declining to $ 12.0 million at december 31 , 2016 from $ 24.6 million at december 31 , 2015. reflecting management 's evaluation of losses inherent in the loan portfolio , including improvements in most credit metrics the company recorded a reversal of the provision for loan losses of $ 3.2 million in 2016. management is focused on controlling all noninterest expense levels , particularly due to market interest rate pressure on net interest income . noninterest expenses declined to $ 101.8 million in 2016 compared to $ 105.3 million in 2015. the company presents its net interest margin and net interest income on an fte basis using the current statutory federal tax rate , which is a non-generally accepted accounting principles ( gaap ) financial measure . management believes the fte basis is valuable to the reader because the company 's loan and investment securities portfolios contain a relatively large portion of municipal loans and securities that generate interest income which is exempt from federal income tax . the company 's tax exempt loans and securities composition may not be similar to that of other banks ; therefore in order to reflect the impact of the federally tax exempt loans and securities on the net interest margin and net interest income for comparability with other banks , the company presents its net interest margin and net interest income on an fte basis . - 19 - the company reported net income of $ 58.9 million or $ 2.29 diluted earnings per common share for the year ended december 31 , 2016 compared with net income of $ 58.8 million or $ 2.30 diluted earnings per common share for the year ended december 31 , 2015 and net income of $ 60.6 million or $ 2.32 diluted earnings per common share for the year ended december 31 , 2014. components of net income replace_table_token_5_th comparing 2016 with 2015 , net income increased $ 100 thousand due to a reversal of provision for loan losses and lower noninterest expense , partially offset by lower net interest and fee income ( fte ) , lower noninterest income and higher income tax provision ( fte ) . the lower net interest and fee income ( fte ) was primarily caused by lower average balances of loans , partially offset by higher average balances of investments and lower average balances of higher-costing time deposits . the company recorded a reversal of the provision for loan losses of $ 3.2 million , reflecting management 's evaluation of losses inherent in the loan portfolio . noninterest income decreased primarily due to reduced levels of service charges on deposit accounts , financial services commissions and other service fees , partially offset by higher debit card fees . noninterest expense decreased mostly due to lower personnel expense , lower occupancy expense , and lower other operating expense , offset in part by higher legal fees . income tax provision ( fte ) increased in 2016 due to higher pretax income , declining tax preference items and lower tax credits . comparing 2015 with 2014 , net income decreased $ 1.9 million or 3.1 % , primarily due to lower net interest and loan fee income ( fte ) and lower noninterest income , partially offset by decreases in loan loss provision , noninterest expense and income tax provision ( fte ) . the lower net interest and loan fee income ( fte ) was primarily caused by a lower average volume of loans and lower yields on interest-earning assets , partially offset by higher average balances of investments and lower average balances of higher-costing interest-bearing liabilities . the provision for loan losses was reduced , reflecting management 's evaluation of losses inherent in the loan portfolio ; net loan losses and nonperforming loan volumes have declined relative to earlier periods . lower noninterest income was mostly attributable to lower merchant processing service fees and lower service charges on deposit accounts . noninterest expense decreased primarily due to reduced personnel costs and other operational expenses . [ the remainder of this page intentionally left blank ] - 20 - net interest and loan fee income ( fte ) the company 's primary source of revenue is net interest income , or the difference between interest income earned on loans and investment securities and interest expense paid on interest-bearing deposits and other borrowings . components of net interest and loan fee income ( fte ) replace_table_token_6_th comparing 2016 with 2015 , net interest and loan fee income ( fte ) decreased $ 3.2 million due to lower average balances of loans ( down $ 194 million ) , partially offset by higher average balances of investments ( up $ 255 million ) and lower average balances of higher-costing time deposits ( down $ 62 million ) . comparing 2015 with 2014 , net interest and fee income ( fte ) decreased $ 4.4 million or 2.9 % primarily due to a lower average volume of loans ( down $ 155 million ) and lower yields on interest-earning assets ( fte ) ( down 37 basis points “ bp ” ) , partially offset by higher average balances of investments ( up $ 436 million ) and lower average balances of higher-costing interest-bearing liabilities . loan volumes have declined due to problem loan workout activities ( such as chargeoffs , collateral repossessions and principal payments ) , particularly with purchased loans , and reduced volumes of loan originations . in management 's opinion , current levels of competitive loan pricing do not provide adequate forward earnings potential . story_separator_special_tag replace_table_token_20_th [ the remainder of this page intentionally left blank ] - 32 - at december 31 , 2015 , the revenue bonds in the company 's investment securities portfolios were issued by state and local government municipalities and agencies to fund public services such as water utility , sewer utility , recreational and school facilities , and general public and economic improvements . the revenue bonds were payable from 22 revenue sources . the revenue sources that represent 5 % or more individually of the total revenue bonds are summarized in the following table . replace_table_token_21_th see note 2 to the consolidated financial statements for additional information related to the investment securities . loan portfolio the company originates loans with the intent to hold such assets until principal is repaid . management follows written loan underwriting policies and procedures which are approved by the bank 's board of directors . loans are underwritten following approved underwriting standards and lending authorities within a formalized organizational structure . the board of directors also approves independent real estate appraisers to be used in obtaining estimated values for real property serving as loan collateral . prevailing economic trends and conditions are also taken into consideration in loan underwriting practices . all loan applications must be for clearly defined legitimate purposes with a determinable primary source of repayment , and as appropriate , secondary sources of repayment . all loans are supported by appropriate documentation such as current financial statements , tax returns , credit reports , collateral information , guarantor asset verification , title reports , appraisals , and other relevant documentation . commercial loans represent term loans used to acquire durable business assets or revolving lines of credit used to finance working capital . underwriting practices evaluate each borrower 's cash flow as the principal source of loan repayment . commercial loans are generally secured by the borrower 's business assets as a secondary source of repayment . commercial loans are evaluated for credit-worthiness based on prior loan performance , borrower financial information including cash flow , borrower net worth and aggregate debt . commercial real estate loans represent term loans used to acquire real estate to be operated by the borrower in a commercial capacity . underwriting practices evaluate each borrower 's global cash flow as the principal source of loan repayment , independent appraisal of value of the property , and other relevant factors . commercial real estate loans are generally secured by a first lien on the property as a secondary source of repayment . real estate construction loans represent the financing of real estate development . loan principal disbursements are controlled through the use of project budgets , and disbursements are approved based on construction progress , which is validated by project site inspections . a first lien on the real estate serves as collateral to secure the loan . residential real estate loans generally represent first lien mortgages used by the borrower to purchase or refinance a principal residence . for interest-rate risk purposes , the company offers only fully-amortizing , adjustable-rate mortgages . in underwriting first lien mortgages , the company evaluates each borrower 's ability to repay the loan , an independent appraisal of the value of the property , and other relevant factors . the company does not offer riskier mortgage products , such as non-amortizing “ interest-only ” mortgages and “ negative amortization ” mortgages . for loans secured by real estate , the bank requires title insurance to insure the status of its lien and each borrower is obligated to insure the real estate collateral , naming the company as loss payee , in an amount sufficient to repay the principal amount outstanding in the event of a property casualty loss . - 33 - consumer installment and other loans are predominantly comprised of indirect automobile loans with underwriting based on credit history and scores , personal income , debt service capacity , and collateral values . for management purposes , the company segregates its loan portfolio into three segments . loans originated by the company following its loan underwriting policies and procedures are separated from loans purchased from the fdic . loan volumes have declined due to problem loan workout activities , particularly with purchased loans , and reduced volumes of loan originations . in management 's opinion , current levels of competitive loan pricing do not provide adequate forward earnings potential . as a result , the company has not currently taken an aggressive posture relative to loan portfolio growth . the following table shows the composition of the loan portfolio of the company by type of loan and type of borrower , on the dates indicated : loan portfolio replace_table_token_22_th the following table shows the maturity distribution and interest rate sensitivity of commercial , commercial real estate , and construction loans at december 31 , 2016. balances exclude residential real estate loans and consumer loans totaling $ 453.3 million . these types of loans are typically paid in monthly installments over a number of years . loan maturity distribution replace_table_token_23_th commitments and letters of credit the company issues formal commitments on lines of credit to well-established and financially responsible commercial enterprises . such commitments can be either secured or unsecured and are typically in the form of revolving lines of credit for seasonal working capital needs . occasionally , such commitments are in the form of letters of credit to facilitate the customers ' particular business transactions . commitment fees are generally charged for commitments and letters of credit . commitments on lines of credit and letters of credit typically mature within one year . for further information , see the accompanying notes to the consolidated financial statements . loan portfolio credit risk the company extends loans to commercial and consumer customers which expose the company to the risk borrowers will default , causing loan losses . the company 's lending activities are exposed to various qualitative risks .

capital resources the company has historically generated high levels of earnings , which provide a means of accumulating capital . the company 's net income as a percentage of average shareholders ' equity ( “ return on equity ” or “ roe ” ) has been 10.9 % in 2016 , 11.3 % in 2015 and 11.6 % in 2014. the company also raises capital as employees exercise stock options . capital raised through the exercise of stock options was $ 24 million in 2016 compared with $ 5 million in 2015 and $ 12 million in 2014. the company paid common dividends totaling $ 40 million in 2016 , $ 39 million in 2015 and $ 40 million in 2014 , which represent dividends per common share of $ 1.56 , $ 1.53 and $ 1.52 , respectively . the company 's earnings have historically exceeded dividends paid to shareholders . the amount of earnings in excess of dividends provides the company resources to finance growth and maintain appropriate levels of shareholders ' equity . in the absence of profitable growth opportunities , the company has repurchased and retired its common stock as another means to return earnings to shareholders . the company repurchased and retired 137 thousand shares valued at $ 6 million in 2016 , 344 thousand shares valued at $ 15 million in 2015 and 1.0 million shares valued at $ 53 million in 2014 .

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 has historically generated high levels of earnings , which provide a means of accumulating capital . the company 's net income as a percentage of average shareholders ' equity ( “ return on equity ” or “ roe ” ) has been 10.9 % in 2016 , 11.3 % in 2015 and 11.6 % in 2014. the company also raises capital as employees exercise stock options . capital raised through the exercise of stock options was $ 24 million in 2016 compared with $ 5 million in 2015 and $ 12 million in 2014. the company paid common dividends totaling $ 40 million in 2016 , $ 39 million in 2015 and $ 40 million in 2014 , which represent dividends per common share of $ 1.56 , $ 1.53 and $ 1.52 , respectively . the company 's earnings have historically exceeded dividends paid to shareholders . the amount of earnings in excess of dividends provides the company resources to finance growth and maintain appropriate levels of shareholders ' equity . in the absence of profitable growth opportunities , the company has repurchased and retired its common stock as another means to return earnings to shareholders . the company repurchased and retired 137 thousand shares valued at $ 6 million in 2016 , 344 thousand shares valued at $ 15 million in 2015 and 1.0 million shares valued at $ 53 million in 2014 . ``` Suspicious Activity Report : in 2016 the company 's average checking and savings deposits were 5 percent higher than in 2015. these lower-costing deposit products , which earn relatively low interest rates and are less volatile than time deposits during periods of rising market interest rates , represented 94 percent of average total deposits in 2016. credit quality improved with nonperforming assets declining to $ 12.0 million at december 31 , 2016 from $ 24.6 million at december 31 , 2015. reflecting management 's evaluation of losses inherent in the loan portfolio , including improvements in most credit metrics the company recorded a reversal of the provision for loan losses of $ 3.2 million in 2016. management is focused on controlling all noninterest expense levels , particularly due to market interest rate pressure on net interest income . noninterest expenses declined to $ 101.8 million in 2016 compared to $ 105.3 million in 2015. the company presents its net interest margin and net interest income on an fte basis using the current statutory federal tax rate , which is a non-generally accepted accounting principles ( gaap ) financial measure . management believes the fte basis is valuable to the reader because the company 's loan and investment securities portfolios contain a relatively large portion of municipal loans and securities that generate interest income which is exempt from federal income tax . the company 's tax exempt loans and securities composition may not be similar to that of other banks ; therefore in order to reflect the impact of the federally tax exempt loans and securities on the net interest margin and net interest income for comparability with other banks , the company presents its net interest margin and net interest income on an fte basis . - 19 - the company reported net income of $ 58.9 million or $ 2.29 diluted earnings per common share for the year ended december 31 , 2016 compared with net income of $ 58.8 million or $ 2.30 diluted earnings per common share for the year ended december 31 , 2015 and net income of $ 60.6 million or $ 2.32 diluted earnings per common share for the year ended december 31 , 2014. components of net income replace_table_token_5_th comparing 2016 with 2015 , net income increased $ 100 thousand due to a reversal of provision for loan losses and lower noninterest expense , partially offset by lower net interest and fee income ( fte ) , lower noninterest income and higher income tax provision ( fte ) . the lower net interest and fee income ( fte ) was primarily caused by lower average balances of loans , partially offset by higher average balances of investments and lower average balances of higher-costing time deposits . the company recorded a reversal of the provision for loan losses of $ 3.2 million , reflecting management 's evaluation of losses inherent in the loan portfolio . noninterest income decreased primarily due to reduced levels of service charges on deposit accounts , financial services commissions and other service fees , partially offset by higher debit card fees . noninterest expense decreased mostly due to lower personnel expense , lower occupancy expense , and lower other operating expense , offset in part by higher legal fees . income tax provision ( fte ) increased in 2016 due to higher pretax income , declining tax preference items and lower tax credits . comparing 2015 with 2014 , net income decreased $ 1.9 million or 3.1 % , primarily due to lower net interest and loan fee income ( fte ) and lower noninterest income , partially offset by decreases in loan loss provision , noninterest expense and income tax provision ( fte ) . the lower net interest and loan fee income ( fte ) was primarily caused by a lower average volume of loans and lower yields on interest-earning assets , partially offset by higher average balances of investments and lower average balances of higher-costing interest-bearing liabilities . the provision for loan losses was reduced , reflecting management 's evaluation of losses inherent in the loan portfolio ; net loan losses and nonperforming loan volumes have declined relative to earlier periods . lower noninterest income was mostly attributable to lower merchant processing service fees and lower service charges on deposit accounts . noninterest expense decreased primarily due to reduced personnel costs and other operational expenses . [ the remainder of this page intentionally left blank ] - 20 - net interest and loan fee income ( fte ) the company 's primary source of revenue is net interest income , or the difference between interest income earned on loans and investment securities and interest expense paid on interest-bearing deposits and other borrowings . components of net interest and loan fee income ( fte ) replace_table_token_6_th comparing 2016 with 2015 , net interest and loan fee income ( fte ) decreased $ 3.2 million due to lower average balances of loans ( down $ 194 million ) , partially offset by higher average balances of investments ( up $ 255 million ) and lower average balances of higher-costing time deposits ( down $ 62 million ) . comparing 2015 with 2014 , net interest and fee income ( fte ) decreased $ 4.4 million or 2.9 % primarily due to a lower average volume of loans ( down $ 155 million ) and lower yields on interest-earning assets ( fte ) ( down 37 basis points “ bp ” ) , partially offset by higher average balances of investments ( up $ 436 million ) and lower average balances of higher-costing interest-bearing liabilities . loan volumes have declined due to problem loan workout activities ( such as chargeoffs , collateral repossessions and principal payments ) , particularly with purchased loans , and reduced volumes of loan originations . in management 's opinion , current levels of competitive loan pricing do not provide adequate forward earnings potential . story_separator_special_tag replace_table_token_20_th [ the remainder of this page intentionally left blank ] - 32 - at december 31 , 2015 , the revenue bonds in the company 's investment securities portfolios were issued by state and local government municipalities and agencies to fund public services such as water utility , sewer utility , recreational and school facilities , and general public and economic improvements . the revenue bonds were payable from 22 revenue sources . the revenue sources that represent 5 % or more individually of the total revenue bonds are summarized in the following table . replace_table_token_21_th see note 2 to the consolidated financial statements for additional information related to the investment securities . loan portfolio the company originates loans with the intent to hold such assets until principal is repaid . management follows written loan underwriting policies and procedures which are approved by the bank 's board of directors . loans are underwritten following approved underwriting standards and lending authorities within a formalized organizational structure . the board of directors also approves independent real estate appraisers to be used in obtaining estimated values for real property serving as loan collateral . prevailing economic trends and conditions are also taken into consideration in loan underwriting practices . all loan applications must be for clearly defined legitimate purposes with a determinable primary source of repayment , and as appropriate , secondary sources of repayment . all loans are supported by appropriate documentation such as current financial statements , tax returns , credit reports , collateral information , guarantor asset verification , title reports , appraisals , and other relevant documentation . commercial loans represent term loans used to acquire durable business assets or revolving lines of credit used to finance working capital . underwriting practices evaluate each borrower 's cash flow as the principal source of loan repayment . commercial loans are generally secured by the borrower 's business assets as a secondary source of repayment . commercial loans are evaluated for credit-worthiness based on prior loan performance , borrower financial information including cash flow , borrower net worth and aggregate debt . commercial real estate loans represent term loans used to acquire real estate to be operated by the borrower in a commercial capacity . underwriting practices evaluate each borrower 's global cash flow as the principal source of loan repayment , independent appraisal of value of the property , and other relevant factors . commercial real estate loans are generally secured by a first lien on the property as a secondary source of repayment . real estate construction loans represent the financing of real estate development . loan principal disbursements are controlled through the use of project budgets , and disbursements are approved based on construction progress , which is validated by project site inspections . a first lien on the real estate serves as collateral to secure the loan . residential real estate loans generally represent first lien mortgages used by the borrower to purchase or refinance a principal residence . for interest-rate risk purposes , the company offers only fully-amortizing , adjustable-rate mortgages . in underwriting first lien mortgages , the company evaluates each borrower 's ability to repay the loan , an independent appraisal of the value of the property , and other relevant factors . the company does not offer riskier mortgage products , such as non-amortizing “ interest-only ” mortgages and “ negative amortization ” mortgages . for loans secured by real estate , the bank requires title insurance to insure the status of its lien and each borrower is obligated to insure the real estate collateral , naming the company as loss payee , in an amount sufficient to repay the principal amount outstanding in the event of a property casualty loss . - 33 - consumer installment and other loans are predominantly comprised of indirect automobile loans with underwriting based on credit history and scores , personal income , debt service capacity , and collateral values . for management purposes , the company segregates its loan portfolio into three segments . loans originated by the company following its loan underwriting policies and procedures are separated from loans purchased from the fdic . loan volumes have declined due to problem loan workout activities , particularly with purchased loans , and reduced volumes of loan originations . in management 's opinion , current levels of competitive loan pricing do not provide adequate forward earnings potential . as a result , the company has not currently taken an aggressive posture relative to loan portfolio growth . the following table shows the composition of the loan portfolio of the company by type of loan and type of borrower , on the dates indicated : loan portfolio replace_table_token_22_th the following table shows the maturity distribution and interest rate sensitivity of commercial , commercial real estate , and construction loans at december 31 , 2016. balances exclude residential real estate loans and consumer loans totaling $ 453.3 million . these types of loans are typically paid in monthly installments over a number of years . loan maturity distribution replace_table_token_23_th commitments and letters of credit the company issues formal commitments on lines of credit to well-established and financially responsible commercial enterprises . such commitments can be either secured or unsecured and are typically in the form of revolving lines of credit for seasonal working capital needs . occasionally , such commitments are in the form of letters of credit to facilitate the customers ' particular business transactions . commitment fees are generally charged for commitments and letters of credit . commitments on lines of credit and letters of credit typically mature within one year . for further information , see the accompanying notes to the consolidated financial statements . loan portfolio credit risk the company extends loans to commercial and consumer customers which expose the company to the risk borrowers will default , causing loan losses . the company 's lending activities are exposed to various qualitative risks .

selling , general and administrative our selling , general and administrative ( “ sg & a ” ) expenses primarily consist of personnel-related expenses , including salaries , bonuses , fringe benefits and stock-based compensation , warehousing and distribution costs , depreciation of property and equipment , amortization of retail product displays and amortization of intangible assets . see “ critical accounting policies and estimates—stock-based compensation ” below for more detail regarding stock-based compensation . in the near term , we expect to continue to invest in our growth initiatives , including investments in the e.l.f . brand and infrastructure . over time , we expect our sg & a expenses to grow at a slower rate than our net sales growth as we leverage our past investments , including those made in 2015 and 2016 to support the reporting and compliance requirements associated with being a public company . interest expense , net interest expense primarily consists of cash interest and fees on our outstanding indebtedness . see “ financial condition , liquidity and capital resources ” below and a description of our indebtedness in note 8 to the notes to consolidated financial statements in item 15 “ exhibits , financial statement schedules ” . other income ( expense ) , net our purchases are largely in chinese renminbi ( “ rmb ” ) , and , as such , we are exposed to periodic fluctuations in that currency . while we do not have an active hedging program , we had a number of legacy exchange rate forward contracts that matured during the year ended december 31 , 2016. we did not apply hedge accounting , and therefore the periodic impact of these legacy hedging activities was calculated on a mark-to-market basis . other income ( expense ) , net is primarily a result of changes in the notional value of exchange rate forward contracts outstanding in prior periods , as well as fluctuations in the exchange rate in the rmb to the u.s. dollar . income tax benefit ( provision ) the provision for income taxes represents federal , foreign , state and local income taxes . the effective rate differs from statutory rates due to the effect of state and local income taxes , tax rates in foreign jurisdictions and certain permanent tax adjustments . our effective tax rate will change from quarter to quarter based on recurring and nonrecurring factors including , but not limited to , the geographical mix of earnings , enacted tax legislation , state and local income taxes , the impact of permanent tax adjustments , tax audit settlements and the interaction of various tax strategies . on december 22 , 2017 , the 2017 tax act was signed into law making significant changes to the internal revenue code of 1986 , as amended . changes included , but were not limited to , a reduction of the u.s. corporate tax rate from 35 % to 21 % effective january 1 , 2018. the 2017 tax act also imposed a one-time transition tax on previously deferred foreign earnings . as of december 31 , 2017 , we completed our accounting for the tax effects of the 2017 tax act . net income ( loss ) our net income ( loss ) for future periods will be affected by the various factors described above . seasonality our results of operations are subject to seasonal fluctuations , with net sales in the third and fourth calendar quarters typically being higher than in the first and second calendar quarters . the higher net sales in our third and fourth calendar quarters are largely attributable to the increased levels of purchasing by retailers for the holiday season , and adverse events that occur during the third or fourth calendar quarter could have a disproportionate effect on our results of operations for the entire fiscal year . as a result of higher sales during the third and fourth calendar quarters , we are required to make investments in working capital during the second and third quarters of the fiscal year . fluctuations throughout the year are also driven by the timing of product restocking or rearrangement by our major customers as well as our expansion into new customers . because a limited number of our retail customers account for a large percentage of our net sales , a change in the order pattern of one or more of our large retail customers could cause a significant fluctuation of our quarterly results or reduce our liquidity . 39 business trends tariffs recent tariffs have impacted certain products that we import from china which , without mitigation , will increase our cost of goods and may lower our gross profit and gross margin in future periods . we are currently evaluating various initiatives , including but not limited to , negotiating lower prices with our suppliers and selectively increasing prices on certain products , to mitigate the impact of the tariffs on our results of operations . in addition , any favorable movements in foreign exchange rates may reduce the impact of the tariffs . we can not provide any assurances that these mitigation initiatives will be successful . based on the timing of product imports relative to the enactment date , these tariffs contributed to an increase in inventory as of december 31 , 2018 but did not have a significant impact on gross profit in the year ended december 31 , 2018. e.l.f store closing on february 26 , 2019 , the company announced that it will exit the stand-alone e.l.f . retail store business . as part of the e.l.f . store closing , the company will close all 22 of its e.l.f . stores on february 26 , 2019 and implement a workforce reduction of its employees that manage and operate the e.l.f . stores . story_separator_special_tag revenue recognition we recognize revenue when control of promised goods or services is transferred to a customer in an amount that reflects the consideration that we expect to receive in exchange for those goods or services . control of the substantial majority of the products that we sell will be transferred at a point in time . factors that determine the specific point in time a customer obtains control and a performance obligation is satisfied are when we have a present right to payment for the goods , whether the customer has physical possession and title to the goods , and whether significant risks and rewards of ownership have transferred . delivery is typically considered to have occurred at the time the title and risk of loss passes to the customer . in the normal course of business , we offer various incentives to customers such as sales discounts , markdown support and other incentives and allowances , which give rise to variable consideration . the amount of variable consideration is estimated at the time of sale based on either the expected value method or the most likely amount , depending on the nature of the variability . we regularly review and revise , when deemed necessary , our estimates of variable consideration based on both customer-specific expectations as well as historical rates of realization . a provision for unclaimed customer incentives and allowances is included on the consolidated balance sheet , net against accounts receivable . impairment of long-lived assets , including goodwill and intangible assets we assess potential impairments to our long-lived assets , which include property and equipment , retail product displays , and amortizable intangible assets , whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable . recoverability of an asset is measured by a comparison of the carrying amount of an asset group to the estimated undiscounted future cash flows expected to be generated by the asset . if the carrying amount of the asset group exceeds its estimated undiscounted future cash flows , an impairment charge is recognized as the amount by which the carrying amount of the asset exceeds the fair value of the asset . we recorded an impairment charge of $ 0.2 million in the year ended december 31 , 2017 related to specific assets that were disposed . there were no impairment charges recorded on long-lived assets during the years ended december 31 , 2018 or 2016 . we evaluate our indefinite-lived intangible asset to determine whether current events and circumstances continue to support an indefinite useful life . in addition , our indefinite-lived intangible asset is tested for impairment annually . the indefinite-lived intangible asset impairment test consists of a comparison of the fair value of each asset with its carrying value , with any excess of carrying value over fair value being recognized as an impairment loss . we are also permitted to make a qualitative assessment of whether it is more likely than not that an indefinite-lived intangible asset 's fair value is less than its carrying value prior to applying the quantitative assessment . if based on our qualitative assessment it is more likely than not that the carrying value of the asset is less than its fair value , then a quantitative assessment may be required . the goodwill impairment test consists of a comparison of each reporting unit 's fair value to its carrying value . the fair value of a reporting unit is an estimate of the amount for which the unit as a whole could be sold in a current transaction between willing parties . if the carrying value of a reporting unit exceeds its fair value , goodwill is written down to its implied fair value . we are also permitted to make a qualitative assessment of whether it is more likely than not that the fair 46 value of a reporting unit is less than its carrying value prior to applying the quantitative assessment . if based on our qualitative assessment it is more likely than not that the carrying value of the reporting unit is less than its fair value , then a quantitative assessment may be required . we have identified a single reporting unit for purposes of impairment testing . we have selected october 1 as the date on which to perform our annual impairment tests . we also test for impairment whenever events or circumstances indicate that the fair value of goodwill or indefinite-lived intangible assets has been impaired . no impairment of goodwill or our indefinite-lived intangible asset was recorded during the years ended december 31 , 2018 , 2017 or 2016 . stock-based compensation stock-based compensation cost is measured at grant date , based on the fair value of the award , and is recognized on a straight-line basis over the requisite service period for all awards that vest . we estimate the fair value of employee stock-based payment awards subject to only a service condition on the date of grant using the black-scholes valuation model . the black-scholes model requires the use of highly subjective and complex assumptions , including the option 's expected term and the price volatility of the underlying stock . we estimate the fair value of employee stock-based payment awards subject to market conditions on the date of grant using a monte carlo simulation model . forfeitures were previously estimated at the time of grant and revised , if necessary , in subsequent periods if actual forfeitures differed from those estimates . we early adopted accounting standards update ( “ asu ” ) 2016-09 , improvements to employee share-based payment accounting and , effective january 1 , 2016 , we now account for forfeitures as they occur . we recorded a cumulative-effect adjustment to retained earnings , which was not material , upon early adoption . we recognize compensation expense for awards with only a service condition on a straight-line basis over

cash used in investing activities for the year ended december 31 , 2018 , net cash used in investing activities was $ 8.9 million , compared to $ 10.4 million for the year ended december 31 , 2017 . the decrease was primarily attributable to a $ 2.9 million investment in a social media analytics company in the period ended december 31 , 2017 . this was partially offset by an increase in purchases of property and equipment including the implementation costs of a new e-commerce platform . for the year ended december 31 , 2017 , net cash used in investing activities was $ 10.4 million , compared to $ 9.1 million for the year ended december 31 , 2016. the increase was primarily attributable to the investment in the social media analytics company referenced above , partially offset by lower purchases of property and equipment . for the year ended december 31 , 2016 , net cash used in investing activities was $ 9.1 million , consisting primarily of purchases of property and equipment related to the build-out of new e.l.f . stores that opened in 2016 , as well as fixtures to support new distribution at national retailers . cash provided by ( used in ) financing activities for the year ended december 31 , 2018 , net cash used in financing activities was $ 5.6 million , primarily driven by $ 8.3 million in mandatory principal payments under our term loan facility ( as defined under the heading “ description of indebtedness ” ) . this was partially offset by $ 3.2 million of proceeds from the exercise of options to purchase common stock . for the year ended december 31 , 2017 , net cash used in financing activities was $ 7.2 million , primarily driven by $ 8.3 million in mandatory principal payments under our term loan facility ( as defined under the heading “ description of indebtedness ” ) . this was partially offset by $ 2.0 million of proceeds from the exercise of options to purchase common 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. ```cash used in investing activities for the year ended december 31 , 2018 , net cash used in investing activities was $ 8.9 million , compared to $ 10.4 million for the year ended december 31 , 2017 . the decrease was primarily attributable to a $ 2.9 million investment in a social media analytics company in the period ended december 31 , 2017 . this was partially offset by an increase in purchases of property and equipment including the implementation costs of a new e-commerce platform . for the year ended december 31 , 2017 , net cash used in investing activities was $ 10.4 million , compared to $ 9.1 million for the year ended december 31 , 2016. the increase was primarily attributable to the investment in the social media analytics company referenced above , partially offset by lower purchases of property and equipment . for the year ended december 31 , 2016 , net cash used in investing activities was $ 9.1 million , consisting primarily of purchases of property and equipment related to the build-out of new e.l.f . stores that opened in 2016 , as well as fixtures to support new distribution at national retailers . cash provided by ( used in ) financing activities for the year ended december 31 , 2018 , net cash used in financing activities was $ 5.6 million , primarily driven by $ 8.3 million in mandatory principal payments under our term loan facility ( as defined under the heading “ description of indebtedness ” ) . this was partially offset by $ 3.2 million of proceeds from the exercise of options to purchase common stock . for the year ended december 31 , 2017 , net cash used in financing activities was $ 7.2 million , primarily driven by $ 8.3 million in mandatory principal payments under our term loan facility ( as defined under the heading “ description of indebtedness ” ) . this was partially offset by $ 2.0 million of proceeds from the exercise of options to purchase common stock . ``` Suspicious Activity Report : selling , general and administrative our selling , general and administrative ( “ sg & a ” ) expenses primarily consist of personnel-related expenses , including salaries , bonuses , fringe benefits and stock-based compensation , warehousing and distribution costs , depreciation of property and equipment , amortization of retail product displays and amortization of intangible assets . see “ critical accounting policies and estimates—stock-based compensation ” below for more detail regarding stock-based compensation . in the near term , we expect to continue to invest in our growth initiatives , including investments in the e.l.f . brand and infrastructure . over time , we expect our sg & a expenses to grow at a slower rate than our net sales growth as we leverage our past investments , including those made in 2015 and 2016 to support the reporting and compliance requirements associated with being a public company . interest expense , net interest expense primarily consists of cash interest and fees on our outstanding indebtedness . see “ financial condition , liquidity and capital resources ” below and a description of our indebtedness in note 8 to the notes to consolidated financial statements in item 15 “ exhibits , financial statement schedules ” . other income ( expense ) , net our purchases are largely in chinese renminbi ( “ rmb ” ) , and , as such , we are exposed to periodic fluctuations in that currency . while we do not have an active hedging program , we had a number of legacy exchange rate forward contracts that matured during the year ended december 31 , 2016. we did not apply hedge accounting , and therefore the periodic impact of these legacy hedging activities was calculated on a mark-to-market basis . other income ( expense ) , net is primarily a result of changes in the notional value of exchange rate forward contracts outstanding in prior periods , as well as fluctuations in the exchange rate in the rmb to the u.s. dollar . income tax benefit ( provision ) the provision for income taxes represents federal , foreign , state and local income taxes . the effective rate differs from statutory rates due to the effect of state and local income taxes , tax rates in foreign jurisdictions and certain permanent tax adjustments . our effective tax rate will change from quarter to quarter based on recurring and nonrecurring factors including , but not limited to , the geographical mix of earnings , enacted tax legislation , state and local income taxes , the impact of permanent tax adjustments , tax audit settlements and the interaction of various tax strategies . on december 22 , 2017 , the 2017 tax act was signed into law making significant changes to the internal revenue code of 1986 , as amended . changes included , but were not limited to , a reduction of the u.s. corporate tax rate from 35 % to 21 % effective january 1 , 2018. the 2017 tax act also imposed a one-time transition tax on previously deferred foreign earnings . as of december 31 , 2017 , we completed our accounting for the tax effects of the 2017 tax act . net income ( loss ) our net income ( loss ) for future periods will be affected by the various factors described above . seasonality our results of operations are subject to seasonal fluctuations , with net sales in the third and fourth calendar quarters typically being higher than in the first and second calendar quarters . the higher net sales in our third and fourth calendar quarters are largely attributable to the increased levels of purchasing by retailers for the holiday season , and adverse events that occur during the third or fourth calendar quarter could have a disproportionate effect on our results of operations for the entire fiscal year . as a result of higher sales during the third and fourth calendar quarters , we are required to make investments in working capital during the second and third quarters of the fiscal year . fluctuations throughout the year are also driven by the timing of product restocking or rearrangement by our major customers as well as our expansion into new customers . because a limited number of our retail customers account for a large percentage of our net sales , a change in the order pattern of one or more of our large retail customers could cause a significant fluctuation of our quarterly results or reduce our liquidity . 39 business trends tariffs recent tariffs have impacted certain products that we import from china which , without mitigation , will increase our cost of goods and may lower our gross profit and gross margin in future periods . we are currently evaluating various initiatives , including but not limited to , negotiating lower prices with our suppliers and selectively increasing prices on certain products , to mitigate the impact of the tariffs on our results of operations . in addition , any favorable movements in foreign exchange rates may reduce the impact of the tariffs . we can not provide any assurances that these mitigation initiatives will be successful . based on the timing of product imports relative to the enactment date , these tariffs contributed to an increase in inventory as of december 31 , 2018 but did not have a significant impact on gross profit in the year ended december 31 , 2018. e.l.f store closing on february 26 , 2019 , the company announced that it will exit the stand-alone e.l.f . retail store business . as part of the e.l.f . store closing , the company will close all 22 of its e.l.f . stores on february 26 , 2019 and implement a workforce reduction of its employees that manage and operate the e.l.f . stores . story_separator_special_tag revenue recognition we recognize revenue when control of promised goods or services is transferred to a customer in an amount that reflects the consideration that we expect to receive in exchange for those goods or services . control of the substantial majority of the products that we sell will be transferred at a point in time . factors that determine the specific point in time a customer obtains control and a performance obligation is satisfied are when we have a present right to payment for the goods , whether the customer has physical possession and title to the goods , and whether significant risks and rewards of ownership have transferred . delivery is typically considered to have occurred at the time the title and risk of loss passes to the customer . in the normal course of business , we offer various incentives to customers such as sales discounts , markdown support and other incentives and allowances , which give rise to variable consideration . the amount of variable consideration is estimated at the time of sale based on either the expected value method or the most likely amount , depending on the nature of the variability . we regularly review and revise , when deemed necessary , our estimates of variable consideration based on both customer-specific expectations as well as historical rates of realization . a provision for unclaimed customer incentives and allowances is included on the consolidated balance sheet , net against accounts receivable . impairment of long-lived assets , including goodwill and intangible assets we assess potential impairments to our long-lived assets , which include property and equipment , retail product displays , and amortizable intangible assets , whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable . recoverability of an asset is measured by a comparison of the carrying amount of an asset group to the estimated undiscounted future cash flows expected to be generated by the asset . if the carrying amount of the asset group exceeds its estimated undiscounted future cash flows , an impairment charge is recognized as the amount by which the carrying amount of the asset exceeds the fair value of the asset . we recorded an impairment charge of $ 0.2 million in the year ended december 31 , 2017 related to specific assets that were disposed . there were no impairment charges recorded on long-lived assets during the years ended december 31 , 2018 or 2016 . we evaluate our indefinite-lived intangible asset to determine whether current events and circumstances continue to support an indefinite useful life . in addition , our indefinite-lived intangible asset is tested for impairment annually . the indefinite-lived intangible asset impairment test consists of a comparison of the fair value of each asset with its carrying value , with any excess of carrying value over fair value being recognized as an impairment loss . we are also permitted to make a qualitative assessment of whether it is more likely than not that an indefinite-lived intangible asset 's fair value is less than its carrying value prior to applying the quantitative assessment . if based on our qualitative assessment it is more likely than not that the carrying value of the asset is less than its fair value , then a quantitative assessment may be required . the goodwill impairment test consists of a comparison of each reporting unit 's fair value to its carrying value . the fair value of a reporting unit is an estimate of the amount for which the unit as a whole could be sold in a current transaction between willing parties . if the carrying value of a reporting unit exceeds its fair value , goodwill is written down to its implied fair value . we are also permitted to make a qualitative assessment of whether it is more likely than not that the fair 46 value of a reporting unit is less than its carrying value prior to applying the quantitative assessment . if based on our qualitative assessment it is more likely than not that the carrying value of the reporting unit is less than its fair value , then a quantitative assessment may be required . we have identified a single reporting unit for purposes of impairment testing . we have selected october 1 as the date on which to perform our annual impairment tests . we also test for impairment whenever events or circumstances indicate that the fair value of goodwill or indefinite-lived intangible assets has been impaired . no impairment of goodwill or our indefinite-lived intangible asset was recorded during the years ended december 31 , 2018 , 2017 or 2016 . stock-based compensation stock-based compensation cost is measured at grant date , based on the fair value of the award , and is recognized on a straight-line basis over the requisite service period for all awards that vest . we estimate the fair value of employee stock-based payment awards subject to only a service condition on the date of grant using the black-scholes valuation model . the black-scholes model requires the use of highly subjective and complex assumptions , including the option 's expected term and the price volatility of the underlying stock . we estimate the fair value of employee stock-based payment awards subject to market conditions on the date of grant using a monte carlo simulation model . forfeitures were previously estimated at the time of grant and revised , if necessary , in subsequent periods if actual forfeitures differed from those estimates . we early adopted accounting standards update ( “ asu ” ) 2016-09 , improvements to employee share-based payment accounting and , effective january 1 , 2016 , we now account for forfeitures as they occur . we recorded a cumulative-effect adjustment to retained earnings , which was not material , upon early adoption . we recognize compensation expense for awards with only a service condition on a straight-line basis over

these subsidiaries helped us to expand our core business and broaden our presence in the accessory and oem markets . our acquisitions of klipsch and invision have provided the opportunity to enter the manufacturing arena . our intention is to continue to pursue business opportunities which will allow us to further expand our business model while leveraging overhead and exploring specialized niche markets in the electronics industry . although we believe our product groups have expanding market opportunities , there are certain levels of volatility related to domestic and international markets , new car sales , increased competition by manufacturers , private labels , technological advancements , discretionary consumer spending and general economic conditions . also , all of our products are subject to price fluctuations which could affect the carrying value of inventories and gross margins in the future . acquisitions we have acquired and integrated several acquisitions which are outlined in the acquisitions section of part i and presented in detail in note 2 . net sales growth net sales over a five-year period have increased 19.6 % from $ 591,355 for the year ended february 29 , 2008 to $ 707,062 for the year ended february 29 , 2012 . during this period , our sales were impacted by the following items : the introduction of new products and lines such as digital antennas and mobile multi-media devices , acquisition of klipsch 's high-end speaker business , 20 acquisition of invision 's mobile entertainment business , acquisition of schwaiger 's accessory business , acquisition of thomson 's audio/video business , acquisition of technuity 's accessory business , acquisition of incaar 's oem business , acquisition of oehlbach 's accessory business partially offset by : the discontinuance of various high volume/low margin product lines such as navigation , gmrs radios and flat-panel tv 's , volatility in core mobile , consumer and accessories sales due to increased competition , lower selling prices and the decline in the national and global economy . critical accounting policies and estimates general our consolidated financial statements are prepared in conformity with accounting principles generally accepted in the united states of america . the preparation of these financial statements requires us to make certain estimates , judgments and assumptions that we believe are reasonable based upon the information available . these estimates and assumptions can be subjective and complex and may affect the reported amounts of assets and liabilities , revenues and expenses reported in those financial statements . as a result , actual results could differ from such estimates and assumptions . the significant accounting policies and estimates which we believe are the most critical in fully understanding and evaluating the reported consolidated financial results include the following : revenue recognition we recognize revenue from product sales at the time of passage of title and risk of loss to the customer either at fob shipping point or fob destination , based upon terms established with the customer . any customer acceptance provisions , which are related to product testing , are satisfied prior to revenue recognition . we have no further obligations subsequent to revenue recognition except for returns of product from customers . we do accept returns of products , if properly requested , authorized and approved . we continuously monitor and track such product returns and record the provision for the estimated amount of such future returns at point of sale , based on historical experience and any notification we receive of pending returns . sales incentives we offer sales incentives to our customers in the form of ( 1 ) co-operative advertising allowances ; ( 2 ) market development funds ; ( 3 ) volume incentive rebates ; and ( 4 ) other trade allowances . we account for sales incentives in accordance with asc 605-50 “ customer payments and incentives ” ( “ asc 605-50 ” ) . except for other trade allowances , all sales incentives require the customer to purchase our products during a specified period of time . all sales incentives require customers to claim the sales incentive within a certain time period ( referred to as the `` claim period `` ) and claims are settled either by the customer claiming a deduction against an outstanding account receivable or by the customer requesting a check . all costs associated with sales incentives are classified as a reduction of net sales , and the following is a summary of the various sales incentive programs : co-operative advertising allowances are offered to customers as a reimbursement towards their costs for print or media advertising in which our product is featured on its own or in conjunction with other companies ' products . the amount offered is either a fixed amount or is based upon a fixed percentage of sales revenue or fixed amount per unit sold to the customer during a specified time period . market development funds are offered to customers in connection with new product launches or entrance into new markets . the amount offered for new product launches is based upon a fixed amount or fixed percentage of our sales revenue to the customer or a fixed amount per unit sold to the customer during a specified time period . we accrue the cost of co-operative advertising allowances and market development funds at the latter of when the customer purchases our products or when the sales incentive is offered to the customer . volume incentive rebates offered to customers require that minimum quantities of product be purchased during a specified period of time . the amount offered is either based upon a fixed percentage of our sales revenue to the customer or a fixed amount per unit sold to the customer . we make an estimate of the ultimate amount of the rebate customers will earn based upon past history 21 with the customer and other facts and circumstances . story_separator_special_tag this was partially offset by a decline in flo tv sales due to qualcomm 's withdrawal from the direct tv market ; a decline in satellite radio sales as a result of streamlined sku 's ; product shortfalls as a result of a transition to new products and vendors in the portable dvd market ; slower sales in our audio line and consumer good products including camcorders , clock radios and voice recorders . accessories sales decreased $ 29,169 . this group was impacted by slower retail sales for products utilizing our accessory products at the retail level such as digital cables and antennas . the group has added a more diverse group of customers , however , the general economy has had an impact on sales . these declines were partially offset by the acquisition of schwaiger which was present for all of fiscal 2011. sales incentive expenses were $ 40,009 , $ 26,279 and $ 27,070 for fiscal 2012 , 2011 and 2010 , respectively , which included reversals for unclaimed and unearned sales incentives of $ 3,662 , $ 1,725 and $ 2,559 , respectively . the increase in sales incentive expenses and reversals in fiscal 2012 is a result of the acquisition of klipsch and inclusion of the subsidiary 's business in our results of operations for the full fiscal year ended february 29 , 2012. we believe the reversal of unearned and earned but unclaimed sales incentives upon the expiration of the claim period is a disciplined , rational , consistent and systematic method of reversing unearned and earned but unclaimed sales incentives . these sales incentive programs are expected to continue and will either increase or decrease based upon competition and customer demands . gross profit replace_table_token_4_th fiscal 2012 gross margins for fiscal 2012 increased 660 basis points primarily as a result of our acquisition of klipsch , as well as increased sales in mobile related products ; better margins in our existing product lines ; new product introductions ; lower sales in our fulfillment and consumer business , which have typically yielded lower margins ; and a reduction in required inventory provisions and warehouse assembly expenses . fiscal 2011 25 gross margins for fiscal 2011 increased 270 basis points as a result of improved margins throughout our product lines ; a shift in product mix as products moved to oem and security and less dependence on consumer electronics sales ; lower freight and warehousing costs as a result of i ) a logistics reconfiguration for product distribution , ii ) the closing of a public warehouse , and iii ) the renegotiation of an existing public warehouse contract ; and the realization of a full year 's sales from our invision acquisition . operating expenses and operating income / ( loss ) replace_table_token_5_th fiscal 2012 operating expenses increased $ 44,161 in fiscal 2012 as compared to fiscal 2011 . the increase in total operating expenses was due primarily to our recent acquisition of klipsch which accounted for $ 39.2 million of our operating expenses during the year ended february 29 , 2012 , as well as an increase in legal fees to defend a patent suit , compensation expense as a result of performance related targets and acquisition costs incurred during the fourth quarter of fiscal 2012 related to the purchase of hirschmann on march 14 , 2012. these increases were partially offset by reductions in depreciation expense , headcount reduction in select groups and a benefit recorded related to a put option . fiscal 2011 operating expenses increased $ 11,929 in fiscal 2011 as compared to fiscal 2010 primarily due to our invision acquisition which added approximately $ 8,300 in overhead year over year ; an increase in professional fees of approximately $ 3,000 , as a result of i ) approximately $ 990 in klipsch acquisition fees , ii ) increased legal fees as a result of defense of royalty rights and infringements , and iii ) increased audit fees as a result of company expansion ; and the return of temporary salary reductions to all employees at the vice president level and above . the company also experienced increases in advertising and trade show expenses in our international operations of approximately $ 900 , and $ 830 in higher bad debt provisions primarily as a result of the finalization of a bankruptcy settlement and increased reserves for a certain customer . other income/ ( expense ) replace_table_token_6_th fiscal 2012 other income ( expense ) decreased $ 8,461 to other expense , net , of $ 4,982 for the year ended february 29 , 2012 compared to other income , net , of $ 3,479 for the year ended february 28 , 2011 . the decrease is primarily due to a charge recorded during fiscal 2012 in connection with a breach of license agreement suit of approximately $ 3,600 , a contingent consideration adjustment of approximately $ 2,000 , the other than temporary impairment of an investment in marketable securities of approximately $ 1,200 , 26 and the net foreign exchange gain in u. s. dollar denominated assets and liabilities in venezuela of $ 1,400 recorded in fiscal 2011 , offset by gains of approximately $ 1,600 in forward exchange contracts in the fourth quarter of fiscal 2012 related to the hirschmann acquisition . interest and bank charges represent expenses for bank obligations of voxx international corporation and audiovox germany , interest for a capital lease , and amortization of a debt discount on our credit facility . the increase in these expenses for the year ended february 29 , 2012 , is due primarily to interest expense , fees and amortization of deferred financing costs related to the credit facility entered into on march 1 , 2011 primarily to fund our klipsch acquisition . equity in income of equity investees increased due to increased equity income of audiovox specialized applications , inc. ( asa ) as a result of improved

cash of $ 59,584 for fiscal 2012 from : i ) net income generated from operations of $ 25,649 , and depreciation and amortization of $ 10,295 , and ; ii ) increased accounts payable , accrued expenses , accrued sales incentives and other due to increases in net sales ; partially offset by increased accounts receivable , due primarily to the acquisition of klipsch . investing activities used cash of $ 179,410 during fiscal 2012 , primarily due to the acquisition of klipsch on march 1 , 2011 , as well as due to capital expenditures . financing activities provided cash of $ 34,699 during fiscal 2012 , primarily from cash draws from the company 's credit facility to finance the acquisition of klipsch , offset by the repayment of bank obligations . as of february 29 , 2012 , we had a revolving credit facility ( `` the credit facility '' ) with an aggregated committed availability of up to $ 175 million . the company could borrow under the credit facility as needed , provided the aggregate amounts outstanding did not exceed 85 % of certain eligible accounts receivable , plus 65 % of certain eligible inventory balances less the outstanding 29 amounts for letters of credit usage , if applicable . this amount could be further reduced by the aggregated amounts of reserves that may be required at the reasonable discretion of wells fargo in its role as the administrative agent . generally , the company could designate specific borrowings under the credit facility as either base rate loans or libor rate loans , except that swing loans could only be designated as base rate loans . loans designated as libor rate loans bear interest at a rate equal to the then applicable libor rate plus a range of 2.25 - 2.75 % based on excess availability in the borrowing base . loans designated as base rate loans bear interest at a rate equal to the base rate plus an applicable margin ranging from 1.25 - 1.75 % based on excess availability in the borrowing base .

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 of $ 59,584 for fiscal 2012 from : i ) net income generated from operations of $ 25,649 , and depreciation and amortization of $ 10,295 , and ; ii ) increased accounts payable , accrued expenses , accrued sales incentives and other due to increases in net sales ; partially offset by increased accounts receivable , due primarily to the acquisition of klipsch . investing activities used cash of $ 179,410 during fiscal 2012 , primarily due to the acquisition of klipsch on march 1 , 2011 , as well as due to capital expenditures . financing activities provided cash of $ 34,699 during fiscal 2012 , primarily from cash draws from the company 's credit facility to finance the acquisition of klipsch , offset by the repayment of bank obligations . as of february 29 , 2012 , we had a revolving credit facility ( `` the credit facility '' ) with an aggregated committed availability of up to $ 175 million . the company could borrow under the credit facility as needed , provided the aggregate amounts outstanding did not exceed 85 % of certain eligible accounts receivable , plus 65 % of certain eligible inventory balances less the outstanding 29 amounts for letters of credit usage , if applicable . this amount could be further reduced by the aggregated amounts of reserves that may be required at the reasonable discretion of wells fargo in its role as the administrative agent . generally , the company could designate specific borrowings under the credit facility as either base rate loans or libor rate loans , except that swing loans could only be designated as base rate loans . loans designated as libor rate loans bear interest at a rate equal to the then applicable libor rate plus a range of 2.25 - 2.75 % based on excess availability in the borrowing base . loans designated as base rate loans bear interest at a rate equal to the base rate plus an applicable margin ranging from 1.25 - 1.75 % based on excess availability in the borrowing base . ``` Suspicious Activity Report : these subsidiaries helped us to expand our core business and broaden our presence in the accessory and oem markets . our acquisitions of klipsch and invision have provided the opportunity to enter the manufacturing arena . our intention is to continue to pursue business opportunities which will allow us to further expand our business model while leveraging overhead and exploring specialized niche markets in the electronics industry . although we believe our product groups have expanding market opportunities , there are certain levels of volatility related to domestic and international markets , new car sales , increased competition by manufacturers , private labels , technological advancements , discretionary consumer spending and general economic conditions . also , all of our products are subject to price fluctuations which could affect the carrying value of inventories and gross margins in the future . acquisitions we have acquired and integrated several acquisitions which are outlined in the acquisitions section of part i and presented in detail in note 2 . net sales growth net sales over a five-year period have increased 19.6 % from $ 591,355 for the year ended february 29 , 2008 to $ 707,062 for the year ended february 29 , 2012 . during this period , our sales were impacted by the following items : the introduction of new products and lines such as digital antennas and mobile multi-media devices , acquisition of klipsch 's high-end speaker business , 20 acquisition of invision 's mobile entertainment business , acquisition of schwaiger 's accessory business , acquisition of thomson 's audio/video business , acquisition of technuity 's accessory business , acquisition of incaar 's oem business , acquisition of oehlbach 's accessory business partially offset by : the discontinuance of various high volume/low margin product lines such as navigation , gmrs radios and flat-panel tv 's , volatility in core mobile , consumer and accessories sales due to increased competition , lower selling prices and the decline in the national and global economy . critical accounting policies and estimates general our consolidated financial statements are prepared in conformity with accounting principles generally accepted in the united states of america . the preparation of these financial statements requires us to make certain estimates , judgments and assumptions that we believe are reasonable based upon the information available . these estimates and assumptions can be subjective and complex and may affect the reported amounts of assets and liabilities , revenues and expenses reported in those financial statements . as a result , actual results could differ from such estimates and assumptions . the significant accounting policies and estimates which we believe are the most critical in fully understanding and evaluating the reported consolidated financial results include the following : revenue recognition we recognize revenue from product sales at the time of passage of title and risk of loss to the customer either at fob shipping point or fob destination , based upon terms established with the customer . any customer acceptance provisions , which are related to product testing , are satisfied prior to revenue recognition . we have no further obligations subsequent to revenue recognition except for returns of product from customers . we do accept returns of products , if properly requested , authorized and approved . we continuously monitor and track such product returns and record the provision for the estimated amount of such future returns at point of sale , based on historical experience and any notification we receive of pending returns . sales incentives we offer sales incentives to our customers in the form of ( 1 ) co-operative advertising allowances ; ( 2 ) market development funds ; ( 3 ) volume incentive rebates ; and ( 4 ) other trade allowances . we account for sales incentives in accordance with asc 605-50 “ customer payments and incentives ” ( “ asc 605-50 ” ) . except for other trade allowances , all sales incentives require the customer to purchase our products during a specified period of time . all sales incentives require customers to claim the sales incentive within a certain time period ( referred to as the `` claim period `` ) and claims are settled either by the customer claiming a deduction against an outstanding account receivable or by the customer requesting a check . all costs associated with sales incentives are classified as a reduction of net sales , and the following is a summary of the various sales incentive programs : co-operative advertising allowances are offered to customers as a reimbursement towards their costs for print or media advertising in which our product is featured on its own or in conjunction with other companies ' products . the amount offered is either a fixed amount or is based upon a fixed percentage of sales revenue or fixed amount per unit sold to the customer during a specified time period . market development funds are offered to customers in connection with new product launches or entrance into new markets . the amount offered for new product launches is based upon a fixed amount or fixed percentage of our sales revenue to the customer or a fixed amount per unit sold to the customer during a specified time period . we accrue the cost of co-operative advertising allowances and market development funds at the latter of when the customer purchases our products or when the sales incentive is offered to the customer . volume incentive rebates offered to customers require that minimum quantities of product be purchased during a specified period of time . the amount offered is either based upon a fixed percentage of our sales revenue to the customer or a fixed amount per unit sold to the customer . we make an estimate of the ultimate amount of the rebate customers will earn based upon past history 21 with the customer and other facts and circumstances . story_separator_special_tag this was partially offset by a decline in flo tv sales due to qualcomm 's withdrawal from the direct tv market ; a decline in satellite radio sales as a result of streamlined sku 's ; product shortfalls as a result of a transition to new products and vendors in the portable dvd market ; slower sales in our audio line and consumer good products including camcorders , clock radios and voice recorders . accessories sales decreased $ 29,169 . this group was impacted by slower retail sales for products utilizing our accessory products at the retail level such as digital cables and antennas . the group has added a more diverse group of customers , however , the general economy has had an impact on sales . these declines were partially offset by the acquisition of schwaiger which was present for all of fiscal 2011. sales incentive expenses were $ 40,009 , $ 26,279 and $ 27,070 for fiscal 2012 , 2011 and 2010 , respectively , which included reversals for unclaimed and unearned sales incentives of $ 3,662 , $ 1,725 and $ 2,559 , respectively . the increase in sales incentive expenses and reversals in fiscal 2012 is a result of the acquisition of klipsch and inclusion of the subsidiary 's business in our results of operations for the full fiscal year ended february 29 , 2012. we believe the reversal of unearned and earned but unclaimed sales incentives upon the expiration of the claim period is a disciplined , rational , consistent and systematic method of reversing unearned and earned but unclaimed sales incentives . these sales incentive programs are expected to continue and will either increase or decrease based upon competition and customer demands . gross profit replace_table_token_4_th fiscal 2012 gross margins for fiscal 2012 increased 660 basis points primarily as a result of our acquisition of klipsch , as well as increased sales in mobile related products ; better margins in our existing product lines ; new product introductions ; lower sales in our fulfillment and consumer business , which have typically yielded lower margins ; and a reduction in required inventory provisions and warehouse assembly expenses . fiscal 2011 25 gross margins for fiscal 2011 increased 270 basis points as a result of improved margins throughout our product lines ; a shift in product mix as products moved to oem and security and less dependence on consumer electronics sales ; lower freight and warehousing costs as a result of i ) a logistics reconfiguration for product distribution , ii ) the closing of a public warehouse , and iii ) the renegotiation of an existing public warehouse contract ; and the realization of a full year 's sales from our invision acquisition . operating expenses and operating income / ( loss ) replace_table_token_5_th fiscal 2012 operating expenses increased $ 44,161 in fiscal 2012 as compared to fiscal 2011 . the increase in total operating expenses was due primarily to our recent acquisition of klipsch which accounted for $ 39.2 million of our operating expenses during the year ended february 29 , 2012 , as well as an increase in legal fees to defend a patent suit , compensation expense as a result of performance related targets and acquisition costs incurred during the fourth quarter of fiscal 2012 related to the purchase of hirschmann on march 14 , 2012. these increases were partially offset by reductions in depreciation expense , headcount reduction in select groups and a benefit recorded related to a put option . fiscal 2011 operating expenses increased $ 11,929 in fiscal 2011 as compared to fiscal 2010 primarily due to our invision acquisition which added approximately $ 8,300 in overhead year over year ; an increase in professional fees of approximately $ 3,000 , as a result of i ) approximately $ 990 in klipsch acquisition fees , ii ) increased legal fees as a result of defense of royalty rights and infringements , and iii ) increased audit fees as a result of company expansion ; and the return of temporary salary reductions to all employees at the vice president level and above . the company also experienced increases in advertising and trade show expenses in our international operations of approximately $ 900 , and $ 830 in higher bad debt provisions primarily as a result of the finalization of a bankruptcy settlement and increased reserves for a certain customer . other income/ ( expense ) replace_table_token_6_th fiscal 2012 other income ( expense ) decreased $ 8,461 to other expense , net , of $ 4,982 for the year ended february 29 , 2012 compared to other income , net , of $ 3,479 for the year ended february 28 , 2011 . the decrease is primarily due to a charge recorded during fiscal 2012 in connection with a breach of license agreement suit of approximately $ 3,600 , a contingent consideration adjustment of approximately $ 2,000 , the other than temporary impairment of an investment in marketable securities of approximately $ 1,200 , 26 and the net foreign exchange gain in u. s. dollar denominated assets and liabilities in venezuela of $ 1,400 recorded in fiscal 2011 , offset by gains of approximately $ 1,600 in forward exchange contracts in the fourth quarter of fiscal 2012 related to the hirschmann acquisition . interest and bank charges represent expenses for bank obligations of voxx international corporation and audiovox germany , interest for a capital lease , and amortization of a debt discount on our credit facility . the increase in these expenses for the year ended february 29 , 2012 , is due primarily to interest expense , fees and amortization of deferred financing costs related to the credit facility entered into on march 1 , 2011 primarily to fund our klipsch acquisition . equity in income of equity investees increased due to increased equity income of audiovox specialized applications , inc. ( asa ) as a result of improved

the design of the sunrise trial was supported by promising data from our prior phase iib second-line nsclc trial in the same indication , which final data was presented at the 2013 american society of clinical oncology annual meeting . in december 2013 , we initiated the phase iii sunrise trial and patient enrollment is ongoing . in addition , in january 2014 , we announced that bavituximab received fda fast track designation for combination with docetaxel in patients with previously-treated non-squamous nsclc . the phase iii sunrise trial is a randomized , double-blind , placebo-controlled trial evaluating bavituximab plus docetaxel versus docetaxel plus placebo in approximately 600 patients at clinical sites worldwide . the trial is enrolling patients with stage iiib/iv non-squamous nsclc who have progressed after standard front-line treatment . patients are randomized into one of two treatment arms . one treatment arm receives docetaxel ( 75 mg/m 2 ) , up to six 21-day cycles , in combination with bavituximab ( 3 mg/kg ) weekly until progression or toxicity . the other treatment receives docetaxel ( 75 mg/m 2 ) , up to six 21-day cycles , in combination with placebo weekly until progression or toxicity . the primary endpoint of the trial is overall survival . bavituximab in front-line nsclc this investigator-sponsored phase ib trial is designed to assess bavituximab with pemetrexed and carboplatin in up to 25 patients with locally advanced or metastatic nsclc . interim data conducted on a small number of patients showed encouraging response rates with the combination of carboplatin , pemetrexed and bavituximab . patient enrollment is complete and additional data is expected during fiscal year 2015. bavituximab in her2-negative metastatic breast cancer ( mbc ) this investigator-sponsored phase i trial was designed to assess bavituximab combined with paclitaxel in up to 14 patients with her2-negative metastatic breast cancer . interim data presented at asco in june 2013 , reported that , from 13 evaluable patients , 85 % of patients achieved an objective tumor response , including 15 % of patients achieving a complete response measured in accordance with recist criteria . patient enrollment is complete and final data from this study is anticipated during fiscal year 2015. bavituximab in advanced liver cancer this ongoing investigator-sponsored phase i/ii trial is designed to assess bavituximab combined with sorafenib in up to 48 patients with advanced liver cancer ( “ hepatocellular carcinoma ” or “ hcc ” ) . data presented at aacr in april 2012 showed that of the nine patients enrolled in the phase i portion of the study , no dose-limiting toxicities or serious adverse events were observed and the trial is currently enrolling the phase ii part of the study . 43 bavituximab in rectal adenocarcinoma this ongoing investigator-sponsored phase i trial is designed to assess bavituximab in combination with capecitabine and radiation therapy in up to 18 patients with stage ii or iii rectal adenocarcinoma . the primary endpoint is to determine the safety , feasibility and tolerability with a standard platform of capecitabine and radiation therapy . secondary endpoints include overall response rate and histopathological response in patients . this trial continues to enroll and dose patients . bavituximab in advanced melanoma in april 2014 , we announced the opening of an investigator-sponsored phase ib trial designed to assess bavituximab in combination with ipilimumab in up to 24 patients with advanced melanoma . the primary endpoint is to determine safety , feasibility and tolerability . secondary endpoints include measurements of disease control rate and overall survival . this trial is open for enrollment . ps-targeting molecular imaging program ( pgn650 ) in addition to the potential for our ps-targeting antibodies to treat cancer , we believe these antibodies may have broad potential for the imaging and diagnosis of multiple diseases , including cancer . ps-targeting antibodies are able to target diseases that present ps on the surface of distressed cells , which we believe is present in multiple disease settings . in oncology , ps is a molecule usually located inside the membrane of healthy cells , but “ flips ” and becomes exposed on the outside of cells in the tumor microenvironment , creating a specific target for the imaging of multiple solid tumor types . our initial clinical candidate is pgn650 , a first-in-class ps-targeting f ( ab ' ) 2 fully human monoclonal antibody fragment joined to the positron emission tomography ( “ pet ” ) imaging radio-isotope iodine-124 that represents a potential new approach to imaging cancer . in preclinical studies , pgn650 accumulates in tumors and provides exceedingly clear in vivo tumor images . the initial goal for the pgn650 program is to further validate the broad nature of the ps-targeting platform in the clinic . our current pgn650 clinical trial evaluating pgn650 imaging in multiple solid tumor types in up to 12 patients was filed under an exploratory ind with the fda . the primary goal of the trial is to estimate radiation dosimetry in critical and non-critical organs and secondary trial objectives include tumor imaging and safety . results from this study may open the door for multiple applications including the development of antibody drug conjugates , the use of pgn650 to monitor the effectiveness of current standard cancer treatments , and the ability to potentially select patients that may benefit from bavituximab-based treatment . patients receive an imaging dose followed by three pet images . successful results from this trial could support several promising new areas of research in the imaging and diagnostic fields . this trial continues to enroll and dose patients . integrated biomanufacturing subsidiary in addition to our clinical research and development efforts , we operate a wholly-owned ( current good manufacturing practices ( “ cgmp ” ) ) contract manufacturing subsidiary , avid bioservices , inc. ( “ avid ” ) . story_separator_special_tag we recognize revenue when all of the following criteria are met : ( i ) persuasive evidence of an arrangement exists , ( ii ) delivery ( or passage of title ) has occurred or services have been rendered , ( iii ) the seller 's price to the buyer is fixed or determinable , and ( iv ) collectability is reasonably assured . we also comply with the authoritative guidance for revenue recognition regarding arrangements with multiple deliverables . contract manufacturing revenue revenue associated with contract manufacturing services provided by avid is recognized once the service has been rendered and or upon shipment ( or passage of title ) of the product to the customer . on occasion , we recognize revenue on a “ bill-and-hold ” basis in accordance with the authoritative guidance . under “ bill-and-hold ” arrangements , revenue is recognized once the product is complete and ready for shipment , title and risk of loss has passed to the customer , management receives a written request from the customer for “ bill-and-hold ” treatment , the product is segregated from other inventory , and no further performance obligations 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 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 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 . license revenue revenue associated with licensing agreements primarily consists of non-refundable upfront license fees , non-refundable annual license fees and milestone payments . non-refundable upfront license fees received under license agreements , whereby continued performance or future obligations are considered inconsequential to the relevant license technology , are recognized as revenue upon delivery of the technology . if a licensing agreement has multiple elements , we analyze each element of our licensing agreements and consider a variety of factors in determining the appropriate method of revenue recognition of each element . 50 multiple element arrangements . prior to the adoption of accounting standards update ( “ asu ” ) no . 2009-13 on may 1 , 2011 , if a license agreement has multiple element arrangements , we analyze and determine whether the deliverables , which often include performance obligations , can be separated or whether they must be accounted for as a single unit of accounting in accordance with the authoritative guidance . under multiple element arrangements , we recognize revenue for delivered elements only when the delivered element has stand-alone value and we have objective and reliable evidence of fair value for each undelivered element . if the fair value of any undelivered element included in a multiple element arrangement can not be objectively determined , the arrangement would then be accounted for as a single unit of accounting , and revenue is recognized over the estimated period of when the performance obligation ( s ) are performed . in addition , under certain circumstances , when there is objective and reliable evidence of the fair value of the undelivered items in an arrangement , but no such evidence for the delivered items , we utilize the residual method to allocate the consideration received under the arrangement . under the residual method , the amount of consideration allocated to delivered items equals the total arrangement consideration less the aggregate fair value of the undelivered items , and revenue is recognized upon delivery of the undelivered items based on the relative fair value of the undelivered items . for licensing agreements or material modifications of existing licensing agreements entered into after may 1 , 2011 , we follow the provisions of asu no . 2009-13. if a licensing agreement includes multiple elements , we identify which deliverables represent separate units of accounting , and then determine how the arrangement consideration should be allocated among the separate units of accounting , which may require the use of significant judgment . if a licensing agreement includes multiple elements , a delivered item is considered a separate unit of accounting if both of the following criteria are met : 1. the delivered item has value to the licensing partner on a standalone basis based on the consideration of the relevant facts and circumstances for each agreement ; 2. if the arrangement includes a general right of return relative to the delivered item , delivery or performance of the undelivered item is considered probable and substantially in the company 's control . arrangement consideration is allocated at the inception of the agreement to all identified units of accounting based on their relative selling price . the relative selling price for each deliverable is determined using vendor specific objective evidence ( “ vsoe ” ) of selling price or third-party evidence of selling price if vsoe does not exist . if neither vsoe nor third-party evidence of selling price exists , we use our best estimate of the selling price for the deliverable . the amount of allocable arrangement consideration is limited to amounts that are fixed or determinable . the consideration received is allocated among the separate units of accounting , and the applicable revenue recognition criteria are applied to each of the separate units . changes in the allocation of the sales price between delivered and undelivered elements can impact revenue recognition but do not change the total revenue recognized under any agreement . milestone payments . effective may 1 , 2011

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 : 54 replace_table_token_8_th net cash used in operating activities for the year ended april 30 , 2014 was $ 28,254,000 compared to $ 20,926,000 for the year ended april 30 , 2013 , representing an increase of $ 7,328,000. this increase in net cash used in operating activities was due to an increase of $ 4,611,000 in net loss reported for fiscal year 2014 after deducting non-cash operating expenses combined with a net change in operating assets and liabilities of $ 2,717,000. the increase in our fiscal year net loss was primarily due to current year increases in research and development expenses , selling , general and administrative expenses and cost of contract manufacturing , offset by an increase in total revenues and a decrease in loss on early extinguishment of debt . the net change in operating assets and liabilities between fiscal year 2014 and fiscal year 2013 was primarily due to decreases in customer deposits and accrued payroll combined with increase in prepaid expenses and other current assets , which were primarily offset by an increase in accrued clinical trial and related fees . cash used in investing 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 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 : 54 replace_table_token_8_th net cash used in operating activities for the year ended april 30 , 2014 was $ 28,254,000 compared to $ 20,926,000 for the year ended april 30 , 2013 , representing an increase of $ 7,328,000. this increase in net cash used in operating activities was due to an increase of $ 4,611,000 in net loss reported for fiscal year 2014 after deducting non-cash operating expenses combined with a net change in operating assets and liabilities of $ 2,717,000. the increase in our fiscal year net loss was primarily due to current year increases in research and development expenses , selling , general and administrative expenses and cost of contract manufacturing , offset by an increase in total revenues and a decrease in loss on early extinguishment of debt . the net change in operating assets and liabilities between fiscal year 2014 and fiscal year 2013 was primarily due to decreases in customer deposits and accrued payroll combined with increase in prepaid expenses and other current assets , which were primarily offset by an increase in accrued clinical trial and related fees . cash used in investing activities . ``` Suspicious Activity Report : the design of the sunrise trial was supported by promising data from our prior phase iib second-line nsclc trial in the same indication , which final data was presented at the 2013 american society of clinical oncology annual meeting . in december 2013 , we initiated the phase iii sunrise trial and patient enrollment is ongoing . in addition , in january 2014 , we announced that bavituximab received fda fast track designation for combination with docetaxel in patients with previously-treated non-squamous nsclc . the phase iii sunrise trial is a randomized , double-blind , placebo-controlled trial evaluating bavituximab plus docetaxel versus docetaxel plus placebo in approximately 600 patients at clinical sites worldwide . the trial is enrolling patients with stage iiib/iv non-squamous nsclc who have progressed after standard front-line treatment . patients are randomized into one of two treatment arms . one treatment arm receives docetaxel ( 75 mg/m 2 ) , up to six 21-day cycles , in combination with bavituximab ( 3 mg/kg ) weekly until progression or toxicity . the other treatment receives docetaxel ( 75 mg/m 2 ) , up to six 21-day cycles , in combination with placebo weekly until progression or toxicity . the primary endpoint of the trial is overall survival . bavituximab in front-line nsclc this investigator-sponsored phase ib trial is designed to assess bavituximab with pemetrexed and carboplatin in up to 25 patients with locally advanced or metastatic nsclc . interim data conducted on a small number of patients showed encouraging response rates with the combination of carboplatin , pemetrexed and bavituximab . patient enrollment is complete and additional data is expected during fiscal year 2015. bavituximab in her2-negative metastatic breast cancer ( mbc ) this investigator-sponsored phase i trial was designed to assess bavituximab combined with paclitaxel in up to 14 patients with her2-negative metastatic breast cancer . interim data presented at asco in june 2013 , reported that , from 13 evaluable patients , 85 % of patients achieved an objective tumor response , including 15 % of patients achieving a complete response measured in accordance with recist criteria . patient enrollment is complete and final data from this study is anticipated during fiscal year 2015. bavituximab in advanced liver cancer this ongoing investigator-sponsored phase i/ii trial is designed to assess bavituximab combined with sorafenib in up to 48 patients with advanced liver cancer ( “ hepatocellular carcinoma ” or “ hcc ” ) . data presented at aacr in april 2012 showed that of the nine patients enrolled in the phase i portion of the study , no dose-limiting toxicities or serious adverse events were observed and the trial is currently enrolling the phase ii part of the study . 43 bavituximab in rectal adenocarcinoma this ongoing investigator-sponsored phase i trial is designed to assess bavituximab in combination with capecitabine and radiation therapy in up to 18 patients with stage ii or iii rectal adenocarcinoma . the primary endpoint is to determine the safety , feasibility and tolerability with a standard platform of capecitabine and radiation therapy . secondary endpoints include overall response rate and histopathological response in patients . this trial continues to enroll and dose patients . bavituximab in advanced melanoma in april 2014 , we announced the opening of an investigator-sponsored phase ib trial designed to assess bavituximab in combination with ipilimumab in up to 24 patients with advanced melanoma . the primary endpoint is to determine safety , feasibility and tolerability . secondary endpoints include measurements of disease control rate and overall survival . this trial is open for enrollment . ps-targeting molecular imaging program ( pgn650 ) in addition to the potential for our ps-targeting antibodies to treat cancer , we believe these antibodies may have broad potential for the imaging and diagnosis of multiple diseases , including cancer . ps-targeting antibodies are able to target diseases that present ps on the surface of distressed cells , which we believe is present in multiple disease settings . in oncology , ps is a molecule usually located inside the membrane of healthy cells , but “ flips ” and becomes exposed on the outside of cells in the tumor microenvironment , creating a specific target for the imaging of multiple solid tumor types . our initial clinical candidate is pgn650 , a first-in-class ps-targeting f ( ab ' ) 2 fully human monoclonal antibody fragment joined to the positron emission tomography ( “ pet ” ) imaging radio-isotope iodine-124 that represents a potential new approach to imaging cancer . in preclinical studies , pgn650 accumulates in tumors and provides exceedingly clear in vivo tumor images . the initial goal for the pgn650 program is to further validate the broad nature of the ps-targeting platform in the clinic . our current pgn650 clinical trial evaluating pgn650 imaging in multiple solid tumor types in up to 12 patients was filed under an exploratory ind with the fda . the primary goal of the trial is to estimate radiation dosimetry in critical and non-critical organs and secondary trial objectives include tumor imaging and safety . results from this study may open the door for multiple applications including the development of antibody drug conjugates , the use of pgn650 to monitor the effectiveness of current standard cancer treatments , and the ability to potentially select patients that may benefit from bavituximab-based treatment . patients receive an imaging dose followed by three pet images . successful results from this trial could support several promising new areas of research in the imaging and diagnostic fields . this trial continues to enroll and dose patients . integrated biomanufacturing subsidiary in addition to our clinical research and development efforts , we operate a wholly-owned ( current good manufacturing practices ( “ cgmp ” ) ) contract manufacturing subsidiary , avid bioservices , inc. ( “ avid ” ) . story_separator_special_tag we recognize revenue when all of the following criteria are met : ( i ) persuasive evidence of an arrangement exists , ( ii ) delivery ( or passage of title ) has occurred or services have been rendered , ( iii ) the seller 's price to the buyer is fixed or determinable , and ( iv ) collectability is reasonably assured . we also comply with the authoritative guidance for revenue recognition regarding arrangements with multiple deliverables . contract manufacturing revenue revenue associated with contract manufacturing services provided by avid is recognized once the service has been rendered and or upon shipment ( or passage of title ) of the product to the customer . on occasion , we recognize revenue on a “ bill-and-hold ” basis in accordance with the authoritative guidance . under “ bill-and-hold ” arrangements , revenue is recognized once the product is complete and ready for shipment , title and risk of loss has passed to the customer , management receives a written request from the customer for “ bill-and-hold ” treatment , the product is segregated from other inventory , and no further performance obligations 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 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 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 . license revenue revenue associated with licensing agreements primarily consists of non-refundable upfront license fees , non-refundable annual license fees and milestone payments . non-refundable upfront license fees received under license agreements , whereby continued performance or future obligations are considered inconsequential to the relevant license technology , are recognized as revenue upon delivery of the technology . if a licensing agreement has multiple elements , we analyze each element of our licensing agreements and consider a variety of factors in determining the appropriate method of revenue recognition of each element . 50 multiple element arrangements . prior to the adoption of accounting standards update ( “ asu ” ) no . 2009-13 on may 1 , 2011 , if a license agreement has multiple element arrangements , we analyze and determine whether the deliverables , which often include performance obligations , can be separated or whether they must be accounted for as a single unit of accounting in accordance with the authoritative guidance . under multiple element arrangements , we recognize revenue for delivered elements only when the delivered element has stand-alone value and we have objective and reliable evidence of fair value for each undelivered element . if the fair value of any undelivered element included in a multiple element arrangement can not be objectively determined , the arrangement would then be accounted for as a single unit of accounting , and revenue is recognized over the estimated period of when the performance obligation ( s ) are performed . in addition , under certain circumstances , when there is objective and reliable evidence of the fair value of the undelivered items in an arrangement , but no such evidence for the delivered items , we utilize the residual method to allocate the consideration received under the arrangement . under the residual method , the amount of consideration allocated to delivered items equals the total arrangement consideration less the aggregate fair value of the undelivered items , and revenue is recognized upon delivery of the undelivered items based on the relative fair value of the undelivered items . for licensing agreements or material modifications of existing licensing agreements entered into after may 1 , 2011 , we follow the provisions of asu no . 2009-13. if a licensing agreement includes multiple elements , we identify which deliverables represent separate units of accounting , and then determine how the arrangement consideration should be allocated among the separate units of accounting , which may require the use of significant judgment . if a licensing agreement includes multiple elements , a delivered item is considered a separate unit of accounting if both of the following criteria are met : 1. the delivered item has value to the licensing partner on a standalone basis based on the consideration of the relevant facts and circumstances for each agreement ; 2. if the arrangement includes a general right of return relative to the delivered item , delivery or performance of the undelivered item is considered probable and substantially in the company 's control . arrangement consideration is allocated at the inception of the agreement to all identified units of accounting based on their relative selling price . the relative selling price for each deliverable is determined using vendor specific objective evidence ( “ vsoe ” ) of selling price or third-party evidence of selling price if vsoe does not exist . if neither vsoe nor third-party evidence of selling price exists , we use our best estimate of the selling price for the deliverable . the amount of allocable arrangement consideration is limited to amounts that are fixed or determinable . the consideration received is allocated among the separate units of accounting , and the applicable revenue recognition criteria are applied to each of the separate units . changes in the allocation of the sales price between delivered and undelivered elements can impact revenue recognition but do not change the total revenue recognized under any agreement . milestone payments . effective may 1 , 2011

· executed 2,678 leases , renewals and options totaling over 10.0 million square feet in the combined shopping center portfolio . acquisition activity : · acquired 24 shopping center properties , five outparcels and 69 net leased parcels comprising an aggregate 3.1 million square feet of gla , for an aggregate purchase price of $ 634.5 million including the assumption of $ 179.2 million of non-recourse mortgage debt encumbering seven of the properties . disposition activity : · during 2012 , the company monetized non-retail assets of $ 83.0 million and reduced its non-retail book values by $ 114.1 million to $ 398.4 million . · included in the monetization above are the disposition of four properties and one land parcel , in separate transactions , for an aggregate sales price of $ 40.3 million . these transactions resulted in an aggregate net gain of $ 4.8 million , before income taxes . · also included in the monetization above is ( i ) the receipt of $ 24.8 million from payment of mortgage receivables , ( ii ) the company 's receipt of $ 14.6 million in distributions from two preferred equity investments and one joint venture investment and ( iii ) $ 10.4 million in distributions from two cost method investments . · additionally , during 2012 , the company disposed of 59 operating properties , four land parcels and four outparcels , in separate transactions , for an aggregate sales price of $ 443.0 million . these transactions resulted in an aggregate gain of $ 91.5 million and impairment charges of $ 22.5 million , before income taxes and noncontrolling interests . 16 capital activity ( for additional details see liquidity and capital resources below ) : · during 2012 , the company issued 16,000,000 depositary shares of 6.00 % class i cumulative redeemable preferred stock , 9,000,000 depositary shares of 5.50 % class j cumulative redeemable preferred stock and 7,000,000 depositary shares of 5.625 % class k cumulative redeemable preferred stock resulting in aggregate proceeds after expenses of $ 774.1 million to the company . · additionally , during 2012 , the company redeemed all of its outstanding 18,400,000 depositary shares of the company 's 7.75 % class g cumulative redeemable preferred stock and all of its outstanding 7,000,000 depositary shares of the company 's 6.65 % class f cumulative redeemable preferred stock resulting in aggregate payments of $ 635.0 million . · also during 2012 , the company ( i ) repaid the $ 17.0 million outstanding on its 5.98 % medium-term notes , which matured in july 2012 and ( ii ) repaid the $ 198.9 million outstanding on its 6.00 % senior unsecured note , which matured in november 2012 . · the company also obtained a new $ 400.0 million unsecured term loan with a consortium of banks , which accrues interest at libor plus 105 basis points . the term loan is scheduled to mature in april 2014 , with three additional one-year options to extend the maturity date , at the company 's discretion , to april 17 , 2017. impairments : · real estate market conditions , including capitalization rates , discount rates and vacancies had continued to improve throughout 2012 ; however , declines in certain real estate markets continued to have a negative effect on transactional activity as it related to dispositions of select real estate assets . this factor , in addition to the company 's efforts to market certain assets and management 's assessment as to the likelihood and timing of such potential transactions caused the company to recognize impairment charges of $ 59.6 million ( including $ 22.5 million which is classified within discontinued operations ) , before income tax benefit and noncontrolling interests . potential future adverse market and economic conditions could cause the company to recognize additional impairments in the future ( see footnote 2 of the notes to consolidated financial statements included in this annual report on form 10-k ) . · in addition to the impairment charges above , various unconsolidated joint ventures in which the company holds noncontrolling interests recognized impairment charges relating to certain properties during 2012. the company 's share of these charges was $ 11.1 million , before income taxes ( see footnotes 2 and 8 of the notes to consolidated financial statements included in this annual report on form 10-k ) . critical accounting policies the consolidated financial statements of the company include the accounts of the company , its wholly-owned subsidiaries and all entities in which the company has a controlling interest , including where the company has been determined to be a primary beneficiary of a variable interest entity in accordance with the consolidation guidance of the financial accounting standards board 's ( “ fasb ” ) accounting standards codification ( “ asc ” ) . the company applies these provisions to each of its joint venture investments to determine whether the cost , equity or consolidation method of accounting is appropriate . the preparation of financial statements in conformity with accounting principles generally accepted in the united states requires management to make estimates and assumptions in certain circumstances that affect amounts reported in the accompanying consolidated financial statements and related notes . in preparing these financial statements , management has made its best estimates and assumptions that affect the reported amounts of assets and liabilities . these estimates are based on , but not limited to , historical results , industry standards and current economic conditions , giving due consideration to materiality . the most significant assumptions and estimates relate to revenue recognition and the recoverability of trade accounts receivable , depreciable lives , valuation of real estate and intangible assets and liabilities , valuation of joint venture investments and other investments , realizability of deferred tax assets and uncertain tax positions . story_separator_special_tag interest , dividends and other investment income decreased $ 14.4 million to $ 2.2 million for the year ended december 31 , 2012 , as compared to $ 16.6 million for the corresponding period in 2011. this decrease is primarily due to ( i ) the company 's sale of its investment in valad notes during 2011 , resulting in a decrease in interest income of $ 6.2 million , ( ii ) a decrease in other investment income of $ 6.4 million relating to the receipt of cash distributions during 2011 in excess of the company 's carrying value of a cost method investment , ( iii ) a reduction in interest income of $ 0.5 million due to repayments of notes in 2012 and 2011 and ( iv ) a decrease in gains on sales of securities of $ 0.5 million . 20 other expense , net increased $ 3.3 million to $ 8.0 million for the year ended december 31 , 2012 , as compared to $ 4.7 million for the corresponding period in 2011. this change is primarily due to ( i ) an increase in acquisition related costs of $ 3.1 million relating to an increase in transactional activity , ( ii ) a decrease in gains on foreign currency of $ 2.4 million relating to changes in foreign currency exchange rates , partially offset by ( iii ) an increase of $ 2.5 million in gains on land sales during 2012 , as compared to the corresponding period in 2011. interest expense increased $ 4.1 million to $ 227.6 million for the year ended december 31 , 2012 , as compared to $ 223.5 million for the corresponding period in 2011. this increase is primarily related to a decrease in capitalization of interest due to the placement of certain development and redevelopment properties into service during 2012 , as compared to the corresponding period in 2011. during 2011 , the company sold a merchant building property to an unconsolidated joint venture in which the company has a noncontrolling interest for a sales price of $ 37.6 million resulting in a pretax gain of $ 12.1 million after a deferral of $ 2.1 million due to the company 's continued involvement in the property . provision for income taxes , net decreased by $ 17.4 million to $ 3.9 million for the year ended december 31 , 2012 , as compared to $ 21.3 million for the corresponding period in 2011. this decrease is primarily due to ( i ) an increase in income tax benefit of $ 10.2 million related to impairments taken during the year ended december 31 , 2012 , as compared to the corresponding period in 2011 , ( ii ) a decrease in the income tax provision expense of $ 5.7 million in connection with a gain on sale of a development property during 2011 , ( iii ) a decrease in tax provision of $ 2.8 million resulting from the receipt of a cash distribution during 2011 in excess of the company 's carrying value of a cost method investment and ( iv ) a decrease in tax provision of $ 2.7 million resulting from a decrease in equity in income recognized in connection with the albertson 's investment during 2012 , as compared to 2011 , partially offset by ( v ) an increase in foreign withholding taxes of $ 5.4 million primarily resulting from an unrealized foreign exchange gains recognized for mexican tax purposes on u.s. denominated mortgage debt within the company 's latin american property portfolio . equity in income of joint ventures , net increased $ 49.4 million to $ 112.9 million for the year ended december 31 , 2012 , as compared to $ 63.5 million for the corresponding period in 2011. this increase is primarily the result of ( i ) an increase in gains on sale and promote income recognized of $ 12.6 million , ( ii ) the recognition of $ 7.5 million in income on the sale of certain air rights at a property within one of the company 's joint venture investments in canada , ( iii ) an increase in equity in income of $ 5.9 million from the company 's intown suites investment primarily resulting from increased operating profitability , ( iv ) the recognition of $ 2.1 million in income resulting from cash distributions received in excess of the company 's carrying value of its investment in an unconsolidated joint venture , ( v ) a decrease in impairment charges of $ 3.2 million resulting from fewer impairment charges recognized against certain joint venture properties during the year ended december 31 , 2012 , as compared to the corresponding period in 2011 , ( vi ) a decrease in equity in loss of $ 4.0 million resulting from the disposition of a portfolio of properties during 2011 , ( vii ) an increase in equity in income of $ 6.0 million from the company 's joint venture investments in canada ( viii ) an increase in equity in income of $ 3.7 million from the company 's joint venture investments in mexico and ( ix ) incremental earnings due to increased profitability from properties within the company 's joint venture program . during 2012 , the company acquired four properties from joint ventures in which the company had noncontrolling interests . the company recorded an aggregate gain on change in control of interests of $ 15.6 million related to the fair value adjustment associated with its original ownership . during 2011 , the company acquired one property from a joint venture in which the company had a noncontrolling interest . the company recorded an aggregate gain on change in control of interests of $ 0.6 million related to the fair value adjustment associated with its original ownership . during 2012 , the company disposed of 62 operating properties and two outparcels , in separate transactions ,

liquidity and capital resources the company 's capital resources include accessing the public debt and equity capital markets , mortgage and construction loan financing and immediate access to an unsecured revolving credit facility with bank commitments of $ 1.75 billion . the company 's cash flow activities are summarized as follows ( in millions ) : replace_table_token_7_th operating activities the company anticipates that cash on hand , operating cash flows , borrowings under its revolving credit facility , issuance of equity and public debt , as well as other debt and equity alternatives , will provide the necessary capital required by the company . net cash flow provided by operating activities for the year ended december 31 , 2012 , was primarily attributable to ( i ) cash flow from the diverse portfolio of rental properties , ( ii ) the acquisition of operating properties during 2012 and 2011 , ( iii ) new leasing , expansion and re-tenanting of core portfolio properties and ( iv ) distributions from the company 's joint venture programs . cash flow provided by operating activities for the year ended december 31 , 2012 , was $ 479.1 million , as compared to $ 448.6 million for the comparable period in 2011. the change of $ 30.5 million is primarily attributable to higher operational income , increased distributions from joint ventures and other real estate investments and changes in accounts and notes receivable due to timing of receipts .

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 capital resources include accessing the public debt and equity capital markets , mortgage and construction loan financing and immediate access to an unsecured revolving credit facility with bank commitments of $ 1.75 billion . the company 's cash flow activities are summarized as follows ( in millions ) : replace_table_token_7_th operating activities the company anticipates that cash on hand , operating cash flows , borrowings under its revolving credit facility , issuance of equity and public debt , as well as other debt and equity alternatives , will provide the necessary capital required by the company . net cash flow provided by operating activities for the year ended december 31 , 2012 , was primarily attributable to ( i ) cash flow from the diverse portfolio of rental properties , ( ii ) the acquisition of operating properties during 2012 and 2011 , ( iii ) new leasing , expansion and re-tenanting of core portfolio properties and ( iv ) distributions from the company 's joint venture programs . cash flow provided by operating activities for the year ended december 31 , 2012 , was $ 479.1 million , as compared to $ 448.6 million for the comparable period in 2011. the change of $ 30.5 million is primarily attributable to higher operational income , increased distributions from joint ventures and other real estate investments and changes in accounts and notes receivable due to timing of receipts . ``` Suspicious Activity Report : · executed 2,678 leases , renewals and options totaling over 10.0 million square feet in the combined shopping center portfolio . acquisition activity : · acquired 24 shopping center properties , five outparcels and 69 net leased parcels comprising an aggregate 3.1 million square feet of gla , for an aggregate purchase price of $ 634.5 million including the assumption of $ 179.2 million of non-recourse mortgage debt encumbering seven of the properties . disposition activity : · during 2012 , the company monetized non-retail assets of $ 83.0 million and reduced its non-retail book values by $ 114.1 million to $ 398.4 million . · included in the monetization above are the disposition of four properties and one land parcel , in separate transactions , for an aggregate sales price of $ 40.3 million . these transactions resulted in an aggregate net gain of $ 4.8 million , before income taxes . · also included in the monetization above is ( i ) the receipt of $ 24.8 million from payment of mortgage receivables , ( ii ) the company 's receipt of $ 14.6 million in distributions from two preferred equity investments and one joint venture investment and ( iii ) $ 10.4 million in distributions from two cost method investments . · additionally , during 2012 , the company disposed of 59 operating properties , four land parcels and four outparcels , in separate transactions , for an aggregate sales price of $ 443.0 million . these transactions resulted in an aggregate gain of $ 91.5 million and impairment charges of $ 22.5 million , before income taxes and noncontrolling interests . 16 capital activity ( for additional details see liquidity and capital resources below ) : · during 2012 , the company issued 16,000,000 depositary shares of 6.00 % class i cumulative redeemable preferred stock , 9,000,000 depositary shares of 5.50 % class j cumulative redeemable preferred stock and 7,000,000 depositary shares of 5.625 % class k cumulative redeemable preferred stock resulting in aggregate proceeds after expenses of $ 774.1 million to the company . · additionally , during 2012 , the company redeemed all of its outstanding 18,400,000 depositary shares of the company 's 7.75 % class g cumulative redeemable preferred stock and all of its outstanding 7,000,000 depositary shares of the company 's 6.65 % class f cumulative redeemable preferred stock resulting in aggregate payments of $ 635.0 million . · also during 2012 , the company ( i ) repaid the $ 17.0 million outstanding on its 5.98 % medium-term notes , which matured in july 2012 and ( ii ) repaid the $ 198.9 million outstanding on its 6.00 % senior unsecured note , which matured in november 2012 . · the company also obtained a new $ 400.0 million unsecured term loan with a consortium of banks , which accrues interest at libor plus 105 basis points . the term loan is scheduled to mature in april 2014 , with three additional one-year options to extend the maturity date , at the company 's discretion , to april 17 , 2017. impairments : · real estate market conditions , including capitalization rates , discount rates and vacancies had continued to improve throughout 2012 ; however , declines in certain real estate markets continued to have a negative effect on transactional activity as it related to dispositions of select real estate assets . this factor , in addition to the company 's efforts to market certain assets and management 's assessment as to the likelihood and timing of such potential transactions caused the company to recognize impairment charges of $ 59.6 million ( including $ 22.5 million which is classified within discontinued operations ) , before income tax benefit and noncontrolling interests . potential future adverse market and economic conditions could cause the company to recognize additional impairments in the future ( see footnote 2 of the notes to consolidated financial statements included in this annual report on form 10-k ) . · in addition to the impairment charges above , various unconsolidated joint ventures in which the company holds noncontrolling interests recognized impairment charges relating to certain properties during 2012. the company 's share of these charges was $ 11.1 million , before income taxes ( see footnotes 2 and 8 of the notes to consolidated financial statements included in this annual report on form 10-k ) . critical accounting policies the consolidated financial statements of the company include the accounts of the company , its wholly-owned subsidiaries and all entities in which the company has a controlling interest , including where the company has been determined to be a primary beneficiary of a variable interest entity in accordance with the consolidation guidance of the financial accounting standards board 's ( “ fasb ” ) accounting standards codification ( “ asc ” ) . the company applies these provisions to each of its joint venture investments to determine whether the cost , equity or consolidation method of accounting is appropriate . the preparation of financial statements in conformity with accounting principles generally accepted in the united states requires management to make estimates and assumptions in certain circumstances that affect amounts reported in the accompanying consolidated financial statements and related notes . in preparing these financial statements , management has made its best estimates and assumptions that affect the reported amounts of assets and liabilities . these estimates are based on , but not limited to , historical results , industry standards and current economic conditions , giving due consideration to materiality . the most significant assumptions and estimates relate to revenue recognition and the recoverability of trade accounts receivable , depreciable lives , valuation of real estate and intangible assets and liabilities , valuation of joint venture investments and other investments , realizability of deferred tax assets and uncertain tax positions . story_separator_special_tag interest , dividends and other investment income decreased $ 14.4 million to $ 2.2 million for the year ended december 31 , 2012 , as compared to $ 16.6 million for the corresponding period in 2011. this decrease is primarily due to ( i ) the company 's sale of its investment in valad notes during 2011 , resulting in a decrease in interest income of $ 6.2 million , ( ii ) a decrease in other investment income of $ 6.4 million relating to the receipt of cash distributions during 2011 in excess of the company 's carrying value of a cost method investment , ( iii ) a reduction in interest income of $ 0.5 million due to repayments of notes in 2012 and 2011 and ( iv ) a decrease in gains on sales of securities of $ 0.5 million . 20 other expense , net increased $ 3.3 million to $ 8.0 million for the year ended december 31 , 2012 , as compared to $ 4.7 million for the corresponding period in 2011. this change is primarily due to ( i ) an increase in acquisition related costs of $ 3.1 million relating to an increase in transactional activity , ( ii ) a decrease in gains on foreign currency of $ 2.4 million relating to changes in foreign currency exchange rates , partially offset by ( iii ) an increase of $ 2.5 million in gains on land sales during 2012 , as compared to the corresponding period in 2011. interest expense increased $ 4.1 million to $ 227.6 million for the year ended december 31 , 2012 , as compared to $ 223.5 million for the corresponding period in 2011. this increase is primarily related to a decrease in capitalization of interest due to the placement of certain development and redevelopment properties into service during 2012 , as compared to the corresponding period in 2011. during 2011 , the company sold a merchant building property to an unconsolidated joint venture in which the company has a noncontrolling interest for a sales price of $ 37.6 million resulting in a pretax gain of $ 12.1 million after a deferral of $ 2.1 million due to the company 's continued involvement in the property . provision for income taxes , net decreased by $ 17.4 million to $ 3.9 million for the year ended december 31 , 2012 , as compared to $ 21.3 million for the corresponding period in 2011. this decrease is primarily due to ( i ) an increase in income tax benefit of $ 10.2 million related to impairments taken during the year ended december 31 , 2012 , as compared to the corresponding period in 2011 , ( ii ) a decrease in the income tax provision expense of $ 5.7 million in connection with a gain on sale of a development property during 2011 , ( iii ) a decrease in tax provision of $ 2.8 million resulting from the receipt of a cash distribution during 2011 in excess of the company 's carrying value of a cost method investment and ( iv ) a decrease in tax provision of $ 2.7 million resulting from a decrease in equity in income recognized in connection with the albertson 's investment during 2012 , as compared to 2011 , partially offset by ( v ) an increase in foreign withholding taxes of $ 5.4 million primarily resulting from an unrealized foreign exchange gains recognized for mexican tax purposes on u.s. denominated mortgage debt within the company 's latin american property portfolio . equity in income of joint ventures , net increased $ 49.4 million to $ 112.9 million for the year ended december 31 , 2012 , as compared to $ 63.5 million for the corresponding period in 2011. this increase is primarily the result of ( i ) an increase in gains on sale and promote income recognized of $ 12.6 million , ( ii ) the recognition of $ 7.5 million in income on the sale of certain air rights at a property within one of the company 's joint venture investments in canada , ( iii ) an increase in equity in income of $ 5.9 million from the company 's intown suites investment primarily resulting from increased operating profitability , ( iv ) the recognition of $ 2.1 million in income resulting from cash distributions received in excess of the company 's carrying value of its investment in an unconsolidated joint venture , ( v ) a decrease in impairment charges of $ 3.2 million resulting from fewer impairment charges recognized against certain joint venture properties during the year ended december 31 , 2012 , as compared to the corresponding period in 2011 , ( vi ) a decrease in equity in loss of $ 4.0 million resulting from the disposition of a portfolio of properties during 2011 , ( vii ) an increase in equity in income of $ 6.0 million from the company 's joint venture investments in canada ( viii ) an increase in equity in income of $ 3.7 million from the company 's joint venture investments in mexico and ( ix ) incremental earnings due to increased profitability from properties within the company 's joint venture program . during 2012 , the company acquired four properties from joint ventures in which the company had noncontrolling interests . the company recorded an aggregate gain on change in control of interests of $ 15.6 million related to the fair value adjustment associated with its original ownership . during 2011 , the company acquired one property from a joint venture in which the company had a noncontrolling interest . the company recorded an aggregate gain on change in control of interests of $ 0.6 million related to the fair value adjustment associated with its original ownership . during 2012 , the company disposed of 62 operating properties and two outparcels , in separate transactions ,

increase profitability through ongoing diversification of revenue streams : for the twelve months ended december 31 , 2018 , the company generated $ 16.6 million in revenue , or 33.3 percent of total operating revenue from fee-based products . these revenue sources include fees generated from saleable residential mortgage loans , retail deposit products , wealth management services , saleable business-based loans ( small business and farm service ) and the sale of our item processing subsidiary . for the twelve months ended december 31 , 2017 , the company generated $ 17.2 million in revenue from fee-based products , or 37.2 percent of total operating revenue . strengthen our penetration in all markets served : over our 116-year history of continuous operation in northwest ohio , we have established a significant presence in our traditional markets in defiance , fulton , paulding and williams counties in ohio . in our newer markets of bowling green , columbus , findlay , toledo ( ohio ) and ft. wayne ( indiana ) , our current market penetration is minimal but we believe our potential for growth is significant . we continue to seek to expand this presence and penetration in all of our markets . expand product utilization by new and existing customers : as of december 31 , 2018 , we served 29,562 households and provided 87,202 products and services to these households . our strategy is to continue to expand the scope of our relationship with each household via our dynamic “ on-boarding ” process . proactively identifying client needs is a key ingredient of our value proposition . as of december 31 , 2017 , we served 28,590 households and provided 83,593 products and services to these households . deliver gains in operational excellence : our management team believes that becoming and remaining a high-performance financial services company will depend upon seamlessly and consistently delivering operational excellence , as demonstrated by the company 's leadership in the origination and servicing of residential mortgage loans . as of december 31 , 2018 , the company serviced 7,586 residential mortgage loans with a principal balance of $ 1,084.7 million . as of december 31 , 2017 , the company serviced 7,051 loans with a principal balance of $ 994.9 million . sustain asset quality : as of december 31 , 2018 , the company 's asset quality metrics remained strong . specifically , total nonperforming assets were $ 4.0 million , or 0.40 percent of total assets . total delinquent loans at december 31 , 2018 were 0.65 percent of total loans . as of december 31 , 2017 , the company had total nonperforming assets of $ 3.9 million , or 0.44 percent of total assets . total delinquent loans at december 31 , 2017 were 0.42 percent of total loans . critical accounting policies the accounting and reporting policies of the company are in accordance with generally accepted accounting principles in the united states and conform to general practices within the banking industry . the company 's significant accounting policies are described in detail in the notes to the company 's consolidated financial statements for the years ended december 31 , 2018 and 2017. the preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions . the company 's financial position and results of operations can be affected by these estimates and assumptions and are integral to the understanding of reported results . critical accounting policies are those policies that management believes are the most important to the portrayal of the company 's financial condition and results , and they require management to make estimates that are difficult , subjective or complex . 30 allowance for loan losses : the allowance for loan losses provides coverage for probable losses inherent in the company 's loan portfolio . management evaluates the adequacy of the allowance for loan losses each quarter based on changes , if any , in the nature and amount of problem assets and associated collateral , underwriting activities , loan portfolio composition ( including product mix and geographic , industry or customer-specific concentrations ) , trends in loan performance , regulatory guidance and economic factors . this evaluation is inherently subjective , as it requires the use of significant management estimates . many factors can affect management 's estimates of specific and expected losses , including volatility of default probabilities , rating migrations , loss severity and economic and political conditions . the allowance is increased through provisions charged to operating earnings and reduced by net charge offs . the company determines the amount of the allowance based on relative risk characteristics of the loan portfolio . the allowance recorded for commercial loans is based on reviews of individual credit relationships and an analysis of the migration of commercial loans and actual loss experience . the allowance recorded for homogeneous consumer loans is based on an analysis of loan mix , risk characteristics of the portfolio , fraud loss and bankruptcy experiences , and historical losses , adjusted for current trends , for each homogeneous category or group of loans . the allowance for credit losses relating to impaired loans is based on each impaired loan 's observable market price , the collateral for certain collateral-dependent loans , or the discounted cash flows using the loan 's effective interest rate . regardless of the extent of the company 's analysis of customer performance , portfolio trends or risk management processes , certain inherent , but undetected , losses are probable within the loan portfolio . story_separator_special_tag the company 's 2017 results included a $ 1.7 million one-time reduction in tax expense due to the enactment in december 2017 of the tcja . state bank reported net income for 2018 of $ 12.9 million , which was up from the $ 12.3 million in net income in 2017. rdsi reported net income for 2018 of $ 0.1 million , compared to a net loss of $ 0.2 million reported for 2017. positive results for 2018 included loan growth of $ 75.3 million , and deposit growth of $ 73.0 million . the mortgage banking business line continues to contribute significant revenues , with residential real estate loan production of $ 342.1 million for the year , resulting in $ 6.9 million of revenue from gains on sale . the level of mortgage origination was up from the $ 315.8 million in 2017. the company 's loans serviced for others ended the year at $ 1,084.7 million , up from $ 994.9 million at december 31 , 2017. operating revenue was up compared to the prior year by $ 4.3 million , or 9.4 percent , due to higher margin income due to $ 75.3 million in balance sheet loan growth , in addition to the sale of our item processing business netted $ 0.4 million in revenue . net interest margin on a fully tax equivalent basis ( “ fte ” ) for 2018 was 3.95 percent , up 17 basis points from 2017. operating expense was up compared to the prior year by $ 3.3 million , or 10.4 percent , due to compensation and fringe benefit cost increases as a result of higher staffing levels . net charge offs for 2018 of $ 0.4 million resulted in a loan loss provision of $ 0.6 million , which was up from the $ 0.2 million of chargeoffs and $ 0.4 million of loan loss provision in 2017 . 33 results of operations replace_table_token_21_th net interest income net interest income years ended december 31 , ( $ in thousands ) 2018 2017 % change total net interest income $ 33,267 $ 28,386 17.2 % net interest income was $ 33.3 million for 2018 compared to $ 28.4 million for 2017 , an increase of $ 4.9 million or 17.2 percent . average earning assets increased to $ 845.7 million in 2018 , compared to $ 759.7 million in 2017 , an increase of $ 86.0 million or 11.3 percent due to higher loan volume . the consolidated 2018 full year net interest margin ( fte ) increased 17 basis points to 3.95 percent compared to 3.78 percent for the full year of 2017. provision for loan losses of $ 0.6 million was taken in 2018 compared to $ 0.4 million taken for 2017. the $ 0.2 million increase was due to the higher level of net charge offs . for 2018 , net charge offs totaled $ 0.4 million , or 0.05 percent of average loans . this charge off level was higher than 2017 , in which net charge offs were $ 0.2 million or 0.03 percent of average loans . replace_table_token_22_th total noninterest income was $ 16.6 million for 2018 compared to $ 17.2 million for 2017 , representing a decline of $ 0.6 million , or 3.5 percent , year-over-year . this decrease was driven by a 3.7 percent decrease in gains on sale of residential real estate loans and the sale of our item processing business . the company sold $ 260.7 million of originated mortgages into the secondary market , which allowed our serviced loan portfolio to grow to $ 1,084.7 million at december 31 , 2018 from $ 994.9 million at december 31 , 2017. the higher servicing balance of the portfolio led to the 9.1 percent increase in mortgage loan serving income . 34 replace_table_token_23_th total noninterest expense was $ 34.8 million for 2018 compared to $ 31.6 million for 2017 , representing a $ 3.2 million , or 10.4 percent , increase year-over-year . total full-time equivalent employees ended 2018 at 250 , which was up 10 from year end 2017. salaries and benefits were driven by higher personnel in small business lending , compliance and operations . marketing costs were higher due to expanded campaigns and higher sales staff needing support . our professional fees were higher due to greater regulatory requirements based on market capitalization thresholds and costs associated with the sale of the dcm division of rdsi . earnings summary – 2017 vs. 2016 net income for 2017 was $ 11.1 million , and net income available to common shareholders was $ 10.1 million , or $ 1.74 per diluted share , compared with net income of $ 8.8 million and net income available to common of $ 7.8 million , or $ 1.38 per diluted share , for 2016. the company 's 2017 results included a $ 1.7 million one-time reduction in tax expense due to the recently enacted tcja . state bank reported net income for 2017 of $ 12.3 million , which was up from the $ 9.7 million in net income in 2016. rdsi reported a net loss for 2017 of $ 0.2 million , compared to a net loss of $ 0.08 million reported for 2016. positive results for 2017 included loan growth of $ 52.2 million , and deposit growth of $ 56.5 million . the mortgage banking business line continued to contribute significant revenues , with residential real estate loan production of $ 315.8 million for the year , resulting in $ 7.1 million of revenue from gains on sale . the level of mortgage origination was down from the $ 382.8 million in 2016. the company 's loans serviced for others ended the year at $ 994.9 million , up from $ 899.7 million at december 31 , 2016. operating revenue was up compared to the prior year by $ 1.9 million , or 4.3 percent , due

liquidity liquidity relates primarily to the company 's ability to fund loan demand , meet deposit customers ' withdrawal requirements and provide for operating expenses . sources used to satisfy these needs consist of cash and due from banks , interest-bearing deposits in other financial institutions , securities available-for-sale , loans held for sale and borrowings from various sources . these assets , excluding the borrowings , are commonly referred to as liquid assets . liquid assets were $ 143.8 million at december 31 , 2018 , compared to $ 113.3 million at december 31 , 2017. the company 's commercial real estate , first mortgage residential , agricultural and multi-family mortgage portfolio of $ 579.9 million at december 31 , 2018 , can and is readily used to collateralize borrowings , which is an additional source of liquidity . management believes the company 's current liquidity level , without these borrowings , is sufficient to meet its current and anticipated liquidity needs . at december 31 , 2018 , all eligible commercial real estate , residential first , multi-family mortgage and agricultural loans were pledged under a federal home loan bank ( “ fhlb ” ) blanket lien . significant additional off-balance-sheet liquidity is available in the form of fhlb advances , unused federal funds lines from correspondent banks and the national certificate of deposit market . management expects the risk of changes in off-balance-sheet arrangements to be immaterial to earnings . based on the current collateralization requirements of the fhlb , approximately $ 98.9 million of additional borrowing capacity existed at december 31 , 2018. at december 31 , 2018 and 2017 , the company had $ 41.0 and $ 38.0 million in federal funds lines available , 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 liquidity relates primarily to the company 's ability to fund loan demand , meet deposit customers ' withdrawal requirements and provide for operating expenses . sources used to satisfy these needs consist of cash and due from banks , interest-bearing deposits in other financial institutions , securities available-for-sale , loans held for sale and borrowings from various sources . these assets , excluding the borrowings , are commonly referred to as liquid assets . liquid assets were $ 143.8 million at december 31 , 2018 , compared to $ 113.3 million at december 31 , 2017. the company 's commercial real estate , first mortgage residential , agricultural and multi-family mortgage portfolio of $ 579.9 million at december 31 , 2018 , can and is readily used to collateralize borrowings , which is an additional source of liquidity . management believes the company 's current liquidity level , without these borrowings , is sufficient to meet its current and anticipated liquidity needs . at december 31 , 2018 , all eligible commercial real estate , residential first , multi-family mortgage and agricultural loans were pledged under a federal home loan bank ( “ fhlb ” ) blanket lien . significant additional off-balance-sheet liquidity is available in the form of fhlb advances , unused federal funds lines from correspondent banks and the national certificate of deposit market . management expects the risk of changes in off-balance-sheet arrangements to be immaterial to earnings . based on the current collateralization requirements of the fhlb , approximately $ 98.9 million of additional borrowing capacity existed at december 31 , 2018. at december 31 , 2018 and 2017 , the company had $ 41.0 and $ 38.0 million in federal funds lines available , respectively . ``` Suspicious Activity Report : increase profitability through ongoing diversification of revenue streams : for the twelve months ended december 31 , 2018 , the company generated $ 16.6 million in revenue , or 33.3 percent of total operating revenue from fee-based products . these revenue sources include fees generated from saleable residential mortgage loans , retail deposit products , wealth management services , saleable business-based loans ( small business and farm service ) and the sale of our item processing subsidiary . for the twelve months ended december 31 , 2017 , the company generated $ 17.2 million in revenue from fee-based products , or 37.2 percent of total operating revenue . strengthen our penetration in all markets served : over our 116-year history of continuous operation in northwest ohio , we have established a significant presence in our traditional markets in defiance , fulton , paulding and williams counties in ohio . in our newer markets of bowling green , columbus , findlay , toledo ( ohio ) and ft. wayne ( indiana ) , our current market penetration is minimal but we believe our potential for growth is significant . we continue to seek to expand this presence and penetration in all of our markets . expand product utilization by new and existing customers : as of december 31 , 2018 , we served 29,562 households and provided 87,202 products and services to these households . our strategy is to continue to expand the scope of our relationship with each household via our dynamic “ on-boarding ” process . proactively identifying client needs is a key ingredient of our value proposition . as of december 31 , 2017 , we served 28,590 households and provided 83,593 products and services to these households . deliver gains in operational excellence : our management team believes that becoming and remaining a high-performance financial services company will depend upon seamlessly and consistently delivering operational excellence , as demonstrated by the company 's leadership in the origination and servicing of residential mortgage loans . as of december 31 , 2018 , the company serviced 7,586 residential mortgage loans with a principal balance of $ 1,084.7 million . as of december 31 , 2017 , the company serviced 7,051 loans with a principal balance of $ 994.9 million . sustain asset quality : as of december 31 , 2018 , the company 's asset quality metrics remained strong . specifically , total nonperforming assets were $ 4.0 million , or 0.40 percent of total assets . total delinquent loans at december 31 , 2018 were 0.65 percent of total loans . as of december 31 , 2017 , the company had total nonperforming assets of $ 3.9 million , or 0.44 percent of total assets . total delinquent loans at december 31 , 2017 were 0.42 percent of total loans . critical accounting policies the accounting and reporting policies of the company are in accordance with generally accepted accounting principles in the united states and conform to general practices within the banking industry . the company 's significant accounting policies are described in detail in the notes to the company 's consolidated financial statements for the years ended december 31 , 2018 and 2017. the preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions . the company 's financial position and results of operations can be affected by these estimates and assumptions and are integral to the understanding of reported results . critical accounting policies are those policies that management believes are the most important to the portrayal of the company 's financial condition and results , and they require management to make estimates that are difficult , subjective or complex . 30 allowance for loan losses : the allowance for loan losses provides coverage for probable losses inherent in the company 's loan portfolio . management evaluates the adequacy of the allowance for loan losses each quarter based on changes , if any , in the nature and amount of problem assets and associated collateral , underwriting activities , loan portfolio composition ( including product mix and geographic , industry or customer-specific concentrations ) , trends in loan performance , regulatory guidance and economic factors . this evaluation is inherently subjective , as it requires the use of significant management estimates . many factors can affect management 's estimates of specific and expected losses , including volatility of default probabilities , rating migrations , loss severity and economic and political conditions . the allowance is increased through provisions charged to operating earnings and reduced by net charge offs . the company determines the amount of the allowance based on relative risk characteristics of the loan portfolio . the allowance recorded for commercial loans is based on reviews of individual credit relationships and an analysis of the migration of commercial loans and actual loss experience . the allowance recorded for homogeneous consumer loans is based on an analysis of loan mix , risk characteristics of the portfolio , fraud loss and bankruptcy experiences , and historical losses , adjusted for current trends , for each homogeneous category or group of loans . the allowance for credit losses relating to impaired loans is based on each impaired loan 's observable market price , the collateral for certain collateral-dependent loans , or the discounted cash flows using the loan 's effective interest rate . regardless of the extent of the company 's analysis of customer performance , portfolio trends or risk management processes , certain inherent , but undetected , losses are probable within the loan portfolio . story_separator_special_tag the company 's 2017 results included a $ 1.7 million one-time reduction in tax expense due to the enactment in december 2017 of the tcja . state bank reported net income for 2018 of $ 12.9 million , which was up from the $ 12.3 million in net income in 2017. rdsi reported net income for 2018 of $ 0.1 million , compared to a net loss of $ 0.2 million reported for 2017. positive results for 2018 included loan growth of $ 75.3 million , and deposit growth of $ 73.0 million . the mortgage banking business line continues to contribute significant revenues , with residential real estate loan production of $ 342.1 million for the year , resulting in $ 6.9 million of revenue from gains on sale . the level of mortgage origination was up from the $ 315.8 million in 2017. the company 's loans serviced for others ended the year at $ 1,084.7 million , up from $ 994.9 million at december 31 , 2017. operating revenue was up compared to the prior year by $ 4.3 million , or 9.4 percent , due to higher margin income due to $ 75.3 million in balance sheet loan growth , in addition to the sale of our item processing business netted $ 0.4 million in revenue . net interest margin on a fully tax equivalent basis ( “ fte ” ) for 2018 was 3.95 percent , up 17 basis points from 2017. operating expense was up compared to the prior year by $ 3.3 million , or 10.4 percent , due to compensation and fringe benefit cost increases as a result of higher staffing levels . net charge offs for 2018 of $ 0.4 million resulted in a loan loss provision of $ 0.6 million , which was up from the $ 0.2 million of chargeoffs and $ 0.4 million of loan loss provision in 2017 . 33 results of operations replace_table_token_21_th net interest income net interest income years ended december 31 , ( $ in thousands ) 2018 2017 % change total net interest income $ 33,267 $ 28,386 17.2 % net interest income was $ 33.3 million for 2018 compared to $ 28.4 million for 2017 , an increase of $ 4.9 million or 17.2 percent . average earning assets increased to $ 845.7 million in 2018 , compared to $ 759.7 million in 2017 , an increase of $ 86.0 million or 11.3 percent due to higher loan volume . the consolidated 2018 full year net interest margin ( fte ) increased 17 basis points to 3.95 percent compared to 3.78 percent for the full year of 2017. provision for loan losses of $ 0.6 million was taken in 2018 compared to $ 0.4 million taken for 2017. the $ 0.2 million increase was due to the higher level of net charge offs . for 2018 , net charge offs totaled $ 0.4 million , or 0.05 percent of average loans . this charge off level was higher than 2017 , in which net charge offs were $ 0.2 million or 0.03 percent of average loans . replace_table_token_22_th total noninterest income was $ 16.6 million for 2018 compared to $ 17.2 million for 2017 , representing a decline of $ 0.6 million , or 3.5 percent , year-over-year . this decrease was driven by a 3.7 percent decrease in gains on sale of residential real estate loans and the sale of our item processing business . the company sold $ 260.7 million of originated mortgages into the secondary market , which allowed our serviced loan portfolio to grow to $ 1,084.7 million at december 31 , 2018 from $ 994.9 million at december 31 , 2017. the higher servicing balance of the portfolio led to the 9.1 percent increase in mortgage loan serving income . 34 replace_table_token_23_th total noninterest expense was $ 34.8 million for 2018 compared to $ 31.6 million for 2017 , representing a $ 3.2 million , or 10.4 percent , increase year-over-year . total full-time equivalent employees ended 2018 at 250 , which was up 10 from year end 2017. salaries and benefits were driven by higher personnel in small business lending , compliance and operations . marketing costs were higher due to expanded campaigns and higher sales staff needing support . our professional fees were higher due to greater regulatory requirements based on market capitalization thresholds and costs associated with the sale of the dcm division of rdsi . earnings summary – 2017 vs. 2016 net income for 2017 was $ 11.1 million , and net income available to common shareholders was $ 10.1 million , or $ 1.74 per diluted share , compared with net income of $ 8.8 million and net income available to common of $ 7.8 million , or $ 1.38 per diluted share , for 2016. the company 's 2017 results included a $ 1.7 million one-time reduction in tax expense due to the recently enacted tcja . state bank reported net income for 2017 of $ 12.3 million , which was up from the $ 9.7 million in net income in 2016. rdsi reported a net loss for 2017 of $ 0.2 million , compared to a net loss of $ 0.08 million reported for 2016. positive results for 2017 included loan growth of $ 52.2 million , and deposit growth of $ 56.5 million . the mortgage banking business line continued to contribute significant revenues , with residential real estate loan production of $ 315.8 million for the year , resulting in $ 7.1 million of revenue from gains on sale . the level of mortgage origination was down from the $ 382.8 million in 2016. the company 's loans serviced for others ended the year at $ 994.9 million , up from $ 899.7 million at december 31 , 2016. operating revenue was up compared to the prior year by $ 1.9 million , or 4.3 percent , due

in response to covid-19 , we have put into place certain restrictions , requirements and guidelines , to protect the health of our employees and clients , including requiring certain conditions to be met before employees return to the company 's offices . also , to protect the health and safety of our employees , our daily execution has evolved into a largely virtual model and we continue to endeavor to find innovative ways to engage with customers and prospects as we , our customers and prospects endeavor to navigate the current environment . between april 1 , 2020 and september 1 , 2020 , computex reduced the salaries of its employees and we are endeavoring to reduce other operating expenses . we plan to continue to monitor the current environment and may take further actions that may be required by federal , state or local authorities or that we determine are in the interests of our employees , customers , and partners . 24 our business our hardware offerings are sourced from a network of leading manufacturers , and include , data storage , desktops , servers , and other hardware . third party software and maintenance offerings include licensing , licensing management , software solutions and other services . we offer a full suite of value-added services , which typically are delivered as part of a complete technology solution , to help our customers meet their specific needs . our solutions range from configuration services for computer devices to fully integrated solutions such as virtualization , collaboration , security , mobility , data center optimization and cloud computing . we also offer complementary services including installations , warranty services and certain managed services such as remote network and data center monitoring . we believe our software and service offerings are important growth areas for us . our professional and managed services include managed it services , virtualization , storage , networking and data center services . as part of these services , we offer customized solutions for business continuity , back-up and recovery , capacity on-demand , regulatory compliance and data center best practice methodologies as well as infrastructure as a service ( “ iaas ” ) and software as a service ( “ saas ” ) . our customers utilize our solutions to optimize their current and planned investments in it infrastructure and data centers . we believe the breadth of our service offering and our consultative approach to working with our clients distinguishes us from other providers . c loud subscription and software products include subscriptions to the company 's cloud-based technology platform . in addition , we believe our business is well-diversified across verticals , technology solutions offerings and procurement partners from whom we procure products and software for resale . our sales teams consist of seasoned account executives and regionally focused sales support teams who work within assigned territories to provide customized solutions to our customers . our sales teams are supported by industry leading technologists who design end to end solutions and who take projects from design , to implementation , to management . we boast an extensive network of oems and distributors which allow us to direct-sell a diverse selection of products and software to our ever-growing customer base , as packaged software or as licensed products and services . we have developed an infrastructure that enables us to deliver our it solutions and service agnostic as to technology platform and location through a flexible , customer-focused delivery model which spans three datacenter environments ( customer-owned , co-location , and the cloud ) . by optimizing our customers ' use of secure , energy efficient and reliable data centers combined with a comprehensive suite of related it infrastructure services , we are able to offer our customers highly customized solutions to address their needs for data center availability , data management , data security , business continuity disaster recovery and data center consolidation , as well as a variety of other related managed services . key trends affecting our results of operations the following are key trends that we believe can impact our results of operations : ● the increasing need , by organizations , for third-party service providers , such as computex technology solutions , to manage significant aspects of the it environment ● the increasing need , by organizations , to reduce the number of solutions providers they do business with to improve supply chain and internal efficiencies , enhance accountability , improve supplier management practices , and reduce costs ● the lack of sufficient internal it resources at mid-sized and large enterprises , and the scarcity of it personnel in certain high-demand disciplines ● disruptive technologies that are creating complexity and challenges for customers and vendors ● the increasing sophistication and incidences of it security breaches and cyber-attacks ● the it decision-making shift by some companies , whereby it decision-making is shifting from it departments to line-of-business personnel , which is changing the customer engagement model and types of consultative services required to fulfill the needs of customers ● the recognition that certain it services provide the opportunity of funding via recurring payments over a period of time , rather than large upfront payments ● the increasing use of multi-cloud strategies , whereby cloud architectures and cloud-enabled frameworks , whether public , private , or hybrid , provide the core foundation of modern it ● the explosive growth in remote workforce needs . 25 growth strategy the acquisition of kandy serves to complement the services provided by computex by giving us the opportunity to provide a full suite of ucaas , cpaas , and ccaas products to serve the rapidly growing cloud communications market . customers today demand a highly reliable , secure , and scalable communications platform along with a world class customer experience . story_separator_special_tag when an arrangement contains more than one performance obligation , the company will allocate the transaction price to each performance obligation on a relative standalone selling price basis . the company utilizes the observable price of goods and services when they are sold separately to similar customers in order to estimate standalone selling price . hardware revenue from the sale of hardware is recognized on a gross basis , as the company is deemed to be acting as the principal in these transactions . the selling price to the customer is recorded as revenue and the acquisition cost is recorded within cost of revenue . the company recognizes revenue from these transactions when control has passed to the customer , which is usually upon shipment . in some instances , the customer agrees to buy the product from the company , but requests delivery at a later date , commonly known as a bill-and-hold arrangement . for these transactions , the company deems that control passes to the customer when the product is ready for delivery . the company classifies such products as products ready for delivery when the customer is in possession of a signed agreement , the significant risk and rewards for the product has passed to the customer , the customer has the ability to direct the asset , the product has been set aside specifically for the customer and the company can not redirect the product for the benefit of another customer . in drop-shipment arrangements , whereby the company arranges for the vendor to deliver the product directly to the customer without the inventory first being held at its warehouses , the company considers itself to be the principal and therefore , recognizes the related revenue on a gross basis . third party software revenues from most software license sales are recognized as a single performance obligation on a net basis , as the company is deemed to be acting as an agent in these transactions . revenues in these instances are recognized at the point the software license is delivered to the customer . generally , software licenses are sold with accompanying third-party delivered software support , which is a product that allows customers to upgrade , at no additional cost , to the latest technology if new capabilities are introduced during the period that the software support is in effect . the company evaluates whether the software support is a separate performance obligation by assessing whether the third-party delivered software support is critical or essential to the core functionality of the software itself . this involves considering whether the software provides its original intended functionality to the customer without the updates , whether the customer would ascribe a higher value to the upgrades versus the up-front deliverable , whether the customer would expect frequent intelligence updates to the software ( such as updates that maintain the original functionality ) , and whether the customer chooses to not delay or always install upgrades . if the company determines that the accompanying third-party delivered software support is critical or essential to the core functionality of the software license , the software license and the accompanying third-party delivered software support are recognized as a single performance obligation . the value of the product is primarily based on the accompanying support delivered by a third-party , and therefore the company is acting as an agent in these transactions and therefore , recognizes the associated revenue on a net basis at the point that the associated software license is delivered to the customer . 32 third party maintenance the company is deemed to be the agent in the sale of third-party maintenance , software support and services , as the third-party controls the service until it is transferred to the customer . in these instances , the company recognizes the revenue on a net basis equal to the selling price to the customer less the acquisition costs . such revenue is recognized when the customer and vendor accept the terms and conditions of the arrangement . managed and professional services professional services offered by the company include assessments , project management , staging , configuration , customer training and integration . managed services offerings range from monitoring and notification to a fully outsourced network management solution . in these arrangements , the company satisfies the performance obligations and recognizes revenue over time . such professional services are provided under both time and materials and fixed price contracts . when services are provided on a time and materials basis , the company recognizes revenues at agreed-upon billing rates as services are performed . when services are provided on a fixed fee basis , the company recognizes revenues over time in proportion to the company 's progress towards satisfaction of the performance obligation . in arrangements for managed services , the company 's arrangement is typically a single performance obligation comprised of a series of distinct services that are substantially the same and that have the same pattern of transfer ( i.e . , distinct days of service ) . the company typically recognizes revenue from these services on a straight-line basis over the period services are provided , which is consistent with the timing of services rendered . cloud subscription and software revenue revenue from subscriptions to kandy 's cloud-based technology platform is recognized on a ratable basis over the contractual subscription term beginning on the date that the platform is made available to the customer until the end of the contractual period . payments received in advance of subscription services are recorded as deferred revenue ; revenue recognized for services rendered in advance of payments received are recorded as contract assets . usage fees , when bundled , are billed in advance and recognized on a ratable basis over the contractual subscription term , which is usually the monthly contractual billing period . non-bundled usage fees are recognized as actual usage occurs . when services do not meet

liquidity and capital resources overview historically , the company 's primary sources of liquidity have been cash and cash equivalents , cash flows from operations ( when available ) and cash flows from financing activities , including funding under its credit agreement . the credit agreement is more fully discussed in note 9. from time to time , the company may also choose to access the debt and equity markets to fund acquisitions to diversity its capital sources . the company 's current principal capital requirements are to fund working capital and make investments in line with its business strategy . the credit agreement matures on june 30 , 2021 , and , as amended , provides for maximum borrowings of $ 16.5 million on the line of credit portion with a scheduled reduction of $ 3.5 million in availability under the line of credit as of april 1 , 2021. as amended , the credit agreement provides for a minimum monthly liquidity ( defined as unrestricted cash plus availability under the line of credit ) of $ 3.0 million commencing january 31 , 2021. as of december 31 , 2020 , amounts outstanding under the term loan and the line of credit with comerica bank were $ 5.7 million and $ 7.4 million , respectively . in addition , at december 31 , 2020 , the company had unrestricted and restricted cash of $ 9.9 million and $ 0.6 million , respectively , in its operating bank accounts , and had availability under its line of credit of $ 6.5 million . total equity at december 31 , 2020 was $ 52.5 million . however , as of december 31 , 2020 , the company 's current liabilities exceeded its current assets by $ 18.4 million , primarily as a result of the classification of the components of the credit agreement as current .

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 historically , the company 's primary sources of liquidity have been cash and cash equivalents , cash flows from operations ( when available ) and cash flows from financing activities , including funding under its credit agreement . the credit agreement is more fully discussed in note 9. from time to time , the company may also choose to access the debt and equity markets to fund acquisitions to diversity its capital sources . the company 's current principal capital requirements are to fund working capital and make investments in line with its business strategy . the credit agreement matures on june 30 , 2021 , and , as amended , provides for maximum borrowings of $ 16.5 million on the line of credit portion with a scheduled reduction of $ 3.5 million in availability under the line of credit as of april 1 , 2021. as amended , the credit agreement provides for a minimum monthly liquidity ( defined as unrestricted cash plus availability under the line of credit ) of $ 3.0 million commencing january 31 , 2021. as of december 31 , 2020 , amounts outstanding under the term loan and the line of credit with comerica bank were $ 5.7 million and $ 7.4 million , respectively . in addition , at december 31 , 2020 , the company had unrestricted and restricted cash of $ 9.9 million and $ 0.6 million , respectively , in its operating bank accounts , and had availability under its line of credit of $ 6.5 million . total equity at december 31 , 2020 was $ 52.5 million . however , as of december 31 , 2020 , the company 's current liabilities exceeded its current assets by $ 18.4 million , primarily as a result of the classification of the components of the credit agreement as current . ``` Suspicious Activity Report : in response to covid-19 , we have put into place certain restrictions , requirements and guidelines , to protect the health of our employees and clients , including requiring certain conditions to be met before employees return to the company 's offices . also , to protect the health and safety of our employees , our daily execution has evolved into a largely virtual model and we continue to endeavor to find innovative ways to engage with customers and prospects as we , our customers and prospects endeavor to navigate the current environment . between april 1 , 2020 and september 1 , 2020 , computex reduced the salaries of its employees and we are endeavoring to reduce other operating expenses . we plan to continue to monitor the current environment and may take further actions that may be required by federal , state or local authorities or that we determine are in the interests of our employees , customers , and partners . 24 our business our hardware offerings are sourced from a network of leading manufacturers , and include , data storage , desktops , servers , and other hardware . third party software and maintenance offerings include licensing , licensing management , software solutions and other services . we offer a full suite of value-added services , which typically are delivered as part of a complete technology solution , to help our customers meet their specific needs . our solutions range from configuration services for computer devices to fully integrated solutions such as virtualization , collaboration , security , mobility , data center optimization and cloud computing . we also offer complementary services including installations , warranty services and certain managed services such as remote network and data center monitoring . we believe our software and service offerings are important growth areas for us . our professional and managed services include managed it services , virtualization , storage , networking and data center services . as part of these services , we offer customized solutions for business continuity , back-up and recovery , capacity on-demand , regulatory compliance and data center best practice methodologies as well as infrastructure as a service ( “ iaas ” ) and software as a service ( “ saas ” ) . our customers utilize our solutions to optimize their current and planned investments in it infrastructure and data centers . we believe the breadth of our service offering and our consultative approach to working with our clients distinguishes us from other providers . c loud subscription and software products include subscriptions to the company 's cloud-based technology platform . in addition , we believe our business is well-diversified across verticals , technology solutions offerings and procurement partners from whom we procure products and software for resale . our sales teams consist of seasoned account executives and regionally focused sales support teams who work within assigned territories to provide customized solutions to our customers . our sales teams are supported by industry leading technologists who design end to end solutions and who take projects from design , to implementation , to management . we boast an extensive network of oems and distributors which allow us to direct-sell a diverse selection of products and software to our ever-growing customer base , as packaged software or as licensed products and services . we have developed an infrastructure that enables us to deliver our it solutions and service agnostic as to technology platform and location through a flexible , customer-focused delivery model which spans three datacenter environments ( customer-owned , co-location , and the cloud ) . by optimizing our customers ' use of secure , energy efficient and reliable data centers combined with a comprehensive suite of related it infrastructure services , we are able to offer our customers highly customized solutions to address their needs for data center availability , data management , data security , business continuity disaster recovery and data center consolidation , as well as a variety of other related managed services . key trends affecting our results of operations the following are key trends that we believe can impact our results of operations : ● the increasing need , by organizations , for third-party service providers , such as computex technology solutions , to manage significant aspects of the it environment ● the increasing need , by organizations , to reduce the number of solutions providers they do business with to improve supply chain and internal efficiencies , enhance accountability , improve supplier management practices , and reduce costs ● the lack of sufficient internal it resources at mid-sized and large enterprises , and the scarcity of it personnel in certain high-demand disciplines ● disruptive technologies that are creating complexity and challenges for customers and vendors ● the increasing sophistication and incidences of it security breaches and cyber-attacks ● the it decision-making shift by some companies , whereby it decision-making is shifting from it departments to line-of-business personnel , which is changing the customer engagement model and types of consultative services required to fulfill the needs of customers ● the recognition that certain it services provide the opportunity of funding via recurring payments over a period of time , rather than large upfront payments ● the increasing use of multi-cloud strategies , whereby cloud architectures and cloud-enabled frameworks , whether public , private , or hybrid , provide the core foundation of modern it ● the explosive growth in remote workforce needs . 25 growth strategy the acquisition of kandy serves to complement the services provided by computex by giving us the opportunity to provide a full suite of ucaas , cpaas , and ccaas products to serve the rapidly growing cloud communications market . customers today demand a highly reliable , secure , and scalable communications platform along with a world class customer experience . story_separator_special_tag when an arrangement contains more than one performance obligation , the company will allocate the transaction price to each performance obligation on a relative standalone selling price basis . the company utilizes the observable price of goods and services when they are sold separately to similar customers in order to estimate standalone selling price . hardware revenue from the sale of hardware is recognized on a gross basis , as the company is deemed to be acting as the principal in these transactions . the selling price to the customer is recorded as revenue and the acquisition cost is recorded within cost of revenue . the company recognizes revenue from these transactions when control has passed to the customer , which is usually upon shipment . in some instances , the customer agrees to buy the product from the company , but requests delivery at a later date , commonly known as a bill-and-hold arrangement . for these transactions , the company deems that control passes to the customer when the product is ready for delivery . the company classifies such products as products ready for delivery when the customer is in possession of a signed agreement , the significant risk and rewards for the product has passed to the customer , the customer has the ability to direct the asset , the product has been set aside specifically for the customer and the company can not redirect the product for the benefit of another customer . in drop-shipment arrangements , whereby the company arranges for the vendor to deliver the product directly to the customer without the inventory first being held at its warehouses , the company considers itself to be the principal and therefore , recognizes the related revenue on a gross basis . third party software revenues from most software license sales are recognized as a single performance obligation on a net basis , as the company is deemed to be acting as an agent in these transactions . revenues in these instances are recognized at the point the software license is delivered to the customer . generally , software licenses are sold with accompanying third-party delivered software support , which is a product that allows customers to upgrade , at no additional cost , to the latest technology if new capabilities are introduced during the period that the software support is in effect . the company evaluates whether the software support is a separate performance obligation by assessing whether the third-party delivered software support is critical or essential to the core functionality of the software itself . this involves considering whether the software provides its original intended functionality to the customer without the updates , whether the customer would ascribe a higher value to the upgrades versus the up-front deliverable , whether the customer would expect frequent intelligence updates to the software ( such as updates that maintain the original functionality ) , and whether the customer chooses to not delay or always install upgrades . if the company determines that the accompanying third-party delivered software support is critical or essential to the core functionality of the software license , the software license and the accompanying third-party delivered software support are recognized as a single performance obligation . the value of the product is primarily based on the accompanying support delivered by a third-party , and therefore the company is acting as an agent in these transactions and therefore , recognizes the associated revenue on a net basis at the point that the associated software license is delivered to the customer . 32 third party maintenance the company is deemed to be the agent in the sale of third-party maintenance , software support and services , as the third-party controls the service until it is transferred to the customer . in these instances , the company recognizes the revenue on a net basis equal to the selling price to the customer less the acquisition costs . such revenue is recognized when the customer and vendor accept the terms and conditions of the arrangement . managed and professional services professional services offered by the company include assessments , project management , staging , configuration , customer training and integration . managed services offerings range from monitoring and notification to a fully outsourced network management solution . in these arrangements , the company satisfies the performance obligations and recognizes revenue over time . such professional services are provided under both time and materials and fixed price contracts . when services are provided on a time and materials basis , the company recognizes revenues at agreed-upon billing rates as services are performed . when services are provided on a fixed fee basis , the company recognizes revenues over time in proportion to the company 's progress towards satisfaction of the performance obligation . in arrangements for managed services , the company 's arrangement is typically a single performance obligation comprised of a series of distinct services that are substantially the same and that have the same pattern of transfer ( i.e . , distinct days of service ) . the company typically recognizes revenue from these services on a straight-line basis over the period services are provided , which is consistent with the timing of services rendered . cloud subscription and software revenue revenue from subscriptions to kandy 's cloud-based technology platform is recognized on a ratable basis over the contractual subscription term beginning on the date that the platform is made available to the customer until the end of the contractual period . payments received in advance of subscription services are recorded as deferred revenue ; revenue recognized for services rendered in advance of payments received are recorded as contract assets . usage fees , when bundled , are billed in advance and recognized on a ratable basis over the contractual subscription term , which is usually the monthly contractual billing period . non-bundled usage fees are recognized as actual usage occurs . when services do not meet

in the surgical & sports medicine market , we focus on products that support the healing of musculoskeletal injuries , including degenerative conditions such as osteoarthritis and tendonitis . we are leveraging our regenerative medicine capabilities in this attractive , adjacent market . our surgical & sports medicine products include renu for in-office joint and tendon applications ; nucel for bony fusion in the spine and extremities ; nushield and affinity for surgical application in targeted soft tissue repairs ; and puraply am for surgical treatment of open wounds . we currently sell these products through independent agencies and our growing direct sales force . we generated net revenue of $ 261.0 million , $ 193.4 million and $ 198.5 million for the years ended december 31 , 2019 , 2018 and 2017 , respectively . we had a net loss of $ 40.5 million , $ 64.8 million and $ 8.4 million for the years ended december 31 , 2019 , 2018 and 2017 , respectively . we expect to incur operating losses for the foreseeable future as we expend resources as part of our efforts to grow our organization to support the 59 planned expansion of our business . as of december 31 , 2019 , we had an accumulated deficit of $ 171.0 million . our primary sources of capital to date have been from sales of our products , borrowings from related parties and institutional lenders and proceeds from the sale of our common stock . we operate in one segment of regenerative medicine . items affecting comparability nutech medical acquisition . on march 18 , 2017 , we entered into an agreement and plan of merger pursuant to which we acquired all of the outstanding shares of capital stock of nutech medical , inc. ( “nutech medical” ) for aggregate consideration consisting of $ 12.0 million in cash at closing , $ 7.5 million of deferred acquisition consideration , 137,543 fully vested common stock options and 3,642,746 shares of our class a common stock . upon the closing of the merger , nutech medical merged with and into prime merger sub , llc ( a wholly-owned subsidiary organized for the purpose of this transaction ) , with prime merger sub , llc surviving the merger as our wholly-owned subsidiary . the results of operations for nutech medical are included in our consolidated financial statements since march 24 , 2017 , which was the closing date of the merger . variable interest entity ( vie ) deconsolidation . we have historically consolidated the accounts of dan road associates , llc , 85 dan road associates , llc , and 65 dan road associates , llc , as variable interest entities . we refer to these variable interest entities collectively as the “real estate entities.” the real estate entities , which are controlled by certain of our affiliates , are special purpose entities that hold real estate that is leased by us . we do not hold any capital stock of the real estate entities . based on the nature of the leases and the mortgages held by these affiliates , we determined that the real estate entities were variable interest entities , which required consolidation . following the removal of certain personal guarantees provided by these affiliates in respect of mortgage loans related to the property held by the real estate entities , we determined that the real estate entities no longer met the definition of variable interest entities and we deconsolidated them from our financial statements as of june 1 , 2017. avista merger . on december 10 , 2018 , avista healthcare public acquisition corp. , our predecessor company ( “ahpac” ) , consummated the previously announced business combination pursuant to that certain agreement and plan of merger , dated as of august 17 , 2018 ( as amended , the “avista merger agreement” ) , by and among ahpac , avista healthcare merger sub , inc. , a delaware corporation and a direct wholly-owned subsidiary of ahpac ( “avista merger sub” ) and organogenesis inc. , a delaware corporation ( “organogenesis inc.” ) . as a result of the transactions contemplated by the avista merger agreement , avista merger sub merged with and into organogenesis inc. , with organogenesis inc. surviving the merger ( the “avista merger” ) . in addition , in connection with the business combination , ahpac redomesticated as a delaware corporation ( the “domestication” ) . after the domestication , ahpac changed its name to “organogenesis holdings inc.” as a result of the avista merger , organogenesis inc. became a wholly-owned subsidiary of organogenesis holdings inc. for periods prior to the closing of the avista merger on december 10 , 2018 , the disclosure in management 's discussion and analysis of financial condition and results of operations has been updated to give effect to the avista merger . management 's use of non-gaap measures our management uses financial measures that are not in accordance with generally accepted accounting principles in the united states , or gaap , in addition to financial measures in accordance with gaap to evaluate our operating results . these non-gaap financial measures should be considered supplemental to , and not a substitute for , our reported financial results prepared in accordance with gaap . our management uses adjusted ebitda to evaluate our operating performance and trends and make planning decisions . our management believes adjusted ebitda helps identify underlying trends in our business that could otherwise be masked by the effect of the items that we exclude . accordingly , we believe that adjusted ebitda provides useful information to investors and others in understanding and evaluating our operating results , enhancing the overall understanding of our past performance and future prospects , and allowing for greater transparency with respect to key financial metrics used by our management in its financial and operational decision-making . story_separator_special_tag for the year ended december 31 , 2019 , net revenue from our surgical & sports medicine products increased by $ 11.1 million , or 38 % , as compared to the year ended december 31 , 2018. the increase in surgical & sports medicine net revenue was primarily due to the expansion of the sales force and penetration of existing and new customer accounts . for the year ended december 31 , 2018 , net revenue from our advanced wound care products decreased by $ 14.6 million or 8 % , as compared to the year ended december 31 , 2017. our decrease in advanced wound care net revenue was primarily attributable to the loss of pass-through reimbursement status for puraply during the first nine months of 2018. this decrease was partially offset by the introduction of amniotic products acquired from nutech medical . for the year ended december 31 , 2018 , net revenue from our surgical & sports medicine products increased by $ 9.5 million or 48 % , as compared to the year ended december 31 , 2017. the increase in surgical & sports medicine net revenue was primarily due to the acquisition of nutech medical on march 24 , 2017 as the company recorded a full year of revenue related to nutech medical in the year ended december 31 , 2018. included within net revenue is puraply revenue of $ 126.8 million , $ 69.8 million , and $ 109.1 million for the years ended december 31 , 2019 , 2018 and 2017 , respectively . cost of goods sold , gross profit and gross margin replace_table_token_4_th 65 for the year ended december 31 , 2019 , cost of goods sold increased by $ 7.1 million , or 10 % , as compared to the year ended december 31 , 2018. the increase in cost of goods sold was primarily due to increased unit volumes , additional manufacturing and quality control headcount , and facilities improvement projects . for the year ended december 31 , 2019 , gross profit increased by $ 60.4 million or 48 % , as compared to the year ended december 31 , 2018. the increase in gross profit resulted primarily from increased sales volume due to the strength in our advanced wound care and surgical & sports medicine products , puraply regaining pass-through reimbursement status for the 2-year period effective october 1 , 2018 , and the resulting higher margins realized as a result of manufacturing efficiencies associated with our advanced wound care products . for the year ended december 31 , 2018 , cost of goods sold increased by $ 7.6 million , or 12 % , as compared to the year ended december 31 , 2017. the increase in cost of goods sold was primarily due to increased unit volumes and additional manufacturing and quality control headcount related to a full year of nutech medical product sales . for the year ended december 31 , 2018 , gross profit decreased by 12.6 million or 9 % , as compared to the year ended december 31 , 2017. the decrease in gross profit resulted primarily from the decrease in our advanced wound care net revenue driven by the loss of pass-through reimbursement status for puraply during the first nine months of 2018 , partially offset by our increase in revenue from our surgical & sports medicine products . selling , general and administrative expenses the following table presents selling , general and administrative expenses and the percentage relationship to total net revenue for the periods indicated : replace_table_token_5_th for the year ended december 31 , 2019 , selling , general and administrative expenses increased by $ 37.7 million , or 23 % , as compared to the year ended december 31 , 2018. the increase in selling , general and administrative expenses is primarily due to an increase of $ 30.6 million related to additional headcount , primarily in our direct sales force and increased sales commissions due to increased sales , an increase of $ 2.6 million in legal , consulting fees and other costs associated with the ongoing operations of our business , an increase of $ 2.4 million in amortization associated with intangible assets amortized using the economic benefits method , an increase of $ 1.7 million associated with marketing and promotional materials for our products , and an increase of $ 1.7 million in royalties attributable to certain product sales . these increases are partially offset by a decrease of $ 1.5 million associated with transaction advisory fees incurred in 2018. we expect our selling , general and administrative expenses to continue to increase throughout 2020. for the year ended december 31 , 2018 , selling , general and administrative expenses increased by $ 28.2 million , or 21 % , as compared to the year ended december 31 , 2017. the increase in selling , general and administrative expenses is primarily due to a $ 25.2 million increase related to additional headcount , primarily in our direct sales force , an increase of $ 1.6 million in amortization as a result of the nutech medical acquisition , an increase of $ 1.7 million associated with marketing and promotional materials for our products , an increase of $ 1.5 million associated with transaction advisory fees , and an increase of $ 0.7 million related to the expiration of the forfeiture right asset . these increases are partially offset by a decrease of $ 1.4 million in legal and consulting fees and costs associated with other strategic alternatives and the ongoing operations of our business and a decrease of $ 0.8 million in royalties attributable to certain product sales . 66 research and development expenses the following table presents research and development expenses and the percentage relationship to total net revenue for the periods indicated : replace_table_token_6_th for the year ended december 31 , 2019 , research and development expenses increased by $ 4.1 million ,

cash flows the following table summarizes our cash flows for each of the periods presented : replace_table_token_11_th operating activities during the year ended december 31 , 2019 , net cash used in operating activities was $ 33.5 million , resulting from our net loss of $ 40.5 million and net cash used in connection with changes in our operating assets and liabilities of $ 9.7 million partially offset by non-cash charges of $ 16.6 million . net cash used in connection with changes in our operating assets and liabilities includes an increase in inventory of $ 11.1 million , an increase in accounts receivable of $ 4.7 million , an increase in prepaid expenses and other current assets of $ 0.6 million and a decrease in other liabilities of $ 0.9 million , all of which were partially offset by an increase in accounts payable of $ 4.7 million and an increase of accrued expenses and other current liabilities of $ 2.9 million . during the year ended december 31 , 2018 , net cash used in operating activities was $ 60.6 million , resulting from our net loss of $ 64.8 million and net cash used in connection with changes in our operating assets and liabilities of $ 16.7 million partially offset by non-cash charges of $ 20.9 million . net cash used in connection with changes in our operating assets and liabilities includes a decrease in accrued interest on affiliate debt of $ 9.2 million , an increase in accounts receivable of $ 7.1 million , an increase in inventory of $ 1.5 million , an increase in prepaid expenses and other current assets of $ 1.4 million , all of which were partially offset by an increase in accrued expenses and other liabilities of $ 2.7 million . during the year ended december 31 , 2017 , net cash used in operating activities was $ 3.5 million , resulting from our net loss of $ 7.5 million and net cash used in connection with changes in our operating assets and liabilities of $ 1.2 million , partially offset by non-cash charges of $ 5.2 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 cash flows for each of the periods presented : replace_table_token_11_th operating activities during the year ended december 31 , 2019 , net cash used in operating activities was $ 33.5 million , resulting from our net loss of $ 40.5 million and net cash used in connection with changes in our operating assets and liabilities of $ 9.7 million partially offset by non-cash charges of $ 16.6 million . net cash used in connection with changes in our operating assets and liabilities includes an increase in inventory of $ 11.1 million , an increase in accounts receivable of $ 4.7 million , an increase in prepaid expenses and other current assets of $ 0.6 million and a decrease in other liabilities of $ 0.9 million , all of which were partially offset by an increase in accounts payable of $ 4.7 million and an increase of accrued expenses and other current liabilities of $ 2.9 million . during the year ended december 31 , 2018 , net cash used in operating activities was $ 60.6 million , resulting from our net loss of $ 64.8 million and net cash used in connection with changes in our operating assets and liabilities of $ 16.7 million partially offset by non-cash charges of $ 20.9 million . net cash used in connection with changes in our operating assets and liabilities includes a decrease in accrued interest on affiliate debt of $ 9.2 million , an increase in accounts receivable of $ 7.1 million , an increase in inventory of $ 1.5 million , an increase in prepaid expenses and other current assets of $ 1.4 million , all of which were partially offset by an increase in accrued expenses and other liabilities of $ 2.7 million . during the year ended december 31 , 2017 , net cash used in operating activities was $ 3.5 million , resulting from our net loss of $ 7.5 million and net cash used in connection with changes in our operating assets and liabilities of $ 1.2 million , partially offset by non-cash charges of $ 5.2 million . ``` Suspicious Activity Report : in the surgical & sports medicine market , we focus on products that support the healing of musculoskeletal injuries , including degenerative conditions such as osteoarthritis and tendonitis . we are leveraging our regenerative medicine capabilities in this attractive , adjacent market . our surgical & sports medicine products include renu for in-office joint and tendon applications ; nucel for bony fusion in the spine and extremities ; nushield and affinity for surgical application in targeted soft tissue repairs ; and puraply am for surgical treatment of open wounds . we currently sell these products through independent agencies and our growing direct sales force . we generated net revenue of $ 261.0 million , $ 193.4 million and $ 198.5 million for the years ended december 31 , 2019 , 2018 and 2017 , respectively . we had a net loss of $ 40.5 million , $ 64.8 million and $ 8.4 million for the years ended december 31 , 2019 , 2018 and 2017 , respectively . we expect to incur operating losses for the foreseeable future as we expend resources as part of our efforts to grow our organization to support the 59 planned expansion of our business . as of december 31 , 2019 , we had an accumulated deficit of $ 171.0 million . our primary sources of capital to date have been from sales of our products , borrowings from related parties and institutional lenders and proceeds from the sale of our common stock . we operate in one segment of regenerative medicine . items affecting comparability nutech medical acquisition . on march 18 , 2017 , we entered into an agreement and plan of merger pursuant to which we acquired all of the outstanding shares of capital stock of nutech medical , inc. ( “nutech medical” ) for aggregate consideration consisting of $ 12.0 million in cash at closing , $ 7.5 million of deferred acquisition consideration , 137,543 fully vested common stock options and 3,642,746 shares of our class a common stock . upon the closing of the merger , nutech medical merged with and into prime merger sub , llc ( a wholly-owned subsidiary organized for the purpose of this transaction ) , with prime merger sub , llc surviving the merger as our wholly-owned subsidiary . the results of operations for nutech medical are included in our consolidated financial statements since march 24 , 2017 , which was the closing date of the merger . variable interest entity ( vie ) deconsolidation . we have historically consolidated the accounts of dan road associates , llc , 85 dan road associates , llc , and 65 dan road associates , llc , as variable interest entities . we refer to these variable interest entities collectively as the “real estate entities.” the real estate entities , which are controlled by certain of our affiliates , are special purpose entities that hold real estate that is leased by us . we do not hold any capital stock of the real estate entities . based on the nature of the leases and the mortgages held by these affiliates , we determined that the real estate entities were variable interest entities , which required consolidation . following the removal of certain personal guarantees provided by these affiliates in respect of mortgage loans related to the property held by the real estate entities , we determined that the real estate entities no longer met the definition of variable interest entities and we deconsolidated them from our financial statements as of june 1 , 2017. avista merger . on december 10 , 2018 , avista healthcare public acquisition corp. , our predecessor company ( “ahpac” ) , consummated the previously announced business combination pursuant to that certain agreement and plan of merger , dated as of august 17 , 2018 ( as amended , the “avista merger agreement” ) , by and among ahpac , avista healthcare merger sub , inc. , a delaware corporation and a direct wholly-owned subsidiary of ahpac ( “avista merger sub” ) and organogenesis inc. , a delaware corporation ( “organogenesis inc.” ) . as a result of the transactions contemplated by the avista merger agreement , avista merger sub merged with and into organogenesis inc. , with organogenesis inc. surviving the merger ( the “avista merger” ) . in addition , in connection with the business combination , ahpac redomesticated as a delaware corporation ( the “domestication” ) . after the domestication , ahpac changed its name to “organogenesis holdings inc.” as a result of the avista merger , organogenesis inc. became a wholly-owned subsidiary of organogenesis holdings inc. for periods prior to the closing of the avista merger on december 10 , 2018 , the disclosure in management 's discussion and analysis of financial condition and results of operations has been updated to give effect to the avista merger . management 's use of non-gaap measures our management uses financial measures that are not in accordance with generally accepted accounting principles in the united states , or gaap , in addition to financial measures in accordance with gaap to evaluate our operating results . these non-gaap financial measures should be considered supplemental to , and not a substitute for , our reported financial results prepared in accordance with gaap . our management uses adjusted ebitda to evaluate our operating performance and trends and make planning decisions . our management believes adjusted ebitda helps identify underlying trends in our business that could otherwise be masked by the effect of the items that we exclude . accordingly , we believe that adjusted ebitda provides useful information to investors and others in understanding and evaluating our operating results , enhancing the overall understanding of our past performance and future prospects , and allowing for greater transparency with respect to key financial metrics used by our management in its financial and operational decision-making . story_separator_special_tag for the year ended december 31 , 2019 , net revenue from our surgical & sports medicine products increased by $ 11.1 million , or 38 % , as compared to the year ended december 31 , 2018. the increase in surgical & sports medicine net revenue was primarily due to the expansion of the sales force and penetration of existing and new customer accounts . for the year ended december 31 , 2018 , net revenue from our advanced wound care products decreased by $ 14.6 million or 8 % , as compared to the year ended december 31 , 2017. our decrease in advanced wound care net revenue was primarily attributable to the loss of pass-through reimbursement status for puraply during the first nine months of 2018. this decrease was partially offset by the introduction of amniotic products acquired from nutech medical . for the year ended december 31 , 2018 , net revenue from our surgical & sports medicine products increased by $ 9.5 million or 48 % , as compared to the year ended december 31 , 2017. the increase in surgical & sports medicine net revenue was primarily due to the acquisition of nutech medical on march 24 , 2017 as the company recorded a full year of revenue related to nutech medical in the year ended december 31 , 2018. included within net revenue is puraply revenue of $ 126.8 million , $ 69.8 million , and $ 109.1 million for the years ended december 31 , 2019 , 2018 and 2017 , respectively . cost of goods sold , gross profit and gross margin replace_table_token_4_th 65 for the year ended december 31 , 2019 , cost of goods sold increased by $ 7.1 million , or 10 % , as compared to the year ended december 31 , 2018. the increase in cost of goods sold was primarily due to increased unit volumes , additional manufacturing and quality control headcount , and facilities improvement projects . for the year ended december 31 , 2019 , gross profit increased by $ 60.4 million or 48 % , as compared to the year ended december 31 , 2018. the increase in gross profit resulted primarily from increased sales volume due to the strength in our advanced wound care and surgical & sports medicine products , puraply regaining pass-through reimbursement status for the 2-year period effective october 1 , 2018 , and the resulting higher margins realized as a result of manufacturing efficiencies associated with our advanced wound care products . for the year ended december 31 , 2018 , cost of goods sold increased by $ 7.6 million , or 12 % , as compared to the year ended december 31 , 2017. the increase in cost of goods sold was primarily due to increased unit volumes and additional manufacturing and quality control headcount related to a full year of nutech medical product sales . for the year ended december 31 , 2018 , gross profit decreased by 12.6 million or 9 % , as compared to the year ended december 31 , 2017. the decrease in gross profit resulted primarily from the decrease in our advanced wound care net revenue driven by the loss of pass-through reimbursement status for puraply during the first nine months of 2018 , partially offset by our increase in revenue from our surgical & sports medicine products . selling , general and administrative expenses the following table presents selling , general and administrative expenses and the percentage relationship to total net revenue for the periods indicated : replace_table_token_5_th for the year ended december 31 , 2019 , selling , general and administrative expenses increased by $ 37.7 million , or 23 % , as compared to the year ended december 31 , 2018. the increase in selling , general and administrative expenses is primarily due to an increase of $ 30.6 million related to additional headcount , primarily in our direct sales force and increased sales commissions due to increased sales , an increase of $ 2.6 million in legal , consulting fees and other costs associated with the ongoing operations of our business , an increase of $ 2.4 million in amortization associated with intangible assets amortized using the economic benefits method , an increase of $ 1.7 million associated with marketing and promotional materials for our products , and an increase of $ 1.7 million in royalties attributable to certain product sales . these increases are partially offset by a decrease of $ 1.5 million associated with transaction advisory fees incurred in 2018. we expect our selling , general and administrative expenses to continue to increase throughout 2020. for the year ended december 31 , 2018 , selling , general and administrative expenses increased by $ 28.2 million , or 21 % , as compared to the year ended december 31 , 2017. the increase in selling , general and administrative expenses is primarily due to a $ 25.2 million increase related to additional headcount , primarily in our direct sales force , an increase of $ 1.6 million in amortization as a result of the nutech medical acquisition , an increase of $ 1.7 million associated with marketing and promotional materials for our products , an increase of $ 1.5 million associated with transaction advisory fees , and an increase of $ 0.7 million related to the expiration of the forfeiture right asset . these increases are partially offset by a decrease of $ 1.4 million in legal and consulting fees and costs associated with other strategic alternatives and the ongoing operations of our business and a decrease of $ 0.8 million in royalties attributable to certain product sales . 66 research and development expenses the following table presents research and development expenses and the percentage relationship to total net revenue for the periods indicated : replace_table_token_6_th for the year ended december 31 , 2019 , research and development expenses increased by $ 4.1 million ,

the shelf registration statement was automatically effective upon filing and superseded and replaced our previous shelf registration statement declared effective on april 14 , 2015 , which was due to expire on april 14 , 2018 . 39 2017 strategic transactions during 2017 , we completed the following strategic transactions that had an impact and will continue to have an impact on our results of operations : acquisition of blue tree systems limited on october 2 , 2017 , we purchased all of the issued share capital of blue tree for an aggregate consideration of ( i ) $ 34.3 million in cash ; ( ii ) issuance of 191,022 shares of our common stock , valued at $ 10.47 per share , which reflected our common stock closing price one business day prior to the closing date ; and ( iii ) additional consideration of up to $ 5.8 million , subject to certain operational milestones . the blue tree acquisition solidified our transportation product portfolio by adding truck in-cab and refrigerated fleet vehicle solutions to our cargo solution . for additional information regarding the blue tree acquisition , refer to “ note 3 — acquisitions ” in our audited consolidated financial statements included in part ii , item 8 of this annual report on form 10-k. acquisition of inthinc , inc. on june 9 , 2017 , we completed the acquisition of substantially all of the assets of inthinc for an aggregate consideration of ( i ) $ 34.2 million in cash ; ( ii ) issuance of 76,796 shares of our common stock , valued at $ 9.95 per share ; and ( iii ) additional consideration of up to $ 25.0 million , subject to certain operational milestones . the acquisition of inthinc allows us to offer fleet management and driver safety solutions to enterprises and industrial companies worldwide , who operate large commercial vehicle fleets . for additional information regarding the inthinc acquisition , refer to “ note 3 — acquisitions ” in our audited consolidated financial statements included in part ii , item 8 of this annual report on form 10-k. senior secured notes on april 10 , 2017 , we issued $ 250.0 million aggregate principal amount of 8.0 % senior secured notes due 2024. the senior secured notes were issued pursuant to an indenture , dated as of april 10 , 2017 , among us , the guarantors and u.s. bank national association , as trustee and collateral agent . the senior secured notes are unconditionally guaranteed on a senior secured basis by the guarantors and are secured on a first priority basis by ( i ) pledges of capital stock of certain of our directly- and indirectly-owned subsidiaries ; and ( ii ) substantially all of our and our guarantors ' other property and assets , to the extent a first priority security interest is able to be granted or perfected therein , and subject , in all cases , to certain specified exceptions , and an intercreditor agreement with the collateral agent for our revolving credit facility described below . interest payments are due on the senior secured notes semi-annually in arrears on april 1 and october 1 , beginning october 1 , 2017. on april 10 , 2017 , a portion of the proceeds of the issuance of the senior secured notes was used to repay in full our outstanding obligations under , and to terminate our $ 150.0 million outstanding secured credit facilities incurred pursuant to the credit agreement entered into on september 30 , 2014 , resulting in an early payment fee of $ 1.5 million and an additional expense associated with the remaining unamortized debt issuance cost of $ 2.4 million . revolving credit facility on december 18 , 2017 , we and certain of our subsidiaries entered into a revolving credit agreement with jpmorgan chase , as administrative agent and collateral agent . the revolving credit agreement provides for a revolving credit facility in an aggregate principal amount of up to $ 25.0 million for working capital and general corporate purposes and matures on december 18 , 2022. the revolving credit facility will bear interest at an alternative base rate or an adjusted libor , plus an applicable margin of 1.50 % in the case of alternative base rate loans and 2.50 % in the case of adjusted libor loans . the revolving credit facility is secured by a first priority security interest in substantially all of our and our subsidiaries ' assets under a security agreement among the company , the applicable subsidiaries and jpmorgan chase , subject to an intercreditor agreement with the indenture trustee for the senior secured notes . the revolving credit facility has no scheduled principal amortization until the maturity date . subject to the terms set forth in the revolving credit agreement , we may borrow , repay and reborrow amounts under the revolving credit facility at any time prior to the maturity date . 40 revenues we derive service revenues primarily from monthly fees for industrial iot connectivity services that consist of subscriber-based and recurring monthly usage fees for each subscriber communicator or sim activated for use on our satellite network , as well as other satellite networks and cellular wireless networks that we resell to our customers ( i.e . , our mcps , mcas and direct customers ) . usage fees are generally based upon the data transmitted by a customer and the overall number of subscriber communicators and or sims activated by each customer and whether we provide services through our value-added portal . service revenues are recognized on an accrual basis , as services are rendered , or on a cash basis , if collection from the customer is not reasonably assured at the time the service is provided . story_separator_special_tag acquisition-related and integration costs year ended december 31 , change ( in thousands ) 2018 2017 dollars % acquisition-related and integration costs $ 1,624 $ 3,315 $ ( 1,691 ) ( 51.0 ) % acquisition-related and integration costs include professional services expenses and identifiable integration costs directly attributable to our acquisitions . the decrease in acquisition-related and integration costs reflected lower acquisition and integration activity in the 2018 period compared to the prior year period . other income ( expense ) other income ( expense ) is comprised primarily of interest expense , foreign exchange gains and losses , interest income from our cash and cash equivalents , which can consist of u.s. treasuries , interest bearing instruments , and our previously held investments in marketable securities consisting of u.s. government and agency obligations , corporate obligations and fdic-insured certificates of deposit classified as held to maturity and interest income related to capital leases . replace_table_token_13_th the decrease in other expense for the year ended december 31 , 2018 , compared to the prior year , was primarily due to the loss on extinguishment of our secured credit facilities with macquarie caf llc incurred in the quarter ended june 30 , 2017 and an increase in interest income mainly attributable to our lease receivable associated with customer product financing arrangements , offset , in part , by increased interest expense as a result of higher outstanding principal balances and higher interest rates associated with our senior secured notes issued on april 10 , 2017. we believe our foreign exchange exposure is limited as a majority of our revenue is collected in u.s. dollars . income taxes in 2018 , we recorded income taxes of $ 4.7 million , which primarily included foreign income taxes of $ 4.0 million from income generated by our international operations and $ 0.7 million of income tax benefit related to amortization of tax goodwill generated from acquisitions . in 2017 , we recorded income taxes of $ ( 0.4 ) million , which primarily included foreign income taxes of $ 1.7 million from income generated by our international operations and $ ( 2.1 ) million of income tax benefit related to the impact of the tax cuts and jobs act of 2017 on the amortization of tax goodwill generated from our acquisitions . net loss for the year ended december 31 , 2018 , we had a net loss of $ 25.9 million compared to a net loss of $ 61.2 million for the year ended december 31 , 2017. the 2018 period included a full year of increased interest expense arising from our senior secured notes issued in april 2017 and increased sg & a and product development costs , while the 2017 period included the $ 31.2 million satellite impairment loss and the $ 3.9 million loss on extinguishment of debt related to our secured credit facilities . noncontrolling interests noncontrolling interests relate to earnings and losses attributable to noncontrolling shareholders . 47 net loss attributable to orbcomm inc. for the year ended december 31 , 2018 , we had a net loss attributable to our company of $ 26.2 million , compared to a net loss of $ 61.3 million for the year ended december 31 , 2017. for both of the years ended december 31 , 2018 and 2017 , the net loss attributable to our common stockholders considers dividends of less than $ 0.1 million , paid in shares of the series a convertible preferred stock . story_separator_special_tag interest payments on our debt facilities and fund growth initiatives and capital expenditures . on april 10 , 2017 , we issued $ 250.0 million aggregate principal amount of 8.0 % senior secured notes due 2024. the senior secured notes were issued pursuant to an indenture , dated as of april 10 , 2017 , among us , the guarantors and u.s. bank national association , as trustee and collateral agent . the senior secured notes are unconditionally guaranteed on a senior secured basis by the guarantors , and are secured on a first priority basis by ( i ) pledges of capital stock of certain of our directly- and indirectly-owned subsidiaries ; and ( ii ) substantially all of our and our guarantors ' other property and assets , to the extent a first priority security interest is able to be granted or perfected therein , and subject , in all cases , to certain specified exceptions , and an intercreditor agreement with the collateral agent for our revolving credit facility described below . interest payments are due on the senior secured notes semi-annually in arrears on april 1 and october 1 , beginning october 1 , 2017. we have the option to redeem some or all of the senior secured notes at any time on or after april 1 , 2020 , at redemption prices set forth in the indenture plus accrued and unpaid interest , if any , to the date of redemption . we also have the option to redeem some or all of the senior secured notes at any time before april 1 , 2020 at a redemption price of 100 % of the principal amount of the senior secured notes to be redeemed , plus a “ make-whole ” premium and accrued and unpaid interest , if any , to the date of redemption . in addition , at any time before april 1 , 2020 , we may redeem up to 35 % of the aggregate principal amount of the senior secured notes to be redeemed , plus accrued and unpaid interest , if any , to the date of redemption , with the proceeds from certain equity issuances . the indenture contains covenants that , among other things , limit us and our restricted subsidiaries ' ability to : ( i ) incur or guarantee additional indebtedness ; ( ii ) pay dividends , make other distributions or repurchase or redeem capital stock ;

liquidity and capital resources overview our liquidity requirements arise from our working capital needs , our obligations to make scheduled payments of interest on our indebtedness and our need to fund capital expenditures to support our current operations and to facilitate growth and expansion . we have financed our operations and expansion with cash flows from operating activities , sales of our common stock through public offerings and private placements of debt . at december 31 , 2019 , we had an accumulated deficit of $ 210.9 million . our primary sources of liquidity consist of cash and cash equivalents totaling $ 54.3 million and an unused revolving credit facility under the revolving credit agreement , as described below , available for use for working capital and general business purposes , which we believe will be sufficient to provide working capital , make interest payments and make capital expenditures to support operations and facilitate growth and expansion for the next twelve months . operating activities cash provided by our operating activities in 2019 was $ 30.1 million resulting from a net loss of $ 18.1 million and cash used by working capital of $ 10.3 million , offset by non-cash items including $ 50.7 million for depreciation and amortization and $ 6.2 million for stock-based compensation . working capital activities primarily consisted of an increase in accounts receivable of $ 5.2 million related to timing of collections and an increase of $ 5.6 million in inventories .

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 , our obligations to make scheduled payments of interest on our indebtedness and our need to fund capital expenditures to support our current operations and to facilitate growth and expansion . we have financed our operations and expansion with cash flows from operating activities , sales of our common stock through public offerings and private placements of debt . at december 31 , 2019 , we had an accumulated deficit of $ 210.9 million . our primary sources of liquidity consist of cash and cash equivalents totaling $ 54.3 million and an unused revolving credit facility under the revolving credit agreement , as described below , available for use for working capital and general business purposes , which we believe will be sufficient to provide working capital , make interest payments and make capital expenditures to support operations and facilitate growth and expansion for the next twelve months . operating activities cash provided by our operating activities in 2019 was $ 30.1 million resulting from a net loss of $ 18.1 million and cash used by working capital of $ 10.3 million , offset by non-cash items including $ 50.7 million for depreciation and amortization and $ 6.2 million for stock-based compensation . working capital activities primarily consisted of an increase in accounts receivable of $ 5.2 million related to timing of collections and an increase of $ 5.6 million in inventories . ``` Suspicious Activity Report : the shelf registration statement was automatically effective upon filing and superseded and replaced our previous shelf registration statement declared effective on april 14 , 2015 , which was due to expire on april 14 , 2018 . 39 2017 strategic transactions during 2017 , we completed the following strategic transactions that had an impact and will continue to have an impact on our results of operations : acquisition of blue tree systems limited on october 2 , 2017 , we purchased all of the issued share capital of blue tree for an aggregate consideration of ( i ) $ 34.3 million in cash ; ( ii ) issuance of 191,022 shares of our common stock , valued at $ 10.47 per share , which reflected our common stock closing price one business day prior to the closing date ; and ( iii ) additional consideration of up to $ 5.8 million , subject to certain operational milestones . the blue tree acquisition solidified our transportation product portfolio by adding truck in-cab and refrigerated fleet vehicle solutions to our cargo solution . for additional information regarding the blue tree acquisition , refer to “ note 3 — acquisitions ” in our audited consolidated financial statements included in part ii , item 8 of this annual report on form 10-k. acquisition of inthinc , inc. on june 9 , 2017 , we completed the acquisition of substantially all of the assets of inthinc for an aggregate consideration of ( i ) $ 34.2 million in cash ; ( ii ) issuance of 76,796 shares of our common stock , valued at $ 9.95 per share ; and ( iii ) additional consideration of up to $ 25.0 million , subject to certain operational milestones . the acquisition of inthinc allows us to offer fleet management and driver safety solutions to enterprises and industrial companies worldwide , who operate large commercial vehicle fleets . for additional information regarding the inthinc acquisition , refer to “ note 3 — acquisitions ” in our audited consolidated financial statements included in part ii , item 8 of this annual report on form 10-k. senior secured notes on april 10 , 2017 , we issued $ 250.0 million aggregate principal amount of 8.0 % senior secured notes due 2024. the senior secured notes were issued pursuant to an indenture , dated as of april 10 , 2017 , among us , the guarantors and u.s. bank national association , as trustee and collateral agent . the senior secured notes are unconditionally guaranteed on a senior secured basis by the guarantors and are secured on a first priority basis by ( i ) pledges of capital stock of certain of our directly- and indirectly-owned subsidiaries ; and ( ii ) substantially all of our and our guarantors ' other property and assets , to the extent a first priority security interest is able to be granted or perfected therein , and subject , in all cases , to certain specified exceptions , and an intercreditor agreement with the collateral agent for our revolving credit facility described below . interest payments are due on the senior secured notes semi-annually in arrears on april 1 and october 1 , beginning october 1 , 2017. on april 10 , 2017 , a portion of the proceeds of the issuance of the senior secured notes was used to repay in full our outstanding obligations under , and to terminate our $ 150.0 million outstanding secured credit facilities incurred pursuant to the credit agreement entered into on september 30 , 2014 , resulting in an early payment fee of $ 1.5 million and an additional expense associated with the remaining unamortized debt issuance cost of $ 2.4 million . revolving credit facility on december 18 , 2017 , we and certain of our subsidiaries entered into a revolving credit agreement with jpmorgan chase , as administrative agent and collateral agent . the revolving credit agreement provides for a revolving credit facility in an aggregate principal amount of up to $ 25.0 million for working capital and general corporate purposes and matures on december 18 , 2022. the revolving credit facility will bear interest at an alternative base rate or an adjusted libor , plus an applicable margin of 1.50 % in the case of alternative base rate loans and 2.50 % in the case of adjusted libor loans . the revolving credit facility is secured by a first priority security interest in substantially all of our and our subsidiaries ' assets under a security agreement among the company , the applicable subsidiaries and jpmorgan chase , subject to an intercreditor agreement with the indenture trustee for the senior secured notes . the revolving credit facility has no scheduled principal amortization until the maturity date . subject to the terms set forth in the revolving credit agreement , we may borrow , repay and reborrow amounts under the revolving credit facility at any time prior to the maturity date . 40 revenues we derive service revenues primarily from monthly fees for industrial iot connectivity services that consist of subscriber-based and recurring monthly usage fees for each subscriber communicator or sim activated for use on our satellite network , as well as other satellite networks and cellular wireless networks that we resell to our customers ( i.e . , our mcps , mcas and direct customers ) . usage fees are generally based upon the data transmitted by a customer and the overall number of subscriber communicators and or sims activated by each customer and whether we provide services through our value-added portal . service revenues are recognized on an accrual basis , as services are rendered , or on a cash basis , if collection from the customer is not reasonably assured at the time the service is provided . story_separator_special_tag acquisition-related and integration costs year ended december 31 , change ( in thousands ) 2018 2017 dollars % acquisition-related and integration costs $ 1,624 $ 3,315 $ ( 1,691 ) ( 51.0 ) % acquisition-related and integration costs include professional services expenses and identifiable integration costs directly attributable to our acquisitions . the decrease in acquisition-related and integration costs reflected lower acquisition and integration activity in the 2018 period compared to the prior year period . other income ( expense ) other income ( expense ) is comprised primarily of interest expense , foreign exchange gains and losses , interest income from our cash and cash equivalents , which can consist of u.s. treasuries , interest bearing instruments , and our previously held investments in marketable securities consisting of u.s. government and agency obligations , corporate obligations and fdic-insured certificates of deposit classified as held to maturity and interest income related to capital leases . replace_table_token_13_th the decrease in other expense for the year ended december 31 , 2018 , compared to the prior year , was primarily due to the loss on extinguishment of our secured credit facilities with macquarie caf llc incurred in the quarter ended june 30 , 2017 and an increase in interest income mainly attributable to our lease receivable associated with customer product financing arrangements , offset , in part , by increased interest expense as a result of higher outstanding principal balances and higher interest rates associated with our senior secured notes issued on april 10 , 2017. we believe our foreign exchange exposure is limited as a majority of our revenue is collected in u.s. dollars . income taxes in 2018 , we recorded income taxes of $ 4.7 million , which primarily included foreign income taxes of $ 4.0 million from income generated by our international operations and $ 0.7 million of income tax benefit related to amortization of tax goodwill generated from acquisitions . in 2017 , we recorded income taxes of $ ( 0.4 ) million , which primarily included foreign income taxes of $ 1.7 million from income generated by our international operations and $ ( 2.1 ) million of income tax benefit related to the impact of the tax cuts and jobs act of 2017 on the amortization of tax goodwill generated from our acquisitions . net loss for the year ended december 31 , 2018 , we had a net loss of $ 25.9 million compared to a net loss of $ 61.2 million for the year ended december 31 , 2017. the 2018 period included a full year of increased interest expense arising from our senior secured notes issued in april 2017 and increased sg & a and product development costs , while the 2017 period included the $ 31.2 million satellite impairment loss and the $ 3.9 million loss on extinguishment of debt related to our secured credit facilities . noncontrolling interests noncontrolling interests relate to earnings and losses attributable to noncontrolling shareholders . 47 net loss attributable to orbcomm inc. for the year ended december 31 , 2018 , we had a net loss attributable to our company of $ 26.2 million , compared to a net loss of $ 61.3 million for the year ended december 31 , 2017. for both of the years ended december 31 , 2018 and 2017 , the net loss attributable to our common stockholders considers dividends of less than $ 0.1 million , paid in shares of the series a convertible preferred stock . story_separator_special_tag interest payments on our debt facilities and fund growth initiatives and capital expenditures . on april 10 , 2017 , we issued $ 250.0 million aggregate principal amount of 8.0 % senior secured notes due 2024. the senior secured notes were issued pursuant to an indenture , dated as of april 10 , 2017 , among us , the guarantors and u.s. bank national association , as trustee and collateral agent . the senior secured notes are unconditionally guaranteed on a senior secured basis by the guarantors , and are secured on a first priority basis by ( i ) pledges of capital stock of certain of our directly- and indirectly-owned subsidiaries ; and ( ii ) substantially all of our and our guarantors ' other property and assets , to the extent a first priority security interest is able to be granted or perfected therein , and subject , in all cases , to certain specified exceptions , and an intercreditor agreement with the collateral agent for our revolving credit facility described below . interest payments are due on the senior secured notes semi-annually in arrears on april 1 and october 1 , beginning october 1 , 2017. we have the option to redeem some or all of the senior secured notes at any time on or after april 1 , 2020 , at redemption prices set forth in the indenture plus accrued and unpaid interest , if any , to the date of redemption . we also have the option to redeem some or all of the senior secured notes at any time before april 1 , 2020 at a redemption price of 100 % of the principal amount of the senior secured notes to be redeemed , plus a “ make-whole ” premium and accrued and unpaid interest , if any , to the date of redemption . in addition , at any time before april 1 , 2020 , we may redeem up to 35 % of the aggregate principal amount of the senior secured notes to be redeemed , plus accrued and unpaid interest , if any , to the date of redemption , with the proceeds from certain equity issuances . the indenture contains covenants that , among other things , limit us and our restricted subsidiaries ' ability to : ( i ) incur or guarantee additional indebtedness ; ( ii ) pay dividends , make other distributions or repurchase or redeem capital stock ;

uncertainties that affect our financial condition we spend a significant amount of cash on our operations , principally to procure raw materials for our products . many of our suppliers , including chestnut , vegetable and fruit farmers , and suppliers of packaging materials , require us to pay for their supplies in cash on the same day that such supplies are delivered to us . however , some of the suppliers with whom we have a long-standing business relationship allow us to pay on credit . we fund the majority of our working capital requirements out of cash flow generated from operations . if we fail to generate sufficient sales , or if our suppliers stop offering us credit terms , we may not have sufficient liquidity to fund our operating costs and our business could be adversely affected . we also funded approximately 37.7 % and 30.2 % of our working capital requirements in 2015 and 2016 , respectively , from the proceeds of short-term loans from chinese and foreign banks . we expect to continue to do so in the future . such loans are generally secured by our fixed assets , receivables and or guarantees by third parties . our average loan balance from short-term bank loans in 2016 and 2015were approximately $ 30.7 million and $ 39.0 million , respectively . the term of almost all such loans is one year or less . historically , we have rolled over such loans on an annual basis . however , in recent years , the chinese government has implemented more stringent credit policies to curb inflation and soaring property prices , which could negatively impact our ability to obtain or roll over these short term loans , and hence not having sufficient funds available to pay all of our borrowings upon maturity . failure to roll over our short-term borrowings at maturity or to service our debt could result in the imposition of penalties , including increases in rates of interest , legal actions against us by our creditors , or even insolvency . we obtained long term loans , private placement financing and a convertible promissory note during the period 2011 to 2014. we can provide no assurances that we will be able to enter into any future financing or refinancing agreements on terms favorable to us , especially considering the current instability of the capital markets . 26 we anticipate that our existing capital resources , including cash flows from operations , current and expected short-term bank loans will be adequate to satisfy our liquidity requirements through 2017. however , if available liquidity is not sufficient to meet our operating and loan obligations as they come due , our plans include considering pursuing alternative financing arrangements or further reducing expenditures as necessary to meet our cash requirements . however , there is no assurance that , if required , we will be able to raise additional capital or reduce discretionary spending to provide the required liquidity . currently , the capital markets for small capitalization companies are difficult and banking institutions have become stringent in their lending requirements . accordingly , we can not be sure of the availability or terms of any third party financing . in 2008 and 2009 , some of our customers , including some of our large supermarket customers , delayed their payments for up to 60 to 90 days beyond their term . our cash flow suffered while waiting for such payments . consequently , at times we had to delay payments to our suppliers and to postpone business expansion as a result of these delayed payments . starting in 2008 and through 2016 we gradually shortened credit terms for many of our domestic customers from between 30 and 180 days to between 30 and 60 days ; international customers are typically extended 90 days credit . our large customers may fail to meet these shortened credit terms , in which case we may not have sufficient cash flow to fund our operating costs and our business could be adversely affected . restatement of prior financial statements we have discovered errors in the timing of revenues recognized during the year ended december 31 , 2015. we recognize revenue upon shipping of products to its customers where title of the goods passes upon departure from our facilities ; however , in certain instances , contractual terms dictate that the customers are afforded seven days after the receipt of goods at their premises to inspect the goods for defects or spoilage and notify us . if we are not contacted within those seven days , our obligation to the customer are considered fully discharged and revenue should be recognized . given the timing of these seven days , we believe that certain sales transactions have been erroneously recognized during the year ended december 31 , 2015. we have rectified this error and the impact of our financial position and result of operations during the year ended december 31 , 2015. results of operations the following tables set forth key components of our results of operations for the periods indicated , and the differences between the two periods expressed in dollars and percentages . replace_table_token_5_th 27 year ended december 31 , 2016 compared to year ended december 31 , 2015 revenue net revenues . net revenues decreased by $ 61.0 million , or approximately 43.4 % , to $ 79.7 million in 2016 from $ 140.7 million in 2015. since 2015 , more competitors entered the convenience food industry that develop more types of products . our current products have not met customers ' demand in the most recent year due to our failure to invest in research and development . in addition , we have faced significant competition from chinese online ordering platforms since 2015 , which platforms offer convenient and efficient meals directly from restaurants . story_separator_special_tag 29 income taxes income taxes decreased approximately $ 1.5 million , or 43.5 % , to $ 1.9 million in 2016 , as compared to $ 3.4 million in 2015. this decrease was attributable to the lower income ( excluding impairment ) earned in 2016 as compared to 2015. non-controlling interest shandong economic development investment holds 19.8 % of the equity of our subsidiary shandong lorain , and biobranco ii , alcides branco , and nuno branco hold 49 % of the equity of the athena group , which is reflected in the non-controlling interest of $ 7.3million in 2016 and $ 7.7million in 2015. loss attributable to common stockholders loss attributable to common stockholders decreased $ 138.6 million , or 5,290.7 % , to negative $ 135.9 million in 2016 from $ 2.6 million in 2015. as our 51 % controlled overseas subsidiaries suffered loss in 2016 , its minority shareholders bore their proportion of loss . story_separator_special_tag carrying amount of the assets exceeds the fair value of the assets . assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell . the company recognized impairment losses on certain long-lived assets during 2016. revenue recognition the company 's revenue recognition policies are in compliance with staff accounting bulletin ( sab ) 104. sales revenue is recognized at the date of shipment to customers when a formal arrangement exists , the price is fixed or determinable , the delivery is completed , no other significant obligations of the company exist and collectibility is reasonably assured . payments received before all of the relevant criteria for revenue recognition are satisfied are recorded as unearned revenue . the company 's revenue consists of invoiced value of goods , net of a value-added tax ( vat ) . the company allows its customers to return products if they are defective . however , this rarely happens and amounts returned have been de minimis . financial instruments the company 's financial instruments , including cash and equivalents , accounts and other receivables , accounts and other payables , accrued liabilities and short-term debt , have carrying amounts that approximate their fair values due to their short maturities . asc topic 820 , “fair value measurements and disclosures , ” requires disclosure of the fair value of financial instruments held by the company . asc topic 825 , “financial instruments , ” defines fair value , and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures . the carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest . the three levels of valuation hierarchy are defined as follows : 32 level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets . level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets , and inputs that are observable for the asset or liability , either directly or indirectly , for substantially the full term of the financial instrument . level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement . the company analyzes all financial instruments with features of both liabilities and equity under asc 480 , “distinguishing liabilities from equity , ” and asc 815. as of december 31 , 2016 and 2015 , the company did not identify any assets and liabilities whose carrying amounts were required to be adjusted in order to present them at fair value . recent accounting pronouncements in january 2015 , the fasb issued asu no . 2015-01 , “income statement—extraordinary and unusual items ( subtopic 225-20 ) ” . this update eliminates from gaap the concept of extraordinary items . subtopic 225-20 , income statement—extraordinary and unusual items , required that an entity separately classify , present , and disclose extraordinary events and transactions . presently , an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item . paragraph 225-20-45-2 contains the following criteria that must both be met for extraordinary classification : 1. unusual nature . the underlying event or transaction should possess a high degree of abnormality and be of a type clearly unrelated to , or only incidentally related to , the ordinary and typical activities of the entity , taking into account the environment in which the entity operates . 2. infrequency of occurrence . the underlying event or transaction should be of a type that would not reasonably be expected to recur in the foreseeable future , taking into account the environment in which the entity operates . if an event or transaction meets the criteria for extraordinary classification , an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement , net of tax after income from continuing operations . the entity also is required to disclose applicable income taxes and either present or disclose earnings-per-share data applicable to the extraordinary item . the amendments in this update are effective for fiscal years , and interim periods within those fiscal years , beginning after december 15 , 2015. a reporting entity may apply the amendments prospectively . a reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements . early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption . the effective date is the same for both public business entities and all other entities . the company adopted asu no

liquidity and capital resources general the financial statements have been prepared on a going-concern basis . the going-concern basis assumes that assets will be realized and liabilities will be settled in the ordinary course of business in the amounts disclosed in the financial statements . our ability to continue as a going concern is greatly dependent on our ability to realize its non-cash current assets such as receivables and inventory into cash in order to settle its current obligations . for the year ended december 31 , 2016 , we incurred a substantial loss of $ 136,361,080. as of december 31 , 2016 , we had a working capital deficit of approximately $ 21,271,226. these conditions raise substantial doubt as to whether we may continue as a going concern . our primary capital needs have been to fund the working capital requirements necessitated by our sales growth , adding new products and expanding our facilities . in the past , our primary sources of financing have been cash generated from operations and short-term loans from banks in china . in addition , we obtained long term loans , private placement financing and convertible promissory note during the period 2011 to 2015. at december 31 , 2016 and 2015 , cash and cash equivalents ( including restricted cash ) were $ 1.4 million and $ 25.5 million , respectively . the debt to assets ratio was 55.4 % and 31.3 % as of december 31 , 2016 and 2015 , respectively . we expect to continue to finance our operations and working capital needs in 2017 from cash generated from operations , short-term bank loans . as such , we are in discussions regarding potential financing transactions . if available liquidity is not sufficient to meet our operating and loan obligations as they come due , our plans include pursuing alternative financing arrangements or reducing expenditures as necessary to meet our cash requirements . however , there is no assurance that we will be able to raise additional capital or reduce discretionary spending to provide liquidity , if needed . currently , the capital markets for small capitalization companies are difficult .

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 the financial statements have been prepared on a going-concern basis . the going-concern basis assumes that assets will be realized and liabilities will be settled in the ordinary course of business in the amounts disclosed in the financial statements . our ability to continue as a going concern is greatly dependent on our ability to realize its non-cash current assets such as receivables and inventory into cash in order to settle its current obligations . for the year ended december 31 , 2016 , we incurred a substantial loss of $ 136,361,080. as of december 31 , 2016 , we had a working capital deficit of approximately $ 21,271,226. these conditions raise substantial doubt as to whether we may continue as a going concern . our primary capital needs have been to fund the working capital requirements necessitated by our sales growth , adding new products and expanding our facilities . in the past , our primary sources of financing have been cash generated from operations and short-term loans from banks in china . in addition , we obtained long term loans , private placement financing and convertible promissory note during the period 2011 to 2015. at december 31 , 2016 and 2015 , cash and cash equivalents ( including restricted cash ) were $ 1.4 million and $ 25.5 million , respectively . the debt to assets ratio was 55.4 % and 31.3 % as of december 31 , 2016 and 2015 , respectively . we expect to continue to finance our operations and working capital needs in 2017 from cash generated from operations , short-term bank loans . as such , we are in discussions regarding potential financing transactions . if available liquidity is not sufficient to meet our operating and loan obligations as they come due , our plans include pursuing alternative financing arrangements or reducing expenditures as necessary to meet our cash requirements . however , there is no assurance that we will be able to raise additional capital or reduce discretionary spending to provide liquidity , if needed . currently , the capital markets for small capitalization companies are difficult . ``` Suspicious Activity Report : uncertainties that affect our financial condition we spend a significant amount of cash on our operations , principally to procure raw materials for our products . many of our suppliers , including chestnut , vegetable and fruit farmers , and suppliers of packaging materials , require us to pay for their supplies in cash on the same day that such supplies are delivered to us . however , some of the suppliers with whom we have a long-standing business relationship allow us to pay on credit . we fund the majority of our working capital requirements out of cash flow generated from operations . if we fail to generate sufficient sales , or if our suppliers stop offering us credit terms , we may not have sufficient liquidity to fund our operating costs and our business could be adversely affected . we also funded approximately 37.7 % and 30.2 % of our working capital requirements in 2015 and 2016 , respectively , from the proceeds of short-term loans from chinese and foreign banks . we expect to continue to do so in the future . such loans are generally secured by our fixed assets , receivables and or guarantees by third parties . our average loan balance from short-term bank loans in 2016 and 2015were approximately $ 30.7 million and $ 39.0 million , respectively . the term of almost all such loans is one year or less . historically , we have rolled over such loans on an annual basis . however , in recent years , the chinese government has implemented more stringent credit policies to curb inflation and soaring property prices , which could negatively impact our ability to obtain or roll over these short term loans , and hence not having sufficient funds available to pay all of our borrowings upon maturity . failure to roll over our short-term borrowings at maturity or to service our debt could result in the imposition of penalties , including increases in rates of interest , legal actions against us by our creditors , or even insolvency . we obtained long term loans , private placement financing and a convertible promissory note during the period 2011 to 2014. we can provide no assurances that we will be able to enter into any future financing or refinancing agreements on terms favorable to us , especially considering the current instability of the capital markets . 26 we anticipate that our existing capital resources , including cash flows from operations , current and expected short-term bank loans will be adequate to satisfy our liquidity requirements through 2017. however , if available liquidity is not sufficient to meet our operating and loan obligations as they come due , our plans include considering pursuing alternative financing arrangements or further reducing expenditures as necessary to meet our cash requirements . however , there is no assurance that , if required , we will be able to raise additional capital or reduce discretionary spending to provide the required liquidity . currently , the capital markets for small capitalization companies are difficult and banking institutions have become stringent in their lending requirements . accordingly , we can not be sure of the availability or terms of any third party financing . in 2008 and 2009 , some of our customers , including some of our large supermarket customers , delayed their payments for up to 60 to 90 days beyond their term . our cash flow suffered while waiting for such payments . consequently , at times we had to delay payments to our suppliers and to postpone business expansion as a result of these delayed payments . starting in 2008 and through 2016 we gradually shortened credit terms for many of our domestic customers from between 30 and 180 days to between 30 and 60 days ; international customers are typically extended 90 days credit . our large customers may fail to meet these shortened credit terms , in which case we may not have sufficient cash flow to fund our operating costs and our business could be adversely affected . restatement of prior financial statements we have discovered errors in the timing of revenues recognized during the year ended december 31 , 2015. we recognize revenue upon shipping of products to its customers where title of the goods passes upon departure from our facilities ; however , in certain instances , contractual terms dictate that the customers are afforded seven days after the receipt of goods at their premises to inspect the goods for defects or spoilage and notify us . if we are not contacted within those seven days , our obligation to the customer are considered fully discharged and revenue should be recognized . given the timing of these seven days , we believe that certain sales transactions have been erroneously recognized during the year ended december 31 , 2015. we have rectified this error and the impact of our financial position and result of operations during the year ended december 31 , 2015. results of operations the following tables set forth key components of our results of operations for the periods indicated , and the differences between the two periods expressed in dollars and percentages . replace_table_token_5_th 27 year ended december 31 , 2016 compared to year ended december 31 , 2015 revenue net revenues . net revenues decreased by $ 61.0 million , or approximately 43.4 % , to $ 79.7 million in 2016 from $ 140.7 million in 2015. since 2015 , more competitors entered the convenience food industry that develop more types of products . our current products have not met customers ' demand in the most recent year due to our failure to invest in research and development . in addition , we have faced significant competition from chinese online ordering platforms since 2015 , which platforms offer convenient and efficient meals directly from restaurants . story_separator_special_tag 29 income taxes income taxes decreased approximately $ 1.5 million , or 43.5 % , to $ 1.9 million in 2016 , as compared to $ 3.4 million in 2015. this decrease was attributable to the lower income ( excluding impairment ) earned in 2016 as compared to 2015. non-controlling interest shandong economic development investment holds 19.8 % of the equity of our subsidiary shandong lorain , and biobranco ii , alcides branco , and nuno branco hold 49 % of the equity of the athena group , which is reflected in the non-controlling interest of $ 7.3million in 2016 and $ 7.7million in 2015. loss attributable to common stockholders loss attributable to common stockholders decreased $ 138.6 million , or 5,290.7 % , to negative $ 135.9 million in 2016 from $ 2.6 million in 2015. as our 51 % controlled overseas subsidiaries suffered loss in 2016 , its minority shareholders bore their proportion of loss . story_separator_special_tag carrying amount of the assets exceeds the fair value of the assets . assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell . the company recognized impairment losses on certain long-lived assets during 2016. revenue recognition the company 's revenue recognition policies are in compliance with staff accounting bulletin ( sab ) 104. sales revenue is recognized at the date of shipment to customers when a formal arrangement exists , the price is fixed or determinable , the delivery is completed , no other significant obligations of the company exist and collectibility is reasonably assured . payments received before all of the relevant criteria for revenue recognition are satisfied are recorded as unearned revenue . the company 's revenue consists of invoiced value of goods , net of a value-added tax ( vat ) . the company allows its customers to return products if they are defective . however , this rarely happens and amounts returned have been de minimis . financial instruments the company 's financial instruments , including cash and equivalents , accounts and other receivables , accounts and other payables , accrued liabilities and short-term debt , have carrying amounts that approximate their fair values due to their short maturities . asc topic 820 , “fair value measurements and disclosures , ” requires disclosure of the fair value of financial instruments held by the company . asc topic 825 , “financial instruments , ” defines fair value , and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures . the carrying amounts reported in the consolidated balance sheets for receivables and current liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest . the three levels of valuation hierarchy are defined as follows : 32 level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets . level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets , and inputs that are observable for the asset or liability , either directly or indirectly , for substantially the full term of the financial instrument . level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement . the company analyzes all financial instruments with features of both liabilities and equity under asc 480 , “distinguishing liabilities from equity , ” and asc 815. as of december 31 , 2016 and 2015 , the company did not identify any assets and liabilities whose carrying amounts were required to be adjusted in order to present them at fair value . recent accounting pronouncements in january 2015 , the fasb issued asu no . 2015-01 , “income statement—extraordinary and unusual items ( subtopic 225-20 ) ” . this update eliminates from gaap the concept of extraordinary items . subtopic 225-20 , income statement—extraordinary and unusual items , required that an entity separately classify , present , and disclose extraordinary events and transactions . presently , an event or transaction is presumed to be an ordinary and usual activity of the reporting entity unless evidence clearly supports its classification as an extraordinary item . paragraph 225-20-45-2 contains the following criteria that must both be met for extraordinary classification : 1. unusual nature . the underlying event or transaction should possess a high degree of abnormality and be of a type clearly unrelated to , or only incidentally related to , the ordinary and typical activities of the entity , taking into account the environment in which the entity operates . 2. infrequency of occurrence . the underlying event or transaction should be of a type that would not reasonably be expected to recur in the foreseeable future , taking into account the environment in which the entity operates . if an event or transaction meets the criteria for extraordinary classification , an entity is required to segregate the extraordinary item from the results of ordinary operations and show the item separately in the income statement , net of tax after income from continuing operations . the entity also is required to disclose applicable income taxes and either present or disclose earnings-per-share data applicable to the extraordinary item . the amendments in this update are effective for fiscal years , and interim periods within those fiscal years , beginning after december 15 , 2015. a reporting entity may apply the amendments prospectively . a reporting entity also may apply the amendments retrospectively to all prior periods presented in the financial statements . early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption . the effective date is the same for both public business entities and all other entities . the company adopted asu no

we believe that we are well positioned with the right strategies in place to successfully serve our customers , which will in turn lead to long-term profitable growth and top-quartile total shareholder return . nordstrom , inc. and subsidiaries 17 results of operations our reportable segments are retail and credit . we analyze our results of operations through earnings before interest and income taxes for our retail business and credit , while interest expense , income taxes , earnings per share and return on invested capital are discussed on a total company basis . retail business our retail business includes our nordstrom-branded u.s. and canada full-line stores and nordstrom.com , nordstrom rack stores , nordstromrack.com/hautelook , trunk club , jeffrey and our last chance clearance store . for purposes of discussion and analysis of our results of operations of our retail business , we combine our retail segment results with revenues and expenses in the “ corporate/other ” column of note 17 : segment reporting in item 8 ( collectively , the “ retail business ” ) . certain metrics we use to evaluate the retail business may not be calculated in a consistent manner among industry peers . provided below are definitions of metrics we present within our analysis of the retail business : comparable sales – sales from stores that have been open at least one full year at the beginning of the year . total company comparable sales include sales from our online channels ( nordstrom.com and nordstromrack.com/hautelook ) because of the integration with our stores . gross profit – net sales less cost of sales and related buying and occupancy costs . inventory turnover rate – annual cost of sales and related buying and occupancy costs ( for all segments ) divided by the trailing 4-quarter average inventory . total sales per square foot – net sales divided by weighted-average square footage . 4-wall sales per square foot – sales for nordstrom u.s. and canada full-line stores , nordstrom rack stores , trunk club clubhouses , jeffrey boutiques and our last chance store divided by their weighted-average square footage . summary the following table summarizes the results of our retail business for the past three years : replace_table_token_7_th 1 subtotals and totals may not foot due to rounding . 18 retail business net sales in our ongoing effort to enhance the customer experience , we are focused on providing customers with a seamless experience across our channels . while our customers may engage with us through multiple channels , we know they value the overall nordstrom brand experience and view us simply as nordstrom , which is ultimately how we view our business . to provide additional transparency into our net sales by channel , we present the following information for our retail business : replace_table_token_8_th 1 other retail includes nordstrom canada full-line stores , trunk club and jeffrey boutiques . net sales ( 2015 vs. 2014 ) in 2015 , total company net sales increased 7.5 % , while comparable sales increased 2.7 % . during the year , we opened five nordstrom full-line stores , including two in canada , and 27 nordstrom rack stores . these additions increased our square footage by 6.4 % and represented 2.8 % of our total net sales for 2015 . our full-price net sales , which consist of the u.s. full-line and nordstrom.com channels , increased 2.6 % compared with 2014 , with comparable sales up 2.3 % . these increases reflected continued momentum in our nordstrom.com channel , which increased 15 % , while u.s. full-line store net sales decreased 0.6 % in 2015 compared with 2014 . on a comparable basis , we experienced an increased volume of transactions partially offset by a decrease in the average number of items sold per transaction . category leaders included beauty and women 's apparel . u.s. full-line store comparable sales decreased by 1.1 % . the northwest and southwest were the top-performing full-line geographic regions . nordstrom , inc. and subsidiaries 19 within our off-price offering , nordstrom rack net sales increased 9.9 % , compared with 2014 , reflecting the accelerated expansion of new stores . comparable sales decreased 1.0 % for the year . shoes and cosmetics were the top-performing categories , while the south was the top-performing geographic region . nordstrom rack experienced an increase in the average retail price per item sold offset by a decrease in the total number of items sold . sales per square foot of nordstrom rack decreased due to store expansion . nordstromrack.com/hautelook experienced outsized growth , with a net sales increase of 47 % . net sales ( 2014 vs. 2013 ) total company net sales for 2014 increased 7.8 % compared with 2013 , which was attributable to a comparable sales increase of 4.0 % . during 2014 , we opened three nordstrom full-line stores , including our first store in canada , 27 nordstrom rack stores and acquired trunk club . these additions represented 2.8 % of our total net sales for 2014 and increased our square footage by 5.5 % . full-price net sales for 2014 increased 3.8 % compared with 2013 , with comparable sales up 3.6 % . these increases were largely due to the performance of our nordstrom.com channel . both the number of items sold and the average selling price increased on a comparable basis in 2014 compared with 2013 . category leaders included accessories , cosmetics and men 's apparel . u.s. full-line store net sales for 2014 decreased 0.3 % compared with 2013 , which was primarily driven by a decrease in comparable sales . the top-performing geographic regions for 2014 were the southeast and southwest . our nordstrom.com and nordstromrack.com/hautelook channels experienced outsized growth , with a net sales increase of 23 % at nordstrom.com and 22 % at nordstromrack.com/hautelook compared with 2013 . story_separator_special_tag nordstrom , inc. and subsidiaries 25 return on invested capital ( “ roic ” ) ( non-gaap financial measure ) we believe that roic is a useful financial measure for investors in evaluating the efficiency and effectiveness of our use of capital and believe roic is an important component of shareholders ' return over the long term . in addition , we incorporate roic in our executive incentive compensation measures . for the 12 fiscal months ended january 30 , 2016 , our roic decreased to 10.7 % compared with 12.6 % for the 12 fiscal months ended january 31 , 2015 . this decrease reflected reduced earnings in addition to increased investments supporting growth initiatives . we define roic as our net operating profit after tax divided by our average invested capital using the trailing 12-month average . roic is not a measure of financial performance under generally accepted accounting principles ( “ gaap ” ) and should be considered in addition to , and not as a substitute for , return on assets , net earnings , total assets or other financial measures prepared in accordance with gaap . our method of determining non-gaap financial measures may differ from other companies ' methods and therefore may not be comparable to those used by other companies . the financial measure calculated under gaap which is most directly comparable to roic is return on assets . the following is a reconciliation of the components of roic and return on assets : replace_table_token_20_th 1 capitalized operating leases is our best estimate of the asset base we would record for our leases that are classified as operating if they had met the criteria for a capital lease or we had purchased the property . asset base is calculated as described in footnote 2 below . 2 based upon the trailing 12-month average of the monthly asset base . the asset base for each month is calculated as the trailing 12 months of rent expense multiplied by eight . the multiple of eight times rent expense is a commonly used method of estimating the asset base we would record for our capitalized operating leases described in footnote 1 . 26 liquidity and capital resources we strive to maintain a level of liquidity sufficient to allow us to cover our seasonal cash needs and to maintain appropriate levels of short-term borrowings . we believe that our operating cash flows , available credit facilities and potential future borrowings are sufficient to finance our cash requirements for the next 12 months and beyond . over the long term , we manage our cash and capital structure to maximize shareholder return , maintain our financial position , manage refinancing risk and allow flexibility for strategic initiatives . we regularly assess our debt and leverage levels , capital expenditure requirements , debt service payments , dividend payouts , potential share repurchases and other future investments . we believe that as of january 30 , 2016 , our existing cash and cash equivalents on-hand of $ 595 , available credit facilities of $ 800 and potential future operating cash flows and borrowings will be sufficient to fund these scheduled future payments and potential long-term initiatives . operating activities net cash provided by operating activities was $ 2,451 in 2015 , $ 1,220 in 2014 and $ 1,320 in 2013 . the majority of our operating cash inflows are derived from sales . we also receive cash payments for property incentives from developers . our operating cash outflows generally consist of payments to our merchandise vendors ( net of vendor allowances ) , payments to our employees for wages , salaries and other employee benefits and payments to our landlords for rent . operating cash outflows also include payments for income taxes and interest payments on our short-term and long-term borrowings . cash provided by operating activities increased by $ 1,231 between 2015 and 2014 , primarily due to $ 1,297 of net proceeds from the sale of our credit card receivables ( see note 2 : credit card receivable transaction in item 8 ) . also within operating activities , deferred income taxes , net and prepaid expenses and other assets were impacted by a change in an irs rule regarding repairs of real property . cash provided by operating activities decreased in 2014 compared with 2013 , which was primarily due to higher state tax payments made in 2014 compared with 2013 , as well as changes in working capital in 2014 . investing activities net cash used in investing activities was $ 144 in 2015 , $ 889 in 2014 and $ 822 in 2013 . the decrease in cash used in 2015 compared with 2014 is primarily due to $ 890 of net proceeds from the sale of our credit card receivables originated at third parties . capital expenditures our capital expenditures over the last three years totaled $ 2,746 , with $ 1,082 in 2015 , $ 861 in 2014 and $ 803 in 2013 . capital expenditures increased year over year primarily due to ongoing store expansion and increased technology investments . the following table summarizes our store count and square footage activity : replace_table_token_21_th 1 other includes trunk club clubhouses , jeffrey boutiques and our last chance store . we had one store relocation in 2015 , compared with no relocations in 2014 and three relocations in 2013 . our 2015 new store openings increased our square footage by 6.4 % . to date in 2016 , we have opened three nordstrom rack stores and plan to open an additional 18 nordstrom rack stores , two full-line stores in canada and one full-line store in the u.s. during the remainder of 2016 . planned net store openings are expected to increase our retail square footage by approximately 4 % . nordstrom , inc. and subsidiaries 27 we received property incentives from our developers of $ 156 in 2015 , $ 110 in 2014

net cash used in financing activities was $ 2,539 in 2015 compared with $ 698 in 2014 and $ 589 in 2013 . our financing activities include repurchases of common stock , our short-term and long-term borrowing activity , and payment of dividends . short-term and long-term borrowing activity in 2015 , as a condition of closing the credit card receivable transaction ( see note 2 : credit card receivable transaction in item 8 ) , we defeased $ 325 in secured series 2011-1 class a notes in order to provide the receivables to td free and clear . in 2013 , we exchanged $ 201 senior unsecured notes due in january 2038 for $ 265 senior unsecured notes due in january 2044. the $ 201 of debt that was exchanged is reflected as a non-cash financing activity in our consolidated statements of cash flows in item 8 while the $ 64 excess of outstanding principal was recorded as a discount to be amortized over the term of the notes due in 2044. dividends in 2015 , we paid dividends of $ 1,185 , or $ 6.33 per share , compared with $ 251 , or $ 1.32 per share , in 2014 and $ 234 , or $ 1.20 per share , in 2013 . dividends paid in 2015 included a special cash dividend of $ 905 , or $ 4.85 per share of outstanding common stock , in addition to our recurring quarterly dividend of $ 0.37 per share . the special dividend was authorized by our board of directors on october 1 , 2015 and was paid using proceeds from the sale of our credit card receivables ( see note 2 : credit card receivable transaction in item 8 ) . during the first quarter of 2015 , we increased our quarterly dividend from $ 0.33 per share to $ 0.37 per share . in determining the amount of dividends to pay , we analyze our dividend payout ratio and dividend yield , while taking into consideration our current and projected operating performance and 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. ```net cash used in financing activities was $ 2,539 in 2015 compared with $ 698 in 2014 and $ 589 in 2013 . our financing activities include repurchases of common stock , our short-term and long-term borrowing activity , and payment of dividends . short-term and long-term borrowing activity in 2015 , as a condition of closing the credit card receivable transaction ( see note 2 : credit card receivable transaction in item 8 ) , we defeased $ 325 in secured series 2011-1 class a notes in order to provide the receivables to td free and clear . in 2013 , we exchanged $ 201 senior unsecured notes due in january 2038 for $ 265 senior unsecured notes due in january 2044. the $ 201 of debt that was exchanged is reflected as a non-cash financing activity in our consolidated statements of cash flows in item 8 while the $ 64 excess of outstanding principal was recorded as a discount to be amortized over the term of the notes due in 2044. dividends in 2015 , we paid dividends of $ 1,185 , or $ 6.33 per share , compared with $ 251 , or $ 1.32 per share , in 2014 and $ 234 , or $ 1.20 per share , in 2013 . dividends paid in 2015 included a special cash dividend of $ 905 , or $ 4.85 per share of outstanding common stock , in addition to our recurring quarterly dividend of $ 0.37 per share . the special dividend was authorized by our board of directors on october 1 , 2015 and was paid using proceeds from the sale of our credit card receivables ( see note 2 : credit card receivable transaction in item 8 ) . during the first quarter of 2015 , we increased our quarterly dividend from $ 0.33 per share to $ 0.37 per share . in determining the amount of dividends to pay , we analyze our dividend payout ratio and dividend yield , while taking into consideration our current and projected operating performance and liquidity . ``` Suspicious Activity Report : we believe that we are well positioned with the right strategies in place to successfully serve our customers , which will in turn lead to long-term profitable growth and top-quartile total shareholder return . nordstrom , inc. and subsidiaries 17 results of operations our reportable segments are retail and credit . we analyze our results of operations through earnings before interest and income taxes for our retail business and credit , while interest expense , income taxes , earnings per share and return on invested capital are discussed on a total company basis . retail business our retail business includes our nordstrom-branded u.s. and canada full-line stores and nordstrom.com , nordstrom rack stores , nordstromrack.com/hautelook , trunk club , jeffrey and our last chance clearance store . for purposes of discussion and analysis of our results of operations of our retail business , we combine our retail segment results with revenues and expenses in the “ corporate/other ” column of note 17 : segment reporting in item 8 ( collectively , the “ retail business ” ) . certain metrics we use to evaluate the retail business may not be calculated in a consistent manner among industry peers . provided below are definitions of metrics we present within our analysis of the retail business : comparable sales – sales from stores that have been open at least one full year at the beginning of the year . total company comparable sales include sales from our online channels ( nordstrom.com and nordstromrack.com/hautelook ) because of the integration with our stores . gross profit – net sales less cost of sales and related buying and occupancy costs . inventory turnover rate – annual cost of sales and related buying and occupancy costs ( for all segments ) divided by the trailing 4-quarter average inventory . total sales per square foot – net sales divided by weighted-average square footage . 4-wall sales per square foot – sales for nordstrom u.s. and canada full-line stores , nordstrom rack stores , trunk club clubhouses , jeffrey boutiques and our last chance store divided by their weighted-average square footage . summary the following table summarizes the results of our retail business for the past three years : replace_table_token_7_th 1 subtotals and totals may not foot due to rounding . 18 retail business net sales in our ongoing effort to enhance the customer experience , we are focused on providing customers with a seamless experience across our channels . while our customers may engage with us through multiple channels , we know they value the overall nordstrom brand experience and view us simply as nordstrom , which is ultimately how we view our business . to provide additional transparency into our net sales by channel , we present the following information for our retail business : replace_table_token_8_th 1 other retail includes nordstrom canada full-line stores , trunk club and jeffrey boutiques . net sales ( 2015 vs. 2014 ) in 2015 , total company net sales increased 7.5 % , while comparable sales increased 2.7 % . during the year , we opened five nordstrom full-line stores , including two in canada , and 27 nordstrom rack stores . these additions increased our square footage by 6.4 % and represented 2.8 % of our total net sales for 2015 . our full-price net sales , which consist of the u.s. full-line and nordstrom.com channels , increased 2.6 % compared with 2014 , with comparable sales up 2.3 % . these increases reflected continued momentum in our nordstrom.com channel , which increased 15 % , while u.s. full-line store net sales decreased 0.6 % in 2015 compared with 2014 . on a comparable basis , we experienced an increased volume of transactions partially offset by a decrease in the average number of items sold per transaction . category leaders included beauty and women 's apparel . u.s. full-line store comparable sales decreased by 1.1 % . the northwest and southwest were the top-performing full-line geographic regions . nordstrom , inc. and subsidiaries 19 within our off-price offering , nordstrom rack net sales increased 9.9 % , compared with 2014 , reflecting the accelerated expansion of new stores . comparable sales decreased 1.0 % for the year . shoes and cosmetics were the top-performing categories , while the south was the top-performing geographic region . nordstrom rack experienced an increase in the average retail price per item sold offset by a decrease in the total number of items sold . sales per square foot of nordstrom rack decreased due to store expansion . nordstromrack.com/hautelook experienced outsized growth , with a net sales increase of 47 % . net sales ( 2014 vs. 2013 ) total company net sales for 2014 increased 7.8 % compared with 2013 , which was attributable to a comparable sales increase of 4.0 % . during 2014 , we opened three nordstrom full-line stores , including our first store in canada , 27 nordstrom rack stores and acquired trunk club . these additions represented 2.8 % of our total net sales for 2014 and increased our square footage by 5.5 % . full-price net sales for 2014 increased 3.8 % compared with 2013 , with comparable sales up 3.6 % . these increases were largely due to the performance of our nordstrom.com channel . both the number of items sold and the average selling price increased on a comparable basis in 2014 compared with 2013 . category leaders included accessories , cosmetics and men 's apparel . u.s. full-line store net sales for 2014 decreased 0.3 % compared with 2013 , which was primarily driven by a decrease in comparable sales . the top-performing geographic regions for 2014 were the southeast and southwest . our nordstrom.com and nordstromrack.com/hautelook channels experienced outsized growth , with a net sales increase of 23 % at nordstrom.com and 22 % at nordstromrack.com/hautelook compared with 2013 . story_separator_special_tag nordstrom , inc. and subsidiaries 25 return on invested capital ( “ roic ” ) ( non-gaap financial measure ) we believe that roic is a useful financial measure for investors in evaluating the efficiency and effectiveness of our use of capital and believe roic is an important component of shareholders ' return over the long term . in addition , we incorporate roic in our executive incentive compensation measures . for the 12 fiscal months ended january 30 , 2016 , our roic decreased to 10.7 % compared with 12.6 % for the 12 fiscal months ended january 31 , 2015 . this decrease reflected reduced earnings in addition to increased investments supporting growth initiatives . we define roic as our net operating profit after tax divided by our average invested capital using the trailing 12-month average . roic is not a measure of financial performance under generally accepted accounting principles ( “ gaap ” ) and should be considered in addition to , and not as a substitute for , return on assets , net earnings , total assets or other financial measures prepared in accordance with gaap . our method of determining non-gaap financial measures may differ from other companies ' methods and therefore may not be comparable to those used by other companies . the financial measure calculated under gaap which is most directly comparable to roic is return on assets . the following is a reconciliation of the components of roic and return on assets : replace_table_token_20_th 1 capitalized operating leases is our best estimate of the asset base we would record for our leases that are classified as operating if they had met the criteria for a capital lease or we had purchased the property . asset base is calculated as described in footnote 2 below . 2 based upon the trailing 12-month average of the monthly asset base . the asset base for each month is calculated as the trailing 12 months of rent expense multiplied by eight . the multiple of eight times rent expense is a commonly used method of estimating the asset base we would record for our capitalized operating leases described in footnote 1 . 26 liquidity and capital resources we strive to maintain a level of liquidity sufficient to allow us to cover our seasonal cash needs and to maintain appropriate levels of short-term borrowings . we believe that our operating cash flows , available credit facilities and potential future borrowings are sufficient to finance our cash requirements for the next 12 months and beyond . over the long term , we manage our cash and capital structure to maximize shareholder return , maintain our financial position , manage refinancing risk and allow flexibility for strategic initiatives . we regularly assess our debt and leverage levels , capital expenditure requirements , debt service payments , dividend payouts , potential share repurchases and other future investments . we believe that as of january 30 , 2016 , our existing cash and cash equivalents on-hand of $ 595 , available credit facilities of $ 800 and potential future operating cash flows and borrowings will be sufficient to fund these scheduled future payments and potential long-term initiatives . operating activities net cash provided by operating activities was $ 2,451 in 2015 , $ 1,220 in 2014 and $ 1,320 in 2013 . the majority of our operating cash inflows are derived from sales . we also receive cash payments for property incentives from developers . our operating cash outflows generally consist of payments to our merchandise vendors ( net of vendor allowances ) , payments to our employees for wages , salaries and other employee benefits and payments to our landlords for rent . operating cash outflows also include payments for income taxes and interest payments on our short-term and long-term borrowings . cash provided by operating activities increased by $ 1,231 between 2015 and 2014 , primarily due to $ 1,297 of net proceeds from the sale of our credit card receivables ( see note 2 : credit card receivable transaction in item 8 ) . also within operating activities , deferred income taxes , net and prepaid expenses and other assets were impacted by a change in an irs rule regarding repairs of real property . cash provided by operating activities decreased in 2014 compared with 2013 , which was primarily due to higher state tax payments made in 2014 compared with 2013 , as well as changes in working capital in 2014 . investing activities net cash used in investing activities was $ 144 in 2015 , $ 889 in 2014 and $ 822 in 2013 . the decrease in cash used in 2015 compared with 2014 is primarily due to $ 890 of net proceeds from the sale of our credit card receivables originated at third parties . capital expenditures our capital expenditures over the last three years totaled $ 2,746 , with $ 1,082 in 2015 , $ 861 in 2014 and $ 803 in 2013 . capital expenditures increased year over year primarily due to ongoing store expansion and increased technology investments . the following table summarizes our store count and square footage activity : replace_table_token_21_th 1 other includes trunk club clubhouses , jeffrey boutiques and our last chance store . we had one store relocation in 2015 , compared with no relocations in 2014 and three relocations in 2013 . our 2015 new store openings increased our square footage by 6.4 % . to date in 2016 , we have opened three nordstrom rack stores and plan to open an additional 18 nordstrom rack stores , two full-line stores in canada and one full-line store in the u.s. during the remainder of 2016 . planned net store openings are expected to increase our retail square footage by approximately 4 % . nordstrom , inc. and subsidiaries 27 we received property incentives from our developers of $ 156 in 2015 , $ 110 in 2014

as a result of the positive mercury 3 results and the roclanda ® approval in europe , th ird parties expressed interest in a potential commercialization partnership in 81 and potentially beyond europe . we are currently engaged in discussions with potential partners , while we are simultaneously preparing on our own for pricing discussions in germany . in japan , we entered into the santen agreement in october 2020 to advance our clinical development and ultimately commercialize rhopressa ® and rocklatan ® in japan and eight other countries in asia . we initiated a rhopressa ® phase 3 clinical trial in december 2020 , the first of three expected phase 3 clinical trials in japan . clinical trials for rocklatan ® have not yet begun . glaucoma product manufacturing we have a sterile fill production facility in athlone , ireland , for the production of our fda approved products and clinical supplies with the goal of having the athlone manufacturing plant supply our ophthalmic products in all markets for which we received regulatory approval and are commercialized . the athlone manufacturing plant began manufacturing commercial supplies of rocklatan ® in the first quarter of 2020 and rhopressa ® in the third quarter of 2020 for distribution to the united states . shipments of commercial supply of rocklatan ® and rhopressa ® from the athlone manufacturing plant to the united states commenced in the third quarter of 2020 and in the fourth quarter of 2020 , respectively . the athlone manufacturing plant has also manufactured clinical supplies of rhopressa ® for the phase 3 clinical trials in japan . as the athlone manufacturing plant commenced operations in 2020 , it has not yet reached full capacity . we expect that the athlone manufacturing plant will have adequate capacity to produce rhopressa ® and rocklatan ® in the united states as well as for both the european and japanese commercial markets , if approved for commercial distribution in those markets . we may continue to use contract manufacturers to produce commercial supplies of rhopressa ® and rocklatan ® for distribution in the united states , but at reduced levels compared to before the athlone manufacturing plant was operational . product candidates and pipeline our strategy also includes enhancing our longer-term commercial potential by identifying and advancing additional product candidates through our internal discovery efforts , our entry into potential research collaborations or in-licensing arrangements or our acquisition of additional ophthalmic products or technologies or product candidates that complement our current product portfolio . ar-15512 is our product candidate for the treatment of dry eye disease , acquired in late 2019 , for which we initiated a phase 2b clinical trial named comet-1 in october 2020. furthermore , we are developing three sustained-release implants focused on retinal diseases , ar-1105 , ar-13503 sr and ar-14034 sr. for ar-1105 , we successfully completed a large phase 2 clinical trial for patients with macular edema due to rvo in july 2020 , which indicates sustained efficacy of up to six months , an important achievement in validating the potential capabilities of aerie 's sustained release platform . with respect to future plans for ar-1105 , we are currently evaluating next steps regarding clinical advancement into phase 3 along with commercialization prospects in both europe and the united states . for ar-13503 sr , we initiated a first in-human clinical safety study in the third quarter of 2019 for the treatment of wet amd and dme , which is currently ongoing . in addition , we are also working to advance our preclinical sustained-release retinal implant , ar-14034 sr , for which we anticipate filing an ind with the fda in the second half of 2022. we discovered and developed the active ingredient in rhopressa ® and rocklatan ® , netarsudil , and ar-13503 through a rational drug design approach that coupled medicinal chemistry with high content screening of compounds in proprietary cell- based assays . we selected and formulated netarsudil for preclinical in vivo testing following a detailed characterization of over 3,000 synthesized rock inhibitors , a number that has since grown to approximately 4,000. impact of the covid-19 pandemic in december 2019 , there was an outbreak of a new strain of coronavirus ( “ covid-19 ” ) and on march 11 , 2020 , the world health organization declared covid-19 a pandemic . the covid-19 pandemic has negatively impacted the global economy , disrupted global supply chains and workforce participation due to “ shelter-in-place ” restrictions by various governments worldwide and created significant volatility and disruption of financial markets . the health and safety of our employees , patients , prescribers and community are of utmost importance during this time and we are complying with all requirements and mandates from various agencies and governments . we are taking precautionary measures to protect our employees and our stakeholders and adapting company policy to maintain the continuity of our business . we continue to operate effectively as most of our manufacturing plant personnel are working at the manufacturing plant with precautionary measures in place , while the balance of our workforce is primarily working from home . while many eye-care professionals ' offices are operating at reduced capacity , we are using a combination of in-person and virtual tools and resources to remain in contact with eye-care professionals . aerie territory managers are experiencing 82 successful engagement with eye-care professionals through either traditional face-to-face office meetings or virtual resources . our sales force is interactively communicating with physicians via different technological platforms and local peer-to-peer educational meetings are primarily being implemented via webinars . certain geographic communities have resumed in-person speaker programs , while adhering to strict national guidelines with appropriate social distancing . as part of the support of the eye-care community , our territory managers are either delivering or arranging for delivery of product samples to the eye-care professionals ' offices when needed . story_separator_special_tag we do not assess whether a contract has a significant financing component if the expectation is such that the period between the transfer of the promised goods to the customer and the receipt of payment will be less than one year . standard credit terms do not exceed 75 days . we calculate our net product revenue based on the wholesale acquisition cost that we charge our distributors for rhopressa ® and rocklatan ® less provisions for ( i ) trade discounts and allowances , such as discounts for prompt payment and distributor fees , ( ii ) estimated rebates to third-party payers , estimated payments for medicare part d donut hole , patient co-pay program coupon utilization , chargebacks and other discount programs and ( iii ) reserves for expected product returns . the estimates of reserves established for variable consideration reflect current contractual and statutory requirements , known market events and trends , industry data , forecasted customer mix and lagged claims . provisions for revenue reserves reduced product revenues by $ 202.2 million and $ 105.9 million in aggregate for the years ended december 31 , 2020 and 2019 , respectively , a significant portion of which related to commercial and medicare part d rebates . the transaction price , which includes variable consideration reflecting the impact of discounts and allowances , may be subject to constraint and is included in the net product revenues only to the extent that it is probable that a significant reversal of the amount of the cumulative revenues recognized will not occur in a future period . actual amounts may ultimately differ from these estimates . if actual results vary , estimates may be adjusted in the period such change in estimate becomes known , which could have an impact on earnings in the period of adjustment . trade discounts and allowances : we generally provide discounts on sales of rhopressa ® and rocklatan ® to our distributors for prompt payment and pay fees for distribution services and for certain data that distributors provide to us . we expect our distributors to earn these discounts and fees , and accordingly deduct the full amount of these discounts and fees from our gross product revenues at the time such revenues are recognized . rebates , chargebacks and other discounts : we contract with third-party payers for coverage and reimbursement of rhopressa ® and rocklatan ® . we estimate the rebates and chargebacks we expect to be obligated to provide to third-party payers and deduct these estimated amounts from our gross product revenue at the time the revenue is recognized . we estimate the rebates and chargebacks that we expect to be obligated to provide to third-party payers based upon ( i ) our contracts and negotiations with these third-party payers , ( ii ) estimates regarding the payer mix for rhopressa ® and rocklatan ® based on third-party data and utilization , ( iii ) inventory held by distributors and ( iv ) estimates of inventory held at the retail channel . other discounts include our co-pay assistance programs for commercially-insured patients meeting certain eligibility requirements . the calculation of the accrual for co-pay assistance is based on an estimate of claims and the cost per claim that we expect to pay associated with product that has been recognized as revenue . 86 product returns : we estimate the amount of rhopressa ® and rocklatan ® that will be returned and deduct these estimated amounts from our gross revenue at the time the revenue is recognized . we currently estimate product returns based on historical information regarding returns of rhopressa ® and rocklatan ® as well as historical industry information regarding rates for comparable pharmaceutical products and product portfolios , the estimated remaining shelf life of rhopressa ® and rocklatan ® shipped to distributors , and contractual agreements with our distributors intended to limit the amount of inventory they maintain . reporting from the distributors includes distributor sales and inventory held by distributors , which provide us with visibility into the distribution channel to determine when product would be eligible to be returned . contract revenues from license agreements in the normal course of business , we conduct research and development activities pursuant to which we may license certain rights of our intellectual property to third parties . the terms of these arrangements typically include payment for a combination of one or more of the following : upfront license fees ; development , regulatory and sales-based milestone payments ; clinical or commercial supply services and royalties on net sales of licensed products . in determining the appropriate amount of revenue to be recognized as we fulfill our obligations under such agreements , the five steps outlined in “ — revenue recognition ” above are performed . as part of the accounting for these arrangements , judgment is used to determine : ( a ) the performance obligations based on the determination under step ( ii ) above ; ( b ) the transaction price under step ( iii ) above ; ( c ) the stand-alone selling price for each performance obligation identified in the contract for the allocation of transaction price under step ( iv ) above ; and ( d ) in some circumstances when control transfers and the appropriate measure of progress in order to recognize revenue under step ( v ) above . judgment is used to determine whether milestones or other variable consideration , should be included in the transaction price as described further below . the transaction price is allocated to each performance obligation on a relative stand-alone selling price basis , for which we recognize revenue as or when the performance obligations under the contract are satisfied . amounts received prior to revenue recognition are recorded as deferred revenue . amounts expected to be recognized as revenue within the 12 months following the balance sheet date are classified as current portion of deferred revenue in

cash flows the following table summarizes our sources and uses of cash : replace_table_token_7_th operating activities during the year ended december 31 , 2020 , net cash used in operating activities of $ 64.7 million related to a net loss of $ 183.1 million , adjusted for non-cash items of $ 73.5 million primarily related to stock-based compensation expense , amortization and accretion and depreciation and net cash outflows of $ 44.9 million related to changes in operating assets and liabilities . other changes in operating assets and liabilities included the $ 50.0 million upfront payment paid by santen . during the year ended december 31 , 2019 , net cash used in operating activities of $ 150.4 million related to a net loss of $ 199.6 million , adjusted for non-cash items of $ 73.1 million primarily related to stock-based compensation expense , acquisition of avizorex and amortization and accretion and depreciation , partially offset by a net cash inflow of $ 24.0 million related to changes in operating assets and liabilities . during the year ended december 31 , 2018 , net cash used in operating activities of $ 152.6 million related to a net loss of $ 232.6 million , adjusted for non-cash items of $ 66.6 million primarily related to stock-based compensation expense , induced conversion of the 2014 convertible notes in july 2018 , amortization and accretion and depreciation , partially offset by a net cash outflow of $ 13.4 million related to 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 the following table summarizes our sources and uses of cash : replace_table_token_7_th operating activities during the year ended december 31 , 2020 , net cash used in operating activities of $ 64.7 million related to a net loss of $ 183.1 million , adjusted for non-cash items of $ 73.5 million primarily related to stock-based compensation expense , amortization and accretion and depreciation and net cash outflows of $ 44.9 million related to changes in operating assets and liabilities . other changes in operating assets and liabilities included the $ 50.0 million upfront payment paid by santen . during the year ended december 31 , 2019 , net cash used in operating activities of $ 150.4 million related to a net loss of $ 199.6 million , adjusted for non-cash items of $ 73.1 million primarily related to stock-based compensation expense , acquisition of avizorex and amortization and accretion and depreciation , partially offset by a net cash inflow of $ 24.0 million related to changes in operating assets and liabilities . during the year ended december 31 , 2018 , net cash used in operating activities of $ 152.6 million related to a net loss of $ 232.6 million , adjusted for non-cash items of $ 66.6 million primarily related to stock-based compensation expense , induced conversion of the 2014 convertible notes in july 2018 , amortization and accretion and depreciation , partially offset by a net cash outflow of $ 13.4 million related to changes in operating assets and liabilities . ``` Suspicious Activity Report : as a result of the positive mercury 3 results and the roclanda ® approval in europe , th ird parties expressed interest in a potential commercialization partnership in 81 and potentially beyond europe . we are currently engaged in discussions with potential partners , while we are simultaneously preparing on our own for pricing discussions in germany . in japan , we entered into the santen agreement in october 2020 to advance our clinical development and ultimately commercialize rhopressa ® and rocklatan ® in japan and eight other countries in asia . we initiated a rhopressa ® phase 3 clinical trial in december 2020 , the first of three expected phase 3 clinical trials in japan . clinical trials for rocklatan ® have not yet begun . glaucoma product manufacturing we have a sterile fill production facility in athlone , ireland , for the production of our fda approved products and clinical supplies with the goal of having the athlone manufacturing plant supply our ophthalmic products in all markets for which we received regulatory approval and are commercialized . the athlone manufacturing plant began manufacturing commercial supplies of rocklatan ® in the first quarter of 2020 and rhopressa ® in the third quarter of 2020 for distribution to the united states . shipments of commercial supply of rocklatan ® and rhopressa ® from the athlone manufacturing plant to the united states commenced in the third quarter of 2020 and in the fourth quarter of 2020 , respectively . the athlone manufacturing plant has also manufactured clinical supplies of rhopressa ® for the phase 3 clinical trials in japan . as the athlone manufacturing plant commenced operations in 2020 , it has not yet reached full capacity . we expect that the athlone manufacturing plant will have adequate capacity to produce rhopressa ® and rocklatan ® in the united states as well as for both the european and japanese commercial markets , if approved for commercial distribution in those markets . we may continue to use contract manufacturers to produce commercial supplies of rhopressa ® and rocklatan ® for distribution in the united states , but at reduced levels compared to before the athlone manufacturing plant was operational . product candidates and pipeline our strategy also includes enhancing our longer-term commercial potential by identifying and advancing additional product candidates through our internal discovery efforts , our entry into potential research collaborations or in-licensing arrangements or our acquisition of additional ophthalmic products or technologies or product candidates that complement our current product portfolio . ar-15512 is our product candidate for the treatment of dry eye disease , acquired in late 2019 , for which we initiated a phase 2b clinical trial named comet-1 in october 2020. furthermore , we are developing three sustained-release implants focused on retinal diseases , ar-1105 , ar-13503 sr and ar-14034 sr. for ar-1105 , we successfully completed a large phase 2 clinical trial for patients with macular edema due to rvo in july 2020 , which indicates sustained efficacy of up to six months , an important achievement in validating the potential capabilities of aerie 's sustained release platform . with respect to future plans for ar-1105 , we are currently evaluating next steps regarding clinical advancement into phase 3 along with commercialization prospects in both europe and the united states . for ar-13503 sr , we initiated a first in-human clinical safety study in the third quarter of 2019 for the treatment of wet amd and dme , which is currently ongoing . in addition , we are also working to advance our preclinical sustained-release retinal implant , ar-14034 sr , for which we anticipate filing an ind with the fda in the second half of 2022. we discovered and developed the active ingredient in rhopressa ® and rocklatan ® , netarsudil , and ar-13503 through a rational drug design approach that coupled medicinal chemistry with high content screening of compounds in proprietary cell- based assays . we selected and formulated netarsudil for preclinical in vivo testing following a detailed characterization of over 3,000 synthesized rock inhibitors , a number that has since grown to approximately 4,000. impact of the covid-19 pandemic in december 2019 , there was an outbreak of a new strain of coronavirus ( “ covid-19 ” ) and on march 11 , 2020 , the world health organization declared covid-19 a pandemic . the covid-19 pandemic has negatively impacted the global economy , disrupted global supply chains and workforce participation due to “ shelter-in-place ” restrictions by various governments worldwide and created significant volatility and disruption of financial markets . the health and safety of our employees , patients , prescribers and community are of utmost importance during this time and we are complying with all requirements and mandates from various agencies and governments . we are taking precautionary measures to protect our employees and our stakeholders and adapting company policy to maintain the continuity of our business . we continue to operate effectively as most of our manufacturing plant personnel are working at the manufacturing plant with precautionary measures in place , while the balance of our workforce is primarily working from home . while many eye-care professionals ' offices are operating at reduced capacity , we are using a combination of in-person and virtual tools and resources to remain in contact with eye-care professionals . aerie territory managers are experiencing 82 successful engagement with eye-care professionals through either traditional face-to-face office meetings or virtual resources . our sales force is interactively communicating with physicians via different technological platforms and local peer-to-peer educational meetings are primarily being implemented via webinars . certain geographic communities have resumed in-person speaker programs , while adhering to strict national guidelines with appropriate social distancing . as part of the support of the eye-care community , our territory managers are either delivering or arranging for delivery of product samples to the eye-care professionals ' offices when needed . story_separator_special_tag we do not assess whether a contract has a significant financing component if the expectation is such that the period between the transfer of the promised goods to the customer and the receipt of payment will be less than one year . standard credit terms do not exceed 75 days . we calculate our net product revenue based on the wholesale acquisition cost that we charge our distributors for rhopressa ® and rocklatan ® less provisions for ( i ) trade discounts and allowances , such as discounts for prompt payment and distributor fees , ( ii ) estimated rebates to third-party payers , estimated payments for medicare part d donut hole , patient co-pay program coupon utilization , chargebacks and other discount programs and ( iii ) reserves for expected product returns . the estimates of reserves established for variable consideration reflect current contractual and statutory requirements , known market events and trends , industry data , forecasted customer mix and lagged claims . provisions for revenue reserves reduced product revenues by $ 202.2 million and $ 105.9 million in aggregate for the years ended december 31 , 2020 and 2019 , respectively , a significant portion of which related to commercial and medicare part d rebates . the transaction price , which includes variable consideration reflecting the impact of discounts and allowances , may be subject to constraint and is included in the net product revenues only to the extent that it is probable that a significant reversal of the amount of the cumulative revenues recognized will not occur in a future period . actual amounts may ultimately differ from these estimates . if actual results vary , estimates may be adjusted in the period such change in estimate becomes known , which could have an impact on earnings in the period of adjustment . trade discounts and allowances : we generally provide discounts on sales of rhopressa ® and rocklatan ® to our distributors for prompt payment and pay fees for distribution services and for certain data that distributors provide to us . we expect our distributors to earn these discounts and fees , and accordingly deduct the full amount of these discounts and fees from our gross product revenues at the time such revenues are recognized . rebates , chargebacks and other discounts : we contract with third-party payers for coverage and reimbursement of rhopressa ® and rocklatan ® . we estimate the rebates and chargebacks we expect to be obligated to provide to third-party payers and deduct these estimated amounts from our gross product revenue at the time the revenue is recognized . we estimate the rebates and chargebacks that we expect to be obligated to provide to third-party payers based upon ( i ) our contracts and negotiations with these third-party payers , ( ii ) estimates regarding the payer mix for rhopressa ® and rocklatan ® based on third-party data and utilization , ( iii ) inventory held by distributors and ( iv ) estimates of inventory held at the retail channel . other discounts include our co-pay assistance programs for commercially-insured patients meeting certain eligibility requirements . the calculation of the accrual for co-pay assistance is based on an estimate of claims and the cost per claim that we expect to pay associated with product that has been recognized as revenue . 86 product returns : we estimate the amount of rhopressa ® and rocklatan ® that will be returned and deduct these estimated amounts from our gross revenue at the time the revenue is recognized . we currently estimate product returns based on historical information regarding returns of rhopressa ® and rocklatan ® as well as historical industry information regarding rates for comparable pharmaceutical products and product portfolios , the estimated remaining shelf life of rhopressa ® and rocklatan ® shipped to distributors , and contractual agreements with our distributors intended to limit the amount of inventory they maintain . reporting from the distributors includes distributor sales and inventory held by distributors , which provide us with visibility into the distribution channel to determine when product would be eligible to be returned . contract revenues from license agreements in the normal course of business , we conduct research and development activities pursuant to which we may license certain rights of our intellectual property to third parties . the terms of these arrangements typically include payment for a combination of one or more of the following : upfront license fees ; development , regulatory and sales-based milestone payments ; clinical or commercial supply services and royalties on net sales of licensed products . in determining the appropriate amount of revenue to be recognized as we fulfill our obligations under such agreements , the five steps outlined in “ — revenue recognition ” above are performed . as part of the accounting for these arrangements , judgment is used to determine : ( a ) the performance obligations based on the determination under step ( ii ) above ; ( b ) the transaction price under step ( iii ) above ; ( c ) the stand-alone selling price for each performance obligation identified in the contract for the allocation of transaction price under step ( iv ) above ; and ( d ) in some circumstances when control transfers and the appropriate measure of progress in order to recognize revenue under step ( v ) above . judgment is used to determine whether milestones or other variable consideration , should be included in the transaction price as described further below . the transaction price is allocated to each performance obligation on a relative stand-alone selling price basis , for which we recognize revenue as or when the performance obligations under the contract are satisfied . amounts received prior to revenue recognition are recorded as deferred revenue . amounts expected to be recognized as revenue within the 12 months following the balance sheet date are classified as current portion of deferred revenue in

on june 18 , 2020 ( the divestiture date ) , we completed the divestiture of our european logistics business , movianto ( the divestiture ) , as well as certain support functions in our dublin , ireland office , to walden group sas ( the buyer ) and ehdh ( as buyer 's guarantor ) for cash consideration of $ 133 million . the divestiture provides us with a greater ability to focus on and invest in our differentiated products , services and u.s. distribution businesses . the net proceeds were used to repurchase our 2021 notes ( see note 10 , “ debt ” ) . we recorded a loss of $ 65.5 million in connection with the divestiture for the year ended december 31 , 2020 . 19 as a result of the divestiture , the results of operations from our movianto business are reported as “ loss from discontinued operations , net of tax ” through the divestiture date and the related assets and liabilities were classified as “ held- for-sale ” in the consolidated balance sheet as of december 31 , 2019. see note 3 , “ discontinued operations , ” of the notes to consolidated financial statements for further information . unless otherwise indicated , the following information relates to continuing operations . income from continuing operations per diluted share was $ 1.39 for the year ended december 31 , 2020 , an increase of $ 1.76 compared to 2019. global solutions segment operating income was $ 30.9 million for the year ended december 31 , 2020 , compared to $ 83.6 million for 2019. the decline was due to lower distribution revenues as a result of customer non-renewals that occurred in 2019 and a reduction in elective surgical procedures primarily due to the impact of covid-19 . global products segment operating income was $ 260 million for the year ended december 31 , 2020 , compared to $ 65.1 million for 2019. the increase was a result of higher revenues from greater market demand for personal protective equipment and favorable product mix combined with continued operating efficiencies compared to 2019. covid-19 update we are closely monitoring the impact of covid-19 on all aspects of our business , including how it impacts our customers , teammates , suppliers , vendors and distribution channels . we have taken actions to protect our teammates while maintaining business continuity as we respond to the needs from this global pandemic . we will continue to actively monitor the situation and may take further actions that alter our business operations as may be required by federal , state or local authorities or that we determine are in the best interests of our teammates , customers , suppliers and shareholders . revenue in 2020 of $ 8.5 billion includes a significant overall impact from covid-19 related to the reduction of surgical procedures beginning in mid-march , which was partially offset by a greater demand for ppe . operating income also benefited from improved productivity and increased manufacturing output related to ppe , favorable product mix and operating efficiencies . we have expanded our ppe production operations to 24 hours a day , 7 days a week , and have taken measures to increase and improve our production such as retooling existing equipment , installing and optimizing new production lines and ramping up our new non-woven fabric machinery . we have delivered over 12 billion units of ppe to healthcare workers in the fight against covid-19 , of which approximately 5 billion units were produced with materials manufactured in our american factories or owens & minor owned facilities , since january 2020. we expect that we will continue servicing our customers ' needs related to the heightened demand for our ppe as a result of various factors , including the implementation of new regulations and healthcare protocols calling for increased use of ppe , healthcare professional preference for medical grade ppe , stockpile ppe demand and the creation of new channels for ppe demand in healthcare , non-healthcare and international markets . we are evaluating various government-sponsored covid-response stimulus , relief , and production initiatives such as under the dpa and recent cares act . in march 2020 , under the dpa , we were awarded a contract with the u.s. department of health and human services ( hhs ) to produce n-95 respirator masks in an effort to replenish the strategic national stockpile . in april 2020 , also under the dpa , the u.s. department of defense initiated a technology investment agreement with us involving up to $ 30.0 million of anticipated funding of assets to expand capacity to supply n-95 respirator masks . through december 31 , 2020 , approximately $ 27.0 million had been expended and $ 20.8 million had been reimbursed in accordance with this arrangement . in addition , as allowed under the cares act , we filed for $ 13.7 million and $ 17.6 million income tax refunds with the internal revenue service ( irs ) related to the carryback of net operating losses ( nol ) incurred in 2018 and 2019. as of december 31 , 2020 , we have received substantially all of the refunds . in connection with these nol carryback items , we recorded a $ 12.5 million income tax benefit for the year ended december 31 , 2020. we are unable to predict the timing of the pandemic and the full impact that covid-19 will have on our future financial position and operating results due to numerous variables and continued uncertainties . story_separator_special_tag in 2018 , the fourth quarter dividend was accrued at december 31 , 2018 and paid in january 2019. we paid cash dividends on our outstanding common stock at the rate of $ 0.0025 per common share for each of the four quarters of 2020 and 2019. in february 2021 , the board of directors approved the first quarter dividend of $ 0.0025 per common share . the payment of future dividends remains within the discretion of the board of directors and will depend upon our results of operations , financial condition , capital requirements , current and future limitations under our credit agreement ( as amended ) and other factors . we believe available financing sources , including cash generated by operating activities and borrowings under the credit agreement and receivables securitization program , will be sufficient to fund our working capital needs , capital expenditures , long-term strategic growth , payments under long-term debt and lease arrangements , payments of quarterly cash dividends , debt repurchases and other cash requirements . while we believe that we will have the ability to meet our financing needs in the foreseeable future , changes in economic conditions may impact ( i ) the ability of financial institutions to meet their contractual commitments to us , ( ii ) the ability of our customers and suppliers to meet their obligations to us or ( iii ) our cost of borrowing . we earn a portion of our operating income in foreign jurisdictions outside the united states . our cash and cash equivalents held by our foreign subsidiaries totaled $ 72.0 million and $ 52.9 million at december 31 , 2020 and 2019. we continue to remain permanently reinvested in our foreign subsidiaries , with the exception of a subsidiary in thailand . we have no specific plans to indefinitely reinvest the unremitted earnings of our foreign subsidiary located in thailand as of december 31 , 2020. as such , we have recorded withholding tax liabilities that would be incurred upon future distribution to the u.s. there are no unrecognized deferred taxes as there is no outside basis difference unrelated to unremitted earnings for thailand . we will continue to evaluate our foreign earnings repatriation policy in 2021 for all our foreign subsidiaries . guarantor and collateral group summarized financial information we are providing the following information in compliance with rule 13-01 , “ financial disclosures about guarantors and issuers of guaranteed securities ” and rule 13-02 of regulation s-x , of with respect to our 2024 notes . see note 10 of the accompanying consolidated financial statements for additional information regarding the terms of the 2024 notes . the following tables present summarized financial information for owens & minor , inc. and the guarantors of owens & minor , inc. 's 2024 notes ( together , `` the guarantor group `` ) , on a combined basis with intercompany balances and transactions between entities in the guarantor group eliminated . the guarantor subsidiaries are 100 % owned by owens & minor , inc. separate financial statements of the guarantor subsidiaries are not presented because the guarantees by our guarantor subsidiaries are full and unconditional , as well as joint and several . summarized financial information of the guarantor group is as follows : 26 summarized consolidated statement of operations - guarantor group for the year ended december 31 , 2020 ( dollars in thousands ) net revenue ( 1 ) $ 8,319,301 gross margin 1,202,019 operating income 166,761 income from continuing operations , net of tax 60,783 net income 60,783 ( 1 ) includes $ 190 million in sales to non-guarantor subsidiaries for the year ended december 31 , 2020. summarized consolidated balance sheet - guarantor group december 31 , 2020 ( dollars in thousands ) total current assets $ 1,559,248 intercompany receivable 399,484 total assets 2,943,125 current liabilities 1,374,800 intercompany payable 89,040 total liabilities 2,465,894 the following tables present summarized financial information for owens & minor , inc. and the subsidiaries of owens & minor , inc. 's 2024 notes pledged that constitute a substantial portion of collateral ( together , `` the collateral group `` ) , on a combined basis with intercompany balances and transactions between entities in the collateral group eliminated . the pledged subsidiaries are 100 % owned by owens & minor , inc. no trading market for the subsidiaries included in the collateral group exists . summarized financial information of the collateral group is as follows : summarized consolidated balance sheet - collateral group december 31 , 2020 ( dollars in thousands ) total current assets $ 1,651,460 intercompany receivable 158,651 total assets 2,851,226 current liabilities 1,356,024 intercompany payable 486,491 total liabilities 2,480,953 the results of operations of the collateral group are not materially different from the corresponding amounts presented in our consolidated statements of operations . off-balance sheet arrangements we do not have guarantees or other off-balance sheet financing arrangements , including variable interest entities , which we believe could have a material impact on financial condition or liquidity . critical accounting policies our consolidated financial statements and accompanying notes have been prepared in accordance with u.s. generally accepted accounting principles . the preparation of the financial statements requires us to make estimates and assumptions that affect the reported amounts and related disclosures . we continually evaluate the accounting policies and estimates used to prepare the financial statements . 27 critical accounting policies are defined as those policies that relate to estimates that require us to make assumptions about matters that are highly uncertain at the time the estimate is made and could have a material impact on our results due to changes in the estimate or the use of different assumptions that could reasonably have been used . our estimates are generally based on historical experience and various other assumptions that are judged to be reasonable in light of the relevant facts and circumstances . because of the uncertainty inherent in such estimates ,

capital resources . our sources of liquidity include cash and cash equivalents , a revolving credit facility under our credit agreement with bank of america , n.a , jpmorgan chase bank , n.a. , wells fargo bank , n.a. , and a syndicate of lenders ( the credit agreement ) , and the receivables securitization program . the credit agreement provides a revolving borrowing capacity of $ 400 million . the interest rate on our revolving credit facility and term a loans is based on 1 ) either the eurocurrency rate or the base rate plus 2 ) an applicable percentage which varies depending on consolidated total leverage ratio ( each as defined in the credit agreement ) . our interest rate on the revolving credit facility at december 31 , 2020 was eurocurrency rate plus 2.75 % . our term b loan accrues interest based on 1 ) either the eurocurrency rate or the base rate plus 2 ) an applicable percentage of 3.50 % per annum for base rate loans and 4.50 % per annum for eurocurrency rate loans ( each as defined in the credit agreement ) . our interest rate on the term b loan at december 31 , 2020 was eurocurrency rate plus 4.50 % . we are charged a commitment fee of between 12.5 and 25.0 basis points on the unused portion of the revolving credit facility . at december 31 , 2020 and 2019 , we had borrowings of $ 103 million and $ 178 million , and letters of credit of $ 13.9 million and $ 11.7 million , outstanding under the revolving credit facility . at december 31 , 2020 and 2019 , we had $ 283 million and $ 209 million , available for borrowing . the december 31 , 2019 availability reflected letters of credit associated with discontinued operations of $ 1.1 million . we also had letters of credit and bank guarantees outstanding for $ 1.6 million and $ 1.5 million as of december 31 , 2020 and 2019 , which supports certain leased facilities as well as other normal business activities in the united states and europe .

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 . our sources of liquidity include cash and cash equivalents , a revolving credit facility under our credit agreement with bank of america , n.a , jpmorgan chase bank , n.a. , wells fargo bank , n.a. , and a syndicate of lenders ( the credit agreement ) , and the receivables securitization program . the credit agreement provides a revolving borrowing capacity of $ 400 million . the interest rate on our revolving credit facility and term a loans is based on 1 ) either the eurocurrency rate or the base rate plus 2 ) an applicable percentage which varies depending on consolidated total leverage ratio ( each as defined in the credit agreement ) . our interest rate on the revolving credit facility at december 31 , 2020 was eurocurrency rate plus 2.75 % . our term b loan accrues interest based on 1 ) either the eurocurrency rate or the base rate plus 2 ) an applicable percentage of 3.50 % per annum for base rate loans and 4.50 % per annum for eurocurrency rate loans ( each as defined in the credit agreement ) . our interest rate on the term b loan at december 31 , 2020 was eurocurrency rate plus 4.50 % . we are charged a commitment fee of between 12.5 and 25.0 basis points on the unused portion of the revolving credit facility . at december 31 , 2020 and 2019 , we had borrowings of $ 103 million and $ 178 million , and letters of credit of $ 13.9 million and $ 11.7 million , outstanding under the revolving credit facility . at december 31 , 2020 and 2019 , we had $ 283 million and $ 209 million , available for borrowing . the december 31 , 2019 availability reflected letters of credit associated with discontinued operations of $ 1.1 million . we also had letters of credit and bank guarantees outstanding for $ 1.6 million and $ 1.5 million as of december 31 , 2020 and 2019 , which supports certain leased facilities as well as other normal business activities in the united states and europe . ``` Suspicious Activity Report : on june 18 , 2020 ( the divestiture date ) , we completed the divestiture of our european logistics business , movianto ( the divestiture ) , as well as certain support functions in our dublin , ireland office , to walden group sas ( the buyer ) and ehdh ( as buyer 's guarantor ) for cash consideration of $ 133 million . the divestiture provides us with a greater ability to focus on and invest in our differentiated products , services and u.s. distribution businesses . the net proceeds were used to repurchase our 2021 notes ( see note 10 , “ debt ” ) . we recorded a loss of $ 65.5 million in connection with the divestiture for the year ended december 31 , 2020 . 19 as a result of the divestiture , the results of operations from our movianto business are reported as “ loss from discontinued operations , net of tax ” through the divestiture date and the related assets and liabilities were classified as “ held- for-sale ” in the consolidated balance sheet as of december 31 , 2019. see note 3 , “ discontinued operations , ” of the notes to consolidated financial statements for further information . unless otherwise indicated , the following information relates to continuing operations . income from continuing operations per diluted share was $ 1.39 for the year ended december 31 , 2020 , an increase of $ 1.76 compared to 2019. global solutions segment operating income was $ 30.9 million for the year ended december 31 , 2020 , compared to $ 83.6 million for 2019. the decline was due to lower distribution revenues as a result of customer non-renewals that occurred in 2019 and a reduction in elective surgical procedures primarily due to the impact of covid-19 . global products segment operating income was $ 260 million for the year ended december 31 , 2020 , compared to $ 65.1 million for 2019. the increase was a result of higher revenues from greater market demand for personal protective equipment and favorable product mix combined with continued operating efficiencies compared to 2019. covid-19 update we are closely monitoring the impact of covid-19 on all aspects of our business , including how it impacts our customers , teammates , suppliers , vendors and distribution channels . we have taken actions to protect our teammates while maintaining business continuity as we respond to the needs from this global pandemic . we will continue to actively monitor the situation and may take further actions that alter our business operations as may be required by federal , state or local authorities or that we determine are in the best interests of our teammates , customers , suppliers and shareholders . revenue in 2020 of $ 8.5 billion includes a significant overall impact from covid-19 related to the reduction of surgical procedures beginning in mid-march , which was partially offset by a greater demand for ppe . operating income also benefited from improved productivity and increased manufacturing output related to ppe , favorable product mix and operating efficiencies . we have expanded our ppe production operations to 24 hours a day , 7 days a week , and have taken measures to increase and improve our production such as retooling existing equipment , installing and optimizing new production lines and ramping up our new non-woven fabric machinery . we have delivered over 12 billion units of ppe to healthcare workers in the fight against covid-19 , of which approximately 5 billion units were produced with materials manufactured in our american factories or owens & minor owned facilities , since january 2020. we expect that we will continue servicing our customers ' needs related to the heightened demand for our ppe as a result of various factors , including the implementation of new regulations and healthcare protocols calling for increased use of ppe , healthcare professional preference for medical grade ppe , stockpile ppe demand and the creation of new channels for ppe demand in healthcare , non-healthcare and international markets . we are evaluating various government-sponsored covid-response stimulus , relief , and production initiatives such as under the dpa and recent cares act . in march 2020 , under the dpa , we were awarded a contract with the u.s. department of health and human services ( hhs ) to produce n-95 respirator masks in an effort to replenish the strategic national stockpile . in april 2020 , also under the dpa , the u.s. department of defense initiated a technology investment agreement with us involving up to $ 30.0 million of anticipated funding of assets to expand capacity to supply n-95 respirator masks . through december 31 , 2020 , approximately $ 27.0 million had been expended and $ 20.8 million had been reimbursed in accordance with this arrangement . in addition , as allowed under the cares act , we filed for $ 13.7 million and $ 17.6 million income tax refunds with the internal revenue service ( irs ) related to the carryback of net operating losses ( nol ) incurred in 2018 and 2019. as of december 31 , 2020 , we have received substantially all of the refunds . in connection with these nol carryback items , we recorded a $ 12.5 million income tax benefit for the year ended december 31 , 2020. we are unable to predict the timing of the pandemic and the full impact that covid-19 will have on our future financial position and operating results due to numerous variables and continued uncertainties . story_separator_special_tag in 2018 , the fourth quarter dividend was accrued at december 31 , 2018 and paid in january 2019. we paid cash dividends on our outstanding common stock at the rate of $ 0.0025 per common share for each of the four quarters of 2020 and 2019. in february 2021 , the board of directors approved the first quarter dividend of $ 0.0025 per common share . the payment of future dividends remains within the discretion of the board of directors and will depend upon our results of operations , financial condition , capital requirements , current and future limitations under our credit agreement ( as amended ) and other factors . we believe available financing sources , including cash generated by operating activities and borrowings under the credit agreement and receivables securitization program , will be sufficient to fund our working capital needs , capital expenditures , long-term strategic growth , payments under long-term debt and lease arrangements , payments of quarterly cash dividends , debt repurchases and other cash requirements . while we believe that we will have the ability to meet our financing needs in the foreseeable future , changes in economic conditions may impact ( i ) the ability of financial institutions to meet their contractual commitments to us , ( ii ) the ability of our customers and suppliers to meet their obligations to us or ( iii ) our cost of borrowing . we earn a portion of our operating income in foreign jurisdictions outside the united states . our cash and cash equivalents held by our foreign subsidiaries totaled $ 72.0 million and $ 52.9 million at december 31 , 2020 and 2019. we continue to remain permanently reinvested in our foreign subsidiaries , with the exception of a subsidiary in thailand . we have no specific plans to indefinitely reinvest the unremitted earnings of our foreign subsidiary located in thailand as of december 31 , 2020. as such , we have recorded withholding tax liabilities that would be incurred upon future distribution to the u.s. there are no unrecognized deferred taxes as there is no outside basis difference unrelated to unremitted earnings for thailand . we will continue to evaluate our foreign earnings repatriation policy in 2021 for all our foreign subsidiaries . guarantor and collateral group summarized financial information we are providing the following information in compliance with rule 13-01 , “ financial disclosures about guarantors and issuers of guaranteed securities ” and rule 13-02 of regulation s-x , of with respect to our 2024 notes . see note 10 of the accompanying consolidated financial statements for additional information regarding the terms of the 2024 notes . the following tables present summarized financial information for owens & minor , inc. and the guarantors of owens & minor , inc. 's 2024 notes ( together , `` the guarantor group `` ) , on a combined basis with intercompany balances and transactions between entities in the guarantor group eliminated . the guarantor subsidiaries are 100 % owned by owens & minor , inc. separate financial statements of the guarantor subsidiaries are not presented because the guarantees by our guarantor subsidiaries are full and unconditional , as well as joint and several . summarized financial information of the guarantor group is as follows : 26 summarized consolidated statement of operations - guarantor group for the year ended december 31 , 2020 ( dollars in thousands ) net revenue ( 1 ) $ 8,319,301 gross margin 1,202,019 operating income 166,761 income from continuing operations , net of tax 60,783 net income 60,783 ( 1 ) includes $ 190 million in sales to non-guarantor subsidiaries for the year ended december 31 , 2020. summarized consolidated balance sheet - guarantor group december 31 , 2020 ( dollars in thousands ) total current assets $ 1,559,248 intercompany receivable 399,484 total assets 2,943,125 current liabilities 1,374,800 intercompany payable 89,040 total liabilities 2,465,894 the following tables present summarized financial information for owens & minor , inc. and the subsidiaries of owens & minor , inc. 's 2024 notes pledged that constitute a substantial portion of collateral ( together , `` the collateral group `` ) , on a combined basis with intercompany balances and transactions between entities in the collateral group eliminated . the pledged subsidiaries are 100 % owned by owens & minor , inc. no trading market for the subsidiaries included in the collateral group exists . summarized financial information of the collateral group is as follows : summarized consolidated balance sheet - collateral group december 31 , 2020 ( dollars in thousands ) total current assets $ 1,651,460 intercompany receivable 158,651 total assets 2,851,226 current liabilities 1,356,024 intercompany payable 486,491 total liabilities 2,480,953 the results of operations of the collateral group are not materially different from the corresponding amounts presented in our consolidated statements of operations . off-balance sheet arrangements we do not have guarantees or other off-balance sheet financing arrangements , including variable interest entities , which we believe could have a material impact on financial condition or liquidity . critical accounting policies our consolidated financial statements and accompanying notes have been prepared in accordance with u.s. generally accepted accounting principles . the preparation of the financial statements requires us to make estimates and assumptions that affect the reported amounts and related disclosures . we continually evaluate the accounting policies and estimates used to prepare the financial statements . 27 critical accounting policies are defined as those policies that relate to estimates that require us to make assumptions about matters that are highly uncertain at the time the estimate is made and could have a material impact on our results due to changes in the estimate or the use of different assumptions that could reasonably have been used . our estimates are generally based on historical experience and various other assumptions that are judged to be reasonable in light of the relevant facts and circumstances . because of the uncertainty inherent in such estimates ,

important factors currently known to management could cause actual results to differ materially from those in forward-looking statements . we undertake no obligation to update or revise forward-looking statements to reflect changed assumptions , the occurrence of unanticipated events or changes in the future operating results over time . we believe that our assumptions are based upon reasonable data derived from and known about our business and operations . no assurances are made that actual results of operations or the results of our future activities will not differ materially from our assumptions . factors that could cause differences include , but are not limited to , expected market demand for our products , fluctuations in pricing for materials , and competition . business overview we were formed in august 2015 to expand upon the successful implementation of a hydrogen energy system used to completely power a residence or commercial property with clean energy so that it can run independent of the utility grid and also provide energy to the utility grid for monetary credits . this system uses renewable energy as its source for hydrogen production . it functions as a self-sustaining clean energy system using hydrogen and fuel cell technology . its production of electricity is truly eco-friendly , as it is not produced by the use of fossil fuels . it is a revolutionary green-energy concept that is safe , renewable , self-sustaining and cost effective . there are great benefits to hydrogen energy . the use of hydrogen as an energy source produces no carbon dioxide or other greenhouse gases . unlike fossil fuels , the only emission from hydrogen is chemically pure water . hydrogen can be extracted from water using renewable energy from the sun and unlike batteries , hydrogen can be stored indefinitely . there is no drilling , fracking or mining required to produce hydrogen . we believe it is safe and the most abundant and cleanest energy source on the planet . in addition to offering this self-sustaining clean energy system using hydrogen and fuel cell technology , we offer a number of renewable energy services , such as audits of energy consumption , review of energy/tax credits available , feasibility studies , solar/battery system installation , zoning/permitting analysis , site design/preparation and restoration , system startup , testing , commissioning , maintenance and interconnection applications . we have succeeded in developing and installing hydrogen energy systems that are combined with renewable solar energy to produce clean electricity . we call the hydrogen energy system the hc-1 . the hc-1 system functions as a self-sustaining renewable energy system . it can be configured as an off grid solution for all your electricity needs or it can be connected to the grid to generate energy credits . it is a system comprised of solar , batteries , a hydrogen generator , a fuel cell and a hydrogen storage tank . when there is sunlight , the solar produce renewable energy that charges a bank of batteries . after the batteries are fully charged , the excess electricity is then combined with water through a hydrogen generator that extracts the hydrogen from the water in a gasified state , which is safely transferred to a tank and stored for later use . if the tank is full , excess electricity is sent from the batteries to the utility grid , which results in energy credits for the system owner . the electricity for the end user is always provided by the charged batteries . if there is no solar power to charge the batteries , the system keeps the batteries fully charged by using the hydrogen gas stored in the tank , which processed through a fuel cell , creates the electricity to charge the batteries . as the system is able to produce its own hydrogen gas , which keeps the tank full , it provides a continuous supply of clean energy and sustainability that is independent from the grid . each hc-1 system is custom designed to accommodate the electrical loads for an end user . the system is completely scalable . if a customer wishes to connect the system to the electrical grid in order to generate renewable energy credits , we obtain interconnection agreements from the local electric utility company . if the customer obtains authorization for interconnection to the utility grid , once the hc-1 system is operational , the hc-1 system owner can eliminate their electric bill and , if in a permissible state , can begin generating energy credits . in certain states , an end user receives one energy credit for each 1,000 kilowatt hours ( kwh ) produced through renewal energy . the customer sells these credits to a broker , who in turn sells the credits to a utility company so that the utility company can demonstrate their compliance with the regulatory obligations to reduce greenhouse gas emissions . the price per credit can vary depending on supply and demand . many other states that may not offer an energy credit program , do offer other cash incentives for renewable energy systems . 18 on january 31 , 2017 , we acquired the pride group ( qld ) pty ltd , an australian company ( “ pride ” ) . founded in 1997 , pride is a provider of security systems integration for a variety of customers in the government and commercial sector and has launched a new clean energy division to focus on the high growth renewable energy market in asia-pacific . on february 1 , 2018 , we acquired pvbj inc. ( “ pvbj ” ) . story_separator_special_tag in the event that we terminate the credit agreement , we will pay thermo an early termination fee equal to 4 % of the pro rata portion , which pro rata portion is determined by multiplying $ 350,000 by the number of months prior to the second anniversary of the effective date of the credit agreement and then dividing that by 24. the obligations of pvbj under the credit agreement may be accelerated upon the occurrence of an event of default under the credit agreement , which includes customary events of default including , without limitation , payment defaults , defaults in the performance of affirmative and negative covenants , the inaccuracy of representations or warranties , cross-defaults , bankruptcy and insolvency related defaults , defaults relating to judgments , an erisa reportable event occurs , a change of control and a change in our financial condition that could have a material adverse effect on us . as of march 25 , 2019 , we had outstanding borrowings of $ 149,248 under the credit agreement , and the interest rate was 9.5 % . equity purchase agreement on march 12 , 2019 , we entered into an equity purchase agreement ( the “ purchase agreement ” ) and a registration rights agreement ( the “ registration rights agreement ” ) with an accredited investor ( the “ investor ” ) , pursuant to which the investor has agreed to purchase from us up to $ 450,000 in shares ( the “ shares ” ) of our common stock , subject to certain limitations and conditions set forth in the purchase agreement . under the purchase agreement , the investor has the right , at any time , to purchase shares by delivering us a purchase notice , specifying the number of shares to be purchased . the purchase price for the shares under the purchase agreement will be 60 % of the lowest closing price of our common stock in the five consecutive trading days preceding the investor 's receipt of the shares subject to such equity purchase . in addition , the investor has an obligation , to the extent it has not already made voluntary purchases , to purchase up to ( i ) $ 200,000 in shares within 16 trading days ( as defined in the purchase agreement ) after the effective date of the registration statement ( as defined below ) and ( ii ) $ 450,000 in shares within 70 trading days after the effective date of the registration statement . we have the right to reject any purchase notice from the investor by delivering written notice of such rejection within one trading day after receipt . if we reject any purchase notice , the investor has no further obligations to purchase shares under the purchase agreement . we may terminate the purchase agreement at any time by written notice to the investor in the event of a material breach of the purchase agreement by the investor . in addition , the purchase agreement will automatically terminate on the earliest of : ( i ) the date that the investor has purchased $ 450,000 of shares ; ( ii ) 70 trading days after the effective date of the registration statement ; or ( iii ) the date the registration statement is no longer effective . the obligation of the investor to purchase the shares is subject to several conditions , including , among other thing , ( i ) that we have an effective registration statement with the sec registering the shares for resale , and ( ii ) that the purchase of the shares shall not cause the investor to own more than 9.99 % of the outstanding shares of common stock . in connection with the purchase agreement , we agreed to pay $ 15,000 of fees to the investor , of which $ 10,000 was paid on execution of the purchase agreement , and the remaining $ 5,000 will be paid on the first sale of shares . pursuant to the registration rights agreement , we are required to register the shares on a registration statement ( the “ registration statement ” ) to be filed with the sec within 15 calendar days after we file this annual report . additionally , on march 12 , 2019 , we agreed to donate 35,000 shares of common stock to the manager of the investor . 2019 convertible debenture financing on february 8 , 2019 , we entered into a securities purchase agreement ( the “ 2019 purchase agreement ” ) with two of our directors , pursuant to which we sold an aggregate principal amount of $ 150,000 in 10 % convertible debentures ( the “ 2019 debentures ” ) , convertible into shares of our common stock at a conversion price of $ 0.50 per share . the 2019 debentures , together with any accrued and unpaid interest , become due and payable on february 8 , 2021 ( the “ 2021 maturity date ” ) . interest on the 2019 debentures accrues at the rate of 10 % per annum , payable monthly in cash , beginning on march 1 , 2019 and on the 2021 maturity date . the 2019 debentures are convertible into common stock at a conversion price of $ 0.50 per share at the discretion of the holder , with special provisions applying to any holder whose conversion would result in the holder beneficially owning more than 4.99 % of our common stock . 22 2018 convertible debenture financing on january 2 , 2018 , we entered into a securities purchase agreement ( the “ 2018 purchase agreement ” ) with two of our directors , pursuant to which we sold an aggregate principal amount of $ 400,000 in 12 % convertible debentures ( the “ 2018 debentures ” ) , convertible into shares of our common stock at a conversion price of $ 0.75 per

liquidity and capital resources as of december 31 , 2018 , we had working capital of $ 18,098 , comprised of $ 1,087,381 of accounts receivables , $ 359,134 of cash , $ 45,478 of costs in excess of billings and $ 16,282 of prepaid expenses . this was offset by $ 891,354 of accounts payables and accrued expenses , $ 195,331 of billings in excess of cost , $ 190,736 of earn out payable , $ 65,265 of current capital leases payable $ 59,857 of sales and withholding tax payable , $ 38,991 of current equipment notes payable and $ 48,643 of income tax payable , which made up current liabilities at december 31 , 2018. for the year ended december 31 , 2018 , we used $ 364,646 of cash in operating activities , which represented our net loss of $ 554,010 , $ 194,105 of depreciation and amortization , $ 114,656 of billings in excess of cost , $ 68,293 of stock-based compensation , $ 28,261 of changes in accounts payable , $ 5,743 change in deferred tax asset , $ 15,418 on change in fair value contingent consideration $ 2,018 of prepaid expenses , $ 1,067 of costs in excess of billings , and $ 616 of bad debt expense , offset by $ 219,501 of changes in accounts receivables , and $ 17,276 of gain on the sale of 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 as of december 31 , 2018 , we had working capital of $ 18,098 , comprised of $ 1,087,381 of accounts receivables , $ 359,134 of cash , $ 45,478 of costs in excess of billings and $ 16,282 of prepaid expenses . this was offset by $ 891,354 of accounts payables and accrued expenses , $ 195,331 of billings in excess of cost , $ 190,736 of earn out payable , $ 65,265 of current capital leases payable $ 59,857 of sales and withholding tax payable , $ 38,991 of current equipment notes payable and $ 48,643 of income tax payable , which made up current liabilities at december 31 , 2018. for the year ended december 31 , 2018 , we used $ 364,646 of cash in operating activities , which represented our net loss of $ 554,010 , $ 194,105 of depreciation and amortization , $ 114,656 of billings in excess of cost , $ 68,293 of stock-based compensation , $ 28,261 of changes in accounts payable , $ 5,743 change in deferred tax asset , $ 15,418 on change in fair value contingent consideration $ 2,018 of prepaid expenses , $ 1,067 of costs in excess of billings , and $ 616 of bad debt expense , offset by $ 219,501 of changes in accounts receivables , and $ 17,276 of gain on the sale of assets . ``` Suspicious Activity Report : important factors currently known to management could cause actual results to differ materially from those in forward-looking statements . we undertake no obligation to update or revise forward-looking statements to reflect changed assumptions , the occurrence of unanticipated events or changes in the future operating results over time . we believe that our assumptions are based upon reasonable data derived from and known about our business and operations . no assurances are made that actual results of operations or the results of our future activities will not differ materially from our assumptions . factors that could cause differences include , but are not limited to , expected market demand for our products , fluctuations in pricing for materials , and competition . business overview we were formed in august 2015 to expand upon the successful implementation of a hydrogen energy system used to completely power a residence or commercial property with clean energy so that it can run independent of the utility grid and also provide energy to the utility grid for monetary credits . this system uses renewable energy as its source for hydrogen production . it functions as a self-sustaining clean energy system using hydrogen and fuel cell technology . its production of electricity is truly eco-friendly , as it is not produced by the use of fossil fuels . it is a revolutionary green-energy concept that is safe , renewable , self-sustaining and cost effective . there are great benefits to hydrogen energy . the use of hydrogen as an energy source produces no carbon dioxide or other greenhouse gases . unlike fossil fuels , the only emission from hydrogen is chemically pure water . hydrogen can be extracted from water using renewable energy from the sun and unlike batteries , hydrogen can be stored indefinitely . there is no drilling , fracking or mining required to produce hydrogen . we believe it is safe and the most abundant and cleanest energy source on the planet . in addition to offering this self-sustaining clean energy system using hydrogen and fuel cell technology , we offer a number of renewable energy services , such as audits of energy consumption , review of energy/tax credits available , feasibility studies , solar/battery system installation , zoning/permitting analysis , site design/preparation and restoration , system startup , testing , commissioning , maintenance and interconnection applications . we have succeeded in developing and installing hydrogen energy systems that are combined with renewable solar energy to produce clean electricity . we call the hydrogen energy system the hc-1 . the hc-1 system functions as a self-sustaining renewable energy system . it can be configured as an off grid solution for all your electricity needs or it can be connected to the grid to generate energy credits . it is a system comprised of solar , batteries , a hydrogen generator , a fuel cell and a hydrogen storage tank . when there is sunlight , the solar produce renewable energy that charges a bank of batteries . after the batteries are fully charged , the excess electricity is then combined with water through a hydrogen generator that extracts the hydrogen from the water in a gasified state , which is safely transferred to a tank and stored for later use . if the tank is full , excess electricity is sent from the batteries to the utility grid , which results in energy credits for the system owner . the electricity for the end user is always provided by the charged batteries . if there is no solar power to charge the batteries , the system keeps the batteries fully charged by using the hydrogen gas stored in the tank , which processed through a fuel cell , creates the electricity to charge the batteries . as the system is able to produce its own hydrogen gas , which keeps the tank full , it provides a continuous supply of clean energy and sustainability that is independent from the grid . each hc-1 system is custom designed to accommodate the electrical loads for an end user . the system is completely scalable . if a customer wishes to connect the system to the electrical grid in order to generate renewable energy credits , we obtain interconnection agreements from the local electric utility company . if the customer obtains authorization for interconnection to the utility grid , once the hc-1 system is operational , the hc-1 system owner can eliminate their electric bill and , if in a permissible state , can begin generating energy credits . in certain states , an end user receives one energy credit for each 1,000 kilowatt hours ( kwh ) produced through renewal energy . the customer sells these credits to a broker , who in turn sells the credits to a utility company so that the utility company can demonstrate their compliance with the regulatory obligations to reduce greenhouse gas emissions . the price per credit can vary depending on supply and demand . many other states that may not offer an energy credit program , do offer other cash incentives for renewable energy systems . 18 on january 31 , 2017 , we acquired the pride group ( qld ) pty ltd , an australian company ( “ pride ” ) . founded in 1997 , pride is a provider of security systems integration for a variety of customers in the government and commercial sector and has launched a new clean energy division to focus on the high growth renewable energy market in asia-pacific . on february 1 , 2018 , we acquired pvbj inc. ( “ pvbj ” ) . story_separator_special_tag in the event that we terminate the credit agreement , we will pay thermo an early termination fee equal to 4 % of the pro rata portion , which pro rata portion is determined by multiplying $ 350,000 by the number of months prior to the second anniversary of the effective date of the credit agreement and then dividing that by 24. the obligations of pvbj under the credit agreement may be accelerated upon the occurrence of an event of default under the credit agreement , which includes customary events of default including , without limitation , payment defaults , defaults in the performance of affirmative and negative covenants , the inaccuracy of representations or warranties , cross-defaults , bankruptcy and insolvency related defaults , defaults relating to judgments , an erisa reportable event occurs , a change of control and a change in our financial condition that could have a material adverse effect on us . as of march 25 , 2019 , we had outstanding borrowings of $ 149,248 under the credit agreement , and the interest rate was 9.5 % . equity purchase agreement on march 12 , 2019 , we entered into an equity purchase agreement ( the “ purchase agreement ” ) and a registration rights agreement ( the “ registration rights agreement ” ) with an accredited investor ( the “ investor ” ) , pursuant to which the investor has agreed to purchase from us up to $ 450,000 in shares ( the “ shares ” ) of our common stock , subject to certain limitations and conditions set forth in the purchase agreement . under the purchase agreement , the investor has the right , at any time , to purchase shares by delivering us a purchase notice , specifying the number of shares to be purchased . the purchase price for the shares under the purchase agreement will be 60 % of the lowest closing price of our common stock in the five consecutive trading days preceding the investor 's receipt of the shares subject to such equity purchase . in addition , the investor has an obligation , to the extent it has not already made voluntary purchases , to purchase up to ( i ) $ 200,000 in shares within 16 trading days ( as defined in the purchase agreement ) after the effective date of the registration statement ( as defined below ) and ( ii ) $ 450,000 in shares within 70 trading days after the effective date of the registration statement . we have the right to reject any purchase notice from the investor by delivering written notice of such rejection within one trading day after receipt . if we reject any purchase notice , the investor has no further obligations to purchase shares under the purchase agreement . we may terminate the purchase agreement at any time by written notice to the investor in the event of a material breach of the purchase agreement by the investor . in addition , the purchase agreement will automatically terminate on the earliest of : ( i ) the date that the investor has purchased $ 450,000 of shares ; ( ii ) 70 trading days after the effective date of the registration statement ; or ( iii ) the date the registration statement is no longer effective . the obligation of the investor to purchase the shares is subject to several conditions , including , among other thing , ( i ) that we have an effective registration statement with the sec registering the shares for resale , and ( ii ) that the purchase of the shares shall not cause the investor to own more than 9.99 % of the outstanding shares of common stock . in connection with the purchase agreement , we agreed to pay $ 15,000 of fees to the investor , of which $ 10,000 was paid on execution of the purchase agreement , and the remaining $ 5,000 will be paid on the first sale of shares . pursuant to the registration rights agreement , we are required to register the shares on a registration statement ( the “ registration statement ” ) to be filed with the sec within 15 calendar days after we file this annual report . additionally , on march 12 , 2019 , we agreed to donate 35,000 shares of common stock to the manager of the investor . 2019 convertible debenture financing on february 8 , 2019 , we entered into a securities purchase agreement ( the “ 2019 purchase agreement ” ) with two of our directors , pursuant to which we sold an aggregate principal amount of $ 150,000 in 10 % convertible debentures ( the “ 2019 debentures ” ) , convertible into shares of our common stock at a conversion price of $ 0.50 per share . the 2019 debentures , together with any accrued and unpaid interest , become due and payable on february 8 , 2021 ( the “ 2021 maturity date ” ) . interest on the 2019 debentures accrues at the rate of 10 % per annum , payable monthly in cash , beginning on march 1 , 2019 and on the 2021 maturity date . the 2019 debentures are convertible into common stock at a conversion price of $ 0.50 per share at the discretion of the holder , with special provisions applying to any holder whose conversion would result in the holder beneficially owning more than 4.99 % of our common stock . 22 2018 convertible debenture financing on january 2 , 2018 , we entered into a securities purchase agreement ( the “ 2018 purchase agreement ” ) with two of our directors , pursuant to which we sold an aggregate principal amount of $ 400,000 in 12 % convertible debentures ( the “ 2018 debentures ” ) , convertible into shares of our common stock at a conversion price of $ 0.75 per

” the following discussion includes a comparison of our results of operations and liquidity and capital resources for fiscal 2019 and fiscal 2018. a discussion of changes in our results of operations from fiscal 2017 to fiscal 2018 has been omitted from this form 10-k , but may be found in “ item 7. management 's discussion and analysis of financial condition and results of operations ” of our form 10-k for the fiscal year ended june 30 , 2018 , filed with the securities and exchange commission on august 24 , 2018. overview sysco distributes food and related products to restaurants , healthcare and educational facilities , lodging establishments and other foodservice customers . our primary operations are located in north america and europe . the company has aggregated certain operating segments into three reportable segments . “ other ” financial information is attributable to our other operating segments that do not meet the quantitative disclosure thresholds . u.s. foodservice operations - primarily includes u.s. broadline operations , which distribute a full line of food products , including custom-cut meat , seafood , specialty produce , specialty imports and a wide variety of non-food products ; international foodservice operations - includes operations in the americas and europe , which distribute a full line of food products and a wide variety of non-food products . the americas primarily consists of operations in canada , bahamas , mexico , costa rica and panama , as well as our operations that distribute to international customers . our european operations primarily consist of operations in the united kingdom ( u.k. ) , france , ireland and sweden ; sygma - our u.s. customized distribution subsidiary ; and other - primarily our hotel supply operations and sysco labs , which includes our suite of technology solutions that help support the business needs of our customers and provide support for some of our business technology needs . we estimate that we serve about 16 % of an approximately $ 300 billion annual foodservice market in the u.s. based on industry data obtained from technomic , inc. from time to time , technomic may revise the methodology used to calculate the size of the foodservice market and , as a result , our percentage can change not only from our sales results , but also from such revisions . we also serve certain international geographies that vary in size and amount of market share . 21 according to industry sources , the foodservice , or food-away-from-home , market represents approximately 52 % of the total dollars spent on food purchases made at the consumer level in the u.s. as of the end of calendar year 2018 . industry sources estimate the total foodservice market in the u.s. experienced a real sales increase of approximately 1.2 % in calendar year 2018 and 1.4 % in calendar year 2017 . real sales changes do not include the impact of inflation or deflation . highlights and trends our fiscal year 2019 financial performance improved year-over-year . we continue to focus on our customers and furthering the progress of our transformative initiatives that we believe will position us well for long-term growth and create value for our shareholders in fiscal 2020 and beyond . below is a comparison of results from fiscal 2019 to fiscal 2018 : sales : ◦ increased 2.4 % , or $ 1.4 billion , to $ 60.1 billion ; operating income : ◦ increased 0.7 % , or $ 16.1 million , to $ 2.3 billion ; ◦ adjusted operating income increased 7.9 % , or $ 199.9 million , to $ 2.7 billion ; net earnings : ◦ increased 17.0 % , or $ 243.5 million , to $ 1.7 billion ; ◦ adjusted net earnings increased 11.9 % , or $ 197.0 million , to $ 1.9 billion ; basic earnings per share : ◦ increased 18.2 % , or $ 0.50 , to $ 3.24 from the comparable prior year amount of $ 2.74 per share ; diluted earnings per share : ◦ increased 18.3 % , or $ 0.50 , to $ 3.20 from the comparable prior year amount of $ 2.70 per share ; and ◦ adjusted diluted earnings per share were $ 3.55 in fiscal 2019 , a 13.1 % increase from the comparable prior year amount of $ 3.14 per share . the overall macroeconomic trends continue to be positive in the u.s. , and the underlying economic picture remains relatively positive , including growth in gross domestic product of 2.1 % for the second quarter of calendar year 2019 and continued low unemployment , which was 3.7 % in july . consumer confidence has decreased slightly , but remains solid . these factors are important macroeconomic indicators that describe the environment in which our customers are currently operating and speak to the relative health of the food-away-from-home market . restaurant industry trends reflect same store sales that were relatively flat in june , while customer traffic continues to be negative . the economic outlook in the international geographies in which we operate is mostly positive ; however , the u.k. is experiencing low consumer confidence due to the uncertain outcome of brexit . our sales and gross profit performance can be influenced by multiple factors , including price , volume and product mix . the modest level of growth in the foodservice market has created additional competitive pricing pressures , which can adversely affect our profitability . the majority of our sales are to locally managed customers and national customers . our locally managed customers , including independent restaurant customers , represent a greater percentage of our profitability as compared to national customers . case growth with our locally managed broadline business is important to drive gross profit dollar growth . we are maintaining our focus on growing our digital platform to continue the growth with our local customers . story_separator_special_tag operating expenses increased $ 23.6 million in fiscal 2019 , as compared to fiscal 2018 , primarily due to restructuring charges , largely in france , and supply chain transformation costs in the u.k. these activities resulted in restructuring charges that were combined with our brakes acquisition-related costs that are included within certain items . we incurred restructuring charges of $ 61.1 million relating to our france integration during fiscal 2019 . operating expense , on an adjusted basis , decreased 3.7 % , or $ 79.1 million , compared to fiscal 2018 . we have also begun to leverage broader sysco capabilities and processes to deliver improved synergies across europe . additionally , our regionalization efforts in canada continue to deliver benefits and have helped to drive improved cost performance . changes in exchange rates used to translate our foreign operating expenses into u.s. dollars further contributed to a decrease in operating expenses . results of sygma and other segment sygma operating companies distribute a full line of food products and a wide variety of non-food products to certain chain restaurant customer locations . sales sales were 4.8 % lower in fiscal 2019 than in fiscal 2018 . the decrease for fiscal 2019 was primarily attributable to a modest decline in case volumes , as we continue to focus on improving overall profitability . 28 operating income operating income increased by 14.2 % in fiscal 2019 , as compared to fiscal 2018 , due to improved gross margins and solid expense management . gross margin increased 30 basis points driven by higher product margins , while operating expenses decreased 1.9 % in fiscal 2019 , as compared to fiscal 2018 . operating expenses decreased in fiscal 2019 largely due to decreases in transportation costs , primarily resulting from our focus on removing unproductive miles and streamlining operations at under-performing locations . “ other ” segment information is attributable to our other operating segments that do not meet the quantitative disclosure thresholds , primarily including our hotel supply operations and sysco labs , which includes our suite of technology solutions that help support the business needs of our customers and provides support for some of our business technology needs . operating income decreased 9.2 % , or $ 3.6 million , in fiscal 2019 , as compared to fiscal 2018 . the decrease was primarily attributable to unfavorable results from our hotel supply operations , partially offset by improved results from sysco labs . guest supply gross profit grew 2.3 % , while operating expenses grew 7.1 % during fiscal 2019 . corporate expenses corporate expenses in fiscal 2019 increased $ 67.2 million , or 6.9 % , as compared to fiscal 2018 , due primarily to an increase in expenses related to our business technology initiatives , including accelerated depreciation on certain enterprise resource planning ( erp ) systems and software platforms that we are no longer using , along with higher pay-related expenses , partly driven by higher severance and relocation charges . corporate expenses , on an adjusted basis , decreased $ 12.9 million , or 1.5 % , as compared to fiscal 2018. certain items impacting fiscal 2019 totaled $ 171.1 million and were primarily expenses associated with our business transformation initiatives , as well as severance charges associated with our organizational changes , as compared to $ 91.0 million in fiscal 2018 . interest expense interest expense decreased $ 35.1 million in fiscal 2019 , as compared to fiscal 2018 , primarily due to a favorable comparison to the prior year as a result of the redemption of certain series of senior notes and debentures pursuant to a tender offer in fiscal 2018. interest charges related to the redemption costs noted above are considered certain items . excluding certain items , our interest expense increased $ 18.0 million in fiscal 2019 from fiscal 2018 , due to higher floating interest rates and a higher average balance of fixed rate debt . net earnings net earnings increased 17.0 % in fiscal 2019 , as compared to the prior year , due primarily to the items noted above for operating income and interest expense , as well as items impacting our income taxes that are discussed in note 20 , “ income taxes , ” in the notes to consolidated financial statements in item 8. these included the favorable impact of foreign tax credits generated as a result of distributions to sysco from our foreign operations at the end of fiscal 2018 , lower u.s. tax rates resulting from the enactment of the tax act and the favorable impact of excess tax benefits of equity-based compensation . adjusted net earnings increased 11.9 % in fiscal 2019 , primarily due to gross profit growth and favorable expense growth , including reduced administrative expense , partially offset by increased interest expense , which resulted in earnings growth that exceeded our operating income growth . earnings per share basic earnings per share in fiscal 2019 were $ 3.24 , an 18.2 % increase from the fiscal 2018 amount of $ 2.74 per share . diluted earnings per share in fiscal 2019 were $ 3.20 , an 18.3 % increase from the fiscal 2018 amount of $ 2.70 per share . adjusted diluted earnings per share in fiscal 2019 were $ 3.55 , a 13.1 % increase from the fiscal 2018 amount of $ 3.14 per share . these results were primarily attributable to the factors discussed above related to net earnings and a decrease in outstanding shares that resulted from our share repurchases in fiscal 2019 and fiscal 2018 . non-gaap reconciliations our discussion below and elsewhere herein of our results includes certain non-gaap financial measures that we believe provide important perspective with respect to underlying business trends . other than free cash flow , any non-gaap financial measures will be denoted as adjusted measures and exclude the impact from restructuring and transformational project costs consisting of : ( 1

debt activity and borrowing availability our debt activity , including issuances and repayments , and our borrowing availability is described in note 13 , “ debt and other financing arrangements , ” in the notes to consolidated financial statements in item 8. our outstanding borrowings at june 29 , 2019 , and repayment activity since the end of fiscal 2019 are disclosed within those notes . updated amounts at august 9 , 2019 , include : $ 466.2 million outstanding from our commercial paper program ; and no amounts outstanding from the credit facility supporting the company 's u.s. commercial paper program . our aggregate commercial paper issuances and short-term bank borrowings had weighted average interest rates of 2.47 % for fiscal 2019 and 1.71 % for fiscal 2018 . off-balance sheet arrangements we have no off-balance sheet arrangements . 38 contractual obligations the following table sets forth , as of june 29 , 2019 , certain information concerning our obligations and commitments to make contractual future payments : replace_table_token_18_th ( 1 ) the estimate of the timing of future payments under the executive deferred compensation plan and management savings plan involves the use of certain assumptions , including retirement ages and payout periods . ( 2 ) includes estimated contributions to the unfunded supplemental executive retirement plan ( serp ) and other postretirement benefit plans made in amounts needed to fund benefit payments for vested participants in these plans through fiscal 2029 , based on actuarial assumptions . ( 3 ) unrecognized tax benefits relate to uncertain tax positions recorded under accounting standards related to uncertain tax positions . as of june 29 , 2019 , we had a liability of $ 26.1 million for unrecognized tax benefits for all tax jurisdictions and $ 4.6 million for related interest that could result in cash payment , of which $ 10.9 million could settle in cash . we are not able to reasonably estimate the timing of payments or the amount by which the liability will increase or decrease over time . accordingly , the related balances have not been reflected in the “ payments due by period ” section of the table .

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 activity and borrowing availability our debt activity , including issuances and repayments , and our borrowing availability is described in note 13 , “ debt and other financing arrangements , ” in the notes to consolidated financial statements in item 8. our outstanding borrowings at june 29 , 2019 , and repayment activity since the end of fiscal 2019 are disclosed within those notes . updated amounts at august 9 , 2019 , include : $ 466.2 million outstanding from our commercial paper program ; and no amounts outstanding from the credit facility supporting the company 's u.s. commercial paper program . our aggregate commercial paper issuances and short-term bank borrowings had weighted average interest rates of 2.47 % for fiscal 2019 and 1.71 % for fiscal 2018 . off-balance sheet arrangements we have no off-balance sheet arrangements . 38 contractual obligations the following table sets forth , as of june 29 , 2019 , certain information concerning our obligations and commitments to make contractual future payments : replace_table_token_18_th ( 1 ) the estimate of the timing of future payments under the executive deferred compensation plan and management savings plan involves the use of certain assumptions , including retirement ages and payout periods . ( 2 ) includes estimated contributions to the unfunded supplemental executive retirement plan ( serp ) and other postretirement benefit plans made in amounts needed to fund benefit payments for vested participants in these plans through fiscal 2029 , based on actuarial assumptions . ( 3 ) unrecognized tax benefits relate to uncertain tax positions recorded under accounting standards related to uncertain tax positions . as of june 29 , 2019 , we had a liability of $ 26.1 million for unrecognized tax benefits for all tax jurisdictions and $ 4.6 million for related interest that could result in cash payment , of which $ 10.9 million could settle in cash . we are not able to reasonably estimate the timing of payments or the amount by which the liability will increase or decrease over time . accordingly , the related balances have not been reflected in the “ payments due by period ” section of the table . ``` Suspicious Activity Report : ” the following discussion includes a comparison of our results of operations and liquidity and capital resources for fiscal 2019 and fiscal 2018. a discussion of changes in our results of operations from fiscal 2017 to fiscal 2018 has been omitted from this form 10-k , but may be found in “ item 7. management 's discussion and analysis of financial condition and results of operations ” of our form 10-k for the fiscal year ended june 30 , 2018 , filed with the securities and exchange commission on august 24 , 2018. overview sysco distributes food and related products to restaurants , healthcare and educational facilities , lodging establishments and other foodservice customers . our primary operations are located in north america and europe . the company has aggregated certain operating segments into three reportable segments . “ other ” financial information is attributable to our other operating segments that do not meet the quantitative disclosure thresholds . u.s. foodservice operations - primarily includes u.s. broadline operations , which distribute a full line of food products , including custom-cut meat , seafood , specialty produce , specialty imports and a wide variety of non-food products ; international foodservice operations - includes operations in the americas and europe , which distribute a full line of food products and a wide variety of non-food products . the americas primarily consists of operations in canada , bahamas , mexico , costa rica and panama , as well as our operations that distribute to international customers . our european operations primarily consist of operations in the united kingdom ( u.k. ) , france , ireland and sweden ; sygma - our u.s. customized distribution subsidiary ; and other - primarily our hotel supply operations and sysco labs , which includes our suite of technology solutions that help support the business needs of our customers and provide support for some of our business technology needs . we estimate that we serve about 16 % of an approximately $ 300 billion annual foodservice market in the u.s. based on industry data obtained from technomic , inc. from time to time , technomic may revise the methodology used to calculate the size of the foodservice market and , as a result , our percentage can change not only from our sales results , but also from such revisions . we also serve certain international geographies that vary in size and amount of market share . 21 according to industry sources , the foodservice , or food-away-from-home , market represents approximately 52 % of the total dollars spent on food purchases made at the consumer level in the u.s. as of the end of calendar year 2018 . industry sources estimate the total foodservice market in the u.s. experienced a real sales increase of approximately 1.2 % in calendar year 2018 and 1.4 % in calendar year 2017 . real sales changes do not include the impact of inflation or deflation . highlights and trends our fiscal year 2019 financial performance improved year-over-year . we continue to focus on our customers and furthering the progress of our transformative initiatives that we believe will position us well for long-term growth and create value for our shareholders in fiscal 2020 and beyond . below is a comparison of results from fiscal 2019 to fiscal 2018 : sales : ◦ increased 2.4 % , or $ 1.4 billion , to $ 60.1 billion ; operating income : ◦ increased 0.7 % , or $ 16.1 million , to $ 2.3 billion ; ◦ adjusted operating income increased 7.9 % , or $ 199.9 million , to $ 2.7 billion ; net earnings : ◦ increased 17.0 % , or $ 243.5 million , to $ 1.7 billion ; ◦ adjusted net earnings increased 11.9 % , or $ 197.0 million , to $ 1.9 billion ; basic earnings per share : ◦ increased 18.2 % , or $ 0.50 , to $ 3.24 from the comparable prior year amount of $ 2.74 per share ; diluted earnings per share : ◦ increased 18.3 % , or $ 0.50 , to $ 3.20 from the comparable prior year amount of $ 2.70 per share ; and ◦ adjusted diluted earnings per share were $ 3.55 in fiscal 2019 , a 13.1 % increase from the comparable prior year amount of $ 3.14 per share . the overall macroeconomic trends continue to be positive in the u.s. , and the underlying economic picture remains relatively positive , including growth in gross domestic product of 2.1 % for the second quarter of calendar year 2019 and continued low unemployment , which was 3.7 % in july . consumer confidence has decreased slightly , but remains solid . these factors are important macroeconomic indicators that describe the environment in which our customers are currently operating and speak to the relative health of the food-away-from-home market . restaurant industry trends reflect same store sales that were relatively flat in june , while customer traffic continues to be negative . the economic outlook in the international geographies in which we operate is mostly positive ; however , the u.k. is experiencing low consumer confidence due to the uncertain outcome of brexit . our sales and gross profit performance can be influenced by multiple factors , including price , volume and product mix . the modest level of growth in the foodservice market has created additional competitive pricing pressures , which can adversely affect our profitability . the majority of our sales are to locally managed customers and national customers . our locally managed customers , including independent restaurant customers , represent a greater percentage of our profitability as compared to national customers . case growth with our locally managed broadline business is important to drive gross profit dollar growth . we are maintaining our focus on growing our digital platform to continue the growth with our local customers . story_separator_special_tag operating expenses increased $ 23.6 million in fiscal 2019 , as compared to fiscal 2018 , primarily due to restructuring charges , largely in france , and supply chain transformation costs in the u.k. these activities resulted in restructuring charges that were combined with our brakes acquisition-related costs that are included within certain items . we incurred restructuring charges of $ 61.1 million relating to our france integration during fiscal 2019 . operating expense , on an adjusted basis , decreased 3.7 % , or $ 79.1 million , compared to fiscal 2018 . we have also begun to leverage broader sysco capabilities and processes to deliver improved synergies across europe . additionally , our regionalization efforts in canada continue to deliver benefits and have helped to drive improved cost performance . changes in exchange rates used to translate our foreign operating expenses into u.s. dollars further contributed to a decrease in operating expenses . results of sygma and other segment sygma operating companies distribute a full line of food products and a wide variety of non-food products to certain chain restaurant customer locations . sales sales were 4.8 % lower in fiscal 2019 than in fiscal 2018 . the decrease for fiscal 2019 was primarily attributable to a modest decline in case volumes , as we continue to focus on improving overall profitability . 28 operating income operating income increased by 14.2 % in fiscal 2019 , as compared to fiscal 2018 , due to improved gross margins and solid expense management . gross margin increased 30 basis points driven by higher product margins , while operating expenses decreased 1.9 % in fiscal 2019 , as compared to fiscal 2018 . operating expenses decreased in fiscal 2019 largely due to decreases in transportation costs , primarily resulting from our focus on removing unproductive miles and streamlining operations at under-performing locations . “ other ” segment information is attributable to our other operating segments that do not meet the quantitative disclosure thresholds , primarily including our hotel supply operations and sysco labs , which includes our suite of technology solutions that help support the business needs of our customers and provides support for some of our business technology needs . operating income decreased 9.2 % , or $ 3.6 million , in fiscal 2019 , as compared to fiscal 2018 . the decrease was primarily attributable to unfavorable results from our hotel supply operations , partially offset by improved results from sysco labs . guest supply gross profit grew 2.3 % , while operating expenses grew 7.1 % during fiscal 2019 . corporate expenses corporate expenses in fiscal 2019 increased $ 67.2 million , or 6.9 % , as compared to fiscal 2018 , due primarily to an increase in expenses related to our business technology initiatives , including accelerated depreciation on certain enterprise resource planning ( erp ) systems and software platforms that we are no longer using , along with higher pay-related expenses , partly driven by higher severance and relocation charges . corporate expenses , on an adjusted basis , decreased $ 12.9 million , or 1.5 % , as compared to fiscal 2018. certain items impacting fiscal 2019 totaled $ 171.1 million and were primarily expenses associated with our business transformation initiatives , as well as severance charges associated with our organizational changes , as compared to $ 91.0 million in fiscal 2018 . interest expense interest expense decreased $ 35.1 million in fiscal 2019 , as compared to fiscal 2018 , primarily due to a favorable comparison to the prior year as a result of the redemption of certain series of senior notes and debentures pursuant to a tender offer in fiscal 2018. interest charges related to the redemption costs noted above are considered certain items . excluding certain items , our interest expense increased $ 18.0 million in fiscal 2019 from fiscal 2018 , due to higher floating interest rates and a higher average balance of fixed rate debt . net earnings net earnings increased 17.0 % in fiscal 2019 , as compared to the prior year , due primarily to the items noted above for operating income and interest expense , as well as items impacting our income taxes that are discussed in note 20 , “ income taxes , ” in the notes to consolidated financial statements in item 8. these included the favorable impact of foreign tax credits generated as a result of distributions to sysco from our foreign operations at the end of fiscal 2018 , lower u.s. tax rates resulting from the enactment of the tax act and the favorable impact of excess tax benefits of equity-based compensation . adjusted net earnings increased 11.9 % in fiscal 2019 , primarily due to gross profit growth and favorable expense growth , including reduced administrative expense , partially offset by increased interest expense , which resulted in earnings growth that exceeded our operating income growth . earnings per share basic earnings per share in fiscal 2019 were $ 3.24 , an 18.2 % increase from the fiscal 2018 amount of $ 2.74 per share . diluted earnings per share in fiscal 2019 were $ 3.20 , an 18.3 % increase from the fiscal 2018 amount of $ 2.70 per share . adjusted diluted earnings per share in fiscal 2019 were $ 3.55 , a 13.1 % increase from the fiscal 2018 amount of $ 3.14 per share . these results were primarily attributable to the factors discussed above related to net earnings and a decrease in outstanding shares that resulted from our share repurchases in fiscal 2019 and fiscal 2018 . non-gaap reconciliations our discussion below and elsewhere herein of our results includes certain non-gaap financial measures that we believe provide important perspective with respect to underlying business trends . other than free cash flow , any non-gaap financial measures will be denoted as adjusted measures and exclude the impact from restructuring and transformational project costs consisting of : ( 1

on occasion , the results of operations of our wood products business have been , and may in the future be , adversely affected if we are unable to pass cost increases through to our customers . the forest products industry in general and the wood products business in particular has been adversely affected since 2008 by the national decline in home building and the resulting weak demand and lower prices for wood products . as we experienced in 2012 , lumber demand in north america has started to improve and is expected to continue to increase due to improving housing starts and increased repair and remodel activity . 2012 form 10-k / 29 fluctuating timber prices . our results of operations and cash flows will be materially affected by the fluctuating nature of timber prices . a variety of factors affect prices for timber , including factors impacting demand , such as changes in wood products and pulpwood pricing and demand , which are affected by economic conditions , construction activity levels , interest rates , credit availability , population growth and weather conditions . all of these factors can vary by region and by timber type , such as sawlogs or pulpwood logs . timber prices are also affected by changes in timber supply at the local and national level . our timberland ownership is currently concentrated in arkansas , idaho and minnesota . in arkansas and minnesota , most timberlands are privately owned . historically , increases in timber prices have often resulted in substantial increases in harvesting on private timberlands , including lands not previously made available for commercial timber operations , causing a short-term increase in supply that has tended to moderate price increases . decreases in timber prices have often resulted in less harvesting activity , causing short-term decreases in supply that have tended to moderate price decreases . in idaho , where a greater proportion of timberland is government owned , any substantial increase in timber harvesting from government-owned lands could significantly reduce timber prices , which would harm our results of operations . for more than twenty years , environmental concerns and other factors have limited timber sales by federal agencies , which historically had been major suppliers of timber to the united states forest products industry , particularly in the west . any reversal of policy that substantially increases timber sales from government-owned land could have a material adverse effect on our results of operations and cash flows . on a local level , timber supplies can fluctuate depending upon factors such as changes in weather conditions and in the harvest strategies of local forest products industry participants , as well as occasionally high timber salvage efforts due to events such as storm damage , unusual pest infestations or fires . lumber demand in north america has started to improve and is expected to continue to increase due to improving housing starts and increased repair and remodel activity . several other factors , including demand from asia , the resource depletion caused by the mountain pine beetle , limited dealer inventories and a recovering manufacturing base , are also all contributing to higher lumber prices . the increased demand and higher prices for lumber will in turn likely have a positive effect on timber prices . in general , when pricing trends improve we increase our future harvest levels , and when pricing trends decline we decrease our harvest levels . harvest levels . changes in harvest levels on our timberlands also may have a significant impact on our results of operations . over the long term , we manage our timberlands on a sustainable yield basis to achieve a balance between timber growth and timber harvests . from time to time , however , we may choose , consistent with our environmental commitments , to harvest timber at levels above or below our estimate of sustainability for various reasons . on a short-term basis , we may adjust our timber harvest levels in response to market conditions . for example , in 2011 , in response to weak demand and low prices , we shifted a portion of our harvest from our southern region to our northern region to capture better pricing opportunities . in 2012 , due to continuing poor market conditions , we reduced the overall timber harvest from our lands to 3.6 million tons from 4.1 million tons in 2011. based on our current projections that take into consideration such factors as market conditions , the ages of our timber stands and recent timberland sales and acquisitions , we expect the overall timber harvest from our lands in 2013 to total approximately 3.8 million tons . the incremental increase over 2012 is primarily related to harvests from the new timberland acquisitions in arkansas made in 2012. we anticipate increasing our harvests to approximately 4.6 million tons annually in the next several years , as market conditions continue to improve along with increased housing starts . we also experience seasonally lower harvest activity during the winter and early spring due to weather conditions . longer term , our timber harvest levels will be affected by acquisitions of additional timberlands and sales of existing timberlands or timber deed sales . in addition to timberland acquisitions and sales , future timber harvest levels may be affected by changes in estimates of long-term sustainable yield because of silvicultural advances , natural disasters , fires and other hazards , regulatory constraints and other factors beyond our control . competition . the markets for our timber and wood products are highly competitive , and companies that have substantially greater financial resources than we do compete with us in each of our lines of business . logs and other fiber from our timberlands , as well as our wood products , are subject to competition primarily from timberland owners and wood products manufacturers in north america . demand for real estate . story_separator_special_tag revenues increased $ 27.7 million , or 6 % , in 2012 compared to 2011 , due to increased revenues from the wood products segment , partially offset by decreased revenues from the resource and real estate segments . a more detailed discussion of revenues follows in “ discussion of business segments . ” cost of goods sold . cost of goods sold increased $ 8.4 million , or 2 % , in 2012 over 2011 , primarily due to the increased cost of logs consumed , customer freight , and wages and benefits that resulted from increased production and operating hours at our wood products manufacturing facilities , partially offset by reduced logging and hauling costs from our resource segment due to the harvest deferral and lower basis of acres sold by our real estate segment . selling , general and administrative expenses . selling , general and administrative expenses increased $ 8.9 million , or 22 % , in 2012 over 2011 , primarily due to higher pension expense related to our legacy plans and increased compensation expenses and mark to market adjustments related to deferred compensation plans . environmental remediation charge . in 2011 , we recorded a pre-tax charge of $ 1.2 million to reflect increased remediation cost estimates associated with estimated liabilities related to our avery landing site in idaho . asset impairment charge . in 2012 , we recorded a $ 0.1 million charge related to write-downs of two of our real estate development projects . in 2011 , we recorded a charge of $ 1.2 million as a result of a change in the intended use of a warehouse . interest expense , net . net interest expense decreased $ 2.3 million in 2012 from 2011 due to the maturity and redemption of $ 21.7 million of debt and the lower interest rates associated with our interest rate swaps , combined with a $ 1.2 million non-cash charge in 2011 for deferred costs related to the reduction in our previous bank credit facility . 34 / potlatch corporation income tax provision . the income tax provision for 2012 was due to pre-tax income for potlatch trs . the income tax provision for 2011 was due to pre-tax income for potlatch trs and a $ 0.9 million valuation allowance related to a state net operating loss and tax credit carryforwards . discussion of business segments replace_table_token_8_th resource segment . revenues for the segment decreased $ 19.1 million , or 8 % , in 2012 from 2011 , due to our planned harvest deferral , primarily in arkansas , partially offset by higher sales prices , primarily in idaho , due to improving market conditions . total harvest volume decreased 14 % in 2012 from 2011 , accounting for a negative $ 31.2 million of the revenue variance , partially offset by a positive pricing variance of $ 12.3 million . the following table summarizes our harvest levels for the years ended december 31 : replace_table_token_9_th in our northern region , sawlog volume decreased 4 % due to the harvest deferral . sawlog prices increased 3 % as a result of strengthening demand for cedar and mixed sawlogs , partially offset by a change in product mix that contained less cedar . northern pulpwood volume decreased 17 % as a result of reduced pulpwood production in idaho in 2012 due to lower prices , and pulp and paper mill curtailments and closures in the lake states in 2012. pulpwood prices increased 4 % in 2012 over 2011 due to very low prices in the first half of 2011. in our southern region , sawlog volume decreased 33 % in 2012 from 2011 due to the harvest deferral , and prices decreased 1 % . southern pulpwood volume decreased 15 % in 2012 from 2011 due to the harvest deferral in 2012 , combined with increased production of pulpwood in 2011 resulting from pine plantation thinnings and favorable weather conditions in the latter part of 2011. pulpwood prices increased 6 % in 2012 over 2011 due to stronger demand due to decreased pine availability and a shift in product mix to higher-priced hardwoods . 2012 form 10-k / 35 expenses for the segment decreased $ 8.9 million , or 5 % , in 2012 from 2011 , primarily due to decreased logging and hauling costs and lower depletion as a result of the reduced harvest volume , partially offset by higher per-unit logging and hauling expenses , increased forest management costs due to catching up on deferred road maintenance , pre-commercial thinning and replanting , and increased commercial thinning . operating income for our resource segment decreased $ 10.2 million , or 17 % , in 2012 from 2011. real estate segment . revenues decreased $ 11.8 million , expenses decreased $ 8.5 million and operating income decreased $ 3.3 million in 2012 compared to 2011 , all primarily due to the sale of fewer acres of land in 2012. the following table summarizes our real estate sales for the years ended december 31 , 2012 and 2011 : replace_table_token_10_th wood products segment . revenues for the segment increased $ 57.8 million , or 21 % , in 2012 over 2011 , due to improved market conditions . lumber prices and volumes increased 15 % and 8 % , respectively , in 2012 over 2011. expenses for the segment increased $ 19.6 million , or 7 % , in 2012 over 2011. the cost of logs consumed , customer freight , and wages and benefits all increased as a result of increased production and operating hours . we recognized a negative $ 0.9 million charge to income related to our lumber hedge in 2012 compared to a benefit of $ 4.5 million in 2011. the wood products segment reported operating income of $ 45.5 million in 2012 compared to $ 7.3 million in 2011. year ended december 31 , 2011 compared to year ended december 31

net cash used for financing totaled $ 62.2 million in 2012 , $ 79.7 million in 2011 and $ 79.6 million in 2010. net cash used for financing in 2012 was primarily attributable to paying our quarterly cash distributions to stockholders , which totaled $ 50.0 million in 2012 , and the maturity and redemption of $ 21.7 million of debt , partially offset by the issuance of $ 12.0 million of term loans . net cash used for financing in 2011 was primarily attributable to paying our quarterly cash distributions to stockholders , which totaled $ 73.9 million in 2011 , and the maturity and redemption of $ 5.0 million of medium-term notes . net cash used for financing in 2010 was primarily attributable to paying our quarterly cash distributions to stockholders , which totaled $ 81.6 million in 2010. cash provided by discontinued operations totaled $ 3.0 million in 2010 , primarily reflecting the net proceeds from the sale of the prescott mill assets in november 2010. on december 11 , 2012 , we entered into a new unsecured bank credit facility with an expiration date of december 11 , 2017 , which superseded our previous secured bank credit facility with an expiration date of december 8 , 2013. concurrent with our entry into this new credit agreement , all of the mortgages on our timberlands and other liens and security interests securing the previous credit agreement , our 6.95 % debentures and our medium-term notes were released . this new credit agreement provides for a revolving line of credit of up to $ 250 million , including a $ 40 million subfacility for letters of credit and a $ 15 million subfacility for swing line loans . usage under either or both subfacilities reduces availability under the revolving line of credit . subject to certain conditions and agreement of the lenders , the bank credit facility may be increased by up to an additional $ 100 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. ```net cash used for financing totaled $ 62.2 million in 2012 , $ 79.7 million in 2011 and $ 79.6 million in 2010. net cash used for financing in 2012 was primarily attributable to paying our quarterly cash distributions to stockholders , which totaled $ 50.0 million in 2012 , and the maturity and redemption of $ 21.7 million of debt , partially offset by the issuance of $ 12.0 million of term loans . net cash used for financing in 2011 was primarily attributable to paying our quarterly cash distributions to stockholders , which totaled $ 73.9 million in 2011 , and the maturity and redemption of $ 5.0 million of medium-term notes . net cash used for financing in 2010 was primarily attributable to paying our quarterly cash distributions to stockholders , which totaled $ 81.6 million in 2010. cash provided by discontinued operations totaled $ 3.0 million in 2010 , primarily reflecting the net proceeds from the sale of the prescott mill assets in november 2010. on december 11 , 2012 , we entered into a new unsecured bank credit facility with an expiration date of december 11 , 2017 , which superseded our previous secured bank credit facility with an expiration date of december 8 , 2013. concurrent with our entry into this new credit agreement , all of the mortgages on our timberlands and other liens and security interests securing the previous credit agreement , our 6.95 % debentures and our medium-term notes were released . this new credit agreement provides for a revolving line of credit of up to $ 250 million , including a $ 40 million subfacility for letters of credit and a $ 15 million subfacility for swing line loans . usage under either or both subfacilities reduces availability under the revolving line of credit . subject to certain conditions and agreement of the lenders , the bank credit facility may be increased by up to an additional $ 100 million . ``` Suspicious Activity Report : on occasion , the results of operations of our wood products business have been , and may in the future be , adversely affected if we are unable to pass cost increases through to our customers . the forest products industry in general and the wood products business in particular has been adversely affected since 2008 by the national decline in home building and the resulting weak demand and lower prices for wood products . as we experienced in 2012 , lumber demand in north america has started to improve and is expected to continue to increase due to improving housing starts and increased repair and remodel activity . 2012 form 10-k / 29 fluctuating timber prices . our results of operations and cash flows will be materially affected by the fluctuating nature of timber prices . a variety of factors affect prices for timber , including factors impacting demand , such as changes in wood products and pulpwood pricing and demand , which are affected by economic conditions , construction activity levels , interest rates , credit availability , population growth and weather conditions . all of these factors can vary by region and by timber type , such as sawlogs or pulpwood logs . timber prices are also affected by changes in timber supply at the local and national level . our timberland ownership is currently concentrated in arkansas , idaho and minnesota . in arkansas and minnesota , most timberlands are privately owned . historically , increases in timber prices have often resulted in substantial increases in harvesting on private timberlands , including lands not previously made available for commercial timber operations , causing a short-term increase in supply that has tended to moderate price increases . decreases in timber prices have often resulted in less harvesting activity , causing short-term decreases in supply that have tended to moderate price decreases . in idaho , where a greater proportion of timberland is government owned , any substantial increase in timber harvesting from government-owned lands could significantly reduce timber prices , which would harm our results of operations . for more than twenty years , environmental concerns and other factors have limited timber sales by federal agencies , which historically had been major suppliers of timber to the united states forest products industry , particularly in the west . any reversal of policy that substantially increases timber sales from government-owned land could have a material adverse effect on our results of operations and cash flows . on a local level , timber supplies can fluctuate depending upon factors such as changes in weather conditions and in the harvest strategies of local forest products industry participants , as well as occasionally high timber salvage efforts due to events such as storm damage , unusual pest infestations or fires . lumber demand in north america has started to improve and is expected to continue to increase due to improving housing starts and increased repair and remodel activity . several other factors , including demand from asia , the resource depletion caused by the mountain pine beetle , limited dealer inventories and a recovering manufacturing base , are also all contributing to higher lumber prices . the increased demand and higher prices for lumber will in turn likely have a positive effect on timber prices . in general , when pricing trends improve we increase our future harvest levels , and when pricing trends decline we decrease our harvest levels . harvest levels . changes in harvest levels on our timberlands also may have a significant impact on our results of operations . over the long term , we manage our timberlands on a sustainable yield basis to achieve a balance between timber growth and timber harvests . from time to time , however , we may choose , consistent with our environmental commitments , to harvest timber at levels above or below our estimate of sustainability for various reasons . on a short-term basis , we may adjust our timber harvest levels in response to market conditions . for example , in 2011 , in response to weak demand and low prices , we shifted a portion of our harvest from our southern region to our northern region to capture better pricing opportunities . in 2012 , due to continuing poor market conditions , we reduced the overall timber harvest from our lands to 3.6 million tons from 4.1 million tons in 2011. based on our current projections that take into consideration such factors as market conditions , the ages of our timber stands and recent timberland sales and acquisitions , we expect the overall timber harvest from our lands in 2013 to total approximately 3.8 million tons . the incremental increase over 2012 is primarily related to harvests from the new timberland acquisitions in arkansas made in 2012. we anticipate increasing our harvests to approximately 4.6 million tons annually in the next several years , as market conditions continue to improve along with increased housing starts . we also experience seasonally lower harvest activity during the winter and early spring due to weather conditions . longer term , our timber harvest levels will be affected by acquisitions of additional timberlands and sales of existing timberlands or timber deed sales . in addition to timberland acquisitions and sales , future timber harvest levels may be affected by changes in estimates of long-term sustainable yield because of silvicultural advances , natural disasters , fires and other hazards , regulatory constraints and other factors beyond our control . competition . the markets for our timber and wood products are highly competitive , and companies that have substantially greater financial resources than we do compete with us in each of our lines of business . logs and other fiber from our timberlands , as well as our wood products , are subject to competition primarily from timberland owners and wood products manufacturers in north america . demand for real estate . story_separator_special_tag revenues increased $ 27.7 million , or 6 % , in 2012 compared to 2011 , due to increased revenues from the wood products segment , partially offset by decreased revenues from the resource and real estate segments . a more detailed discussion of revenues follows in “ discussion of business segments . ” cost of goods sold . cost of goods sold increased $ 8.4 million , or 2 % , in 2012 over 2011 , primarily due to the increased cost of logs consumed , customer freight , and wages and benefits that resulted from increased production and operating hours at our wood products manufacturing facilities , partially offset by reduced logging and hauling costs from our resource segment due to the harvest deferral and lower basis of acres sold by our real estate segment . selling , general and administrative expenses . selling , general and administrative expenses increased $ 8.9 million , or 22 % , in 2012 over 2011 , primarily due to higher pension expense related to our legacy plans and increased compensation expenses and mark to market adjustments related to deferred compensation plans . environmental remediation charge . in 2011 , we recorded a pre-tax charge of $ 1.2 million to reflect increased remediation cost estimates associated with estimated liabilities related to our avery landing site in idaho . asset impairment charge . in 2012 , we recorded a $ 0.1 million charge related to write-downs of two of our real estate development projects . in 2011 , we recorded a charge of $ 1.2 million as a result of a change in the intended use of a warehouse . interest expense , net . net interest expense decreased $ 2.3 million in 2012 from 2011 due to the maturity and redemption of $ 21.7 million of debt and the lower interest rates associated with our interest rate swaps , combined with a $ 1.2 million non-cash charge in 2011 for deferred costs related to the reduction in our previous bank credit facility . 34 / potlatch corporation income tax provision . the income tax provision for 2012 was due to pre-tax income for potlatch trs . the income tax provision for 2011 was due to pre-tax income for potlatch trs and a $ 0.9 million valuation allowance related to a state net operating loss and tax credit carryforwards . discussion of business segments replace_table_token_8_th resource segment . revenues for the segment decreased $ 19.1 million , or 8 % , in 2012 from 2011 , due to our planned harvest deferral , primarily in arkansas , partially offset by higher sales prices , primarily in idaho , due to improving market conditions . total harvest volume decreased 14 % in 2012 from 2011 , accounting for a negative $ 31.2 million of the revenue variance , partially offset by a positive pricing variance of $ 12.3 million . the following table summarizes our harvest levels for the years ended december 31 : replace_table_token_9_th in our northern region , sawlog volume decreased 4 % due to the harvest deferral . sawlog prices increased 3 % as a result of strengthening demand for cedar and mixed sawlogs , partially offset by a change in product mix that contained less cedar . northern pulpwood volume decreased 17 % as a result of reduced pulpwood production in idaho in 2012 due to lower prices , and pulp and paper mill curtailments and closures in the lake states in 2012. pulpwood prices increased 4 % in 2012 over 2011 due to very low prices in the first half of 2011. in our southern region , sawlog volume decreased 33 % in 2012 from 2011 due to the harvest deferral , and prices decreased 1 % . southern pulpwood volume decreased 15 % in 2012 from 2011 due to the harvest deferral in 2012 , combined with increased production of pulpwood in 2011 resulting from pine plantation thinnings and favorable weather conditions in the latter part of 2011. pulpwood prices increased 6 % in 2012 over 2011 due to stronger demand due to decreased pine availability and a shift in product mix to higher-priced hardwoods . 2012 form 10-k / 35 expenses for the segment decreased $ 8.9 million , or 5 % , in 2012 from 2011 , primarily due to decreased logging and hauling costs and lower depletion as a result of the reduced harvest volume , partially offset by higher per-unit logging and hauling expenses , increased forest management costs due to catching up on deferred road maintenance , pre-commercial thinning and replanting , and increased commercial thinning . operating income for our resource segment decreased $ 10.2 million , or 17 % , in 2012 from 2011. real estate segment . revenues decreased $ 11.8 million , expenses decreased $ 8.5 million and operating income decreased $ 3.3 million in 2012 compared to 2011 , all primarily due to the sale of fewer acres of land in 2012. the following table summarizes our real estate sales for the years ended december 31 , 2012 and 2011 : replace_table_token_10_th wood products segment . revenues for the segment increased $ 57.8 million , or 21 % , in 2012 over 2011 , due to improved market conditions . lumber prices and volumes increased 15 % and 8 % , respectively , in 2012 over 2011. expenses for the segment increased $ 19.6 million , or 7 % , in 2012 over 2011. the cost of logs consumed , customer freight , and wages and benefits all increased as a result of increased production and operating hours . we recognized a negative $ 0.9 million charge to income related to our lumber hedge in 2012 compared to a benefit of $ 4.5 million in 2011. the wood products segment reported operating income of $ 45.5 million in 2012 compared to $ 7.3 million in 2011. year ended december 31 , 2011 compared to year ended december 31

additionally , economic tensions and changes in international trade policies , including higher tariffs on imported goods and materials and renegotiation of free trade agreements , could impact the global market for defense products , services and solutions . u.s. political and economic environment the u.s. continues to face an uncertain political environment and substantial fiscal and economic challenges , which affect funding for discretionary and non-discretionary budgets . the budget control act of 2011 ( bca ) mandated spending caps for all federal discretionary spending across a ten-year period ( fy 2012 through fy 2021 ) , including specific limits for defense and non-defense spending . in prior years , these spending caps have been revised by separate bills for specific fiscal years . most recently , on february 9 , 2018 , congress passed the bipartisan budget act ( bba ) of 2018 , which raised the statutory budget caps for defense spending , including for overseas contingency operations ( oco ) , by $ 80 billion for fy 2018 and by $ 85 billion for fy 2019. the bba also raised non-defense spending by $ 63 billion for fy 2018 and $ 68 billion for fy 2019 and suspended the debt ceiling until march 1 , 2019. the original spending caps - 25 - northrop grumman corporation established by the bca will return for fy 2020 and fy 2021 without another statutory change . similarly , the suspension of the debt ceiling is expected to end on march 1 , 2019 absent further action . on march 23 , 2018 , the president signed the omnibus appropriations act for fy 2018 , which provided $ 1.3 trillion in discretionary funding for federal agencies . in total for fy 2018 , congress appropriated approximately $ 700 billion for national security , including approximately $ 630 billion for base discretionary funding and approximately $ 70 billion in oco funding . on september 28 , 2018 , full-year appropriations for fy 2019 were enacted representing over half of discretionary federal spending . for fy 2019 , congress appropriated approximately $ 716 billion for national security , including approximately $ 647 billion for base discretionary funding and approximately $ 69 billion in oco funding . a continuing resolution was approved to provide further funding for other agencies ( including nasa and other civil agencies ) through december 7 , 2018 , which was subsequently extended through december 21 , 2018. on december 22 , 2018 , u.s. government agencies that had not yet received full-year appropriations and did not otherwise have funding entered into a temporary shutdown . on january 25 , 2019 , a third continuing resolution was enacted , which funds these agencies through february 15 , 2019. the federal budget and debt ceiling are expected to continue to be the subject of considerable debate , which could have significant impacts on defense spending broadly and the company 's programs in particular . for further information on the risks we face from the current political and economic environment , see “ risk factors . ” operating performance assessment and reporting we manage and assess our business based on our performance on contracts and programs ( typically larger contracts or two or more closely-related contracts ) . we recognize sales from our portfolio of long-term contracts as control is transferred to the customer , primarily over time on a cost-to-cost basis ( cost incurred relative to costs estimated at completion ) . as a result , sales tend to fluctuate in concert with costs incurred across our large portfolio of contracts . due to federal acquisition regulation ( far ) rules that govern our u.s. government business and related cost accounting standards ( cas ) , most types of costs are allocable to u.s. government contracts . as such , we do not focus on individual cost groupings ( such as manufacturing , engineering and design labor , subcontractor , material , overhead and general and administrative ( g & a ) costs ) , as much as we do on total contract cost , which is the key driver of our sales and operating income . in evaluating our operating performance , we look primarily at changes in sales and operating income . where applicable , significant fluctuations in operating performance attributable to individual contracts or programs , or changes in a specific cost element across multiple contracts , are described in our analysis . based on this approach and the nature of our operations , the discussion of results of operations below first focuses on our four segments before distinguishing between products and services . changes in sales are generally described in terms of volume , while changes in margin rates are generally described in terms of performance and or contract mix . for purposes of this discussion , volume generally refers to increases or decreases in sales or cost from production/service activity levels and performance generally refers to non-volume related changes in profitability . contract mix generally refers to changes in the ratio of contract type and or lifecycle ( e.g . , cost-type , fixed-price , development , production , and or sustainment ) . consolidated operating results for purposes of the operating results discussion below , we assess our financial and operating performance using certain financial measures that are not calculated in accordance with gaap . these non-gaap financial measures exclude mtm ( expense ) benefit and related tax impacts , and are described as mtm-adjusted net earnings and mtm-adjusted diluted earnings per share . these non-gaap measures may be useful to investors and other users of our financial statements as supplemental measures in evaluating the company 's underlying financial performance by presenting the company 's operating results before the non-operational impact of pension and opb actuarial gains and losses . story_separator_special_tag space sales increased primarily due to higher restricted sales , partially offset by lower volume on the jwst and advanced extremely high frequency ( aehf ) programs . operating income for 2017 increased $ 91 million , or 8 percent , primarily due to higher sales , partially offset by a lower operating margin rate . operating margin rate decreased to 10.6 percent from 11.0 percent principally due to changes in contract mix on manned aircraft programs and a gain of $ 45 million recognized in the prior year associated with the sale of a property , partially offset by the previously discussed $ 56 million favorable eac adjustment largely related to performance incentives . innovation systems replace_table_token_15_th the sales and operating income above reflect the operating results of innovation systems subsequent to the merger date . in our comparative discussion below , we reference pro forma sales prepared in accordance with article 11 of regulation s-x and computed as if the merger had been completed as of january 1 , 2017. refer to note 2 to the consolidated financial statements for additional supplemental consolidated pro forma financial information . this pro forma financial information should not be considered indicative of the results that would have actually occurred if the merger had been consummated on january 1 , 2017 , nor are they indicative of future results . 2018 – innovation systems sales for 2018 were $ 5.6 billion and for 2017 were $ 4.8 billion , each on a pro forma basis . the $ 0.8 billion , or 17 percent , increase reflects higher volume in each business area . defense systems sales reflect increased international volume on armament systems programs and increased volume on the anti-radiation guided missile program and small caliber ammunition programs . flight systems sales were primarily driven by higher ground-based midcourse defense , a350 and f-35 volume . space systems sales increased primarily due to higher government satellite volume . - 32 - northrop grumman corporation mission systems replace_table_token_16_th 2018 – mission systems sales for 2018 increased $ 239 million , or 2 percent , as compared with 2017 , primarily due to higher sensors and processing volume , partially offset by lower cyber and isr and advanced capabilities volume . sensors and processing sales increased principally due to higher volume on restricted programs , communications programs , f-35 and electro-optical/infrared ( eo/ir ) self-protection programs . cyber and isr sales decreased primarily due to ramp-down on a restricted isr program . advanced capabilities sales reflect lower volume on the joint national integration center research and development ( jrdc ) program and follow on activity , partially offset by higher volume on several programs , including the integrated air and missile defense battle command system program . operating income for 2018 increased $ 78 million , or 5 percent , due to a higher operating margin rate and higher sales . operating margin rate increased to 13.0 percent from 12.6 percent primarily due to improved performance on cyber and isr and sensors and processing programs , partially offset by a $ 32 million benefit recognized in the prior year in connection with the 2017 cost claim described above . 2017 – mission systems sales for 2017 increased $ 309 million , or 3 percent , as compared with 2016 primarily due to higher sensors and processing volume , partially offset by lower cyber and isr volume . sensors and processing sales increased principally due to higher volume on f-35 sensors , eo/ir self-protection programs , communications programs and the sabr program . these increases were partially offset by lower volume on international ground-based radar programs . cyber and isr sales decreased primarily due to lower volume on restricted isr programs . operating income for 2017 decreased $ 26 million , or 2 percent , primarily due to a lower operating margin rate , partially offset by higher sales and $ 32 million recognized in connection with the 2017 cost claim described above . operating margin rate decreased to 12.6 percent from 13.2 percent primarily due to lower margin rates on sensors and processing and cyber and isr programs principally resulting from lower performance and changes in contract mix . this decrease was partially offset by improved margin rates at advanced capabilities primarily due to the prior year including a $ 49 million forward loss provision on an advanced capabilities program . technology services replace_table_token_17_th 2018 – technology services sales for 2018 decreased $ 390 million , or 8 percent , as compared with 2017 , due to lower volume on advanced defense services and system modernization and services programs , partially offset by higher volume on global logistics and modernization programs . advanced defense services and system modernization and services sales decreased primarily due to the completion of several programs , including jrdc , partially offset by higher volume on the saudi arabian ministry of national guard training support program ( through our interest in a joint venture for which we consolidate the financial results ) . global logistics and modernization sales increased primarily due to higher volume for several programs , including the special electronic mission aircraft program , partially offset by lower volume from the completion of the kc-10 program . operating income for 2018 decreased $ 6 million , or 1 percent , primarily due to lower sales , partially offset by a higher operating margin rate . operating margin rate increased to 10.3 percent from 9.6 percent primarily due to the close-out of a state it outsourcing program . 2017 – technology services sales for 2017 decreased $ 78 million , or 2 percent , as compared with 2016 , primarily due to lower volume on system modernization and services programs , partially offset by higher volume on global logistics and modernization programs . system modernization and services sales decreased principally due to the completion of several programs in 2016 and 2017. global logistics and modernization sales increased primarily

liquidity and capital resources we endeavor to ensure the most efficient conversion of operating income into cash for deployment in our business and to maximize shareholder value through cash deployment activities . in addition to our cash position , we use various financial measures to assist in capital deployment decision-making , including cash provided by operating activities and free cash flow , a non-gaap measure described in more detail below . as of december 31 , 2018 , we had cash and cash equivalents of $ 1.6 billion ; approximately $ 250 million was held outside of the u.s. by foreign subsidiaries . cash and cash equivalents and cash generated from operating activities , supplemented by borrowings under credit facilities , commercial paper and or in the capital markets , if needed , are expected to be sufficient to fund our operations for at least the next 12 months . capital expenditure commitments were $ 784 million at december 31 , 2018 , and are expected to be paid with cash on hand . - 35 - northrop grumman corporation operating cash flow the table below summarizes key components of cash flow provided by operating activities : replace_table_token_20_th ( 1 ) includes depreciation and amortization , mtm ( expense ) benefit , stock based compensation expense and deferred income taxes . 2018 – net cash provided by operating activities for 2018 increased by $ 1.2 billion , or 46 percent , as compared with 2017 , principally due to higher net earnings , which include the addition of innovation systems , and improved trade working capital performance .

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 endeavor to ensure the most efficient conversion of operating income into cash for deployment in our business and to maximize shareholder value through cash deployment activities . in addition to our cash position , we use various financial measures to assist in capital deployment decision-making , including cash provided by operating activities and free cash flow , a non-gaap measure described in more detail below . as of december 31 , 2018 , we had cash and cash equivalents of $ 1.6 billion ; approximately $ 250 million was held outside of the u.s. by foreign subsidiaries . cash and cash equivalents and cash generated from operating activities , supplemented by borrowings under credit facilities , commercial paper and or in the capital markets , if needed , are expected to be sufficient to fund our operations for at least the next 12 months . capital expenditure commitments were $ 784 million at december 31 , 2018 , and are expected to be paid with cash on hand . - 35 - northrop grumman corporation operating cash flow the table below summarizes key components of cash flow provided by operating activities : replace_table_token_20_th ( 1 ) includes depreciation and amortization , mtm ( expense ) benefit , stock based compensation expense and deferred income taxes . 2018 – net cash provided by operating activities for 2018 increased by $ 1.2 billion , or 46 percent , as compared with 2017 , principally due to higher net earnings , which include the addition of innovation systems , and improved trade working capital performance . ``` Suspicious Activity Report : additionally , economic tensions and changes in international trade policies , including higher tariffs on imported goods and materials and renegotiation of free trade agreements , could impact the global market for defense products , services and solutions . u.s. political and economic environment the u.s. continues to face an uncertain political environment and substantial fiscal and economic challenges , which affect funding for discretionary and non-discretionary budgets . the budget control act of 2011 ( bca ) mandated spending caps for all federal discretionary spending across a ten-year period ( fy 2012 through fy 2021 ) , including specific limits for defense and non-defense spending . in prior years , these spending caps have been revised by separate bills for specific fiscal years . most recently , on february 9 , 2018 , congress passed the bipartisan budget act ( bba ) of 2018 , which raised the statutory budget caps for defense spending , including for overseas contingency operations ( oco ) , by $ 80 billion for fy 2018 and by $ 85 billion for fy 2019. the bba also raised non-defense spending by $ 63 billion for fy 2018 and $ 68 billion for fy 2019 and suspended the debt ceiling until march 1 , 2019. the original spending caps - 25 - northrop grumman corporation established by the bca will return for fy 2020 and fy 2021 without another statutory change . similarly , the suspension of the debt ceiling is expected to end on march 1 , 2019 absent further action . on march 23 , 2018 , the president signed the omnibus appropriations act for fy 2018 , which provided $ 1.3 trillion in discretionary funding for federal agencies . in total for fy 2018 , congress appropriated approximately $ 700 billion for national security , including approximately $ 630 billion for base discretionary funding and approximately $ 70 billion in oco funding . on september 28 , 2018 , full-year appropriations for fy 2019 were enacted representing over half of discretionary federal spending . for fy 2019 , congress appropriated approximately $ 716 billion for national security , including approximately $ 647 billion for base discretionary funding and approximately $ 69 billion in oco funding . a continuing resolution was approved to provide further funding for other agencies ( including nasa and other civil agencies ) through december 7 , 2018 , which was subsequently extended through december 21 , 2018. on december 22 , 2018 , u.s. government agencies that had not yet received full-year appropriations and did not otherwise have funding entered into a temporary shutdown . on january 25 , 2019 , a third continuing resolution was enacted , which funds these agencies through february 15 , 2019. the federal budget and debt ceiling are expected to continue to be the subject of considerable debate , which could have significant impacts on defense spending broadly and the company 's programs in particular . for further information on the risks we face from the current political and economic environment , see “ risk factors . ” operating performance assessment and reporting we manage and assess our business based on our performance on contracts and programs ( typically larger contracts or two or more closely-related contracts ) . we recognize sales from our portfolio of long-term contracts as control is transferred to the customer , primarily over time on a cost-to-cost basis ( cost incurred relative to costs estimated at completion ) . as a result , sales tend to fluctuate in concert with costs incurred across our large portfolio of contracts . due to federal acquisition regulation ( far ) rules that govern our u.s. government business and related cost accounting standards ( cas ) , most types of costs are allocable to u.s. government contracts . as such , we do not focus on individual cost groupings ( such as manufacturing , engineering and design labor , subcontractor , material , overhead and general and administrative ( g & a ) costs ) , as much as we do on total contract cost , which is the key driver of our sales and operating income . in evaluating our operating performance , we look primarily at changes in sales and operating income . where applicable , significant fluctuations in operating performance attributable to individual contracts or programs , or changes in a specific cost element across multiple contracts , are described in our analysis . based on this approach and the nature of our operations , the discussion of results of operations below first focuses on our four segments before distinguishing between products and services . changes in sales are generally described in terms of volume , while changes in margin rates are generally described in terms of performance and or contract mix . for purposes of this discussion , volume generally refers to increases or decreases in sales or cost from production/service activity levels and performance generally refers to non-volume related changes in profitability . contract mix generally refers to changes in the ratio of contract type and or lifecycle ( e.g . , cost-type , fixed-price , development , production , and or sustainment ) . consolidated operating results for purposes of the operating results discussion below , we assess our financial and operating performance using certain financial measures that are not calculated in accordance with gaap . these non-gaap financial measures exclude mtm ( expense ) benefit and related tax impacts , and are described as mtm-adjusted net earnings and mtm-adjusted diluted earnings per share . these non-gaap measures may be useful to investors and other users of our financial statements as supplemental measures in evaluating the company 's underlying financial performance by presenting the company 's operating results before the non-operational impact of pension and opb actuarial gains and losses . story_separator_special_tag space sales increased primarily due to higher restricted sales , partially offset by lower volume on the jwst and advanced extremely high frequency ( aehf ) programs . operating income for 2017 increased $ 91 million , or 8 percent , primarily due to higher sales , partially offset by a lower operating margin rate . operating margin rate decreased to 10.6 percent from 11.0 percent principally due to changes in contract mix on manned aircraft programs and a gain of $ 45 million recognized in the prior year associated with the sale of a property , partially offset by the previously discussed $ 56 million favorable eac adjustment largely related to performance incentives . innovation systems replace_table_token_15_th the sales and operating income above reflect the operating results of innovation systems subsequent to the merger date . in our comparative discussion below , we reference pro forma sales prepared in accordance with article 11 of regulation s-x and computed as if the merger had been completed as of january 1 , 2017. refer to note 2 to the consolidated financial statements for additional supplemental consolidated pro forma financial information . this pro forma financial information should not be considered indicative of the results that would have actually occurred if the merger had been consummated on january 1 , 2017 , nor are they indicative of future results . 2018 – innovation systems sales for 2018 were $ 5.6 billion and for 2017 were $ 4.8 billion , each on a pro forma basis . the $ 0.8 billion , or 17 percent , increase reflects higher volume in each business area . defense systems sales reflect increased international volume on armament systems programs and increased volume on the anti-radiation guided missile program and small caliber ammunition programs . flight systems sales were primarily driven by higher ground-based midcourse defense , a350 and f-35 volume . space systems sales increased primarily due to higher government satellite volume . - 32 - northrop grumman corporation mission systems replace_table_token_16_th 2018 – mission systems sales for 2018 increased $ 239 million , or 2 percent , as compared with 2017 , primarily due to higher sensors and processing volume , partially offset by lower cyber and isr and advanced capabilities volume . sensors and processing sales increased principally due to higher volume on restricted programs , communications programs , f-35 and electro-optical/infrared ( eo/ir ) self-protection programs . cyber and isr sales decreased primarily due to ramp-down on a restricted isr program . advanced capabilities sales reflect lower volume on the joint national integration center research and development ( jrdc ) program and follow on activity , partially offset by higher volume on several programs , including the integrated air and missile defense battle command system program . operating income for 2018 increased $ 78 million , or 5 percent , due to a higher operating margin rate and higher sales . operating margin rate increased to 13.0 percent from 12.6 percent primarily due to improved performance on cyber and isr and sensors and processing programs , partially offset by a $ 32 million benefit recognized in the prior year in connection with the 2017 cost claim described above . 2017 – mission systems sales for 2017 increased $ 309 million , or 3 percent , as compared with 2016 primarily due to higher sensors and processing volume , partially offset by lower cyber and isr volume . sensors and processing sales increased principally due to higher volume on f-35 sensors , eo/ir self-protection programs , communications programs and the sabr program . these increases were partially offset by lower volume on international ground-based radar programs . cyber and isr sales decreased primarily due to lower volume on restricted isr programs . operating income for 2017 decreased $ 26 million , or 2 percent , primarily due to a lower operating margin rate , partially offset by higher sales and $ 32 million recognized in connection with the 2017 cost claim described above . operating margin rate decreased to 12.6 percent from 13.2 percent primarily due to lower margin rates on sensors and processing and cyber and isr programs principally resulting from lower performance and changes in contract mix . this decrease was partially offset by improved margin rates at advanced capabilities primarily due to the prior year including a $ 49 million forward loss provision on an advanced capabilities program . technology services replace_table_token_17_th 2018 – technology services sales for 2018 decreased $ 390 million , or 8 percent , as compared with 2017 , due to lower volume on advanced defense services and system modernization and services programs , partially offset by higher volume on global logistics and modernization programs . advanced defense services and system modernization and services sales decreased primarily due to the completion of several programs , including jrdc , partially offset by higher volume on the saudi arabian ministry of national guard training support program ( through our interest in a joint venture for which we consolidate the financial results ) . global logistics and modernization sales increased primarily due to higher volume for several programs , including the special electronic mission aircraft program , partially offset by lower volume from the completion of the kc-10 program . operating income for 2018 decreased $ 6 million , or 1 percent , primarily due to lower sales , partially offset by a higher operating margin rate . operating margin rate increased to 10.3 percent from 9.6 percent primarily due to the close-out of a state it outsourcing program . 2017 – technology services sales for 2017 decreased $ 78 million , or 2 percent , as compared with 2016 , primarily due to lower volume on system modernization and services programs , partially offset by higher volume on global logistics and modernization programs . system modernization and services sales decreased principally due to the completion of several programs in 2016 and 2017. global logistics and modernization sales increased primarily

operating expenses operations and maintenance o & m expenses include interconnection costs , labor expenses , turbine servicing costs , land payments , insurance , materials , supplies , shared services and administrative expenses attributable to nep 's projects , and costs and expenses under the msa , asas and o & m agreements ( see note 13 ) . o & m expenses also include the cost of maintaining and replacing certain parts for the projects in the portfolio to maintain , over the long term , operating income or operating capacity . o & m expenses increased $ 9 million during the year ended december 31 , 2018 primarily due to an increase of approximately $ 12 million in idr fees related to growth in nep 's distributions to its common unitholders and increases in o & m expenses at various projects , partly offset by a decrease of approximately $ 8 million as a result of the sale of canadian holdings . 41 o & m expenses related to the existing portfolio are expected to remain relatively stable from year to year . however , nep 's o & m expenses are likely to increase as nep acquires new projects . depreciation and amortization depreciation and amortization expense reflects costs associated with depreciation and amortization of nep 's assets , based on depreciable asset lives and consistent depreciation methodologies . for certain of the renewable energy projects , citcs have been elected and are recorded as a reduction in property , plant and equipment - net on the consolidated balance sheets and amortized as a reduction to depreciation and amortization expense over the estimated life of the related property . depreciation and amortization expense also includes a provision for wind and solar facility dismantlement , asset removal costs and accretion related to asset retirement obligations and the amortization of finite-lived intangible assets . depreciation and amortization expense decreased $ 23 million during the year ended december 31 , 2018 primarily as a result of the sale of canadian holdings . gain on disposal of canadian holdings during the year ended december 31 , 2018 , a subsidiary of nep completed the sale of canadian holdings and nep recognized a pre-tax gain of approximately $ 153 million . see note 2 - disposal of canadian holdings . other income ( deductions ) interest expense interest expense primarily consists of interest under long-term debt agreements and mark-to-market gains and losses on interest rate contracts . interest expense increased approximately $ 49 million during the year ended december 31 , 2018 primarily due to unfavorable mark-to-market activity of $ 56 million , partly offset by a decrease of $ 13 million in interest expense associated with the sale of canadian holdings . benefits associated with differential membership interests - net for the year ended december 31 , 2017 , benefits associated with differential membership interests - net reflects benefits recognized by nep as third-party investors received their portion of the economic attributes , including income tax attributes , of the underlying wind projects , net of associated costs . nep recognized income related to differential membership interests of approximately $ 370 million for the year ended december 31 , 2018 which , due to the adoption of an accounting standards update , is reflected as a loss attributable to noncontrolling interests in the consolidated statements of income , of which approximately $ 231 million related to the change in federal corporate income tax rates that became effective january 1 , 2018. see note 2 - differential membership interests . approximately $ 240 million of the loss attributable to differential membership interests relates to nee 's noncontrolling interest and $ 130 million is reflected as net income attributable to nep . other - net the increase in other - net for the year ended december 31 , 2018 primarily reflects an approximately $ 17 million increase related to 2018 gains on foreign currency exchange contracts ( see note 7 ) and the difference between the total net identifiable assets at fair value and the total consideration transferred for an acquisition in december 2018 ( see note 3 ) . income taxes for periods through december 31 , 2017 , when nep acquired a neer project , income taxes were calculated on the predecessor method using the separate return method applied to the group of renewable energy projects acquired . as a result of the governance changes discussed in note 3 , beginning in january 1 , 2018 , acquisitions from neer are no longer treated as common control acquisitions , and income taxes are calculated on the successor method under which taxes are calculated for nep as a single taxpaying corporation for u.s. federal and state income taxes ( based on its election to be taxed as a corporation ) . because nep opco is a limited partnership , nep only recognizes in income its applicable ownership share of u.s. income taxes related to the u.s. projects and , prior to the sale of canadian holdings , the canadian projects . nep 's former canadian subsidiaries were all canadian taxpayers , and therefore nep recognized in income all of the canadian taxes . income taxes include nep 's applicable ownership share of u.s. taxes and 100 % of canadian taxes . net income or loss attributable to noncontrolling interests includes no u.s. taxes and neer 's applicable ownership share of canadian taxes . net income attributable to nep includes nep 's applicable ownership share of u.s. and canadian taxes . for the year ended december 31 , 2018 , nep recorded income tax expense of approximately $ 6 million on income before income taxes of $ 273 million , resulting in an effective tax rate of approximately 2 % . story_separator_special_tag no u.s. income taxes were provided with regard to these entities for periods prior to the nep acquisition date . see note 5 . impairment of long-lived assets nep evaluates long-lived assets , including finite-lived intangible assets , for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable . an impairment loss is required to be recognized if the carrying value of the asset exceeds the undiscounted future net cash flows associated with that asset . the impairment loss to be recognized is the amount by which the carrying value of the long-lived asset exceeds the asset 's fair value . in most instances , the fair value is determined by discounting estimated future cash flows using an appropriate interest rate . the amount of future net cash flows , the timing of such cash flows and the determination of an appropriate interest rate all involve estimates and judgments about future events . in particular , the aggregate amount of cash flows determines whether an impairment exists , and the timing of the cash flows is critical in determining fair value for the purposes of determining the impairment loss to be recognized . because each assessment is based on the facts and circumstances associated with each long-lived asset , the effects of changes in assumptions can not be generalized . see note 15 - pg & e bankruptcy for a discussion of an impairment analysis related to the pg & e bankruptcy filing . business combinations certain assumptions and estimates are employed in determining the fair value of assets acquired , evaluating the fair value of liabilities assumed , as well as in determining the allocation of goodwill to a reporting unit . these estimates may be affected by factors such as changing market conditions , technological advances in the energy industry or changes in regulations governing that industry . other key inputs that require judgment include discount rates , comparable market transactions , estimated useful lives and probability of future transactions . the most significant assumptions requiring the most judgment involve identifying and estimating the fair value of intangible assets and property , plant and equipment and the associated useful lives for establishing amortization periods . to finalize purchase accounting for significant transactions , nep may utilize the services of independent valuation specialists to assist in the determination of the fair value of acquired intangible assets and property , plant and equipment . the allocation of the purchase price may be modified up to one year from the date of the acquisition if new information is obtained about the fair value of assets acquired and liabilities assumed . there are also significant judgments involved in estimating the value of any contingent purchase consideration , for example , additional cash or stock consideration to be earned based on the future results or performance of the acquired business . the value of this potential additional consideration is required to be estimated and recorded as part of the purchase accounting for the acquisition in the period when the transaction is effective . each quarter these estimates must be reevaluated based on actual results achieved and changes in circumstances , and the contingent consideration adjusted to reflect any change in fair value . see note 6 - contingent consideration . 49 goodwill and other intangible assets goodwill acquired in connection with business combinations represents the excess of consideration over the fair value of net assets acquired . for goodwill and intangible assets with indefinite lives , an assessment for impairment is performed annually or whenever an event indicating impairment may have occurred . nep completes the annual impairment test for goodwill and indefinite-lived intangibles using an assessment date of october 1. goodwill is reviewed for impairment by comparing the carrying value of a reporting unit 's net assets , including allocated goodwill , to the estimated fair value of a reporting unit . nep estimates the fair value of a reporting unit using a combination of the income , market and cost approaches . determining the fair value of a reporting unit requires judgment and the use of significant estimates and assumptions . such estimates and assumptions include revenue growth rates , future operating margins , the weighted average cost of capital , and future market conditions , among others . if a reporting unit 's carrying value is greater than its fair value , a second step is performed whereby the implied fair value of goodwill is estimated by allocating the fair value of a reporting unit in a hypothetical purchase price allocation analysis . a goodwill impairment charge would be recognized for the amount by which the carrying value of goodwill exceeds its reassessed fair value . nep performed its annual goodwill impairment test in october 2018 and determined , based on the results , that no goodwill impairment charge was required . quantitative and qualitative disclosures about market risk nep is exposed to several market risks in its normal business activities . market risk is the potential loss that may result from market changes associated with its business . the types of market risks include interest rate and counterparty credit risks . interest rate risk nep is exposed to risk resulting from changes in interest rates associated with outstanding and expected future debt issuances and borrowings . nep manages interest rate exposure by monitoring current interest rates , entering into interest rate swap contracts and using a combination of fixed rate and variable rate debt . interest rate swaps are used to mitigate and adjust interest rate exposure when deemed appropriate based upon market conditions or when required by financing agreements . nep has long-term debt instruments that subject it to the risk of loss associated with movements in market interest rates . at december 31 , 2018 , approximately 2 % of the long-term debt , including current maturities , was exposed to fluctuations in interest expense as the remaining balance was

liquidity and capital resources nep 's ongoing operations use cash to fund o & m expenses , maintenance capital expenditures , debt service payments and distributions to common and preferred unitholders and holders of noncontrolling interests . nep expects to satisfy these requirements primarily with internally generated cash flow . in addition , as a growth-oriented limited partnership , nep expects from time to time to make acquisitions and other investments . these acquisitions and investments are expected to be funded with borrowings under credit facilities or term loans , issuances of indebtedness , issuances of additional nep common units or preferred units , capital raised pursuant to other financing structures , cash on hand and cash generated from operations . these sources of funds are expected to be adequate to provide for nep 's short-term and long-term liquidity and capital needs , although its ability to make future acquisitions , expand existing projects and increase its distributions to common unitholders will depend on its ability to access the capital markets on acceptable terms . as a normal part of its business , depending on market conditions , nep expects from time to time to consider opportunities to repay , redeem , repurchase or refinance its indebtedness . in addition , nep expects from time to time to consider potential investments in new acquisitions . these events may cause nep to seek additional debt or equity financing , which may not be available on acceptable terms or at all . additional debt financing , if available , could impose operating restrictions , additional cash payment obligations and additional covenants . nep opco has agreed to allow neer or one of its affiliates to withdraw funds received by nep opco or its subsidiaries and to hold those funds in accounts of neer or one of its affiliates to the extent the funds are not required to pay project costs or otherwise required to be maintained by nep 's subsidiaries , until the financing agreements permit distributions to be made , or , in the case of nep opco , until such funds are required to make distributions or to pay expenses or other operating 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 nep 's ongoing operations use cash to fund o & m expenses , maintenance capital expenditures , debt service payments and distributions to common and preferred unitholders and holders of noncontrolling interests . nep expects to satisfy these requirements primarily with internally generated cash flow . in addition , as a growth-oriented limited partnership , nep expects from time to time to make acquisitions and other investments . these acquisitions and investments are expected to be funded with borrowings under credit facilities or term loans , issuances of indebtedness , issuances of additional nep common units or preferred units , capital raised pursuant to other financing structures , cash on hand and cash generated from operations . these sources of funds are expected to be adequate to provide for nep 's short-term and long-term liquidity and capital needs , although its ability to make future acquisitions , expand existing projects and increase its distributions to common unitholders will depend on its ability to access the capital markets on acceptable terms . as a normal part of its business , depending on market conditions , nep expects from time to time to consider opportunities to repay , redeem , repurchase or refinance its indebtedness . in addition , nep expects from time to time to consider potential investments in new acquisitions . these events may cause nep to seek additional debt or equity financing , which may not be available on acceptable terms or at all . additional debt financing , if available , could impose operating restrictions , additional cash payment obligations and additional covenants . nep opco has agreed to allow neer or one of its affiliates to withdraw funds received by nep opco or its subsidiaries and to hold those funds in accounts of neer or one of its affiliates to the extent the funds are not required to pay project costs or otherwise required to be maintained by nep 's subsidiaries , until the financing agreements permit distributions to be made , or , in the case of nep opco , until such funds are required to make distributions or to pay expenses or other operating costs . ``` Suspicious Activity Report : operating expenses operations and maintenance o & m expenses include interconnection costs , labor expenses , turbine servicing costs , land payments , insurance , materials , supplies , shared services and administrative expenses attributable to nep 's projects , and costs and expenses under the msa , asas and o & m agreements ( see note 13 ) . o & m expenses also include the cost of maintaining and replacing certain parts for the projects in the portfolio to maintain , over the long term , operating income or operating capacity . o & m expenses increased $ 9 million during the year ended december 31 , 2018 primarily due to an increase of approximately $ 12 million in idr fees related to growth in nep 's distributions to its common unitholders and increases in o & m expenses at various projects , partly offset by a decrease of approximately $ 8 million as a result of the sale of canadian holdings . 41 o & m expenses related to the existing portfolio are expected to remain relatively stable from year to year . however , nep 's o & m expenses are likely to increase as nep acquires new projects . depreciation and amortization depreciation and amortization expense reflects costs associated with depreciation and amortization of nep 's assets , based on depreciable asset lives and consistent depreciation methodologies . for certain of the renewable energy projects , citcs have been elected and are recorded as a reduction in property , plant and equipment - net on the consolidated balance sheets and amortized as a reduction to depreciation and amortization expense over the estimated life of the related property . depreciation and amortization expense also includes a provision for wind and solar facility dismantlement , asset removal costs and accretion related to asset retirement obligations and the amortization of finite-lived intangible assets . depreciation and amortization expense decreased $ 23 million during the year ended december 31 , 2018 primarily as a result of the sale of canadian holdings . gain on disposal of canadian holdings during the year ended december 31 , 2018 , a subsidiary of nep completed the sale of canadian holdings and nep recognized a pre-tax gain of approximately $ 153 million . see note 2 - disposal of canadian holdings . other income ( deductions ) interest expense interest expense primarily consists of interest under long-term debt agreements and mark-to-market gains and losses on interest rate contracts . interest expense increased approximately $ 49 million during the year ended december 31 , 2018 primarily due to unfavorable mark-to-market activity of $ 56 million , partly offset by a decrease of $ 13 million in interest expense associated with the sale of canadian holdings . benefits associated with differential membership interests - net for the year ended december 31 , 2017 , benefits associated with differential membership interests - net reflects benefits recognized by nep as third-party investors received their portion of the economic attributes , including income tax attributes , of the underlying wind projects , net of associated costs . nep recognized income related to differential membership interests of approximately $ 370 million for the year ended december 31 , 2018 which , due to the adoption of an accounting standards update , is reflected as a loss attributable to noncontrolling interests in the consolidated statements of income , of which approximately $ 231 million related to the change in federal corporate income tax rates that became effective january 1 , 2018. see note 2 - differential membership interests . approximately $ 240 million of the loss attributable to differential membership interests relates to nee 's noncontrolling interest and $ 130 million is reflected as net income attributable to nep . other - net the increase in other - net for the year ended december 31 , 2018 primarily reflects an approximately $ 17 million increase related to 2018 gains on foreign currency exchange contracts ( see note 7 ) and the difference between the total net identifiable assets at fair value and the total consideration transferred for an acquisition in december 2018 ( see note 3 ) . income taxes for periods through december 31 , 2017 , when nep acquired a neer project , income taxes were calculated on the predecessor method using the separate return method applied to the group of renewable energy projects acquired . as a result of the governance changes discussed in note 3 , beginning in january 1 , 2018 , acquisitions from neer are no longer treated as common control acquisitions , and income taxes are calculated on the successor method under which taxes are calculated for nep as a single taxpaying corporation for u.s. federal and state income taxes ( based on its election to be taxed as a corporation ) . because nep opco is a limited partnership , nep only recognizes in income its applicable ownership share of u.s. income taxes related to the u.s. projects and , prior to the sale of canadian holdings , the canadian projects . nep 's former canadian subsidiaries were all canadian taxpayers , and therefore nep recognized in income all of the canadian taxes . income taxes include nep 's applicable ownership share of u.s. taxes and 100 % of canadian taxes . net income or loss attributable to noncontrolling interests includes no u.s. taxes and neer 's applicable ownership share of canadian taxes . net income attributable to nep includes nep 's applicable ownership share of u.s. and canadian taxes . for the year ended december 31 , 2018 , nep recorded income tax expense of approximately $ 6 million on income before income taxes of $ 273 million , resulting in an effective tax rate of approximately 2 % . story_separator_special_tag no u.s. income taxes were provided with regard to these entities for periods prior to the nep acquisition date . see note 5 . impairment of long-lived assets nep evaluates long-lived assets , including finite-lived intangible assets , for impairment when events or changes in circumstances indicate that the carrying amount may not be recoverable . an impairment loss is required to be recognized if the carrying value of the asset exceeds the undiscounted future net cash flows associated with that asset . the impairment loss to be recognized is the amount by which the carrying value of the long-lived asset exceeds the asset 's fair value . in most instances , the fair value is determined by discounting estimated future cash flows using an appropriate interest rate . the amount of future net cash flows , the timing of such cash flows and the determination of an appropriate interest rate all involve estimates and judgments about future events . in particular , the aggregate amount of cash flows determines whether an impairment exists , and the timing of the cash flows is critical in determining fair value for the purposes of determining the impairment loss to be recognized . because each assessment is based on the facts and circumstances associated with each long-lived asset , the effects of changes in assumptions can not be generalized . see note 15 - pg & e bankruptcy for a discussion of an impairment analysis related to the pg & e bankruptcy filing . business combinations certain assumptions and estimates are employed in determining the fair value of assets acquired , evaluating the fair value of liabilities assumed , as well as in determining the allocation of goodwill to a reporting unit . these estimates may be affected by factors such as changing market conditions , technological advances in the energy industry or changes in regulations governing that industry . other key inputs that require judgment include discount rates , comparable market transactions , estimated useful lives and probability of future transactions . the most significant assumptions requiring the most judgment involve identifying and estimating the fair value of intangible assets and property , plant and equipment and the associated useful lives for establishing amortization periods . to finalize purchase accounting for significant transactions , nep may utilize the services of independent valuation specialists to assist in the determination of the fair value of acquired intangible assets and property , plant and equipment . the allocation of the purchase price may be modified up to one year from the date of the acquisition if new information is obtained about the fair value of assets acquired and liabilities assumed . there are also significant judgments involved in estimating the value of any contingent purchase consideration , for example , additional cash or stock consideration to be earned based on the future results or performance of the acquired business . the value of this potential additional consideration is required to be estimated and recorded as part of the purchase accounting for the acquisition in the period when the transaction is effective . each quarter these estimates must be reevaluated based on actual results achieved and changes in circumstances , and the contingent consideration adjusted to reflect any change in fair value . see note 6 - contingent consideration . 49 goodwill and other intangible assets goodwill acquired in connection with business combinations represents the excess of consideration over the fair value of net assets acquired . for goodwill and intangible assets with indefinite lives , an assessment for impairment is performed annually or whenever an event indicating impairment may have occurred . nep completes the annual impairment test for goodwill and indefinite-lived intangibles using an assessment date of october 1. goodwill is reviewed for impairment by comparing the carrying value of a reporting unit 's net assets , including allocated goodwill , to the estimated fair value of a reporting unit . nep estimates the fair value of a reporting unit using a combination of the income , market and cost approaches . determining the fair value of a reporting unit requires judgment and the use of significant estimates and assumptions . such estimates and assumptions include revenue growth rates , future operating margins , the weighted average cost of capital , and future market conditions , among others . if a reporting unit 's carrying value is greater than its fair value , a second step is performed whereby the implied fair value of goodwill is estimated by allocating the fair value of a reporting unit in a hypothetical purchase price allocation analysis . a goodwill impairment charge would be recognized for the amount by which the carrying value of goodwill exceeds its reassessed fair value . nep performed its annual goodwill impairment test in october 2018 and determined , based on the results , that no goodwill impairment charge was required . quantitative and qualitative disclosures about market risk nep is exposed to several market risks in its normal business activities . market risk is the potential loss that may result from market changes associated with its business . the types of market risks include interest rate and counterparty credit risks . interest rate risk nep is exposed to risk resulting from changes in interest rates associated with outstanding and expected future debt issuances and borrowings . nep manages interest rate exposure by monitoring current interest rates , entering into interest rate swap contracts and using a combination of fixed rate and variable rate debt . interest rate swaps are used to mitigate and adjust interest rate exposure when deemed appropriate based upon market conditions or when required by financing agreements . nep has long-term debt instruments that subject it to the risk of loss associated with movements in market interest rates . at december 31 , 2018 , approximately 2 % of the long-term debt , including current maturities , was exposed to fluctuations in interest expense as the remaining balance was

this estimated range includes projected toll charges and fees as well as increased claims liability for past claims , reserves increases to bring policies into compliance and other probable liabilities resulting from this tax compliance matter . our estimated range reflects the uncertainties with respect to the required course of action and other matters unknown at this time . currently , management believes there is not a specific 24 citizens , inc. and consolidated subsidiaries estimable amount for these probable liabilities and expenses which is more likely than other specific amounts within our estimated range . the process of determining our estimated range was a complex undertaking and involved management 's judgment based upon a variety of factors known at the time . given the number of factors considered and the significant variables assumed in establishing our estimated range , actual amounts incurred may exceed our reserve and the high end of our estimated range of expenses and liabilities . in addition , there is a reasonable possibility that we will incur other expenses related to this issue in 2015 , including consulting fees and potential system costs . we are not able to reasonably estimate these amounts as of the reporting date . current financial highlights the 2014 financial results are driven by our conservative business management and traditional life product sales . the interest rate environment continues to impact our results and our industry as investment yields are an integral component of our business operations . our assets grew $ 201 million in 2014 and totaled $ 1.4 billion as of december 31 , 2014 . total stockholders ' equity increased from $ 245.8 million at december 31 , 2013 , to $ 258.4 million at december 31 , 2014 due primarily to changes in unrealized gains on securities marked to market . insurance premiums rose 7.0 % and 3.7 % in 2014 and 2013 , respectively , primarily from our life insurance segment , which increased $ 9.9 million from amounts reported in 2013 . net investment income increased 12.2 % and 15.4 % for 2014 and 2013 , respectively , as rates have risen in 2014 compared to the prior two years . the average yield on the consolidated investment portfolio has changed from a yield of 3.81 % in 2012 up to 4.11 % in 2013 and increasing to a yield of 4.21 % in 2014 as rates have risen slightly and our new investments have been focused on municipals and corporates . the increase in the investment asset balances due to premium revenue growth has also contributed to the increase in net investment income . realized net investment losses during 2014 and 2013 of $ 19 thousand and $ 0.3 million were recognized due to losses of $ 0.4 million which were recorded on equity mutual fund issuers in both 2014 and 2013 , offset by gains from bond securities . 2012 gains resulted primarily from sales of securities that had been previously impaired due to declines in market values . other-than-temporary impairments on investment securities and other long-term assets were recorded in 2014 and 2012 of $ 427,000 and $ 1,319,000 , respectively , and are reported as realized losses . during 2014 , claims and surrenders expense increased 6.0 % from the comparable period in 2013 primarily due to an increase in surrender benefits in the life segment compared to the 2013 levels . the home service segment was impacted in 2012 by hurricane isaac which hit the louisiana coast on august 29 , 2012 and caused increased property claims . 2014 change in reserves resulted in liability increases resulting from increased sales of endowment products that build up reserves at a faster pace than whole life longer term mortality based products . additionally , the sustained low interest rate environment also results in a higher reserve development due to the lower interest yield assumptions over the past several years . general expense increased in 2014 by $ 10.0 million primarily due to the tax compliance issue noted above relating to product qualification under irc section 7702 and remediation costs that have been identified . we completed the acquisition of mglic in the first quarter of 2014 and the related results have been included in our financial results . mglic is now a wholly owned subsidiary of splic and is reported in the home service segment . life insurance . for over thirty-five years , cica and its predecessors have accepted policy applications from foreign nationals for u.s. dollar-denominated ordinary whole life insurance and endowment policies . we make our insurance products available using third-party marketing organizations and independent marketing consultants . 25 citizens , inc. and consolidated subsidiaries endowment product sales have been on the rise and represented approximately 76.1 % of new sales . the company offers a ten , fifteen and twenty year endowment and our top selling endowment is a product that matures at age sixty-five . we also introduced a new product in 2012 that is an endowment at age eighteen with a payout over four or five years . through the domestic market of our life insurance segment , we provide ordinary whole life , credit life insurance , and final expense policies to middle and lower income families and individuals in certain markets in the mountain west , mid-west and southern u.s. the majority of our domestic revenues are generated by the policies of domestic life insurance companies we have acquired since 1987. home service insurance . we provide final expense ordinary and industrial life insurance to middle and lower income individuals in louisiana , mississippi and arkansas . our policies in this segment are sold and serviced through a home service marketing distribution system utilizing employee-agents who work on a route system to collect premiums and service policyholders , and through networks of funeral homes that collect premiums and provide personal policyholder service . story_separator_special_tag replace_table_token_13_th endowment sales represent a significant portion of new business sales internationally , as these products continue to exceed our whole life sales in the current markets . in addition , most of our life insurance policies contain a policy loan provision , which allows the policyholder to use cash value of a policy to pay premiums . the policy loan asset balance increased 10.6 % year over year . the following table sets forth , by country , our direct premiums from our international life insurance business for the periods indicated . our international business and premium collections could be impacted by future changes relative to laws , regulations or economic events in the countries from which we accept applications . replace_table_token_14_th we continue to report strong first year and renewal premiums in our top producing countries as noted above , however this business is dependent on our clients having access to u.s. dollars . our international business and premium collections could be impacted by future changes relative to laws , regulations or economic events in the countries from which we accept applications . currently venezuela is experiencing civil unrest due to local demonstrations against crime , corruption and soaring inflation . in addition , there could be law changes in countries that may impact activities of our independent consultants . see `` item 1a . risk factors `` on pages 7 and 13 for additional information . 33 citizens , inc. and consolidated subsidiaries the following table sets forth our direct premiums by state from our domestic business for the periods indicated . replace_table_token_15_th a number of domestic life insurance companies we acquired had blocks of accident and health insurance policies . we entered a coinsurance agreement with an unaffiliated insurance company , unified life insurance company ( `` unified `` ) , under which it assumes substantially all of our accident and health policies . the coinsurance agreement allows for full assumption by unified of this business upon approval by state insurance authorities . the decrease in premiums for 2014 and 2013 was due to the fact that unified received state approval in many states and has obtained over 98 % assumption of all policies through 2014 . net investment income . net investment income has increased as the annual yield has increased 19 basis points in this segment from 2013 , as discussed in the consolidated results of operations above . replace_table_token_16_th realized investment gains ( losses ) , net . realized losses of $ 0.2 million in 2014 and 2013 and gains of 0.5 million in 2012 were recognized due to the write-down and sale of mutual fund holdings in 2014 and 2013 and due to disposals in 2012 of previously impaired equity mutual funds . claims and surrenders . a breakout of claims and surrender benefits is detailed below . replace_table_token_17_th 34 citizens , inc. and consolidated subsidiaries death claims expense decreased 3.0 % in 2014 and decreased 21.1 % in 2013 compared to 2012 . mortality experience has reflected improved results the past two years which is likely due to increased endowment sales and a client base that results in lower deaths reported . mortality experience is closely monitored by the company as a key performance indicator and these amounts were within expected levels . the increase in surrender expense is primarily related to our international business and is expected to increase over time due to the aging of this block of business . the majority of policy surrender benefits paid is attributable to our international business and was related to policies that have been in force over fifteen years , where surrender charges are no longer applicable . endowment benefit expense results from the election by policyholders of a product feature that provides an annual benefit . this is a fixed benefit over the life of the contract , and this expense will increase with new sales and improved persistency . other policy benefits increased in the current year due primarily to premium deposits and dividend accumulations policyholder liability accounts which have increased as these amounts credit a 4 % interest rate , making them an attractive deposit in this low interest rate environment . increase in future policy benefit reserves . policy benefit reserves in 2014 increased compared to the same period in 2013 , primarily from the effect of the current low interest rate environment on reserve development for policies issued in the last few years which have higher reserve build up compared to prior issue years . the accounting guidance of long duration contracts we sell requires the company to “ lock in ” the original assumptions such as mortality , interest , surrenders and expenses at the time the initial policies are written , therefore gains or losses attributable to actual experience that differs from the original assumptions flows through the income statement in the period where in the differences occur . in addition , reserves have risen year over year for all periods presented due to the increased sales of endowment products , which build up reserve balances more quickly compared to other life product sales . endowment sales totaled approximately $ 16.9 million , $ 14.3 million and $ 14.3 million , representing approximately 76.1 % , 73.0 % and 76.0 % of total new first year premium in 2014 , 2013 , and 2012 , respectively . policyholder dividends . policyholder dividends have risen at a rate that corresponds with the growth rate in new international life insurance premiums . the company issues long duration participating policies to foreign residents that are expected to pay dividends to policyholders based upon actual experience . policyholder dividends are factored into the premiums and have no impact on profitability . capitalization and amortization of deferred policy acquisition costs . capitalized costs increased , as commission related costs have increased in the current year compared to 2013 . amortization of dac increased in the current year by 13.1 %

liquidity and capital resources liquidity refers to a company 's ability to generate sufficient cash flows to meet the needs of its operations . liquidity is managed on insurance operations to ensure stable and reliable sources of cash flows to meet obligations and is provided by a variety of sources . our liquidity requirements are met primarily by funds provided from operations . premium deposits and revenues , investment income and investment maturities are the primary sources of funds , while investment purchases , policy benefits , and operating expenses are the primary uses of funds . we historically have not had to liquidate investments to provide cash flow , and there were no liquidity issues in 2014 or 2013 . our investments consist of 66.4 % of marketable debt securities and 6.6 % of equity securities classified as available-for-sale that could be readily converted to cash for liquidity needs . a primary liquidity concern is the risk of an extraordinary level of early policyholder withdrawals . we include provisions within our insurance policies , such as surrender charges , that help limit and discourage early withdrawals . since these contractual withdrawals , as well as the level of surrenders experienced , have been largely consistent with our assumptions in asset liability management , our associated cash outflows have , historically , not had an adverse impact on our overall 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 and capital resources liquidity refers to a company 's ability to generate sufficient cash flows to meet the needs of its operations . liquidity is managed on insurance operations to ensure stable and reliable sources of cash flows to meet obligations and is provided by a variety of sources . our liquidity requirements are met primarily by funds provided from operations . premium deposits and revenues , investment income and investment maturities are the primary sources of funds , while investment purchases , policy benefits , and operating expenses are the primary uses of funds . we historically have not had to liquidate investments to provide cash flow , and there were no liquidity issues in 2014 or 2013 . our investments consist of 66.4 % of marketable debt securities and 6.6 % of equity securities classified as available-for-sale that could be readily converted to cash for liquidity needs . a primary liquidity concern is the risk of an extraordinary level of early policyholder withdrawals . we include provisions within our insurance policies , such as surrender charges , that help limit and discourage early withdrawals . since these contractual withdrawals , as well as the level of surrenders experienced , have been largely consistent with our assumptions in asset liability management , our associated cash outflows have , historically , not had an adverse impact on our overall liquidity . ``` Suspicious Activity Report : this estimated range includes projected toll charges and fees as well as increased claims liability for past claims , reserves increases to bring policies into compliance and other probable liabilities resulting from this tax compliance matter . our estimated range reflects the uncertainties with respect to the required course of action and other matters unknown at this time . currently , management believes there is not a specific 24 citizens , inc. and consolidated subsidiaries estimable amount for these probable liabilities and expenses which is more likely than other specific amounts within our estimated range . the process of determining our estimated range was a complex undertaking and involved management 's judgment based upon a variety of factors known at the time . given the number of factors considered and the significant variables assumed in establishing our estimated range , actual amounts incurred may exceed our reserve and the high end of our estimated range of expenses and liabilities . in addition , there is a reasonable possibility that we will incur other expenses related to this issue in 2015 , including consulting fees and potential system costs . we are not able to reasonably estimate these amounts as of the reporting date . current financial highlights the 2014 financial results are driven by our conservative business management and traditional life product sales . the interest rate environment continues to impact our results and our industry as investment yields are an integral component of our business operations . our assets grew $ 201 million in 2014 and totaled $ 1.4 billion as of december 31 , 2014 . total stockholders ' equity increased from $ 245.8 million at december 31 , 2013 , to $ 258.4 million at december 31 , 2014 due primarily to changes in unrealized gains on securities marked to market . insurance premiums rose 7.0 % and 3.7 % in 2014 and 2013 , respectively , primarily from our life insurance segment , which increased $ 9.9 million from amounts reported in 2013 . net investment income increased 12.2 % and 15.4 % for 2014 and 2013 , respectively , as rates have risen in 2014 compared to the prior two years . the average yield on the consolidated investment portfolio has changed from a yield of 3.81 % in 2012 up to 4.11 % in 2013 and increasing to a yield of 4.21 % in 2014 as rates have risen slightly and our new investments have been focused on municipals and corporates . the increase in the investment asset balances due to premium revenue growth has also contributed to the increase in net investment income . realized net investment losses during 2014 and 2013 of $ 19 thousand and $ 0.3 million were recognized due to losses of $ 0.4 million which were recorded on equity mutual fund issuers in both 2014 and 2013 , offset by gains from bond securities . 2012 gains resulted primarily from sales of securities that had been previously impaired due to declines in market values . other-than-temporary impairments on investment securities and other long-term assets were recorded in 2014 and 2012 of $ 427,000 and $ 1,319,000 , respectively , and are reported as realized losses . during 2014 , claims and surrenders expense increased 6.0 % from the comparable period in 2013 primarily due to an increase in surrender benefits in the life segment compared to the 2013 levels . the home service segment was impacted in 2012 by hurricane isaac which hit the louisiana coast on august 29 , 2012 and caused increased property claims . 2014 change in reserves resulted in liability increases resulting from increased sales of endowment products that build up reserves at a faster pace than whole life longer term mortality based products . additionally , the sustained low interest rate environment also results in a higher reserve development due to the lower interest yield assumptions over the past several years . general expense increased in 2014 by $ 10.0 million primarily due to the tax compliance issue noted above relating to product qualification under irc section 7702 and remediation costs that have been identified . we completed the acquisition of mglic in the first quarter of 2014 and the related results have been included in our financial results . mglic is now a wholly owned subsidiary of splic and is reported in the home service segment . life insurance . for over thirty-five years , cica and its predecessors have accepted policy applications from foreign nationals for u.s. dollar-denominated ordinary whole life insurance and endowment policies . we make our insurance products available using third-party marketing organizations and independent marketing consultants . 25 citizens , inc. and consolidated subsidiaries endowment product sales have been on the rise and represented approximately 76.1 % of new sales . the company offers a ten , fifteen and twenty year endowment and our top selling endowment is a product that matures at age sixty-five . we also introduced a new product in 2012 that is an endowment at age eighteen with a payout over four or five years . through the domestic market of our life insurance segment , we provide ordinary whole life , credit life insurance , and final expense policies to middle and lower income families and individuals in certain markets in the mountain west , mid-west and southern u.s. the majority of our domestic revenues are generated by the policies of domestic life insurance companies we have acquired since 1987. home service insurance . we provide final expense ordinary and industrial life insurance to middle and lower income individuals in louisiana , mississippi and arkansas . our policies in this segment are sold and serviced through a home service marketing distribution system utilizing employee-agents who work on a route system to collect premiums and service policyholders , and through networks of funeral homes that collect premiums and provide personal policyholder service . story_separator_special_tag replace_table_token_13_th endowment sales represent a significant portion of new business sales internationally , as these products continue to exceed our whole life sales in the current markets . in addition , most of our life insurance policies contain a policy loan provision , which allows the policyholder to use cash value of a policy to pay premiums . the policy loan asset balance increased 10.6 % year over year . the following table sets forth , by country , our direct premiums from our international life insurance business for the periods indicated . our international business and premium collections could be impacted by future changes relative to laws , regulations or economic events in the countries from which we accept applications . replace_table_token_14_th we continue to report strong first year and renewal premiums in our top producing countries as noted above , however this business is dependent on our clients having access to u.s. dollars . our international business and premium collections could be impacted by future changes relative to laws , regulations or economic events in the countries from which we accept applications . currently venezuela is experiencing civil unrest due to local demonstrations against crime , corruption and soaring inflation . in addition , there could be law changes in countries that may impact activities of our independent consultants . see `` item 1a . risk factors `` on pages 7 and 13 for additional information . 33 citizens , inc. and consolidated subsidiaries the following table sets forth our direct premiums by state from our domestic business for the periods indicated . replace_table_token_15_th a number of domestic life insurance companies we acquired had blocks of accident and health insurance policies . we entered a coinsurance agreement with an unaffiliated insurance company , unified life insurance company ( `` unified `` ) , under which it assumes substantially all of our accident and health policies . the coinsurance agreement allows for full assumption by unified of this business upon approval by state insurance authorities . the decrease in premiums for 2014 and 2013 was due to the fact that unified received state approval in many states and has obtained over 98 % assumption of all policies through 2014 . net investment income . net investment income has increased as the annual yield has increased 19 basis points in this segment from 2013 , as discussed in the consolidated results of operations above . replace_table_token_16_th realized investment gains ( losses ) , net . realized losses of $ 0.2 million in 2014 and 2013 and gains of 0.5 million in 2012 were recognized due to the write-down and sale of mutual fund holdings in 2014 and 2013 and due to disposals in 2012 of previously impaired equity mutual funds . claims and surrenders . a breakout of claims and surrender benefits is detailed below . replace_table_token_17_th 34 citizens , inc. and consolidated subsidiaries death claims expense decreased 3.0 % in 2014 and decreased 21.1 % in 2013 compared to 2012 . mortality experience has reflected improved results the past two years which is likely due to increased endowment sales and a client base that results in lower deaths reported . mortality experience is closely monitored by the company as a key performance indicator and these amounts were within expected levels . the increase in surrender expense is primarily related to our international business and is expected to increase over time due to the aging of this block of business . the majority of policy surrender benefits paid is attributable to our international business and was related to policies that have been in force over fifteen years , where surrender charges are no longer applicable . endowment benefit expense results from the election by policyholders of a product feature that provides an annual benefit . this is a fixed benefit over the life of the contract , and this expense will increase with new sales and improved persistency . other policy benefits increased in the current year due primarily to premium deposits and dividend accumulations policyholder liability accounts which have increased as these amounts credit a 4 % interest rate , making them an attractive deposit in this low interest rate environment . increase in future policy benefit reserves . policy benefit reserves in 2014 increased compared to the same period in 2013 , primarily from the effect of the current low interest rate environment on reserve development for policies issued in the last few years which have higher reserve build up compared to prior issue years . the accounting guidance of long duration contracts we sell requires the company to “ lock in ” the original assumptions such as mortality , interest , surrenders and expenses at the time the initial policies are written , therefore gains or losses attributable to actual experience that differs from the original assumptions flows through the income statement in the period where in the differences occur . in addition , reserves have risen year over year for all periods presented due to the increased sales of endowment products , which build up reserve balances more quickly compared to other life product sales . endowment sales totaled approximately $ 16.9 million , $ 14.3 million and $ 14.3 million , representing approximately 76.1 % , 73.0 % and 76.0 % of total new first year premium in 2014 , 2013 , and 2012 , respectively . policyholder dividends . policyholder dividends have risen at a rate that corresponds with the growth rate in new international life insurance premiums . the company issues long duration participating policies to foreign residents that are expected to pay dividends to policyholders based upon actual experience . policyholder dividends are factored into the premiums and have no impact on profitability . capitalization and amortization of deferred policy acquisition costs . capitalized costs increased , as commission related costs have increased in the current year compared to 2013 . amortization of dac increased in the current year by 13.1 %

56 overview we are eagle bulk shipping inc. , a republic of marshall islands corporation headquartered in new york city . we own one of the largest fleets of supramax dry bulk vessels in the world . supramax dry bulk are handymax vessels ranging in size from 50,000 to 60,000 dwt . we transport a broad range of major and minor bulk cargoes , including iron ore , coal , grain , cement and fertilizer , along worldwide shipping routes . as of december 31 , 2012 , we owned and operated a modern fleet of 45 handymax segment dry bulk vessels , 43 of which are of the supramax class . we are focused on maintaining a high quality fleet that is concentrated primarily in one vessel type – handymax dry bulk carriers and its sub-category of supramax vessels . these vessels have the cargo loading and unloading flexibility of on-board cranes while offering cargo carrying capacities approaching that of panamax dry bulk vessels , which range in size from 60,000 to 100,000 dwt and rely on port facilities to load and offload their cargoes . we believe that the cargo handling flexibility and cargo carrying capacity of the supramax class vessels make them attractive to cargo interests and vessel charterers . the 45 vessels in our operating fleet , with an aggregate carrying capacity of 2,451,259 deadweight tons , have an average age of only six years compared to an average age for the world handymax dry bulk fleet of approximately ten years . on june 20 , 2012 , we entered into a fourth amended and restated credit agreement with the royal bank of scotland plc , as agent , as discussed in note 6 to the consolidated financial statements included in this annual report and “ liquidity and capital resources ” below . on may 22 , 2012 , we completed a one-for-four reverse stock split of our issued and outstanding common stock , as previously approved by our shareholders at the special meeting of shareholders held in november 2011. proportional adjustments were made to our issued and outstanding common stock and to our common stock underlying stock options and other common stock-based equity grants outstanding immediately prior to the effectiveness of the reverse stock split . our financial performance is based on the following key elements of our business strategy : ( 1 ) concentration in one vessel category : supramax class of handymax dry bulk vessels , which we believe offer size , operational and geographical advantages over other classes of dry bulk vessels , such as panamax and capesize vessels , 57 ( 2 ) our strategy is to balance between mid-term time charters and revenues generated by short-term time charters and voyage charters to maximize our financial performance throughout shipping cycles . we have entered into time and voyage charter employment contracts for all the vessels in our operating fleet . we charter some of our vessels pursuant to one- to two-year time charters to allow us to take advantage of the stable cash flow and high utilization rates that are associated with medium-term time charters . the vessels that are on charters whose revenues are linked to the baltic supramax index generally have durations of one-year or less . these index linked charters and voyage charters provide us with the revenue upside as the market improves . we believe that this structure provides significant visibility to our future financial results and allows us to take advantage of the stable cash flows and high utilization rates that are associated with medium-term time charters , while at the same time providing us with the revenue upside potential from the index linked or short-term time charters or voyage charters . all the charters provide for fixed semi-monthly payments in advance . while we remain focused on securing charters with fixed base rates , we have also entered into contracts with fixed minimum rates and profit sharing arrangements , enabling us to benefit from an increasing rate environment while still minimizing downside risk . we regularly monitor the dry bulk shipping market and based on market conditions we may consider taking advantage of long-term charter rates , ( 3 ) maintain high quality vessels and improve standards of operation through improved environmental procedures , crew training and maintenance and repair procedures , and ( 4 ) maintain a balance between purchasing vessels as market conditions and opportunities arise and maintaining prudent financial ratios ( e.g . leverage ratio ) . the following are several significant events that occurred during 2012 : · in june , 2012 , we entered into a fourth amended and restated credit agreement ; and · in may , 2012 , we completed a one-for-four reverse stock split of its issued and outstanding common stock . the following are several significant events that occurred during 2011 : · in january 2011 , we took delivery of our fifteenth newbuilding vessel from china , thrush . · in february 2011 , we took delivery of our sixteenth newbuilding vessel from china , nighthawk . · in may 2011 , we took delivery of our seventeenth newbuilding vessel from china , oriole . · in july 2011 , we sold the heron , a 2001-built supramax , and we realized a net loss of $ 509,076 and received net proceeds of $ 22,511,226 . · in july 2011 , we took delivery of our eighteenth and nineteenth newbuilding vessels from china , owl and petrel bulker . · in august 2011 , we took delivery of our twentieth newbuilding vessel from china , puffin bulker . · in september 2011 , we took delivery of our twenty-first newbuilding vessel from china , roadrunner bulker . · in september 2011 , we successfully entered into a sixth amendatory and commercial framework implementation agreement . story_separator_special_tag in the event that an impairment were to occur , we would determine the fair value of the related asset and record a charge to operations calculated by comparing the asset 's carrying value to the estimated fair value . we estimate fair value primarily through the use of third party valuations performed on an individual vessel basis . such valuation is not necessarily the same as the amount any vessel may bring upon sale , which may be more or less , and should not be relied upon as such . 64 the table set forth below indicates the carrying value of each of our vessels as of december 31 , 2012 , where we believe has a basic market value below its carrying value , and the aggregate difference between carrying value and basic market value represented by such vessels . this aggregate difference represents the approximate analysis of the amount by which we believe we would have to reduce our net income if we sold all of such vessels in the current environment , on industry standard terms , in cash transactions , and to a willing buyer where we are not under any compulsion to sell , and where the buyer is not under any compulsion to buy . replace_table_token_12_th 65 replace_table_token_13_th * indicates drybulk carriers for which we believe , as of december 31 , 2012 and 2011 , the basic charter-free market value is lower than the vessel 's carrying value . we believe that the aggregate carrying value of these vessels exceeds their aggregate basic charter-free market value by approximately $ 832 million and 667 , respectively . we note that 4 of our drybulk vessels are currently employed under mid-term , above-market time charters . we believe that if the vessels were sold with those charters attached , we would receive a premium for those vessels over their basic market value . deferred drydock cost there are two methods that are used by the shipping industry to account for drydockings : ( a ) the deferral method where drydock costs are capitalized when incurred and amortized over the period to the next scheduled drydock ; and ( b ) expensing drydocking costs in the period it is incurred . we use the deferral method of accounting for drydock expenses . under the deferral method , drydock expenses are capitalized and amortized on a straight-line basis until the next drydock , which we estimate to be a period of two to three years . we believe the deferral method better matches costs with revenue than expensing the costs as incurred . we use judgment when estimating the period between drydocks performed , which can result in adjustments to the estimated amortization of drydock expense . if the vessel is disposed of before the next drydock , the remaining balance in deferral drydock is written-off to the gain or loss upon disposal of vessels in the period when contracted . we expect that our vessels will be required to be drydocked approximately every 30 months . costs capitalized as part of the drydocking include direct costs that are incurred as part of the drydocking to meet regulatory requirements , or are expenditures that add economic life to the vessel , increase the vessel 's earnings capacity or improve the vessel 's efficiency . direct costs include the shipyard costs , parts , inspection fees , steel , blasting and painting . expenditures for normal maintenance and repairs , whether incurred as part of the drydocking or not , are expensed as incurred . unamortized dry-docking costs of vessels that are sold are written off and included in the calculation of the resulting gain or loss in the year of the vessels ' sale . vessel acquisitions where we identify any intangible assets or liabilities associated with the acquisition of a vessel , we record all identified tangible and intangible assets or liabilities at fair value . fair value is determined by reference to market data and the amount of expected future cash flows . we value any asset or liability arising from the market value of the time charters assumed when an acquired vessel is delivered to us . 66 where we have assumed an existing charter obligation or enter into a time charter with the existing charterer in connection with the purchase of a vessel at charter rates that are less than market charter rates , we record a liability in fair value below contract value of time charters acquired based on the difference between the assumed charter rate and the market charter rate for an equivalent vessel . conversely , where we assume an existing charter obligation or enter into a time charter with the existing charterer in connection with the purchase of a vessel at charter rates that are above market charter rates , we record an asset in fair value above contract value of time charters acquired , based on the difference between the market charter rate and the contracted charter rate for an equivalent vessel . this determination is made at the time the vessel is delivered to us , and such assets and liabilities are amortized to revenue over the remaining period of the charter . the determination of the fair value of acquired assets and assumed liabilities requires us to make significant assumptions and estimates of many variables including market charter rates , expected future charter rates , future vessel operation expenses , the level of utilization of our vessels and our weighted average cost of capital . the use of different assumptions could result in a material change in the fair value of these items , which could have a material impact on our financial position and results of operations . in the event that the market charter rates relating to the acquired vessels are lower than the contracted charter rates at the time of their respective deliveries to us , our net earnings for the

liquidity and capital resources net cash provided by operating activities during the years ended december 31 , 2012 , 2011 and 2010 was $ 4,777,961 , $ 58,296,117 and $ 94,339,830 respectively . the change in 2012 , 2011 and 2010 was primarily due to lower charter rates on time charter renewals offset by cash generated from operation of the fleet for 16,389 days in 2012 , and 17,514 days in 2011 , compared to 13,274 operating days in 2010. net cash provided by investing activities during 2012 was $ 294,414 , compared with net cash used in of $ 157,786,210 in 2011 , compared with used in of $ 280,995,791 in 2010. investing activities in 2011 reflected the purchase of the last eight newly constructed vessels , the thrush , nighthawk , oriole , owl , petrel bulker , puffin bulker , roadrunner bulker and sandpiper bulker , respectively . in july 2011 , the company sold , the heron , for proceeds of $ 22,511,226 , after brokerage commissions payable to a third party . in november 2011 , korea line corporation issued stock to eagle bulk at a fair value of $ 955,093 , as part of our settlement with klc . investing activities in 2010 reflected the purchase of twelve newly constructed vessels , the last two japanese-built vessels , the golden eagle and imperial eagle , and ten chinese-built vessels the thrasher , crane , egret bulker , avocet , gannet bulker , grebe bulker , ibis bulker , jay , kingfisher , martin , and advances for the newbuilding vessel construction program . in september 2010 , the company sold , the griffon , for proceeds of $ 21,055,784 , after brokerage commissions payable to a third party . 72 net cash used in financing activities in 2012 was $ 12,027,610 , compared to net cash used of $ 4,556,384 in 2011 , compared to net cash provided by of $ 244,432,868 in 2010. on june 20 , 2012 the company entered into a fourth amended and restated credit agreement and incurred $ 11,788,295 of cash charges related to this amendment .

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 net cash provided by operating activities during the years ended december 31 , 2012 , 2011 and 2010 was $ 4,777,961 , $ 58,296,117 and $ 94,339,830 respectively . the change in 2012 , 2011 and 2010 was primarily due to lower charter rates on time charter renewals offset by cash generated from operation of the fleet for 16,389 days in 2012 , and 17,514 days in 2011 , compared to 13,274 operating days in 2010. net cash provided by investing activities during 2012 was $ 294,414 , compared with net cash used in of $ 157,786,210 in 2011 , compared with used in of $ 280,995,791 in 2010. investing activities in 2011 reflected the purchase of the last eight newly constructed vessels , the thrush , nighthawk , oriole , owl , petrel bulker , puffin bulker , roadrunner bulker and sandpiper bulker , respectively . in july 2011 , the company sold , the heron , for proceeds of $ 22,511,226 , after brokerage commissions payable to a third party . in november 2011 , korea line corporation issued stock to eagle bulk at a fair value of $ 955,093 , as part of our settlement with klc . investing activities in 2010 reflected the purchase of twelve newly constructed vessels , the last two japanese-built vessels , the golden eagle and imperial eagle , and ten chinese-built vessels the thrasher , crane , egret bulker , avocet , gannet bulker , grebe bulker , ibis bulker , jay , kingfisher , martin , and advances for the newbuilding vessel construction program . in september 2010 , the company sold , the griffon , for proceeds of $ 21,055,784 , after brokerage commissions payable to a third party . 72 net cash used in financing activities in 2012 was $ 12,027,610 , compared to net cash used of $ 4,556,384 in 2011 , compared to net cash provided by of $ 244,432,868 in 2010. on june 20 , 2012 the company entered into a fourth amended and restated credit agreement and incurred $ 11,788,295 of cash charges related to this amendment . ``` Suspicious Activity Report : 56 overview we are eagle bulk shipping inc. , a republic of marshall islands corporation headquartered in new york city . we own one of the largest fleets of supramax dry bulk vessels in the world . supramax dry bulk are handymax vessels ranging in size from 50,000 to 60,000 dwt . we transport a broad range of major and minor bulk cargoes , including iron ore , coal , grain , cement and fertilizer , along worldwide shipping routes . as of december 31 , 2012 , we owned and operated a modern fleet of 45 handymax segment dry bulk vessels , 43 of which are of the supramax class . we are focused on maintaining a high quality fleet that is concentrated primarily in one vessel type – handymax dry bulk carriers and its sub-category of supramax vessels . these vessels have the cargo loading and unloading flexibility of on-board cranes while offering cargo carrying capacities approaching that of panamax dry bulk vessels , which range in size from 60,000 to 100,000 dwt and rely on port facilities to load and offload their cargoes . we believe that the cargo handling flexibility and cargo carrying capacity of the supramax class vessels make them attractive to cargo interests and vessel charterers . the 45 vessels in our operating fleet , with an aggregate carrying capacity of 2,451,259 deadweight tons , have an average age of only six years compared to an average age for the world handymax dry bulk fleet of approximately ten years . on june 20 , 2012 , we entered into a fourth amended and restated credit agreement with the royal bank of scotland plc , as agent , as discussed in note 6 to the consolidated financial statements included in this annual report and “ liquidity and capital resources ” below . on may 22 , 2012 , we completed a one-for-four reverse stock split of our issued and outstanding common stock , as previously approved by our shareholders at the special meeting of shareholders held in november 2011. proportional adjustments were made to our issued and outstanding common stock and to our common stock underlying stock options and other common stock-based equity grants outstanding immediately prior to the effectiveness of the reverse stock split . our financial performance is based on the following key elements of our business strategy : ( 1 ) concentration in one vessel category : supramax class of handymax dry bulk vessels , which we believe offer size , operational and geographical advantages over other classes of dry bulk vessels , such as panamax and capesize vessels , 57 ( 2 ) our strategy is to balance between mid-term time charters and revenues generated by short-term time charters and voyage charters to maximize our financial performance throughout shipping cycles . we have entered into time and voyage charter employment contracts for all the vessels in our operating fleet . we charter some of our vessels pursuant to one- to two-year time charters to allow us to take advantage of the stable cash flow and high utilization rates that are associated with medium-term time charters . the vessels that are on charters whose revenues are linked to the baltic supramax index generally have durations of one-year or less . these index linked charters and voyage charters provide us with the revenue upside as the market improves . we believe that this structure provides significant visibility to our future financial results and allows us to take advantage of the stable cash flows and high utilization rates that are associated with medium-term time charters , while at the same time providing us with the revenue upside potential from the index linked or short-term time charters or voyage charters . all the charters provide for fixed semi-monthly payments in advance . while we remain focused on securing charters with fixed base rates , we have also entered into contracts with fixed minimum rates and profit sharing arrangements , enabling us to benefit from an increasing rate environment while still minimizing downside risk . we regularly monitor the dry bulk shipping market and based on market conditions we may consider taking advantage of long-term charter rates , ( 3 ) maintain high quality vessels and improve standards of operation through improved environmental procedures , crew training and maintenance and repair procedures , and ( 4 ) maintain a balance between purchasing vessels as market conditions and opportunities arise and maintaining prudent financial ratios ( e.g . leverage ratio ) . the following are several significant events that occurred during 2012 : · in june , 2012 , we entered into a fourth amended and restated credit agreement ; and · in may , 2012 , we completed a one-for-four reverse stock split of its issued and outstanding common stock . the following are several significant events that occurred during 2011 : · in january 2011 , we took delivery of our fifteenth newbuilding vessel from china , thrush . · in february 2011 , we took delivery of our sixteenth newbuilding vessel from china , nighthawk . · in may 2011 , we took delivery of our seventeenth newbuilding vessel from china , oriole . · in july 2011 , we sold the heron , a 2001-built supramax , and we realized a net loss of $ 509,076 and received net proceeds of $ 22,511,226 . · in july 2011 , we took delivery of our eighteenth and nineteenth newbuilding vessels from china , owl and petrel bulker . · in august 2011 , we took delivery of our twentieth newbuilding vessel from china , puffin bulker . · in september 2011 , we took delivery of our twenty-first newbuilding vessel from china , roadrunner bulker . · in september 2011 , we successfully entered into a sixth amendatory and commercial framework implementation agreement . story_separator_special_tag in the event that an impairment were to occur , we would determine the fair value of the related asset and record a charge to operations calculated by comparing the asset 's carrying value to the estimated fair value . we estimate fair value primarily through the use of third party valuations performed on an individual vessel basis . such valuation is not necessarily the same as the amount any vessel may bring upon sale , which may be more or less , and should not be relied upon as such . 64 the table set forth below indicates the carrying value of each of our vessels as of december 31 , 2012 , where we believe has a basic market value below its carrying value , and the aggregate difference between carrying value and basic market value represented by such vessels . this aggregate difference represents the approximate analysis of the amount by which we believe we would have to reduce our net income if we sold all of such vessels in the current environment , on industry standard terms , in cash transactions , and to a willing buyer where we are not under any compulsion to sell , and where the buyer is not under any compulsion to buy . replace_table_token_12_th 65 replace_table_token_13_th * indicates drybulk carriers for which we believe , as of december 31 , 2012 and 2011 , the basic charter-free market value is lower than the vessel 's carrying value . we believe that the aggregate carrying value of these vessels exceeds their aggregate basic charter-free market value by approximately $ 832 million and 667 , respectively . we note that 4 of our drybulk vessels are currently employed under mid-term , above-market time charters . we believe that if the vessels were sold with those charters attached , we would receive a premium for those vessels over their basic market value . deferred drydock cost there are two methods that are used by the shipping industry to account for drydockings : ( a ) the deferral method where drydock costs are capitalized when incurred and amortized over the period to the next scheduled drydock ; and ( b ) expensing drydocking costs in the period it is incurred . we use the deferral method of accounting for drydock expenses . under the deferral method , drydock expenses are capitalized and amortized on a straight-line basis until the next drydock , which we estimate to be a period of two to three years . we believe the deferral method better matches costs with revenue than expensing the costs as incurred . we use judgment when estimating the period between drydocks performed , which can result in adjustments to the estimated amortization of drydock expense . if the vessel is disposed of before the next drydock , the remaining balance in deferral drydock is written-off to the gain or loss upon disposal of vessels in the period when contracted . we expect that our vessels will be required to be drydocked approximately every 30 months . costs capitalized as part of the drydocking include direct costs that are incurred as part of the drydocking to meet regulatory requirements , or are expenditures that add economic life to the vessel , increase the vessel 's earnings capacity or improve the vessel 's efficiency . direct costs include the shipyard costs , parts , inspection fees , steel , blasting and painting . expenditures for normal maintenance and repairs , whether incurred as part of the drydocking or not , are expensed as incurred . unamortized dry-docking costs of vessels that are sold are written off and included in the calculation of the resulting gain or loss in the year of the vessels ' sale . vessel acquisitions where we identify any intangible assets or liabilities associated with the acquisition of a vessel , we record all identified tangible and intangible assets or liabilities at fair value . fair value is determined by reference to market data and the amount of expected future cash flows . we value any asset or liability arising from the market value of the time charters assumed when an acquired vessel is delivered to us . 66 where we have assumed an existing charter obligation or enter into a time charter with the existing charterer in connection with the purchase of a vessel at charter rates that are less than market charter rates , we record a liability in fair value below contract value of time charters acquired based on the difference between the assumed charter rate and the market charter rate for an equivalent vessel . conversely , where we assume an existing charter obligation or enter into a time charter with the existing charterer in connection with the purchase of a vessel at charter rates that are above market charter rates , we record an asset in fair value above contract value of time charters acquired , based on the difference between the market charter rate and the contracted charter rate for an equivalent vessel . this determination is made at the time the vessel is delivered to us , and such assets and liabilities are amortized to revenue over the remaining period of the charter . the determination of the fair value of acquired assets and assumed liabilities requires us to make significant assumptions and estimates of many variables including market charter rates , expected future charter rates , future vessel operation expenses , the level of utilization of our vessels and our weighted average cost of capital . the use of different assumptions could result in a material change in the fair value of these items , which could have a material impact on our financial position and results of operations . in the event that the market charter rates relating to the acquired vessels are lower than the contracted charter rates at the time of their respective deliveries to us , our net earnings for the

our adjusted ebitda decreased $ 451 million to $ 209 million for the year ended december 31 , 2019 , from $ 660 million for the year ended december 31 , 2018 , primarily due to the osb pricing and shipment declines , partially offset by the smartside® strand revenue growth . demand for building products demand for our products correlates to a significant degree to the level of new home construction activity in north america , which historically has been characterized by significant cyclicality . the u.s. census bureau reported that actual single and multi-family housing starts in 2019 were about 3 % higher than in 2018 . single-family housing starts were about one percent higher than in 2018 . we believe that the level of building continues to be impacted by a lack of available labor . while near-term residential construction is constrained in the u.s. , positive long-term fundamentals exist . increased immigration , the changing age distribution of the population , and historically low-interest rates are expected to lead to more household formations . the chart below , which is based on data published by u.s. census bureau , provides a graphical summary of new housing starts for single and multi-family in the u.s. showing actual and rolling five and ten-year averages for housing starts . 22 supply and demand for siding smartside® siding is a specialty building material and is subject to competition from various siding technologies , including vinyl , stucco , wood , fiber cement , brick , and other . we believe we are the largest manufacturer to the $ 800 million engineered wood siding market . the overall siding market is estimated to be over $ 10 billion . we have consistently grown our smartside® strand siding above the underlying market growth rates . smartside® strand is generally less sensitive to new housing market cyclicality since roughly 60 % of its demand comes from other markets , including : sheds , retail , and repair and remodel . our growth in this market depends upon continued displacement of vinyl , wood fiber , cement and stucco alternatives , our product innovation and our technological expertise in wood and wood composites to address the needs of our customers . supply and demand for osb osb is a commodity product , and it is subject to competition from manufacturers worldwide . product supply is influenced primarily by fluctuations in available manufacturing capacity and imports . the ratio of overall osb demand to capacity generally drives price . critical accounting policies and significant 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 u.s. gaap . the preparation of these financial statements requires management to make informed estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . our financial position and or results of operations may be materially different when reported under different conditions or when using different assumptions in the application of such policies . in the event estimates or assumptions prove to be different from actual amounts , adjustments are made in subsequent periods to reflect more current information . our significant accounting policies are disclosed in the consolidated financial statements and item 8 of this annual report on form 10-k. the following discussion addresses our most critical accounting policies , which are those that are both important to the portrayal of our financial condition and results of operations and that require significant judgment or use of complex estimates . long-lived assets property , plant and equipment , and long-lived assets ( including amortizable identifiable intangible assets ) are tested 23 for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable , including but not limited to facility curtailments and asset abandonments . when such events occur , we group long-lived assets with other assets and liabilities at the lowest level for which identifiable cash flows exist . we compare the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group to the carrying amount of a long-lived asset or asset group . the cash flows are based on our best estimate of future cash flows derived from the most recent business projections . the significant assumptions used to determine estimated cash flows are the cash inflows and outflows directly resulting from the use of those assets in operations , including sales volume , product pricing , support costs , and other costs to operate . we recognize an impairment loss if the amount of the asset 's carrying value exceeds the asset 's estimated fair value . fair value is estimated primarily using discounted expected future cash flows on a market-participant basis . if we recognize an impairment loss , the adjusted carrying amount of the asset becomes its new cost basis . for a depreciable long-lived asset , the new cost basis is depreciated ( amortized ) over the remaining estimated useful life of that asset . our impairment loss calculations contain uncertainties because they require management to make assumptions and to apply judgment to estimate future cash flows and asset fair values . we have not made any material changes in our impairment loss assessment methodology in the periods presented . we do not believe a material change in the estimates or assumptions that we use to calculate long-lived asset impairments is likely . however , if actual results are not consistent with our estimates and assumptions used in estimating future cash flows and asset fair values , we may be exposed to losses that could be material . story_separator_special_tag adjusted ebitda increased $ 3 million ( or 12 % ) from 2017 , primarily due to the realization of price increases and reductions in manufacturing costs due to higher utilization across all ewp mills offset by increases in raw material costs , principally , lumber , veneer , and osb . south america our south america segment manufactures and distributes osb structural panel and siding products in south america and certain export markets . this segment has manufacturing operations in two countries , chile and brazil , and operates sales offices in chile , brazil , peru , columbia , and argentina . segment sales , adjusted ebitda , and adjusted ebitda margin for this segment were as follows : replace_table_token_18_th sales in this segment by product were as follows : replace_table_token_19_th percent changes in average sales prices and unit shipments for 2019 compared to 2018 are as follows : replace_table_token_20_th year ended december 31 , 2019 , compared to year ended december 31 , 2018 net sales decreased $ 2 million ( or one percent ) compared to 2018 due to pricing pressure from increased competition in export markets in south america and asia and unfavorable foreign currency fluctuations , partially offset by increases in local and export shipments . 31 adjusted ebitda decreased $ 6 million ( or 15 % ) from 2018 , primarily due to pricing pressure from increased competition and unfavorable foreign currency fluctuations . year ended december 31 , 2018 , compared to year ended december 31 , 2017 net sales increased $ 6 million ( or four percent ) from 2017 due to increased market penetration and osb price increases implemented in south america offset by decreased shipments in south america due to the slowing housing market in chile and continued economic weakness across south america . south america adjusted ebitda increased $ 7 million ( or 20 % ) from 2017 due to the osb price increases partially offset by operating costs associated with the start-up of our third mill in chile . other our other products segment includes our off-site framing operation entekra holdings , llc ( entekra ) , remaining timber and timberlands , and other minor products , services , and closed operations , which are not classified as discontinued operations . other net sales were $ 20 million for 2019 as compared to $ 11 million in 2018 . the increase from 2018 was due to our acquisition of a controlling interest in entekra in 2019 . adjusted ebitda was $ ( 11 ) million for 2019 as compared to $ ( 8 ) million for 2018 . other sales were $ 11 million for 2018 as compared to $ 12 million in 2017 . adjusted ebitda was $ ( 8 ) million for 2018 as compared to $ ( 6 ) million of adjusted ebitda for 2017 . general corporate and other expense , net general corporate and other expenses primarily comprise corporate overhead unrelated to business activities such as : wages and benefits , professional fees , insurance , and other expenses for corporate functions , including certain executive officers , public company activities , tax , internal audits , and other corporate functions . general corporate and other expense , net , was $ 30 million in 2019 as compared to $ 28 million in 2018 and 2017. the increase in 2019 as compared to 2018 was primarily due to increased costs associated with investments in transformation activities . impairments of long-lived assets during 2019 , we recorded $ 92 million of pre-tax impairment charges of our non-operating and operating long-lived assets . included within these impairment charges are $ 47 million related to non-operating assets located at val-d'or and st michel , quebec , canada ; cook , minnesota ; and silsbee , texas ; and $ 39 million related to an ewp facility producing lsl and osb and $ 5 million related to a siding facility that we expect to sell . these impairment charges reflect changes to anticipated usage of these facilities driven by market changes and improved operating efficiencies across our remaining facilities . impairments of long-lived assets were $ 11 million and $ 9 million in 2018 and 2017 , respectively . during 2018 , we recorded a loss on impairment of long-lived assets associated with a non-operating facility that was anticipated to be sold . other operating credits and charges , net for a discussion of other operating credits and charges , net , see note 14 of the notes to the consolidated financial statements included in item 8 of this annual report on form 10-k. 32 non-operating income ( expense ) for a discussion of non-operating income ( expense ) , see note 14 of the notes to the consolidated financial statements included in item 8 of this annual report on form 10-k. income taxes we recorded a tax benefit of $ 13 million in 2019 and a provision of $ 122 million in 2018 . for 2019 , the primary differences between the u.s. statutory rate of 21 % and the effective rate relate to state income tax , foreign tax rates , tax credits , uncertain tax positions , and changes in the valuation allowance . we paid $ 20 million and $ 90 million of income taxes net of tax refunds in 2019 and 2018 , respectively . legal and environmental matters for a discussion of legal and environmental matters involving us and the potential impact thereof on our financial position , results of operations and cash flows , see item 3 in this annual report on form 10-k as well as note 16 of the notes to the consolidated financial statements included in item 8 of this annual report on form 10-k. story_separator_special_tag to estimate when these unrecognized uncertain tax positions may need to be paid . as of december 31 , 2019 , the amount of uncertain tax positions excluded from the

liquidity and capital resources overview our principal sources of liquidity are existing cash and investment balances , cash generated by our operations , and our ability to borrow under such credit facilities as we may have in effect from time to time . we may also , from time to time , issue and sell equity , debt or hybrid securities , or engage in other capital market transactions . our principal uses of liquidity are paying the costs and expenses associated with our operations , servicing outstanding indebtedness , paying dividends , and making capital expenditures . we may also , from time to time , prepay or repurchase outstanding indebtedness or shares or acquire assets or businesses that are complementary to our operations . any such repurchases may be commenced , suspended , discontinued or resumed , and the method or methods of effecting any such repurchases may be changed at any time , or from time to time , without prior notice . operating activities during 2019 , we generated $ 159 million of cash from operations as compared to $ 511 million of cash from operations in 2018 . this change reflects the lower osb commodity pricing in 2019 compared to 2018 partially offset by tax refunds from prior years of $ 14 million received in 2019 and a $ 41 million reduction in pension contributions . at december 31 , 2019 , and december 31 , 2018 , we had working capital of $ 194 million and $ 147 million , respectively . changes in working capital primarily related to increases in our income tax receivables during 2019. investing activities during 2019 , net cash used for investing activities was $ 137 million as compared to $ 238 million in 2018 . capital expenditures were $ 163 million for 2019 , primarily related to the expansion of our siding business as well as growth and maintenance capital .

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 liquidity are existing cash and investment balances , cash generated by our operations , and our ability to borrow under such credit facilities as we may have in effect from time to time . we may also , from time to time , issue and sell equity , debt or hybrid securities , or engage in other capital market transactions . our principal uses of liquidity are paying the costs and expenses associated with our operations , servicing outstanding indebtedness , paying dividends , and making capital expenditures . we may also , from time to time , prepay or repurchase outstanding indebtedness or shares or acquire assets or businesses that are complementary to our operations . any such repurchases may be commenced , suspended , discontinued or resumed , and the method or methods of effecting any such repurchases may be changed at any time , or from time to time , without prior notice . operating activities during 2019 , we generated $ 159 million of cash from operations as compared to $ 511 million of cash from operations in 2018 . this change reflects the lower osb commodity pricing in 2019 compared to 2018 partially offset by tax refunds from prior years of $ 14 million received in 2019 and a $ 41 million reduction in pension contributions . at december 31 , 2019 , and december 31 , 2018 , we had working capital of $ 194 million and $ 147 million , respectively . changes in working capital primarily related to increases in our income tax receivables during 2019. investing activities during 2019 , net cash used for investing activities was $ 137 million as compared to $ 238 million in 2018 . capital expenditures were $ 163 million for 2019 , primarily related to the expansion of our siding business as well as growth and maintenance capital . ``` Suspicious Activity Report : our adjusted ebitda decreased $ 451 million to $ 209 million for the year ended december 31 , 2019 , from $ 660 million for the year ended december 31 , 2018 , primarily due to the osb pricing and shipment declines , partially offset by the smartside® strand revenue growth . demand for building products demand for our products correlates to a significant degree to the level of new home construction activity in north america , which historically has been characterized by significant cyclicality . the u.s. census bureau reported that actual single and multi-family housing starts in 2019 were about 3 % higher than in 2018 . single-family housing starts were about one percent higher than in 2018 . we believe that the level of building continues to be impacted by a lack of available labor . while near-term residential construction is constrained in the u.s. , positive long-term fundamentals exist . increased immigration , the changing age distribution of the population , and historically low-interest rates are expected to lead to more household formations . the chart below , which is based on data published by u.s. census bureau , provides a graphical summary of new housing starts for single and multi-family in the u.s. showing actual and rolling five and ten-year averages for housing starts . 22 supply and demand for siding smartside® siding is a specialty building material and is subject to competition from various siding technologies , including vinyl , stucco , wood , fiber cement , brick , and other . we believe we are the largest manufacturer to the $ 800 million engineered wood siding market . the overall siding market is estimated to be over $ 10 billion . we have consistently grown our smartside® strand siding above the underlying market growth rates . smartside® strand is generally less sensitive to new housing market cyclicality since roughly 60 % of its demand comes from other markets , including : sheds , retail , and repair and remodel . our growth in this market depends upon continued displacement of vinyl , wood fiber , cement and stucco alternatives , our product innovation and our technological expertise in wood and wood composites to address the needs of our customers . supply and demand for osb osb is a commodity product , and it is subject to competition from manufacturers worldwide . product supply is influenced primarily by fluctuations in available manufacturing capacity and imports . the ratio of overall osb demand to capacity generally drives price . critical accounting policies and significant 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 u.s. gaap . the preparation of these financial statements requires management to make informed estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . our financial position and or results of operations may be materially different when reported under different conditions or when using different assumptions in the application of such policies . in the event estimates or assumptions prove to be different from actual amounts , adjustments are made in subsequent periods to reflect more current information . our significant accounting policies are disclosed in the consolidated financial statements and item 8 of this annual report on form 10-k. the following discussion addresses our most critical accounting policies , which are those that are both important to the portrayal of our financial condition and results of operations and that require significant judgment or use of complex estimates . long-lived assets property , plant and equipment , and long-lived assets ( including amortizable identifiable intangible assets ) are tested 23 for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable , including but not limited to facility curtailments and asset abandonments . when such events occur , we group long-lived assets with other assets and liabilities at the lowest level for which identifiable cash flows exist . we compare the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group to the carrying amount of a long-lived asset or asset group . the cash flows are based on our best estimate of future cash flows derived from the most recent business projections . the significant assumptions used to determine estimated cash flows are the cash inflows and outflows directly resulting from the use of those assets in operations , including sales volume , product pricing , support costs , and other costs to operate . we recognize an impairment loss if the amount of the asset 's carrying value exceeds the asset 's estimated fair value . fair value is estimated primarily using discounted expected future cash flows on a market-participant basis . if we recognize an impairment loss , the adjusted carrying amount of the asset becomes its new cost basis . for a depreciable long-lived asset , the new cost basis is depreciated ( amortized ) over the remaining estimated useful life of that asset . our impairment loss calculations contain uncertainties because they require management to make assumptions and to apply judgment to estimate future cash flows and asset fair values . we have not made any material changes in our impairment loss assessment methodology in the periods presented . we do not believe a material change in the estimates or assumptions that we use to calculate long-lived asset impairments is likely . however , if actual results are not consistent with our estimates and assumptions used in estimating future cash flows and asset fair values , we may be exposed to losses that could be material . story_separator_special_tag adjusted ebitda increased $ 3 million ( or 12 % ) from 2017 , primarily due to the realization of price increases and reductions in manufacturing costs due to higher utilization across all ewp mills offset by increases in raw material costs , principally , lumber , veneer , and osb . south america our south america segment manufactures and distributes osb structural panel and siding products in south america and certain export markets . this segment has manufacturing operations in two countries , chile and brazil , and operates sales offices in chile , brazil , peru , columbia , and argentina . segment sales , adjusted ebitda , and adjusted ebitda margin for this segment were as follows : replace_table_token_18_th sales in this segment by product were as follows : replace_table_token_19_th percent changes in average sales prices and unit shipments for 2019 compared to 2018 are as follows : replace_table_token_20_th year ended december 31 , 2019 , compared to year ended december 31 , 2018 net sales decreased $ 2 million ( or one percent ) compared to 2018 due to pricing pressure from increased competition in export markets in south america and asia and unfavorable foreign currency fluctuations , partially offset by increases in local and export shipments . 31 adjusted ebitda decreased $ 6 million ( or 15 % ) from 2018 , primarily due to pricing pressure from increased competition and unfavorable foreign currency fluctuations . year ended december 31 , 2018 , compared to year ended december 31 , 2017 net sales increased $ 6 million ( or four percent ) from 2017 due to increased market penetration and osb price increases implemented in south america offset by decreased shipments in south america due to the slowing housing market in chile and continued economic weakness across south america . south america adjusted ebitda increased $ 7 million ( or 20 % ) from 2017 due to the osb price increases partially offset by operating costs associated with the start-up of our third mill in chile . other our other products segment includes our off-site framing operation entekra holdings , llc ( entekra ) , remaining timber and timberlands , and other minor products , services , and closed operations , which are not classified as discontinued operations . other net sales were $ 20 million for 2019 as compared to $ 11 million in 2018 . the increase from 2018 was due to our acquisition of a controlling interest in entekra in 2019 . adjusted ebitda was $ ( 11 ) million for 2019 as compared to $ ( 8 ) million for 2018 . other sales were $ 11 million for 2018 as compared to $ 12 million in 2017 . adjusted ebitda was $ ( 8 ) million for 2018 as compared to $ ( 6 ) million of adjusted ebitda for 2017 . general corporate and other expense , net general corporate and other expenses primarily comprise corporate overhead unrelated to business activities such as : wages and benefits , professional fees , insurance , and other expenses for corporate functions , including certain executive officers , public company activities , tax , internal audits , and other corporate functions . general corporate and other expense , net , was $ 30 million in 2019 as compared to $ 28 million in 2018 and 2017. the increase in 2019 as compared to 2018 was primarily due to increased costs associated with investments in transformation activities . impairments of long-lived assets during 2019 , we recorded $ 92 million of pre-tax impairment charges of our non-operating and operating long-lived assets . included within these impairment charges are $ 47 million related to non-operating assets located at val-d'or and st michel , quebec , canada ; cook , minnesota ; and silsbee , texas ; and $ 39 million related to an ewp facility producing lsl and osb and $ 5 million related to a siding facility that we expect to sell . these impairment charges reflect changes to anticipated usage of these facilities driven by market changes and improved operating efficiencies across our remaining facilities . impairments of long-lived assets were $ 11 million and $ 9 million in 2018 and 2017 , respectively . during 2018 , we recorded a loss on impairment of long-lived assets associated with a non-operating facility that was anticipated to be sold . other operating credits and charges , net for a discussion of other operating credits and charges , net , see note 14 of the notes to the consolidated financial statements included in item 8 of this annual report on form 10-k. 32 non-operating income ( expense ) for a discussion of non-operating income ( expense ) , see note 14 of the notes to the consolidated financial statements included in item 8 of this annual report on form 10-k. income taxes we recorded a tax benefit of $ 13 million in 2019 and a provision of $ 122 million in 2018 . for 2019 , the primary differences between the u.s. statutory rate of 21 % and the effective rate relate to state income tax , foreign tax rates , tax credits , uncertain tax positions , and changes in the valuation allowance . we paid $ 20 million and $ 90 million of income taxes net of tax refunds in 2019 and 2018 , respectively . legal and environmental matters for a discussion of legal and environmental matters involving us and the potential impact thereof on our financial position , results of operations and cash flows , see item 3 in this annual report on form 10-k as well as note 16 of the notes to the consolidated financial statements included in item 8 of this annual report on form 10-k. story_separator_special_tag to estimate when these unrecognized uncertain tax positions may need to be paid . as of december 31 , 2019 , the amount of uncertain tax positions excluded from the

our ability to increase net revenues , therefore , is dependent upon our ability to increase unit sales volumes of existing products and to introduce and sell new products with higher average selling prices in quantities sufficient to compensate for the anticipated declines in selling prices of our more mature products . although we expect the average selling prices of individual products to decline over time , we believe that , over the next several quarters , our overall average selling prices will increase due to a continuing shift in product mix to a higher percentage of higher price , higher density products . our ability to increase unit sales volumes is dependent primarily upon increases in customer demand but , particularly in periods of increasing demand , can also be affected by our ability to increase production through the availability of increased wafer fabrication capacity from tsmc and powerchip , our wafer suppliers , and our ability to increase the number of good integrated circuit die produced from each wafer through die size reductions and yield enhancement activities . we may experience fluctuations in quarterly net revenues for a number of reasons . historically , orders on hand at the beginning of each quarter are insufficient to meet our revenue objectives for that quarter and are generally cancelable up to 30 days prior to scheduled delivery . accordingly , we depend on obtaining and shipping orders in the same quarter to achieve our revenue objectives . in addition , the timing of product releases , purchase orders and product availability could result in significant product shipments at the end of a quarter . failure to ship these products by the end of the quarter may adversely affect our operating results . furthermore , our customers may delay scheduled delivery dates and or cancel orders within specified timeframes without significant penalty . we sell our products through our direct sales force , international and domestic sales representatives and distributors . revenues from product sales , except for sales to distributors , are generally recognized upon shipment , net of sales returns and allowances . sales to consignment warehouses , who purchase products from us for use by contract manufacturers , are recorded upon delivery to the contract manufacturer . sales to distributors are recorded as deferred revenues for financial reporting purposes and recognized as revenues when the products are resold by the distributors to the oem . sales to distributors are made under agreements allowing for returns or credits under certain circumstances . we therefore defer recognition of revenue on sales to distributors until products are resold by the distributor . historically , a small number of oem customers have accounted for a substantial portion of our net revenues , and we expect that significant customer concentration will continue for the foreseeable future . many of our oems use contract manufacturers to manufacture their equipment . accordingly , a significant pe rcentage of our net revenues is derived from sales to these contract manufacturers and to consignment warehouses . in addition , a significant portion of our sales are made to foreign and domestic distributors who resell our products to oems , as 39 well as their contract manufacturers . direct sales to contract manufacturers and consignment warehouses accounted for 37.5 % , 42.0 % and 45.1 % of our net revenues for fiscal 201 4 , 201 3 and 201 2 , respectively . sales to foreign and domestic distributors accounted for 50.0 % , 47.6 % and 45.7 % of our net revenues for fiscal 201 4 , 201 3 and 201 2 , respectively . the following direct customers accounted for 10 % or more of our net revenues in one or more of the following periods : replace_table_token_5_th cisco systems , historically our largest oem customer , purchases our products primarily through its consignment warehouses , smart modular technologies , jabil circuit and flextronics technology , and also purchases some products through its contract manufacturers and directly from us . historically , purchases by cisco systems have fluctuated from period to period . based on information provided to us by cisco systems ' consignment warehouses and contract manufacturers , purchases by cisco systems represented approximately 19 % , 29 % and 41 % of our net revenues in fiscal 201 4 , 201 3 and 201 2 , respectively . alcatel lucent was our largest customer in fiscal 2014. alcatel lucent purchases products directly from us and through contract manufacturers and distribut ors . p urchases by alcatel lucent represented approximately 19 % , 12 % and 9 % of our net revenues in fiscal 2014 , 2013 and 2012 , respectively . our revenues have been substantially impacted by significant fluctuations in sales to cisco systems , and we expect that future direct and indirect sales to cisco systems will continue to fluctuate significantly on a quarterly basis and that such fluctuations may significantly affect our operating results in future periods . to our knowledge , none of our other oem customers accounted for more than 10 % of our net revenues in fiscal 201 4 , 201 3 or 201 2 . cost of revenues . our cost of revenues consists primarily of wafer fabrication costs , wafer sort , assembly , test and burn-in expenses , the amortized cost of production mask sets , stock-based compensation and the cost of materials and overhead from operations . all of our wafer manufacturing and assembly operations , and a significant portion of our wafer sort testing operations , are outsourced . accordingly , most of our cost of revenues consists of payments to tsmc , powerchip and independent assembly and test houses . story_separator_special_tag we consider the need to establish the allowance for excess inventory generally based on inventory levels in excess of 12 months of forecasted demand for each specific product . inventory consists of 46 finished goods at our premises or consignment warehouses , work in progress at our premises or our contract manufacturers and finished goods at distributors and takes into account any uncancellable purchase commitments . historically , it has been difficult to forecast customer demand especially at the part-number level . many of the orders we receive from our customers and distributors request delivery of product on relatively short notice and with lead times less than our manufacturing cycle time . in order to provide competitive delivery times to our customers , we build and stock a certain amount of inventory in anticipation of customer demand that may not materialize . moreover , as is common in the semiconductor industry , we may allow customers to cancel orders with minimal advance notice . thus , even product built to satisfy specific customer orders may not ultimately be required to fulfill customer demand . nevertheless , at any point in time , some portion of our inventory is subject to the risk of being materially in excess of our projected demand . additionally , our average selling prices could decline due to market or other conditions , which creates a risk that costs of manufacturing our inventory may not be recovered . these factors contribute to the risk that we may be required to record additional inventory write-downs in the future , which could be material . in addition , if actual market conditions are more favorable than expected , inventory previously written down may be sold to customers resulting in lower cost of sales and higher income from operations than expected in that period . taxes . we account for income taxes under the liability method , whereby deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income . we make certain estimates and judgments in the calculation of tax liabilities and the determination of deferred tax assets , which arise from temporary differences between tax and financial statement recognition methods . we record a valuation allowance to reduce our deferred tax assets to the amount that management estimates is more likely than not to be realized . as of march 31 , 2014 , our net deferred tax assets of $ 3.7 million are subject to a full valuation allowance . if , in the future we determine that we are likely to realize all or part of our net deferred tax assets , an adjustment to deferred tax assets would be added to earnings in the period such determination is made . in addition , the calculation of tax liabilities involves inherent uncertainty in the application of complex tax laws . we record tax reserves for additional taxes that we estimate we may be required to pay as a result of future potential examinations by federal and state taxing authorities . if the payment ultimately proves to be unnecessary , the reversal of these tax reserves would result in tax benefits being recognized in the period we determine such reserves are no longer necessary . if an ultimate tax assessment exceeds our estimate of tax liabilities , an additional charge to provision for income taxes will result . authoritative guidance prescribes a comprehensive model for how a company should recognize , measure , present , and disclose in its financial statements uncertain tax positions that the company has taken or expects to take on a tax return ( including a decision whether to file or not to file a return in a particular jurisdiction ) . under this guidance , the financial statements will reflect expected future tax consequences of such positions presuming the taxing authorities ' full knowledge of the position and all relevant facts , but without considering time values . stock based compensation . under authoritative guidance , stock-based compensation expense recognized in the statement of operations is based on options ultimately expected to vest , reduced by the amount of estimated forfeitures . we chose the straight-line method of allocating compensation cost over the requisite service period of the related award in accordance with the authoritative guidance . we calculated the expected term based on the historical average period of time that options were outstanding as adjusted for expected changes in future exercise patterns , which , for options granted in fiscal 201 4 , 201 3 and 201 2 resulted in an expected term of approximately five years . we used historical volatility to estimate expected volatility in fiscal 2014 and 2013 . we based our estimate of expected volatility in 2012 on the estimated volatility of similar entities whose share prices were publicly available . the risk-free interest rate is based on the u.s. treasury yields in effect at the time of grant for periods corresponding to the expected life of the options . the dividend yield is 0 % , based on the fact that we have never paid dividends and 47 have no present intention to pay dividends . determining some of these assumptions requires significant judgment and changes to these assumptions could result in a significant change to the calculation of stock-based compensation in future periods . c ash flows , if any , resulting from the tax benefits from tax deductions in excess of the compensation cost recognized for those options ( excess tax benefits ) are classified as financing cash flows . as stock-based compensation expense recognized in the consolidated statement of operations is based on awards ultimately expected to vest , it has been reduced for estimated . we estimate forfeitures at the time of grant and revise the original estimates , if necessary

liquidity and capital resources as of march 31 , 201 4 , our principal sources of liquidity were cash , cash equivalents and short-term investments of $ 80.9 million compared to $ 67.3 million as of march 31 , 201 3 . net cash provided by operating activities was $ 8.4 million for fiscal 201 4 compared to $ 14.7 million for fiscal 201 3 and $ 1 7.0 million for fiscal 201 2 . the primary sources of cash in fiscal 2014 were a reduction in inventory of $ 3.5 million , adjustments for non-cash stock-based compensation expense of $ 2.2 million , a provision for excess and obsolete inventory of $ 2.1 million and depreciation expense of $ 2.0 million , partially offset by a net loss of $ 6.2 million and a decrease in accrued expenses and other liabilities . we have allowed inventory levels to decrease in response to the slowdown in our business during fiscal 2013 and fiscal 2014. the primary sources of cash in fiscal 2013 were net income of $ 3.8 million , a reduction in inventory of $ 2.1 million and a reduction in prepaid expenses 44 of $ 2.5 million , offset by a decrease in accounts payable of $ 1 . 6 million . the decrease in accounts payable in fiscal 2013 was primarily due to decreased legal expenses related to the pending patent infringement and antitrust litigation involving cypress semiconductor corporation compared to fiscal 2012 . the primary sources of cash in fiscal 2012 were net income of $ 6.8 million and decreases in accounts receivable of $ 4.5 million and inventory of $ 4.0 million , partially offset by an increase in prepaid expenses and other assets of $ 2.6 million and a decrease in deferred revenue of $ 2.6 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 as of march 31 , 201 4 , our principal sources of liquidity were cash , cash equivalents and short-term investments of $ 80.9 million compared to $ 67.3 million as of march 31 , 201 3 . net cash provided by operating activities was $ 8.4 million for fiscal 201 4 compared to $ 14.7 million for fiscal 201 3 and $ 1 7.0 million for fiscal 201 2 . the primary sources of cash in fiscal 2014 were a reduction in inventory of $ 3.5 million , adjustments for non-cash stock-based compensation expense of $ 2.2 million , a provision for excess and obsolete inventory of $ 2.1 million and depreciation expense of $ 2.0 million , partially offset by a net loss of $ 6.2 million and a decrease in accrued expenses and other liabilities . we have allowed inventory levels to decrease in response to the slowdown in our business during fiscal 2013 and fiscal 2014. the primary sources of cash in fiscal 2013 were net income of $ 3.8 million , a reduction in inventory of $ 2.1 million and a reduction in prepaid expenses 44 of $ 2.5 million , offset by a decrease in accounts payable of $ 1 . 6 million . the decrease in accounts payable in fiscal 2013 was primarily due to decreased legal expenses related to the pending patent infringement and antitrust litigation involving cypress semiconductor corporation compared to fiscal 2012 . the primary sources of cash in fiscal 2012 were net income of $ 6.8 million and decreases in accounts receivable of $ 4.5 million and inventory of $ 4.0 million , partially offset by an increase in prepaid expenses and other assets of $ 2.6 million and a decrease in deferred revenue of $ 2.6 million . ``` Suspicious Activity Report : our ability to increase net revenues , therefore , is dependent upon our ability to increase unit sales volumes of existing products and to introduce and sell new products with higher average selling prices in quantities sufficient to compensate for the anticipated declines in selling prices of our more mature products . although we expect the average selling prices of individual products to decline over time , we believe that , over the next several quarters , our overall average selling prices will increase due to a continuing shift in product mix to a higher percentage of higher price , higher density products . our ability to increase unit sales volumes is dependent primarily upon increases in customer demand but , particularly in periods of increasing demand , can also be affected by our ability to increase production through the availability of increased wafer fabrication capacity from tsmc and powerchip , our wafer suppliers , and our ability to increase the number of good integrated circuit die produced from each wafer through die size reductions and yield enhancement activities . we may experience fluctuations in quarterly net revenues for a number of reasons . historically , orders on hand at the beginning of each quarter are insufficient to meet our revenue objectives for that quarter and are generally cancelable up to 30 days prior to scheduled delivery . accordingly , we depend on obtaining and shipping orders in the same quarter to achieve our revenue objectives . in addition , the timing of product releases , purchase orders and product availability could result in significant product shipments at the end of a quarter . failure to ship these products by the end of the quarter may adversely affect our operating results . furthermore , our customers may delay scheduled delivery dates and or cancel orders within specified timeframes without significant penalty . we sell our products through our direct sales force , international and domestic sales representatives and distributors . revenues from product sales , except for sales to distributors , are generally recognized upon shipment , net of sales returns and allowances . sales to consignment warehouses , who purchase products from us for use by contract manufacturers , are recorded upon delivery to the contract manufacturer . sales to distributors are recorded as deferred revenues for financial reporting purposes and recognized as revenues when the products are resold by the distributors to the oem . sales to distributors are made under agreements allowing for returns or credits under certain circumstances . we therefore defer recognition of revenue on sales to distributors until products are resold by the distributor . historically , a small number of oem customers have accounted for a substantial portion of our net revenues , and we expect that significant customer concentration will continue for the foreseeable future . many of our oems use contract manufacturers to manufacture their equipment . accordingly , a significant pe rcentage of our net revenues is derived from sales to these contract manufacturers and to consignment warehouses . in addition , a significant portion of our sales are made to foreign and domestic distributors who resell our products to oems , as 39 well as their contract manufacturers . direct sales to contract manufacturers and consignment warehouses accounted for 37.5 % , 42.0 % and 45.1 % of our net revenues for fiscal 201 4 , 201 3 and 201 2 , respectively . sales to foreign and domestic distributors accounted for 50.0 % , 47.6 % and 45.7 % of our net revenues for fiscal 201 4 , 201 3 and 201 2 , respectively . the following direct customers accounted for 10 % or more of our net revenues in one or more of the following periods : replace_table_token_5_th cisco systems , historically our largest oem customer , purchases our products primarily through its consignment warehouses , smart modular technologies , jabil circuit and flextronics technology , and also purchases some products through its contract manufacturers and directly from us . historically , purchases by cisco systems have fluctuated from period to period . based on information provided to us by cisco systems ' consignment warehouses and contract manufacturers , purchases by cisco systems represented approximately 19 % , 29 % and 41 % of our net revenues in fiscal 201 4 , 201 3 and 201 2 , respectively . alcatel lucent was our largest customer in fiscal 2014. alcatel lucent purchases products directly from us and through contract manufacturers and distribut ors . p urchases by alcatel lucent represented approximately 19 % , 12 % and 9 % of our net revenues in fiscal 2014 , 2013 and 2012 , respectively . our revenues have been substantially impacted by significant fluctuations in sales to cisco systems , and we expect that future direct and indirect sales to cisco systems will continue to fluctuate significantly on a quarterly basis and that such fluctuations may significantly affect our operating results in future periods . to our knowledge , none of our other oem customers accounted for more than 10 % of our net revenues in fiscal 201 4 , 201 3 or 201 2 . cost of revenues . our cost of revenues consists primarily of wafer fabrication costs , wafer sort , assembly , test and burn-in expenses , the amortized cost of production mask sets , stock-based compensation and the cost of materials and overhead from operations . all of our wafer manufacturing and assembly operations , and a significant portion of our wafer sort testing operations , are outsourced . accordingly , most of our cost of revenues consists of payments to tsmc , powerchip and independent assembly and test houses . story_separator_special_tag we consider the need to establish the allowance for excess inventory generally based on inventory levels in excess of 12 months of forecasted demand for each specific product . inventory consists of 46 finished goods at our premises or consignment warehouses , work in progress at our premises or our contract manufacturers and finished goods at distributors and takes into account any uncancellable purchase commitments . historically , it has been difficult to forecast customer demand especially at the part-number level . many of the orders we receive from our customers and distributors request delivery of product on relatively short notice and with lead times less than our manufacturing cycle time . in order to provide competitive delivery times to our customers , we build and stock a certain amount of inventory in anticipation of customer demand that may not materialize . moreover , as is common in the semiconductor industry , we may allow customers to cancel orders with minimal advance notice . thus , even product built to satisfy specific customer orders may not ultimately be required to fulfill customer demand . nevertheless , at any point in time , some portion of our inventory is subject to the risk of being materially in excess of our projected demand . additionally , our average selling prices could decline due to market or other conditions , which creates a risk that costs of manufacturing our inventory may not be recovered . these factors contribute to the risk that we may be required to record additional inventory write-downs in the future , which could be material . in addition , if actual market conditions are more favorable than expected , inventory previously written down may be sold to customers resulting in lower cost of sales and higher income from operations than expected in that period . taxes . we account for income taxes under the liability method , whereby deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income . we make certain estimates and judgments in the calculation of tax liabilities and the determination of deferred tax assets , which arise from temporary differences between tax and financial statement recognition methods . we record a valuation allowance to reduce our deferred tax assets to the amount that management estimates is more likely than not to be realized . as of march 31 , 2014 , our net deferred tax assets of $ 3.7 million are subject to a full valuation allowance . if , in the future we determine that we are likely to realize all or part of our net deferred tax assets , an adjustment to deferred tax assets would be added to earnings in the period such determination is made . in addition , the calculation of tax liabilities involves inherent uncertainty in the application of complex tax laws . we record tax reserves for additional taxes that we estimate we may be required to pay as a result of future potential examinations by federal and state taxing authorities . if the payment ultimately proves to be unnecessary , the reversal of these tax reserves would result in tax benefits being recognized in the period we determine such reserves are no longer necessary . if an ultimate tax assessment exceeds our estimate of tax liabilities , an additional charge to provision for income taxes will result . authoritative guidance prescribes a comprehensive model for how a company should recognize , measure , present , and disclose in its financial statements uncertain tax positions that the company has taken or expects to take on a tax return ( including a decision whether to file or not to file a return in a particular jurisdiction ) . under this guidance , the financial statements will reflect expected future tax consequences of such positions presuming the taxing authorities ' full knowledge of the position and all relevant facts , but without considering time values . stock based compensation . under authoritative guidance , stock-based compensation expense recognized in the statement of operations is based on options ultimately expected to vest , reduced by the amount of estimated forfeitures . we chose the straight-line method of allocating compensation cost over the requisite service period of the related award in accordance with the authoritative guidance . we calculated the expected term based on the historical average period of time that options were outstanding as adjusted for expected changes in future exercise patterns , which , for options granted in fiscal 201 4 , 201 3 and 201 2 resulted in an expected term of approximately five years . we used historical volatility to estimate expected volatility in fiscal 2014 and 2013 . we based our estimate of expected volatility in 2012 on the estimated volatility of similar entities whose share prices were publicly available . the risk-free interest rate is based on the u.s. treasury yields in effect at the time of grant for periods corresponding to the expected life of the options . the dividend yield is 0 % , based on the fact that we have never paid dividends and 47 have no present intention to pay dividends . determining some of these assumptions requires significant judgment and changes to these assumptions could result in a significant change to the calculation of stock-based compensation in future periods . c ash flows , if any , resulting from the tax benefits from tax deductions in excess of the compensation cost recognized for those options ( excess tax benefits ) are classified as financing cash flows . as stock-based compensation expense recognized in the consolidated statement of operations is based on awards ultimately expected to vest , it has been reduced for estimated . we estimate forfeitures at the time of grant and revise the original estimates , if necessary

the objective of asu 2017-01 is to clarify the definition of a business by adding guidance on how entities should evaluate whether transactions should be accounted for as acquisitions ( or disposals ) of assets or businesses . the definition of a business affects many areas of accounting including acquisitions , disposals , goodwill , and consolidation . asu 2017-01 will be effective for public business entities for fiscal years beginning after december 15 , 2017 , including interim periods in the year of adoption . early adoption is permitted for any interim or annual period . the company has early adopted and the guidance has no material impact on the company 's financial statements . in february 2016 , the fasb issued asu no . 2016-02 “ leases ” ( “ asu 2016-02 ” ) . the new standard creates topic 842 , leases , in fasb accounting standards codification ( fasb asc ) and supersedes fasb asc 840 , leases . asu 2016-02 requires a lessee to recognize the assets and liabilities that arise from leases ( operating and finance ) . however , for leases with a term of 12 months or less , a lessee is permitted to make an accounting policy election not to recognize lease assets and lease liabilities . the main difference between the existing guidance on accounting for leases and the new standard is that operating leases will now be recorded in the statement of financial position as assets and liabilities . the new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases and operating leases . asu 2016-02 is expected to impact the company 's consolidated financial statements as the company has certain operating land lease arrangements for which it is the lessee . gaap requires only capital ( finance ) leases to be recognized in the statement of financial position , and amounts related to operating leases largely are reflected in the financial statements as rent expense on the income statement and in disclosures to the financial statements . asu 2016-02 is effective for annual reporting periods ( including interim periods within those periods ) beginning after december 15 , 2018. early adoption is permitted . the company has engaged a professional services firm to assist in the implementation of asu 2016-02. the company anticipates that its retail leases where it is the lessor will continue to be accounted for as operating leases under the new standard . therefore , the company does not currently anticipate significant changes in the accounting for its lease revenues . the company is also the lessee under various land lease arrangements and it will be required to recognize right of use assets and related lease liabilities on its consolidated balance sheets upon adoption . the company will continue to evaluate the impact of adopting the new leases standard on its consolidated statements of income and comprehensive income and consolidated balance sheets . 24 in may 2014 , with subsequent updates issued in august 2015 and march , april and may 2016 , the fasb issued asu no . 2014-09 “ revenue from contracts with customers ( topic 606 ) ” ( “ asu 2014-09 ” ) . asu 2014-09 was developed to enable financial statement users to better understand the nature , amount , timing and uncertainty of revenue and cash flows arising from contracts with customers . the update 's core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services . companies are to use a five-step contract review model to ensure revenue is recognized , measured and disclosed in accordance with this principle . those steps include the following : ( i ) identify the contract with the customer , ( ii ) identify the performance obligations in the contract , ( iii ) determine the transaction price , ( iv ) allocate the transaction price to each performance obligation in the contract , and ( v ) recognize revenue when or as the entity satisfies a performance obligation . the company has identified four main revenue streams of which three of them originate from lease contracts and will be subject to leases asu 2016-02 , topic 842 effective for annual reporting periods ( including interim periods ) beginning after december 15 , 2018. the revenue streams are : revenue recognition ( asu 2014-09 , topic 610-20 ) : · gain ( loss ) on sale of real estate properties leases ( asu 2016-02 , topic 842 ) : · rental revenues · straight line rents · tenant recoveries as of january 1 , 2018 , the company will be accounting for the sale of real estate properties under subtopic 610-20 which provides for revenue recognition based on transfer of ownership . all properties were non-financial real estate assets and thus not businesses which were sold to non-customers with no performance obligations . during the year ended december 31 , 2017 , the company sold real estate properties for net proceeds of $ 44.3 million , and a recorded net gain of $ 14.2 million . management has concluded that all of the company 's material revenue streams falls outside of the scope of this guidance and currently recognizes revenue from its contracts with customers at a point in time and does not anticipate any changes . the company intends to implement the standard under the modified retrospective method and does not anticipate recording any cumulative effect recognized in retained earnings as of the date of adoption ( january 1 , 2018 ) . critical accounting policies our accounting policies are determined in accordance with gaap . story_separator_special_tag liquidity and capital resources our principal demands for funds include payment of operating expenses , payment of principal and interest on our outstanding indebtedness , distributions to our shareholders and future property acquisitions and development . we expect to meet our short-term liquidity requirements through cash provided from operations and borrowings under our revolving credit facility . as of december 31 , 2017 , available cash and cash equivalents was $ 50.8 million . as of december 31 , 2017 we had $ 14.0 million outstanding on our revolving credit facility and $ 236.0 million was available for future borrowings , subject to our compliance with covenants . we anticipate funding our long-term capital needs through cash provided from operations , borrowings under our revolving credit facility , the issuance of debt and common or preferred equity or other instruments convertible into or exchangeable for common or preferred equity . in august 2017 , the company entered into an uncommitted and unsecured $ 100 million private placement shelf agreement ( the “ aig shelf agreement ” ) with aig asset management ( u.s. ) , llc ( “ aig ” ) and each aig affiliate named therein . the aig shelf agreement allows us to issue senior unsecured notes to aig at terms to be agreed upon at the time of any issuance during a three year issuance period ending in august 2020. as of december 31 , 2017 , no notes had been issued under the aig shelf agreement . in august 2017 , the company entered into an uncommitted and unsecured $ 100 million private placement shelf agreement ( the “ tiaa shelf agreement ” ) with teachers insurance and annuity association of america ( “ tiaa ” ) and each tiaa affiliate named therein . the tiaa shelf agreement allows us to issue senior unsecured notes to tiaa at terms to be agreed upon at the time of any issuance during a three year issuance period ending in august 2020. as of december 31 , 2017 , no notes had been issued under the tiaa shelf agreement . we continually evaluate alternative financing and believe that we can obtain financing on reasonable terms . however , there can be no assurance that additional financing or capital will be available , or that the terms will be acceptable or advantageous to us . capitalization as of december 31 , 2017 , our total market capitalization was approximately $ 2.1 billion . market capitalization consisted of $ 1.6 billion of shares of an common stock ( based on the december 29 , 2017 closing price of our common stock on the nyse of $ 51.44 per share and assuming the conversion of op units ) and $ 522.4 million of total debt including ( i ) $ 14.0 million of borrowings under our revolving credit facility ; ( ii ) $ 159.3 million of unsecured term loans ; ( iii ) $ 260.0 million of senior unsecured notes ; and ( iv ) $ 89.1 million of mortgage notes payable . our ratio of total debt to total market capitalization was 24.5 % at december 31 , 2017 . 28 at december 31 , 2017 , the non-controlling interest in our operating partnership consisted of a 1.2 % ownership interest in the operating partnership held by third parties . the op units may , under certain circumstances , be exchanged for our shares of common stock on a one-for-one basis . we , as sole general partner of the operating partnership , have the option to settle exchanged op units held by others for cash based on the current trading price of our shares . assuming the exchange of all op units , there would have been 31,352,519 shares of common stock outstanding at december 31 , 2017. story_separator_special_tag 30 contractual obligations the following table summarizes our contractual obligations by due date as of december 31 , 2017 : replace_table_token_10_th estimated interest payments are based on ( i ) the stated rates for mortgage notes payable , including the effect of interest rate swaps and ( ii ) the stated rates for unsecured term loans , including the effect of interest rate swaps and assuming the interest rate in effect for the most recent quarter remains in effect through the respective maturity dates . dividends during the quarter ended december 31 , 2017 , we declared a quarterly dividend of $ 0.520 per share . the cash dividend was paid on january 3 , 2018 to holders of record on december 20 , 2017. inflation our leases typically contain provisions to mitigate the adverse impact of inflation on our results of operations . tenant leases generally provide for limited increases in rent as a result of fixed increases or increases in the consumer price index . certain of our leases contain clauses enabling us to receive percentage rents based on tenants ' gross sales , which generally increase as prices rise . during times when inflation is greater than increases in rent , rent increases will not keep up with the rate of inflation . substantially all of properties are leased to tenants under long-term , net leases which require the tenant to pay certain operating expenses for a property , thereby reducing our exposure to operating cost increases resulting from inflation . inflation may have an adverse impact on our tenants . funds from operations funds from operations ( “ ffo ” ) is defined by the national association of real estate investment trusts , inc. ( “ nareit ” ) to mean net income computed in accordance with gaap , excluding gains ( or losses ) from sales of property , plus real estate related depreciation and amortization and any impairment charges on a depreciable real estate asset , and after adjustments for unconsolidated partnerships and joint ventures . management uses ffo as a supplemental measure to conduct and evaluate the company 's business because there are

debt the below table summarizes the company 's outstanding debt for the periods ended december 31 , 2017 and december 31 , 2016 ( in thousands ) : replace_table_token_9_th ( 1 ) the annual interest rate of the credit facility assumes one month libor as of december 31 , 2017 of 1.57 % . ( 2 ) interest rate includes the effects of variable interest rates that have been swapped to fixed interest rates . senior unsecured revolving credit facility in december 2016 , the company amended and restated the credit agreement that governs our senior unsecured revolving credit facility and unsecured term loan facility to increase the aggregate borrowing capacity to $ 350.0 million . the agreement provides for a $ 250.0 million unsecured revolving credit facility , a $ 65.0 million unsecured term loan facility and a $ 35.0 million unsecured term loan facility . the unsecured revolving credit facility matures in january 2021 with options to extend the maturity date to january 2022. the unsecured term loan facilities mature in january 2024. we have the ability to increase the aggregate borrowing capacity under the credit agreement up to $ 500.0 million , subject to lender approval . borrowings under the revolving credit facility bear interest at libor plus 130 to 195 basis points , depending on our leverage ratio . additionally , we are required to pay an unused commitment fee at an annual rate of 15 or 25 basis points on the unused portion of the revolving credit facility , depending on the amount of borrowings outstanding . the credit agreement contains certain financial covenants , including a maximum leverage ratio , a minimum fixed charge coverage ratio and a maximum percentage of secured debt to total asset value . unsecured term loan facilities in july 2016 , the company entered into a $ 40.0 million unsecured term loan facility that matures in july 2023 ( the “ 2023 term loan ” ) . borrowings under the 2023 term loan are priced at libor plus 165 to 225 basis points , depending on the company 's leverage . the company entered into an interest rate swap to fix libor at 1.40 % until maturity .

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 below table summarizes the company 's outstanding debt for the periods ended december 31 , 2017 and december 31 , 2016 ( in thousands ) : replace_table_token_9_th ( 1 ) the annual interest rate of the credit facility assumes one month libor as of december 31 , 2017 of 1.57 % . ( 2 ) interest rate includes the effects of variable interest rates that have been swapped to fixed interest rates . senior unsecured revolving credit facility in december 2016 , the company amended and restated the credit agreement that governs our senior unsecured revolving credit facility and unsecured term loan facility to increase the aggregate borrowing capacity to $ 350.0 million . the agreement provides for a $ 250.0 million unsecured revolving credit facility , a $ 65.0 million unsecured term loan facility and a $ 35.0 million unsecured term loan facility . the unsecured revolving credit facility matures in january 2021 with options to extend the maturity date to january 2022. the unsecured term loan facilities mature in january 2024. we have the ability to increase the aggregate borrowing capacity under the credit agreement up to $ 500.0 million , subject to lender approval . borrowings under the revolving credit facility bear interest at libor plus 130 to 195 basis points , depending on our leverage ratio . additionally , we are required to pay an unused commitment fee at an annual rate of 15 or 25 basis points on the unused portion of the revolving credit facility , depending on the amount of borrowings outstanding . the credit agreement contains certain financial covenants , including a maximum leverage ratio , a minimum fixed charge coverage ratio and a maximum percentage of secured debt to total asset value . unsecured term loan facilities in july 2016 , the company entered into a $ 40.0 million unsecured term loan facility that matures in july 2023 ( the “ 2023 term loan ” ) . borrowings under the 2023 term loan are priced at libor plus 165 to 225 basis points , depending on the company 's leverage . the company entered into an interest rate swap to fix libor at 1.40 % until maturity . ``` Suspicious Activity Report : the objective of asu 2017-01 is to clarify the definition of a business by adding guidance on how entities should evaluate whether transactions should be accounted for as acquisitions ( or disposals ) of assets or businesses . the definition of a business affects many areas of accounting including acquisitions , disposals , goodwill , and consolidation . asu 2017-01 will be effective for public business entities for fiscal years beginning after december 15 , 2017 , including interim periods in the year of adoption . early adoption is permitted for any interim or annual period . the company has early adopted and the guidance has no material impact on the company 's financial statements . in february 2016 , the fasb issued asu no . 2016-02 “ leases ” ( “ asu 2016-02 ” ) . the new standard creates topic 842 , leases , in fasb accounting standards codification ( fasb asc ) and supersedes fasb asc 840 , leases . asu 2016-02 requires a lessee to recognize the assets and liabilities that arise from leases ( operating and finance ) . however , for leases with a term of 12 months or less , a lessee is permitted to make an accounting policy election not to recognize lease assets and lease liabilities . the main difference between the existing guidance on accounting for leases and the new standard is that operating leases will now be recorded in the statement of financial position as assets and liabilities . the new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases and operating leases . asu 2016-02 is expected to impact the company 's consolidated financial statements as the company has certain operating land lease arrangements for which it is the lessee . gaap requires only capital ( finance ) leases to be recognized in the statement of financial position , and amounts related to operating leases largely are reflected in the financial statements as rent expense on the income statement and in disclosures to the financial statements . asu 2016-02 is effective for annual reporting periods ( including interim periods within those periods ) beginning after december 15 , 2018. early adoption is permitted . the company has engaged a professional services firm to assist in the implementation of asu 2016-02. the company anticipates that its retail leases where it is the lessor will continue to be accounted for as operating leases under the new standard . therefore , the company does not currently anticipate significant changes in the accounting for its lease revenues . the company is also the lessee under various land lease arrangements and it will be required to recognize right of use assets and related lease liabilities on its consolidated balance sheets upon adoption . the company will continue to evaluate the impact of adopting the new leases standard on its consolidated statements of income and comprehensive income and consolidated balance sheets . 24 in may 2014 , with subsequent updates issued in august 2015 and march , april and may 2016 , the fasb issued asu no . 2014-09 “ revenue from contracts with customers ( topic 606 ) ” ( “ asu 2014-09 ” ) . asu 2014-09 was developed to enable financial statement users to better understand the nature , amount , timing and uncertainty of revenue and cash flows arising from contracts with customers . the update 's core principle is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services . companies are to use a five-step contract review model to ensure revenue is recognized , measured and disclosed in accordance with this principle . those steps include the following : ( i ) identify the contract with the customer , ( ii ) identify the performance obligations in the contract , ( iii ) determine the transaction price , ( iv ) allocate the transaction price to each performance obligation in the contract , and ( v ) recognize revenue when or as the entity satisfies a performance obligation . the company has identified four main revenue streams of which three of them originate from lease contracts and will be subject to leases asu 2016-02 , topic 842 effective for annual reporting periods ( including interim periods ) beginning after december 15 , 2018. the revenue streams are : revenue recognition ( asu 2014-09 , topic 610-20 ) : · gain ( loss ) on sale of real estate properties leases ( asu 2016-02 , topic 842 ) : · rental revenues · straight line rents · tenant recoveries as of january 1 , 2018 , the company will be accounting for the sale of real estate properties under subtopic 610-20 which provides for revenue recognition based on transfer of ownership . all properties were non-financial real estate assets and thus not businesses which were sold to non-customers with no performance obligations . during the year ended december 31 , 2017 , the company sold real estate properties for net proceeds of $ 44.3 million , and a recorded net gain of $ 14.2 million . management has concluded that all of the company 's material revenue streams falls outside of the scope of this guidance and currently recognizes revenue from its contracts with customers at a point in time and does not anticipate any changes . the company intends to implement the standard under the modified retrospective method and does not anticipate recording any cumulative effect recognized in retained earnings as of the date of adoption ( january 1 , 2018 ) . critical accounting policies our accounting policies are determined in accordance with gaap . story_separator_special_tag liquidity and capital resources our principal demands for funds include payment of operating expenses , payment of principal and interest on our outstanding indebtedness , distributions to our shareholders and future property acquisitions and development . we expect to meet our short-term liquidity requirements through cash provided from operations and borrowings under our revolving credit facility . as of december 31 , 2017 , available cash and cash equivalents was $ 50.8 million . as of december 31 , 2017 we had $ 14.0 million outstanding on our revolving credit facility and $ 236.0 million was available for future borrowings , subject to our compliance with covenants . we anticipate funding our long-term capital needs through cash provided from operations , borrowings under our revolving credit facility , the issuance of debt and common or preferred equity or other instruments convertible into or exchangeable for common or preferred equity . in august 2017 , the company entered into an uncommitted and unsecured $ 100 million private placement shelf agreement ( the “ aig shelf agreement ” ) with aig asset management ( u.s. ) , llc ( “ aig ” ) and each aig affiliate named therein . the aig shelf agreement allows us to issue senior unsecured notes to aig at terms to be agreed upon at the time of any issuance during a three year issuance period ending in august 2020. as of december 31 , 2017 , no notes had been issued under the aig shelf agreement . in august 2017 , the company entered into an uncommitted and unsecured $ 100 million private placement shelf agreement ( the “ tiaa shelf agreement ” ) with teachers insurance and annuity association of america ( “ tiaa ” ) and each tiaa affiliate named therein . the tiaa shelf agreement allows us to issue senior unsecured notes to tiaa at terms to be agreed upon at the time of any issuance during a three year issuance period ending in august 2020. as of december 31 , 2017 , no notes had been issued under the tiaa shelf agreement . we continually evaluate alternative financing and believe that we can obtain financing on reasonable terms . however , there can be no assurance that additional financing or capital will be available , or that the terms will be acceptable or advantageous to us . capitalization as of december 31 , 2017 , our total market capitalization was approximately $ 2.1 billion . market capitalization consisted of $ 1.6 billion of shares of an common stock ( based on the december 29 , 2017 closing price of our common stock on the nyse of $ 51.44 per share and assuming the conversion of op units ) and $ 522.4 million of total debt including ( i ) $ 14.0 million of borrowings under our revolving credit facility ; ( ii ) $ 159.3 million of unsecured term loans ; ( iii ) $ 260.0 million of senior unsecured notes ; and ( iv ) $ 89.1 million of mortgage notes payable . our ratio of total debt to total market capitalization was 24.5 % at december 31 , 2017 . 28 at december 31 , 2017 , the non-controlling interest in our operating partnership consisted of a 1.2 % ownership interest in the operating partnership held by third parties . the op units may , under certain circumstances , be exchanged for our shares of common stock on a one-for-one basis . we , as sole general partner of the operating partnership , have the option to settle exchanged op units held by others for cash based on the current trading price of our shares . assuming the exchange of all op units , there would have been 31,352,519 shares of common stock outstanding at december 31 , 2017. story_separator_special_tag 30 contractual obligations the following table summarizes our contractual obligations by due date as of december 31 , 2017 : replace_table_token_10_th estimated interest payments are based on ( i ) the stated rates for mortgage notes payable , including the effect of interest rate swaps and ( ii ) the stated rates for unsecured term loans , including the effect of interest rate swaps and assuming the interest rate in effect for the most recent quarter remains in effect through the respective maturity dates . dividends during the quarter ended december 31 , 2017 , we declared a quarterly dividend of $ 0.520 per share . the cash dividend was paid on january 3 , 2018 to holders of record on december 20 , 2017. inflation our leases typically contain provisions to mitigate the adverse impact of inflation on our results of operations . tenant leases generally provide for limited increases in rent as a result of fixed increases or increases in the consumer price index . certain of our leases contain clauses enabling us to receive percentage rents based on tenants ' gross sales , which generally increase as prices rise . during times when inflation is greater than increases in rent , rent increases will not keep up with the rate of inflation . substantially all of properties are leased to tenants under long-term , net leases which require the tenant to pay certain operating expenses for a property , thereby reducing our exposure to operating cost increases resulting from inflation . inflation may have an adverse impact on our tenants . funds from operations funds from operations ( “ ffo ” ) is defined by the national association of real estate investment trusts , inc. ( “ nareit ” ) to mean net income computed in accordance with gaap , excluding gains ( or losses ) from sales of property , plus real estate related depreciation and amortization and any impairment charges on a depreciable real estate asset , and after adjustments for unconsolidated partnerships and joint ventures . management uses ffo as a supplemental measure to conduct and evaluate the company 's business because there are

during the year 2020 we announced several new agreements with german shis such as tk and dak gesundheit and others as well as the first german private health insurer ( “ phi ” ) that have chosen to enter into an agreement that outlines the process of obtaining a device for eligible insured patient . we are currently working with several additional shis and phis on securing a formal operating contract that will establish the process of obtaining a rewalk personal 6.0 device for their beneficiaries within their system . during the second quarter of 2020 we finalized and moved to implement two separate agreements to distribute additional product lines in the u.s. market . the company will be the exclusive distributor of the meditouch tutor movement biofeedback systems in the united states and will also have distribution rights for the myolyn myocycle fes cycles to u.s. rehabilitation clinics and personal sales through the va hospitals . these new products will improve our product offering to clinics as well as patients within the va as they both have similar clinician and patient profile . we have incurred net losses and negative cash flow from operations since inception and anticipate this to continue in the near term . we will continue to evaluate spending while continuing to focus resources on activities to commercialize the restore device for stroke patients , achieving additional commercial reimbursement coverage decisions for our rewalk personal device , continued research and development activities related mainly to our product line maintenance as well as our soft exo-suit design and activities related to our fda 522 postmarket study . for information on the effects to our company from the ongoing covid-19 pandemic , see “ part i , item 1. business—evolving covid-19 pandemic . ” 62 components of our statements of operations revenues we currently rely , and in the future will rely , on sales and rentals of our rewalk personal 6.0 device , our restore device , additional devices such as myocycle and meditouch which we are distributing ( “ distributed products ” ) and related service contracts and extended warranties for our revenue . our revenue is generated from a combination of third-party payors , institutions , and self-payors , including private and government employers . payments for our products by third party payors have been made primarily through case-by-case determinations . third-party payors include , without limitation , private insurance plans and managed care programs , government programs including the va , and worker 's compensation payments . we expect that third-party payors will be an increasingly important source of revenue in the future as well as clinics that will be interested in the restore device . in december 2015 , the va issued a national policy for the evaluation , training and procurement of rewalk personal exoskeleton systems for all qualifying veterans across the united states . the va policy is the first national coverage policy in the united states for qualifying individuals who have suffered spinal cord injury . all of our rewalk personal and rewalk rehabilitation systems sold until the end of 2017 were covered by a two-year warranty from the date of purchase , which is included in the purchase price . we offer customers the ability to purchase , any time during the initial warranty period , an extended warranty for up to three additional years . both warranties cover all elements of the systems , including the batteries , other than normal wear and tear . in the beginning of 2018 , we updated our service policy for new devices sold to include a five-year warranty . our restore device is sold with a two-year warranty . the distributed products warranty ranges between one year to ten years depending on the specific product and part . cost of revenues and gross profit cost of revenue consists primarily of systems purchased from our outsourced manufacturer , sanmina , salaries , personnel costs including non-cash share-based compensation , associated with manufacturing and inventory management , training and inspection , warranty and service costs , shipping and handling and manufacturing startup and transition costs . cost of revenues also includes royalties and expenses related to royalty-bearing research and development grants and sales and marketing grants . our gross profit and gross margin as a percentage of sales is influenced by a number of factors , including primarily the volume and price of our products sold and fluctuations in our cost of revenues . we expect gross profit as a percentage of sales will improve in the future as we increase our sales volumes and decrease the product manufacturing costs . operating expenses research and development expenses , net research and development expenses , net consist primarily of salaries , related personnel costs including share-based compensation , supplies , materials and consulting expenses related to product design and development , clinical studies , regulatory submissions , patent costs , sponsored research costs and other expenses related to our product development and research programs . we expense all research and development expenses as they are incurred . research and development expenses are presented net of the amount of any grants we receive for research and development in the period in which we receive the grant . we previously received grants and other funding from the bird foundation and the israel innovation authority , or “ iia ” ( formerly known as the office of the chief scientist ) . certain of those grants require us to pay royalties on sales of rewalk systems , which are recorded as cost of revenues . we may receive additional funding from these entities or others in the future . see “ grants and other funding ” below . story_separator_special_tag we selected the black-scholes-merton option pricing model as the most appropriate method for determining the estimated fair value of options . the resulting cost of an equity incentive award is recognized as an expense over the requisite service period of the award , which is usually the vesting period . we recognize compensation expense over the vesting period using the straight-line method and classify these amounts in the consolidated financial statements based on the department to which the related employee reports . 69 the determination of the grant date fair value of options using the black-scholes-merton option pricing model is affected by estimates and assumptions regarding a number of complex and subjective variables . these variables include the expected volatility of our share price over the expected term of the options , share option exercise and cancellation behaviors , risk-free interest rates and expected dividends , which are estimated as follows : risk-free interest rate . the risk-free interest rate is based on the yield from u.s. treasury zero-coupon bonds with a term equivalent to the contractual life of the options . dividend yield . we have never declared or paid any cash dividends and do not presently plan to pay cash dividends in the foreseeable future . consequently , we used an expected dividend yield of zero . expected volatility . we estimated the expected share price volatility for our ordinary shares by considering the historic price volatility for industry peers based on price observations over a period equivalent to the expected term of the share option grants . industry peers consist of public companies in the medical device and healthcare industries . we intend to continue to consistently apply this process using the same or similar industry peers until a sufficient amount of historical information regarding the volatility of our ordinary share price becomes available , or unless circumstances change such that the identified companies are no longer similar to us , in which case , more suitable companies whose share prices are publicly available would be utilized in the calculation . expected term . the expected term of options granted represents the period of time that options granted are expected to be outstanding and is determined based on the simplified method in accordance with asc no . 718-10-s99-1 ( sab no . 110 ) , as adequate historical experience is not available to provide a reasonable estimate . asc no . 718 requires forfeitures to be estimated at the time of grant and revised , if necessary , in subsequent periods if actual forfeitures differ from those estimates . the fair value of rsus granted is determined based on the price of the company 's ordinary shares on the date of grant . income taxes as part of the process of preparing our consolidated financial statements , we are required to estimate our taxes in each of the jurisdictions in which we operate . we account for income taxes in accordance with asc topic 740 , “ income taxes , ” or asc topic 740. asc topic 740 prescribes the use of an asset and liability method whereby deferred tax asset and liability account balances are determined based on the difference between book value and the tax bases of assets and liabilities and carryforward tax losses . deferred taxes are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse . we exercise judgment and provide a valuation allowance , if necessary , to reduce deferred tax assets to their estimated realizable value if it is more likely than not that some portion or all of the deferred tax asset will not be realized . we have established a full valuation allowance with respect to our deferred tax assets . asu 2015-17 , “ balance sheet classification of deferred taxes ” provides presentation requirements to classify deferred tax assets and liabilities , along with any related valuation allowance , are classified as non-current on the balance sheet . we account for uncertain tax positions in accordance with asc 740 and recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities , based on the technical merits of the position . the tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50 % likelihood of being realized upon ultimate settlement . accordingly , we report a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return . we recognize interest and penalties , if any , related to unrecognized tax benefits in tax expense . recently issued and adopted accounting pronouncements a discussion of recent accounting pronouncements is included in note 2v , new accounting pronouncements to our consolidated financial statements in this annual report . 70 liquidity and capital resources sources of liquidity and outlook since inception , we have funded our operations primarily through the sale of our equity securities and convertible notes to investors in private placements , the sale of our equity securities in public offerings , cash exercises of outstanding warrants and the incurrence of bank debt . for the full year ended december 31 , 2020 , the company incurred a consolidated net loss of $ 13 million and has an accumulated deficit in the total amount of $ 181.4 million . our cash and cash equivalent on december 31 , 2020 , totaled $ 20.3 million , and in subsequent warrants exercise transactions the company received a total of an additional $ 13.2 million in the beginning of 2021. the company 's negative operating cash flow for the full year ended december 31 , 2020 , was $ 12.6 million . the company has sufficient funds to support its operation for more than 12

cash flows replace_table_token_10_th year ended december 31 , 2020 to year ended december 31 , 2019 net cash used in operating activities net cash used in operating activities decreased by $ 2.2 million in 2020 compared to 2019 mainly due to our reduction in our net loss . net cash used in investing activities net cash used in investing activities increased from $ 22 thousand in 2019 to $ 73 thousand in 2020 , primarily as a result of increased use of cash for the purchase of property and equipment . net cash provided by financing activities we generated $ 16.7 million from financing activities in 2020 compared to $ 21.5 million in 2019. our fundraising activities remained generally flat with $ 23.3 million raised in 2020 and 2019 and the overall decrease is due to our kreos loan repayment which was higher by $ 5.2 million in 2020. year ended december 31 , 2019 compared to year ended december 31 , 2018 a discussion of changes in our cash flows in 2019 compared to 2018 has been omitted from this annual report on form 10-k , but may be found in “ item 7. management 's discussion and analysis of financial condition and results of operations ” of our form 10-k for the fiscal year ended december 30 , 2019 , filed with the sec on february 20 , 2020 , which is available free of charge on the secs website at www.sec.go vand at www.rewalk.com , and is incorporated by reference herein .

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 replace_table_token_10_th year ended december 31 , 2020 to year ended december 31 , 2019 net cash used in operating activities net cash used in operating activities decreased by $ 2.2 million in 2020 compared to 2019 mainly due to our reduction in our net loss . net cash used in investing activities net cash used in investing activities increased from $ 22 thousand in 2019 to $ 73 thousand in 2020 , primarily as a result of increased use of cash for the purchase of property and equipment . net cash provided by financing activities we generated $ 16.7 million from financing activities in 2020 compared to $ 21.5 million in 2019. our fundraising activities remained generally flat with $ 23.3 million raised in 2020 and 2019 and the overall decrease is due to our kreos loan repayment which was higher by $ 5.2 million in 2020. year ended december 31 , 2019 compared to year ended december 31 , 2018 a discussion of changes in our cash flows in 2019 compared to 2018 has been omitted from this annual report on form 10-k , but may be found in “ item 7. management 's discussion and analysis of financial condition and results of operations ” of our form 10-k for the fiscal year ended december 30 , 2019 , filed with the sec on february 20 , 2020 , which is available free of charge on the secs website at www.sec.go vand at www.rewalk.com , and is incorporated by reference herein . ``` Suspicious Activity Report : during the year 2020 we announced several new agreements with german shis such as tk and dak gesundheit and others as well as the first german private health insurer ( “ phi ” ) that have chosen to enter into an agreement that outlines the process of obtaining a device for eligible insured patient . we are currently working with several additional shis and phis on securing a formal operating contract that will establish the process of obtaining a rewalk personal 6.0 device for their beneficiaries within their system . during the second quarter of 2020 we finalized and moved to implement two separate agreements to distribute additional product lines in the u.s. market . the company will be the exclusive distributor of the meditouch tutor movement biofeedback systems in the united states and will also have distribution rights for the myolyn myocycle fes cycles to u.s. rehabilitation clinics and personal sales through the va hospitals . these new products will improve our product offering to clinics as well as patients within the va as they both have similar clinician and patient profile . we have incurred net losses and negative cash flow from operations since inception and anticipate this to continue in the near term . we will continue to evaluate spending while continuing to focus resources on activities to commercialize the restore device for stroke patients , achieving additional commercial reimbursement coverage decisions for our rewalk personal device , continued research and development activities related mainly to our product line maintenance as well as our soft exo-suit design and activities related to our fda 522 postmarket study . for information on the effects to our company from the ongoing covid-19 pandemic , see “ part i , item 1. business—evolving covid-19 pandemic . ” 62 components of our statements of operations revenues we currently rely , and in the future will rely , on sales and rentals of our rewalk personal 6.0 device , our restore device , additional devices such as myocycle and meditouch which we are distributing ( “ distributed products ” ) and related service contracts and extended warranties for our revenue . our revenue is generated from a combination of third-party payors , institutions , and self-payors , including private and government employers . payments for our products by third party payors have been made primarily through case-by-case determinations . third-party payors include , without limitation , private insurance plans and managed care programs , government programs including the va , and worker 's compensation payments . we expect that third-party payors will be an increasingly important source of revenue in the future as well as clinics that will be interested in the restore device . in december 2015 , the va issued a national policy for the evaluation , training and procurement of rewalk personal exoskeleton systems for all qualifying veterans across the united states . the va policy is the first national coverage policy in the united states for qualifying individuals who have suffered spinal cord injury . all of our rewalk personal and rewalk rehabilitation systems sold until the end of 2017 were covered by a two-year warranty from the date of purchase , which is included in the purchase price . we offer customers the ability to purchase , any time during the initial warranty period , an extended warranty for up to three additional years . both warranties cover all elements of the systems , including the batteries , other than normal wear and tear . in the beginning of 2018 , we updated our service policy for new devices sold to include a five-year warranty . our restore device is sold with a two-year warranty . the distributed products warranty ranges between one year to ten years depending on the specific product and part . cost of revenues and gross profit cost of revenue consists primarily of systems purchased from our outsourced manufacturer , sanmina , salaries , personnel costs including non-cash share-based compensation , associated with manufacturing and inventory management , training and inspection , warranty and service costs , shipping and handling and manufacturing startup and transition costs . cost of revenues also includes royalties and expenses related to royalty-bearing research and development grants and sales and marketing grants . our gross profit and gross margin as a percentage of sales is influenced by a number of factors , including primarily the volume and price of our products sold and fluctuations in our cost of revenues . we expect gross profit as a percentage of sales will improve in the future as we increase our sales volumes and decrease the product manufacturing costs . operating expenses research and development expenses , net research and development expenses , net consist primarily of salaries , related personnel costs including share-based compensation , supplies , materials and consulting expenses related to product design and development , clinical studies , regulatory submissions , patent costs , sponsored research costs and other expenses related to our product development and research programs . we expense all research and development expenses as they are incurred . research and development expenses are presented net of the amount of any grants we receive for research and development in the period in which we receive the grant . we previously received grants and other funding from the bird foundation and the israel innovation authority , or “ iia ” ( formerly known as the office of the chief scientist ) . certain of those grants require us to pay royalties on sales of rewalk systems , which are recorded as cost of revenues . we may receive additional funding from these entities or others in the future . see “ grants and other funding ” below . story_separator_special_tag we selected the black-scholes-merton option pricing model as the most appropriate method for determining the estimated fair value of options . the resulting cost of an equity incentive award is recognized as an expense over the requisite service period of the award , which is usually the vesting period . we recognize compensation expense over the vesting period using the straight-line method and classify these amounts in the consolidated financial statements based on the department to which the related employee reports . 69 the determination of the grant date fair value of options using the black-scholes-merton option pricing model is affected by estimates and assumptions regarding a number of complex and subjective variables . these variables include the expected volatility of our share price over the expected term of the options , share option exercise and cancellation behaviors , risk-free interest rates and expected dividends , which are estimated as follows : risk-free interest rate . the risk-free interest rate is based on the yield from u.s. treasury zero-coupon bonds with a term equivalent to the contractual life of the options . dividend yield . we have never declared or paid any cash dividends and do not presently plan to pay cash dividends in the foreseeable future . consequently , we used an expected dividend yield of zero . expected volatility . we estimated the expected share price volatility for our ordinary shares by considering the historic price volatility for industry peers based on price observations over a period equivalent to the expected term of the share option grants . industry peers consist of public companies in the medical device and healthcare industries . we intend to continue to consistently apply this process using the same or similar industry peers until a sufficient amount of historical information regarding the volatility of our ordinary share price becomes available , or unless circumstances change such that the identified companies are no longer similar to us , in which case , more suitable companies whose share prices are publicly available would be utilized in the calculation . expected term . the expected term of options granted represents the period of time that options granted are expected to be outstanding and is determined based on the simplified method in accordance with asc no . 718-10-s99-1 ( sab no . 110 ) , as adequate historical experience is not available to provide a reasonable estimate . asc no . 718 requires forfeitures to be estimated at the time of grant and revised , if necessary , in subsequent periods if actual forfeitures differ from those estimates . the fair value of rsus granted is determined based on the price of the company 's ordinary shares on the date of grant . income taxes as part of the process of preparing our consolidated financial statements , we are required to estimate our taxes in each of the jurisdictions in which we operate . we account for income taxes in accordance with asc topic 740 , “ income taxes , ” or asc topic 740. asc topic 740 prescribes the use of an asset and liability method whereby deferred tax asset and liability account balances are determined based on the difference between book value and the tax bases of assets and liabilities and carryforward tax losses . deferred taxes are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse . we exercise judgment and provide a valuation allowance , if necessary , to reduce deferred tax assets to their estimated realizable value if it is more likely than not that some portion or all of the deferred tax asset will not be realized . we have established a full valuation allowance with respect to our deferred tax assets . asu 2015-17 , “ balance sheet classification of deferred taxes ” provides presentation requirements to classify deferred tax assets and liabilities , along with any related valuation allowance , are classified as non-current on the balance sheet . we account for uncertain tax positions in accordance with asc 740 and recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities , based on the technical merits of the position . the tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50 % likelihood of being realized upon ultimate settlement . accordingly , we report a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return . we recognize interest and penalties , if any , related to unrecognized tax benefits in tax expense . recently issued and adopted accounting pronouncements a discussion of recent accounting pronouncements is included in note 2v , new accounting pronouncements to our consolidated financial statements in this annual report . 70 liquidity and capital resources sources of liquidity and outlook since inception , we have funded our operations primarily through the sale of our equity securities and convertible notes to investors in private placements , the sale of our equity securities in public offerings , cash exercises of outstanding warrants and the incurrence of bank debt . for the full year ended december 31 , 2020 , the company incurred a consolidated net loss of $ 13 million and has an accumulated deficit in the total amount of $ 181.4 million . our cash and cash equivalent on december 31 , 2020 , totaled $ 20.3 million , and in subsequent warrants exercise transactions the company received a total of an additional $ 13.2 million in the beginning of 2021. the company 's negative operating cash flow for the full year ended december 31 , 2020 , was $ 12.6 million . the company has sufficient funds to support its operation for more than 12

we also invest to broaden our product and service capabilities , increase our global client base and industry expertise , tailor our geographic footprint to the needs of our clients , and further scale our end-to-end integrated solutions platform . to this end we have been highly acquisitive in the last several years , including an acquisition in the second half of 2020 of a preferred amazon connect cloud contact center service provider , an acquisition in the first quarter of 2020 of an autonomous customer experience and intelligent automation solutions provider and an acquisition in the fourth quarter of 2019 of a provider of customer care , social media community management , content moderation , technical support and business process solutions for rapidly growing businesses in early stages of their lifecycle . we have extensive expertise in the automotive , communications , financial services , national/federal and state and local government , healthcare , logistics , media and entertainment , e-tail/retail , technology , travel and transportation industries . we serve more than 300 diverse clients globally , including many of the world 's iconic brands , fortune 1000 companies , government agencies , and disruptive growth companies . in march 2020 , the world health organization declared the outbreak of covid-19 as a global pandemic . within weeks of this announcement , travel bans , a state of emergency , quarantines , lockdowns , “ shelter in place ” orders , and business restrictions and shutdowns were issued in most countries where ttec does business . the need to comply with these measures , which came into effect with little notice , impacted our day-to-day operations and disrupted our business in the last month of the first quarter and second quarter of the year . as a result , operations were suspended in some of our ttec engage customer experience delivery sites . business continuity plans were executed to transition as many employees as was reasonably possible to a work from home environment to support the health and well-being of our employees and communities and to provide a stable service delivery platform for our clients . between mid-march and mid-april 2020 , we transitioned over 43,000 employees , or 80 % of our employee population , to a work from home environment . with the easing of some of the government restrictions , those employees who were considered essential and could not operate effectively while remote returned to our brick-and-mortar sites , but most continue to work from home . for those sites that continue to operate , we have taken extensive measures to protect the health and safety of our employees , in accordance with the recommendations and guidelines provided by the world health organization , the u.s. and european centers for disease control and prevention , the u.s. occupational safety association , and local governments in jurisdictions where our customer experience centers are located . although our business experienced the effects of covid-19 in the first half of 2020 , our implementation of business continuity plans , rapid transition of employees to a work from home environment , and the geographic diversification of our delivery centers allowed us to mitigate potentially more severe impacts , and positioned us to support our commercial and public sector clients experiencing significant surge volumes of customer , patient and citizen covid-19 related engagement . our covid-19 related surge work has contributed approximately 12 % of our total revenue for 2020. although approximately 20 % of our pre-covid-19 business was comprised of clients in industries that have been negatively impacted by the pandemic , i.e . automotive , retail and travel and hospitality , the 2020 total revenue derived from these clients has increased approximately 10 % over the prior year period . through the period ended december 31 , 2020 the covid-19 pandemic has not had a material adverse impact on our operational or financial results . while we expect this positive trend to continue and while some of our covid-19 related work has transitioned to more traditional business activities for the same clients , there is uncertainty about our covid-19 surge volumes and our non-covid-19 related business . we can not accurately predict the severity of the economic and operational challenges of a pro-longed covid-19 pandemic on our clients ' businesses and its effect on the magnitude and timing of their buying decisions . further , while to date we have been successful in managing service delivery from our delivery sites that could not be replaced with work from home delivery , unpredictable lockdown decisions in some jurisdictions where we do business may continue to impact our delivery capability with little notice , thus potentially impacting our results of operations in the future . 30 in march 2020 , we launched multiple cost reduction , optimization , and liquidity preservation initiatives to align our expenses with anticipated changes in revenue and increased costs related to the covid-19 pandemic and government mandated restriction measures . we also intensified our cash flow discipline , including working capital management , hiring freezes , cuts in non-essential spending , suspension of merit increases and some incentive programs , deferral of capital expenditures , where possible , and negotiations for rent concessions for those facilities that we were unable to use during the government restrictions related to the covid-19 pandemic . our results of operations for 2020 permitted us to reverse most of the cost austerity measures . with the greater adoption of our work from home solution during the covid-19 pandemic , we also launched a comprehensive review of our global real estate footprint to balance our commitments to physical facilities around the globe against evolving client preferences with respect to traditional physical delivery centers and work from home delivery . considering the continued covid-19 related uncertainties , we continue to remain vigilant in our cost management . story_separator_special_tag 34 income taxes accounting for income taxes requires recognition of deferred tax assets and liabilities for the expected future income tax consequences of transactions that have been included in the consolidated financial statements or tax returns . under this method , deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using tax rates in effect for the year in which the differences are expected to reverse . when circumstances warrant , we assess the likelihood that our net deferred tax assets will more likely than not be recovered from future projected taxable income . we continually review the likelihood that deferred tax assets will be realized in future tax periods under the “ more-likely-than-not ” criteria . in making this judgment , we consider all available evidence , both positive and negative , in determining whether , based on the weight of that evidence , a valuation allowance is required . we follow a two-step approach to recognizing and measuring uncertain tax positions . the first step is to determine if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained on audit . the second step is to estimate and measure the tax benefit as the amount that has a greater than 50 % likelihood of being realized upon ultimate settlement with the tax authority . we evaluate these uncertain tax positions on a quarterly basis . this evaluation is based on the consideration of several factors including changes in facts or circumstances , changes in applicable tax law , and settlement of issues under audit . interest and penalties relating to income taxes and uncertain tax positions are accrued net of tax in the provision for income taxes in the accompanying consolidated statements of comprehensive income ( loss ) . in the future , our effective tax rate could be adversely affected by several factors , many of which are outside our control . our effective tax rate is affected by the proportion of revenue and income before taxes in the various domestic and international jurisdictions in which we operate . further , we are subject to changing tax laws , regulations and interpretations in multiple jurisdictions in which we operate , as well as the requirements , pronouncements and rulings of certain tax , regulatory and accounting organizations . we estimate our annual effective tax rate each quarter based on a combination of actual and forecasted results of subsequent quarters . consequently , significant changes in our actual quarterly or forecasted results may impact the effective tax rate for the current or future periods . impairment of long-lived assets we evaluate the carrying value of property , plant and equipment and definite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable . an asset is considered to be impaired when the forecasted undiscounted cash flows of an asset group are estimated to be less than its carrying value . the amount of impairment recognized is the difference between the carrying value of the asset group and its fair value . fair value estimates are based on assumptions concerning the amount and timing of estimated future cash flows and assumed discount rates . goodwill and indefinite-lived intangible assets we evaluate goodwill and indefinite-lived intangible assets for possible impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable . we use a two-step process to assess the realizability of goodwill . the first step , step 0 , is a qualitative assessment that analyzes current economic indicators associated with a particular reporting unit . for example , we analyze changes in economic , market and industry conditions , business strategy , cost factors , and financial performance , among others , to determine if there would be a significant decline to the fair value of a particular reporting unit . a qualitative assessment also includes analyzing the excess fair value of a reporting unit over its carrying value from impairment assessments performed in previous years . if the qualitative assessment indicates a stable or improved fair value , no further testing is required . 35 if a qualitative assessment indicates that a significant decline to fair value of a reporting unit is more likely than not , or if a reporting unit 's fair value has historically been closer to its carrying value , we will proceed to step 1 testing where we calculate the fair value of a reporting unit based on discounted future probability-weighted cash flows . if step 1 indicates that the carrying value of a reporting unit is in excess of its fair value , we will record an impairment equal to the amount by which a reporting unit 's carrying value exceeds its fair value . we estimate fair value using discounted cash flows of the reporting units . the most significant assumptions used in these analyses are those made in estimating future cash flows . in estimating future cash flows , we use financial assumptions in our internal forecasting model such as projected capacity utilization , projected changes in the prices we charge for our services , projected labor costs , as well as contract negotiation status . the financial and credit market volatility directly impacts our fair value measurement through our weighted average cost of capital that we use to determine our discount rate . we use a discount rate we consider appropriate for the country where the business unit is providing services . similar to goodwill , the company may first use a qualitative analysis to assess the realizability of its indefinite-lived intangible assets . the qualitative analysis will include a review of changes in economic , market and industry conditions , business strategy , cost factors , and financial performance , among others ,

cash flows from investing activities for the years 2020 and 2019 , we reported net cash flows used in investing activities of $ 112.4 million and $ 162.9 million , respectively . the net decrease in cash used in investing activities from 2019 to 2020 was primarily due to a $ 49.8 million decrease related to acquisitions . cash flows from financing activities for the years 2020 and 2019 , we reported net cash flows used in financing activities of $ 112.2 million and $ 47.4 million , respectively . the change in net cash flows from 2019 to 2020 was primarily due to a $ 87.0 million net additional draw on the line of credit , offset by a $ 42.8 million increase related to payments of contingent consideration and hold-back payments related to several acquisitions and a $ 105.8 million increase in dividends paid to shareholders . 40 free cash flow free cash flow ( see “ presentation of non-gaap measurements ” below for the definition of free cash flow ) was $ 212.1 million and $ 177.2 million for the years 2020 and 2019 , respectively . the increase from 2019 to 2020 was primarily due to an increase in the net cash from operations offset by slightly lower capital expenditures presentation of non-gaap measurements free cash flow free cash flow is a non-gaap liquidity measurement . we believe that free cash flow is useful to our investors because it measures , during a given period , the amount of cash generated that is available for debt obligations and investments other than purchases of property , plant and equipment . free cash flow is not a measure determined by gaap and should not be considered a substitute for “ income from operations , ” “ net income , ” “ net cash provided by operating activities , ” or any other measure determined in accordance with gaap . we believe this non-gaap liquidity measure is useful , in addition to the most directly comparable gaap measure of “ net cash provided by operating activities , ” because free cash flow includes investments in operational 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. ```cash flows from investing activities for the years 2020 and 2019 , we reported net cash flows used in investing activities of $ 112.4 million and $ 162.9 million , respectively . the net decrease in cash used in investing activities from 2019 to 2020 was primarily due to a $ 49.8 million decrease related to acquisitions . cash flows from financing activities for the years 2020 and 2019 , we reported net cash flows used in financing activities of $ 112.2 million and $ 47.4 million , respectively . the change in net cash flows from 2019 to 2020 was primarily due to a $ 87.0 million net additional draw on the line of credit , offset by a $ 42.8 million increase related to payments of contingent consideration and hold-back payments related to several acquisitions and a $ 105.8 million increase in dividends paid to shareholders . 40 free cash flow free cash flow ( see “ presentation of non-gaap measurements ” below for the definition of free cash flow ) was $ 212.1 million and $ 177.2 million for the years 2020 and 2019 , respectively . the increase from 2019 to 2020 was primarily due to an increase in the net cash from operations offset by slightly lower capital expenditures presentation of non-gaap measurements free cash flow free cash flow is a non-gaap liquidity measurement . we believe that free cash flow is useful to our investors because it measures , during a given period , the amount of cash generated that is available for debt obligations and investments other than purchases of property , plant and equipment . free cash flow is not a measure determined by gaap and should not be considered a substitute for “ income from operations , ” “ net income , ” “ net cash provided by operating activities , ” or any other measure determined in accordance with gaap . we believe this non-gaap liquidity measure is useful , in addition to the most directly comparable gaap measure of “ net cash provided by operating activities , ” because free cash flow includes investments in operational assets . ``` Suspicious Activity Report : we also invest to broaden our product and service capabilities , increase our global client base and industry expertise , tailor our geographic footprint to the needs of our clients , and further scale our end-to-end integrated solutions platform . to this end we have been highly acquisitive in the last several years , including an acquisition in the second half of 2020 of a preferred amazon connect cloud contact center service provider , an acquisition in the first quarter of 2020 of an autonomous customer experience and intelligent automation solutions provider and an acquisition in the fourth quarter of 2019 of a provider of customer care , social media community management , content moderation , technical support and business process solutions for rapidly growing businesses in early stages of their lifecycle . we have extensive expertise in the automotive , communications , financial services , national/federal and state and local government , healthcare , logistics , media and entertainment , e-tail/retail , technology , travel and transportation industries . we serve more than 300 diverse clients globally , including many of the world 's iconic brands , fortune 1000 companies , government agencies , and disruptive growth companies . in march 2020 , the world health organization declared the outbreak of covid-19 as a global pandemic . within weeks of this announcement , travel bans , a state of emergency , quarantines , lockdowns , “ shelter in place ” orders , and business restrictions and shutdowns were issued in most countries where ttec does business . the need to comply with these measures , which came into effect with little notice , impacted our day-to-day operations and disrupted our business in the last month of the first quarter and second quarter of the year . as a result , operations were suspended in some of our ttec engage customer experience delivery sites . business continuity plans were executed to transition as many employees as was reasonably possible to a work from home environment to support the health and well-being of our employees and communities and to provide a stable service delivery platform for our clients . between mid-march and mid-april 2020 , we transitioned over 43,000 employees , or 80 % of our employee population , to a work from home environment . with the easing of some of the government restrictions , those employees who were considered essential and could not operate effectively while remote returned to our brick-and-mortar sites , but most continue to work from home . for those sites that continue to operate , we have taken extensive measures to protect the health and safety of our employees , in accordance with the recommendations and guidelines provided by the world health organization , the u.s. and european centers for disease control and prevention , the u.s. occupational safety association , and local governments in jurisdictions where our customer experience centers are located . although our business experienced the effects of covid-19 in the first half of 2020 , our implementation of business continuity plans , rapid transition of employees to a work from home environment , and the geographic diversification of our delivery centers allowed us to mitigate potentially more severe impacts , and positioned us to support our commercial and public sector clients experiencing significant surge volumes of customer , patient and citizen covid-19 related engagement . our covid-19 related surge work has contributed approximately 12 % of our total revenue for 2020. although approximately 20 % of our pre-covid-19 business was comprised of clients in industries that have been negatively impacted by the pandemic , i.e . automotive , retail and travel and hospitality , the 2020 total revenue derived from these clients has increased approximately 10 % over the prior year period . through the period ended december 31 , 2020 the covid-19 pandemic has not had a material adverse impact on our operational or financial results . while we expect this positive trend to continue and while some of our covid-19 related work has transitioned to more traditional business activities for the same clients , there is uncertainty about our covid-19 surge volumes and our non-covid-19 related business . we can not accurately predict the severity of the economic and operational challenges of a pro-longed covid-19 pandemic on our clients ' businesses and its effect on the magnitude and timing of their buying decisions . further , while to date we have been successful in managing service delivery from our delivery sites that could not be replaced with work from home delivery , unpredictable lockdown decisions in some jurisdictions where we do business may continue to impact our delivery capability with little notice , thus potentially impacting our results of operations in the future . 30 in march 2020 , we launched multiple cost reduction , optimization , and liquidity preservation initiatives to align our expenses with anticipated changes in revenue and increased costs related to the covid-19 pandemic and government mandated restriction measures . we also intensified our cash flow discipline , including working capital management , hiring freezes , cuts in non-essential spending , suspension of merit increases and some incentive programs , deferral of capital expenditures , where possible , and negotiations for rent concessions for those facilities that we were unable to use during the government restrictions related to the covid-19 pandemic . our results of operations for 2020 permitted us to reverse most of the cost austerity measures . with the greater adoption of our work from home solution during the covid-19 pandemic , we also launched a comprehensive review of our global real estate footprint to balance our commitments to physical facilities around the globe against evolving client preferences with respect to traditional physical delivery centers and work from home delivery . considering the continued covid-19 related uncertainties , we continue to remain vigilant in our cost management . story_separator_special_tag 34 income taxes accounting for income taxes requires recognition of deferred tax assets and liabilities for the expected future income tax consequences of transactions that have been included in the consolidated financial statements or tax returns . under this method , deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using tax rates in effect for the year in which the differences are expected to reverse . when circumstances warrant , we assess the likelihood that our net deferred tax assets will more likely than not be recovered from future projected taxable income . we continually review the likelihood that deferred tax assets will be realized in future tax periods under the “ more-likely-than-not ” criteria . in making this judgment , we consider all available evidence , both positive and negative , in determining whether , based on the weight of that evidence , a valuation allowance is required . we follow a two-step approach to recognizing and measuring uncertain tax positions . the first step is to determine if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained on audit . the second step is to estimate and measure the tax benefit as the amount that has a greater than 50 % likelihood of being realized upon ultimate settlement with the tax authority . we evaluate these uncertain tax positions on a quarterly basis . this evaluation is based on the consideration of several factors including changes in facts or circumstances , changes in applicable tax law , and settlement of issues under audit . interest and penalties relating to income taxes and uncertain tax positions are accrued net of tax in the provision for income taxes in the accompanying consolidated statements of comprehensive income ( loss ) . in the future , our effective tax rate could be adversely affected by several factors , many of which are outside our control . our effective tax rate is affected by the proportion of revenue and income before taxes in the various domestic and international jurisdictions in which we operate . further , we are subject to changing tax laws , regulations and interpretations in multiple jurisdictions in which we operate , as well as the requirements , pronouncements and rulings of certain tax , regulatory and accounting organizations . we estimate our annual effective tax rate each quarter based on a combination of actual and forecasted results of subsequent quarters . consequently , significant changes in our actual quarterly or forecasted results may impact the effective tax rate for the current or future periods . impairment of long-lived assets we evaluate the carrying value of property , plant and equipment and definite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable . an asset is considered to be impaired when the forecasted undiscounted cash flows of an asset group are estimated to be less than its carrying value . the amount of impairment recognized is the difference between the carrying value of the asset group and its fair value . fair value estimates are based on assumptions concerning the amount and timing of estimated future cash flows and assumed discount rates . goodwill and indefinite-lived intangible assets we evaluate goodwill and indefinite-lived intangible assets for possible impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable . we use a two-step process to assess the realizability of goodwill . the first step , step 0 , is a qualitative assessment that analyzes current economic indicators associated with a particular reporting unit . for example , we analyze changes in economic , market and industry conditions , business strategy , cost factors , and financial performance , among others , to determine if there would be a significant decline to the fair value of a particular reporting unit . a qualitative assessment also includes analyzing the excess fair value of a reporting unit over its carrying value from impairment assessments performed in previous years . if the qualitative assessment indicates a stable or improved fair value , no further testing is required . 35 if a qualitative assessment indicates that a significant decline to fair value of a reporting unit is more likely than not , or if a reporting unit 's fair value has historically been closer to its carrying value , we will proceed to step 1 testing where we calculate the fair value of a reporting unit based on discounted future probability-weighted cash flows . if step 1 indicates that the carrying value of a reporting unit is in excess of its fair value , we will record an impairment equal to the amount by which a reporting unit 's carrying value exceeds its fair value . we estimate fair value using discounted cash flows of the reporting units . the most significant assumptions used in these analyses are those made in estimating future cash flows . in estimating future cash flows , we use financial assumptions in our internal forecasting model such as projected capacity utilization , projected changes in the prices we charge for our services , projected labor costs , as well as contract negotiation status . the financial and credit market volatility directly impacts our fair value measurement through our weighted average cost of capital that we use to determine our discount rate . we use a discount rate we consider appropriate for the country where the business unit is providing services . similar to goodwill , the company may first use a qualitative analysis to assess the realizability of its indefinite-lived intangible assets . the qualitative analysis will include a review of changes in economic , market and industry conditions , business strategy , cost factors , and financial performance , among others ,

revenues . our revenues for 2019 were $ 996.8 million , a 14 % increase when compared to $ 875.1 million for 2018 , with the increase mainly attributed to the full year impact of the business ink and forte acquisitions , discussed above , which generated an additional $ 91 million of combined revenues in 2019 over that in 2018 , and the remaining increase due primarily to our cloud solutions and managed services arrangements . operating results . operating income for 2019 was $ 126.1 million , or a 12.7 % operating income margin percentage , compared to $ 104.9 million , or a 12.0 % operating income margin percentage for 2018 , with the increase in operating income primarily a result of the higher revenues generated in 2019. diluted earnings per share ( “ eps ” ) . diluted eps for 2019 was $ 2.55 compared to $ 2.01 for 2018 , reflective of the higher operating income for 2019. additionally , 2019 diluted eps was positively impacted by a lower effective income tax rate resulting primarily from an approximately $ 4 million net income tax benefit related to comcast 's exercise of 0.4 million vested common stock warrants . balance sheet and cash flows . as of december 31 , 2019 , we had cash , cash equivalents , and short-term investments of $ 182.7 million , as compared to $ 162.9 million as of december 31 , 2018. cash flows from operating activities for 2019 were $ 151.1 million , compared to $ 143.3 million for 2018. see the liquidity section below for further discussion of our cash flows . 24 significant client relationships comcast . comcast continues to be our largest client . for 2019 and 2018 , revenues from comcast were $ 229 million and $ 221 million , respectively , representing approximately 23 % and 25 % of our total revenues . on december 16 , 2019 , we entered into a new csg master subscriber management system agreement with comcast ( the “ agreement ” ) which supersedes all previous agreements with comcast . the key terms of the agreement are as follows : the agreement is effective january 1 , 2020 , and extends our contractual relationship with comcast through december 31 , 2024 for cloud and related solutions , and through december 31 , 2025 for print and mail services for residential customer accounts . in addition , the agreement provides comcast with the option to extend the cloud and related services for one additional year by exercising the renewal option no later than june 30 , 2023. we maintain the exclusive right to provide print and mail services to all comcast residential customer accounts through december 31 , 2025. the fees to be generated under the agreement will be based primarily on monthly charges for cloud and related services per comcast residential customer account , and various other ancillary services based on actual usage . certain of the per-unit fees include volume-based pricing tiers , and may be subject to annual price escalators . the agreement contains certain financial commitments associated with the number of comcast residential customer accounts that are to be processed on our systems , with such commitments decreasing over the life of the agreement . however , if comcast chooses to process fewer customer accounts on our systems than the committed amounts , the monthly fees to be paid by comcast will be based on the higher number of committed customer accounts for the applicable billing period . the agreement includes potential financial incentives related to comcast 's efficient use of our systems . the agreement contains certain rights and obligations of both parties , including the following key items : ( i ) the termination of the agreement under certain conditions ; ( ii ) various service level commitments ; and ( iii ) remedies and limitation on liabilities associated with specified breaches of contractual obligations . when compared to the previous agreement , we provided overall pricing adjustments of approximately 10 % to comcast , which in effect , will reduce the current fees we will receive from comcast . the anticipated revenue impact in both the near and long terms may vary depending on the type of service consumed by comcast . the impact from the agreement is only an estimate and actual results may vary depending upon a variety of factors . we undertake no duty to update or revise any forward-looking statements , whether as a result of new information , future events or otherwise . a copy of the agreement , with confidential information redacted , is filed as exhibit 10.27 to this form 10-k. charter . charter is our second largest client . for 2019 and 2018 , revenues from charter were $ 195 million and $ 179 million , respectively , representing approximately 20 % of our total revenues for both years . our agreement with charter runs through december 31 , 2021 , with an option to extend the agreement for an additional one-year term . a copy of the charter agreements and related amendments , with confidential information redacted , are included in the exhibits to our periodic filings with the sec . stock-based compensation expense stock-based compensation expense is included in the following ( in thousands ) : replace_table_token_6_th see notes 2 and 13 to our financial statements for additional discussion of our stock-based compensation expense . 25 amortization of acquired intangible assets amortization of acquired intangible assets is included in the following ( in thousands ) : replace_table_token_7_th the increases in amortization of acquired intangible assets between years are due to the amortization of the intangible assets acquired with the business ink and forte acquisitions in 2018 , discussed above , thus 2019 having the full year impact . see note 4 to our financial statements for additional discussion of our acquired intangible assets and related amortization . story_separator_special_tag cost of software and services ( exclusive of depreciation ) . the cost of software and services revenues consists principally of the following : ( i ) professional services organization ; ( ii ) various product support organizations ( e.g . , delivery , etc . ) ; ( iii ) facilities and infrastructure costs related to these organizations ; and ( iv ) third-party software costs and or royalties related to certain software products . the costs related to new solution development ( including significant enhancements to existing solutions and services ) are included in r & d expense . the cost of software and services for 2019 was $ 31.7 million , a 9 % decrease when compared to $ 34.9 million for 2018. this decrease is reflective of the lower software and services revenues and as a result , personnel and the related costs previously allocated to professional services projects have been reassigned to other areas of the business . total cost of software and services as a percentage of our software and services revenues for 2019 , 2018 , and 2017 were 60.6 % , 60.0 % , and 62.0 % , respectively . variability in quarterly revenues and operating results are inherent characteristics of companies that sell software licenses and perform professional services . our quarterly revenues for software licenses and professional services may fluctuate , depending on various factors , including the timing of executed contracts and revenue recognition , and the delivery of contracted solutions . however , the costs associated with software and professional services revenues are not subject to the same degree of variability ( e.g . , these costs are generally fixed in nature within a relatively short period of time ) , and thus , fluctuations in our cost of software and services as a percentage of our software and services revenues will likely occur between periods . cost of maintenance ( exclusive of depreciation ) . the cost of maintenance consists principally of the following : ( i ) client support organizations ( e.g . , our client support call center , account management , etc . ) ; ( ii ) various product support organizations ( e.g . , product maintenance , product management , etc . ) ; ( iii ) facilities and infrastructure costs related to these organizations ; and ( iv ) amortization of acquired intangibles . the cost of maintenance for 2019 decreased 5 % to $ 21.0 million , from $ 22.1 million for 2018 , with the decrease primarily due to lower amortization expense for certain acquired intangible assets . total cost of maintenance as a percentage of our maintenance revenues for 2019 , 2018 , and 2017 were 43.5 % , 43.8 % , and 53.9 % , respectively . 29 r & d expense ( exclusive of depreciation ) . r & d expense for 2019 was $ 128.0 million , a 3 % increase when compared to $ 124.0 million for 2018 , with the increase mainly attributed to the r & d costs associated with the acquired forte business . our r & d efforts are focused on the continued evolution of our solutions that enable global service providers worldwide to provide a more personalized customer experience while introducing new digital products and services . this includes the continued investment in our cloud-based solutions . as a percentage of total revenues , r & d expense for 2019 , 2018 , and 2017 was 12.8 % , 14.2 % , and 14.3 % , respectively ( with the percentage decrease in 2019 reflective of a full year of transaction fees of $ 69.1 million ) . we anticipate the level of r & d investment in the near-term to be relatively consistent with 2019. selling , general and administrative expense ( “ sg & a ” ) ( exclusive of depreciation ) . sg & a expense for 2019 increased 13 % to $ 191.3 million , from $ 169.3 million for 2018. the increase in sg & a expense between 2019 and 2018 is primarily due to the sg & a costs related to the acquired forte business , and an increase in employee-related costs . as a percentage of total revenues , sg & a expense for 2019 , 2018 , and 2017 was 19.2 % , 19.3 % and 19.5 % , respectively . depreciation expense . depreciation expense for all property and equipment is reflected separately in the aggregate and is not included in the cost of revenues or the other components of operating expenses . depreciation expense for 2019 was $ 21.4 million , a 17 % increase from $ 18.3 million for 2018. the increase can be primarily attributed to depreciation expense from the acquired business ink and forte assets and the full year impact of our increased level of capital expenditures during 2018. restructuring and reorganization charges . in 2019 and 2018 , we implemented various cost reduction and efficiency initiatives that resulted in restructuring and reorganization charges of $ 4.8 million and $ 8.7 million , respectively . these initiatives included : ( i ) reducing and reorganizing our workforce to further align it around our long-term growth initiatives ; ( ii ) the abandonment of space at some of our facility locations ; and ( iii ) the reversal of a liability related to a previous disposition of a business . see note 8 to our financial statements for additional information regarding these initiatives . operating income . operating income and operating income margin for 2019 was $ 126.1 million , or 12.7 % of total revenues , compared to $ 104.9 million , or 12.0 % of total revenues for 2018. the increase in operating income can be primarily attributed to the higher revenues generated in 2019. interest expense and amortization of original issue discount ( “ oid ” ) . our interest expense relates primarily to

cash dividends paid on common stock during 2019 and 2018 , the board approved dividend payments totaling $ 29.4 million and $ 28.1 million , respectively , of which $ 29.1 million and $ 28.0 million , respectively , had been paid through december 31 , 2019 and 2018 ( with the differences attributed to unvested incentive shares that are paid upon vesting ) . common stock warrants during the fourth quarter of 2019 , comcast exercised the remaining 0.4 million of their vested common stock warrants , which we net cash settled under the provisions of the warrant agreement for $ 12.9 million . see note 12 to our financial statements for further discussion of comcast 's exercise of their common stock warrants . long-term debt during the first quarter of 2018 , we refinanced our 2015 credit agreement and as a result , we repaid the outstanding principal balance of $ 120.0 million and borrowed $ 150.0 million under the 2018 credit agreement , resulting in a net increase of available cash of $ 30.0 million . as part of the refinancing , we paid $ 1.5 million of deferred financing costs . additionally , during 2019 and 2018 , we made principal repayments of $ 7.5 million and $ 5.6 million , respectively , on our long-term debt balance . see note 5 to our financial statements for additional discussion of our long-term debt . 34 contractual obligations and other commercial commitments and contingencies we have various contractual obligations that are recorded as liabilities in our consolidated balance sheets . other items , such as certain purchase commitments and other executory contracts , are not recognized as liabilities in our balance sheets but are required to be disclosed . the following table summarizes our significant contractual obligations and commercial commitments as of december 31 , 2019 , and the future periods in which such obligations are expected to be settled in cash ( in thousands ) .

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 dividends paid on common stock during 2019 and 2018 , the board approved dividend payments totaling $ 29.4 million and $ 28.1 million , respectively , of which $ 29.1 million and $ 28.0 million , respectively , had been paid through december 31 , 2019 and 2018 ( with the differences attributed to unvested incentive shares that are paid upon vesting ) . common stock warrants during the fourth quarter of 2019 , comcast exercised the remaining 0.4 million of their vested common stock warrants , which we net cash settled under the provisions of the warrant agreement for $ 12.9 million . see note 12 to our financial statements for further discussion of comcast 's exercise of their common stock warrants . long-term debt during the first quarter of 2018 , we refinanced our 2015 credit agreement and as a result , we repaid the outstanding principal balance of $ 120.0 million and borrowed $ 150.0 million under the 2018 credit agreement , resulting in a net increase of available cash of $ 30.0 million . as part of the refinancing , we paid $ 1.5 million of deferred financing costs . additionally , during 2019 and 2018 , we made principal repayments of $ 7.5 million and $ 5.6 million , respectively , on our long-term debt balance . see note 5 to our financial statements for additional discussion of our long-term debt . 34 contractual obligations and other commercial commitments and contingencies we have various contractual obligations that are recorded as liabilities in our consolidated balance sheets . other items , such as certain purchase commitments and other executory contracts , are not recognized as liabilities in our balance sheets but are required to be disclosed . the following table summarizes our significant contractual obligations and commercial commitments as of december 31 , 2019 , and the future periods in which such obligations are expected to be settled in cash ( in thousands ) . ``` Suspicious Activity Report : revenues . our revenues for 2019 were $ 996.8 million , a 14 % increase when compared to $ 875.1 million for 2018 , with the increase mainly attributed to the full year impact of the business ink and forte acquisitions , discussed above , which generated an additional $ 91 million of combined revenues in 2019 over that in 2018 , and the remaining increase due primarily to our cloud solutions and managed services arrangements . operating results . operating income for 2019 was $ 126.1 million , or a 12.7 % operating income margin percentage , compared to $ 104.9 million , or a 12.0 % operating income margin percentage for 2018 , with the increase in operating income primarily a result of the higher revenues generated in 2019. diluted earnings per share ( “ eps ” ) . diluted eps for 2019 was $ 2.55 compared to $ 2.01 for 2018 , reflective of the higher operating income for 2019. additionally , 2019 diluted eps was positively impacted by a lower effective income tax rate resulting primarily from an approximately $ 4 million net income tax benefit related to comcast 's exercise of 0.4 million vested common stock warrants . balance sheet and cash flows . as of december 31 , 2019 , we had cash , cash equivalents , and short-term investments of $ 182.7 million , as compared to $ 162.9 million as of december 31 , 2018. cash flows from operating activities for 2019 were $ 151.1 million , compared to $ 143.3 million for 2018. see the liquidity section below for further discussion of our cash flows . 24 significant client relationships comcast . comcast continues to be our largest client . for 2019 and 2018 , revenues from comcast were $ 229 million and $ 221 million , respectively , representing approximately 23 % and 25 % of our total revenues . on december 16 , 2019 , we entered into a new csg master subscriber management system agreement with comcast ( the “ agreement ” ) which supersedes all previous agreements with comcast . the key terms of the agreement are as follows : the agreement is effective january 1 , 2020 , and extends our contractual relationship with comcast through december 31 , 2024 for cloud and related solutions , and through december 31 , 2025 for print and mail services for residential customer accounts . in addition , the agreement provides comcast with the option to extend the cloud and related services for one additional year by exercising the renewal option no later than june 30 , 2023. we maintain the exclusive right to provide print and mail services to all comcast residential customer accounts through december 31 , 2025. the fees to be generated under the agreement will be based primarily on monthly charges for cloud and related services per comcast residential customer account , and various other ancillary services based on actual usage . certain of the per-unit fees include volume-based pricing tiers , and may be subject to annual price escalators . the agreement contains certain financial commitments associated with the number of comcast residential customer accounts that are to be processed on our systems , with such commitments decreasing over the life of the agreement . however , if comcast chooses to process fewer customer accounts on our systems than the committed amounts , the monthly fees to be paid by comcast will be based on the higher number of committed customer accounts for the applicable billing period . the agreement includes potential financial incentives related to comcast 's efficient use of our systems . the agreement contains certain rights and obligations of both parties , including the following key items : ( i ) the termination of the agreement under certain conditions ; ( ii ) various service level commitments ; and ( iii ) remedies and limitation on liabilities associated with specified breaches of contractual obligations . when compared to the previous agreement , we provided overall pricing adjustments of approximately 10 % to comcast , which in effect , will reduce the current fees we will receive from comcast . the anticipated revenue impact in both the near and long terms may vary depending on the type of service consumed by comcast . the impact from the agreement is only an estimate and actual results may vary depending upon a variety of factors . we undertake no duty to update or revise any forward-looking statements , whether as a result of new information , future events or otherwise . a copy of the agreement , with confidential information redacted , is filed as exhibit 10.27 to this form 10-k. charter . charter is our second largest client . for 2019 and 2018 , revenues from charter were $ 195 million and $ 179 million , respectively , representing approximately 20 % of our total revenues for both years . our agreement with charter runs through december 31 , 2021 , with an option to extend the agreement for an additional one-year term . a copy of the charter agreements and related amendments , with confidential information redacted , are included in the exhibits to our periodic filings with the sec . stock-based compensation expense stock-based compensation expense is included in the following ( in thousands ) : replace_table_token_6_th see notes 2 and 13 to our financial statements for additional discussion of our stock-based compensation expense . 25 amortization of acquired intangible assets amortization of acquired intangible assets is included in the following ( in thousands ) : replace_table_token_7_th the increases in amortization of acquired intangible assets between years are due to the amortization of the intangible assets acquired with the business ink and forte acquisitions in 2018 , discussed above , thus 2019 having the full year impact . see note 4 to our financial statements for additional discussion of our acquired intangible assets and related amortization . story_separator_special_tag cost of software and services ( exclusive of depreciation ) . the cost of software and services revenues consists principally of the following : ( i ) professional services organization ; ( ii ) various product support organizations ( e.g . , delivery , etc . ) ; ( iii ) facilities and infrastructure costs related to these organizations ; and ( iv ) third-party software costs and or royalties related to certain software products . the costs related to new solution development ( including significant enhancements to existing solutions and services ) are included in r & d expense . the cost of software and services for 2019 was $ 31.7 million , a 9 % decrease when compared to $ 34.9 million for 2018. this decrease is reflective of the lower software and services revenues and as a result , personnel and the related costs previously allocated to professional services projects have been reassigned to other areas of the business . total cost of software and services as a percentage of our software and services revenues for 2019 , 2018 , and 2017 were 60.6 % , 60.0 % , and 62.0 % , respectively . variability in quarterly revenues and operating results are inherent characteristics of companies that sell software licenses and perform professional services . our quarterly revenues for software licenses and professional services may fluctuate , depending on various factors , including the timing of executed contracts and revenue recognition , and the delivery of contracted solutions . however , the costs associated with software and professional services revenues are not subject to the same degree of variability ( e.g . , these costs are generally fixed in nature within a relatively short period of time ) , and thus , fluctuations in our cost of software and services as a percentage of our software and services revenues will likely occur between periods . cost of maintenance ( exclusive of depreciation ) . the cost of maintenance consists principally of the following : ( i ) client support organizations ( e.g . , our client support call center , account management , etc . ) ; ( ii ) various product support organizations ( e.g . , product maintenance , product management , etc . ) ; ( iii ) facilities and infrastructure costs related to these organizations ; and ( iv ) amortization of acquired intangibles . the cost of maintenance for 2019 decreased 5 % to $ 21.0 million , from $ 22.1 million for 2018 , with the decrease primarily due to lower amortization expense for certain acquired intangible assets . total cost of maintenance as a percentage of our maintenance revenues for 2019 , 2018 , and 2017 were 43.5 % , 43.8 % , and 53.9 % , respectively . 29 r & d expense ( exclusive of depreciation ) . r & d expense for 2019 was $ 128.0 million , a 3 % increase when compared to $ 124.0 million for 2018 , with the increase mainly attributed to the r & d costs associated with the acquired forte business . our r & d efforts are focused on the continued evolution of our solutions that enable global service providers worldwide to provide a more personalized customer experience while introducing new digital products and services . this includes the continued investment in our cloud-based solutions . as a percentage of total revenues , r & d expense for 2019 , 2018 , and 2017 was 12.8 % , 14.2 % , and 14.3 % , respectively ( with the percentage decrease in 2019 reflective of a full year of transaction fees of $ 69.1 million ) . we anticipate the level of r & d investment in the near-term to be relatively consistent with 2019. selling , general and administrative expense ( “ sg & a ” ) ( exclusive of depreciation ) . sg & a expense for 2019 increased 13 % to $ 191.3 million , from $ 169.3 million for 2018. the increase in sg & a expense between 2019 and 2018 is primarily due to the sg & a costs related to the acquired forte business , and an increase in employee-related costs . as a percentage of total revenues , sg & a expense for 2019 , 2018 , and 2017 was 19.2 % , 19.3 % and 19.5 % , respectively . depreciation expense . depreciation expense for all property and equipment is reflected separately in the aggregate and is not included in the cost of revenues or the other components of operating expenses . depreciation expense for 2019 was $ 21.4 million , a 17 % increase from $ 18.3 million for 2018. the increase can be primarily attributed to depreciation expense from the acquired business ink and forte assets and the full year impact of our increased level of capital expenditures during 2018. restructuring and reorganization charges . in 2019 and 2018 , we implemented various cost reduction and efficiency initiatives that resulted in restructuring and reorganization charges of $ 4.8 million and $ 8.7 million , respectively . these initiatives included : ( i ) reducing and reorganizing our workforce to further align it around our long-term growth initiatives ; ( ii ) the abandonment of space at some of our facility locations ; and ( iii ) the reversal of a liability related to a previous disposition of a business . see note 8 to our financial statements for additional information regarding these initiatives . operating income . operating income and operating income margin for 2019 was $ 126.1 million , or 12.7 % of total revenues , compared to $ 104.9 million , or 12.0 % of total revenues for 2018. the increase in operating income can be primarily attributed to the higher revenues generated in 2019. interest expense and amortization of original issue discount ( “ oid ” ) . our interest expense relates primarily to

million , and a $ 0.2 million net working capital adjustment . goodwill of $ 0.2 million , none of which is expected to be tax deductible , and other intangible assets of $ 0.9 million were recorded as a result of this acquisition . the ees acquisition has been recorded in the energy operating segment . the impact of this acquisition was not material to our consolidated balance sheets and results of operations . on july 22 , 2013 , we acquired all of the outstanding stock of utility support systems , inc. ( `` uss `` ) , headquartered in douglasville , georgia . uss provides engineering and related services primarily supporting the power/utility market . the purchase price of approximately $ 5.0 million consisted of : ( i ) cash of $ 2.5 million payable at closing , ( ii ) a second cash payment of $ 1.8 million payable on the one-year anniversary of the closing date subject to withholding for various contractual issues , and ( iii ) 34 thousand shares of our common stock valued at $ 0.3 million on the closing date . the selling shareholders are also entitled to contingent cash consideration through an earn-out provision based on nsr performance of the acquired firm over the twelve month period following closing . we estimated the fair value of the contingent earn-out liability to be $ 0.5 million based on the projections and probabilities of reaching the performance goals through july 2014. goodwill of $ 2.2 million , none of which is expected to be tax deductible , and other intangible assets of $ 2.1 million were recorded as a result of this acquisition . the uss acquisition has been recorded in the energy operating segment . the impact of this acquisition was not material to our consolidated balance sheets and results of operations . fiscal year 2013 acquisitions on january 18 , 2013 , we acquired the assets of the ge air emissions testing ( `` ge-air `` ) business . the purchase price consisted of $ 3.2 million in cash . in addition , a final working capital adjustment of $ 0.8 million was received . goodwill of $ 0.8 million , all of which is expected to be tax deductible , and other intangible assets of $ 1.8 million were recorded as a result of this acquisition . the ge-air acquisition has been recorded in the environmental operating segment . the impact of this acquisition was not material to our consolidated balance sheets and results of operations . 21 on december 31 , 2012 , we acquired all of the outstanding stock of heschong mahone group , inc. ( `` hmg `` ) , headquartered in sacramento , california . hmg provides professional consulting services in the field of energy efficiency . the purchase price consisted of : ( i ) $ 3.5 million in cash , ( ii ) a one year $ 1.5 million subordinated promissory note with an interest rate of 3.0 % per annum , ( iii ) 88 thousand shares of our common stock valued at $ 0.5 million on the closing date and , ( iv ) a net working capital adjustment of $ 0.3 million . the selling shareholders are also entitled to contingent cash consideration through an earn-out provision based on net service revenue performance of the acquired firm over the twelve month period following closing . we estimated the fair value of the contingent earn-out liability to be $ 0.5 million based on the projections and probabilities of reaching the performance goals through december 2013. the earnout goals were not achieved , and the liability was subsequently reversed in fiscal year 2014. goodwill of $ 2.7 million and other intangible assets of $ 2.6 million were recorded as a result of this acquisition . hmg was purchased under the election provision of internal revenue code 338 ( h ) ( 10 ) , and therefore the amortization of goodwill and intangible assets is expected to be deductible for tax purposes . the hmg acquisition has been recorded in the energy operating segment . the impact of this acquisition was not material to our consolidated balance sheets and results of operations . fiscal year 2012 acquisition on september 3 , 2011 , we acquired all of the outstanding stock of privately-held the payne firm , inc. ( `` payne `` ) through a combination of cash and stock . headquartered in cincinnati , ohio , payne is an environmental consulting firm that specializes in providing a range of services to the legal and financial communities and industries ranging from manufacturing and health care to higher education . payne has been integrated into the company 's business processes and systems as a part of our environmental operating segment . the purchase price of approximately $ 4.8 million consisted of : ( i ) cash of $ 3.5 million payable at closing , ( ii ) 61 thousand shares of our common stock valued at $ 0.3 million on the closing date , ( iii ) future earnout consideration with an estimated fair value of $ 0.9 million , and ( iv ) a net working capital adjustment of $ 0.2 million . goodwill of $ 3.9 million and other intangible assets of $ 0.8 million were recorded as a result of this acquisition . the goodwill is the result of expected synergies from combining the operations of the acquired business with our operations and intangible assets that do not qualify for separate recognition , such as an assembled workforce . the impact of this acquisition was not material to our consolidated balance sheets and results of operations . operating segments we manage our business under the following three operating segments : energy : the energy operating segment provides services to a range of clients including energy companies , utilities , other commercial entities , and state and federal government entities . story_separator_special_tag allowance for doubtful accounts —an allowance for doubtful accounts is maintained for estimated losses resulting from the failure of our clients to make required payments . the allowance for doubtful accounts has been determined through reviews of specific amounts deemed to be uncollectible and estimated write-offs as a result of clients who have filed for bankruptcy protection plus an allowance for other amounts for which some loss is determined to be probable based on current circumstances . if the financial condition of clients or our assessment as to collectability were to change , adjustments to the allowances may be required . income taxes —we are required to estimate the provision for income taxes , including the current tax expense together with assessing temporary differences resulting from differing treatments of assets and liabilities for tax and financial accounting purposes . these differences between the financial statement and tax bases of assets and liabilities , together with net operating loss ( `` nol `` ) carryforwards and tax credits are recorded as deferred tax assets or liabilities on the consolidated balance sheets . an assessment is required to be made of the likelihood that the deferred tax assets will be recovered from future taxable income . to the extent that we determine that it is more likely than not that the deferred asset will not be utilized , a valuation allowance is established . taxable income in future periods significantly above or below that projected will cause adjustments to the valuation allowance that could materially decrease or increase future income tax expense . 25 during the fourth quarter of fiscal 2013 , we concluded it was more likely than not that our deferred tax assets will be realized and reversed the valuation allowance in the amount of $ 25.6 million . we recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position . the tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50 % likelihood of being realized upon ultimate settlement . accounting literature also provides guidance on derecognition of income tax assets and liabilities , classification of current and deferred income tax assets and liabilities , accounting for interest and penalties associated with tax positions , and income tax disclosures . judgment is required in assessing the future tax consequences of events that have been recognized in our financial statements or tax returns . variations in the actual outcome of these future tax consequences could materially impact our financial statements . goodwill and other intangible assets —in accordance with asc topic 350 , intangibles—goodwill and other , goodwill and intangible assets deemed to have indefinite lives are not amortized but are subject to impairment testing at least annually , or more frequently if events or changes in circumstances indicate that goodwill might be impaired . we perform impairment tests for our reporting units with recorded goodwill utilizing valuation methods , including the discounted cash flow method , the guideline company approach , and the guideline transaction approach , as the best evidence of fair value . the valuation methodology used to estimate the fair value of the total company and our reporting units requires inputs and assumptions ( i.e . revenue growth , operating profit margins and discount rates ) that reflect current market conditions . the estimated fair value of each reporting unit is compared to the carrying amount of the reporting unit , including goodwill . if the carrying value of the reporting unit exceeds its fair value , the goodwill of the reporting unit is potentially impaired , and we then determine the implied fair value of goodwill and compare it to the carrying value of goodwill to determine if impairment exists . we performed our most recent annual goodwill impairment review as of april 25 , 2014 , and determined that the fair value of each of our reporting units with goodwill substantially exceeded its carrying value , and therefore no further analysis was required . as of june 30 , 2014 , we had $ 31.7 million of goodwill . we do not believe there were any events or changes in circumstances since our april 2014 annual assessment that would indicate the fair value of goodwill was more likely than not reduced to below its carrying value . in making this assessment we relied on a number of factors including operating results , business plans , anticipated future cash flows , transactions and market data . other intangible assets are included in other assets on the consolidated balance sheets and consist primarily of purchased customer relationships and other intangible assets acquired in acquisitions . the costs of intangible assets with determinable useful lives are amortized on a basis approximating the economic value derived from those assets . we review the economic lives of our intangible assets annually . management judgment and assumptions are required in performing the impairment tests for all reporting units with goodwill and in measuring the fair value of goodwill , indefinite-lived intangibles and long-lived assets . while we believe our judgments and assumptions are reasonable , different assumptions could change the estimated fair values or the amount of recognized impairment losses . insurance matters , litigation and contingencies —in the normal course of business , we are subject to certain contractual guarantees and litigation . generally , such guarantees relate to project schedules and performance . most of the litigation involves us as a defendant in contractual disputes , professional liability , personal injury and other similar lawsuits . we maintain insurance coverage for various aspects of our business and operations , however we have elected to retain a portion of losses that may occur through the use of substantial deductibles , exclusions and retentions under our insurance programs

liquidity and capital resources overview we primarily rely on cash from operations and financing activities , including borrowings under our revolving credit facility , to fund our operations . our liquidity is assessed in terms of our overall ability to generate cash to fund our operating and investing activities and to service debt . we believe that our available cash , cash flows from operations and available borrowing under our revolving credit facility , discussed under `` revolving credit facility '' below , will be sufficient to fund our operations for at least the next twelve months . the following table provides summarized information with respect to our cash balances and cash flows as of and for the fiscal years ended june 30 , 2014 , 2013 and 2012 ( in thousands ) : replace_table_token_16_th fiscal year 2014 compared to fiscal year 2013 as of june 30 , 2014 , cash and cash equivalents increased by $ 9.5 million , or 52.2 % , to $ 27.6 million compared to $ 18.1 million as of june 30 , 2013 . the increase was primarily due to net cash provided by operating activities , less payments made for the acquisitions of businesses , and an additional tax benefit received from stock-based awards which were partially offset by cash payments made on long-term debt and capital lease obligations and payments made for property and equipment . net cash provided by operating activities increased by $ 7.0 million , or 48.4 % , to $ 21.4 million for the fiscal year ended june 30 , 2014 , compared to $ 14.4 million of cash provided in the prior year .

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 we primarily rely on cash from operations and financing activities , including borrowings under our revolving credit facility , to fund our operations . our liquidity is assessed in terms of our overall ability to generate cash to fund our operating and investing activities and to service debt . we believe that our available cash , cash flows from operations and available borrowing under our revolving credit facility , discussed under `` revolving credit facility '' below , will be sufficient to fund our operations for at least the next twelve months . the following table provides summarized information with respect to our cash balances and cash flows as of and for the fiscal years ended june 30 , 2014 , 2013 and 2012 ( in thousands ) : replace_table_token_16_th fiscal year 2014 compared to fiscal year 2013 as of june 30 , 2014 , cash and cash equivalents increased by $ 9.5 million , or 52.2 % , to $ 27.6 million compared to $ 18.1 million as of june 30 , 2013 . the increase was primarily due to net cash provided by operating activities , less payments made for the acquisitions of businesses , and an additional tax benefit received from stock-based awards which were partially offset by cash payments made on long-term debt and capital lease obligations and payments made for property and equipment . net cash provided by operating activities increased by $ 7.0 million , or 48.4 % , to $ 21.4 million for the fiscal year ended june 30 , 2014 , compared to $ 14.4 million of cash provided in the prior year . ``` Suspicious Activity Report : million , and a $ 0.2 million net working capital adjustment . goodwill of $ 0.2 million , none of which is expected to be tax deductible , and other intangible assets of $ 0.9 million were recorded as a result of this acquisition . the ees acquisition has been recorded in the energy operating segment . the impact of this acquisition was not material to our consolidated balance sheets and results of operations . on july 22 , 2013 , we acquired all of the outstanding stock of utility support systems , inc. ( `` uss `` ) , headquartered in douglasville , georgia . uss provides engineering and related services primarily supporting the power/utility market . the purchase price of approximately $ 5.0 million consisted of : ( i ) cash of $ 2.5 million payable at closing , ( ii ) a second cash payment of $ 1.8 million payable on the one-year anniversary of the closing date subject to withholding for various contractual issues , and ( iii ) 34 thousand shares of our common stock valued at $ 0.3 million on the closing date . the selling shareholders are also entitled to contingent cash consideration through an earn-out provision based on nsr performance of the acquired firm over the twelve month period following closing . we estimated the fair value of the contingent earn-out liability to be $ 0.5 million based on the projections and probabilities of reaching the performance goals through july 2014. goodwill of $ 2.2 million , none of which is expected to be tax deductible , and other intangible assets of $ 2.1 million were recorded as a result of this acquisition . the uss acquisition has been recorded in the energy operating segment . the impact of this acquisition was not material to our consolidated balance sheets and results of operations . fiscal year 2013 acquisitions on january 18 , 2013 , we acquired the assets of the ge air emissions testing ( `` ge-air `` ) business . the purchase price consisted of $ 3.2 million in cash . in addition , a final working capital adjustment of $ 0.8 million was received . goodwill of $ 0.8 million , all of which is expected to be tax deductible , and other intangible assets of $ 1.8 million were recorded as a result of this acquisition . the ge-air acquisition has been recorded in the environmental operating segment . the impact of this acquisition was not material to our consolidated balance sheets and results of operations . 21 on december 31 , 2012 , we acquired all of the outstanding stock of heschong mahone group , inc. ( `` hmg `` ) , headquartered in sacramento , california . hmg provides professional consulting services in the field of energy efficiency . the purchase price consisted of : ( i ) $ 3.5 million in cash , ( ii ) a one year $ 1.5 million subordinated promissory note with an interest rate of 3.0 % per annum , ( iii ) 88 thousand shares of our common stock valued at $ 0.5 million on the closing date and , ( iv ) a net working capital adjustment of $ 0.3 million . the selling shareholders are also entitled to contingent cash consideration through an earn-out provision based on net service revenue performance of the acquired firm over the twelve month period following closing . we estimated the fair value of the contingent earn-out liability to be $ 0.5 million based on the projections and probabilities of reaching the performance goals through december 2013. the earnout goals were not achieved , and the liability was subsequently reversed in fiscal year 2014. goodwill of $ 2.7 million and other intangible assets of $ 2.6 million were recorded as a result of this acquisition . hmg was purchased under the election provision of internal revenue code 338 ( h ) ( 10 ) , and therefore the amortization of goodwill and intangible assets is expected to be deductible for tax purposes . the hmg acquisition has been recorded in the energy operating segment . the impact of this acquisition was not material to our consolidated balance sheets and results of operations . fiscal year 2012 acquisition on september 3 , 2011 , we acquired all of the outstanding stock of privately-held the payne firm , inc. ( `` payne `` ) through a combination of cash and stock . headquartered in cincinnati , ohio , payne is an environmental consulting firm that specializes in providing a range of services to the legal and financial communities and industries ranging from manufacturing and health care to higher education . payne has been integrated into the company 's business processes and systems as a part of our environmental operating segment . the purchase price of approximately $ 4.8 million consisted of : ( i ) cash of $ 3.5 million payable at closing , ( ii ) 61 thousand shares of our common stock valued at $ 0.3 million on the closing date , ( iii ) future earnout consideration with an estimated fair value of $ 0.9 million , and ( iv ) a net working capital adjustment of $ 0.2 million . goodwill of $ 3.9 million and other intangible assets of $ 0.8 million were recorded as a result of this acquisition . the goodwill is the result of expected synergies from combining the operations of the acquired business with our operations and intangible assets that do not qualify for separate recognition , such as an assembled workforce . the impact of this acquisition was not material to our consolidated balance sheets and results of operations . operating segments we manage our business under the following three operating segments : energy : the energy operating segment provides services to a range of clients including energy companies , utilities , other commercial entities , and state and federal government entities . story_separator_special_tag allowance for doubtful accounts —an allowance for doubtful accounts is maintained for estimated losses resulting from the failure of our clients to make required payments . the allowance for doubtful accounts has been determined through reviews of specific amounts deemed to be uncollectible and estimated write-offs as a result of clients who have filed for bankruptcy protection plus an allowance for other amounts for which some loss is determined to be probable based on current circumstances . if the financial condition of clients or our assessment as to collectability were to change , adjustments to the allowances may be required . income taxes —we are required to estimate the provision for income taxes , including the current tax expense together with assessing temporary differences resulting from differing treatments of assets and liabilities for tax and financial accounting purposes . these differences between the financial statement and tax bases of assets and liabilities , together with net operating loss ( `` nol `` ) carryforwards and tax credits are recorded as deferred tax assets or liabilities on the consolidated balance sheets . an assessment is required to be made of the likelihood that the deferred tax assets will be recovered from future taxable income . to the extent that we determine that it is more likely than not that the deferred asset will not be utilized , a valuation allowance is established . taxable income in future periods significantly above or below that projected will cause adjustments to the valuation allowance that could materially decrease or increase future income tax expense . 25 during the fourth quarter of fiscal 2013 , we concluded it was more likely than not that our deferred tax assets will be realized and reversed the valuation allowance in the amount of $ 25.6 million . we recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position . the tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50 % likelihood of being realized upon ultimate settlement . accounting literature also provides guidance on derecognition of income tax assets and liabilities , classification of current and deferred income tax assets and liabilities , accounting for interest and penalties associated with tax positions , and income tax disclosures . judgment is required in assessing the future tax consequences of events that have been recognized in our financial statements or tax returns . variations in the actual outcome of these future tax consequences could materially impact our financial statements . goodwill and other intangible assets —in accordance with asc topic 350 , intangibles—goodwill and other , goodwill and intangible assets deemed to have indefinite lives are not amortized but are subject to impairment testing at least annually , or more frequently if events or changes in circumstances indicate that goodwill might be impaired . we perform impairment tests for our reporting units with recorded goodwill utilizing valuation methods , including the discounted cash flow method , the guideline company approach , and the guideline transaction approach , as the best evidence of fair value . the valuation methodology used to estimate the fair value of the total company and our reporting units requires inputs and assumptions ( i.e . revenue growth , operating profit margins and discount rates ) that reflect current market conditions . the estimated fair value of each reporting unit is compared to the carrying amount of the reporting unit , including goodwill . if the carrying value of the reporting unit exceeds its fair value , the goodwill of the reporting unit is potentially impaired , and we then determine the implied fair value of goodwill and compare it to the carrying value of goodwill to determine if impairment exists . we performed our most recent annual goodwill impairment review as of april 25 , 2014 , and determined that the fair value of each of our reporting units with goodwill substantially exceeded its carrying value , and therefore no further analysis was required . as of june 30 , 2014 , we had $ 31.7 million of goodwill . we do not believe there were any events or changes in circumstances since our april 2014 annual assessment that would indicate the fair value of goodwill was more likely than not reduced to below its carrying value . in making this assessment we relied on a number of factors including operating results , business plans , anticipated future cash flows , transactions and market data . other intangible assets are included in other assets on the consolidated balance sheets and consist primarily of purchased customer relationships and other intangible assets acquired in acquisitions . the costs of intangible assets with determinable useful lives are amortized on a basis approximating the economic value derived from those assets . we review the economic lives of our intangible assets annually . management judgment and assumptions are required in performing the impairment tests for all reporting units with goodwill and in measuring the fair value of goodwill , indefinite-lived intangibles and long-lived assets . while we believe our judgments and assumptions are reasonable , different assumptions could change the estimated fair values or the amount of recognized impairment losses . insurance matters , litigation and contingencies —in the normal course of business , we are subject to certain contractual guarantees and litigation . generally , such guarantees relate to project schedules and performance . most of the litigation involves us as a defendant in contractual disputes , professional liability , personal injury and other similar lawsuits . we maintain insurance coverage for various aspects of our business and operations , however we have elected to retain a portion of losses that may occur through the use of substantial deductibles , exclusions and retentions under our insurance programs

since sales of almonds comprise a significant percentage of our total net sales , we anticipate that lower selling prices will continue to result in a significant reduction in net sales in future comparisons until the impact of lower retail prices ultimately drives increased sales volume for almonds . we will continue to focus on seeking profitable business opportunities to further utilize our additional production capacity at our elgin site . we expect to maintain our recent level of promotional and advertising activity for our orchard valley harvest and fisher brands . we continue to see domestic sales and volume growth in our orchard valley harvest brand and expect to continue to focus on this portion of our branded business . we will continue to face the ongoing challenges specific to our business such as food safety and regulatory issues and the maintenance and growth of our customer base . see the information referenced in part i , item 1a — “risk factors” of this report for additional information about our risks , challenges and uncertainties . 22 annual highlights our net sales for fiscal 2017 decreased by $ 105.4 million , or 11.1 % , to $ 846.6 million compared to fiscal 2016. gross profit increased by $ 4.5 million , and our gross profit margin , as a percentage of net sales , increased to 16.8 % in fiscal 2017 from 14.4 % in fiscal 2016. total operating expenses for fiscal 2017 decreased by $ 2.6 million ; however , our operating expenses , as a percentage of net sales , were 9.9 % compared to 9.0 % of net sales in fiscal 2016. diluted earnings per share increased approximately 18.3 % compared to last fiscal year . our strong financial position allowed us to pay two special cash dividends with a combined total of $ 56.5 million . the total value of inventories on hand at the end of fiscal 2017 increased by $ 25.8 million , or 16.5 % , in comparison to the total value of inventories on hand at the end of fiscal 2016. we have seen a significant increase in acquisition cost for pecans in the 2016 crop year ( which falls into our 2017 fiscal year ) , as well as an increase in cashew acquisition costs . conversely , we have seen acquisition costs for domestic tree nuts such as almonds decrease in the 2016 crop year . while we completed our procurement of the current year crop of inshell walnuts during the second quarter of fiscal 2017 , the total payments to our walnut growers were not determined until the third quarter of fiscal 2017 , which is typical . the final prices paid to the walnut growers were based upon prevailing market prices and other factors , such as crop size and export demand . at june 29 , 2017 there are no amounts due to walnut growers . results of operations the following table sets forth the percentage relationship of certain items to net sales for the periods indicated and the percentage increase or decrease of such items from fiscal 2017 to fiscal 2016 and from fiscal 2016 to fiscal 2015. replace_table_token_3_th fiscal 2017 compared to fiscal 2016 net sales our net sales decreased 11.1 % to $ 846.6 million for fiscal 2017 from $ 952.1 million for fiscal 2016. sales volume ( measured as pounds sold to customers ) decreased by 3.7 % for fiscal 2017 in comparison to sales volume for fiscal 2016. the decrease in net sales was primarily due to a 7.6 % decrease in the weighted average sales price per pound , which primarily occurred as a result of lower selling prices for almonds and walnuts . the following summarizes sales by product type as a percentage of total gross sales . the information is based upon gross sales , rather than net sales , because certain adjustments from gross sales to net sales , such as promotional discounts , are not allocable to product type . replace_table_token_4_th 23 the following table shows a comparison of net sales by distribution channel ( dollars in thousands ) : replace_table_token_5_th ( 1 ) sales of branded products were approximately 38 % and 36 % of total consumer channel sales during fiscal 2017 and 2016 , respectively . fisher branded products were approximately 85 % and 87 % of branded sales during fiscal 2017 and 2016 respectively , with branded produce products accounting for the remaining branded product sales . ( 2 ) fiscal 2016 information has been revised to conform with the current year presentation . in fiscal 2017 , we consolidated our bulk export business into our commercial ingredients channel and the remaining portion of our export business into our other sales channels . net sales in the consumer distribution channel decreased by 6.4 % in dollars , however , sales volume increased by 1.1 % in fiscal 2017 compared to fiscal 2016. the decrease in net sales was primarily due to a 7.4 % decrease in the weighted average sales price per pound , which primarily occurred as a result of lower selling prices for almonds and walnuts . iri market data from june 2017 indicates that fisher recipe nuts continue to be the branded market share leader in the overall recipe nut category . fisher recipe nut sales volume increased 9.8 % from fiscal 2016 , primarily due to distribution gains with new customers , the introduction of larger package sizes for walnuts , and increased promotional activity . partially offsetting the sales volume increase noted above , sales volume for fisher snack nuts decreased 4.3 % , primarily as a result of decreased promotional activity . an increase in the combined sales volume of 23.1 % of orchard valley harvest and sunshine country produce products , due to increased merchandising activity , also contributed to the sales volume increase . story_separator_special_tag mortgage facility we are subject to interest rate resets for each of tranche a and tranche b. specifically , on march 1 , 2018 ( the “tranche a reset date” and the “tranche b reset date” ) and every two years thereafter , the mortgage lender may reset the interest rates for each of tranche a and tranche b , respectively , in its sole and absolute discretion . if the reset interest rate for tranche a is unacceptable to us and we ( i ) do not have sufficient funds to repay amounts due with respect to tranche a on the tranche a reset date , or ( ii ) are unable to refinance amounts due with respect to tranche a on the tranche a reset date on terms more favorable than the reset interest rates , then , depending on the extent of the changes in the reset interest rates , our interest expense would increase . 29 the mortgage facility matures on march 1 , 2023. tranche a under the mortgage facility accrues interest at a fixed interest rate of 7.63 % per annum , payable monthly . as mentioned above , such interest rate may be reset by the mortgage lender on the tranche a reset date . monthly principal payments in the amount of $ 0.2 million commenced on june 1 , 2008. tranche b under the mortgage facility accrues interest , as reset on march 1 , 2016 , at a floating rate of the greater of ( i ) one month libor plus 3.50 % per annum or ( ii ) 4.25 % , payable monthly ( the “floating rate” ) . the margin on such floating rate may be reset by the mortgage lender on each tranche b reset date ; provided , however , that the mortgage lender may also change the underlying index on each tranche b reset date occurring on or after march 1 , 2018. monthly principal payments in the amount of $ 0.1 million commenced on june 1 , 2008. we do not currently anticipate that any change in the floating rate or the underlying index will have a material adverse effect upon our business , financial condition or results of operations . the terms of the mortgage facility contain covenants that require us to maintain a specified net worth of $ 110.0 million and maintain the encumbered properties . the mortgage lender is entitled to require immediate repayment of our obligations under the mortgage facility in the event we default in the payments required under the mortgage facility , non-compliance with the covenants or upon the occurrence of certain other defaults by us under the mortgage facility . as of june 29 , 2017 , we were in compliance with all covenants under the mortgage facility . selma property in september 2006 , we sold our selma , texas properties ( the “selma properties” ) to two related party partnerships for $ 14.3 million and are leasing them back . the selling price was determined by an independent appraiser to be the fair market value which also approximated our carrying value . the lease for the selma properties has a ten-year term at a fair market value rent with three five-year renewal options . also , we currently have an option to purchase the selma properties from the partnerships at 95 % ( 100 % in certain circumstances ) of the then fair market value , but not less than the original $ 14.3 million purchase price . the provisions of the arrangement are not eligible for sale-leaseback accounting and the $ 14.3 million was recorded as a debt obligation . no gain or loss was recorded on the selma properties transaction . as of june 29 , 2017 , $ 11.1 million of the debt obligation was outstanding . in september 2015 , we exercised two five-year renewal options which extended the selma lease to september 18 , 2026 ( unless we purchase it before such date ) and reduced the base monthly lease amount we pay on the selma properties during the second quarter of fiscal 2017 . 30 off-balance sheet arrangements as of june 29 , 2017 , we were not involved in any off-balance sheet arrangements , as defined in item 303 ( a ) ( 4 ) ( ii ) of regulation s-k promulgated by the sec . contractual cash obligations at june 29 , 2017 , we had the following contractual cash obligations for long-term debt ( including scheduled interest payments ) , operating leases , the credit facility , purchase obligations , retirement plans and other long-term liabilities ( amounts in this subsection in thousands ) : replace_table_token_9_th ( 1 ) interest obligations on floating rate debt instruments are calculated using interest rates in effect at june 29 , 2017. see note 5 “long-term debt” of the notes to consolidated financial statements for further detail on the company 's long-term debt obligations . ( 2 ) the purchase obligations represent $ 177,842 of inventory purchase commitments ; however , these amounts exclude purchase commitments under walnut purchase agreements due to the uncertainty of pricing and quantity . ( 3 ) represents projected retirement obligations . see note 11-“employee benefit plans” and note 12-“retirement plan” of the notes to consolidated financial statements for further details . 31 critical accounting policies and estimates our financial statements are prepared in accordance with accounting principles generally accepted in the united states of america . the accounting policies as disclosed in the notes to consolidated financial statements are applied in the preparation of our financial statements and accounting for the underlying transactions and balances . the policies discussed below are considered by our management to be critical for an understanding of our financial statements because the application of these policies places the most significant demands on management 's judgment , with financial reporting results relying on estimation regarding the effect of matters that are

liquidity and capital resources general the primary uses of cash are to fund our current operations , fulfill contractual obligations , pursue our strategic plan and repay indebtedness . also , various uncertainties could result in additional uses of cash . the primary sources of cash are results of operations and availability under our credit agreement , dated february 7 , 2008 and subsequently amended most recently in july 2017 ( as amended , the “credit facility” ) , that provides a revolving loan commitment and letter of credit subfacility . we anticipate that expected net cash flow generated from operations and amounts available pursuant to the credit facility will be sufficient to fund our operations for the next twelve months . our available credit under our credit facility has allowed us to consummate business acquisitions , devote more funds to promote our branded products ( especially our fisher and orchard valley harvest brands ) , reinvest in the company through capital expenditures , develop new products , pay a special cash dividend the past five years , and explore other growth strategies outlined in our strategic plan . cash flows from operating activities have historically been driven by net income but are also significantly influenced by inventory requirements , which can change based upon fluctuations in both quantities and market prices of the various nuts and nut products we buy and sell . current market trends in nut prices and crop estimates also impact nut procurement . the following table sets forth certain cash flow information for the last three fiscal years ( dollars in thousands ) : replace_table_token_8_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. ```liquidity and capital resources general the primary uses of cash are to fund our current operations , fulfill contractual obligations , pursue our strategic plan and repay indebtedness . also , various uncertainties could result in additional uses of cash . the primary sources of cash are results of operations and availability under our credit agreement , dated february 7 , 2008 and subsequently amended most recently in july 2017 ( as amended , the “credit facility” ) , that provides a revolving loan commitment and letter of credit subfacility . we anticipate that expected net cash flow generated from operations and amounts available pursuant to the credit facility will be sufficient to fund our operations for the next twelve months . our available credit under our credit facility has allowed us to consummate business acquisitions , devote more funds to promote our branded products ( especially our fisher and orchard valley harvest brands ) , reinvest in the company through capital expenditures , develop new products , pay a special cash dividend the past five years , and explore other growth strategies outlined in our strategic plan . cash flows from operating activities have historically been driven by net income but are also significantly influenced by inventory requirements , which can change based upon fluctuations in both quantities and market prices of the various nuts and nut products we buy and sell . current market trends in nut prices and crop estimates also impact nut procurement . the following table sets forth certain cash flow information for the last three fiscal years ( dollars in thousands ) : replace_table_token_8_th operating activities . ``` Suspicious Activity Report : since sales of almonds comprise a significant percentage of our total net sales , we anticipate that lower selling prices will continue to result in a significant reduction in net sales in future comparisons until the impact of lower retail prices ultimately drives increased sales volume for almonds . we will continue to focus on seeking profitable business opportunities to further utilize our additional production capacity at our elgin site . we expect to maintain our recent level of promotional and advertising activity for our orchard valley harvest and fisher brands . we continue to see domestic sales and volume growth in our orchard valley harvest brand and expect to continue to focus on this portion of our branded business . we will continue to face the ongoing challenges specific to our business such as food safety and regulatory issues and the maintenance and growth of our customer base . see the information referenced in part i , item 1a — “risk factors” of this report for additional information about our risks , challenges and uncertainties . 22 annual highlights our net sales for fiscal 2017 decreased by $ 105.4 million , or 11.1 % , to $ 846.6 million compared to fiscal 2016. gross profit increased by $ 4.5 million , and our gross profit margin , as a percentage of net sales , increased to 16.8 % in fiscal 2017 from 14.4 % in fiscal 2016. total operating expenses for fiscal 2017 decreased by $ 2.6 million ; however , our operating expenses , as a percentage of net sales , were 9.9 % compared to 9.0 % of net sales in fiscal 2016. diluted earnings per share increased approximately 18.3 % compared to last fiscal year . our strong financial position allowed us to pay two special cash dividends with a combined total of $ 56.5 million . the total value of inventories on hand at the end of fiscal 2017 increased by $ 25.8 million , or 16.5 % , in comparison to the total value of inventories on hand at the end of fiscal 2016. we have seen a significant increase in acquisition cost for pecans in the 2016 crop year ( which falls into our 2017 fiscal year ) , as well as an increase in cashew acquisition costs . conversely , we have seen acquisition costs for domestic tree nuts such as almonds decrease in the 2016 crop year . while we completed our procurement of the current year crop of inshell walnuts during the second quarter of fiscal 2017 , the total payments to our walnut growers were not determined until the third quarter of fiscal 2017 , which is typical . the final prices paid to the walnut growers were based upon prevailing market prices and other factors , such as crop size and export demand . at june 29 , 2017 there are no amounts due to walnut growers . results of operations the following table sets forth the percentage relationship of certain items to net sales for the periods indicated and the percentage increase or decrease of such items from fiscal 2017 to fiscal 2016 and from fiscal 2016 to fiscal 2015. replace_table_token_3_th fiscal 2017 compared to fiscal 2016 net sales our net sales decreased 11.1 % to $ 846.6 million for fiscal 2017 from $ 952.1 million for fiscal 2016. sales volume ( measured as pounds sold to customers ) decreased by 3.7 % for fiscal 2017 in comparison to sales volume for fiscal 2016. the decrease in net sales was primarily due to a 7.6 % decrease in the weighted average sales price per pound , which primarily occurred as a result of lower selling prices for almonds and walnuts . the following summarizes sales by product type as a percentage of total gross sales . the information is based upon gross sales , rather than net sales , because certain adjustments from gross sales to net sales , such as promotional discounts , are not allocable to product type . replace_table_token_4_th 23 the following table shows a comparison of net sales by distribution channel ( dollars in thousands ) : replace_table_token_5_th ( 1 ) sales of branded products were approximately 38 % and 36 % of total consumer channel sales during fiscal 2017 and 2016 , respectively . fisher branded products were approximately 85 % and 87 % of branded sales during fiscal 2017 and 2016 respectively , with branded produce products accounting for the remaining branded product sales . ( 2 ) fiscal 2016 information has been revised to conform with the current year presentation . in fiscal 2017 , we consolidated our bulk export business into our commercial ingredients channel and the remaining portion of our export business into our other sales channels . net sales in the consumer distribution channel decreased by 6.4 % in dollars , however , sales volume increased by 1.1 % in fiscal 2017 compared to fiscal 2016. the decrease in net sales was primarily due to a 7.4 % decrease in the weighted average sales price per pound , which primarily occurred as a result of lower selling prices for almonds and walnuts . iri market data from june 2017 indicates that fisher recipe nuts continue to be the branded market share leader in the overall recipe nut category . fisher recipe nut sales volume increased 9.8 % from fiscal 2016 , primarily due to distribution gains with new customers , the introduction of larger package sizes for walnuts , and increased promotional activity . partially offsetting the sales volume increase noted above , sales volume for fisher snack nuts decreased 4.3 % , primarily as a result of decreased promotional activity . an increase in the combined sales volume of 23.1 % of orchard valley harvest and sunshine country produce products , due to increased merchandising activity , also contributed to the sales volume increase . story_separator_special_tag mortgage facility we are subject to interest rate resets for each of tranche a and tranche b. specifically , on march 1 , 2018 ( the “tranche a reset date” and the “tranche b reset date” ) and every two years thereafter , the mortgage lender may reset the interest rates for each of tranche a and tranche b , respectively , in its sole and absolute discretion . if the reset interest rate for tranche a is unacceptable to us and we ( i ) do not have sufficient funds to repay amounts due with respect to tranche a on the tranche a reset date , or ( ii ) are unable to refinance amounts due with respect to tranche a on the tranche a reset date on terms more favorable than the reset interest rates , then , depending on the extent of the changes in the reset interest rates , our interest expense would increase . 29 the mortgage facility matures on march 1 , 2023. tranche a under the mortgage facility accrues interest at a fixed interest rate of 7.63 % per annum , payable monthly . as mentioned above , such interest rate may be reset by the mortgage lender on the tranche a reset date . monthly principal payments in the amount of $ 0.2 million commenced on june 1 , 2008. tranche b under the mortgage facility accrues interest , as reset on march 1 , 2016 , at a floating rate of the greater of ( i ) one month libor plus 3.50 % per annum or ( ii ) 4.25 % , payable monthly ( the “floating rate” ) . the margin on such floating rate may be reset by the mortgage lender on each tranche b reset date ; provided , however , that the mortgage lender may also change the underlying index on each tranche b reset date occurring on or after march 1 , 2018. monthly principal payments in the amount of $ 0.1 million commenced on june 1 , 2008. we do not currently anticipate that any change in the floating rate or the underlying index will have a material adverse effect upon our business , financial condition or results of operations . the terms of the mortgage facility contain covenants that require us to maintain a specified net worth of $ 110.0 million and maintain the encumbered properties . the mortgage lender is entitled to require immediate repayment of our obligations under the mortgage facility in the event we default in the payments required under the mortgage facility , non-compliance with the covenants or upon the occurrence of certain other defaults by us under the mortgage facility . as of june 29 , 2017 , we were in compliance with all covenants under the mortgage facility . selma property in september 2006 , we sold our selma , texas properties ( the “selma properties” ) to two related party partnerships for $ 14.3 million and are leasing them back . the selling price was determined by an independent appraiser to be the fair market value which also approximated our carrying value . the lease for the selma properties has a ten-year term at a fair market value rent with three five-year renewal options . also , we currently have an option to purchase the selma properties from the partnerships at 95 % ( 100 % in certain circumstances ) of the then fair market value , but not less than the original $ 14.3 million purchase price . the provisions of the arrangement are not eligible for sale-leaseback accounting and the $ 14.3 million was recorded as a debt obligation . no gain or loss was recorded on the selma properties transaction . as of june 29 , 2017 , $ 11.1 million of the debt obligation was outstanding . in september 2015 , we exercised two five-year renewal options which extended the selma lease to september 18 , 2026 ( unless we purchase it before such date ) and reduced the base monthly lease amount we pay on the selma properties during the second quarter of fiscal 2017 . 30 off-balance sheet arrangements as of june 29 , 2017 , we were not involved in any off-balance sheet arrangements , as defined in item 303 ( a ) ( 4 ) ( ii ) of regulation s-k promulgated by the sec . contractual cash obligations at june 29 , 2017 , we had the following contractual cash obligations for long-term debt ( including scheduled interest payments ) , operating leases , the credit facility , purchase obligations , retirement plans and other long-term liabilities ( amounts in this subsection in thousands ) : replace_table_token_9_th ( 1 ) interest obligations on floating rate debt instruments are calculated using interest rates in effect at june 29 , 2017. see note 5 “long-term debt” of the notes to consolidated financial statements for further detail on the company 's long-term debt obligations . ( 2 ) the purchase obligations represent $ 177,842 of inventory purchase commitments ; however , these amounts exclude purchase commitments under walnut purchase agreements due to the uncertainty of pricing and quantity . ( 3 ) represents projected retirement obligations . see note 11-“employee benefit plans” and note 12-“retirement plan” of the notes to consolidated financial statements for further details . 31 critical accounting policies and estimates our financial statements are prepared in accordance with accounting principles generally accepted in the united states of america . the accounting policies as disclosed in the notes to consolidated financial statements are applied in the preparation of our financial statements and accounting for the underlying transactions and balances . the policies discussed below are considered by our management to be critical for an understanding of our financial statements because the application of these policies places the most significant demands on management 's judgment , with financial reporting results relying on estimation regarding the effect of matters that are

as we proceed with clinical development of pb272 ( neratinib ( oral ) ) , and as we further develop pb272 ( neratinib ( intravenous ) ) , and pb357 , our second and third product candidates , respectively , we expect our r & d expenses and expenses related to our third-party contractors will begin to decline unless we decide to pursue additional clinical trials in alternate indications or acquire additional product candidates . to the extent we are successful in acquiring additional product candidates for our development pipeline , our need to finance r & d will increase . accordingly , our success depends not only on the safety and efficacy of our product candidates , but also on our ability to finance product development . our major sources of working capital have been proceeds from public offerings of our common stock , proceeds from our credit facility and sales of our common stock in private placements . summary of income and expenses product revenue , net product revenue , net consists of revenue from sales of nerlynx . we record revenue at the net sales price , which includes an estimate for variable consideration for which reserves are established . variable consideration consists of trade discounts and allowances , product returns , provider chargebacks and discounts , government rebates and other incentives . license revenue license revenue consists of consideration paid to us pursuant to our license agreements . 57 cost of sales cost of sales consists of third-party manufacturing costs , freight , and indirect overhead costs associated with sales of nerlynx . cost of product sales may also include period costs related to royalty charges payable to the licensor , the amortization of a milestone payment made to the licensor after obtaining fda approval of nerlynx , certain inventory manufacturing services , inventory adjustment charges , unabsorbed manufacturing and overhead costs , and manufacturing variances . selling , general and administration expenses selling , general and administrative , or sg & a , expenses consist primarily of salaries and related personnel costs , including stock-based compensation expense , professional fees , business insurance , rent , general legal activities , and other corporate expenses . internal expenses primarily consist of payroll-related costs , but also include facilities and equipment costs , travel expenses and supplies . external expenses primarily consist of legal fees , insurance expenses and consulting for activities such as sales , marketing and software implementations to support corporate growth . research and development expenses : r & d expenses include costs associated with services provided by consultants who conduct clinical services on our behalf , contract organizations for manufacturing of clinical materials and clinical trials . during the years ended december 31 , 2017 , 2016 and 2015 , our r & d expenses consisted primarily of clinical research organization , or cro , fees ; fees paid to consultants ; salaries and related personnel costs ; and stock-based compensation . we expense our r & d costs as they are incurred . internal expenses primarily consist of payroll-related costs , but also include equipment costs , travel expenses and supplies . external expenses primarily consist of clinical trial expenses and consultant and contractor expense , but also include costs such as legal fees , insurance costs and manufacturing expense . results of operations the following summarizes our results of operations for the periods indicated . year ended december 31 , 2017 compared to year ended december 31 , 2016 total revenue total revenue was approximately $ 27.7 million for the year ended december 31 , 2017 compared to $ 0 for the year ended december 31 , 2016. product revenue , net product revenue , net was approximately $ 26.2 million for the year ended december 31 , 2017 , compared to $ 0 for the year ended december 31 , 2016. this increase in product revenue , net was entirely attributable to sales of nerlynx , our initial product , following its commercial launch in july 2017. license revenue license revenue was approximately $ 1.5 million for the year ended december 31 , 2017 , compared to $ 0 for the year ended december 31 , 2016. this increase in license revenue was entirely attributable to an upfront payment in an out-license agreement . cost of sales cost of sales was approximately $ 5.6 million for the year ended december 31 , 2017 , compared to $ 0 for the year ended december 31 , 2016. the increase in cost of sales was entirely attributable to the commercial launch of nerlynx , our initial product , in july 2017. year ended december 31 , 2016 compared to year ended december 31 , 2015 total revenue total revenue was $ 0 for the years ended december 31 , 2016 and 2015 as we did not generate revenue until the commercial launch of nerlynx during 2017 . 58 cost of sales cost of sales was $ 0 for the years ended december 31 , 2016 and 2015 because we did not yet have a commercial product . selling , general and administrative expenses : replace_table_token_5_th year ended december 31 , 2017 compared to year ended december 31 , 2016 total sg & a expenses increased approximately 98.3 % to $ 106.7 million for the year ended december 31 , 2017 from $ 53.8 million for the year ended december 31 , 2016. approximately $ 16.1 million of this increase , or 30.4 % of the total increase , is related to the hiring and training of a commercial sales force and field based support personnel ( approximately 100 employees ) upon obtaining fda approval of nerlynx . story_separator_special_tag the credit facility also includes events of default , the occurrence and continuation of which could cause interest to be charged at the rate that is otherwise applicable plus 5.0 % and would provide svb , as collateral agent , with the right to exercise remedies against us and the collateral securing the credit facility , including foreclosure against the property securing the credit facilities , including its cash . these events of default include , among other things , any failure by us to pay principal or interest due under the credit facility , a breach of certain covenants under the credit facility , our insolvency , a material adverse change , the occurrence of any default under certain other indebtedness in an amount greater than $ 500,000 and one or more judgments against us in an amount greater than $ 500,000 individually or in the aggregate . current and future financing needs we have incurred negative cash flows from operations since we started our business , and we did not achieve any product revenues until the third quarter of 2017. we have spent , and expect to continue to spend , substantial amounts in connection with implementing our business strategy , including our planned product development efforts , our clinical trials , our r & d efforts and the commercialization efforts . given the current and desired pace of clinical development of our product candidates , over the next 12 months we estimate that our r & d spending will be approximately $ 130 million to $ 140 million , excluding stock-based compensation . 64 additionally , we expect sg & a expenses to increase as we continue commercialization efforts . we are currently exploring methods by which to commercialize our product candidates if approved by the fda or ema . these methods may require funding in addition to the cash and cash equivalents totaling approximately $ 81.7 million available at december 31 , 2017. while our consolidated financial statements have been prepared on a going concern basis , we expect to continue incurring significant losses for the foreseeable future and will continue to remain dependent on our ability to obtain sufficient funding to sustain operation and successfully commercially launch neratinib . while we have been successful in raising financing in the past , there can be no assurance that we will be able to do so in the future . our ability to obtain funding may be adversely impacted by uncertain market conditions , unfavorable decisions of regulatory authorities or adverse clinical trial results . the outcome of these matters can not be predicted at this time . in addition , we have based our estimate of capital needs on assumptions that may prove to be wrong . changes may occur that would consume our available capital faster than anticipated , including changes in and progress of our development activities , the impact of commercialization efforts , acquisitions of additional drug candidates and changes in regulation . potential sources of financing include strategic relationships , public or private sales of equity or debt and other sources of funds . we may seek to access the public or private equity markets when conditions are favorable due to our long-term capital requirements . although we may have access to the additional $ 50 million from the debt financing during 2018 provided we have achieved a specified minimum revnue milestone and no event of default is occurring , it is uncertain whether additional funding will be available when we need it on terms that will be acceptable to us , or at all . if we raise funds by selling additional shares of common stock or other securities convertible into common stock , the ownership interests of our existing stockholders will be diluted . if we are not able to obtain financing when needed , we may be unable to carry out our business plan . as a result , we may have to significantly limit our operations , and our business , financial condition and results of operations would be materially harmed . in such an event , we will be required to undertake a thorough review of our programs , and the opportunities presented by such programs , and allocate our resources in the manner most prudent . going concern our independent registered public accounting firm has issued a report on our audited consolidated financial statements for the year ended december 31 , 2017 that included an explanatory paragraph referring to our significant operating losses and expressing substantial doubt in our ability to continue as a going concern . our consolidated financial statements have been prepared on a going concern basis , which assumes the realization of assets and settlement of liabilities in the normal course of business . our ability to continue as a going concern is dependent upon our ability to generate profitable operations in the future and/ or to obtain the necessary financing to meet our obligations and repay our liabilities arising from normal business operations when they become due . the outcome of these matters can not be predicted with any certainty at this time and raise substantial doubt that we will be able to continue as a going concern . our consolidated financial statements do not include any adjustments to the amount and classification of assets and liabilities that may be necessary should we be unable to continue as a going concern . off-balance sheet arrangements we do not have any “ off-balance sheet arrangements , ” as defined by the sec regulations . contractual obligations contractual obligations represent future cash commitments and liabilities under agreements with third parties , and exclude contingent liabilities for which we can not reasonably predict future payment . our contractual obligations result from property leases for office space . although we do have obligations for cro services , the table below excludes potential payments we may be required to make under our agreements with cros because timing

liquidity and capital resources operating activities we reported net losses of approximately $ 292.0 million , $ 276.0 million and $ 239.3 million for the years ended december 31 , 2017 , 2016 and 2015 , respectively . we also reported negative cash flows from operating activities of approximately $ 172.5 million , $ 141.7 million and $ 154.5 million for the years ended december 31 , 2017 , 2016 and 2015 , respectively . net cash used in operating activities for the year ended december 31 , 2017 , includes a net loss of $ 292.0 million adjusted for non-cash items of approximately $ 108.7 million for stock-based compensation expense , and depreciation of property and equipment and license amortization of approximately $ 2.8 million . further changes in cash flows from operations include an increase in accounts payable and accrued expenses of approximately $ 21.6 million , an increase in accounts receivable of approximately $ 9.7 million , an increase in inventory of approximately $ 2.0 million , an increase in prepaid expenses and other of approximately $ 1.1 million and an decrease in the accrued liability for deferred rent of approximately $ 0.1 million . net cash used in operating activities for the year ended december 31 , 2016 , includes a net loss of $ 276.0 million adjusted for non-cash items of approximately $ 117.3 million for stock-based compensation expense , build-out allowance of approximately $ 3.0 million , disposal of leasehold improvements of approximately $ 0.4 million and depreciation and amortization of property and equipment of approximately $ 1.1 million . further changes in cash flows from operations include an increase in accounts payable and accrued expenses of approximately $ 5.0 million , a decrease in prepaid expenses and other of approximately $ 3.4 million and an increase in the accrued liability for deferred rent of approximately $ 4.1 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. ```liquidity and capital resources operating activities we reported net losses of approximately $ 292.0 million , $ 276.0 million and $ 239.3 million for the years ended december 31 , 2017 , 2016 and 2015 , respectively . we also reported negative cash flows from operating activities of approximately $ 172.5 million , $ 141.7 million and $ 154.5 million for the years ended december 31 , 2017 , 2016 and 2015 , respectively . net cash used in operating activities for the year ended december 31 , 2017 , includes a net loss of $ 292.0 million adjusted for non-cash items of approximately $ 108.7 million for stock-based compensation expense , and depreciation of property and equipment and license amortization of approximately $ 2.8 million . further changes in cash flows from operations include an increase in accounts payable and accrued expenses of approximately $ 21.6 million , an increase in accounts receivable of approximately $ 9.7 million , an increase in inventory of approximately $ 2.0 million , an increase in prepaid expenses and other of approximately $ 1.1 million and an decrease in the accrued liability for deferred rent of approximately $ 0.1 million . net cash used in operating activities for the year ended december 31 , 2016 , includes a net loss of $ 276.0 million adjusted for non-cash items of approximately $ 117.3 million for stock-based compensation expense , build-out allowance of approximately $ 3.0 million , disposal of leasehold improvements of approximately $ 0.4 million and depreciation and amortization of property and equipment of approximately $ 1.1 million . further changes in cash flows from operations include an increase in accounts payable and accrued expenses of approximately $ 5.0 million , a decrease in prepaid expenses and other of approximately $ 3.4 million and an increase in the accrued liability for deferred rent of approximately $ 4.1 million . ``` Suspicious Activity Report : as we proceed with clinical development of pb272 ( neratinib ( oral ) ) , and as we further develop pb272 ( neratinib ( intravenous ) ) , and pb357 , our second and third product candidates , respectively , we expect our r & d expenses and expenses related to our third-party contractors will begin to decline unless we decide to pursue additional clinical trials in alternate indications or acquire additional product candidates . to the extent we are successful in acquiring additional product candidates for our development pipeline , our need to finance r & d will increase . accordingly , our success depends not only on the safety and efficacy of our product candidates , but also on our ability to finance product development . our major sources of working capital have been proceeds from public offerings of our common stock , proceeds from our credit facility and sales of our common stock in private placements . summary of income and expenses product revenue , net product revenue , net consists of revenue from sales of nerlynx . we record revenue at the net sales price , which includes an estimate for variable consideration for which reserves are established . variable consideration consists of trade discounts and allowances , product returns , provider chargebacks and discounts , government rebates and other incentives . license revenue license revenue consists of consideration paid to us pursuant to our license agreements . 57 cost of sales cost of sales consists of third-party manufacturing costs , freight , and indirect overhead costs associated with sales of nerlynx . cost of product sales may also include period costs related to royalty charges payable to the licensor , the amortization of a milestone payment made to the licensor after obtaining fda approval of nerlynx , certain inventory manufacturing services , inventory adjustment charges , unabsorbed manufacturing and overhead costs , and manufacturing variances . selling , general and administration expenses selling , general and administrative , or sg & a , expenses consist primarily of salaries and related personnel costs , including stock-based compensation expense , professional fees , business insurance , rent , general legal activities , and other corporate expenses . internal expenses primarily consist of payroll-related costs , but also include facilities and equipment costs , travel expenses and supplies . external expenses primarily consist of legal fees , insurance expenses and consulting for activities such as sales , marketing and software implementations to support corporate growth . research and development expenses : r & d expenses include costs associated with services provided by consultants who conduct clinical services on our behalf , contract organizations for manufacturing of clinical materials and clinical trials . during the years ended december 31 , 2017 , 2016 and 2015 , our r & d expenses consisted primarily of clinical research organization , or cro , fees ; fees paid to consultants ; salaries and related personnel costs ; and stock-based compensation . we expense our r & d costs as they are incurred . internal expenses primarily consist of payroll-related costs , but also include equipment costs , travel expenses and supplies . external expenses primarily consist of clinical trial expenses and consultant and contractor expense , but also include costs such as legal fees , insurance costs and manufacturing expense . results of operations the following summarizes our results of operations for the periods indicated . year ended december 31 , 2017 compared to year ended december 31 , 2016 total revenue total revenue was approximately $ 27.7 million for the year ended december 31 , 2017 compared to $ 0 for the year ended december 31 , 2016. product revenue , net product revenue , net was approximately $ 26.2 million for the year ended december 31 , 2017 , compared to $ 0 for the year ended december 31 , 2016. this increase in product revenue , net was entirely attributable to sales of nerlynx , our initial product , following its commercial launch in july 2017. license revenue license revenue was approximately $ 1.5 million for the year ended december 31 , 2017 , compared to $ 0 for the year ended december 31 , 2016. this increase in license revenue was entirely attributable to an upfront payment in an out-license agreement . cost of sales cost of sales was approximately $ 5.6 million for the year ended december 31 , 2017 , compared to $ 0 for the year ended december 31 , 2016. the increase in cost of sales was entirely attributable to the commercial launch of nerlynx , our initial product , in july 2017. year ended december 31 , 2016 compared to year ended december 31 , 2015 total revenue total revenue was $ 0 for the years ended december 31 , 2016 and 2015 as we did not generate revenue until the commercial launch of nerlynx during 2017 . 58 cost of sales cost of sales was $ 0 for the years ended december 31 , 2016 and 2015 because we did not yet have a commercial product . selling , general and administrative expenses : replace_table_token_5_th year ended december 31 , 2017 compared to year ended december 31 , 2016 total sg & a expenses increased approximately 98.3 % to $ 106.7 million for the year ended december 31 , 2017 from $ 53.8 million for the year ended december 31 , 2016. approximately $ 16.1 million of this increase , or 30.4 % of the total increase , is related to the hiring and training of a commercial sales force and field based support personnel ( approximately 100 employees ) upon obtaining fda approval of nerlynx . story_separator_special_tag the credit facility also includes events of default , the occurrence and continuation of which could cause interest to be charged at the rate that is otherwise applicable plus 5.0 % and would provide svb , as collateral agent , with the right to exercise remedies against us and the collateral securing the credit facility , including foreclosure against the property securing the credit facilities , including its cash . these events of default include , among other things , any failure by us to pay principal or interest due under the credit facility , a breach of certain covenants under the credit facility , our insolvency , a material adverse change , the occurrence of any default under certain other indebtedness in an amount greater than $ 500,000 and one or more judgments against us in an amount greater than $ 500,000 individually or in the aggregate . current and future financing needs we have incurred negative cash flows from operations since we started our business , and we did not achieve any product revenues until the third quarter of 2017. we have spent , and expect to continue to spend , substantial amounts in connection with implementing our business strategy , including our planned product development efforts , our clinical trials , our r & d efforts and the commercialization efforts . given the current and desired pace of clinical development of our product candidates , over the next 12 months we estimate that our r & d spending will be approximately $ 130 million to $ 140 million , excluding stock-based compensation . 64 additionally , we expect sg & a expenses to increase as we continue commercialization efforts . we are currently exploring methods by which to commercialize our product candidates if approved by the fda or ema . these methods may require funding in addition to the cash and cash equivalents totaling approximately $ 81.7 million available at december 31 , 2017. while our consolidated financial statements have been prepared on a going concern basis , we expect to continue incurring significant losses for the foreseeable future and will continue to remain dependent on our ability to obtain sufficient funding to sustain operation and successfully commercially launch neratinib . while we have been successful in raising financing in the past , there can be no assurance that we will be able to do so in the future . our ability to obtain funding may be adversely impacted by uncertain market conditions , unfavorable decisions of regulatory authorities or adverse clinical trial results . the outcome of these matters can not be predicted at this time . in addition , we have based our estimate of capital needs on assumptions that may prove to be wrong . changes may occur that would consume our available capital faster than anticipated , including changes in and progress of our development activities , the impact of commercialization efforts , acquisitions of additional drug candidates and changes in regulation . potential sources of financing include strategic relationships , public or private sales of equity or debt and other sources of funds . we may seek to access the public or private equity markets when conditions are favorable due to our long-term capital requirements . although we may have access to the additional $ 50 million from the debt financing during 2018 provided we have achieved a specified minimum revnue milestone and no event of default is occurring , it is uncertain whether additional funding will be available when we need it on terms that will be acceptable to us , or at all . if we raise funds by selling additional shares of common stock or other securities convertible into common stock , the ownership interests of our existing stockholders will be diluted . if we are not able to obtain financing when needed , we may be unable to carry out our business plan . as a result , we may have to significantly limit our operations , and our business , financial condition and results of operations would be materially harmed . in such an event , we will be required to undertake a thorough review of our programs , and the opportunities presented by such programs , and allocate our resources in the manner most prudent . going concern our independent registered public accounting firm has issued a report on our audited consolidated financial statements for the year ended december 31 , 2017 that included an explanatory paragraph referring to our significant operating losses and expressing substantial doubt in our ability to continue as a going concern . our consolidated financial statements have been prepared on a going concern basis , which assumes the realization of assets and settlement of liabilities in the normal course of business . our ability to continue as a going concern is dependent upon our ability to generate profitable operations in the future and/ or to obtain the necessary financing to meet our obligations and repay our liabilities arising from normal business operations when they become due . the outcome of these matters can not be predicted with any certainty at this time and raise substantial doubt that we will be able to continue as a going concern . our consolidated financial statements do not include any adjustments to the amount and classification of assets and liabilities that may be necessary should we be unable to continue as a going concern . off-balance sheet arrangements we do not have any “ off-balance sheet arrangements , ” as defined by the sec regulations . contractual obligations contractual obligations represent future cash commitments and liabilities under agreements with third parties , and exclude contingent liabilities for which we can not reasonably predict future payment . our contractual obligations result from property leases for office space . although we do have obligations for cro services , the table below excludes potential payments we may be required to make under our agreements with cros because timing

during 2016 , west texas intermediate posted prices ranged from $ 26.19 to $ 54.01 per bbl and the henry hub spot market price of natural gas ranged from $ 1.49 to $ 3.80 per mmbtu . on december 30 , 2016 , the west texas intermediate posted price for crude oil was $ 53.75 per bbl and the henry hub spot market price of natural gas was $ 3.71 per mmbtu . lower prices may not only decrease our revenues , but also potentially the amount of oil and natural gas that our operators can produce economically . lower oil and natural gas prices may also result in a reduction in the borrowing base under our credit agreement , which may be redetermined at the discretion of our lenders . principal components of our cost structure production and ad valorem taxes production taxes are paid on produced oil and natural gas based on a percentage of revenues from products sold at fixed rates established by federal , state or local taxing authorities . where available , we benefit from tax credits and exemptions in our various taxing jurisdictions . we are also subject to ad valorem taxes in the counties where our production is located . ad valorem taxes are generally based on the valuation of our oil and gas properties . general and administrative in connection with the closing of the ipo , our general partner and diamondback entered into the first amended and restated agreement of limited partnership , dated as of june 23 , 2014. the partnership agreement requires us to reimburse our general partner for all direct and indirect expenses incurred or paid on our behalf and all other expenses allocable to us or otherwise incurred by our general partner in connection with operating our business . the partnership agreement does not set a limit on the amount of expenses for which our general partner and its affiliates may be reimbursed . these expenses include salary , bonus , incentive compensation and other amounts paid to persons who perform services for us or on our behalf and expenses allocated to our general partner by its affiliates . our general partner is entitled to determine the expenses that are allocable to us . in connection with the closing of the ipo , we and our general partner entered into an advisory services agreement with wexford , pursuant to which wexford provides general financial and strategic advisory services to us and our general partner in exchange for a $ 0.5 million annual fee and certain expense reimbursement . our predecessor incurred costs for overhead , including the cost of management , operating and administrative services provided under the shared services agreement with diamondback e & p llc , a wholly owned subsidiary of diamondback , audit and other fees for professional services and legal compliance . in connection with the closing of the ipo , the shared services agreement with diamondback e & p llc was terminated . depreciation , depletion and amortization under the full cost accounting method , we capitalize costs within a cost center and then systematically expense those costs on a units of production basis based on proved oil and natural gas reserve quantities . we calculate depletion on all capitalized costs , other than the cost of investments in unproved properties and major development projects for which proved reserves can not yet be assigned , less accumulated amortization . 45 income tax expense we are organized as a pass-through entity for income tax purposes . as a result , our partners are responsible for federal income taxes on their share of our taxable income . we are subject to the texas margin tax . any amounts related to operations for the period in 2014 prior to the closing of the ipo on june 23 , 2014 will be included in diamondback 's unitary filing for this tax . diamondback does not expect any texas margin tax to be due for the years ended december 31 , 2016 , 2015 and 2014 . results of operations results presented and factors affecting the comparability of our results to the historical financial results of our predecessor viper energy partners lp was formed on february 27 , 2014 and did not own any assets prior to the contribution of our predecessor to us on june 17 , 2014. the assets of our predecessor consisted of mineral interests in oil and natural gas properties in the permian basin , which were acquired on september 19 , 2013. the contribution of our predecessor to us on june 17 , 2014 was accounted for as a combination of entities under common control with assets and liabilities transferred at their carrying amounts in a manner similar to a pooling of interests . therefore , the financial and operating data below represent our predecessor 's operations for periods prior to june 17 , 2014 and , for periods on and after june 17 , 2014 , the financial and operating data represent the combination of our predecessor and our operations . our results of operations and our future results of operations may not be comparable to the historical results of operations of our predecessor for the periods presented , primarily for the reasons described below : long-term debt in connection with the closing of the ipo , the subordinated note issued by our predecessor to diamondback effective september 19 , 2013 was converted to equity ; therefore , we no longer have the note payable and related interest expense . on july 8 , 2014 , we entered into a secured revolving credit agreement with wells fargo as the administrative agent , sole book runner and lead arranger . story_separator_special_tag if such changes are material , they could significantly affect future amortization of capitalized costs and result in impairment of assets that may be material . there are numerous uncertainties inherent in estimating quantities of proved oil and natural gas reserves . oil and natural gas reserve engineering is a subjective process of estimating underground accumulations of oil and natural gas that can not be precisely measured and the accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretation and judgment . results of drilling , testing and production subsequent to the date of the estimate may justify revision of such estimate . accordingly , reserve estimates are often different from the quantities of oil and natural gas that are ultimately recovered . royalty interest and revenue recognition royalty interests represent the right to receive revenues ( oil and natural gas sales ) , less production and operating taxes and post-production costs . revenue is recorded when title passes to the purchaser . holders of royalty interests have no rights or obligations to explore , develop or operate the property and do not incur any of the costs of exploration , development and operation of the property . impairment the net capitalized costs of proved oil and natural gas properties are subject to a full cost ceiling limitation in which the costs are not allowed to exceed their related estimated future net revenues discounted at 10 % . to the extent capitalized costs of evaluated oil and natural gas properties , net of accumulated depreciation , depletion , amortization , impairment and deferred income taxes exceed the discounted future net revenues of proved oil and natural gas reserves , less any related income tax effects , the excess capitalized costs are charged to expense . in calculating future net revenues , prices are calculated as the average oil and gas prices during the preceding 12-month period prior to the end of the current reporting period , determined as the unweighted arithmetic average first-day-of-the-month prices for the prior 12-month period and costs used are those as of the end of the appropriate quarterly period . accounting for unit-based compensation unit-based compensation grants are measured at their grant date fair value and related compensation cost is recognized over the vesting period of the grant . the ltip and related accounting policies are defined and described more fully in note 7 –unit based compensation to our audited consolidated financial statements included elsewhere in this annual report . the determination of the fair value of an award requires significant estimates and subjective judgments regarding , among other things , the appropriate option pricing model , the expected life of the award and forfeiture rate assumptions . estimates of the fair value of unit options granted during the year ended december 31 , 2016 , were completed using a black-scholes option valuation model , which requires us to make several assumptions . recent accounting pronouncements in may 2014 , the financial accounting standards board issued accounting standards update 2014-09 , “ revenue from contracts with customers ” . this update supersedes most of the existing revenue recognition requirements in gaap and requires ( i ) an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services and ( ii ) requires expanded 54 disclosures regarding the nature , amount , timing and certainty of revenue and cash flows from contracts with customers . the standard will be effective for annual and interim reporting periods beginning after december 15 , 2017 , early application permitted for annual reporting period beginning after december 31 , 2016. the standard allows for either full retrospective adoption , meaning the standard is applied to all periods presented in the financial statements , or modified retrospective adoption , meaning the standard is applied only to the most current period presented . we are currently evaluating the impact of this standard ; however , we do not believe this standard will have a material impact on our financial statements . in april 2015 , the financial accounting standards board issued accounting standards update 2015-03 , “ interest–imputation of interest ” . this update requires that debt issuance costs related to a recognized debt liability ( except costs associated with revolving debt arrangements ) be presented in the balance sheet as a direct deduction from that debt liability , consistent with the presentation of a debt discount , to simplify the presentation of debt issuance costs . this update is effective for financial statements issued for fiscal years beginning after december 15 , 2015. we retrospectively adopted this new standard effective january 1 , 2016. adoption of this update did not have a material impact on our consolidated financial statements . in january 2016 , the financial accounting standards board issued accounting standards update 2016-01 , “ financial instruments–overall ” . this update applies to any entity that holds financial assets or owes financial liabilities . this update requires equity investments ( except for those accounted for under the equity method or those that result in consolidation of the investee ) to be measured at fair value with changes in fair value recognized in net income . this update will be effective for public entities for fiscal years beginning after december 15 , 2017 , including interim periods within those fiscal years , with early adoption permitted . entities should apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption . we will be required to mark our cost method investment to fair value with the adoption of this update . in february 2016 , the financial accounting standards board issued accounting standards update 2016-02 , “ leases ” . this update applies to

cash flows the following table presents our cash flows for the period indicated . replace_table_token_12_th operating activities our operating cash flow is sensitive to many variables , the most significant of which are the volatility of prices for oil and natural gas and the volume of oil and natural gas sold by our producers . prices for these commodities are determined primarily by prevailing market conditions . regional and worldwide economic activity , weather and other substantially variable factors influence market conditions for these products . these factors are beyond our control and are difficult to predict . investing activities the purchase of oil and natural gas interests accounted for the majority of our cash outlays for investing activities . net cash used in investing activities was $ 205.7 million , $ 43.9 million and $ 96.8 million during the years ended december 31 , 2016 , 2015 and 2014 , respectively . during the year ended december 31 , 2016 , we spent approximately $ 205.7 million on acquisitions of royalty interests . during the year ended december 31 , 2015 , we spent approximately $ 43.9 million on acquisitions of royalty interests . during the year ended december 31 , 2014 , we spent approximately $ 57.7 million on acquisitions of royalty interests and approximately $ 33.9 million for a minor equity interest in an entity that owns mineral , overriding royalty , net profits , leasehold and other similar interests . financing activities net cash provided by financing activities was $ 145.8 million during the year ended december 31 , 2016 , primarily related to $ 86.0 million of net borrowings under our revolving credit agreement and net proceeds of $ 125.0 million from our public offering of common units partially offset by $ 64.8 million of distributions to our unitholders during 2016. net cash used in financing activities was $ 34.5 million during the year ended december 31 , 2015 , primarily related to $ 68.6 million of distributions to our unitholders during 2015 , after giving effect to $ 34.5 million of proceeds from borrowings under our 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. ```cash flows the following table presents our cash flows for the period indicated . replace_table_token_12_th operating activities our operating cash flow is sensitive to many variables , the most significant of which are the volatility of prices for oil and natural gas and the volume of oil and natural gas sold by our producers . prices for these commodities are determined primarily by prevailing market conditions . regional and worldwide economic activity , weather and other substantially variable factors influence market conditions for these products . these factors are beyond our control and are difficult to predict . investing activities the purchase of oil and natural gas interests accounted for the majority of our cash outlays for investing activities . net cash used in investing activities was $ 205.7 million , $ 43.9 million and $ 96.8 million during the years ended december 31 , 2016 , 2015 and 2014 , respectively . during the year ended december 31 , 2016 , we spent approximately $ 205.7 million on acquisitions of royalty interests . during the year ended december 31 , 2015 , we spent approximately $ 43.9 million on acquisitions of royalty interests . during the year ended december 31 , 2014 , we spent approximately $ 57.7 million on acquisitions of royalty interests and approximately $ 33.9 million for a minor equity interest in an entity that owns mineral , overriding royalty , net profits , leasehold and other similar interests . financing activities net cash provided by financing activities was $ 145.8 million during the year ended december 31 , 2016 , primarily related to $ 86.0 million of net borrowings under our revolving credit agreement and net proceeds of $ 125.0 million from our public offering of common units partially offset by $ 64.8 million of distributions to our unitholders during 2016. net cash used in financing activities was $ 34.5 million during the year ended december 31 , 2015 , primarily related to $ 68.6 million of distributions to our unitholders during 2015 , after giving effect to $ 34.5 million of proceeds from borrowings under our credit facility . ``` Suspicious Activity Report : during 2016 , west texas intermediate posted prices ranged from $ 26.19 to $ 54.01 per bbl and the henry hub spot market price of natural gas ranged from $ 1.49 to $ 3.80 per mmbtu . on december 30 , 2016 , the west texas intermediate posted price for crude oil was $ 53.75 per bbl and the henry hub spot market price of natural gas was $ 3.71 per mmbtu . lower prices may not only decrease our revenues , but also potentially the amount of oil and natural gas that our operators can produce economically . lower oil and natural gas prices may also result in a reduction in the borrowing base under our credit agreement , which may be redetermined at the discretion of our lenders . principal components of our cost structure production and ad valorem taxes production taxes are paid on produced oil and natural gas based on a percentage of revenues from products sold at fixed rates established by federal , state or local taxing authorities . where available , we benefit from tax credits and exemptions in our various taxing jurisdictions . we are also subject to ad valorem taxes in the counties where our production is located . ad valorem taxes are generally based on the valuation of our oil and gas properties . general and administrative in connection with the closing of the ipo , our general partner and diamondback entered into the first amended and restated agreement of limited partnership , dated as of june 23 , 2014. the partnership agreement requires us to reimburse our general partner for all direct and indirect expenses incurred or paid on our behalf and all other expenses allocable to us or otherwise incurred by our general partner in connection with operating our business . the partnership agreement does not set a limit on the amount of expenses for which our general partner and its affiliates may be reimbursed . these expenses include salary , bonus , incentive compensation and other amounts paid to persons who perform services for us or on our behalf and expenses allocated to our general partner by its affiliates . our general partner is entitled to determine the expenses that are allocable to us . in connection with the closing of the ipo , we and our general partner entered into an advisory services agreement with wexford , pursuant to which wexford provides general financial and strategic advisory services to us and our general partner in exchange for a $ 0.5 million annual fee and certain expense reimbursement . our predecessor incurred costs for overhead , including the cost of management , operating and administrative services provided under the shared services agreement with diamondback e & p llc , a wholly owned subsidiary of diamondback , audit and other fees for professional services and legal compliance . in connection with the closing of the ipo , the shared services agreement with diamondback e & p llc was terminated . depreciation , depletion and amortization under the full cost accounting method , we capitalize costs within a cost center and then systematically expense those costs on a units of production basis based on proved oil and natural gas reserve quantities . we calculate depletion on all capitalized costs , other than the cost of investments in unproved properties and major development projects for which proved reserves can not yet be assigned , less accumulated amortization . 45 income tax expense we are organized as a pass-through entity for income tax purposes . as a result , our partners are responsible for federal income taxes on their share of our taxable income . we are subject to the texas margin tax . any amounts related to operations for the period in 2014 prior to the closing of the ipo on june 23 , 2014 will be included in diamondback 's unitary filing for this tax . diamondback does not expect any texas margin tax to be due for the years ended december 31 , 2016 , 2015 and 2014 . results of operations results presented and factors affecting the comparability of our results to the historical financial results of our predecessor viper energy partners lp was formed on february 27 , 2014 and did not own any assets prior to the contribution of our predecessor to us on june 17 , 2014. the assets of our predecessor consisted of mineral interests in oil and natural gas properties in the permian basin , which were acquired on september 19 , 2013. the contribution of our predecessor to us on june 17 , 2014 was accounted for as a combination of entities under common control with assets and liabilities transferred at their carrying amounts in a manner similar to a pooling of interests . therefore , the financial and operating data below represent our predecessor 's operations for periods prior to june 17 , 2014 and , for periods on and after june 17 , 2014 , the financial and operating data represent the combination of our predecessor and our operations . our results of operations and our future results of operations may not be comparable to the historical results of operations of our predecessor for the periods presented , primarily for the reasons described below : long-term debt in connection with the closing of the ipo , the subordinated note issued by our predecessor to diamondback effective september 19 , 2013 was converted to equity ; therefore , we no longer have the note payable and related interest expense . on july 8 , 2014 , we entered into a secured revolving credit agreement with wells fargo as the administrative agent , sole book runner and lead arranger . story_separator_special_tag if such changes are material , they could significantly affect future amortization of capitalized costs and result in impairment of assets that may be material . there are numerous uncertainties inherent in estimating quantities of proved oil and natural gas reserves . oil and natural gas reserve engineering is a subjective process of estimating underground accumulations of oil and natural gas that can not be precisely measured and the accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretation and judgment . results of drilling , testing and production subsequent to the date of the estimate may justify revision of such estimate . accordingly , reserve estimates are often different from the quantities of oil and natural gas that are ultimately recovered . royalty interest and revenue recognition royalty interests represent the right to receive revenues ( oil and natural gas sales ) , less production and operating taxes and post-production costs . revenue is recorded when title passes to the purchaser . holders of royalty interests have no rights or obligations to explore , develop or operate the property and do not incur any of the costs of exploration , development and operation of the property . impairment the net capitalized costs of proved oil and natural gas properties are subject to a full cost ceiling limitation in which the costs are not allowed to exceed their related estimated future net revenues discounted at 10 % . to the extent capitalized costs of evaluated oil and natural gas properties , net of accumulated depreciation , depletion , amortization , impairment and deferred income taxes exceed the discounted future net revenues of proved oil and natural gas reserves , less any related income tax effects , the excess capitalized costs are charged to expense . in calculating future net revenues , prices are calculated as the average oil and gas prices during the preceding 12-month period prior to the end of the current reporting period , determined as the unweighted arithmetic average first-day-of-the-month prices for the prior 12-month period and costs used are those as of the end of the appropriate quarterly period . accounting for unit-based compensation unit-based compensation grants are measured at their grant date fair value and related compensation cost is recognized over the vesting period of the grant . the ltip and related accounting policies are defined and described more fully in note 7 –unit based compensation to our audited consolidated financial statements included elsewhere in this annual report . the determination of the fair value of an award requires significant estimates and subjective judgments regarding , among other things , the appropriate option pricing model , the expected life of the award and forfeiture rate assumptions . estimates of the fair value of unit options granted during the year ended december 31 , 2016 , were completed using a black-scholes option valuation model , which requires us to make several assumptions . recent accounting pronouncements in may 2014 , the financial accounting standards board issued accounting standards update 2014-09 , “ revenue from contracts with customers ” . this update supersedes most of the existing revenue recognition requirements in gaap and requires ( i ) an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services and ( ii ) requires expanded 54 disclosures regarding the nature , amount , timing and certainty of revenue and cash flows from contracts with customers . the standard will be effective for annual and interim reporting periods beginning after december 15 , 2017 , early application permitted for annual reporting period beginning after december 31 , 2016. the standard allows for either full retrospective adoption , meaning the standard is applied to all periods presented in the financial statements , or modified retrospective adoption , meaning the standard is applied only to the most current period presented . we are currently evaluating the impact of this standard ; however , we do not believe this standard will have a material impact on our financial statements . in april 2015 , the financial accounting standards board issued accounting standards update 2015-03 , “ interest–imputation of interest ” . this update requires that debt issuance costs related to a recognized debt liability ( except costs associated with revolving debt arrangements ) be presented in the balance sheet as a direct deduction from that debt liability , consistent with the presentation of a debt discount , to simplify the presentation of debt issuance costs . this update is effective for financial statements issued for fiscal years beginning after december 15 , 2015. we retrospectively adopted this new standard effective january 1 , 2016. adoption of this update did not have a material impact on our consolidated financial statements . in january 2016 , the financial accounting standards board issued accounting standards update 2016-01 , “ financial instruments–overall ” . this update applies to any entity that holds financial assets or owes financial liabilities . this update requires equity investments ( except for those accounted for under the equity method or those that result in consolidation of the investee ) to be measured at fair value with changes in fair value recognized in net income . this update will be effective for public entities for fiscal years beginning after december 15 , 2017 , including interim periods within those fiscal years , with early adoption permitted . entities should apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption . we will be required to mark our cost method investment to fair value with the adoption of this update . in february 2016 , the financial accounting standards board issued accounting standards update 2016-02 , “ leases ” . this update applies to

in particular , we implemented a work-from-home policy for all employees and have restricted on-site activities to certain chemical , manufacturing and control ( “ cmc ” ) and clinical trial activities . we continue to assess the impact of the covid-19 pandemic to best mitigate risk and continue the operations of our business . beginning late in the second quarter of 2020 , we began to slowly bring our staff , in very limited numbers , back to our office . this modified return-to-work approach is expected to continue into 2021. we have taken steps to protect our workforce and have instituted strict work rules to protect our employees . we continue to work closely with our clinical sites to monitor the potential impact of the evolving covid-19 pandemic . we remain committed to our clinical programs and development plans . through december 31 , 2020 , we have not experienced any significant delays to our ongoing or planned clinical trials , except for challenges in accessing elderly care facilities ; however , this could rapidly change . 87 our clinical programs the following is a summary of the status of our clinical development programs as of the date of this annual report on form 10-k : ​ ​ our novel drug re-innovation approach our ai-based discovery and development process is the foundation of our drug re-innovation model for identifying the next wave of medicines . our therapeutic area experts have over 60 years of experience across the drug discovery and development value chain . we believe evolverai is a novel method of finding potential product candidates because it combines the comprehensiveness and efficiency of machine learning and big data analytics with the expertise and intuition of human experience in drug development . we believe the combination of our therapeutic area expertise and our ability to generate therapeutic candidates in neuroscience and immuno-oncology through our exclusive collaborative relationship in those areas with bioxcel gives us a significant competitive advantage . the pharmacological space spans more than 27,000 active pharmaceutical agents , and only approximately 4,000 are approved and marketed drugs benefiting patients . these marketed drugs may be applied to other indications , including rare diseases , and represent an untapped potential for meeting significant unmet medical need and recoupment of research and development investments . a large number of the remaining agents are clinical candidates that are active , shelved , or have failed for reasons other than toxicity and can potentially be re-engineered for different indications or patient segments . they potentially represent an unrealized investment of billions of research and development dollars by the private and public sectors , resulting in an immeasurable amount of patient suffering and sacrificing during clinical development . traditional drug development is plagued with low success rates ( 13.8 % , according to an mit study of 186,000 trials from january 2000 to october 2015 ) , long drug development cycles ( 10-15 years , according to phrma key facts 2016 ) , and exorbitant development costs ( $ 2.6 billion per drug , according to phrma key facts ) . furthermore , many serious diseases continue to go unaddressed due to limitations of the current drug discovery paradigm . the recent advent of numerous ‘ omics ' technologies ( genomics , proteomics ) and rapid advances in science and medicine are generating terabytes of valuable unexploited knowledge that is widely distributed in multiple big data lakes with several orders of complexity and variety . much of this data is not being systematically applied to the development of next generation therapeutics , thus preventing the optimization of drug development utilizing the understanding of technology , science , medicine , markets , and commercial opportunities . the efficient and intuitive use of big data remains a bottleneck and a challenge to the pharmaceutical industry . taken together , these factors underscore the need for fundamental new 88 approaches to drug discovery and development . the market opportunity to identify new uses for existing pharmacological agents remains substantial due to the lack of technology driven insights . our parent , bioxcel , has created a proprietary r & d engine , evolverai , for drug re-innovation that provides a proprietary systems-based approach designed to unlock the hidden value in drugs . the combination of our therapeutic area expertise and our exclusive collaborative relationship with bioxcel enables us to screen , analyze , and identify the product candidates that we believe have a high likelihood of benefiting patients . the compounds in our pipeline have been identified using this proprietary platform . evolverai is designed to eliminate human bias by scanning millions of data points from disparate data sources to create network maps . the nodes and connections in the network map are weighted and ranked based on the validity of supporting evidence using disease specific algorithms . they are then further analyzed using artificial intelligence and machine learning approaches supplemented by human domain-based expertise to uncover novel connections between disease parameters , molecular targets , mechanisms of actions and product candidates . this drug re-innovation model has been exemplified by the successful development and commercialization of drugs such as tecfidera ( biogen , inc. ) , thalomid ( celgene corporation ) and viagra ( pfizer , inc. , or pfizer ) . all of these drugs were identified by insights in biology and disease pathophysiology . the successful business models of biotech companies like axsome-therapeutics , inc. and karuna therapeutics , inc. are based on the re-innovation and combination of existing clinical candidates or marketed drugs to provide novel solutions for patients . unfortunately , such discoveries have been severely limited in scope due to the lack of a genuinely integrated big data analytics-based approach . we believe that only evolverai allows a comprehensive and unbiased evaluation of the complete pharmacological space . story_separator_special_tag if we are unable to raise capital when needed or on attractive terms , we could be forced to significantly delay , scale back or discontinue the development or commercialization of bxcl501 , bxcl701 or other product candidates , seek collaborators at an earlier stage than otherwise would be desirable or on terms that are less favorable than might otherwise be available , and relinquish or license , potentially on unfavorable terms , our rights to bxcl501 , bxcl701 or other product candidates that we otherwise would seek to develop or commercialize ourselves . critical accounting policies and estimates the preparation of our financial statements in conformity with gaap requires management to exercise its judgment . we exercise considerable judgment with respect to establishing sound accounting policies and in making estimates and assumptions that affect the reported amounts of our assets and liabilities , our recognition of revenues and expenses , and disclosure of commitments and contingencies at the date of the financial statements . on an ongoing basis , we evaluate our estimates and judgments . we base our estimates and judgments on a variety of factors including our historical experience , knowledge of our business and industry , current and expected economic conditions , the attributes of our products , the regulatory environment , and in certain cases , the results of outside appraisals . we periodically re-evaluate our estimates and assumptions with respect to these judgments and modify our approach when circumstances indicate that modifications are necessary . while we believe that the factors we evaluate provide us with a meaningful basis for establishing and applying sound accounting policies , we can not guarantee that the results will always be accurate . since the determination of these estimates requires the exercise of judgment , actual results could differ from such estimates . 95 a description of significant accounting policies that require us to make estimates and assumptions in the preparation of our financial statements is as follows : stock-based compensation the company accounts for stock-based compensation in accordance with asc 718 , “ compensation—stock compensation , ” which requires the measurement and recognition of compensation expense based on estimated fair market values for all share-based awards made to employees and non-employee service providers , including stock options . the company 's 2017 equity incentive plan ( the “ 2017 plan ” ) became effective in august 2017. the company 's 2020 incentive award plan ( the “ 2020 plan ” ) became effective in may 2020. following the effective date of the company 's 2020 plan , the company ceased granting awards under the 2017 plan ; however the terms and conditions of the 2017 plan continue to govern any outstanding awards granted thereunder . the company 's stock option awards are valued at fair value on the date of grant and that fair value is recognized over the requisite service period . the company utilizes the black-scholes option pricing model for determining the estimated fair value for stock-based awards . the black-scholes model requires the use of assumptions which determine the fair value of the stock-based awards . determining the fair value of stock-based awards at the grant date requires significant judgment , including estimating the expected term of the stock options , the expected volatility of our stock and expected dividends . prior to the ipo , significant judgement and estimates were used to estimate the fair value of these awards , as the shares of common stock underlying these awards were not then publicly traded . stock awards granted by the company subsequent to its ipo are valued using market prices at the date of grant . the company has elected to account for forfeitures as they occur , by reversing compensation cost when the award is forfeited . the company adopted fasb asu 2018-07 as of january 1 , 2019 which allowed non-employee options to be expensed using the adoption date fair value . accrued expenses ​ as part of the process of preparing our financial statements , we are required to estimate our accrued 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 level of service performed and the associated cost incurred for the service when we have not yet been invoiced or otherwise notified of actual cost . the majority of our service providers invoice us monthly in arrears for services performed . we make estimates of our accrued expenses as of each balance sheet date in our financial statements based on facts and circumstances known to us at that time . we periodically confirm the accuracy of our estimates with the service providers and make adjustments if necessary . ​ we base our expenses on our estimates of the services received and level of effort in each period . the financial terms of these agreements are subject to negotiation , vary from contract to contract and may result in uneven payment flows . payments under some of these contracts depend on factors such as the successful enrollment of patients and the completion of clinical trial milestones . ​ in accruing expenses , we estimate the time period over which services will be performed and the level of effort to be expended in each period . the date on which some services commence , the level of services performed on or before a given dates and the cost of such services are often subjective determinations . if the actual timing of the performance of services or the level of effort varies from our estimate , we adjust the accrual 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 us reporting amounts that are too high

liquidity and capital resources as of december 31 , 2020 , we had cash and cash equivalents of $ 213,119 , working capital of $ 205,223 and stockholders ' equity of $ 206,696. net cash used in operating activities was $ 66,350 and $ 27,101 for the years ended december 31 , 2020 and 2019. we incurred losses of approximately $ 82,169 and $ 32,968 for the years ended december 31 , 2020 and 2019. we have not yet generated any revenues and we have not yet achieved profitability . we expect that our research and development and general and administrative expenses will continue to increase and , as a result , we will need to generate significant product revenues to achieve profitability . we believe that our existing cash and cash equivalents as of december 31 , 2020 will enable us to fund our operating expenses and capital expenditure requirements for at least one year from the date of this annual report on form 10-k. 92 we may obtain additional financing through sales of the company 's equity securities , entering into strategic partnership arrangements and or short-term borrowings from banks , stockholders or other related parties , if needed , or a combination of any of the foregoing . there are no assurances that we will be successful in obtaining an adequate level of financing as and when needed to finance our operations on terms acceptable to us or at all , particularly in light of the economic downturn and ongoing uncertainty related to the covid-19 pandemic . if we are unable to secure adequate additional funding as and when needed , we may have to significantly delay , scale back or discontinue the development and commercialization of one or more product candidates . in addition , the magnitude and duration of the covid-19 pandemic and its impact on our liquidity and future funding requirements is uncertain as of the filing date of this annual report on form 10-k , as the pandemic continues to evolve globally .

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 cash and cash equivalents of $ 213,119 , working capital of $ 205,223 and stockholders ' equity of $ 206,696. net cash used in operating activities was $ 66,350 and $ 27,101 for the years ended december 31 , 2020 and 2019. we incurred losses of approximately $ 82,169 and $ 32,968 for the years ended december 31 , 2020 and 2019. we have not yet generated any revenues and we have not yet achieved profitability . we expect that our research and development and general and administrative expenses will continue to increase and , as a result , we will need to generate significant product revenues to achieve profitability . we believe that our existing cash and cash equivalents as of december 31 , 2020 will enable us to fund our operating expenses and capital expenditure requirements for at least one year from the date of this annual report on form 10-k. 92 we may obtain additional financing through sales of the company 's equity securities , entering into strategic partnership arrangements and or short-term borrowings from banks , stockholders or other related parties , if needed , or a combination of any of the foregoing . there are no assurances that we will be successful in obtaining an adequate level of financing as and when needed to finance our operations on terms acceptable to us or at all , particularly in light of the economic downturn and ongoing uncertainty related to the covid-19 pandemic . if we are unable to secure adequate additional funding as and when needed , we may have to significantly delay , scale back or discontinue the development and commercialization of one or more product candidates . in addition , the magnitude and duration of the covid-19 pandemic and its impact on our liquidity and future funding requirements is uncertain as of the filing date of this annual report on form 10-k , as the pandemic continues to evolve globally . ``` Suspicious Activity Report : in particular , we implemented a work-from-home policy for all employees and have restricted on-site activities to certain chemical , manufacturing and control ( “ cmc ” ) and clinical trial activities . we continue to assess the impact of the covid-19 pandemic to best mitigate risk and continue the operations of our business . beginning late in the second quarter of 2020 , we began to slowly bring our staff , in very limited numbers , back to our office . this modified return-to-work approach is expected to continue into 2021. we have taken steps to protect our workforce and have instituted strict work rules to protect our employees . we continue to work closely with our clinical sites to monitor the potential impact of the evolving covid-19 pandemic . we remain committed to our clinical programs and development plans . through december 31 , 2020 , we have not experienced any significant delays to our ongoing or planned clinical trials , except for challenges in accessing elderly care facilities ; however , this could rapidly change . 87 our clinical programs the following is a summary of the status of our clinical development programs as of the date of this annual report on form 10-k : ​ ​ our novel drug re-innovation approach our ai-based discovery and development process is the foundation of our drug re-innovation model for identifying the next wave of medicines . our therapeutic area experts have over 60 years of experience across the drug discovery and development value chain . we believe evolverai is a novel method of finding potential product candidates because it combines the comprehensiveness and efficiency of machine learning and big data analytics with the expertise and intuition of human experience in drug development . we believe the combination of our therapeutic area expertise and our ability to generate therapeutic candidates in neuroscience and immuno-oncology through our exclusive collaborative relationship in those areas with bioxcel gives us a significant competitive advantage . the pharmacological space spans more than 27,000 active pharmaceutical agents , and only approximately 4,000 are approved and marketed drugs benefiting patients . these marketed drugs may be applied to other indications , including rare diseases , and represent an untapped potential for meeting significant unmet medical need and recoupment of research and development investments . a large number of the remaining agents are clinical candidates that are active , shelved , or have failed for reasons other than toxicity and can potentially be re-engineered for different indications or patient segments . they potentially represent an unrealized investment of billions of research and development dollars by the private and public sectors , resulting in an immeasurable amount of patient suffering and sacrificing during clinical development . traditional drug development is plagued with low success rates ( 13.8 % , according to an mit study of 186,000 trials from january 2000 to october 2015 ) , long drug development cycles ( 10-15 years , according to phrma key facts 2016 ) , and exorbitant development costs ( $ 2.6 billion per drug , according to phrma key facts ) . furthermore , many serious diseases continue to go unaddressed due to limitations of the current drug discovery paradigm . the recent advent of numerous ‘ omics ' technologies ( genomics , proteomics ) and rapid advances in science and medicine are generating terabytes of valuable unexploited knowledge that is widely distributed in multiple big data lakes with several orders of complexity and variety . much of this data is not being systematically applied to the development of next generation therapeutics , thus preventing the optimization of drug development utilizing the understanding of technology , science , medicine , markets , and commercial opportunities . the efficient and intuitive use of big data remains a bottleneck and a challenge to the pharmaceutical industry . taken together , these factors underscore the need for fundamental new 88 approaches to drug discovery and development . the market opportunity to identify new uses for existing pharmacological agents remains substantial due to the lack of technology driven insights . our parent , bioxcel , has created a proprietary r & d engine , evolverai , for drug re-innovation that provides a proprietary systems-based approach designed to unlock the hidden value in drugs . the combination of our therapeutic area expertise and our exclusive collaborative relationship with bioxcel enables us to screen , analyze , and identify the product candidates that we believe have a high likelihood of benefiting patients . the compounds in our pipeline have been identified using this proprietary platform . evolverai is designed to eliminate human bias by scanning millions of data points from disparate data sources to create network maps . the nodes and connections in the network map are weighted and ranked based on the validity of supporting evidence using disease specific algorithms . they are then further analyzed using artificial intelligence and machine learning approaches supplemented by human domain-based expertise to uncover novel connections between disease parameters , molecular targets , mechanisms of actions and product candidates . this drug re-innovation model has been exemplified by the successful development and commercialization of drugs such as tecfidera ( biogen , inc. ) , thalomid ( celgene corporation ) and viagra ( pfizer , inc. , or pfizer ) . all of these drugs were identified by insights in biology and disease pathophysiology . the successful business models of biotech companies like axsome-therapeutics , inc. and karuna therapeutics , inc. are based on the re-innovation and combination of existing clinical candidates or marketed drugs to provide novel solutions for patients . unfortunately , such discoveries have been severely limited in scope due to the lack of a genuinely integrated big data analytics-based approach . we believe that only evolverai allows a comprehensive and unbiased evaluation of the complete pharmacological space . story_separator_special_tag if we are unable to raise capital when needed or on attractive terms , we could be forced to significantly delay , scale back or discontinue the development or commercialization of bxcl501 , bxcl701 or other product candidates , seek collaborators at an earlier stage than otherwise would be desirable or on terms that are less favorable than might otherwise be available , and relinquish or license , potentially on unfavorable terms , our rights to bxcl501 , bxcl701 or other product candidates that we otherwise would seek to develop or commercialize ourselves . critical accounting policies and estimates the preparation of our financial statements in conformity with gaap requires management to exercise its judgment . we exercise considerable judgment with respect to establishing sound accounting policies and in making estimates and assumptions that affect the reported amounts of our assets and liabilities , our recognition of revenues and expenses , and disclosure of commitments and contingencies at the date of the financial statements . on an ongoing basis , we evaluate our estimates and judgments . we base our estimates and judgments on a variety of factors including our historical experience , knowledge of our business and industry , current and expected economic conditions , the attributes of our products , the regulatory environment , and in certain cases , the results of outside appraisals . we periodically re-evaluate our estimates and assumptions with respect to these judgments and modify our approach when circumstances indicate that modifications are necessary . while we believe that the factors we evaluate provide us with a meaningful basis for establishing and applying sound accounting policies , we can not guarantee that the results will always be accurate . since the determination of these estimates requires the exercise of judgment , actual results could differ from such estimates . 95 a description of significant accounting policies that require us to make estimates and assumptions in the preparation of our financial statements is as follows : stock-based compensation the company accounts for stock-based compensation in accordance with asc 718 , “ compensation—stock compensation , ” which requires the measurement and recognition of compensation expense based on estimated fair market values for all share-based awards made to employees and non-employee service providers , including stock options . the company 's 2017 equity incentive plan ( the “ 2017 plan ” ) became effective in august 2017. the company 's 2020 incentive award plan ( the “ 2020 plan ” ) became effective in may 2020. following the effective date of the company 's 2020 plan , the company ceased granting awards under the 2017 plan ; however the terms and conditions of the 2017 plan continue to govern any outstanding awards granted thereunder . the company 's stock option awards are valued at fair value on the date of grant and that fair value is recognized over the requisite service period . the company utilizes the black-scholes option pricing model for determining the estimated fair value for stock-based awards . the black-scholes model requires the use of assumptions which determine the fair value of the stock-based awards . determining the fair value of stock-based awards at the grant date requires significant judgment , including estimating the expected term of the stock options , the expected volatility of our stock and expected dividends . prior to the ipo , significant judgement and estimates were used to estimate the fair value of these awards , as the shares of common stock underlying these awards were not then publicly traded . stock awards granted by the company subsequent to its ipo are valued using market prices at the date of grant . the company has elected to account for forfeitures as they occur , by reversing compensation cost when the award is forfeited . the company adopted fasb asu 2018-07 as of january 1 , 2019 which allowed non-employee options to be expensed using the adoption date fair value . accrued expenses ​ as part of the process of preparing our financial statements , we are required to estimate our accrued 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 level of service performed and the associated cost incurred for the service when we have not yet been invoiced or otherwise notified of actual cost . the majority of our service providers invoice us monthly in arrears for services performed . we make estimates of our accrued expenses as of each balance sheet date in our financial statements based on facts and circumstances known to us at that time . we periodically confirm the accuracy of our estimates with the service providers and make adjustments if necessary . ​ we base our expenses on our estimates of the services received and level of effort in each period . the financial terms of these agreements are subject to negotiation , vary from contract to contract and may result in uneven payment flows . payments under some of these contracts depend on factors such as the successful enrollment of patients and the completion of clinical trial milestones . ​ in accruing expenses , we estimate the time period over which services will be performed and the level of effort to be expended in each period . the date on which some services commence , the level of services performed on or before a given dates and the cost of such services are often subjective determinations . if the actual timing of the performance of services or the level of effort varies from our estimate , we adjust the accrual 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 us reporting amounts that are too high

42 table of contents the growth of our fully diluted book value per share over the last 10 years is shown in the table below . the table below summarizes the calculation of our fully diluted book value per ordinary share as of december 31 , 2020 and 2019 : replace_table_token_3_th ( 1 ) there are warrants outstanding to acquire 175,901 series c non-voting ordinary shares for an exercise price of $ 115.00 per share , subject to certain adjustments ( the `` warrants `` ) . the warrants were issued in april 2011 and expire in april 2021. the warrant holder may , at its election , satisfy the exercise price of the warrants on a cashless basis by surrender of shares otherwise issuable upon exercise of the warrants in accordance with a formula set forth in the warrants . ( 2 ) ordinary shares outstanding includes voting and non-voting shares but excludes ordinary shares held in the enstar group limited employee benefit trust ( the `` eb trust `` ) in respect of awards made under our joint share ownership plan , a sub-plan to our amended and restated 2016 equity incentive plan ( the `` jsop `` ) . ( 3 ) share-based dilutive securities include restricted shares , restricted share units , and performance share units ( `` psus `` ) . the amounts for psus , and for ordinary shares held in the eb trust in respect of the jsop , are adjusted at the end of each period end to reflect the latest estimated performance multipliers for the respective awards . the jsop shares did not have a dilutive effect as of december 31 , 2020 . 43 table of contents non-gaap financial measure in addition to presenting net earnings ( losses ) attributable to enstar ordinary shareholders and diluted earnings ( losses ) per ordinary share determined in accordance with u.s. gaap , we believe that presenting non-gaap operating income ( loss ) attributable to enstar ordinary shareholders and non-gaap diluted operating income ( loss ) per ordinary share provides investors with valuable measures of our performance . non-gaap operating income ( loss ) attributable to enstar ordinary shareholders is calculated by the addition or subtraction of certain items from within our consolidated statements of earnings to or from net earnings ( loss ) attributable to enstar ordinary shareholders , the most directly comparable gaap financial measure , as illustrated in the table below , for the years ending december 31 , 2020 , 2019 and 2018 : replace_table_token_4_th ( 1 ) represents the net realized and unrealized gains and losses related to fixed maturity securities recognized in net earnings ( losses ) . our fixed maturity securities are held directly on our balance sheet and also within the `` funds held - directly managed `` balance . refer to note 6 - `` investments `` in the notes to our consolidated financial statements included within item 8 of this annual report on form 10-k for further details on our net realized and unrealized gains and losses . ( 2 ) represents an aggregation of the tax expense or benefit associated with the specific country to which the pre-tax adjustment relates , calculated at the applicable jurisdictional tax rate . ( 3 ) represents the impact of the adjustments on the net earnings ( loss ) attributable to noncontrolling interest associated with the specific subsidiaries to which the adjustments relate . ( 4 ) non-gaap financial measure . ( 5 ) during a period of loss , the basic weighted average ordinary shares outstanding is used in the denominator of the diluted loss per ordinary share computation as the effect of including potentially dilutive securities would be anti-dilutive . 44 table of contents basis of non-gaap operating income ( loss ) financial measure our non-gaap measure shown above , as defined in item 10 ( e ) of regulation s-k , enables readers of the consolidated financial statements to analyze our results in a way that is more aligned with the manner in which our management measures our underlying performance . we believe that presenting this non-gaap financial measure , which may be defined and calculated differently by other companies , improves the understanding of our consolidated results of operations . this measure should not be viewed as a substitute for those calculated in accordance with u.s. gaap . non-gaap operating income ( loss ) is net earnings attributable to enstar ordinary shareholders excluding : ( i ) net realized and unrealized ( gains ) losses on fixed maturity investments and funds held - directly managed included in net earnings ( loss ) ; ( ii ) change in fair value of insurance contracts for which we have elected the fair value option ; ( iii ) gain ( loss ) on sale of subsidiaries , if any ; ( iv ) net earnings ( loss ) from discontinued operations , if any ; ( v ) tax effect of these adjustments , where applicable ; and ( vi ) attribution of share of adjustments to noncontrolling interest , where applicable . we eliminate the impact of net realized and unrealized ( gains ) losses on fixed maturity investments and funds held - directly managed and change in fair value of insurance contracts for which we have elected the fair value option because these items are subject to significant fluctuations in fair value from period to period , driven primarily by market conditions and general economic conditions , and therefore their impact on our earnings is not reflective of the performance of our core operations . we eliminate the impact of gain ( loss ) on sale of subsidiaries and net earnings ( loss ) on discontinued operations because these are not reflective of the performance of our core operations . story_separator_special_tag to our other investments results in 2019. for a reconciliation of non-gaap operating income attributable to enstar ordinary shareholders to net earnings attributable to enstar ordinary shareholders calculated in accordance with gaap , see `` non-gaap financial measures `` above . results of operations by segment - for the years ended december 31 , 2020 , 2019 and 2018 we have three reportable segments of business that are each managed , operated and reported on separately : ( i ) non-life run-off ; ( ii ) atrium ; and ( iii ) starstone . our other activities , which do not qualify as a reportable segment , include our corporate expenses , debt servicing costs , preferred share dividends , holding company income and expenses , foreign exchange and other miscellaneous items . for a description of our segments , see `` item 1. business - operating segments . `` as discussed in item 1. business - company overview and note 5 - `` divestitures , held-for-sale businesses and discontinued operations `` in the notes to our consolidated financial statements included within item 8 of this annual report on form 10-k , the strategic transactions related to our atrium and starstone segments will enable us to focus on our core non-life run-off business . we will review and assess our segment structure in 2021 to reflect the changes to the starstone and atrium segments in the fourth quarter of 2020 and the first quarter of 2021 , respectively . 49 table of contents the below table provides a split by operating segment of the net earnings attributable to enstar ordinary shareholders for the years ended december 31 , 2020 , 2019 and 2018 : replace_table_token_6_th the following is a discussion of our results of operations by segment . non-life run-off segment for a description of our non-life run-off segment , see `` item 1. business - operating segments - non-life run-off . `` the following is a discussion and analysis of the results of operations for our non-life run-off segment . replace_table_token_7_th ( 1 ) comparability between periods is impacted by the current period net incurred losses and lae as acquired unearned premium is earned , and by changes in fair value due to the election of the fair value option on certain business . refer to net incurred losses and lae table for further details . ( 2 ) this includes amounts relating to both fixed income securities and other investments . we have historically accounted for our fixed income securities as a trading portfolio , whereby unrealized amounts are reflected in earnings . however , from october 1 , 2019 , we have elected to use afs accounting and , as trading fixed income securities mature or are disposed of , to the extent the proceeds are reinvested in fixed income securities , the investments will be classified as afs securities for the non-life run-off segment . 50 table of contents overall results 2020 versus 2019 : net earnings attributable to the non-life run-off segment increased by $ 806.3 million , primarily due to : an increase in net realized and unrealized gains of $ 659.2 million . net realized and unrealized gains in 2020 were driven by an increase in the valuation of our other investments , predominantly in a hedge fund in the current period as discussed below in the `` investment results - consolidated `` section ; an increase in earnings from equity method investments of $ 182.4 million , driven primarily by our investments in enhanzed re and monument re ; and an increase in other income of $ 65.1 million largely driven by changes in actuarial estimates in defendant asbestos and environmental liabilities ; partially offset by , an increase in net underwriting losses of $ 50.9 million . an analysis of the components of the segment 's net earnings is shown below . investment results are separately discussed below in the `` investments results - consolidated `` section . net premiums earned : the following table shows the gross and net premiums written and earned for the non-life run-off segment . replace_table_token_8_th since business in this segment is in run-off , our general expectation is for premiums associated with legacy business to decline in future periods . however , the actual amount in any particular year will be impacted by new transactions during the year and the run-off of unearned premiums from transactions completed in recent years . premiums earned in this segment are generally offset by net incurred losses and lae related to the premiums . premiums earned may be higher than premiums written as we may acquire or assume unearned premium without the writing of gross premiums . 2020 versus 2019 : net premiums earned in 2020 were primarily related to the amtrust ritc transactions assumed in 2019 , whereas premiums written and earned in 2019 were primarily related to the run-off business assumed as a result of the amtrust ritc transactions and the acquisition of maiden reinsurance north america , inc. ( `` maiden re north america `` ) . 51 table of contents net incurred losses and lae : the following table shows the components of net incurred losses and lae for the non-life run-off segment . replace_table_token_9_th ( 1 ) comprises the movement during the year in specific case reserve liabilities as a result of claims settlements or changes advised to us by our policyholders and attorneys , less changes in case reserves recoverable advised by us to our reinsurers as a result of the settlement or movement of assumed claims . ( 2 ) represents the gross change in our actuarial estimates of ibnr , less amounts recoverable . ( 3 ) represents the change in the estimate of the total future costs to administer the claims . ( 4 ) relates to the amortization of deferred charge assets and deferred gain liabilities on retroactive reinsurance contracts . ( 5 ) relates to the amortization of

cash flows the following table summarizes our consolidated cash flows provided by ( used in ) operating , investing and financing activities . replace_table_token_35_th details of our consolidated cash flows are included in `` item 8. financial statements and supplementary data - consolidated statements of cash flows for the years ended december 31 , 2020 , 2019 and 2018 '' of this annual report on form 10-k. 2020 versus 2019 : cash and cash equivalents increased by $ 540.5 million in 2020 compared to $ 73.2 million during 2019 . 74 table of contents cash and cash equivalents increased by $ 540.5 million in 2020 , as cash provided by operating and financing activities of $ 2.8 billion and $ 117.4 million , respectively , was partially offset by cash used in investing activities of $ 2.3 billion . cash provided by operations in 2020 was predominantly driven by : ( i ) the proceeds from net sales and maturities of trading securities of $ 1.7 billion ; and ( ii ) cash and restricted cash acquired in non-life run-off reinsurance transactions of $ 1.6 billion ; partially offset by the timing of paid losses . cash provided by financing activities in 2020 was primarily attributable to net inflows of $ 179.5 million from loan obligations , partially offset by share repurchases and preferred share dividends . cash used in investing activities in 2020 primarily related to net purchases of afs securities of $ 1.9 billion and net subscriptions of other investments of $ 380.3 million . change in cash of business held-for-sale is due to the classification of the assets and liabilities of northshore as held-for-sale as of december 31 , 2020 and the disposal of starstone u.s. cash and cash equivalents increased by $ 73.2 million in 2019 , as cash provided by operating and financing activities of $ 1.4 billion and $ 248.5 million , respectively , was partially offset by cash used in investing activities of $ 1.6 billion .

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 consolidated cash flows provided by ( used in ) operating , investing and financing activities . replace_table_token_35_th details of our consolidated cash flows are included in `` item 8. financial statements and supplementary data - consolidated statements of cash flows for the years ended december 31 , 2020 , 2019 and 2018 '' of this annual report on form 10-k. 2020 versus 2019 : cash and cash equivalents increased by $ 540.5 million in 2020 compared to $ 73.2 million during 2019 . 74 table of contents cash and cash equivalents increased by $ 540.5 million in 2020 , as cash provided by operating and financing activities of $ 2.8 billion and $ 117.4 million , respectively , was partially offset by cash used in investing activities of $ 2.3 billion . cash provided by operations in 2020 was predominantly driven by : ( i ) the proceeds from net sales and maturities of trading securities of $ 1.7 billion ; and ( ii ) cash and restricted cash acquired in non-life run-off reinsurance transactions of $ 1.6 billion ; partially offset by the timing of paid losses . cash provided by financing activities in 2020 was primarily attributable to net inflows of $ 179.5 million from loan obligations , partially offset by share repurchases and preferred share dividends . cash used in investing activities in 2020 primarily related to net purchases of afs securities of $ 1.9 billion and net subscriptions of other investments of $ 380.3 million . change in cash of business held-for-sale is due to the classification of the assets and liabilities of northshore as held-for-sale as of december 31 , 2020 and the disposal of starstone u.s. cash and cash equivalents increased by $ 73.2 million in 2019 , as cash provided by operating and financing activities of $ 1.4 billion and $ 248.5 million , respectively , was partially offset by cash used in investing activities of $ 1.6 billion . ``` Suspicious Activity Report : 42 table of contents the growth of our fully diluted book value per share over the last 10 years is shown in the table below . the table below summarizes the calculation of our fully diluted book value per ordinary share as of december 31 , 2020 and 2019 : replace_table_token_3_th ( 1 ) there are warrants outstanding to acquire 175,901 series c non-voting ordinary shares for an exercise price of $ 115.00 per share , subject to certain adjustments ( the `` warrants `` ) . the warrants were issued in april 2011 and expire in april 2021. the warrant holder may , at its election , satisfy the exercise price of the warrants on a cashless basis by surrender of shares otherwise issuable upon exercise of the warrants in accordance with a formula set forth in the warrants . ( 2 ) ordinary shares outstanding includes voting and non-voting shares but excludes ordinary shares held in the enstar group limited employee benefit trust ( the `` eb trust `` ) in respect of awards made under our joint share ownership plan , a sub-plan to our amended and restated 2016 equity incentive plan ( the `` jsop `` ) . ( 3 ) share-based dilutive securities include restricted shares , restricted share units , and performance share units ( `` psus `` ) . the amounts for psus , and for ordinary shares held in the eb trust in respect of the jsop , are adjusted at the end of each period end to reflect the latest estimated performance multipliers for the respective awards . the jsop shares did not have a dilutive effect as of december 31 , 2020 . 43 table of contents non-gaap financial measure in addition to presenting net earnings ( losses ) attributable to enstar ordinary shareholders and diluted earnings ( losses ) per ordinary share determined in accordance with u.s. gaap , we believe that presenting non-gaap operating income ( loss ) attributable to enstar ordinary shareholders and non-gaap diluted operating income ( loss ) per ordinary share provides investors with valuable measures of our performance . non-gaap operating income ( loss ) attributable to enstar ordinary shareholders is calculated by the addition or subtraction of certain items from within our consolidated statements of earnings to or from net earnings ( loss ) attributable to enstar ordinary shareholders , the most directly comparable gaap financial measure , as illustrated in the table below , for the years ending december 31 , 2020 , 2019 and 2018 : replace_table_token_4_th ( 1 ) represents the net realized and unrealized gains and losses related to fixed maturity securities recognized in net earnings ( losses ) . our fixed maturity securities are held directly on our balance sheet and also within the `` funds held - directly managed `` balance . refer to note 6 - `` investments `` in the notes to our consolidated financial statements included within item 8 of this annual report on form 10-k for further details on our net realized and unrealized gains and losses . ( 2 ) represents an aggregation of the tax expense or benefit associated with the specific country to which the pre-tax adjustment relates , calculated at the applicable jurisdictional tax rate . ( 3 ) represents the impact of the adjustments on the net earnings ( loss ) attributable to noncontrolling interest associated with the specific subsidiaries to which the adjustments relate . ( 4 ) non-gaap financial measure . ( 5 ) during a period of loss , the basic weighted average ordinary shares outstanding is used in the denominator of the diluted loss per ordinary share computation as the effect of including potentially dilutive securities would be anti-dilutive . 44 table of contents basis of non-gaap operating income ( loss ) financial measure our non-gaap measure shown above , as defined in item 10 ( e ) of regulation s-k , enables readers of the consolidated financial statements to analyze our results in a way that is more aligned with the manner in which our management measures our underlying performance . we believe that presenting this non-gaap financial measure , which may be defined and calculated differently by other companies , improves the understanding of our consolidated results of operations . this measure should not be viewed as a substitute for those calculated in accordance with u.s. gaap . non-gaap operating income ( loss ) is net earnings attributable to enstar ordinary shareholders excluding : ( i ) net realized and unrealized ( gains ) losses on fixed maturity investments and funds held - directly managed included in net earnings ( loss ) ; ( ii ) change in fair value of insurance contracts for which we have elected the fair value option ; ( iii ) gain ( loss ) on sale of subsidiaries , if any ; ( iv ) net earnings ( loss ) from discontinued operations , if any ; ( v ) tax effect of these adjustments , where applicable ; and ( vi ) attribution of share of adjustments to noncontrolling interest , where applicable . we eliminate the impact of net realized and unrealized ( gains ) losses on fixed maturity investments and funds held - directly managed and change in fair value of insurance contracts for which we have elected the fair value option because these items are subject to significant fluctuations in fair value from period to period , driven primarily by market conditions and general economic conditions , and therefore their impact on our earnings is not reflective of the performance of our core operations . we eliminate the impact of gain ( loss ) on sale of subsidiaries and net earnings ( loss ) on discontinued operations because these are not reflective of the performance of our core operations . story_separator_special_tag to our other investments results in 2019. for a reconciliation of non-gaap operating income attributable to enstar ordinary shareholders to net earnings attributable to enstar ordinary shareholders calculated in accordance with gaap , see `` non-gaap financial measures `` above . results of operations by segment - for the years ended december 31 , 2020 , 2019 and 2018 we have three reportable segments of business that are each managed , operated and reported on separately : ( i ) non-life run-off ; ( ii ) atrium ; and ( iii ) starstone . our other activities , which do not qualify as a reportable segment , include our corporate expenses , debt servicing costs , preferred share dividends , holding company income and expenses , foreign exchange and other miscellaneous items . for a description of our segments , see `` item 1. business - operating segments . `` as discussed in item 1. business - company overview and note 5 - `` divestitures , held-for-sale businesses and discontinued operations `` in the notes to our consolidated financial statements included within item 8 of this annual report on form 10-k , the strategic transactions related to our atrium and starstone segments will enable us to focus on our core non-life run-off business . we will review and assess our segment structure in 2021 to reflect the changes to the starstone and atrium segments in the fourth quarter of 2020 and the first quarter of 2021 , respectively . 49 table of contents the below table provides a split by operating segment of the net earnings attributable to enstar ordinary shareholders for the years ended december 31 , 2020 , 2019 and 2018 : replace_table_token_6_th the following is a discussion of our results of operations by segment . non-life run-off segment for a description of our non-life run-off segment , see `` item 1. business - operating segments - non-life run-off . `` the following is a discussion and analysis of the results of operations for our non-life run-off segment . replace_table_token_7_th ( 1 ) comparability between periods is impacted by the current period net incurred losses and lae as acquired unearned premium is earned , and by changes in fair value due to the election of the fair value option on certain business . refer to net incurred losses and lae table for further details . ( 2 ) this includes amounts relating to both fixed income securities and other investments . we have historically accounted for our fixed income securities as a trading portfolio , whereby unrealized amounts are reflected in earnings . however , from october 1 , 2019 , we have elected to use afs accounting and , as trading fixed income securities mature or are disposed of , to the extent the proceeds are reinvested in fixed income securities , the investments will be classified as afs securities for the non-life run-off segment . 50 table of contents overall results 2020 versus 2019 : net earnings attributable to the non-life run-off segment increased by $ 806.3 million , primarily due to : an increase in net realized and unrealized gains of $ 659.2 million . net realized and unrealized gains in 2020 were driven by an increase in the valuation of our other investments , predominantly in a hedge fund in the current period as discussed below in the `` investment results - consolidated `` section ; an increase in earnings from equity method investments of $ 182.4 million , driven primarily by our investments in enhanzed re and monument re ; and an increase in other income of $ 65.1 million largely driven by changes in actuarial estimates in defendant asbestos and environmental liabilities ; partially offset by , an increase in net underwriting losses of $ 50.9 million . an analysis of the components of the segment 's net earnings is shown below . investment results are separately discussed below in the `` investments results - consolidated `` section . net premiums earned : the following table shows the gross and net premiums written and earned for the non-life run-off segment . replace_table_token_8_th since business in this segment is in run-off , our general expectation is for premiums associated with legacy business to decline in future periods . however , the actual amount in any particular year will be impacted by new transactions during the year and the run-off of unearned premiums from transactions completed in recent years . premiums earned in this segment are generally offset by net incurred losses and lae related to the premiums . premiums earned may be higher than premiums written as we may acquire or assume unearned premium without the writing of gross premiums . 2020 versus 2019 : net premiums earned in 2020 were primarily related to the amtrust ritc transactions assumed in 2019 , whereas premiums written and earned in 2019 were primarily related to the run-off business assumed as a result of the amtrust ritc transactions and the acquisition of maiden reinsurance north america , inc. ( `` maiden re north america `` ) . 51 table of contents net incurred losses and lae : the following table shows the components of net incurred losses and lae for the non-life run-off segment . replace_table_token_9_th ( 1 ) comprises the movement during the year in specific case reserve liabilities as a result of claims settlements or changes advised to us by our policyholders and attorneys , less changes in case reserves recoverable advised by us to our reinsurers as a result of the settlement or movement of assumed claims . ( 2 ) represents the gross change in our actuarial estimates of ibnr , less amounts recoverable . ( 3 ) represents the change in the estimate of the total future costs to administer the claims . ( 4 ) relates to the amortization of deferred charge assets and deferred gain liabilities on retroactive reinsurance contracts . ( 5 ) relates to the amortization of

as the commercial aerospace and defense industries continue to consolidate and major contractors seek to streamline supply chains by buying more complete sub-assemblies from fewer suppliers , we have sought to remain competitive not only by providing cost-effective world class service but also by increasing our ability to produce more complex and complete assemblies for our customers . we are currently focused on positioning our business to obtain profitability , achieve positive cash flow and we remain resolute on meeting customers ' needs . we believe that an unyielding focus on our customers will allow us to execute on our existing backlog in a timely fashion . in 2018 and 2019 , we consolidated the operations of our complex machining segment in our main campus located in bay shore , new york . in 2020 , in order to take advantage of the long-term growth opportunities we see in our markets , we made significant capital investments in new equipment . additionally , we expanded our operations and manufacturing cells located in our connecticut facility where our turbine engine segment is located . we believe these investments will increase the volume and efficiency of production , increase the size of product we can make and allow us to offer additional services to our customers . we are pleased with the positive responses received from our customers to date . our ability to operate profitably is determined by our ability to win new contracts and renewals of existing contracts , and then fulfill these contracts on a timely basis at costs that enable us to generate a profit based upon the agreed upon contract price . winning a contract generally requires that we submit a bid containing a fixed price for the product or products covered by the contract for an agreed upon period of time . thus , when submitting bids , we are required to estimate our future costs of production and , since we often rely upon subcontractors , the prices we can obtain from our subcontractors . while our revenues are largely determined by the number of contracts we are awarded , the volume of product delivered and price of product under each contract , our costs are determined by a number of factors . the principal factors impacting our costs are the cost of materials and supplies , labor , financing and the efficiency at which we can produce our products . the cost of materials used in the aerospace industry is highly volatile . in addition , the market for the skilled labor we require to operate our plants is highly competitive . the profit margin of the various products we sell varies based upon a number of factors , including the complexity of the product , the intensity of the competition for such product and , in some cases , the ability to deliver replacement parts on short notice . thus , in assessing our performance from one period to another , a reader must understand that changes in profit margin can be the result of shifts in the mix of products sold . our operations have a large percentage of fixed factory overhead . as a result , our profit margins are also highly variable with sales volumes as under-absorption of factory overhead decreases profits . 14 a very large percentage of the products we produce are used on military as opposed to civilian aircraft . these products can be replacements for aircraft already in the fleet of the armed services or for the production of new aircraft . reductions to the defense department budget and decreased usage of aircraft reduces the demand for both new production and replacement spares . recent increases in defense department spending have increased orders for our products . reductions to the defense department budget or decreased usage of aircraft reduces the demand for both new production and replacement spares and could adversely impact our business and our revenues . we are focusing greater efforts on the civilian aircraft market though we still remain dependent upon the military for an overwhelming portion of our revenues . covid -19 on march 11 , 2020 , the world health organization announced that infections caused by the coronavirus disease of 2019 ( “ covid-19 ” ) had become pandemic , and on march 13 , 2020 , the u.s. president announced a national emergency relating to the disease . national , state and local authorities have adopted various regulations and orders , including mandates on the number of people that may gather in one location and closing non-essential businesses . to date , we have been deemed an essential business and have not curtailed our operations . the measures adopted by various governments and agencies , as well as the decision by many individuals and businesses to voluntarily shut down or self-quarantine , had and are expected to continue to have serious adverse impacts on domestic and foreign economies of uncertain severity and duration . the effectiveness of economic stabilization efforts adopted by governments and their willingness to adopt further measures is uncertain . the overall economic impact of the covid-19 pandemic has been highly negative to the general economy and has been particularly negative on the commercial travel industry and commercial aerospace industries . in accordance with the department of defense guidance issued in march 2020 designating the defense industrial base as a critical infrastructure workforce , our facilities have continued to operate in support of essential products and services required to meet national security commitments to the u.s. government and the u.s. military , however , facility closures or work slowdowns or temporary stoppages could occur . story_separator_special_tag the formula to determine the amounts of revolving advances permitted to be borrowed under the snb revolving line of credit is based on a percentage of eligible receivables and inventory ( as defined in the snb facility ) . prior to the increase in the snb term loan described below , the snb term loan provided for monthly principal installments in the amount of $ 45,238 , payable on the first business day of each month , beginning on february 1 , 2020 , with a final payment of any unpaid balance of principal and interest payable on december 30 , 2022. in addition , for so long as the snb term loan remains outstanding , if excess cash flow ( as defined ) is a positive number for any fiscal year , beginning with the year ending december 31 , 2020 , we shall pay to snb an amount equal to the lesser of ( i ) twenty-five percent ( 25 % ) of the excess cash flow for such fiscal year and ( ii ) the outstanding principal balance of the term loan . such payment shall be made to snb and applied to the outstanding principal balance of the term loan , on or prior to the april 15 immediately following such fiscal year . the terms of the snb facility require that , among other things , we maintain a specified fixed charge coverage ratio of 1.25 to 1.00 at the end of each fiscal quarter beginning with the fiscal quarter ending march 31 , 2020. in addition , we are limited in the amount of capital expenditures we can make . in accordance with the snb facility by september 30 , 2020 , we were required to cause the holders of certain subordinated convertible notes to either ( i ) extend the maturity date of such notes to a date more than six months after december 31 , 2022 , or ( ii ) convert the notes into common stock of the company . as of december 31 , 2020 , we were in compliance with all loan covenants . the snb facility also restricts the amount of dividends we may pay to our stockholders . substantially all of our assets are pledged as collateral under the snb facility . 20 2 ) increased term loan to modernize equipment - on november 6 , 2020 , we entered into the first amendment to loan and security agreement , increasing the term loan to $ 5,685,000. this allowed us to finance the acquisition of the new equipment at what we believe to be a reasonable interest rate . the repayment terms of the term loan were amended to provide monthly principal installments in the amount of $ 67,679 beginning on december 1 , 2020 , with a final payment of any unpaid balance of principal and interest payable on december 30 , 2022. we have paid an amendment fee of $ 20,000. as of december 31 , 2020 , our debt to snb in the amount of $ 21,207,000 consisted of the snb revolving line of credit note in the amount of $ 15,649,000 and the snb term loan in the amount of $ 5,558,000. because we believe our fiscal 2021 sales will be higher than the amount achieved in fiscal 2020 , we believe our liquidity in 2021 will improve . nevertheless , our liquidity may be adversely impacted by various risks and uncertainties , including , but not limited to future effects of the covid-19 pandemic and other risks detailed in part1 , item 1a of this annual report . changes in our cash flow during fiscal 2020 and 2019 are discussed further below . cash flow the following table summarizes our net cash flow from operating , investing and financing activities for the periods indicated ( in thousands ) : replace_table_token_7_th the above cash flows include the cash flows from our continuing and discontinued operations . story_separator_special_tag of consolidated financial statements requires estimates and assumptions that affect the reported amounts of assets , liabilities , revenues , expenses and related disclosures . some of those estimates are subjective and complex , and consequently , actual results could differ from those estimates . the following accounting policies and estimates have been highlighted as significant because changes to certain judgements and assumptions inherent in these policies could affect our consolidated financial statements : ● going concern ● inventory valuation ● revenue recognition ● income taxes ● stock-based compensation ● goodwill recently issued accounting pronouncements in august 2020 , the fasb issued asu no . 2020-06 , debt – debt with conversion and other options ( subtopic 470-20 ) and derivatives and hedging – contracts in entity 's own equity ( subtopic 815-40 ) ( “ asu 2020-06 ) , which is intended to address issues identified as a result of the complexity associated with applying gaap for certain financial instruments with characteristics of liabilities and equity . for convertible instruments , asu 2020-06 reduces the number of accounting models for convertible debt instruments and convertible preferred stock , and enhances information transparency by making targeted improvements to the disclosures for convertible instruments and earnings-per-share guidance on the basis of feedback from financial statement users . asu 2020-06 is effective for fiscal years , and interim periods in those fiscal years , beginning after december 15 , 2021. early adoption is permitted , but no earlier than fiscal years beginning after december 15 , 2020 , including interim periods with those fiscal years . the company is evaluating the effect of adopting this new accounting guidance on its financial statements . in december 2019 , the fasb issued asu no . 2019-12 , “ income taxes ( topic 740 ) : simplifying the accounting for income taxes ” ( “ asu 2019-12 ” ) , which is intended to simplify various aspects related to accounting for income taxes . asu 2019-12 removes certain exceptions to the

cash used in operating activities cash used in operating activities reflects our net income ( loss ) adjusted for certain non-cash items and changes to working capital items . for the year ended december 31 , 2020 , net income of $ 1,096,000 and $ 1,990,000 of non-cash items , consisting primarily of employees and directors stock based compensation of $ 519,000 , amortization of right-of-use assets of $ 482,000 , depreciation of property and equipment of $ 2,570,000 and amortization of debt discount on convertible notes payable of $ 233,000 , were partially offset by the forgiveness of notes payable – sba loan and non-cash other income recognized in the amounts of $ 2,414,000 and $ 402,000 , respectively . operating assets and liabilities used cash in the net amount of $ 4,611,000 , consisting primarily of the net increases in accounts receivable and inventory of $ 1,045,000 and $ 3,474,000 , and net decreases in operating lease liabilities and deferred revenue in the amounts of $ 673,000 and $ 94,000 , which were partially offset primarily by increases in accounts payable and accrued expenses in the amounts of $ 275,000 and by decreases in prepaid expenses and other current assets and deposits and other assets in the amounts of $ 274,000 and $ 168,000 , 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 cash used in operating activities reflects our net income ( loss ) adjusted for certain non-cash items and changes to working capital items . for the year ended december 31 , 2020 , net income of $ 1,096,000 and $ 1,990,000 of non-cash items , consisting primarily of employees and directors stock based compensation of $ 519,000 , amortization of right-of-use assets of $ 482,000 , depreciation of property and equipment of $ 2,570,000 and amortization of debt discount on convertible notes payable of $ 233,000 , were partially offset by the forgiveness of notes payable – sba loan and non-cash other income recognized in the amounts of $ 2,414,000 and $ 402,000 , respectively . operating assets and liabilities used cash in the net amount of $ 4,611,000 , consisting primarily of the net increases in accounts receivable and inventory of $ 1,045,000 and $ 3,474,000 , and net decreases in operating lease liabilities and deferred revenue in the amounts of $ 673,000 and $ 94,000 , which were partially offset primarily by increases in accounts payable and accrued expenses in the amounts of $ 275,000 and by decreases in prepaid expenses and other current assets and deposits and other assets in the amounts of $ 274,000 and $ 168,000 , respectively . ``` Suspicious Activity Report : as the commercial aerospace and defense industries continue to consolidate and major contractors seek to streamline supply chains by buying more complete sub-assemblies from fewer suppliers , we have sought to remain competitive not only by providing cost-effective world class service but also by increasing our ability to produce more complex and complete assemblies for our customers . we are currently focused on positioning our business to obtain profitability , achieve positive cash flow and we remain resolute on meeting customers ' needs . we believe that an unyielding focus on our customers will allow us to execute on our existing backlog in a timely fashion . in 2018 and 2019 , we consolidated the operations of our complex machining segment in our main campus located in bay shore , new york . in 2020 , in order to take advantage of the long-term growth opportunities we see in our markets , we made significant capital investments in new equipment . additionally , we expanded our operations and manufacturing cells located in our connecticut facility where our turbine engine segment is located . we believe these investments will increase the volume and efficiency of production , increase the size of product we can make and allow us to offer additional services to our customers . we are pleased with the positive responses received from our customers to date . our ability to operate profitably is determined by our ability to win new contracts and renewals of existing contracts , and then fulfill these contracts on a timely basis at costs that enable us to generate a profit based upon the agreed upon contract price . winning a contract generally requires that we submit a bid containing a fixed price for the product or products covered by the contract for an agreed upon period of time . thus , when submitting bids , we are required to estimate our future costs of production and , since we often rely upon subcontractors , the prices we can obtain from our subcontractors . while our revenues are largely determined by the number of contracts we are awarded , the volume of product delivered and price of product under each contract , our costs are determined by a number of factors . the principal factors impacting our costs are the cost of materials and supplies , labor , financing and the efficiency at which we can produce our products . the cost of materials used in the aerospace industry is highly volatile . in addition , the market for the skilled labor we require to operate our plants is highly competitive . the profit margin of the various products we sell varies based upon a number of factors , including the complexity of the product , the intensity of the competition for such product and , in some cases , the ability to deliver replacement parts on short notice . thus , in assessing our performance from one period to another , a reader must understand that changes in profit margin can be the result of shifts in the mix of products sold . our operations have a large percentage of fixed factory overhead . as a result , our profit margins are also highly variable with sales volumes as under-absorption of factory overhead decreases profits . 14 a very large percentage of the products we produce are used on military as opposed to civilian aircraft . these products can be replacements for aircraft already in the fleet of the armed services or for the production of new aircraft . reductions to the defense department budget and decreased usage of aircraft reduces the demand for both new production and replacement spares . recent increases in defense department spending have increased orders for our products . reductions to the defense department budget or decreased usage of aircraft reduces the demand for both new production and replacement spares and could adversely impact our business and our revenues . we are focusing greater efforts on the civilian aircraft market though we still remain dependent upon the military for an overwhelming portion of our revenues . covid -19 on march 11 , 2020 , the world health organization announced that infections caused by the coronavirus disease of 2019 ( “ covid-19 ” ) had become pandemic , and on march 13 , 2020 , the u.s. president announced a national emergency relating to the disease . national , state and local authorities have adopted various regulations and orders , including mandates on the number of people that may gather in one location and closing non-essential businesses . to date , we have been deemed an essential business and have not curtailed our operations . the measures adopted by various governments and agencies , as well as the decision by many individuals and businesses to voluntarily shut down or self-quarantine , had and are expected to continue to have serious adverse impacts on domestic and foreign economies of uncertain severity and duration . the effectiveness of economic stabilization efforts adopted by governments and their willingness to adopt further measures is uncertain . the overall economic impact of the covid-19 pandemic has been highly negative to the general economy and has been particularly negative on the commercial travel industry and commercial aerospace industries . in accordance with the department of defense guidance issued in march 2020 designating the defense industrial base as a critical infrastructure workforce , our facilities have continued to operate in support of essential products and services required to meet national security commitments to the u.s. government and the u.s. military , however , facility closures or work slowdowns or temporary stoppages could occur . story_separator_special_tag the formula to determine the amounts of revolving advances permitted to be borrowed under the snb revolving line of credit is based on a percentage of eligible receivables and inventory ( as defined in the snb facility ) . prior to the increase in the snb term loan described below , the snb term loan provided for monthly principal installments in the amount of $ 45,238 , payable on the first business day of each month , beginning on february 1 , 2020 , with a final payment of any unpaid balance of principal and interest payable on december 30 , 2022. in addition , for so long as the snb term loan remains outstanding , if excess cash flow ( as defined ) is a positive number for any fiscal year , beginning with the year ending december 31 , 2020 , we shall pay to snb an amount equal to the lesser of ( i ) twenty-five percent ( 25 % ) of the excess cash flow for such fiscal year and ( ii ) the outstanding principal balance of the term loan . such payment shall be made to snb and applied to the outstanding principal balance of the term loan , on or prior to the april 15 immediately following such fiscal year . the terms of the snb facility require that , among other things , we maintain a specified fixed charge coverage ratio of 1.25 to 1.00 at the end of each fiscal quarter beginning with the fiscal quarter ending march 31 , 2020. in addition , we are limited in the amount of capital expenditures we can make . in accordance with the snb facility by september 30 , 2020 , we were required to cause the holders of certain subordinated convertible notes to either ( i ) extend the maturity date of such notes to a date more than six months after december 31 , 2022 , or ( ii ) convert the notes into common stock of the company . as of december 31 , 2020 , we were in compliance with all loan covenants . the snb facility also restricts the amount of dividends we may pay to our stockholders . substantially all of our assets are pledged as collateral under the snb facility . 20 2 ) increased term loan to modernize equipment - on november 6 , 2020 , we entered into the first amendment to loan and security agreement , increasing the term loan to $ 5,685,000. this allowed us to finance the acquisition of the new equipment at what we believe to be a reasonable interest rate . the repayment terms of the term loan were amended to provide monthly principal installments in the amount of $ 67,679 beginning on december 1 , 2020 , with a final payment of any unpaid balance of principal and interest payable on december 30 , 2022. we have paid an amendment fee of $ 20,000. as of december 31 , 2020 , our debt to snb in the amount of $ 21,207,000 consisted of the snb revolving line of credit note in the amount of $ 15,649,000 and the snb term loan in the amount of $ 5,558,000. because we believe our fiscal 2021 sales will be higher than the amount achieved in fiscal 2020 , we believe our liquidity in 2021 will improve . nevertheless , our liquidity may be adversely impacted by various risks and uncertainties , including , but not limited to future effects of the covid-19 pandemic and other risks detailed in part1 , item 1a of this annual report . changes in our cash flow during fiscal 2020 and 2019 are discussed further below . cash flow the following table summarizes our net cash flow from operating , investing and financing activities for the periods indicated ( in thousands ) : replace_table_token_7_th the above cash flows include the cash flows from our continuing and discontinued operations . story_separator_special_tag of consolidated financial statements requires estimates and assumptions that affect the reported amounts of assets , liabilities , revenues , expenses and related disclosures . some of those estimates are subjective and complex , and consequently , actual results could differ from those estimates . the following accounting policies and estimates have been highlighted as significant because changes to certain judgements and assumptions inherent in these policies could affect our consolidated financial statements : ● going concern ● inventory valuation ● revenue recognition ● income taxes ● stock-based compensation ● goodwill recently issued accounting pronouncements in august 2020 , the fasb issued asu no . 2020-06 , debt – debt with conversion and other options ( subtopic 470-20 ) and derivatives and hedging – contracts in entity 's own equity ( subtopic 815-40 ) ( “ asu 2020-06 ) , which is intended to address issues identified as a result of the complexity associated with applying gaap for certain financial instruments with characteristics of liabilities and equity . for convertible instruments , asu 2020-06 reduces the number of accounting models for convertible debt instruments and convertible preferred stock , and enhances information transparency by making targeted improvements to the disclosures for convertible instruments and earnings-per-share guidance on the basis of feedback from financial statement users . asu 2020-06 is effective for fiscal years , and interim periods in those fiscal years , beginning after december 15 , 2021. early adoption is permitted , but no earlier than fiscal years beginning after december 15 , 2020 , including interim periods with those fiscal years . the company is evaluating the effect of adopting this new accounting guidance on its financial statements . in december 2019 , the fasb issued asu no . 2019-12 , “ income taxes ( topic 740 ) : simplifying the accounting for income taxes ” ( “ asu 2019-12 ” ) , which is intended to simplify various aspects related to accounting for income taxes . asu 2019-12 removes certain exceptions to the

progressive leasing achieved record revenues of nearly $ 2.0 billion in 2018 , an increase of 27.6 % over 2017 . progressive leasing 's revenue growth is due to a 23.2 % increase in total invoice volume , which was generated through an increase in invoice volume per active door . progressive leasing 's earnings before income taxes increased to $ 175.0 million compared to $ 140.2 million in 2017 , due mainly to its higher revenue . aaron 's business revenues increased to $ 1.79 billion in 2018 compared to $ 1.78 billion in 2017 . aaron 's business lease revenue and fees increased due to the acquisitions of various franchisees during 2017 and 2018 , partially offset by declines in non-retail sales to our franchisees and a 1.5 % decrease in same store sales . earnings before income taxes decreased to $ 84.7 million in 2018 compared to $ 110.6 million in 2017 , primarily due to the $ 20.1 million impairment of our investment in perfecthome , a rent-to-own company in the united kingdom . the company generated cash from operating activities of $ 356.5 million in 2018 compared to $ 159.1 million in 2017 . the increase in net cash from operating activities was impacted by net income tax refunds received of $ 63.8 million during 2018 compared to net income tax payments made of $ 98.3 million in 2017 . the company ended 2018 with $ 15.3 million in cash and $ 373.0 million available on our revolving credit facility . the company returned $ 175.0 million to our shareholders in 2018 through the repurchase of 3.7 million shares and the payment of our quarterly cash dividends , which we have paid for 31 consecutive years . key metrics invoice volume . we believe that invoice volume is a key performance indicator of our progressive leasing segment . invoice volume is defined as the retail price of lease merchandise acquired and then leased to customers during the period , net of returns . the following table presents total invoice volume for the progressive leasing segment : replace_table_token_7_th active doors . progressive leasing active doors are comprised of both ( i ) each retail store location where at least one virtual lease-to-own transaction has been completed during the trailing twelve-month period ; and ( ii ) with respect to an e-commerce merchant , each state where at least one virtual lease-to-own transaction has been completed through that e-commerce merchant during the trailing twelve-month period . the following table presents active doors for the progressive leasing segment : replace_table_token_8_th 34 the company 's franchised and company-operated store activity ( unaudited ) is summarized as follows : replace_table_token_9_th in may 2016 , we sold our 82 company-operated homesmart stores . same store revenues . we believe that changes in same store revenues are a key performance indicator of the aaron 's business . for the year ended december 31 , 2018 , we calculated this amount by comparing revenues for the year ended december 31 , 2018 to revenues for the year ended december 31 , 2017 for all stores open for the entire 24-month period ended december 31 , 2018 , excluding stores that received lease agreements from other acquired , closed or merged stores . same store revenues declined by 1.5 % during the 24-month period ended december 31 , 2018 . key components of earnings before income taxes in this management 's discussion and analysis section , we review our consolidated results . for the years ended december 31 , 2018 and the comparable prior year periods , some of the key revenue , cost and expense items that affected earnings before income taxes were as follows : revenues . we separate our total revenues into six components : ( i ) lease revenues and fees ; ( ii ) retail sales ; ( iii ) non-retail sales ; ( iv ) franchise royalties and fees ; ( v ) interest and fees on loans receivable ; and ( vi ) other . lease revenues and fees include all revenues derived from lease agreements at retail locations serviced by progressive leasing and the aaron 's business company-operated stores and e-commerce platform . retail sales represent sales of both new and returned lease merchandise from our company-operated stores . non-retail sales primarily represent new merchandise sales to our franchisees . franchise royalties and fees represent fees from the sale of franchise rights and royalty payments from franchisees , as well as other related income from our franchised stores . interest and fees on loans receivable primarily represents merchant fees , finance charges and annual and other fees earned on loans originated since the dami acquisition , as well as the accretion of the discount on loans acquired in the acquisition . other revenues primarily relate to revenues from leasing real estate properties to unrelated third parties , as well as other miscellaneous revenues . depreciation of lease merchandise . depreciation of lease merchandise primarily reflects the expense associated with depreciating merchandise held for lease and leased to customers by progressive leasing and our company-operated aaron 's stores and through our e-commerce platform . retail cost of sales . retail cost of sales represents the depreciated cost of merchandise sold through our company-operated stores . non-retail cost of sales . non-retail cost of sales primarily represents the cost of merchandise sold to our franchisees . operating expenses . operating expenses include personnel costs , occupancy costs , store maintenance , provision for lease merchandise write-offs , progressive leasing bad debt expense , shipping and handling , advertising and marketing , the provision for loan losses , intangible asset amortization expense , software licensing expense and third-party consulting expense , among other expenses . 35 restructuring expenses , net . restructuring expenses primarily represent the cost of optimization efforts and cost reduction initiatives related to the aaron 's business , home office and field support functions . story_separator_special_tag interest income decreased to $ 0.5 million in 2018 from $ 1.8 million in 2017 and $ 2.7 million in 2016 primarily due to the discontinuation of accruing interest income related to the perfecthome notes effective april 1 , 2017. interest income in 2018 was also negatively impacted by lower cash and cash equivalent balances throughout 2018 , while interest income in 2017 benefited from higher cash and cash equivalent balances throughout 2017 . interest expense . interest expense decreased to $ 16.4 million in 2018 from $ 20.5 million in 2017 and $ 23.4 million in 2016 due primarily to an average lower outstanding debt balance throughout 2018 and 2017 . 41 impairment of investment . during the year ended december 31 , 2018 , the company recorded an other-than-temporary loss of $ 20.1 million to impair its remaining outstanding investment in perfecthome , a rent-to-own company in the united kingdom . during the second quarter of 2018 , perfecthome 's liquidity deteriorated significantly due to continuing operating losses and the senior lender 's decision to no longer provide additional funding under a secured revolving debt agreement resulting from perfecthome 's default of certain covenants . additionally , the senior lender notified perfecthome in may 2018 of its intent to exercise remedies available under its credit documentation , which included the right to call its outstanding debt . furthermore , the u.k. governing authority for rent-to-own companies , the financial conduct authority , proposed new regulatory measures which could adversely affect perfecthome 's business . in july 2018 , perfecthome entered into the u.k. 's insolvency process and was subsequently acquired by the senior lender . the company believes it will not receive any further payments on its subordinated secured notes . other non-operating ( expense ) income , net . other non-operating ( expense ) income , net includes the impact of foreign currency remeasurement , as well as gains resulting from changes in the cash surrender value of company-owned life insurance related to the company 's deferred compensation plan . included in other non-operating ( expense ) income , net were foreign currency remeasurement losses of $ 0.1 million and $ 3.7 million during 2018 and 2016 , respectively , and gains of $ 2.1 million during 2017 . these net gains and losses result from changes in the value of the u.s. dollar against the british pound and canadian dollar . the changes in the cash surrender value of company-owned life insurance resulted in net losses of $ 1.2 million during 2018 and net gains of $ 1.5 million and $ 0.2 million during 2017 and 2016 , respectively . earnings ( loss ) before income taxes information about our earnings ( loss ) before income tax ( benefit ) expense by reportable segment is as follows : replace_table_token_13_th the factors impacting the change in earnings ( loss ) before income tax expense ( benefit ) are discussed above . income tax expense ( benefit ) the company recorded income tax expense of $ 56.0 million for 2018 , which resulted in an effective tax rate of 22.2 % . the company recorded a net income tax benefit of $ 53.0 million for 2017 , which was the result of the tax act signed into law on december 22 , 2017. the tax act , among other things , ( i ) lowered the u.s. corporate income tax rate from 35 % to 21 % effective january 1 , 2018 ; ( ii ) provided for 100 % expense deduction of certain qualified depreciable assets , including lease merchandise inventory , purchased after september 27 , 2017 ( but would be phased down starting in 2023 ) ; and ( iii ) failed to extend the manufacturing deduction that expired in 2017 under the terms of previous tax law . during the three months ended december 31 , 2017 , the company recorded a net non-cash provisional income tax benefit of $ 137.0 million related to the tax act , which is comprised of an estimated $ 140.0 million remeasurement of deferred tax liabilities at the lower tax rates , partially offset by an estimated $ 3.0 million from the loss of the manufacturing deduction and other impacts . the impact of the tax adjustments recorded in 2018 for the finalization of the tax act analysis was immaterial . the company recorded income tax expense of $ 79.1 million for 2016 , which resulted in an effective tax rate of 36.2 % . the decline in the effective tax rate since 2016 is primarily the result of the lower u.s. corporate tax rate enacted within the tax act . 42 overview of financial position the major changes in the consolidated balance sheet from december 31 , 2017 to december 31 , 2018 , include : cash and cash equivalents decreased $ 35.8 million to $ 15.3 million at december 31 , 2018 primarily due to cash used to fund the 2018 franchisee acquisitions as discussed in note 2 to these consolidated financial statements , scheduled repayments of the company 's unsecured notes and credit facilities , and the return of $ 175.0 million to shareholders in the form of share repurchases and cash dividends . this was partially offset by $ 356.5 million of cash inflows from operating activities and cash inflows from the october 2018 amendment of the company 's term loan facility , resulting in an increase of the term loan facility to $ 225.0 million from the $ 87.5 million remaining principal outstanding . for additional information , refer to the `` liquidity and capital resources `` section below . investments declined due to the full impairment of the perfecthome notes as discussed in note 1 to these consolidated financial statements . lease merchandise increased $ 166.3 million due primarily to an increase in lease merchandise in our aaron 's business as a result of the 2018 franchisee acquisitions as well as increases

cash used in financing activities was $ 129.0 million , $ 211.4 million and $ 153.7 million during the years ended december 31 , 2018 , 2017 and 2016 , respectively . the $ 82.4 million decrease in financing cash outflows in 2018 as compared to 2017 was primarily due to net borrowings of $ 55.9 million in 2018 as compared to net repayments of outstanding debt of $ 135.0 million in 2017 partially offset by : ( i ) a $ 106.2 million increase in company repurchases of outstanding common stock in 2018 compared to 2017 and ( ii ) an $ 11.2 million increase in cash payments to tax authorities for shares withheld from employees as part of our long-term incentive program in 2018 compared to 2017 . the $ 57.7 million increase in financing cash outflows in 2017 as compared to 2016 was primarily due to : ( i ) a $ 28.0 million increase in company repurchases of outstanding common stock in 2017 compared to 2016 and ( ii ) a $ 25.4 million increase in the net repayments of outstanding debt in 2017 compared to 2016 . during 2017 , the company made scheduled repayments of $ 85.0 million on unsecured notes , $ 15.0 million on the term loan facility , and paid $ 53.0 million to pay off the dami credit facility , partially offset by $ 15.6 million in borrowings from the refinanced term loan in september 2017. share repurchases we purchase our stock in the market from time to time as authorized by our board of directors . during the year ended december 31 , 2018 , the company purchased 3,749,493 shares for $ 168.7 million . during the year ended december 31 , 2017 , the company purchased 1,961,442 shares for $ 62.6 million . as of december 31 , 2018 , we have the authority to purchase additional shares up to our remaining authorization limit of $ 331.3 million . dividends we have a consistent history of paying dividends , having paid dividends for 31 consecutive 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. ```cash used in financing activities was $ 129.0 million , $ 211.4 million and $ 153.7 million during the years ended december 31 , 2018 , 2017 and 2016 , respectively . the $ 82.4 million decrease in financing cash outflows in 2018 as compared to 2017 was primarily due to net borrowings of $ 55.9 million in 2018 as compared to net repayments of outstanding debt of $ 135.0 million in 2017 partially offset by : ( i ) a $ 106.2 million increase in company repurchases of outstanding common stock in 2018 compared to 2017 and ( ii ) an $ 11.2 million increase in cash payments to tax authorities for shares withheld from employees as part of our long-term incentive program in 2018 compared to 2017 . the $ 57.7 million increase in financing cash outflows in 2017 as compared to 2016 was primarily due to : ( i ) a $ 28.0 million increase in company repurchases of outstanding common stock in 2017 compared to 2016 and ( ii ) a $ 25.4 million increase in the net repayments of outstanding debt in 2017 compared to 2016 . during 2017 , the company made scheduled repayments of $ 85.0 million on unsecured notes , $ 15.0 million on the term loan facility , and paid $ 53.0 million to pay off the dami credit facility , partially offset by $ 15.6 million in borrowings from the refinanced term loan in september 2017. share repurchases we purchase our stock in the market from time to time as authorized by our board of directors . during the year ended december 31 , 2018 , the company purchased 3,749,493 shares for $ 168.7 million . during the year ended december 31 , 2017 , the company purchased 1,961,442 shares for $ 62.6 million . as of december 31 , 2018 , we have the authority to purchase additional shares up to our remaining authorization limit of $ 331.3 million . dividends we have a consistent history of paying dividends , having paid dividends for 31 consecutive years . ``` Suspicious Activity Report : progressive leasing achieved record revenues of nearly $ 2.0 billion in 2018 , an increase of 27.6 % over 2017 . progressive leasing 's revenue growth is due to a 23.2 % increase in total invoice volume , which was generated through an increase in invoice volume per active door . progressive leasing 's earnings before income taxes increased to $ 175.0 million compared to $ 140.2 million in 2017 , due mainly to its higher revenue . aaron 's business revenues increased to $ 1.79 billion in 2018 compared to $ 1.78 billion in 2017 . aaron 's business lease revenue and fees increased due to the acquisitions of various franchisees during 2017 and 2018 , partially offset by declines in non-retail sales to our franchisees and a 1.5 % decrease in same store sales . earnings before income taxes decreased to $ 84.7 million in 2018 compared to $ 110.6 million in 2017 , primarily due to the $ 20.1 million impairment of our investment in perfecthome , a rent-to-own company in the united kingdom . the company generated cash from operating activities of $ 356.5 million in 2018 compared to $ 159.1 million in 2017 . the increase in net cash from operating activities was impacted by net income tax refunds received of $ 63.8 million during 2018 compared to net income tax payments made of $ 98.3 million in 2017 . the company ended 2018 with $ 15.3 million in cash and $ 373.0 million available on our revolving credit facility . the company returned $ 175.0 million to our shareholders in 2018 through the repurchase of 3.7 million shares and the payment of our quarterly cash dividends , which we have paid for 31 consecutive years . key metrics invoice volume . we believe that invoice volume is a key performance indicator of our progressive leasing segment . invoice volume is defined as the retail price of lease merchandise acquired and then leased to customers during the period , net of returns . the following table presents total invoice volume for the progressive leasing segment : replace_table_token_7_th active doors . progressive leasing active doors are comprised of both ( i ) each retail store location where at least one virtual lease-to-own transaction has been completed during the trailing twelve-month period ; and ( ii ) with respect to an e-commerce merchant , each state where at least one virtual lease-to-own transaction has been completed through that e-commerce merchant during the trailing twelve-month period . the following table presents active doors for the progressive leasing segment : replace_table_token_8_th 34 the company 's franchised and company-operated store activity ( unaudited ) is summarized as follows : replace_table_token_9_th in may 2016 , we sold our 82 company-operated homesmart stores . same store revenues . we believe that changes in same store revenues are a key performance indicator of the aaron 's business . for the year ended december 31 , 2018 , we calculated this amount by comparing revenues for the year ended december 31 , 2018 to revenues for the year ended december 31 , 2017 for all stores open for the entire 24-month period ended december 31 , 2018 , excluding stores that received lease agreements from other acquired , closed or merged stores . same store revenues declined by 1.5 % during the 24-month period ended december 31 , 2018 . key components of earnings before income taxes in this management 's discussion and analysis section , we review our consolidated results . for the years ended december 31 , 2018 and the comparable prior year periods , some of the key revenue , cost and expense items that affected earnings before income taxes were as follows : revenues . we separate our total revenues into six components : ( i ) lease revenues and fees ; ( ii ) retail sales ; ( iii ) non-retail sales ; ( iv ) franchise royalties and fees ; ( v ) interest and fees on loans receivable ; and ( vi ) other . lease revenues and fees include all revenues derived from lease agreements at retail locations serviced by progressive leasing and the aaron 's business company-operated stores and e-commerce platform . retail sales represent sales of both new and returned lease merchandise from our company-operated stores . non-retail sales primarily represent new merchandise sales to our franchisees . franchise royalties and fees represent fees from the sale of franchise rights and royalty payments from franchisees , as well as other related income from our franchised stores . interest and fees on loans receivable primarily represents merchant fees , finance charges and annual and other fees earned on loans originated since the dami acquisition , as well as the accretion of the discount on loans acquired in the acquisition . other revenues primarily relate to revenues from leasing real estate properties to unrelated third parties , as well as other miscellaneous revenues . depreciation of lease merchandise . depreciation of lease merchandise primarily reflects the expense associated with depreciating merchandise held for lease and leased to customers by progressive leasing and our company-operated aaron 's stores and through our e-commerce platform . retail cost of sales . retail cost of sales represents the depreciated cost of merchandise sold through our company-operated stores . non-retail cost of sales . non-retail cost of sales primarily represents the cost of merchandise sold to our franchisees . operating expenses . operating expenses include personnel costs , occupancy costs , store maintenance , provision for lease merchandise write-offs , progressive leasing bad debt expense , shipping and handling , advertising and marketing , the provision for loan losses , intangible asset amortization expense , software licensing expense and third-party consulting expense , among other expenses . 35 restructuring expenses , net . restructuring expenses primarily represent the cost of optimization efforts and cost reduction initiatives related to the aaron 's business , home office and field support functions . story_separator_special_tag interest income decreased to $ 0.5 million in 2018 from $ 1.8 million in 2017 and $ 2.7 million in 2016 primarily due to the discontinuation of accruing interest income related to the perfecthome notes effective april 1 , 2017. interest income in 2018 was also negatively impacted by lower cash and cash equivalent balances throughout 2018 , while interest income in 2017 benefited from higher cash and cash equivalent balances throughout 2017 . interest expense . interest expense decreased to $ 16.4 million in 2018 from $ 20.5 million in 2017 and $ 23.4 million in 2016 due primarily to an average lower outstanding debt balance throughout 2018 and 2017 . 41 impairment of investment . during the year ended december 31 , 2018 , the company recorded an other-than-temporary loss of $ 20.1 million to impair its remaining outstanding investment in perfecthome , a rent-to-own company in the united kingdom . during the second quarter of 2018 , perfecthome 's liquidity deteriorated significantly due to continuing operating losses and the senior lender 's decision to no longer provide additional funding under a secured revolving debt agreement resulting from perfecthome 's default of certain covenants . additionally , the senior lender notified perfecthome in may 2018 of its intent to exercise remedies available under its credit documentation , which included the right to call its outstanding debt . furthermore , the u.k. governing authority for rent-to-own companies , the financial conduct authority , proposed new regulatory measures which could adversely affect perfecthome 's business . in july 2018 , perfecthome entered into the u.k. 's insolvency process and was subsequently acquired by the senior lender . the company believes it will not receive any further payments on its subordinated secured notes . other non-operating ( expense ) income , net . other non-operating ( expense ) income , net includes the impact of foreign currency remeasurement , as well as gains resulting from changes in the cash surrender value of company-owned life insurance related to the company 's deferred compensation plan . included in other non-operating ( expense ) income , net were foreign currency remeasurement losses of $ 0.1 million and $ 3.7 million during 2018 and 2016 , respectively , and gains of $ 2.1 million during 2017 . these net gains and losses result from changes in the value of the u.s. dollar against the british pound and canadian dollar . the changes in the cash surrender value of company-owned life insurance resulted in net losses of $ 1.2 million during 2018 and net gains of $ 1.5 million and $ 0.2 million during 2017 and 2016 , respectively . earnings ( loss ) before income taxes information about our earnings ( loss ) before income tax ( benefit ) expense by reportable segment is as follows : replace_table_token_13_th the factors impacting the change in earnings ( loss ) before income tax expense ( benefit ) are discussed above . income tax expense ( benefit ) the company recorded income tax expense of $ 56.0 million for 2018 , which resulted in an effective tax rate of 22.2 % . the company recorded a net income tax benefit of $ 53.0 million for 2017 , which was the result of the tax act signed into law on december 22 , 2017. the tax act , among other things , ( i ) lowered the u.s. corporate income tax rate from 35 % to 21 % effective january 1 , 2018 ; ( ii ) provided for 100 % expense deduction of certain qualified depreciable assets , including lease merchandise inventory , purchased after september 27 , 2017 ( but would be phased down starting in 2023 ) ; and ( iii ) failed to extend the manufacturing deduction that expired in 2017 under the terms of previous tax law . during the three months ended december 31 , 2017 , the company recorded a net non-cash provisional income tax benefit of $ 137.0 million related to the tax act , which is comprised of an estimated $ 140.0 million remeasurement of deferred tax liabilities at the lower tax rates , partially offset by an estimated $ 3.0 million from the loss of the manufacturing deduction and other impacts . the impact of the tax adjustments recorded in 2018 for the finalization of the tax act analysis was immaterial . the company recorded income tax expense of $ 79.1 million for 2016 , which resulted in an effective tax rate of 36.2 % . the decline in the effective tax rate since 2016 is primarily the result of the lower u.s. corporate tax rate enacted within the tax act . 42 overview of financial position the major changes in the consolidated balance sheet from december 31 , 2017 to december 31 , 2018 , include : cash and cash equivalents decreased $ 35.8 million to $ 15.3 million at december 31 , 2018 primarily due to cash used to fund the 2018 franchisee acquisitions as discussed in note 2 to these consolidated financial statements , scheduled repayments of the company 's unsecured notes and credit facilities , and the return of $ 175.0 million to shareholders in the form of share repurchases and cash dividends . this was partially offset by $ 356.5 million of cash inflows from operating activities and cash inflows from the october 2018 amendment of the company 's term loan facility , resulting in an increase of the term loan facility to $ 225.0 million from the $ 87.5 million remaining principal outstanding . for additional information , refer to the `` liquidity and capital resources `` section below . investments declined due to the full impairment of the perfecthome notes as discussed in note 1 to these consolidated financial statements . lease merchandise increased $ 166.3 million due primarily to an increase in lease merchandise in our aaron 's business as a result of the 2018 franchisee acquisitions as well as increases

the company also assumed the outstanding balance on apple ten 's credit facility totaling $ 111.1 million , which was terminated and repaid in full on september 1 , 2016 with borrowings on the company 's revolving credit facility . all costs related to the merger are being expensed in the period they are incurred and are included in transaction and litigation costs in the company 's consolidated statements of operations . in connection with the merger , the company has incurred approximately $ 29.2 million in merger costs ( including approximately $ 25.1 million of costs incurred to defend and settle the lawsuit related to the merger , which is net of approximately $ 10.0 million of reimbursements from the company 's directors and officers insurance carriers , which is discussed in note 15 titled “ legal proceedings ” in part ii , item 8 , of the consolidated financial statements and notes thereto , appearing elsewhere in this annual report on form 10-k ) for the year ended december 31 , 2016. as contemplated in the merger agreement , in connection with the completion of the merger , the advisory and related party arrangements with respect to apple ten and its advisors were terminated . 38 index see note 2 titled “ merger with apple reit ten , inc. ” in part ii , item 8 , of the consolidated financial statements and notes thereto , appearing elsewhere in this annual report on form 10-k for additional information concerning the merger with apple ten . other acquisitions and dispositions the company continually monitors market conditions and attempts to maximize shareholder value by investing in properties that it believes provide superior value in the long term . consistent with this strategy and the company 's focus on investing in select service hotels , in addition to completing the apple ten merger in the third quarter of 2016 , the company also acquired a newly constructed 128-room home2 suites hotel in atlanta , georgia on july 1 , 2016 , the same day the hotel opened for business , for a purchase price of approximately $ 24.6 million . the purchase price for this property was funded through borrowings on the company 's revolving credit facility . as of december 31 , 2016 , the company had outstanding contracts for the potential purchase of four additional hotels for a total purchase price of $ 100.6 million . one of the four , the newly constructed fort worth , texas courtyard hotel , was acquired on february 2 , 2017 , the same day the hotel opened for business . the remaining three hotels are under construction and are planned to be completed and opened for business over the next nine to 18 months from december 31 , 2016 , at which time closing on these hotels is expected to occur . additionally , for its existing portfolio , the company monitors each property 's profitability , market conditions and capital requirements and attempts to maximize shareholder value by disposing of properties when it believes that superior value can be provided by the proceeds from the sale of the property . as a result , during the third quarter of 2016 , the company identified two properties for potential sale ( its 224-room hilton hotel in dallas , texas and its 226-room marriott hotel in chesapeake , virginia ) , and in october 2016 , the company entered into separate contracts for the sale of these properties . due to the change in the anticipated hold period for each of these hotels , the company recognized an impairment loss of approximately $ 5.5 million during the third quarter of 2016 to adjust the basis of the chesapeake , virginia marriott to its estimated fair value . in december 2016 , the company completed the sale of the chesapeake , virginia marriott , resulting in a loss of approximately $ 0.2 million , which is included in the company 's consolidated statements of operations for the year ended december 31 , 2016. at december 31 , 2016 , the dallas , texas hilton was under contract to be sold for approximately $ 56.1 million and was classified as held for sale in the company 's consolidated balance sheet . under the contract , at closing , which is expected to be during the first half of 2017 , the mortgage loan secured by the dallas , texas hilton hotel with an outstanding balance of approximately $ 27.2 million as of december 31 , 2016 will be assumed by the buyer with the buyer receiving a credit for the amount assumed . the sale of these properties does not represent a strategic shift that has , or will have , a major effect on the company 's operations and financial results , and therefore the operating results of these properties are included in income from continuing operations for the three years ended december 31 , 2016. the proceeds from the sales were or will be used to pay down borrowings on the company 's $ 540 million revolving credit facility . see note 4 titled “ investment in real estate ” and note 5 titled “ assets held for sale and dispositions ” in part ii , item 8 , of the consolidated financial statements and notes thereto , appearing elsewhere in this annual report on form 10-k for additional information concerning these dispositions . hotel operations although hotel performance can be influenced by many factors including local competition , local and general economic conditions in the united states and the performance of individual managers assigned to each hotel , performance of the company 's hotels as compared to other hotels within their respective local markets , in general , has met the company 's expectations for the period owned . story_separator_special_tag the increase in interest expense was primarily due to an increase in the company 's average outstanding borrowings during 2016 as compared to 2015 which is primarily attributable to ( a ) mortgage debt assumed in the apple ten merger effective september 1 , 2016 and ( b ) borrowings to fund ( i ) the cash payment portion of the apple ten merger , ( ii ) the repayment of apple ten 's outstanding balance on its extinguished credit facility assumed in the merger , ( iii ) the acquisition of eight hotels ( seven between june 1 , 2015 and october 31 , 2015 and one on july 1 , 2016 ) and ( iv ) the company 's tender offer and other share repurchases in 2016 and 2015. the impact of higher debt balances was partially offset by a reduction in the average interest rate incurred on the company 's total outstanding debt . also , interest expense in 2015 includes a loss of approximately $ 0.4 million recorded to interest and other expense , net related to the change in fair value in the company 's interest 43 index rate swap terminated in may 2015 , from the time that it was no longer designated as a cash flow hedge during the first quarter of 2015 through the termination date . results of operations for years 2015 and 2014 as of december 31 , 2015 , the company owned 179 hotels with 22,961 rooms as compared to 191 hotels with a total of 23,790 rooms as of december 31 , 2014. results of operations are included only for the period of ownership for hotels acquired or disposed of during 2015 and 2014 . during 2015 , the company acquired one new and six existing hotels ( between june 1 , 2015 and october 31 , 2015 ) and sold 19 hotels ( 18 of which were sold on february 26 , 2015 and one of which was sold on june 1 , 2015 ) . during 2014 , the company acquired 100 hotels , including 99 continuing hotels with the a7 and a8 mergers , effective march 1 , 2014 , and opened two newly constructed hotels during 2014. as a result , the comparability of results for the years ended december 31 , 2015 and 2014 as discussed below is significantly impacted by these transactions . revenues for the years ended december 31 , 2015 and 2014 , the company had total revenue of $ 898.3 million and $ 803.9 million , respectively . for the years ended december 31 , 2015 and 2014 , respectively , comparable hotels achieved combined average occupancy of 76.9 % and 75.6 % , adr of $ 130.05 and $ 123.95 and revpar of $ 100.07 and $ 93.72. during 2015 , as the united states economy continued to strengthen , the company experienced an increase in average occupancy of approximately 1.7 % and an increase in adr of approximately 4.9 % for its comparable hotels as compared to 2014. hotel operating expense for the years ended december 31 , 2015 and 2014 , respectively , hotel operating expense totaled $ 507.1 million and $ 455.9 million or 56.4 % and 56.7 % of total revenue for each respective period . overall hotel operational expenses for 2015 primarily reflect the impact of the a7 and a8 mergers and the two newly constructed hotels that opened in december 2014 for the entire period , the 19 hotels sold until the respective dates of sale , and the seven hotels acquired in 2015 from their respective dates of acquisition ; and for 2014 reflect the a7 and a8 mergers only for the months of march through december and the 19 hotels sold in 2015 ( of which 13 were acquired in the a7 and a8 mergers ) for the entire period . for the company 's comparable hotels , operating expense as a percentage of revenue decreased slightly for the year ended december 31 , 2015 as compared to the year ended december 31 , 2014 primarily due to the overall increase in adr for these hotels and the company 's success in reducing , relative to revenue increases , certain labor costs , hotel supply costs , maintenance costs and utility costs . the improvements in hotel operating expenses as a percentage of revenue were negatively impacted by disruption from and costs related to the company 's transition of six management contracts to consolidate management within specific markets and to better access regional expertise during 2015. property taxes , insurance and other expense property taxes , insurance and other expense for the years ended december 31 , 2015 and 2014 totaled $ 46.0 million and $ 40.0 million , respectively , or 5.1 % and 5.0 % of total revenue , respectively . for the company 's comparable hotels , real estate taxes during 2015 increased due to the reassessment of property values by localities related to the improved economy , partially offset by a decrease due to successful appeals of tax assessments for other locations . property taxes , insurance and other expense in 2015 and 2014 was reduced by approximately $ 1.8 million and $ 0.2 million , respectively , in settlement proceeds received , net of costs , from the deepwater horizon economic and property damages settlement program . ground lease expense ground lease expense for the years ended december 31 , 2015 and 2014 was $ 10.0 million and $ 8.3 million , respectively . ground lease expense primarily represents the expense incurred by the company to lease land for 10 of its hotel properties as of december 31 , 2015 , nine of which were acquired effective march 1 , 2014 with the a7 and a8 mergers . 44 index general and administrative expense general and administrative expense for the years ended december 31 , 2015 and 2014 was $ 19.6 million and $ 20.9

capital resources the company 's principal sources of liquidity are the operating cash flow generated from the company 's properties and availability under its unsecured “ $ 965 million credit facility ” , which is comprised of ( i ) a $ 540 million revolving credit facility with an initial maturity date of may 18 , 2019 , and ( ii ) a $ 425 million term loan facility with a maturity date of may 18 , 2020 , consisting of three term loans , all funded during 2015. subject to certain conditions and fees , the maturity of the $ 540 million revolving credit facility may be extended one year and the total $ 965 million credit facility may be increased to $ 1.25 billion . the revolving credit facility , which as of december 31 , 2016 had unused borrowing capacity of approximately $ 270.0 million , is available for share repurchases , acquisitions , hotel renovations and development , working capital and other general corporate funding purposes , including the payment of distributions to shareholders . as of december 31 , 2016 , the company 's $ 540 million revolving credit facility had an outstanding principal balance of approximately $ 270.0 million with an annual variable interest rate of approximately 2.32 % . the credit agreement governing the $ 965 million credit facility contains mandatory prepayment requirements , customary affirmative covenants , negative covenants and events of default . the credit agreement requires that the company comply with various covenants , which include , among others , a minimum tangible net worth , maximum debt limits , minimum interest and fixed charge coverage ratios , limits on dividend payments and share repurchases and restrictions on certain investments . see note 6 titled “ debt ” in part ii , item 8 , of the consolidated financial statements and notes thereto , appearing elsewhere in this annual report on form 10-k for a summary of the financial and restrictive covenants as defined in the credit agreement and a description of the company 's other debt instruments .

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 's principal sources of liquidity are the operating cash flow generated from the company 's properties and availability under its unsecured “ $ 965 million credit facility ” , which is comprised of ( i ) a $ 540 million revolving credit facility with an initial maturity date of may 18 , 2019 , and ( ii ) a $ 425 million term loan facility with a maturity date of may 18 , 2020 , consisting of three term loans , all funded during 2015. subject to certain conditions and fees , the maturity of the $ 540 million revolving credit facility may be extended one year and the total $ 965 million credit facility may be increased to $ 1.25 billion . the revolving credit facility , which as of december 31 , 2016 had unused borrowing capacity of approximately $ 270.0 million , is available for share repurchases , acquisitions , hotel renovations and development , working capital and other general corporate funding purposes , including the payment of distributions to shareholders . as of december 31 , 2016 , the company 's $ 540 million revolving credit facility had an outstanding principal balance of approximately $ 270.0 million with an annual variable interest rate of approximately 2.32 % . the credit agreement governing the $ 965 million credit facility contains mandatory prepayment requirements , customary affirmative covenants , negative covenants and events of default . the credit agreement requires that the company comply with various covenants , which include , among others , a minimum tangible net worth , maximum debt limits , minimum interest and fixed charge coverage ratios , limits on dividend payments and share repurchases and restrictions on certain investments . see note 6 titled “ debt ” in part ii , item 8 , of the consolidated financial statements and notes thereto , appearing elsewhere in this annual report on form 10-k for a summary of the financial and restrictive covenants as defined in the credit agreement and a description of the company 's other debt instruments . ``` Suspicious Activity Report : the company also assumed the outstanding balance on apple ten 's credit facility totaling $ 111.1 million , which was terminated and repaid in full on september 1 , 2016 with borrowings on the company 's revolving credit facility . all costs related to the merger are being expensed in the period they are incurred and are included in transaction and litigation costs in the company 's consolidated statements of operations . in connection with the merger , the company has incurred approximately $ 29.2 million in merger costs ( including approximately $ 25.1 million of costs incurred to defend and settle the lawsuit related to the merger , which is net of approximately $ 10.0 million of reimbursements from the company 's directors and officers insurance carriers , which is discussed in note 15 titled “ legal proceedings ” in part ii , item 8 , of the consolidated financial statements and notes thereto , appearing elsewhere in this annual report on form 10-k ) for the year ended december 31 , 2016. as contemplated in the merger agreement , in connection with the completion of the merger , the advisory and related party arrangements with respect to apple ten and its advisors were terminated . 38 index see note 2 titled “ merger with apple reit ten , inc. ” in part ii , item 8 , of the consolidated financial statements and notes thereto , appearing elsewhere in this annual report on form 10-k for additional information concerning the merger with apple ten . other acquisitions and dispositions the company continually monitors market conditions and attempts to maximize shareholder value by investing in properties that it believes provide superior value in the long term . consistent with this strategy and the company 's focus on investing in select service hotels , in addition to completing the apple ten merger in the third quarter of 2016 , the company also acquired a newly constructed 128-room home2 suites hotel in atlanta , georgia on july 1 , 2016 , the same day the hotel opened for business , for a purchase price of approximately $ 24.6 million . the purchase price for this property was funded through borrowings on the company 's revolving credit facility . as of december 31 , 2016 , the company had outstanding contracts for the potential purchase of four additional hotels for a total purchase price of $ 100.6 million . one of the four , the newly constructed fort worth , texas courtyard hotel , was acquired on february 2 , 2017 , the same day the hotel opened for business . the remaining three hotels are under construction and are planned to be completed and opened for business over the next nine to 18 months from december 31 , 2016 , at which time closing on these hotels is expected to occur . additionally , for its existing portfolio , the company monitors each property 's profitability , market conditions and capital requirements and attempts to maximize shareholder value by disposing of properties when it believes that superior value can be provided by the proceeds from the sale of the property . as a result , during the third quarter of 2016 , the company identified two properties for potential sale ( its 224-room hilton hotel in dallas , texas and its 226-room marriott hotel in chesapeake , virginia ) , and in october 2016 , the company entered into separate contracts for the sale of these properties . due to the change in the anticipated hold period for each of these hotels , the company recognized an impairment loss of approximately $ 5.5 million during the third quarter of 2016 to adjust the basis of the chesapeake , virginia marriott to its estimated fair value . in december 2016 , the company completed the sale of the chesapeake , virginia marriott , resulting in a loss of approximately $ 0.2 million , which is included in the company 's consolidated statements of operations for the year ended december 31 , 2016. at december 31 , 2016 , the dallas , texas hilton was under contract to be sold for approximately $ 56.1 million and was classified as held for sale in the company 's consolidated balance sheet . under the contract , at closing , which is expected to be during the first half of 2017 , the mortgage loan secured by the dallas , texas hilton hotel with an outstanding balance of approximately $ 27.2 million as of december 31 , 2016 will be assumed by the buyer with the buyer receiving a credit for the amount assumed . the sale of these properties does not represent a strategic shift that has , or will have , a major effect on the company 's operations and financial results , and therefore the operating results of these properties are included in income from continuing operations for the three years ended december 31 , 2016. the proceeds from the sales were or will be used to pay down borrowings on the company 's $ 540 million revolving credit facility . see note 4 titled “ investment in real estate ” and note 5 titled “ assets held for sale and dispositions ” in part ii , item 8 , of the consolidated financial statements and notes thereto , appearing elsewhere in this annual report on form 10-k for additional information concerning these dispositions . hotel operations although hotel performance can be influenced by many factors including local competition , local and general economic conditions in the united states and the performance of individual managers assigned to each hotel , performance of the company 's hotels as compared to other hotels within their respective local markets , in general , has met the company 's expectations for the period owned . story_separator_special_tag the increase in interest expense was primarily due to an increase in the company 's average outstanding borrowings during 2016 as compared to 2015 which is primarily attributable to ( a ) mortgage debt assumed in the apple ten merger effective september 1 , 2016 and ( b ) borrowings to fund ( i ) the cash payment portion of the apple ten merger , ( ii ) the repayment of apple ten 's outstanding balance on its extinguished credit facility assumed in the merger , ( iii ) the acquisition of eight hotels ( seven between june 1 , 2015 and october 31 , 2015 and one on july 1 , 2016 ) and ( iv ) the company 's tender offer and other share repurchases in 2016 and 2015. the impact of higher debt balances was partially offset by a reduction in the average interest rate incurred on the company 's total outstanding debt . also , interest expense in 2015 includes a loss of approximately $ 0.4 million recorded to interest and other expense , net related to the change in fair value in the company 's interest 43 index rate swap terminated in may 2015 , from the time that it was no longer designated as a cash flow hedge during the first quarter of 2015 through the termination date . results of operations for years 2015 and 2014 as of december 31 , 2015 , the company owned 179 hotels with 22,961 rooms as compared to 191 hotels with a total of 23,790 rooms as of december 31 , 2014. results of operations are included only for the period of ownership for hotels acquired or disposed of during 2015 and 2014 . during 2015 , the company acquired one new and six existing hotels ( between june 1 , 2015 and october 31 , 2015 ) and sold 19 hotels ( 18 of which were sold on february 26 , 2015 and one of which was sold on june 1 , 2015 ) . during 2014 , the company acquired 100 hotels , including 99 continuing hotels with the a7 and a8 mergers , effective march 1 , 2014 , and opened two newly constructed hotels during 2014. as a result , the comparability of results for the years ended december 31 , 2015 and 2014 as discussed below is significantly impacted by these transactions . revenues for the years ended december 31 , 2015 and 2014 , the company had total revenue of $ 898.3 million and $ 803.9 million , respectively . for the years ended december 31 , 2015 and 2014 , respectively , comparable hotels achieved combined average occupancy of 76.9 % and 75.6 % , adr of $ 130.05 and $ 123.95 and revpar of $ 100.07 and $ 93.72. during 2015 , as the united states economy continued to strengthen , the company experienced an increase in average occupancy of approximately 1.7 % and an increase in adr of approximately 4.9 % for its comparable hotels as compared to 2014. hotel operating expense for the years ended december 31 , 2015 and 2014 , respectively , hotel operating expense totaled $ 507.1 million and $ 455.9 million or 56.4 % and 56.7 % of total revenue for each respective period . overall hotel operational expenses for 2015 primarily reflect the impact of the a7 and a8 mergers and the two newly constructed hotels that opened in december 2014 for the entire period , the 19 hotels sold until the respective dates of sale , and the seven hotels acquired in 2015 from their respective dates of acquisition ; and for 2014 reflect the a7 and a8 mergers only for the months of march through december and the 19 hotels sold in 2015 ( of which 13 were acquired in the a7 and a8 mergers ) for the entire period . for the company 's comparable hotels , operating expense as a percentage of revenue decreased slightly for the year ended december 31 , 2015 as compared to the year ended december 31 , 2014 primarily due to the overall increase in adr for these hotels and the company 's success in reducing , relative to revenue increases , certain labor costs , hotel supply costs , maintenance costs and utility costs . the improvements in hotel operating expenses as a percentage of revenue were negatively impacted by disruption from and costs related to the company 's transition of six management contracts to consolidate management within specific markets and to better access regional expertise during 2015. property taxes , insurance and other expense property taxes , insurance and other expense for the years ended december 31 , 2015 and 2014 totaled $ 46.0 million and $ 40.0 million , respectively , or 5.1 % and 5.0 % of total revenue , respectively . for the company 's comparable hotels , real estate taxes during 2015 increased due to the reassessment of property values by localities related to the improved economy , partially offset by a decrease due to successful appeals of tax assessments for other locations . property taxes , insurance and other expense in 2015 and 2014 was reduced by approximately $ 1.8 million and $ 0.2 million , respectively , in settlement proceeds received , net of costs , from the deepwater horizon economic and property damages settlement program . ground lease expense ground lease expense for the years ended december 31 , 2015 and 2014 was $ 10.0 million and $ 8.3 million , respectively . ground lease expense primarily represents the expense incurred by the company to lease land for 10 of its hotel properties as of december 31 , 2015 , nine of which were acquired effective march 1 , 2014 with the a7 and a8 mergers . 44 index general and administrative expense general and administrative expense for the years ended december 31 , 2015 and 2014 was $ 19.6 million and $ 20.9

in 2007 and 2006 , azek products have accounted for a majority of our net sales . through our two-step , dual distribution system , we have established an extensive network of distributors and dealers throughout the united states and canada . our strategy continues to be to maintain two distributors in each geographic region that we enter . as of december 31 , 2007 , our distributors were selling our products to over 2,100 local stocking dealers who frequently request our products by brand name . in the first quarter of each year , we conduct an “ early buy ” sales promotion that encourages distributors to stock azek products through the use of incentive discounts , typically in the range of 1 % to 6 % . over the course of 2007 we have expanded azek building products through internal development of additional product offerings as well as through the procell acquisition in 2007 and the composatron acquisition in 2008. with the introduction of azek moulding and azek deck in 2007 , we continued to establish ourselves as a premier provider of branded building products . our goal is to continue to expand our product offerings through the development of additional trim , moulding and decking products , as well as through the introduction of additional product lines . across all of our target markets , we are focused on capitalizing on the functional advantages of our synthetic products relative to competing wood , fiber and metal products . in this regard , we have developed the leading brand in the synthetic bathroom and locker room products market , comtec . our product offerings which include comtec , capitol , hiny hider , evertuff and tufftec brands , and are sold to similar primary end-markets , which include schools , stadiums , prisons , retail locations and other high-traffic environments . through scranton product 's widely established distribution network , we are able to service our customers through representatives in all 50 states . although we were able to successfully integrate the santana acquisition and benefit from various manufacturing synergies through integration , we experienced some erosion in our customer base in 2007. our current focus is to regain market share within the commercial building markets , by actively engaging key dealers and productive sales representatives prior to the 2008 bid season . we are also focusing on improving our customer service experience by making improvements within our customer service departments . our focus is also to continue to develop leading brands for 2008 including new locker designs as well as a line of fire rated partitions . we believe that these additional goals will allow us to continue our market penetration into the commercial building market . dry petrochemical resins , primarily pvc , hdpe and pp , represented a majority of our raw material costs and cost of sales in 2007. throughout our 24-year history , resin prices have been subject to cyclical price fluctuations . due to increases in natural gas and crude oil prices and demand in the broader economy , dry petrochemical resin prices have risen to higher levels than in previous years . although , our annual average cost of resin decreased by approximately 11.2 % from the year ended december 31 , 2006 to december 31 , 2007 , resin prices have steadily risen from their low point in the first half of 2007. in the past , we have been able to partially offset the impact of significantly higher resin costs through increased sales volumes , improved productivity , and selling price increases in all of our product lines . we have not taken any significant pricing actions since we took several pricing actions late in the third quarter and early in the fourth quarter of 2005 that were used to mitigate higher resin prices . these pricing actions have not resulted in reduced volume growth in our products , on a period to period basis , through 2007. in addition , we have developed significant scale in purchasing resin , which we believe places us in a better cost position relative to many of our competitors . with respect to our basic non-fabricated products , we have been moderately successful in passing through resin cost increases to our customers . our azek building products are sold in various building and industrial end markets . azek products are sold in various stages of the home building construction market , including remodeling and renovation and new construction , thereby diversifying sales across the construction cycle . celtec products are sold to several industrial sectors , thereby diversifying sales across sectors sensitive to differing economic factors . scranton products fabricated and non-fabricated products are sold to various non-residential construction and industrial markets further adding to our end market diversity . in 2007 , approximately 25 % of our products were sold for new construction , 34 % were for remodeling , and 22 % were in the commercial building sector , with the remaining 19 % sold to various industrial end markets . over 98 % and 96 % of our sales in 2007 and 2006 , respectively , were in the united states . 27 we experienced economic factors that had affected our growth in the residential building market . sales were stronger in the first three quarters of 2007 due to the procell acquisition and the expansion of our azek sales network that was partially offset by the impact of a declining market for residential construction . these factors combined to slow azek trim , millwork and moulding sales as dealers and distributors worked through inventory purchased in azek 's successful early-buy program in the first quarter of 2007. by late second quarter , distributors and dealers had worked through their early-buy inventories causing order demand for azek trim , millwork and mouldings to improve . story_separator_special_tag year ended december 31 , 2006 compared with year ended december 31 , 2005 32 the following table summarizes certain financial information relating to the successor and predecessor operating results that have been derived from their consolidated financial statements : replace_table_token_4_th ( a ) represents the mathematical addition of the predecessor period january 1 , 2005 to may 10 , 2005 and the successor period may 11 , 2005 to december 31 , 2005.the combined predecessor and successor results of operations are not indicative of our future results of operations or results of operations that would have actually occurred had the transaction with the predecessor been consummated as of january 1 , 2005 , due to the fair values assigned to our assets and liabilities , the changes made in the related estimated useful lives of the assets at may 11 , 2005 , as well as changes in interest and income tax expenses as a result of the transaction . the following table summarizes certain information relating to the successor and predecessor operating results as a percentage of net sales and has been derived from the financial information presented above . we believe this presentation is useful to investors in comparing historical results . certain amounts in the table may not sum due to the rounding of individual components . replace_table_token_5_th _ ( a ) represents the mathematical addition of the predecessor period january 1 , 2005 to may 10 , 2005 and the successor period may 11 , 2005 to december 31 , 2005. the combined predecessor and successor results of operations are not indicative of our future results of operations or results of operations that would have actually occurred had the 33 transaction with the predecessor been consummated as of january 1 , 2005 , due to the fair values assigned to our assets and liabilities , the changes made in the related estimated useful lives of the assets at may 11 , 2005 , as well as changes in interest and income tax expenses as a result of the transaction . net sales . net sales increased by $ 39.2 million , or 17.6 % , to $ 261.8 million for the year ended december 31 , 2006 , from $ 222.6 million for the year ended december 31 , 2005 due to increased volumes and higher average selling prices . overall , azek building products net sales increased 8.4 % from december 31 , 2006 compared to december 31 , 2005 , and scranton products net sales increased 36.6 % from december 31 , 2006 compared to december 31 , 2005. we sold 186.7 million pounds of product during the year ended december 31 , 2006 , which was a 3.5 % increase from the 180.3 million pounds sold during the year ended december 31 , 2005. volume growth was primarily attributable to the santana acquisition and year over year growth within azek building products , offset by volume decline in scranton products industrial building products . in addition to volume growth , revenues increased as a result of the full year benefit from price increases across all of our product lines , implemented in the second half of 2005. cost of sales . cost of sales increased by $ 21.5 million , or 12.5 % , to $ 193.4 million for the year ended december 31 , 2006 from $ 171.9 million for the same period in 2005. the increase was primarily attributable to increased volumes from the santana acquisition , as well as an increase in average resin prices per pound of 5.6 % in the year ended december 31 , 2006 compared to the same period in 2005. despite the period over period increase in average resin prices , resin costs have significantly declined from their peak levels in the fall of 2005. in 2005 , our cost of sales included the effect of the fair value adjustment of acquired inventories recorded in connection with the transaction . the $ 5.2 million non-cash fair value adjustment increased acquired inventory values to estimated selling price at may 11 , 2005. this increase was then recognized as an increase to cost of sales during the period may 11 , 2005 to december 31 , 2005 as the related inventory was sold . gross margin . gross margin increased by $ 17.7 million , or 34.9 % , to $ 68.4 million for the year ended december 31 , 2006 from $ 50.7 million for the same period of 2005. this increase was mainly attributable to increases in selling prices which allowed us to offset the increase in average resin costs . gross margin as a percent of net sales increased to 26.1 % for the year ended december 31 , 2006 from 22.8 % for the same period in 2005. this increase was mainly due to the increase in selling prices and volume growth . the increase in gross margin in 2006 from 2005 was also attributable to the impact of the fair value adjustment we incurred in 2005 as a result of the transaction as discussed above . selling , general and administrative expenses . selling , general and administrative expenses decreased by $ 0.5 million , or 1.3 % , to $ 40.2 million , or 15.4 % of net sales for the year ended december 31 , 2006 from $ 40.8 million , or 18.3 % of net sales for the same period in 2005. the decrease in selling , general and administrative expenses from 2005 was primarily attributable to a one-time compensation charge of approximately $ 12.8 million relating to the vesting of certain restricted stock units upon the closing of the transaction in 2005. this decrease was primarily offset by the addition of santana , increased sales staff and marketing efforts for both our residential and commercial building product lines , an approximately $ 0.9 million increase in amortization of intangible assets recorded in conjunction with the transaction and

liquidity and capital resources our primary cash needs are working capital , capital expenditures and debt service . we have historically financed these cash requirements through internally-generated cash flow and debt financings . we also have a senior secured revolving credit facility which provides additional liquidity to support our growth . in addition , we may also issue additional equity and or debt to finance acquisitions in the future . net cash provided by operating activities was $ 21.3 million , $ 1.9 million and $ 35.1 million for the years ended december 31 , 2007 , 2006 and 2005 , respectively . the increase in cash provided by operating activities in the year 2007 was primarily due to higher earnings and non-cash expenses including depreciation and amortization , as well as continued improvements in receivables and accounts payables management , offset by increased levels of finished goods related to our winter buy at the end of 2007 compared to 2006. the decrease in cash provided by operating activities from 2005 to 2006 was primarily due to higher interest payments on our long-term debt , increased raw material costs , reduction in levels of payables at the end of 2006 compared to 2005 ( mainly for resin purchases made at the end of 2005 ) and higher working capital levels to support growth . these factors were only partially offset by improved finished good inventory management . net cash used in investing activities was $ 70.6 million , $ 52.0 million and $ 234.5 million for the years ended december 31 , 2007 , 2006 and 2005 , respectively . in 2007 , cash used in investing activities of $ 58.2 million related to the procell acquisition completed on january 31 , 2007. the remaining cash used in investing activities in 2007 related to $ 14.4 million in capital expenditures primarily for the capacity expansion at our foley alabama manufacturing facility . on may 10 , 2007 we also sold one of our manufacturing facilities for approximately $ 2.0 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 our primary cash needs are working capital , capital expenditures and debt service . we have historically financed these cash requirements through internally-generated cash flow and debt financings . we also have a senior secured revolving credit facility which provides additional liquidity to support our growth . in addition , we may also issue additional equity and or debt to finance acquisitions in the future . net cash provided by operating activities was $ 21.3 million , $ 1.9 million and $ 35.1 million for the years ended december 31 , 2007 , 2006 and 2005 , respectively . the increase in cash provided by operating activities in the year 2007 was primarily due to higher earnings and non-cash expenses including depreciation and amortization , as well as continued improvements in receivables and accounts payables management , offset by increased levels of finished goods related to our winter buy at the end of 2007 compared to 2006. the decrease in cash provided by operating activities from 2005 to 2006 was primarily due to higher interest payments on our long-term debt , increased raw material costs , reduction in levels of payables at the end of 2006 compared to 2005 ( mainly for resin purchases made at the end of 2005 ) and higher working capital levels to support growth . these factors were only partially offset by improved finished good inventory management . net cash used in investing activities was $ 70.6 million , $ 52.0 million and $ 234.5 million for the years ended december 31 , 2007 , 2006 and 2005 , respectively . in 2007 , cash used in investing activities of $ 58.2 million related to the procell acquisition completed on january 31 , 2007. the remaining cash used in investing activities in 2007 related to $ 14.4 million in capital expenditures primarily for the capacity expansion at our foley alabama manufacturing facility . on may 10 , 2007 we also sold one of our manufacturing facilities for approximately $ 2.0 million . ``` Suspicious Activity Report : in 2007 and 2006 , azek products have accounted for a majority of our net sales . through our two-step , dual distribution system , we have established an extensive network of distributors and dealers throughout the united states and canada . our strategy continues to be to maintain two distributors in each geographic region that we enter . as of december 31 , 2007 , our distributors were selling our products to over 2,100 local stocking dealers who frequently request our products by brand name . in the first quarter of each year , we conduct an “ early buy ” sales promotion that encourages distributors to stock azek products through the use of incentive discounts , typically in the range of 1 % to 6 % . over the course of 2007 we have expanded azek building products through internal development of additional product offerings as well as through the procell acquisition in 2007 and the composatron acquisition in 2008. with the introduction of azek moulding and azek deck in 2007 , we continued to establish ourselves as a premier provider of branded building products . our goal is to continue to expand our product offerings through the development of additional trim , moulding and decking products , as well as through the introduction of additional product lines . across all of our target markets , we are focused on capitalizing on the functional advantages of our synthetic products relative to competing wood , fiber and metal products . in this regard , we have developed the leading brand in the synthetic bathroom and locker room products market , comtec . our product offerings which include comtec , capitol , hiny hider , evertuff and tufftec brands , and are sold to similar primary end-markets , which include schools , stadiums , prisons , retail locations and other high-traffic environments . through scranton product 's widely established distribution network , we are able to service our customers through representatives in all 50 states . although we were able to successfully integrate the santana acquisition and benefit from various manufacturing synergies through integration , we experienced some erosion in our customer base in 2007. our current focus is to regain market share within the commercial building markets , by actively engaging key dealers and productive sales representatives prior to the 2008 bid season . we are also focusing on improving our customer service experience by making improvements within our customer service departments . our focus is also to continue to develop leading brands for 2008 including new locker designs as well as a line of fire rated partitions . we believe that these additional goals will allow us to continue our market penetration into the commercial building market . dry petrochemical resins , primarily pvc , hdpe and pp , represented a majority of our raw material costs and cost of sales in 2007. throughout our 24-year history , resin prices have been subject to cyclical price fluctuations . due to increases in natural gas and crude oil prices and demand in the broader economy , dry petrochemical resin prices have risen to higher levels than in previous years . although , our annual average cost of resin decreased by approximately 11.2 % from the year ended december 31 , 2006 to december 31 , 2007 , resin prices have steadily risen from their low point in the first half of 2007. in the past , we have been able to partially offset the impact of significantly higher resin costs through increased sales volumes , improved productivity , and selling price increases in all of our product lines . we have not taken any significant pricing actions since we took several pricing actions late in the third quarter and early in the fourth quarter of 2005 that were used to mitigate higher resin prices . these pricing actions have not resulted in reduced volume growth in our products , on a period to period basis , through 2007. in addition , we have developed significant scale in purchasing resin , which we believe places us in a better cost position relative to many of our competitors . with respect to our basic non-fabricated products , we have been moderately successful in passing through resin cost increases to our customers . our azek building products are sold in various building and industrial end markets . azek products are sold in various stages of the home building construction market , including remodeling and renovation and new construction , thereby diversifying sales across the construction cycle . celtec products are sold to several industrial sectors , thereby diversifying sales across sectors sensitive to differing economic factors . scranton products fabricated and non-fabricated products are sold to various non-residential construction and industrial markets further adding to our end market diversity . in 2007 , approximately 25 % of our products were sold for new construction , 34 % were for remodeling , and 22 % were in the commercial building sector , with the remaining 19 % sold to various industrial end markets . over 98 % and 96 % of our sales in 2007 and 2006 , respectively , were in the united states . 27 we experienced economic factors that had affected our growth in the residential building market . sales were stronger in the first three quarters of 2007 due to the procell acquisition and the expansion of our azek sales network that was partially offset by the impact of a declining market for residential construction . these factors combined to slow azek trim , millwork and moulding sales as dealers and distributors worked through inventory purchased in azek 's successful early-buy program in the first quarter of 2007. by late second quarter , distributors and dealers had worked through their early-buy inventories causing order demand for azek trim , millwork and mouldings to improve . story_separator_special_tag year ended december 31 , 2006 compared with year ended december 31 , 2005 32 the following table summarizes certain financial information relating to the successor and predecessor operating results that have been derived from their consolidated financial statements : replace_table_token_4_th ( a ) represents the mathematical addition of the predecessor period january 1 , 2005 to may 10 , 2005 and the successor period may 11 , 2005 to december 31 , 2005.the combined predecessor and successor results of operations are not indicative of our future results of operations or results of operations that would have actually occurred had the transaction with the predecessor been consummated as of january 1 , 2005 , due to the fair values assigned to our assets and liabilities , the changes made in the related estimated useful lives of the assets at may 11 , 2005 , as well as changes in interest and income tax expenses as a result of the transaction . the following table summarizes certain information relating to the successor and predecessor operating results as a percentage of net sales and has been derived from the financial information presented above . we believe this presentation is useful to investors in comparing historical results . certain amounts in the table may not sum due to the rounding of individual components . replace_table_token_5_th _ ( a ) represents the mathematical addition of the predecessor period january 1 , 2005 to may 10 , 2005 and the successor period may 11 , 2005 to december 31 , 2005. the combined predecessor and successor results of operations are not indicative of our future results of operations or results of operations that would have actually occurred had the 33 transaction with the predecessor been consummated as of january 1 , 2005 , due to the fair values assigned to our assets and liabilities , the changes made in the related estimated useful lives of the assets at may 11 , 2005 , as well as changes in interest and income tax expenses as a result of the transaction . net sales . net sales increased by $ 39.2 million , or 17.6 % , to $ 261.8 million for the year ended december 31 , 2006 , from $ 222.6 million for the year ended december 31 , 2005 due to increased volumes and higher average selling prices . overall , azek building products net sales increased 8.4 % from december 31 , 2006 compared to december 31 , 2005 , and scranton products net sales increased 36.6 % from december 31 , 2006 compared to december 31 , 2005. we sold 186.7 million pounds of product during the year ended december 31 , 2006 , which was a 3.5 % increase from the 180.3 million pounds sold during the year ended december 31 , 2005. volume growth was primarily attributable to the santana acquisition and year over year growth within azek building products , offset by volume decline in scranton products industrial building products . in addition to volume growth , revenues increased as a result of the full year benefit from price increases across all of our product lines , implemented in the second half of 2005. cost of sales . cost of sales increased by $ 21.5 million , or 12.5 % , to $ 193.4 million for the year ended december 31 , 2006 from $ 171.9 million for the same period in 2005. the increase was primarily attributable to increased volumes from the santana acquisition , as well as an increase in average resin prices per pound of 5.6 % in the year ended december 31 , 2006 compared to the same period in 2005. despite the period over period increase in average resin prices , resin costs have significantly declined from their peak levels in the fall of 2005. in 2005 , our cost of sales included the effect of the fair value adjustment of acquired inventories recorded in connection with the transaction . the $ 5.2 million non-cash fair value adjustment increased acquired inventory values to estimated selling price at may 11 , 2005. this increase was then recognized as an increase to cost of sales during the period may 11 , 2005 to december 31 , 2005 as the related inventory was sold . gross margin . gross margin increased by $ 17.7 million , or 34.9 % , to $ 68.4 million for the year ended december 31 , 2006 from $ 50.7 million for the same period of 2005. this increase was mainly attributable to increases in selling prices which allowed us to offset the increase in average resin costs . gross margin as a percent of net sales increased to 26.1 % for the year ended december 31 , 2006 from 22.8 % for the same period in 2005. this increase was mainly due to the increase in selling prices and volume growth . the increase in gross margin in 2006 from 2005 was also attributable to the impact of the fair value adjustment we incurred in 2005 as a result of the transaction as discussed above . selling , general and administrative expenses . selling , general and administrative expenses decreased by $ 0.5 million , or 1.3 % , to $ 40.2 million , or 15.4 % of net sales for the year ended december 31 , 2006 from $ 40.8 million , or 18.3 % of net sales for the same period in 2005. the decrease in selling , general and administrative expenses from 2005 was primarily attributable to a one-time compensation charge of approximately $ 12.8 million relating to the vesting of certain restricted stock units upon the closing of the transaction in 2005. this decrease was primarily offset by the addition of santana , increased sales staff and marketing efforts for both our residential and commercial building product lines , an approximately $ 0.9 million increase in amortization of intangible assets recorded in conjunction with the transaction and

investment in hyperscale data centers in july 2020 and following an additional investment in october 2020 , the company , alongside fee bearing third party capital , invested $ 1.36 billion for approximately 90 % equity interest in entities that hold vantage data centers ' ( `` vantage `` ) portfolio of 12 stabilized hyperscale data centers in north america and $ 2.0 billion of secured indebtedness ( the “ vantage sdc ” ) . our balance sheet investment is $ 197 million , representing a 13 % equity interest . vantage sdc is our second significant balance sheet investment in a digital operating business and achieves our transformation goals on two fronts , the rotation of our balance sheet to digital assets and growing our digital investment management business . databank 's strategic investment in december 2020 , our databank subsidiary closed on its acquisition of zcolo , the colocation assets of zayo group holdings , inc. ( `` zayo `` ) , consisting of 39 data centers in the u.s and u.k. , for approximately $ 1.2 billion through a combination of debt and equity financing , including $ 0.5 billion of third party co-invest capital raised by us and a $ 188 million investment from our balance sheet ( decreased to approximately $ 145 million upon raising of additional third party capital in february 2021 which maintains our 20 % interest in databank ) . acquisition of zcolo 's remaining five data centers in france for $ 33.0 million closed in february 2021. the acquisition of zcolo accelerates databank 's edge and hybrid cloud strategy , complements its existing relationships and significantly expands its geographic footprint to a national scale in strategically important data center markets . digital colony partners ii or dcp ii in february 2021 , we held a closing of dcp ii , our second digital opportunistic fund , with total callable commitments of $ 4.2 billion , inclusive of $ 120 million of our commitments as general partner and limited partner . non-digital assets in september 2020 , we entered into a definitive agreement to sell five of the six hotel portfolios in our hospitality segment and our 55.6 % interest in the thl hotel portfolio in the other segment , with closing expected in the first half of 2021. the transaction is valued at approximately $ 2.8 billion , including gross aggregate selling price of $ 67.5 million and acquirer 's assumption of $ 2.7 billion of investment-level debt ( of which op share is approximately $ 2.3 billion ) . in february 2020 , we sold our equity investment in rxr realty , llc for proceeds of $ 179 million , net of tax , recording a gain of $ 97 million , net of tax . in april 2020 , we recapitalized a co-investment venture which holds common equity in the albertsons supermarket chain , generating $ 73 million of proceeds to us and realizing our share of gain of approximately $ 30 million , which allowed us to harvest approximately 70 % of the expected eventual value upfront . in august 2020 , we conveyed to a lender 36 properties in our senior housing operating portfolio , which served as underlying collateral , in satisfaction of $ 157.5 million of outstanding wellness infrastructure debt . 61 in december 2020 , we sold our 51 % interest in the bulk industrial portfolio to our joint venture partner , and received approximately $ 85 million in aggregate of net equity proceeds and distributions that we expect to redeploy into future digital assets . during 2020 , we recognized approximately $ 3.5 billion ( $ 2.6 billion attributable to op ) of impairment charges and unrealized and realized fair value losses on our non-digital assets , a majority of which was driven by our accelerated timeline to digital transformation . the following amounts were recorded in impairment loss , other loss , equity method losses , and within impairment loss in discontinued operations on the statement of operations : $ 2.0 billion ( $ 1.5 billion attributable to op ) impairment on real estate and related asset group , primarily hotel and wellness infrastructure properties , based upon ( i ) shortened hold period assumptions on the assets , primarily driven by the company 's accelerated digital transformation and further exacerbated by a decline in property operating performance and market values as a result of the economic effects of covid-19 , and ( ii ) recoverable value from sale of the thl hotel portfolio ; $ 594 million impairment of goodwill in the other investment management segment , driven by acceleration of the company 's digital transformation and a significant reduction in the value of its non-digital balance sheet assets ; $ 275 million impairment on our equity investment in clnc as the shortfall in market value over carrying value of our clnc investment was not expected to be recovered in the near term ; $ 296 million ( $ 97 million attributable to op ) of impairment and fair value decreases on other equity method investments , generally reflecting a decrease in recoverable values based upon revised exit strategies in light of our accelerated digital transformation and the economic effects of covid-19 ; and $ 324 million ( $ 77 million attributable to op ) of net unrealized and realized losses on loans receivable carried at fair value as recoverability is affected by increasing uncertainty and deterioration in the economic environment arising from the effects of covid-19 . results of operations the following table summarizes our results from continuing operations by reportable segment . story_separator_special_tag other loss , net we recognized other net loss of $ 211.1 million in 2020 and $ 194.1 million in 2019 , driven primarily by the following : 2020 $ 323.7 million ( $ 77.4 million attributable to op ) of net unrealized and realized losses on loans receivable carried at fair value as recoverability is affected by increasing uncertainty and deterioration in the economic environment arising from the effects of covid-19 ( fair value option was elected on loans receivable beginning 2020 ) ; $ 24.7 million of unrealized credit losses on cre debt securities ; and $ 20.4 million increase in the settlement liability to blackwells , driven by an increase in the clny stock price ; partially offset by : realized gain of $ 60.7 million and recognition of future profit allocation at fair value of $ 66.0 million ( $ 32.3 million attributable to op ) from recapitalization in april 2020 of our co-investment venture which holds common equity in the albertsons supermarket chain , followed by $ 16.0 million unrealized gain from subsequent increase in share price . 69 2019 realized and unrealized loss totaling $ 239.3 million on a non-designated interest rate swap that was intended to hedge future refinancing risk on certain wellness infrastructure mortgage debt . such debt was refinanced in june 2019 and the swap was terminated at the end of 2019 ; partially offset by : $ 51.4 million gain from remeasurement of our 50 % interest in dcm upon closing of the dbh acquisition ( note 3 to the consolidated financial statements ) . income tax benefit ( expense ) we recognized income tax benefit of $ 10.0 million in 2020 and income tax expense of $ 14.0 million in 2019. the income tax benefit is attributed primarily to deferred tax benefit recognized in connection with our databank subsidiary and our oed portfolio , partially offset by the following : ( i ) valuation allowance established against deferred tax assets in our wellness infrastructure business due to uncertainties in future realization of net operating losses ; ( ii ) income tax expense on a gain from sale of our equity investment in rxr realty in february 2020 ; and ( iii ) deferred tax expense related to our wellness infrastructure business due to revaluation of deferred tax balances necessitated by a change in income tax rates in u.k. the income tax expense in 2019 arose primarily from gains recognized on remeasurement of our preexisting interest in dcm upon the acquisition of dbh and from the sale of the industrial management platform . 70 income ( loss ) from discontinued operations replace_table_token_12_th hotel discontinued operations of the hotel business represent our hospitality segment and the thl hotel portfolio that was previously reported in the other segment . loss from discontinued operations increased $ 1.21 billion , attributable to the following : impairment loss was $ 1.1 billion in 2020. impairment resulted principally from shortened hold period assumptions , attributable to both the company 's accelerated digital transformation , and the risk that the company is unable to obtain accommodation from lenders on non-recourse mortgage debt that is in default . these assumptions resulted in a shortfall in projected future cash flows , which was further exacerbated by a decline in property operating performance and market values as a result of the economic effects of covid-19 , such that the carrying value of the hotel assets would not be recoverable . additional impairment was recorded based upon pending sales price net of selling costs . in comparison , $ 59.9 million of impairment was recorded in 2019 on hotel assets based upon shortened hold period assumptions , unfavorable operating performance , or based upon final net proceeds from sales . operating losses in 2020 reflect the loss of net income from sale of hotel properties in 2019 and the economic effects of covid-19 . there was a significant decline in room demand with average occupancy at 52 % in 2020 71 compared to 73 % in 2019. this was further compounded by lower average daily rate ( `` adr `` ) , resulting in a 40 % decline in revenue per available room ( `` revpar `` ) compared to 2019. transaction costs in 2020 are related to fees for advisory and legal services in connection with debt refinancing , portfolio restructuring and pending sale of the hotels . the higher income tax expense is attributed to valuation allowance established against deferred tax assets in the hotel portfolio as a result of uncertainties in future realization of net operating losses and taking into consideration a decrease in the value of these properties . the increase in loss from discontinued operations was partially offset by : decrease in interest expense , driven by a decline in libor on predominantly variable rate debt on our hotel portfolio , partially offset by additional hotel debt obtained in connection with debt refinancing in 2019 and higher deferred financing costs expensed as a result of the refinancing ; decrease in depreciation and amortization expense due to a lower basis on our hotel properties after significant impairment charges in 2020 and cessation of depreciation on hotels held for sale beginning fourth quarter of 2020 , partially offset by capital improvements and fixed asset additions in our hotel properties that were completed throughout 2019 and early 2020 ; and write-off of contingent liability on the thl hotel portfolio ( recorded as other gain ) as it is no longer probable that such payment would be made to a former preferred equity holder following the adverse effects of covid-19 on the operations and performance of the thl hotel portfolio . industrial results of discontinued operations in 2020 represent ( i ) operations of the bulk industrial portfolio prior to its sale in december 2020 and a gain on sale recorded based upon depreciated carrying values ; and ( ii ) final adjustments to proceeds from the december 2019 sale

debt descriptions of our debt and future scheduled debt principal payments are included in `` item 15. exhibits and financial statement schedules '' of this annual report , specifically in note 10 to the consolidated financial statements ( and note 8 for debt related to assets held for disposition ) . summary of indebtedness our indebtedness at december 31 , 2020 is summarized as follows : replace_table_token_28_th ( 1 ) calculated based upon initial maturity dates , or extended maturity dates if extension criteria are met and extension is available at the company 's option ( 2 ) debt secured by corporate aircraft was repaid in january 2021 upon sale of the aircraft . ( 3 ) composed of $ 2.7 billion of debt expected to be assumed by the buyer upon sale of hotel assets and $ 780 million of hotel debt that is currently under receivership . recent developments corporate credit facility we amended our credit agreement in june 2020 , which reduced aggregate revolving commitments and increased the borrowing rate . the amended terms provide for greater financial covenant flexibility and more borrowing base credit for digital investments . we exercised our first 6-month extension option in december 2020. at this time , we expect to either exercise our second extension option or otherwise replace the existing credit facility . key terms and current status of our corporate credit facility are as follows : ▪ maximum principal amount of $ 450 million ( which will be reduced to $ 400 million on march 31 , 2021 ) ▪ maturity of july 2021 , with one remaining six-month extension option ▪ interest rate of libor + 2.75 % ▪ full $ 450 million available to be drawn as of the date of this filing convertible and exchangeable senior notes in july 2020 , we issued $ 300 million of exchangeable senior notes maturing in july 2025 , bearing interest at 5.75 % per annum , and repaid $ 402.5 million of convertible notes due in january 2021 , which allowed us to reduce our near term maturity obligations while also preserving $ 300 million 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. ```debt descriptions of our debt and future scheduled debt principal payments are included in `` item 15. exhibits and financial statement schedules '' of this annual report , specifically in note 10 to the consolidated financial statements ( and note 8 for debt related to assets held for disposition ) . summary of indebtedness our indebtedness at december 31 , 2020 is summarized as follows : replace_table_token_28_th ( 1 ) calculated based upon initial maturity dates , or extended maturity dates if extension criteria are met and extension is available at the company 's option ( 2 ) debt secured by corporate aircraft was repaid in january 2021 upon sale of the aircraft . ( 3 ) composed of $ 2.7 billion of debt expected to be assumed by the buyer upon sale of hotel assets and $ 780 million of hotel debt that is currently under receivership . recent developments corporate credit facility we amended our credit agreement in june 2020 , which reduced aggregate revolving commitments and increased the borrowing rate . the amended terms provide for greater financial covenant flexibility and more borrowing base credit for digital investments . we exercised our first 6-month extension option in december 2020. at this time , we expect to either exercise our second extension option or otherwise replace the existing credit facility . key terms and current status of our corporate credit facility are as follows : ▪ maximum principal amount of $ 450 million ( which will be reduced to $ 400 million on march 31 , 2021 ) ▪ maturity of july 2021 , with one remaining six-month extension option ▪ interest rate of libor + 2.75 % ▪ full $ 450 million available to be drawn as of the date of this filing convertible and exchangeable senior notes in july 2020 , we issued $ 300 million of exchangeable senior notes maturing in july 2025 , bearing interest at 5.75 % per annum , and repaid $ 402.5 million of convertible notes due in january 2021 , which allowed us to reduce our near term maturity obligations while also preserving $ 300 million of liquidity . ``` Suspicious Activity Report : investment in hyperscale data centers in july 2020 and following an additional investment in october 2020 , the company , alongside fee bearing third party capital , invested $ 1.36 billion for approximately 90 % equity interest in entities that hold vantage data centers ' ( `` vantage `` ) portfolio of 12 stabilized hyperscale data centers in north america and $ 2.0 billion of secured indebtedness ( the “ vantage sdc ” ) . our balance sheet investment is $ 197 million , representing a 13 % equity interest . vantage sdc is our second significant balance sheet investment in a digital operating business and achieves our transformation goals on two fronts , the rotation of our balance sheet to digital assets and growing our digital investment management business . databank 's strategic investment in december 2020 , our databank subsidiary closed on its acquisition of zcolo , the colocation assets of zayo group holdings , inc. ( `` zayo `` ) , consisting of 39 data centers in the u.s and u.k. , for approximately $ 1.2 billion through a combination of debt and equity financing , including $ 0.5 billion of third party co-invest capital raised by us and a $ 188 million investment from our balance sheet ( decreased to approximately $ 145 million upon raising of additional third party capital in february 2021 which maintains our 20 % interest in databank ) . acquisition of zcolo 's remaining five data centers in france for $ 33.0 million closed in february 2021. the acquisition of zcolo accelerates databank 's edge and hybrid cloud strategy , complements its existing relationships and significantly expands its geographic footprint to a national scale in strategically important data center markets . digital colony partners ii or dcp ii in february 2021 , we held a closing of dcp ii , our second digital opportunistic fund , with total callable commitments of $ 4.2 billion , inclusive of $ 120 million of our commitments as general partner and limited partner . non-digital assets in september 2020 , we entered into a definitive agreement to sell five of the six hotel portfolios in our hospitality segment and our 55.6 % interest in the thl hotel portfolio in the other segment , with closing expected in the first half of 2021. the transaction is valued at approximately $ 2.8 billion , including gross aggregate selling price of $ 67.5 million and acquirer 's assumption of $ 2.7 billion of investment-level debt ( of which op share is approximately $ 2.3 billion ) . in february 2020 , we sold our equity investment in rxr realty , llc for proceeds of $ 179 million , net of tax , recording a gain of $ 97 million , net of tax . in april 2020 , we recapitalized a co-investment venture which holds common equity in the albertsons supermarket chain , generating $ 73 million of proceeds to us and realizing our share of gain of approximately $ 30 million , which allowed us to harvest approximately 70 % of the expected eventual value upfront . in august 2020 , we conveyed to a lender 36 properties in our senior housing operating portfolio , which served as underlying collateral , in satisfaction of $ 157.5 million of outstanding wellness infrastructure debt . 61 in december 2020 , we sold our 51 % interest in the bulk industrial portfolio to our joint venture partner , and received approximately $ 85 million in aggregate of net equity proceeds and distributions that we expect to redeploy into future digital assets . during 2020 , we recognized approximately $ 3.5 billion ( $ 2.6 billion attributable to op ) of impairment charges and unrealized and realized fair value losses on our non-digital assets , a majority of which was driven by our accelerated timeline to digital transformation . the following amounts were recorded in impairment loss , other loss , equity method losses , and within impairment loss in discontinued operations on the statement of operations : $ 2.0 billion ( $ 1.5 billion attributable to op ) impairment on real estate and related asset group , primarily hotel and wellness infrastructure properties , based upon ( i ) shortened hold period assumptions on the assets , primarily driven by the company 's accelerated digital transformation and further exacerbated by a decline in property operating performance and market values as a result of the economic effects of covid-19 , and ( ii ) recoverable value from sale of the thl hotel portfolio ; $ 594 million impairment of goodwill in the other investment management segment , driven by acceleration of the company 's digital transformation and a significant reduction in the value of its non-digital balance sheet assets ; $ 275 million impairment on our equity investment in clnc as the shortfall in market value over carrying value of our clnc investment was not expected to be recovered in the near term ; $ 296 million ( $ 97 million attributable to op ) of impairment and fair value decreases on other equity method investments , generally reflecting a decrease in recoverable values based upon revised exit strategies in light of our accelerated digital transformation and the economic effects of covid-19 ; and $ 324 million ( $ 77 million attributable to op ) of net unrealized and realized losses on loans receivable carried at fair value as recoverability is affected by increasing uncertainty and deterioration in the economic environment arising from the effects of covid-19 . results of operations the following table summarizes our results from continuing operations by reportable segment . story_separator_special_tag other loss , net we recognized other net loss of $ 211.1 million in 2020 and $ 194.1 million in 2019 , driven primarily by the following : 2020 $ 323.7 million ( $ 77.4 million attributable to op ) of net unrealized and realized losses on loans receivable carried at fair value as recoverability is affected by increasing uncertainty and deterioration in the economic environment arising from the effects of covid-19 ( fair value option was elected on loans receivable beginning 2020 ) ; $ 24.7 million of unrealized credit losses on cre debt securities ; and $ 20.4 million increase in the settlement liability to blackwells , driven by an increase in the clny stock price ; partially offset by : realized gain of $ 60.7 million and recognition of future profit allocation at fair value of $ 66.0 million ( $ 32.3 million attributable to op ) from recapitalization in april 2020 of our co-investment venture which holds common equity in the albertsons supermarket chain , followed by $ 16.0 million unrealized gain from subsequent increase in share price . 69 2019 realized and unrealized loss totaling $ 239.3 million on a non-designated interest rate swap that was intended to hedge future refinancing risk on certain wellness infrastructure mortgage debt . such debt was refinanced in june 2019 and the swap was terminated at the end of 2019 ; partially offset by : $ 51.4 million gain from remeasurement of our 50 % interest in dcm upon closing of the dbh acquisition ( note 3 to the consolidated financial statements ) . income tax benefit ( expense ) we recognized income tax benefit of $ 10.0 million in 2020 and income tax expense of $ 14.0 million in 2019. the income tax benefit is attributed primarily to deferred tax benefit recognized in connection with our databank subsidiary and our oed portfolio , partially offset by the following : ( i ) valuation allowance established against deferred tax assets in our wellness infrastructure business due to uncertainties in future realization of net operating losses ; ( ii ) income tax expense on a gain from sale of our equity investment in rxr realty in february 2020 ; and ( iii ) deferred tax expense related to our wellness infrastructure business due to revaluation of deferred tax balances necessitated by a change in income tax rates in u.k. the income tax expense in 2019 arose primarily from gains recognized on remeasurement of our preexisting interest in dcm upon the acquisition of dbh and from the sale of the industrial management platform . 70 income ( loss ) from discontinued operations replace_table_token_12_th hotel discontinued operations of the hotel business represent our hospitality segment and the thl hotel portfolio that was previously reported in the other segment . loss from discontinued operations increased $ 1.21 billion , attributable to the following : impairment loss was $ 1.1 billion in 2020. impairment resulted principally from shortened hold period assumptions , attributable to both the company 's accelerated digital transformation , and the risk that the company is unable to obtain accommodation from lenders on non-recourse mortgage debt that is in default . these assumptions resulted in a shortfall in projected future cash flows , which was further exacerbated by a decline in property operating performance and market values as a result of the economic effects of covid-19 , such that the carrying value of the hotel assets would not be recoverable . additional impairment was recorded based upon pending sales price net of selling costs . in comparison , $ 59.9 million of impairment was recorded in 2019 on hotel assets based upon shortened hold period assumptions , unfavorable operating performance , or based upon final net proceeds from sales . operating losses in 2020 reflect the loss of net income from sale of hotel properties in 2019 and the economic effects of covid-19 . there was a significant decline in room demand with average occupancy at 52 % in 2020 71 compared to 73 % in 2019. this was further compounded by lower average daily rate ( `` adr `` ) , resulting in a 40 % decline in revenue per available room ( `` revpar `` ) compared to 2019. transaction costs in 2020 are related to fees for advisory and legal services in connection with debt refinancing , portfolio restructuring and pending sale of the hotels . the higher income tax expense is attributed to valuation allowance established against deferred tax assets in the hotel portfolio as a result of uncertainties in future realization of net operating losses and taking into consideration a decrease in the value of these properties . the increase in loss from discontinued operations was partially offset by : decrease in interest expense , driven by a decline in libor on predominantly variable rate debt on our hotel portfolio , partially offset by additional hotel debt obtained in connection with debt refinancing in 2019 and higher deferred financing costs expensed as a result of the refinancing ; decrease in depreciation and amortization expense due to a lower basis on our hotel properties after significant impairment charges in 2020 and cessation of depreciation on hotels held for sale beginning fourth quarter of 2020 , partially offset by capital improvements and fixed asset additions in our hotel properties that were completed throughout 2019 and early 2020 ; and write-off of contingent liability on the thl hotel portfolio ( recorded as other gain ) as it is no longer probable that such payment would be made to a former preferred equity holder following the adverse effects of covid-19 on the operations and performance of the thl hotel portfolio . industrial results of discontinued operations in 2020 represent ( i ) operations of the bulk industrial portfolio prior to its sale in december 2020 and a gain on sale recorded based upon depreciated carrying values ; and ( ii ) final adjustments to proceeds from the december 2019 sale

the financial information presented from april 20 , 2009 ( inception ) to december 31 , 2010 was based solely on the results of clovis oncology , inc. subsequent to january 1 , 2011 , the financial information is consolidated and includes the results of our wholly owned subsidiary in the united kingdom . all intercompany transactions and balances are eliminated in this consolidation . product license agreements co-101 in november 2009 , we entered into a license agreement with clavis to develop and commercialize co-101 in north america , central america , south america and europe . under the terms of the license agreement , we made an up-front payment to clavis in the amount $ 15.0 million , which was comprised of $ 13.1 million for development costs incurred prior to the execution of the agreement , which we recognized as acquired in-process research and development and $ 1.9 million for the prepayment of preclinical activities to be performed by clavis . in november 2010 , the license agreement was amended to expand the license territory to include asia and other international markets . we paid clavis $ 10.0 million for the territory expansion and recognized that payment as acquired in-process research and development expense . as part of the amendment to the license agreement , clavis has also agreed to reimburse up to $ 3.0 million of our research and development costs for certain co-101 development activities subject to our incurring such costs . we are responsible for all remaining development and commercialization costs of the compound and , if approved , clavis will be entitled to receive royalties based on the volume of annual net sales achieved . we may be required to pay clavis an aggregate of up to $ 115.0 million in development and regulatory milestone payments if certain clinical study objectives and regulatory filings , acceptances and approvals are achieved . in addition , we may be required to pay clavis an aggregate of up to $ 445.0 million in sales milestone payments if certain annual sales targets are met for co-101 . subject to certain conditions set forth in the license agreement , clavis may elect to co-develop and co-promote co-101 in europe . if clavis were to make this election , it would be required to reimburse us for a portion of both past and future development costs . in addition , our milestone payment obligations described above would be reduced . clavis would not be entitled to royalties on the net sales in europe , but would instead share equally in the pretax profits or losses resulting from commercialization activities in europe . 50 co-1686 in may 2010 , we entered into a worldwide license agreement with avila to discover , develop and commercialize preclinical covalent inhibitors of mutant forms of egfr . co-1686 was identified as the lead inhibitor candidate developed by avila under the license agreement . we are responsible for all preclinical , clinical , regulatory and other activities necessary to develop and commercialize co-1686 . we made an up-front payment of $ 2.0 million to avila upon execution of the license agreement which we recognized as acquired in-process research and development expense . we are obligated to pay avila royalties on net sales of co-1686 , based on the volume of annual net sales achieved . avila has the option to increase royalty rates by electing to reimburse a portion of our development expenses . this option must be exercised within a limited period of time of avila 's being notified by us of our intent to pursue regulatory approval of co-1686 in the united states or the european union as a first-line treatment . we may be required to pay avila up to an aggregate of $ 119.0 million in development and regulatory milestone payments if certain clinical study objectives and regulatory filings , acceptances and approvals are achieved . in addition , we may be required to pay avila up to an aggregate of $ 120.0 million in sales milestone payments if certain annual sales targets are achieved . in january 2012 , the u.s. food and drug administration accepted our investigational new drug application to begin clinical investigation of co-1686 , which triggered the first development milestone payment to avila of $ 4.0 million . rucaparib in june 2011 , we entered into a license agreement with pfizer to acquire exclusive global development and commercialization rights to pfizer 's drug candidate pf-01367338 , also known as co-338 or rucaparib . this drug candidate is a small molecule parp inhibitor which we are developing for the treatment of selected solid tumors . pursuant to the terms of the license agreement , we made an up-front payment by issuing pfizer $ 7.0 million principal amount of a 5 % convertible promissory note due 2012 , which was subsequently converted to common stock immediately prior to our initial public offering . we are responsible for all development and commercialization costs of rucaparib and , if approved , we will be required to pay pfizer royalties on sales of the product . in addition , we may be required to pay pfizer up to an aggregate of $ 259.0 million in milestone payments if certain development , regulatory and sales milestones are achieved . financial operations overview revenue to date , we have not generated any revenues . in the future , we may generate revenue from the sales of product candidates that are currently under development . based on our current development plans , we do not expect to generate significant revenues until 2014 at the earliest . if we fail to complete the development of our product candidates and , together with our partners , companion diagnostics or obtain regulatory approval for them , our ability to generate future revenue , and our results of operations and financial position , will be adversely affected . story_separator_special_tag , the ipo ) , as well as the in-licensing of our third product candidate , rucaparib , and the issuance in may and june 2011 of $ 35.0 million in aggregate principal amount of our 5 % convertible promissory notes due 2012. in accordance with the practice aid , we determined that the probability weighted expected return method , or pwerm , was the most appropriate valuation methodology going forward . accordingly , we updated the valuation of our common stock effective june 30 , 2011. in our application of pwerm , we estimated the fair value of our common stock using three potential liquidity scenarios and then probability weighted the resulting valuation under each of these scenarios . the three liquidity scenarios assumed were as follows : completing the ipo , or the ipo scenario ; remaining as a private company and selling the company at a future date , or the merger and acquisition , or m & a , scenario ; and remaining as a private company and executing an ipo at a future date , or the future ipo scenario . in order to estimate our equity value under the ipo scenario , we employed an income approach using a discounted cash flow analysis . net cash flows from the multi-year forecast for each of our product candidates were discounted to their present value based on our estimated weighted average cost of capital , or wacc . the wacc was estimated using a capital asset pricing model , taking into account risk-free interest rates , an equity risk premium , risk premiums for our industry and entity size , company-specific risks associated with the development and commercialization of our product candidates , and the cost and capital structure weighting of our debt . the estimated future cash flows were based on anticipated timing of the clinical development and regulatory approvals for each of our product candidates as well as their commercialization opportunity . this equity value was applied to the number of common shares outstanding determined on a fully diluted basis to calculate the per share fair value of our common stock , assuming the conversion of all preferred stock into common stock . to value our common stock under the m & a and future ipo scenarios , we utilized the option pricing method as described above . however , for these scenarios the current value of our underlying common and preferred equity was determined using a discounted cash flow analysis that is substantially the same as the analysis performed for the ipo scenario rather than using a marketable equity value based on recent rounds of our preferred stock issuances as was used in the december 31 , 2009 and 2010 valuations . we believed this to be a more accurate measurement of our equity value as of june 30 , 2011 due to the 19 month time gap since our last issuance of preferred stock . once our equity value for the m & a and future ipo scenarios was determined , we allocated a portion of the value to our common stock based on a “best economic outcome” model . for the m & a scenario , the value assigned to our common stock was determined using a break point analysis to estimate the various enterprise values at which holders of each series of our preferred stock would elect to convert to common stock and the points at which holders of options would exercise as a result of the value of the common stock exceeding the exercise price . for the future ipo scenario , the value assigned to our common stock was estimated using a fully diluted outstanding share analysis assuming the conversion of all preferred stock into common stock as such a conversion would be required to execute an ipo . the following tables summarize the significant assumptions utilized for each of the valuation scenarios used to determine the fair value of our common stock as of june 30 , 2011. replace_table_token_6_th the estimated per share fair value of our common stock determined as of june 30 , 2011 increased significantly from the december 31 , 2010 valuation . this is primarily due to the april 2011 decision by our board of directors to authorize management to pursue an ipo and the june 2011 authorization of our board of directors to file a registration statement with the sec , which , among other things , contributed to the elimination of the discount for lack of marketability from the ipo scenario in the june 30 , 2011 analysis . given the assumed acceleration of the ipo to october 1 , 2011 , we believe the value of our common stock no longer warrants a discount from its “marketable” price . in addition , the june 30 , 2011 valuation was positively impacted by the assumption that all preferred stock would automatically convert into common stock upon the ipo , thereby eliminating the impact of preferred stock liquidation preferences on the value of the common stock . we utilized the common stock valuation contemporaneously prepared as of december 31 , 2010 to set the exercise price for stock options granted during the six months ended june 30 , 2011. in light of the close proximity of the stock option grants in march , april , may and june 2011 to the april and june 2011 actions by our board of directors with respect to the ipo and our june 2011 entry into a license agreement to acquire exclusive global development and commercialization rights to rucaparib , we retrospectively determined to use the fair value of our common stock as of june 30 , 2011 to calculate stock-based compensation expense for those stock option grants . no stock options were granted in january or february 2011 . 55 the following table presents the grant dates and related exercise prices of stock options granted to our employees and our board of directors from april

liquidity and capital resources we have funded our operations primarily through the private placement of equity , convertible debt securities and our initial public offering completed in november 2011. as of december 31 , 2011 , we have received $ 75.5 million in net proceeds from the issuance of convertible preferred stock and $ 129.4 million in net proceeds from the issuance of common stock through our initial public offering . in may and june 2011 , we received proceeds of $ 28.0 million through the issuance of convertible promissory notes . the outstanding principal amount and all accrued and unpaid interest converted into shares of our common stock immediately prior to the closing of our initial public offering at $ 13.00 per share , equal to our initial public offering price . as of december 31 , 2011 , we had cash , cash equivalents and available for sale securities totaling $ 140.2 million . the following table sets forth the primary sources and uses of cash for each of the periods set forth below : replace_table_token_12_th operating activities the use of cash in all periods resulted primarily from our net losses adjusted for non-cash charges and changes in components of working capital .

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 primarily through the private placement of equity , convertible debt securities and our initial public offering completed in november 2011. as of december 31 , 2011 , we have received $ 75.5 million in net proceeds from the issuance of convertible preferred stock and $ 129.4 million in net proceeds from the issuance of common stock through our initial public offering . in may and june 2011 , we received proceeds of $ 28.0 million through the issuance of convertible promissory notes . the outstanding principal amount and all accrued and unpaid interest converted into shares of our common stock immediately prior to the closing of our initial public offering at $ 13.00 per share , equal to our initial public offering price . as of december 31 , 2011 , we had cash , cash equivalents and available for sale securities totaling $ 140.2 million . the following table sets forth the primary sources and uses of cash for each of the periods set forth below : replace_table_token_12_th operating activities the use of cash in all periods resulted primarily from our net losses adjusted for non-cash charges and changes in components of working capital . ``` Suspicious Activity Report : the financial information presented from april 20 , 2009 ( inception ) to december 31 , 2010 was based solely on the results of clovis oncology , inc. subsequent to january 1 , 2011 , the financial information is consolidated and includes the results of our wholly owned subsidiary in the united kingdom . all intercompany transactions and balances are eliminated in this consolidation . product license agreements co-101 in november 2009 , we entered into a license agreement with clavis to develop and commercialize co-101 in north america , central america , south america and europe . under the terms of the license agreement , we made an up-front payment to clavis in the amount $ 15.0 million , which was comprised of $ 13.1 million for development costs incurred prior to the execution of the agreement , which we recognized as acquired in-process research and development and $ 1.9 million for the prepayment of preclinical activities to be performed by clavis . in november 2010 , the license agreement was amended to expand the license territory to include asia and other international markets . we paid clavis $ 10.0 million for the territory expansion and recognized that payment as acquired in-process research and development expense . as part of the amendment to the license agreement , clavis has also agreed to reimburse up to $ 3.0 million of our research and development costs for certain co-101 development activities subject to our incurring such costs . we are responsible for all remaining development and commercialization costs of the compound and , if approved , clavis will be entitled to receive royalties based on the volume of annual net sales achieved . we may be required to pay clavis an aggregate of up to $ 115.0 million in development and regulatory milestone payments if certain clinical study objectives and regulatory filings , acceptances and approvals are achieved . in addition , we may be required to pay clavis an aggregate of up to $ 445.0 million in sales milestone payments if certain annual sales targets are met for co-101 . subject to certain conditions set forth in the license agreement , clavis may elect to co-develop and co-promote co-101 in europe . if clavis were to make this election , it would be required to reimburse us for a portion of both past and future development costs . in addition , our milestone payment obligations described above would be reduced . clavis would not be entitled to royalties on the net sales in europe , but would instead share equally in the pretax profits or losses resulting from commercialization activities in europe . 50 co-1686 in may 2010 , we entered into a worldwide license agreement with avila to discover , develop and commercialize preclinical covalent inhibitors of mutant forms of egfr . co-1686 was identified as the lead inhibitor candidate developed by avila under the license agreement . we are responsible for all preclinical , clinical , regulatory and other activities necessary to develop and commercialize co-1686 . we made an up-front payment of $ 2.0 million to avila upon execution of the license agreement which we recognized as acquired in-process research and development expense . we are obligated to pay avila royalties on net sales of co-1686 , based on the volume of annual net sales achieved . avila has the option to increase royalty rates by electing to reimburse a portion of our development expenses . this option must be exercised within a limited period of time of avila 's being notified by us of our intent to pursue regulatory approval of co-1686 in the united states or the european union as a first-line treatment . we may be required to pay avila up to an aggregate of $ 119.0 million in development and regulatory milestone payments if certain clinical study objectives and regulatory filings , acceptances and approvals are achieved . in addition , we may be required to pay avila up to an aggregate of $ 120.0 million in sales milestone payments if certain annual sales targets are achieved . in january 2012 , the u.s. food and drug administration accepted our investigational new drug application to begin clinical investigation of co-1686 , which triggered the first development milestone payment to avila of $ 4.0 million . rucaparib in june 2011 , we entered into a license agreement with pfizer to acquire exclusive global development and commercialization rights to pfizer 's drug candidate pf-01367338 , also known as co-338 or rucaparib . this drug candidate is a small molecule parp inhibitor which we are developing for the treatment of selected solid tumors . pursuant to the terms of the license agreement , we made an up-front payment by issuing pfizer $ 7.0 million principal amount of a 5 % convertible promissory note due 2012 , which was subsequently converted to common stock immediately prior to our initial public offering . we are responsible for all development and commercialization costs of rucaparib and , if approved , we will be required to pay pfizer royalties on sales of the product . in addition , we may be required to pay pfizer up to an aggregate of $ 259.0 million in milestone payments if certain development , regulatory and sales milestones are achieved . financial operations overview revenue to date , we have not generated any revenues . in the future , we may generate revenue from the sales of product candidates that are currently under development . based on our current development plans , we do not expect to generate significant revenues until 2014 at the earliest . if we fail to complete the development of our product candidates and , together with our partners , companion diagnostics or obtain regulatory approval for them , our ability to generate future revenue , and our results of operations and financial position , will be adversely affected . story_separator_special_tag , the ipo ) , as well as the in-licensing of our third product candidate , rucaparib , and the issuance in may and june 2011 of $ 35.0 million in aggregate principal amount of our 5 % convertible promissory notes due 2012. in accordance with the practice aid , we determined that the probability weighted expected return method , or pwerm , was the most appropriate valuation methodology going forward . accordingly , we updated the valuation of our common stock effective june 30 , 2011. in our application of pwerm , we estimated the fair value of our common stock using three potential liquidity scenarios and then probability weighted the resulting valuation under each of these scenarios . the three liquidity scenarios assumed were as follows : completing the ipo , or the ipo scenario ; remaining as a private company and selling the company at a future date , or the merger and acquisition , or m & a , scenario ; and remaining as a private company and executing an ipo at a future date , or the future ipo scenario . in order to estimate our equity value under the ipo scenario , we employed an income approach using a discounted cash flow analysis . net cash flows from the multi-year forecast for each of our product candidates were discounted to their present value based on our estimated weighted average cost of capital , or wacc . the wacc was estimated using a capital asset pricing model , taking into account risk-free interest rates , an equity risk premium , risk premiums for our industry and entity size , company-specific risks associated with the development and commercialization of our product candidates , and the cost and capital structure weighting of our debt . the estimated future cash flows were based on anticipated timing of the clinical development and regulatory approvals for each of our product candidates as well as their commercialization opportunity . this equity value was applied to the number of common shares outstanding determined on a fully diluted basis to calculate the per share fair value of our common stock , assuming the conversion of all preferred stock into common stock . to value our common stock under the m & a and future ipo scenarios , we utilized the option pricing method as described above . however , for these scenarios the current value of our underlying common and preferred equity was determined using a discounted cash flow analysis that is substantially the same as the analysis performed for the ipo scenario rather than using a marketable equity value based on recent rounds of our preferred stock issuances as was used in the december 31 , 2009 and 2010 valuations . we believed this to be a more accurate measurement of our equity value as of june 30 , 2011 due to the 19 month time gap since our last issuance of preferred stock . once our equity value for the m & a and future ipo scenarios was determined , we allocated a portion of the value to our common stock based on a “best economic outcome” model . for the m & a scenario , the value assigned to our common stock was determined using a break point analysis to estimate the various enterprise values at which holders of each series of our preferred stock would elect to convert to common stock and the points at which holders of options would exercise as a result of the value of the common stock exceeding the exercise price . for the future ipo scenario , the value assigned to our common stock was estimated using a fully diluted outstanding share analysis assuming the conversion of all preferred stock into common stock as such a conversion would be required to execute an ipo . the following tables summarize the significant assumptions utilized for each of the valuation scenarios used to determine the fair value of our common stock as of june 30 , 2011. replace_table_token_6_th the estimated per share fair value of our common stock determined as of june 30 , 2011 increased significantly from the december 31 , 2010 valuation . this is primarily due to the april 2011 decision by our board of directors to authorize management to pursue an ipo and the june 2011 authorization of our board of directors to file a registration statement with the sec , which , among other things , contributed to the elimination of the discount for lack of marketability from the ipo scenario in the june 30 , 2011 analysis . given the assumed acceleration of the ipo to october 1 , 2011 , we believe the value of our common stock no longer warrants a discount from its “marketable” price . in addition , the june 30 , 2011 valuation was positively impacted by the assumption that all preferred stock would automatically convert into common stock upon the ipo , thereby eliminating the impact of preferred stock liquidation preferences on the value of the common stock . we utilized the common stock valuation contemporaneously prepared as of december 31 , 2010 to set the exercise price for stock options granted during the six months ended june 30 , 2011. in light of the close proximity of the stock option grants in march , april , may and june 2011 to the april and june 2011 actions by our board of directors with respect to the ipo and our june 2011 entry into a license agreement to acquire exclusive global development and commercialization rights to rucaparib , we retrospectively determined to use the fair value of our common stock as of june 30 , 2011 to calculate stock-based compensation expense for those stock option grants . no stock options were granted in january or february 2011 . 55 the following table presents the grant dates and related exercise prices of stock options granted to our employees and our board of directors from april

as we engage in clinical trials of our therapeutic candidates , we have compensated and intend to compensate all parties performing the trials or studies only on terms that are standard and customary in clinical study arrangements . to date , we have devoted substantially all of our resources to research and development efforts relating to our therapeutic candidates and biotherapeutic delivery systems , including conducting clinical trials , developing manufacturing and sales capabilities , in-licensing related intellectual property , providing general and administrative support for these operations and protecting our intellectual property . we have also generated modest revenues from sales of our approved products . we have funded our operations primarily through the sales of equity and convertible debt securities , and certain government and private grants . cardiamp cell therapy system we initiated our u.s. food and drug administration , or fda , accepted phase iii pivotal trial for cardiamp cell therapy in ischemic systolic heart failure , in december 2016. the cardiamp heart failure trial is a phase iii , multi-center , randomized , double-blinded , sham-controlled study of up to 260 patients at 40 centers nationwide , which includes a 10-patient roll-in cohort . the phase iii pivotal trial is designed to provide the primary support for the safety and efficacy of the cardiamp cell therapy system . the trial 's primary endpoint is a clinical composite of major adverse cardiac and cerebrovascular events and functional capacity as measured by six minute walk distance . based on the results achieved in the phase ii trial , our phase iii pivotal trial is designed to have more than 95 % probability of achieving a positive result with statistical significance . the ongoing cardiamp heart failure trial is enrolling today at 25 clinical sites . the trial investigators have enrolled 74 patients to date . on march 31 , 2020 , the company announced that the dsmb completed a prespecified data review , and that based on the dsmb 's review of all available safety data for patients randomized in the trial to date , there were no safety concerns and that the dsmb recommended continuing the trial as planned . in the fourth quarter of 2020 , a prespecified dsmb interim readout from the trial will include all patients enrolled at that time point , and include our first dsmb review of efficacy on 60 patients at the one year follow-up , which includes the primary endpoint . enrollment remains our primary focus and challenge . we have recently identified two barriers for patients to participate in the trial . the first of these is that prospective patients are interested in receiving therapy and are concerned about being in a non-treated control arm that does not have a path to receive therapy . secondly , the requirement for patient out of pocket copays in our medicare reimbursed trial presents an additional impediment to patient follow-up . to address these barriers to patient participation , we submitted an investigational device exemption ( ide ) supplement to the fda with changes to enable patients in the control arm to “ cross over ” to therapy after certain follow-up visits in the trial have been completed , which assures the trial control arm patients early access to therapy if the trial meets its primary endpoint and is deemed appropriate for the patients by their physicians , and to enable biocardia to cover the costs of all patient co-pays so that participation in the investigational trial is free for insured patients . the fda has recently approved this ide supplement . these changes , coupled with site specific plans intended to further accelerate enrollment , are being actively rolled out . we have been excited by an enormous uptick in the number of patient informed consents received for participation in the cardiamp heart failure trial in march 2020 and a number of centers finally coming online , however this solid progress has been delayed by covid-19 . 54 we are currently assessing the impact of covid-19 on the enrollment in the cardiamp heart failure trial . a number of clinical centers have already advised the company that they will not be performing elective procedures for some period of time . many centers may also delay patient follow-up visits during this period out of concern for patient exposure to covid-19 . in alignment with recent fda guidance on clinical trials , “ fda guidance on conduct of clinical trials of medical products during covid-19 pandemic guidance for industry , investigators , and institutional review boards ” , the company is taking steps to address unavoidable protocol deviations due to covid-19 illness and or covid-19 control measures . the fda has approved a second ide for the randomized controlled pivotal trial of the cardiamp cell therapy system in patients with refractory chronic myocardial ischemia for up to 343 patients at up to 40 clinical sites in the united states . this therapeutic approach uses many of the same novel aspects as the cardiamp heart failure trial and is expected to leverage our experience and investment in the heart failure trial . we anticipate that many of the investigators and sites will be the same for both the heart failure and chronic myocardial ischemia indications . we are working to initiate this trial with a 5-patient roll-in cohort . timing is entirely dependent on the course of covid-19 and the response in the united states . cardiallo cell therapy system our second therapeutic candidate is the cardiallo cell therapy system , an investigational culture expanded bone marrow derived “ off the shelf ” mesenchymal cell therapy . story_separator_special_tag share-based compensation expense recognized in the statements of operations is based on awards at the time of grant and is reduced for actual forfeitures at the time that the forfeitures occur . compensation cost for employee share-based awards will be recognized over the vesting period of the applicable award on a straight-line basis . 57 results of operations the table set forth below summarizes our results of operations for the years ended december 31 , 2019 and 2018 ( in thousands ) . the results of operations from 2018 compared to 2017 and related discussion can be found in the company 's annual report on form 10-k for the year ended december 31 , 2018 , filed with the sec on april 2 , 2019 , and such results and related discussion are incorporated herein by reference . replace_table_token_1_th 58 revenue . revenue increased by approximately $ 85,000 in 2019 compared to 2018 primarily due to an increase in collaboration agreement revenues , which offset decreases in net product revenues . we expect collaboration agreement revenues to continue to increase modestly depending on progress in these existing collaborative programs and the initiation of new partnership relationships . net product revenue is expected to be limited during the year and will be subject to customer demand , the availability of production resources for our new morph product family members , and the timing of fda clearance for market release of different models and sizes during the year . cost of goods sold . cost of goods sold decreased by approximately $ 159,000 in 2019 compared to 2018 , primarily due to the decrease in net product revenue . we expect cost of goods sold to decrease in 2020 as manufacturing resources are focused on supporting clinical partners , development activities and the ongoing pivotal cardiamp heart failure trial . research and development expenses . research and development expenses increased by approximately $ 100,000 in 2019 compared to 2018 primarily due to expenses incurred in the execution of the pivotal cardiamp heart failure trial , development of the cardiallo cell therapy system and our other therapeutic programs , including fees paid to consultants and contract research organizations ( cro ) , additional personnel costs and increased stock compensation expense . we expect research and development expenses to increase moderately as we continue enrolling and treating patients in the cardiamp heart failure trial and further develop the cardiamp and cardiallo cell processing and delivery platforms . selling , general and administrative expenses . selling , general and administrative expenses increased by approximately $ 200,000 in 2019 compared to 2018 , primarily due to additional stock-based compensation expense related to the modification of certain stock option awards during the year coupled with higher corporate expenses , including business insurance premiums , additional accounting consulting staff and audit related fees . we expect selling , general and administrative expenses to decrease modestly in 2020 relative to 2019. other income ( expense ) . other income ( expense ) consisted primarily of amounts recognized in relation to the accounting for the convertible notes , including a gain on change in fair value of the embedded redemption feature of $ 52,000 , interest expense associated with the accretion of the debt discount of $ 104,000 , and a loss upon extinguishment of $ 521,000. there were no similar transactions entered into by the company during 2018. interest income of $ 87,000 and $ 112,000 was earned on cash and cash equivalents for the years ended december 31 , 2019 and 2018 , respectively . story_separator_special_tag the costs associated with securing , establishing and maintaining commercialization and manufacturing capabilities ; the number and characteristics of product candidates that we pursue , including our product candidates in preclinical development ; the ability of our product candidates to progress through clinical development successfully ; our need to expand our research and development activities ; the costs of acquiring , licensing or investing in businesses , products , product candidates and technologies ; our ability 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 the licensing , filing , prosecution , defense and enforcement of any patents or other intellectual property rights ; the general and administrative expenses related to being a public company ; our need and ability to hire additional management and scientific , medical and sales personnel ; the effect of competing technological and market developments ; and our need to implement additional internal systems and infrastructure , including financial and reporting systems . 60 until such time that we can generate meaningful revenue from the sales of approved therapies and products , if ever , we expect to finance our operating activities through public or private equity or debt financings , government or other third-party funding , marketing and distribution arrangements , and other collaborations , strategic alliances and licensing arrangements or a combination of these approaches . to the extent that we raise additional capital through the sale of equity or convertible debt securities , the ownership interests of our common stock holders will be diluted , and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our common stock holders . debt financing , if available , may involve agreements that include conversion discounts or covenants limiting or restricting our ability to take specific actions , such as incurring debt , making capital expenditures or declaring dividends . if we raise additional funds through government or other third-party funding , marketing and distribution arrangements or other collaborations , or strategic alliances or licensing arrangements with third parties , we may have to relinquish valuable rights to our technologies , future revenue streams , research programs , products or therapeutic candidates or to grant licenses on terms that may

liquidity and capital resources we have incurred net losses each year since our inception and as of december 31 , 2019 , we had an accumulated deficit of approximately $ 101.1 million . we anticipate that we will continue to incur net losses for at least the next several years . we have funded our operations principally through the sales of equity and convertible debt securities as well as the cash acquired through the merger . as of december 31 , 2019 , we had cash and cash equivalents of approximately $ 5.6 million . the following table shows a summary of our cash flows for the periods indicated ( in thousands ) : replace_table_token_2_th cash flows from operating activities . the decrease in cash used for operating activities of $ 1.6 million in 2019 compared to 2018 related primarily to increases in noncurrent customer deposits and deferred revenue , and board cash compensation that was deferred during the year , coupled with 2018 management bonuses being settled in equity in 2019 instead of cash . non-cash expenses recognized in 2019 in operations included reduction of the operating lease right-of-use asset of $ 440,000 , extinguishment of debt related to convertible notes payable of $ 521,000 , interest expense totaling $ 112,000 , which included accretion of the debt discount of approximately $ 104,000 , partially offset by a gain of $ 52,000 to mark derivatives to fair value upon settlement .

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 incurred net losses each year since our inception and as of december 31 , 2019 , we had an accumulated deficit of approximately $ 101.1 million . we anticipate that we will continue to incur net losses for at least the next several years . we have funded our operations principally through the sales of equity and convertible debt securities as well as the cash acquired through the merger . as of december 31 , 2019 , we had cash and cash equivalents of approximately $ 5.6 million . the following table shows a summary of our cash flows for the periods indicated ( in thousands ) : replace_table_token_2_th cash flows from operating activities . the decrease in cash used for operating activities of $ 1.6 million in 2019 compared to 2018 related primarily to increases in noncurrent customer deposits and deferred revenue , and board cash compensation that was deferred during the year , coupled with 2018 management bonuses being settled in equity in 2019 instead of cash . non-cash expenses recognized in 2019 in operations included reduction of the operating lease right-of-use asset of $ 440,000 , extinguishment of debt related to convertible notes payable of $ 521,000 , interest expense totaling $ 112,000 , which included accretion of the debt discount of approximately $ 104,000 , partially offset by a gain of $ 52,000 to mark derivatives to fair value upon settlement . ``` Suspicious Activity Report : as we engage in clinical trials of our therapeutic candidates , we have compensated and intend to compensate all parties performing the trials or studies only on terms that are standard and customary in clinical study arrangements . to date , we have devoted substantially all of our resources to research and development efforts relating to our therapeutic candidates and biotherapeutic delivery systems , including conducting clinical trials , developing manufacturing and sales capabilities , in-licensing related intellectual property , providing general and administrative support for these operations and protecting our intellectual property . we have also generated modest revenues from sales of our approved products . we have funded our operations primarily through the sales of equity and convertible debt securities , and certain government and private grants . cardiamp cell therapy system we initiated our u.s. food and drug administration , or fda , accepted phase iii pivotal trial for cardiamp cell therapy in ischemic systolic heart failure , in december 2016. the cardiamp heart failure trial is a phase iii , multi-center , randomized , double-blinded , sham-controlled study of up to 260 patients at 40 centers nationwide , which includes a 10-patient roll-in cohort . the phase iii pivotal trial is designed to provide the primary support for the safety and efficacy of the cardiamp cell therapy system . the trial 's primary endpoint is a clinical composite of major adverse cardiac and cerebrovascular events and functional capacity as measured by six minute walk distance . based on the results achieved in the phase ii trial , our phase iii pivotal trial is designed to have more than 95 % probability of achieving a positive result with statistical significance . the ongoing cardiamp heart failure trial is enrolling today at 25 clinical sites . the trial investigators have enrolled 74 patients to date . on march 31 , 2020 , the company announced that the dsmb completed a prespecified data review , and that based on the dsmb 's review of all available safety data for patients randomized in the trial to date , there were no safety concerns and that the dsmb recommended continuing the trial as planned . in the fourth quarter of 2020 , a prespecified dsmb interim readout from the trial will include all patients enrolled at that time point , and include our first dsmb review of efficacy on 60 patients at the one year follow-up , which includes the primary endpoint . enrollment remains our primary focus and challenge . we have recently identified two barriers for patients to participate in the trial . the first of these is that prospective patients are interested in receiving therapy and are concerned about being in a non-treated control arm that does not have a path to receive therapy . secondly , the requirement for patient out of pocket copays in our medicare reimbursed trial presents an additional impediment to patient follow-up . to address these barriers to patient participation , we submitted an investigational device exemption ( ide ) supplement to the fda with changes to enable patients in the control arm to “ cross over ” to therapy after certain follow-up visits in the trial have been completed , which assures the trial control arm patients early access to therapy if the trial meets its primary endpoint and is deemed appropriate for the patients by their physicians , and to enable biocardia to cover the costs of all patient co-pays so that participation in the investigational trial is free for insured patients . the fda has recently approved this ide supplement . these changes , coupled with site specific plans intended to further accelerate enrollment , are being actively rolled out . we have been excited by an enormous uptick in the number of patient informed consents received for participation in the cardiamp heart failure trial in march 2020 and a number of centers finally coming online , however this solid progress has been delayed by covid-19 . 54 we are currently assessing the impact of covid-19 on the enrollment in the cardiamp heart failure trial . a number of clinical centers have already advised the company that they will not be performing elective procedures for some period of time . many centers may also delay patient follow-up visits during this period out of concern for patient exposure to covid-19 . in alignment with recent fda guidance on clinical trials , “ fda guidance on conduct of clinical trials of medical products during covid-19 pandemic guidance for industry , investigators , and institutional review boards ” , the company is taking steps to address unavoidable protocol deviations due to covid-19 illness and or covid-19 control measures . the fda has approved a second ide for the randomized controlled pivotal trial of the cardiamp cell therapy system in patients with refractory chronic myocardial ischemia for up to 343 patients at up to 40 clinical sites in the united states . this therapeutic approach uses many of the same novel aspects as the cardiamp heart failure trial and is expected to leverage our experience and investment in the heart failure trial . we anticipate that many of the investigators and sites will be the same for both the heart failure and chronic myocardial ischemia indications . we are working to initiate this trial with a 5-patient roll-in cohort . timing is entirely dependent on the course of covid-19 and the response in the united states . cardiallo cell therapy system our second therapeutic candidate is the cardiallo cell therapy system , an investigational culture expanded bone marrow derived “ off the shelf ” mesenchymal cell therapy . story_separator_special_tag share-based compensation expense recognized in the statements of operations is based on awards at the time of grant and is reduced for actual forfeitures at the time that the forfeitures occur . compensation cost for employee share-based awards will be recognized over the vesting period of the applicable award on a straight-line basis . 57 results of operations the table set forth below summarizes our results of operations for the years ended december 31 , 2019 and 2018 ( in thousands ) . the results of operations from 2018 compared to 2017 and related discussion can be found in the company 's annual report on form 10-k for the year ended december 31 , 2018 , filed with the sec on april 2 , 2019 , and such results and related discussion are incorporated herein by reference . replace_table_token_1_th 58 revenue . revenue increased by approximately $ 85,000 in 2019 compared to 2018 primarily due to an increase in collaboration agreement revenues , which offset decreases in net product revenues . we expect collaboration agreement revenues to continue to increase modestly depending on progress in these existing collaborative programs and the initiation of new partnership relationships . net product revenue is expected to be limited during the year and will be subject to customer demand , the availability of production resources for our new morph product family members , and the timing of fda clearance for market release of different models and sizes during the year . cost of goods sold . cost of goods sold decreased by approximately $ 159,000 in 2019 compared to 2018 , primarily due to the decrease in net product revenue . we expect cost of goods sold to decrease in 2020 as manufacturing resources are focused on supporting clinical partners , development activities and the ongoing pivotal cardiamp heart failure trial . research and development expenses . research and development expenses increased by approximately $ 100,000 in 2019 compared to 2018 primarily due to expenses incurred in the execution of the pivotal cardiamp heart failure trial , development of the cardiallo cell therapy system and our other therapeutic programs , including fees paid to consultants and contract research organizations ( cro ) , additional personnel costs and increased stock compensation expense . we expect research and development expenses to increase moderately as we continue enrolling and treating patients in the cardiamp heart failure trial and further develop the cardiamp and cardiallo cell processing and delivery platforms . selling , general and administrative expenses . selling , general and administrative expenses increased by approximately $ 200,000 in 2019 compared to 2018 , primarily due to additional stock-based compensation expense related to the modification of certain stock option awards during the year coupled with higher corporate expenses , including business insurance premiums , additional accounting consulting staff and audit related fees . we expect selling , general and administrative expenses to decrease modestly in 2020 relative to 2019. other income ( expense ) . other income ( expense ) consisted primarily of amounts recognized in relation to the accounting for the convertible notes , including a gain on change in fair value of the embedded redemption feature of $ 52,000 , interest expense associated with the accretion of the debt discount of $ 104,000 , and a loss upon extinguishment of $ 521,000. there were no similar transactions entered into by the company during 2018. interest income of $ 87,000 and $ 112,000 was earned on cash and cash equivalents for the years ended december 31 , 2019 and 2018 , respectively . story_separator_special_tag the costs associated with securing , establishing and maintaining commercialization and manufacturing capabilities ; the number and characteristics of product candidates that we pursue , including our product candidates in preclinical development ; the ability of our product candidates to progress through clinical development successfully ; our need to expand our research and development activities ; the costs of acquiring , licensing or investing in businesses , products , product candidates and technologies ; our ability 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 the licensing , filing , prosecution , defense and enforcement of any patents or other intellectual property rights ; the general and administrative expenses related to being a public company ; our need and ability to hire additional management and scientific , medical and sales personnel ; the effect of competing technological and market developments ; and our need to implement additional internal systems and infrastructure , including financial and reporting systems . 60 until such time that we can generate meaningful revenue from the sales of approved therapies and products , if ever , we expect to finance our operating activities through public or private equity or debt financings , government or other third-party funding , marketing and distribution arrangements , and other collaborations , strategic alliances and licensing arrangements or a combination of these approaches . to the extent that we raise additional capital through the sale of equity or convertible debt securities , the ownership interests of our common stock holders will be diluted , and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our common stock holders . debt financing , if available , may involve agreements that include conversion discounts or covenants limiting or restricting our ability to take specific actions , such as incurring debt , making capital expenditures or declaring dividends . if we raise additional funds through government or other third-party funding , marketing and distribution arrangements or other collaborations , or strategic alliances or licensing arrangements with third parties , we may have to relinquish valuable rights to our technologies , future revenue streams , research programs , products or therapeutic candidates or to grant licenses on terms that may

specifically , subsequent evaluations of the loan portfolio , in light of the factors then prevailing , may result in significant changes in the alll in future periods , and the inability to collect on outstanding loans could result in increased loan losses . in addition , the valuation of certain securities in the company 's investment portfolio could be negatively impacted by illiquidity or dislocation in marketplaces resulting in significantly depressed market prices thus leading to further impairment losses . allowance for loan and lease losses the alll is established as losses are estimated to have occurred through a provision for loan losses charged to earnings , and is maintained at a level that management considers adequate to absorb losses in the loan portfolio . loans are charged against the alll when management believes the uncollectability of a loan balance is confirmed . subsequent recoveries , if any , are credited to the alll . the alll represents management 's estimate of probable loan losses inherent in the loan portfolio . determining the amount of the alll is considered a critical accounting estimate because it requires significant judgment and the use of estimates related to the amount and timing of expected future cash flows on impaired loans , estimated losses on pools of homogeneous loans based on historical loss experience , qualitative factors , and consideration of current economic trends and conditions , all of which may be susceptible to significant change . various banking regulators , as an integral part of their examination of the company , also review the alll . such regulators may require , based on their judgments about information available to them at the time of their examination , that certain loan 30 balances be charged off or require that adjustments be made to the alll . additionally , the alll is determined , in part , by the composition and size of the loan portfolio . the alll consists of specific and general components . the specific component relates to loans that are classified as impaired . for such loans an allowance is established when the discounted cash flows , collateral value or observable market price of the impaired loan is lower than the carrying value of that loan . the general component covers all other loans and is based on historical loss experience adjusted by qualitative factors . the general reserve component of the alll is based on pools of unimpaired loans segregated generally by loan type and risk rating categories of “pass” , “special mention” or “substandard and accruing , ” and historical loss factors and varied qualitative factor basis point allocations are applied based on the risk profile in each pool to determine the appropriate reserve related to those loans . substandard loans on nonaccrual status are included in impaired loans . see note 2-”summary of significant accounting policies” and note 5-”loans” of the consolidated financial statements included in item 8-”financial statements and supplementary data” for additional information about the alll . securities valuation management utilizes various inputs to determine the fair value of its investment portfolio . to the extent they exist , unadjusted quoted market prices in active markets ( level 1 ) or quoted prices on similar assets or models using inputs that are observable , either directly or indirectly ( level 2 ) are utilized to determine the fair value of each investment in the portfolio . in the absence of observable inputs or if markets are illiquid , valuation techniques would be used to determine fair value of any investments that require inputs that are both unobservable and significant to the fair value measurement ( level 3 ) . for level 3 inputs , valuation techniques are based on various assumptions , including , but not limited to cash flows , discount rates , adjustments for nonperformance and liquidity , and liquidation values . a significant degree of judgment is involved in valuing investments using level 3 inputs . the use of different assumptions could have a positive or negative effect on the consolidated financial condition or results of operations . see note 4-”securities” and note 18-”fair value measurements” of the consolidated financial statements included in item 8 hereof for more information about our securities valuation techniques . management must periodically evaluate if unrealized losses ( as determined based on the securities valuation methodologies discussed above ) on individual securities classified as held-to-maturity or available-for-sale in the investment portfolio are considered to be otti . the analysis of otti requires the use of various assumptions , including but not limited to , the length of time an investment 's fair value is less than book value , the severity of the investment 's decline , any credit deterioration of the issuer , whether management intends to sell the security , and whether it is more-likely-than-not that the company will be required to sell the security prior to recovery of its amortized cost basis . debt investment securities deemed to be otti are written down by the impairment related to the estimated credit loss and the non-credit related impairment loss is recognized in other comprehensive income . the company recognized otti charges on securities of $ 0.8 million , $ 4.3 million , and $ 20.6 in 2011 , 2010 , and 2009 , respectively , within the consolidated statements of operations . for 2011 , the otti charges relate to estimated credit losses on pooled trust preferred securities . see note 4-”securities” included in item 8-”financial statements and supplementary data” to the consolidated financial statements for additional information about our otti charges . other real estate owned other real estate owned ( “oreo” ) consists of property acquired by foreclosure or deed in-lieu of foreclosure . it is held for sale and is initially recorded at fair value less cost to sell at the date of foreclosure , which establishes a new cost basis . story_separator_special_tag fees , both primarily attributable to increased audit , regulatory compliance , and restatement expenses , and a $ 1.0 million increase in salary and benefits expenses . the company 's return on average assets for the years ended december 31 , 2011 and 2010 was ( 0.03 % ) and ( 2.44 % ) , respectively , while the return on average equity was ( 0.98 % ) and ( 59.44 % ) , respectively . net interest income net interest income consists of interest income and fees on interest-earning assets less interest expense on deposits and borrowed funds . it represents the largest component of the company 's operating income and , as such , is the primary determinant of profitability . the net interest margin on a fully tax-equivalent basis is calculated by dividing tax-equivalent net interest income by average interest-earning assets and is a key measurement used in the banking industry to measure income from earning assets . the net interest margin was 3.10 % for the year ended december 31 , 2011 , an increase of 3 basis points compared to the same period in 2010. this increase in the net interest margin was primarily due to a 15.9 % decrease in interest-bearing liabilities , partially offset by a 14.8 % decrease in interest-earning assets . rate spread , the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities shown on a fully tax-equivalent basis was 3.0 % for 2011 , an increase of 6 basis points versus 2010. net interest income on a tax-equivalent basis decreased $ 5.2 million to $ 32.5 million for 2011 compared with $ 37.7 million for 2010. during 2011 , lower average securities and loan balances and lower yields on interest-earning assets negatively impacted our net interest income . the yield on loans and investments declined 31 basis points and 21 basis points , respectively , partially offset by a 47 basis point decline in the cost of average interest-bearing liabilities and lower average interest-bearing liabilities as compared to 2010. the federal reserve kept interest rates stable during 2011 leaving the federal funds rate at an historic low of 25 basis points . the company 's floating rate loans are largely indexed to the national prime rate and many of these loans are now at their floors and will remain there until the prime rate moves up enough for their rates to move above their floors . in addition , most of the time deposits in the company 's funding portfolio matured and renewed at lower market rates in 2011. average loans totaled $ 723.7 million for the year ended december 31 , 2011 , a decrease of $ 155.3 million , or 17.7 % , compared to the same period for 2010. the reduction is primarily due to the net pay downs of real estate loans and commercial and industrial loans of $ 51.6 million and $ 23.5 million , respectively ; the transfer of $ 4.0 million of foreclosed loans into oreo ; and a smaller portfolio at the onset of 2011. during 2011 , loan satisfactions continued to outpace originations and the company continued to focus its efforts on reducing exposure to higher risk construction , land acquisition and development loans by allowing $ 43.9 million of this segment of the portfolio to pay-off . interest income on a tax equivalent basis for loans decreased $ 10.3 million due to the decrease in average loans and a 31 basis point decrease in the average loan yield as loans continued to reset at lower rates and new business was originated at lower market rates compared with 2010. the interest income that would have been earned on non-accrual and restructured loans outstanding at december 31 , 2011 , 2010 and 2009 in accordance with their original terms approximated $ 2.2 million , $ 2.9 million , and $ 2.8 million , respectively . interest income on impaired loans of $ 238 thousand , $ 619 thousand , and $ 976 thousand was recognized based on payments received in 2011 , 2010 and 2009. average investment securities totaled $ 232.8 million , a decrease of $ 49.2 million , or 17.5 % , in 2011 compared to 2010. interest income on a tax equivalent basis for investment securities decreased $ 2.9 million primarily due to reinvestment of pay downs and maturities into more liquid lower yielding securities . average interest-bearing deposits in other banks increased $ 23.0 million as the company increased its holdings of liquid assets . interest income on interest-bearing deposits in other banks increased $ 17 thousand as the increase in volume more than offset the 4 basis point decline in yield earned . 35 average interest-bearing liabilities totaled $ 969.6 million for the year ended december 31 , 2011 , a decrease of $ 182.8 million , or 15.9 % , during 2011 compared to the same period in 2010 due to a decrease in interest-bearing deposits of $ 97.9 million , or 10.2 % , and a decrease in borrowings of $ 84.9 million , or 43.2 % . average interest-bearing demand deposits , savings deposits , time deposits over $ 100 thousand , and other time deposits decreased $ 18.4 million , $ 4.1 million , $ 44.3 million and $ 31.1 million , respectively . during 2011 , the company implemented a pricing strategy to reduce its cost of funds and to concentrate deposit growth on short-term maturities . the company repositioned maturing longer term time deposits into short-term products , whenever possible , and allowed the residual to run-off . the company used the net proceeds from the sale of investment securities and a portion of the funds provided from loan repayments to fund deposit withdrawals and the maturities of the higher cost time deposits . the cost of interest-bearing demand deposits , savings deposits , time deposits over $ 100 thousand , and other

liquidity the term liquidity refers to the ability of the company to generate sufficient amounts of cash to meet its cash flow needs . liquidity is required to fulfill the borrowing needs of the company 's credit customers and the withdrawal and maturity requirements of its deposit customers , as well as to meet other financial commitments . cash and cash equivalents ( cash and due from banks , interest-bearing deposits in other banks and federal funds sold ) are the company 's most liquid assets . at december 31 , 2011 , cash and cash equivalents totaled $ 168.6 million , compared to $ 74.5 million at december 31 , 2010 , an increase of $ 94.1 million . cash flows from investing activities provided $ 170.2 million and operating activities provided $ 3.3 million of cash and cash equivalents during the year , while financing activities utilized $ 79.3 million . the cash flows provided by investing activities were largely attributable to the $ 74.0 million in net loan repayments by customers and $ 88.7 million net reduction in investments . the $ 79.3 million used by financing activities reflected $ 53.6 million of repayments of fhlb advances , net of new advances , as well as the run-off of $ 41.5 million of higher-cost time deposits . cash flows from financing activities were positively affected by the $ 16.2 million increase in lower-cost transaction and savings accounts . core deposits , which represent the company 's primary source of liquidity , averaged $ 745 million in 2011 , a decrease of $ 34 million from the $ 779 million in 2010. core deposits are comprised of total deposit liabilities less : brokered deposits , deposits generated through the certificate of deposit account registry service ( “cdars” ) and all certificates of deposit accounts with balances greater than $ 100 thousand . the company has other potential sources of liquidity including the ability to borrow on credit lines established at the federal home loan bank of pittsburgh and access to the federal reserve discount window .

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 the term liquidity refers to the ability of the company to generate sufficient amounts of cash to meet its cash flow needs . liquidity is required to fulfill the borrowing needs of the company 's credit customers and the withdrawal and maturity requirements of its deposit customers , as well as to meet other financial commitments . cash and cash equivalents ( cash and due from banks , interest-bearing deposits in other banks and federal funds sold ) are the company 's most liquid assets . at december 31 , 2011 , cash and cash equivalents totaled $ 168.6 million , compared to $ 74.5 million at december 31 , 2010 , an increase of $ 94.1 million . cash flows from investing activities provided $ 170.2 million and operating activities provided $ 3.3 million of cash and cash equivalents during the year , while financing activities utilized $ 79.3 million . the cash flows provided by investing activities were largely attributable to the $ 74.0 million in net loan repayments by customers and $ 88.7 million net reduction in investments . the $ 79.3 million used by financing activities reflected $ 53.6 million of repayments of fhlb advances , net of new advances , as well as the run-off of $ 41.5 million of higher-cost time deposits . cash flows from financing activities were positively affected by the $ 16.2 million increase in lower-cost transaction and savings accounts . core deposits , which represent the company 's primary source of liquidity , averaged $ 745 million in 2011 , a decrease of $ 34 million from the $ 779 million in 2010. core deposits are comprised of total deposit liabilities less : brokered deposits , deposits generated through the certificate of deposit account registry service ( “cdars” ) and all certificates of deposit accounts with balances greater than $ 100 thousand . the company has other potential sources of liquidity including the ability to borrow on credit lines established at the federal home loan bank of pittsburgh and access to the federal reserve discount window . ``` Suspicious Activity Report : specifically , subsequent evaluations of the loan portfolio , in light of the factors then prevailing , may result in significant changes in the alll in future periods , and the inability to collect on outstanding loans could result in increased loan losses . in addition , the valuation of certain securities in the company 's investment portfolio could be negatively impacted by illiquidity or dislocation in marketplaces resulting in significantly depressed market prices thus leading to further impairment losses . allowance for loan and lease losses the alll is established as losses are estimated to have occurred through a provision for loan losses charged to earnings , and is maintained at a level that management considers adequate to absorb losses in the loan portfolio . loans are charged against the alll when management believes the uncollectability of a loan balance is confirmed . subsequent recoveries , if any , are credited to the alll . the alll represents management 's estimate of probable loan losses inherent in the loan portfolio . determining the amount of the alll is considered a critical accounting estimate because it requires significant judgment and the use of estimates related to the amount and timing of expected future cash flows on impaired loans , estimated losses on pools of homogeneous loans based on historical loss experience , qualitative factors , and consideration of current economic trends and conditions , all of which may be susceptible to significant change . various banking regulators , as an integral part of their examination of the company , also review the alll . such regulators may require , based on their judgments about information available to them at the time of their examination , that certain loan 30 balances be charged off or require that adjustments be made to the alll . additionally , the alll is determined , in part , by the composition and size of the loan portfolio . the alll consists of specific and general components . the specific component relates to loans that are classified as impaired . for such loans an allowance is established when the discounted cash flows , collateral value or observable market price of the impaired loan is lower than the carrying value of that loan . the general component covers all other loans and is based on historical loss experience adjusted by qualitative factors . the general reserve component of the alll is based on pools of unimpaired loans segregated generally by loan type and risk rating categories of “pass” , “special mention” or “substandard and accruing , ” and historical loss factors and varied qualitative factor basis point allocations are applied based on the risk profile in each pool to determine the appropriate reserve related to those loans . substandard loans on nonaccrual status are included in impaired loans . see note 2-”summary of significant accounting policies” and note 5-”loans” of the consolidated financial statements included in item 8-”financial statements and supplementary data” for additional information about the alll . securities valuation management utilizes various inputs to determine the fair value of its investment portfolio . to the extent they exist , unadjusted quoted market prices in active markets ( level 1 ) or quoted prices on similar assets or models using inputs that are observable , either directly or indirectly ( level 2 ) are utilized to determine the fair value of each investment in the portfolio . in the absence of observable inputs or if markets are illiquid , valuation techniques would be used to determine fair value of any investments that require inputs that are both unobservable and significant to the fair value measurement ( level 3 ) . for level 3 inputs , valuation techniques are based on various assumptions , including , but not limited to cash flows , discount rates , adjustments for nonperformance and liquidity , and liquidation values . a significant degree of judgment is involved in valuing investments using level 3 inputs . the use of different assumptions could have a positive or negative effect on the consolidated financial condition or results of operations . see note 4-”securities” and note 18-”fair value measurements” of the consolidated financial statements included in item 8 hereof for more information about our securities valuation techniques . management must periodically evaluate if unrealized losses ( as determined based on the securities valuation methodologies discussed above ) on individual securities classified as held-to-maturity or available-for-sale in the investment portfolio are considered to be otti . the analysis of otti requires the use of various assumptions , including but not limited to , the length of time an investment 's fair value is less than book value , the severity of the investment 's decline , any credit deterioration of the issuer , whether management intends to sell the security , and whether it is more-likely-than-not that the company will be required to sell the security prior to recovery of its amortized cost basis . debt investment securities deemed to be otti are written down by the impairment related to the estimated credit loss and the non-credit related impairment loss is recognized in other comprehensive income . the company recognized otti charges on securities of $ 0.8 million , $ 4.3 million , and $ 20.6 in 2011 , 2010 , and 2009 , respectively , within the consolidated statements of operations . for 2011 , the otti charges relate to estimated credit losses on pooled trust preferred securities . see note 4-”securities” included in item 8-”financial statements and supplementary data” to the consolidated financial statements for additional information about our otti charges . other real estate owned other real estate owned ( “oreo” ) consists of property acquired by foreclosure or deed in-lieu of foreclosure . it is held for sale and is initially recorded at fair value less cost to sell at the date of foreclosure , which establishes a new cost basis . story_separator_special_tag fees , both primarily attributable to increased audit , regulatory compliance , and restatement expenses , and a $ 1.0 million increase in salary and benefits expenses . the company 's return on average assets for the years ended december 31 , 2011 and 2010 was ( 0.03 % ) and ( 2.44 % ) , respectively , while the return on average equity was ( 0.98 % ) and ( 59.44 % ) , respectively . net interest income net interest income consists of interest income and fees on interest-earning assets less interest expense on deposits and borrowed funds . it represents the largest component of the company 's operating income and , as such , is the primary determinant of profitability . the net interest margin on a fully tax-equivalent basis is calculated by dividing tax-equivalent net interest income by average interest-earning assets and is a key measurement used in the banking industry to measure income from earning assets . the net interest margin was 3.10 % for the year ended december 31 , 2011 , an increase of 3 basis points compared to the same period in 2010. this increase in the net interest margin was primarily due to a 15.9 % decrease in interest-bearing liabilities , partially offset by a 14.8 % decrease in interest-earning assets . rate spread , the difference between the average yield on interest-earning assets and the average cost of interest-bearing liabilities shown on a fully tax-equivalent basis was 3.0 % for 2011 , an increase of 6 basis points versus 2010. net interest income on a tax-equivalent basis decreased $ 5.2 million to $ 32.5 million for 2011 compared with $ 37.7 million for 2010. during 2011 , lower average securities and loan balances and lower yields on interest-earning assets negatively impacted our net interest income . the yield on loans and investments declined 31 basis points and 21 basis points , respectively , partially offset by a 47 basis point decline in the cost of average interest-bearing liabilities and lower average interest-bearing liabilities as compared to 2010. the federal reserve kept interest rates stable during 2011 leaving the federal funds rate at an historic low of 25 basis points . the company 's floating rate loans are largely indexed to the national prime rate and many of these loans are now at their floors and will remain there until the prime rate moves up enough for their rates to move above their floors . in addition , most of the time deposits in the company 's funding portfolio matured and renewed at lower market rates in 2011. average loans totaled $ 723.7 million for the year ended december 31 , 2011 , a decrease of $ 155.3 million , or 17.7 % , compared to the same period for 2010. the reduction is primarily due to the net pay downs of real estate loans and commercial and industrial loans of $ 51.6 million and $ 23.5 million , respectively ; the transfer of $ 4.0 million of foreclosed loans into oreo ; and a smaller portfolio at the onset of 2011. during 2011 , loan satisfactions continued to outpace originations and the company continued to focus its efforts on reducing exposure to higher risk construction , land acquisition and development loans by allowing $ 43.9 million of this segment of the portfolio to pay-off . interest income on a tax equivalent basis for loans decreased $ 10.3 million due to the decrease in average loans and a 31 basis point decrease in the average loan yield as loans continued to reset at lower rates and new business was originated at lower market rates compared with 2010. the interest income that would have been earned on non-accrual and restructured loans outstanding at december 31 , 2011 , 2010 and 2009 in accordance with their original terms approximated $ 2.2 million , $ 2.9 million , and $ 2.8 million , respectively . interest income on impaired loans of $ 238 thousand , $ 619 thousand , and $ 976 thousand was recognized based on payments received in 2011 , 2010 and 2009. average investment securities totaled $ 232.8 million , a decrease of $ 49.2 million , or 17.5 % , in 2011 compared to 2010. interest income on a tax equivalent basis for investment securities decreased $ 2.9 million primarily due to reinvestment of pay downs and maturities into more liquid lower yielding securities . average interest-bearing deposits in other banks increased $ 23.0 million as the company increased its holdings of liquid assets . interest income on interest-bearing deposits in other banks increased $ 17 thousand as the increase in volume more than offset the 4 basis point decline in yield earned . 35 average interest-bearing liabilities totaled $ 969.6 million for the year ended december 31 , 2011 , a decrease of $ 182.8 million , or 15.9 % , during 2011 compared to the same period in 2010 due to a decrease in interest-bearing deposits of $ 97.9 million , or 10.2 % , and a decrease in borrowings of $ 84.9 million , or 43.2 % . average interest-bearing demand deposits , savings deposits , time deposits over $ 100 thousand , and other time deposits decreased $ 18.4 million , $ 4.1 million , $ 44.3 million and $ 31.1 million , respectively . during 2011 , the company implemented a pricing strategy to reduce its cost of funds and to concentrate deposit growth on short-term maturities . the company repositioned maturing longer term time deposits into short-term products , whenever possible , and allowed the residual to run-off . the company used the net proceeds from the sale of investment securities and a portion of the funds provided from loan repayments to fund deposit withdrawals and the maturities of the higher cost time deposits . the cost of interest-bearing demand deposits , savings deposits , time deposits over $ 100 thousand , and other

as a member of the group of companies consolidated for u.s. federal income tax purposes with contran , the parent of our consolidated u.s. federal income tax group , we compute our provision for income taxes on a separate company basis , using the tax elections made by contran . our effective income tax rate was 23 % in 2017 , 25 % in 2018 and 24 % in 2019. on december 22 , 2017 , h.r.1 , formally known as the “ tax cuts and jobs act ” ( “ 2017 tax act ” ) was enacted into law . this tax legislation , among other changes , ( i ) reduced the u.s federal corporate income tax rate from 35 % to 21 % effective january 1 , 2018 ; ( ii ) eliminated the domestic production activities deduction beginning in 2018 ; and ( iii ) allowed the expensing of certain capital expenditures . following the enactment of the 2017 tax act , the securities and exchange commission issued staff accounting bulletin ( sab ) 118 to provide guidance on the accounting and reporting impacts of the 2017 tax act . sab 118 required that companies account for changes related to the 2017 tax act in - 13 - the period of enactment unless the impact of such changes coul d not be reasonably estimated . such revaluation resulted in a non-cash deferred income tax benefit of $ 1.9 million recognized in continuing operations for the period ended december 31 , 2017 , reducing our net deferred income tax liability as of that date . during 2018 we finalized our analys is of the 2017 tax act and recorded an immaterial adjustment within the defined measurement period . see notes 7 and 10 to our consolidated financial statements . while our effective income tax rate for 2018 was favorably impacted by the reduction in the u.s. federal statutory income tax rate from 35 % to 21 % , our effective income tax rate was higher in 2018 as compared to 2017 due to the $ 1.9 million non-cash deferred income tax benefit recognized in 2017 resulting from the revaluation of our net deferred income tax liability discussed above . our effective income tax rate was lower in 2019 as compared to 2018 primarily due to recognizing a current cash tax benefit of $ 0.2 million in 2019 resulting from a deduction under the foreign derived intangible income provisions ( $ 0.1 million of such current cash tax benefit is related to 2018 ) . segment results the key performance indicator for our segments is the level of their operating income ( see discussion below ) . for additional information regarding our segments refer to note 2 to our consolidated financial statements . replace_table_token_3_th security products . security products net sales increased 1 % to $ 99.3 million in 2019 compared to $ 98.4 million in 2018 , primarily due to higher sales to government security and medical cart manufacturing markets , partially offset by lower sales to the transportation , electronic control panel and distribution markets . as a percentage of sales , gross margin and operating income for 2019 declined as compared to 2018 primarily due to increased labor rates and associated payroll costs resulting from regional pressure on wages for certain skilled labor positions , partially offset by favorable medical costs . security products net sales increased 2 % to $ 98.4 million in 2018 compared to $ 96.6 million in 2017 , primarily due to higher sales to the transportation and office furniture markets . as a percentage of sales , gross margin for 2018 increased slightly over 2017 due to lower production costs , including headcount reductions made during the second quarter of 2017 , and improved coverage of fixed costs over increased production volumes . operating costs and expenses for 2018 were slightly lower than 2017. as a result , security products operating income as a percentage of net sales for 2018 exceeded 2017 . - 14 - replace_table_token_4_th marine components . marine components net sales increased 26 % in 2019 as compared to 2018 primarily due to increased sales to the towboat market , primarily wake enhancement systems and surf pipes to an original equipment boat manufacturer . gross margin as a percentage of sales in 2019 was comparable to 2018. operating income as a percentage of net sales increased in 2019 compared to 2018 principally due to improved leverage on operating costs and expenses facilitated by higher production volumes . marine components net sales increased 29 % in 2018 as compared to 2017 as a result of continued strong demand for our products , particularly those sold to the ski/wakeboard boat market as well as to manufacturers of large center-console boats and industrial customers . gross margin and operating income as a percentage of net sales increased in 2018 compared to 2017 principally due to improved fixed cost leverage facilitated by higher production volumes . outlook . 2019 was a breakout year for our marine components segment which sustained the significant growth we experienced in the second half of 2018 for the full year of 2019. we expect growth of this segment to be more normalized in 2020. our security products segment experienced modest sales growth in 2019 ; however we began to notice headwinds late in 2019 which may carry into 2020. in 2020 , we plan to capitalize on the positive momentum our marine components segment has experienced over the last two years while maintaining strong results in our security products segment . story_separator_special_tag we will continue to monitor economic conditions and sales order rates and respond to fluctuations in customer demand through continuous evaluation of staffing levels and consistent execution of our lean manufacturing and cost improvement initiatives . additionally , we continue to seek opportunities to gain market share in markets we currently serve , to expand into new markets and to develop new product features in order to mitigate the impact of changes in demand as well as broaden our sales base . critical accounting policies and estimates our significant accounting policies are more fully described in note 1 to our consolidated financial statements . our consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the united states of america ( gaap ) which requires us to make estimates , judgments , and assumptions we believe are reasonable based on our historical experience , contract terms , observations of known trends in our company and the industry as a whole and information available from other outside sources . our estimates affect the reported amounts of assets and liabilities and related disclosures of contingent assets and liabilities at the date of the financial statements , and the reported amounts of revenue and expense during the reporting period . actual results may differ from initial estimates . we believe the most critical accounting policies and estimates involving significant judgments and estimates primarily relate to the considerations in the impairment assessments for goodwill and certain long-lived assets . we have discussed the development , selection and disclosure of our critical accounting estimates with the audit committee of our board of directors . goodwill – our goodwill totaled $ 23.7 million at december 31 , 2019 , all relating to our security products segment . goodwill is required to be tested annually or at other times whenever an event occurs or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below - 15 - its carrying value . we pe rform our annual goodwill impairment test in the third quarter of each year . in addition , adverse industry or economic trends , lower projections of profitability , or a sustained decline in our market capitalization , among other items , may be indications of potential impairment issues which are triggering events requiring the testing of an asset 's carrying value for recoverability . an entity may first assess qualitative factors to determine whether it is necessary to complete the two-step quantitative impair ment test using a more-likely-than-not criteria . if an entity believes it is more-likely-than-not the fair value of a reporting unit is greater than its carrying value , including goodwill , the two-step quantitative impairment test can be bypassed . alternat ively , an entity has an unconditional option to bypass the qualitative assessment and proceed directly to performing the two-step quantitative impairment test . when performing a qualitative assessment considerable management judgment is necessary to evaluate the qualitative impact of events and circumstances on the fair value of a reporting unit . events and circumstances considered in our impairment evaluations , such as historical profits and stability of the markets served , are consistent with factors utilized with our internal projections and operating plan . however , future events and circumstances could result in materially different findings which could result in the recognition of a material goodwill impairment . evaluations of possible impairment utilizing the two-step quantitative impairment test require us to estimate , among other factors : forecasts of future operating results , revenue growth , operating margin , tax rates , capital expenditures , depreciation , working capital , weighted average cost of capital , long-term growth rates , risk premiums , terminal values , and fair values of our reporting units and assets . the goodwill impairment test is subject to uncertainties arising from such events as changes in competitive conditions , the current general economic environment , material changes in growth rate assumptions that could positively or negatively impact anticipated future operating conditions and cash flows , changes in the discount rate , and the impact of strategic decisions . if any of these factors were to materially change such change may require revaluation of our goodwill . changes in estimates or the application of alternative assumptions could produce significantly different results . in 2019 , we used the qualitative assessment for our annual impairment test and determined it was not necessary to perform the quantitative goodwill impairment test , as we concluded it is more-likely- than-not the fair value of the security products reporting unit exceeded its carrying amount . see notes 1 and 5 to our consolidated financial statements . long-lived assets – the net book value of our property and equipment totaled $ 31.0 million at december 31 , 2019. we assess property and equipment for impairment only when circumstances indicate an impairment may exist . our determination is based upon , among other things , our estimates of the amount of future net cash flows to be generated by the long-lived asset ( level 3 inputs ) and our estimates of the current fair value of the asset . significant judgment is required in estimating such cash flows . adverse changes in such estimates of future net cash flows or estimates of fair value could result in an inability to recover the carrying value of the long-lived asset , thereby possibly requiring an impairment charge to be recognized in the future . we do not assess our property and equipment for impairment unless certain impairment indicators are present . we did not evaluate any long-lived assets for impairment during 2019 because no such impairment indicators were present . - 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liquidity and capital resources summary our primary source of liquidity on an on-going basis is our cash flow from operating activities , which is generally used to ( i ) fund capital expenditures , ( ii ) repay short-term or long-term indebtedness incurred primarily for capital expenditures , business combinations or buying back shares of our outstanding stock and ( iii ) provide for the payment of dividends ( if declared ) . from time-to-time , we may incur indebtedness to fund capital expenditures , business combinations or other investment activities . in addition , from time-to-time , we may also sell assets outside the ordinary course of business , the proceeds of which are generally used to repay indebtedness ( including indebtedness which may have been collateralized by the assets sold ) or to fund capital expenditures or business combinations . consolidated cash flows operating activities . trends in cash flows from operating activities , excluding changes in assets and liabilities , for the last three years have generally been similar to the trends in our earnings . depreciation and amortization were comparable in each of 2019 , 2018 and 2017. see note 1 to our consolidated financial statements . changes in assets and liabilities result primarily from the timing of production , sales and purchases . such changes in assets and liabilities generally tend to even out over time . however , year-to-year relative changes in assets and liabilities can significantly affect the comparability of cash flows from operating activities . cash provided by operating activities was $ 18.5 million in 2019 compared to $ 17.2 million in 2018. the $ 1.3 million increase in cash provided by operating activities is primarily the net result of : a $ 1.1 million increase in interest received in 2019 , a $ 0.7 million increase in cash paid for taxes in 2019 due to the relative timing of payments , and a lower amount of net cash used by relative changes in inventories , receivables , payables and non-tax accruals of $ 0.6 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 summary our primary source of liquidity on an on-going basis is our cash flow from operating activities , which is generally used to ( i ) fund capital expenditures , ( ii ) repay short-term or long-term indebtedness incurred primarily for capital expenditures , business combinations or buying back shares of our outstanding stock and ( iii ) provide for the payment of dividends ( if declared ) . from time-to-time , we may incur indebtedness to fund capital expenditures , business combinations or other investment activities . in addition , from time-to-time , we may also sell assets outside the ordinary course of business , the proceeds of which are generally used to repay indebtedness ( including indebtedness which may have been collateralized by the assets sold ) or to fund capital expenditures or business combinations . consolidated cash flows operating activities . trends in cash flows from operating activities , excluding changes in assets and liabilities , for the last three years have generally been similar to the trends in our earnings . depreciation and amortization were comparable in each of 2019 , 2018 and 2017. see note 1 to our consolidated financial statements . changes in assets and liabilities result primarily from the timing of production , sales and purchases . such changes in assets and liabilities generally tend to even out over time . however , year-to-year relative changes in assets and liabilities can significantly affect the comparability of cash flows from operating activities . cash provided by operating activities was $ 18.5 million in 2019 compared to $ 17.2 million in 2018. the $ 1.3 million increase in cash provided by operating activities is primarily the net result of : a $ 1.1 million increase in interest received in 2019 , a $ 0.7 million increase in cash paid for taxes in 2019 due to the relative timing of payments , and a lower amount of net cash used by relative changes in inventories , receivables , payables and non-tax accruals of $ 0.6 million . ``` Suspicious Activity Report : as a member of the group of companies consolidated for u.s. federal income tax purposes with contran , the parent of our consolidated u.s. federal income tax group , we compute our provision for income taxes on a separate company basis , using the tax elections made by contran . our effective income tax rate was 23 % in 2017 , 25 % in 2018 and 24 % in 2019. on december 22 , 2017 , h.r.1 , formally known as the “ tax cuts and jobs act ” ( “ 2017 tax act ” ) was enacted into law . this tax legislation , among other changes , ( i ) reduced the u.s federal corporate income tax rate from 35 % to 21 % effective january 1 , 2018 ; ( ii ) eliminated the domestic production activities deduction beginning in 2018 ; and ( iii ) allowed the expensing of certain capital expenditures . following the enactment of the 2017 tax act , the securities and exchange commission issued staff accounting bulletin ( sab ) 118 to provide guidance on the accounting and reporting impacts of the 2017 tax act . sab 118 required that companies account for changes related to the 2017 tax act in - 13 - the period of enactment unless the impact of such changes coul d not be reasonably estimated . such revaluation resulted in a non-cash deferred income tax benefit of $ 1.9 million recognized in continuing operations for the period ended december 31 , 2017 , reducing our net deferred income tax liability as of that date . during 2018 we finalized our analys is of the 2017 tax act and recorded an immaterial adjustment within the defined measurement period . see notes 7 and 10 to our consolidated financial statements . while our effective income tax rate for 2018 was favorably impacted by the reduction in the u.s. federal statutory income tax rate from 35 % to 21 % , our effective income tax rate was higher in 2018 as compared to 2017 due to the $ 1.9 million non-cash deferred income tax benefit recognized in 2017 resulting from the revaluation of our net deferred income tax liability discussed above . our effective income tax rate was lower in 2019 as compared to 2018 primarily due to recognizing a current cash tax benefit of $ 0.2 million in 2019 resulting from a deduction under the foreign derived intangible income provisions ( $ 0.1 million of such current cash tax benefit is related to 2018 ) . segment results the key performance indicator for our segments is the level of their operating income ( see discussion below ) . for additional information regarding our segments refer to note 2 to our consolidated financial statements . replace_table_token_3_th security products . security products net sales increased 1 % to $ 99.3 million in 2019 compared to $ 98.4 million in 2018 , primarily due to higher sales to government security and medical cart manufacturing markets , partially offset by lower sales to the transportation , electronic control panel and distribution markets . as a percentage of sales , gross margin and operating income for 2019 declined as compared to 2018 primarily due to increased labor rates and associated payroll costs resulting from regional pressure on wages for certain skilled labor positions , partially offset by favorable medical costs . security products net sales increased 2 % to $ 98.4 million in 2018 compared to $ 96.6 million in 2017 , primarily due to higher sales to the transportation and office furniture markets . as a percentage of sales , gross margin for 2018 increased slightly over 2017 due to lower production costs , including headcount reductions made during the second quarter of 2017 , and improved coverage of fixed costs over increased production volumes . operating costs and expenses for 2018 were slightly lower than 2017. as a result , security products operating income as a percentage of net sales for 2018 exceeded 2017 . - 14 - replace_table_token_4_th marine components . marine components net sales increased 26 % in 2019 as compared to 2018 primarily due to increased sales to the towboat market , primarily wake enhancement systems and surf pipes to an original equipment boat manufacturer . gross margin as a percentage of sales in 2019 was comparable to 2018. operating income as a percentage of net sales increased in 2019 compared to 2018 principally due to improved leverage on operating costs and expenses facilitated by higher production volumes . marine components net sales increased 29 % in 2018 as compared to 2017 as a result of continued strong demand for our products , particularly those sold to the ski/wakeboard boat market as well as to manufacturers of large center-console boats and industrial customers . gross margin and operating income as a percentage of net sales increased in 2018 compared to 2017 principally due to improved fixed cost leverage facilitated by higher production volumes . outlook . 2019 was a breakout year for our marine components segment which sustained the significant growth we experienced in the second half of 2018 for the full year of 2019. we expect growth of this segment to be more normalized in 2020. our security products segment experienced modest sales growth in 2019 ; however we began to notice headwinds late in 2019 which may carry into 2020. in 2020 , we plan to capitalize on the positive momentum our marine components segment has experienced over the last two years while maintaining strong results in our security products segment . story_separator_special_tag we will continue to monitor economic conditions and sales order rates and respond to fluctuations in customer demand through continuous evaluation of staffing levels and consistent execution of our lean manufacturing and cost improvement initiatives . additionally , we continue to seek opportunities to gain market share in markets we currently serve , to expand into new markets and to develop new product features in order to mitigate the impact of changes in demand as well as broaden our sales base . critical accounting policies and estimates our significant accounting policies are more fully described in note 1 to our consolidated financial statements . our consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the united states of america ( gaap ) which requires us to make estimates , judgments , and assumptions we believe are reasonable based on our historical experience , contract terms , observations of known trends in our company and the industry as a whole and information available from other outside sources . our estimates affect the reported amounts of assets and liabilities and related disclosures of contingent assets and liabilities at the date of the financial statements , and the reported amounts of revenue and expense during the reporting period . actual results may differ from initial estimates . we believe the most critical accounting policies and estimates involving significant judgments and estimates primarily relate to the considerations in the impairment assessments for goodwill and certain long-lived assets . we have discussed the development , selection and disclosure of our critical accounting estimates with the audit committee of our board of directors . goodwill – our goodwill totaled $ 23.7 million at december 31 , 2019 , all relating to our security products segment . goodwill is required to be tested annually or at other times whenever an event occurs or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below - 15 - its carrying value . we pe rform our annual goodwill impairment test in the third quarter of each year . in addition , adverse industry or economic trends , lower projections of profitability , or a sustained decline in our market capitalization , among other items , may be indications of potential impairment issues which are triggering events requiring the testing of an asset 's carrying value for recoverability . an entity may first assess qualitative factors to determine whether it is necessary to complete the two-step quantitative impair ment test using a more-likely-than-not criteria . if an entity believes it is more-likely-than-not the fair value of a reporting unit is greater than its carrying value , including goodwill , the two-step quantitative impairment test can be bypassed . alternat ively , an entity has an unconditional option to bypass the qualitative assessment and proceed directly to performing the two-step quantitative impairment test . when performing a qualitative assessment considerable management judgment is necessary to evaluate the qualitative impact of events and circumstances on the fair value of a reporting unit . events and circumstances considered in our impairment evaluations , such as historical profits and stability of the markets served , are consistent with factors utilized with our internal projections and operating plan . however , future events and circumstances could result in materially different findings which could result in the recognition of a material goodwill impairment . evaluations of possible impairment utilizing the two-step quantitative impairment test require us to estimate , among other factors : forecasts of future operating results , revenue growth , operating margin , tax rates , capital expenditures , depreciation , working capital , weighted average cost of capital , long-term growth rates , risk premiums , terminal values , and fair values of our reporting units and assets . the goodwill impairment test is subject to uncertainties arising from such events as changes in competitive conditions , the current general economic environment , material changes in growth rate assumptions that could positively or negatively impact anticipated future operating conditions and cash flows , changes in the discount rate , and the impact of strategic decisions . if any of these factors were to materially change such change may require revaluation of our goodwill . changes in estimates or the application of alternative assumptions could produce significantly different results . in 2019 , we used the qualitative assessment for our annual impairment test and determined it was not necessary to perform the quantitative goodwill impairment test , as we concluded it is more-likely- than-not the fair value of the security products reporting unit exceeded its carrying amount . see notes 1 and 5 to our consolidated financial statements . long-lived assets – the net book value of our property and equipment totaled $ 31.0 million at december 31 , 2019. we assess property and equipment for impairment only when circumstances indicate an impairment may exist . our determination is based upon , among other things , our estimates of the amount of future net cash flows to be generated by the long-lived asset ( level 3 inputs ) and our estimates of the current fair value of the asset . significant judgment is required in estimating such cash flows . adverse changes in such estimates of future net cash flows or estimates of fair value could result in an inability to recover the carrying value of the long-lived asset , thereby possibly requiring an impairment charge to be recognized in the future . we do not assess our property and equipment for impairment unless certain impairment indicators are present . we did not evaluate any long-lived assets for impairment during 2019 because no such impairment indicators were present . - 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3 ( ii ) b amended and restated bylaws reflecting changes made to the company 's certificate of incorporation to remove certain outdated and redundant provisions that existed in our prior bylaws with respect to corporate governance , shareholder and director meeting procedures , and indemnification procedures . changes to the bylaws include , among other things : ( i ) amendments to reflect the new story_separator_special_tag of financial condition and results of operations the following discussion and analysis should be read in conjunction with our financial statements and related notes and the other information appearing in this report . as used in this report , unless the context otherwise indicates , references to “ we , ” “ our , ” “ ours , ” and “ us ” refer to earthstone energy , inc. and its subsidiary collectively . as an oil and natural gas producer , our revenue , cash flow from operations , other income and profitability , reserve values , access to capital and future rate of growth are substantially dependent upon the prevailing prices of crude oil and natural gas . declines in commodity prices will materially and adversely affect our financial condition , liquidity , ability to obtain financing and operating results . lower commodity prices may reduce the amount of crude oil and natural gas that we can produce economically . prevailing prices for such commodities are subject to wide fluctuation in response to relatively minor changes in supply and demand and a variety of additional factors beyond our control , such as global , political and economic conditions . historically , prices received for crude oil and natural gas production have been volatile and unpredictable , and such volatility is expected to continue . most of our production is sold at market prices . generally , if the commodity indexes fall , the price that we receive for our production will also decline . therefore , the amount of revenue that we realize is to a large extent determined by factors beyond our control . liquidity and capital resources story_separator_special_tag improvements and leasehold acreage . these projects were funded entirely with internally generated cash flow . as of march 31 , 2012 , we have afes totaling $ 5,574,000 for our share in completion costs of new wells in which we share a working interest . at present cash flow levels , we expect to have sufficient funds available for our share of both the outstanding afes and any additional acreage , seismic and or drilling cost requirements that might arise from our existing opportunities . we may alter or vary all or part of any planned capital expenditures for reasons including , but not limited to changes in circumstances , unforeseen opportunities , the inability to negotiate favorable acquisition , farmout , joint venture or divestiture terms , commodity prices , lack of cash flow , and lack of additional funding . we are continually evaluating drilling and acquisition opportunities for possible participation . typically , at any one time , several opportunities are in various stages of evaluation . our policy is to not disclose the specifics of a project or prospect , nor to speculate on such ventures , until such time as those various opportunities are finalized and undertaken . we caution that the absence of news and or press releases should not be interpreted as a lack of development or activity . divestitures/abandonments on january 31 , 2012 , we completed the divestiture and sale of the company 's working and or override interests in 38 wells in weld county , colorado to an unrelated third party for $ 5,900,000. after customary adjustments and expenses , the net proceeds from the transaction were $ 5,404,000. the adjusted purchase price was impacted by commissions , sales costs and post effective date revenue and expense modifications to the purchase price . the wells were considered non-core properties for the company , given the company 's focus on other areas , primarily the williston basin . impact of inflation and pricing we deal primarily in u.s. dollars . inflation has not had a material impact on the company in recent years because of the relatively low rates of inflation in the united states . however , the oil and natural gas industry can be cyclical and the demand for production places pressure on the economic stability and pricing within the industry . typically , as prices for oil and natural gas increase , associated costs rise . conversely , cost declines are likely to lag and may not adjust downward in proportion to declining prices . changes in prices impact our revenues , estimates of reserves , assessments of any impairment of oil and natural gas properties , as well as values of properties being acquired or sold . price changes have the potential to affect our ability to raise capital , borrow money , and retain personnel . while we do not presently expect business costs to materially rise , higher prices for oil and natural gas could result in increases in the costs of materials , services and personnel . 22 other commitments other than the aforementioned outstanding afes , we do not have any other commitments beyond our office lease and software maintenance contracts . see note 6 to the consolidated financial statements . results of operations selected financial information the following provides selected financial information and averages for the years ended march 31 , 2012 and 2011. certain prior year amounts may have been reclassified to conform to the current presentation . story_separator_special_tag replace_table_token_6_th 1 due to the timing and accuracy of sales information received from a third party operator as described in “ volumes and prices ” below , sales volume amounts may not be indicative of actual production or future performance . 2 amount does not include water service and disposal revenue . for the year ended march 31 , 2012 , this revenue amount is net of $ 156,000 in well service and water disposal revenue , which would otherwise total $ 11,712,000 in revenue for the year ended march 31 , 2012 , compared to $ 107,000 to total $ 8,206,000 for the year ended march 31 , 2011 . 3 overall lifting cost ( oil and gas production expenses and production taxes ) 4 averages calculated based upon non-rounded figures 23 the year ended march 31 , 2012 compared with the year ended march 31 , 2011 overview . net income for the year ended march 31 , 2012 , was double that of the previous year at $ 3,279,000 compared to $ 1,602,000 for the year ended march 31 , 2011. the increase in the sales price per barrel of oil equivalent ( “ boe ” ) and rise in sales volumes , offset by increases in production costs and general and administrative ( “ g & a ” ) expense , resulted in the increase in net income . revenues . oil and natural gas sales revenue increased $ 3,457,000 ( 43 % ) for the year ended march 31 , 2012 , as compared to the year ended march 31 , 2011 , due to an overall 15 % higher realized price per boe , and 20 % overall increase in sales volumes . volumes and prices . on an equivalent barrel basis , sales were 146,000 boe for the year ended march 31 , 2012 compared to 122,000 boe for the year ended march 31 , 2011. oil sales volumes increased 16 % from 93,613 barrels for the year ended march 31 , 2011 to 108,653 barrels for the year ended march 31 , 2012 , while the average price per barrel increased 29 % from $ 74.06 for the year ended march 31 , 2011 to $ 95.73 for the year ended march 31 , 2012. the rise in oil volumes resulted from production from the 24 newly producing wells offset , expectedly , by declines in existing wells . natural gas sales volumes increased 32 % from 172,386 mcf for the year ended march 31 , 2011 to 226,760 mcf for the year ended march 31 , 2012 , while the average price per mcf dropped 25 % , from $ 6.76 for the year ended march 31 , 2011 to $ 5.09 for the year ended march 31 , 2012. production expenses . production expenses are comprised of the following items : replace_table_token_7_th oil and natural gas production expense increased $ 953,000 ( 27 % ) for the year ended march 31 , 2012 , as compared to the year ended march 31 , 2011. the two principal components of oil and gas production expense are routine lease operating expenses ( “ loe ” ) and workovers . routine expenses typically include such items as daily well maintenance , utilities , fuel , water disposal and minor surface equipment repairs . workovers primarily include downhole repairs and are generally random in nature . although workovers are expected , they can be much more frequent in some wells than others and their associated costs can be significant . therefore , workovers account for more dramatic fluctuations in oil and gas expense from period to period . 24 loe , production taxes , and transportation and other expenses increased $ 596,000 ( 32 % ) , $ 351,000 ( 60 % ) , and $ 73,000 ( 34 % ) , respectively , for the year ended march 31 , 2012 , as compared to the year ended march 31 , 2011. all fluctuate with sales revenue , which increased 43 % year over year . production taxes as a percent of oil and natural gas sales revenue were comparable year over year at 8.1 % versus 7.2 % . workover expense decreased $ 67,000 ( 8 % ) for the year ended march 31 , 2012 , as compared to the year ended march 31 , 2011. the overall lifting cost ( oil and natural gas production expense plus production taxes ) per boe increased 6 % from $ 28.83 for the year ended march 31 , 2011 to $ 30.59 for the year ended march 31 , 2012. this increase resulted from the increase loe described above . this lifting cost per equivalent barrel is not indicative of all wells , and certain high cost wells could be shut-in should oil prices drop below certain levels . other expenses . depletion and depreciation expense decreased $ 49,000 ( 4 % ) for the year ended march 31 , 2012 as compared to the year ended march 31 , 2011 due to the disposition of d-j basin properties in 2012 , somewhat offset by new wells . depletion expense per boe decreased from $ 9.24 for the year ended march 31 , 2011 to $ 7.27 for the year ended march 31 , 2012. general and administrative ( “ g & a ” ) expense rose $ 561,000 ( 37 % ) for the year ended march 31 , 2012 , as compared to the year ended march 31 , 2011. eighty percent of this increase relates to personnel costs , as additional management , staff and a board member were added in 2012. state franchise taxes resulted in 15 % of the rise in costs . the sum of various other administrative costs account for the remaining fluctuation in the expense . as a percent of total sales revenue , g & a expense remained steady at 18 % both years

liquidity outlook . our primary source of funding is the net cash flow from the sale of our oil and natural gas production . the profitability and cash flow generated by our operations in any particular accounting period will be directly related to : ( a ) the volume of oil and gas produced and sold , ( b ) the average realized prices for oil and gas sold , and ( c ) lifting costs . at the current price of oil , we believe the cash generated from operations , along with existing cash balances , should enable us to meet our existing and normal recurring obligations during the next year and beyond . overview of our capital structure . we recognize the importance of developing our capital resource base in order to pursue our objectives . however , subsequent to our last public offering in 1980 , debt financing has been the sole source of external funding . in addition to our routine production-related costs , general and administrative expenses and , when necessary , debt repayment requirements , we require capital to fund our exploratory and development drilling efforts and the acquisition of additional properties as well as the enhancement of held and newly acquired properties . we have received numerous inquiries regarding the possibility of funding our efforts through equity contributions or debt instruments . given strong cash flows , and the relatively modest nature of our current drilling projects , we have thus far declined these overtures . our primary concern in this area is the dilution of our existing shareholders .

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 outlook . our primary source of funding is the net cash flow from the sale of our oil and natural gas production . the profitability and cash flow generated by our operations in any particular accounting period will be directly related to : ( a ) the volume of oil and gas produced and sold , ( b ) the average realized prices for oil and gas sold , and ( c ) lifting costs . at the current price of oil , we believe the cash generated from operations , along with existing cash balances , should enable us to meet our existing and normal recurring obligations during the next year and beyond . overview of our capital structure . we recognize the importance of developing our capital resource base in order to pursue our objectives . however , subsequent to our last public offering in 1980 , debt financing has been the sole source of external funding . in addition to our routine production-related costs , general and administrative expenses and , when necessary , debt repayment requirements , we require capital to fund our exploratory and development drilling efforts and the acquisition of additional properties as well as the enhancement of held and newly acquired properties . we have received numerous inquiries regarding the possibility of funding our efforts through equity contributions or debt instruments . given strong cash flows , and the relatively modest nature of our current drilling projects , we have thus far declined these overtures . our primary concern in this area is the dilution of our existing shareholders . ``` Suspicious Activity Report : 3 ( ii ) b amended and restated bylaws reflecting changes made to the company 's certificate of incorporation to remove certain outdated and redundant provisions that existed in our prior bylaws with respect to corporate governance , shareholder and director meeting procedures , and indemnification procedures . changes to the bylaws include , among other things : ( i ) amendments to reflect the new story_separator_special_tag of financial condition and results of operations the following discussion and analysis should be read in conjunction with our financial statements and related notes and the other information appearing in this report . as used in this report , unless the context otherwise indicates , references to “ we , ” “ our , ” “ ours , ” and “ us ” refer to earthstone energy , inc. and its subsidiary collectively . as an oil and natural gas producer , our revenue , cash flow from operations , other income and profitability , reserve values , access to capital and future rate of growth are substantially dependent upon the prevailing prices of crude oil and natural gas . declines in commodity prices will materially and adversely affect our financial condition , liquidity , ability to obtain financing and operating results . lower commodity prices may reduce the amount of crude oil and natural gas that we can produce economically . prevailing prices for such commodities are subject to wide fluctuation in response to relatively minor changes in supply and demand and a variety of additional factors beyond our control , such as global , political and economic conditions . historically , prices received for crude oil and natural gas production have been volatile and unpredictable , and such volatility is expected to continue . most of our production is sold at market prices . generally , if the commodity indexes fall , the price that we receive for our production will also decline . therefore , the amount of revenue that we realize is to a large extent determined by factors beyond our control . liquidity and capital resources story_separator_special_tag improvements and leasehold acreage . these projects were funded entirely with internally generated cash flow . as of march 31 , 2012 , we have afes totaling $ 5,574,000 for our share in completion costs of new wells in which we share a working interest . at present cash flow levels , we expect to have sufficient funds available for our share of both the outstanding afes and any additional acreage , seismic and or drilling cost requirements that might arise from our existing opportunities . we may alter or vary all or part of any planned capital expenditures for reasons including , but not limited to changes in circumstances , unforeseen opportunities , the inability to negotiate favorable acquisition , farmout , joint venture or divestiture terms , commodity prices , lack of cash flow , and lack of additional funding . we are continually evaluating drilling and acquisition opportunities for possible participation . typically , at any one time , several opportunities are in various stages of evaluation . our policy is to not disclose the specifics of a project or prospect , nor to speculate on such ventures , until such time as those various opportunities are finalized and undertaken . we caution that the absence of news and or press releases should not be interpreted as a lack of development or activity . divestitures/abandonments on january 31 , 2012 , we completed the divestiture and sale of the company 's working and or override interests in 38 wells in weld county , colorado to an unrelated third party for $ 5,900,000. after customary adjustments and expenses , the net proceeds from the transaction were $ 5,404,000. the adjusted purchase price was impacted by commissions , sales costs and post effective date revenue and expense modifications to the purchase price . the wells were considered non-core properties for the company , given the company 's focus on other areas , primarily the williston basin . impact of inflation and pricing we deal primarily in u.s. dollars . inflation has not had a material impact on the company in recent years because of the relatively low rates of inflation in the united states . however , the oil and natural gas industry can be cyclical and the demand for production places pressure on the economic stability and pricing within the industry . typically , as prices for oil and natural gas increase , associated costs rise . conversely , cost declines are likely to lag and may not adjust downward in proportion to declining prices . changes in prices impact our revenues , estimates of reserves , assessments of any impairment of oil and natural gas properties , as well as values of properties being acquired or sold . price changes have the potential to affect our ability to raise capital , borrow money , and retain personnel . while we do not presently expect business costs to materially rise , higher prices for oil and natural gas could result in increases in the costs of materials , services and personnel . 22 other commitments other than the aforementioned outstanding afes , we do not have any other commitments beyond our office lease and software maintenance contracts . see note 6 to the consolidated financial statements . results of operations selected financial information the following provides selected financial information and averages for the years ended march 31 , 2012 and 2011. certain prior year amounts may have been reclassified to conform to the current presentation . story_separator_special_tag replace_table_token_6_th 1 due to the timing and accuracy of sales information received from a third party operator as described in “ volumes and prices ” below , sales volume amounts may not be indicative of actual production or future performance . 2 amount does not include water service and disposal revenue . for the year ended march 31 , 2012 , this revenue amount is net of $ 156,000 in well service and water disposal revenue , which would otherwise total $ 11,712,000 in revenue for the year ended march 31 , 2012 , compared to $ 107,000 to total $ 8,206,000 for the year ended march 31 , 2011 . 3 overall lifting cost ( oil and gas production expenses and production taxes ) 4 averages calculated based upon non-rounded figures 23 the year ended march 31 , 2012 compared with the year ended march 31 , 2011 overview . net income for the year ended march 31 , 2012 , was double that of the previous year at $ 3,279,000 compared to $ 1,602,000 for the year ended march 31 , 2011. the increase in the sales price per barrel of oil equivalent ( “ boe ” ) and rise in sales volumes , offset by increases in production costs and general and administrative ( “ g & a ” ) expense , resulted in the increase in net income . revenues . oil and natural gas sales revenue increased $ 3,457,000 ( 43 % ) for the year ended march 31 , 2012 , as compared to the year ended march 31 , 2011 , due to an overall 15 % higher realized price per boe , and 20 % overall increase in sales volumes . volumes and prices . on an equivalent barrel basis , sales were 146,000 boe for the year ended march 31 , 2012 compared to 122,000 boe for the year ended march 31 , 2011. oil sales volumes increased 16 % from 93,613 barrels for the year ended march 31 , 2011 to 108,653 barrels for the year ended march 31 , 2012 , while the average price per barrel increased 29 % from $ 74.06 for the year ended march 31 , 2011 to $ 95.73 for the year ended march 31 , 2012. the rise in oil volumes resulted from production from the 24 newly producing wells offset , expectedly , by declines in existing wells . natural gas sales volumes increased 32 % from 172,386 mcf for the year ended march 31 , 2011 to 226,760 mcf for the year ended march 31 , 2012 , while the average price per mcf dropped 25 % , from $ 6.76 for the year ended march 31 , 2011 to $ 5.09 for the year ended march 31 , 2012. production expenses . production expenses are comprised of the following items : replace_table_token_7_th oil and natural gas production expense increased $ 953,000 ( 27 % ) for the year ended march 31 , 2012 , as compared to the year ended march 31 , 2011. the two principal components of oil and gas production expense are routine lease operating expenses ( “ loe ” ) and workovers . routine expenses typically include such items as daily well maintenance , utilities , fuel , water disposal and minor surface equipment repairs . workovers primarily include downhole repairs and are generally random in nature . although workovers are expected , they can be much more frequent in some wells than others and their associated costs can be significant . therefore , workovers account for more dramatic fluctuations in oil and gas expense from period to period . 24 loe , production taxes , and transportation and other expenses increased $ 596,000 ( 32 % ) , $ 351,000 ( 60 % ) , and $ 73,000 ( 34 % ) , respectively , for the year ended march 31 , 2012 , as compared to the year ended march 31 , 2011. all fluctuate with sales revenue , which increased 43 % year over year . production taxes as a percent of oil and natural gas sales revenue were comparable year over year at 8.1 % versus 7.2 % . workover expense decreased $ 67,000 ( 8 % ) for the year ended march 31 , 2012 , as compared to the year ended march 31 , 2011. the overall lifting cost ( oil and natural gas production expense plus production taxes ) per boe increased 6 % from $ 28.83 for the year ended march 31 , 2011 to $ 30.59 for the year ended march 31 , 2012. this increase resulted from the increase loe described above . this lifting cost per equivalent barrel is not indicative of all wells , and certain high cost wells could be shut-in should oil prices drop below certain levels . other expenses . depletion and depreciation expense decreased $ 49,000 ( 4 % ) for the year ended march 31 , 2012 as compared to the year ended march 31 , 2011 due to the disposition of d-j basin properties in 2012 , somewhat offset by new wells . depletion expense per boe decreased from $ 9.24 for the year ended march 31 , 2011 to $ 7.27 for the year ended march 31 , 2012. general and administrative ( “ g & a ” ) expense rose $ 561,000 ( 37 % ) for the year ended march 31 , 2012 , as compared to the year ended march 31 , 2011. eighty percent of this increase relates to personnel costs , as additional management , staff and a board member were added in 2012. state franchise taxes resulted in 15 % of the rise in costs . the sum of various other administrative costs account for the remaining fluctuation in the expense . as a percent of total sales revenue , g & a expense remained steady at 18 % both years

bag grades , papers for directories , paperback books and other commercial applications represent less than 15 % of our shipments . we sell our specialty papers almost exclusively in north america , where demand is largely tied to consumer spending and advertising . we operate seven pulp mills , five in the u.s. and two in canada , with total capacity of 1.7 million metric tons , or approximately 11 % of total north american capacity , making us the third largest pulp producer in north america . approximately 80 % of our virgin pulp capacity is softwood-based , including : northern bleached softwood kraft pulp ( or “ nbsk ” ) , southern bleached softwood kraft pulp ( or “ sbsk ” ) and fluff pulp . we are also a competitive producer of northern bleached hardwood kraft pulp ( or “ nbhk ” ) and southern bleached hardwood kraft pulp ( or “ sbhk ” ) , and a leading producer of recycled bleached kraft pulp ( or “ rbk ” ) . our market pulp - the pulp we produce but do not consume internally - is used to make a range of consumer products , like tissue , packaging , specialty paper products , diapers and other absorbent products . approximately 26 % of our 2014 market pulp shipments were exported outside of north america , including significant exports to europe , asia and latin america . in 2014 , we shipped 1.5 billion board feet of construction-grade lumber and 100 million board feet of remanufactured wood products within north america , mostly on the east coast . our sawmills produce dimension spruce-pine-fir ( or “ spf ” ) lumber and provide wood chips to our pulp and paper mills in canada as well as wood residue that we use as fuel in our power cogeneration assets and other operations . we also operate two remanufactured wood products facilities in canada that produce bed frame components , finger joints and furring strips , and two engineered wood products facilities in canada that produce i-joists for the construction industry . in 2014 , we also launched a wood pellet plant in thunder bay , ontario , which has a ten-year agreement to supply the local power utility with 45,000 metric tons of pellets annually . replace_table_token_6_th strategy & recent highlights our corporate strategy includes , on the one hand , a gradual retreat from certain paper grades , and on the other , using our strong financial position to act on opportunities to diversify and grow . that strategy is based on three core themes : operational excellence , disciplined use of capital and strategic initiatives . operational excellence we aim to improve our performance and margins by : leveraging our lower-cost position ; maintaining a stringent focus on reducing costs and optimizing our diversified asset base ; maximizing the benefits of our access to virgin fiber and managing our exposure to volatile recycled fiber ; and pursuing our strategy of managing production and inventory levels and focusing production at our most profitable and lower-cost facilities and machines . we compete today as a leading , lower-cost north american producer , thanks to aggressive cost reductions and mill optimization . we believe we have one of the lowest selling , general and administrative expenses ( or “ sg & a ” ) to sales ratio in the forest product industry . 22 we have reduced a number of positions at mill sites since 2012 , without affecting operating capacity , which has significantly lowered our labor costs . we worked with our unionized employees and their union leaders toward the mutually beneficial renewal of our u.s. and canadian pulp and paper collective agreements earlier this year . by working together with the shared goals of resolute 's long-term success , we helped to reinforce our position as a financially strong and reliable supplier for our customers . maintaining our lower-cost position is a core focus of our daily environment : we challenge ourselves to optimize assets , to lower our costs and to improve our efficiency . today we operate only our best facilities and most competitive machines . disciplined use of capital we make capital management a priority . building on our focus to reduce manufacturing costs , we will continue our efforts to decrease overhead and spend our capital in a disciplined , strategic and focused manner , concentrated on our most successful sites . maintaining our strong financial position and financial flexibility is one of our primary financial goals . in 2013 , we refinanced the remaining balance of our senior secured notes with 5.875 % senior unsecured notes due 2023 ( the “ 2023 notes ” ) . in addition to adding five years to maturity , the refinancing reduced our annual cash interest burden by $ 16 million and improves our financial flexibility . in 2014 , we modified our u.s. other postretirement benefit ( or “ opeb ” ) plans to encourage greater participation in a medicare exchange program . in addition to securing high-quality healthcare for participants , this modification , along with similar initiatives undertaken since mid-2013 , helped to reduce our u.s. opeb liability on the balance sheet from $ 250 million to $ 77 million as of december 31 , 2014. furthermore , in 2015 , we expect that our opeb expense will be $ 26 million lower than in 2012 , as a result of these amendments . strategic initiatives we believe in taking an opportunistic approach to strategic initiatives , pursuing only those that reduce our cost position , improve our product diversification , provide synergies or allow us to expand into future growth markets . we anticipate continued consolidation in the paper and forest products industry , as we and our competitors continue to explore ways to increase efficiencies and grow into more favorable markets . story_separator_special_tag we recorded a $ 524 million income tax provision in 2013 , on a loss before income taxes of $ 115 million , compared to an expected income tax benefit of $ 40 million based on the u.s. federal statutory income tax rate of 35 % . the difference largely reflects a net valuation allowance increase of $ 572 million , most of which relates to a charge recorded to establish a full valuation allowance against our net u.s. deferred income tax assets . some of our canadian subsidiaries , including our principal canadian operating subsidiary , use the u.s. dollar as functional currency but determine taxable income in canadian dollars . this can cause frequent and substantial variations to our effective tax rate when compared to the weighted-average of both domestic and foreign statutory tax rates . this is because we compute the foreign exchange component of the income tax provision of our canadian subsidiaries on a different basis than in our consolidated financial statements . due to the unpredictability of foreign exchange rates , we are unable to estimate the impact of future changes in exchange rates on our effective tax rate . q4 of 2014 vs. q4 of 2013 operating ( loss ) income variance analysis sales our sales were $ 95 million lower , or 8 % , this quarter , at $ 1,055 million . including the effect of currency , overall pricing fell by $ 23 million because of a 5 % drop in the average transaction price for newsprint and 3 % for specialty papers , offset only in part by a 3 % improvement in the average transaction price of market pulp . the overall volume was also lower , reflecting a 16 % reduction in market pulp shipments , 6 % in specialty papers and 3 % in newsprint ; wood products shipments were 10 million board feet , or 3 % , higher . the lower pulp shipments reflect greater internal consumption , the production slowback in rbk and a shipment delay at year-end . 33 cost of sales , excluding depreciation , amortization and distribution costs cos improved by $ 83 million in the quarter because of the lower volume and the weaker canadian dollar , as a significant portion of our production capacity is based in canada . excluding these impacts , manufacturing costs were $ 12 million lower , reflecting : asset optimization initiatives ( $ 14 million ) ; lower pension and opeb expenses ( $ 8 million ) ; and the recognition of additional tax credits in connection with infrastructure investments ( $ 7 million ) ; offset in part by : higher wood costs and lower contribution from cogeneration facilities ( $ 7 million ) ; a favorable power adjustment in the year-ago period ( $ 4 million ) ; and asset preservation costs at our closed fort frances facility and additional stores inventory write-downs in connection with mill closures , as well as higher start-up costs ( $ 4 million ) . distribution costs after removing the effect of lower volume , distribution costs were $ 3 million higher because of warehousing and freight costs in the specialty papers segment and an increase in the average length of haul in the specialty papers and market pulp segment , partly offset by lower fuel surcharges . selling , general & administrative expenses sg & a was $ 3 million lower in the quarter , primarily because of a group insurance refund . closure costs , impairment and other related charges closure costs , impairment and other related charges were $ 131 million in the fourth quarter of 2014 , reflecting : $ 57 million of accelerated depreciation , $ 9 million for severance and other termination benefits and $ 8 million for other closure costs , including environmental remediation obligations , in connection with the permanent closure of our iroquois falls , ontario , mill in the fourth quarter ; $ 32 million of accelerated depreciation and $ 4 million for other closure costs in connection with the permanent closure of our laurentide , québec , mill ; and $ 4 million of idling and cleaning costs as well as severance charges at our fort frances mill ; by comparison , we recorded $ 33 million in the same period in 2013 , reflecting costs and charges related to the extended market-related outage at the remaining paper machine in fort frances and the impairment of our recycling assets . net loss variance analysis net loss was $ 109 million in the fourth quarter of 2014 , or $ 1.15 per share , compared to a net loss of $ 3 million , or $ 0.03 per share , in the year-ago period . other expense , net we recorded other expense , net , of $ 25 million in the quarter , compared to other expense , net , of $ 20 million in the year-ago period . this quarter included an $ 18 million non-cash loss on translation of canadian dollar net monetary assets and an $ 11 million write-down of our investment in ponderay newsprint company . the $ 20 million other expense , net , in the year-ago period included a $ 15 million non-cash loss on the translation of canadian dollar net monetary assets . income taxes we recorded an income tax benefit of $ 22 million in the fourth quarter of 2014 , on a loss before income taxes of $ 130 million , compared to an expected income tax benefit of $ 45 million based on the u.s. federal statutory income tax rate of 35 % . the difference reflects the unfavorable effects of foreign exchange related items and a net increase in valuation allowances , primarily related to our u.s. operations , where we no longer recognize deferred income tax assets , partly offset by a tax benefit 34 recognized on the reversal of our valuation allowance

cash used in investing activities we used $ 151 million in investing activities in 2013 , $ 76 million higher than in 2012. other than the $ 8 million decrease in cash invested in fixed assets , the difference is almost entirely due to net favorable items in 2012 , including : a decrease in restricted cash due to the release of a tax indemnity given in connection with the sale of our interest in manicouagan power company in 2009 ( $ 76 million ) ; and the proceeds from disposition of timberlands in nova scotia ( $ 24 million ) ; partially offset by : the cash portion of the consideration paid for the acquisition of fibrek ( $ 24 million , net of cash acquired ) . 59 cash provided by ( used in ) financing activities financing activities provided $ 4 million in 2013 , compared to a use of $ 297 in 2012 , for a $ 301 million difference . in 2013 , we received proceeds of $ 594 million in connection with the issuance of the 2023 notes , which we used to repurchase $ 501 million of the outstanding 2018 notes and to pay $ 84 million as a tender offer premium . we also paid financing and credit facility fees of $ 9 million . we also received an $ 8 million payment from our former joint venture partner in cnc in connection with our acquisition of their interest . in 2012 , we paid $ 27 million in cash as part of the consideration to acquire shares of the noncontrolling interest in fibrek , we repaid its debt ( $ 112 million ) , we repurchased 5.6 million of our own shares under our share repurchase program ( $ 67 million ) and we redeemed $ 85 million of our 2018 notes .

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 investing activities we used $ 151 million in investing activities in 2013 , $ 76 million higher than in 2012. other than the $ 8 million decrease in cash invested in fixed assets , the difference is almost entirely due to net favorable items in 2012 , including : a decrease in restricted cash due to the release of a tax indemnity given in connection with the sale of our interest in manicouagan power company in 2009 ( $ 76 million ) ; and the proceeds from disposition of timberlands in nova scotia ( $ 24 million ) ; partially offset by : the cash portion of the consideration paid for the acquisition of fibrek ( $ 24 million , net of cash acquired ) . 59 cash provided by ( used in ) financing activities financing activities provided $ 4 million in 2013 , compared to a use of $ 297 in 2012 , for a $ 301 million difference . in 2013 , we received proceeds of $ 594 million in connection with the issuance of the 2023 notes , which we used to repurchase $ 501 million of the outstanding 2018 notes and to pay $ 84 million as a tender offer premium . we also paid financing and credit facility fees of $ 9 million . we also received an $ 8 million payment from our former joint venture partner in cnc in connection with our acquisition of their interest . in 2012 , we paid $ 27 million in cash as part of the consideration to acquire shares of the noncontrolling interest in fibrek , we repaid its debt ( $ 112 million ) , we repurchased 5.6 million of our own shares under our share repurchase program ( $ 67 million ) and we redeemed $ 85 million of our 2018 notes . ``` Suspicious Activity Report : bag grades , papers for directories , paperback books and other commercial applications represent less than 15 % of our shipments . we sell our specialty papers almost exclusively in north america , where demand is largely tied to consumer spending and advertising . we operate seven pulp mills , five in the u.s. and two in canada , with total capacity of 1.7 million metric tons , or approximately 11 % of total north american capacity , making us the third largest pulp producer in north america . approximately 80 % of our virgin pulp capacity is softwood-based , including : northern bleached softwood kraft pulp ( or “ nbsk ” ) , southern bleached softwood kraft pulp ( or “ sbsk ” ) and fluff pulp . we are also a competitive producer of northern bleached hardwood kraft pulp ( or “ nbhk ” ) and southern bleached hardwood kraft pulp ( or “ sbhk ” ) , and a leading producer of recycled bleached kraft pulp ( or “ rbk ” ) . our market pulp - the pulp we produce but do not consume internally - is used to make a range of consumer products , like tissue , packaging , specialty paper products , diapers and other absorbent products . approximately 26 % of our 2014 market pulp shipments were exported outside of north america , including significant exports to europe , asia and latin america . in 2014 , we shipped 1.5 billion board feet of construction-grade lumber and 100 million board feet of remanufactured wood products within north america , mostly on the east coast . our sawmills produce dimension spruce-pine-fir ( or “ spf ” ) lumber and provide wood chips to our pulp and paper mills in canada as well as wood residue that we use as fuel in our power cogeneration assets and other operations . we also operate two remanufactured wood products facilities in canada that produce bed frame components , finger joints and furring strips , and two engineered wood products facilities in canada that produce i-joists for the construction industry . in 2014 , we also launched a wood pellet plant in thunder bay , ontario , which has a ten-year agreement to supply the local power utility with 45,000 metric tons of pellets annually . replace_table_token_6_th strategy & recent highlights our corporate strategy includes , on the one hand , a gradual retreat from certain paper grades , and on the other , using our strong financial position to act on opportunities to diversify and grow . that strategy is based on three core themes : operational excellence , disciplined use of capital and strategic initiatives . operational excellence we aim to improve our performance and margins by : leveraging our lower-cost position ; maintaining a stringent focus on reducing costs and optimizing our diversified asset base ; maximizing the benefits of our access to virgin fiber and managing our exposure to volatile recycled fiber ; and pursuing our strategy of managing production and inventory levels and focusing production at our most profitable and lower-cost facilities and machines . we compete today as a leading , lower-cost north american producer , thanks to aggressive cost reductions and mill optimization . we believe we have one of the lowest selling , general and administrative expenses ( or “ sg & a ” ) to sales ratio in the forest product industry . 22 we have reduced a number of positions at mill sites since 2012 , without affecting operating capacity , which has significantly lowered our labor costs . we worked with our unionized employees and their union leaders toward the mutually beneficial renewal of our u.s. and canadian pulp and paper collective agreements earlier this year . by working together with the shared goals of resolute 's long-term success , we helped to reinforce our position as a financially strong and reliable supplier for our customers . maintaining our lower-cost position is a core focus of our daily environment : we challenge ourselves to optimize assets , to lower our costs and to improve our efficiency . today we operate only our best facilities and most competitive machines . disciplined use of capital we make capital management a priority . building on our focus to reduce manufacturing costs , we will continue our efforts to decrease overhead and spend our capital in a disciplined , strategic and focused manner , concentrated on our most successful sites . maintaining our strong financial position and financial flexibility is one of our primary financial goals . in 2013 , we refinanced the remaining balance of our senior secured notes with 5.875 % senior unsecured notes due 2023 ( the “ 2023 notes ” ) . in addition to adding five years to maturity , the refinancing reduced our annual cash interest burden by $ 16 million and improves our financial flexibility . in 2014 , we modified our u.s. other postretirement benefit ( or “ opeb ” ) plans to encourage greater participation in a medicare exchange program . in addition to securing high-quality healthcare for participants , this modification , along with similar initiatives undertaken since mid-2013 , helped to reduce our u.s. opeb liability on the balance sheet from $ 250 million to $ 77 million as of december 31 , 2014. furthermore , in 2015 , we expect that our opeb expense will be $ 26 million lower than in 2012 , as a result of these amendments . strategic initiatives we believe in taking an opportunistic approach to strategic initiatives , pursuing only those that reduce our cost position , improve our product diversification , provide synergies or allow us to expand into future growth markets . we anticipate continued consolidation in the paper and forest products industry , as we and our competitors continue to explore ways to increase efficiencies and grow into more favorable markets . story_separator_special_tag we recorded a $ 524 million income tax provision in 2013 , on a loss before income taxes of $ 115 million , compared to an expected income tax benefit of $ 40 million based on the u.s. federal statutory income tax rate of 35 % . the difference largely reflects a net valuation allowance increase of $ 572 million , most of which relates to a charge recorded to establish a full valuation allowance against our net u.s. deferred income tax assets . some of our canadian subsidiaries , including our principal canadian operating subsidiary , use the u.s. dollar as functional currency but determine taxable income in canadian dollars . this can cause frequent and substantial variations to our effective tax rate when compared to the weighted-average of both domestic and foreign statutory tax rates . this is because we compute the foreign exchange component of the income tax provision of our canadian subsidiaries on a different basis than in our consolidated financial statements . due to the unpredictability of foreign exchange rates , we are unable to estimate the impact of future changes in exchange rates on our effective tax rate . q4 of 2014 vs. q4 of 2013 operating ( loss ) income variance analysis sales our sales were $ 95 million lower , or 8 % , this quarter , at $ 1,055 million . including the effect of currency , overall pricing fell by $ 23 million because of a 5 % drop in the average transaction price for newsprint and 3 % for specialty papers , offset only in part by a 3 % improvement in the average transaction price of market pulp . the overall volume was also lower , reflecting a 16 % reduction in market pulp shipments , 6 % in specialty papers and 3 % in newsprint ; wood products shipments were 10 million board feet , or 3 % , higher . the lower pulp shipments reflect greater internal consumption , the production slowback in rbk and a shipment delay at year-end . 33 cost of sales , excluding depreciation , amortization and distribution costs cos improved by $ 83 million in the quarter because of the lower volume and the weaker canadian dollar , as a significant portion of our production capacity is based in canada . excluding these impacts , manufacturing costs were $ 12 million lower , reflecting : asset optimization initiatives ( $ 14 million ) ; lower pension and opeb expenses ( $ 8 million ) ; and the recognition of additional tax credits in connection with infrastructure investments ( $ 7 million ) ; offset in part by : higher wood costs and lower contribution from cogeneration facilities ( $ 7 million ) ; a favorable power adjustment in the year-ago period ( $ 4 million ) ; and asset preservation costs at our closed fort frances facility and additional stores inventory write-downs in connection with mill closures , as well as higher start-up costs ( $ 4 million ) . distribution costs after removing the effect of lower volume , distribution costs were $ 3 million higher because of warehousing and freight costs in the specialty papers segment and an increase in the average length of haul in the specialty papers and market pulp segment , partly offset by lower fuel surcharges . selling , general & administrative expenses sg & a was $ 3 million lower in the quarter , primarily because of a group insurance refund . closure costs , impairment and other related charges closure costs , impairment and other related charges were $ 131 million in the fourth quarter of 2014 , reflecting : $ 57 million of accelerated depreciation , $ 9 million for severance and other termination benefits and $ 8 million for other closure costs , including environmental remediation obligations , in connection with the permanent closure of our iroquois falls , ontario , mill in the fourth quarter ; $ 32 million of accelerated depreciation and $ 4 million for other closure costs in connection with the permanent closure of our laurentide , québec , mill ; and $ 4 million of idling and cleaning costs as well as severance charges at our fort frances mill ; by comparison , we recorded $ 33 million in the same period in 2013 , reflecting costs and charges related to the extended market-related outage at the remaining paper machine in fort frances and the impairment of our recycling assets . net loss variance analysis net loss was $ 109 million in the fourth quarter of 2014 , or $ 1.15 per share , compared to a net loss of $ 3 million , or $ 0.03 per share , in the year-ago period . other expense , net we recorded other expense , net , of $ 25 million in the quarter , compared to other expense , net , of $ 20 million in the year-ago period . this quarter included an $ 18 million non-cash loss on translation of canadian dollar net monetary assets and an $ 11 million write-down of our investment in ponderay newsprint company . the $ 20 million other expense , net , in the year-ago period included a $ 15 million non-cash loss on the translation of canadian dollar net monetary assets . income taxes we recorded an income tax benefit of $ 22 million in the fourth quarter of 2014 , on a loss before income taxes of $ 130 million , compared to an expected income tax benefit of $ 45 million based on the u.s. federal statutory income tax rate of 35 % . the difference reflects the unfavorable effects of foreign exchange related items and a net increase in valuation allowances , primarily related to our u.s. operations , where we no longer recognize deferred income tax assets , partly offset by a tax benefit 34 recognized on the reversal of our valuation allowance

these amounts were partially offset by a decrease in gains on the sale of unconsolidated communities in various joint ventures and related promote income , coupled with increases in depreciation and interest expense . established communities noi for the year ended december 31 , 2018 increased by $ 26,248,000 , or 2.3 % , over the prior year . the increase was driven by an increase in rental revenue of 2.5 % , partially offset by an increase in operating expenses of 3.2 % over 2017 . during 2018 , we raised approximately $ 1,572,833,000 of gross capital through the issuance of unsecured notes , sale of common shares under cep iv and the sale of consolidated operating communities and other real estate . this amount does not include proceeds from joint venture dispositions . the funds raised from the sale of real estate consist of the proceeds from the sale of eight operating communities , as well as the five communities contributed to the nyc joint venture and one ancillary land parcel . we believe that our current capital structure will continue to provide financial flexibility to access capital on attractive terms . 36 we believe our development activity will continue to create long-term value . during 2018 , we completed the construction of seven communities containing an aggregate of 1,915 apartment homes and 10,000 square feet of retail space , for an aggregate total capitalized cost of $ 742,000,000 , or $ 693,000,000 when including only our 55.0 % interest in one community developed through an unconsolidated joint venture . we also started the construction of eight communities containing an aggregate of 2,154 apartment homes , which are expected to be completed for an estimated total capitalized cost of $ 718,000,000 . in addition , during 2018 we completed the redevelopment of eight communities containing an aggregate of 3,368 apartment homes for a total investment of $ 217,000,000 , excluding costs incurred prior to the redevelopment . we also achieved portfolio growth through acquisitions , acquiring four communities containing an aggregate of 1,096 apartment homes for an aggregate purchase price of $ 334,450,000 . we believe that our balance sheet strength , as measured by our current level of indebtedness , our current ability to service interest and other fixed charges , and our current moderate use of financial encumbrances ( such as secured financing ) provide us with adequate access to liquidity from the capital markets . we expect to be able to meet our reasonably foreseeable liquidity needs , as they arise , through a combination of one or more of the following sources : existing cash on hand ; operating cash flows ; borrowings under our credit facility ; secured debt ; the issuance of corporate securities ( which could include unsecured debt , preferred equity and or common equity ) ; the sale of apartment communities ; or through the formation of joint ventures . see the discussion under `` liquidity and capital resources . `` communities overview as of december 31 , 2018 we owned or held a direct or indirect ownership interest in 291 apartment communities containing 85,158 apartment homes in 12 states and the district of columbia , of which 21 communities were under development and nine communities were under redevelopment . of these communities , 15 were owned by entities that were not consolidated for financial reporting purposes , including five owned by the u.s. fund , five owned by the nyc joint venture and two owned by the ac jv . in addition , we held a direct or indirect ownership interest in development rights to develop an additional 28 wholly-owned communities that , if developed as expected , will contain an estimated 9,769 apartment homes . our real estate investments consist primarily of current communities , development communities and development rights . our current communities are further distinguished as established communities , other stabilized communities , lease-up communities , redevelopment communities and unconsolidated communities . established communities are generally consolidated communities in markets where we have a significant presence that were owned and had stabilized occupancy as of the beginning of the prior year , allowing for a meaningful comparison of operating results between years . other stabilized communities are generally all other completed consolidated communities that have stabilized occupancy during the fiscal year . lease-up communities are consolidated communities where construction has been complete for less than one year and stabilized occupancy has not been achieved . redevelopment communities are consolidated communities where substantial redevelopment is in progress or is planned to begin during the fiscal year . unconsolidated communities are communities that we have an indirect ownership interest in through our investment interest in an unconsolidated joint venture . a more detailed description of our reportable segments and other related operating information can be found in note 8 , “ segment reporting , ” of our consolidated financial statements . although each of these categories is important to our business , we generally evaluate overall operating , industry and market trends based on the operating results of established communities , for which a detailed discussion can be found in “ results of operations ” as part of our discussion of overall operating results . we evaluate our current and future cash needs and future operating potential based on acquisition , disposition , development , redevelopment and financing activities within other stabilized , redevelopment and development communities . discussions related to current and future cash needs and financing activities can be found under `` liquidity and capital resources . `` noi of our current operating communities is one of the financial measures that we use to evaluate the performance of our communities . noi is affected by the demand and supply dynamics within our markets , our rental rates and occupancy levels and our ability to control operating costs . story_separator_special_tag the increase in 2018 was primarily due to an increase in compensation related expenses and a decrease in legal recoveries . the increase in 2017 was primarily due to an increase in compensation related expenses , professional fees , and sales and use tax expense . 42 casualty and impairment loss ( gain ) , net of $ 215,000 for 2018 primarily consists of an impairment charge of $ 826,000 recognized for a land parcel we had acquired for development and no longer intend to develop , partially offset by $ 554,000 of legal settlement proceeds relating to construction defects at a community acquired as part of the archstone acquisition . the loss of $ 6,250,000 for 2017 consists of a $ 9,350,000 impairment charge recognized for a land parcel we had acquired for development in 2004 and sold in july 2017 , and the net impact of the maplewood casualty loss , net of associated insurance receivables , of $ 2,338,000 , partially offset by $ 5,438,000 of legal settlement proceeds relating to construction defects at a community acquired as part of the archstone acquisition . equity in income of unconsolidated real estate entities decreased $ 55,474,000 , or 78.4 % , and increased $ 5,782,000 , or 8.9 % , in 2018 and 2017 , respectively , as compared to the prior years . the decrease in 2018 was primarily due to gains on the sale of communities in various ventures and the recognition of income for the company 's promoted interest from fund ii in the prior year period , coupled with the resulting decreased noi from the ventures in the current year period , due to disposition activity in 2017 and 2018. the increase in 2017 was primarily due to the recognition of income for the company 's promoted interest , partially offset by decreased gains on the sale of communities in various ventures in the current year , and decreased noi from the ventures due to disposition activity in 2016 and 2017. gain on sale of communities increased in 2018 and decreased in 2017 as compared to the prior years . the amount of gain realized in a given period depends on many factors , including the number of communities sold , the size and carrying value of the communities sold and the market conditions in the local area . the gain of $ 374,976,000 in 2018 was primarily due to the sale of eight wholly-owned operating communities and the recognition of the gain associated with the contribution of five wholly-owned operating communities to the nyc joint venture , a venture in which we retained a 20.0 % interest . the gain of $ 252,599,000 in 2017 was primarily due to the sale of six wholly-owned operating communities . gain ( loss ) on other real estate transactions of $ 345,000 in 2018 was primarily composed of gains on ancillary real estate . the loss of $ 10,907,000 in 2017 was primarily composed of the non-cash write-off of prepaid rent associated with the purchase of land previously subject to a ground lease . story_separator_special_tag . financial covenants we are subject to financial and other covenants contained in the credit facility , the term loan and the indenture under which our unsecured notes were issued . the principal financial covenants include the following : limitations on the amount of total and secured debt in relation to our overall capital structure ; limitations on the amount of our unsecured debt relative to the undepreciated basis of real estate assets that are not encumbered by property-specific financing ; and minimum levels of debt service coverage . we were in compliance with these covenants at december 31 , 2018 . in addition , our secured borrowings may include yield maintenance , defeasance , or prepayment penalty provisions , which would result in us incurring an additional charge in the event of a full or partial prepayment of outstanding principal before the scheduled maturity . these provisions in our secured borrowings are generally consistent with other similar types of debt instruments issued during the same time period in which our borrowings were secured . 44 continuous equity offering program in december 2015 , we commenced a fourth continuous equity program ( “ cep iv ” ) under which we may sell up to $ 1,000,000,000 of our common stock from time to time . actual sales will depend on a variety of factors to be determined , including market conditions , the trading price of our common stock and determinations of the appropriate sources of funding . in conjunction with cep iv , we engaged sales agents who will receive compensation of up to 2.0 % of the gross sales price for shares sold . cep iv also allows us to enter into forward sale agreements up to $ 1,000,000,000 in aggregate sales price of our common stock . we expect that we will physically settle each forward sale agreement on one or more dates prior to the maturity date of that particular forward sale agreement , in which case we will expect to receive aggregate net cash proceeds at settlement equal to the number of shares underlying the particular forward agreement multiplied by the relevant forward sale price . however , we may also elect to cash settle or net share settle a forward sale agreement . in connection with each forward sale agreement , we will pay the relevant forward seller , in the form of a reduced initial forward sale price , commission of up to 2.0 % of the sales prices of all borrowed shares of common stock sold . in 2018 , we sold 244,924 shares at an average sales price of $ 189.14 per share , for net proceeds of $ 45,629,000 . as of january 31 , 2019 , we had $ 846,591,000 of shares remaining authorized for issuance under this program and no forward sales agreements outstanding . forward interest rate swap

liquidity and capital resources we employ a disciplined approach to our liquidity and capital management . when we source capital , we take into account both our view of the most cost effective alternative then available and our desire to maintain a balance sheet that provides us with flexibility . our principal short-term liquidity needs are to fund : development and redevelopment activity in which we are currently engaged ; the minimum dividend payments on our common stock required to maintain our reit qualification under the code ; debt service and principal payments either at maturity or opportunistically before maturity ; and normal recurring operating expenses and corporate overhead expenses . factors affecting our liquidity and capital resources are our cash flows from operations , financing activities and investing activities ( including dispositions ) as well as general economic and market conditions . operating cash flow has historically been determined by : ( i ) the number of apartment homes currently owned , ( ii ) rental rates , ( iii ) occupancy levels and ( iv ) operating expenses with respect to apartment homes . the timing and type of capital markets activity in which we engage , as well as our plans for development , redevelopment , acquisition and disposition activity , are affected by changes in the capital markets environment , such as changes in interest rates or the availability of cost-effective capital .

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 employ a disciplined approach to our liquidity and capital management . when we source capital , we take into account both our view of the most cost effective alternative then available and our desire to maintain a balance sheet that provides us with flexibility . our principal short-term liquidity needs are to fund : development and redevelopment activity in which we are currently engaged ; the minimum dividend payments on our common stock required to maintain our reit qualification under the code ; debt service and principal payments either at maturity or opportunistically before maturity ; and normal recurring operating expenses and corporate overhead expenses . factors affecting our liquidity and capital resources are our cash flows from operations , financing activities and investing activities ( including dispositions ) as well as general economic and market conditions . operating cash flow has historically been determined by : ( i ) the number of apartment homes currently owned , ( ii ) rental rates , ( iii ) occupancy levels and ( iv ) operating expenses with respect to apartment homes . the timing and type of capital markets activity in which we engage , as well as our plans for development , redevelopment , acquisition and disposition activity , are affected by changes in the capital markets environment , such as changes in interest rates or the availability of cost-effective capital . ``` Suspicious Activity Report : these amounts were partially offset by a decrease in gains on the sale of unconsolidated communities in various joint ventures and related promote income , coupled with increases in depreciation and interest expense . established communities noi for the year ended december 31 , 2018 increased by $ 26,248,000 , or 2.3 % , over the prior year . the increase was driven by an increase in rental revenue of 2.5 % , partially offset by an increase in operating expenses of 3.2 % over 2017 . during 2018 , we raised approximately $ 1,572,833,000 of gross capital through the issuance of unsecured notes , sale of common shares under cep iv and the sale of consolidated operating communities and other real estate . this amount does not include proceeds from joint venture dispositions . the funds raised from the sale of real estate consist of the proceeds from the sale of eight operating communities , as well as the five communities contributed to the nyc joint venture and one ancillary land parcel . we believe that our current capital structure will continue to provide financial flexibility to access capital on attractive terms . 36 we believe our development activity will continue to create long-term value . during 2018 , we completed the construction of seven communities containing an aggregate of 1,915 apartment homes and 10,000 square feet of retail space , for an aggregate total capitalized cost of $ 742,000,000 , or $ 693,000,000 when including only our 55.0 % interest in one community developed through an unconsolidated joint venture . we also started the construction of eight communities containing an aggregate of 2,154 apartment homes , which are expected to be completed for an estimated total capitalized cost of $ 718,000,000 . in addition , during 2018 we completed the redevelopment of eight communities containing an aggregate of 3,368 apartment homes for a total investment of $ 217,000,000 , excluding costs incurred prior to the redevelopment . we also achieved portfolio growth through acquisitions , acquiring four communities containing an aggregate of 1,096 apartment homes for an aggregate purchase price of $ 334,450,000 . we believe that our balance sheet strength , as measured by our current level of indebtedness , our current ability to service interest and other fixed charges , and our current moderate use of financial encumbrances ( such as secured financing ) provide us with adequate access to liquidity from the capital markets . we expect to be able to meet our reasonably foreseeable liquidity needs , as they arise , through a combination of one or more of the following sources : existing cash on hand ; operating cash flows ; borrowings under our credit facility ; secured debt ; the issuance of corporate securities ( which could include unsecured debt , preferred equity and or common equity ) ; the sale of apartment communities ; or through the formation of joint ventures . see the discussion under `` liquidity and capital resources . `` communities overview as of december 31 , 2018 we owned or held a direct or indirect ownership interest in 291 apartment communities containing 85,158 apartment homes in 12 states and the district of columbia , of which 21 communities were under development and nine communities were under redevelopment . of these communities , 15 were owned by entities that were not consolidated for financial reporting purposes , including five owned by the u.s. fund , five owned by the nyc joint venture and two owned by the ac jv . in addition , we held a direct or indirect ownership interest in development rights to develop an additional 28 wholly-owned communities that , if developed as expected , will contain an estimated 9,769 apartment homes . our real estate investments consist primarily of current communities , development communities and development rights . our current communities are further distinguished as established communities , other stabilized communities , lease-up communities , redevelopment communities and unconsolidated communities . established communities are generally consolidated communities in markets where we have a significant presence that were owned and had stabilized occupancy as of the beginning of the prior year , allowing for a meaningful comparison of operating results between years . other stabilized communities are generally all other completed consolidated communities that have stabilized occupancy during the fiscal year . lease-up communities are consolidated communities where construction has been complete for less than one year and stabilized occupancy has not been achieved . redevelopment communities are consolidated communities where substantial redevelopment is in progress or is planned to begin during the fiscal year . unconsolidated communities are communities that we have an indirect ownership interest in through our investment interest in an unconsolidated joint venture . a more detailed description of our reportable segments and other related operating information can be found in note 8 , “ segment reporting , ” of our consolidated financial statements . although each of these categories is important to our business , we generally evaluate overall operating , industry and market trends based on the operating results of established communities , for which a detailed discussion can be found in “ results of operations ” as part of our discussion of overall operating results . we evaluate our current and future cash needs and future operating potential based on acquisition , disposition , development , redevelopment and financing activities within other stabilized , redevelopment and development communities . discussions related to current and future cash needs and financing activities can be found under `` liquidity and capital resources . `` noi of our current operating communities is one of the financial measures that we use to evaluate the performance of our communities . noi is affected by the demand and supply dynamics within our markets , our rental rates and occupancy levels and our ability to control operating costs . story_separator_special_tag the increase in 2018 was primarily due to an increase in compensation related expenses and a decrease in legal recoveries . the increase in 2017 was primarily due to an increase in compensation related expenses , professional fees , and sales and use tax expense . 42 casualty and impairment loss ( gain ) , net of $ 215,000 for 2018 primarily consists of an impairment charge of $ 826,000 recognized for a land parcel we had acquired for development and no longer intend to develop , partially offset by $ 554,000 of legal settlement proceeds relating to construction defects at a community acquired as part of the archstone acquisition . the loss of $ 6,250,000 for 2017 consists of a $ 9,350,000 impairment charge recognized for a land parcel we had acquired for development in 2004 and sold in july 2017 , and the net impact of the maplewood casualty loss , net of associated insurance receivables , of $ 2,338,000 , partially offset by $ 5,438,000 of legal settlement proceeds relating to construction defects at a community acquired as part of the archstone acquisition . equity in income of unconsolidated real estate entities decreased $ 55,474,000 , or 78.4 % , and increased $ 5,782,000 , or 8.9 % , in 2018 and 2017 , respectively , as compared to the prior years . the decrease in 2018 was primarily due to gains on the sale of communities in various ventures and the recognition of income for the company 's promoted interest from fund ii in the prior year period , coupled with the resulting decreased noi from the ventures in the current year period , due to disposition activity in 2017 and 2018. the increase in 2017 was primarily due to the recognition of income for the company 's promoted interest , partially offset by decreased gains on the sale of communities in various ventures in the current year , and decreased noi from the ventures due to disposition activity in 2016 and 2017. gain on sale of communities increased in 2018 and decreased in 2017 as compared to the prior years . the amount of gain realized in a given period depends on many factors , including the number of communities sold , the size and carrying value of the communities sold and the market conditions in the local area . the gain of $ 374,976,000 in 2018 was primarily due to the sale of eight wholly-owned operating communities and the recognition of the gain associated with the contribution of five wholly-owned operating communities to the nyc joint venture , a venture in which we retained a 20.0 % interest . the gain of $ 252,599,000 in 2017 was primarily due to the sale of six wholly-owned operating communities . gain ( loss ) on other real estate transactions of $ 345,000 in 2018 was primarily composed of gains on ancillary real estate . the loss of $ 10,907,000 in 2017 was primarily composed of the non-cash write-off of prepaid rent associated with the purchase of land previously subject to a ground lease . story_separator_special_tag . financial covenants we are subject to financial and other covenants contained in the credit facility , the term loan and the indenture under which our unsecured notes were issued . the principal financial covenants include the following : limitations on the amount of total and secured debt in relation to our overall capital structure ; limitations on the amount of our unsecured debt relative to the undepreciated basis of real estate assets that are not encumbered by property-specific financing ; and minimum levels of debt service coverage . we were in compliance with these covenants at december 31 , 2018 . in addition , our secured borrowings may include yield maintenance , defeasance , or prepayment penalty provisions , which would result in us incurring an additional charge in the event of a full or partial prepayment of outstanding principal before the scheduled maturity . these provisions in our secured borrowings are generally consistent with other similar types of debt instruments issued during the same time period in which our borrowings were secured . 44 continuous equity offering program in december 2015 , we commenced a fourth continuous equity program ( “ cep iv ” ) under which we may sell up to $ 1,000,000,000 of our common stock from time to time . actual sales will depend on a variety of factors to be determined , including market conditions , the trading price of our common stock and determinations of the appropriate sources of funding . in conjunction with cep iv , we engaged sales agents who will receive compensation of up to 2.0 % of the gross sales price for shares sold . cep iv also allows us to enter into forward sale agreements up to $ 1,000,000,000 in aggregate sales price of our common stock . we expect that we will physically settle each forward sale agreement on one or more dates prior to the maturity date of that particular forward sale agreement , in which case we will expect to receive aggregate net cash proceeds at settlement equal to the number of shares underlying the particular forward agreement multiplied by the relevant forward sale price . however , we may also elect to cash settle or net share settle a forward sale agreement . in connection with each forward sale agreement , we will pay the relevant forward seller , in the form of a reduced initial forward sale price , commission of up to 2.0 % of the sales prices of all borrowed shares of common stock sold . in 2018 , we sold 244,924 shares at an average sales price of $ 189.14 per share , for net proceeds of $ 45,629,000 . as of january 31 , 2019 , we had $ 846,591,000 of shares remaining authorized for issuance under this program and no forward sales agreements outstanding . forward interest rate swap

adjustments to the purchase price included , among other things , approximately $ 208.8 million of principal payments and prepayments , sales proceeds and distributions related to the investment portfolio that were received and retained by us between december 31 , 2017 and the closing of the asset sale transaction , offset by approximately $ 29.5 million of loans and equity investments originated by us between december 31 , 2017 and the closing of the asset sale transaction . in connection with the closing of the asset sale transaction , we caused notices to be issued to the holders of our december 2022 notes and march 2022 notes ( each as defined in our consolidated financial statements for the fiscal year ended december 31 , 2019 and notes thereto ) regarding the redemption of all $ 80.5 million in aggregate principal amount of the december 2022 notes and all $ 86.3 million in aggregate principal amount of the march 2022 notes , in each case , on august 30 , 2018. the december 2022 notes and the march 2022 notes were redeemed at 100 % of their principal amount ( $ 25.00 per note ) , plus the accrued and unpaid interest thereon from june 15 , 2018 to , but excluding , august 30 , 2018. in furtherance of the redemption , on july 31 , 2018 , we irrevocably deposited with the bank of new york mellon trust company , n.a . , as trustee under the indenture and supplements thereto relating to the december 2022 notes and the march 2022 notes , funds in trust for the purposes of redeeming all of the issued and outstanding december 2022 notes and march 2022 notes and paying all sums due and payable under the indenture and supplements thereto . as a result , our obligations under the indenture and supplements thereto relating to the december 2022 notes and the march 2022 notes were satisfied and discharged as of july 31 , 71 2018 , except with respect to those obligations that the indenture expressly provides shall survive the satisfaction and discharge of the indenture . in addition , in connection with the closing of the asset sale transaction , we terminated our senior secured credit facility entered into in may 2015 ( and subsequently amended in may 2017 ) , or the may 2017 credit facility . our former wholly-owned subsidiaries , triangle mezzanine fund lllp , or triangle sbic , triangle mezzanine fund ii lp , or triangle sbic ii , and triangle mezzanine fund iii lp , or triangle sbic iii , were specialty finance limited partnerships that were formed to make investments primarily in lower middle-market companies located throughout the united states . each of triangle sbic , triangle sbic ii and triangle sbic iii held licenses to operate as small business investment companies , or sbics , under the authority of the united states small business administration , or sba . in connection with the closing of the asset sale transaction , we repaid all of our outstanding sba-guaranteed debentures and surrendered the sbic licenses held by triangle sbic , triangle sbic ii , and triangle sbic iii . the externalization transaction closed on august 2 , 2018. effective as of the externalization closing , we changed our name from triangle capital corporation to barings bdc , inc. and on august 3 , 2018 began trading on the new york stock exchange , or nyse , under the symbol `` bbdc . `` in connection with the closing of the externalization transaction , we entered into an investment advisory agreement , or the advisory agreement , and an administration agreement , or the administration agreement , with barings , pursuant to which barings serves as our investment adviser and administrator and manages our investment portfolio which initially consisted primarily of the cash proceeds received in connection with the asset sale transaction . on august 2 , 2018 , we issued 8,529,917 shares of our common stock to barings at a price of $ 11.723443 per share , or an aggregate of $ 100.0 million in cash . furthermore , on august 7 , 2018 , we launched a $ 50.0 million issuer tender offer , or the tender offer . pursuant to the tender offer , we purchased 4,901,961 shares of our common stock at a purchase price of $ 10.20 per share , for an aggregate cost of approximately $ 50.0 million , excluding fees and expenses relating to the tender offer . the shares of common stock purchased in the tender offer represented approximately 8.7 % of our issued and outstanding shares as of september 6 , 2018. on september 24 , 2018 , or the effective date , barings entered into a rule 10b5-1 purchase plan , or the 10b5-1 plan , that qualifies for the safe harbors provided by rules 10b5-1 and 10b-18 under the exchange act . pursuant to the 10b5-1 plan , an independent broker made purchases of shares of our common stock on the open market on behalf of barings in accordance with purchase guidelines specified in the 10b5-1 plan . the 10b5-1 plan was established in accordance with barings obligation under the externalization agreement to enter into a trading plan pursuant to which barings committed to purchase $ 50.0 million in value of shares in open market transactions through an independent broker . the maximum aggregate purchase price of all shares purchased under the 10b5-1 plan was $ 50.0 million . on february 11 , 2019 , barings fulfilled its obligations under the 10b5-1 plan to purchase an aggregate amount of $ 50.0 million in shares of our common stock and the 10b5-1 plan terminated in accordance with its terms . story_separator_special_tag interest and other financing fees during the year ended december 31 , 2019 were attributable to borrowings under the august 2018 credit facility , the february 2019 credit facility and the debt securitization ( each as defined below under `` liquidity and capital resources `` ) . interest and other financing fees during the year ended december 31 , 2018 were primarily attributed to borrowings under our sba-guaranteed debentures , the may 2017 credit facility and both the march 2022 notes and the december 2022 notes . in connection with the transactions , the sba-guaranteed debentures and the may 2017 credit facility were repaid and the march 2022 notes and the december 2022 notes were redeemed . the decrease in interest and other financing fees expense from the year ended december 31 , 2017 to the year ended december 31 , 2018 was primarily attributable to the repayment of our sba-guaranteed debentures , the repayment of our may 2017 credit facility and the redemption of both the march 2022 notes and the december 2022 notes , partially offset by interest and fees incurred related to borrowings under the august 2018 credit facility . base management fees under the advisory agreement , we pay barings a base management fee , or the base management fee , quarterly in arrears on a calendar quarter basis . the base management fee is calculated based on the average value of our gross assets , excluding cash and cash equivalents , at the end of the two most recently completed calendar quarters prior to the quarter for which such fees are being calculated . base management fees for any partial month or quarter are appropriately pro-rated . prior to the externalization transaction we were an internally-managed bdc and did not pay any base management fees . see note 2 to our consolidated financial statements for the year ended december 31 , 2019 for additional information regarding the advisory agreement and the fee arrangement thereunder . for the year ended december 31 , 2019 , the base management fee determined in accordance with the terms of the advisory agreement was approximately $ 12.1 million . for the year ended december 31 , 2018 , the base management fee determined in accordance with the terms of the advisory agreement was approximately $ 4.2 million . for the quarter ended september 30 , 2018 , the calculation of the base management fee under the terms of the advisory agreement was based on the average of our gross assets , excluding cash and cash equivalents , as of march 31 , 2018 and june 30 , 2018 , both of which were dates prior to the consummation of the transactions . for the quarter ended december 31 , 2018 , the calculation of the base management fee under the terms of the advisory agreement was based on the average of our gross assets , excluding cash and cash equivalents , as of june 30 , 2018 , which was prior to the transactions , and september 30 , 2018. in light of this fact , and in order to ensure that barings did not earn a base management fee on assets that it did not manage prior to the transactions , barings calculated the base management fee for the quarter ended september 30 , 2018 based on our average gross assets as of august 2 , 2018 and september 30 , 2018 , excluding ( i ) cash and cash equivalents , ( ii ) short-term investments , ( iii ) unsettled purchased investments and ( iv ) assets subject to participation agreements ( the “ q3 2018 adjusted management fee ” ) . for the quarter ended december 31 , 2018 , barings calculated the base management fee based on our average gross assets as of september 30 , 2018 and 78 december 31 , 2018 , excluding ( i ) cash and cash equivalents , ( ii ) short-term investments , ( iii ) unsettled purchased investments and ( iv ) assets subject to participation agreements ( the “ q4 2018 adjusted management fee , ” and together with the q3 2018 adjusted management fee , ” the “ fy 2018 adjusted management fee ” ) . barings voluntary agreed to waive the difference between the $ 4.2 million base management fee calculated under the terms of the advisory agreement and the fy 2018 adjusted management fee , which resulted in a net base management fee of approximately $ 2.7 million for the year ended december 31 , 2018 after taking into account a waiver of approximately $ 1.5 million based on the calculations noted above . compensation expenses prior to the transactions , compensation expenses were primarily influenced by headcount and levels of business activity . our compensation expenses included salaries , discretionary compensation , equity-based compensation and benefits . discretionary compensation was significantly impacted by our level of total investment income , our investment results , including investment realizations , prevailing labor markets and the external environment . in connection with the transactions , all but two employees were terminated . the compensation expenses for the year ended december 31 , 2019 related to salaries , benefits and discretionary compensation of these remaining employees . compensation expenses for the year ended december 31 , 2018 related predominantly to the transactions , and the subsequent change of control and related termination of our employees . in the year ended december 31 , 2018 , we recognized approximately $ 27.6 million in one-time compensation expenses associated with the transactions which included severance expenses , pro-rata incentive compensation , transaction-related bonuses , expenses related to the acceleration of vesting of restricted stock grants and deferred compensation grants , and other expenses associated with the obligations under our existing severance agreements and severance policy . general and administrative expenses on august 2 , 2018 , we entered into the administration agreement with barings . under the terms of the

cash flows for the year ended december 31 , 2019 , we experienced a net increase in cash in the amount of $ 9.6 million . during that period , our operating activities used $ 31.5 million in cash , consisting primarily of purchases of portfolio investments of $ 473.7 million and purchases of short-term investments of $ 913.6 million , partially offset by proceeds from sales of investments totaling $ 449.9 million and proceeds from the sales of short-term investments of $ 862.3 million . in addition , financing activities provided net cash of $ 41.1 million , consisting primarily of net proceeds from our $ 449.3 million term debt securitization , or the debt securitization , of $ 348.3 million , partially offset by net repayments under the august 2018 credit facility and the february 2019 credit facility of $ 218.6 million , repayments of the debt securitization of $ 30.0 million , purchases of shares under the share repurchase plan of $ 23.4 million , financing fees paid of $ 8.3 million and dividends paid in the amount of $ 26.9 million . at december 31 , 2019 , we had $ 22.0 million of cash on hand . for the year ended december 31 , 2018 , we experienced a net decrease in cash in the amount of $ 179.4 million . during that period , our operating activities used $ 198.3 million in cash , consisting primarily of purchases of portfolio investments of $ 1,553.9 million , purchases of short-term investments of $ 1,363.3 million , partially offset by the sale of our investment portfolio to the asset buyer for $ 793.3 million , proceeds from sales of investments totaling $ 606.8 million and proceeds from the sales of short-term investments of $ 1,318.1 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 for the year ended december 31 , 2019 , we experienced a net increase in cash in the amount of $ 9.6 million . during that period , our operating activities used $ 31.5 million in cash , consisting primarily of purchases of portfolio investments of $ 473.7 million and purchases of short-term investments of $ 913.6 million , partially offset by proceeds from sales of investments totaling $ 449.9 million and proceeds from the sales of short-term investments of $ 862.3 million . in addition , financing activities provided net cash of $ 41.1 million , consisting primarily of net proceeds from our $ 449.3 million term debt securitization , or the debt securitization , of $ 348.3 million , partially offset by net repayments under the august 2018 credit facility and the february 2019 credit facility of $ 218.6 million , repayments of the debt securitization of $ 30.0 million , purchases of shares under the share repurchase plan of $ 23.4 million , financing fees paid of $ 8.3 million and dividends paid in the amount of $ 26.9 million . at december 31 , 2019 , we had $ 22.0 million of cash on hand . for the year ended december 31 , 2018 , we experienced a net decrease in cash in the amount of $ 179.4 million . during that period , our operating activities used $ 198.3 million in cash , consisting primarily of purchases of portfolio investments of $ 1,553.9 million , purchases of short-term investments of $ 1,363.3 million , partially offset by the sale of our investment portfolio to the asset buyer for $ 793.3 million , proceeds from sales of investments totaling $ 606.8 million and proceeds from the sales of short-term investments of $ 1,318.1 million . ``` Suspicious Activity Report : adjustments to the purchase price included , among other things , approximately $ 208.8 million of principal payments and prepayments , sales proceeds and distributions related to the investment portfolio that were received and retained by us between december 31 , 2017 and the closing of the asset sale transaction , offset by approximately $ 29.5 million of loans and equity investments originated by us between december 31 , 2017 and the closing of the asset sale transaction . in connection with the closing of the asset sale transaction , we caused notices to be issued to the holders of our december 2022 notes and march 2022 notes ( each as defined in our consolidated financial statements for the fiscal year ended december 31 , 2019 and notes thereto ) regarding the redemption of all $ 80.5 million in aggregate principal amount of the december 2022 notes and all $ 86.3 million in aggregate principal amount of the march 2022 notes , in each case , on august 30 , 2018. the december 2022 notes and the march 2022 notes were redeemed at 100 % of their principal amount ( $ 25.00 per note ) , plus the accrued and unpaid interest thereon from june 15 , 2018 to , but excluding , august 30 , 2018. in furtherance of the redemption , on july 31 , 2018 , we irrevocably deposited with the bank of new york mellon trust company , n.a . , as trustee under the indenture and supplements thereto relating to the december 2022 notes and the march 2022 notes , funds in trust for the purposes of redeeming all of the issued and outstanding december 2022 notes and march 2022 notes and paying all sums due and payable under the indenture and supplements thereto . as a result , our obligations under the indenture and supplements thereto relating to the december 2022 notes and the march 2022 notes were satisfied and discharged as of july 31 , 71 2018 , except with respect to those obligations that the indenture expressly provides shall survive the satisfaction and discharge of the indenture . in addition , in connection with the closing of the asset sale transaction , we terminated our senior secured credit facility entered into in may 2015 ( and subsequently amended in may 2017 ) , or the may 2017 credit facility . our former wholly-owned subsidiaries , triangle mezzanine fund lllp , or triangle sbic , triangle mezzanine fund ii lp , or triangle sbic ii , and triangle mezzanine fund iii lp , or triangle sbic iii , were specialty finance limited partnerships that were formed to make investments primarily in lower middle-market companies located throughout the united states . each of triangle sbic , triangle sbic ii and triangle sbic iii held licenses to operate as small business investment companies , or sbics , under the authority of the united states small business administration , or sba . in connection with the closing of the asset sale transaction , we repaid all of our outstanding sba-guaranteed debentures and surrendered the sbic licenses held by triangle sbic , triangle sbic ii , and triangle sbic iii . the externalization transaction closed on august 2 , 2018. effective as of the externalization closing , we changed our name from triangle capital corporation to barings bdc , inc. and on august 3 , 2018 began trading on the new york stock exchange , or nyse , under the symbol `` bbdc . `` in connection with the closing of the externalization transaction , we entered into an investment advisory agreement , or the advisory agreement , and an administration agreement , or the administration agreement , with barings , pursuant to which barings serves as our investment adviser and administrator and manages our investment portfolio which initially consisted primarily of the cash proceeds received in connection with the asset sale transaction . on august 2 , 2018 , we issued 8,529,917 shares of our common stock to barings at a price of $ 11.723443 per share , or an aggregate of $ 100.0 million in cash . furthermore , on august 7 , 2018 , we launched a $ 50.0 million issuer tender offer , or the tender offer . pursuant to the tender offer , we purchased 4,901,961 shares of our common stock at a purchase price of $ 10.20 per share , for an aggregate cost of approximately $ 50.0 million , excluding fees and expenses relating to the tender offer . the shares of common stock purchased in the tender offer represented approximately 8.7 % of our issued and outstanding shares as of september 6 , 2018. on september 24 , 2018 , or the effective date , barings entered into a rule 10b5-1 purchase plan , or the 10b5-1 plan , that qualifies for the safe harbors provided by rules 10b5-1 and 10b-18 under the exchange act . pursuant to the 10b5-1 plan , an independent broker made purchases of shares of our common stock on the open market on behalf of barings in accordance with purchase guidelines specified in the 10b5-1 plan . the 10b5-1 plan was established in accordance with barings obligation under the externalization agreement to enter into a trading plan pursuant to which barings committed to purchase $ 50.0 million in value of shares in open market transactions through an independent broker . the maximum aggregate purchase price of all shares purchased under the 10b5-1 plan was $ 50.0 million . on february 11 , 2019 , barings fulfilled its obligations under the 10b5-1 plan to purchase an aggregate amount of $ 50.0 million in shares of our common stock and the 10b5-1 plan terminated in accordance with its terms . story_separator_special_tag interest and other financing fees during the year ended december 31 , 2019 were attributable to borrowings under the august 2018 credit facility , the february 2019 credit facility and the debt securitization ( each as defined below under `` liquidity and capital resources `` ) . interest and other financing fees during the year ended december 31 , 2018 were primarily attributed to borrowings under our sba-guaranteed debentures , the may 2017 credit facility and both the march 2022 notes and the december 2022 notes . in connection with the transactions , the sba-guaranteed debentures and the may 2017 credit facility were repaid and the march 2022 notes and the december 2022 notes were redeemed . the decrease in interest and other financing fees expense from the year ended december 31 , 2017 to the year ended december 31 , 2018 was primarily attributable to the repayment of our sba-guaranteed debentures , the repayment of our may 2017 credit facility and the redemption of both the march 2022 notes and the december 2022 notes , partially offset by interest and fees incurred related to borrowings under the august 2018 credit facility . base management fees under the advisory agreement , we pay barings a base management fee , or the base management fee , quarterly in arrears on a calendar quarter basis . the base management fee is calculated based on the average value of our gross assets , excluding cash and cash equivalents , at the end of the two most recently completed calendar quarters prior to the quarter for which such fees are being calculated . base management fees for any partial month or quarter are appropriately pro-rated . prior to the externalization transaction we were an internally-managed bdc and did not pay any base management fees . see note 2 to our consolidated financial statements for the year ended december 31 , 2019 for additional information regarding the advisory agreement and the fee arrangement thereunder . for the year ended december 31 , 2019 , the base management fee determined in accordance with the terms of the advisory agreement was approximately $ 12.1 million . for the year ended december 31 , 2018 , the base management fee determined in accordance with the terms of the advisory agreement was approximately $ 4.2 million . for the quarter ended september 30 , 2018 , the calculation of the base management fee under the terms of the advisory agreement was based on the average of our gross assets , excluding cash and cash equivalents , as of march 31 , 2018 and june 30 , 2018 , both of which were dates prior to the consummation of the transactions . for the quarter ended december 31 , 2018 , the calculation of the base management fee under the terms of the advisory agreement was based on the average of our gross assets , excluding cash and cash equivalents , as of june 30 , 2018 , which was prior to the transactions , and september 30 , 2018. in light of this fact , and in order to ensure that barings did not earn a base management fee on assets that it did not manage prior to the transactions , barings calculated the base management fee for the quarter ended september 30 , 2018 based on our average gross assets as of august 2 , 2018 and september 30 , 2018 , excluding ( i ) cash and cash equivalents , ( ii ) short-term investments , ( iii ) unsettled purchased investments and ( iv ) assets subject to participation agreements ( the “ q3 2018 adjusted management fee ” ) . for the quarter ended december 31 , 2018 , barings calculated the base management fee based on our average gross assets as of september 30 , 2018 and 78 december 31 , 2018 , excluding ( i ) cash and cash equivalents , ( ii ) short-term investments , ( iii ) unsettled purchased investments and ( iv ) assets subject to participation agreements ( the “ q4 2018 adjusted management fee , ” and together with the q3 2018 adjusted management fee , ” the “ fy 2018 adjusted management fee ” ) . barings voluntary agreed to waive the difference between the $ 4.2 million base management fee calculated under the terms of the advisory agreement and the fy 2018 adjusted management fee , which resulted in a net base management fee of approximately $ 2.7 million for the year ended december 31 , 2018 after taking into account a waiver of approximately $ 1.5 million based on the calculations noted above . compensation expenses prior to the transactions , compensation expenses were primarily influenced by headcount and levels of business activity . our compensation expenses included salaries , discretionary compensation , equity-based compensation and benefits . discretionary compensation was significantly impacted by our level of total investment income , our investment results , including investment realizations , prevailing labor markets and the external environment . in connection with the transactions , all but two employees were terminated . the compensation expenses for the year ended december 31 , 2019 related to salaries , benefits and discretionary compensation of these remaining employees . compensation expenses for the year ended december 31 , 2018 related predominantly to the transactions , and the subsequent change of control and related termination of our employees . in the year ended december 31 , 2018 , we recognized approximately $ 27.6 million in one-time compensation expenses associated with the transactions which included severance expenses , pro-rata incentive compensation , transaction-related bonuses , expenses related to the acceleration of vesting of restricted stock grants and deferred compensation grants , and other expenses associated with the obligations under our existing severance agreements and severance policy . general and administrative expenses on august 2 , 2018 , we entered into the administration agreement with barings . under the terms of the

our asset management business segment includes our fee-based asset management operations , which include on-going base and incentive management fees . as of december 31 , 2015 , we had approximately $ 3.91 billion in aum of which 95.8 % , or $ 3.75 billion , was in cdos . almost all of our asset management revenue is earned from the management of cdos . we have not completed a new securitization since 2008. as a result , our asset management revenue has declined from its historical highs as the assets of the cdos decline as a result of maturities , repayments , auction call redemptions , and defaults . we do not expect to complete any securitizations in the future so we expect our asset management revenue to continue to decline in the future . we generate our revenue by business segment primarily through the following activities . capital markets : o ur trading activities , which include execution and brokerage services , securities lending activities , riskless trading activities , as well as gains and losses ( unrealized and realized ) and income and expense earned on securities classified as trading ; and n ew issue and advisory revenue comprised of ( a ) new issue revenue associated with originating , arranging , or placing newly created financial instruments ; and ( b ) revenue from advisory services . 42 principal investing : g ains and losses ( unrealized and realized ) and income an d expense earned on securities classified as other investments , at fair value ; and i ncome or loss from equity method affiliates . asset management : a sset management fees for our on-going asset manager services provided to various investment vehicles , which may include fees both senior and subordinate to the securities issued by the investment vehicle ; i ncentive management fees earned based on the performance of the various investment vehicles ; and income or loss from equity method affiliates . business environment our business is materially affected by economic conditions in the financial markets , political conditions , broad trends in business and finance , changes in volume and price levels of securities transactions , and changes in interest rates , all of which can affect our profitability and are unpredictable and beyond our control . these factors may affect the financial decisions made by investors and companies , including their level of participation in the financial markets and their willingness to participate in corporate transactions . severe market fluctuations or weak economic conditions could continue to reduce our trading volume and revenues , negatively affect our ability to generate new issue and advisory revenue , and adversely affect our profitability . the markets remain uneven and vulnerable to changes in investor sentiment . we believe the general business environment will continue to be challenging into the foreseeable future . a portion of our revenues is generated from net trading activity . we engage in proprietary trading for our own account , provide securities financing for our customers , as well as execute “ riskless ” trades with a customer order in hand resulting in limited market risk to us . the inventory of securities held for our own account , as well as held to facilitate customer trades , and our market making activities are sensitive to market movements . a portion of our revenues is generated from new issue and advisory engagements . the fees charged and volume of these engagements is sensitive to the overall business environment . during the first quarter of 2014 , we stopped providing investment banking and advisory services in the united states as a result of the loss of certain of jvb 's former employees . currently , jvb 's primary source of new issue revenue is our sba group 's participation in coof securitizations . the sba secondary market program allows for the purchaser of a sba loan certificate to “ strip ” a portion of the interest rate from a guaranteed loan portion , creating what is called an originator fee or interest only strip . this enhances the ability of sba pool assemblers to securitize the guaranteed portion of loans that do not have the same interest rate . our sba group 's participation in this area has grown during recent years . a portion of our revenues is generated from management fees . our ability to charge management fees and the amount of those fees is dependent upon the underlying investment performance and stability of the investment vehicles . if these types of investments do not provide attractive returns to investors , the demand for such instruments will likely fall , thereby reducing our opportunity to earn new management fees or maintain existing management fees . as of december 31 , 2015 , 95.8 % of our existing aum were cdos . the creation of cdos and permanent capital vehicles has depended upon a vibrant securitization market . since 2008 , volumes within the securitization market have dropped significantly and have not recovered since that time . consequently , we have been unable to complete a new securitization since 2008. a portion of our revenues is generated from our principal investing activities . therefore , our revenues are impacted by the underlying operating results of these investments . as of december 31 , 2015 , our total other investments , at fair value ( which represents our principal investments ) was $ 14,880 . of this amount , $ 11,569 , or 77.7 % , represented investments in clos . the value of these investments is impacted by the performance of the underlying loans in these clos as well as the overall clo market . margin pressures in fixed income brokerage business performance in the financial services industry in which we operate is highly correlated to the overall strength of the economy and financial market activity . story_separator_special_tag the following table summarizes the p eriods presented by asset class . replace_table_token_9_th asset management fees for trups and insurance company debt – u.s. declined primarily because in may 2014 and october 2014 , two securitizations that we managed had successful auctions and terminated . we will no longer earn fees related to these securitizations going forward . we earned a total of $ 903 in revenue from these two securitizations for the year ended december 31 , 2014. asset management fees for high grade and mezzanine abs declined primarily due to the transfer of certain management contracts to a third party and the liquidation of one cdo . as of december 31 , 2015 , we no longer manage any cdos in this asset class . we do not expect to earn material management fees in the future from this asset class . asset management fees for trups and insurance company debt – europe declined because of both ( i ) the decline of collateral balances due to principal payments and defaults and ( ii ) the impact of foreign exchange rates as these contracts make management fee payments in euros . asset management fees for broadly syndicated loans – europe consist of a single clo . fees declined because the reinvestment period has ended for this clo . following the end of such reinvestment period , principal payments received are paid out to investors in the clo . the fees we earn will decline as the collateral balances decline . additionally , this contract also makes management fee payments in euros , which negatively impacted the revenue earned . a significant portion of our managed cdos have stopped paying subordinated management fees due to diversion of cash flows called for within the cdo governing documents . see “ critical accounting policies and estimates – revenue recognition – asset management ” beginning on page 68 for discussion of our accounting policy regarding recognition of revenue related to subordinated management fees . other other asset management revenue decreased by $ 2,493 to $ 1,004 for the year ended december 31 , 2015 , as compared to $ 3,497 for the year ended december 31 , 2014 . the decrease was comprised of ( i ) a decrease of $ 125 resulting from the sale of star asia 48 manager and ( ii ) a decrease of $ 2,368 in asset management revenue earned from separ ate accounts primarily due to lower performance fees being earned during 2015. new issue and advisory revenue new issue and advisory revenue increased by $ 151 , or 3 % , to $ 5,370 for the year ended december 31 , 2015 , as compared to $ 5,219 for the year ended december 31 , 2014 . new issue and advisory revenue remained relatively flat . new issue and advisory revenue earned by ccfl increased by $ 2,072 , while new issue and advisory revenue earned by jvb decline d by $ 1,921. during the first quarter of 2014 , our u.s. broker-dealer , jvb , stopped providing investment banking and advisory services to special purpose acquisition companies ( “ spacs ” ) . while certain of the former employees of jvb 's spac investment banking and advisory group went to work for another firm , we entered into an agreement ( the “ tail agreement ” ) whereby we allowed such former employees to continue work on certain in process engagements with their new firm . as part of the tail agreement , we receive d a certain share of the revenue earned by the new firm related to these engagements . during the year ended december 31 , 2014 , we earned total new issue revenue of $ 1,889 under the tail agreement from investment banking and advisory services related to spacs . we did not earn any revenue under the tail agreement in 2015. we do not expect further revenue to be earned under this agreement . currently , jvb 's primary source of new issue revenue is our sba group 's participation in coof securitizations , defined as sba confirmation of originator fee certificates ( “ coof ” ) . the sba secondary market program allows for the purchaser of a sba loan certificate to “ strip ” a portion of the interest rate from a guaranteed loan portion , creating what is called an originator fee or interest only strip . this enhances the ability of sba pool assemblers to securitize the guaranteed portion of loans that do not have the same interest rate . our sba group 's participation in this area has grown during recent years . our new issue and advisory revenue has been , and we expect will continue to be , volatile . we earn revenue from a limited number of engagements . therefore , a small change in the number of engagements can result in large fluctuations in the revenue recognized . further , even if the number of engagements remains consistent , the average revenue per engagement can fluctuate considerably . finally , our revenue is generally earned when an underlying transaction closes ( rather than on a monthly or quarterly basis ) . therefore , the timing of underlying transactions increases the volatility of our revenue recognition . principal transactions and other income principal transactions and other income decreased by $ 7,901 to $ 78 for the year ended december 31 , 2015 , as compared to $ 7,979 for the year ended december 31 , 2014 . replace_table_token_10_th 49 principal transactions eurodekania is an investment company and we carry our investment at the nav of the fund . income recognized in each period is a result of changes in the underlying nav of the fund as well as distributions received . our investment in eurodekania is denominated in euros . we sometimes hedge this exposure ( as described in greater detail below ) . currently , eurodekania is not making new

the cash provided by investing activities of $ 11,871 was comprised of ( a ) $ 12,031 in sales and returns of principal in other investments , at fair value ; partially offset by ( b ) $ 11 of purchases of other investments , at fair value and $ 149 of purchase of furniture , equipment , and leasehold improvements . the cash used in financing activities of $ 5,620 was comprised of ( a ) $ 4,000 in repurchases of our common stock in connection with the termination agreement ( see note 4 to our annual report on form 10-k ) , ( b ) $ 1,193 of dividends to stockholders of ifmi , and ( c ) $ 427 of distributions to non-controlling interests of the operating llc . 2014 cash flows as of december 31 , 2014 , our cash and cash equivalents were $ 12,253 , representing a decrease of $ 908 from december 31 , 2013. the decrease was attributable to the cash provided by operating activities of $ 4,114 , the cash provided by investing activities of $ 464 , the cash used in financing activities of $ 5,289 , and the decrease in cash caused by a change in exchange rates of $ 197. the cash provided by operating activities of $ 4,114 was comprised of ( a ) net cash outflows of $ 5,454 related to working capital fluctuations ; ( b ) net cash inflows of $ 8,446 from trading activities comprised of our investments-trading , trading securities sold , not yet purchased , securities sold under agreement to repurchase , and receivables and payables from brokers , dealers and clearing agencies , as well as the changes in unrealized gains and losses on the investments-trading and trading securities sold , but not yet purchased ; and ( c ) net cash inflows from other earnings items of $ 1,122 ( which represents net income or loss adjusted for the following non-cash operating items : other income / ( expense ) , realized and unrealized gains and losses on other investments , income or loss from equity method affiliates , equity based compensation , depreciation , and amortization ) .

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. ```the cash provided by investing activities of $ 11,871 was comprised of ( a ) $ 12,031 in sales and returns of principal in other investments , at fair value ; partially offset by ( b ) $ 11 of purchases of other investments , at fair value and $ 149 of purchase of furniture , equipment , and leasehold improvements . the cash used in financing activities of $ 5,620 was comprised of ( a ) $ 4,000 in repurchases of our common stock in connection with the termination agreement ( see note 4 to our annual report on form 10-k ) , ( b ) $ 1,193 of dividends to stockholders of ifmi , and ( c ) $ 427 of distributions to non-controlling interests of the operating llc . 2014 cash flows as of december 31 , 2014 , our cash and cash equivalents were $ 12,253 , representing a decrease of $ 908 from december 31 , 2013. the decrease was attributable to the cash provided by operating activities of $ 4,114 , the cash provided by investing activities of $ 464 , the cash used in financing activities of $ 5,289 , and the decrease in cash caused by a change in exchange rates of $ 197. the cash provided by operating activities of $ 4,114 was comprised of ( a ) net cash outflows of $ 5,454 related to working capital fluctuations ; ( b ) net cash inflows of $ 8,446 from trading activities comprised of our investments-trading , trading securities sold , not yet purchased , securities sold under agreement to repurchase , and receivables and payables from brokers , dealers and clearing agencies , as well as the changes in unrealized gains and losses on the investments-trading and trading securities sold , but not yet purchased ; and ( c ) net cash inflows from other earnings items of $ 1,122 ( which represents net income or loss adjusted for the following non-cash operating items : other income / ( expense ) , realized and unrealized gains and losses on other investments , income or loss from equity method affiliates , equity based compensation , depreciation , and amortization ) . ``` Suspicious Activity Report : our asset management business segment includes our fee-based asset management operations , which include on-going base and incentive management fees . as of december 31 , 2015 , we had approximately $ 3.91 billion in aum of which 95.8 % , or $ 3.75 billion , was in cdos . almost all of our asset management revenue is earned from the management of cdos . we have not completed a new securitization since 2008. as a result , our asset management revenue has declined from its historical highs as the assets of the cdos decline as a result of maturities , repayments , auction call redemptions , and defaults . we do not expect to complete any securitizations in the future so we expect our asset management revenue to continue to decline in the future . we generate our revenue by business segment primarily through the following activities . capital markets : o ur trading activities , which include execution and brokerage services , securities lending activities , riskless trading activities , as well as gains and losses ( unrealized and realized ) and income and expense earned on securities classified as trading ; and n ew issue and advisory revenue comprised of ( a ) new issue revenue associated with originating , arranging , or placing newly created financial instruments ; and ( b ) revenue from advisory services . 42 principal investing : g ains and losses ( unrealized and realized ) and income an d expense earned on securities classified as other investments , at fair value ; and i ncome or loss from equity method affiliates . asset management : a sset management fees for our on-going asset manager services provided to various investment vehicles , which may include fees both senior and subordinate to the securities issued by the investment vehicle ; i ncentive management fees earned based on the performance of the various investment vehicles ; and income or loss from equity method affiliates . business environment our business is materially affected by economic conditions in the financial markets , political conditions , broad trends in business and finance , changes in volume and price levels of securities transactions , and changes in interest rates , all of which can affect our profitability and are unpredictable and beyond our control . these factors may affect the financial decisions made by investors and companies , including their level of participation in the financial markets and their willingness to participate in corporate transactions . severe market fluctuations or weak economic conditions could continue to reduce our trading volume and revenues , negatively affect our ability to generate new issue and advisory revenue , and adversely affect our profitability . the markets remain uneven and vulnerable to changes in investor sentiment . we believe the general business environment will continue to be challenging into the foreseeable future . a portion of our revenues is generated from net trading activity . we engage in proprietary trading for our own account , provide securities financing for our customers , as well as execute “ riskless ” trades with a customer order in hand resulting in limited market risk to us . the inventory of securities held for our own account , as well as held to facilitate customer trades , and our market making activities are sensitive to market movements . a portion of our revenues is generated from new issue and advisory engagements . the fees charged and volume of these engagements is sensitive to the overall business environment . during the first quarter of 2014 , we stopped providing investment banking and advisory services in the united states as a result of the loss of certain of jvb 's former employees . currently , jvb 's primary source of new issue revenue is our sba group 's participation in coof securitizations . the sba secondary market program allows for the purchaser of a sba loan certificate to “ strip ” a portion of the interest rate from a guaranteed loan portion , creating what is called an originator fee or interest only strip . this enhances the ability of sba pool assemblers to securitize the guaranteed portion of loans that do not have the same interest rate . our sba group 's participation in this area has grown during recent years . a portion of our revenues is generated from management fees . our ability to charge management fees and the amount of those fees is dependent upon the underlying investment performance and stability of the investment vehicles . if these types of investments do not provide attractive returns to investors , the demand for such instruments will likely fall , thereby reducing our opportunity to earn new management fees or maintain existing management fees . as of december 31 , 2015 , 95.8 % of our existing aum were cdos . the creation of cdos and permanent capital vehicles has depended upon a vibrant securitization market . since 2008 , volumes within the securitization market have dropped significantly and have not recovered since that time . consequently , we have been unable to complete a new securitization since 2008. a portion of our revenues is generated from our principal investing activities . therefore , our revenues are impacted by the underlying operating results of these investments . as of december 31 , 2015 , our total other investments , at fair value ( which represents our principal investments ) was $ 14,880 . of this amount , $ 11,569 , or 77.7 % , represented investments in clos . the value of these investments is impacted by the performance of the underlying loans in these clos as well as the overall clo market . margin pressures in fixed income brokerage business performance in the financial services industry in which we operate is highly correlated to the overall strength of the economy and financial market activity . story_separator_special_tag the following table summarizes the p eriods presented by asset class . replace_table_token_9_th asset management fees for trups and insurance company debt – u.s. declined primarily because in may 2014 and october 2014 , two securitizations that we managed had successful auctions and terminated . we will no longer earn fees related to these securitizations going forward . we earned a total of $ 903 in revenue from these two securitizations for the year ended december 31 , 2014. asset management fees for high grade and mezzanine abs declined primarily due to the transfer of certain management contracts to a third party and the liquidation of one cdo . as of december 31 , 2015 , we no longer manage any cdos in this asset class . we do not expect to earn material management fees in the future from this asset class . asset management fees for trups and insurance company debt – europe declined because of both ( i ) the decline of collateral balances due to principal payments and defaults and ( ii ) the impact of foreign exchange rates as these contracts make management fee payments in euros . asset management fees for broadly syndicated loans – europe consist of a single clo . fees declined because the reinvestment period has ended for this clo . following the end of such reinvestment period , principal payments received are paid out to investors in the clo . the fees we earn will decline as the collateral balances decline . additionally , this contract also makes management fee payments in euros , which negatively impacted the revenue earned . a significant portion of our managed cdos have stopped paying subordinated management fees due to diversion of cash flows called for within the cdo governing documents . see “ critical accounting policies and estimates – revenue recognition – asset management ” beginning on page 68 for discussion of our accounting policy regarding recognition of revenue related to subordinated management fees . other other asset management revenue decreased by $ 2,493 to $ 1,004 for the year ended december 31 , 2015 , as compared to $ 3,497 for the year ended december 31 , 2014 . the decrease was comprised of ( i ) a decrease of $ 125 resulting from the sale of star asia 48 manager and ( ii ) a decrease of $ 2,368 in asset management revenue earned from separ ate accounts primarily due to lower performance fees being earned during 2015. new issue and advisory revenue new issue and advisory revenue increased by $ 151 , or 3 % , to $ 5,370 for the year ended december 31 , 2015 , as compared to $ 5,219 for the year ended december 31 , 2014 . new issue and advisory revenue remained relatively flat . new issue and advisory revenue earned by ccfl increased by $ 2,072 , while new issue and advisory revenue earned by jvb decline d by $ 1,921. during the first quarter of 2014 , our u.s. broker-dealer , jvb , stopped providing investment banking and advisory services to special purpose acquisition companies ( “ spacs ” ) . while certain of the former employees of jvb 's spac investment banking and advisory group went to work for another firm , we entered into an agreement ( the “ tail agreement ” ) whereby we allowed such former employees to continue work on certain in process engagements with their new firm . as part of the tail agreement , we receive d a certain share of the revenue earned by the new firm related to these engagements . during the year ended december 31 , 2014 , we earned total new issue revenue of $ 1,889 under the tail agreement from investment banking and advisory services related to spacs . we did not earn any revenue under the tail agreement in 2015. we do not expect further revenue to be earned under this agreement . currently , jvb 's primary source of new issue revenue is our sba group 's participation in coof securitizations , defined as sba confirmation of originator fee certificates ( “ coof ” ) . the sba secondary market program allows for the purchaser of a sba loan certificate to “ strip ” a portion of the interest rate from a guaranteed loan portion , creating what is called an originator fee or interest only strip . this enhances the ability of sba pool assemblers to securitize the guaranteed portion of loans that do not have the same interest rate . our sba group 's participation in this area has grown during recent years . our new issue and advisory revenue has been , and we expect will continue to be , volatile . we earn revenue from a limited number of engagements . therefore , a small change in the number of engagements can result in large fluctuations in the revenue recognized . further , even if the number of engagements remains consistent , the average revenue per engagement can fluctuate considerably . finally , our revenue is generally earned when an underlying transaction closes ( rather than on a monthly or quarterly basis ) . therefore , the timing of underlying transactions increases the volatility of our revenue recognition . principal transactions and other income principal transactions and other income decreased by $ 7,901 to $ 78 for the year ended december 31 , 2015 , as compared to $ 7,979 for the year ended december 31 , 2014 . replace_table_token_10_th 49 principal transactions eurodekania is an investment company and we carry our investment at the nav of the fund . income recognized in each period is a result of changes in the underlying nav of the fund as well as distributions received . our investment in eurodekania is denominated in euros . we sometimes hedge this exposure ( as described in greater detail below ) . currently , eurodekania is not making new

operating profit increased $ 119.2 million , or 189.0 % , to $ 56.1 million for the year ended december 31 , 2018 , as compared to operating loss of $ 63.1 million in 2017 , primarily due to increases of $ 61.6 million and $ 45.3 million in the core u.s. and acceptance now segments , respectively , as discussed further in the segment performance sections below . operating profit ( loss ) expressed as a percentage of total revenue was 2.1 % for the year ended december 31 , 2018 , as compared to ( 2.3 ) % for 2017 . excluding other charges , profit was $ 115.5 million or 4.3 % of revenue or the year ended december 31 , 2018 , compared to $ ( 3.8 ) million or ( 0.1 ) % of revenue for the comparable period of 2017 . income tax expense ( benefit ) . income tax expense for the twelve months ended december 31 , 2018 was $ 5.3 million , as compared to an income tax benefit of $ 116.9 million in 2017 , primarily due to the impact of the tax cuts and jobs act of 2017 ( “ tax act ” ) 22 on our deferred tax balances in the prior year . the effective tax rate was 38.6 % for the twelve months ended december 31 , 2018 , compared to 106.0 % in 2017 . excluding impacts from the tax act , the effective tax rate was 41.5 % for the twelve months ended december 31 , 2017. net earnings . net earnings were $ 8.5 million for the year ended december 31 , 2018 as compared to $ 6.7 million in 2017 . excluding impacts from other charges and the tax act , net earnings were $ 57.8 million for the year ended december 31 , 2018 as compared to net loss of $ 28.7 million in 2017 . comparison of the years ended december 31 , 2017 and 2016 store revenue . total store revenue decreased by $ 258.1 million , or 8.8 % , to $ 2,680.4 million for the year ended december 31 , 2017 , from $ 2,938.5 million for 2016. this was primarily due to a decrease of approximately $ 234.3 million in the core u.s. segment , as discussed further in the segment performance section below . same store revenue is reported on a constant currency basis and generally represents revenue earned in 3,376 locations that were operated by us for 13 months or more , excluding any store that receives a certain level of customer accounts from another store ( acquisition or merger ) . receiving stores will be eligible for inclusion in the same store sales base in the twenty-fourth full month following the account transfer . in addition , due to the severity of the hurricane impacts , we instituted a change to the same store sales store selection criteria to exclude stores in geographically impacted regions for 18 months . same store revenues decreased by $ 99.2 million , or 5.4 % , to $ 1,753.9 million for the year ended december 31 , 2017 , as compared to $ 1,853.1 million in 2016. the decrease in same store revenues was primarily attributable to a decline in the core u.s. segment , as discussed further in the segment performance section below . cost of rentals and fees . cost of rentals and fees consists primarily of depreciation of rental merchandise . cost of rentals and fees for the year ended december 31 , 2017 , decreased by $ 39.5 million , or 5.9 % , to $ 625.4 million , as compared to $ 664.8 million in 2016. this decrease in cost of rentals and fees was primarily attributable to a decrease of $ 35.7 million in the core u.s. segment as a result of lower rentals and fees revenue . cost of rentals and fees expressed as a percentage of rentals and fees revenue increased to 27.6 % for the year ended december 31 , 2017 as compared to 26.6 % in 2016. cost of merchandise sold . cost of merchandise sold represents the net book value of rental merchandise at time of sale . cost of merchandise sold decreased by $ 1.1 million , or 0.3 % , to $ 322.6 million for the year ended december 31 , 2017 , from $ 323.7 million in 2016. the gross margin percent of merchandise sales decreased to 2.6 % for the year ended december 31 , 2017 , from 7.8 % in 2016. these decreases were primarily attributable to a decrease of $ 6.4 million in the core u.s. segment , partially offset by an increase of $ 5.3 million in the acceptance now segment driven by a focused effort to encourage ownership and reduce returned product . gross profit . gross profit decreased by $ 216.5 million , or 11.2 % , to $ 1,718.5 million for the year ended december 31 , 2017 , from $ 1,935.0 million in 2016 , due primarily to a decrease of $ 191.5 million in the core u.s. segment , as discussed further in the segment performance section below . gross profit as a percentage of total revenue decreased to 63.6 % in 2017 compared to 65.3 % in 2016. store labor . store labor includes all salaries and wages paid to store-level employees and district managers ' salaries , together with payroll taxes and benefits . story_separator_special_tag most of our store leases are five year leases and contain renewal options for additional periods ranging from three to five years at rental rates adjusted according to agreed-upon formulas . contractual cash commitments . the table below summarizes debt , lease and other minimum cash obligations outstanding as of december 31 , 2018 : replace_table_token_16_th ( 1 ) includes interest payments of $ 9.7 million on each may 15 and november 15 of each year . ( 2 ) includes interest payments of $ 5.9 million on each may 1 and november 1 of each year . ( 3 ) as of december 31 , 2018 , we have recorded $ 38.2 million in uncertain tax positions . because of the uncertainty of the amounts to be ultimately paid as well as the timing of such payments , uncertain tax positions are not reflected in the contractual obligations table . seasonality . our revenue mix is moderately seasonal , with the first quarter of each fiscal year generally providing higher merchandise sales than any other quarter during a fiscal year , primarily related to the receipt of federal income tax refunds by our customers . generally , our customers will more frequently exercise the early purchase option on their existing rental purchase agreements or purchase pre-leased merchandise off the showroom floor during the first quarter of each fiscal year . furthermore , we tend to experience slower growth in the number of rental purchase agreements in the third quarter of each fiscal year when compared to other quarters throughout the year . we expect these trends to continue in the future . 29 critical accounting estimates , uncertainties or assessments in our financial statements the preparation of our consolidated financial statements in conformity with accounting principles generally accepted in the united states of america requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities , disclosure of contingent losses and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period . in applying accounting principles , we must often make individual estimates and assumptions regarding expected outcomes or uncertainties . 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 . we believe the following are areas where the degree of judgment and complexity in determining amounts recorded in our consolidated financial statements make the accounting policies critical . if we make changes to our reserves in accordance with the policies described below , our earnings would be impacted . increases to our reserves would reduce earnings and , similarly , reductions to our reserves would increase our earnings . a pre-tax change of approximately $ 0.7 million in our estimates would result in a corresponding $ 0.01 change in our diluted earnings per common share . self-insurance liabilities . we have self-insured retentions with respect to losses under our workers ' compensation , general liability , vehicle liability and health insurance programs . we establish reserves for our liabilities associated with these losses by obtaining forecasts for the ultimate expected losses and estimating amounts needed to pay losses within our self-insured retentions . we continually institute procedures to manage our loss exposure and increases in health care costs associated with our insurance claims through our risk management function , including a transitional duty program for injured workers , ongoing safety and accident prevention training , and various other programs designed to minimize losses and improve our loss experience in our store locations . we make assumptions on our liabilities within our self-insured retentions using actuarial loss forecasts , company-specific development factors , general industry loss development factors , and third-party claim administrator loss estimates which are based on known facts surrounding individual claims . these assumptions incorporate expected increases in health care costs . periodically , we reevaluate our estimate of liability within our self-insured retentions . at that time , we evaluate the adequacy of our reserves by comparing amounts reserved on our balance sheet for anticipated losses to our updated actuarial loss forecasts and third-party claim administrator loss estimates , and make adjustments to our reserves as needed . as of december 31 , 2018 , the amount reserved for losses within our self-insured retentions with respect to workers ' compensation , general liability and vehicle liability insurance was $ 101.6 million , as compared to $ 118.0 million at december 31 , 2017 . however , if any of the factors that contribute to the overall cost of insurance claims were to change , the actual amount incurred for our self-insurance liabilities could be more or less than the amounts currently reserved . income taxes . our annual tax rate is affected by many factors , including the mix of our earnings , legislation and acquisitions , and is based on our income , statutory tax rates and tax planning opportunities available to us in the jurisdictions in which we operate . tax laws are complex and subject to differing interpretations between the taxpayer and the taxing authorities . significant judgment is required in determining our tax expense , evaluating our tax positions and evaluating uncertainties . deferred income tax assets represent amounts available to reduce income taxes payable in future years . such assets arise because of temporary differences between the financial reporting and tax bases of assets and liabilities , as well as from net operating loss and tax credit carryforwards . we evaluate the recoverability of these future tax deductions and credits by assessing the future expected taxable income from all sources , including reversal of taxable temporary differences , forecasted operating earnings and available tax planning strategies . these sources of income rely heavily on estimates . we use our historical experience and our short- and long-range business

cash flow from operations was $ 227.5 million for the twelve months ended december 31 , 2018 . we paid down debt by $ 139.3 million during the year , ending the period with $ 155.4 million of cash and cash equivalents . 20 the following table is a reference for the discussion that follows . replace_table_token_3_th comparison of the years ended december 31 , 2018 and 2017 store revenue . total store revenue decreased by $ 52.5 million , or 2.0 % , to $ 2,627.9 million for the year ended december 31 , 2018 , from $ 2,680.4 million for 2017 . this was primarily due to a decrease of approximately $ 75.4 million in the acceptance now segment , partially offset by an increase of $ 20.3 million in the core u.s. segment , as discussed further in the segment performance section below . same store revenue is reported on a constant currency basis and generally represents revenue earned in 2,575 locations that were operated by us for 13 months or more , excluding any store that receives a certain level of customer accounts from another store ( acquisition or merger ) . receiving stores will be eligible for inclusion in the same store sales base in the twenty-fourth full month 21 following the account transfer . in addition , due to the severity of the hurricane impacts , we instituted a change to the same store sales store selection criteria to exclude stores in geographically impacted regions for 18 months . same store revenues increased by $ 74.8 million , or 4.7 % , to $ 1,653.4 million for the year ended december 31 , 2018 , as compared to $ 1,578.6 million in 2017 . the increase in same store revenues was primarily attributable to an improvement in the core u.s. segment , as discussed further in the segment performance section below . cost of rentals and fees . cost of rentals and fees consists primarily of depreciation of rental merchandise . cost of rentals and fees for the year ended december 31 , 2018 decreased by $ 3.5 million , or 0.6 % , to $ 621.9

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 was $ 227.5 million for the twelve months ended december 31 , 2018 . we paid down debt by $ 139.3 million during the year , ending the period with $ 155.4 million of cash and cash equivalents . 20 the following table is a reference for the discussion that follows . replace_table_token_3_th comparison of the years ended december 31 , 2018 and 2017 store revenue . total store revenue decreased by $ 52.5 million , or 2.0 % , to $ 2,627.9 million for the year ended december 31 , 2018 , from $ 2,680.4 million for 2017 . this was primarily due to a decrease of approximately $ 75.4 million in the acceptance now segment , partially offset by an increase of $ 20.3 million in the core u.s. segment , as discussed further in the segment performance section below . same store revenue is reported on a constant currency basis and generally represents revenue earned in 2,575 locations that were operated by us for 13 months or more , excluding any store that receives a certain level of customer accounts from another store ( acquisition or merger ) . receiving stores will be eligible for inclusion in the same store sales base in the twenty-fourth full month 21 following the account transfer . in addition , due to the severity of the hurricane impacts , we instituted a change to the same store sales store selection criteria to exclude stores in geographically impacted regions for 18 months . same store revenues increased by $ 74.8 million , or 4.7 % , to $ 1,653.4 million for the year ended december 31 , 2018 , as compared to $ 1,578.6 million in 2017 . the increase in same store revenues was primarily attributable to an improvement in the core u.s. segment , as discussed further in the segment performance section below . cost of rentals and fees . cost of rentals and fees consists primarily of depreciation of rental merchandise . cost of rentals and fees for the year ended december 31 , 2018 decreased by $ 3.5 million , or 0.6 % , to $ 621.9 ``` Suspicious Activity Report : operating profit increased $ 119.2 million , or 189.0 % , to $ 56.1 million for the year ended december 31 , 2018 , as compared to operating loss of $ 63.1 million in 2017 , primarily due to increases of $ 61.6 million and $ 45.3 million in the core u.s. and acceptance now segments , respectively , as discussed further in the segment performance sections below . operating profit ( loss ) expressed as a percentage of total revenue was 2.1 % for the year ended december 31 , 2018 , as compared to ( 2.3 ) % for 2017 . excluding other charges , profit was $ 115.5 million or 4.3 % of revenue or the year ended december 31 , 2018 , compared to $ ( 3.8 ) million or ( 0.1 ) % of revenue for the comparable period of 2017 . income tax expense ( benefit ) . income tax expense for the twelve months ended december 31 , 2018 was $ 5.3 million , as compared to an income tax benefit of $ 116.9 million in 2017 , primarily due to the impact of the tax cuts and jobs act of 2017 ( “ tax act ” ) 22 on our deferred tax balances in the prior year . the effective tax rate was 38.6 % for the twelve months ended december 31 , 2018 , compared to 106.0 % in 2017 . excluding impacts from the tax act , the effective tax rate was 41.5 % for the twelve months ended december 31 , 2017. net earnings . net earnings were $ 8.5 million for the year ended december 31 , 2018 as compared to $ 6.7 million in 2017 . excluding impacts from other charges and the tax act , net earnings were $ 57.8 million for the year ended december 31 , 2018 as compared to net loss of $ 28.7 million in 2017 . comparison of the years ended december 31 , 2017 and 2016 store revenue . total store revenue decreased by $ 258.1 million , or 8.8 % , to $ 2,680.4 million for the year ended december 31 , 2017 , from $ 2,938.5 million for 2016. this was primarily due to a decrease of approximately $ 234.3 million in the core u.s. segment , as discussed further in the segment performance section below . same store revenue is reported on a constant currency basis and generally represents revenue earned in 3,376 locations that were operated by us for 13 months or more , excluding any store that receives a certain level of customer accounts from another store ( acquisition or merger ) . receiving stores will be eligible for inclusion in the same store sales base in the twenty-fourth full month following the account transfer . in addition , due to the severity of the hurricane impacts , we instituted a change to the same store sales store selection criteria to exclude stores in geographically impacted regions for 18 months . same store revenues decreased by $ 99.2 million , or 5.4 % , to $ 1,753.9 million for the year ended december 31 , 2017 , as compared to $ 1,853.1 million in 2016. the decrease in same store revenues was primarily attributable to a decline in the core u.s. segment , as discussed further in the segment performance section below . cost of rentals and fees . cost of rentals and fees consists primarily of depreciation of rental merchandise . cost of rentals and fees for the year ended december 31 , 2017 , decreased by $ 39.5 million , or 5.9 % , to $ 625.4 million , as compared to $ 664.8 million in 2016. this decrease in cost of rentals and fees was primarily attributable to a decrease of $ 35.7 million in the core u.s. segment as a result of lower rentals and fees revenue . cost of rentals and fees expressed as a percentage of rentals and fees revenue increased to 27.6 % for the year ended december 31 , 2017 as compared to 26.6 % in 2016. cost of merchandise sold . cost of merchandise sold represents the net book value of rental merchandise at time of sale . cost of merchandise sold decreased by $ 1.1 million , or 0.3 % , to $ 322.6 million for the year ended december 31 , 2017 , from $ 323.7 million in 2016. the gross margin percent of merchandise sales decreased to 2.6 % for the year ended december 31 , 2017 , from 7.8 % in 2016. these decreases were primarily attributable to a decrease of $ 6.4 million in the core u.s. segment , partially offset by an increase of $ 5.3 million in the acceptance now segment driven by a focused effort to encourage ownership and reduce returned product . gross profit . gross profit decreased by $ 216.5 million , or 11.2 % , to $ 1,718.5 million for the year ended december 31 , 2017 , from $ 1,935.0 million in 2016 , due primarily to a decrease of $ 191.5 million in the core u.s. segment , as discussed further in the segment performance section below . gross profit as a percentage of total revenue decreased to 63.6 % in 2017 compared to 65.3 % in 2016. store labor . store labor includes all salaries and wages paid to store-level employees and district managers ' salaries , together with payroll taxes and benefits . story_separator_special_tag most of our store leases are five year leases and contain renewal options for additional periods ranging from three to five years at rental rates adjusted according to agreed-upon formulas . contractual cash commitments . the table below summarizes debt , lease and other minimum cash obligations outstanding as of december 31 , 2018 : replace_table_token_16_th ( 1 ) includes interest payments of $ 9.7 million on each may 15 and november 15 of each year . ( 2 ) includes interest payments of $ 5.9 million on each may 1 and november 1 of each year . ( 3 ) as of december 31 , 2018 , we have recorded $ 38.2 million in uncertain tax positions . because of the uncertainty of the amounts to be ultimately paid as well as the timing of such payments , uncertain tax positions are not reflected in the contractual obligations table . seasonality . our revenue mix is moderately seasonal , with the first quarter of each fiscal year generally providing higher merchandise sales than any other quarter during a fiscal year , primarily related to the receipt of federal income tax refunds by our customers . generally , our customers will more frequently exercise the early purchase option on their existing rental purchase agreements or purchase pre-leased merchandise off the showroom floor during the first quarter of each fiscal year . furthermore , we tend to experience slower growth in the number of rental purchase agreements in the third quarter of each fiscal year when compared to other quarters throughout the year . we expect these trends to continue in the future . 29 critical accounting estimates , uncertainties or assessments in our financial statements the preparation of our consolidated financial statements in conformity with accounting principles generally accepted in the united states of america requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities , disclosure of contingent losses and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period . in applying accounting principles , we must often make individual estimates and assumptions regarding expected outcomes or uncertainties . 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 . we believe the following are areas where the degree of judgment and complexity in determining amounts recorded in our consolidated financial statements make the accounting policies critical . if we make changes to our reserves in accordance with the policies described below , our earnings would be impacted . increases to our reserves would reduce earnings and , similarly , reductions to our reserves would increase our earnings . a pre-tax change of approximately $ 0.7 million in our estimates would result in a corresponding $ 0.01 change in our diluted earnings per common share . self-insurance liabilities . we have self-insured retentions with respect to losses under our workers ' compensation , general liability , vehicle liability and health insurance programs . we establish reserves for our liabilities associated with these losses by obtaining forecasts for the ultimate expected losses and estimating amounts needed to pay losses within our self-insured retentions . we continually institute procedures to manage our loss exposure and increases in health care costs associated with our insurance claims through our risk management function , including a transitional duty program for injured workers , ongoing safety and accident prevention training , and various other programs designed to minimize losses and improve our loss experience in our store locations . we make assumptions on our liabilities within our self-insured retentions using actuarial loss forecasts , company-specific development factors , general industry loss development factors , and third-party claim administrator loss estimates which are based on known facts surrounding individual claims . these assumptions incorporate expected increases in health care costs . periodically , we reevaluate our estimate of liability within our self-insured retentions . at that time , we evaluate the adequacy of our reserves by comparing amounts reserved on our balance sheet for anticipated losses to our updated actuarial loss forecasts and third-party claim administrator loss estimates , and make adjustments to our reserves as needed . as of december 31 , 2018 , the amount reserved for losses within our self-insured retentions with respect to workers ' compensation , general liability and vehicle liability insurance was $ 101.6 million , as compared to $ 118.0 million at december 31 , 2017 . however , if any of the factors that contribute to the overall cost of insurance claims were to change , the actual amount incurred for our self-insurance liabilities could be more or less than the amounts currently reserved . income taxes . our annual tax rate is affected by many factors , including the mix of our earnings , legislation and acquisitions , and is based on our income , statutory tax rates and tax planning opportunities available to us in the jurisdictions in which we operate . tax laws are complex and subject to differing interpretations between the taxpayer and the taxing authorities . significant judgment is required in determining our tax expense , evaluating our tax positions and evaluating uncertainties . deferred income tax assets represent amounts available to reduce income taxes payable in future years . such assets arise because of temporary differences between the financial reporting and tax bases of assets and liabilities , as well as from net operating loss and tax credit carryforwards . we evaluate the recoverability of these future tax deductions and credits by assessing the future expected taxable income from all sources , including reversal of taxable temporary differences , forecasted operating earnings and available tax planning strategies . these sources of income rely heavily on estimates . we use our historical experience and our short- and long-range business

examples of forward-looking statements include any expectations , projections , or other characterizations of future events , or circumstances , and include statements regarding : the impact of covid-19 on our business , including as to revenue , and potential cost reduction measures , and the impact of covid-19 on our customers , suppliers , and on the economy in general ; our strategy and our ability to execute our business plan ; our competition and the market in which we operate ; our customers and suppliers ; our revenue and the recognition and components thereof ; our costs and expenses ; including capital expenditures ; seasonality and demand ; our investment in research and technology development ; changes to general and administrative expenses ; our foreign operations and the reinvestment of our earnings related thereto ; our investment in and protection of our ip ; our employees ; capital expenditures and the sufficiency of our capital resources ; unrecognized tax benefit and tax liabilities ; the impact of changes in interest rates and foreign exchange rates , as well as our plans with respect to foreign currency hedging in general ; changes in laws and regulations ; including with respect to taxes ; our plans related to and the impact of current and future litigation ; our sublease and the timing and income related thereto ; and our stock repurchase program . because forward-looking statements relate to the future , they are subject to inherent uncertainties , risks and changes in circumstances that are difficult to predict and many of which are outside of our control . actual results could differ materially from those projected in the forward-looking statements , therefore we caution you not to place undue reliance on these forward-looking statements . important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include , among others , the following : the effects of the covid-19 global pandemic on us and our business , and on the business of our suppliers and customers ; unanticipated changes in the markets in which we operate ; the effects of the current macroeconomic climate ( especially in light of the ongoing adverse effects of the covid-19 global pandemic ) ; delay in or failure to achieve adoption of or commercial demand for our products or third party products incorporating our technologies ; the inability of immersion to renew existing licensing arrangements , or enter into new licensing arrangements for our patents and other technologies on favorable terms ; the loss of a major customer ; the ability of immersion to protect and enforce our intellectual property rights ; unanticipated difficulties and challenges in developing or acquiring successful innovations and our ability to patent those innovations ; changes in patent law ; confusion as to our licensing model or agreement terms ; the ability of immersion to return to consistent profitability in the future ; the inability of immersion to retain or recruit necessary personnel ; the commencement , by others or by us , of legal or administrative action ; risks related to our international operations and other factors . any forward-looking statements made by us in this report speak only as of the date of this report , and we do not intend to update these forward-looking statements after the filing of this report , unless required to do so by applicable law . you are urged to review carefully and consider our various disclosures in this report and in our other reports publicly disclosed or filed with the sec that attempt to advise you of the risks and factors that may affect our business . critical accounting policies and estimates our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements , which have been prepared in accordance with u.s. gaap . the preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets , liabilities , revenues , expenses , and related disclosure of contingent assets and liabilities . on an ongoing basis , we evaluate our estimates and assumptions , including those related to revenue recognition , stock-based compensation , short-term investments , leases , income taxes and contingencies . we base our estimates and assumptions on historical experience and on various other factors that we believe 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 and assumptions . we believe the following are our most critical accounting policies as they require our significant judgments and estimates in the preparation of our consolidated financial statements : 31 revenue recognition our revenue is primarily derived from fixed fee license agreements and per-unit royalty agreements , along with less significant revenue earned from development , services and other revenue . fixed fee license revenue in certain contracts , we grant a fixed fee license to our existing patent portfolio at the inception of the license agreement as well as rights to the portfolio as it evolves throughout the contract term . for such arrangements , we have two separate performance obligations : performance obligation a - transfer rights to our patent portfolio as it exists when the contract is executed ; performance obligation b - transfer rights to our patent portfolio as it evolves over the term of the contract , including access to new patent applications that the licensee can benefit from over the term of the contract . story_separator_special_tag the decrease in consulting and professional services fees was due to decreases in recruitment fees , accounting and audit fees and consulting and other professional fees in 2020 compared to 2019. we expect our general and administrative expenses to decrease in the future as we achieve targeted reductions in consulting and professional services , and other costs . 36 interest and other income , other expense a summary of interest and other income , other expense for the years ended december 31 , 2020 and 2019 are as follows ( in thousands ) : replace_table_token_3_th interest and other income - interest and other income consists primarily of interest income from cash and cash equivalents and short-term investments . interest and other income decreased $ 1.5 million during 2020 compared to 2019. this decrease was primarily driven by a $ 1.5 million decrease in investment income from cash equivalents and short-term investments due to lower cash equivalents and short-term investments and a decrease in interest rates in 2020 compared to 2019. other income ( expense ) , net - other income ( expense ) , net consists primarily of foreign currency translation gain ( loss ) due to exchange rate fluctuations . other income ( expense ) , net increased $ 0.6 million in 2020 compared to 2019 primarily due to a $ 0.4 million increase in net foreign currency translation gains . benefit from ( provision for ) income taxes a summary of benefit from ( provision for ) income taxes and effective tax rates for the years ended december 31 , 2020 and 2019 are as follows ( in thousands ) : replace_table_token_4_th in 2020 , we recorded a $ 2.2 million benefit from income taxes yielding an effective tax rate of ( 71.0 ) % . the 2020 income tax benefit reflects a one-time deferred tax benefit from the release of valuation allowance against the deferred tax assets of one of our foreign subsidiaries partially offset by estimated foreign income and foreign withholding taxes . based upon our assessment of the realizability of our deferred tax assets in the united states as of december 31 , 2020 , we continue to maintain a full valuation allowance against all of our federal and state deferred tax assets . as of december 31 , 2020 , we had deferred tax assets totaling $ 31.1 million and a valuation allowance of $ 28.5 million , resulting in a net deferred tax asset of $ 2.6 million . on march 27 , 2020 , the coronavirus aid , relief , and economic security act ( “ cares act ” ) was passed into law . the cares act includes several significant business tax provisions including modification to the taxable income limitation for utilization of net operating losses ( “ nols ” ) incurred in 2019 and 2020 and the ability to carry back nols from those years for a period of up to five years , an increase to the limitation on deductibility of certain business interest expense , bonus depreciation for purchases of qualified improvement property and special deductions on certain corporate charitable contributions . we analyzed the provisions of the cares act and determined there was no net effect on our provision for the year ended december 31 , 2020. on december 22 , 2017 , the tax act was passed into law . among other changes , the tax act reduced the us federal corporate income tax rate from 35 % to 21 % , required companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and created new taxes on certain foreign sourced earnings . in addition , the act introduced the base erosion and anti-abuse tax ( the “ beat ” ) , which creates a new tax on certain related-party payments . we concluded that we have not met the threshold requirements of the beat . on july 9 , 2020 , the internal revenue service issued final regulations regarding deductions for global intangible low-taxed income ( “ gilti ” ) and foreign-derived intangible income ( “ fdii ” ) . on july 9 , 2020 , the treasury department released final regulations ( `` td 9901 `` ) under irc section 250 , which allows an annual deduction to a domestic corporation for its foreign-derived intangible income ( `` fdii `` ) and global intangible low-taxed income ( `` gilti `` ) inclusion . the final guidance is not expected to have a material impact on our condensed consolidated financial statements . although the measurement period has closed , further technical guidance related to the tax 37 act , including final regulations on a broad range of topics , is expected to be issued . in accordance with asc 740 , we will recognize any effects of the guidance in the period that such guidance is issued . in 2019 , we recorded a provision for income taxes of $ 0.5 million yielding an effective tax rate of ( 2.4 ) % . the 2019 provision reflects estimated foreign taxes and foreign withholding tax expense . based upon our assessment of the realizability of our deferred tax assets as of december 31 , 2019 , we reported a full valuation allowance against all of our federal and state , and certain of our foreign net deferred tax assets . as of december 31 , 2019 , the aggregated balance of our deferred tax assets totaled $ 28.5 million with a valuation allowance of $ 28.1 million , resulting in a net deferred tax asset balance of $ 0.5 million . as described above , we continue to maintain a valuation allowance of $ 28.5 million against certain of our deferred tax assets , including all federal , state , and certain foreign deferred tax assets as a result of uncertainties regarding the realization of the asset balance due to historical losses , the variability of operating results

liquidity and capital resources our cash equivalents , and short-term investments consist primarily of money market funds and u.s. treasury bills . all of our short-term investments are classified as available-for-sale . the securities are stated at market value , with unrealized gains and losses reported as a component of accumulated other comprehensive income , within stockholders ' equity . as of december 31 , 2020 , our cash , cash equivalents , and short-term investments totaled $ 59.5 million , a decrease of $ 30.0 million from $ 89.5 million on december 31 , 2019. a summary of select cash flow information for the years ended december 31 , 2020 and 2019 ( in thousands ) : replace_table_token_5_th cash provided by ( used in ) operating activities - our operating activities primarily consists of net income ( loss ) , adjusted for certain non-cash items including depreciation and amortization ; stock-based compensation expense , deferred income taxes and the effect of changes in operating assets and liabilities . net cash provided by operating activities was $ 22,000 during 2020 compared to $ 34.1 million cash used in operating activities during 2019. the decrease in net cash used in operating activities was primarily attributable to a $ 25.4 million decrease in net loss and a $ 11.8 million change in net operating assets and liabilities partially offset by $ 4.0 million decrease in noncash items . cash provided by investing activities - our investing activities primarily consist of purchases of and proceeds from maturities of short-term investments and purchases of computer equipment , furniture and leasehold improvements related to facilities expansion .

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 cash equivalents , and short-term investments consist primarily of money market funds and u.s. treasury bills . all of our short-term investments are classified as available-for-sale . the securities are stated at market value , with unrealized gains and losses reported as a component of accumulated other comprehensive income , within stockholders ' equity . as of december 31 , 2020 , our cash , cash equivalents , and short-term investments totaled $ 59.5 million , a decrease of $ 30.0 million from $ 89.5 million on december 31 , 2019. a summary of select cash flow information for the years ended december 31 , 2020 and 2019 ( in thousands ) : replace_table_token_5_th cash provided by ( used in ) operating activities - our operating activities primarily consists of net income ( loss ) , adjusted for certain non-cash items including depreciation and amortization ; stock-based compensation expense , deferred income taxes and the effect of changes in operating assets and liabilities . net cash provided by operating activities was $ 22,000 during 2020 compared to $ 34.1 million cash used in operating activities during 2019. the decrease in net cash used in operating activities was primarily attributable to a $ 25.4 million decrease in net loss and a $ 11.8 million change in net operating assets and liabilities partially offset by $ 4.0 million decrease in noncash items . cash provided by investing activities - our investing activities primarily consist of purchases of and proceeds from maturities of short-term investments and purchases of computer equipment , furniture and leasehold improvements related to facilities expansion . ``` Suspicious Activity Report : examples of forward-looking statements include any expectations , projections , or other characterizations of future events , or circumstances , and include statements regarding : the impact of covid-19 on our business , including as to revenue , and potential cost reduction measures , and the impact of covid-19 on our customers , suppliers , and on the economy in general ; our strategy and our ability to execute our business plan ; our competition and the market in which we operate ; our customers and suppliers ; our revenue and the recognition and components thereof ; our costs and expenses ; including capital expenditures ; seasonality and demand ; our investment in research and technology development ; changes to general and administrative expenses ; our foreign operations and the reinvestment of our earnings related thereto ; our investment in and protection of our ip ; our employees ; capital expenditures and the sufficiency of our capital resources ; unrecognized tax benefit and tax liabilities ; the impact of changes in interest rates and foreign exchange rates , as well as our plans with respect to foreign currency hedging in general ; changes in laws and regulations ; including with respect to taxes ; our plans related to and the impact of current and future litigation ; our sublease and the timing and income related thereto ; and our stock repurchase program . because forward-looking statements relate to the future , they are subject to inherent uncertainties , risks and changes in circumstances that are difficult to predict and many of which are outside of our control . actual results could differ materially from those projected in the forward-looking statements , therefore we caution you not to place undue reliance on these forward-looking statements . important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include , among others , the following : the effects of the covid-19 global pandemic on us and our business , and on the business of our suppliers and customers ; unanticipated changes in the markets in which we operate ; the effects of the current macroeconomic climate ( especially in light of the ongoing adverse effects of the covid-19 global pandemic ) ; delay in or failure to achieve adoption of or commercial demand for our products or third party products incorporating our technologies ; the inability of immersion to renew existing licensing arrangements , or enter into new licensing arrangements for our patents and other technologies on favorable terms ; the loss of a major customer ; the ability of immersion to protect and enforce our intellectual property rights ; unanticipated difficulties and challenges in developing or acquiring successful innovations and our ability to patent those innovations ; changes in patent law ; confusion as to our licensing model or agreement terms ; the ability of immersion to return to consistent profitability in the future ; the inability of immersion to retain or recruit necessary personnel ; the commencement , by others or by us , of legal or administrative action ; risks related to our international operations and other factors . any forward-looking statements made by us in this report speak only as of the date of this report , and we do not intend to update these forward-looking statements after the filing of this report , unless required to do so by applicable law . you are urged to review carefully and consider our various disclosures in this report and in our other reports publicly disclosed or filed with the sec that attempt to advise you of the risks and factors that may affect our business . critical accounting policies and estimates our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements , which have been prepared in accordance with u.s. gaap . the preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets , liabilities , revenues , expenses , and related disclosure of contingent assets and liabilities . on an ongoing basis , we evaluate our estimates and assumptions , including those related to revenue recognition , stock-based compensation , short-term investments , leases , income taxes and contingencies . we base our estimates and assumptions on historical experience and on various other factors that we believe 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 and assumptions . we believe the following are our most critical accounting policies as they require our significant judgments and estimates in the preparation of our consolidated financial statements : 31 revenue recognition our revenue is primarily derived from fixed fee license agreements and per-unit royalty agreements , along with less significant revenue earned from development , services and other revenue . fixed fee license revenue in certain contracts , we grant a fixed fee license to our existing patent portfolio at the inception of the license agreement as well as rights to the portfolio as it evolves throughout the contract term . for such arrangements , we have two separate performance obligations : performance obligation a - transfer rights to our patent portfolio as it exists when the contract is executed ; performance obligation b - transfer rights to our patent portfolio as it evolves over the term of the contract , including access to new patent applications that the licensee can benefit from over the term of the contract . story_separator_special_tag the decrease in consulting and professional services fees was due to decreases in recruitment fees , accounting and audit fees and consulting and other professional fees in 2020 compared to 2019. we expect our general and administrative expenses to decrease in the future as we achieve targeted reductions in consulting and professional services , and other costs . 36 interest and other income , other expense a summary of interest and other income , other expense for the years ended december 31 , 2020 and 2019 are as follows ( in thousands ) : replace_table_token_3_th interest and other income - interest and other income consists primarily of interest income from cash and cash equivalents and short-term investments . interest and other income decreased $ 1.5 million during 2020 compared to 2019. this decrease was primarily driven by a $ 1.5 million decrease in investment income from cash equivalents and short-term investments due to lower cash equivalents and short-term investments and a decrease in interest rates in 2020 compared to 2019. other income ( expense ) , net - other income ( expense ) , net consists primarily of foreign currency translation gain ( loss ) due to exchange rate fluctuations . other income ( expense ) , net increased $ 0.6 million in 2020 compared to 2019 primarily due to a $ 0.4 million increase in net foreign currency translation gains . benefit from ( provision for ) income taxes a summary of benefit from ( provision for ) income taxes and effective tax rates for the years ended december 31 , 2020 and 2019 are as follows ( in thousands ) : replace_table_token_4_th in 2020 , we recorded a $ 2.2 million benefit from income taxes yielding an effective tax rate of ( 71.0 ) % . the 2020 income tax benefit reflects a one-time deferred tax benefit from the release of valuation allowance against the deferred tax assets of one of our foreign subsidiaries partially offset by estimated foreign income and foreign withholding taxes . based upon our assessment of the realizability of our deferred tax assets in the united states as of december 31 , 2020 , we continue to maintain a full valuation allowance against all of our federal and state deferred tax assets . as of december 31 , 2020 , we had deferred tax assets totaling $ 31.1 million and a valuation allowance of $ 28.5 million , resulting in a net deferred tax asset of $ 2.6 million . on march 27 , 2020 , the coronavirus aid , relief , and economic security act ( “ cares act ” ) was passed into law . the cares act includes several significant business tax provisions including modification to the taxable income limitation for utilization of net operating losses ( “ nols ” ) incurred in 2019 and 2020 and the ability to carry back nols from those years for a period of up to five years , an increase to the limitation on deductibility of certain business interest expense , bonus depreciation for purchases of qualified improvement property and special deductions on certain corporate charitable contributions . we analyzed the provisions of the cares act and determined there was no net effect on our provision for the year ended december 31 , 2020. on december 22 , 2017 , the tax act was passed into law . among other changes , the tax act reduced the us federal corporate income tax rate from 35 % to 21 % , required companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and created new taxes on certain foreign sourced earnings . in addition , the act introduced the base erosion and anti-abuse tax ( the “ beat ” ) , which creates a new tax on certain related-party payments . we concluded that we have not met the threshold requirements of the beat . on july 9 , 2020 , the internal revenue service issued final regulations regarding deductions for global intangible low-taxed income ( “ gilti ” ) and foreign-derived intangible income ( “ fdii ” ) . on july 9 , 2020 , the treasury department released final regulations ( `` td 9901 `` ) under irc section 250 , which allows an annual deduction to a domestic corporation for its foreign-derived intangible income ( `` fdii `` ) and global intangible low-taxed income ( `` gilti `` ) inclusion . the final guidance is not expected to have a material impact on our condensed consolidated financial statements . although the measurement period has closed , further technical guidance related to the tax 37 act , including final regulations on a broad range of topics , is expected to be issued . in accordance with asc 740 , we will recognize any effects of the guidance in the period that such guidance is issued . in 2019 , we recorded a provision for income taxes of $ 0.5 million yielding an effective tax rate of ( 2.4 ) % . the 2019 provision reflects estimated foreign taxes and foreign withholding tax expense . based upon our assessment of the realizability of our deferred tax assets as of december 31 , 2019 , we reported a full valuation allowance against all of our federal and state , and certain of our foreign net deferred tax assets . as of december 31 , 2019 , the aggregated balance of our deferred tax assets totaled $ 28.5 million with a valuation allowance of $ 28.1 million , resulting in a net deferred tax asset balance of $ 0.5 million . as described above , we continue to maintain a valuation allowance of $ 28.5 million against certain of our deferred tax assets , including all federal , state , and certain foreign deferred tax assets as a result of uncertainties regarding the realization of the asset balance due to historical losses , the variability of operating results

our pre-clinical assets include our vsel tm ( very small embryonic like ) technology platform for which we expect to file an ind with the fda in late 2013 or early 2014 to initiate an national institutes of health ( `` nih `` ) funded human clinical studies treating periodontitis with vsels tm . we are also working on a department of defense funded study of vsels tm and mesenchymal stem cells for the treatment of chronic wounds . neostem 's origins are in adult stem cell collection and storage and we believe that as new therapeutics are developed utilizing one 's own stored cells ( autologous ) , the market penetration rate for the collection and storage business may rise sharply from its current low single digits percentage level allowing our developing a network to scale rapidly if the demand grows . 42 index in 2011 , we operated our business in three reportable segments : ( i ) cell therapy — united states ; ( ii ) regenerative medicine — china ; and ( iii ) pharmaceutical manufacturing — china . in 2012 , we exited our operations in china . effective march 31 , 2012 , we no longer operated in the regenerative medicine – china reportable segment , which is now reported in discontinued operations ( see note 16 ) . on november 13 , 2012 , we completed the sale of our 51 % interest in suzhou erye , which represented the operations in our pharmaceutical manufacturing - china segment , and is also reported in discontinued operations ( see note 16 ) . as a result , we currently operate in a single reporting segment - cell therapy , which will focus on cdmo and cell therapy development programs . we believe that neostem is ideally positioned to be an integrated leader in the cell therapy industry . we have significant basic research and development capabilities , manufacturing facilities on both the east and west coast of the united states , the support of regulatory and logistical expertise and a talented and experienced clinical team . we believe this expertise will allow us to achieve our mission of becoming the premier cell therapy company . results of operations year ended december 31 , 2012 compared to year ended december 31 , 2011 net loss for the year ended december 31 , 2012 was approximately $ 66.4 million compared to $ 56.6 million for the year ended december 31 , 2011 . our net losses from continuing operations for the years ended december 31 , 2012 and 2011 were approximately $ 36.1 million and $ 34.6 million , respectively . the net losses from discontinued operations - net for the years ended ended december 31 , 2012 and 2011 were approximately $ 30.3 million and $ 22.0 million , respectively . the losses from discontinued operations - net , reflects the operations of our regenerative medicine – china segment which was deconsolidated in the first quarter of 2012 , and the operations of our pharmaceutical manufacturing - china segment , which related to the sale of our 51 % interest in suzhou erye in the fourth quarter of 2012. revenues for the year ended december 31 , 2012 , total revenues were approximately $ 14.3 million compared to $ 10.1 million for the year ended december 31 , 2011 , representing an increase of $ 4.3 million , or 43 % . revenues were comprised of the following ( in thousands ) : replace_table_token_4_th clinical services , representing process development and clinical manufacturing services provided at pct to its various clients , were approximately $ 8.0 million for the year ended december 31 , 2012 compared to $ 5.5 million for the year ended december 31 , 2011 , representing an increase of approximately $ 2.5 million or 46 % . the increase in clinical services revenue is primarily due to an increased penetration into the cell therapy marketplace along with a general increase in the development of autologous cell therapies in the united states due to enhanced investment and expanded marketing programs in 2011 and 2012. the revenue increase was partially offset by a $ 0.3 million increase in deferred revenue as of december 31 , 2012 compared to december 31 , 2011 , related to ongoing clinical service contracts that had not met revenue recognition completion criteria . in accordance with our revenue recognition policy , revenue is recognized upon contract completion for certain clinical service contracts . clinical services reimbursables , representing reimbursement of expenses for certain consumables incurred on behalf of our clinical service revenue clients , were approximately $ 3.5 million for the year ended december 31 , 2012 compared to $ 2.6 million for the year ended december 31 , 2011 , representing an increase of approximately $ 0.9 million or 33 % . our reimbursable revenue increased as a result of increased manufacturing and process development activity . 43 index processing and storage services , representing revenues from our oncology , cord blood , and adult stem cell banking activities , were approximately $ 2.6 million for the year ended december 31 , 2012 compared to $ 1.7 million for the year ended december 31 , 2011 , representing an increase of approximately $ 0.9 million or 52 % . the increase is primarily attributable to increased revenue from our oncology stem cell processing service . additionally , we added hospital clients during 2012 as more hospitals have begun to outsource their oncology stem cell processing . other revenue were approximately $ 0.2 million for the year ended december 31 , 2012 compared to $ 0.2 million for the year ended december 31 , 2011 . other revenues primarily represent license fees related to our adult stem cell technology . story_separator_special_tag additional equity financing may be dilutive to our stockholders ; debt financing , if available , may involve significant cash payment obligations and covenants that restrict our ability to operate as a business , our stock price may not reach levels necessary to induce option or warrant exercises , and asset sales may not be possible on terms we consider acceptable . if we are unable to raise the funds necessary to meet our long-term liquidity needs , we may have to delay or discontinue the acquisition and development of cell therapies , and or the expansion of our business or raise funds on terms that we currently consider unfavorable . commitments and contingencies the following table summarizes our obligations to make future payments under current contracts as of december 31 , 2012 ( in thousands ) : replace_table_token_10_th under an agreement with an external clinical research organization ( “ cro ” ) , we will incur expenses relating to our amr-001 phase 2 clinical trial for the treatment of ami . the timing and amount of these disbursements are based on the achievement of certain milestones , patient enrollment , services rendered or as expenses are incurred by the cro and therefore , we can not reasonably estimate the timing of these payments . seasonality neostem does not believe that its operations are seasonal in nature . off-balance sheet arrangements neostem does not have any off-balance sheet arrangements . critical accounting policies and estimates the preparation of financial statements in conformity with accounting principles generally accepted in the united states requires management to make estimates and judgments that affect the amounts reported in the financial statements . on an ongoing basis , the company evaluates its estimates and assumptions . the company bases its estimates on historical experience and other assumptions believed to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . actual results could differ from these estimates . an accounting policy is considered to be critical if it is important to the company 's financial condition and results of operations and if it requires management 's most difficult , subjective and complex judgments in its application . for a summary of all of the company 's significant accounting policies , see note 2 to the company 's consolidated financial statements . revenue recognition clinical services : the company recognizes revenue for its ( i ) cell process development and ( ii ) cell manufacturing services based on the terms of individual contracts . revenues associated with cell process development services generally contain multiple stages that do not have stand-alone values and are dependent upon one another , and are recognized as revenue on a completed contract basis . we recognize revenues for cell development services when all of the following conditions are met : persuasive evidence of an arrangement exists ; delivery has occurred or the services have been rendered ; 50 index the fee is fixed or determinable ; and collectability is probable . the company considers signed contracts as evidence of an arrangement . the company assesses whether the fee is fixed or determinable based on the payment terms associated with the transaction and whether the payment terms are subject to refund or adjustment . the company assesses cash collectability based on a number of factors , including past collection history with the client and the client 's creditworthiness . if the company determines that collectability is not reasonably assured , it defers revenue recognition until collectability becomes reasonably assured , which is generally upon receipt of the cash . the company 's arrangements are generally non-cancellable , though clients typically have the right to terminate their agreement for cause if the company materially fails to perform . cell manufacturing services are generally distinct arrangements whereby the company is paid for time and materials or for fixed monthly amounts . revenue is recognized when efforts are expended or contractual terms have been met . some client agreements include multiple elements , comprised of cell process development and cell manufacturing services . the company believes that cell process development and cell manufacturing services each have stand-alone value because these services can be provided separately by other companies . in accordance with asc update no . 2009-13 , “ revenue recognition ( topic 605 ) : multiple-deliverable revenue arrangements , ” the company ( 1 ) separates deliverables into separate units of accounting when deliverables are sold in a bundled arrangement and ( 2 ) allocates the arrangement 's consideration to each unit in the arrangement based on its relative selling price . clinical services reimbursements : the company separately charges the customers for the expenses associated with certain consumable resources ( reimbursable expenses ) that are specified in each clinical services contract . on a monthly basis , the company bills customers for reimbursable expenses and immediately recognizes these billings as revenue , as the revenue is deemed earned as reimbursable expenses are incurred . processing and storage services : the company recognizes revenue related to the collection and cryopreservation of cord blood and autologous adult stem cells when the cryopreservation process is completed which is approximately twenty-four hours after cells have been collected . revenue related to advance payments of storage fees is recognized ratably over the period covered by the advance payments . share-based compensation the company expenses all share-based payment awards to employees , directors , advisors and consultants , including grants of stock options , warrants , and restricted stock , over the requisite service period based on the grant date fair value of the awards . advisor and consultant awards are remeasured each reporting period through vesting . for awards with performance-based vesting criteria , the company estimates the probability of achievement of the performance criteria and recognizes compensation expense related to those awards expected to vest

analysis of liquidity and capital resources at december 31 , 2012 we had a cash balance of approximately $ 13.7 million , working capital of approximately $ 6.8 million , and shareholders ' equity of approximately $ 33.2 million . during the year ended december 31 , 2012 , we met our immediate cash requirements through revenue generated from our pct operations , existing cash balances , private placements and a public offering of our common stock and warrants ( which raised an aggregate of approximately $ 16.4 million ) , warrant exercises ( which raised approximately $ 6.6 million ) , the sale of our 51 % interest in erye for consideration which included $ 12.3 million in cash , and the use of equity and equity-linked instruments to pay for services and compensation . net cash provided by or used in operating , financing and investing activities from continuing operations were as follows ( in thousands ) : replace_table_token_9_th operating activities - continuing operations our cash used in operating activities -continuing operations in the year ended december 31 , 2012 totaled approximately $ 18.8 million , which is the sum of ( i ) our net loss of $ 66.4 million , less discontinued operations of $ 30.3 million , and adjusted for non-cash expenses totaling $ 14.3 million ( which includes adjustments for equity-based compensation and depreciation and amortization ) , and ( ii ) changes in operating assets and liabilities providing approximately $ 3.1 million . investing activities - continuing operations in november 2012 , we completed the sale of our 51 % interest in erye for approximately $ 13.4 million in total consideration , including $ 12.3 million in cash . during the year ended december 31 , 2012 , we spent approximately $ 0.5 million for property and equipment .

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. ```analysis of liquidity and capital resources at december 31 , 2012 we had a cash balance of approximately $ 13.7 million , working capital of approximately $ 6.8 million , and shareholders ' equity of approximately $ 33.2 million . during the year ended december 31 , 2012 , we met our immediate cash requirements through revenue generated from our pct operations , existing cash balances , private placements and a public offering of our common stock and warrants ( which raised an aggregate of approximately $ 16.4 million ) , warrant exercises ( which raised approximately $ 6.6 million ) , the sale of our 51 % interest in erye for consideration which included $ 12.3 million in cash , and the use of equity and equity-linked instruments to pay for services and compensation . net cash provided by or used in operating , financing and investing activities from continuing operations were as follows ( in thousands ) : replace_table_token_9_th operating activities - continuing operations our cash used in operating activities -continuing operations in the year ended december 31 , 2012 totaled approximately $ 18.8 million , which is the sum of ( i ) our net loss of $ 66.4 million , less discontinued operations of $ 30.3 million , and adjusted for non-cash expenses totaling $ 14.3 million ( which includes adjustments for equity-based compensation and depreciation and amortization ) , and ( ii ) changes in operating assets and liabilities providing approximately $ 3.1 million . investing activities - continuing operations in november 2012 , we completed the sale of our 51 % interest in erye for approximately $ 13.4 million in total consideration , including $ 12.3 million in cash . during the year ended december 31 , 2012 , we spent approximately $ 0.5 million for property and equipment . ``` Suspicious Activity Report : our pre-clinical assets include our vsel tm ( very small embryonic like ) technology platform for which we expect to file an ind with the fda in late 2013 or early 2014 to initiate an national institutes of health ( `` nih `` ) funded human clinical studies treating periodontitis with vsels tm . we are also working on a department of defense funded study of vsels tm and mesenchymal stem cells for the treatment of chronic wounds . neostem 's origins are in adult stem cell collection and storage and we believe that as new therapeutics are developed utilizing one 's own stored cells ( autologous ) , the market penetration rate for the collection and storage business may rise sharply from its current low single digits percentage level allowing our developing a network to scale rapidly if the demand grows . 42 index in 2011 , we operated our business in three reportable segments : ( i ) cell therapy — united states ; ( ii ) regenerative medicine — china ; and ( iii ) pharmaceutical manufacturing — china . in 2012 , we exited our operations in china . effective march 31 , 2012 , we no longer operated in the regenerative medicine – china reportable segment , which is now reported in discontinued operations ( see note 16 ) . on november 13 , 2012 , we completed the sale of our 51 % interest in suzhou erye , which represented the operations in our pharmaceutical manufacturing - china segment , and is also reported in discontinued operations ( see note 16 ) . as a result , we currently operate in a single reporting segment - cell therapy , which will focus on cdmo and cell therapy development programs . we believe that neostem is ideally positioned to be an integrated leader in the cell therapy industry . we have significant basic research and development capabilities , manufacturing facilities on both the east and west coast of the united states , the support of regulatory and logistical expertise and a talented and experienced clinical team . we believe this expertise will allow us to achieve our mission of becoming the premier cell therapy company . results of operations year ended december 31 , 2012 compared to year ended december 31 , 2011 net loss for the year ended december 31 , 2012 was approximately $ 66.4 million compared to $ 56.6 million for the year ended december 31 , 2011 . our net losses from continuing operations for the years ended december 31 , 2012 and 2011 were approximately $ 36.1 million and $ 34.6 million , respectively . the net losses from discontinued operations - net for the years ended ended december 31 , 2012 and 2011 were approximately $ 30.3 million and $ 22.0 million , respectively . the losses from discontinued operations - net , reflects the operations of our regenerative medicine – china segment which was deconsolidated in the first quarter of 2012 , and the operations of our pharmaceutical manufacturing - china segment , which related to the sale of our 51 % interest in suzhou erye in the fourth quarter of 2012. revenues for the year ended december 31 , 2012 , total revenues were approximately $ 14.3 million compared to $ 10.1 million for the year ended december 31 , 2011 , representing an increase of $ 4.3 million , or 43 % . revenues were comprised of the following ( in thousands ) : replace_table_token_4_th clinical services , representing process development and clinical manufacturing services provided at pct to its various clients , were approximately $ 8.0 million for the year ended december 31 , 2012 compared to $ 5.5 million for the year ended december 31 , 2011 , representing an increase of approximately $ 2.5 million or 46 % . the increase in clinical services revenue is primarily due to an increased penetration into the cell therapy marketplace along with a general increase in the development of autologous cell therapies in the united states due to enhanced investment and expanded marketing programs in 2011 and 2012. the revenue increase was partially offset by a $ 0.3 million increase in deferred revenue as of december 31 , 2012 compared to december 31 , 2011 , related to ongoing clinical service contracts that had not met revenue recognition completion criteria . in accordance with our revenue recognition policy , revenue is recognized upon contract completion for certain clinical service contracts . clinical services reimbursables , representing reimbursement of expenses for certain consumables incurred on behalf of our clinical service revenue clients , were approximately $ 3.5 million for the year ended december 31 , 2012 compared to $ 2.6 million for the year ended december 31 , 2011 , representing an increase of approximately $ 0.9 million or 33 % . our reimbursable revenue increased as a result of increased manufacturing and process development activity . 43 index processing and storage services , representing revenues from our oncology , cord blood , and adult stem cell banking activities , were approximately $ 2.6 million for the year ended december 31 , 2012 compared to $ 1.7 million for the year ended december 31 , 2011 , representing an increase of approximately $ 0.9 million or 52 % . the increase is primarily attributable to increased revenue from our oncology stem cell processing service . additionally , we added hospital clients during 2012 as more hospitals have begun to outsource their oncology stem cell processing . other revenue were approximately $ 0.2 million for the year ended december 31 , 2012 compared to $ 0.2 million for the year ended december 31 , 2011 . other revenues primarily represent license fees related to our adult stem cell technology . story_separator_special_tag additional equity financing may be dilutive to our stockholders ; debt financing , if available , may involve significant cash payment obligations and covenants that restrict our ability to operate as a business , our stock price may not reach levels necessary to induce option or warrant exercises , and asset sales may not be possible on terms we consider acceptable . if we are unable to raise the funds necessary to meet our long-term liquidity needs , we may have to delay or discontinue the acquisition and development of cell therapies , and or the expansion of our business or raise funds on terms that we currently consider unfavorable . commitments and contingencies the following table summarizes our obligations to make future payments under current contracts as of december 31 , 2012 ( in thousands ) : replace_table_token_10_th under an agreement with an external clinical research organization ( “ cro ” ) , we will incur expenses relating to our amr-001 phase 2 clinical trial for the treatment of ami . the timing and amount of these disbursements are based on the achievement of certain milestones , patient enrollment , services rendered or as expenses are incurred by the cro and therefore , we can not reasonably estimate the timing of these payments . seasonality neostem does not believe that its operations are seasonal in nature . off-balance sheet arrangements neostem does not have any off-balance sheet arrangements . critical accounting policies and estimates the preparation of financial statements in conformity with accounting principles generally accepted in the united states requires management to make estimates and judgments that affect the amounts reported in the financial statements . on an ongoing basis , the company evaluates its estimates and assumptions . the company bases its estimates on historical experience and other assumptions believed to be reasonable under the circumstances , the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources . actual results could differ from these estimates . an accounting policy is considered to be critical if it is important to the company 's financial condition and results of operations and if it requires management 's most difficult , subjective and complex judgments in its application . for a summary of all of the company 's significant accounting policies , see note 2 to the company 's consolidated financial statements . revenue recognition clinical services : the company recognizes revenue for its ( i ) cell process development and ( ii ) cell manufacturing services based on the terms of individual contracts . revenues associated with cell process development services generally contain multiple stages that do not have stand-alone values and are dependent upon one another , and are recognized as revenue on a completed contract basis . we recognize revenues for cell development services when all of the following conditions are met : persuasive evidence of an arrangement exists ; delivery has occurred or the services have been rendered ; 50 index the fee is fixed or determinable ; and collectability is probable . the company considers signed contracts as evidence of an arrangement . the company assesses whether the fee is fixed or determinable based on the payment terms associated with the transaction and whether the payment terms are subject to refund or adjustment . the company assesses cash collectability based on a number of factors , including past collection history with the client and the client 's creditworthiness . if the company determines that collectability is not reasonably assured , it defers revenue recognition until collectability becomes reasonably assured , which is generally upon receipt of the cash . the company 's arrangements are generally non-cancellable , though clients typically have the right to terminate their agreement for cause if the company materially fails to perform . cell manufacturing services are generally distinct arrangements whereby the company is paid for time and materials or for fixed monthly amounts . revenue is recognized when efforts are expended or contractual terms have been met . some client agreements include multiple elements , comprised of cell process development and cell manufacturing services . the company believes that cell process development and cell manufacturing services each have stand-alone value because these services can be provided separately by other companies . in accordance with asc update no . 2009-13 , “ revenue recognition ( topic 605 ) : multiple-deliverable revenue arrangements , ” the company ( 1 ) separates deliverables into separate units of accounting when deliverables are sold in a bundled arrangement and ( 2 ) allocates the arrangement 's consideration to each unit in the arrangement based on its relative selling price . clinical services reimbursements : the company separately charges the customers for the expenses associated with certain consumable resources ( reimbursable expenses ) that are specified in each clinical services contract . on a monthly basis , the company bills customers for reimbursable expenses and immediately recognizes these billings as revenue , as the revenue is deemed earned as reimbursable expenses are incurred . processing and storage services : the company recognizes revenue related to the collection and cryopreservation of cord blood and autologous adult stem cells when the cryopreservation process is completed which is approximately twenty-four hours after cells have been collected . revenue related to advance payments of storage fees is recognized ratably over the period covered by the advance payments . share-based compensation the company expenses all share-based payment awards to employees , directors , advisors and consultants , including grants of stock options , warrants , and restricted stock , over the requisite service period based on the grant date fair value of the awards . advisor and consultant awards are remeasured each reporting period through vesting . for awards with performance-based vesting criteria , the company estimates the probability of achievement of the performance criteria and recognizes compensation expense related to those awards expected to vest

on an ongoing basis , we evaluate our estimates , including those related to revenue recognition under the percentage-of-completion method , bad debts , inventories , warranty reserves , investment valuations , valuation of stock compensation awards , recoverability of deferred tax assets , liabilities for uncertain tax positions and contingencies . we base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances , the results of which form the basis for making judgments about carrying values of assets and liabilities that are not apparent from other sources . actual results may differ from these estimates under different assumptions . the prior period amounts have been revised for the impact of discontinued operations due to the sale of our iii-v product line , including our ktc subsidiary . our financial results for prior periods have also been revised , in accordance with u.s. gaap , to reflect certain changes to the business and other matters . we believe the following critical accounting policies are most affected by our more significant judgments and estimates used in the preparation of our consolidated financial statements : revenue recognition we recognize revenue if four basic criteria have been met : ( 1 ) persuasive evidence of an arrangement exists ; ( 2 ) delivery has occurred and services rendered ; ( 3 ) the price to the buyer is fixed or determinable ; and ( 4 ) collectability is reasonably assured . we do not recognize revenue for products prior to customer acceptance unless we believe the product meets all customer specifications and has a history of consistently achieving customer acceptance of the product . provisions for product returns and allowances are recorded in the same period as the related revenues . we analyze historical returns , current economic trends and changes in customer demand and acceptance of product when evaluating the adequacy of sales returns and other allowances . certain product sales are made to distributors under agreements allowing for a limited right of return on unsold products . sales to distributors are primarily made for sales to the distributors ' customers and not for stocking of inventory . we delay revenue recognition for our estimate of distributor claims of right of return on unsold products based upon our historical experience with our products and specific analysis of amounts subject to return based upon discussions with our distributors or their customers . we recognize revenues from long-term research and development government contracts on the percentage-of-completion method of accounting as work is performed , based upon the ratio of costs or hours already incurred to the estimated total cost of completion or hours of work to be performed . revenue recognized at any point in time is limited to the amount funded by the u.s. government or contracting entity . we recognize revenue for product development and research contracts that have established prices for distinct phases when delivery and acceptance of the deliverable for each phase has occurred . in some instances , we are contracted to create a deliverable which is anticipated to go into full production . in those cases , we discontinue the percentage-of-completion method after formal qualification of the deliverable has been completed and revenue is then recognized based on the criteria established for sale of products . in certain instances qualification may be achieved and delivery of production units may commence however our customer may have either identified new issues to be resolved or wish to incorporate a newer display technology . in these circumstances new units delivered will continue to be accounted for under the criteria established for sale of products . under certain of our research and development contracts , we recognize revenue using a milestone methodology . this revenue is recognized when we achieve specified milestones based on our past performance . we classify amounts earned on contracts in progress that are in excess of amounts billed as unbilled receivables and we classify amounts received in excess of amounts earned as billings in excess of revenues earned . we invoice based on dates specified in the related agreement or in periodic installments based upon our invoicing cycle . we recognize the entire amount of an estimated ultimate loss in our financial statements at the time the loss on a contract becomes known . accounting for design , development and production contracts requires judgment relative to assessing risks , estimating contract revenues and costs , and making assumptions for schedule and technical issues . due to the size and nature of the work 24 required to be performed on many of our contracts , the estimation of total revenue and cost at completion is complicated and subject to many variables . contract costs include material , labor and subcontracting costs , as well as an allocation of indirect costs . we have to make assumptions regarding the number of labor hours required to complete a task , the complexity of the work to be performed , the availability and cost of materials , and performance by our subcontractors . for contract change orders , claims or similar items , we apply judgment in estimating the amounts and assessing the potential for realization . these amounts are only included in contract value when they can be reliably estimated and realization is considered probable . we have accounting policies in place to address these as well as other contractual and business arrangements to properly account for long-term contracts . if our estimate of total contract costs or our determination of whether the customer agrees that a milestone is achieved is incorrect , our revenue could be overstated and profits would be negatively impacted . story_separator_special_tag accordingly , sales of 3d metrology equipment are tied to the strength of the chinese manufacturing sector . the decrease in the consumer applications is the result of a decrease in sales of our products for use in digital still cameras ( dscs ) . we believe the overall market for dscs has been declining due to an increase in use of cameras in smartphones . the decrease in research and development revenues is the result a decrease in funding from the u.s. government partially offset by an increase in funding by customers to develop wearable technologies . international sales represented 32 % and 38 % of product revenues for fiscal years 2015 and 2014 , respectively . our international sales are primarily denominated in u.s. currency . consequently , a strengthening of the u.s. dollar could increase the price in local currencies of our products in foreign markets and make our products relatively more expensive than competitors ' products that are denominated in local currencies , leading to a reduction in sales or profitability in those foreign markets . in addition , our korean subsidiary , kowon , holds u.s. dollars in order to pay various expenses . as a result , our financial position and results of operations are subject to exchange rate fluctuations in transactional and functional currency . we have not taken any protective measures against exchange rate fluctuations , such as purchasing hedging instruments with respect to such fluctuations , because of the historically stable exchange rate between the japanese yen , korean won and the u.s. dollar . cost of product revenues . replace_table_token_12_th cost of component revenues , which is comprised of materials , labor and manufacturing overhead related to the production of our products increased as a percentage of revenues in 2015 as compared to 2014 due to a decrease in the sale of our display products for military applications , which have higher margins than our other products . research and development . replace_table_token_13_th research and development ( r & d ) expenses are incurred in support of internal display development programs or programs funded by agencies or prime contractors of the u.s. government and commercial partners . in fiscal year 2016 , our r & d expenditures will be related to our display products , overlay weapon sights and kopin wearable technologies . r & d revenues associated with funded programs are presented separately in revenue in the statement of operations . r & d costs include staffing , purchases of materials and laboratory supplies , circuit design costs , fabrication and packaging of display products , and overhead . funded r & d expense for 2015 decreased as compared to the prior year due to a reduction in programs with customers developing products for wearable applications . the decrease occurred because the customers either discontinued the programs or the products moved into the commercialization phase . 29 selling , general and administrative . selling , general and administrative ( s , g & a ) expenses consist of the expenses incurred by our sales and marketing personnel and related expenses , and administrative and general corporate expenses . replace_table_token_14_th the decrease in s , g & a expenses in 2015 as compared to 2014 is primarily attributable to a decrease in deferred compensation expense , professional fees and intangible amortization partially offset by an increase in patent expense . other income and expense . replace_table_token_15_th other income and expense , net , as shown above , is composed of interest income , foreign currency transactions and remeasurement gains and losses incurred by our korean and united kingdom subsidiaries , gains on sales of investments and the impairment of cost based investments . additionally , in 2015 , we recorded $ 0.3 million of expense for amounts stolen from kowon . for 2015 , we recorded $ 0.6 million of foreign currency gains as compared to $ 0.3 million foreign currency gains for 2014 . this was primarily attributable to increased fluctuations in the u.s. dollar and korean won currency exchange rate . in 2015 , we recorded a gain on the sale of investments of $ 9.2 million consisting of gains from the sale of investments in vuzix and recon of $ 3.7 million and $ 5.5 million , respectively . in 2014 , we recorded an impairment of $ 1.3 million related to the write-off of our equity investment in kobrite and $ 0.2 million of expense for amounts stolen from kowon . equity losses in unconsolidated affiliates . our equity losses in unconsolidated affiliates for 2014 consists of our approximate 12 % share of the losses of kobrite for the first quarter of 2014 , incurred prior to writing our investment down to zero in the second quarter . during the twelve months ended december 27 , 2014 , we funded the operations of one of our investments . the impact of this funding for the twelve month period ended december 27 , 2014 was approximately $ 0.3 million . tax provision . the benefit for income taxes for the fiscal year ended 2015 of $ 25,000 represents the net of state tax and foreign withholding tax related to closing our korean facilities . for 2016 , we expect to have movement in the foreign withholding tax relating to conversion rate changes . we also expect to have a state tax provision in 2016. net ( income ) loss attributable to noncontrolling interest . we own approximately 93 % of the equity of kowon and 80 % of the equity of emdt . in the fourth quarter of 2015 , we increased our investment in kopin software ltd. from 58 % to 100 % . net loss attributable to noncontrolling interest on our consolidated statement of operations represents the portion of the results of operations of our majority owned subsidiaries which is allocated to the shareholders of the equity interests not owned by us . the change

liquidity and capital resources 30 as of december 31 , 2016 , we had cash and equivalents and marketable debt securities of $ 77.2 million and working capital of $ 70.0 million compared to $ 80.7 million and $ 89.9 million , respectively , as of december 26 , 2015. the change in cash and equivalents and marketable securities was primarily due to cash used in operating activities of $ 26.2 million and the repurchase of our common stock for withholding tax purposes of $ 0.5 million which was partially offset by cash received from investing activities of $ 22.8 million . the cash provided by investing activities was primarily from the receipt of final installment of $ 15 million from the 2013 sale of our iii-v product line and investment in kopin taiwan corporation and the sale of our korean subsidiary plant and land for approximately $ 8.1 million . as of december 26 , 2015 , we had cash and equivalents and marketable debt securities of $ 80.7 million and working capital of $ 89.9 million compared to $ 90.9 million and $ 86.7 million , respectively , as of december 27 , 2014. the change in cash and equivalents and marketable securities was primarily due to cash used in operating activities of $ 17.1 million and the repurchase of our common stock for withholding tax purposes of $ 1.1 million which was partially offset by the sale of investments of $ 9.2 million . on january 15 , 2016 , we received the $ 15 million note receivable which was the final payment associated with the sale of our iii-v product line and investment in kopin taiwan corporation .

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 30 as of december 31 , 2016 , we had cash and equivalents and marketable debt securities of $ 77.2 million and working capital of $ 70.0 million compared to $ 80.7 million and $ 89.9 million , respectively , as of december 26 , 2015. the change in cash and equivalents and marketable securities was primarily due to cash used in operating activities of $ 26.2 million and the repurchase of our common stock for withholding tax purposes of $ 0.5 million which was partially offset by cash received from investing activities of $ 22.8 million . the cash provided by investing activities was primarily from the receipt of final installment of $ 15 million from the 2013 sale of our iii-v product line and investment in kopin taiwan corporation and the sale of our korean subsidiary plant and land for approximately $ 8.1 million . as of december 26 , 2015 , we had cash and equivalents and marketable debt securities of $ 80.7 million and working capital of $ 89.9 million compared to $ 90.9 million and $ 86.7 million , respectively , as of december 27 , 2014. the change in cash and equivalents and marketable securities was primarily due to cash used in operating activities of $ 17.1 million and the repurchase of our common stock for withholding tax purposes of $ 1.1 million which was partially offset by the sale of investments of $ 9.2 million . on january 15 , 2016 , we received the $ 15 million note receivable which was the final payment associated with the sale of our iii-v product line and investment in kopin taiwan corporation . ``` Suspicious Activity Report : on an ongoing basis , we evaluate our estimates , including those related to revenue recognition under the percentage-of-completion method , bad debts , inventories , warranty reserves , investment valuations , valuation of stock compensation awards , recoverability of deferred tax assets , liabilities for uncertain tax positions and contingencies . we base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances , the results of which form the basis for making judgments about carrying values of assets and liabilities that are not apparent from other sources . actual results may differ from these estimates under different assumptions . the prior period amounts have been revised for the impact of discontinued operations due to the sale of our iii-v product line , including our ktc subsidiary . our financial results for prior periods have also been revised , in accordance with u.s. gaap , to reflect certain changes to the business and other matters . we believe the following critical accounting policies are most affected by our more significant judgments and estimates used in the preparation of our consolidated financial statements : revenue recognition we recognize revenue if four basic criteria have been met : ( 1 ) persuasive evidence of an arrangement exists ; ( 2 ) delivery has occurred and services rendered ; ( 3 ) the price to the buyer is fixed or determinable ; and ( 4 ) collectability is reasonably assured . we do not recognize revenue for products prior to customer acceptance unless we believe the product meets all customer specifications and has a history of consistently achieving customer acceptance of the product . provisions for product returns and allowances are recorded in the same period as the related revenues . we analyze historical returns , current economic trends and changes in customer demand and acceptance of product when evaluating the adequacy of sales returns and other allowances . certain product sales are made to distributors under agreements allowing for a limited right of return on unsold products . sales to distributors are primarily made for sales to the distributors ' customers and not for stocking of inventory . we delay revenue recognition for our estimate of distributor claims of right of return on unsold products based upon our historical experience with our products and specific analysis of amounts subject to return based upon discussions with our distributors or their customers . we recognize revenues from long-term research and development government contracts on the percentage-of-completion method of accounting as work is performed , based upon the ratio of costs or hours already incurred to the estimated total cost of completion or hours of work to be performed . revenue recognized at any point in time is limited to the amount funded by the u.s. government or contracting entity . we recognize revenue for product development and research contracts that have established prices for distinct phases when delivery and acceptance of the deliverable for each phase has occurred . in some instances , we are contracted to create a deliverable which is anticipated to go into full production . in those cases , we discontinue the percentage-of-completion method after formal qualification of the deliverable has been completed and revenue is then recognized based on the criteria established for sale of products . in certain instances qualification may be achieved and delivery of production units may commence however our customer may have either identified new issues to be resolved or wish to incorporate a newer display technology . in these circumstances new units delivered will continue to be accounted for under the criteria established for sale of products . under certain of our research and development contracts , we recognize revenue using a milestone methodology . this revenue is recognized when we achieve specified milestones based on our past performance . we classify amounts earned on contracts in progress that are in excess of amounts billed as unbilled receivables and we classify amounts received in excess of amounts earned as billings in excess of revenues earned . we invoice based on dates specified in the related agreement or in periodic installments based upon our invoicing cycle . we recognize the entire amount of an estimated ultimate loss in our financial statements at the time the loss on a contract becomes known . accounting for design , development and production contracts requires judgment relative to assessing risks , estimating contract revenues and costs , and making assumptions for schedule and technical issues . due to the size and nature of the work 24 required to be performed on many of our contracts , the estimation of total revenue and cost at completion is complicated and subject to many variables . contract costs include material , labor and subcontracting costs , as well as an allocation of indirect costs . we have to make assumptions regarding the number of labor hours required to complete a task , the complexity of the work to be performed , the availability and cost of materials , and performance by our subcontractors . for contract change orders , claims or similar items , we apply judgment in estimating the amounts and assessing the potential for realization . these amounts are only included in contract value when they can be reliably estimated and realization is considered probable . we have accounting policies in place to address these as well as other contractual and business arrangements to properly account for long-term contracts . if our estimate of total contract costs or our determination of whether the customer agrees that a milestone is achieved is incorrect , our revenue could be overstated and profits would be negatively impacted . story_separator_special_tag accordingly , sales of 3d metrology equipment are tied to the strength of the chinese manufacturing sector . the decrease in the consumer applications is the result of a decrease in sales of our products for use in digital still cameras ( dscs ) . we believe the overall market for dscs has been declining due to an increase in use of cameras in smartphones . the decrease in research and development revenues is the result a decrease in funding from the u.s. government partially offset by an increase in funding by customers to develop wearable technologies . international sales represented 32 % and 38 % of product revenues for fiscal years 2015 and 2014 , respectively . our international sales are primarily denominated in u.s. currency . consequently , a strengthening of the u.s. dollar could increase the price in local currencies of our products in foreign markets and make our products relatively more expensive than competitors ' products that are denominated in local currencies , leading to a reduction in sales or profitability in those foreign markets . in addition , our korean subsidiary , kowon , holds u.s. dollars in order to pay various expenses . as a result , our financial position and results of operations are subject to exchange rate fluctuations in transactional and functional currency . we have not taken any protective measures against exchange rate fluctuations , such as purchasing hedging instruments with respect to such fluctuations , because of the historically stable exchange rate between the japanese yen , korean won and the u.s. dollar . cost of product revenues . replace_table_token_12_th cost of component revenues , which is comprised of materials , labor and manufacturing overhead related to the production of our products increased as a percentage of revenues in 2015 as compared to 2014 due to a decrease in the sale of our display products for military applications , which have higher margins than our other products . research and development . replace_table_token_13_th research and development ( r & d ) expenses are incurred in support of internal display development programs or programs funded by agencies or prime contractors of the u.s. government and commercial partners . in fiscal year 2016 , our r & d expenditures will be related to our display products , overlay weapon sights and kopin wearable technologies . r & d revenues associated with funded programs are presented separately in revenue in the statement of operations . r & d costs include staffing , purchases of materials and laboratory supplies , circuit design costs , fabrication and packaging of display products , and overhead . funded r & d expense for 2015 decreased as compared to the prior year due to a reduction in programs with customers developing products for wearable applications . the decrease occurred because the customers either discontinued the programs or the products moved into the commercialization phase . 29 selling , general and administrative . selling , general and administrative ( s , g & a ) expenses consist of the expenses incurred by our sales and marketing personnel and related expenses , and administrative and general corporate expenses . replace_table_token_14_th the decrease in s , g & a expenses in 2015 as compared to 2014 is primarily attributable to a decrease in deferred compensation expense , professional fees and intangible amortization partially offset by an increase in patent expense . other income and expense . replace_table_token_15_th other income and expense , net , as shown above , is composed of interest income , foreign currency transactions and remeasurement gains and losses incurred by our korean and united kingdom subsidiaries , gains on sales of investments and the impairment of cost based investments . additionally , in 2015 , we recorded $ 0.3 million of expense for amounts stolen from kowon . for 2015 , we recorded $ 0.6 million of foreign currency gains as compared to $ 0.3 million foreign currency gains for 2014 . this was primarily attributable to increased fluctuations in the u.s. dollar and korean won currency exchange rate . in 2015 , we recorded a gain on the sale of investments of $ 9.2 million consisting of gains from the sale of investments in vuzix and recon of $ 3.7 million and $ 5.5 million , respectively . in 2014 , we recorded an impairment of $ 1.3 million related to the write-off of our equity investment in kobrite and $ 0.2 million of expense for amounts stolen from kowon . equity losses in unconsolidated affiliates . our equity losses in unconsolidated affiliates for 2014 consists of our approximate 12 % share of the losses of kobrite for the first quarter of 2014 , incurred prior to writing our investment down to zero in the second quarter . during the twelve months ended december 27 , 2014 , we funded the operations of one of our investments . the impact of this funding for the twelve month period ended december 27 , 2014 was approximately $ 0.3 million . tax provision . the benefit for income taxes for the fiscal year ended 2015 of $ 25,000 represents the net of state tax and foreign withholding tax related to closing our korean facilities . for 2016 , we expect to have movement in the foreign withholding tax relating to conversion rate changes . we also expect to have a state tax provision in 2016. net ( income ) loss attributable to noncontrolling interest . we own approximately 93 % of the equity of kowon and 80 % of the equity of emdt . in the fourth quarter of 2015 , we increased our investment in kopin software ltd. from 58 % to 100 % . net loss attributable to noncontrolling interest on our consolidated statement of operations represents the portion of the results of operations of our majority owned subsidiaries which is allocated to the shareholders of the equity interests not owned by us . the change

as a consequence , management continues to employ a well-defined credit policy focusing on quality underwriting and close management and board monitoring . see “ risk factors – increased emphasis on commercial lending may expose the bank to increased lending risks .” 40 enhancing non-interest income management continues to diversify the bank 's product line and expand related resources in order to enhance non-interest income . the bank is currently focused on growth opportunities in trust and asset management services and in bankcard services , which includes interchange revenue , merchant services and atm fees . the bank also offers alternative investment products ( annuities , mutual funds and life insurance ) for sale through its retail branch network . as a result of these initiatives , income from fees and service charges has increased to $ 13.8 million for the year ended december 31 , 2013 as compared to $ 11.4 million for the year ended december 31 , 2008 and only $ 1.4 million for the year ended december 31 , 1997. increasing core deposits the bank seeks to increase core deposit market share in its primary market area by improving market penetration . over the past ten years through december 31 , 2013 , the bank has opened eight branch offices , five in ocean county and three in monmouth county including a full service financial solutions center in red bank . after a comprehensive review of the bank 's branch network in late 2013 , two existing branches were consolidated into newer , in-market , facilities resulting in a non-recurring charge of $ 579,000. the bank is continually evaluating additional strategic office sites within its existing market area . core account development has benefited from bank efforts to attract business deposits in conjunction with its commercial lending operations and from an expanded mix of retail core account products . as a result of these efforts the bank 's core deposit ratio has grown to 87.5 % at december 31 , 2013 as compared to 71.2 % at december 31 , 2008 and only 33.0 % at december 31 , 1997. core deposits are generally considered a less expensive and more stable funding source than certificates of deposit . in addition to the objectives described above , the company determined to more actively manage its capital position to improve return on equity . in the fourth quarter of 2011 , and again in the fourth quarter of 2012 , the company announced its intention to repurchase up to 5 % of its outstanding common stock . for the year ended december 31 , 2013 , the company repurchased 533,018 shares of common stock for $ 8.1 million . at december 31 , 2013 , there were 301,766 shares remaining to be repurchased under the existing stock repurchase plan . summary interest-earning assets , both loans and securities , are generally priced against longer-term indices , while interest-bearing liabilities , primarily deposits and borrowings , are generally priced against shorter-term indices . beginning in the second half of 2011 and through the first quarter of 2013 , the company 's net interest margin had generally contracted . due to the low interest rate environment , high loan refinance volume caused yields on loans and mortgage-backed securities to trend downward . at the same time , the company 's asset mix shifted as higher-yielding loans decreased due to prepayments and the sale of newly-originated , 30-year , fixed-rate , one-to-four family loans while lower-yielding securities increased . in mid-year , the company 's net interest margin stabilized and then expanded at year-end . although high loan refinance volume and shifting asset mix continued into the second quarter of 2013 , the company 's net interest margin nonetheless expanded slightly as the company invested excess liquidity into higher-yielding assets and managed funding costs lower . in the third quarter of 2013 , refinance activity subsided and the company was successful in growing commercial loans , resulting in a shift in asset mix from lower-yielding securities into higher-yielding loans . early in the fourth quarter of 2013 , the company prepaid $ 159.0 million of federal home loan bank advances . this transaction , along with continued growth in commercial loans , improved net interest income and margin in the last quarter of the year . based upon current economic conditions , the federal reserve has indicated that it intends to keep short-term interest rates at current levels , at least as long as the unemployment rate remains above 6.5 % , inflation between one and two years ahead is projected to be no more than one-half percentage point above the 2 percent longer-run goal , and longer-term inflation expectations continue to be well-anchored . additionally , the federal open market 41 committee recently decided to taper their monthly bond buying program , with further reductions expected throughout 2014. longer-term interest rates have increased since earlier in the year , resulting in a steeper yield curve . the recent increase in longer-term interest rates has reduced loan refinance activity , causing a decrease in loan sale volume and lower income from the net gain on the sale of loans . this trend is expected to continue as income from the sale of loans in subsequent quarters will likely fall below comparable prior year levels . in addition to the interest rate environment , the company 's results are affected by national and local economic conditions . recent economic indicators point to some improvement in the economy , which expanded modestly in 2012 and 2013. labor market conditions also improved as the national unemployment rate in 2013 decreased over prior year levels . despite these signs , the pace of economic recovery remains weak . story_separator_special_tag if a security is determined to be other-than-temporarily impaired , the impairment is charged to income during the period the impairment is found to exist , resulting in a reduction to earnings for that period . during 2011 , the company recognized an other-than-temporary impairment loss on equity securities of $ 148,000 as compared to no other-than-temporary impairment loss during 2012 and 2013. as of december 31 , 2013 , the company concluded that any remaining unrealized losses in the securities portfolio were temporary in nature because they were primarily related to market interest rates , market illiquidity and wider credit spreads for these types of securities . additionally , the company does not intend to sell the securities and it is more likely than not that the company will not be required to sell the securities before recovery of their amortized cost . future events that could materially change this conclusion and require an impairment loss to be charged to operations include a change in the credit quality of the issuers or a determination that a market recovery in the foreseeable future is unlikely . analysis of net interest income net interest income represents the difference between income on interest-earning assets and expense on interest-bearing liabilities . net interest income also depends upon the relative amounts of interest-earning assets and interest-bearing liabilities and the interest rate earned or paid on them . 46 the following table sets forth certain information relating to the company for each of the years ended december 31 , 2013 , 2012 and 2011. the yields and costs are derived by dividing income or expense by the average balance of assets or liabilities , respectively , for the periods shown except where noted otherwise . average balances are derived from average daily balances . the yields and costs include fees which are considered adjustments to yields . replace_table_token_21_th ( 1 ) amounts are recorded at average amortized cost . ( 2 ) amount is net of deferred loan fees , undisbursed loan funds , discounts and premiums and estimated loan loss allowances and includes loans held-for-sale and non-performing loans . ( 3 ) net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities . ( 4 ) net interest margin represents net interest income divided by average interest-earning assets . 47 rate volume analysis the following table presents the extent to which changes in interest rates and changes in the volume of interest-earning assets and interest-bearing liabilities have affected the company 's interest income and interest expense during the periods indicated . information is provided in each category with respect to : ( i ) changes attributable to changes in volume ( changes in volume multiplied by prior rate ) ; ( ii ) changes attributable to changes in rate ( changes in rate multiplied by prior volume ) ; and ( iii ) the net change . the changes attributable to the combined impact of volume and rate have been allocated proportionately to the changes due to volume and the changes due to rate . replace_table_token_22_th comparison of financial condition at december 31 , 2013 and december 31 , 2012 total assets decreased by $ 19.5 million to $ 2.250 billion at december 31 , 2013 , from $ 2.269 billion at december 31 , 2012. securities , in the aggregate , decreased by $ 8.0 million , to $ 539.4 million at december 31 , 2013 , as compared to $ 547.5 million at december 31 , 2012. during the period , the company reclassified $ 536.0 million of securities available-for-sale to securities held-to-maturity as the company has the intent and ability to hold these securities until maturity . loans receivable , net , increased by $ 18.3 million , to $ 1.542 billion at december 31 , 2013 from $ 1.523 billion at december 31 , 2012 , primarily due to growth in commercial lending of $ 56.4 million and in construction to permanent residential construction loans , net of loans in process , which increased $ 12.7 million as homeowners rebuild from superstorm sandy . this growth was partly offset by a decrease in one-to-four family mortgage loans due to prepayments and the sale of most newly originated 30-year fixed-rate one-to-four family loans . 48 deposits increased by $ 27.1 million , to $ 1.747 billion at december 31 , 2013 , from $ 1.720 billion at december 31 , 2012 with core deposits , ( i.e . all deposits excluding time deposits ) growing by $ 35.4 million . securities sold under agreements to repurchase with retail customers increased by $ 7.5 million , to $ 68.3 million at december 31 , 2013 , from $ 60.8 million at december 31 , 2012. federal home loan bank advances decreased $ 50.0 million , to $ 175.0 million at december 31 , 2013 , from $ 225.0 million at december 31 , 2012. stockholders ' equity decreased to $ 214.4 million at december 31 , 2013 , as compared to $ 219.8 million at december 31 , 2012. net income for the period was offset by an increase in accumulated other comprehensive loss of $ 6.7 million due to the recent rise in interest rates , the repurchase of 533,018 shares of common stock for $ 8.1 million ( average cost per share of $ 15.21 ) and the cash dividends on common stock of $ 8.2 million . the reclassification of most available-for-sale securities to held-to-maturity during the third quarter will reduce the risk of future reductions to stockholders ' equity that could result in the event of additional increases in interest rates . there were no shares repurchased in the fourth quarter of 2013 and at december 31 , 2013 , 301,766 shares were available for repurchase under the stock repurchase program adopted in the fourth quarter of 2012. tangible stockholders ' equity per common share was $ 12.33 at

liquidity and capital resources the company 's primary sources of funds are deposits , principal and interest payments on loans and mortgage-backed securities , proceeds from the sales of loans , fhlb advances and other borrowings and , to a lesser extent , investment maturities . while scheduled amortization of loans is a predictable source of funds , deposit flows and mortgage prepayments are greatly influenced by general interest rates , economic conditions and competition . the company has other sources of liquidity if a need for additional funds arises , including advances from the fhlb and various lines of credit . during the quarter ended september 30 , 2013 , the company transferred $ 536.0 million of previously-designated available-for-sale securities to a held-to-maturity classification . the company does not typically rely on the sale of securities as a source of liquidity and historically there have been no sales of the types of securities transferred to held-to-maturity . at december 31 , 2013 the bank had $ 35.0 million in outstanding overnight borrowings from the fhlb , as compared to no outstanding overnight borrowings at december 31 , 2012. the bank utilizes overnight borrowings from time-to-time to fund short-term liquidity needs . fhlb advances , including the overnight borrowings , totaled $ 175.0 million at december 31 , 2013 , a decrease from $ 225.0 million at december 31 , 2012. in the fourth quarter of 2013 , the company prepaid $ 159.0 million of fhlb advances , incurring a prepayment fee of $ 4.3 million . the prepayment was initially funded with short-term advances which the company plans to replace over the next year with deposit growth and longer-term advances . securities sold under agreements to repurchase with retail customers increased to $ 68.3 million at december 31 , 2013 from $ 60.8 million at december 31 , 2012. like deposit flows , this funding source is dependent upon demand from the bank 's customer base .

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 primary sources of funds are deposits , principal and interest payments on loans and mortgage-backed securities , proceeds from the sales of loans , fhlb advances and other borrowings and , to a lesser extent , investment maturities . while scheduled amortization of loans is a predictable source of funds , deposit flows and mortgage prepayments are greatly influenced by general interest rates , economic conditions and competition . the company has other sources of liquidity if a need for additional funds arises , including advances from the fhlb and various lines of credit . during the quarter ended september 30 , 2013 , the company transferred $ 536.0 million of previously-designated available-for-sale securities to a held-to-maturity classification . the company does not typically rely on the sale of securities as a source of liquidity and historically there have been no sales of the types of securities transferred to held-to-maturity . at december 31 , 2013 the bank had $ 35.0 million in outstanding overnight borrowings from the fhlb , as compared to no outstanding overnight borrowings at december 31 , 2012. the bank utilizes overnight borrowings from time-to-time to fund short-term liquidity needs . fhlb advances , including the overnight borrowings , totaled $ 175.0 million at december 31 , 2013 , a decrease from $ 225.0 million at december 31 , 2012. in the fourth quarter of 2013 , the company prepaid $ 159.0 million of fhlb advances , incurring a prepayment fee of $ 4.3 million . the prepayment was initially funded with short-term advances which the company plans to replace over the next year with deposit growth and longer-term advances . securities sold under agreements to repurchase with retail customers increased to $ 68.3 million at december 31 , 2013 from $ 60.8 million at december 31 , 2012. like deposit flows , this funding source is dependent upon demand from the bank 's customer base . ``` Suspicious Activity Report : as a consequence , management continues to employ a well-defined credit policy focusing on quality underwriting and close management and board monitoring . see “ risk factors – increased emphasis on commercial lending may expose the bank to increased lending risks .” 40 enhancing non-interest income management continues to diversify the bank 's product line and expand related resources in order to enhance non-interest income . the bank is currently focused on growth opportunities in trust and asset management services and in bankcard services , which includes interchange revenue , merchant services and atm fees . the bank also offers alternative investment products ( annuities , mutual funds and life insurance ) for sale through its retail branch network . as a result of these initiatives , income from fees and service charges has increased to $ 13.8 million for the year ended december 31 , 2013 as compared to $ 11.4 million for the year ended december 31 , 2008 and only $ 1.4 million for the year ended december 31 , 1997. increasing core deposits the bank seeks to increase core deposit market share in its primary market area by improving market penetration . over the past ten years through december 31 , 2013 , the bank has opened eight branch offices , five in ocean county and three in monmouth county including a full service financial solutions center in red bank . after a comprehensive review of the bank 's branch network in late 2013 , two existing branches were consolidated into newer , in-market , facilities resulting in a non-recurring charge of $ 579,000. the bank is continually evaluating additional strategic office sites within its existing market area . core account development has benefited from bank efforts to attract business deposits in conjunction with its commercial lending operations and from an expanded mix of retail core account products . as a result of these efforts the bank 's core deposit ratio has grown to 87.5 % at december 31 , 2013 as compared to 71.2 % at december 31 , 2008 and only 33.0 % at december 31 , 1997. core deposits are generally considered a less expensive and more stable funding source than certificates of deposit . in addition to the objectives described above , the company determined to more actively manage its capital position to improve return on equity . in the fourth quarter of 2011 , and again in the fourth quarter of 2012 , the company announced its intention to repurchase up to 5 % of its outstanding common stock . for the year ended december 31 , 2013 , the company repurchased 533,018 shares of common stock for $ 8.1 million . at december 31 , 2013 , there were 301,766 shares remaining to be repurchased under the existing stock repurchase plan . summary interest-earning assets , both loans and securities , are generally priced against longer-term indices , while interest-bearing liabilities , primarily deposits and borrowings , are generally priced against shorter-term indices . beginning in the second half of 2011 and through the first quarter of 2013 , the company 's net interest margin had generally contracted . due to the low interest rate environment , high loan refinance volume caused yields on loans and mortgage-backed securities to trend downward . at the same time , the company 's asset mix shifted as higher-yielding loans decreased due to prepayments and the sale of newly-originated , 30-year , fixed-rate , one-to-four family loans while lower-yielding securities increased . in mid-year , the company 's net interest margin stabilized and then expanded at year-end . although high loan refinance volume and shifting asset mix continued into the second quarter of 2013 , the company 's net interest margin nonetheless expanded slightly as the company invested excess liquidity into higher-yielding assets and managed funding costs lower . in the third quarter of 2013 , refinance activity subsided and the company was successful in growing commercial loans , resulting in a shift in asset mix from lower-yielding securities into higher-yielding loans . early in the fourth quarter of 2013 , the company prepaid $ 159.0 million of federal home loan bank advances . this transaction , along with continued growth in commercial loans , improved net interest income and margin in the last quarter of the year . based upon current economic conditions , the federal reserve has indicated that it intends to keep short-term interest rates at current levels , at least as long as the unemployment rate remains above 6.5 % , inflation between one and two years ahead is projected to be no more than one-half percentage point above the 2 percent longer-run goal , and longer-term inflation expectations continue to be well-anchored . additionally , the federal open market 41 committee recently decided to taper their monthly bond buying program , with further reductions expected throughout 2014. longer-term interest rates have increased since earlier in the year , resulting in a steeper yield curve . the recent increase in longer-term interest rates has reduced loan refinance activity , causing a decrease in loan sale volume and lower income from the net gain on the sale of loans . this trend is expected to continue as income from the sale of loans in subsequent quarters will likely fall below comparable prior year levels . in addition to the interest rate environment , the company 's results are affected by national and local economic conditions . recent economic indicators point to some improvement in the economy , which expanded modestly in 2012 and 2013. labor market conditions also improved as the national unemployment rate in 2013 decreased over prior year levels . despite these signs , the pace of economic recovery remains weak . story_separator_special_tag if a security is determined to be other-than-temporarily impaired , the impairment is charged to income during the period the impairment is found to exist , resulting in a reduction to earnings for that period . during 2011 , the company recognized an other-than-temporary impairment loss on equity securities of $ 148,000 as compared to no other-than-temporary impairment loss during 2012 and 2013. as of december 31 , 2013 , the company concluded that any remaining unrealized losses in the securities portfolio were temporary in nature because they were primarily related to market interest rates , market illiquidity and wider credit spreads for these types of securities . additionally , the company does not intend to sell the securities and it is more likely than not that the company will not be required to sell the securities before recovery of their amortized cost . future events that could materially change this conclusion and require an impairment loss to be charged to operations include a change in the credit quality of the issuers or a determination that a market recovery in the foreseeable future is unlikely . analysis of net interest income net interest income represents the difference between income on interest-earning assets and expense on interest-bearing liabilities . net interest income also depends upon the relative amounts of interest-earning assets and interest-bearing liabilities and the interest rate earned or paid on them . 46 the following table sets forth certain information relating to the company for each of the years ended december 31 , 2013 , 2012 and 2011. the yields and costs are derived by dividing income or expense by the average balance of assets or liabilities , respectively , for the periods shown except where noted otherwise . average balances are derived from average daily balances . the yields and costs include fees which are considered adjustments to yields . replace_table_token_21_th ( 1 ) amounts are recorded at average amortized cost . ( 2 ) amount is net of deferred loan fees , undisbursed loan funds , discounts and premiums and estimated loan loss allowances and includes loans held-for-sale and non-performing loans . ( 3 ) net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities . ( 4 ) net interest margin represents net interest income divided by average interest-earning assets . 47 rate volume analysis the following table presents the extent to which changes in interest rates and changes in the volume of interest-earning assets and interest-bearing liabilities have affected the company 's interest income and interest expense during the periods indicated . information is provided in each category with respect to : ( i ) changes attributable to changes in volume ( changes in volume multiplied by prior rate ) ; ( ii ) changes attributable to changes in rate ( changes in rate multiplied by prior volume ) ; and ( iii ) the net change . the changes attributable to the combined impact of volume and rate have been allocated proportionately to the changes due to volume and the changes due to rate . replace_table_token_22_th comparison of financial condition at december 31 , 2013 and december 31 , 2012 total assets decreased by $ 19.5 million to $ 2.250 billion at december 31 , 2013 , from $ 2.269 billion at december 31 , 2012. securities , in the aggregate , decreased by $ 8.0 million , to $ 539.4 million at december 31 , 2013 , as compared to $ 547.5 million at december 31 , 2012. during the period , the company reclassified $ 536.0 million of securities available-for-sale to securities held-to-maturity as the company has the intent and ability to hold these securities until maturity . loans receivable , net , increased by $ 18.3 million , to $ 1.542 billion at december 31 , 2013 from $ 1.523 billion at december 31 , 2012 , primarily due to growth in commercial lending of $ 56.4 million and in construction to permanent residential construction loans , net of loans in process , which increased $ 12.7 million as homeowners rebuild from superstorm sandy . this growth was partly offset by a decrease in one-to-four family mortgage loans due to prepayments and the sale of most newly originated 30-year fixed-rate one-to-four family loans . 48 deposits increased by $ 27.1 million , to $ 1.747 billion at december 31 , 2013 , from $ 1.720 billion at december 31 , 2012 with core deposits , ( i.e . all deposits excluding time deposits ) growing by $ 35.4 million . securities sold under agreements to repurchase with retail customers increased by $ 7.5 million , to $ 68.3 million at december 31 , 2013 , from $ 60.8 million at december 31 , 2012. federal home loan bank advances decreased $ 50.0 million , to $ 175.0 million at december 31 , 2013 , from $ 225.0 million at december 31 , 2012. stockholders ' equity decreased to $ 214.4 million at december 31 , 2013 , as compared to $ 219.8 million at december 31 , 2012. net income for the period was offset by an increase in accumulated other comprehensive loss of $ 6.7 million due to the recent rise in interest rates , the repurchase of 533,018 shares of common stock for $ 8.1 million ( average cost per share of $ 15.21 ) and the cash dividends on common stock of $ 8.2 million . the reclassification of most available-for-sale securities to held-to-maturity during the third quarter will reduce the risk of future reductions to stockholders ' equity that could result in the event of additional increases in interest rates . there were no shares repurchased in the fourth quarter of 2013 and at december 31 , 2013 , 301,766 shares were available for repurchase under the stock repurchase program adopted in the fourth quarter of 2012. tangible stockholders ' equity per common share was $ 12.33 at

total prize money in 2018 reached $ 150.8 million , an increase from 2017 's $ 112 million . the league of legends world championship was 2018 's biggest tournament by live viewership hours on twitch , with 53.8 million hours . it also produced $ 1.9 million in ticket revenues . the overwatch league was the most-watched league by live viewership hours on twitch , generating 79.5 million hours . forbes magazine projects fans of esports will wager $ 23 billion on professional esports events by 2020 and that in 2019 , $ 897.2 million in revenues , or 82 % of the total market , will come from brand investments ( media rights , advertising , and sponsorship ) . this will increase to $ 1.5 billion by 2022 , making up 87 % of total esports revenues . although official competitions have long been a part of video game culture , participation and spectatorship of such events have seen a global surge in popularity over the last few years with the rapid growth of online streaming over the last few years . the advent of online streaming technology has turned esports into a global industry that includes professional players and teams competing in major events that are simultaneously watched in person in stadiums ( which are often sold out ) , and by online viewers ( which regularly exceed 1,000,000 viewers for major tournaments ) . the impact has been so significant , that many video game developers now build features into their games designed to facilitate competition . going concern we have financed operations primarily through the sale of equity securities and short-term debt . until revenues are sufficient to meet our needs , we will continue to attempt to secure financing through equity or debt securities , including the sale of securities in this offering . we continue to incur negative cash flows from operating activities and net losses . we had minimal cash , negative working capital , and negative total equity as of june 30 , 2019 and june 30 , 2018. these factors , among others , raise substantial doubt about our ability to continue as a going concern . the financial statements included in this prospectus do not include any adjustments that might result from the outcome of this uncertainty . in order for us to eliminate substantial doubt about our ability to continue as a going concern , we must achieve profitability , generate positive cash flows from operating activities and obtain the necessary debt or equity funding to meet our projected capital investment requirements . our management 's plans with respect to this uncertainty consist of raising additional capital by issuing debt or equity securities and increasing the sales of our products and services . if we are successful in completing the offering , we believe the net proceeds of the offering together with anticipated growth of the business will be sufficient to eliminate substantial doubt about our ability to continue as a going concern . there can be no assurance , however , that we will be able to complete the offering , raise sufficient additional capital or that revenues will increase rapidly enough to offset operating losses . if we are unable to increase revenues or obtain additional financing , we will be unable to continue the development of our products and services and may have to cease operations . results of operations the following discussion and analysis of our financial condition and results of operations should be read in conjunction with our financial statements and related notes included elsewhere in this report . material changes in line items in our statement of operations for the year ended june 30 , 2019 as compared to the same period last year , are discussed below . 33 year ended june 30 , 2019 compared to the year ended june 30 , 2018 revenue and expenses our operating expenses are classified into several categories : ● directors compensation ● consulting fees ● professional fees ● general and administrative expenses ● stock based compensation directors compensation is comprised of cash and stock option compensation paid to the directors of the company . these amounted to $ 55,000 for the year ended june 30 , 2019 , compared to 99,509 for the year ended june 30 , 2018. the decrease of $ 44,509 in director 's compensation during the year ended june 30 , 2019 is attributable primarily to the change of a board member to an executive officer during the year . consulting fees amounted to $ 790,105 for the year ended june 30 , 2019 , compared to $ 967,618 for the year ended june 30 , 2018. the decrease of $ 177,513 in consulting fees during the year ended june 30 , 2019 is attributable primarily to reduced fees of outside services to support the preparation of sec filings combined with the conversion of consultants to personnel . professional fees consist primarily of our contracted accounting , legal and audit fees . these amounted to $ 343,856 for the year ended june 30 , 2019 , compared to $ 211,971 for the year ended june 30 , 2018. the increase of $ 131,885 in professional fees during the year ended june 30 , 2019 is attributable primarily to increases in accounting and audit fees for preparation and review of our filings with the securities & exchange commission ( “ sec ” ) . general and administrative expenses refers to our salaries , occupancy costs , marketing costs , travel costs , office supplies , telephone expenses , bank charges , fees to process and file documents with the sec , stock transfer fees , investors relations costs , corporate filing fees with the state of nevada , and other administrative expenses . these amounted to $ 1,125,651 for the year ended june 30 , 2019 , compared to $ 696,543 for the year ended june 30 , 2018. story_separator_special_tag total prize money in 2018 reached $ 150.8 million , an increase from 2017 's $ 112 million . the league of legends world championship was 2018 's biggest tournament by live viewership hours on twitch , with 53.8 million hours . it also produced $ 1.9 million in ticket revenues . the overwatch league was the most-watched league by live viewership hours on twitch , generating 79.5 million hours . forbes magazine projects fans of esports will wager $ 23 billion on professional esports events by 2020 and that in 2019 , $ 897.2 million in revenues , or 82 % of the total market , will come from brand investments ( media rights , advertising , and sponsorship ) . this will increase to $ 1.5 billion by 2022 , making up 87 % of total esports revenues . although official competitions have long been a part of video game culture , participation and spectatorship of such events have seen a global surge in popularity over the last few years with the rapid growth of online streaming over the last few years . the advent of online streaming technology has turned esports into a global industry that includes professional players and teams competing in major events that are simultaneously watched in person in stadiums ( which are often sold out ) , and by online viewers ( which regularly exceed 1,000,000 viewers for major tournaments ) . the impact has been so significant , that many video game developers now build features into their games designed to facilitate competition . going concern we have financed operations primarily through the sale of equity securities and short-term debt . until revenues are sufficient to meet our needs , we will continue to attempt to secure financing through equity or debt securities , including the sale of securities in this offering . we continue to incur negative cash flows from operating activities and net losses . we had minimal cash , negative working capital , and negative total equity as of june 30 , 2019 and june 30 , 2018. these factors , among others , raise substantial doubt about our ability to continue as a going concern . the financial statements included in this prospectus do not include any adjustments that might result from the outcome of this uncertainty . in order for us to eliminate substantial doubt about our ability to continue as a going concern , we must achieve profitability , generate positive cash flows from operating activities and obtain the necessary debt or equity funding to meet our projected capital investment requirements . our management 's plans with respect to this uncertainty consist of raising additional capital by issuing debt or equity securities and increasing the sales of our products and services . if we are successful in completing the offering , we believe the net proceeds of the offering together with anticipated growth of the business will be sufficient to eliminate substantial doubt about our ability to continue as a going concern . there can be no assurance , however , that we will be able to complete the offering , raise sufficient additional capital or that revenues will increase rapidly enough to offset operating losses . if we are unable to increase revenues or obtain additional financing , we will be unable to continue the development of our products and services and may have to cease operations . results of operations the following discussion and analysis of our financial condition and results of operations should be read in conjunction with our financial statements and related notes included elsewhere in this report . material changes in line items in our statement of operations for the year ended june 30 , 2019 as compared to the same period last year , are discussed below . 33 year ended june 30 , 2019 compared to the year ended june 30 , 2018 revenue and expenses our operating expenses are classified into several categories : ● directors compensation ● consulting fees ● professional fees ● general and administrative expenses ● stock based compensation directors compensation is comprised of cash and stock option compensation paid to the directors of the company . these amounted to $ 55,000 for the year ended june 30 , 2019 , compared to 99,509 for the year ended june 30 , 2018. the decrease of $ 44,509 in director 's compensation during the year ended june 30 , 2019 is attributable primarily to the change of a board member to an executive officer during the year . consulting fees amounted to $ 790,105 for the year ended june 30 , 2019 , compared to $ 967,618 for the year ended june 30 , 2018. the decrease of $ 177,513 in consulting fees during the year ended june 30 , 2019 is attributable primarily to reduced fees of outside services to support the preparation of sec filings combined with the conversion of consultants to personnel . professional fees consist primarily of our contracted accounting , legal and audit fees . these amounted to $ 343,856 for the year ended june 30 , 2019 , compared to $ 211,971 for the year ended june 30 , 2018. the increase of $ 131,885 in professional fees during the year ended june 30 , 2019 is attributable primarily to increases in accounting and audit fees for preparation and review of our filings with the securities & exchange commission ( “ sec ” ) . general and administrative expenses refers to our salaries , occupancy costs , marketing costs , travel costs , office supplies , telephone expenses , bank charges , fees to process and file documents with the sec , stock transfer fees , investors relations costs , corporate filing fees with the state of nevada , and other administrative expenses . these amounted to $ 1,125,651 for the year ended june 30 , 2019 , compared to $ 696,543 for the year ended june 30 , 2018.

capital resources and liquidity the company 's sources and ( uses ) of cash for the year ended june 30 , 2019 and 2018 are shown below : replace_table_token_1_th our projected capital requirements during the next 18 months are as follows : project estimated cost launch our skill-based video game tournaments for play on mobile devices $ 500,000 launch our skill-based video game tournaments for play on pcs and video game consoles $ 1,000,000 obtain online gaming license from , and establish operations in , malta $ 1,000,000 obtain online gaming license from , and establish operations in , an asian country to be selected by us . $ 500,000 market our online betting services $ 5,000,000 34 our auditor 's report on our june 30 , 2019 financial statements expresses an opinion that substantial doubt exists as to whether we can continue as an ongoing business . other than the foregoing , we do not know of any trends that have or are reasonably likely to have a current or future effect on our financial condition , changes in financial condition , revenues or expenses , results of operations , liquidity , capital expenditures or capital resources that are material to investors . off balance sheet arrangements

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 the company 's sources and ( uses ) of cash for the year ended june 30 , 2019 and 2018 are shown below : replace_table_token_1_th our projected capital requirements during the next 18 months are as follows : project estimated cost launch our skill-based video game tournaments for play on mobile devices $ 500,000 launch our skill-based video game tournaments for play on pcs and video game consoles $ 1,000,000 obtain online gaming license from , and establish operations in , malta $ 1,000,000 obtain online gaming license from , and establish operations in , an asian country to be selected by us . $ 500,000 market our online betting services $ 5,000,000 34 our auditor 's report on our june 30 , 2019 financial statements expresses an opinion that substantial doubt exists as to whether we can continue as an ongoing business . other than the foregoing , we do not know of any trends that have or are reasonably likely to have a current or future effect on our financial condition , changes in financial condition , revenues or expenses , results of operations , liquidity , capital expenditures or capital resources that are material to investors . off balance sheet arrangements ``` Suspicious Activity Report : total prize money in 2018 reached $ 150.8 million , an increase from 2017 's $ 112 million . the league of legends world championship was 2018 's biggest tournament by live viewership hours on twitch , with 53.8 million hours . it also produced $ 1.9 million in ticket revenues . the overwatch league was the most-watched league by live viewership hours on twitch , generating 79.5 million hours . forbes magazine projects fans of esports will wager $ 23 billion on professional esports events by 2020 and that in 2019 , $ 897.2 million in revenues , or 82 % of the total market , will come from brand investments ( media rights , advertising , and sponsorship ) . this will increase to $ 1.5 billion by 2022 , making up 87 % of total esports revenues . although official competitions have long been a part of video game culture , participation and spectatorship of such events have seen a global surge in popularity over the last few years with the rapid growth of online streaming over the last few years . the advent of online streaming technology has turned esports into a global industry that includes professional players and teams competing in major events that are simultaneously watched in person in stadiums ( which are often sold out ) , and by online viewers ( which regularly exceed 1,000,000 viewers for major tournaments ) . the impact has been so significant , that many video game developers now build features into their games designed to facilitate competition . going concern we have financed operations primarily through the sale of equity securities and short-term debt . until revenues are sufficient to meet our needs , we will continue to attempt to secure financing through equity or debt securities , including the sale of securities in this offering . we continue to incur negative cash flows from operating activities and net losses . we had minimal cash , negative working capital , and negative total equity as of june 30 , 2019 and june 30 , 2018. these factors , among others , raise substantial doubt about our ability to continue as a going concern . the financial statements included in this prospectus do not include any adjustments that might result from the outcome of this uncertainty . in order for us to eliminate substantial doubt about our ability to continue as a going concern , we must achieve profitability , generate positive cash flows from operating activities and obtain the necessary debt or equity funding to meet our projected capital investment requirements . our management 's plans with respect to this uncertainty consist of raising additional capital by issuing debt or equity securities and increasing the sales of our products and services . if we are successful in completing the offering , we believe the net proceeds of the offering together with anticipated growth of the business will be sufficient to eliminate substantial doubt about our ability to continue as a going concern . there can be no assurance , however , that we will be able to complete the offering , raise sufficient additional capital or that revenues will increase rapidly enough to offset operating losses . if we are unable to increase revenues or obtain additional financing , we will be unable to continue the development of our products and services and may have to cease operations . results of operations the following discussion and analysis of our financial condition and results of operations should be read in conjunction with our financial statements and related notes included elsewhere in this report . material changes in line items in our statement of operations for the year ended june 30 , 2019 as compared to the same period last year , are discussed below . 33 year ended june 30 , 2019 compared to the year ended june 30 , 2018 revenue and expenses our operating expenses are classified into several categories : ● directors compensation ● consulting fees ● professional fees ● general and administrative expenses ● stock based compensation directors compensation is comprised of cash and stock option compensation paid to the directors of the company . these amounted to $ 55,000 for the year ended june 30 , 2019 , compared to 99,509 for the year ended june 30 , 2018. the decrease of $ 44,509 in director 's compensation during the year ended june 30 , 2019 is attributable primarily to the change of a board member to an executive officer during the year . consulting fees amounted to $ 790,105 for the year ended june 30 , 2019 , compared to $ 967,618 for the year ended june 30 , 2018. the decrease of $ 177,513 in consulting fees during the year ended june 30 , 2019 is attributable primarily to reduced fees of outside services to support the preparation of sec filings combined with the conversion of consultants to personnel . professional fees consist primarily of our contracted accounting , legal and audit fees . these amounted to $ 343,856 for the year ended june 30 , 2019 , compared to $ 211,971 for the year ended june 30 , 2018. the increase of $ 131,885 in professional fees during the year ended june 30 , 2019 is attributable primarily to increases in accounting and audit fees for preparation and review of our filings with the securities & exchange commission ( “ sec ” ) . general and administrative expenses refers to our salaries , occupancy costs , marketing costs , travel costs , office supplies , telephone expenses , bank charges , fees to process and file documents with the sec , stock transfer fees , investors relations costs , corporate filing fees with the state of nevada , and other administrative expenses . these amounted to $ 1,125,651 for the year ended june 30 , 2019 , compared to $ 696,543 for the year ended june 30 , 2018. story_separator_special_tag total prize money in 2018 reached $ 150.8 million , an increase from 2017 's $ 112 million . the league of legends world championship was 2018 's biggest tournament by live viewership hours on twitch , with 53.8 million hours . it also produced $ 1.9 million in ticket revenues . the overwatch league was the most-watched league by live viewership hours on twitch , generating 79.5 million hours . forbes magazine projects fans of esports will wager $ 23 billion on professional esports events by 2020 and that in 2019 , $ 897.2 million in revenues , or 82 % of the total market , will come from brand investments ( media rights , advertising , and sponsorship ) . this will increase to $ 1.5 billion by 2022 , making up 87 % of total esports revenues . although official competitions have long been a part of video game culture , participation and spectatorship of such events have seen a global surge in popularity over the last few years with the rapid growth of online streaming over the last few years . the advent of online streaming technology has turned esports into a global industry that includes professional players and teams competing in major events that are simultaneously watched in person in stadiums ( which are often sold out ) , and by online viewers ( which regularly exceed 1,000,000 viewers for major tournaments ) . the impact has been so significant , that many video game developers now build features into their games designed to facilitate competition . going concern we have financed operations primarily through the sale of equity securities and short-term debt . until revenues are sufficient to meet our needs , we will continue to attempt to secure financing through equity or debt securities , including the sale of securities in this offering . we continue to incur negative cash flows from operating activities and net losses . we had minimal cash , negative working capital , and negative total equity as of june 30 , 2019 and june 30 , 2018. these factors , among others , raise substantial doubt about our ability to continue as a going concern . the financial statements included in this prospectus do not include any adjustments that might result from the outcome of this uncertainty . in order for us to eliminate substantial doubt about our ability to continue as a going concern , we must achieve profitability , generate positive cash flows from operating activities and obtain the necessary debt or equity funding to meet our projected capital investment requirements . our management 's plans with respect to this uncertainty consist of raising additional capital by issuing debt or equity securities and increasing the sales of our products and services . if we are successful in completing the offering , we believe the net proceeds of the offering together with anticipated growth of the business will be sufficient to eliminate substantial doubt about our ability to continue as a going concern . there can be no assurance , however , that we will be able to complete the offering , raise sufficient additional capital or that revenues will increase rapidly enough to offset operating losses . if we are unable to increase revenues or obtain additional financing , we will be unable to continue the development of our products and services and may have to cease operations . results of operations the following discussion and analysis of our financial condition and results of operations should be read in conjunction with our financial statements and related notes included elsewhere in this report . material changes in line items in our statement of operations for the year ended june 30 , 2019 as compared to the same period last year , are discussed below . 33 year ended june 30 , 2019 compared to the year ended june 30 , 2018 revenue and expenses our operating expenses are classified into several categories : ● directors compensation ● consulting fees ● professional fees ● general and administrative expenses ● stock based compensation directors compensation is comprised of cash and stock option compensation paid to the directors of the company . these amounted to $ 55,000 for the year ended june 30 , 2019 , compared to 99,509 for the year ended june 30 , 2018. the decrease of $ 44,509 in director 's compensation during the year ended june 30 , 2019 is attributable primarily to the change of a board member to an executive officer during the year . consulting fees amounted to $ 790,105 for the year ended june 30 , 2019 , compared to $ 967,618 for the year ended june 30 , 2018. the decrease of $ 177,513 in consulting fees during the year ended june 30 , 2019 is attributable primarily to reduced fees of outside services to support the preparation of sec filings combined with the conversion of consultants to personnel . professional fees consist primarily of our contracted accounting , legal and audit fees . these amounted to $ 343,856 for the year ended june 30 , 2019 , compared to $ 211,971 for the year ended june 30 , 2018. the increase of $ 131,885 in professional fees during the year ended june 30 , 2019 is attributable primarily to increases in accounting and audit fees for preparation and review of our filings with the securities & exchange commission ( “ sec ” ) . general and administrative expenses refers to our salaries , occupancy costs , marketing costs , travel costs , office supplies , telephone expenses , bank charges , fees to process and file documents with the sec , stock transfer fees , investors relations costs , corporate filing fees with the state of nevada , and other administrative expenses . these amounted to $ 1,125,651 for the year ended june 30 , 2019 , compared to $ 696,543 for the year ended june 30 , 2018.

the tinivo trial is being led by the institut gustave roussy in paris under the direction of professor bernard escudier , md , chairman of the genitourinary oncology committee . the phase 1 trial will primarily evaluate the safety of tivozanib in combination with nivolumab at escalating doses of tivozanib and , assuming favorable results , is expected to be followed by a phase 2 expansion at the established combination dose . we expect to receive initial data from the phase 1 portion of the tinivo trial in the first half of 2017 . in february 2016 , eusa pharma ( uk ) ltd. , or eusa , our european licensee , submitted a marketing authorization application , or maa , for tivozanib with the european medicines agency , or ema , for the treatment of rcc . the application was validated in march 2016 , confirming that the submission was complete and that the ema would initiate its review process . eusa received the day 120 list of questions from the committee for medicinal products for human use , or chmp , of the ema in july 2016 , and submitted its responses in november 2016. in january 2017 , eusa received the day 180 list of outstanding issues , or loi , from the chmp , of the ema . the day 180 loi signifies that the maa is not approvable at the present time , and outlines outstanding deficiencies , which are then required to be satisfactorily addressed in an oral explanation and or in writing prior to a final application decision . eusa has informed aveo that it expects to submit written responses to the day 180 loi in april 2017 , and the ema has tentatively scheduled eusa to provide an oral explanation to the chmp in may 2017. we also have a pipeline of monoclonal antibodies , including : ( i ) ficlatuzumab , a potent hepatocyte growth factor , or hgf , antibody that inhibits the activity of the hgf/c-met pathway . ficlatuzumab is in early stage clinical development , with ongoing studies in acute myloid leukemia , or aml , and squamous cell cancer of the head and neck , or scchn . we and our worldwide partner biodesix , inc. , or biodesix , will share equally in all future costs and profits relating to the development of ficlatuzumab ; ( ii ) av-203 , a potent , high-affinity inhibitor of the erbb3 pathway . our partner canbridge life sciences ltd. , or canbridge , will fund manufacturing and clinical development through proof-of-concept in esophageal squamous cell carcinoma ; 65 ( iii ) av-380 , a potent , humanized igg1 inhibitory monoclonal antibody targeting growth differentiating factor-15 , or gdf15 , a divergent member of the tgf-ß family , for the potential treatment or prevention of cachexia . we have licensed av-380 to novartis , which will fund all development , manufacturing and commercialization ; and ( iv ) the av-353 platform , a family of potent inhibitory antibody candidates specific to notch 3 , one of which has demonstrated an ability in preclinical models to potentially reverse disease phenotype for pulmonary arterial hypertension , or pah . we are currently seeking a partner to advance development of the av-353 platform for the potential treatment of pah . going concern we have identified conditions and events that raise substantial doubt about our ability to continue as a going concern . to continue as a going concern , we must secure additional capital to provide us with additional liquidity . we believe that our approximate $ 23.3 million in cash , cash equivalents and marketable securities at december 31 , 2016 , could allow us to fund our planned operations into the fourth quarter of 2017 ; however , additional funds will be needed to extend these operations into 2018 and maintain compliance with our $ 10.0 million financial covenant under our loan agreement with hercules technology ii , l.p. and hercules technology iii , l.p. , affiliates of hercules technology growth , which we collectively refer to as hercules . we expect that , in order to obtain additional capital , we will need to complete public or private financings of debt or equity , and / or receive milestone payments from our partners . we may also seek to procure additional funds through future arrangements with collaborators , licensees or other third parties , and these arrangements would generally require us to relinquish or encumber rights to some of our technologies or drug candidates . moreover , we may not be able receive milestone payments or complete additional financing or enter into such arrangements on acceptable terms , if at all . for more information , refer to “ —liquidity and capital resources—operating capital requirements and going concern ” below and note 1 to our consolidated financial statements included elsewhere in this annual report on form 10-k. strategic partnerships canbridge in march 2016 , which we refer to as the effective date , we entered into a collaboration and license agreement with canbridge , or the canbridge agreement , under which we granted canbridge the exclusive right to develop , manufacture and commercialize av-203 , our proprietary erbb3 ( her3 ) inhibitory antibody , for the diagnosis , treatment and prevention of disease in humans and animals in all countries other than the united states , canada and mexico . under the terms of the canbridge agreement , if we determine to grant a license to any erbb3 inhibitory antibody in the united states , canada or mexico , we are obligated to first negotiate with canbridge for the grant to canbridge of a license to such rights . the parties have both agreed not to directly or indirectly develop or commercialize any other erbb3 inhibitory antibody product during the term of the canbridge agreement other than pursuant to the canbridge agreement . story_separator_special_tag in accordance with the astellas agreement , committed development costs , including the costs of completing certain tivozanib clinical development activities , continue to be shared equally . biogen idec in march 2009 , we entered into an exclusive option and license agreement with biogen idec regarding the development and commercialization of our discovery-stage erbb3-targeted antibodies for the potential treatment and diagnosis of cancer and other diseases in humans outside of north america . in march 2014 , we amended our agreement with biogen idec , and regained worldwide rights to av-203 . pursuant to the amendment , we were obligated to in good faith use reasonable efforts to seek a collaboration partner to fund further development and commercialization of erbb3-targeted antibodies . we satisfied this obligation in march 2016 upon entering into our license agreement with canbridge . we are obligated to pay biogen idec a percentage of milestone payments we receive under the canbridge agreement and single-digit royalty payments on net sales related to the sale of av-203 , up to cumulative maximum amount of $ 50.0 million . kyowa hakko kirin in december 2006 , we entered into a license agreement with khk under which we obtained an exclusive license , with the right to grant sublicenses subject to certain restrictions , to research , develop , manufacture and commercialize tivozanib , pharmaceutical 69 compositions thereof and associated biomarkers . our exclusive license covers all territories in the world except for asia and the middle east , where khk has retained the rights to tivozanib . under the license agreement , we obtained exclusive rights in our territory under certain khk patents , patent applications and know-how related to tivozanib , to research , develop , make , have made , use , import , offer for sale , and sell tivozanib for the diagnosis , prevention and treatment of any and all human diseases and conditions . we and khk each have access to and can benefit from the other party 's clinical data and regulatory filings with respect to tivozanib and biomarkers identified in the conduct of activities under the license agreement . under the license agreement , we are obligated to use commercially reasonable efforts to develop and commercialize tivozanib in our territory , including meeting certain specified diligence goals . prior to the first anniversary of the first post-marketing approval sale of tivozanib in our territory , neither we nor any of our subsidiaries has the right to conduct certain clinical trials of , seek marketing approval for or commercialize any other cancer product that also works by inhibiting the activity of a vegf receptor . we have upfront , milestone and royalty payment obligations to khk under our license agreement . upon entering into the license agreement with khk , we made an upfront payment in the amount of $ 5.0 million . in march 2010 , we made a milestone payment to khk in the amount of $ 10.0 million in connection with the dosing of the first patient in our first phase 3 clinical trial of tivozanib ( tivo-1 ) . in december 2012 , we made a $ 12.0 million milestone payment to khk in connection with the acceptance by the fda of our 2012 new drug application , or nda filing for tivozanib . each milestone under the khk agreement is a one-time only payment obligation . accordingly , we did not owe khk another milestone payment in connection with the dosing of the first patient in our tivo-3 trial , and would not owe a milestone payment to khk if we file an nda with the fda following the completion of our tivo-3 clinical trial . if we obtain approval for tivozanib in the u.s. , we would owe khk a one-time milestone payment of $ 18.0 million , provided that we do not sublicense u.s. rights for tivozanib prior to obtaining a u.s. regulatory approval . if we were to sublicense the u.s. rights , the associated u.s. regulatory milestone would be replaced by a specified percentage of sublicensing revenue , as set forth below . if we sublicense any of our rights to tivozanib to a third party , as we have done with eusa pursuant to our license agreement , the sublicense defines the payment obligations of the sublicensee , which may vary from the milestone and royalty payment obligations under our khk license relating to rights we retain . we are required to pay khk a fixed 30 % of amounts we receive from our sublicensees , including upfront license fees , milestone payments and royalties , but excluding amounts we receive in respect of research and development funding or equity investments , subject to certain limitations . in accordance with the sublicensing provisions of our khk agreement , in 2011 we made a $ 22.5 million payment to khk related to the upfront license payment received under a collaboration and license agreement we entered into with astellas pharmaceuticals , inc. , the termination of which became effective on august 11 , 2014. if tivozanib is approved in the european union , or eu , the $ 4.0 million research and development reimbursement milestone that would be owed to us by eusa would not be subject to a sublicense revenue payment to khk , nor would a research and development reimbursement payment upon an election by eusa to use the data generated from our tivo-3 or tinivo trials for regulatory or commercial purposes , which could be up to $ 20.0 million for the tivo-3 data and up to $ 2.0 million tinivo data . we would , however , owe khk 30 % of other , non-research and development payments we may receive from eusa pursuant to our license agreement , including eu reimbursement approval milestones in up to five specified eu countries , eu marketing approvals for up to three additional indications beyond rcc , marketing approvals in up to three

liquidity and capital resources we have financed our operations to date primarily through the sale of private placements and public offerings of our common stock and preferred stock , license fees , milestone payments and research and development funding from strategic partners , and loan proceeds . in may 2016 , we raised approximately $ 20.3 million in net cash proceeds , consisting of $ 15.4 million in net proceeds from a private placement of 17,642,842 units , each including one share of our common stock and a warrant to purchase one share of our common stock , and $ 4.9 million in net proceeds from additional borrowings under our hercules loan agreement . as of december 31 , 2016 , we had cash , cash equivalents and marketable securities of approximately $ 23.3 million . see “ — operating capital requirements and going concern ” below and note 1 to the consolidated financial statements included elsewhere in this annual report on form 10-k for a further discussion of our liquidity and the conditions and events which raise substantial doubt regarding our ability to continue as a going concern . currently , our funds are invested in a u.s. government money market fund , and corporate debt securities , including commercial paper . the following table sets forth the primary sources and uses of cash for each of the periods set forth below : replace_table_token_14_th our operating activities used cash of $ 31.1 million , $ 18.2 million and $ 54.2 million in 2016 , 2015 and 2014 , respectively . cash used in operations was due principally to our net loss adjusted for non-cash items and changes in working capital .

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 our operations to date primarily through the sale of private placements and public offerings of our common stock and preferred stock , license fees , milestone payments and research and development funding from strategic partners , and loan proceeds . in may 2016 , we raised approximately $ 20.3 million in net cash proceeds , consisting of $ 15.4 million in net proceeds from a private placement of 17,642,842 units , each including one share of our common stock and a warrant to purchase one share of our common stock , and $ 4.9 million in net proceeds from additional borrowings under our hercules loan agreement . as of december 31 , 2016 , we had cash , cash equivalents and marketable securities of approximately $ 23.3 million . see “ — operating capital requirements and going concern ” below and note 1 to the consolidated financial statements included elsewhere in this annual report on form 10-k for a further discussion of our liquidity and the conditions and events which raise substantial doubt regarding our ability to continue as a going concern . currently , our funds are invested in a u.s. government money market fund , and corporate debt securities , including commercial paper . the following table sets forth the primary sources and uses of cash for each of the periods set forth below : replace_table_token_14_th our operating activities used cash of $ 31.1 million , $ 18.2 million and $ 54.2 million in 2016 , 2015 and 2014 , respectively . cash used in operations was due principally to our net loss adjusted for non-cash items and changes in working capital . ``` Suspicious Activity Report : the tinivo trial is being led by the institut gustave roussy in paris under the direction of professor bernard escudier , md , chairman of the genitourinary oncology committee . the phase 1 trial will primarily evaluate the safety of tivozanib in combination with nivolumab at escalating doses of tivozanib and , assuming favorable results , is expected to be followed by a phase 2 expansion at the established combination dose . we expect to receive initial data from the phase 1 portion of the tinivo trial in the first half of 2017 . in february 2016 , eusa pharma ( uk ) ltd. , or eusa , our european licensee , submitted a marketing authorization application , or maa , for tivozanib with the european medicines agency , or ema , for the treatment of rcc . the application was validated in march 2016 , confirming that the submission was complete and that the ema would initiate its review process . eusa received the day 120 list of questions from the committee for medicinal products for human use , or chmp , of the ema in july 2016 , and submitted its responses in november 2016. in january 2017 , eusa received the day 180 list of outstanding issues , or loi , from the chmp , of the ema . the day 180 loi signifies that the maa is not approvable at the present time , and outlines outstanding deficiencies , which are then required to be satisfactorily addressed in an oral explanation and or in writing prior to a final application decision . eusa has informed aveo that it expects to submit written responses to the day 180 loi in april 2017 , and the ema has tentatively scheduled eusa to provide an oral explanation to the chmp in may 2017. we also have a pipeline of monoclonal antibodies , including : ( i ) ficlatuzumab , a potent hepatocyte growth factor , or hgf , antibody that inhibits the activity of the hgf/c-met pathway . ficlatuzumab is in early stage clinical development , with ongoing studies in acute myloid leukemia , or aml , and squamous cell cancer of the head and neck , or scchn . we and our worldwide partner biodesix , inc. , or biodesix , will share equally in all future costs and profits relating to the development of ficlatuzumab ; ( ii ) av-203 , a potent , high-affinity inhibitor of the erbb3 pathway . our partner canbridge life sciences ltd. , or canbridge , will fund manufacturing and clinical development through proof-of-concept in esophageal squamous cell carcinoma ; 65 ( iii ) av-380 , a potent , humanized igg1 inhibitory monoclonal antibody targeting growth differentiating factor-15 , or gdf15 , a divergent member of the tgf-ß family , for the potential treatment or prevention of cachexia . we have licensed av-380 to novartis , which will fund all development , manufacturing and commercialization ; and ( iv ) the av-353 platform , a family of potent inhibitory antibody candidates specific to notch 3 , one of which has demonstrated an ability in preclinical models to potentially reverse disease phenotype for pulmonary arterial hypertension , or pah . we are currently seeking a partner to advance development of the av-353 platform for the potential treatment of pah . going concern we have identified conditions and events that raise substantial doubt about our ability to continue as a going concern . to continue as a going concern , we must secure additional capital to provide us with additional liquidity . we believe that our approximate $ 23.3 million in cash , cash equivalents and marketable securities at december 31 , 2016 , could allow us to fund our planned operations into the fourth quarter of 2017 ; however , additional funds will be needed to extend these operations into 2018 and maintain compliance with our $ 10.0 million financial covenant under our loan agreement with hercules technology ii , l.p. and hercules technology iii , l.p. , affiliates of hercules technology growth , which we collectively refer to as hercules . we expect that , in order to obtain additional capital , we will need to complete public or private financings of debt or equity , and / or receive milestone payments from our partners . we may also seek to procure additional funds through future arrangements with collaborators , licensees or other third parties , and these arrangements would generally require us to relinquish or encumber rights to some of our technologies or drug candidates . moreover , we may not be able receive milestone payments or complete additional financing or enter into such arrangements on acceptable terms , if at all . for more information , refer to “ —liquidity and capital resources—operating capital requirements and going concern ” below and note 1 to our consolidated financial statements included elsewhere in this annual report on form 10-k. strategic partnerships canbridge in march 2016 , which we refer to as the effective date , we entered into a collaboration and license agreement with canbridge , or the canbridge agreement , under which we granted canbridge the exclusive right to develop , manufacture and commercialize av-203 , our proprietary erbb3 ( her3 ) inhibitory antibody , for the diagnosis , treatment and prevention of disease in humans and animals in all countries other than the united states , canada and mexico . under the terms of the canbridge agreement , if we determine to grant a license to any erbb3 inhibitory antibody in the united states , canada or mexico , we are obligated to first negotiate with canbridge for the grant to canbridge of a license to such rights . the parties have both agreed not to directly or indirectly develop or commercialize any other erbb3 inhibitory antibody product during the term of the canbridge agreement other than pursuant to the canbridge agreement . story_separator_special_tag in accordance with the astellas agreement , committed development costs , including the costs of completing certain tivozanib clinical development activities , continue to be shared equally . biogen idec in march 2009 , we entered into an exclusive option and license agreement with biogen idec regarding the development and commercialization of our discovery-stage erbb3-targeted antibodies for the potential treatment and diagnosis of cancer and other diseases in humans outside of north america . in march 2014 , we amended our agreement with biogen idec , and regained worldwide rights to av-203 . pursuant to the amendment , we were obligated to in good faith use reasonable efforts to seek a collaboration partner to fund further development and commercialization of erbb3-targeted antibodies . we satisfied this obligation in march 2016 upon entering into our license agreement with canbridge . we are obligated to pay biogen idec a percentage of milestone payments we receive under the canbridge agreement and single-digit royalty payments on net sales related to the sale of av-203 , up to cumulative maximum amount of $ 50.0 million . kyowa hakko kirin in december 2006 , we entered into a license agreement with khk under which we obtained an exclusive license , with the right to grant sublicenses subject to certain restrictions , to research , develop , manufacture and commercialize tivozanib , pharmaceutical 69 compositions thereof and associated biomarkers . our exclusive license covers all territories in the world except for asia and the middle east , where khk has retained the rights to tivozanib . under the license agreement , we obtained exclusive rights in our territory under certain khk patents , patent applications and know-how related to tivozanib , to research , develop , make , have made , use , import , offer for sale , and sell tivozanib for the diagnosis , prevention and treatment of any and all human diseases and conditions . we and khk each have access to and can benefit from the other party 's clinical data and regulatory filings with respect to tivozanib and biomarkers identified in the conduct of activities under the license agreement . under the license agreement , we are obligated to use commercially reasonable efforts to develop and commercialize tivozanib in our territory , including meeting certain specified diligence goals . prior to the first anniversary of the first post-marketing approval sale of tivozanib in our territory , neither we nor any of our subsidiaries has the right to conduct certain clinical trials of , seek marketing approval for or commercialize any other cancer product that also works by inhibiting the activity of a vegf receptor . we have upfront , milestone and royalty payment obligations to khk under our license agreement . upon entering into the license agreement with khk , we made an upfront payment in the amount of $ 5.0 million . in march 2010 , we made a milestone payment to khk in the amount of $ 10.0 million in connection with the dosing of the first patient in our first phase 3 clinical trial of tivozanib ( tivo-1 ) . in december 2012 , we made a $ 12.0 million milestone payment to khk in connection with the acceptance by the fda of our 2012 new drug application , or nda filing for tivozanib . each milestone under the khk agreement is a one-time only payment obligation . accordingly , we did not owe khk another milestone payment in connection with the dosing of the first patient in our tivo-3 trial , and would not owe a milestone payment to khk if we file an nda with the fda following the completion of our tivo-3 clinical trial . if we obtain approval for tivozanib in the u.s. , we would owe khk a one-time milestone payment of $ 18.0 million , provided that we do not sublicense u.s. rights for tivozanib prior to obtaining a u.s. regulatory approval . if we were to sublicense the u.s. rights , the associated u.s. regulatory milestone would be replaced by a specified percentage of sublicensing revenue , as set forth below . if we sublicense any of our rights to tivozanib to a third party , as we have done with eusa pursuant to our license agreement , the sublicense defines the payment obligations of the sublicensee , which may vary from the milestone and royalty payment obligations under our khk license relating to rights we retain . we are required to pay khk a fixed 30 % of amounts we receive from our sublicensees , including upfront license fees , milestone payments and royalties , but excluding amounts we receive in respect of research and development funding or equity investments , subject to certain limitations . in accordance with the sublicensing provisions of our khk agreement , in 2011 we made a $ 22.5 million payment to khk related to the upfront license payment received under a collaboration and license agreement we entered into with astellas pharmaceuticals , inc. , the termination of which became effective on august 11 , 2014. if tivozanib is approved in the european union , or eu , the $ 4.0 million research and development reimbursement milestone that would be owed to us by eusa would not be subject to a sublicense revenue payment to khk , nor would a research and development reimbursement payment upon an election by eusa to use the data generated from our tivo-3 or tinivo trials for regulatory or commercial purposes , which could be up to $ 20.0 million for the tivo-3 data and up to $ 2.0 million tinivo data . we would , however , owe khk 30 % of other , non-research and development payments we may receive from eusa pursuant to our license agreement , including eu reimbursement approval milestones in up to five specified eu countries , eu marketing approvals for up to three additional indications beyond rcc , marketing approvals in up to three

one of the company 's strategic objectives is to harness the power of our global platform by improving effectiveness and efficiency , and allocating our resources to the opportunities that will best benefit clients and our business . consistent with this objective , business optimization charges of $ 16.2 million were recorded in the fourth quarter of 2015 , including $ 12.2 million of staff severance costs recorded in employee compensation associated with a business transformation initiative . this is the first part of a broad program that will continue through 2016 focused on transforming several key business support functions to become more effective and efficient and will leverage shared service centers , outsourcing , automation of key processes and optimization of the company 's office footprint . incremental implementation costs in 2016 are estimated to be up to $ 85 million and the initiative is expected to generate ongoing cost savings that will more than fully offset the implementation expense within a three year time frame after completion . the investment management industry is subject to extensive levels of ongoing regulatory oversight and examination . in the u.s. , u.k. , and other jurisdictions in which the company operates , governmental authorities regularly make inquiries , conduct investigations and administer examinations with respect to compliance with applicable laws and regulations . general and administrative expenses for the fourth quarter of 2015 include a provision of $ 12.6 million pertaining to regulatory investigations and related legal fees of $ 0.5 million . this includes $ 7.6 million associated with our private equity business . in the first quarter of 2015 , the company acquired deutsche bank 's u.s. commodity u.s. etf business for a purchase price composed of contingent consideration payable in future periods . during 2015 , changes in the fair value of the contingent consideration liability generated a gain of $ 27.1 million , which was recorded in other gains and losses , net . during the fourth quarter of 2015 the company announced that it intends to increase its ownership of religare invesco asset management company , our joint venture in india , from 49 % to 100 % . the acquisition of this controlling interest is expected to close in early 2016 , pending regulatory approvals . regulators in various jurisdictions have proposed or are exploring changes to the manner in which fund distributers are compensated for the services they provide . the u.k. financial conduct authority ( fca ) implemented its retail distribution review ( “ rdr ” ) , which is reshaping the manner in which retail investment funds are sold in the u.k. by changing how retail clients pay for investment advice given in respect of all retail investment products . invesco prepared for the rdr implementation by offering investment funds to u.k. investors which are priced at a reduced gross management fee , but which in turn do not result in the payment by the company of a distribution fee to the intermediary . these changes have not had a significant impact to date on net revenues as investors move into these offerings . other countries have announced similar distribution fee reviews . in the u.s. , the sec has previously proposed and may repurpose significant changes to rule 12b-1 , and may propose other regulatory changes impacting distribution of investment funds . presentation of management 's discussion and analysis of financial condition and results of operations impact of consolidated sponsored investment products and consolidated investment products the company provides investment management services to , and has transactions with , various private equity , real estate , fund-of-funds , collateralized loan obligation products ( clos ) , and other investment entities sponsored by the company for the investment of client assets in the normal course of business . the company serves as the investment manager , making day-to-day investment decisions concerning the assets of the products . the company is required to consolidate certain managed funds from time-to-time , as discussed more fully in item 8 , financial statements and supplementary data , note 1 `` accounting policies basis of accounting and consolidation . `` 28 investment products that are consolidated are referred to in this report as either consolidated sponsored investment products ( csip ) , which generally include investment products in which invesco holds the majority of the voting rights or partnerships in which the company has substantive equity at risk but in which the other investors lack removal or liquidation rights , or consolidated investment products ( cip ) , which includes consolidated nominally-held investment products . this distinction is important , as it differentiates the company 's economic risk associated with each type of consolidated managed fund . the company 's economic risk with respect to each investment in a csip and a cip is limited to its equity ownership and any uncollected management and performance fees . the presentation of the grossed up gains and losses arising from the consolidation of nominally-held cip do not have a significant impact on the company 's results of operations , liquidity , or capital resources . gains and losses arising from majority-held csip could have a significant impact on the company 's results of operations , as the company has greater economic risk associated with its investment . see item 8 , financial statements and supplementary data , - note 1 `` accounting policies , `` note 19 , `` consolidated sponsored investment products , `` and note 20 , `` consolidated investment products , `` for additional information regarding the impact of consolidation of managed funds . the majority of the company 's cip balances are clo-related . the collateral assets of the clos are held solely to satisfy the obligations of the clos . story_separator_special_tag during the year ended december 31 , 2013 , foreign exchange rate changes decreased aum by $ 1.9 billion , driven by the weakening of the canadian dollar and the japanese yen relative to the u.s. dollar , partially offset by the strengthening of the pound sterling and the euro relative to the u.s. dollar . revenue yield net revenue yield on aum increased 0.1 basis points to 45.8 basis points in the year ended december 31 , 2015 from the year ended december 31 , 2014 level of 45.7 basis points ( december 31 , 2013 : 44.8 basis points ) . excluding performance fees , the net revenue yield decreased 0.2 basis points to 44.6 basis points in the year ended december 31 , 2015 from the year ended december 31 , 2014 level of 44.8 basis points ( december 31 , 2013 : 43.9 basis points ) . changes in our aum mix can significantly impact our net revenue yield . for example , on an asset class basis , our equity , alternative , and balanced aum generally earn a higher net revenue rate than money market and fixed income aum . the combination of average equity , average alternative and average balanced aum equated to 67.7 % of total average aum in 2015 , very similar to the 67.6 % in 2014 . this very similar asset class mix correlates with very little change in net revenue yield in 2015 when compared to 2014 . the tables that follow present aum by total aum and passive aum . passive aum generally earn a lower effective fee rate than active asset classes . at december 31 , 2015 , passive aum were $ 139.1 billion , representing 17.9 % of total aum at that date ; whereas at december 31 , 2014 , passive aum were $ 141.4 billion , representing 17.8 % of our total aum at that date . the decrease in passive aum during 2015 is driven by outflows from the invesco powershares qqq fund , and is offset by long-term net inflows . the invesco powershares qqq fund aum increased to $ 42.9 billion at december 31 , 2015 compared to $ 40.7 billion at december 31 , 2014 ( $ 45.7 billion at december 31 , 2013 ) . the revenue yield for invesco on this product is less than 1 basis point , reimbursing invesco for the portfolio trading services provided to the fund . in the year ended december 31 , 2015 , the net revenue yield on passive aum was 14.5 basis points compared to 13.0 basis points in the year ended december 31 , 2014 , an increase of 1.5 basis points , due to changes in mix of passive aum . gross revenue yield on aum decreased 0.5 basis points to 65.0 basis points in the year ended december 31 , 2015 from the year ended december 31 , 2014 level of 65.5 basis points ( december 31 , 2013 : 64.4 basis points ) . management does not consider gross revenue yield , the most comparable u.s. gaap-based measure to net revenue yield , to be a meaningful effective fee rate measure for the reasons outlined in footnote 2 to the changes in aum table above . see “ schedule of non-gaap information ” for a reconciliation of operating revenues ( gross revenues ) to net revenues . 34 changes in our aum by channel , asset class , and client domicile , and average aum by asset class , are presented below : total aum by channel ( 1,2 ) replace_table_token_10_th see accompanying notes immediately following these aum tables . 35 passive aum by channel ( 2 ) replace_table_token_11_th see accompanying notes immediately following these aum tables . 36 total aum by asset class ( 1,3 ) replace_table_token_12_th see accompanying notes immediately following these aum tables . 37 passive aum by asset class ( 3 ) replace_table_token_13_th see accompanying notes immediately following these aum tables . 38 total aum by client domicile ( 1,6 ) replace_table_token_14_th see accompanying notes immediately following these aum tables . 39 passive aum by client domicile ( 6 ) replace_table_token_15_th ( 1 ) on december 31 , 2013 , the company completed the sale of atlantic trust . all aum amounts quoted in the tables exclude the aum of the discontinued operations , atlantic trust . ( 2 ) channel refers to the internal distribution channel from which the aum originated . retail aum represents aum distributed by the company 's retail sales team . institutional aum represents aum distributed by our institutional sales team . this aggregation is viewed as a proxy for presenting aum in the retail and institutional markets in which the company operates . ( 3 ) asset classes are descriptive groupings of aum by common type of underlying investments . ( 4 ) see item 1 , “ business - investment management capabilities ” for a description of the investment objectives included within the alternatives asset class . ( 5 ) ending money market aum includes $ 58.5 billion in institutional money market aum and $ 6.1 billion in retail money market aum . ( 6 ) client domicile disclosure groups aum by the domicile of the underlying clients . 40 results of operations for the years ended december 31 , 2015 compared to december 31 , 2014 compared to december 31 , 2013 to assist in the comparisons , the discussion that follows will separate the impact of cip from the overall consolidated results of operations . the impact is illustrated in the tables immediately below by a column which shows the dollar-value change in the consolidated figures , as caused by the consolidation of cip . for example , the impact of cip on total operating revenues for the year ended december 31 , 2015 was a reduction of $ 39.2 million . this indicates that the consolidation of cip reduced consolidated

: cash provided of $ 1,395.7 million ) . excluding the impact of cip , financing activities used cash of $ 488.9 million in the year ended december 31 , 2015 ( 2014 : cash used of $ 533.2 million ) . financing cash outflows during the year ended december 31 , 2015 included the purchase of shares through market transactions totaling $ 548.8 million ( 2014 : $ 269.6 million ) $ 454.5 million of dividend payments for the dividends declared in january , april , july and november 2015 ( 2014 : dividends paid of $ 424.0 million ) , and payment of $ 11.3 million of contingent consideration related to the deutsche bank management contract purchase ( 2014 : zero ) . other financing cash inflows in 2015 include cash proceeds of $ 495.5 million received upon the completion of the issuance of senior notes with aggregate principal amounts of $ 500 million at 3.75 % due january 15 , 2026 , net cash of $ 5.3 million invested into csip by third-party investors ( 2014 : $ 161.1 million ) , cash received from the exercise of options of $ 3.7 million ( 2014 : $ 11.0 million ) and excess tax benefits from share-based compensation of $ 21.2 million ( 2014 : $ 24.0 million ) . financing cash inflows during 2013 included cash proceeds of $ 981.5 million received upon the completion of the issuance of senior notes with aggregate principal amounts of $ 600.0 million at 4.000 % due january 30 , 2024 and $ 400.0 million at 5.375 % due november 30 , 2043. the proceeds were used , in part , to repay the outstanding balance of $ 586.5 million on the 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. ```: cash provided of $ 1,395.7 million ) . excluding the impact of cip , financing activities used cash of $ 488.9 million in the year ended december 31 , 2015 ( 2014 : cash used of $ 533.2 million ) . financing cash outflows during the year ended december 31 , 2015 included the purchase of shares through market transactions totaling $ 548.8 million ( 2014 : $ 269.6 million ) $ 454.5 million of dividend payments for the dividends declared in january , april , july and november 2015 ( 2014 : dividends paid of $ 424.0 million ) , and payment of $ 11.3 million of contingent consideration related to the deutsche bank management contract purchase ( 2014 : zero ) . other financing cash inflows in 2015 include cash proceeds of $ 495.5 million received upon the completion of the issuance of senior notes with aggregate principal amounts of $ 500 million at 3.75 % due january 15 , 2026 , net cash of $ 5.3 million invested into csip by third-party investors ( 2014 : $ 161.1 million ) , cash received from the exercise of options of $ 3.7 million ( 2014 : $ 11.0 million ) and excess tax benefits from share-based compensation of $ 21.2 million ( 2014 : $ 24.0 million ) . financing cash inflows during 2013 included cash proceeds of $ 981.5 million received upon the completion of the issuance of senior notes with aggregate principal amounts of $ 600.0 million at 4.000 % due january 30 , 2024 and $ 400.0 million at 5.375 % due november 30 , 2043. the proceeds were used , in part , to repay the outstanding balance of $ 586.5 million on the credit facility . ``` Suspicious Activity Report : one of the company 's strategic objectives is to harness the power of our global platform by improving effectiveness and efficiency , and allocating our resources to the opportunities that will best benefit clients and our business . consistent with this objective , business optimization charges of $ 16.2 million were recorded in the fourth quarter of 2015 , including $ 12.2 million of staff severance costs recorded in employee compensation associated with a business transformation initiative . this is the first part of a broad program that will continue through 2016 focused on transforming several key business support functions to become more effective and efficient and will leverage shared service centers , outsourcing , automation of key processes and optimization of the company 's office footprint . incremental implementation costs in 2016 are estimated to be up to $ 85 million and the initiative is expected to generate ongoing cost savings that will more than fully offset the implementation expense within a three year time frame after completion . the investment management industry is subject to extensive levels of ongoing regulatory oversight and examination . in the u.s. , u.k. , and other jurisdictions in which the company operates , governmental authorities regularly make inquiries , conduct investigations and administer examinations with respect to compliance with applicable laws and regulations . general and administrative expenses for the fourth quarter of 2015 include a provision of $ 12.6 million pertaining to regulatory investigations and related legal fees of $ 0.5 million . this includes $ 7.6 million associated with our private equity business . in the first quarter of 2015 , the company acquired deutsche bank 's u.s. commodity u.s. etf business for a purchase price composed of contingent consideration payable in future periods . during 2015 , changes in the fair value of the contingent consideration liability generated a gain of $ 27.1 million , which was recorded in other gains and losses , net . during the fourth quarter of 2015 the company announced that it intends to increase its ownership of religare invesco asset management company , our joint venture in india , from 49 % to 100 % . the acquisition of this controlling interest is expected to close in early 2016 , pending regulatory approvals . regulators in various jurisdictions have proposed or are exploring changes to the manner in which fund distributers are compensated for the services they provide . the u.k. financial conduct authority ( fca ) implemented its retail distribution review ( “ rdr ” ) , which is reshaping the manner in which retail investment funds are sold in the u.k. by changing how retail clients pay for investment advice given in respect of all retail investment products . invesco prepared for the rdr implementation by offering investment funds to u.k. investors which are priced at a reduced gross management fee , but which in turn do not result in the payment by the company of a distribution fee to the intermediary . these changes have not had a significant impact to date on net revenues as investors move into these offerings . other countries have announced similar distribution fee reviews . in the u.s. , the sec has previously proposed and may repurpose significant changes to rule 12b-1 , and may propose other regulatory changes impacting distribution of investment funds . presentation of management 's discussion and analysis of financial condition and results of operations impact of consolidated sponsored investment products and consolidated investment products the company provides investment management services to , and has transactions with , various private equity , real estate , fund-of-funds , collateralized loan obligation products ( clos ) , and other investment entities sponsored by the company for the investment of client assets in the normal course of business . the company serves as the investment manager , making day-to-day investment decisions concerning the assets of the products . the company is required to consolidate certain managed funds from time-to-time , as discussed more fully in item 8 , financial statements and supplementary data , note 1 `` accounting policies basis of accounting and consolidation . `` 28 investment products that are consolidated are referred to in this report as either consolidated sponsored investment products ( csip ) , which generally include investment products in which invesco holds the majority of the voting rights or partnerships in which the company has substantive equity at risk but in which the other investors lack removal or liquidation rights , or consolidated investment products ( cip ) , which includes consolidated nominally-held investment products . this distinction is important , as it differentiates the company 's economic risk associated with each type of consolidated managed fund . the company 's economic risk with respect to each investment in a csip and a cip is limited to its equity ownership and any uncollected management and performance fees . the presentation of the grossed up gains and losses arising from the consolidation of nominally-held cip do not have a significant impact on the company 's results of operations , liquidity , or capital resources . gains and losses arising from majority-held csip could have a significant impact on the company 's results of operations , as the company has greater economic risk associated with its investment . see item 8 , financial statements and supplementary data , - note 1 `` accounting policies , `` note 19 , `` consolidated sponsored investment products , `` and note 20 , `` consolidated investment products , `` for additional information regarding the impact of consolidation of managed funds . the majority of the company 's cip balances are clo-related . the collateral assets of the clos are held solely to satisfy the obligations of the clos . story_separator_special_tag during the year ended december 31 , 2013 , foreign exchange rate changes decreased aum by $ 1.9 billion , driven by the weakening of the canadian dollar and the japanese yen relative to the u.s. dollar , partially offset by the strengthening of the pound sterling and the euro relative to the u.s. dollar . revenue yield net revenue yield on aum increased 0.1 basis points to 45.8 basis points in the year ended december 31 , 2015 from the year ended december 31 , 2014 level of 45.7 basis points ( december 31 , 2013 : 44.8 basis points ) . excluding performance fees , the net revenue yield decreased 0.2 basis points to 44.6 basis points in the year ended december 31 , 2015 from the year ended december 31 , 2014 level of 44.8 basis points ( december 31 , 2013 : 43.9 basis points ) . changes in our aum mix can significantly impact our net revenue yield . for example , on an asset class basis , our equity , alternative , and balanced aum generally earn a higher net revenue rate than money market and fixed income aum . the combination of average equity , average alternative and average balanced aum equated to 67.7 % of total average aum in 2015 , very similar to the 67.6 % in 2014 . this very similar asset class mix correlates with very little change in net revenue yield in 2015 when compared to 2014 . the tables that follow present aum by total aum and passive aum . passive aum generally earn a lower effective fee rate than active asset classes . at december 31 , 2015 , passive aum were $ 139.1 billion , representing 17.9 % of total aum at that date ; whereas at december 31 , 2014 , passive aum were $ 141.4 billion , representing 17.8 % of our total aum at that date . the decrease in passive aum during 2015 is driven by outflows from the invesco powershares qqq fund , and is offset by long-term net inflows . the invesco powershares qqq fund aum increased to $ 42.9 billion at december 31 , 2015 compared to $ 40.7 billion at december 31 , 2014 ( $ 45.7 billion at december 31 , 2013 ) . the revenue yield for invesco on this product is less than 1 basis point , reimbursing invesco for the portfolio trading services provided to the fund . in the year ended december 31 , 2015 , the net revenue yield on passive aum was 14.5 basis points compared to 13.0 basis points in the year ended december 31 , 2014 , an increase of 1.5 basis points , due to changes in mix of passive aum . gross revenue yield on aum decreased 0.5 basis points to 65.0 basis points in the year ended december 31 , 2015 from the year ended december 31 , 2014 level of 65.5 basis points ( december 31 , 2013 : 64.4 basis points ) . management does not consider gross revenue yield , the most comparable u.s. gaap-based measure to net revenue yield , to be a meaningful effective fee rate measure for the reasons outlined in footnote 2 to the changes in aum table above . see “ schedule of non-gaap information ” for a reconciliation of operating revenues ( gross revenues ) to net revenues . 34 changes in our aum by channel , asset class , and client domicile , and average aum by asset class , are presented below : total aum by channel ( 1,2 ) replace_table_token_10_th see accompanying notes immediately following these aum tables . 35 passive aum by channel ( 2 ) replace_table_token_11_th see accompanying notes immediately following these aum tables . 36 total aum by asset class ( 1,3 ) replace_table_token_12_th see accompanying notes immediately following these aum tables . 37 passive aum by asset class ( 3 ) replace_table_token_13_th see accompanying notes immediately following these aum tables . 38 total aum by client domicile ( 1,6 ) replace_table_token_14_th see accompanying notes immediately following these aum tables . 39 passive aum by client domicile ( 6 ) replace_table_token_15_th ( 1 ) on december 31 , 2013 , the company completed the sale of atlantic trust . all aum amounts quoted in the tables exclude the aum of the discontinued operations , atlantic trust . ( 2 ) channel refers to the internal distribution channel from which the aum originated . retail aum represents aum distributed by the company 's retail sales team . institutional aum represents aum distributed by our institutional sales team . this aggregation is viewed as a proxy for presenting aum in the retail and institutional markets in which the company operates . ( 3 ) asset classes are descriptive groupings of aum by common type of underlying investments . ( 4 ) see item 1 , “ business - investment management capabilities ” for a description of the investment objectives included within the alternatives asset class . ( 5 ) ending money market aum includes $ 58.5 billion in institutional money market aum and $ 6.1 billion in retail money market aum . ( 6 ) client domicile disclosure groups aum by the domicile of the underlying clients . 40 results of operations for the years ended december 31 , 2015 compared to december 31 , 2014 compared to december 31 , 2013 to assist in the comparisons , the discussion that follows will separate the impact of cip from the overall consolidated results of operations . the impact is illustrated in the tables immediately below by a column which shows the dollar-value change in the consolidated figures , as caused by the consolidation of cip . for example , the impact of cip on total operating revenues for the year ended december 31 , 2015 was a reduction of $ 39.2 million . this indicates that the consolidation of cip reduced consolidated

replace_table_token_5_th 1 yield on total interest-earning assets minus cost of total interest-bearing liabilities 2 net interest income divided by average interest-earning assets 26 rate/volume analysis the following table illustrates the impact of changes in the volume of interest-earning assets and interest-bearing liabilities and interest rates on net interest income for the periods indicated . the change in interest not due solely to volume or rate has been allocated in proportion to the absolute dollar amounts of the change in each . rate/volume analysis of net interest income twelve months ended december 31 , 2015 vs. december 31 , 2014 due to changes in twelve months ended december 31 , 2014 vs. december 31 , 2013 due to changes in ( amounts in thousands ) volume rate net volume rate net interest income loans , including loans held-for-sale $ 9,624 $ ( 450 ) $ 9,174 $ 8,750 $ ( 1,718 ) $ 7,032 securities – taxable 417 275 692 301 ( 156 ) 145 securities – non-taxable 258 ( 4 ) 254 ( 1,381 ) ( 172 ) ( 1,553 ) other earning assets ( 71 ) 183 112 84 ( 29 ) 55 total 10,228 4 10,232 7,754 ( 2,075 ) 5,679 interest expense interest-bearing deposits 1,390 ( 288 ) 1,102 1,803 ( 1,011 ) 792 other borrowed funds 1,571 ( 907 ) 664 450 ( 402 ) 48 total 2,961 ( 1,195 ) 1,766 2,253 ( 1,413 ) 840 increase in net interest income $ 7,267 $ 1,199 $ 8,466 $ 5,501 $ ( 662 ) $ 4,839 2015 v. 2014 net interest income for the twelve months ended december 31 , 2015 was $ 30.8 million , an increase of $ 8.5 million , or 38.0 % , compared to $ 22.3 million for the twelve months ended december 31 , 2014 . net interest margin was 2.85 % for the twelve months ended december 31 , 2015 compared to 2.65 % for the twelve months ended december 31 , 2014 . the increases in net interest income and net interest margin were primarily driven by an increase in average interest-earning assets of $ 236.6 million , or 28.1 % , for the twelve months ended december 31 , 2015 compared to the twelve months ended december 31 , 2014 , as well as changes in the composition of the company 's balance sheet , which resulted in an increase in the yield earned on interest-earning assets and a decrease in the cost of funds related to interest-bearing liabilities . the increase in net interest income for the twelve months ended december 31 , 2015 , compared to the twelve months ended december 31 , 2014 , was also due to a $ 10.2 million , or 32.8 % , increase in total interest income to $ 41.4 million for the twelve months ended december 31 , 2015 compared to $ 31.2 million for the twelve months ended december 31 , 2014 . the increase in total interest income was partially offset by a $ 1.8 million , or 19.8 % , increase in total interest expense to $ 10.7 million for the twelve months ended december 31 , 2015 compared to $ 8.9 million for the twelve months ended december 31 , 2014 . the increase in total interest income was due primarily to an increase in interest earned on loans resulting from an increase of $ 222.3 million , or 35.2 % , in the average balance of loans , including loans held-for-sale , as well as an increase in interest earned on securities resulting from an increase of $ 28.1 million , or 18.3 % , in the average balance of securities for the twelve months ended december 31 , 2015 compared to the twelve months ended december 31 , 2014 . the increase in total interest income was also due to a 21 basis point ( “ bp ” ) increase in the yield earned on the securities portfolio , partially offset by a decline in the yield earned on loans , including loans held-for-sale , of 7 bps . the increase in total interest expense was driven primarily by an increase in interest expense related to interest-bearing deposits as a result of a $ 131.1 million , or 18.5 % , increase in the average balance of interest-bearing deposits for the twelve months ended december 31 , 2015 compared to the twelve months ended december 31 , 2014 , partially offset by a decline of 4 bps in the cost of funds related to these deposits . interest expense related to other borrowed funds also contributed to the increase in total interest expense , due to a $ 94.3 million , or 207.5 % , increase in the average balance of other borrowed funds for the twelve months ended december 31 , 2015 compared to the twelve months ended december 31 , 2014 , partially offset by a decline of 142 bps in the cost of other borrowed funds . 27 2014 v. 2013 net interest income for the twelve months ended december 31 , 2014 was $ 22.3 million , an increase of $ 4.8 million , or 27.7 % , compared to $ 17.4 million for the twelve months ended december 31 , 2013 . net interest margin was 2.65 % for the twelve months ended december 31 , 2014 compared to 2.67 % for the twelve months ended december 31 , 2013 . the increase in net interest income was primarily driven by an increase in average interest-earning assets of $ 187.2 million , or 28.6 % , for the twelve months ended december 31 , 2014 compared to the twelve months ended december 31 , 2013 . story_separator_special_tag as of december 31 , 2015 and 2014 , all of the company 's investment securities were classified as available-for-sale . the carrying values of available-for-sale investment securities are adjusted for unrealized gains or losses as a valuation allowance and any gain or loss is reported on an after-tax basis as a component of other comprehensive income ( loss ) . the company periodically evaluates each available-for-sale security in an unrealized loss position to determine if the impairment is temporary or other-than-temporary . as of december 31 , 2015 , the unrealized losses in the company 's investment securities portfolio were due solely to interest rate changes . the company has the ability and intent to hold all investment securities with identified impairments resulting from interest rate changes to the earlier of the forecasted recovery or the maturity of the underlying investment security . as of december 31 , 2015 , the company did not have any investment securities of a single issuer , which were not governmental or government-sponsored , that exceeded 10 % of shareholders ' equity . the following tables present the amortized cost and approximate fair value of the company 's investment securities portfolio by security type as of the end of the last five years . replace_table_token_14_th 34 the approximate fair value of investment securities available-for-sale increased $ 76.2 million , or 55.4 % , to $ 213.7 million as of december 31 , 2015 compared to $ 137.5 million as of december 31 , 2014 . the increase was due primarily to increases of $ 24.2 million in u.s. government-sponsored agencies , $ 21.5 million in municipal securities , $ 14.4 million in asset-backed securities and $ 19.1 million in corporate securities , partially offset by a decrease of $ 4.0 million in mortgage-backed securities . during the twelve months ended december 31 , 2015 , the company deployed funds generated through deposit growth to purchase additional securities to further diversify the securities portfolio and enhance net interest income , while supporting liquidity and interest rate risk management . investment maturities the following table summarizes the contractual maturity schedule of the company 's investment securities at their amortized cost and their weighted average yields at december 31 , 2015 . 1 year or less more than 1 year to 5 years more than 5 years to 10 years more than 10 years total ( dollars in thousands ) amortized cost wtd . avg . yield amortized cost wtd . avg . yield amortized cost wtd . avg . yield amortized cost wtd . avg . yield amortized cost wtd . avg . yield securities available for sale : u.s. government-sponsored agencies $ — — % $ 487 3.75 % $ 14,198 2.18 % $ 23,408 2.34 % $ 38,093 2.30 % municipal securities — — % — — % 1,160 2.50 % 19,931 3.10 % 21,091 3.07 % mortgage-backed securities — — % — — % 44,433 1.60 % 69,515 2.14 % 113,948 1.93 % asset-backed securities — — % — — % 5,083 2.27 % 14,361 2.60 % 19,444 2.51 % corporate securities — — % — — % 10,000 3.50 % 10,000 4.00 % 20,000 3.75 % total securities available for sale 1 $ — — % $ 487 3.75 % $ 74,874 2.02 % $ 137,215 2.50 % $ 212,576 2.33 % _ 1 a $ 3.0 million investment security has been excluded from this table because the security does not have a maturity date . deposits the following table presents the composition of the company 's deposit base as of the end of the last five years . replace_table_token_15_th total deposits increased $ 197.5 million , or 26.0 % , to $ 956.1 million as of december 31 , 2015 as compared to $ 758.6 million as of december 31 , 2014 . this increase was due primarily to increases of $ 109.5 million , or 30.3 % , in certificates of deposit , $ 74.7 million , or 28.0 % , in money market accounts , $ 10.0 million , or 13.5 % , in interest-bearing demand deposits , $ 2.0 million , or 9.8 % , in regular savings accounts , and $ 1.9 million , or 8.8 % , in noninterest-bearing deposits . 35 the following tables present contractual interest rates paid on time deposits , their scheduled maturities , and the scheduled maturities for time deposits $ 100,000 or greater . time deposits replace_table_token_16_th time deposit maturities at december 31 , 2015 replace_table_token_17_th time deposit maturities of $ 100,000 or greater replace_table_token_18_th federal home loan bank advances although deposits are the primary source of funds for our lending and investment activities and for general business purposes , we may obtain advances from the fhlb as an alternative to retail and commercial deposits . the following table is a summary of fhlb borrowings for the periods indicated . replace_table_token_19_th 36 story_separator_special_tag critical accounting policies and estimates allowance for loan losses . we believe the allowance for loan losses is the critical accounting policy that requires the most significant judgments and assumptions used in the preparation of our consolidated financial statements . an estimate of potential losses inherent in the loan portfolio is determined and an allowance for those losses is established by considering factors including historical loss rates , expected cash flows , and estimated collateral values . the allowance for loan losses represents management 's best estimate of losses inherent in the existing loan portfolio . the allowance for loan losses is increased by the provision for loan losses charged to expense and reduced by loans charged off , net of recoveries . management evaluates the allowance for loan losses quarterly . if the underlying assumptions later prove to be inaccurate based on subsequent loss evaluations , the allowance for loan losses is adjusted . 38 management estimates the appropriate level of allowance for loan losses by separately evaluating impaired and non-impaired loans . a specific

liquidity and capital resources while the company believes it has sufficient liquidity and capital resources to meet its cash and capital expenditure requirements for at least the next twelve months , including any cash dividends it may pay , the company intends to continue pursuing its growth strategy , which may require additional capital . if the company is unable to secure such capital at favorable terms , its ability to execute its growth strategy could be adversely affected . liquidity management is the process used by the company to manage the continuing flow of funds necessary to meet its financial commitments on a timely basis and at a reasonable cost while also maintaining safe and sound operations . liquidity , represented by cash and investment securities , is a product of the company 's operating , investing and financing activities . the primary sources of funds are deposits , principal and interest payments on loans and investment securities , maturing loans and investment securities , access to wholesale funding sources and collateralized borrowings . while scheduled payments and maturities of loans and investment securities are relatively predictable sources of funds , deposit flows are greatly influenced by interest rates , general economic conditions and competition . therefore , the company supplements deposit growth and enhances interest rate risk management through borrowings , which are generally advances from the fhlb . the company maintains cash and investment securities that qualify as liquid assets to maintain adequate liquidity to ensure safe and sound operations and meet its financial commitments . at december 31 , 2015 , on a consolidated basis , the company had $ 239.9 million in cash and cash equivalents , interest-bearing time deposits and investment securities available-for-sale and $ 36.5 million in loans held-for-sale that were generally available for its cash needs . the company can also generate funds from wholesale funding sources and collateralized 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. ```liquidity and capital resources while the company believes it has sufficient liquidity and capital resources to meet its cash and capital expenditure requirements for at least the next twelve months , including any cash dividends it may pay , the company intends to continue pursuing its growth strategy , which may require additional capital . if the company is unable to secure such capital at favorable terms , its ability to execute its growth strategy could be adversely affected . liquidity management is the process used by the company to manage the continuing flow of funds necessary to meet its financial commitments on a timely basis and at a reasonable cost while also maintaining safe and sound operations . liquidity , represented by cash and investment securities , is a product of the company 's operating , investing and financing activities . the primary sources of funds are deposits , principal and interest payments on loans and investment securities , maturing loans and investment securities , access to wholesale funding sources and collateralized borrowings . while scheduled payments and maturities of loans and investment securities are relatively predictable sources of funds , deposit flows are greatly influenced by interest rates , general economic conditions and competition . therefore , the company supplements deposit growth and enhances interest rate risk management through borrowings , which are generally advances from the fhlb . the company maintains cash and investment securities that qualify as liquid assets to maintain adequate liquidity to ensure safe and sound operations and meet its financial commitments . at december 31 , 2015 , on a consolidated basis , the company had $ 239.9 million in cash and cash equivalents , interest-bearing time deposits and investment securities available-for-sale and $ 36.5 million in loans held-for-sale that were generally available for its cash needs . the company can also generate funds from wholesale funding sources and collateralized borrowings . ``` Suspicious Activity Report : replace_table_token_5_th 1 yield on total interest-earning assets minus cost of total interest-bearing liabilities 2 net interest income divided by average interest-earning assets 26 rate/volume analysis the following table illustrates the impact of changes in the volume of interest-earning assets and interest-bearing liabilities and interest rates on net interest income for the periods indicated . the change in interest not due solely to volume or rate has been allocated in proportion to the absolute dollar amounts of the change in each . rate/volume analysis of net interest income twelve months ended december 31 , 2015 vs. december 31 , 2014 due to changes in twelve months ended december 31 , 2014 vs. december 31 , 2013 due to changes in ( amounts in thousands ) volume rate net volume rate net interest income loans , including loans held-for-sale $ 9,624 $ ( 450 ) $ 9,174 $ 8,750 $ ( 1,718 ) $ 7,032 securities – taxable 417 275 692 301 ( 156 ) 145 securities – non-taxable 258 ( 4 ) 254 ( 1,381 ) ( 172 ) ( 1,553 ) other earning assets ( 71 ) 183 112 84 ( 29 ) 55 total 10,228 4 10,232 7,754 ( 2,075 ) 5,679 interest expense interest-bearing deposits 1,390 ( 288 ) 1,102 1,803 ( 1,011 ) 792 other borrowed funds 1,571 ( 907 ) 664 450 ( 402 ) 48 total 2,961 ( 1,195 ) 1,766 2,253 ( 1,413 ) 840 increase in net interest income $ 7,267 $ 1,199 $ 8,466 $ 5,501 $ ( 662 ) $ 4,839 2015 v. 2014 net interest income for the twelve months ended december 31 , 2015 was $ 30.8 million , an increase of $ 8.5 million , or 38.0 % , compared to $ 22.3 million for the twelve months ended december 31 , 2014 . net interest margin was 2.85 % for the twelve months ended december 31 , 2015 compared to 2.65 % for the twelve months ended december 31 , 2014 . the increases in net interest income and net interest margin were primarily driven by an increase in average interest-earning assets of $ 236.6 million , or 28.1 % , for the twelve months ended december 31 , 2015 compared to the twelve months ended december 31 , 2014 , as well as changes in the composition of the company 's balance sheet , which resulted in an increase in the yield earned on interest-earning assets and a decrease in the cost of funds related to interest-bearing liabilities . the increase in net interest income for the twelve months ended december 31 , 2015 , compared to the twelve months ended december 31 , 2014 , was also due to a $ 10.2 million , or 32.8 % , increase in total interest income to $ 41.4 million for the twelve months ended december 31 , 2015 compared to $ 31.2 million for the twelve months ended december 31 , 2014 . the increase in total interest income was partially offset by a $ 1.8 million , or 19.8 % , increase in total interest expense to $ 10.7 million for the twelve months ended december 31 , 2015 compared to $ 8.9 million for the twelve months ended december 31 , 2014 . the increase in total interest income was due primarily to an increase in interest earned on loans resulting from an increase of $ 222.3 million , or 35.2 % , in the average balance of loans , including loans held-for-sale , as well as an increase in interest earned on securities resulting from an increase of $ 28.1 million , or 18.3 % , in the average balance of securities for the twelve months ended december 31 , 2015 compared to the twelve months ended december 31 , 2014 . the increase in total interest income was also due to a 21 basis point ( “ bp ” ) increase in the yield earned on the securities portfolio , partially offset by a decline in the yield earned on loans , including loans held-for-sale , of 7 bps . the increase in total interest expense was driven primarily by an increase in interest expense related to interest-bearing deposits as a result of a $ 131.1 million , or 18.5 % , increase in the average balance of interest-bearing deposits for the twelve months ended december 31 , 2015 compared to the twelve months ended december 31 , 2014 , partially offset by a decline of 4 bps in the cost of funds related to these deposits . interest expense related to other borrowed funds also contributed to the increase in total interest expense , due to a $ 94.3 million , or 207.5 % , increase in the average balance of other borrowed funds for the twelve months ended december 31 , 2015 compared to the twelve months ended december 31 , 2014 , partially offset by a decline of 142 bps in the cost of other borrowed funds . 27 2014 v. 2013 net interest income for the twelve months ended december 31 , 2014 was $ 22.3 million , an increase of $ 4.8 million , or 27.7 % , compared to $ 17.4 million for the twelve months ended december 31 , 2013 . net interest margin was 2.65 % for the twelve months ended december 31 , 2014 compared to 2.67 % for the twelve months ended december 31 , 2013 . the increase in net interest income was primarily driven by an increase in average interest-earning assets of $ 187.2 million , or 28.6 % , for the twelve months ended december 31 , 2014 compared to the twelve months ended december 31 , 2013 . story_separator_special_tag as of december 31 , 2015 and 2014 , all of the company 's investment securities were classified as available-for-sale . the carrying values of available-for-sale investment securities are adjusted for unrealized gains or losses as a valuation allowance and any gain or loss is reported on an after-tax basis as a component of other comprehensive income ( loss ) . the company periodically evaluates each available-for-sale security in an unrealized loss position to determine if the impairment is temporary or other-than-temporary . as of december 31 , 2015 , the unrealized losses in the company 's investment securities portfolio were due solely to interest rate changes . the company has the ability and intent to hold all investment securities with identified impairments resulting from interest rate changes to the earlier of the forecasted recovery or the maturity of the underlying investment security . as of december 31 , 2015 , the company did not have any investment securities of a single issuer , which were not governmental or government-sponsored , that exceeded 10 % of shareholders ' equity . the following tables present the amortized cost and approximate fair value of the company 's investment securities portfolio by security type as of the end of the last five years . replace_table_token_14_th 34 the approximate fair value of investment securities available-for-sale increased $ 76.2 million , or 55.4 % , to $ 213.7 million as of december 31 , 2015 compared to $ 137.5 million as of december 31 , 2014 . the increase was due primarily to increases of $ 24.2 million in u.s. government-sponsored agencies , $ 21.5 million in municipal securities , $ 14.4 million in asset-backed securities and $ 19.1 million in corporate securities , partially offset by a decrease of $ 4.0 million in mortgage-backed securities . during the twelve months ended december 31 , 2015 , the company deployed funds generated through deposit growth to purchase additional securities to further diversify the securities portfolio and enhance net interest income , while supporting liquidity and interest rate risk management . investment maturities the following table summarizes the contractual maturity schedule of the company 's investment securities at their amortized cost and their weighted average yields at december 31 , 2015 . 1 year or less more than 1 year to 5 years more than 5 years to 10 years more than 10 years total ( dollars in thousands ) amortized cost wtd . avg . yield amortized cost wtd . avg . yield amortized cost wtd . avg . yield amortized cost wtd . avg . yield amortized cost wtd . avg . yield securities available for sale : u.s. government-sponsored agencies $ — — % $ 487 3.75 % $ 14,198 2.18 % $ 23,408 2.34 % $ 38,093 2.30 % municipal securities — — % — — % 1,160 2.50 % 19,931 3.10 % 21,091 3.07 % mortgage-backed securities — — % — — % 44,433 1.60 % 69,515 2.14 % 113,948 1.93 % asset-backed securities — — % — — % 5,083 2.27 % 14,361 2.60 % 19,444 2.51 % corporate securities — — % — — % 10,000 3.50 % 10,000 4.00 % 20,000 3.75 % total securities available for sale 1 $ — — % $ 487 3.75 % $ 74,874 2.02 % $ 137,215 2.50 % $ 212,576 2.33 % _ 1 a $ 3.0 million investment security has been excluded from this table because the security does not have a maturity date . deposits the following table presents the composition of the company 's deposit base as of the end of the last five years . replace_table_token_15_th total deposits increased $ 197.5 million , or 26.0 % , to $ 956.1 million as of december 31 , 2015 as compared to $ 758.6 million as of december 31 , 2014 . this increase was due primarily to increases of $ 109.5 million , or 30.3 % , in certificates of deposit , $ 74.7 million , or 28.0 % , in money market accounts , $ 10.0 million , or 13.5 % , in interest-bearing demand deposits , $ 2.0 million , or 9.8 % , in regular savings accounts , and $ 1.9 million , or 8.8 % , in noninterest-bearing deposits . 35 the following tables present contractual interest rates paid on time deposits , their scheduled maturities , and the scheduled maturities for time deposits $ 100,000 or greater . time deposits replace_table_token_16_th time deposit maturities at december 31 , 2015 replace_table_token_17_th time deposit maturities of $ 100,000 or greater replace_table_token_18_th federal home loan bank advances although deposits are the primary source of funds for our lending and investment activities and for general business purposes , we may obtain advances from the fhlb as an alternative to retail and commercial deposits . the following table is a summary of fhlb borrowings for the periods indicated . replace_table_token_19_th 36 story_separator_special_tag critical accounting policies and estimates allowance for loan losses . we believe the allowance for loan losses is the critical accounting policy that requires the most significant judgments and assumptions used in the preparation of our consolidated financial statements . an estimate of potential losses inherent in the loan portfolio is determined and an allowance for those losses is established by considering factors including historical loss rates , expected cash flows , and estimated collateral values . the allowance for loan losses represents management 's best estimate of losses inherent in the existing loan portfolio . the allowance for loan losses is increased by the provision for loan losses charged to expense and reduced by loans charged off , net of recoveries . management evaluates the allowance for loan losses quarterly . if the underlying assumptions later prove to be inaccurate based on subsequent loss evaluations , the allowance for loan losses is adjusted . 38 management estimates the appropriate level of allowance for loan losses by separately evaluating impaired and non-impaired loans . a specific

established a proactive , ongoing multi-channel franchisee outreach and education program that is actively assisting our franchisees in accessing newly available capital . revised the company 's guest cancellation policy to provide travelers greater flexibility during these challenging times . implemented travel restrictions and work-from-home practices for the company 's employees . 41 the company made a priority of working closely with its franchisees to drive business to their hotels across a wide variety of industries and government and emergency-management agencies . many of the company 's franchisees committed their rooms inventory at discounted rates , or on a complimentary basis , to support their communities in dealing with the effects of the pandemic , opening their hotels for hospital overflows and providing temporary housing for first responders , the national guard , healthcare workers , critical infrastructure workers and others in dire need . in addition , the company provided hotel room donations to operation homefront to help ill and injured service members that were displaced by the pandemic . the company also teamed up with serta , inc. to contribute to its “ stay home , send beds ” initiative , which provided bed donations to help address nationwide shortages at hospitals and temporary medical facilities . since the onset of the pandemic , management and the board of directors have taken steps to adjust the company 's cost structure and increase its financial flexibility , which include , but are not limited to , the following actions : reduced the compensation of the board of directors , chief executive officer , and other executive officers . reduced global workforce by approximately 18 % since december 31 , 2019 through a combination of layoffs and furloughs . introduced a hiring freeze , except with respect to certain critical positions . suspended associates ' 401 ( k ) match through the end of 2020. eliminated , reduced or deferred non-essential expenditures , discretionary capital expenditures and investments . we are actively working with vendors to achieve relief on fees or timing of fee payment . temporarily suspended activity under the company 's share repurchase program . determined to temporarily suspend future , undeclared dividends while the covid-19 pandemic is significantly impacting travel . entered into a $ 250 million unsecured term loan ( the `` term loan `` ) on a precautionary basis , enhancing the company 's financial flexibility by increasing its borrowing capacity . offered $ 450 million of 3.70 % senior unsecured notes due 2031 ( the `` 2020 senior notes `` ) , using net proceeds to repay the term loan in full and fund the $ 197.8 million purchase price of the cash tender offer ( the `` tender offer `` ) for approximately $ 183.4 million aggregate principal amount of the company 's 5.75 % senior unsecured notes due in 2022 ( the `` 2012 senior notes `` ) . as disclosed above , domestic occupancy of the company 's branded hotels has been severely impacted . however , approximately 90 % of the company 's domestic hotels are in suburban , small town and interstate locations and have experienced less severe occupancy declines related to covid-19 than hotels in urban centers or resorts . based on industry data , the company 's brands have been performing ahead of its upper-midscale , midscale and economy chain scale competitors , and the company 's hotels have experienced relatively stronger same-store revpar share gains versus their local competition from mid-march to through the end of 2020. given the uncertainty as to the potential duration of the crisis , including a potential resurgence of the virus , and its severity , the company does not expect material improvement in the industry until there is a sense that the spread of the virus has been contained , shelter-in-place orders have been lifted , and economic forecasts begin to improve . as the industry continues to recover , the company believes it will continue to benefit from the expected faster rebound of leisure demand as a result of its higher share of leisure travel mix relative to competitors . the company 's properties are also well distributed in drive-to markets , which the company believes will lead in the demand recovery for the industry . while the company believes that the long-term fundamentals of the business remain strong , it will continue to adjust business contingency plans as the covid-19 pandemic evolves . for additional information , see risk factors in part i , item 1a of this form 10-k. overview we are primarily a hotel franchisor with franchise agreements and owned hotels representing 7,147 hotels open comprising 597,977 rooms and 1,022 hotels under construction , awaiting conversion or approved for development comprising 86,264 rooms as of december 31 , 2020 , located in 50 states , the district of columbia and more than 40 countries and territories outside the united states . our brand names include comfort inn® , comfort suites® , quality® , clarion® , clarion pointe tm , ascend hotel collection® , sleep inn® , econo lodge® , rodeway inn® , mainstay suites® , suburban extended stay hotel® , woodspring suites® , everhome suites® , and cambria® hotels ( collectively , the `` choice brands `` ) . on january 27 , 2020 , we announced the launch of everhome suites , a new-construction midscale extended-stay brand offering . we expect to open the first everhome suites hotel in 2021. the company 's primary segment is the hotel franchising business , which represents approximately 96 % of the company 's total revenues . the company 's domestic operations are conducted through direct franchising relationships and the ownership of five cambria hotels , while its international franchise operations are conducted through a combination of direct franchising and 42 master franchising or master development ( collectively , `` master franchising `` ) relationships . story_separator_special_tag the decrease in domestic royalties is partially offset by an increase in the number of domestic franchised hotel rooms and an 8 basis point increase in the effective royalty rate from 4.86 % for the year ended december 31 , 2019 to 4.94 % for the year ended december 31 , 2020. a summary of the company 's domestic franchised hotels operating information for the years ending december 31 , 2020 and 2019 is as follows : replace_table_token_12_th the impacts of covid-19 on the company 's business were first experienced at end of the first quarter of 2020 , with domestic occupancy levels ranging between 25.5 % and 32.5 % in the last ten days of march resulting in significant decreases in revpar . lower occupancy and revpar trends continued into the second quarter of 2020 , with domestic revpar experiencing a decline of approximately 60.1 % from the comparative prior year april . these trends have steadily improved , albeit remained significantly impacted , in the third and fourth quarters , with domestic revpar experiencing a decline of approximately 28.8 % over the comparative prior year third quarter and 25.1 % over the comparative prior year fourth quarter . for the reasons cited above , we expect significant impact on our results of operations to continue in 2021. during the first quarter of 2020 , the company revised its calculation of occupancy . historically , occupancy has excluded rooms unavailable to our guests for operational reasons , as reported by our franchisees . with the onset of the covid-19 pandemic resulting in reduced travel and lesser demand , our franchisees began closing greater portions of inventory as compared to previous periods . to provide a more representative depiction of system occupancy and with reference to industry 47 standards for revpar reporting for partially closed hotels during the covid-19 pandemic , we have revised our occupancy calculation to be reflective of full room availability for open hotels . additionally , the company made minor revisions to the calculation of average daily rate ( `` adr `` ) with respect to complimentary rooms . the revised adr , occupancy , and revpar are reflected in the table above for all periods noted . based on our previous calculation of adr , occupancy , and revpar , these metrics for the year ended december 31 , 2020 would have been $ 71.13 , 53.0 % , and $ 37.68 , respectively , versus the year ended december 31 , 2019 of $ 81.42 , 62.9 % , and $ 51.19 , respectively , with period over period declines of 12.6 % , 990 basis points , and 26.4 % , respectively . the number of total domestic rooms online increased by 0.4 % to 464,682 rooms as of december 31 , 2020 from 462,973 as of december 31 , 2019. the total number of domestic hotels online increased by 0.2 % to 5,967 as of december 31 , 2020 from 5,955 as of december 31 , 2019. a summary of domestic hotels and rooms in our franchise system at december 31 , 2020 and 2019 by brand is as follows : replace_table_token_13_th as of both december 31 , 2020 , and january 31 , 2021 , there were less than 1 % of the company 's domestic hotel system that had temporarily suspended operations due to governmental restriction or a franchisee 's election . these temporarily suspended hotels are included in the summary table above of domestic hotels in our franchise system . international royalty fees for the year ended december 31 , 2020 decreased $ 9.4 million to $ 12.2 million compared to the year ended december 31 , 2019 as a result of temporarily suspended operations and declines in revpar performance resulting from impacts of the pandemic . international rooms online increased by 5,371 from 127,924 as of december 31 , 2019 to 133,295 as of december 31 , 2020 , while hotels online decreased by 18 from 1,198 as of december 31 , 2019 to 1,180 as of december 31 , 2020. international rooms grew at a faster pace than the number of hotels due to a focus on new entrants with higher per unit room counts than currently in the company 's international franchised hotel portfolio . as of both december 31 , 2020 and january 31 , 2021 , approximately 5 % of the company 's international branded hotels temporarily suspended operations due to governmental restriction or a franchisee 's election . there is uncertainty as to the potential duration of the pandemic , including a resurgence or increase in prevalence in variants as well as the timing of vaccinations around the world , and its severity , which we expect will continue to impact the number of domestic and international hotels that temporarily suspend operations . initial franchise and relicensing fees initial franchise fees are fees paid to the company when a franchisee executes a franchise agreement ; relicensing fees include fees charged to new owners of a franchised property whenever an ownership change occurs and the property remains in the franchise system , as well as fees required to renew existing franchise agreements . during the year ended december 31 , 2020 , the company awarded 427 franchise agreements representing 35,308 rooms compared to 684 franchise agreements representing 59,641 rooms for the year ended december 31 , 2019. domestic franchise agreements awarded for new construction hotels totaled 126 representing 11,847 rooms during the year ended december 31 , 2020 compared to 269 contracts representing 22,814 rooms for the year ended december 31 , 2019. conversion hotel awarded 48 franchise agreements totaled 301 representing 23,461 rooms for the year ended december 31 , 2020 compared to 415 agreements representing 36,827 rooms for the year ended december 31 , 2019. the company awarded 204 domestic relicensing contracts during the year ended december 31 , 2020 compared to 403 executed during the year ended december 31 , 2019.

loss on extinguishment of debt : during the first quarter of 2020 , the company recorded a loss on the extinguishment of debt of $ 0.6 million related to the early pay off of a construction loan in the amount of $ 33.1 million , inclusive of accrued and unpaid interest . during the third quarter of 2020 , the company recorded a loss on the extinguishment of debt of $ 16.0 million related to the tender offer and early pay off of the term loan . for the year ended december 31 , 2019 , the company recorded a loss on extinguishment of debt of $ 7.2 million for the early redemption of the company 's unsecured senior notes in the principal amount of $ 250 million which were due in august 2020. the loss on extinguishment represents a $ 6.3 million make-whole premium to redeem the notes prior to maturity and the acceleration of unamortized deferred financing fees and underwriting discounts . refer to item 7. liquidity and capital resources and note 12 to our consolidated financial statements for additional information . equity in net loss of affiliates : the company recorded net losses of $ 15.3 million from its unconsolidated joint ventures during the year ended december 31 , 2020 compared to net losses of $ 9.6 million for the year ended december 31 , 2019. these investments relate to the company 's program to offer equity support to qualified franchisees to develop and operate cambria hotels in strategic markets . the year-over-year fluctuation is primarily attributable to increased losses of operating joint venture hotels as impacted by the covid-19 pandemic and recognition of $ 7.3 million of impairment charges during the fourth quarter of 2020 related to four separate unconsolidated joint ventures . this fluctuation is partially offset by the recognition of a loss of $ 6.0 million in the third quarter of 2019 related to the sale of an unconsolidated joint venture . refer to note 8 to our consolidated financial statements for additional information .

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 : during the first quarter of 2020 , the company recorded a loss on the extinguishment of debt of $ 0.6 million related to the early pay off of a construction loan in the amount of $ 33.1 million , inclusive of accrued and unpaid interest . during the third quarter of 2020 , the company recorded a loss on the extinguishment of debt of $ 16.0 million related to the tender offer and early pay off of the term loan . for the year ended december 31 , 2019 , the company recorded a loss on extinguishment of debt of $ 7.2 million for the early redemption of the company 's unsecured senior notes in the principal amount of $ 250 million which were due in august 2020. the loss on extinguishment represents a $ 6.3 million make-whole premium to redeem the notes prior to maturity and the acceleration of unamortized deferred financing fees and underwriting discounts . refer to item 7. liquidity and capital resources and note 12 to our consolidated financial statements for additional information . equity in net loss of affiliates : the company recorded net losses of $ 15.3 million from its unconsolidated joint ventures during the year ended december 31 , 2020 compared to net losses of $ 9.6 million for the year ended december 31 , 2019. these investments relate to the company 's program to offer equity support to qualified franchisees to develop and operate cambria hotels in strategic markets . the year-over-year fluctuation is primarily attributable to increased losses of operating joint venture hotels as impacted by the covid-19 pandemic and recognition of $ 7.3 million of impairment charges during the fourth quarter of 2020 related to four separate unconsolidated joint ventures . this fluctuation is partially offset by the recognition of a loss of $ 6.0 million in the third quarter of 2019 related to the sale of an unconsolidated joint venture . refer to note 8 to our consolidated financial statements for additional information . ``` Suspicious Activity Report : established a proactive , ongoing multi-channel franchisee outreach and education program that is actively assisting our franchisees in accessing newly available capital . revised the company 's guest cancellation policy to provide travelers greater flexibility during these challenging times . implemented travel restrictions and work-from-home practices for the company 's employees . 41 the company made a priority of working closely with its franchisees to drive business to their hotels across a wide variety of industries and government and emergency-management agencies . many of the company 's franchisees committed their rooms inventory at discounted rates , or on a complimentary basis , to support their communities in dealing with the effects of the pandemic , opening their hotels for hospital overflows and providing temporary housing for first responders , the national guard , healthcare workers , critical infrastructure workers and others in dire need . in addition , the company provided hotel room donations to operation homefront to help ill and injured service members that were displaced by the pandemic . the company also teamed up with serta , inc. to contribute to its “ stay home , send beds ” initiative , which provided bed donations to help address nationwide shortages at hospitals and temporary medical facilities . since the onset of the pandemic , management and the board of directors have taken steps to adjust the company 's cost structure and increase its financial flexibility , which include , but are not limited to , the following actions : reduced the compensation of the board of directors , chief executive officer , and other executive officers . reduced global workforce by approximately 18 % since december 31 , 2019 through a combination of layoffs and furloughs . introduced a hiring freeze , except with respect to certain critical positions . suspended associates ' 401 ( k ) match through the end of 2020. eliminated , reduced or deferred non-essential expenditures , discretionary capital expenditures and investments . we are actively working with vendors to achieve relief on fees or timing of fee payment . temporarily suspended activity under the company 's share repurchase program . determined to temporarily suspend future , undeclared dividends while the covid-19 pandemic is significantly impacting travel . entered into a $ 250 million unsecured term loan ( the `` term loan `` ) on a precautionary basis , enhancing the company 's financial flexibility by increasing its borrowing capacity . offered $ 450 million of 3.70 % senior unsecured notes due 2031 ( the `` 2020 senior notes `` ) , using net proceeds to repay the term loan in full and fund the $ 197.8 million purchase price of the cash tender offer ( the `` tender offer `` ) for approximately $ 183.4 million aggregate principal amount of the company 's 5.75 % senior unsecured notes due in 2022 ( the `` 2012 senior notes `` ) . as disclosed above , domestic occupancy of the company 's branded hotels has been severely impacted . however , approximately 90 % of the company 's domestic hotels are in suburban , small town and interstate locations and have experienced less severe occupancy declines related to covid-19 than hotels in urban centers or resorts . based on industry data , the company 's brands have been performing ahead of its upper-midscale , midscale and economy chain scale competitors , and the company 's hotels have experienced relatively stronger same-store revpar share gains versus their local competition from mid-march to through the end of 2020. given the uncertainty as to the potential duration of the crisis , including a potential resurgence of the virus , and its severity , the company does not expect material improvement in the industry until there is a sense that the spread of the virus has been contained , shelter-in-place orders have been lifted , and economic forecasts begin to improve . as the industry continues to recover , the company believes it will continue to benefit from the expected faster rebound of leisure demand as a result of its higher share of leisure travel mix relative to competitors . the company 's properties are also well distributed in drive-to markets , which the company believes will lead in the demand recovery for the industry . while the company believes that the long-term fundamentals of the business remain strong , it will continue to adjust business contingency plans as the covid-19 pandemic evolves . for additional information , see risk factors in part i , item 1a of this form 10-k. overview we are primarily a hotel franchisor with franchise agreements and owned hotels representing 7,147 hotels open comprising 597,977 rooms and 1,022 hotels under construction , awaiting conversion or approved for development comprising 86,264 rooms as of december 31 , 2020 , located in 50 states , the district of columbia and more than 40 countries and territories outside the united states . our brand names include comfort inn® , comfort suites® , quality® , clarion® , clarion pointe tm , ascend hotel collection® , sleep inn® , econo lodge® , rodeway inn® , mainstay suites® , suburban extended stay hotel® , woodspring suites® , everhome suites® , and cambria® hotels ( collectively , the `` choice brands `` ) . on january 27 , 2020 , we announced the launch of everhome suites , a new-construction midscale extended-stay brand offering . we expect to open the first everhome suites hotel in 2021. the company 's primary segment is the hotel franchising business , which represents approximately 96 % of the company 's total revenues . the company 's domestic operations are conducted through direct franchising relationships and the ownership of five cambria hotels , while its international franchise operations are conducted through a combination of direct franchising and 42 master franchising or master development ( collectively , `` master franchising `` ) relationships . story_separator_special_tag the decrease in domestic royalties is partially offset by an increase in the number of domestic franchised hotel rooms and an 8 basis point increase in the effective royalty rate from 4.86 % for the year ended december 31 , 2019 to 4.94 % for the year ended december 31 , 2020. a summary of the company 's domestic franchised hotels operating information for the years ending december 31 , 2020 and 2019 is as follows : replace_table_token_12_th the impacts of covid-19 on the company 's business were first experienced at end of the first quarter of 2020 , with domestic occupancy levels ranging between 25.5 % and 32.5 % in the last ten days of march resulting in significant decreases in revpar . lower occupancy and revpar trends continued into the second quarter of 2020 , with domestic revpar experiencing a decline of approximately 60.1 % from the comparative prior year april . these trends have steadily improved , albeit remained significantly impacted , in the third and fourth quarters , with domestic revpar experiencing a decline of approximately 28.8 % over the comparative prior year third quarter and 25.1 % over the comparative prior year fourth quarter . for the reasons cited above , we expect significant impact on our results of operations to continue in 2021. during the first quarter of 2020 , the company revised its calculation of occupancy . historically , occupancy has excluded rooms unavailable to our guests for operational reasons , as reported by our franchisees . with the onset of the covid-19 pandemic resulting in reduced travel and lesser demand , our franchisees began closing greater portions of inventory as compared to previous periods . to provide a more representative depiction of system occupancy and with reference to industry 47 standards for revpar reporting for partially closed hotels during the covid-19 pandemic , we have revised our occupancy calculation to be reflective of full room availability for open hotels . additionally , the company made minor revisions to the calculation of average daily rate ( `` adr `` ) with respect to complimentary rooms . the revised adr , occupancy , and revpar are reflected in the table above for all periods noted . based on our previous calculation of adr , occupancy , and revpar , these metrics for the year ended december 31 , 2020 would have been $ 71.13 , 53.0 % , and $ 37.68 , respectively , versus the year ended december 31 , 2019 of $ 81.42 , 62.9 % , and $ 51.19 , respectively , with period over period declines of 12.6 % , 990 basis points , and 26.4 % , respectively . the number of total domestic rooms online increased by 0.4 % to 464,682 rooms as of december 31 , 2020 from 462,973 as of december 31 , 2019. the total number of domestic hotels online increased by 0.2 % to 5,967 as of december 31 , 2020 from 5,955 as of december 31 , 2019. a summary of domestic hotels and rooms in our franchise system at december 31 , 2020 and 2019 by brand is as follows : replace_table_token_13_th as of both december 31 , 2020 , and january 31 , 2021 , there were less than 1 % of the company 's domestic hotel system that had temporarily suspended operations due to governmental restriction or a franchisee 's election . these temporarily suspended hotels are included in the summary table above of domestic hotels in our franchise system . international royalty fees for the year ended december 31 , 2020 decreased $ 9.4 million to $ 12.2 million compared to the year ended december 31 , 2019 as a result of temporarily suspended operations and declines in revpar performance resulting from impacts of the pandemic . international rooms online increased by 5,371 from 127,924 as of december 31 , 2019 to 133,295 as of december 31 , 2020 , while hotels online decreased by 18 from 1,198 as of december 31 , 2019 to 1,180 as of december 31 , 2020. international rooms grew at a faster pace than the number of hotels due to a focus on new entrants with higher per unit room counts than currently in the company 's international franchised hotel portfolio . as of both december 31 , 2020 and january 31 , 2021 , approximately 5 % of the company 's international branded hotels temporarily suspended operations due to governmental restriction or a franchisee 's election . there is uncertainty as to the potential duration of the pandemic , including a resurgence or increase in prevalence in variants as well as the timing of vaccinations around the world , and its severity , which we expect will continue to impact the number of domestic and international hotels that temporarily suspend operations . initial franchise and relicensing fees initial franchise fees are fees paid to the company when a franchisee executes a franchise agreement ; relicensing fees include fees charged to new owners of a franchised property whenever an ownership change occurs and the property remains in the franchise system , as well as fees required to renew existing franchise agreements . during the year ended december 31 , 2020 , the company awarded 427 franchise agreements representing 35,308 rooms compared to 684 franchise agreements representing 59,641 rooms for the year ended december 31 , 2019. domestic franchise agreements awarded for new construction hotels totaled 126 representing 11,847 rooms during the year ended december 31 , 2020 compared to 269 contracts representing 22,814 rooms for the year ended december 31 , 2019. conversion hotel awarded 48 franchise agreements totaled 301 representing 23,461 rooms for the year ended december 31 , 2020 compared to 415 agreements representing 36,827 rooms for the year ended december 31 , 2019. the company awarded 204 domestic relicensing contracts during the year ended december 31 , 2020 compared to 403 executed during the year ended december 31 , 2019.

patients access our tests through their physician . our afirma , percepta and envisia tests are used as part of the diagnostic process and genomic testing services are performed in our clia laboratory located in san francisco , california . cytopathology services for afirma testing are performed in our reference laboratory in austin , texas . the prosigna test is indicated in female breast cancer patients who have undergone surgery in conjunction with locoregional treatment consistent with standard of care . this in vitro diagnostic test is performed on the ncounter flex analysis system in laboratories worldwide , as well as in the united states . fourth quarter and full-year 2019 financial results 56 for the three months ended december 31 , 2019 , compared to the prior year : total revenue was $ 29.7 million , an increase of 15 % ; gross margin was 66 % , unchanged ; operating expenses , excluding cost of revenue , were $ 27.8 million , an increase of 38 % ; net loss and comprehensive loss was ( $ 7.5 ) million , an increase of 140 % ; basic and diluted net loss per common share was ( $ 0.15 ) , an increase of 88 % ; net cash provided by operating activities was $ 1.8 million , compared to $ 1.2 million used ; and cash and cash equivalents was $ 159.3 million at december 31 , 2019. for the year ended december 31 , 2019 , compared to the prior year : total revenue was $ 120.4 million , an increase of 31 % ; gross margin was 70 % , an increase of six percentage points ; operating expenses , excluding cost of revenue , were $ 99.0 million , an increase of 22 % ; net loss and comprehensive loss was ( $ 12.6 ) million , an improvement of 45 % ; basic and diluted net loss per common share was ( $ 0.27 ) , an improvement of 56 % ; and net cash used in operating activities was $ 3.2 million , an improvement of 76 % . 2019 full-year and recent business highlights commercial growth : achieved strong total revenue growth across our testing and product portfolio delivering $ 29.5 million in the fourth quarter and $ 108.3 million for 2019 , an increase of 16 % and 19 % , respectively , compared to the prior year . accelerated pulmonology testing revenue to $ 2.0 million and $ 5.5 million for the fourth quarter and full year , respectively , a 123 % and 174 % increase compared to prior year . grew total genomic volume ( afirma , percepta and envisia ) by 18 % to 10,846 tests in the fourth quarter of 2019 and by 25 % to 39,612 tests in 2019 , compared to prior year . increased genomic volume for our pulmonology products by 136 % in 2019 compared to prior year , achieving growth targets for both the percepta and envisia classifiers . received final medicare coverage in march 2019 for the envisia classifier and published strong clinical validation and clinical utility data in the lancet respiratory medicine , propelling nationwide commercial expansion of the test in the second half of 2019. expanded payer contracts by 14.4 million lives , making veracyte an in-network genomic testing provider to health plans representing over 225 million members . continued to build an extensive library of clinical data across our portfolio in 2019 , including 8 publications and 11 presentations at leading medical meetings , demonstrating our afirma and pulmonology tests ' performance and clinical utility . eleven abstracts were presented at the san antonio breast cancer symposium in december 2019 , including data showing a benefit of prosigna ® over other genomic testing to identify patients ' long-term risk of developing distant metastases . in addition , data were presented showing the test 's ability to identify patients with intrinsic breast cancer subtypes that may potentially benefit from cdk4/6 inhibitors in place of standard chemotherapy . biopharmaceutical collaborations/pipeline advancement : in january 2019 , announced a long-term strategic collaboration with johnson & johnson innovation llc to advance the development and commercialization of novel diagnostic tests to detect lung cancer at its earliest stages , when the disease is most treatable . presented preliminary data at the american college of chest physicians ( chest ) annual meeting for our first-of-its-kind noninvasive nasal swab classifier for improved lung cancer diagnosis . the test , being developed through our johnson & johnson collaboration , is expected to launch in early 2021. launched the second-generation percepta gsc , completing the transition of our core classifiers to our rna whole-transcriptome sequencing platform . 57 announced a multi-year collaboration with acerta pharma , the hematology research and development arm of astrazeneca plc , to provide genomic information that will support the biopharmaceutical company 's development of oncology therapeutics in lymphoma . global expansion : acquired the exclusive global diagnostic rights to the nanostring ncounter flex analysis system , as well as the prosigna breast cancer assay and the in-development lymphmark lymphoma subtyping test . we believe this transaction positions us to access a $ 40 billion global market for our current and pipeline products , by offering a broad menu of advanced genomic tests in oncology and other indications using a distributed-kit model . factors affecting our performance reported genomic test volume our performance depends on the number of genomic tests that we perform and report as completed in our clia laboratories . story_separator_special_tag timing of our research and development expenses we deploy state-of-the-art and costly genomic technologies in our biomarker discovery experiments , and our spending on these technologies may vary substantially from quarter to quarter . we also spend a significant amount to secure clinical samples that can be used in discovery and product development as well as clinical validation studies . the timing of these research and development activities is difficult to predict , as is the timing of sample acquisitions . if a substantial number of clinical samples are acquired in a given quarter or if a high-cost experiment is conducted in one quarter versus the next , the timing of these expenses can affect our financial results . we conduct clinical studies to validate our new products as well as on-going clinical studies to further the published evidence to support our commercialized tests . as these studies are initiated , start-up costs for each site can be significant and concentrated in a specific quarter . spending on research and development , for both experiments and studies , may vary significantly by quarter depending on the timing of these various expenses . 61 financial overview testing revenue through december 31 , 2019 , we derived a substantial majority of our revenue from the sale of afirma delivered primarily to physicians in the united states . we generally invoice third-party payers upon delivery of a patient report to the prescribing physician . as such , we take the assignment of benefits and the risk of cash collection from the third-party payer and individual patients . third-party payers and other customers in excess of 10 % of total revenue and their related revenue as a percentage of total revenue were as follows : replace_table_token_4_th for tests performed , we recognize the related revenue upon delivery of a patient report to the prescribing physician based on the amount that we expect to ultimately receive . 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 reimbursement rate ( if applicable ) , amount paid per test and any current development or changes that could impact reimbursement . upon ultimate collection , the amount received is compared to previous estimates and the amount accrued is adjusted accordingly . our ability to increase our revenue will depend on our ability to penetrate the market , obtain positive coverage policies from additional third-party payers , obtain reimbursement and or enter into contracts with additional third-party payers for our current and new tests , and increase reimbursement rates for tests performed . finally , should the judgments underlying our estimated reimbursement change , our accrued revenue and financial results could be negatively impacted in future periods . cost of testing revenue the components of our cost of revenue are laboratory expenses , kit costs , sample collection expenses , compensation expense , license fees and royalties , depreciation and amortization , other expenses such as equipment and laboratory supplies , and allocations of facility and information technology expenses . costs associated with performing tests are recorded as the test is processed regardless of whether and when revenue is recognized with respect to that test . as a result , our cost of revenue as a percentage of revenue may vary significantly from period to period because we may not recognize all revenue in the period in which the associated costs are incurred . we expect cost of revenue in absolute dollars to increase as the number of tests we perform increases . however , we expect that the cost per test will decrease over time due to leveraging fixed costs , efficiencies we may gain as test volume increases and from automation , process efficiencies and other cost reductions . as we introduce new tests , initially our cost of revenue will be high as we expect to run suboptimal batch sizes , run quality control batches , test batches , registry samples and generally incur costs that may suppress or reduce gross margins . this will disproportionately increase our aggregate cost of revenue until we achieve efficiencies in processing these new tests . cost of product revenue cost of product revenue consists primarily of costs of purchasing instruments and consumables from third-party contract manufacturers , installation , warranty , service and packaging and delivery costs . in addition , cost of product includes royalty costs for licensed technologies included in our products , provisions for slow-moving and obsolete inventory and stock-based compensation expense . cost of product revenue for instruments and consumables is recognized in the period the related revenue is recognized . shipping and handling costs incurred for product shipments are included in cost of product in the consolidated statements of operations . research and development research and development expenses include expenses incurred to develop our technology , collect clinical samples and conduct clinical studies to develop and support our products and pipeline . these expenses consist of compensation expenses , direct research and development expenses such as prototype materials , laboratory supplies and costs associated with setting up and 62 conducting clinical studies at domestic and international sites , professional fees , depreciation and amortization , other miscellaneous expenses and allocation of facility and information technology expenses . we expense all research and development costs in the periods in which they are incurred . we expect to incur significant research and development expenses as we continue to invest in research and development activities related to developing additional products and evaluating various platforms . we incurred research and development expenses on ongoing evidence development for our afirma , percepta and envisia classifiers in 2019 . we believe a majority of our research and development expenses in and after 2020 will be predominantly in support of our pipeline products . selling and marketing selling and

cash flows the following table summarizes our cash flows for the years ended december 31 , 2019 , 2018 and 2017 ( in thousands of dollars ) : replace_table_token_10_th cash flows from operating activities cash used in operating activities for the year ended december 31 , 2019 was $ 3.2 million . the net loss of $ 12.6 million includes non-cash charges of $ 9.8 million of stock-based compensation expense and $ 4.1 million of depreciation and amortization , which includes $ 1.4 million of intangible asset amortization , and $ 0.2 million of end-of-term debt obligation accruals . cash used as a result of changes in operating assets and liabilities was $ 4.8 million , primarily comprised of an increase in accounts receivable of $ 6.2 million , increase in supplies of $ 3.4 million and increase in other assets of $ 0.4 million , partially offset by an increase in accrued liabilities and deferred rent of $ 5.2 million . 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

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 , 2019 , 2018 and 2017 ( in thousands of dollars ) : replace_table_token_10_th cash flows from operating activities cash used in operating activities for the year ended december 31 , 2019 was $ 3.2 million . the net loss of $ 12.6 million includes non-cash charges of $ 9.8 million of stock-based compensation expense and $ 4.1 million of depreciation and amortization , which includes $ 1.4 million of intangible asset amortization , and $ 0.2 million of end-of-term debt obligation accruals . cash used as a result of changes in operating assets and liabilities was $ 4.8 million , primarily comprised of an increase in accounts receivable of $ 6.2 million , increase in supplies of $ 3.4 million and increase in other assets of $ 0.4 million , partially offset by an increase in accrued liabilities and deferred rent of $ 5.2 million . 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 ``` Suspicious Activity Report : patients access our tests through their physician . our afirma , percepta and envisia tests are used as part of the diagnostic process and genomic testing services are performed in our clia laboratory located in san francisco , california . cytopathology services for afirma testing are performed in our reference laboratory in austin , texas . the prosigna test is indicated in female breast cancer patients who have undergone surgery in conjunction with locoregional treatment consistent with standard of care . this in vitro diagnostic test is performed on the ncounter flex analysis system in laboratories worldwide , as well as in the united states . fourth quarter and full-year 2019 financial results 56 for the three months ended december 31 , 2019 , compared to the prior year : total revenue was $ 29.7 million , an increase of 15 % ; gross margin was 66 % , unchanged ; operating expenses , excluding cost of revenue , were $ 27.8 million , an increase of 38 % ; net loss and comprehensive loss was ( $ 7.5 ) million , an increase of 140 % ; basic and diluted net loss per common share was ( $ 0.15 ) , an increase of 88 % ; net cash provided by operating activities was $ 1.8 million , compared to $ 1.2 million used ; and cash and cash equivalents was $ 159.3 million at december 31 , 2019. for the year ended december 31 , 2019 , compared to the prior year : total revenue was $ 120.4 million , an increase of 31 % ; gross margin was 70 % , an increase of six percentage points ; operating expenses , excluding cost of revenue , were $ 99.0 million , an increase of 22 % ; net loss and comprehensive loss was ( $ 12.6 ) million , an improvement of 45 % ; basic and diluted net loss per common share was ( $ 0.27 ) , an improvement of 56 % ; and net cash used in operating activities was $ 3.2 million , an improvement of 76 % . 2019 full-year and recent business highlights commercial growth : achieved strong total revenue growth across our testing and product portfolio delivering $ 29.5 million in the fourth quarter and $ 108.3 million for 2019 , an increase of 16 % and 19 % , respectively , compared to the prior year . accelerated pulmonology testing revenue to $ 2.0 million and $ 5.5 million for the fourth quarter and full year , respectively , a 123 % and 174 % increase compared to prior year . grew total genomic volume ( afirma , percepta and envisia ) by 18 % to 10,846 tests in the fourth quarter of 2019 and by 25 % to 39,612 tests in 2019 , compared to prior year . increased genomic volume for our pulmonology products by 136 % in 2019 compared to prior year , achieving growth targets for both the percepta and envisia classifiers . received final medicare coverage in march 2019 for the envisia classifier and published strong clinical validation and clinical utility data in the lancet respiratory medicine , propelling nationwide commercial expansion of the test in the second half of 2019. expanded payer contracts by 14.4 million lives , making veracyte an in-network genomic testing provider to health plans representing over 225 million members . continued to build an extensive library of clinical data across our portfolio in 2019 , including 8 publications and 11 presentations at leading medical meetings , demonstrating our afirma and pulmonology tests ' performance and clinical utility . eleven abstracts were presented at the san antonio breast cancer symposium in december 2019 , including data showing a benefit of prosigna ® over other genomic testing to identify patients ' long-term risk of developing distant metastases . in addition , data were presented showing the test 's ability to identify patients with intrinsic breast cancer subtypes that may potentially benefit from cdk4/6 inhibitors in place of standard chemotherapy . biopharmaceutical collaborations/pipeline advancement : in january 2019 , announced a long-term strategic collaboration with johnson & johnson innovation llc to advance the development and commercialization of novel diagnostic tests to detect lung cancer at its earliest stages , when the disease is most treatable . presented preliminary data at the american college of chest physicians ( chest ) annual meeting for our first-of-its-kind noninvasive nasal swab classifier for improved lung cancer diagnosis . the test , being developed through our johnson & johnson collaboration , is expected to launch in early 2021. launched the second-generation percepta gsc , completing the transition of our core classifiers to our rna whole-transcriptome sequencing platform . 57 announced a multi-year collaboration with acerta pharma , the hematology research and development arm of astrazeneca plc , to provide genomic information that will support the biopharmaceutical company 's development of oncology therapeutics in lymphoma . global expansion : acquired the exclusive global diagnostic rights to the nanostring ncounter flex analysis system , as well as the prosigna breast cancer assay and the in-development lymphmark lymphoma subtyping test . we believe this transaction positions us to access a $ 40 billion global market for our current and pipeline products , by offering a broad menu of advanced genomic tests in oncology and other indications using a distributed-kit model . factors affecting our performance reported genomic test volume our performance depends on the number of genomic tests that we perform and report as completed in our clia laboratories . story_separator_special_tag timing of our research and development expenses we deploy state-of-the-art and costly genomic technologies in our biomarker discovery experiments , and our spending on these technologies may vary substantially from quarter to quarter . we also spend a significant amount to secure clinical samples that can be used in discovery and product development as well as clinical validation studies . the timing of these research and development activities is difficult to predict , as is the timing of sample acquisitions . if a substantial number of clinical samples are acquired in a given quarter or if a high-cost experiment is conducted in one quarter versus the next , the timing of these expenses can affect our financial results . we conduct clinical studies to validate our new products as well as on-going clinical studies to further the published evidence to support our commercialized tests . as these studies are initiated , start-up costs for each site can be significant and concentrated in a specific quarter . spending on research and development , for both experiments and studies , may vary significantly by quarter depending on the timing of these various expenses . 61 financial overview testing revenue through december 31 , 2019 , we derived a substantial majority of our revenue from the sale of afirma delivered primarily to physicians in the united states . we generally invoice third-party payers upon delivery of a patient report to the prescribing physician . as such , we take the assignment of benefits and the risk of cash collection from the third-party payer and individual patients . third-party payers and other customers in excess of 10 % of total revenue and their related revenue as a percentage of total revenue were as follows : replace_table_token_4_th for tests performed , we recognize the related revenue upon delivery of a patient report to the prescribing physician based on the amount that we expect to ultimately receive . 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 reimbursement rate ( if applicable ) , amount paid per test and any current development or changes that could impact reimbursement . upon ultimate collection , the amount received is compared to previous estimates and the amount accrued is adjusted accordingly . our ability to increase our revenue will depend on our ability to penetrate the market , obtain positive coverage policies from additional third-party payers , obtain reimbursement and or enter into contracts with additional third-party payers for our current and new tests , and increase reimbursement rates for tests performed . finally , should the judgments underlying our estimated reimbursement change , our accrued revenue and financial results could be negatively impacted in future periods . cost of testing revenue the components of our cost of revenue are laboratory expenses , kit costs , sample collection expenses , compensation expense , license fees and royalties , depreciation and amortization , other expenses such as equipment and laboratory supplies , and allocations of facility and information technology expenses . costs associated with performing tests are recorded as the test is processed regardless of whether and when revenue is recognized with respect to that test . as a result , our cost of revenue as a percentage of revenue may vary significantly from period to period because we may not recognize all revenue in the period in which the associated costs are incurred . we expect cost of revenue in absolute dollars to increase as the number of tests we perform increases . however , we expect that the cost per test will decrease over time due to leveraging fixed costs , efficiencies we may gain as test volume increases and from automation , process efficiencies and other cost reductions . as we introduce new tests , initially our cost of revenue will be high as we expect to run suboptimal batch sizes , run quality control batches , test batches , registry samples and generally incur costs that may suppress or reduce gross margins . this will disproportionately increase our aggregate cost of revenue until we achieve efficiencies in processing these new tests . cost of product revenue cost of product revenue consists primarily of costs of purchasing instruments and consumables from third-party contract manufacturers , installation , warranty , service and packaging and delivery costs . in addition , cost of product includes royalty costs for licensed technologies included in our products , provisions for slow-moving and obsolete inventory and stock-based compensation expense . cost of product revenue for instruments and consumables is recognized in the period the related revenue is recognized . shipping and handling costs incurred for product shipments are included in cost of product in the consolidated statements of operations . research and development research and development expenses include expenses incurred to develop our technology , collect clinical samples and conduct clinical studies to develop and support our products and pipeline . these expenses consist of compensation expenses , direct research and development expenses such as prototype materials , laboratory supplies and costs associated with setting up and 62 conducting clinical studies at domestic and international sites , professional fees , depreciation and amortization , other miscellaneous expenses and allocation of facility and information technology expenses . we expense all research and development costs in the periods in which they are incurred . we expect to incur significant research and development expenses as we continue to invest in research and development activities related to developing additional products and evaluating various platforms . we incurred research and development expenses on ongoing evidence development for our afirma , percepta and envisia classifiers in 2019 . we believe a majority of our research and development expenses in and after 2020 will be predominantly in support of our pipeline products . selling and marketing selling and

for the year ended september 30 , 2012 , we completed and started delivery of 4 new residential buildings with total gfa of 64,141 square meters , compared to 17 new residential buildings with gfa of 160,320 square meters completed in fiscal 2011. currently , most of our real estate projects under construction are high-rise buildings with planned gfa over 709,038 square meters , which generally take about 2- 3 years for the construction , while our completed projects in the past were mostly multi-layer or sub-high-rise buildings and took 1-1.5 years for construction . it indicates that in certain future reporting periods , even if we have pre-sale contracts , we may not have any new construction work completed and delivered to buyers . this is a typical characteristic of our business and the uneven sales revenues from period to period are due in part to the rate at which units are completed and delivered to buyers under the current full accrual method of revenue recognition policy . despite the declining transaction volume and cooling real estate market , housing prices in tier 3 and tier 4 cities and counties have not shown a substantial correction . while short-term market correction is a process that the property sector is bound to undergo , the fundamental demand for residential housing will remain given the rising per capita income , accelerating urbanization and increasing demand for better living environment . for the year ended september 30 , 2012 , our average selling price ( “ asp ” ) for real estate projects ( excluding sales of parking spaces ) located in yang county was approximately $ 417 per square meter , a slight increase of 3 % from the asp of $ 401 per square meter in fiscal 2011. the asp of our hanzhong real estate projects ( excluding sales of parking spaces ) was approximately $ 754 per square meter , an increase of 30.7 % from the asp of $ 577 per square meter in fiscal 2011. this was mainly due to the fact that we sold more commercial properties in hanzhong during the first quarter of fiscal 2012. generally , the asp of commercial units is more than doubled from the asp of residential units . for the year ended september 30 , 2012 , the asp for commercial units located in hanzhong was $ 1,586 , comparing to the asp of $ 543 per square meter for residential units in hanzhong . the asp for our commercial units located in yong county was $ 865 per square meter , comparing to the asp of $ 369 per square meter for residential units in young county . with respect to capital funding requirements , while many property developers must now worry about their debt leverage and working capital needs for debt repayment , in contrast , the company does not have any external debt obligations outstanding at september 30 , 2012 and 2011. the company 's cash flows from pre-sales and sales and , if necessary , shareholder loans should provide financial support for the current development and operations . in order to fully implement our business plan , however , we may need to raise capital in future to sustain our expansion . therefore , we might seek to access the capital markets in both the u.s. and china to obtain the funds we require . at the present time , however , we do not have commitments of funds from any source . market outlook the government 's tightening policies should continue in the first half of 2013 , which may make real estate developers face more difficulties in obtaining land use rights and bank loans . these governmental policies will also negatively affect buyers ' confidence and consumption psychology . meanwhile , with affordable housing construction still underway , it takes time for abundant affordable housing to appear in the market . the company therefore expects the purchase restrictions and price ceiling policies to continue , which however , should have less impact on the company 's products comparing to the real estate market in tier 1 and tier 2 cities . per a china 35 cities housing price report published by e-house china r & d institute ( nyse : ej ) for 2011 , the average housing price to residence income ratio for tier 1 and tier 2 cities are in the range from 10.4 to 15.6 , while the ratio for tier 3 and tier 4 cities generally ranges from 4.2 to 8.0. our customers in tier 3 and tier 4 cities and counties have a constant growth in their disposable income . with lower housing price to family disposable income ratio and increasing urbanization level , there is a growing demand for high quality residential housing . the company expects to continuously focus on developing real estate properties in prime locations of tier 3 and tier 4 cities and counties . 29 we believe the fundamentals underpinning real estate demand remain strong . we intend to remain focused on our existing construction projects in hanzhong city and yang county , deepen our institutional sales network , enhance our cost and operational synergies and improve cash flows and strengthen our balance sheet . in this respect , in late of fiscal 2012 , we began the construction of two large residential projects in hanzhong city and addition high-rise residential buildings in yang county : · oriental pearl garden the project is located in the downtown of hanzhong city . it consists of 12 high-rise residential buildings with commercial shops on the first and second floors with an estimated gfa of 260,000 square meters . the company started construction in the third quarter of fiscal 2012 and expects to complete the whole construction in 2-3years . story_separator_special_tag as a result , income tax expenses for the year ended september 30 , 2012 were $ 283,077. income taxes decreased in fiscal 2012 by 74.5 % as compared to $ 1,108,284 for the year ended september 30 , 2011 as a result of our lower revenue in fiscal 2012. although the possibility exists for reinterpretation of the application of the tax regulations by higher tax authorities in the prc , potentially overturning the decision made by the local tax authority , the company has not experienced any reevaluation of the income taxes for prior years . management believes that the possibility of any reevaluation of income taxes is remote based on the fact that the company has obtained the written tax clearance from the local tax authority . thus , no additional taxes payable have been recorded for the difference between the taxes due based on taxable income calculated according to statutory taxable income method and the taxes due based on the fixed rate method . it is the company 's policy that if such reevaluation of income taxes becomes probable and the amount of additional taxes due can be reasonably estimated , additional taxes shall be recorded in the period in which the amount can be reasonably estimated and shall not be charged retroactively to an earlier period . 34 net income we realized $ 5,176,093 in net income for the year ended september 30 , 2012 , representing a 72.3 % or $ 13,543,845 decrease as compared to $ 18,719,938 for the year ended september 30 , 2011. other comprehensive income we operate primarily in the prc and the functional currency of our operating subsidiary is the chinese renminbi ( ” rmb ” ) . the rmb is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions . no representation is made that the rmb amounts could have been , or could be , converted into usd at the rates used in translation . translation adjustments resulting from this process amounted to $ 862,601 and $ 2,720,280 as of september 30 , 2012 and 2011 , respectively . the balance sheet amounts with the exception of equity at september 30 , 2012 were translated at 6.3190 rmb to 1.00 usd as compared to 6.3952 rmb to 1.00 usd at september 30 , 2011. the equity accounts were stated at their historical rate . the average translation rates applied to the income statements accounts for the periods ended september 30 , 2012 and 2011 were 6.3198 rmb to 1.00 usd and 6.5377 rmb to 1.00 usd , respectively . story_separator_special_tag value : 1 > 36 net cash used in operating activities during the twelve months ended september 30 , 2011 was $ 5,586,447 , consisting of net income of $ 18,719,938 , noncash adjustments of $ 137,059 and net changes in our operating assets and liabilities due to our expanded operating activities , including a decrease in restricted cash of $ 79,523 , an increase in advances to vendors and loans to outside parties of $ 1,403,056 which were made in order to maintain good relationships with the suppliers , an increase in real estate property completed of $ 7,284,509 , an increase in real estate property under development of $ 24,128,313 due to our expansion into multiple phases of the existing real estate projects during the year , increased security deposits for land use rights of $ 6,118,360 , increased accounts payable of $ 6,448,357 due to more progress achieved in multiple real estate projects , increased customer deposits in the amount of $ 7,372,965 which we were able to recognize as revenue when all conditions for revenue recognition were met , increased accrued expenses of $ 1,023,617 due to unpaid sales commissions and staff compensation , and decreased taxes payable of $ 71,217 due to an increase in our net income . the negative cash provided by operating activities is mainly attributable to our significant spending on real estate property under development and deposits for land use rights . net cash used in operating activities for the year ended september 30 , 2012 was $ 7,838,690 compared with a net cash used in operating activities of $ 5,586,447 for the year ended september 30 , 2011 , representing a net increase of $ 2,252,243 compared to fiscal 2011. investing activities net cash flows used in investing activities amounted to $ 0 and $ 490,755 for the years ended september 30 , 2012 and 2011 , respectively . the company purchased a new office floor in fiscal 2011. financing activities net cash flows provided by financing activities amounted to $ 0 for the year ended september 30 , 2012 , which represents $ 3,142,332 proceeds of a short-term loan from a controlling shareholder to finance the land use rights purchase and the company ` s full repayment of such loan during the year . net cash flows provided by financing activities amounted to $ 1,810,000 in the twelve months ended september 30 , 2011 , which was a loan from our major shareholder . off-balance sheet arrangements we do not have any off-balance sheet arrangements . inflation inflation has not had a material impact on our business and we do not expect inflation to have a material impact on our business in the near future . critical accounting policies and management estimates principles of consolidation the accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the united states of america ( `` u.s. gaap `` ) . the unaudited condensed consolidated financial statements include the financial statements of the company and its subsidiaries china hgs investment inc. , shaanxi hanguangsha management and consultation limited company and the variable interest entity shaanxi guangsha investment and development group co. , ltd. ( “ guangsha ” ) . all significant inter-company balances and transactions are eliminated in consolidation . 37 we have continued to

liquidity and capital resources current assets and liabilities our principal need for liquidity and capital resources is to maintain working capital sufficient to support our operations and to make capital expenditures to finance the growth of our business . to date , we have financed our operations primarily through cash flows from operations and borrowings from our principal shareholder . due to the credit tightening policies in china , banks were very slow to approve mortgage lending during the year ended september 30 , 2012. due to slowdown in sales , our total cash and restricted cash balance decreased to approximately $ 2.2 million as compared to $ 9.6 million at septermber 30 , 2011. such balances have been slowly starting to increase after the first quarter of fiscal 2012 from the low point of $ 1.3 million at december 31 , 2011. the people 's bank of china ( “ pboc ” ) posted a statement on its website on february 7 , 2012 , indicating that pboc would ensure that lending support to affordable housing projects and loan demand from first-home families is met . since most of our customers are first-time home buyers and our affordable housing units are in the pre-sales stage , we expect our cash flow will continue to improve in fiscal 2013. as of september 30 , 2012 , the company had approximately $ 7.7 million in working capital , a decrease of $ 18.6 million as compared to $ 26.3 million as of september 30 , 2011. the decrease in working capital was mainly related to a decrease of the current portion of real estate property under development of $ 8.1 million , a decrease of advance to venders of $ 3.4 million , a decrease of loans to outside parties of $ 2.6 million and an increase of other payable of 0.9 million , offsetting by a decrease in accounts payable of $ 3.6 million and an increase in current portion of real estate property development completed of $ 0.6 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 current assets and liabilities our principal need for liquidity and capital resources is to maintain working capital sufficient to support our operations and to make capital expenditures to finance the growth of our business . to date , we have financed our operations primarily through cash flows from operations and borrowings from our principal shareholder . due to the credit tightening policies in china , banks were very slow to approve mortgage lending during the year ended september 30 , 2012. due to slowdown in sales , our total cash and restricted cash balance decreased to approximately $ 2.2 million as compared to $ 9.6 million at septermber 30 , 2011. such balances have been slowly starting to increase after the first quarter of fiscal 2012 from the low point of $ 1.3 million at december 31 , 2011. the people 's bank of china ( “ pboc ” ) posted a statement on its website on february 7 , 2012 , indicating that pboc would ensure that lending support to affordable housing projects and loan demand from first-home families is met . since most of our customers are first-time home buyers and our affordable housing units are in the pre-sales stage , we expect our cash flow will continue to improve in fiscal 2013. as of september 30 , 2012 , the company had approximately $ 7.7 million in working capital , a decrease of $ 18.6 million as compared to $ 26.3 million as of september 30 , 2011. the decrease in working capital was mainly related to a decrease of the current portion of real estate property under development of $ 8.1 million , a decrease of advance to venders of $ 3.4 million , a decrease of loans to outside parties of $ 2.6 million and an increase of other payable of 0.9 million , offsetting by a decrease in accounts payable of $ 3.6 million and an increase in current portion of real estate property development completed of $ 0.6 million . ``` Suspicious Activity Report : for the year ended september 30 , 2012 , we completed and started delivery of 4 new residential buildings with total gfa of 64,141 square meters , compared to 17 new residential buildings with gfa of 160,320 square meters completed in fiscal 2011. currently , most of our real estate projects under construction are high-rise buildings with planned gfa over 709,038 square meters , which generally take about 2- 3 years for the construction , while our completed projects in the past were mostly multi-layer or sub-high-rise buildings and took 1-1.5 years for construction . it indicates that in certain future reporting periods , even if we have pre-sale contracts , we may not have any new construction work completed and delivered to buyers . this is a typical characteristic of our business and the uneven sales revenues from period to period are due in part to the rate at which units are completed and delivered to buyers under the current full accrual method of revenue recognition policy . despite the declining transaction volume and cooling real estate market , housing prices in tier 3 and tier 4 cities and counties have not shown a substantial correction . while short-term market correction is a process that the property sector is bound to undergo , the fundamental demand for residential housing will remain given the rising per capita income , accelerating urbanization and increasing demand for better living environment . for the year ended september 30 , 2012 , our average selling price ( “ asp ” ) for real estate projects ( excluding sales of parking spaces ) located in yang county was approximately $ 417 per square meter , a slight increase of 3 % from the asp of $ 401 per square meter in fiscal 2011. the asp of our hanzhong real estate projects ( excluding sales of parking spaces ) was approximately $ 754 per square meter , an increase of 30.7 % from the asp of $ 577 per square meter in fiscal 2011. this was mainly due to the fact that we sold more commercial properties in hanzhong during the first quarter of fiscal 2012. generally , the asp of commercial units is more than doubled from the asp of residential units . for the year ended september 30 , 2012 , the asp for commercial units located in hanzhong was $ 1,586 , comparing to the asp of $ 543 per square meter for residential units in hanzhong . the asp for our commercial units located in yong county was $ 865 per square meter , comparing to the asp of $ 369 per square meter for residential units in young county . with respect to capital funding requirements , while many property developers must now worry about their debt leverage and working capital needs for debt repayment , in contrast , the company does not have any external debt obligations outstanding at september 30 , 2012 and 2011. the company 's cash flows from pre-sales and sales and , if necessary , shareholder loans should provide financial support for the current development and operations . in order to fully implement our business plan , however , we may need to raise capital in future to sustain our expansion . therefore , we might seek to access the capital markets in both the u.s. and china to obtain the funds we require . at the present time , however , we do not have commitments of funds from any source . market outlook the government 's tightening policies should continue in the first half of 2013 , which may make real estate developers face more difficulties in obtaining land use rights and bank loans . these governmental policies will also negatively affect buyers ' confidence and consumption psychology . meanwhile , with affordable housing construction still underway , it takes time for abundant affordable housing to appear in the market . the company therefore expects the purchase restrictions and price ceiling policies to continue , which however , should have less impact on the company 's products comparing to the real estate market in tier 1 and tier 2 cities . per a china 35 cities housing price report published by e-house china r & d institute ( nyse : ej ) for 2011 , the average housing price to residence income ratio for tier 1 and tier 2 cities are in the range from 10.4 to 15.6 , while the ratio for tier 3 and tier 4 cities generally ranges from 4.2 to 8.0. our customers in tier 3 and tier 4 cities and counties have a constant growth in their disposable income . with lower housing price to family disposable income ratio and increasing urbanization level , there is a growing demand for high quality residential housing . the company expects to continuously focus on developing real estate properties in prime locations of tier 3 and tier 4 cities and counties . 29 we believe the fundamentals underpinning real estate demand remain strong . we intend to remain focused on our existing construction projects in hanzhong city and yang county , deepen our institutional sales network , enhance our cost and operational synergies and improve cash flows and strengthen our balance sheet . in this respect , in late of fiscal 2012 , we began the construction of two large residential projects in hanzhong city and addition high-rise residential buildings in yang county : · oriental pearl garden the project is located in the downtown of hanzhong city . it consists of 12 high-rise residential buildings with commercial shops on the first and second floors with an estimated gfa of 260,000 square meters . the company started construction in the third quarter of fiscal 2012 and expects to complete the whole construction in 2-3years . story_separator_special_tag as a result , income tax expenses for the year ended september 30 , 2012 were $ 283,077. income taxes decreased in fiscal 2012 by 74.5 % as compared to $ 1,108,284 for the year ended september 30 , 2011 as a result of our lower revenue in fiscal 2012. although the possibility exists for reinterpretation of the application of the tax regulations by higher tax authorities in the prc , potentially overturning the decision made by the local tax authority , the company has not experienced any reevaluation of the income taxes for prior years . management believes that the possibility of any reevaluation of income taxes is remote based on the fact that the company has obtained the written tax clearance from the local tax authority . thus , no additional taxes payable have been recorded for the difference between the taxes due based on taxable income calculated according to statutory taxable income method and the taxes due based on the fixed rate method . it is the company 's policy that if such reevaluation of income taxes becomes probable and the amount of additional taxes due can be reasonably estimated , additional taxes shall be recorded in the period in which the amount can be reasonably estimated and shall not be charged retroactively to an earlier period . 34 net income we realized $ 5,176,093 in net income for the year ended september 30 , 2012 , representing a 72.3 % or $ 13,543,845 decrease as compared to $ 18,719,938 for the year ended september 30 , 2011. other comprehensive income we operate primarily in the prc and the functional currency of our operating subsidiary is the chinese renminbi ( ” rmb ” ) . the rmb is not freely convertible into foreign currency and all foreign exchange transactions must take place through authorized institutions . no representation is made that the rmb amounts could have been , or could be , converted into usd at the rates used in translation . translation adjustments resulting from this process amounted to $ 862,601 and $ 2,720,280 as of september 30 , 2012 and 2011 , respectively . the balance sheet amounts with the exception of equity at september 30 , 2012 were translated at 6.3190 rmb to 1.00 usd as compared to 6.3952 rmb to 1.00 usd at september 30 , 2011. the equity accounts were stated at their historical rate . the average translation rates applied to the income statements accounts for the periods ended september 30 , 2012 and 2011 were 6.3198 rmb to 1.00 usd and 6.5377 rmb to 1.00 usd , respectively . story_separator_special_tag value : 1 > 36 net cash used in operating activities during the twelve months ended september 30 , 2011 was $ 5,586,447 , consisting of net income of $ 18,719,938 , noncash adjustments of $ 137,059 and net changes in our operating assets and liabilities due to our expanded operating activities , including a decrease in restricted cash of $ 79,523 , an increase in advances to vendors and loans to outside parties of $ 1,403,056 which were made in order to maintain good relationships with the suppliers , an increase in real estate property completed of $ 7,284,509 , an increase in real estate property under development of $ 24,128,313 due to our expansion into multiple phases of the existing real estate projects during the year , increased security deposits for land use rights of $ 6,118,360 , increased accounts payable of $ 6,448,357 due to more progress achieved in multiple real estate projects , increased customer deposits in the amount of $ 7,372,965 which we were able to recognize as revenue when all conditions for revenue recognition were met , increased accrued expenses of $ 1,023,617 due to unpaid sales commissions and staff compensation , and decreased taxes payable of $ 71,217 due to an increase in our net income . the negative cash provided by operating activities is mainly attributable to our significant spending on real estate property under development and deposits for land use rights . net cash used in operating activities for the year ended september 30 , 2012 was $ 7,838,690 compared with a net cash used in operating activities of $ 5,586,447 for the year ended september 30 , 2011 , representing a net increase of $ 2,252,243 compared to fiscal 2011. investing activities net cash flows used in investing activities amounted to $ 0 and $ 490,755 for the years ended september 30 , 2012 and 2011 , respectively . the company purchased a new office floor in fiscal 2011. financing activities net cash flows provided by financing activities amounted to $ 0 for the year ended september 30 , 2012 , which represents $ 3,142,332 proceeds of a short-term loan from a controlling shareholder to finance the land use rights purchase and the company ` s full repayment of such loan during the year . net cash flows provided by financing activities amounted to $ 1,810,000 in the twelve months ended september 30 , 2011 , which was a loan from our major shareholder . off-balance sheet arrangements we do not have any off-balance sheet arrangements . inflation inflation has not had a material impact on our business and we do not expect inflation to have a material impact on our business in the near future . critical accounting policies and management estimates principles of consolidation the accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the united states of america ( `` u.s. gaap `` ) . the unaudited condensed consolidated financial statements include the financial statements of the company and its subsidiaries china hgs investment inc. , shaanxi hanguangsha management and consultation limited company and the variable interest entity shaanxi guangsha investment and development group co. , ltd. ( “ guangsha ” ) . all significant inter-company balances and transactions are eliminated in consolidation . 37 we have continued to

as of december 31 , 2014 , we had over 7,700 customers in more than 100 countries , including a majority of each of the forbes global 100 and fortune 100. in 2014 , 2013 and 2012 , approximately 70 % , 70 % and 68 % , respectively , of our revenues were derived from customers in the united states . we sell our solutions to enterprises and government entities primarily through our field sales force and to small and medium-sized businesses through our inside sales force . we generate a significant portion of sales through our channel partners , including managed service providers , value-added resellers and consulting firms in the united states and internationally . 39 we have had continued revenue growth over the past three years . our revenues increased from $ 91.4 million in 2012 to $ 108.0 million in 2013 , and reached $ 133.6 million in 2014 , representing period-over-period increases of $ 16.5 million , and $ 25.6 million , or 18 % and 24 % , respectively . we generated net income of $ 2.2 million in 2012 , $ 1.5 million in 2013 , and $ 30.2 million in 2014 . net income in 2014 includes a tax benefit of $ 23.7 million for recognition of our u.s. federal and certain state deferred tax assets . on september 28 , 2012 , our common stock commenced trading on the nasdaq stock market under the trading symbol “ qlys , ” and on october 3 , 2012 we closed our initial public offering . in our initial public offering , we sold and issued 7,836,250 shares and certain selling stockholders sold an additional 875,000 shares . the net proceeds to us from the offering were approximately $ 87.5 million , after deducting underwriting discounts and commissions , and before deducting total expenses in connection with this offering of $ 2.9 million . key metrics in addition to measures of financial performance presented in our consolidated financial statements , we monitor the key metrics set forth below to help us evaluate growth trends , establish budgets , measure the effectiveness of our sales and marketing efforts and assess operational efficiencies . replace_table_token_5_th adjusted ebitda we monitor adjusted ebitda , a non-gaap financial measure , to analyze our financial results and believe that it is useful to investors , as a supplement to u.s. gaap measures , in evaluating our ongoing operational performance and enhancing an overall understanding of our past financial performance . we believe that adjusted ebitda helps illustrate underlying trends in our business that could otherwise be masked by the effect of the income or expenses that we exclude in adjusted ebitda . furthermore , we use this measure to establish budgets and operational goals for managing our business and evaluating our performance . we also believe that adjusted ebitda provides an additional tool for investors to use in comparing our recurring core business operating results over multiple periods with other companies in our industry . adjusted ebitda should not be considered in isolation from , or as a substitute for , financial information prepared in accordance with u.s. gaap . we calculate adjusted ebitda as net income before ( 1 ) other ( income ) expense , net , which includes interest income , interest expense and other income and expense , ( 2 ) provision for ( benefit from ) income taxes , ( 3 ) depreciation and amortization of property and equipment , ( 4 ) amortization of intangible assets and ( 5 ) stock-based compensation . 40 the following unaudited table presents the reconciliation of net income to adjusted ebitda for each of the periods presented . replace_table_token_6_th ( 1 ) net income and other ( income ) expense for fiscal years 2013 and prior have been adjusted for an immaterial error as further described in note 1 to our consolidated financial statements included elsewhere in this annual report on form 10-k. free cash flow we define free cash flow , a non-gaap measure , as net cash provided by operating activities less purchases of property and equipment and capitalization of software development costs . we monitor free cash flow as a liquidity measure because we believe it provides useful information to management and investors about the amount of cash we generated , that , after the acquisition of property and equipment and capitalized software development costs , can be used for strategic opportunities , including investing in our business , making strategic acquisitions and strengthening the balance sheet . we also believe free cash flow provides an additional tool for investors to use in comparing our recurring core business operating results over multiple periods . a limitation of using free cash flow as a means for evaluating liquidity is that free cash flow does not represent the total increase or decrease in cash and cash equivalents for the period because it excludes cash provided by or used in other investing and financing activities . in addition , it is important to note that other companies , including companies in our industry , may not use free cash flow , may calculate free cash flow 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 free cash flow as a comparative measure . a reconciliation of free cash flow to net cash provided by operating activities , the most directly comparable financial measure calculated and presented in accordance with gaap , is provided below : replace_table_token_7_th 41 limitations of adjusted ebitda and free cash flow adjusted ebitda and free cash flow , non-gaap financial measures , have limitations as analytical tools , and should not be considered in isolation from or as a substitute for the measures presented in accordance with u.s. gaap . story_separator_special_tag provision for income taxes replace_table_token_22_th provision for income taxes increased $ 0.1 million in 2013 compared to 2012 , primarily due to increases in foreign and state taxes and also due to a reduction of the liability for uncertain tax positions for closure of tax years in foreign jurisdictions on 2012. story_separator_special_tag style= `` font-family : arial ; font-size:10pt ; `` > was primarily attributable to proceeds of $ 84.5 million from our initial public offering , net of offering costs , and $ 2.1 million of proceeds from the exercise of stock options . these cash inflows were partially offset by prepayments on our capital lease obligations of $ 2.4 million and payment of non-contingent consideration related to our nemean acquisition of $ 1.0 million . contractual obligations our principal commitments consist of obligations under our outstanding leases for office space , third-party data centers and office equipment . the following table summarizes our contractual cash obligation at december 31 , 2014 and the effect such obligations are expected to have on our liquidity and cash flows in future periods : replace_table_token_24_th off-balance sheet arrangements during the periods presented , we did not have , nor do we currently have , any relationships with unconsolidated entities or financial partnerships , such as entities often referred to as structured finance or special purpose entities . recent accounting pronouncements see note 1 to the consolidated financial statements in part ii , item 8 of this annual report on form10-k for a discussion of recent accounting pronouncements . critical accounting policies and estimates our consolidated financial statements are prepared in accordance with u.s. gaap . the preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets , liabilities , revenues , expenses and related disclosures . on an ongoing basis , we evaluate our estimates and assumptions . our actual results may differ from these estimates under different assumptions or conditions . we believe that of our significant accounting policies , which are described in the notes to our consolidated financial statements , the following accounting policies involve the greatest degree of judgment and complexity and have the greatest potential impact on our consolidated financial statements . a critical accounting policy is one that is material to the presentation of our consolidated financial statements and requires us to make difficult , subjective or complex judgments for uncertain matters that could have a material effect on our financial condition and results of operations . accordingly , these are the policies we believe are the most critical to aid in fully understanding and evaluating our financial condition and results of operations . 51 revenue recognition we derive revenues from subscriptions that require customers to pay a fee in order to access our cloud solutions . customers generally enter into one year renewable annual subscriptions . the subscription fee entitles the customer to an unlimited number of scans for a specified number of networked devices or web applications and , if requested by a customer as part of their subscription , a specified number of physical or virtual scanner appliances . our physical and virtual scanner appliances are requested by certain customers as part of their subscriptions in order to scan it infrastructures within their firewalls and do not function without , and are not sold separately from , subscriptions for our solutions . customers are required to return physical scanner appliances if they do not renew their subscriptions . in some limited cases , we also provide certain computer equipment used to extend our qualysguard cloud platform into our customers ' private cloud environment . we assess the ability to separate multiple deliverables in accordance with the relevant accounting literature . we recognize revenues when all of the following conditions are met : ( a ) there is persuasive evidence of an arrangement ; ( b ) the service has been provided to the customer ; ( c ) the collection of the fees is reasonably assured ; and ( d ) the amount of fees to be paid by the customer is fixed or determinable . subscriptions for unlimited scans and certain limited scan arrangements with firm expiration dates are recognized ratably over the period in which the services are performed , generally one year . we recognize revenues for certain other limited scan arrangements , where expiration dates can be extended , on an as-used basis . we recognize the subscription of physical scanner appliances and other computer equipment as revenues ratably over the period of the subscription , which is commensurate with the term of the related subscription . because the customer 's access to our cloud solutions are delivered at the same time or within close proximity to the delivery of physical scanner appliances and the terms are commensurate for these services and equipment , we consider these elements as a single unit of accounting recognized ratably over the subscription term . costs of shipping and handling charges associated with physical scanner appliances and other computer equipment are included in cost of revenues . deferred revenues consist of revenues billed or received that will be recognized in the future under subscriptions existing at the balance sheet date . income taxes we are subject to taxes in the united states as well as other tax jurisdictions in which we conduct business . earnings from our non-u.s. activities are subject to local income tax and may be subject to u.s. income tax . income taxes are accounted for under the asset and liability method . deferred tax assets and liabilities are recognized for the tax impact of timing differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards . deferred tax assets and liabilities are measured using statutory tax rates and laws expected to apply to taxable income in the years in which those temporary differences are expected to

liquidity and capital resources since our inception , we had financed our operations primarily through proceeds from the issuance of our preferred stock , including $ 23.2 million invested by philippe f. courtot , our chairman , president and chief executive officer , and cash flows from operations . on october 3 , 2012 , we closed our ipo and received net proceeds of approximately $ 87.5 million after deducting underwriting discounts and commissions , and before deducting total expenses in connection with our ipo of $ 2.9 million . at december 31 , 2014 , our principal source of liquidity was cash , cash equivalents and short-term and long-term investments of $ 166.7 million , including $ 2.4 million held outside of the united states by our foreign subsidiaries . we do not anticipate that we will need funds generated from foreign operations to fund our domestic operations . however , if we repatriate these funds , we could be subject to u.s. income taxes on such amounts , less previously paid foreign income taxes . we have experienced positive cash flows from operations during the years ended december 31 , 2014 , 2013 and 2012 . we believe our existing cash , cash equivalents , short-term and long-term investments , and cash from operations will be sufficient to fund our operations for at least the next twelve months . we expect to spend approximately $ 17 million through december 31 , 2015 for capital expenditures , primarily related to infrastructure to support the anticipated growth in our business . our future capital requirements will depend on many factors , including our rate of revenue growth , the expansion of our sales and marketing activities , the timing and extent of our spending on research and development efforts , international expansion and investment in data centers . we may also seek to invest in or acquire complementary businesses or technologies .

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 had financed our operations primarily through proceeds from the issuance of our preferred stock , including $ 23.2 million invested by philippe f. courtot , our chairman , president and chief executive officer , and cash flows from operations . on october 3 , 2012 , we closed our ipo and received net proceeds of approximately $ 87.5 million after deducting underwriting discounts and commissions , and before deducting total expenses in connection with our ipo of $ 2.9 million . at december 31 , 2014 , our principal source of liquidity was cash , cash equivalents and short-term and long-term investments of $ 166.7 million , including $ 2.4 million held outside of the united states by our foreign subsidiaries . we do not anticipate that we will need funds generated from foreign operations to fund our domestic operations . however , if we repatriate these funds , we could be subject to u.s. income taxes on such amounts , less previously paid foreign income taxes . we have experienced positive cash flows from operations during the years ended december 31 , 2014 , 2013 and 2012 . we believe our existing cash , cash equivalents , short-term and long-term investments , and cash from operations will be sufficient to fund our operations for at least the next twelve months . we expect to spend approximately $ 17 million through december 31 , 2015 for capital expenditures , primarily related to infrastructure to support the anticipated growth in our business . our future capital requirements will depend on many factors , including our rate of revenue growth , the expansion of our sales and marketing activities , the timing and extent of our spending on research and development efforts , international expansion and investment in data centers . we may also seek to invest in or acquire complementary businesses or technologies . ``` Suspicious Activity Report : as of december 31 , 2014 , we had over 7,700 customers in more than 100 countries , including a majority of each of the forbes global 100 and fortune 100. in 2014 , 2013 and 2012 , approximately 70 % , 70 % and 68 % , respectively , of our revenues were derived from customers in the united states . we sell our solutions to enterprises and government entities primarily through our field sales force and to small and medium-sized businesses through our inside sales force . we generate a significant portion of sales through our channel partners , including managed service providers , value-added resellers and consulting firms in the united states and internationally . 39 we have had continued revenue growth over the past three years . our revenues increased from $ 91.4 million in 2012 to $ 108.0 million in 2013 , and reached $ 133.6 million in 2014 , representing period-over-period increases of $ 16.5 million , and $ 25.6 million , or 18 % and 24 % , respectively . we generated net income of $ 2.2 million in 2012 , $ 1.5 million in 2013 , and $ 30.2 million in 2014 . net income in 2014 includes a tax benefit of $ 23.7 million for recognition of our u.s. federal and certain state deferred tax assets . on september 28 , 2012 , our common stock commenced trading on the nasdaq stock market under the trading symbol “ qlys , ” and on october 3 , 2012 we closed our initial public offering . in our initial public offering , we sold and issued 7,836,250 shares and certain selling stockholders sold an additional 875,000 shares . the net proceeds to us from the offering were approximately $ 87.5 million , after deducting underwriting discounts and commissions , and before deducting total expenses in connection with this offering of $ 2.9 million . key metrics in addition to measures of financial performance presented in our consolidated financial statements , we monitor the key metrics set forth below to help us evaluate growth trends , establish budgets , measure the effectiveness of our sales and marketing efforts and assess operational efficiencies . replace_table_token_5_th adjusted ebitda we monitor adjusted ebitda , a non-gaap financial measure , to analyze our financial results and believe that it is useful to investors , as a supplement to u.s. gaap measures , in evaluating our ongoing operational performance and enhancing an overall understanding of our past financial performance . we believe that adjusted ebitda helps illustrate underlying trends in our business that could otherwise be masked by the effect of the income or expenses that we exclude in adjusted ebitda . furthermore , we use this measure to establish budgets and operational goals for managing our business and evaluating our performance . we also believe that adjusted ebitda provides an additional tool for investors to use in comparing our recurring core business operating results over multiple periods with other companies in our industry . adjusted ebitda should not be considered in isolation from , or as a substitute for , financial information prepared in accordance with u.s. gaap . we calculate adjusted ebitda as net income before ( 1 ) other ( income ) expense , net , which includes interest income , interest expense and other income and expense , ( 2 ) provision for ( benefit from ) income taxes , ( 3 ) depreciation and amortization of property and equipment , ( 4 ) amortization of intangible assets and ( 5 ) stock-based compensation . 40 the following unaudited table presents the reconciliation of net income to adjusted ebitda for each of the periods presented . replace_table_token_6_th ( 1 ) net income and other ( income ) expense for fiscal years 2013 and prior have been adjusted for an immaterial error as further described in note 1 to our consolidated financial statements included elsewhere in this annual report on form 10-k. free cash flow we define free cash flow , a non-gaap measure , as net cash provided by operating activities less purchases of property and equipment and capitalization of software development costs . we monitor free cash flow as a liquidity measure because we believe it provides useful information to management and investors about the amount of cash we generated , that , after the acquisition of property and equipment and capitalized software development costs , can be used for strategic opportunities , including investing in our business , making strategic acquisitions and strengthening the balance sheet . we also believe free cash flow provides an additional tool for investors to use in comparing our recurring core business operating results over multiple periods . a limitation of using free cash flow as a means for evaluating liquidity is that free cash flow does not represent the total increase or decrease in cash and cash equivalents for the period because it excludes cash provided by or used in other investing and financing activities . in addition , it is important to note that other companies , including companies in our industry , may not use free cash flow , may calculate free cash flow 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 free cash flow as a comparative measure . a reconciliation of free cash flow to net cash provided by operating activities , the most directly comparable financial measure calculated and presented in accordance with gaap , is provided below : replace_table_token_7_th 41 limitations of adjusted ebitda and free cash flow adjusted ebitda and free cash flow , non-gaap financial measures , have limitations as analytical tools , and should not be considered in isolation from or as a substitute for the measures presented in accordance with u.s. gaap . story_separator_special_tag provision for income taxes replace_table_token_22_th provision for income taxes increased $ 0.1 million in 2013 compared to 2012 , primarily due to increases in foreign and state taxes and also due to a reduction of the liability for uncertain tax positions for closure of tax years in foreign jurisdictions on 2012. story_separator_special_tag style= `` font-family : arial ; font-size:10pt ; `` > was primarily attributable to proceeds of $ 84.5 million from our initial public offering , net of offering costs , and $ 2.1 million of proceeds from the exercise of stock options . these cash inflows were partially offset by prepayments on our capital lease obligations of $ 2.4 million and payment of non-contingent consideration related to our nemean acquisition of $ 1.0 million . contractual obligations our principal commitments consist of obligations under our outstanding leases for office space , third-party data centers and office equipment . the following table summarizes our contractual cash obligation at december 31 , 2014 and the effect such obligations are expected to have on our liquidity and cash flows in future periods : replace_table_token_24_th off-balance sheet arrangements during the periods presented , we did not have , nor do we currently have , any relationships with unconsolidated entities or financial partnerships , such as entities often referred to as structured finance or special purpose entities . recent accounting pronouncements see note 1 to the consolidated financial statements in part ii , item 8 of this annual report on form10-k for a discussion of recent accounting pronouncements . critical accounting policies and estimates our consolidated financial statements are prepared in accordance with u.s. gaap . the preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets , liabilities , revenues , expenses and related disclosures . on an ongoing basis , we evaluate our estimates and assumptions . our actual results may differ from these estimates under different assumptions or conditions . we believe that of our significant accounting policies , which are described in the notes to our consolidated financial statements , the following accounting policies involve the greatest degree of judgment and complexity and have the greatest potential impact on our consolidated financial statements . a critical accounting policy is one that is material to the presentation of our consolidated financial statements and requires us to make difficult , subjective or complex judgments for uncertain matters that could have a material effect on our financial condition and results of operations . accordingly , these are the policies we believe are the most critical to aid in fully understanding and evaluating our financial condition and results of operations . 51 revenue recognition we derive revenues from subscriptions that require customers to pay a fee in order to access our cloud solutions . customers generally enter into one year renewable annual subscriptions . the subscription fee entitles the customer to an unlimited number of scans for a specified number of networked devices or web applications and , if requested by a customer as part of their subscription , a specified number of physical or virtual scanner appliances . our physical and virtual scanner appliances are requested by certain customers as part of their subscriptions in order to scan it infrastructures within their firewalls and do not function without , and are not sold separately from , subscriptions for our solutions . customers are required to return physical scanner appliances if they do not renew their subscriptions . in some limited cases , we also provide certain computer equipment used to extend our qualysguard cloud platform into our customers ' private cloud environment . we assess the ability to separate multiple deliverables in accordance with the relevant accounting literature . we recognize revenues when all of the following conditions are met : ( a ) there is persuasive evidence of an arrangement ; ( b ) the service has been provided to the customer ; ( c ) the collection of the fees is reasonably assured ; and ( d ) the amount of fees to be paid by the customer is fixed or determinable . subscriptions for unlimited scans and certain limited scan arrangements with firm expiration dates are recognized ratably over the period in which the services are performed , generally one year . we recognize revenues for certain other limited scan arrangements , where expiration dates can be extended , on an as-used basis . we recognize the subscription of physical scanner appliances and other computer equipment as revenues ratably over the period of the subscription , which is commensurate with the term of the related subscription . because the customer 's access to our cloud solutions are delivered at the same time or within close proximity to the delivery of physical scanner appliances and the terms are commensurate for these services and equipment , we consider these elements as a single unit of accounting recognized ratably over the subscription term . costs of shipping and handling charges associated with physical scanner appliances and other computer equipment are included in cost of revenues . deferred revenues consist of revenues billed or received that will be recognized in the future under subscriptions existing at the balance sheet date . income taxes we are subject to taxes in the united states as well as other tax jurisdictions in which we conduct business . earnings from our non-u.s. activities are subject to local income tax and may be subject to u.s. income tax . income taxes are accounted for under the asset and liability method . deferred tax assets and liabilities are recognized for the tax impact of timing differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards . deferred tax assets and liabilities are measured using statutory tax rates and laws expected to apply to taxable income in the years in which those temporary differences are expected to

readers are cautioned not to place undue reliance on these forward-looking statements , which speak only as of the date on which they are made . the company undertakes no obligation to update or revise any forward-looking statements . these forward-looking statements include statements of management 's plans and objectives for our future operations and statements of future economic performance , information regarding our expansion and possible results from expansion , our expected growth , our capital budget and future capital requirements , the availability of funds and our ability to meet future capital needs , the realization of our deferred tax assets , and the assumptions described in this report underlying such forward-looking statements . actual results and developments could differ materially from those expressed in or implied by such statements due to a number of factors , including , without limitation , those described in the context of such forward-looking statements , our expansion and acquisition strategy , our ability to achieve operating efficiencies , industry pricing and technology trends , evolving industry standards , regulatory matters , general economic and business conditions , the strength and financial resources of our competitors , our ability to find and retain skilled personnel , the political and economic climate in which we conduct operations and the risk factors described from time to time in our other documents and reports filed with the securities and exchange commission ( the `` commission `` ) . additional factors that could cause actual results to differ materially from the forward-looking statements include , but are not limited to : 1 ) our ability to successfully develop , manufacture and deliver our products on a timely basis and in the prescribed condition ; 2 ) our ability to compete effectively with other companies in the same industry ; 3 ) our ability to raise sufficient capital in order to effectuate our business plan ; and 4 ) our ability to retain our key executives . critical accounting policies our discussion and analysis of our financial condition and results of operations are based on our financial statements , which have been 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 and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods . on an on-going basis , we evaluate our estimates and judgments , including those related to revenue , receivable , inventory , and accrued expenses . we base our estimates on historical experience , known trends and events and various other factors that we believe 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 . changes in estimates are recorded in the period in which they become known . we believe the following critical accounting policies affect our more significant judgments and estimates used in the preparation of our consolidated financial statements . revenue recognition in accordance with the asc topic 605 , “ revenue recognition ” , the company recognizes revenue when persuasive evidence of an arrangement exists , transfer of title has occurred or services have been rendered , the selling price is fixed or determinable and collectability is reasonably assured . the company 's revenue is principally derived from three primary sources : sales of energy saving flow control equipment , provision of energy project management and sub-contracting services , and provision of energy-saving reconstruction projects . 37 ( a ) sale of products the company derives a majority of its revenues from the sale of energy saving flow control equipment . generally , the energy saving flow control equipment is manufactured and configured to customer requirements . the company typically produces the energy saving flow control equipment for customers during a period from one to six months . when the company completes the production in accordance with the customer 's specification , the customer is required to inspect the finished products for quality and suitability , to its full satisfaction , then the company makes delivery to the customer the company recognizes revenue from the sale of such finished products upon delivery to the customers , when the title and risk of loss are fully transferred to the customers . the company records its revenues , net of value added taxes ( “ vat ” ) . the company is subject to vat which is levied on the majority of the products at the rate of 17 % on the invoiced value of sales . ( b ) service revenue service revenue is derived from energy-saving technical services , project management or sub-contracting services that are not an element of the arrangement for the sale of products . these services are generally billed on a time-cost plus basis , for the period of service which is generally from two to three months . revenue is recognized , net of business taxes when the service is rendered and accepted by the customers . ( c ) interest income interest income is recognized on a time apportionment basis , taking into account the principal amounts outstanding and the interest rates applicable . accounts receivable and allowance for doubtful accounts accounts receivable are recorded at the invoiced amount , do not bear interest and are due within the contractual payment terms , generally 30 to 90 days from shipment . story_separator_special_tag the cost of service revenues decreased by $ 2,681,829 or 50.72 % for the year ended december 31 , 2011 compared to the cost of revenues for the year ended december 31 , 2010. the gross margin for services was $ 1,425,962 and $ 2,541,489 , or 35.37 % and 32.46 % , for the years ended december 31 , 2011 and 2010 , respectively . the increase in gross margin is due to the significant increase in gross margin of energy conservation technology services . cost of projects there was no project revenue for the year ended december 31 , 2011 , therefore there was no cost of projects recognized during the year . operating expenses the total operating expenses were $ 1,454,151 and $ 1,234,597 , or 9.74 % and 4.87 % of total revenues , for the year ended december 31 , 2011 and 2010 , respectively . the total operating expenses increased by $ 219,554 or 17.78 % for the year ended december 31 , 2011 compared to the year ended december 31 , 2010. the increase of operating expenses is primarily due to the company receiving its land use rights for the new facility located in yinzhou district industrial park and starting to pay the land use rights tax . the company also starts to pay the nasdaq listing fees . there was also an increase in legal and professional fees , and ir fees during the year .. sales and marketing expenses the total sales and marketing expenses were $ 101,586 and $ 81,885 , or 0.68 % and 0.32 % of total revenues , for the years ended december 31 , 2011 and 2010 , respectively . the sales and marketing expenses increased by $ 19,701 or 24.06 % . the increase in sales and marketing is due to the increase in traveling expenses incurred by the sales staff in order to explore more business opportunities for the company . general and administrative expenses general and administrative expenses were $ 1,352,565 and $ 1,152,712 , or 9.05 % and 4.54 % of total revenue , for the year ended december 31 , 2011 and 2010 , respectively . the general and administrative expenses increased by $ 199,853 or 17.34 % . the increase in general and administrative expenses was caused by the increase in bank loan guarantee fee , legal and professional fees and investor relations fees . income from operations as a result of the foregoing , our income from operations was $ 2,717,928 or 18.21 % of total revenues , for the year ended december 31 , 2011 , as compared to $ 5,603,175 or 22.08 % of total revenues , for the year ended december 31 , 2010 , a decrease of $ 2,885,247 or 51.49 % . other income ( expenses ) for the year ended december 31 , 2011 , interest income was $ 5,838 as compared to $ 1,007 for the year ended december 31 , 2010. in 2011 , interest expense was $ 375,773 , a decrease of $ 146,880 as compared to $ 522,653 for the year ended december 31 , 2010. the company issued $ 960,000 of convertible notes at beginning of 2010 , which incurred a non-cash interest expenses of $ 396,072 for the year ended december 31 , 2010. the debt discount on convertible notes was fully discount in february 2011 and there was only $ 70,271 non-cash interest expenses for the year 2011 . 44 i ncome tax expenses for the years ended december 31 , 2011 and 2010 , income tax expenses were $ 301,533 and $ 778,765 respectively . the decrease of income tax expenses of $ 477,232 or 61.28 % is due to the decrease in income before tax . nengfa energy is entitled to a two-year exemption from corporate income tax till the year ended december 31 , 2011. the new income tax rate will be 25 % from 2012 onwards . as of december 31 , 2011 , the company 's operations in the united states of america incurred $ 2,660,710 of cumulative net operating losses , which can be carried forward to offset future taxable income . the net operating loss carried forwards begin to expire in 2031 , if unutilized . the company has provided for a full valuation allowance against the deferred tax assets of $ 904,641 on the expected future tax benefits from the net operating loss carried forwards as the management believes it is more likely than not that these assets will not be realized in the future . net income as a result of the foregoing , we recorded net income of $ 2,046,460 , a 13.70 % profit margin on revenue for the year ended december 31 , 2011 , as compared to net income of $ 4,302,764 , a16.96 % profit margin on revenues , for the year ended december 31 , 2010. the net income for the year ended december 31 , 2011 decreased by $ 2,256,304 , a decrease of 52.44 % , compared to the year ended december 31 , 2010. the decrease in net income was mainly due to the increase in operating expenses and the decrease in revenues . story_separator_special_tag times new roman , times , serif ; margin : 0pt 0 ; text-align : justify ; text-indent : 0.5in `` > in november ,2011 , the company obtained another short-term bank borrowing of $ 2,573,871 ( equivalent to rmb 16,350,000 ) , from a commercial bank in china , bank of jilin , due 15 december 2012 , with interest rate at 1.4 times of the bank of china benchmark lending rate , monthly payable , which is guaranteed by mr. gang li ( the company 's ceo ) and a guarantee company in shenyang city , the prc . in november ,2011 , the company obtained a bank note of $ 3,148,466 ( equivalent to rmb 20,000,000 ) from a commercial

liquidity and capital resources operating activities for the year ended december 31 , 2011 , net cash provided by operating activities was $ 2,488,573. this was primarily attributable to our net income of $ 2,046,460 , adjusted by non-cash items of depreciation and amortization of $ 588,278 , reversal of allowance for doubtful account of $ 930 , and non-cash interest expenses of $ 70,271. the increase in cash flow in 2011 were due primarily the decrease in inventories by $ 271,495 , decrease in prepayments and other receivables by $ 393,503 , increase in accounts payable by $ 1,466,017 , and increase in other payables and accrued liabilities by $ 357,650.these were partially off-set by the increase in accounts and retention receivable by $ 2,673,870 ( excluding the non-cash transaction of $ 7,830,649 which represented the prepayment for construction in progress in lieu of accounts receivable ) and $ 32,161 decrease in income tax payable in this year . the decrease in accounts and retention receivable of $ 4 , 589,393 , a decrease of 28.79 % over the accounts and retention receivables balance at december 31 , 2010 are mainly due to the transfer of accounts receivable due from two customers amounting to $ 7.8 million on a non-recourse basis to an independent project management company in the prc as the prepayment for construction cost . 45 the company is highly aware of the risk of default , and as a result , we actively monitor accounts receivable with aging above 1 year and those accounting for about 15 % of the total accounts receivable , thus there is no significant credit risk . the company will consider an allowance for doubtful accounts for any estimated losses resulting from the inability of its customers to make required payments .

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 for the year ended december 31 , 2011 , net cash provided by operating activities was $ 2,488,573. this was primarily attributable to our net income of $ 2,046,460 , adjusted by non-cash items of depreciation and amortization of $ 588,278 , reversal of allowance for doubtful account of $ 930 , and non-cash interest expenses of $ 70,271. the increase in cash flow in 2011 were due primarily the decrease in inventories by $ 271,495 , decrease in prepayments and other receivables by $ 393,503 , increase in accounts payable by $ 1,466,017 , and increase in other payables and accrued liabilities by $ 357,650.these were partially off-set by the increase in accounts and retention receivable by $ 2,673,870 ( excluding the non-cash transaction of $ 7,830,649 which represented the prepayment for construction in progress in lieu of accounts receivable ) and $ 32,161 decrease in income tax payable in this year . the decrease in accounts and retention receivable of $ 4 , 589,393 , a decrease of 28.79 % over the accounts and retention receivables balance at december 31 , 2010 are mainly due to the transfer of accounts receivable due from two customers amounting to $ 7.8 million on a non-recourse basis to an independent project management company in the prc as the prepayment for construction cost . 45 the company is highly aware of the risk of default , and as a result , we actively monitor accounts receivable with aging above 1 year and those accounting for about 15 % of the total accounts receivable , thus there is no significant credit risk . the company will consider an allowance for doubtful accounts for any estimated losses resulting from the inability of its customers to make required payments . ``` Suspicious Activity Report : readers are cautioned not to place undue reliance on these forward-looking statements , which speak only as of the date on which they are made . the company undertakes no obligation to update or revise any forward-looking statements . these forward-looking statements include statements of management 's plans and objectives for our future operations and statements of future economic performance , information regarding our expansion and possible results from expansion , our expected growth , our capital budget and future capital requirements , the availability of funds and our ability to meet future capital needs , the realization of our deferred tax assets , and the assumptions described in this report underlying such forward-looking statements . actual results and developments could differ materially from those expressed in or implied by such statements due to a number of factors , including , without limitation , those described in the context of such forward-looking statements , our expansion and acquisition strategy , our ability to achieve operating efficiencies , industry pricing and technology trends , evolving industry standards , regulatory matters , general economic and business conditions , the strength and financial resources of our competitors , our ability to find and retain skilled personnel , the political and economic climate in which we conduct operations and the risk factors described from time to time in our other documents and reports filed with the securities and exchange commission ( the `` commission `` ) . additional factors that could cause actual results to differ materially from the forward-looking statements include , but are not limited to : 1 ) our ability to successfully develop , manufacture and deliver our products on a timely basis and in the prescribed condition ; 2 ) our ability to compete effectively with other companies in the same industry ; 3 ) our ability to raise sufficient capital in order to effectuate our business plan ; and 4 ) our ability to retain our key executives . critical accounting policies our discussion and analysis of our financial condition and results of operations are based on our financial statements , which have been 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 and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods . on an on-going basis , we evaluate our estimates and judgments , including those related to revenue , receivable , inventory , and accrued expenses . we base our estimates on historical experience , known trends and events and various other factors that we believe 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 . changes in estimates are recorded in the period in which they become known . we believe the following critical accounting policies affect our more significant judgments and estimates used in the preparation of our consolidated financial statements . revenue recognition in accordance with the asc topic 605 , “ revenue recognition ” , the company recognizes revenue when persuasive evidence of an arrangement exists , transfer of title has occurred or services have been rendered , the selling price is fixed or determinable and collectability is reasonably assured . the company 's revenue is principally derived from three primary sources : sales of energy saving flow control equipment , provision of energy project management and sub-contracting services , and provision of energy-saving reconstruction projects . 37 ( a ) sale of products the company derives a majority of its revenues from the sale of energy saving flow control equipment . generally , the energy saving flow control equipment is manufactured and configured to customer requirements . the company typically produces the energy saving flow control equipment for customers during a period from one to six months . when the company completes the production in accordance with the customer 's specification , the customer is required to inspect the finished products for quality and suitability , to its full satisfaction , then the company makes delivery to the customer the company recognizes revenue from the sale of such finished products upon delivery to the customers , when the title and risk of loss are fully transferred to the customers . the company records its revenues , net of value added taxes ( “ vat ” ) . the company is subject to vat which is levied on the majority of the products at the rate of 17 % on the invoiced value of sales . ( b ) service revenue service revenue is derived from energy-saving technical services , project management or sub-contracting services that are not an element of the arrangement for the sale of products . these services are generally billed on a time-cost plus basis , for the period of service which is generally from two to three months . revenue is recognized , net of business taxes when the service is rendered and accepted by the customers . ( c ) interest income interest income is recognized on a time apportionment basis , taking into account the principal amounts outstanding and the interest rates applicable . accounts receivable and allowance for doubtful accounts accounts receivable are recorded at the invoiced amount , do not bear interest and are due within the contractual payment terms , generally 30 to 90 days from shipment . story_separator_special_tag the cost of service revenues decreased by $ 2,681,829 or 50.72 % for the year ended december 31 , 2011 compared to the cost of revenues for the year ended december 31 , 2010. the gross margin for services was $ 1,425,962 and $ 2,541,489 , or 35.37 % and 32.46 % , for the years ended december 31 , 2011 and 2010 , respectively . the increase in gross margin is due to the significant increase in gross margin of energy conservation technology services . cost of projects there was no project revenue for the year ended december 31 , 2011 , therefore there was no cost of projects recognized during the year . operating expenses the total operating expenses were $ 1,454,151 and $ 1,234,597 , or 9.74 % and 4.87 % of total revenues , for the year ended december 31 , 2011 and 2010 , respectively . the total operating expenses increased by $ 219,554 or 17.78 % for the year ended december 31 , 2011 compared to the year ended december 31 , 2010. the increase of operating expenses is primarily due to the company receiving its land use rights for the new facility located in yinzhou district industrial park and starting to pay the land use rights tax . the company also starts to pay the nasdaq listing fees . there was also an increase in legal and professional fees , and ir fees during the year .. sales and marketing expenses the total sales and marketing expenses were $ 101,586 and $ 81,885 , or 0.68 % and 0.32 % of total revenues , for the years ended december 31 , 2011 and 2010 , respectively . the sales and marketing expenses increased by $ 19,701 or 24.06 % . the increase in sales and marketing is due to the increase in traveling expenses incurred by the sales staff in order to explore more business opportunities for the company . general and administrative expenses general and administrative expenses were $ 1,352,565 and $ 1,152,712 , or 9.05 % and 4.54 % of total revenue , for the year ended december 31 , 2011 and 2010 , respectively . the general and administrative expenses increased by $ 199,853 or 17.34 % . the increase in general and administrative expenses was caused by the increase in bank loan guarantee fee , legal and professional fees and investor relations fees . income from operations as a result of the foregoing , our income from operations was $ 2,717,928 or 18.21 % of total revenues , for the year ended december 31 , 2011 , as compared to $ 5,603,175 or 22.08 % of total revenues , for the year ended december 31 , 2010 , a decrease of $ 2,885,247 or 51.49 % . other income ( expenses ) for the year ended december 31 , 2011 , interest income was $ 5,838 as compared to $ 1,007 for the year ended december 31 , 2010. in 2011 , interest expense was $ 375,773 , a decrease of $ 146,880 as compared to $ 522,653 for the year ended december 31 , 2010. the company issued $ 960,000 of convertible notes at beginning of 2010 , which incurred a non-cash interest expenses of $ 396,072 for the year ended december 31 , 2010. the debt discount on convertible notes was fully discount in february 2011 and there was only $ 70,271 non-cash interest expenses for the year 2011 . 44 i ncome tax expenses for the years ended december 31 , 2011 and 2010 , income tax expenses were $ 301,533 and $ 778,765 respectively . the decrease of income tax expenses of $ 477,232 or 61.28 % is due to the decrease in income before tax . nengfa energy is entitled to a two-year exemption from corporate income tax till the year ended december 31 , 2011. the new income tax rate will be 25 % from 2012 onwards . as of december 31 , 2011 , the company 's operations in the united states of america incurred $ 2,660,710 of cumulative net operating losses , which can be carried forward to offset future taxable income . the net operating loss carried forwards begin to expire in 2031 , if unutilized . the company has provided for a full valuation allowance against the deferred tax assets of $ 904,641 on the expected future tax benefits from the net operating loss carried forwards as the management believes it is more likely than not that these assets will not be realized in the future . net income as a result of the foregoing , we recorded net income of $ 2,046,460 , a 13.70 % profit margin on revenue for the year ended december 31 , 2011 , as compared to net income of $ 4,302,764 , a16.96 % profit margin on revenues , for the year ended december 31 , 2010. the net income for the year ended december 31 , 2011 decreased by $ 2,256,304 , a decrease of 52.44 % , compared to the year ended december 31 , 2010. the decrease in net income was mainly due to the increase in operating expenses and the decrease in revenues . story_separator_special_tag times new roman , times , serif ; margin : 0pt 0 ; text-align : justify ; text-indent : 0.5in `` > in november ,2011 , the company obtained another short-term bank borrowing of $ 2,573,871 ( equivalent to rmb 16,350,000 ) , from a commercial bank in china , bank of jilin , due 15 december 2012 , with interest rate at 1.4 times of the bank of china benchmark lending rate , monthly payable , which is guaranteed by mr. gang li ( the company 's ceo ) and a guarantee company in shenyang city , the prc . in november ,2011 , the company obtained a bank note of $ 3,148,466 ( equivalent to rmb 20,000,000 ) from a commercial

in light of the above actions , resources , expectations and conditions , we believe that we are well positioned to weather the present disruptions facing the real estate industry and , in particular , the real estate healthcare industry , including senior living . however , as a result of the covid-19 pandemic , some of our tenants have requested relief from their obligations to pay rent due to us . while the number and value of these monthly requests have been declining , we continue to evaluate these requests as they are made on a tenant-by-tenant basis . as of february 23 , 2021 , we had granted requests to 72 of our tenants to defer rent payments totaling $ 2.1 million with respect to leases that represented , as of december 31 , 2020 , approximately 5.5 % of our annualized rental income . those 72 of our tenants consist of 71 tenants in our office portfolio segment , which accounted for $ 1.8 million of deferrals , which represented approximately 4.8 % of our office portfolio segment annualized rental income as of december 31 , 2020 , and one triple net senior living tenant . as of december 31 , 2020 , we recognized an increase in our accounts receivable balance related to these deferred rent payments of $ 1.5 million . these tenants were obligated to pay , in most cases , the deferred rents in 12 equal monthly installments beginning in september 2020. for the three months ended december 31 , 2020 , we collected approximately 99 % of our contractual rents due from tenants in our office portfolio segment . 65 while these deferred amounts have not negatively impacted our results of operations , the deferred rents have temporarily reduced our operating cash flows . the covid-19 pandemic and related public health restrictions have had a negative impact on us and our business . for a discussion of and the risks relating to the covid-19 pandemic on us and our business , see elsewhere in this annual report on form 10-k , including `` warning concerning forward-looking statements , `` part i , item 1 `` business `` and part i , item 1a `` risk factors `` . portfolio overview the following tables present an overview of our portfolio ( dollars in thousands , except investment per square foot or unit data ) : replace_table_token_1_th replace_table_token_2_th ( 1 ) represents gross book value of real estate assets at cost plus certain acquisition costs , before depreciation and purchase price allocations and less impairment write downs , if any . amounts include $ 114,778 of gross book value of 15 properties classified as held for sale as of december 31 , 2020 , which amounts are included in assets of properties held for sale in our consolidated balance sheet . ( 2 ) represents gross book value of real estate assets divided by number of rentable square feet or living units , as applicable , at december 31 , 2020 . ( 3 ) includes $ 47,387 of revenues and $ ( 2,996 ) of noi from properties that we sold during the year ended december 31 , 2020 and $ 41,496 of revenues and $ 7,725 of noi from properties classified as held for sale in our consolidated balance sheet as of december 31 , 2020 . ( 4 ) we calculate our noi on a consolidated basis and by reportable segment . our definition of noi and our reconciliation of net income ( loss ) to noi are included below under the heading “ non-gaap financial measures ” . ( 5 ) our medical office and life science property leases include some triple net leases where , in addition to paying fixed rents , the tenants assume the obligation to operate and maintain the properties at their expense , and some net and modified gross leases where we are responsible for the operation and maintenance of the properties and we charge tenants for some or all of the property operating costs . a small percentage of our medical office and life science property leases are full-service leases where we receive fixed rent from our tenants and no reimbursement for our property operating costs . ( 6 ) includes $ 11,364 of revenues and $ ( 5,786 ) of noi from seven senior living communities that were closed during the year ended december 31 , 2020 . 66 ( 7 ) residents fees and services for the year ended december 31 , 2020 for our shop segment is net of a $ 3,842 reserve for a medicare refund we paid in january 2021. property operating expenses for the year ended december 31 , 2020 for our shop segment includes $ 1,928 of estimated penalties , compliance costs and professional fees , net of management fees reimbursable by five star , related to the medicare refund . for further information regarding this matter , see elsewhere in this annual report on form 10-k , including note 6 to our consolidated financial statements included in part iv , item 15 of this annual report on form 10-k. ( 8 ) medical office and life science property occupancy data is as of december 31 , 2020 and 2019 and includes ( i ) out of service assets undergoing redevelopment , ( ii ) space which is leased but is not occupied or is being offered for sublease by tenants and ( iii ) space being fitted out for occupancy . ( 9 ) excludes data for periods prior to our ownership of certain properties , data for properties sold or classified as held for sale and data for which there was a transfer of operations during the periods presented . story_separator_special_tag 72 replace_table_token_7_th nm – not meaningful office portfolio : replace_table_token_8_th ( 1 ) consists of medical office and life science properties that we have owned and which have been in service continuously since january 1 , 2019 , including our life science property owned in a joint venture arrangement in which we own a 55 % equity interest ; excludes properties classified as held for sale or out of service undergoing redevelopment , if any . ( 2 ) prior periods exclude space remeasurements made subsequent to those periods . ( 3 ) medical office and life science property occupancy includes ( i ) out of service assets undergoing redevelopment , ( ii ) space which is leased but is not occupied or is being offered for sublease by tenants , and ( iii ) space being fitted out for occupancy . comparable property occupancy excludes out of service assets undergoing redevelopment . replace_table_token_9_th ( 1 ) consists of medical office and life science properties that we have owned and which have been in service continuously since january 1 , 2019 , including our life science property owned in a joint venture arrangement in which we own a 55 % equity interest ; excludes properties classified as held for sale or out of service undergoing redevelopment , if any . 73 rental income . rental income decreased primarily due to our disposition of 32 properties since january 1 , 2019 , assets being taken out of service and or undergoing redevelopment and a decrease in rental income at our comparable properties . rental income decreased at our comparable properties primarily due to reduced parking revenue at certain of our comparable properties related to the covid-19 pandemic and increased bad debt , partially offset by higher real estate tax and other property operating expense reimbursements at certain of our comparable properties . property operating expenses . property operating expenses consist of real estate taxes , utility expenses , insurance , management fees , salaries and benefit costs of property level personnel , repairs and maintenance expense , cleaning expense and other direct costs of operating these properties . the decrease in property operating expenses is primarily due to our disposition of 32 properties since january 1 , 2019 , partially offset by an increase in property operating expenses at our comparable properties . property operating expenses at our comparable properties increased primarily due to increases in real estate taxes and insurance expense , partially offset by decreases in utility expenses , landscaping expenses , parking expenses and other direct costs at certain of our comparable properties . net operating income . the change in noi reflects the net changes in rental income and property operating expenses described above . shop : replace_table_token_10_th ( 1 ) consists of senior living communities that we have owned and which have been operated by the same operator continuously since january 1 , 2019 ; excludes communities classified as held for sale or closed , if any . ( 2 ) average monthly rate is calculated by taking the average daily rate , which is defined as total residents fees and services divided by occupied units during the period , and multiplying it by 30 days . replace_table_token_11_th ( 1 ) consists of senior living communities that we have owned and which have been operated by the same operator continuously since january 1 , 2019 ; excludes communities classified as held for sale or closed , if any . as a result of routine monitoring protocols that are a part of five star 's compliance program activities related to medicare billing , five star discovered potentially inadequate documentation at one of our senior living communities that five star manages . this monitoring was not initiated in response to any specific complaint or allegation but rather was of the type that five star periodically undertakes to test its compliance with applicable medicare billing rules . we and five star voluntarily disclosed this matter to the oig pursuant to the oig 's provider self-disclosure protocol . in january 2021 , we and five star settled this matter with the oig and we agreed to pay approximately $ 5,763 in exchange for a customary release , but we and five star did not admit any liability . we paid that amount to the oig in january 2021. five star refunded to us $ 115 of management fees it previously received relating to the medicare payments we refunded to the oig . with respect to this settlement amount , we accrued a revenue reserve of $ 3,842 at december 31 , 2020 for historical medicare payments we received and agreed to repay to the oig and we recorded expenses of $ 1,921 for the year ended december 31 , 2020 for oig-imposed penalties . rental income . rental income decreased due to the termination of our previously existing master leases with five star . pursuant to the restructuring transaction , effective january 1 , 2020 , our previously existing master leases and management and 74 pooling agreements with five star were terminated and replaced with the five star management agreements for all of our senior living communities operated by five star . see note 6 to our consolidated financial statements included in part iv , item 15 of this annual report on form 10-k for information regarding the restructuring transaction . residents fees and services . residents fees and services are the revenues earned at our managed senior living communities . we recognize these revenues as services are provided and related fees are accrued . residents fees and services increased primarily due to the restructuring transaction and the resulting change to our management arrangement with five star for all of our senior living communities that it operates and our acquisition of one active adult rental property since january 1 , 2019 , partially offset by decreases in occupancy and average monthly rate primarily due to the impact of the covid-19

debt covenants our principal debt obligations at december 31 , 2020 were : ( 1 ) $ 2.7 billion outstanding principal amount of senior unsecured notes ; ( 2 ) $ 200.0 million outstanding principal amount under our term loan ( which we prepaid in february 2021 ) ; and ( 3 ) $ 684.5 million aggregate principal amount of mortgage notes ( excluding premiums , discounts and net debt issuance costs ) secured by seven properties . on february 8 , 2021 , we issued $ 500.0 million aggregate principal amount of our 4.375 % senior notes due 2031. we used net proceeds from this offering to prepay our $ 200.0 million term loan and expect to use the remaining net proceeds to redeem all of our outstanding 6.75 % senior notes due 2021 in june 2021 , when those notes become redeemable with no prepayment premium . for further information regarding our indebtedness , see note 9 to our consolidated financial statements included in part iv , item 15 of this annual report on form 10-k. our senior unsecured notes are governed by our senior unsecured notes indentures and their supplements . our credit agreement and our senior unsecured notes indentures and their supplements provide for acceleration of payment of all amounts outstanding upon the occurrence and continuation of certain events of default , such as , in the case of our credit agreement , a change of control of us , as defined , which includes rmr llc ceasing to act as our business and property manager . our senior unsecured notes indentures and their supplements and our credit agreement also contain covenants that restrict our ability to 84 incur debts , including debts secured by mortgages on our properties , in excess of calculated amounts and require us to maintain various financial ratios , and our credit agreement contains covenants that restrict our ability to make distributions to our shareholders in certain circumstances .

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 covenants our principal debt obligations at december 31 , 2020 were : ( 1 ) $ 2.7 billion outstanding principal amount of senior unsecured notes ; ( 2 ) $ 200.0 million outstanding principal amount under our term loan ( which we prepaid in february 2021 ) ; and ( 3 ) $ 684.5 million aggregate principal amount of mortgage notes ( excluding premiums , discounts and net debt issuance costs ) secured by seven properties . on february 8 , 2021 , we issued $ 500.0 million aggregate principal amount of our 4.375 % senior notes due 2031. we used net proceeds from this offering to prepay our $ 200.0 million term loan and expect to use the remaining net proceeds to redeem all of our outstanding 6.75 % senior notes due 2021 in june 2021 , when those notes become redeemable with no prepayment premium . for further information regarding our indebtedness , see note 9 to our consolidated financial statements included in part iv , item 15 of this annual report on form 10-k. our senior unsecured notes are governed by our senior unsecured notes indentures and their supplements . our credit agreement and our senior unsecured notes indentures and their supplements provide for acceleration of payment of all amounts outstanding upon the occurrence and continuation of certain events of default , such as , in the case of our credit agreement , a change of control of us , as defined , which includes rmr llc ceasing to act as our business and property manager . our senior unsecured notes indentures and their supplements and our credit agreement also contain covenants that restrict our ability to 84 incur debts , including debts secured by mortgages on our properties , in excess of calculated amounts and require us to maintain various financial ratios , and our credit agreement contains covenants that restrict our ability to make distributions to our shareholders in certain circumstances . ``` Suspicious Activity Report : in light of the above actions , resources , expectations and conditions , we believe that we are well positioned to weather the present disruptions facing the real estate industry and , in particular , the real estate healthcare industry , including senior living . however , as a result of the covid-19 pandemic , some of our tenants have requested relief from their obligations to pay rent due to us . while the number and value of these monthly requests have been declining , we continue to evaluate these requests as they are made on a tenant-by-tenant basis . as of february 23 , 2021 , we had granted requests to 72 of our tenants to defer rent payments totaling $ 2.1 million with respect to leases that represented , as of december 31 , 2020 , approximately 5.5 % of our annualized rental income . those 72 of our tenants consist of 71 tenants in our office portfolio segment , which accounted for $ 1.8 million of deferrals , which represented approximately 4.8 % of our office portfolio segment annualized rental income as of december 31 , 2020 , and one triple net senior living tenant . as of december 31 , 2020 , we recognized an increase in our accounts receivable balance related to these deferred rent payments of $ 1.5 million . these tenants were obligated to pay , in most cases , the deferred rents in 12 equal monthly installments beginning in september 2020. for the three months ended december 31 , 2020 , we collected approximately 99 % of our contractual rents due from tenants in our office portfolio segment . 65 while these deferred amounts have not negatively impacted our results of operations , the deferred rents have temporarily reduced our operating cash flows . the covid-19 pandemic and related public health restrictions have had a negative impact on us and our business . for a discussion of and the risks relating to the covid-19 pandemic on us and our business , see elsewhere in this annual report on form 10-k , including `` warning concerning forward-looking statements , `` part i , item 1 `` business `` and part i , item 1a `` risk factors `` . portfolio overview the following tables present an overview of our portfolio ( dollars in thousands , except investment per square foot or unit data ) : replace_table_token_1_th replace_table_token_2_th ( 1 ) represents gross book value of real estate assets at cost plus certain acquisition costs , before depreciation and purchase price allocations and less impairment write downs , if any . amounts include $ 114,778 of gross book value of 15 properties classified as held for sale as of december 31 , 2020 , which amounts are included in assets of properties held for sale in our consolidated balance sheet . ( 2 ) represents gross book value of real estate assets divided by number of rentable square feet or living units , as applicable , at december 31 , 2020 . ( 3 ) includes $ 47,387 of revenues and $ ( 2,996 ) of noi from properties that we sold during the year ended december 31 , 2020 and $ 41,496 of revenues and $ 7,725 of noi from properties classified as held for sale in our consolidated balance sheet as of december 31 , 2020 . ( 4 ) we calculate our noi on a consolidated basis and by reportable segment . our definition of noi and our reconciliation of net income ( loss ) to noi are included below under the heading “ non-gaap financial measures ” . ( 5 ) our medical office and life science property leases include some triple net leases where , in addition to paying fixed rents , the tenants assume the obligation to operate and maintain the properties at their expense , and some net and modified gross leases where we are responsible for the operation and maintenance of the properties and we charge tenants for some or all of the property operating costs . a small percentage of our medical office and life science property leases are full-service leases where we receive fixed rent from our tenants and no reimbursement for our property operating costs . ( 6 ) includes $ 11,364 of revenues and $ ( 5,786 ) of noi from seven senior living communities that were closed during the year ended december 31 , 2020 . 66 ( 7 ) residents fees and services for the year ended december 31 , 2020 for our shop segment is net of a $ 3,842 reserve for a medicare refund we paid in january 2021. property operating expenses for the year ended december 31 , 2020 for our shop segment includes $ 1,928 of estimated penalties , compliance costs and professional fees , net of management fees reimbursable by five star , related to the medicare refund . for further information regarding this matter , see elsewhere in this annual report on form 10-k , including note 6 to our consolidated financial statements included in part iv , item 15 of this annual report on form 10-k. ( 8 ) medical office and life science property occupancy data is as of december 31 , 2020 and 2019 and includes ( i ) out of service assets undergoing redevelopment , ( ii ) space which is leased but is not occupied or is being offered for sublease by tenants and ( iii ) space being fitted out for occupancy . ( 9 ) excludes data for periods prior to our ownership of certain properties , data for properties sold or classified as held for sale and data for which there was a transfer of operations during the periods presented . story_separator_special_tag 72 replace_table_token_7_th nm – not meaningful office portfolio : replace_table_token_8_th ( 1 ) consists of medical office and life science properties that we have owned and which have been in service continuously since january 1 , 2019 , including our life science property owned in a joint venture arrangement in which we own a 55 % equity interest ; excludes properties classified as held for sale or out of service undergoing redevelopment , if any . ( 2 ) prior periods exclude space remeasurements made subsequent to those periods . ( 3 ) medical office and life science property occupancy includes ( i ) out of service assets undergoing redevelopment , ( ii ) space which is leased but is not occupied or is being offered for sublease by tenants , and ( iii ) space being fitted out for occupancy . comparable property occupancy excludes out of service assets undergoing redevelopment . replace_table_token_9_th ( 1 ) consists of medical office and life science properties that we have owned and which have been in service continuously since january 1 , 2019 , including our life science property owned in a joint venture arrangement in which we own a 55 % equity interest ; excludes properties classified as held for sale or out of service undergoing redevelopment , if any . 73 rental income . rental income decreased primarily due to our disposition of 32 properties since january 1 , 2019 , assets being taken out of service and or undergoing redevelopment and a decrease in rental income at our comparable properties . rental income decreased at our comparable properties primarily due to reduced parking revenue at certain of our comparable properties related to the covid-19 pandemic and increased bad debt , partially offset by higher real estate tax and other property operating expense reimbursements at certain of our comparable properties . property operating expenses . property operating expenses consist of real estate taxes , utility expenses , insurance , management fees , salaries and benefit costs of property level personnel , repairs and maintenance expense , cleaning expense and other direct costs of operating these properties . the decrease in property operating expenses is primarily due to our disposition of 32 properties since january 1 , 2019 , partially offset by an increase in property operating expenses at our comparable properties . property operating expenses at our comparable properties increased primarily due to increases in real estate taxes and insurance expense , partially offset by decreases in utility expenses , landscaping expenses , parking expenses and other direct costs at certain of our comparable properties . net operating income . the change in noi reflects the net changes in rental income and property operating expenses described above . shop : replace_table_token_10_th ( 1 ) consists of senior living communities that we have owned and which have been operated by the same operator continuously since january 1 , 2019 ; excludes communities classified as held for sale or closed , if any . ( 2 ) average monthly rate is calculated by taking the average daily rate , which is defined as total residents fees and services divided by occupied units during the period , and multiplying it by 30 days . replace_table_token_11_th ( 1 ) consists of senior living communities that we have owned and which have been operated by the same operator continuously since january 1 , 2019 ; excludes communities classified as held for sale or closed , if any . as a result of routine monitoring protocols that are a part of five star 's compliance program activities related to medicare billing , five star discovered potentially inadequate documentation at one of our senior living communities that five star manages . this monitoring was not initiated in response to any specific complaint or allegation but rather was of the type that five star periodically undertakes to test its compliance with applicable medicare billing rules . we and five star voluntarily disclosed this matter to the oig pursuant to the oig 's provider self-disclosure protocol . in january 2021 , we and five star settled this matter with the oig and we agreed to pay approximately $ 5,763 in exchange for a customary release , but we and five star did not admit any liability . we paid that amount to the oig in january 2021. five star refunded to us $ 115 of management fees it previously received relating to the medicare payments we refunded to the oig . with respect to this settlement amount , we accrued a revenue reserve of $ 3,842 at december 31 , 2020 for historical medicare payments we received and agreed to repay to the oig and we recorded expenses of $ 1,921 for the year ended december 31 , 2020 for oig-imposed penalties . rental income . rental income decreased due to the termination of our previously existing master leases with five star . pursuant to the restructuring transaction , effective january 1 , 2020 , our previously existing master leases and management and 74 pooling agreements with five star were terminated and replaced with the five star management agreements for all of our senior living communities operated by five star . see note 6 to our consolidated financial statements included in part iv , item 15 of this annual report on form 10-k for information regarding the restructuring transaction . residents fees and services . residents fees and services are the revenues earned at our managed senior living communities . we recognize these revenues as services are provided and related fees are accrued . residents fees and services increased primarily due to the restructuring transaction and the resulting change to our management arrangement with five star for all of our senior living communities that it operates and our acquisition of one active adult rental property since january 1 , 2019 , partially offset by decreases in occupancy and average monthly rate primarily due to the impact of the covid-19

the following table compares our forecast of consumer loan collection rates as of december 31 , 2018 , with the forecasts as of december 31 , 2017 , as of december 31 , 2016 , and at the time of assignment , segmented by year of assignment : replace_table_token_9_th ( 1 ) represents the total forecasted collections we expect to collect on the consumer loans as a percentage of the repayments that we were contractually owed on the consumer loans at the time of assignment . contractual repayments include both principal and interest . forecasted collection rates are negatively impacted by canceled consumer loans as the contractual amount owed is not removed from the denominator for purposes of computing forecasted collection rates in the table . consumer loans assigned in 2009 through 2013 , 2017 and 2018 have yielded forecasted collection results materially better than our initial estimates , while consumer loans assigned in 2015 and 2016 have yielded forecasted collection results materially worse than our initial estimates . for consumer loans assigned in 2014 , actual results have been close to our initial estimates . for the year ended december 31 , 2018 , forecasted collection rates improved for consumer loans assigned in 2018 , declined for consumer loans assigned in 2016 and were generally consistent with expectations at the start of the period for all other assignment years presented . for the year ended december 31 , 2017 , forecasted collection rates improved for consumer loans assigned in 2017 , declined for consumer loans assigned in 2015 and 2016 and were generally consistent with expectations at the start of the period for all other assignment years presented . the changes in forecasted collection rates impacted forecasted net cash flows ( forecasted collections less forecasted dealer holdback payments ) as follows : replace_table_token_10_th 25 in addition to the statistical model used to forecast collection rates , we use a model to forecast the timing of future net cash flows . during the fourth quarter of 2017 , we updated our net cash flow timing model to incorporate more recent data . the revised forecast resulted in an expected cash flow stream with a lower net present value as compared to the prior forecast , as less cash flows were expected in earlier periods and more cash flows were expected in later periods . the reduction in net present value was primarily the result of a change in the expected timing of cash flows from longer-term consumer loans . due to our limited historical experience with longer-term consumer loans , our prior model relied on extrapolations from the historical performance of shorter-term consumer loans to predict the timing of future net cash flows on longer-term consumer loans . we used our additional historical experience on these longer-term loans to refine our estimate . the revision to our net cash flow timing forecast did not impact the amount of undiscounted net cash flows we expected to receive . as a result , the dollar amount of future net portfolio revenue ( finance charges less provision for credit losses ) was not impacted by the revision . however , the revision did impact the period in which those net revenues are recorded as a portion of the impact of the revised timing estimate was recorded as a current period expense and a portion was recorded as a yield adjustment . for the fourth quarter of 2017 , the revision increased provision for credit losses by $ 41.6 million , reduced finance charge revenue by $ 7.3 million and reduced net income by $ 30.8 million . the revision reduced the yield on our loan portfolio by 90 basis points , which impacts the timing of revenue recognition in future periods . during the fourth quarter of 2016 , we enhanced our methodology for forecasting the amount and timing of future collections on consumer loans through the utilization of more recent data and new forecast variables . implementation of the enhanced forecasting methodology as of october 31 , 2016 did not have a material impact on provision for credit losses or net income ; however , it did reduce forecasted net cash flows by $ 1.8 million , all of which related to dealer loans . the implementation also decreased the forecasted collection rates for consumer loans assigned in 2015 and 2016 and increased the forecasted collection rates for consumer loans assigned in 2011 through 2013. the following table presents information on the average consumer loan assignment for each of the last ten years : replace_table_token_11_th ( 1 ) represents the repayments that we were contractually owed on consumer loans at the time of assignment , which include both principal and interest . ( 2 ) represents advances paid to dealers on consumer loans assigned under our portfolio program and one-time payments made to dealers to purchase consumer loans assigned under our purchase program . payments of dealer holdback and accelerated dealer holdback are not included . forecasting collection rates accurately at loan inception is difficult . with this in mind , we establish advance rates that are intended to allow us to achieve acceptable levels of profitability , even if collection rates are less than we initially forecast . 26 the following table presents forecasted consumer loan collection rates , advance rates , the spread ( the forecasted collection rate less the advance rate ) , and the percentage of the forecasted collections that had been realized as of december 31 , 2018 . all amounts , unless otherwise noted , are presented as a percentage of the initial balance of the consumer loan ( principal + interest ) . the table includes both dealer loans and purchased loans . story_separator_special_tag the increase of $ 22.5 million , or 23.0 % , was due to increases in the average outstanding debt balance and our average cost of debt , as follows : replace_table_token_24_th ( 1 ) includes the unamortized debt discount and excludes deferred debt issuance costs . the average outstanding debt balance increased primarily due to debt proceeds used to fund growth in new consumer loan assignments and stock repurchases . the increase in our average cost of debt was primarily a result of a change in the mix of our outstanding debt . provision for income taxes . for the year ended december 31 , 2017 , the effective income tax rate decreased to 19.5 % from 37.3 % for the year ended december 31 , 2016. the decrease was primarily due to the enactment of the 2017 tax act in december 2017 , which resulted in a one-time reversal of $ 99.8 million of provision for income taxes in 2017. while the 2017 tax act lowered our federal statutory income tax rate from 35 % in 2017 and 2016 to 21 % in 2018 , we were required to revalue deferred taxes and uncertain tax positions as of december 31 , 2017 at the lower federal statutory income tax rate . based on currently enacted federal and state statutory income tax rates , we believe our long-term effective income tax rate will average approximately 23 % in future years . for additional information , see note 12 to the consolidated financial statements contained in item 8 of this form 10-k , which is incorporated herein by reference . 36 critical accounting estimates our consolidated financial statements are prepared in accordance with gaap . the preparation of these financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . on an ongoing basis , we review our accounting policies , assumptions , estimates and judgments to ensure that our financial statements are presented fairly and in accordance with gaap . our significant accounting policies are discussed in note 2 to the consolidated financial statements contained in item 8 of this form 10-k , which is incorporated herein by reference . we believe that the following accounting estimates are the most critical to aid in fully understanding and evaluating our reported financial results , and involve a high degree of subjective or complex judgment , and the use of different estimates or assumptions could produce materially different financial results . finance charge revenue & allowance for credit losses nature of estimates required . we estimate the amount and timing of future collections and dealer holdback payments . these estimates impact loans receivable and allowance for credit losses on our balance sheet and finance charges and provision for credit losses on our income statement . assumptions and approaches used . for accounting purposes , we are not considered to be an originator of consumer loans , but instead are considered to be a lender to our dealers for consumer loans assigned under our portfolio program , and a purchaser of consumer loans assigned under our purchase program . as a result of this classification , our accounting policies for recognizing finance charge revenue and determining our allowance for credit losses may be different from other lenders in our market , who , based on their different business models , may be considered to be a direct lender to consumers for accounting purposes . for additional information regarding our classification as a lender to our dealers for accounting purposes , see note 1 to the consolidated financial statements contained in item 8 of this form 10-k , which is incorporated herein by reference . we recognize finance charges under the interest method such that revenue is recognized on a level-yield basis based upon forecasted cash flows . for dealer loans , finance charge revenue and the allowance for credit losses are calculated after first aggregating dealer loans outstanding for each dealer . for the same purpose , purchased loans are aggregated according to the month the loan was purchased . an allowance for credit losses is maintained at an amount that reduces the net asset value ( loan balance less the allowance ) to the value of forecasted future cash flows discounted at the yield established at the time of assignment . future cash flows are comprised of estimated future collections on the loans , less any estimated dealer holdback payments related to dealer loans . we write off loans once there are no forecasted future collections on any of the associated consumer loans . actual cash flows from any individual dealer loan or pool of purchased loans are often different than estimated cash flows at the time of assignment . if such difference is favorable , the difference is recognized prospectively into income over the remaining life of the dealer loan or pool of purchased loans through a yield adjustment . if such difference is unfavorable , a provision for credit losses is recorded immediately as a current period expense and a corresponding allowance for credit losses is established . because differences between estimated cash flows at the time of assignment and actual cash flows occur often , an allowance is required for a significant portion of our loan portfolio . an allowance for credit losses does not necessarily indicate that a dealer loan or pool of purchased loans is unprofitable , and in recent years , seldom are cash flows from a dealer loan or pool of purchased loans insufficient to repay the initial amounts advanced or paid to the dealer . future collections are forecasted for each individual dealer loan or pool of purchased loans based on the historical performance of consumer loans with similar characteristics , adjusted for recent trends in payment patterns .

cash and cash equivalents increased to $ 25.7 million as of december 31 , 2018 from $ 8.2 million as of december 31 , 2017 . as of december 31 , 2018 and december 31 , 2017 we had $ 1,153.1 million and $ 1,161.1 million in unused and available lines of credit , respectively . our total balance sheet indebtedness increased to $ 3,820.9 million as of december 31 , 2018 from $ 3,070.8 million as of december 31 , 2017 primarily due to the growth in new consumer loan assignments and stock repurchases . contractual obligations a summary of the total future contractual obligations requiring repayments as of december 31 , 2018 is as follows : replace_table_token_25_th ( 1 ) long-term debt obligations included in the above table consist solely of principal repayments . the amounts are presented on a principal basis to exclude deferred debt issuance costs of $ 20.5 million and the unamortized debt discount of $ 1.1 million . we are also obligated to make interest payments at the applicable interest rates , as discussed in note 9 to the consolidated financial statements contained in item 8 of this form 10-k , which is incorporated herein by reference . based on the actual amounts outstanding under our revolving secured line of credit , our warehouse facilities , and our senior notes as of december 31 , 2018 , the forecasted amounts outstanding on all other debt and the actual interest rates in effect as of december 31 , 2018 , interest is expected to be approximately $ 130.4 million during 2019 ; $ 96.1 million during 2020 ; and $ 70.9 million during 2021 and thereafter . ( 2 ) we have contractual obligations to pay dealer holdback to our dealers . payments of dealer holdback are contingent upon the receipt of consumer payments and the repayment of advances . the amounts presented represent our forecast as of december 31 , 2018 . ( 3 ) purchase obligations consist primarily of contractual obligations related to our information system and facility needs . ( 4 ) other future obligations included in the above table consist solely of reserves for uncertain tax positions .

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 increased to $ 25.7 million as of december 31 , 2018 from $ 8.2 million as of december 31 , 2017 . as of december 31 , 2018 and december 31 , 2017 we had $ 1,153.1 million and $ 1,161.1 million in unused and available lines of credit , respectively . our total balance sheet indebtedness increased to $ 3,820.9 million as of december 31 , 2018 from $ 3,070.8 million as of december 31 , 2017 primarily due to the growth in new consumer loan assignments and stock repurchases . contractual obligations a summary of the total future contractual obligations requiring repayments as of december 31 , 2018 is as follows : replace_table_token_25_th ( 1 ) long-term debt obligations included in the above table consist solely of principal repayments . the amounts are presented on a principal basis to exclude deferred debt issuance costs of $ 20.5 million and the unamortized debt discount of $ 1.1 million . we are also obligated to make interest payments at the applicable interest rates , as discussed in note 9 to the consolidated financial statements contained in item 8 of this form 10-k , which is incorporated herein by reference . based on the actual amounts outstanding under our revolving secured line of credit , our warehouse facilities , and our senior notes as of december 31 , 2018 , the forecasted amounts outstanding on all other debt and the actual interest rates in effect as of december 31 , 2018 , interest is expected to be approximately $ 130.4 million during 2019 ; $ 96.1 million during 2020 ; and $ 70.9 million during 2021 and thereafter . ( 2 ) we have contractual obligations to pay dealer holdback to our dealers . payments of dealer holdback are contingent upon the receipt of consumer payments and the repayment of advances . the amounts presented represent our forecast as of december 31 , 2018 . ( 3 ) purchase obligations consist primarily of contractual obligations related to our information system and facility needs . ( 4 ) other future obligations included in the above table consist solely of reserves for uncertain tax positions . ``` Suspicious Activity Report : the following table compares our forecast of consumer loan collection rates as of december 31 , 2018 , with the forecasts as of december 31 , 2017 , as of december 31 , 2016 , and at the time of assignment , segmented by year of assignment : replace_table_token_9_th ( 1 ) represents the total forecasted collections we expect to collect on the consumer loans as a percentage of the repayments that we were contractually owed on the consumer loans at the time of assignment . contractual repayments include both principal and interest . forecasted collection rates are negatively impacted by canceled consumer loans as the contractual amount owed is not removed from the denominator for purposes of computing forecasted collection rates in the table . consumer loans assigned in 2009 through 2013 , 2017 and 2018 have yielded forecasted collection results materially better than our initial estimates , while consumer loans assigned in 2015 and 2016 have yielded forecasted collection results materially worse than our initial estimates . for consumer loans assigned in 2014 , actual results have been close to our initial estimates . for the year ended december 31 , 2018 , forecasted collection rates improved for consumer loans assigned in 2018 , declined for consumer loans assigned in 2016 and were generally consistent with expectations at the start of the period for all other assignment years presented . for the year ended december 31 , 2017 , forecasted collection rates improved for consumer loans assigned in 2017 , declined for consumer loans assigned in 2015 and 2016 and were generally consistent with expectations at the start of the period for all other assignment years presented . the changes in forecasted collection rates impacted forecasted net cash flows ( forecasted collections less forecasted dealer holdback payments ) as follows : replace_table_token_10_th 25 in addition to the statistical model used to forecast collection rates , we use a model to forecast the timing of future net cash flows . during the fourth quarter of 2017 , we updated our net cash flow timing model to incorporate more recent data . the revised forecast resulted in an expected cash flow stream with a lower net present value as compared to the prior forecast , as less cash flows were expected in earlier periods and more cash flows were expected in later periods . the reduction in net present value was primarily the result of a change in the expected timing of cash flows from longer-term consumer loans . due to our limited historical experience with longer-term consumer loans , our prior model relied on extrapolations from the historical performance of shorter-term consumer loans to predict the timing of future net cash flows on longer-term consumer loans . we used our additional historical experience on these longer-term loans to refine our estimate . the revision to our net cash flow timing forecast did not impact the amount of undiscounted net cash flows we expected to receive . as a result , the dollar amount of future net portfolio revenue ( finance charges less provision for credit losses ) was not impacted by the revision . however , the revision did impact the period in which those net revenues are recorded as a portion of the impact of the revised timing estimate was recorded as a current period expense and a portion was recorded as a yield adjustment . for the fourth quarter of 2017 , the revision increased provision for credit losses by $ 41.6 million , reduced finance charge revenue by $ 7.3 million and reduced net income by $ 30.8 million . the revision reduced the yield on our loan portfolio by 90 basis points , which impacts the timing of revenue recognition in future periods . during the fourth quarter of 2016 , we enhanced our methodology for forecasting the amount and timing of future collections on consumer loans through the utilization of more recent data and new forecast variables . implementation of the enhanced forecasting methodology as of october 31 , 2016 did not have a material impact on provision for credit losses or net income ; however , it did reduce forecasted net cash flows by $ 1.8 million , all of which related to dealer loans . the implementation also decreased the forecasted collection rates for consumer loans assigned in 2015 and 2016 and increased the forecasted collection rates for consumer loans assigned in 2011 through 2013. the following table presents information on the average consumer loan assignment for each of the last ten years : replace_table_token_11_th ( 1 ) represents the repayments that we were contractually owed on consumer loans at the time of assignment , which include both principal and interest . ( 2 ) represents advances paid to dealers on consumer loans assigned under our portfolio program and one-time payments made to dealers to purchase consumer loans assigned under our purchase program . payments of dealer holdback and accelerated dealer holdback are not included . forecasting collection rates accurately at loan inception is difficult . with this in mind , we establish advance rates that are intended to allow us to achieve acceptable levels of profitability , even if collection rates are less than we initially forecast . 26 the following table presents forecasted consumer loan collection rates , advance rates , the spread ( the forecasted collection rate less the advance rate ) , and the percentage of the forecasted collections that had been realized as of december 31 , 2018 . all amounts , unless otherwise noted , are presented as a percentage of the initial balance of the consumer loan ( principal + interest ) . the table includes both dealer loans and purchased loans . story_separator_special_tag the increase of $ 22.5 million , or 23.0 % , was due to increases in the average outstanding debt balance and our average cost of debt , as follows : replace_table_token_24_th ( 1 ) includes the unamortized debt discount and excludes deferred debt issuance costs . the average outstanding debt balance increased primarily due to debt proceeds used to fund growth in new consumer loan assignments and stock repurchases . the increase in our average cost of debt was primarily a result of a change in the mix of our outstanding debt . provision for income taxes . for the year ended december 31 , 2017 , the effective income tax rate decreased to 19.5 % from 37.3 % for the year ended december 31 , 2016. the decrease was primarily due to the enactment of the 2017 tax act in december 2017 , which resulted in a one-time reversal of $ 99.8 million of provision for income taxes in 2017. while the 2017 tax act lowered our federal statutory income tax rate from 35 % in 2017 and 2016 to 21 % in 2018 , we were required to revalue deferred taxes and uncertain tax positions as of december 31 , 2017 at the lower federal statutory income tax rate . based on currently enacted federal and state statutory income tax rates , we believe our long-term effective income tax rate will average approximately 23 % in future years . for additional information , see note 12 to the consolidated financial statements contained in item 8 of this form 10-k , which is incorporated herein by reference . 36 critical accounting estimates our consolidated financial statements are prepared in accordance with gaap . the preparation of these financial statements requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period . on an ongoing basis , we review our accounting policies , assumptions , estimates and judgments to ensure that our financial statements are presented fairly and in accordance with gaap . our significant accounting policies are discussed in note 2 to the consolidated financial statements contained in item 8 of this form 10-k , which is incorporated herein by reference . we believe that the following accounting estimates are the most critical to aid in fully understanding and evaluating our reported financial results , and involve a high degree of subjective or complex judgment , and the use of different estimates or assumptions could produce materially different financial results . finance charge revenue & allowance for credit losses nature of estimates required . we estimate the amount and timing of future collections and dealer holdback payments . these estimates impact loans receivable and allowance for credit losses on our balance sheet and finance charges and provision for credit losses on our income statement . assumptions and approaches used . for accounting purposes , we are not considered to be an originator of consumer loans , but instead are considered to be a lender to our dealers for consumer loans assigned under our portfolio program , and a purchaser of consumer loans assigned under our purchase program . as a result of this classification , our accounting policies for recognizing finance charge revenue and determining our allowance for credit losses may be different from other lenders in our market , who , based on their different business models , may be considered to be a direct lender to consumers for accounting purposes . for additional information regarding our classification as a lender to our dealers for accounting purposes , see note 1 to the consolidated financial statements contained in item 8 of this form 10-k , which is incorporated herein by reference . we recognize finance charges under the interest method such that revenue is recognized on a level-yield basis based upon forecasted cash flows . for dealer loans , finance charge revenue and the allowance for credit losses are calculated after first aggregating dealer loans outstanding for each dealer . for the same purpose , purchased loans are aggregated according to the month the loan was purchased . an allowance for credit losses is maintained at an amount that reduces the net asset value ( loan balance less the allowance ) to the value of forecasted future cash flows discounted at the yield established at the time of assignment . future cash flows are comprised of estimated future collections on the loans , less any estimated dealer holdback payments related to dealer loans . we write off loans once there are no forecasted future collections on any of the associated consumer loans . actual cash flows from any individual dealer loan or pool of purchased loans are often different than estimated cash flows at the time of assignment . if such difference is favorable , the difference is recognized prospectively into income over the remaining life of the dealer loan or pool of purchased loans through a yield adjustment . if such difference is unfavorable , a provision for credit losses is recorded immediately as a current period expense and a corresponding allowance for credit losses is established . because differences between estimated cash flows at the time of assignment and actual cash flows occur often , an allowance is required for a significant portion of our loan portfolio . an allowance for credit losses does not necessarily indicate that a dealer loan or pool of purchased loans is unprofitable , and in recent years , seldom are cash flows from a dealer loan or pool of purchased loans insufficient to repay the initial amounts advanced or paid to the dealer . future collections are forecasted for each individual dealer loan or pool of purchased loans based on the historical performance of consumer loans with similar characteristics , adjusted for recent trends in payment patterns .

we generate the substantial majority of our revenue from customers based on their usage of our software products that they have incorporated into their applications . in addition , customers typically purchase one or more telephone numbers from us , for which we charge a monthly flat fee per number . some customers also choose to purchase various levels of premium customer support for a monthly fee . customers that register in our self-service model typically pay up-front via credit card and draw down their balance as they purchase or use our products . most of our customers draw down their balance in the same month they pay up front and , as a result , our deferred revenue at any particular time is not a meaningful indicator of future revenue . as our customers ' usage grows , some of our customers enter into contracts and are invoiced monthly in arrears . many of these customer contracts have terms of 12 months and typically include some level of minimum revenue commitment . most customers with minimum revenue commitment contracts generate a significant amount of revenue in excess of their minimum revenue commitment in any period . historically , the aggregate minimum commitment revenue from customers with which we have contracts has constituted a minority of our revenue in any period , and we expect this to continue in the future . our developer-focused products are delivered to customers and users through our super network , which uses software to optimize communications on our platform . we interconnect with communications networks globally to deliver our products , and therefore we have arrangements with network service providers in many regions throughout the world . historically , a substantial majority of our cost of revenue has been network service provider fees . we continue to optimize our network service provider coverage and connectivity through continuous improvements in routing and sourcing in order to lower the usage expenses we incur for network service provider fees . as we benefit from our platform optimization efforts , we sometimes pass these savings on to customers in the form of lower usage prices on our products in an effort to drive increased usage and expand the reach and scale of our platform . in the near term , we intend to operate our business to expand the reach and scale of our platform and to grow our revenue , rather than to maximize our gross margins . we have achieved significant growth in recent periods . for the years ended december 31 , 2016 , 2015 and 2014 , our revenue was $ 277.3 million , $ 166.9 million and $ 88.8 million , respectively . in 2016 , 2015 and 2014 , our 10 largest active customer accounts generated an aggregate of 30 % , 32 % and 28 % , respectively . for the years ended december 31 , 2016 , 2015 and 2014 , among our 10 largest active customer accounts we had three , two and one variable customer accounts , respectively , representing 11 % , 17 % and 13 % , respectively . for the years ended december 31 , 2016 , 2015 and 2014 , our base revenue was $ 245.5 million , $ 136.9 million and $ 75.7 million , respectively . we incurred a net loss of $ 41.3 million , $ 35.5 million and $ 26.8 million for the years ended december 31 , 2016 , 2015 and 2014 , respectively . see the section titled `` —key business metrics—base revenue `` for a discussion of base revenue . 61 initial public offering in june 2016 , we completed an initial public offering ( `` ipo `` ) in which we sold 11,500,000 shares of our newly authorized class a common stock , which included 1,500,000 shares sold pursuant to the exercise by the underwriters of an option to purchase additional shares , at the public offering price of $ 15.00 per share . we received net proceeds of $ 155.5 million , after deducting underwriting discounts and commissions and offering expenses paid by us , from the sale of our shares in the ipo . immediately prior to the completion of the ipo , all shares of common stock then outstanding were reclassified as shares of class b common stock and all shares of convertible preferred stock then outstanding were converted into 54,508,441 shares of common stock on a one-to-one basis , and then reclassified as shares of class b common stock . see note 12 to the consolidated financial statements included elsewhere in this annual report on form 10-k for further discussion of class a and b common stock . follow-on public offering in october 2016 , we completed a follow-on public offering in which we sold 1,691,222 shares of our class a common stock , which included 1,050,000 shares sold pursuant to the exercise by the underwriters of an option to purchase additional shares , at a public offering price of $ 40.00 per share . in addition , another 6,358,778 shares of our class a common stock were sold by our selling stockholders , which included 906,364 shares sold pursuant to the exercise of employee stock options by certain selling stockholders . we received aggregate proceeds of $ 64.4 million , after deducting underwriting discounts and commissions and estimated offering expenses paid and payable by us . story_separator_special_tag comparison of the fiscal years ended december 31 , 2016 , 2015 and 2014 revenue replace_table_token_14_th 2016 compared to 2015 in 2016 , base revenue increased by $ 108.7 million , or 79 % , compared to 2015 , and represented 89 % and 82 % of total revenue in 2016 and 2015 , respectively . this increase was primarily attributable to an increase in the usage of all our products , particularly our programmable messaging products and 68 programmable voice products , and the adoption of additional products by our existing customers . this increase was partially offset by pricing decreases that we have implemented over time for our customers in the form of lower usage prices in an effort to increase the reach and scale of our platform . the changes in usage and price in 2016 were reflected in our dollar-based net expansion rate of 161 % . the increase in usage was also attributable to a 44 % increase in the number of active customer accounts , from 25,347 as of december 31 , 2015 to 36,606 as of december 31 , 2016. in 2016 , variable revenue increased by $ 1.7 million , or 6 % , compared to 2015 , and represented 11 % and 18 % of total revenue in 2016 and 2015 , respectively . this increase was primarily attributable to the increase in the usage of products by our existing variable customer accounts , partially offset by the decrease in number of variable customer accounts from nine to eight . u.s. revenue and international revenue represented $ 233.9 million , or 84 % , and $ 43.4 million , or 16 % , respectively , of total revenue in 2016 , compared to $ 143.1 million , or 86 % , and $ 23.8 million , or 14 % , respectively , of total revenue in 2015. the increase in international revenue in absolute dollars and as a percentage of total revenue was attributable to the growth in usage of our products , particularly our programmable messaging products and programmable voice products , by our existing international active customer accounts and to a 61 % increase in the number of international active customer accounts , driven in part by our focus on expanding our sales to customers outside of the united states . we opened one office outside of the united states between december 31 , 2015 and december 31 , 2016 . 2015 compared to 2014 in 2015 , base revenue increased by $ 61.2 million , or 81 % , compared to 2014 , and represented 82 % and 85 % of total revenue in 2015 and 2014 , respectively . this increase was primarily attributable to an increase in the usage of all our products , particularly our programmable messaging products and programmable voice products , and the adoption of additional products by our existing customers . this increase was partially offset by pricing decreases that we have implemented over time for our customers in the form of lower usage prices in an effort to increase the reach and scale of our platform . the changes in usage and price in 2015 were reflected in our dollar-based net expansion rate of 155 % . the increase in usage was also attributable to a 52 % increase in the number of active customer accounts , from 16,631 as of december 31 , 2014 to 25,347 as of december 31 , 2015. in 2015 , variable revenue increased by $ 16.9 million , or 129 % , compared to 2014 , and represented 18 % and 15 % of total revenue in 2015 and 2014 , respectively . this increase was primarily attributable to the increase in the usage of products by our existing variable customer accounts . u.s. revenue and international revenue represented $ 143.1 million , or 86 % , and $ 23.8 million , or 14 % , respectively , of total revenue in 2015 , compared to $ 78.3 million , or 88 % , and $ 10.6 million , or 12 % , respectively , of total revenue in 2014. the increase in international revenue in absolute dollars and as a percentage of total revenue was attributable to the growth in usage of our products , particularly our programmable messaging products and programmable voice products , by our existing international active customer accounts and to a 78 % increase in the number of international active customer accounts , driven in part by our focus on expanding our sales to customers outside of the united states . we opened five offices outside of the united states between december 31 , 2014 and december 31 , 2015 . 69 cost of revenue and gross margin replace_table_token_15_th 2016 compared to 2015 in 2016 , cost of revenue increased by $ 46.1 million , or 62 % , compared to 2015. the increase in cost of revenue was primarily attributable to a $ 40.0 million increase in network service providers ' costs , a $ 2.8 million increase in cloud infrastructure fees to support the growth in usage of our products and a $ 1.9 million increase in amortization expense for internal-use software . in 2016 , gross margin improved primarily as a result of cost savings from our continued platform optimization efforts , along with changes in our product and geographic mix . 2015 compared to 2014 in 2015 , cost of revenue increased by $ 33.0 million , or 80 % , compared to 2014. the increase in cost of revenue was primarily attributable to a $ 28.6 million increase in network service providers ' costs , a $ 2.6 million increase in cloud infrastructure fees to support the growth in usage of our products and a $ 1.2 million increase in amortization expense for internal-use software . in 2015 , gross margin improved primarily as a result of cost savings from our continued platform optimization efforts

cash flows from operating activities in 2016 , cash provided by operating activities consisted primarily of our net loss of $ 41.3 million adjusted for non-cash items , including $ 24.2 million of stock-based compensation expense , $ 8.3 million of depreciation and amortization expense and $ 16.9 million of cumulative changes in operating assets and liabilities . with respect to changes in operating assets and liabilities , accounts payable and other liabilities increased $ 25.9 million and deferred revenue increased $ 4.1 million , which were primarily due to increases in transaction volumes and additional accruals of sales and other taxes . other long-term liabilities increased $ 9.1 million , primarily due to the increase in the deferred rent balance related to our new office lease in san francisco , california . this was partially offset by an increase in accounts receivable and prepaid expenses of $ 22.0 million , which primarily resulted from the growth of our business and the timing of cash receipts from certain of our larger customers , pre-payments for cloud infrastructure fees and certain operating expenses , and a $ 5.7 million net increase related to the tenant improvement allowance under our new san francisco , california office lease , after collecting $ 2.6 million from the landlord in the fourth quarter of 2016. in 2015 , cash used in operating activities consisted primarily of our net loss of $ 35.5 million adjusted for non-cash items , including $ 8.9 million of stock-based compensation expense , $ 4.2 million of depreciation and amortization expense and $ 2.9 million of cumulative changes in operating assets and liabilities . with respect to changes in operating assets and liabilities , accounts payable and other liabilities increased $ 13.9 million and deferred revenue increased $ 2.0 million , which were primarily due to increases in transaction volumes and additional accruals of sales and other 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. ```cash flows from operating activities in 2016 , cash provided by operating activities consisted primarily of our net loss of $ 41.3 million adjusted for non-cash items , including $ 24.2 million of stock-based compensation expense , $ 8.3 million of depreciation and amortization expense and $ 16.9 million of cumulative changes in operating assets and liabilities . with respect to changes in operating assets and liabilities , accounts payable and other liabilities increased $ 25.9 million and deferred revenue increased $ 4.1 million , which were primarily due to increases in transaction volumes and additional accruals of sales and other taxes . other long-term liabilities increased $ 9.1 million , primarily due to the increase in the deferred rent balance related to our new office lease in san francisco , california . this was partially offset by an increase in accounts receivable and prepaid expenses of $ 22.0 million , which primarily resulted from the growth of our business and the timing of cash receipts from certain of our larger customers , pre-payments for cloud infrastructure fees and certain operating expenses , and a $ 5.7 million net increase related to the tenant improvement allowance under our new san francisco , california office lease , after collecting $ 2.6 million from the landlord in the fourth quarter of 2016. in 2015 , cash used in operating activities consisted primarily of our net loss of $ 35.5 million adjusted for non-cash items , including $ 8.9 million of stock-based compensation expense , $ 4.2 million of depreciation and amortization expense and $ 2.9 million of cumulative changes in operating assets and liabilities . with respect to changes in operating assets and liabilities , accounts payable and other liabilities increased $ 13.9 million and deferred revenue increased $ 2.0 million , which were primarily due to increases in transaction volumes and additional accruals of sales and other taxes . ``` Suspicious Activity Report : we generate the substantial majority of our revenue from customers based on their usage of our software products that they have incorporated into their applications . in addition , customers typically purchase one or more telephone numbers from us , for which we charge a monthly flat fee per number . some customers also choose to purchase various levels of premium customer support for a monthly fee . customers that register in our self-service model typically pay up-front via credit card and draw down their balance as they purchase or use our products . most of our customers draw down their balance in the same month they pay up front and , as a result , our deferred revenue at any particular time is not a meaningful indicator of future revenue . as our customers ' usage grows , some of our customers enter into contracts and are invoiced monthly in arrears . many of these customer contracts have terms of 12 months and typically include some level of minimum revenue commitment . most customers with minimum revenue commitment contracts generate a significant amount of revenue in excess of their minimum revenue commitment in any period . historically , the aggregate minimum commitment revenue from customers with which we have contracts has constituted a minority of our revenue in any period , and we expect this to continue in the future . our developer-focused products are delivered to customers and users through our super network , which uses software to optimize communications on our platform . we interconnect with communications networks globally to deliver our products , and therefore we have arrangements with network service providers in many regions throughout the world . historically , a substantial majority of our cost of revenue has been network service provider fees . we continue to optimize our network service provider coverage and connectivity through continuous improvements in routing and sourcing in order to lower the usage expenses we incur for network service provider fees . as we benefit from our platform optimization efforts , we sometimes pass these savings on to customers in the form of lower usage prices on our products in an effort to drive increased usage and expand the reach and scale of our platform . in the near term , we intend to operate our business to expand the reach and scale of our platform and to grow our revenue , rather than to maximize our gross margins . we have achieved significant growth in recent periods . for the years ended december 31 , 2016 , 2015 and 2014 , our revenue was $ 277.3 million , $ 166.9 million and $ 88.8 million , respectively . in 2016 , 2015 and 2014 , our 10 largest active customer accounts generated an aggregate of 30 % , 32 % and 28 % , respectively . for the years ended december 31 , 2016 , 2015 and 2014 , among our 10 largest active customer accounts we had three , two and one variable customer accounts , respectively , representing 11 % , 17 % and 13 % , respectively . for the years ended december 31 , 2016 , 2015 and 2014 , our base revenue was $ 245.5 million , $ 136.9 million and $ 75.7 million , respectively . we incurred a net loss of $ 41.3 million , $ 35.5 million and $ 26.8 million for the years ended december 31 , 2016 , 2015 and 2014 , respectively . see the section titled `` —key business metrics—base revenue `` for a discussion of base revenue . 61 initial public offering in june 2016 , we completed an initial public offering ( `` ipo `` ) in which we sold 11,500,000 shares of our newly authorized class a common stock , which included 1,500,000 shares sold pursuant to the exercise by the underwriters of an option to purchase additional shares , at the public offering price of $ 15.00 per share . we received net proceeds of $ 155.5 million , after deducting underwriting discounts and commissions and offering expenses paid by us , from the sale of our shares in the ipo . immediately prior to the completion of the ipo , all shares of common stock then outstanding were reclassified as shares of class b common stock and all shares of convertible preferred stock then outstanding were converted into 54,508,441 shares of common stock on a one-to-one basis , and then reclassified as shares of class b common stock . see note 12 to the consolidated financial statements included elsewhere in this annual report on form 10-k for further discussion of class a and b common stock . follow-on public offering in october 2016 , we completed a follow-on public offering in which we sold 1,691,222 shares of our class a common stock , which included 1,050,000 shares sold pursuant to the exercise by the underwriters of an option to purchase additional shares , at a public offering price of $ 40.00 per share . in addition , another 6,358,778 shares of our class a common stock were sold by our selling stockholders , which included 906,364 shares sold pursuant to the exercise of employee stock options by certain selling stockholders . we received aggregate proceeds of $ 64.4 million , after deducting underwriting discounts and commissions and estimated offering expenses paid and payable by us . story_separator_special_tag comparison of the fiscal years ended december 31 , 2016 , 2015 and 2014 revenue replace_table_token_14_th 2016 compared to 2015 in 2016 , base revenue increased by $ 108.7 million , or 79 % , compared to 2015 , and represented 89 % and 82 % of total revenue in 2016 and 2015 , respectively . this increase was primarily attributable to an increase in the usage of all our products , particularly our programmable messaging products and 68 programmable voice products , and the adoption of additional products by our existing customers . this increase was partially offset by pricing decreases that we have implemented over time for our customers in the form of lower usage prices in an effort to increase the reach and scale of our platform . the changes in usage and price in 2016 were reflected in our dollar-based net expansion rate of 161 % . the increase in usage was also attributable to a 44 % increase in the number of active customer accounts , from 25,347 as of december 31 , 2015 to 36,606 as of december 31 , 2016. in 2016 , variable revenue increased by $ 1.7 million , or 6 % , compared to 2015 , and represented 11 % and 18 % of total revenue in 2016 and 2015 , respectively . this increase was primarily attributable to the increase in the usage of products by our existing variable customer accounts , partially offset by the decrease in number of variable customer accounts from nine to eight . u.s. revenue and international revenue represented $ 233.9 million , or 84 % , and $ 43.4 million , or 16 % , respectively , of total revenue in 2016 , compared to $ 143.1 million , or 86 % , and $ 23.8 million , or 14 % , respectively , of total revenue in 2015. the increase in international revenue in absolute dollars and as a percentage of total revenue was attributable to the growth in usage of our products , particularly our programmable messaging products and programmable voice products , by our existing international active customer accounts and to a 61 % increase in the number of international active customer accounts , driven in part by our focus on expanding our sales to customers outside of the united states . we opened one office outside of the united states between december 31 , 2015 and december 31 , 2016 . 2015 compared to 2014 in 2015 , base revenue increased by $ 61.2 million , or 81 % , compared to 2014 , and represented 82 % and 85 % of total revenue in 2015 and 2014 , respectively . this increase was primarily attributable to an increase in the usage of all our products , particularly our programmable messaging products and programmable voice products , and the adoption of additional products by our existing customers . this increase was partially offset by pricing decreases that we have implemented over time for our customers in the form of lower usage prices in an effort to increase the reach and scale of our platform . the changes in usage and price in 2015 were reflected in our dollar-based net expansion rate of 155 % . the increase in usage was also attributable to a 52 % increase in the number of active customer accounts , from 16,631 as of december 31 , 2014 to 25,347 as of december 31 , 2015. in 2015 , variable revenue increased by $ 16.9 million , or 129 % , compared to 2014 , and represented 18 % and 15 % of total revenue in 2015 and 2014 , respectively . this increase was primarily attributable to the increase in the usage of products by our existing variable customer accounts . u.s. revenue and international revenue represented $ 143.1 million , or 86 % , and $ 23.8 million , or 14 % , respectively , of total revenue in 2015 , compared to $ 78.3 million , or 88 % , and $ 10.6 million , or 12 % , respectively , of total revenue in 2014. the increase in international revenue in absolute dollars and as a percentage of total revenue was attributable to the growth in usage of our products , particularly our programmable messaging products and programmable voice products , by our existing international active customer accounts and to a 78 % increase in the number of international active customer accounts , driven in part by our focus on expanding our sales to customers outside of the united states . we opened five offices outside of the united states between december 31 , 2014 and december 31 , 2015 . 69 cost of revenue and gross margin replace_table_token_15_th 2016 compared to 2015 in 2016 , cost of revenue increased by $ 46.1 million , or 62 % , compared to 2015. the increase in cost of revenue was primarily attributable to a $ 40.0 million increase in network service providers ' costs , a $ 2.8 million increase in cloud infrastructure fees to support the growth in usage of our products and a $ 1.9 million increase in amortization expense for internal-use software . in 2016 , gross margin improved primarily as a result of cost savings from our continued platform optimization efforts , along with changes in our product and geographic mix . 2015 compared to 2014 in 2015 , cost of revenue increased by $ 33.0 million , or 80 % , compared to 2014. the increase in cost of revenue was primarily attributable to a $ 28.6 million increase in network service providers ' costs , a $ 2.6 million increase in cloud infrastructure fees to support the growth in usage of our products and a $ 1.2 million increase in amortization expense for internal-use software . in 2015 , gross margin improved primarily as a result of cost savings from our continued platform optimization efforts

north american sales for the year ended december 31 , 2011 included $ 60.4 million of general monitors sales compared to $ 12.1 million in the year ended december 31 , 2010. during the year ended december 31 , 2011 , we saw growing demand in oil and gas and other core industrial markets , resulting in higher shipments of instruments ( excluding general monitors ) , head protection and fall protection , up $ 11.8 million , $ 6.0 million and $ 5.2 million , respectively . sales of the advanced combat helmet ( ach ) were $ 27.2 million higher in the current year , as we continued to ship on the current contract . net sales of our european segment were $ 286.8 million for the year ended december 31 , 2011 , an increase of $ 35.7 million , or 14 % , from $ 251.1 million for the year ended december 31 , 2010. net sales in the european segment included $ 25.8 million of general monitor sales for the year ended december 31 , 2011 , compared to $ 4.2 million in the year ended december 31 , 2010. excluding general monitors , local currency sales in europe decreased $ 1.0 million for the year ended december 31 , 2011. the decrease occurred primarily in western europe where local currency sales were down $ 8.6 million reflecting lower shipments of gas masks , fire helmets and ballistic helmets , partially offset by higher shipments of scbas and instruments . lower local currency sales in western europe were partially offset by a $ 7.6 million increase in sales in eastern europe and the middle east due to higher shipments of scbas , instruments and ballistic helmets to the fire service , industrial and military markets . favorable translation effects of stronger european currencies , particularly the euro , increased current year european segment sales , when stated in u.s. dollars , by approximately $ 15.1 million . net sales of our international segment were $ 325.3 million for the year ended december 31 , 2011 , an increase of $ 63.8 million , or 24 % , compared to $ 261.5 million for the year ended december 31 , 2010. local currency sales in the international segment increased $ 49.1 million during the year ended december 31 , 2011. the increase in sales was due to strong demand in the mining , fire service and core industrial markets . the sales increase was most notably related to increased shipments of scba 's , head eye and face protection and gas detection products , which increased by $ 9.3 million , $ 13.4 million and $ 8.9 million , respectively . sales growth was fueled mainly by market growth in latin america and china . currency translation effects increased international segment sales , when stated in u.s. dollars , by $ 14.7 million , reflecting a strengthening of the australian dollar , south african rand and brazilian real . cost of products sold . cost of products sold was $ 703.0 million for the year ended december 31 , 2011 , an increase of $ 96.5 million , or 16 % , from $ 606.5 million for the year ended december 31 , 2010. the increase was driven by higher sales . cost of products sold as a percentage of sales was 59.9 % in the year ended december 31 , 2011 compared to 62.1 % in 2010. lower cost of products sold as a percentage of sales in the current year was due to control over manufacturing cost and the addition of general monitors . cost of products sold and operating expenses include net periodic pension benefit costs and credits . pension credits , combined with pension costs , resulted in net pension credits for the year ended december 31 , 2011 of $ 5.0 million , of which credits of $ 4.0 million , $ 0.2 million and $ 0.8 million were included in cost 23 of products sold , selling , general and administrative expenses and research and development expenses , respectively . pension credits , combined with pension costs , resulted in net pension credits for the year ended december 31 , 2010 of $ 7.3 million , of which credits of $ 5.3 million , $ 1.0 million and $ 1.0 million were included in cost of products sold , selling , general and administrative expenses and research and development expenses , respectively . future net pension credits can be volatile depending on the future performance of plan assets , changes in actuarial assumptions regarding such factors as the selection of discount rates and rates of return on plan assets , changes in the amortization levels of actuarial gains and losses , plan amendments affecting benefit pay-out levels , and profile changes in the participant populations being valued . changes in any of these factors could cause net pension credits to change . to the extent net pension credits decline in the future , our net income would be adversely affected . gross profit . gross profit for the year ended december 31 , 2011 was $ 470.2 million , an increase of $ 100.1 million , or 27 % , from $ 370.1 million for the year ended december 31 , 2010. the ratio of gross profit to sales was 40.1 % in 2011 compared to 37.9 % in 2010. the higher gross profit ratio in 2011 was primarily related to improved pricing , control over manufacturing costs , and the addition of general monitors . selling , general and administrative expenses . story_separator_special_tag 27 international segment net income for the year ended december 31 , 2010 was $ 15.8 million , an increase of $ 9.1 million , or 136 % , from $ 6.7 million for the year ended december 31 , 2009. higher net income was primarily related to improved sales and gross profits , partially offset by higher selling expenses . reconciling items for the year ended december 31 , 2010 reported a net loss of $ 16.9 million , an increase of $ 5.2 million , or 44 % , compared to a net loss of $ 11.7 million for the year ended december 31 , 2009. the higher loss in 2010 was primarily due to expenses related to the acquisition of general monitors and incremental interest expense . story_separator_special_tag expect to generate sufficient operating cash flow to make payments against this amount each year . to the extent that a balance remains when the facility matures in 2016 , we expect to refinance the remaining balance through new borrowing facilities . we expect to make net contributions of $ 4.1 million to our pension plans in 2012 . 29 we have purchase commitments for materials , supplies , services and property , plant and equipment as part of our ordinary conduct of business . we categorize the product liability losses that we experience into two main categories , single incident and cumulative trauma . single incident product liability claims are discrete incidents that are typically known to us when they occur and involve observable injuries and , therefore , more quantifiable damages . therefore , we maintain a reserve for single incident product liability claims based on expected settlement costs for pending claims and an estimate of costs for unreported claims derived from experience , sales volumes and other relevant information . our reserve for single incident product liability claims was $ 4.7 million and $ 5.2 million at december 31 , 2011 and 2010 , respectively . single incident product liability expense during the years ended december 31 , 2011 , 2010 and 2009 was $ 1.5 million , $ 0.2 million and $ 0.5 million , respectively . we evaluate our single incident product liability exposures on an ongoing basis and make adjustments to the reserve as new information becomes available . cumulative trauma product liability claims involve exposures to harmful substances ( e.g . , silica , asbestos and coal dust ) that occurred many years ago and may have developed over long periods of time into diseases such as silicosis , asbestosis or coal worker 's pneumoconiosis . we are presently named as a defendant in 2,321 lawsuits in which plaintiffs allege to have contracted certain cumulative trauma diseases related to exposure to silica , asbestos , and or coal dust . these lawsuits mainly involve respiratory protection products allegedly manufactured and sold by us . we are unable to estimate total damages sought in these lawsuits as they generally do not specify the injuries alleged or the amount of damages sought , and potentially involve multiple defendants . cumulative trauma product liability litigation is difficult to predict . in our experience , until late in a lawsuit , we can not reasonably determine whether it is probable that any given cumulative trauma lawsuit will ultimately result in a liability . this uncertainty is caused by many factors , including the following : cumulative trauma complaints generally do not provide information sufficient to determine if a loss is probable ; cumulative trauma litigation is inherently unpredictable and information is often insufficient to determine if a lawsuit will develop into an actively litigated case ; and even when a case is actively litigated , it is often difficult to determine if the lawsuit will be dismissed or otherwise resolved until late in the lawsuit . moreover , even once it is probable that such a lawsuit will result in a loss , it is difficult to reasonably estimate the amount of actual loss that will be incurred . these amounts are highly variable and turn on a case-by-case analysis of the relevant facts , which are often not learned until late in the lawsuit . because of these factors , we can not reliably determine our potential liability for such claims until late in the lawsuit . we , therefore , do not record cumulative trauma product liability losses when a lawsuit is filed , but rather , when we learn sufficient information to determine that it is probable that we will incur a loss and the amount of loss can be reasonably estimated . we record expenses for defense costs associated with open cumulative trauma product liability lawsuits as incurred . we can not estimate any amount or range of possible losses related to resolving pending and future cumulative trauma product liability claims that we may face because of the factors described above . as new information about cumulative trauma product liability cases and future developments becomes available , we reassess our potential exposures . a summary of cumulative trauma product liability claims activity follows : replace_table_token_10_th 30 with some common contract exclusions , we maintain insurance for cumulative trauma product liability claims . we have purchased insurance policies from over 20 different insurance carriers that provide coverage for cumulative trauma product liability losses and related defense costs . in the normal course of business , we make payments to settle product liability claims and for related defense costs . we record receivables for the amounts that are covered by insurance . the available limits of these policies are many times our recorded insurance receivable balance . various factors could affect the timing and amount of recovery of our insurance receivables , including the outcome of negotiations with insurers , legal proceedings with respect to product liability insurance coverage and the extent to which insurers may become insolvent in the future . our insurance receivables at december 31 , 2011 and 2010 totaled $

liquidity and capital resources our main source of liquidity is operating cash flows , supplemented by borrowings to fund working capital requirements and significant transactions . our principal liquidity requirements are for working capital , capital expenditures , principal and interest payments on debt and acquisitions . approximately half of our long-term debt is at fixed interest rates with manageable repayment schedules through 2021. the remainder of our long-term debt is at variable rates on an unsecured revolving credit facility that is due in 2016. substantially all of our borrowings originate in the u.s. , which has limited our exposure to non-u.s. credit markets and to currency exchange rate fluctuations . in november 2011 , we amended the unsecured senior revolving credit facility that we entered into in 2010 to increase the facility from $ 250.0 million to $ 300.0 million and extend the term of the facility until november 2016. the amended credit agreement provides for borrowings up to $ 300.0 million and is subject to certain commitment fees . loans made under the senior revolving credit facility bear interest at a variable rate . loan proceeds may be used for general corporate purposes , including working capital , permitted acquisitions , capital expenditures and repayment of existing indebtedness . the credit agreement also provides for an uncommitted incremental facility that permits us , subject to certain conditions , to request an increase in the senior credit facility of up to $ 50.0 million . at december 31 , 2011 , $ 130.0 million of the $ 300.0 million senior revolving credit facility was unused . during 2010 , we issued $ 100.0 million in unsecured 4.00 % series a senior notes . these notes mature in october 2021 and are payable in five annual installments of $ 20.0 million , commencing in october 2017. interest is payable quarterly . incremental borrowing in 2010 and 2011 was primarily related to our acquisition of general monitors in october 2010. during 2011 , we reduced borrowings on the senior revolving credit facility by $ 25.0 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 our main source of liquidity is operating cash flows , supplemented by borrowings to fund working capital requirements and significant transactions . our principal liquidity requirements are for working capital , capital expenditures , principal and interest payments on debt and acquisitions . approximately half of our long-term debt is at fixed interest rates with manageable repayment schedules through 2021. the remainder of our long-term debt is at variable rates on an unsecured revolving credit facility that is due in 2016. substantially all of our borrowings originate in the u.s. , which has limited our exposure to non-u.s. credit markets and to currency exchange rate fluctuations . in november 2011 , we amended the unsecured senior revolving credit facility that we entered into in 2010 to increase the facility from $ 250.0 million to $ 300.0 million and extend the term of the facility until november 2016. the amended credit agreement provides for borrowings up to $ 300.0 million and is subject to certain commitment fees . loans made under the senior revolving credit facility bear interest at a variable rate . loan proceeds may be used for general corporate purposes , including working capital , permitted acquisitions , capital expenditures and repayment of existing indebtedness . the credit agreement also provides for an uncommitted incremental facility that permits us , subject to certain conditions , to request an increase in the senior credit facility of up to $ 50.0 million . at december 31 , 2011 , $ 130.0 million of the $ 300.0 million senior revolving credit facility was unused . during 2010 , we issued $ 100.0 million in unsecured 4.00 % series a senior notes . these notes mature in october 2021 and are payable in five annual installments of $ 20.0 million , commencing in october 2017. interest is payable quarterly . incremental borrowing in 2010 and 2011 was primarily related to our acquisition of general monitors in october 2010. during 2011 , we reduced borrowings on the senior revolving credit facility by $ 25.0 million . ``` Suspicious Activity Report : north american sales for the year ended december 31 , 2011 included $ 60.4 million of general monitors sales compared to $ 12.1 million in the year ended december 31 , 2010. during the year ended december 31 , 2011 , we saw growing demand in oil and gas and other core industrial markets , resulting in higher shipments of instruments ( excluding general monitors ) , head protection and fall protection , up $ 11.8 million , $ 6.0 million and $ 5.2 million , respectively . sales of the advanced combat helmet ( ach ) were $ 27.2 million higher in the current year , as we continued to ship on the current contract . net sales of our european segment were $ 286.8 million for the year ended december 31 , 2011 , an increase of $ 35.7 million , or 14 % , from $ 251.1 million for the year ended december 31 , 2010. net sales in the european segment included $ 25.8 million of general monitor sales for the year ended december 31 , 2011 , compared to $ 4.2 million in the year ended december 31 , 2010. excluding general monitors , local currency sales in europe decreased $ 1.0 million for the year ended december 31 , 2011. the decrease occurred primarily in western europe where local currency sales were down $ 8.6 million reflecting lower shipments of gas masks , fire helmets and ballistic helmets , partially offset by higher shipments of scbas and instruments . lower local currency sales in western europe were partially offset by a $ 7.6 million increase in sales in eastern europe and the middle east due to higher shipments of scbas , instruments and ballistic helmets to the fire service , industrial and military markets . favorable translation effects of stronger european currencies , particularly the euro , increased current year european segment sales , when stated in u.s. dollars , by approximately $ 15.1 million . net sales of our international segment were $ 325.3 million for the year ended december 31 , 2011 , an increase of $ 63.8 million , or 24 % , compared to $ 261.5 million for the year ended december 31 , 2010. local currency sales in the international segment increased $ 49.1 million during the year ended december 31 , 2011. the increase in sales was due to strong demand in the mining , fire service and core industrial markets . the sales increase was most notably related to increased shipments of scba 's , head eye and face protection and gas detection products , which increased by $ 9.3 million , $ 13.4 million and $ 8.9 million , respectively . sales growth was fueled mainly by market growth in latin america and china . currency translation effects increased international segment sales , when stated in u.s. dollars , by $ 14.7 million , reflecting a strengthening of the australian dollar , south african rand and brazilian real . cost of products sold . cost of products sold was $ 703.0 million for the year ended december 31 , 2011 , an increase of $ 96.5 million , or 16 % , from $ 606.5 million for the year ended december 31 , 2010. the increase was driven by higher sales . cost of products sold as a percentage of sales was 59.9 % in the year ended december 31 , 2011 compared to 62.1 % in 2010. lower cost of products sold as a percentage of sales in the current year was due to control over manufacturing cost and the addition of general monitors . cost of products sold and operating expenses include net periodic pension benefit costs and credits . pension credits , combined with pension costs , resulted in net pension credits for the year ended december 31 , 2011 of $ 5.0 million , of which credits of $ 4.0 million , $ 0.2 million and $ 0.8 million were included in cost 23 of products sold , selling , general and administrative expenses and research and development expenses , respectively . pension credits , combined with pension costs , resulted in net pension credits for the year ended december 31 , 2010 of $ 7.3 million , of which credits of $ 5.3 million , $ 1.0 million and $ 1.0 million were included in cost of products sold , selling , general and administrative expenses and research and development expenses , respectively . future net pension credits can be volatile depending on the future performance of plan assets , changes in actuarial assumptions regarding such factors as the selection of discount rates and rates of return on plan assets , changes in the amortization levels of actuarial gains and losses , plan amendments affecting benefit pay-out levels , and profile changes in the participant populations being valued . changes in any of these factors could cause net pension credits to change . to the extent net pension credits decline in the future , our net income would be adversely affected . gross profit . gross profit for the year ended december 31 , 2011 was $ 470.2 million , an increase of $ 100.1 million , or 27 % , from $ 370.1 million for the year ended december 31 , 2010. the ratio of gross profit to sales was 40.1 % in 2011 compared to 37.9 % in 2010. the higher gross profit ratio in 2011 was primarily related to improved pricing , control over manufacturing costs , and the addition of general monitors . selling , general and administrative expenses . story_separator_special_tag 27 international segment net income for the year ended december 31 , 2010 was $ 15.8 million , an increase of $ 9.1 million , or 136 % , from $ 6.7 million for the year ended december 31 , 2009. higher net income was primarily related to improved sales and gross profits , partially offset by higher selling expenses . reconciling items for the year ended december 31 , 2010 reported a net loss of $ 16.9 million , an increase of $ 5.2 million , or 44 % , compared to a net loss of $ 11.7 million for the year ended december 31 , 2009. the higher loss in 2010 was primarily due to expenses related to the acquisition of general monitors and incremental interest expense . story_separator_special_tag expect to generate sufficient operating cash flow to make payments against this amount each year . to the extent that a balance remains when the facility matures in 2016 , we expect to refinance the remaining balance through new borrowing facilities . we expect to make net contributions of $ 4.1 million to our pension plans in 2012 . 29 we have purchase commitments for materials , supplies , services and property , plant and equipment as part of our ordinary conduct of business . we categorize the product liability losses that we experience into two main categories , single incident and cumulative trauma . single incident product liability claims are discrete incidents that are typically known to us when they occur and involve observable injuries and , therefore , more quantifiable damages . therefore , we maintain a reserve for single incident product liability claims based on expected settlement costs for pending claims and an estimate of costs for unreported claims derived from experience , sales volumes and other relevant information . our reserve for single incident product liability claims was $ 4.7 million and $ 5.2 million at december 31 , 2011 and 2010 , respectively . single incident product liability expense during the years ended december 31 , 2011 , 2010 and 2009 was $ 1.5 million , $ 0.2 million and $ 0.5 million , respectively . we evaluate our single incident product liability exposures on an ongoing basis and make adjustments to the reserve as new information becomes available . cumulative trauma product liability claims involve exposures to harmful substances ( e.g . , silica , asbestos and coal dust ) that occurred many years ago and may have developed over long periods of time into diseases such as silicosis , asbestosis or coal worker 's pneumoconiosis . we are presently named as a defendant in 2,321 lawsuits in which plaintiffs allege to have contracted certain cumulative trauma diseases related to exposure to silica , asbestos , and or coal dust . these lawsuits mainly involve respiratory protection products allegedly manufactured and sold by us . we are unable to estimate total damages sought in these lawsuits as they generally do not specify the injuries alleged or the amount of damages sought , and potentially involve multiple defendants . cumulative trauma product liability litigation is difficult to predict . in our experience , until late in a lawsuit , we can not reasonably determine whether it is probable that any given cumulative trauma lawsuit will ultimately result in a liability . this uncertainty is caused by many factors , including the following : cumulative trauma complaints generally do not provide information sufficient to determine if a loss is probable ; cumulative trauma litigation is inherently unpredictable and information is often insufficient to determine if a lawsuit will develop into an actively litigated case ; and even when a case is actively litigated , it is often difficult to determine if the lawsuit will be dismissed or otherwise resolved until late in the lawsuit . moreover , even once it is probable that such a lawsuit will result in a loss , it is difficult to reasonably estimate the amount of actual loss that will be incurred . these amounts are highly variable and turn on a case-by-case analysis of the relevant facts , which are often not learned until late in the lawsuit . because of these factors , we can not reliably determine our potential liability for such claims until late in the lawsuit . we , therefore , do not record cumulative trauma product liability losses when a lawsuit is filed , but rather , when we learn sufficient information to determine that it is probable that we will incur a loss and the amount of loss can be reasonably estimated . we record expenses for defense costs associated with open cumulative trauma product liability lawsuits as incurred . we can not estimate any amount or range of possible losses related to resolving pending and future cumulative trauma product liability claims that we may face because of the factors described above . as new information about cumulative trauma product liability cases and future developments becomes available , we reassess our potential exposures . a summary of cumulative trauma product liability claims activity follows : replace_table_token_10_th 30 with some common contract exclusions , we maintain insurance for cumulative trauma product liability claims . we have purchased insurance policies from over 20 different insurance carriers that provide coverage for cumulative trauma product liability losses and related defense costs . in the normal course of business , we make payments to settle product liability claims and for related defense costs . we record receivables for the amounts that are covered by insurance . the available limits of these policies are many times our recorded insurance receivable balance . various factors could affect the timing and amount of recovery of our insurance receivables , including the outcome of negotiations with insurers , legal proceedings with respect to product liability insurance coverage and the extent to which insurers may become insolvent in the future . our insurance receivables at december 31 , 2011 and 2010 totaled $

our lead clinical program , squalamine eye drops ( ohr-102 ) , is being evaluated in multiple clinical trials for the treatment of back-of-the-eye disorders including the wet form of age- related macular degeneration , and we are also developing a recently acquired sustained release ocular drug delivery platform technology . 25 the company will continue to incur ongoing operating losses , which are expected to increase substantially as it funds development and clinical testing of its pharmaceutical compounds . in addition , losses will be incurred in paying ongoing reporting expenses , including legal and accounting expenses , as necessary to maintain the company as a public entity . no projected date for potential revenues can be made , and the company is undercapitalized at present to completely develop , test and market any pharmaceutical product . until the company is able to generate significant revenue from its principal operations , it will remain classified as a development stage company . the company can give no assurance that it will be successful in such efforts or that its limited operating funds will be adequate to support the company 's operations , nor can there be any assurance of any additional funding being available to the company . story_separator_special_tag text-indent : 0in ; background-color : transparent `` > level 1 - inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date . level 2 - inputs are unadjusted 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 , inputs other than quoted prices that are observable , and inputs derived from or corroborated by observable market data . level 3 - unobservable inputs , where there is little or no market activity for the asset or liability . these inputs reflect the reporting entity 's own beliefs about the assumptions that market participants would use in pricing the asset or liability , based on the best information available in the circumstances . derivative financial instruments the company generally does not use derivative financial instruments to hedge exposures to cash-flow risks or market-risks that may affect the fair values of its financial instruments . the company utilizes various types of financing to fund our business needs , including warrants and other instruments not indexed to our stock . the company is required to record its derivative instruments at their fair value . changes in the fair value of derivatives are recognized in earnings in accordance with asc 815. research and development the company follows the policy of expensing its research and development costs in the period in which they are incurred in accordance with asc 730. the company incurred net research and development expenses of $ 8,777,519 , $ 4,369,413 , and $ 2,753,914 during the years ended september 30 , 2015 , 2014 , and 2013 , respectively . share-based compensation the company follows the provisions of asc 718 , “ share-based payments ” which requires all share-based payments to employees , including grants of employee stock options , be recognized in the income statement based on their fair values . the company uses the black-scholes pricing model for determining the fair value of stock based compensation . in accordance with asc 505 , equity instruments issued to non-employees for goods or services are accounted for at fair value and are marked to market until service is complete or a performance commitment date is reached , whichever is earlier . goodwill and intangibles the company evaluates goodwill and other finite-lived intangible assets in accordance with fasb asc topic 350 , “ intangibles — goodwill and other . “ goodwill is recorded at the time of an acquisition and is calculated as the difference between the total consideration paid for an acquisition and the fair value of the net tangible and intangible assets acquired . accounting for acquisitions requires extensive use of accounting estimates and judgments to allocate the purchase price to the fair value of the net tangible and intangible assets acquired , including in-process research and development ( “ ipr & d ” ) . goodwill is deemed to have an indefinite life and is not amortized , but is subject to annual impairment tests . if the assumptions and estimates used to allocate the purchase price are not correct , or if business conditions change , purchase price adjustments or future asset impairment charges could be required . the value of our goodwill could be impacted by future adverse changes such as : ( i ) any future declines in our operating results , ( ii ) a decline in the valuation of technology , including the valuation of our common stock , ( iii ) a significant slowdown in the worldwide economy or ( iv ) any failure to meet the performance projections included in our forecasts of future operating results . in accordance with fasb asc topic 350 , the company tests goodwill for impairment on an annual basis or more frequently if the company believes indicators of impairment exist . impairment evaluations involve management estimates of asset useful lives and future cash flows . significant management judgment is required in the forecasts of future operating results that are used in the evaluations . it is possible , however , that the plans and estimates used may be incorrect . if our actual results , or the plans and estimates used in future impairment analysis , are lower than the original estimates used to assess the recoverability of these assets , we could incur additional impairment charges in a future period . the company performs its annual impairment review of goodwill in september , and when a triggering event occurs between annual impairment tests for both goodwill and other finite-lived intangible assets . the company recorded no impairment loss for the years ended september 30 , 2015 , 2014 , and story_separator_special_tag our lead clinical program , squalamine eye drops ( ohr-102 ) , is being evaluated in multiple clinical trials for the treatment of back-of-the-eye disorders including the wet form of age- related macular degeneration , and we are also developing a recently acquired sustained release ocular drug delivery platform technology . 25 the company will continue to incur ongoing operating losses , which are expected to increase substantially as it funds development and clinical testing of its pharmaceutical compounds . in addition , losses will be incurred in paying ongoing reporting expenses , including legal and accounting expenses , as necessary to maintain the company as a public entity . no projected date for potential revenues can be made , and the company is undercapitalized at present to completely develop , test and market any pharmaceutical product . until the company is able to generate significant revenue from its principal operations , it will remain classified as a development stage company . the company can give no assurance that it will be successful in such efforts or that its limited operating funds will be adequate to support the company 's operations , nor can there be any assurance of any additional funding being available to the company . story_separator_special_tag text-indent : 0in ; background-color : transparent `` > level 1 - inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date . level 2 - inputs are unadjusted 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 , inputs other than quoted prices that are observable , and inputs derived from or corroborated by observable market data . level 3 - unobservable inputs , where there is little or no market activity for the asset or liability . these inputs reflect the reporting entity 's own beliefs about the assumptions that market participants would use in pricing the asset or liability , based on the best information available in the circumstances . derivative financial instruments the company generally does not use derivative financial instruments to hedge exposures to cash-flow risks or market-risks that may affect the fair values of its financial instruments . the company utilizes various types of financing to fund our business needs , including warrants and other instruments not indexed to our stock . the company is required to record its derivative instruments at their fair value . changes in the fair value of derivatives are recognized in earnings in accordance with asc 815. research and development the company follows the policy of expensing its research and development costs in the period in which they are incurred in accordance with asc 730. the company incurred net research and development expenses of $ 8,777,519 , $ 4,369,413 , and $ 2,753,914 during the years ended september 30 , 2015 , 2014 , and 2013 , respectively . share-based compensation the company follows the provisions of asc 718 , “ share-based payments ” which requires all share-based payments to employees , including grants of employee stock options , be recognized in the income statement based on their fair values . the company uses the black-scholes pricing model for determining the fair value of stock based compensation . in accordance with asc 505 , equity instruments issued to non-employees for goods or services are accounted for at fair value and are marked to market until service is complete or a performance commitment date is reached , whichever is earlier . goodwill and intangibles the company evaluates goodwill and other finite-lived intangible assets in accordance with fasb asc topic 350 , “ intangibles — goodwill and other . “ goodwill is recorded at the time of an acquisition and is calculated as the difference between the total consideration paid for an acquisition and the fair value of the net tangible and intangible assets acquired . accounting for acquisitions requires extensive use of accounting estimates and judgments to allocate the purchase price to the fair value of the net tangible and intangible assets acquired , including in-process research and development ( “ ipr & d ” ) . goodwill is deemed to have an indefinite life and is not amortized , but is subject to annual impairment tests . if the assumptions and estimates used to allocate the purchase price are not correct , or if business conditions change , purchase price adjustments or future asset impairment charges could be required . the value of our goodwill could be impacted by future adverse changes such as : ( i ) any future declines in our operating results , ( ii ) a decline in the valuation of technology , including the valuation of our common stock , ( iii ) a significant slowdown in the worldwide economy or ( iv ) any failure to meet the performance projections included in our forecasts of future operating results . in accordance with fasb asc topic 350 , the company tests goodwill for impairment on an annual basis or more frequently if the company believes indicators of impairment exist . impairment evaluations involve management estimates of asset useful lives and future cash flows . significant management judgment is required in the forecasts of future operating results that are used in the evaluations . it is possible , however , that the plans and estimates used may be incorrect . if our actual results , or the plans and estimates used in future impairment analysis , are lower than the original estimates used to assess the recoverability of these assets , we could incur additional impairment charges in a future period . the company performs its annual impairment review of goodwill in september , and when a triggering event occurs between annual impairment tests for both goodwill and other finite-lived intangible assets . the company recorded no impairment loss for the years ended september 30 , 2015 , 2014 , and

liquidity and capital resources the company has limited working capital reserves with which to continue development of its pharmaceutical products and continuing operations . the company is reliant , at present , upon its capital reserves for ongoing operations and has no revenues . net working capital reserves increased from the beginning of the 2015 fiscal year to the end by $ 17,075,123 ( to $ 25,156,022 from $ 8,080,899 ) and increased from the beginning of the 2014 fiscal year to the end by $ 3,392,391 ( to $ 8,080,899 from $ 4,688,508 ) primarily due to capital raised through the sale of common stock . during fiscal 2015 , our quarterly cash burn was approximately $ 2-3mm per quarter , which was higher than in fiscal 2014. we expect our cash burn to significantly increase in fiscal 2016 with the full phase iii clinical program underway and the ongoing development of our sustained release platform technology . at present , the company has no bank line of credit or other fixed source of capital reserves . should it need additional capital in the future , it will be primarily reliant upon private or public placement of its equities , or a transaction with a pharmaceutical partner , for which there can be no warranty or assurance that the company may be successful in such efforts . on february 11 , 2015 , the company sold 4,259,259 shares of common stock in an underwritten public offering resulting in net proceeds of $ 26.6 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 company has limited working capital reserves with which to continue development of its pharmaceutical products and continuing operations . the company is reliant , at present , upon its capital reserves for ongoing operations and has no revenues . net working capital reserves increased from the beginning of the 2015 fiscal year to the end by $ 17,075,123 ( to $ 25,156,022 from $ 8,080,899 ) and increased from the beginning of the 2014 fiscal year to the end by $ 3,392,391 ( to $ 8,080,899 from $ 4,688,508 ) primarily due to capital raised through the sale of common stock . during fiscal 2015 , our quarterly cash burn was approximately $ 2-3mm per quarter , which was higher than in fiscal 2014. we expect our cash burn to significantly increase in fiscal 2016 with the full phase iii clinical program underway and the ongoing development of our sustained release platform technology . at present , the company has no bank line of credit or other fixed source of capital reserves . should it need additional capital in the future , it will be primarily reliant upon private or public placement of its equities , or a transaction with a pharmaceutical partner , for which there can be no warranty or assurance that the company may be successful in such efforts . on february 11 , 2015 , the company sold 4,259,259 shares of common stock in an underwritten public offering resulting in net proceeds of $ 26.6 million . ``` Suspicious Activity Report : our lead clinical program , squalamine eye drops ( ohr-102 ) , is being evaluated in multiple clinical trials for the treatment of back-of-the-eye disorders including the wet form of age- related macular degeneration , and we are also developing a recently acquired sustained release ocular drug delivery platform technology . 25 the company will continue to incur ongoing operating losses , which are expected to increase substantially as it funds development and clinical testing of its pharmaceutical compounds . in addition , losses will be incurred in paying ongoing reporting expenses , including legal and accounting expenses , as necessary to maintain the company as a public entity . no projected date for potential revenues can be made , and the company is undercapitalized at present to completely develop , test and market any pharmaceutical product . until the company is able to generate significant revenue from its principal operations , it will remain classified as a development stage company . the company can give no assurance that it will be successful in such efforts or that its limited operating funds will be adequate to support the company 's operations , nor can there be any assurance of any additional funding being available to the company . story_separator_special_tag text-indent : 0in ; background-color : transparent `` > level 1 - inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date . level 2 - inputs are unadjusted 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 , inputs other than quoted prices that are observable , and inputs derived from or corroborated by observable market data . level 3 - unobservable inputs , where there is little or no market activity for the asset or liability . these inputs reflect the reporting entity 's own beliefs about the assumptions that market participants would use in pricing the asset or liability , based on the best information available in the circumstances . derivative financial instruments the company generally does not use derivative financial instruments to hedge exposures to cash-flow risks or market-risks that may affect the fair values of its financial instruments . the company utilizes various types of financing to fund our business needs , including warrants and other instruments not indexed to our stock . the company is required to record its derivative instruments at their fair value . changes in the fair value of derivatives are recognized in earnings in accordance with asc 815. research and development the company follows the policy of expensing its research and development costs in the period in which they are incurred in accordance with asc 730. the company incurred net research and development expenses of $ 8,777,519 , $ 4,369,413 , and $ 2,753,914 during the years ended september 30 , 2015 , 2014 , and 2013 , respectively . share-based compensation the company follows the provisions of asc 718 , “ share-based payments ” which requires all share-based payments to employees , including grants of employee stock options , be recognized in the income statement based on their fair values . the company uses the black-scholes pricing model for determining the fair value of stock based compensation . in accordance with asc 505 , equity instruments issued to non-employees for goods or services are accounted for at fair value and are marked to market until service is complete or a performance commitment date is reached , whichever is earlier . goodwill and intangibles the company evaluates goodwill and other finite-lived intangible assets in accordance with fasb asc topic 350 , “ intangibles — goodwill and other . “ goodwill is recorded at the time of an acquisition and is calculated as the difference between the total consideration paid for an acquisition and the fair value of the net tangible and intangible assets acquired . accounting for acquisitions requires extensive use of accounting estimates and judgments to allocate the purchase price to the fair value of the net tangible and intangible assets acquired , including in-process research and development ( “ ipr & d ” ) . goodwill is deemed to have an indefinite life and is not amortized , but is subject to annual impairment tests . if the assumptions and estimates used to allocate the purchase price are not correct , or if business conditions change , purchase price adjustments or future asset impairment charges could be required . the value of our goodwill could be impacted by future adverse changes such as : ( i ) any future declines in our operating results , ( ii ) a decline in the valuation of technology , including the valuation of our common stock , ( iii ) a significant slowdown in the worldwide economy or ( iv ) any failure to meet the performance projections included in our forecasts of future operating results . in accordance with fasb asc topic 350 , the company tests goodwill for impairment on an annual basis or more frequently if the company believes indicators of impairment exist . impairment evaluations involve management estimates of asset useful lives and future cash flows . significant management judgment is required in the forecasts of future operating results that are used in the evaluations . it is possible , however , that the plans and estimates used may be incorrect . if our actual results , or the plans and estimates used in future impairment analysis , are lower than the original estimates used to assess the recoverability of these assets , we could incur additional impairment charges in a future period . the company performs its annual impairment review of goodwill in september , and when a triggering event occurs between annual impairment tests for both goodwill and other finite-lived intangible assets . the company recorded no impairment loss for the years ended september 30 , 2015 , 2014 , and story_separator_special_tag our lead clinical program , squalamine eye drops ( ohr-102 ) , is being evaluated in multiple clinical trials for the treatment of back-of-the-eye disorders including the wet form of age- related macular degeneration , and we are also developing a recently acquired sustained release ocular drug delivery platform technology . 25 the company will continue to incur ongoing operating losses , which are expected to increase substantially as it funds development and clinical testing of its pharmaceutical compounds . in addition , losses will be incurred in paying ongoing reporting expenses , including legal and accounting expenses , as necessary to maintain the company as a public entity . no projected date for potential revenues can be made , and the company is undercapitalized at present to completely develop , test and market any pharmaceutical product . until the company is able to generate significant revenue from its principal operations , it will remain classified as a development stage company . the company can give no assurance that it will be successful in such efforts or that its limited operating funds will be adequate to support the company 's operations , nor can there be any assurance of any additional funding being available to the company . story_separator_special_tag text-indent : 0in ; background-color : transparent `` > level 1 - inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date . level 2 - inputs are unadjusted 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 , inputs other than quoted prices that are observable , and inputs derived from or corroborated by observable market data . level 3 - unobservable inputs , where there is little or no market activity for the asset or liability . these inputs reflect the reporting entity 's own beliefs about the assumptions that market participants would use in pricing the asset or liability , based on the best information available in the circumstances . derivative financial instruments the company generally does not use derivative financial instruments to hedge exposures to cash-flow risks or market-risks that may affect the fair values of its financial instruments . the company utilizes various types of financing to fund our business needs , including warrants and other instruments not indexed to our stock . the company is required to record its derivative instruments at their fair value . changes in the fair value of derivatives are recognized in earnings in accordance with asc 815. research and development the company follows the policy of expensing its research and development costs in the period in which they are incurred in accordance with asc 730. the company incurred net research and development expenses of $ 8,777,519 , $ 4,369,413 , and $ 2,753,914 during the years ended september 30 , 2015 , 2014 , and 2013 , respectively . share-based compensation the company follows the provisions of asc 718 , “ share-based payments ” which requires all share-based payments to employees , including grants of employee stock options , be recognized in the income statement based on their fair values . the company uses the black-scholes pricing model for determining the fair value of stock based compensation . in accordance with asc 505 , equity instruments issued to non-employees for goods or services are accounted for at fair value and are marked to market until service is complete or a performance commitment date is reached , whichever is earlier . goodwill and intangibles the company evaluates goodwill and other finite-lived intangible assets in accordance with fasb asc topic 350 , “ intangibles — goodwill and other . “ goodwill is recorded at the time of an acquisition and is calculated as the difference between the total consideration paid for an acquisition and the fair value of the net tangible and intangible assets acquired . accounting for acquisitions requires extensive use of accounting estimates and judgments to allocate the purchase price to the fair value of the net tangible and intangible assets acquired , including in-process research and development ( “ ipr & d ” ) . goodwill is deemed to have an indefinite life and is not amortized , but is subject to annual impairment tests . if the assumptions and estimates used to allocate the purchase price are not correct , or if business conditions change , purchase price adjustments or future asset impairment charges could be required . the value of our goodwill could be impacted by future adverse changes such as : ( i ) any future declines in our operating results , ( ii ) a decline in the valuation of technology , including the valuation of our common stock , ( iii ) a significant slowdown in the worldwide economy or ( iv ) any failure to meet the performance projections included in our forecasts of future operating results . in accordance with fasb asc topic 350 , the company tests goodwill for impairment on an annual basis or more frequently if the company believes indicators of impairment exist . impairment evaluations involve management estimates of asset useful lives and future cash flows . significant management judgment is required in the forecasts of future operating results that are used in the evaluations . it is possible , however , that the plans and estimates used may be incorrect . if our actual results , or the plans and estimates used in future impairment analysis , are lower than the original estimates used to assess the recoverability of these assets , we could incur additional impairment charges in a future period . the company performs its annual impairment review of goodwill in september , and when a triggering event occurs between annual impairment tests for both goodwill and other finite-lived intangible assets . the company recorded no impairment loss for the years ended september 30 , 2015 , 2014 , and

loan losses are charged against the allowance when management determines all or a portion of the loan balance to be uncollectible . subsequent recoveries , if any , are credited to the allowance for cash received on previously charged-off amounts . if the allowance is considered inadequate to absorb future loan losses on existing loans for any reason , including but not limited to , increases in the size of the loan portfolio , increases in charge-offs or changes in the risk characteristics of the loan portfolio , then the provision for loan losses is increased . a loan is considered impaired when , based on current information and events , it is probable that the company will be unable to collect all amounts due according to the original contractual terms of the loan agreement . the collection of all amounts due according to original contractual terms means that both the contractual interest and principal payments of a loan will be collected as scheduled in the loan agreement . an impaired loan is 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 , reduced by costs to sell on a discounted basis , is used if a loan is collateral dependent . 47 investment securities impairment periodically , the company 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 , the company would consider many factors , including the length of time and the extent to which the fair value has been less than the amortized cost basis , the market liquidity for the security , the financial condition and the near-term prospects of the issuer , expected cash flows , and the intent and ability to hold the investment for a period of time sufficient to recover the temporary loss . 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 ) . the fair values of investment securities are generally determined by various pricing models . the company evaluates the methodologies used to develop the resulting fair values . the company performs a semi-annual analysis on the pricing of investment securities to ensure that the prices represent reasonable estimates of fair value . the procedures include initial and ongoing reviews of pricing methodologies and trends . the company seeks to ensure prices represent reasonable estimates of fair value through the use of broker quotes , current sales transactions from the portfolio and pricing techniques , which are based on the net present value of future expected cash flows discounted at a rate of return market participants would require . as a result of this analysis , if the company determines there is a more appropriate fair value , the price is adjusted accordingly . deferred tax asset the company uses the asset and liability method of accounting for income taxes as prescribed by gaap . under this method , deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis . if currently available information indicates it is “ more likely than not ” that the deferred tax asset will not be realized , a valuation allowance is established . deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled . accounting for deferred income taxes is a critical accounting estimate because the company exercises significant judgment in evaluating the amount and timing of recognition of the resulting tax liabilities and assets . management 's determination of the realization of deferred tax assets is based upon management 's judgment of various future events and uncertainties , including the timing and amount of future income , reversing temporary differences which may offset , and the implementation of various tax plans to maximize realization of the deferred tax asset . these judgments and estimates are inherently subjective and reviewed on a continual basis as regulatory and business factors change . any reduction in estimated future taxable income may require the company to record a valuation allowance against the deferred tax assets . a valuation allowance would result in additional income tax expense in such period , which would negatively affect earnings . results of operations net income 2019 compared to 2018 net income was $ 31.4 million for the year ended december 31 , 2019 , a 16.7 % increase over net income of $ 26.9 million for the year ended december 31 , 2018. net income per diluted common share for the year ended december 31 , 2019 was $ 1.05 , a 14.5 % increase , compared to $ 0.91 per diluted common share for the year ended december 31 , 2018. roa was 1.49 % and 1.51 % for the years ended december 31 , 2019 and 2018 , respectively . roe was 13.50 % and 13.87 % for the years ended december 31 , 2019 and 2018 , respectively . story_separator_special_tag the allowance for loan losses at december 31 , 2018 represented 1.20 % of gross loans outstanding , compared to 1.22 % at december 31 , 2017. the following table presents a summary of the activity in the allowance for loan losses for the years ended december 31 , 2019 , 2018 , and 2017 : replace_table_token_8_th noninterest income 2019 compared to 2018 noninterest income was $ 3.8 million for the year ended december 31 , 2019 , compared to $ 2.5 million for the year ended december 31 , 2018 , an increase of $ 1.3 million , or 50.5 % . the increase was primarily due to an increase in 54 gains on sales of securities and foreclosed assets and an increase in swap fees , partially offset by decreased letter of credit fees . 2018 compared to 2017 noninterest income was $ 2.5 million for the years ended december 31 , 2018 and 2017 , an increase of $ 7,000. the marginal increase was largely due to increased fees related to customer deposit accounts as a result of the overall increase in the number of our deposit clients , increased fees earned for letters of credit due to increased volume , and a decrease in losses on sales of securities . this activity was offset by an increased loss on sales of foreclosed assets . the following table presents the major components of noninterest income for the year ended december 31 , 2019 , compared to the year ended december 31 , 2018 , and for the year ended december 31 , 2018 , compared to the year ended december 31 , 2017 : replace_table_token_9_th noninterest expense 2019 compared to 2018 noninterest expense totaled $ 36.9 million for the year ended december 31 , 2019 , a $ 5.4 million , or 17.0 % increase from $ 31.6 million for the year ended december 31 , 2018. the increase was primarily driven by a $ 3.5 million increase in salaries and employee benefits as the result of merit increases and increased staff to meet the needs of the company 's growth , a $ 734,000 increase in occupancy and equipment and a $ 565,000 increase in professional and consulting fees . the increases were partially offset by a decrease of $ 180,000 in fdic insurance assessment due to a credit from the fdic for a portion of premiums previously paid to the dif that became refundable when the dif exceeded 1.38 % of insured deposits , which occurred during the year ended december 31 , 2019. the company has no remaining credits as of december 31 , 2019. full-time equivalent employees increased from 140 as of december 31 , 2018 , to 160 as of december 31 , 2019. the increase includes key strategic hires in deposit gathering roles , lending , information technology and other supportive functions as the company continues to attract talent and capitalize on the m & a disruption in its market area . efficiency ratio . the efficiency ratio , a non-gaap financial measure , reports total noninterest expense , less amortization of intangible assets , as a percentage of net interest income plus total noninterest income less gains ( losses ) on sales of securities . management believes this non-gaap financial measure provides a meaningful comparison of operational performance and facilitates investors ' assessments of business performance and trends in comparison to peers in the banking industry . the company 's efficiency ratio , and its comparability to some peers , is negatively impacted by the amortization of tax credit investments within noninterest expense . the efficiency ratio was 47.4 % for the year ended december 31 , 2019 , a marginal increase over 46.5 % for the year ended december 31 , 2018. the amortization of tax credit investments elevated the level of operating expenses in 55 both years , and while the recognition of the tax credits increases operating expenses , and concurrently the efficiency ratio , it directly reduces income tax expense and the effective tax rate . the adjusted efficiency ratio , a non-gaap financial measure , which excludes the impact of the amortization of tax credit investments , increased slightly to 43.3 % for the year ended december 31 , 2019 , compared to 41.7 % for the year ended december 31 , 2018 . 2018 compared to 2017 noninterest expense totaled $ 31.6 million for the year ended december 31 , 2018 , a $ 6.1 million , or 23.8 % increase from $ 25.5 million for the year ended december 31 , 2017. the increase was primarily driven by a $ 4.6 million increase in salaries and employee benefits as the result of merit increases and increased staff to meet the needs of the company 's growth , a $ 1.4 million increase in amortization of tax credit investments , a $ 261,000 increase in information technology and telecommunication expenses to support the company 's growing infrastructure , and a $ 359,000 increase in marketing expenses to increase brand recognition in its market area . the increases were partially offset by a decrease of $ 1.1 million in professional and consulting fees due to higher expenses incurred during 2017 for preparation of the company 's initial public offering , in comparison to 2018. full-time equivalent employees increased from 114 as of december 31 , 2017 , to 140 as of december 31 , 2018. efficiency ratio . the efficiency ratio was 46.5 % for the year ended december 31 , 2018 , a marginal increase over 44.4 % for the year ended december 31 , 2017. the amortization of tax credit investments elevated the level of operating expenses in both years , and while the recognition of the tax credits increases operating expenses , and concurrently the efficiency ratio , it directly reduces income tax expense and the effective tax rate . the adjusted efficiency ratio , a non-gaap financial measure , which excludes

liquidity liquidity is the company 's capacity to meet cash and collateral obligations at a reasonable cost . maintaining an adequate level of liquidity depends on the company 's ability to efficiently meet both expected and unexpected cash flows and collateral needs without adversely affecting either daily operations or financial condition . the bank 's alm committee , which is comprised of members of senior management , is responsible for managing commitments to meet the needs of customers while achieving the company 's financial objectives . the alm committee meets regularly to review balance sheet composition , funding capacities , and current and forecasted loan demand . the company manages liquidity by maintaining adequate levels of cash and other assets from on and off-balance sheet arrangements . specifically , on-balance sheet liquidity consists of cash and due from banks and unpledged investment securities available for sale , which are referred to as primary liquidity . in regard to off-balance sheet capacity , the company maintains available borrowing capacity under secured borrowing lines with the fhlb and the federal reserve bank of minneapolis , as well as unsecured lines of credit for the purpose of overnight funds with various correspondent banks , which the company refers to as secondary liquidity . in addition , the bank is a member of the american financial exchange , or afx , through which it may either borrow or lend funds on an overnight or short-term basis with a group of approved commercial banks . the availability of funds changes daily .

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 is the company 's capacity to meet cash and collateral obligations at a reasonable cost . maintaining an adequate level of liquidity depends on the company 's ability to efficiently meet both expected and unexpected cash flows and collateral needs without adversely affecting either daily operations or financial condition . the bank 's alm committee , which is comprised of members of senior management , is responsible for managing commitments to meet the needs of customers while achieving the company 's financial objectives . the alm committee meets regularly to review balance sheet composition , funding capacities , and current and forecasted loan demand . the company manages liquidity by maintaining adequate levels of cash and other assets from on and off-balance sheet arrangements . specifically , on-balance sheet liquidity consists of cash and due from banks and unpledged investment securities available for sale , which are referred to as primary liquidity . in regard to off-balance sheet capacity , the company maintains available borrowing capacity under secured borrowing lines with the fhlb and the federal reserve bank of minneapolis , as well as unsecured lines of credit for the purpose of overnight funds with various correspondent banks , which the company refers to as secondary liquidity . in addition , the bank is a member of the american financial exchange , or afx , through which it may either borrow or lend funds on an overnight or short-term basis with a group of approved commercial banks . the availability of funds changes daily . ``` Suspicious Activity Report : loan losses are charged against the allowance when management determines all or a portion of the loan balance to be uncollectible . subsequent recoveries , if any , are credited to the allowance for cash received on previously charged-off amounts . if the allowance is considered inadequate to absorb future loan losses on existing loans for any reason , including but not limited to , increases in the size of the loan portfolio , increases in charge-offs or changes in the risk characteristics of the loan portfolio , then the provision for loan losses is increased . a loan is considered impaired when , based on current information and events , it is probable that the company will be unable to collect all amounts due according to the original contractual terms of the loan agreement . the collection of all amounts due according to original contractual terms means that both the contractual interest and principal payments of a loan will be collected as scheduled in the loan agreement . an impaired loan is 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 , reduced by costs to sell on a discounted basis , is used if a loan is collateral dependent . 47 investment securities impairment periodically , the company 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 , the company would consider many factors , including the length of time and the extent to which the fair value has been less than the amortized cost basis , the market liquidity for the security , the financial condition and the near-term prospects of the issuer , expected cash flows , and the intent and ability to hold the investment for a period of time sufficient to recover the temporary loss . 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 ) . the fair values of investment securities are generally determined by various pricing models . the company evaluates the methodologies used to develop the resulting fair values . the company performs a semi-annual analysis on the pricing of investment securities to ensure that the prices represent reasonable estimates of fair value . the procedures include initial and ongoing reviews of pricing methodologies and trends . the company seeks to ensure prices represent reasonable estimates of fair value through the use of broker quotes , current sales transactions from the portfolio and pricing techniques , which are based on the net present value of future expected cash flows discounted at a rate of return market participants would require . as a result of this analysis , if the company determines there is a more appropriate fair value , the price is adjusted accordingly . deferred tax asset the company uses the asset and liability method of accounting for income taxes as prescribed by gaap . under this method , deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis . if currently available information indicates it is “ more likely than not ” that the deferred tax asset will not be realized , a valuation allowance is established . deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled . accounting for deferred income taxes is a critical accounting estimate because the company exercises significant judgment in evaluating the amount and timing of recognition of the resulting tax liabilities and assets . management 's determination of the realization of deferred tax assets is based upon management 's judgment of various future events and uncertainties , including the timing and amount of future income , reversing temporary differences which may offset , and the implementation of various tax plans to maximize realization of the deferred tax asset . these judgments and estimates are inherently subjective and reviewed on a continual basis as regulatory and business factors change . any reduction in estimated future taxable income may require the company to record a valuation allowance against the deferred tax assets . a valuation allowance would result in additional income tax expense in such period , which would negatively affect earnings . results of operations net income 2019 compared to 2018 net income was $ 31.4 million for the year ended december 31 , 2019 , a 16.7 % increase over net income of $ 26.9 million for the year ended december 31 , 2018. net income per diluted common share for the year ended december 31 , 2019 was $ 1.05 , a 14.5 % increase , compared to $ 0.91 per diluted common share for the year ended december 31 , 2018. roa was 1.49 % and 1.51 % for the years ended december 31 , 2019 and 2018 , respectively . roe was 13.50 % and 13.87 % for the years ended december 31 , 2019 and 2018 , respectively . story_separator_special_tag the allowance for loan losses at december 31 , 2018 represented 1.20 % of gross loans outstanding , compared to 1.22 % at december 31 , 2017. the following table presents a summary of the activity in the allowance for loan losses for the years ended december 31 , 2019 , 2018 , and 2017 : replace_table_token_8_th noninterest income 2019 compared to 2018 noninterest income was $ 3.8 million for the year ended december 31 , 2019 , compared to $ 2.5 million for the year ended december 31 , 2018 , an increase of $ 1.3 million , or 50.5 % . the increase was primarily due to an increase in 54 gains on sales of securities and foreclosed assets and an increase in swap fees , partially offset by decreased letter of credit fees . 2018 compared to 2017 noninterest income was $ 2.5 million for the years ended december 31 , 2018 and 2017 , an increase of $ 7,000. the marginal increase was largely due to increased fees related to customer deposit accounts as a result of the overall increase in the number of our deposit clients , increased fees earned for letters of credit due to increased volume , and a decrease in losses on sales of securities . this activity was offset by an increased loss on sales of foreclosed assets . the following table presents the major components of noninterest income for the year ended december 31 , 2019 , compared to the year ended december 31 , 2018 , and for the year ended december 31 , 2018 , compared to the year ended december 31 , 2017 : replace_table_token_9_th noninterest expense 2019 compared to 2018 noninterest expense totaled $ 36.9 million for the year ended december 31 , 2019 , a $ 5.4 million , or 17.0 % increase from $ 31.6 million for the year ended december 31 , 2018. the increase was primarily driven by a $ 3.5 million increase in salaries and employee benefits as the result of merit increases and increased staff to meet the needs of the company 's growth , a $ 734,000 increase in occupancy and equipment and a $ 565,000 increase in professional and consulting fees . the increases were partially offset by a decrease of $ 180,000 in fdic insurance assessment due to a credit from the fdic for a portion of premiums previously paid to the dif that became refundable when the dif exceeded 1.38 % of insured deposits , which occurred during the year ended december 31 , 2019. the company has no remaining credits as of december 31 , 2019. full-time equivalent employees increased from 140 as of december 31 , 2018 , to 160 as of december 31 , 2019. the increase includes key strategic hires in deposit gathering roles , lending , information technology and other supportive functions as the company continues to attract talent and capitalize on the m & a disruption in its market area . efficiency ratio . the efficiency ratio , a non-gaap financial measure , reports total noninterest expense , less amortization of intangible assets , as a percentage of net interest income plus total noninterest income less gains ( losses ) on sales of securities . management believes this non-gaap financial measure provides a meaningful comparison of operational performance and facilitates investors ' assessments of business performance and trends in comparison to peers in the banking industry . the company 's efficiency ratio , and its comparability to some peers , is negatively impacted by the amortization of tax credit investments within noninterest expense . the efficiency ratio was 47.4 % for the year ended december 31 , 2019 , a marginal increase over 46.5 % for the year ended december 31 , 2018. the amortization of tax credit investments elevated the level of operating expenses in 55 both years , and while the recognition of the tax credits increases operating expenses , and concurrently the efficiency ratio , it directly reduces income tax expense and the effective tax rate . the adjusted efficiency ratio , a non-gaap financial measure , which excludes the impact of the amortization of tax credit investments , increased slightly to 43.3 % for the year ended december 31 , 2019 , compared to 41.7 % for the year ended december 31 , 2018 . 2018 compared to 2017 noninterest expense totaled $ 31.6 million for the year ended december 31 , 2018 , a $ 6.1 million , or 23.8 % increase from $ 25.5 million for the year ended december 31 , 2017. the increase was primarily driven by a $ 4.6 million increase in salaries and employee benefits as the result of merit increases and increased staff to meet the needs of the company 's growth , a $ 1.4 million increase in amortization of tax credit investments , a $ 261,000 increase in information technology and telecommunication expenses to support the company 's growing infrastructure , and a $ 359,000 increase in marketing expenses to increase brand recognition in its market area . the increases were partially offset by a decrease of $ 1.1 million in professional and consulting fees due to higher expenses incurred during 2017 for preparation of the company 's initial public offering , in comparison to 2018. full-time equivalent employees increased from 114 as of december 31 , 2017 , to 140 as of december 31 , 2018. efficiency ratio . the efficiency ratio was 46.5 % for the year ended december 31 , 2018 , a marginal increase over 44.4 % for the year ended december 31 , 2017. the amortization of tax credit investments elevated the level of operating expenses in both years , and while the recognition of the tax credits increases operating expenses , and concurrently the efficiency ratio , it directly reduces income tax expense and the effective tax rate . the adjusted efficiency ratio , a non-gaap financial measure , which excludes

accordingly , the historical financial statements presented and the discussion of financial condition and results of operations herein are those of inspiremd ltd. , retroactively restated for , and giving effect to , the number of shares received in the share exchange transactions , and do not include the historical financial results of our former business . the accumulated earnings of inspiremd ltd. were also carried forward after the share exchange transactions and earnings per share have been retroactively restated to give effect to the recapitalization for all periods presented . operations reported for periods prior to the share exchange transactions are those of inspiremd ltd. on june 1 , 2012 , our board of directors approved a change in our fiscal year-end from december 31 to june 30 , effective june 30 , 2012. we effectuated a one-for-four reverse stock split of our common stock on december 21 , 2012. recent events on april 16 , 2013 , we consummated an underwritten public offering pursuant to which we sold 12.5 million shares of common stock . the public offering price of our common stock in this offering was $ 2.00 per share , resulting in aggregate net proceeds to us of approximately $ 22.6 million , after the underwriters ' commissions and offering expenses . on april 11 , 2013 , following the pricing of the offering , our common stock commenced trading on the nyse mkt . critical accounting policies use of estimates the preparation of financial statements in conformity with u.s. gaap requires management to make estimates using assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales and expenses during the reporting periods . actual results could differ from those estimates . as applicable to these consolidated financial statements , the most significant estimates and assumptions relate to inventory write-off , intangible assets , provisions for returns , legal contingencies , estimation of the fair value of share-based compensation and estimation of the fair value of warrants . functional currency the currency of the primary economic environment in which our operations are conducted is the u.s. dollar ( “ $ ” or “ dollar ” ) . accordingly , the functional currency of us and of our subsidiaries is the dollar . the dollar figures are determined as follows : transactions and balances originally denominated in dollars are presented in their original amounts . balances in foreign currencies are translated into dollars using historical and current exchange rates for non-monetary and monetary balances , respectively . the resulting translation gains or losses are recorded as financial income or expense , as appropriate . for transactions reflected in the statements of operations in foreign currencies , the exchange rates at transaction dates are used . depreciation and changes in inventories and other changes deriving from non-monetary items are based on historical exchange rates . fair value measurement fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date . 45 in determining fair value , we use various valuation approaches , including market , income and or cost approaches . hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available . observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of us . unobservable inputs are inputs that reflect our assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances . the hierarchy is broken down into three levels based on the reliability of inputs . concentration of credit risk and allowance for doubtful accounts financial instruments that may potentially subject us to a concentration of credit risk consist of cash , cash equivalents and restricted cash which are deposited in major financial institutions in the u.s. , germany and israel , and trade accounts receivable . our trade accounts receivable are derived from revenues earned from customers from various countries . we perform ongoing credit evaluations of our customers ' financial condition and , generally , require no collateral from our customers . we also have a credit insurance policy for some of our customers . we maintain an allowance for doubtful accounts receivable based upon the expected ability to collect the accounts receivable . we review our allowance for doubtful accounts quarterly by assessing individual accounts receivable and all other balances based on historical collection experience and an economic risk assessment . if we determine that a specific customer is unable to meet its financial obligations to us , we provide an allowance for credit losses to reduce the receivable to the amount our management reasonably believes will be collected . to mitigate risks , we deposit cash and cash equivalents with high credit quality financial institutions . provisions for doubtful debts are netted against “ accounts receivable-trade . ” inventory inventories include finished goods , work in process and raw materials . inventories are stated at the lower of cost ( cost is determined on a “ first-in , first-out ” basis ) or market value . our inventories generally have a limited shelf life and are subject to impairment as they approach their expiration dates . story_separator_special_tag for the twelve months ended june 30 , 2013 , general and administrative expenses decreased 35.4 % , or approximately $ 4.9 million , to approximately $ 9.0 million from approximately $ 13.9 million during the same period in 2012. the decrease in general and administrative expenses resulted primarily from a decrease in share-based compensation of $ 6.1 million ( which predominantly pertained to director 's compensation paid in 2012 ) and a decrease of approximately $ 0.3 million in expenses related to consultants . this decrease was partially offset by an increase in salaries of approximately $ 0.6 million ( which predominately relates to the hiring of our new chief executive officer ) , an increase of approximately $ 0.5 million in legal expenses largely associated with our previous financing efforts , an increase of approximately $ 0.1 million in bad debt expense , an increase of approximately $ 0.1 million in audit fees , and an increase of approximately $ 0.2 million in miscellaneous expenses . general and administrative expenses as a percentage of revenue decreased to 184.1 % in the twelve months ended june 30 , 2013 from 259.5 % in the same period in 2012 . 48 financial expenses . for the twelve months ended june 30 , 2013 , financial expenses increased to approximately $ 14.1 million from approximately $ 38,000 during the same period in 2012. the increase in financial expenses resulted primarily from approximately $ 9.9 million in non-recurring , non-cash effects of the debt inducement related to the adjustment of the conversion ratio of our convertible debentures upon their retirement in april 2013 , $ 4.3 million of amortization expense pertaining to our convertible debentures and their related issuance costs ( of which approximately $ 3.6 million represented the non-recurring , non-cash amortization of the discount of the convertible debentures and their related issuance costs ) . in addition to these non-recurring , non-cash expenses , we also incurred approximately $ 1.5 million of expense pertaining to our obligation to issue shares of common stock without new consideration to the investors in our march 2011 private placement due to certain anti-dilution rights held by such stockholders . these expenses were partially offset by approximately $ 1.4 million of financial income pertaining to the revaluation of certain of our warrants due to our stock price decreasing to $ 2.21 on june 30 , 2013 , from $ 4.24 on june 30 , 2012 and approximately $ 0.1 million for the favorable impact of exchange rate differences for the twelve months ended june 30 , 2013. financial expense as a percentage of revenue increased from 0.7 % in the twelve months ended june 30 , 2012 , to 290.9 % in the same period in 2013. if the non-recurring , non-cash effects of the debt inducement and amortization expense are removed , financial expenses for the twelve months ended june 30 , 2013 would have totaled approximately $ 0.7 million , an increase of approximately $ 0.7 million from the same period in 2012. tax expenses . for the twelve months ended june 30 , 2013 , tax expenses decreased approximately $ 6,000 to approximately $ 8,000 for the twelve months ended june 30 , 2013 , from approximately $ 14,000 during the same period in 2012. net loss . our net loss increased by approximately $ 11.7 million , or 66.3 % , to approximately $ 29.3 million for the twelve months ended june 30 , 2013 from approximately $ 17.6 million during the same period in 2012. the increase in net loss resulted primarily from an increase of approximately $ 14.2 million in financial expenses , of which , approximately $ 13.5 million were non-recurring , non-cash ( see above for explanation ) , partially offset by a decrease of approximately $ 2.4 million in operating expenses ( see above for explanation ) and an increase of approximately $ 0.1 million in gross profit ( see above for explanation ) . if the non-recurring , non-cash effects of the debt inducement and amortization expense are removed , our net loss would be approximately $ 15.8 million for the twelve months ended june 30 , 2013 , as compared to a net loss of approximately $ 17.6 million for the same period in 2012 , an improvement of approximately $ 1.8 million , or 10 % . story_separator_special_tag · amended the securities purchase agreement pursuant to which the convertible debentures were originally issued to prohibit us from issuing securities containing anti-dilution protective provisions ; and 50 · amended the warrants issued in connection with the convertible debentures to ( i ) eliminate the automatic incorporation of the terms of any securities that are superior to those of such warrants , except with respect to exercise price and warrant coverage and ( ii ) provide that upon a fundamental transaction , the holders of such warrants will have the right to cause us to repurchase the unexercised portion of such warrants at their black-scholes value on the date of such fundamental transaction , payable in shares of common stock , rather than in cash as was previously provided . off balance sheet arrangements we have no off-balance sheet transactions , arrangements , obligations ( including contingent obligations ) , or other relationships with unconsolidated entities or other persons that have , or may have , a material effect on our financial condition , changes in financial condition , revenues or expenses , results of operations , liquidity , capital expenditures or capital resources . recent accounting pronouncements in july 2012 , the financial accounting standards board issued accounting standard update 2012-02 , “ intangibles- goodwill and other ( topic 350 ) : testing indefinite intangibles assets for impairment , ” which amended the guidance in asc 350-30 on testing indefinite-lived intangible assets , other than goodwill , for impairment allowing an entity to perform a qualitative impairment assessment . if the entity determines that

liquidity and capital resources twelve months ended june 30 , 2013 compared to twelve months ended june 30 , 2012 due to the underwritten public offering of our common stock in april 2013 , pursuant to which we received net proceeds of approximately $ 22.6 million , and the exchange and amendment agreement pursuant to which , as described below , we fully satisfied our obligations under our senior secured convertible debentures due april 15 , 2014 in the prior principal amount of $ 11.7 million , we believe that we have sufficient cash to continue our operations into 2015. however , depending on the operating results in 2014 , we may need to raise additional funds in 2015 to continue financing our operations . general . at june 30 , 2013 , we had cash and cash equivalents of approximately $ 14.8 million , as compared to $ 10.3 million as of june 30 , 2012. we have historically met our cash needs through a combination of issuing new shares , borrowing activities and sales . our cash requirements are generally for clinical trials , marketing and sales activities , finance and administrative cost , capital expenditures and general working capital . 49 cash used in our operating activities was approximately $ 10.3 million for the twelve months ended june 30 , 2013 and $ 8.6 million for the same period in 2012. the principal reasons for the usage of cash in our operating activities for the twelve months ended june 30 , 2013 include a net loss of approximately $ 29.3 million , offset by approximately $ 13.5 million in non-cash financial expenses , approximately $ 3.8 million in non-cash share-based compensation that was largely paid to our directors , approximately $ 0.9 million in a non-cash royalties buyout related to the restructuring of our royalty agreement for the mguard prime version of our mguard coronary stent , as discussed above , a decrease in working capital of approximately $ 0.4 million , approximately $ 0.2 million in depreciation and amortization expenses and approximately $ 0.2 million of miscellaneous expenditures .

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 twelve months ended june 30 , 2013 compared to twelve months ended june 30 , 2012 due to the underwritten public offering of our common stock in april 2013 , pursuant to which we received net proceeds of approximately $ 22.6 million , and the exchange and amendment agreement pursuant to which , as described below , we fully satisfied our obligations under our senior secured convertible debentures due april 15 , 2014 in the prior principal amount of $ 11.7 million , we believe that we have sufficient cash to continue our operations into 2015. however , depending on the operating results in 2014 , we may need to raise additional funds in 2015 to continue financing our operations . general . at june 30 , 2013 , we had cash and cash equivalents of approximately $ 14.8 million , as compared to $ 10.3 million as of june 30 , 2012. we have historically met our cash needs through a combination of issuing new shares , borrowing activities and sales . our cash requirements are generally for clinical trials , marketing and sales activities , finance and administrative cost , capital expenditures and general working capital . 49 cash used in our operating activities was approximately $ 10.3 million for the twelve months ended june 30 , 2013 and $ 8.6 million for the same period in 2012. the principal reasons for the usage of cash in our operating activities for the twelve months ended june 30 , 2013 include a net loss of approximately $ 29.3 million , offset by approximately $ 13.5 million in non-cash financial expenses , approximately $ 3.8 million in non-cash share-based compensation that was largely paid to our directors , approximately $ 0.9 million in a non-cash royalties buyout related to the restructuring of our royalty agreement for the mguard prime version of our mguard coronary stent , as discussed above , a decrease in working capital of approximately $ 0.4 million , approximately $ 0.2 million in depreciation and amortization expenses and approximately $ 0.2 million of miscellaneous expenditures . ``` Suspicious Activity Report : accordingly , the historical financial statements presented and the discussion of financial condition and results of operations herein are those of inspiremd ltd. , retroactively restated for , and giving effect to , the number of shares received in the share exchange transactions , and do not include the historical financial results of our former business . the accumulated earnings of inspiremd ltd. were also carried forward after the share exchange transactions and earnings per share have been retroactively restated to give effect to the recapitalization for all periods presented . operations reported for periods prior to the share exchange transactions are those of inspiremd ltd. on june 1 , 2012 , our board of directors approved a change in our fiscal year-end from december 31 to june 30 , effective june 30 , 2012. we effectuated a one-for-four reverse stock split of our common stock on december 21 , 2012. recent events on april 16 , 2013 , we consummated an underwritten public offering pursuant to which we sold 12.5 million shares of common stock . the public offering price of our common stock in this offering was $ 2.00 per share , resulting in aggregate net proceeds to us of approximately $ 22.6 million , after the underwriters ' commissions and offering expenses . on april 11 , 2013 , following the pricing of the offering , our common stock commenced trading on the nyse mkt . critical accounting policies use of estimates the preparation of financial statements in conformity with u.s. gaap requires management to make estimates using assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales and expenses during the reporting periods . actual results could differ from those estimates . as applicable to these consolidated financial statements , the most significant estimates and assumptions relate to inventory write-off , intangible assets , provisions for returns , legal contingencies , estimation of the fair value of share-based compensation and estimation of the fair value of warrants . functional currency the currency of the primary economic environment in which our operations are conducted is the u.s. dollar ( “ $ ” or “ dollar ” ) . accordingly , the functional currency of us and of our subsidiaries is the dollar . the dollar figures are determined as follows : transactions and balances originally denominated in dollars are presented in their original amounts . balances in foreign currencies are translated into dollars using historical and current exchange rates for non-monetary and monetary balances , respectively . the resulting translation gains or losses are recorded as financial income or expense , as appropriate . for transactions reflected in the statements of operations in foreign currencies , the exchange rates at transaction dates are used . depreciation and changes in inventories and other changes deriving from non-monetary items are based on historical exchange rates . fair value measurement fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date . 45 in determining fair value , we use various valuation approaches , including market , income and or cost approaches . hierarchy for inputs is used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available . observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of us . unobservable inputs are inputs that reflect our assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances . the hierarchy is broken down into three levels based on the reliability of inputs . concentration of credit risk and allowance for doubtful accounts financial instruments that may potentially subject us to a concentration of credit risk consist of cash , cash equivalents and restricted cash which are deposited in major financial institutions in the u.s. , germany and israel , and trade accounts receivable . our trade accounts receivable are derived from revenues earned from customers from various countries . we perform ongoing credit evaluations of our customers ' financial condition and , generally , require no collateral from our customers . we also have a credit insurance policy for some of our customers . we maintain an allowance for doubtful accounts receivable based upon the expected ability to collect the accounts receivable . we review our allowance for doubtful accounts quarterly by assessing individual accounts receivable and all other balances based on historical collection experience and an economic risk assessment . if we determine that a specific customer is unable to meet its financial obligations to us , we provide an allowance for credit losses to reduce the receivable to the amount our management reasonably believes will be collected . to mitigate risks , we deposit cash and cash equivalents with high credit quality financial institutions . provisions for doubtful debts are netted against “ accounts receivable-trade . ” inventory inventories include finished goods , work in process and raw materials . inventories are stated at the lower of cost ( cost is determined on a “ first-in , first-out ” basis ) or market value . our inventories generally have a limited shelf life and are subject to impairment as they approach their expiration dates . story_separator_special_tag for the twelve months ended june 30 , 2013 , general and administrative expenses decreased 35.4 % , or approximately $ 4.9 million , to approximately $ 9.0 million from approximately $ 13.9 million during the same period in 2012. the decrease in general and administrative expenses resulted primarily from a decrease in share-based compensation of $ 6.1 million ( which predominantly pertained to director 's compensation paid in 2012 ) and a decrease of approximately $ 0.3 million in expenses related to consultants . this decrease was partially offset by an increase in salaries of approximately $ 0.6 million ( which predominately relates to the hiring of our new chief executive officer ) , an increase of approximately $ 0.5 million in legal expenses largely associated with our previous financing efforts , an increase of approximately $ 0.1 million in bad debt expense , an increase of approximately $ 0.1 million in audit fees , and an increase of approximately $ 0.2 million in miscellaneous expenses . general and administrative expenses as a percentage of revenue decreased to 184.1 % in the twelve months ended june 30 , 2013 from 259.5 % in the same period in 2012 . 48 financial expenses . for the twelve months ended june 30 , 2013 , financial expenses increased to approximately $ 14.1 million from approximately $ 38,000 during the same period in 2012. the increase in financial expenses resulted primarily from approximately $ 9.9 million in non-recurring , non-cash effects of the debt inducement related to the adjustment of the conversion ratio of our convertible debentures upon their retirement in april 2013 , $ 4.3 million of amortization expense pertaining to our convertible debentures and their related issuance costs ( of which approximately $ 3.6 million represented the non-recurring , non-cash amortization of the discount of the convertible debentures and their related issuance costs ) . in addition to these non-recurring , non-cash expenses , we also incurred approximately $ 1.5 million of expense pertaining to our obligation to issue shares of common stock without new consideration to the investors in our march 2011 private placement due to certain anti-dilution rights held by such stockholders . these expenses were partially offset by approximately $ 1.4 million of financial income pertaining to the revaluation of certain of our warrants due to our stock price decreasing to $ 2.21 on june 30 , 2013 , from $ 4.24 on june 30 , 2012 and approximately $ 0.1 million for the favorable impact of exchange rate differences for the twelve months ended june 30 , 2013. financial expense as a percentage of revenue increased from 0.7 % in the twelve months ended june 30 , 2012 , to 290.9 % in the same period in 2013. if the non-recurring , non-cash effects of the debt inducement and amortization expense are removed , financial expenses for the twelve months ended june 30 , 2013 would have totaled approximately $ 0.7 million , an increase of approximately $ 0.7 million from the same period in 2012. tax expenses . for the twelve months ended june 30 , 2013 , tax expenses decreased approximately $ 6,000 to approximately $ 8,000 for the twelve months ended june 30 , 2013 , from approximately $ 14,000 during the same period in 2012. net loss . our net loss increased by approximately $ 11.7 million , or 66.3 % , to approximately $ 29.3 million for the twelve months ended june 30 , 2013 from approximately $ 17.6 million during the same period in 2012. the increase in net loss resulted primarily from an increase of approximately $ 14.2 million in financial expenses , of which , approximately $ 13.5 million were non-recurring , non-cash ( see above for explanation ) , partially offset by a decrease of approximately $ 2.4 million in operating expenses ( see above for explanation ) and an increase of approximately $ 0.1 million in gross profit ( see above for explanation ) . if the non-recurring , non-cash effects of the debt inducement and amortization expense are removed , our net loss would be approximately $ 15.8 million for the twelve months ended june 30 , 2013 , as compared to a net loss of approximately $ 17.6 million for the same period in 2012 , an improvement of approximately $ 1.8 million , or 10 % . story_separator_special_tag · amended the securities purchase agreement pursuant to which the convertible debentures were originally issued to prohibit us from issuing securities containing anti-dilution protective provisions ; and 50 · amended the warrants issued in connection with the convertible debentures to ( i ) eliminate the automatic incorporation of the terms of any securities that are superior to those of such warrants , except with respect to exercise price and warrant coverage and ( ii ) provide that upon a fundamental transaction , the holders of such warrants will have the right to cause us to repurchase the unexercised portion of such warrants at their black-scholes value on the date of such fundamental transaction , payable in shares of common stock , rather than in cash as was previously provided . off balance sheet arrangements we have no off-balance sheet transactions , arrangements , obligations ( including contingent obligations ) , or other relationships with unconsolidated entities or other persons that have , or may have , a material effect on our financial condition , changes in financial condition , revenues or expenses , results of operations , liquidity , capital expenditures or capital resources . recent accounting pronouncements in july 2012 , the financial accounting standards board issued accounting standard update 2012-02 , “ intangibles- goodwill and other ( topic 350 ) : testing indefinite intangibles assets for impairment , ” which amended the guidance in asc 350-30 on testing indefinite-lived intangible assets , other than goodwill , for impairment allowing an entity to perform a qualitative impairment assessment . if the entity determines that

in the life and accident and health insurance industry , the liabilities for claims and the related expensing of those liabilities are evaluated and recorded using estimates of claim liabilities . the company estimates its claim liabilities using the general methodology described herein . the liability for claims generally consists of the following : ( 1 ) due and unpaid claims , ( 2 ) claims in the course of settlement , and ( 3 ) claims incurred but unreported . the company records the actual liability for all claims that are due but unpaid , item ( 1 ) . but , with regard to the last items ( 2 ) and ( 3 ) , the company must make estimates . the estimates are based on actuarial principles . the company 's independent consulting actuary works with company financial personnel and management in determining the estimates and the independent consulting actuary annually gives the company a certification as to the amounts of the liabilities . the company calculates and maintains claim liabilities for the estimated future payments on claims incurred before the statement date . these calculations are based on actuarial principles in accordance with industry standards and applicable gaap requirements . development of such liabilities is done with company financial personnel and management working with the company 's independent consulting actuary . these liabilities involve many considerations including but not limited to economic and social conditions , inflation , and healthcare costs . the claim liabilities developed include significant estimates and assumptions based on management 's review of historical experience in consultation with its independent actuary . the extent to which future payments match the claims liabilities is dependent on how well actual future experience matches the assumptions management makes regarding the future experience . the company 's liabilities are estimates that require significant judgment and , therefore , are inherently uncertain . it is common in the life and accident and health insurance industry for a consulting actuary to give either ( a ) a liability certification where the liabilities are expressed as a range of numbers for each relevant liability ( the “ range estimate ” ) , or ( b ) a 12 liability certification where the liabilities are expressed as a single number for each relevant liability ( the “ single point estimate ” ) . where the range estimate method is used , the management of an insurance company makes its own choice to record an amount within the range . the company does not use the range estimate for any of its insurance products . instead , for all of its insurance products , the company uses the single point estimate . for the company 's group and individual dental insurance , the company 's financial personnel develop and make a single point estimate for the claim liabilities which work results in the company 's single point estimate for the end of each fiscal quarter and year end . the company 's independent consulting actuary develops and makes its separate single point estimate for such liabilities . the company 's financial personnel and independent consulting actuary compare their single point estimates , reconcile any differences and agree on a single point estimate for such liabilities . annually , the company 's independent consulting actuary gives a single point estimate liability certification to the company with the agreed amount and the company uses such certified amount without change . for the company 's group and individual life and annuity insurance , the company 's financial personnel make the single point estimate for each such claim liability . annually , the company 's consulting actuary independently reviews the single point estimates . if the independent consulting actuary agrees with the single point estimates , he gives a certification to the company . the company 's financial personnel have significant experience and knowledge in developing claim estimates for the company 's insurance products . however , the company 's financial personnel are not formally trained , certified or recognized as actuaries . the company continually engages independent consulting actuaries . the company makes extensive use of its independent consulting actuaries which includes the actuaries ' assistance in the development and creation of policy assumptions , the development and modification of reserve and claim liability methodologies and assumptions , estimations and calculations of reserves and claim liabilities , and the annual certification of the amount of the company 's liabilities for its products . while claim liabilities are estimated as an inherent part of the insurance industry , management of the company believes that it follows standard industry practices in estimating claim liabilities . the following discussions of claim liability methodology are separated by the company 's product types as indicated by the section headings . dental insurance - group and individual for the company 's group and individual dental insurance policies , the company and its independent consulting actuary use a completion factor approach ( sometimes referred to as the development method ) which provides best estimates of the factors to determine claim liabilities . in implementing the completion factor approach , a review of payment history develops the completion factors . these completion factors relate what percentage of an ultimate claim is paid based upon its duration from date of service . such completion factors are monitored over time and have been relatively stable . the completion factors are used to estimate the liabilities for the months in which the claims are incurred where they are deemed to be credible . however , with respect to claims incurred in the most recent months , the completion factors may not be fully credible ( the payment history is not complete ) . so , as is common in the industry , a review is made of developing claims per insured by month and loss ratios by month for the most recent months . story_separator_special_tag we believe liquid assets , along with investment income , premium income and marketing fees will be sufficient to meet our long and short-term liquidity needs . we do not have any current plans to borrow money for operations . bnlac reports to state regulatory authorities on a statutory accounting basis that differs from the basis used herein . due to an arkansas regulatory requirement associated with the redomestication in 1994 , bnlac must maintain a minimum of $ 2,300,000 in capital and surplus . additionally , each state in which bnlac is licensed has statutory minimum capital requirements required for maintaining its license to sell . minimum capital and surplus requirements vary from $ 300,000 to as much as $ 5,000,000 in the states in which bnlac is licensed . results of operations premium income was $ 44,646,393 in 2006 , $ 44,303,827 in 2005 and $ 42,451,319 in 2004. the increase in 2006 was due to new sales of group dental insurance which was offset by approximately a $ 1.1 million reduction in group dental premium due to the termination of an agreement between the company and southeast managers , inc. ( “ semi ” ) . this agreement allowed semi to market a dental product of bnlac 's in tennessee and the company received 5.0 % of premium revenue with no exposure to underwriting losses . as part of the termination agreement , the block of business was transferred to another company associated with semi . the increase of 4 % in 2005 was due to new sales of group dental insurance and increased group and individual dental renewal premiums net investment income was $ 1,191,583 in 2006 , $ 1,003,613 in 2005 and $ 975,485 in 2004 , an increase of 18 % in 2006 , and an increase of 3 % in 2005. the increase in 2006 was primarily due to delinquent interest received on bonds previously in default and an increase in fixed maturities investment yield . the increase in 2005 was d ue to an increase in investment in fixed maturities and an increase in interest rates . continued profitability and stable or increased interest rates in subsequent years , will permit the company to invest its profits in fixed maturities and continue the trend of increased investment income . the company receives marketing fees from ebi per the marketing agreement mentioned above . the company received marketing fees of $ 143,315 in 2006 , $ 115,233 in 2005 and $ 165,275 in 2004. t he decrease in marketing fees in 2005 compared to 2006 and 2004 is due to reduced operating income at ebi . bnlac markets group and individual vision insurance products that are underwritten by other insurance companies , on which bnlac does not have any exposure to underwriting ( claims ) losses . the company had vision insurance income of $ 1,603,767 , $ 1,051,720 and $ 695,046 in 2006 , 2005 and 2004 , respectively . the vision income increased by 49 % and 51 % in 2006 and 2005 , respectively , primarily due to the addition of group voluntary vision plans . the company had a realized gain on debt extinguishments of $ 35,732 in 2006 , $ 102,067 in 2005 and $ 495,462 in 2004 due to the purchase of debentures payable at less than par value . the company purchased fewer debentures in 2006 and 2005 than it did in 2004 , which resulted in less realized gain in debt extinguishments . 19 realized capital gains and ( losses ) on investments were $ 25,547 in 2006 , $ 37,816 in 2005 and $ 124,078 in 2004. the realized gain in 2006 and 2005 was primarily from the sale of equity securities . the realized gain in 2004 is primarily from the sale of u.s. treasury bonds . increases in liability for future policy benefits were ( $ 123,066 ) , $ 308,563 and $ 687,619 in 2006 , 2005 and 2004 , respectively . the decrease in future policy benefits in 2006 was primarily due to the decrease in future policy benefits liability as a result of the terminated agreement between the company and semi mentioned above . as part of the termination agreement , the block of business was transferred to another company associated with semi and the liability for future policy benefits was reduced by $ 95,000. the decrease in expense was also due to a reduction in life liabilities from an increase in surrenders on a seasoned block of life policies . the $ 308,563 in 2005 is comprised primarily of an increase in unearned premium liabilities on group and individual dental business . in 2004 , a future policy benefit reserve amount of $ 611,410 was booked for individual dental policies then in force . this amount included additional reserves for the individual dental policies issued in 2001 , 2002 and 2003 , which remained in force ( not terminated ) in 2004 and also included reserves for individual dental policies issued in 2004. the company began issuing individual dental policies in 2001 as a new product . the company 's calculations indicate that in 2004 the company recorded individual dental policy cumulative gross benefit reserves for policies issued prior to 2004 in the amount of $ 280,292 and the combined after-tax charge for those policies was $ 181,699 ( $ .01 per share of common stock ) which was accounted for as a change in estimate . for the year ended december 31 , 2004 , the after-tax effect of recording the liabilities , including the cumulative change in estimate , was calculated to have been a decrease in net income of approximately $ 378,000 ( $ .02 per share of common stock ) . policy benefits and other insurance costs increased from $ 31,766,217 in 2004 , to $ 33,317,136 in 2005 and increased to $ 34,374,507 in 2006. the increase in 2005 was primarily due to

liquidity and capital resources at december 31 , 2006 the company had liquid assets of $ 1,673,058 in cash , receivable on fixed securities , money market savings accounts , and short-term certificates of deposit . all of the non-cash liquid assets can readily be converted into cash . the major components of operating cash flows are premiums and investment income while policy benefits are the most significant cash outflow . in 2006 , bnlac collected approximately $ 44.8 million of premiums and annuity deposits ( gross before reinsurance ) and realized $ 1,005,775 of net investment income . another source of cash flow in 2006 was overwrite commissions of $ 1,603,767 on vision products . during the year the company incurred $ 34,374,507 in policy benefits and other insurance costs . the net cash flow for 2006 was $ 726,786 versus operating income of $ 3,082,645. the difference is primarily due to the purchase of $ 1,297,948 of the company 's treasury stock , a decrease in annuity deposits of approximately $ 350,367 , the purchase of fixed assets and leasehold improvements of $ 269,487 and purchase of bonds payable and equity securities totaling $ 294,744 . approximately $ 596,800 of the bond portfolio is classified as available for sale and carried on the balance sheet at market value with the unrealized gain or loss recorded in the surplus section of the balance sheet . the bonds include ; automobile bonds , government agencies and u. s. treasury bonds that have unrealized profits . the company may sell these bonds before they mature .

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 , 2006 the company had liquid assets of $ 1,673,058 in cash , receivable on fixed securities , money market savings accounts , and short-term certificates of deposit . all of the non-cash liquid assets can readily be converted into cash . the major components of operating cash flows are premiums and investment income while policy benefits are the most significant cash outflow . in 2006 , bnlac collected approximately $ 44.8 million of premiums and annuity deposits ( gross before reinsurance ) and realized $ 1,005,775 of net investment income . another source of cash flow in 2006 was overwrite commissions of $ 1,603,767 on vision products . during the year the company incurred $ 34,374,507 in policy benefits and other insurance costs . the net cash flow for 2006 was $ 726,786 versus operating income of $ 3,082,645. the difference is primarily due to the purchase of $ 1,297,948 of the company 's treasury stock , a decrease in annuity deposits of approximately $ 350,367 , the purchase of fixed assets and leasehold improvements of $ 269,487 and purchase of bonds payable and equity securities totaling $ 294,744 . approximately $ 596,800 of the bond portfolio is classified as available for sale and carried on the balance sheet at market value with the unrealized gain or loss recorded in the surplus section of the balance sheet . the bonds include ; automobile bonds , government agencies and u. s. treasury bonds that have unrealized profits . the company may sell these bonds before they mature . ``` Suspicious Activity Report : in the life and accident and health insurance industry , the liabilities for claims and the related expensing of those liabilities are evaluated and recorded using estimates of claim liabilities . the company estimates its claim liabilities using the general methodology described herein . the liability for claims generally consists of the following : ( 1 ) due and unpaid claims , ( 2 ) claims in the course of settlement , and ( 3 ) claims incurred but unreported . the company records the actual liability for all claims that are due but unpaid , item ( 1 ) . but , with regard to the last items ( 2 ) and ( 3 ) , the company must make estimates . the estimates are based on actuarial principles . the company 's independent consulting actuary works with company financial personnel and management in determining the estimates and the independent consulting actuary annually gives the company a certification as to the amounts of the liabilities . the company calculates and maintains claim liabilities for the estimated future payments on claims incurred before the statement date . these calculations are based on actuarial principles in accordance with industry standards and applicable gaap requirements . development of such liabilities is done with company financial personnel and management working with the company 's independent consulting actuary . these liabilities involve many considerations including but not limited to economic and social conditions , inflation , and healthcare costs . the claim liabilities developed include significant estimates and assumptions based on management 's review of historical experience in consultation with its independent actuary . the extent to which future payments match the claims liabilities is dependent on how well actual future experience matches the assumptions management makes regarding the future experience . the company 's liabilities are estimates that require significant judgment and , therefore , are inherently uncertain . it is common in the life and accident and health insurance industry for a consulting actuary to give either ( a ) a liability certification where the liabilities are expressed as a range of numbers for each relevant liability ( the “ range estimate ” ) , or ( b ) a 12 liability certification where the liabilities are expressed as a single number for each relevant liability ( the “ single point estimate ” ) . where the range estimate method is used , the management of an insurance company makes its own choice to record an amount within the range . the company does not use the range estimate for any of its insurance products . instead , for all of its insurance products , the company uses the single point estimate . for the company 's group and individual dental insurance , the company 's financial personnel develop and make a single point estimate for the claim liabilities which work results in the company 's single point estimate for the end of each fiscal quarter and year end . the company 's independent consulting actuary develops and makes its separate single point estimate for such liabilities . the company 's financial personnel and independent consulting actuary compare their single point estimates , reconcile any differences and agree on a single point estimate for such liabilities . annually , the company 's independent consulting actuary gives a single point estimate liability certification to the company with the agreed amount and the company uses such certified amount without change . for the company 's group and individual life and annuity insurance , the company 's financial personnel make the single point estimate for each such claim liability . annually , the company 's consulting actuary independently reviews the single point estimates . if the independent consulting actuary agrees with the single point estimates , he gives a certification to the company . the company 's financial personnel have significant experience and knowledge in developing claim estimates for the company 's insurance products . however , the company 's financial personnel are not formally trained , certified or recognized as actuaries . the company continually engages independent consulting actuaries . the company makes extensive use of its independent consulting actuaries which includes the actuaries ' assistance in the development and creation of policy assumptions , the development and modification of reserve and claim liability methodologies and assumptions , estimations and calculations of reserves and claim liabilities , and the annual certification of the amount of the company 's liabilities for its products . while claim liabilities are estimated as an inherent part of the insurance industry , management of the company believes that it follows standard industry practices in estimating claim liabilities . the following discussions of claim liability methodology are separated by the company 's product types as indicated by the section headings . dental insurance - group and individual for the company 's group and individual dental insurance policies , the company and its independent consulting actuary use a completion factor approach ( sometimes referred to as the development method ) which provides best estimates of the factors to determine claim liabilities . in implementing the completion factor approach , a review of payment history develops the completion factors . these completion factors relate what percentage of an ultimate claim is paid based upon its duration from date of service . such completion factors are monitored over time and have been relatively stable . the completion factors are used to estimate the liabilities for the months in which the claims are incurred where they are deemed to be credible . however , with respect to claims incurred in the most recent months , the completion factors may not be fully credible ( the payment history is not complete ) . so , as is common in the industry , a review is made of developing claims per insured by month and loss ratios by month for the most recent months . story_separator_special_tag we believe liquid assets , along with investment income , premium income and marketing fees will be sufficient to meet our long and short-term liquidity needs . we do not have any current plans to borrow money for operations . bnlac reports to state regulatory authorities on a statutory accounting basis that differs from the basis used herein . due to an arkansas regulatory requirement associated with the redomestication in 1994 , bnlac must maintain a minimum of $ 2,300,000 in capital and surplus . additionally , each state in which bnlac is licensed has statutory minimum capital requirements required for maintaining its license to sell . minimum capital and surplus requirements vary from $ 300,000 to as much as $ 5,000,000 in the states in which bnlac is licensed . results of operations premium income was $ 44,646,393 in 2006 , $ 44,303,827 in 2005 and $ 42,451,319 in 2004. the increase in 2006 was due to new sales of group dental insurance which was offset by approximately a $ 1.1 million reduction in group dental premium due to the termination of an agreement between the company and southeast managers , inc. ( “ semi ” ) . this agreement allowed semi to market a dental product of bnlac 's in tennessee and the company received 5.0 % of premium revenue with no exposure to underwriting losses . as part of the termination agreement , the block of business was transferred to another company associated with semi . the increase of 4 % in 2005 was due to new sales of group dental insurance and increased group and individual dental renewal premiums net investment income was $ 1,191,583 in 2006 , $ 1,003,613 in 2005 and $ 975,485 in 2004 , an increase of 18 % in 2006 , and an increase of 3 % in 2005. the increase in 2006 was primarily due to delinquent interest received on bonds previously in default and an increase in fixed maturities investment yield . the increase in 2005 was d ue to an increase in investment in fixed maturities and an increase in interest rates . continued profitability and stable or increased interest rates in subsequent years , will permit the company to invest its profits in fixed maturities and continue the trend of increased investment income . the company receives marketing fees from ebi per the marketing agreement mentioned above . the company received marketing fees of $ 143,315 in 2006 , $ 115,233 in 2005 and $ 165,275 in 2004. t he decrease in marketing fees in 2005 compared to 2006 and 2004 is due to reduced operating income at ebi . bnlac markets group and individual vision insurance products that are underwritten by other insurance companies , on which bnlac does not have any exposure to underwriting ( claims ) losses . the company had vision insurance income of $ 1,603,767 , $ 1,051,720 and $ 695,046 in 2006 , 2005 and 2004 , respectively . the vision income increased by 49 % and 51 % in 2006 and 2005 , respectively , primarily due to the addition of group voluntary vision plans . the company had a realized gain on debt extinguishments of $ 35,732 in 2006 , $ 102,067 in 2005 and $ 495,462 in 2004 due to the purchase of debentures payable at less than par value . the company purchased fewer debentures in 2006 and 2005 than it did in 2004 , which resulted in less realized gain in debt extinguishments . 19 realized capital gains and ( losses ) on investments were $ 25,547 in 2006 , $ 37,816 in 2005 and $ 124,078 in 2004. the realized gain in 2006 and 2005 was primarily from the sale of equity securities . the realized gain in 2004 is primarily from the sale of u.s. treasury bonds . increases in liability for future policy benefits were ( $ 123,066 ) , $ 308,563 and $ 687,619 in 2006 , 2005 and 2004 , respectively . the decrease in future policy benefits in 2006 was primarily due to the decrease in future policy benefits liability as a result of the terminated agreement between the company and semi mentioned above . as part of the termination agreement , the block of business was transferred to another company associated with semi and the liability for future policy benefits was reduced by $ 95,000. the decrease in expense was also due to a reduction in life liabilities from an increase in surrenders on a seasoned block of life policies . the $ 308,563 in 2005 is comprised primarily of an increase in unearned premium liabilities on group and individual dental business . in 2004 , a future policy benefit reserve amount of $ 611,410 was booked for individual dental policies then in force . this amount included additional reserves for the individual dental policies issued in 2001 , 2002 and 2003 , which remained in force ( not terminated ) in 2004 and also included reserves for individual dental policies issued in 2004. the company began issuing individual dental policies in 2001 as a new product . the company 's calculations indicate that in 2004 the company recorded individual dental policy cumulative gross benefit reserves for policies issued prior to 2004 in the amount of $ 280,292 and the combined after-tax charge for those policies was $ 181,699 ( $ .01 per share of common stock ) which was accounted for as a change in estimate . for the year ended december 31 , 2004 , the after-tax effect of recording the liabilities , including the cumulative change in estimate , was calculated to have been a decrease in net income of approximately $ 378,000 ( $ .02 per share of common stock ) . policy benefits and other insurance costs increased from $ 31,766,217 in 2004 , to $ 33,317,136 in 2005 and increased to $ 34,374,507 in 2006. the increase in 2005 was primarily due to

on february 28 , 2014 , our wholly-owned subsidiary , monroe capital corporation sbic , lp ( “ mrcc sbic ” ) , a delaware limited partnership , received a license from the small business administration ( “ sba ” ) to operate as a small business investment company ( “ sbic ” ) under section 301 ( c ) of the small business investment act of 1958. mrcc sbic commenced operations on september 16 , 2013. see “ sba debentures ” below for more information . investment income we generate interest income on the debt investments in portfolio company investments that we originate or acquire . our debt investments , whether in the form of senior secured , unitranche secured or junior secured debt , typically have an initial term of three to seven years and bear interest at a fixed or floating rate . in some instances , we receive payments on our debt investments based on scheduled amortization of the outstanding balances . in addition , we receive repayments of some of our debt investments prior to their scheduled maturity date . in some cases , our investments provide for deferred interest of payment-in-kind ( “ pik ” ) interest . in addition , we may generate revenue in the form of commitment , origination , amendment , structuring or due diligence fees , fees for providing managerial assistance and consulting fees . loan origination fees , original issue discount and market discount or premium are capitalized , and we accrete or amortize such amounts as interest income . we record prepayment premiums and prepayment gains ( losses ) on loans as interest income . as the frequency or volume of the repayments which trigger these prepayment premiums and prepayment gains ( losses ) may fluctuate significantly from period to period , the associated interest income recorded may also fluctuate significantly from period to period . interest and fee income are recorded on the accrual basis to the extent we expect to collect such amounts . interest income is accrued based upon the outstanding principal amount and contractual terms of debt and preferred equity investments . interest is accrued on a daily basis . we record fees on loans based on the determination of whether the fee is considered a yield enhancement or payment for a service . if the fee is considered a yield enhancement associated with a funding of cash on a loan , the fee is generally deferred and recognized into interest income using the effective interest method if captured in the cost basis or using the straight-line method if the loan is unfunded and therefore there is no cost basis . if the fee is not considered a yield enhancement because a service was provided , and the fee is payment for that service , the fee is deemed earned and recognized as fee income in the period the service has been completed . 57 dividend income on preferred equity securities is recorded as dividend income on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected . dividend income on common equity securities is recorded on the record date for private portfolio companies . each distribution received from limited liability company ( “ llc ” ) and limited partnership ( “ lp ” ) investments is evaluated to determine if the distribution should be recorded as dividend income or a return of capital . generally , we will not record distributions from equity investments in llcs and lps as dividend income unless there are sufficient accumulated tax-basis earnings and profits in the llc or lp prior to the distribution . distributions that are classified as a return of capital are recorded as a reduction in the cost basis of the investment . the frequency and volume of the distributions on common equity securities and llc and lp investments may fluctuate significantly from period to period . expenses our primary operating expenses include the payment of base management and incentive fees to mc advisors , under the investment advisory and management agreement ( the “ investment advisory agreement ” ) , the payment of fees to mc management for our allocable portion of overhead and other expenses under the administration agreement ( the “ administration agreement ” ) and other operating costs . see note 6 to our consolidated financial statements and “ related party transactions ” below for additional information on our investment advisory agreement and administration agreement . our expenses also include interest expense on our various forms of indebtedness . we bear all other out-of-pocket costs and expenses of our operations and transactions . net gain ( loss ) we recognize realized gains or losses on investments based on the difference between the net proceeds from the disposition and the cost basis of the investment without regard to unrealized gains or losses previously recognized . we record current period changes in fair value of investments , foreign currency forward contracts , foreign currency and other transactions within net change in unrealized gain ( loss ) on the consolidated statements of operations . portfolio and investment activity during the year ended december 31 , 2020 , we invested $ 73.1 million in 18 new portfolio companies and $ 70.3 million in 39 existing portfolio companies and had $ 194.6 million in aggregate amount of sales and principal repayments , resulting in net sales and repayments of $ 51.2 million for the year . during the year ended december 31 , 2019 , we invested $ 98.6 million in 18 new portfolio companies and $ 132.0 million in 33 existing portfolio companies and had $ 166.1 million in aggregate amount of sales and principal repayments , resulting in net investments of $ 64.5 million for the year . story_separator_special_tag during the years ended december 31 , 2020 , 2019 and 2018 , we had ( $ 16 ) thousand , $ 12 thousand and ( $ 3 ) thousand of net realized gain ( loss ) on foreign currency forward contracts , respectively . during the years ended december 31 , 2020 , 2019 and 2018 , we had ( $ 14 ) thousand , ( $ 4 ) thousand and ( $ 13 ) thousand of net realized gain ( loss ) on foreign currency and other transactions , respectively . net change in unrealized gain ( loss ) for the years ended december 31 , 2020 , 2019 and 2018 , our investments had ( $ 30.6 ) million , ( $ 8.0 ) million and $ 2.9 million of net change in unrealized gain ( loss ) , respectively . the net change in unrealized gain ( loss ) includes both unrealized gain on investments in our portfolio with mark-to-market gains during the year and unrealized loss on investments in our portfolio with mark-to-market losses during the year . during the year ended december 31 , 2020 , our operating results were negatively impacted by the uncertainty surrounding the covid-19 pandemic which has caused severe disruptions in the global economy and negatively impacted the fair value and performance of our investment portfolio . we estimate approximately ( $ 20.9 ) million of the net unrealized losses were attributable to specific credit or fundamental performance of the underlying portfolio companies , a significant portion of which is as a result of the impact of the covid-19 pandemic on individual credit performance . we also recorded ( $ 8.4 ) million of net change in unrealized ( loss ) as a result of the reversal of previously recorded unrealized gains associated with the collection of proceeds from rockdale . the fair value of our portfolio investments may be further negatively impacted after december 31 , 2020 by circumstances and events that are not yet known . additionally , we estimate that the remainder of the net unrealized losses during the year ended december 31 , 2020 , were attributable to broad market movements and widening of credit spreads . this includes net unrealized losses of ( $ 3.1 ) million attributable to our investment in the slf . the slf 's underlying investments are loans to middle-market borrowers that are generally larger than the rest of our portfolio which is focused on lower middle-market companies . these upper middle-market loans held within the slf experienced higher volatility in valuation than the rest of our portfolio . the net change in unrealized gain ( loss ) during the year ended december 31 , 2019 was primarily attributable to mark-to-market losses on our portfolio , including most significantly unrealized losses on our investment in worth of ( $ 7.4 ) million . this was partially offset by mark-to-market gains on our investment in rockdale of $ 11.8 million . for the years ended december 31 , 2020 , 2019 and 2018 , our foreign currency forward contracts had ( $ 54 ) thousand , ( $ 75 ) thousand , and $ 16 thousand of net change in unrealized gain ( loss ) , respectively . for the years ended december 31 , 2020 , 2019 and 2018 , our foreign currency borrowings had ( $ 0.7 ) million , ( $ 0.8 ) million and $ 1.0 million of net change in unrealized gain ( loss ) , respectively . net increase ( decrease ) in net assets resulting from operations for the years ended december 31 , 2020 , 2019 and 2018 , the net increase ( decrease ) in net assets from operations was $ 1.6 million , $ 19.2 million and $ 5.8 million , respectively . based on the weighted average shares of common stock outstanding for the years ended december 31 , 2020 , 2019 and 2018 , our per share net increase ( decrease ) in net assets resulting from operations was $ 0.08 , $ 0.94 and $ 0.29 , respectively . the $ 17.6 million decrease during the year ended december 31 , 2020 , is primarily the result of a comparative increase in net mark-to-market losses on investments in the portfolio , partially offset by an increase in net investment income . the $ 13.4 million increase during the year ended december 31 , 2019 , is primarily the result of a comparative decrease in net mark-to-market losses on investments in the portfolio , partially offset by a decrease in net investment income . story_separator_special_tag proceeds of approximately $ 6.5 million . borrowings revolving credit facility : we have a $ 255.0 million revolving credit facility with ing capital llc , as agent . the revolving credit facility has an accordion feature which permits us , under certain circumstances to increase the size of the facility up to $ 400.0 million ( subject to maintaining 150 % asset coverage , as defined by the 1940 act ) . the revolving credit facility is secured by a lien on all of our assets , including cash on hand , but excluding the assets of our wholly-owned subsidiary , mrcc sbic . we may make draws under the revolving credit facility to make or purchase additional investments through march 1 , 2023 and for general working capital purposes until march 1 , 2024 , the maturity date of the revolving credit facility . 64 on may 21 , 2020 , we amended our revolving credit facility ( the “ amended credit agreement ” ) with ing capital llc , as agent . the amendment provided certain relief during a temporary covid-19 relief period of up to nine months , including expanded borrowing base capacity , flexibility within the asset coverage ratio definition to utilize an expanded base of assets to determine compliance and flexibility to utilize sec covid-19 relief for the calculation

liquidity and capital resources as of december 31 , 2020 , we had $ 6.8 million in cash , $ 25.7 million in cash at mrcc sbic , $ 126.6 million of total debt outstanding on our revolving credit facility , $ 109.0 million in 2023 notes and $ 115.0 million in outstanding sba debentures . we had $ 128.4 million available for additional borrowings on our revolving credit facility , subject to borrowing base availability . see “ borrowings ” below for additional information . 63 in accordance with the 1940 act , we are permitted to borrow amounts such that our asset coverage ratio , as defined in the 1940 act , is at least 150 % after such borrowing . as of december 31 , 2020 and december 31 , 2019 , our asset coverage ratio based on aggregate borrowings outstanding was 200 % and 183 % , respectively . cash flows for the year ended december 31 , 2020 , we experienced a net increase ( decrease ) in cash and restricted cash of $ 2.8 million . during the same period operating activities provided $ 74.9 million , primarily as a result of sales of and principal repayments on portfolio investments , partially offset by purchases of portfolio investments . during the same period , we used $ 72.1 million in financing activities , primarily as a result of net repayments on our revolving credit facility and distributions to stockholders , partially offset by proceeds from shares issued under the at-the-market ( “ atm ” ) securities offering program . for the year ended december 31 , 2019 , we experienced a net increase ( decrease ) in cash and restricted cash of $ 11.9 million . during the same period we used $ 39.2 million in operating activities , primarily as a result of purchases of portfolio investments , partially offset by sales of and principal repayments on portfolio investments .

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 $ 6.8 million in cash , $ 25.7 million in cash at mrcc sbic , $ 126.6 million of total debt outstanding on our revolving credit facility , $ 109.0 million in 2023 notes and $ 115.0 million in outstanding sba debentures . we had $ 128.4 million available for additional borrowings on our revolving credit facility , subject to borrowing base availability . see “ borrowings ” below for additional information . 63 in accordance with the 1940 act , we are permitted to borrow amounts such that our asset coverage ratio , as defined in the 1940 act , is at least 150 % after such borrowing . as of december 31 , 2020 and december 31 , 2019 , our asset coverage ratio based on aggregate borrowings outstanding was 200 % and 183 % , respectively . cash flows for the year ended december 31 , 2020 , we experienced a net increase ( decrease ) in cash and restricted cash of $ 2.8 million . during the same period operating activities provided $ 74.9 million , primarily as a result of sales of and principal repayments on portfolio investments , partially offset by purchases of portfolio investments . during the same period , we used $ 72.1 million in financing activities , primarily as a result of net repayments on our revolving credit facility and distributions to stockholders , partially offset by proceeds from shares issued under the at-the-market ( “ atm ” ) securities offering program . for the year ended december 31 , 2019 , we experienced a net increase ( decrease ) in cash and restricted cash of $ 11.9 million . during the same period we used $ 39.2 million in operating activities , primarily as a result of purchases of portfolio investments , partially offset by sales of and principal repayments on portfolio investments . ``` Suspicious Activity Report : on february 28 , 2014 , our wholly-owned subsidiary , monroe capital corporation sbic , lp ( “ mrcc sbic ” ) , a delaware limited partnership , received a license from the small business administration ( “ sba ” ) to operate as a small business investment company ( “ sbic ” ) under section 301 ( c ) of the small business investment act of 1958. mrcc sbic commenced operations on september 16 , 2013. see “ sba debentures ” below for more information . investment income we generate interest income on the debt investments in portfolio company investments that we originate or acquire . our debt investments , whether in the form of senior secured , unitranche secured or junior secured debt , typically have an initial term of three to seven years and bear interest at a fixed or floating rate . in some instances , we receive payments on our debt investments based on scheduled amortization of the outstanding balances . in addition , we receive repayments of some of our debt investments prior to their scheduled maturity date . in some cases , our investments provide for deferred interest of payment-in-kind ( “ pik ” ) interest . in addition , we may generate revenue in the form of commitment , origination , amendment , structuring or due diligence fees , fees for providing managerial assistance and consulting fees . loan origination fees , original issue discount and market discount or premium are capitalized , and we accrete or amortize such amounts as interest income . we record prepayment premiums and prepayment gains ( losses ) on loans as interest income . as the frequency or volume of the repayments which trigger these prepayment premiums and prepayment gains ( losses ) may fluctuate significantly from period to period , the associated interest income recorded may also fluctuate significantly from period to period . interest and fee income are recorded on the accrual basis to the extent we expect to collect such amounts . interest income is accrued based upon the outstanding principal amount and contractual terms of debt and preferred equity investments . interest is accrued on a daily basis . we record fees on loans based on the determination of whether the fee is considered a yield enhancement or payment for a service . if the fee is considered a yield enhancement associated with a funding of cash on a loan , the fee is generally deferred and recognized into interest income using the effective interest method if captured in the cost basis or using the straight-line method if the loan is unfunded and therefore there is no cost basis . if the fee is not considered a yield enhancement because a service was provided , and the fee is payment for that service , the fee is deemed earned and recognized as fee income in the period the service has been completed . 57 dividend income on preferred equity securities is recorded as dividend income on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected . dividend income on common equity securities is recorded on the record date for private portfolio companies . each distribution received from limited liability company ( “ llc ” ) and limited partnership ( “ lp ” ) investments is evaluated to determine if the distribution should be recorded as dividend income or a return of capital . generally , we will not record distributions from equity investments in llcs and lps as dividend income unless there are sufficient accumulated tax-basis earnings and profits in the llc or lp prior to the distribution . distributions that are classified as a return of capital are recorded as a reduction in the cost basis of the investment . the frequency and volume of the distributions on common equity securities and llc and lp investments may fluctuate significantly from period to period . expenses our primary operating expenses include the payment of base management and incentive fees to mc advisors , under the investment advisory and management agreement ( the “ investment advisory agreement ” ) , the payment of fees to mc management for our allocable portion of overhead and other expenses under the administration agreement ( the “ administration agreement ” ) and other operating costs . see note 6 to our consolidated financial statements and “ related party transactions ” below for additional information on our investment advisory agreement and administration agreement . our expenses also include interest expense on our various forms of indebtedness . we bear all other out-of-pocket costs and expenses of our operations and transactions . net gain ( loss ) we recognize realized gains or losses on investments based on the difference between the net proceeds from the disposition and the cost basis of the investment without regard to unrealized gains or losses previously recognized . we record current period changes in fair value of investments , foreign currency forward contracts , foreign currency and other transactions within net change in unrealized gain ( loss ) on the consolidated statements of operations . portfolio and investment activity during the year ended december 31 , 2020 , we invested $ 73.1 million in 18 new portfolio companies and $ 70.3 million in 39 existing portfolio companies and had $ 194.6 million in aggregate amount of sales and principal repayments , resulting in net sales and repayments of $ 51.2 million for the year . during the year ended december 31 , 2019 , we invested $ 98.6 million in 18 new portfolio companies and $ 132.0 million in 33 existing portfolio companies and had $ 166.1 million in aggregate amount of sales and principal repayments , resulting in net investments of $ 64.5 million for the year . story_separator_special_tag during the years ended december 31 , 2020 , 2019 and 2018 , we had ( $ 16 ) thousand , $ 12 thousand and ( $ 3 ) thousand of net realized gain ( loss ) on foreign currency forward contracts , respectively . during the years ended december 31 , 2020 , 2019 and 2018 , we had ( $ 14 ) thousand , ( $ 4 ) thousand and ( $ 13 ) thousand of net realized gain ( loss ) on foreign currency and other transactions , respectively . net change in unrealized gain ( loss ) for the years ended december 31 , 2020 , 2019 and 2018 , our investments had ( $ 30.6 ) million , ( $ 8.0 ) million and $ 2.9 million of net change in unrealized gain ( loss ) , respectively . the net change in unrealized gain ( loss ) includes both unrealized gain on investments in our portfolio with mark-to-market gains during the year and unrealized loss on investments in our portfolio with mark-to-market losses during the year . during the year ended december 31 , 2020 , our operating results were negatively impacted by the uncertainty surrounding the covid-19 pandemic which has caused severe disruptions in the global economy and negatively impacted the fair value and performance of our investment portfolio . we estimate approximately ( $ 20.9 ) million of the net unrealized losses were attributable to specific credit or fundamental performance of the underlying portfolio companies , a significant portion of which is as a result of the impact of the covid-19 pandemic on individual credit performance . we also recorded ( $ 8.4 ) million of net change in unrealized ( loss ) as a result of the reversal of previously recorded unrealized gains associated with the collection of proceeds from rockdale . the fair value of our portfolio investments may be further negatively impacted after december 31 , 2020 by circumstances and events that are not yet known . additionally , we estimate that the remainder of the net unrealized losses during the year ended december 31 , 2020 , were attributable to broad market movements and widening of credit spreads . this includes net unrealized losses of ( $ 3.1 ) million attributable to our investment in the slf . the slf 's underlying investments are loans to middle-market borrowers that are generally larger than the rest of our portfolio which is focused on lower middle-market companies . these upper middle-market loans held within the slf experienced higher volatility in valuation than the rest of our portfolio . the net change in unrealized gain ( loss ) during the year ended december 31 , 2019 was primarily attributable to mark-to-market losses on our portfolio , including most significantly unrealized losses on our investment in worth of ( $ 7.4 ) million . this was partially offset by mark-to-market gains on our investment in rockdale of $ 11.8 million . for the years ended december 31 , 2020 , 2019 and 2018 , our foreign currency forward contracts had ( $ 54 ) thousand , ( $ 75 ) thousand , and $ 16 thousand of net change in unrealized gain ( loss ) , respectively . for the years ended december 31 , 2020 , 2019 and 2018 , our foreign currency borrowings had ( $ 0.7 ) million , ( $ 0.8 ) million and $ 1.0 million of net change in unrealized gain ( loss ) , respectively . net increase ( decrease ) in net assets resulting from operations for the years ended december 31 , 2020 , 2019 and 2018 , the net increase ( decrease ) in net assets from operations was $ 1.6 million , $ 19.2 million and $ 5.8 million , respectively . based on the weighted average shares of common stock outstanding for the years ended december 31 , 2020 , 2019 and 2018 , our per share net increase ( decrease ) in net assets resulting from operations was $ 0.08 , $ 0.94 and $ 0.29 , respectively . the $ 17.6 million decrease during the year ended december 31 , 2020 , is primarily the result of a comparative increase in net mark-to-market losses on investments in the portfolio , partially offset by an increase in net investment income . the $ 13.4 million increase during the year ended december 31 , 2019 , is primarily the result of a comparative decrease in net mark-to-market losses on investments in the portfolio , partially offset by a decrease in net investment income . story_separator_special_tag proceeds of approximately $ 6.5 million . borrowings revolving credit facility : we have a $ 255.0 million revolving credit facility with ing capital llc , as agent . the revolving credit facility has an accordion feature which permits us , under certain circumstances to increase the size of the facility up to $ 400.0 million ( subject to maintaining 150 % asset coverage , as defined by the 1940 act ) . the revolving credit facility is secured by a lien on all of our assets , including cash on hand , but excluding the assets of our wholly-owned subsidiary , mrcc sbic . we may make draws under the revolving credit facility to make or purchase additional investments through march 1 , 2023 and for general working capital purposes until march 1 , 2024 , the maturity date of the revolving credit facility . 64 on may 21 , 2020 , we amended our revolving credit facility ( the “ amended credit agreement ” ) with ing capital llc , as agent . the amendment provided certain relief during a temporary covid-19 relief period of up to nine months , including expanded borrowing base capacity , flexibility within the asset coverage ratio definition to utilize an expanded base of assets to determine compliance and flexibility to utilize sec covid-19 relief for the calculation

our fulfillment solution provides fulfillment automation and replaces or augments an organization 's existing trading partner electronic communication infrastructure , enabling suppliers to have visibility into the journey of an order and comply with retailers ' rule books and enabling the electronic exchange of information among numerous trading partners through various protocols . trading partner analytics . our analytics solution consists of data analytics applications that enable our customers to improve their visibility across , and analysis of , their supply chains . when focused on point-of-sale data , for example , retailers and suppliers can ensure inventory is located where demand is highest . retailers improve their visibility into supplier performance and their understanding of product sell-through . trading partner assortment . today 's retail marketplace requires the management of tens and even hundreds of individual attributes associated with each item a retailer or supplier sells today . this information can include digital images/video , customer facing descriptions and measurements and warehouse information . our assortment product provides robust , extensible management of this information , enabling accurate orders and rapid fulfillment . trading partner sourcing . through retail universe , our social network for the retail industry , retailers can source providers of new items , suppliers can connect with new retailers and the broader retailing community can make connections to expand their business networks and grow . trading partner community development . our community development solution provides communication programs based on our best practices . these programs enable organizations , from large and small retailers and suppliers to emerging providers of value-added products and services , to establish trading partner relationships with new trading partners to expand their businesses . 32 other trading partner solutions . we provide a number of peripheral solutions such as barcode labeling , planogram services and our scan and pack application , which helps trading partners process information to streamline the picking and packaging process . cost of revenues and operating expenses cost of revenues . cost of revenues consist primarily of personnel costs for our customer success and implementation teams , customer support personnel and application support personnel . cost of revenues also includes our cost of network services , which is primarily data center costs for the locations where we keep the equipment that serves our customers and connectivity costs that facilitate electronic data transmission between our customers and their trading partners . sales and marketing expenses . sales and marketing expenses consist primarily of personnel costs for our sales , marketing and product management teams , commissions earned by our sales personnel and marketing costs . in order to expand our business , we will continue to add resources to our sales and marketing efforts over time . research and development expenses . research and development expenses consist primarily of personnel costs for development of new and maintenance of existing solutions , net of amounts capitalized as developed software . our research and development group is also responsible for enhancing existing solutions and applications as well as internal tools and developing new information maps that integrate our customers to their trading partners in compliance with those trading partners ' requirements . general and administrative expenses . general and administrative expenses consist primarily of personnel costs for finance , human resources and internal information technology support , as well as legal , accounting and other fees , such as credit card processing fees . overhead allocation . we allocate overhead expenses such as rent , certain employee benefit costs , office supplies and depreciation of general office assets to cost of revenues and operating expenses categories based on headcount . other metrics recurring revenue customers . as of december 31 , 2017 , we had approximately 26,000 customers with contracts to pay us monthly fees , which we refer to as recurring revenue customers . we report recurring revenue customers at the end of a period . a small portion of our recurring revenue customers consist of separate units within a larger organization . we treat each of these units , which may include divisions , departments , affiliates and franchises , as distinct customers . average recurring revenues per recurring revenue customer . we calculate average recurring revenues per recurring revenue customer , which we also refer to as wallet share , by dividing the recurring revenues from recurring revenue customers for the period by the average of the beginning and ending number of recurring revenue customers for the period . for interim periods , we annualize this number by multiplying the quotient calculated above by the quotient of 12 divided by the number of months in the period . we anticipate that average recurring revenues per recurring revenue customer will continue to increase as we increase the number of solutions we offer and increase the penetration of those solutions across our customer base . non-gaap financial measures . to supplement our financial statements , we also provide investors with adjusted ebitda and non-gaap income per share , both of which are non-gaap financial measures . we believe that these non-gaap measures provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations . our management uses these non-gaap measures to compare the company 's performance to that of prior periods for trend analyses and planning purposes . adjusted ebitda is also used for purposes of determining executive and senior management incentive compensation . these measures are also presented to our board of directors . these non-gaap measures should not be considered a substitute for , or superior to , financial measures calculated in accordance with gaap . these non-gaap financial measures exclude significant expenses and income that are required by gaap to be recorded in the company 's financial statements and are subject to inherent limitations . story_separator_special_tag as a percentage of revenues , research and development expenses were 11.4 % for 2016 and 11.3 % for 2015 . general and administrative expenses . general and administrative expenses for 2016 increased $ 4.0 million , or 16.2 % , to $ 28.8 million from $ 24.8 million for 2015. this increase was primarily due to increased headcount in 2016 which resulted in higher personnel-related costs of $ 1.4 million and stock-based compensation expense of $ 0.9 million . we also incurred higher expenses for software subscription and maintenance of $ 1.0 million . we also had increases in our provision for doubtful accounts , credit card fees and legal fees offset by lower charitable contributions in 2016 as compared to 2015. as a percentage of revenues , general and administrative expenses were 14.9 % for 2016 and 15.7 % for 2015. amortization of intangible assets . amortization of intangible assets for 2016 increased $ 1.4 million from 2015. this increase was due to the impact of amortization from the intangible assets acquired in the toolbox solutions acquisition in january 2016. other income ( expense ) , net . other income ( expense ) , net for 2016 included a $ 1.0 million adjustment to the fair value of the toolbox solutions share-based earn-out liability due to a change in our estimate of probability of attainment . income tax expense . our provisions for income taxes for 2016 and 2015 were $ 3.1 million and $ 2.4 million , respectively , and included current federal , state and foreign income taxes as well as deferred federal and state income taxes . the increase in income tax expense in 2016 was primarily due to the increase in pretax book income of $ 1.8 million . see note j to our consolidated financial statements , included in this annual report on form 10-k , for additional information regarding our income taxes . adjusted ebitda . adjusted ebitda , which is a non-gaap measure of financial performance , consists of net income plus depreciation and amortization , interest expense , interest income , income tax expense , stock-based compensation expense and other adjustments as necessary for a fair presentation . other adjustments included the impact of an earn-out adjustment related to the toolbox acquisition in 2016 , as well as the impact of use tax refunds in 2015 related to items previously expensed . the following table provides a reconciliation of net income to adjusted ebitda ( in thousands ) : replace_table_token_14_th non-gaap income per share . non-gaap income per share , which is also a non-gaap measure of financial performance , consists of net income plus stock-based compensation expense and amortization expense related to intangible assets divided by the weighted average number of shares of common stock outstanding during each period . pursuant to a compliance and disclosure interpretation published by the sec in may 2016 , related to the use of non-gaap financial measures , in 2017 , we began including an adjustment to non-gaap income to reflect the income tax effects of the adjustments to gaap net income . to quantify the tax effects , we recalculated income tax expense excluding the direct book and tax effects of the specific items constituting the non-gaap adjustments . the difference between this recalculated income tax expense and gaap income tax expense is presented as the income tax effect of the non-gaap adjustments . 39 the following table provides a reconciliation of net income to non-gaap income per share ( in thousands , except per share amounts ) : replace_table_token_15_th liquidity and capital resources at december 31 , 2017 , our principal sources of liquidity were cash and cash equivalents , certificates of deposit and marketable securities totaling $ 168.5 million and accounts receivable , net of allowance for doubtful accounts of $ 24.9 million compared to cash and cash equivalents and marketable securities totaling $ 146.4 million and accounts receivable , net of allowance for doubtful accounts of $ 20.7 million at december 31 , 2016. certificates of deposit and marketable securities are invested in accordance with our investment policy , with a goal of maintaining liquidity and capital preservation . our cash equivalents and marketable securities are held in highly liquid money market funds , commercial paper , federal agency securities and corporate debt securities . story_separator_special_tag style= `` margin-top:6pt ; margin-bottom:0pt ; text-indent:5.24 % ; font-size:10pt ; font-family : times new roman ; font-weight : normal ; font-style : normal ; text-transform : none ; font-variant : normal ; `` > on december 22 , 2017 , the securities and exchange commission ( “ sec ” ) staff issued staff accounting bulletin no . 118 ( “ sab 118 ” ) to address the application of u.s. gaap related to the enactment of the tax act . this guidance was adopted in the fourth quarter of 2017. recent accounting pronouncements in may 2014 , the fasb issued asu no . 2014-09 , revenue from contracts with customers ( topic 606 ) , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services . this guidance will replace most existing revenue recognition guidance in gaap when it becomes effective . these new requirements are effective for annual reporting periods beginning after december 15 , 2017 , and interim periods within those annual periods . the new revenue recognition standard will not materially impact our recognition of the primary fees received from customers for our cloud-based supply chain solutions . the adoption of the new standard will impact our accounting for certain upfront set-up fees and the periods over which the related revenues are recognized , as well as the timing of cost recognition for some sales commissions . when compared to

net cash flows from operating activities net cash provided by operating activities was $ 31.1 million for 2017 compared to $ 18.8 million for 2016. the increase in operating cash flows as compared to 2016 was driven by a $ 19.1 million increase in non-cash expenses and a $ 1.3 million increase in changes in assets and liabilities , primarily due to increases in deferred revenues and other current and non-current assets and accounts payable , partially offset by decreases in net income of $ 8.2 million , accounts receivable , deferred costs and deferred rent as compared to 2016. net cash provided by operating activities was $ 18.8 million for 2016 compared to $ 14.4 million for 2015. the increase in operating cash flows as compared to 2015 was driven by a $ 1.1 million increase in net income , a $ 0.8 million increase in non-cash expenses and a $ 2.5 million increase , primarily due to increases in deferred revenues , accrued expenses and accounts payable , partially offset by increases in deferred costs and deferred rent as compared to 2015. cash flows from investing activities net cash used in investing activities was $ 22.6 million for 2017 compared to $ 34.1 million for 2016. the decrease in cash used in investing activities as compared to 2016 was primarily due to the prior year acquisition of toolbox solutions for $ 18.0 million and $ 18.0 million of increased maturities of investments , partially offset by $ 24.7 million increased purchases of investments . for the years ended december 31 , 2017 and 2016 , we had capital expenditures of $ 7.3 million and $ 8.0 million , respectively . our capital expenditures are for supporting our business growth and existing customer base , as well as for our internal use such as equipment for our employees . 40 net cash used in investing ac tivities was $ 34.1 million for 2016 compared to $ 31.3 million for 2 015 .

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 from operating activities net cash provided by operating activities was $ 31.1 million for 2017 compared to $ 18.8 million for 2016. the increase in operating cash flows as compared to 2016 was driven by a $ 19.1 million increase in non-cash expenses and a $ 1.3 million increase in changes in assets and liabilities , primarily due to increases in deferred revenues and other current and non-current assets and accounts payable , partially offset by decreases in net income of $ 8.2 million , accounts receivable , deferred costs and deferred rent as compared to 2016. net cash provided by operating activities was $ 18.8 million for 2016 compared to $ 14.4 million for 2015. the increase in operating cash flows as compared to 2015 was driven by a $ 1.1 million increase in net income , a $ 0.8 million increase in non-cash expenses and a $ 2.5 million increase , primarily due to increases in deferred revenues , accrued expenses and accounts payable , partially offset by increases in deferred costs and deferred rent as compared to 2015. cash flows from investing activities net cash used in investing activities was $ 22.6 million for 2017 compared to $ 34.1 million for 2016. the decrease in cash used in investing activities as compared to 2016 was primarily due to the prior year acquisition of toolbox solutions for $ 18.0 million and $ 18.0 million of increased maturities of investments , partially offset by $ 24.7 million increased purchases of investments . for the years ended december 31 , 2017 and 2016 , we had capital expenditures of $ 7.3 million and $ 8.0 million , respectively . our capital expenditures are for supporting our business growth and existing customer base , as well as for our internal use such as equipment for our employees . 40 net cash used in investing ac tivities was $ 34.1 million for 2016 compared to $ 31.3 million for 2 015 . ``` Suspicious Activity Report : our fulfillment solution provides fulfillment automation and replaces or augments an organization 's existing trading partner electronic communication infrastructure , enabling suppliers to have visibility into the journey of an order and comply with retailers ' rule books and enabling the electronic exchange of information among numerous trading partners through various protocols . trading partner analytics . our analytics solution consists of data analytics applications that enable our customers to improve their visibility across , and analysis of , their supply chains . when focused on point-of-sale data , for example , retailers and suppliers can ensure inventory is located where demand is highest . retailers improve their visibility into supplier performance and their understanding of product sell-through . trading partner assortment . today 's retail marketplace requires the management of tens and even hundreds of individual attributes associated with each item a retailer or supplier sells today . this information can include digital images/video , customer facing descriptions and measurements and warehouse information . our assortment product provides robust , extensible management of this information , enabling accurate orders and rapid fulfillment . trading partner sourcing . through retail universe , our social network for the retail industry , retailers can source providers of new items , suppliers can connect with new retailers and the broader retailing community can make connections to expand their business networks and grow . trading partner community development . our community development solution provides communication programs based on our best practices . these programs enable organizations , from large and small retailers and suppliers to emerging providers of value-added products and services , to establish trading partner relationships with new trading partners to expand their businesses . 32 other trading partner solutions . we provide a number of peripheral solutions such as barcode labeling , planogram services and our scan and pack application , which helps trading partners process information to streamline the picking and packaging process . cost of revenues and operating expenses cost of revenues . cost of revenues consist primarily of personnel costs for our customer success and implementation teams , customer support personnel and application support personnel . cost of revenues also includes our cost of network services , which is primarily data center costs for the locations where we keep the equipment that serves our customers and connectivity costs that facilitate electronic data transmission between our customers and their trading partners . sales and marketing expenses . sales and marketing expenses consist primarily of personnel costs for our sales , marketing and product management teams , commissions earned by our sales personnel and marketing costs . in order to expand our business , we will continue to add resources to our sales and marketing efforts over time . research and development expenses . research and development expenses consist primarily of personnel costs for development of new and maintenance of existing solutions , net of amounts capitalized as developed software . our research and development group is also responsible for enhancing existing solutions and applications as well as internal tools and developing new information maps that integrate our customers to their trading partners in compliance with those trading partners ' requirements . general and administrative expenses . general and administrative expenses consist primarily of personnel costs for finance , human resources and internal information technology support , as well as legal , accounting and other fees , such as credit card processing fees . overhead allocation . we allocate overhead expenses such as rent , certain employee benefit costs , office supplies and depreciation of general office assets to cost of revenues and operating expenses categories based on headcount . other metrics recurring revenue customers . as of december 31 , 2017 , we had approximately 26,000 customers with contracts to pay us monthly fees , which we refer to as recurring revenue customers . we report recurring revenue customers at the end of a period . a small portion of our recurring revenue customers consist of separate units within a larger organization . we treat each of these units , which may include divisions , departments , affiliates and franchises , as distinct customers . average recurring revenues per recurring revenue customer . we calculate average recurring revenues per recurring revenue customer , which we also refer to as wallet share , by dividing the recurring revenues from recurring revenue customers for the period by the average of the beginning and ending number of recurring revenue customers for the period . for interim periods , we annualize this number by multiplying the quotient calculated above by the quotient of 12 divided by the number of months in the period . we anticipate that average recurring revenues per recurring revenue customer will continue to increase as we increase the number of solutions we offer and increase the penetration of those solutions across our customer base . non-gaap financial measures . to supplement our financial statements , we also provide investors with adjusted ebitda and non-gaap income per share , both of which are non-gaap financial measures . we believe that these non-gaap measures provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations . our management uses these non-gaap measures to compare the company 's performance to that of prior periods for trend analyses and planning purposes . adjusted ebitda is also used for purposes of determining executive and senior management incentive compensation . these measures are also presented to our board of directors . these non-gaap measures should not be considered a substitute for , or superior to , financial measures calculated in accordance with gaap . these non-gaap financial measures exclude significant expenses and income that are required by gaap to be recorded in the company 's financial statements and are subject to inherent limitations . story_separator_special_tag as a percentage of revenues , research and development expenses were 11.4 % for 2016 and 11.3 % for 2015 . general and administrative expenses . general and administrative expenses for 2016 increased $ 4.0 million , or 16.2 % , to $ 28.8 million from $ 24.8 million for 2015. this increase was primarily due to increased headcount in 2016 which resulted in higher personnel-related costs of $ 1.4 million and stock-based compensation expense of $ 0.9 million . we also incurred higher expenses for software subscription and maintenance of $ 1.0 million . we also had increases in our provision for doubtful accounts , credit card fees and legal fees offset by lower charitable contributions in 2016 as compared to 2015. as a percentage of revenues , general and administrative expenses were 14.9 % for 2016 and 15.7 % for 2015. amortization of intangible assets . amortization of intangible assets for 2016 increased $ 1.4 million from 2015. this increase was due to the impact of amortization from the intangible assets acquired in the toolbox solutions acquisition in january 2016. other income ( expense ) , net . other income ( expense ) , net for 2016 included a $ 1.0 million adjustment to the fair value of the toolbox solutions share-based earn-out liability due to a change in our estimate of probability of attainment . income tax expense . our provisions for income taxes for 2016 and 2015 were $ 3.1 million and $ 2.4 million , respectively , and included current federal , state and foreign income taxes as well as deferred federal and state income taxes . the increase in income tax expense in 2016 was primarily due to the increase in pretax book income of $ 1.8 million . see note j to our consolidated financial statements , included in this annual report on form 10-k , for additional information regarding our income taxes . adjusted ebitda . adjusted ebitda , which is a non-gaap measure of financial performance , consists of net income plus depreciation and amortization , interest expense , interest income , income tax expense , stock-based compensation expense and other adjustments as necessary for a fair presentation . other adjustments included the impact of an earn-out adjustment related to the toolbox acquisition in 2016 , as well as the impact of use tax refunds in 2015 related to items previously expensed . the following table provides a reconciliation of net income to adjusted ebitda ( in thousands ) : replace_table_token_14_th non-gaap income per share . non-gaap income per share , which is also a non-gaap measure of financial performance , consists of net income plus stock-based compensation expense and amortization expense related to intangible assets divided by the weighted average number of shares of common stock outstanding during each period . pursuant to a compliance and disclosure interpretation published by the sec in may 2016 , related to the use of non-gaap financial measures , in 2017 , we began including an adjustment to non-gaap income to reflect the income tax effects of the adjustments to gaap net income . to quantify the tax effects , we recalculated income tax expense excluding the direct book and tax effects of the specific items constituting the non-gaap adjustments . the difference between this recalculated income tax expense and gaap income tax expense is presented as the income tax effect of the non-gaap adjustments . 39 the following table provides a reconciliation of net income to non-gaap income per share ( in thousands , except per share amounts ) : replace_table_token_15_th liquidity and capital resources at december 31 , 2017 , our principal sources of liquidity were cash and cash equivalents , certificates of deposit and marketable securities totaling $ 168.5 million and accounts receivable , net of allowance for doubtful accounts of $ 24.9 million compared to cash and cash equivalents and marketable securities totaling $ 146.4 million and accounts receivable , net of allowance for doubtful accounts of $ 20.7 million at december 31 , 2016. certificates of deposit and marketable securities are invested in accordance with our investment policy , with a goal of maintaining liquidity and capital preservation . our cash equivalents and marketable securities are held in highly liquid money market funds , commercial paper , federal agency securities and corporate debt securities . story_separator_special_tag style= `` margin-top:6pt ; margin-bottom:0pt ; text-indent:5.24 % ; font-size:10pt ; font-family : times new roman ; font-weight : normal ; font-style : normal ; text-transform : none ; font-variant : normal ; `` > on december 22 , 2017 , the securities and exchange commission ( “ sec ” ) staff issued staff accounting bulletin no . 118 ( “ sab 118 ” ) to address the application of u.s. gaap related to the enactment of the tax act . this guidance was adopted in the fourth quarter of 2017. recent accounting pronouncements in may 2014 , the fasb issued asu no . 2014-09 , revenue from contracts with customers ( topic 606 ) , which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services . this guidance will replace most existing revenue recognition guidance in gaap when it becomes effective . these new requirements are effective for annual reporting periods beginning after december 15 , 2017 , and interim periods within those annual periods . the new revenue recognition standard will not materially impact our recognition of the primary fees received from customers for our cloud-based supply chain solutions . the adoption of the new standard will impact our accounting for certain upfront set-up fees and the periods over which the related revenues are recognized , as well as the timing of cost recognition for some sales commissions . when compared to

we will continue to face the ongoing challenges specific to our business such as food safety and regulatory issues and the maintenance and growth of our customer base . see the information referenced in part i , item 1a — “risk factors” of this report for additional information about our risks , challenges and uncertainties . 22 annual highlights our net sales for fiscal 2018 increased by $ 42.0 million , or 5.0 % , to $ 888.6 million compared to fiscal 2017. gross profit decreased by $ 3.1 million , and our gross profit margin , as a percentage of net sales , decreased to 15.6 % in fiscal 2018 from 16.8 % in fiscal 2017. total operating expenses for fiscal 2018 increased by $ 1.3 million ; and our operating expenses , as a percentage of net sales , were 9.3 % compared to 9.6 % of net sales in fiscal 2017. diluted earnings per share decreased approximately 10.7 % compared to last fiscal year . our strong financial position allowed us to pay a cash dividend of $ 28.4 million . the total value of inventories on hand at the end of fiscal 2018 decreased by $ 7.8 million , or 4.3 % , in comparison to the total value of inventories on hand at the end of fiscal 2017. we have seen acquisition costs for walnuts , peanuts and cashews increase in the 2017 crop year ( which falls into our 2018 fiscal year ) . while we completed our procurement of the current year crop of inshell walnuts during the second quarter of fiscal 2018 , the total payments to our walnut growers were not determined until the third quarter of fiscal 2018 , which is typical . the final prices paid to the walnut growers were based upon prevailing market prices and other factors , such as crop size and export demand . at june 28 , 2018 approximately $ 0.3 million was due to walnut growers . results of operations the following table sets forth the percentage relationship of certain items to net sales for the periods indicated and the percentage increase or decrease of such items from fiscal 2018 to fiscal 2017 and from fiscal 2017 to fiscal 2016. replace_table_token_3_th fiscal 2018 compared to fiscal 2017 net sales our net sales increased 5.0 % to $ 888.6 million for fiscal 2018 from $ 846.6 million for fiscal 2017. sales volume ( measured as pounds sold to customers ) increased by 3.4 % for fiscal 2018 in comparison to sales volume for fiscal 2017. the increase in net sales was also driven by a 1.5 % increase in the weighted average sales price per pound , which primarily occurred as a result of increased selling prices for walnuts and cashews . the following summarizes sales by product type as a percentage of total gross sales . the information is based upon gross sales , rather than net sales , because certain adjustments from gross sales to net sales , such as promotional discounts , are not allocable to product type . replace_table_token_4_th 23 the following table shows a comparison of net sales by distribution channel ( dollars in thousands ) : replace_table_token_5_th ( 1 ) sales of branded products were approximately 38 % of total consumer channel sales during fiscal 2018 and 2017. fisher branded products were approximately 75 % and 85 % of branded sales during fiscal 2018 and 2017 respectively , with branded produce products accounting for most of the remaining branded product sales . net sales in the consumer distribution channel increased by 11.2 % in dollars and 11.1 % in sales volume in fiscal 2018 compared to fiscal 2017. the sales volume increase was driven by increased sales of private brand products and orchard valley harvest produce products . a 63.7 % increase in sales volume of orchard valley harvest produce products was driven by new item introductions and distribution gains at new and existing customers . sales volume for private label snack and trail mixes increased 11.3 % due to new item introductions and increased distribution with existing customers . accounting for approximately 16.6 % of the annual sales volume increase was the additional sales volume from the squirrel brand acquisition which occurred late in our fiscal 2018 second quarter . squirrel brand sales volume for seven months of the current fiscal year was included in the consumer and commercial ingredients distribution channels , while squirrel brand sales volume for the previous year was included in the contract packaging distribution channel because squirrel brand was a contract packaging customer during fiscal 2017. sales volume for fisher products was relatively unchanged in the annual comparison . iri market data from june 2018 indicates that fisher recipe nuts continue to be the branded market share leader in the overall recipe nut category . net sales in the commercial ingredients distribution channel decreased by 6.4 % in dollars and 5.5 % in sales volume compared to fiscal 2017. the sales volume decrease was primarily due to the loss of a bulk almond butter customer which occurred in the second quarter of fiscal 2017. net sales in the contract packaging distribution channel decreased by 4.6 % in dollars and 9.0 % in sales volume in fiscal 2018 compared to fiscal 2017. the sales volume decrease was primarily due to our acquisition of the squirrel brand business in november 2017 as described above , coupled with the loss of some bulk business with an existing contract packaging customer . story_separator_special_tag the selling price was determined by an independent appraiser to be the fair market value which also approximated our carrying value . the lease for the selma properties has a ten-year term at a fair market value rent with three five-year renewal options . also , we currently have an option to purchase the selma properties from the partnerships at 95 % ( 100 % in certain circumstances ) of the then fair market value , but not less than the original $ 14.3 million purchase price . the provisions of the arrangement are not eligible for sale-leaseback accounting and the $ 14.3 million was recorded as a debt obligation . no gain or loss was recorded on the selma properties transaction . as of june 28 , 2018 , $ 10.6 million of the debt obligation was outstanding . in september 2015 , we exercised two five-year renewal options which extended the selma lease to september 18 , 2026 ( unless we purchase it before such date ) and reduced the base monthly lease amount we pay on the selma properties during the second quarter of fiscal 2017. squirrel brand seller-financed note in november 2017 we completed the squirrel brand acquisition . the acquisition was financed by a combination of cash ( drawn under the credit facility ) and a three-year seller-financed note for $ 11.5 million ( “promissory note” ) . the principal owner and seller of the squirrel brand business was subsequently appointed as an executive officer of the company and is considered a related party . the promissory note is unsecured , bears interest at 5.5 % per annum and is payable in equal monthly principal payments of $ 0.3 million , plus interest , beginning in january 2018. upon an event of default , as defined in the promissory note , the interest rate increases to 7.5 % until such event of default is cured . we can pre-pay the promissory note at any time during the three-year period without penalty . at june 28 , 2018 , the principal amount of $ 9.3 million of the promissory note was outstanding . 30 off-balance sheet arrangements as of june 28 , 2018 , we were not involved in any off-balance sheet arrangements , as defined in item 303 ( a ) ( 4 ) ( ii ) of regulation s-k promulgated by the sec . contractual cash obligations at june 28 , 2018 , we had the following contractual cash obligations for long-term debt ( including scheduled interest payments ) , operating leases , the credit facility , purchase obligations , retirement plans and other long-term liabilities ( amounts in this subsection in thousands ) : replace_table_token_9_th ( 1 ) see note 6 - “long-term debt” of the notes to consolidated financial statements for further detail on the company 's long-term debt obligations . ( 2 ) the purchase obligations primarily represent of inventory purchase commitments and a commitment to purchase capital equipment ; however , these amounts exclude purchase commitments under walnut purchase agreements due to the uncertainty of pricing and quantity . ( 3 ) represents projected retirement obligations . see note 12 - “employee benefit plans” and note 13 - “retirement plan” of the notes to consolidated financial statements for further details . 31 critical accounting policies and estimates our financial statements are prepared in accordance with accounting principles generally accepted in the united states of america . the accounting policies as disclosed in the notes to consolidated financial statements are applied in the preparation of our financial statements and accounting for the underlying transactions and balances . the policies discussed below are considered by our management to be critical for an understanding of our financial statements because the application of these policies places the most significant demands on management 's judgment , with financial reporting results relying on estimation regarding the effect of matters that are inherently uncertain . specific risks , if applicable , for these critical accounting policies are described in the following paragraphs . for a detailed discussion on the application of these and other accounting policies , see note 1—“significant accounting policies” of the notes to consolidated financial statements . preparation of this annual report on form 10-k requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities , disclosures of contingent assets and liabilities at the date of our financial statements , and the reported amounts of revenue and expenses during the reporting period . actual results may differ from those estimates . see “forward-looking statements” below . revenue recognition we recognize revenue when persuasive evidence of an arrangement exists , title has transferred ( based upon terms of shipment ) , price is fixed , delivery occurs and collection is reasonably assured . we sell our products under some arrangements , which include customer contracts that fix the sales price for periods , which typically can be up to one year for some commercial ingredient customers , and through specific programs consisting of promotion allowances , volume and customer rebates and marketing allowances , among others , to consumer and some commercial ingredient users . reserves for these programs are established based upon the terms of specific arrangements . revenues are recorded net of rebates and promotion and marketing allowances . revenues are also recorded net of expected customer deductions which are provided for based upon past experiences . while customers do have the right to return products , past experience has demonstrated that product returns have generally been insignificant . provisions for returns are reflected as a reduction in net sales and are estimated based upon customer specific circumstances . evaluating these estimates requires our management 's judgment , and changes in our assumptions could impact the amount recorded for our sales , cost of sales and net income . inventories inventories , which consist principally of inshell bulk-stored nuts , shelled nuts , dried fruit and processed

liquidity and capital resources general the primary uses of cash are to fund our current operations , fulfill contractual obligations , pursue our strategic plan and repay indebtedness . also , various uncertainties could result in additional uses of cash . the primary sources of cash are results of operations and availability under our credit agreement , dated february 7 , 2008 and subsequently amended most recently in november 2017 ( as amended , the “credit facility” ) , that provides a revolving loan commitment and letter of credit subfacility . we anticipate that expected net cash flow generated from operations and amounts available pursuant to the credit facility will be sufficient to fund our operations for the next twelve months . our available credit under our credit facility has allowed us to consummate business acquisitions , devote more funds to promote our branded products ( especially our fisher and orchard valley harvest brands ) , reinvest in the company through capital expenditures , develop new products , pay special cash dividends , and explore other growth strategies outlined in our strategic plan . cash flows from operating activities have historically been driven by net income but are also significantly influenced by inventory requirements , which can change based upon fluctuations in both quantities and market prices of the various nuts and nut products we buy and sell . current market trends in nut prices and crop estimates also impact nut procurement . the following table sets forth certain cash flow information for the last three fiscal years ( dollars in thousands ) : replace_table_token_8_th operating activities . net cash provided by operating activities was $ 66.2 million in fiscal 2018 , an increase of $ 13.5 million compared to fiscal 2017. this increase in operating cash flow was due primarily to lower levels of inventory in fiscal 2018 compared to fiscal 2017. inventories decreased $ 7.8 million in fiscal 2018 compared to a $ 25.8 million increase in inventories in fiscal 2017 which resulted in a net favorable change in cash of $ 35.6 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 the primary uses of cash are to fund our current operations , fulfill contractual obligations , pursue our strategic plan and repay indebtedness . also , various uncertainties could result in additional uses of cash . the primary sources of cash are results of operations and availability under our credit agreement , dated february 7 , 2008 and subsequently amended most recently in november 2017 ( as amended , the “credit facility” ) , that provides a revolving loan commitment and letter of credit subfacility . we anticipate that expected net cash flow generated from operations and amounts available pursuant to the credit facility will be sufficient to fund our operations for the next twelve months . our available credit under our credit facility has allowed us to consummate business acquisitions , devote more funds to promote our branded products ( especially our fisher and orchard valley harvest brands ) , reinvest in the company through capital expenditures , develop new products , pay special cash dividends , and explore other growth strategies outlined in our strategic plan . cash flows from operating activities have historically been driven by net income but are also significantly influenced by inventory requirements , which can change based upon fluctuations in both quantities and market prices of the various nuts and nut products we buy and sell . current market trends in nut prices and crop estimates also impact nut procurement . the following table sets forth certain cash flow information for the last three fiscal years ( dollars in thousands ) : replace_table_token_8_th operating activities . net cash provided by operating activities was $ 66.2 million in fiscal 2018 , an increase of $ 13.5 million compared to fiscal 2017. this increase in operating cash flow was due primarily to lower levels of inventory in fiscal 2018 compared to fiscal 2017. inventories decreased $ 7.8 million in fiscal 2018 compared to a $ 25.8 million increase in inventories in fiscal 2017 which resulted in a net favorable change in cash of $ 35.6 million . ``` Suspicious Activity Report : we will continue to face the ongoing challenges specific to our business such as food safety and regulatory issues and the maintenance and growth of our customer base . see the information referenced in part i , item 1a — “risk factors” of this report for additional information about our risks , challenges and uncertainties . 22 annual highlights our net sales for fiscal 2018 increased by $ 42.0 million , or 5.0 % , to $ 888.6 million compared to fiscal 2017. gross profit decreased by $ 3.1 million , and our gross profit margin , as a percentage of net sales , decreased to 15.6 % in fiscal 2018 from 16.8 % in fiscal 2017. total operating expenses for fiscal 2018 increased by $ 1.3 million ; and our operating expenses , as a percentage of net sales , were 9.3 % compared to 9.6 % of net sales in fiscal 2017. diluted earnings per share decreased approximately 10.7 % compared to last fiscal year . our strong financial position allowed us to pay a cash dividend of $ 28.4 million . the total value of inventories on hand at the end of fiscal 2018 decreased by $ 7.8 million , or 4.3 % , in comparison to the total value of inventories on hand at the end of fiscal 2017. we have seen acquisition costs for walnuts , peanuts and cashews increase in the 2017 crop year ( which falls into our 2018 fiscal year ) . while we completed our procurement of the current year crop of inshell walnuts during the second quarter of fiscal 2018 , the total payments to our walnut growers were not determined until the third quarter of fiscal 2018 , which is typical . the final prices paid to the walnut growers were based upon prevailing market prices and other factors , such as crop size and export demand . at june 28 , 2018 approximately $ 0.3 million was due to walnut growers . results of operations the following table sets forth the percentage relationship of certain items to net sales for the periods indicated and the percentage increase or decrease of such items from fiscal 2018 to fiscal 2017 and from fiscal 2017 to fiscal 2016. replace_table_token_3_th fiscal 2018 compared to fiscal 2017 net sales our net sales increased 5.0 % to $ 888.6 million for fiscal 2018 from $ 846.6 million for fiscal 2017. sales volume ( measured as pounds sold to customers ) increased by 3.4 % for fiscal 2018 in comparison to sales volume for fiscal 2017. the increase in net sales was also driven by a 1.5 % increase in the weighted average sales price per pound , which primarily occurred as a result of increased selling prices for walnuts and cashews . the following summarizes sales by product type as a percentage of total gross sales . the information is based upon gross sales , rather than net sales , because certain adjustments from gross sales to net sales , such as promotional discounts , are not allocable to product type . replace_table_token_4_th 23 the following table shows a comparison of net sales by distribution channel ( dollars in thousands ) : replace_table_token_5_th ( 1 ) sales of branded products were approximately 38 % of total consumer channel sales during fiscal 2018 and 2017. fisher branded products were approximately 75 % and 85 % of branded sales during fiscal 2018 and 2017 respectively , with branded produce products accounting for most of the remaining branded product sales . net sales in the consumer distribution channel increased by 11.2 % in dollars and 11.1 % in sales volume in fiscal 2018 compared to fiscal 2017. the sales volume increase was driven by increased sales of private brand products and orchard valley harvest produce products . a 63.7 % increase in sales volume of orchard valley harvest produce products was driven by new item introductions and distribution gains at new and existing customers . sales volume for private label snack and trail mixes increased 11.3 % due to new item introductions and increased distribution with existing customers . accounting for approximately 16.6 % of the annual sales volume increase was the additional sales volume from the squirrel brand acquisition which occurred late in our fiscal 2018 second quarter . squirrel brand sales volume for seven months of the current fiscal year was included in the consumer and commercial ingredients distribution channels , while squirrel brand sales volume for the previous year was included in the contract packaging distribution channel because squirrel brand was a contract packaging customer during fiscal 2017. sales volume for fisher products was relatively unchanged in the annual comparison . iri market data from june 2018 indicates that fisher recipe nuts continue to be the branded market share leader in the overall recipe nut category . net sales in the commercial ingredients distribution channel decreased by 6.4 % in dollars and 5.5 % in sales volume compared to fiscal 2017. the sales volume decrease was primarily due to the loss of a bulk almond butter customer which occurred in the second quarter of fiscal 2017. net sales in the contract packaging distribution channel decreased by 4.6 % in dollars and 9.0 % in sales volume in fiscal 2018 compared to fiscal 2017. the sales volume decrease was primarily due to our acquisition of the squirrel brand business in november 2017 as described above , coupled with the loss of some bulk business with an existing contract packaging customer . story_separator_special_tag the selling price was determined by an independent appraiser to be the fair market value which also approximated our carrying value . the lease for the selma properties has a ten-year term at a fair market value rent with three five-year renewal options . also , we currently have an option to purchase the selma properties from the partnerships at 95 % ( 100 % in certain circumstances ) of the then fair market value , but not less than the original $ 14.3 million purchase price . the provisions of the arrangement are not eligible for sale-leaseback accounting and the $ 14.3 million was recorded as a debt obligation . no gain or loss was recorded on the selma properties transaction . as of june 28 , 2018 , $ 10.6 million of the debt obligation was outstanding . in september 2015 , we exercised two five-year renewal options which extended the selma lease to september 18 , 2026 ( unless we purchase it before such date ) and reduced the base monthly lease amount we pay on the selma properties during the second quarter of fiscal 2017. squirrel brand seller-financed note in november 2017 we completed the squirrel brand acquisition . the acquisition was financed by a combination of cash ( drawn under the credit facility ) and a three-year seller-financed note for $ 11.5 million ( “promissory note” ) . the principal owner and seller of the squirrel brand business was subsequently appointed as an executive officer of the company and is considered a related party . the promissory note is unsecured , bears interest at 5.5 % per annum and is payable in equal monthly principal payments of $ 0.3 million , plus interest , beginning in january 2018. upon an event of default , as defined in the promissory note , the interest rate increases to 7.5 % until such event of default is cured . we can pre-pay the promissory note at any time during the three-year period without penalty . at june 28 , 2018 , the principal amount of $ 9.3 million of the promissory note was outstanding . 30 off-balance sheet arrangements as of june 28 , 2018 , we were not involved in any off-balance sheet arrangements , as defined in item 303 ( a ) ( 4 ) ( ii ) of regulation s-k promulgated by the sec . contractual cash obligations at june 28 , 2018 , we had the following contractual cash obligations for long-term debt ( including scheduled interest payments ) , operating leases , the credit facility , purchase obligations , retirement plans and other long-term liabilities ( amounts in this subsection in thousands ) : replace_table_token_9_th ( 1 ) see note 6 - “long-term debt” of the notes to consolidated financial statements for further detail on the company 's long-term debt obligations . ( 2 ) the purchase obligations primarily represent of inventory purchase commitments and a commitment to purchase capital equipment ; however , these amounts exclude purchase commitments under walnut purchase agreements due to the uncertainty of pricing and quantity . ( 3 ) represents projected retirement obligations . see note 12 - “employee benefit plans” and note 13 - “retirement plan” of the notes to consolidated financial statements for further details . 31 critical accounting policies and estimates our financial statements are prepared in accordance with accounting principles generally accepted in the united states of america . the accounting policies as disclosed in the notes to consolidated financial statements are applied in the preparation of our financial statements and accounting for the underlying transactions and balances . the policies discussed below are considered by our management to be critical for an understanding of our financial statements because the application of these policies places the most significant demands on management 's judgment , with financial reporting results relying on estimation regarding the effect of matters that are inherently uncertain . specific risks , if applicable , for these critical accounting policies are described in the following paragraphs . for a detailed discussion on the application of these and other accounting policies , see note 1—“significant accounting policies” of the notes to consolidated financial statements . preparation of this annual report on form 10-k requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities , disclosures of contingent assets and liabilities at the date of our financial statements , and the reported amounts of revenue and expenses during the reporting period . actual results may differ from those estimates . see “forward-looking statements” below . revenue recognition we recognize revenue when persuasive evidence of an arrangement exists , title has transferred ( based upon terms of shipment ) , price is fixed , delivery occurs and collection is reasonably assured . we sell our products under some arrangements , which include customer contracts that fix the sales price for periods , which typically can be up to one year for some commercial ingredient customers , and through specific programs consisting of promotion allowances , volume and customer rebates and marketing allowances , among others , to consumer and some commercial ingredient users . reserves for these programs are established based upon the terms of specific arrangements . revenues are recorded net of rebates and promotion and marketing allowances . revenues are also recorded net of expected customer deductions which are provided for based upon past experiences . while customers do have the right to return products , past experience has demonstrated that product returns have generally been insignificant . provisions for returns are reflected as a reduction in net sales and are estimated based upon customer specific circumstances . evaluating these estimates requires our management 's judgment , and changes in our assumptions could impact the amount recorded for our sales , cost of sales and net income . inventories inventories , which consist principally of inshell bulk-stored nuts , shelled nuts , dried fruit and processed

securities and exchange commission regulations require inclusion of predecessor financial information for the periods prior to mhi hospitality corporation 's commencement of operations . the following table reflects key line items from our consolidated and combined statements of operations for the years ended december 31 , 2005 , 2004 and 2003. replace_table_token_9_th comparison of year ended december 31 , 2005 to year ended december 31 , 2004 revenue . total revenue for the year ended december 31 , 2005 was approximately $ 57.9 million , an increase of approximately $ 31.3 million or 118.1 % from combined total revenue for the year ended december 31 , 2004 of 36 approximately $ 26.5 million for the company and the predecessor . the increase was primarily due to approximately $ 28.9 million of incremental revenues attributable to the acquisition of three hotel properties in december 2004 pursuant to the completion of the initial public offering and one hotel property in the third quarter of 2005. revenues increased due to increases in both room revenue and food and beverage revenues . room revenues at our properties for the year ended december 31 , 2005 increased approximately $ 3.4 million or 8.7 % to approximately $ 38.0 million compared to combined room revenues in 2004. most properties experienced adr growth between 3 % and 7 % . a new mix of business , a strong market , and the completion of room renovations caused a significant increase in adr at our philadelphia property . our efforts to re-position our property in laurel , maryland coupled with the completion of renovations also contributed to the significant increases in adr at that property . food and beverage revenues at our properties for the year ended december 31 , 2005 increased approximately $ 2.3 million or 13.4 % to approximately $ 17.2 million compared to combined food and beverage revenues in 2004. we experienced the largest increase at our laurel property , which was not included in the predecessor group or under the management of mhi hotels services prior to our initial public offering . this increase was due to a greater focus on banqueting and group sales . hotel operating expenses . hotel operating expenses , which consist of room expenses , food and beverage expenses , other direct expenses , indirect expenses , and management fees , increased approximately $ 23.9 million or 112.8 % for the year ended december 31 , 2005 to approximately $ 45.2 million compared to combined hotel operating expenses in 2004 , primarily due to approximately $ 22.2 million of incremental expense attributable to the acquisition of three hotel properties in december 2004 pursuant to the completion of the initial public offering and one hotel property in the third quarter of 2005. rooms expense at our properties for the year ended december 31 , 2005 increased approximately $ 1.0 million or 9.4 % to approximately $ 10.6 million compared to combined rooms expense in 2004. a decrease in costs related to the 2.24 % drop in occupancy was offset by an increase in costs that vary directly to revenue . additional cleaning costs were also incurred related to the renovations at our williamsburg , laurel and philadelphia properties . food and beverage expenses at our properties for the year ended december 31 , 2005 increased approximately $ 0.6 million or 4.8 % to approximately $ 12.1 million compared to 2004 due mostly to the increase in food and beverage sales . indirect expenses at our properties for the year ended december 31 , 2005 increased approximately $ 0.8 million or 3.7 % to approximately $ 21.7 million compared to 2004. indirect expenses increased as a result of increased energy costs at all the properties and increased repairs and maintenance related to the renovations at our williamsburg , laurel and philadelphia properties . the increases were partially offset by a reduction in management fees negotiated with mhi hotels services as part of the master management agreement executed pursuant to the initial public offering . depreciation and amortization . depreciation and amortization for the year ended december 31 , 2005 increased approximately $ 2.4 million or 128.3 % to approximately $ 4.3 million compared to combined depreciation and amortization expense in 2004. the increase in depreciation and amortization was attributable to the acquisition of three hotel properties and the leasehold interest in the commercial spaces at the shell island resort in december 2004 and one hotel property in the third quarter of 2005. apart from the acquisitions related to the initial public offering and in the third quarter of fiscal 2005 , depreciation and amortization would have remained at approximately $ 1.9 million . corporate general and administrative . corporate general and administrative expenses for the year ended december 31 , 2005 decreased approximately $ 1.7 million or 45.5 % compared to combined corporate general and administrative expense in 2004. prior to the commencement of operations on december 21 , 2004 , there were no 37 corporate expenses . upon formation of the company , start-up costs were recognized as well as costs associated with the amendment and restructuring of the management agreements . in addition , the company recognized expense in 2004 for non-recurring ancillary legal and accounting costs not directly related to the offering . operating income . operating income for the year ended december 31 , 2005 increased approximately $ 6.7 million compared to combined operating income in 2004 as a result of the operating results discussed above . interest expense . interest expense for the year ended december 31 , 2005 increased approximately $ 0.5 million or 22.6 % to approximately $ 2.8 million compared to combined interest expense in 2004 , primarily due to the payoff of the mortgage on the holiday inn—downtown williamsburg upon formation of the company , partially offset by interest attributable to the mortgage on the hilton jacksonville riverfront acquired in july 2005. income tax benefit . story_separator_special_tag 123 ( r ) . we do not expect that the adoption of the statement will have a material impact on our consolidated results or financial condition . in may 2005 , fasb issued sfas 154 , “accounting changes and error corrections—a replacement of apb opinion no . 20 and fasb statement no . 3” . sfas 154 changes the requirements for the accounting for and reporting of a change in accounting principle , and applies to all voluntary changes in accounting principle . it also applies to changes required by an accounting pronouncement in the unusual instance that the pronouncement does not include specific transition provisions . this statement requires retrospective application to prior periods ' financial statements of changes in accounting principle , unless it is impracticable to determine either the period-specific effects or the cumulative effect of the change . sfas 154 is effective for accounting changes made in fiscal years beginning after december 15 , 2005. we do not expect that adoption of this statement will have a material impact on our results of operations or financial condition . in february 2005 , the fasb issued emerging issues task force ( “eitf” ) issue no . 03-13 , “applying the conditions of paragraph 42 of fasb statement no . 144 in determining whether to report discontinued operations ( “eitf 03-13” ) . eitf 03-13 gives guidance on how to evaluate whether the operations and cash 44 flows of a disposed component have been or will be eliminated from ongoing operations and the types of continuing involvement that constitute significant continuing involvement in the operations of the disposed component . the adoption of eitf 03-13 did not have a material impact on the company 's results of operations , financial position or cash flows . fasb interpretation no . 45 ( “fin 45” ) , guarantor 's accounting and disclosure requirements for guarantees , including indirect guarantees of indebtedness of others , requires that a liability be recorded in the guarantor 's balance sheet upon issuance of a guarantee . in addition , fin 45 requires disclosures about the guarantees that an entity has issued , including a reconciliation of changes in the entity 's product warranty liabilities . the adoption of fin 45 did not have a material impact on the company 's results of operations , financial position or cash flows . fasb interpretation no . 46 , consolidation of variable interests entities , an interpretation of accounting research bulletin no . 51 , as amended ( “fin 46r” ) , requires certain variable interests entities to be consolidated by the primary beneficiary of the entity if the equity investors in the entity do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties . the adoption of fin 46r did not have a material impact on the company 's results of operations , financial position or cash flows . statement of financial accounting standards no . 150 ( “sfas 150” ) , accounting for certain financial instruments with characteristics of both liabilities and equity , clarifies the accounting for certain financial instruments with characteristics of both liabilities and equity and requires that those instruments be classified as liabilities in statements of financial position . previously many of these financial instruments were classified as equity . sfas 150 is effective for all financial instruments entered into or modified after may 31 , 2003 and is otherwise effective at the beginning of the first interim period after june 15 , 2003. however , in october 2003 , the fasb elected to indefinitely defer implementation of certain provisions of sfas 150 relating to limited-life subsidiaries created before november 5 , 2003. the adoption of sfas 150 did not have a material impact on the company 's results of operations , financial position , or cash flows . in july 2004 , the emerging issues task force ( “eitf” ) published its consensus on issue no . 03-1 , “the meaning of other-than-temporary impairment and its application to certain investments.” eitf issue no . 03-1 addresses the meaning of other than temporary impairment and its application to debt and equity securities within the scope of sfas no . 115 , certain debt and equity securities within the scope of sfas no . 124 , and equity securities that are not subject to the scope of sfas no . 115 and accounted for under the equity method . in september 2004 , the fasb issued fasb staff position ( “fsp” ) eitf issue no . 03-1-1 , which delays the effect date for the recognition and measurement guidance in eitf issue no . 03-1. in addition , the fasb has issued a proposed fsp to consider whether further application guidance is necessary for securities analyzed for impairment under eitf issue no . 03-1. the company continues to assess the potential impact that the adoption of the proposed fsp could have on our financial statements . in march 2004 , the emerging issues task force ( “eitf” ) reached a consensus on eitf issue no . 03-6 “participating securities and the two-class method under fasb statement 128 , ” ( the “consensus” or “eitf 03-6” ) . for purposes of calculating earnings per share , the consensus requires net income to be reduced by the amount of dividends declared in the current period for each class of stock and by the contractual amount of dividends or other participation payments that are paid or accumulated for the current period . under this consensus , undistributed earnings for the period are allocated to participating securities based on the contractual participation rights of the security to share in those current earnings assuming all earnings for the period are distributed . we have no preferred stock issued and therefore this consensus has no effect on our financial statements . if and when

liquidity and capital resources as of december 31 , 2005 , we had cash and cash equivalents of approximately $ 4.8 million , of which $ 4.3 million was in restricted reserve accounts and real estate tax escrows . coincident with the purchase of the hilton jacksonville riverfront hotel , we placed $ 3.0 million into a capital improvement reserve with mercantile safe deposit and trust company , the mortgagor 's trustee . we anticipate the renovations for the jacksonville hotel to be completed in the first three quarters of fiscal 2006. we expect that the reserve will be sufficient to fund the planned renovations . the company maintains a $ 23.0 million line of credit with bb & t bank , of which $ 3.5 million has been drawn and remains outstanding on december 31 , 2005. the line will be used to fund future acquisitions of new hotel companies and to provide working capital as necessary . we are currently in discussions to increase the availability under the line of credit . operating requirements . the company finances its operations from operating cash flow , which is principally derived from the operations of its hotels . cash flow provided by operating activities for the year ended december 31 , 2005 was approximately $ 6.4 million . we expect that the net cash provided by operations will be adequate to fund the company 's operating requirements , debt service and the payment of dividends in accordance with federal income tax laws which require us make annual distributions to our stockholders of at least 90 % of our reit taxable income , excluding net capital gain . we declared dividends of $ 0.17 per share ( unit ) paid on april 11 , 2005 , july 11 , 2005 and october 11 , 2005 , which we funded out of working capital .

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 , 2005 , we had cash and cash equivalents of approximately $ 4.8 million , of which $ 4.3 million was in restricted reserve accounts and real estate tax escrows . coincident with the purchase of the hilton jacksonville riverfront hotel , we placed $ 3.0 million into a capital improvement reserve with mercantile safe deposit and trust company , the mortgagor 's trustee . we anticipate the renovations for the jacksonville hotel to be completed in the first three quarters of fiscal 2006. we expect that the reserve will be sufficient to fund the planned renovations . the company maintains a $ 23.0 million line of credit with bb & t bank , of which $ 3.5 million has been drawn and remains outstanding on december 31 , 2005. the line will be used to fund future acquisitions of new hotel companies and to provide working capital as necessary . we are currently in discussions to increase the availability under the line of credit . operating requirements . the company finances its operations from operating cash flow , which is principally derived from the operations of its hotels . cash flow provided by operating activities for the year ended december 31 , 2005 was approximately $ 6.4 million . we expect that the net cash provided by operations will be adequate to fund the company 's operating requirements , debt service and the payment of dividends in accordance with federal income tax laws which require us make annual distributions to our stockholders of at least 90 % of our reit taxable income , excluding net capital gain . we declared dividends of $ 0.17 per share ( unit ) paid on april 11 , 2005 , july 11 , 2005 and october 11 , 2005 , which we funded out of working capital . ``` Suspicious Activity Report : securities and exchange commission regulations require inclusion of predecessor financial information for the periods prior to mhi hospitality corporation 's commencement of operations . the following table reflects key line items from our consolidated and combined statements of operations for the years ended december 31 , 2005 , 2004 and 2003. replace_table_token_9_th comparison of year ended december 31 , 2005 to year ended december 31 , 2004 revenue . total revenue for the year ended december 31 , 2005 was approximately $ 57.9 million , an increase of approximately $ 31.3 million or 118.1 % from combined total revenue for the year ended december 31 , 2004 of 36 approximately $ 26.5 million for the company and the predecessor . the increase was primarily due to approximately $ 28.9 million of incremental revenues attributable to the acquisition of three hotel properties in december 2004 pursuant to the completion of the initial public offering and one hotel property in the third quarter of 2005. revenues increased due to increases in both room revenue and food and beverage revenues . room revenues at our properties for the year ended december 31 , 2005 increased approximately $ 3.4 million or 8.7 % to approximately $ 38.0 million compared to combined room revenues in 2004. most properties experienced adr growth between 3 % and 7 % . a new mix of business , a strong market , and the completion of room renovations caused a significant increase in adr at our philadelphia property . our efforts to re-position our property in laurel , maryland coupled with the completion of renovations also contributed to the significant increases in adr at that property . food and beverage revenues at our properties for the year ended december 31 , 2005 increased approximately $ 2.3 million or 13.4 % to approximately $ 17.2 million compared to combined food and beverage revenues in 2004. we experienced the largest increase at our laurel property , which was not included in the predecessor group or under the management of mhi hotels services prior to our initial public offering . this increase was due to a greater focus on banqueting and group sales . hotel operating expenses . hotel operating expenses , which consist of room expenses , food and beverage expenses , other direct expenses , indirect expenses , and management fees , increased approximately $ 23.9 million or 112.8 % for the year ended december 31 , 2005 to approximately $ 45.2 million compared to combined hotel operating expenses in 2004 , primarily due to approximately $ 22.2 million of incremental expense attributable to the acquisition of three hotel properties in december 2004 pursuant to the completion of the initial public offering and one hotel property in the third quarter of 2005. rooms expense at our properties for the year ended december 31 , 2005 increased approximately $ 1.0 million or 9.4 % to approximately $ 10.6 million compared to combined rooms expense in 2004. a decrease in costs related to the 2.24 % drop in occupancy was offset by an increase in costs that vary directly to revenue . additional cleaning costs were also incurred related to the renovations at our williamsburg , laurel and philadelphia properties . food and beverage expenses at our properties for the year ended december 31 , 2005 increased approximately $ 0.6 million or 4.8 % to approximately $ 12.1 million compared to 2004 due mostly to the increase in food and beverage sales . indirect expenses at our properties for the year ended december 31 , 2005 increased approximately $ 0.8 million or 3.7 % to approximately $ 21.7 million compared to 2004. indirect expenses increased as a result of increased energy costs at all the properties and increased repairs and maintenance related to the renovations at our williamsburg , laurel and philadelphia properties . the increases were partially offset by a reduction in management fees negotiated with mhi hotels services as part of the master management agreement executed pursuant to the initial public offering . depreciation and amortization . depreciation and amortization for the year ended december 31 , 2005 increased approximately $ 2.4 million or 128.3 % to approximately $ 4.3 million compared to combined depreciation and amortization expense in 2004. the increase in depreciation and amortization was attributable to the acquisition of three hotel properties and the leasehold interest in the commercial spaces at the shell island resort in december 2004 and one hotel property in the third quarter of 2005. apart from the acquisitions related to the initial public offering and in the third quarter of fiscal 2005 , depreciation and amortization would have remained at approximately $ 1.9 million . corporate general and administrative . corporate general and administrative expenses for the year ended december 31 , 2005 decreased approximately $ 1.7 million or 45.5 % compared to combined corporate general and administrative expense in 2004. prior to the commencement of operations on december 21 , 2004 , there were no 37 corporate expenses . upon formation of the company , start-up costs were recognized as well as costs associated with the amendment and restructuring of the management agreements . in addition , the company recognized expense in 2004 for non-recurring ancillary legal and accounting costs not directly related to the offering . operating income . operating income for the year ended december 31 , 2005 increased approximately $ 6.7 million compared to combined operating income in 2004 as a result of the operating results discussed above . interest expense . interest expense for the year ended december 31 , 2005 increased approximately $ 0.5 million or 22.6 % to approximately $ 2.8 million compared to combined interest expense in 2004 , primarily due to the payoff of the mortgage on the holiday inn—downtown williamsburg upon formation of the company , partially offset by interest attributable to the mortgage on the hilton jacksonville riverfront acquired in july 2005. income tax benefit . story_separator_special_tag 123 ( r ) . we do not expect that the adoption of the statement will have a material impact on our consolidated results or financial condition . in may 2005 , fasb issued sfas 154 , “accounting changes and error corrections—a replacement of apb opinion no . 20 and fasb statement no . 3” . sfas 154 changes the requirements for the accounting for and reporting of a change in accounting principle , and applies to all voluntary changes in accounting principle . it also applies to changes required by an accounting pronouncement in the unusual instance that the pronouncement does not include specific transition provisions . this statement requires retrospective application to prior periods ' financial statements of changes in accounting principle , unless it is impracticable to determine either the period-specific effects or the cumulative effect of the change . sfas 154 is effective for accounting changes made in fiscal years beginning after december 15 , 2005. we do not expect that adoption of this statement will have a material impact on our results of operations or financial condition . in february 2005 , the fasb issued emerging issues task force ( “eitf” ) issue no . 03-13 , “applying the conditions of paragraph 42 of fasb statement no . 144 in determining whether to report discontinued operations ( “eitf 03-13” ) . eitf 03-13 gives guidance on how to evaluate whether the operations and cash 44 flows of a disposed component have been or will be eliminated from ongoing operations and the types of continuing involvement that constitute significant continuing involvement in the operations of the disposed component . the adoption of eitf 03-13 did not have a material impact on the company 's results of operations , financial position or cash flows . fasb interpretation no . 45 ( “fin 45” ) , guarantor 's accounting and disclosure requirements for guarantees , including indirect guarantees of indebtedness of others , requires that a liability be recorded in the guarantor 's balance sheet upon issuance of a guarantee . in addition , fin 45 requires disclosures about the guarantees that an entity has issued , including a reconciliation of changes in the entity 's product warranty liabilities . the adoption of fin 45 did not have a material impact on the company 's results of operations , financial position or cash flows . fasb interpretation no . 46 , consolidation of variable interests entities , an interpretation of accounting research bulletin no . 51 , as amended ( “fin 46r” ) , requires certain variable interests entities to be consolidated by the primary beneficiary of the entity if the equity investors in the entity do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties . the adoption of fin 46r did not have a material impact on the company 's results of operations , financial position or cash flows . statement of financial accounting standards no . 150 ( “sfas 150” ) , accounting for certain financial instruments with characteristics of both liabilities and equity , clarifies the accounting for certain financial instruments with characteristics of both liabilities and equity and requires that those instruments be classified as liabilities in statements of financial position . previously many of these financial instruments were classified as equity . sfas 150 is effective for all financial instruments entered into or modified after may 31 , 2003 and is otherwise effective at the beginning of the first interim period after june 15 , 2003. however , in october 2003 , the fasb elected to indefinitely defer implementation of certain provisions of sfas 150 relating to limited-life subsidiaries created before november 5 , 2003. the adoption of sfas 150 did not have a material impact on the company 's results of operations , financial position , or cash flows . in july 2004 , the emerging issues task force ( “eitf” ) published its consensus on issue no . 03-1 , “the meaning of other-than-temporary impairment and its application to certain investments.” eitf issue no . 03-1 addresses the meaning of other than temporary impairment and its application to debt and equity securities within the scope of sfas no . 115 , certain debt and equity securities within the scope of sfas no . 124 , and equity securities that are not subject to the scope of sfas no . 115 and accounted for under the equity method . in september 2004 , the fasb issued fasb staff position ( “fsp” ) eitf issue no . 03-1-1 , which delays the effect date for the recognition and measurement guidance in eitf issue no . 03-1. in addition , the fasb has issued a proposed fsp to consider whether further application guidance is necessary for securities analyzed for impairment under eitf issue no . 03-1. the company continues to assess the potential impact that the adoption of the proposed fsp could have on our financial statements . in march 2004 , the emerging issues task force ( “eitf” ) reached a consensus on eitf issue no . 03-6 “participating securities and the two-class method under fasb statement 128 , ” ( the “consensus” or “eitf 03-6” ) . for purposes of calculating earnings per share , the consensus requires net income to be reduced by the amount of dividends declared in the current period for each class of stock and by the contractual amount of dividends or other participation payments that are paid or accumulated for the current period . under this consensus , undistributed earnings for the period are allocated to participating securities based on the contractual participation rights of the security to share in those current earnings assuming all earnings for the period are distributed . we have no preferred stock issued and therefore this consensus has no effect on our financial statements . if and when

was primarily comprised of an increase of $ 42.3 million in net loans receivable held for investment offset by decreases of $ 6.2 million in loans receivable held for sale , $ 3.7 million in securities available for sale , $ 1.1 million in interest-bearing cash in other banks and $ 833 thousand in reo . the bank had no reo as of december 31 , 2019. total liabilities increased by $ 30.5 million to $ 391.5 million at december 31 , 2019 from $ 361.0 million at december 31 , 2018. the increase in total liabilities during 2019 resulted primarily from increases of $ 16.3 million in total deposits and $ 14.0 million in fhlb advances we recorded a net loss of $ 206 thousand for the year ended december 31 , 2019 compared to net earnings of $ 815 thousand for the year ended december 31 , 2018. the decrease in earnings was primarily attributable to an increase of $ 1.2 million in interest expense on deposits and a decline of $ 1.2 million in the loan loss provision recapture during 2019 compared to 2018. also , non-interest expense increased by $ 515 thousand during 2019 compared to 2018 , primarily due to higher professional services fees of $ 491 thousand and higher compensation costs of $ 302 thousand , offset by a decrease of $ 288 thousand in other expenses , primarily due to lower reo costs of $ 166 thousand and lower marketing costs of $ 88 thousand . these items were partially offset by higher net interest income of $ 153 thousand and an increase in gain on sale of loans of $ 134 thousand during 2019 compared to 2018. comparison of operating results for the years ended december 31 , 2019 and 2018 general our most significant source of income is net interest income , which is the difference between our interest income and our interest expense . generally , interest income is generated from our loans and investments ( interest earning assets ) and interest expense is incurred from deposits and borrowings ( interest bearing liabilities ) . typically , our results of operations are also affected by our provision for or loan loss provision recapture , non-interest income generated from service charges and fees on loan and deposit accounts , gains or losses on the sale of loans and reo , non-interest expenses , and income taxes . net interest income for the year ended december 31 , 2019 , net interest income increased by $ 153 thousand to $ 10.5 million , from $ 10.3 million for the same period in 2018. interest and fees on loans receivable increased by $ 1.6 million for the year ended december 31 , 2019 compared to the same period a year ago . the increase was primarily due to an increase of 32 basis points in the average yield on loans receivable , which increased loan interest income by $ 677 thousand , an increase of $ 542 thousand in interest 31 recoveries on non-accrual loans , and an increase of $ 8.8 million in the average balance of loans receivable , which increased interest income by $ 347 thousand . interest income on securities decreased by $ 54 thousand for the year ended december 31 , 2019 compared to the prior year due to a decrease of $ 2.5 million in the average balance of securities , which decreased interest income by $ 66 thousand , offset by an increase of 7 basis points in the average yield on securities , which increased interest income by $ 12 thousand . other interest income increased by $ 98 thousand for the year ended december 31 , 2019 compared to the prior year . the increase in other interest income primarily resulted from a net increase in the average balance of interest earning cash deposits in other banks of $ 4.0 million , which increased interest income by $ 84 thousand , and an increase of 36 basis points in the average interest rate on deposits , which increased interest income by $ 61 thousand . these increases were partially offset by a decrease of $ 47 thousand in dividends on fhlb stock because the bank received a special dividend during the fourth quarter of 2018 which it did not receive during 2019. interest expense on deposits increased by $ 1.2 million for the year ended december 31 , 2019 compared to the prior year , primarily due to an increase of 39 basis points in the average cost of deposits , which increased interest expense by $ 1.0 million , and an increase of $ 6.6 million in the average balance of deposits , which increased interest expense by $ 174 thousand . interest expense on borrowings increased by $ 270 thousand for the year ended december 31 , 2019 compared to the prior year , primarily due to an increase of $ 272 thousand in interest expense on fhlb advances . the interest expense on fhlb advances increased due to an increase of 29 basis points in the average cost of fhlb borrowings , which increased interest expense by $ 221 thousand and an increase of $ 2.3 million in the average balance of fhlb advances , which increased interest expense by $ 51 thousand . the increase in interest expense on fhlb advances was offset by a decrease of $ 2 thousand in interest expense on the company 's junior subordinated debentures due to a decrease of $ 209 thousand in the average balance of the debentures , which decreased interest expense by $ 10 thousand , offset by an increase of 17 basis points in the average interest rate on the debentures ,which increased interest expense by $ 8 thousand . story_separator_special_tag these agencies may require an increase in the alll based on their judgments of the information available to them at the time of their examinations . total liabilities total liabilities increased by $ 30.5 million to $ 391.5 million at december 31 , 2019 from $ 361.0 million at december 31 , 2018. the increase in total liabilities was primarily comprised of increases of $ 16.3 million in deposits and $ 14.0 million in fhlb advances . 37 deposits deposits increased by $ 16.3 million to $ 297.7 million at december 31 , 2019 from $ 281.4 million at december 31 , 2018 , which consisted of an increase of $ 17.7 million in cds and a decrease of $ 1.4 million in liquid deposits . one customer relationship accounted for approximately 10 % of our deposits at december 31 , 2019. we expect to maintain this relationship with the customer for the foreseeable future . borrowings total borrowings at december 31 , 2019 consisted of advances to the bank from the fhlb of $ 84.0 million , and junior subordinated debentures issued by the company of $ 4.3 million , compared to advances from the fhlb of $ 70.0 million and junior subordinated debentures of $ 5.1 million at december 31 , 2018. during 2019 , the bank paid off $ 8.0 million in maturing fhlb advances , borrowed $ 22.5 million in new advances from the fhlb and repaid $ 765 thousand of its junior subordinated debentures . the weighted average cost of fhlb advances increased by 29 basis points to 2.42 % at december 31 , 2019 from 2.13 % at december 31 , 2018 primarily due to higher interest rates . stockholders ' equity stockholders ' equity was $ 48.8 million , or 11.09 % of the company 's total assets at december 31 , 2019 , compared to $ 48.4 million , or 11.83 % of the company 's total assets at december 31 , 2018. the company 's book value was $ 1.75 per share as of december 31 , 2019 , compared to $ 1.77 per share as of december 31 , 2018. story_separator_special_tag result , interest rates have a greater impact on our performance than do the effects of general levels of inflation . interest rates do not necessarily move in the same direction or to the same extent as the price of goods and services . critical accounting policies critical accounting policies are those that involve significant judgments and assessments by management , and which could potentially result in materially different results under different assumptions and conditions . this discussion highlights those accounting policies that management considers critical . all accounting policies are important , however , and therefore you are encouraged to review each of the policies included in note 1 `` summary of significant accounting principles `` of the notes to consolidated financial statements beginning at page f-8 to gain a better understanding of how our financial performance is measured and reported . management has identified the company 's critical accounting policies as follows : allowance for loan losses the determination of the allowance for loan losses is considered critical due to the high degree of judgment involved , the subjectivity of the underlying assumptions used , and the potential for changes in the economic environment that could result in material changes in the amount of the allowance for loan losses considered necessary . the allowance is evaluated on a regular basis by management and the board of directors and is based on a periodic review of the collectability of the loans in light of historical experience , the nature and size of the loan portfolio , adverse situations that may affect borrowers ' ability to repay , the estimated value of any underlying collateral , prevailing economic conditions and feedback from regulatory examinations . see item 1 , `` business – asset quality – allowance for loan losses `` for a full discussion of the allowance for loan losses . 40 real estate owned ( `` reo `` ) reo consists of property acquired through foreclosure or deed in lieu of foreclosure and is recorded at the fair value , less estimated costs to sell , at the time of acquisition . the excess , if any , of the loan balance over the fair value of the property at the time of transfer from loans to reo is charged to the allowance for loan losses . after the transfer to reo , if the fair value of the property less estimated selling costs declines to an amount less than the carrying value of the property , the deficiency is charged to income as a provision expense and a valuation allowance is established . operating costs after acquisition are expensed as incurred . due to changing market conditions , there are inherent uncertainties in the assumptions made with respect to the estimated fair value of reo . therefore , the amount ultimately realized may differ from the amounts reflected in the accompanying consolidated financial statements . income taxes deferred tax assets and liabilities are determined using the liability ( or balance sheet ) method . under this method , the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws . a valuation allowance is established against deferred tax assets when , based upon the available evidence including historical and projected taxable income , it is more likely than not that some or all the deferred tax asset will not be realized . in assessing the realization of deferred tax assets , management evaluates both positive and negative evidence , including the existence of any cumulative losses in the current year and the prior two years , the amount of taxes paid in available carry-back years

capital resources our principal subsidiary , broadway federal , must comply with capital standards established by the occ in the conduct of its business . failure to comply with such capital requirements may result in significant limitations on its business or other sanctions . as a `` small bank holding company '' , we are not subject to consolidated capital requirements under the new basel iii capital rules . the current regulatory capital requirements and possible consequences of failure to maintain compliance are described in part i , item 1 `` business-regulation '' and in note 13 of the notes to consolidated financial statements . liquidity the objective of liquidity management is to ensure that we have the continuing ability to fund operations and meet our obligations on a timely and cost-effective basis . the bank 's sources of funds include deposits , advances from the fhlb , other borrowings , proceeds from the sale of loans , reo , and investment securities , and payments of principal and interest on loans and investment securities . the bank is currently approved by the fhlb to borrow up to 40 % of total assets to the extent the bank provides qualifying collateral and holds sufficient fhlb stock . the approved limit and collateral requirement would have permitted the bank to borrow an additional $ 39.7 million at december 31 , 2019. the bank 's primary uses of funds include withdrawals of and interest payments on deposits , originations of loans , purchases of investment securities , and the payment of operating expenses . also , when the bank has more funds than required for reserve requirements or short-term liquidity needs , the bank invests excess cash with the federal reserve bank or 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 our principal subsidiary , broadway federal , must comply with capital standards established by the occ in the conduct of its business . failure to comply with such capital requirements may result in significant limitations on its business or other sanctions . as a `` small bank holding company '' , we are not subject to consolidated capital requirements under the new basel iii capital rules . the current regulatory capital requirements and possible consequences of failure to maintain compliance are described in part i , item 1 `` business-regulation '' and in note 13 of the notes to consolidated financial statements . liquidity the objective of liquidity management is to ensure that we have the continuing ability to fund operations and meet our obligations on a timely and cost-effective basis . the bank 's sources of funds include deposits , advances from the fhlb , other borrowings , proceeds from the sale of loans , reo , and investment securities , and payments of principal and interest on loans and investment securities . the bank is currently approved by the fhlb to borrow up to 40 % of total assets to the extent the bank provides qualifying collateral and holds sufficient fhlb stock . the approved limit and collateral requirement would have permitted the bank to borrow an additional $ 39.7 million at december 31 , 2019. the bank 's primary uses of funds include withdrawals of and interest payments on deposits , originations of loans , purchases of investment securities , and the payment of operating expenses . also , when the bank has more funds than required for reserve requirements or short-term liquidity needs , the bank invests excess cash with the federal reserve bank or other financial institutions . ``` Suspicious Activity Report : was primarily comprised of an increase of $ 42.3 million in net loans receivable held for investment offset by decreases of $ 6.2 million in loans receivable held for sale , $ 3.7 million in securities available for sale , $ 1.1 million in interest-bearing cash in other banks and $ 833 thousand in reo . the bank had no reo as of december 31 , 2019. total liabilities increased by $ 30.5 million to $ 391.5 million at december 31 , 2019 from $ 361.0 million at december 31 , 2018. the increase in total liabilities during 2019 resulted primarily from increases of $ 16.3 million in total deposits and $ 14.0 million in fhlb advances we recorded a net loss of $ 206 thousand for the year ended december 31 , 2019 compared to net earnings of $ 815 thousand for the year ended december 31 , 2018. the decrease in earnings was primarily attributable to an increase of $ 1.2 million in interest expense on deposits and a decline of $ 1.2 million in the loan loss provision recapture during 2019 compared to 2018. also , non-interest expense increased by $ 515 thousand during 2019 compared to 2018 , primarily due to higher professional services fees of $ 491 thousand and higher compensation costs of $ 302 thousand , offset by a decrease of $ 288 thousand in other expenses , primarily due to lower reo costs of $ 166 thousand and lower marketing costs of $ 88 thousand . these items were partially offset by higher net interest income of $ 153 thousand and an increase in gain on sale of loans of $ 134 thousand during 2019 compared to 2018. comparison of operating results for the years ended december 31 , 2019 and 2018 general our most significant source of income is net interest income , which is the difference between our interest income and our interest expense . generally , interest income is generated from our loans and investments ( interest earning assets ) and interest expense is incurred from deposits and borrowings ( interest bearing liabilities ) . typically , our results of operations are also affected by our provision for or loan loss provision recapture , non-interest income generated from service charges and fees on loan and deposit accounts , gains or losses on the sale of loans and reo , non-interest expenses , and income taxes . net interest income for the year ended december 31 , 2019 , net interest income increased by $ 153 thousand to $ 10.5 million , from $ 10.3 million for the same period in 2018. interest and fees on loans receivable increased by $ 1.6 million for the year ended december 31 , 2019 compared to the same period a year ago . the increase was primarily due to an increase of 32 basis points in the average yield on loans receivable , which increased loan interest income by $ 677 thousand , an increase of $ 542 thousand in interest 31 recoveries on non-accrual loans , and an increase of $ 8.8 million in the average balance of loans receivable , which increased interest income by $ 347 thousand . interest income on securities decreased by $ 54 thousand for the year ended december 31 , 2019 compared to the prior year due to a decrease of $ 2.5 million in the average balance of securities , which decreased interest income by $ 66 thousand , offset by an increase of 7 basis points in the average yield on securities , which increased interest income by $ 12 thousand . other interest income increased by $ 98 thousand for the year ended december 31 , 2019 compared to the prior year . the increase in other interest income primarily resulted from a net increase in the average balance of interest earning cash deposits in other banks of $ 4.0 million , which increased interest income by $ 84 thousand , and an increase of 36 basis points in the average interest rate on deposits , which increased interest income by $ 61 thousand . these increases were partially offset by a decrease of $ 47 thousand in dividends on fhlb stock because the bank received a special dividend during the fourth quarter of 2018 which it did not receive during 2019. interest expense on deposits increased by $ 1.2 million for the year ended december 31 , 2019 compared to the prior year , primarily due to an increase of 39 basis points in the average cost of deposits , which increased interest expense by $ 1.0 million , and an increase of $ 6.6 million in the average balance of deposits , which increased interest expense by $ 174 thousand . interest expense on borrowings increased by $ 270 thousand for the year ended december 31 , 2019 compared to the prior year , primarily due to an increase of $ 272 thousand in interest expense on fhlb advances . the interest expense on fhlb advances increased due to an increase of 29 basis points in the average cost of fhlb borrowings , which increased interest expense by $ 221 thousand and an increase of $ 2.3 million in the average balance of fhlb advances , which increased interest expense by $ 51 thousand . the increase in interest expense on fhlb advances was offset by a decrease of $ 2 thousand in interest expense on the company 's junior subordinated debentures due to a decrease of $ 209 thousand in the average balance of the debentures , which decreased interest expense by $ 10 thousand , offset by an increase of 17 basis points in the average interest rate on the debentures ,which increased interest expense by $ 8 thousand . story_separator_special_tag these agencies may require an increase in the alll based on their judgments of the information available to them at the time of their examinations . total liabilities total liabilities increased by $ 30.5 million to $ 391.5 million at december 31 , 2019 from $ 361.0 million at december 31 , 2018. the increase in total liabilities was primarily comprised of increases of $ 16.3 million in deposits and $ 14.0 million in fhlb advances . 37 deposits deposits increased by $ 16.3 million to $ 297.7 million at december 31 , 2019 from $ 281.4 million at december 31 , 2018 , which consisted of an increase of $ 17.7 million in cds and a decrease of $ 1.4 million in liquid deposits . one customer relationship accounted for approximately 10 % of our deposits at december 31 , 2019. we expect to maintain this relationship with the customer for the foreseeable future . borrowings total borrowings at december 31 , 2019 consisted of advances to the bank from the fhlb of $ 84.0 million , and junior subordinated debentures issued by the company of $ 4.3 million , compared to advances from the fhlb of $ 70.0 million and junior subordinated debentures of $ 5.1 million at december 31 , 2018. during 2019 , the bank paid off $ 8.0 million in maturing fhlb advances , borrowed $ 22.5 million in new advances from the fhlb and repaid $ 765 thousand of its junior subordinated debentures . the weighted average cost of fhlb advances increased by 29 basis points to 2.42 % at december 31 , 2019 from 2.13 % at december 31 , 2018 primarily due to higher interest rates . stockholders ' equity stockholders ' equity was $ 48.8 million , or 11.09 % of the company 's total assets at december 31 , 2019 , compared to $ 48.4 million , or 11.83 % of the company 's total assets at december 31 , 2018. the company 's book value was $ 1.75 per share as of december 31 , 2019 , compared to $ 1.77 per share as of december 31 , 2018. story_separator_special_tag result , interest rates have a greater impact on our performance than do the effects of general levels of inflation . interest rates do not necessarily move in the same direction or to the same extent as the price of goods and services . critical accounting policies critical accounting policies are those that involve significant judgments and assessments by management , and which could potentially result in materially different results under different assumptions and conditions . this discussion highlights those accounting policies that management considers critical . all accounting policies are important , however , and therefore you are encouraged to review each of the policies included in note 1 `` summary of significant accounting principles `` of the notes to consolidated financial statements beginning at page f-8 to gain a better understanding of how our financial performance is measured and reported . management has identified the company 's critical accounting policies as follows : allowance for loan losses the determination of the allowance for loan losses is considered critical due to the high degree of judgment involved , the subjectivity of the underlying assumptions used , and the potential for changes in the economic environment that could result in material changes in the amount of the allowance for loan losses considered necessary . the allowance is evaluated on a regular basis by management and the board of directors and is based on a periodic review of the collectability of the loans in light of historical experience , the nature and size of the loan portfolio , adverse situations that may affect borrowers ' ability to repay , the estimated value of any underlying collateral , prevailing economic conditions and feedback from regulatory examinations . see item 1 , `` business – asset quality – allowance for loan losses `` for a full discussion of the allowance for loan losses . 40 real estate owned ( `` reo `` ) reo consists of property acquired through foreclosure or deed in lieu of foreclosure and is recorded at the fair value , less estimated costs to sell , at the time of acquisition . the excess , if any , of the loan balance over the fair value of the property at the time of transfer from loans to reo is charged to the allowance for loan losses . after the transfer to reo , if the fair value of the property less estimated selling costs declines to an amount less than the carrying value of the property , the deficiency is charged to income as a provision expense and a valuation allowance is established . operating costs after acquisition are expensed as incurred . due to changing market conditions , there are inherent uncertainties in the assumptions made with respect to the estimated fair value of reo . therefore , the amount ultimately realized may differ from the amounts reflected in the accompanying consolidated financial statements . income taxes deferred tax assets and liabilities are determined using the liability ( or balance sheet ) method . under this method , the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws . a valuation allowance is established against deferred tax assets when , based upon the available evidence including historical and projected taxable income , it is more likely than not that some or all the deferred tax asset will not be realized . in assessing the realization of deferred tax assets , management evaluates both positive and negative evidence , including the existence of any cumulative losses in the current year and the prior two years , the amount of taxes paid in available carry-back years

for a discussion on the application of these and other accounting policies , see note 1 to the consolidated financial statements . revenue recognition and accounts receivable . we enter into arrangements with customers that have multiple deliverables , such as equipment and installation , and we recognize revenues and profits on certain long-term contracts using the percentage-of-completion and completed contract methods of accounting . revenue recognition methods . we recognize revenue under accounting standards codification ( asc ) 605 , `` revenue recognition `` ( asc 605 ) , when the following criteria are met : persuasive evidence of an arrangement exists , delivery has occurred or service has been rendered , the sales price is fixed or determinable , and collectability is reasonably assured . under asc 605 , when the terms of sale include customer acceptance provisions , and compliance with those provisions can not be demonstrated until customer acceptance , we recognize revenues upon such acceptance . the company includes in revenues amounts invoiced for shipping and handling with the corresponding costs reflected in cost of revenues . provisions for discounts , warranties , returns , and other adjustments are provided for in the period in which the related sales are recorded . we include in revenue amounts invoiced for shipping and handling with the corresponding costs reflected in cost of revenues . sales taxes , value-added taxes and certain excise taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and are therefore excluded from revenue . most of our revenue is recognized in accordance with the accounting policies in the preceding paragraph . however , when a sale arrangement involves multiple elements , such as equipment and installation , we consider the guidance in asc 605. such transactions are evaluated to determine whether the deliverables in the arrangement represent separate units of accounting based on the following criteria : the delivered item has value to the customer on a stand-alone basis , and if the contract includes a general right of return relative to the delivered item , delivery or performance of the undelivered item is considered probable and substantially under our control . revenue is allocated to each unit of accounting or element based on relative selling prices and is recognized as each element is delivered or completed . we determine relative selling prices by using either vendor-specific objective evidence ( vsoe ) if that exists , or third-party evidence of selling price . when neither vsoe or third-party evidence of selling price exists for a deliverable , we 19 kadant inc. 2015 annual report use our best estimate of the selling price for that deliverable . in cases in which elements can not be treated as separate units of accounting , the elements are combined into a single unit of accounting for revenue recognition purposes . the complexity of all issues related to the assumptions , risks , and uncertainties inherent in the application of asc 605 affects the amounts reported as revenues in our consolidated financial statements . under asc 605 , we may not be able to reliably predict future revenues and profitability due to the difficulty of estimating when installation will be performed or when we will meet the contractually agreed upon performance tests , which can delay or prohibit recognition of revenues . the determination of when we install the equipment or fulfill the performance guarantees is largely dependent on our customers , their willingness to allow installation of the equipment or performance of the appropriate tests in a timely manner , and their cooperation in addressing possible problems that would impede achievement of the performance guarantee criteria . unexpected changes in the timing related to the completion of installation or performance guarantees could cause our revenues and earnings to be significantly affected . percentage-of-completion . revenues recorded under the percentage-of-completion method of accounting pursuant to asc 605 were $ 32.1 million in 2015 , $ 19.1 million in 2014 , and $ 19.8 million in 2013 . we determine the percentage of completion by comparing the actual costs incurred to date to an estimate of total costs to be incurred on each contract . if a loss is indicated on any contract in process , a provision is made currently for the entire loss . our contracts generally provide for billing of customers upon the attainment of certain milestones specified in the contract . revenues earned on contracts in process in excess of billings are classified as unbilled contract costs and fees , and amounts billed in excess of revenues are classified as billings in excess of contract costs and fees . the estimation process under the percentage-of-completion method affects the amounts reported in our consolidated financial statements . a number of internal and external factors affect our percentage-of-completion and cost of sales estimates , including labor rate and efficiency variances , estimates of warranty costs , estimated future material prices from vendors , and customer specification and testing requirements . although we make every effort to ensure the accuracy of our estimates in the application of this accounting policy , if our actual results were to differ from our estimates , or if we were to use different assumptions , it is possible that materially different amounts could be reported as revenues in our consolidated financial statements . completed contract method . for long-term contracts that do not meet the criteria under asc 605-35 to be accounted for under the percentage-of-completion method , we recognize revenue using the completed contract method . when using the completed contract method , we recognize revenue when the contract has been substantially completed , the product has been delivered , and , if applicable , the customer acceptance criteria have been met . story_separator_special_tag u.s. housing starts in december 2015 were at a seasonally adjusted annual rate of 1.149 million , up 6.4 % compared to december 2014 , according to the u.s. census bureau and the department of 22 kadant inc. 2015 annual report housing and urban development as reported by risi . this growth is expected to have a positive impact on demand for u.s. lumber and structural wood panels , which includes osb . our stock-preparation product line benefited in 2015 from virgin pulp mill upgrades for containerboard , as well as the conversion of machines that produce printing and writing grades to the production of containerboard used for packaging . we saw steady business activity in europe in 2015 compared to 2014. we expect the overall economy to remain stable in europe in 2016. our bookings in europe were $ 82 million in 2015 , down 2 % compared to $ 84 million in 2014. excluding a negative foreign currency translation effect of $ 16 million , our bookings in europe were up 17 % . our bookings in asia were $ 47 million in 2015 , down 46 % compared to 2014. this decrease includes a $ 16 million , or 19 % , decrease from the reversal of a booking , originally recorded in 2014 , for a project in china and a $ 2 million decrease from the negative effects of foreign currency translation . weak demand and a relatively soft domestic economy affected most paper grades in china in 2015 , a trend we expect to continue in 2016. the most recent risi forecasts of containerboard demand growth of approximately 3 % per year for the next few years suggest new capital project activity may remain at reduced levels in china in 2016. our bookings in the rest of the world increased 9 % to $ 34 million in 2015 compared to 2014 but were , and continue to be , negatively affected by the recession in brazil . we expect to achieve diluted earnings per share ( eps ) from continuing operations of $ 2.80 to $ 2.90 in 2016 on revenue of $ 370 to $ 380 million . the 2016 guidance includes an unfavorable foreign currency translation effect of $ 10 million on revenue and $ 0.11 on diluted eps compared to 2015. similar to 2015 , we expect the first quarter of 2016 to be weaker with stronger successive quarterly operating results for the remainder of the year . for the first quarter of 2016 , we expect to achieve diluted eps from continuing operations of $ 0.55 to $ 0.58 on revenue of $ 89 to $ 91 million . results of operations 2015 compared to 2014 the following table sets forth our consolidated statement of income expressed as a percentage of total revenue : replace_table_token_7_th revenues revenues for 2015 and 2014 are as follows : replace_table_token_8_th papermaking systems segment . revenues at our papermaking systems segment decreased $ 5.5 million , or 2 % , to $ 342.7 million in 2015 from $ 348.2 million in 2014 , including a $ 26.4 million decrease from the unfavorable effects of foreign currency exchange . excluding the effects of foreign currency exchange , revenues in our papermaking systems segment increased $ 20.9 million primarily due to increased demand for our parts and consumables products , especially in our stock-preparation product line , and the inclusion of $ 6.7 million in revenue from an acquisition made in 2014 . 23 kadant inc. 2015 annual report wood processing systems segment . revenues at our wood processing systems segment decreased $ 5.2 million , or 13 % , to $ 36.4 million in 2015 from $ 41.6 million in 2014 , including a $ 5.8 million decrease from the unfavorable effects of foreign currency exchange . excluding the effects of foreign currency translation , revenues in our wood processing systems segment increased $ 0.6 million , or 1 % , primarily due to increased demand for our parts and consumables products . fiber-based products . revenues decreased $ 1.2 million , or 10 % , to $ 11.1 million in 2015 from $ 12.3 million in 2014 due to decreased demand for our biodegradable granular products . papermaking systems segment by product line . the following table presents revenues for our papermaking systems segment by product line , the changes in revenues by product line between 2015 and 2014 , and the changes in revenues by product line between 2015 and 2014 excluding the effect of currency translation . the increase in revenues excluding the effect of currency translation represents the increase resulting from converting 2015 revenues in local currency into u.s. dollars at 2014 exchange rates , and then comparing this result to the actual revenues in 2014 . the presentation of the changes in revenues by product line excluding the effect of currency translation is a non-gaap measure . we believe this non-gaap measure helps investors gain an understanding of our underlying operations , consistent with how management measures and forecasts our performance , especially when comparing such results to prior periods or forecasts . this non-gaap measure should not be considered superior to or a substitute for the corresponding gaap measure . replace_table_token_9_th revenues in our stock-preparation product line increased $ 20.8 million , or 16 % , in 2015 compared to 2014 , including an $ 8.1 million decrease due to the unfavorable effect of foreign currency translation . excluding the effect of foreign currency translation , revenues from our stock-preparation product line increased $ 28.9 million , or 23 % , in 2015 compared to 2014 , due to increased demand for our parts and consumables products at our north american and european operations , increased demand for our capital products at our north american and chinese operations , and the inclusion of $ 6.7 million in revenue from an acquisition made in 2014. revenues in our doctoring , cleaning

additional liquidity and capital resources on july 28 , 2014 , our board of directors approved the repurchase by us of up to $ 20 million of our equity securities during the period from july 28 , 2014 to july 28 , 2015. we repurchased 136,518 shares of our common stock for $ 6.0 million under this authorization . on may 20 , 2015 , our board of directors approved the repurchase by us of up to an additional $ 20 million of our equity securities during the period from may 20 , 2015 to may 20 , 2016. through year-end 2015 , we had repurchased 143,242 shares of our common stock for $ 5.9 million under this authorization . we paid cash dividends of $ 7.2 million and $ 6.3 million in 2015 and 2014 , respectively . on november 18 , 2015 , we declared a quarterly cash dividend totaling $ 0.17 per outstanding share of our common stock , or approximately $ 1.8 million , which was paid on february 11 , 2016. in addition , on march 8 , 2016 , we declared a quarterly cash dividend of $ 0.19 per outstanding share of our common stock , which will be paid on may 12 , 2016. future declarations of dividends are subject to our board of directors ' approval and may be adjusted as business needs or market conditions change . the payment of cash dividends is subject to our compliance with the consolidated leverage ratio contained in our 2012 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. ```additional liquidity and capital resources on july 28 , 2014 , our board of directors approved the repurchase by us of up to $ 20 million of our equity securities during the period from july 28 , 2014 to july 28 , 2015. we repurchased 136,518 shares of our common stock for $ 6.0 million under this authorization . on may 20 , 2015 , our board of directors approved the repurchase by us of up to an additional $ 20 million of our equity securities during the period from may 20 , 2015 to may 20 , 2016. through year-end 2015 , we had repurchased 143,242 shares of our common stock for $ 5.9 million under this authorization . we paid cash dividends of $ 7.2 million and $ 6.3 million in 2015 and 2014 , respectively . on november 18 , 2015 , we declared a quarterly cash dividend totaling $ 0.17 per outstanding share of our common stock , or approximately $ 1.8 million , which was paid on february 11 , 2016. in addition , on march 8 , 2016 , we declared a quarterly cash dividend of $ 0.19 per outstanding share of our common stock , which will be paid on may 12 , 2016. future declarations of dividends are subject to our board of directors ' approval and may be adjusted as business needs or market conditions change . the payment of cash dividends is subject to our compliance with the consolidated leverage ratio contained in our 2012 credit agreement . ``` Suspicious Activity Report : for a discussion on the application of these and other accounting policies , see note 1 to the consolidated financial statements . revenue recognition and accounts receivable . we enter into arrangements with customers that have multiple deliverables , such as equipment and installation , and we recognize revenues and profits on certain long-term contracts using the percentage-of-completion and completed contract methods of accounting . revenue recognition methods . we recognize revenue under accounting standards codification ( asc ) 605 , `` revenue recognition `` ( asc 605 ) , when the following criteria are met : persuasive evidence of an arrangement exists , delivery has occurred or service has been rendered , the sales price is fixed or determinable , and collectability is reasonably assured . under asc 605 , when the terms of sale include customer acceptance provisions , and compliance with those provisions can not be demonstrated until customer acceptance , we recognize revenues upon such acceptance . the company includes in revenues amounts invoiced for shipping and handling with the corresponding costs reflected in cost of revenues . provisions for discounts , warranties , returns , and other adjustments are provided for in the period in which the related sales are recorded . we include in revenue amounts invoiced for shipping and handling with the corresponding costs reflected in cost of revenues . sales taxes , value-added taxes and certain excise taxes collected from customers and remitted to governmental authorities are accounted for on a net basis and are therefore excluded from revenue . most of our revenue is recognized in accordance with the accounting policies in the preceding paragraph . however , when a sale arrangement involves multiple elements , such as equipment and installation , we consider the guidance in asc 605. such transactions are evaluated to determine whether the deliverables in the arrangement represent separate units of accounting based on the following criteria : the delivered item has value to the customer on a stand-alone basis , and if the contract includes a general right of return relative to the delivered item , delivery or performance of the undelivered item is considered probable and substantially under our control . revenue is allocated to each unit of accounting or element based on relative selling prices and is recognized as each element is delivered or completed . we determine relative selling prices by using either vendor-specific objective evidence ( vsoe ) if that exists , or third-party evidence of selling price . when neither vsoe or third-party evidence of selling price exists for a deliverable , we 19 kadant inc. 2015 annual report use our best estimate of the selling price for that deliverable . in cases in which elements can not be treated as separate units of accounting , the elements are combined into a single unit of accounting for revenue recognition purposes . the complexity of all issues related to the assumptions , risks , and uncertainties inherent in the application of asc 605 affects the amounts reported as revenues in our consolidated financial statements . under asc 605 , we may not be able to reliably predict future revenues and profitability due to the difficulty of estimating when installation will be performed or when we will meet the contractually agreed upon performance tests , which can delay or prohibit recognition of revenues . the determination of when we install the equipment or fulfill the performance guarantees is largely dependent on our customers , their willingness to allow installation of the equipment or performance of the appropriate tests in a timely manner , and their cooperation in addressing possible problems that would impede achievement of the performance guarantee criteria . unexpected changes in the timing related to the completion of installation or performance guarantees could cause our revenues and earnings to be significantly affected . percentage-of-completion . revenues recorded under the percentage-of-completion method of accounting pursuant to asc 605 were $ 32.1 million in 2015 , $ 19.1 million in 2014 , and $ 19.8 million in 2013 . we determine the percentage of completion by comparing the actual costs incurred to date to an estimate of total costs to be incurred on each contract . if a loss is indicated on any contract in process , a provision is made currently for the entire loss . our contracts generally provide for billing of customers upon the attainment of certain milestones specified in the contract . revenues earned on contracts in process in excess of billings are classified as unbilled contract costs and fees , and amounts billed in excess of revenues are classified as billings in excess of contract costs and fees . the estimation process under the percentage-of-completion method affects the amounts reported in our consolidated financial statements . a number of internal and external factors affect our percentage-of-completion and cost of sales estimates , including labor rate and efficiency variances , estimates of warranty costs , estimated future material prices from vendors , and customer specification and testing requirements . although we make every effort to ensure the accuracy of our estimates in the application of this accounting policy , if our actual results were to differ from our estimates , or if we were to use different assumptions , it is possible that materially different amounts could be reported as revenues in our consolidated financial statements . completed contract method . for long-term contracts that do not meet the criteria under asc 605-35 to be accounted for under the percentage-of-completion method , we recognize revenue using the completed contract method . when using the completed contract method , we recognize revenue when the contract has been substantially completed , the product has been delivered , and , if applicable , the customer acceptance criteria have been met . story_separator_special_tag u.s. housing starts in december 2015 were at a seasonally adjusted annual rate of 1.149 million , up 6.4 % compared to december 2014 , according to the u.s. census bureau and the department of 22 kadant inc. 2015 annual report housing and urban development as reported by risi . this growth is expected to have a positive impact on demand for u.s. lumber and structural wood panels , which includes osb . our stock-preparation product line benefited in 2015 from virgin pulp mill upgrades for containerboard , as well as the conversion of machines that produce printing and writing grades to the production of containerboard used for packaging . we saw steady business activity in europe in 2015 compared to 2014. we expect the overall economy to remain stable in europe in 2016. our bookings in europe were $ 82 million in 2015 , down 2 % compared to $ 84 million in 2014. excluding a negative foreign currency translation effect of $ 16 million , our bookings in europe were up 17 % . our bookings in asia were $ 47 million in 2015 , down 46 % compared to 2014. this decrease includes a $ 16 million , or 19 % , decrease from the reversal of a booking , originally recorded in 2014 , for a project in china and a $ 2 million decrease from the negative effects of foreign currency translation . weak demand and a relatively soft domestic economy affected most paper grades in china in 2015 , a trend we expect to continue in 2016. the most recent risi forecasts of containerboard demand growth of approximately 3 % per year for the next few years suggest new capital project activity may remain at reduced levels in china in 2016. our bookings in the rest of the world increased 9 % to $ 34 million in 2015 compared to 2014 but were , and continue to be , negatively affected by the recession in brazil . we expect to achieve diluted earnings per share ( eps ) from continuing operations of $ 2.80 to $ 2.90 in 2016 on revenue of $ 370 to $ 380 million . the 2016 guidance includes an unfavorable foreign currency translation effect of $ 10 million on revenue and $ 0.11 on diluted eps compared to 2015. similar to 2015 , we expect the first quarter of 2016 to be weaker with stronger successive quarterly operating results for the remainder of the year . for the first quarter of 2016 , we expect to achieve diluted eps from continuing operations of $ 0.55 to $ 0.58 on revenue of $ 89 to $ 91 million . results of operations 2015 compared to 2014 the following table sets forth our consolidated statement of income expressed as a percentage of total revenue : replace_table_token_7_th revenues revenues for 2015 and 2014 are as follows : replace_table_token_8_th papermaking systems segment . revenues at our papermaking systems segment decreased $ 5.5 million , or 2 % , to $ 342.7 million in 2015 from $ 348.2 million in 2014 , including a $ 26.4 million decrease from the unfavorable effects of foreign currency exchange . excluding the effects of foreign currency exchange , revenues in our papermaking systems segment increased $ 20.9 million primarily due to increased demand for our parts and consumables products , especially in our stock-preparation product line , and the inclusion of $ 6.7 million in revenue from an acquisition made in 2014 . 23 kadant inc. 2015 annual report wood processing systems segment . revenues at our wood processing systems segment decreased $ 5.2 million , or 13 % , to $ 36.4 million in 2015 from $ 41.6 million in 2014 , including a $ 5.8 million decrease from the unfavorable effects of foreign currency exchange . excluding the effects of foreign currency translation , revenues in our wood processing systems segment increased $ 0.6 million , or 1 % , primarily due to increased demand for our parts and consumables products . fiber-based products . revenues decreased $ 1.2 million , or 10 % , to $ 11.1 million in 2015 from $ 12.3 million in 2014 due to decreased demand for our biodegradable granular products . papermaking systems segment by product line . the following table presents revenues for our papermaking systems segment by product line , the changes in revenues by product line between 2015 and 2014 , and the changes in revenues by product line between 2015 and 2014 excluding the effect of currency translation . the increase in revenues excluding the effect of currency translation represents the increase resulting from converting 2015 revenues in local currency into u.s. dollars at 2014 exchange rates , and then comparing this result to the actual revenues in 2014 . the presentation of the changes in revenues by product line excluding the effect of currency translation is a non-gaap measure . we believe this non-gaap measure helps investors gain an understanding of our underlying operations , consistent with how management measures and forecasts our performance , especially when comparing such results to prior periods or forecasts . this non-gaap measure should not be considered superior to or a substitute for the corresponding gaap measure . replace_table_token_9_th revenues in our stock-preparation product line increased $ 20.8 million , or 16 % , in 2015 compared to 2014 , including an $ 8.1 million decrease due to the unfavorable effect of foreign currency translation . excluding the effect of foreign currency translation , revenues from our stock-preparation product line increased $ 28.9 million , or 23 % , in 2015 compared to 2014 , due to increased demand for our parts and consumables products at our north american and european operations , increased demand for our capital products at our north american and chinese operations , and the inclusion of $ 6.7 million in revenue from an acquisition made in 2014. revenues in our doctoring , cleaning

rlje ltd manages our british drama co-productions , including foyle 's war , which is one of our most successful acorn television series , and the intellectual property rights owned by acl including all the tv/film and publishing revenues associated with those rights . acl is home to some of the world 's greatest works of mystery fiction , including murder on the orient express and death on the nile and includes all development rights to iconic sleuths such as hercule poirot and miss marple . the agatha christie library includes approximately 80 novels and short story collections , 19 plays and a film library of over 100 made-for-television films . in 2013 , acl commissioned a new writer to expand the agatha christie library content , and in the third quarter of 2014 , acl published its first book , the monogram murders , since the death of agatha christie . 32 our wholesale partners are broadcasters , digital outlets and major retailers in the u.s. , canada , united kingdom and australia , including , among others : directv , showtime , bet , pbs , netflix , amazon , hulu , walmart , target , costco , barnes & noble , hmv and itunes . we work closely with our wholesale partners to outline and implement release and promotional campaigns customized to the different audiences we serve and the program genres we exploit . our direct-to-consumer segment includes our proprietary svod channels , which are acorn tv , acacia tv and umc , and the sale of video content and complementary merchandise directly to consumers through proprietary e-commerce websites and mail-order catalogs . as of december 31 , 2014 , acorn tv had over 118,000 paying subscribers . in late 2014 , we launched our urban content svod channel , umc . in response to the strategic opportunity brought by the convergence of television and the internet , we expect to continue to invest in more exclusive and appealing content programming , greater marketing support and an expanded it infra-structure for our svod channels . we also plan to develop other audience-based , premium svod channels based on our existing content library . rlje 's management views our operations based on these three distinctive reporting segments : ( 1 ) ip licensing ; ( 2 ) wholesale ; and ( 3 ) direct-to-consumer . operations and net assets that are not associated with any of these stated segments are reported as “ corporate ” when disclosing and discussing segment information . the ip licensing segment includes intellectual property rights that we own or create and then sublicense for exploitation worldwide . our wholesale and direct-to-consumer segments consist of the acquisition , content enhancement and worldwide exploitation of exclusive content in various formats , including broadcast , dvd and blu-ray , and digital ( which include vod , svod , streaming , and downloading ) . we also sublicense certain distribution rights to others to cover territories outside the u.s. , the u.k. , and australia . the wholesale segment exploits content through third-party vendors such as directv , showtime , bet , netflix , amazon , walmart , best buy , target and costco , while the direct-to-consumer segment exploits the same content and complementary merchandise directly to consumers through our proprietary e-commerce websites , mail-order catalogs and digitally streaming channels . revenue sources net revenues by reporting segment as a percentage of total net revenues for the periods presented are as follows : replace_table_token_7_th ( 1 ) reported net revenues exclude revenues generated by our 64 % owned subsidiary , acl , which is accounted for under the equity method of accounting . 33 revenues by geographical area as a percent of the total revenues are as follows : replace_table_token_8_th wholesale segment dvd and blu-ray our primary source of revenues within the wholesale segment continues to be from the exploitation of exclusive content on dvd and blu-ray through third-party vendors such as walmart , best buy , target costco , and amazon . digital , vod and broadcast revenues derived from digital and broadcast exploitation of our content continue to rapidly grow as a percentage of revenues . net revenues derived from digital , vod , third-party svod and broadcast exploitation account for approximately 30.3 % of the segment 's revenues in 2014 versus 23.4 % in 2013. this is consistent with consumer adoption trends . as retailers continue to offer consumer-friendly devices that make access to these on-demand services easier , including allowing consumption on portable devices such as smartphones and tablets , we believe we are well-positioned to capture business in this growing distribution channel . other licensing we continue our efforts to acquire more programming with international rights . our key sublicensing partners , which cover territories outside the u.s. , the u.k. and australia , are with universal music group international , bet international , warner music australia , itv studios , british broadcasting corporation ( or bbc ) and universal pictures australia . to date , most of the feature films we have acquired do not include rights outside of north america . however , given our presence in the united kingdom and australia , we are focusing our efforts to acquire more programming in all english-language markets . when appropriate , we now seek the greatest variety of distribution rights regarding acquired content in the greatest variety of formats . we believe that this will allow us to further diversify revenue streams . direct-to-consumer segment our direct-to-consumer businesses are primarily in the u.s. and u.k. and comprise approximately one-fourth of our overall revenue base . non-video revenues include the sale of retail merchandise such as attire for women and men , home furnishings and decorator items and collectables . story_separator_special_tag not all companies calculate adjusted ebitda in the same manner and the measure as presented may not be comparable to similarly-titled measures presented by other companies . the following table includes the reconciliation of our consolidated u.s. gaap net loss to our consolidated adjusted ebitda : replace_table_token_13_th adjusted ebitda includes the impact of $ ( 3.0 ) million and $ 442,000 for 2014 and 2013 , respectively , from the terminated output deal . a reconciliation of adjusted ebitda to our net increase ( decrease ) in cash as reported in our consolidated statements of cash flows is as follows : replace_table_token_14_th balance sheet analysis assets total assets at december 31 , 2014 and 2013 , were $ 192.1 million and $ 220.3 million , respectively . the decline of $ 28.2 million in assets is mostly attributed to a decline in investments in content of $ 14.1 million , which is due to the amortization from the business combination 's fair value adjustments of $ 7.7 million and impairments $ 4.8 million , amortization of intangible assets of $ 4.8 million and a decline in our equity investment in acl of $ 3.0 million . the decline in our equity investment is due to a combination of dividends paid of $ 4.0 million being greater than our portion of net income from acl of $ 2.6 million and a weakening pound compared to the dollar . 41 a summary of assets by segment is as follows : replace_table_token_15_th liabilities and equity the decline of liabilities and equity of $ 28.2 million is mostly attributed to the net loss of $ 21.2 million for the year ended december 31 , 2014 , a decline in our accounts payable and accrued liabilities of $ 7.8 million and a decrease in our warrant liability of $ 3.5 million . these decreases are partially offset by an increase in our debt of $ 4.6 million . liquidity and capital resources liquidity a summary of our cash flow activities is as follows : replace_table_token_16_th at december 31 , 2014 and 2013 , our cash and cash equivalents were approximately $ 6.7 million and $ 7.7 million , respectively . during the year ended december 31 , 2014 , our cash position was impacted by the following : § we incurred a net use of cash of $ 1.6 million resulting from our operating activities . the net use of cash was largely attributable to management 's use of cash to pay off vendor trade payables and invest in content during a period of relative lower revenues and content amortization . during the year ended december 31 , 2014 , we paid approximately $ 7.8 million of vendor trade payables . the legacy image business had significant short-term vendor debts , which were past due and which we are in the process of paying off by making increased cash payments or modifying payment terms in the short term . bringing our vendor trade payables current continues to constrain our liquidity . § our quarterly results are typically affected by : ( a ) the timing and release dates of key productions , ( b ) the seasonality of our wholesale and direct-to-consumer business which are 32 – 35 % weighted to the 4 th quarter and ( c ) we generally invest more cash on content during the first half of the year . 42 the aggregate cash used in operating activities during the year ended december 31 , 2014 was provided by our cash reserves as of december 31 , 2013 and cash provided by our investing activities . for the year ended december 31 , 2014 , significant factors affecting cash provided by or used in our investing and financing activities were : § dividends received from acl ( $ 4.0 million ) ; § debt borrowing to finance the production of foyle 's war 9 ( $ 9.9 million ) , less repayments under the production facility ( $ 11.2 million ) ; § repayment of senior debt and revolving credit facility ( $ 63.8 million ) , offset by borrowings under the new credit agreement less deferred financing costs incurred ( $ 63.8 million ) ; and § capital expenditures of $ 1.7 million . based upon the payment terms of the new credit agreement entered into on september 11 , 2014 , we expect to have improved liquidity of approximately $ 15.0 million through december 31 , 2015 from the reduced future debt service requirements . prior to entering into the new credit agreement , we had curtailed our non-foyle 's war content spending in 2014 to make our principal payments on the prior credit facility . our new credit agreement is expected to provide increased liquidity primarily through the reduction of near-term future principal payments . the expected cash flow improvement will assist the company in addressing legacy past due payables and other operating investments that have been deferred , which include providing capital for the launching of additional digital svod channels . as of march 31 , 2015 , we were not in compliance with our minimum cash balance requirement of $ 3.5 million within our credit agreement . this default was waived by our lenders on april 15 , 2015. we continue to experience liquidity constraints , and we are dependent upon growth in sales and margins to meet our liquidity needs and our debt covenants for the next twelve months . on april 15 , 2015 , we amended our credit agreement to increase the likelihood that we will meet our future covenant requirements and amended our subordinated notes to reduce the applicable interest rate for two years . we also improved our liquidity by selling on april 15 , 2015 15,000 shares of bridge preferred stock for $ 15.0 million , which stock is anticipated to be exchanged for convertible preferred stock . the proceeds were used to make an accelerated principal payment of $

cash as of december 31 , 2014 , we had cash of $ 6.7 million , as compared to $ 7.7 million as of december 31 , 2013. new credit agreement on september 11 , 2014 , we entered into a $ 70.0 million credit and guaranty agreement ( the “ credit agreement ” ) with a syndicate of lenders led by mclarty capital partners , as administrative agent . the credit agreement consists of a term loan totaling $ 70.0 million with a final maturity of five years , at an interest rate equal to ( a ) libor plus 10.64 % for so long as the unpaid principal amount of the credit agreement is greater than $ 65.0 million , and ( b ) libor plus 9.9 % thereafter with a floor of 0.25 % for libor . the quarterly principal amortization is 3.5 % for the first two years , 5.0 % for the third year and 7.5 % for the remaining term with any unpaid principal balance due at maturity . the obligations under the credit agreement are secured by a lien on substantially all of our consolidated assets pursuant to the pledge and security agreement , dated as of september 11 , 2014. under the new credit agreement , interest and principal is payable quarterly with principal payments beginning on december 31 , 2014. initial quarterly principal payments are $ 613,000 through 2016 , then increases to $ 875,000 through june 2017 , and thereafter are $ 1.3 million . beginning in 2016 , we are obligated to make certain accelerated principal payments annually which are contingent upon : ( 1 ) the occurrence of consolidated excess cash flows , as defined in the credit agreement , and ( 2 ) only to the extent at which such excess cash flows are above our minimum cash threshold of $ 12.0 million . we are permitted to make additional voluntary principal payments under the credit agreement , but prepayments are subject to an applicable prepayment premium of : ( a ) 5 % if prepaid during the first year , ( b ) 3 % if prepaid during the second year , and ( c ) 1.5 % if prepaid during the third year .

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 as of december 31 , 2014 , we had cash of $ 6.7 million , as compared to $ 7.7 million as of december 31 , 2013. new credit agreement on september 11 , 2014 , we entered into a $ 70.0 million credit and guaranty agreement ( the “ credit agreement ” ) with a syndicate of lenders led by mclarty capital partners , as administrative agent . the credit agreement consists of a term loan totaling $ 70.0 million with a final maturity of five years , at an interest rate equal to ( a ) libor plus 10.64 % for so long as the unpaid principal amount of the credit agreement is greater than $ 65.0 million , and ( b ) libor plus 9.9 % thereafter with a floor of 0.25 % for libor . the quarterly principal amortization is 3.5 % for the first two years , 5.0 % for the third year and 7.5 % for the remaining term with any unpaid principal balance due at maturity . the obligations under the credit agreement are secured by a lien on substantially all of our consolidated assets pursuant to the pledge and security agreement , dated as of september 11 , 2014. under the new credit agreement , interest and principal is payable quarterly with principal payments beginning on december 31 , 2014. initial quarterly principal payments are $ 613,000 through 2016 , then increases to $ 875,000 through june 2017 , and thereafter are $ 1.3 million . beginning in 2016 , we are obligated to make certain accelerated principal payments annually which are contingent upon : ( 1 ) the occurrence of consolidated excess cash flows , as defined in the credit agreement , and ( 2 ) only to the extent at which such excess cash flows are above our minimum cash threshold of $ 12.0 million . we are permitted to make additional voluntary principal payments under the credit agreement , but prepayments are subject to an applicable prepayment premium of : ( a ) 5 % if prepaid during the first year , ( b ) 3 % if prepaid during the second year , and ( c ) 1.5 % if prepaid during the third year . ``` Suspicious Activity Report : rlje ltd manages our british drama co-productions , including foyle 's war , which is one of our most successful acorn television series , and the intellectual property rights owned by acl including all the tv/film and publishing revenues associated with those rights . acl is home to some of the world 's greatest works of mystery fiction , including murder on the orient express and death on the nile and includes all development rights to iconic sleuths such as hercule poirot and miss marple . the agatha christie library includes approximately 80 novels and short story collections , 19 plays and a film library of over 100 made-for-television films . in 2013 , acl commissioned a new writer to expand the agatha christie library content , and in the third quarter of 2014 , acl published its first book , the monogram murders , since the death of agatha christie . 32 our wholesale partners are broadcasters , digital outlets and major retailers in the u.s. , canada , united kingdom and australia , including , among others : directv , showtime , bet , pbs , netflix , amazon , hulu , walmart , target , costco , barnes & noble , hmv and itunes . we work closely with our wholesale partners to outline and implement release and promotional campaigns customized to the different audiences we serve and the program genres we exploit . our direct-to-consumer segment includes our proprietary svod channels , which are acorn tv , acacia tv and umc , and the sale of video content and complementary merchandise directly to consumers through proprietary e-commerce websites and mail-order catalogs . as of december 31 , 2014 , acorn tv had over 118,000 paying subscribers . in late 2014 , we launched our urban content svod channel , umc . in response to the strategic opportunity brought by the convergence of television and the internet , we expect to continue to invest in more exclusive and appealing content programming , greater marketing support and an expanded it infra-structure for our svod channels . we also plan to develop other audience-based , premium svod channels based on our existing content library . rlje 's management views our operations based on these three distinctive reporting segments : ( 1 ) ip licensing ; ( 2 ) wholesale ; and ( 3 ) direct-to-consumer . operations and net assets that are not associated with any of these stated segments are reported as “ corporate ” when disclosing and discussing segment information . the ip licensing segment includes intellectual property rights that we own or create and then sublicense for exploitation worldwide . our wholesale and direct-to-consumer segments consist of the acquisition , content enhancement and worldwide exploitation of exclusive content in various formats , including broadcast , dvd and blu-ray , and digital ( which include vod , svod , streaming , and downloading ) . we also sublicense certain distribution rights to others to cover territories outside the u.s. , the u.k. , and australia . the wholesale segment exploits content through third-party vendors such as directv , showtime , bet , netflix , amazon , walmart , best buy , target and costco , while the direct-to-consumer segment exploits the same content and complementary merchandise directly to consumers through our proprietary e-commerce websites , mail-order catalogs and digitally streaming channels . revenue sources net revenues by reporting segment as a percentage of total net revenues for the periods presented are as follows : replace_table_token_7_th ( 1 ) reported net revenues exclude revenues generated by our 64 % owned subsidiary , acl , which is accounted for under the equity method of accounting . 33 revenues by geographical area as a percent of the total revenues are as follows : replace_table_token_8_th wholesale segment dvd and blu-ray our primary source of revenues within the wholesale segment continues to be from the exploitation of exclusive content on dvd and blu-ray through third-party vendors such as walmart , best buy , target costco , and amazon . digital , vod and broadcast revenues derived from digital and broadcast exploitation of our content continue to rapidly grow as a percentage of revenues . net revenues derived from digital , vod , third-party svod and broadcast exploitation account for approximately 30.3 % of the segment 's revenues in 2014 versus 23.4 % in 2013. this is consistent with consumer adoption trends . as retailers continue to offer consumer-friendly devices that make access to these on-demand services easier , including allowing consumption on portable devices such as smartphones and tablets , we believe we are well-positioned to capture business in this growing distribution channel . other licensing we continue our efforts to acquire more programming with international rights . our key sublicensing partners , which cover territories outside the u.s. , the u.k. and australia , are with universal music group international , bet international , warner music australia , itv studios , british broadcasting corporation ( or bbc ) and universal pictures australia . to date , most of the feature films we have acquired do not include rights outside of north america . however , given our presence in the united kingdom and australia , we are focusing our efforts to acquire more programming in all english-language markets . when appropriate , we now seek the greatest variety of distribution rights regarding acquired content in the greatest variety of formats . we believe that this will allow us to further diversify revenue streams . direct-to-consumer segment our direct-to-consumer businesses are primarily in the u.s. and u.k. and comprise approximately one-fourth of our overall revenue base . non-video revenues include the sale of retail merchandise such as attire for women and men , home furnishings and decorator items and collectables . story_separator_special_tag not all companies calculate adjusted ebitda in the same manner and the measure as presented may not be comparable to similarly-titled measures presented by other companies . the following table includes the reconciliation of our consolidated u.s. gaap net loss to our consolidated adjusted ebitda : replace_table_token_13_th adjusted ebitda includes the impact of $ ( 3.0 ) million and $ 442,000 for 2014 and 2013 , respectively , from the terminated output deal . a reconciliation of adjusted ebitda to our net increase ( decrease ) in cash as reported in our consolidated statements of cash flows is as follows : replace_table_token_14_th balance sheet analysis assets total assets at december 31 , 2014 and 2013 , were $ 192.1 million and $ 220.3 million , respectively . the decline of $ 28.2 million in assets is mostly attributed to a decline in investments in content of $ 14.1 million , which is due to the amortization from the business combination 's fair value adjustments of $ 7.7 million and impairments $ 4.8 million , amortization of intangible assets of $ 4.8 million and a decline in our equity investment in acl of $ 3.0 million . the decline in our equity investment is due to a combination of dividends paid of $ 4.0 million being greater than our portion of net income from acl of $ 2.6 million and a weakening pound compared to the dollar . 41 a summary of assets by segment is as follows : replace_table_token_15_th liabilities and equity the decline of liabilities and equity of $ 28.2 million is mostly attributed to the net loss of $ 21.2 million for the year ended december 31 , 2014 , a decline in our accounts payable and accrued liabilities of $ 7.8 million and a decrease in our warrant liability of $ 3.5 million . these decreases are partially offset by an increase in our debt of $ 4.6 million . liquidity and capital resources liquidity a summary of our cash flow activities is as follows : replace_table_token_16_th at december 31 , 2014 and 2013 , our cash and cash equivalents were approximately $ 6.7 million and $ 7.7 million , respectively . during the year ended december 31 , 2014 , our cash position was impacted by the following : § we incurred a net use of cash of $ 1.6 million resulting from our operating activities . the net use of cash was largely attributable to management 's use of cash to pay off vendor trade payables and invest in content during a period of relative lower revenues and content amortization . during the year ended december 31 , 2014 , we paid approximately $ 7.8 million of vendor trade payables . the legacy image business had significant short-term vendor debts , which were past due and which we are in the process of paying off by making increased cash payments or modifying payment terms in the short term . bringing our vendor trade payables current continues to constrain our liquidity . § our quarterly results are typically affected by : ( a ) the timing and release dates of key productions , ( b ) the seasonality of our wholesale and direct-to-consumer business which are 32 – 35 % weighted to the 4 th quarter and ( c ) we generally invest more cash on content during the first half of the year . 42 the aggregate cash used in operating activities during the year ended december 31 , 2014 was provided by our cash reserves as of december 31 , 2013 and cash provided by our investing activities . for the year ended december 31 , 2014 , significant factors affecting cash provided by or used in our investing and financing activities were : § dividends received from acl ( $ 4.0 million ) ; § debt borrowing to finance the production of foyle 's war 9 ( $ 9.9 million ) , less repayments under the production facility ( $ 11.2 million ) ; § repayment of senior debt and revolving credit facility ( $ 63.8 million ) , offset by borrowings under the new credit agreement less deferred financing costs incurred ( $ 63.8 million ) ; and § capital expenditures of $ 1.7 million . based upon the payment terms of the new credit agreement entered into on september 11 , 2014 , we expect to have improved liquidity of approximately $ 15.0 million through december 31 , 2015 from the reduced future debt service requirements . prior to entering into the new credit agreement , we had curtailed our non-foyle 's war content spending in 2014 to make our principal payments on the prior credit facility . our new credit agreement is expected to provide increased liquidity primarily through the reduction of near-term future principal payments . the expected cash flow improvement will assist the company in addressing legacy past due payables and other operating investments that have been deferred , which include providing capital for the launching of additional digital svod channels . as of march 31 , 2015 , we were not in compliance with our minimum cash balance requirement of $ 3.5 million within our credit agreement . this default was waived by our lenders on april 15 , 2015. we continue to experience liquidity constraints , and we are dependent upon growth in sales and margins to meet our liquidity needs and our debt covenants for the next twelve months . on april 15 , 2015 , we amended our credit agreement to increase the likelihood that we will meet our future covenant requirements and amended our subordinated notes to reduce the applicable interest rate for two years . we also improved our liquidity by selling on april 15 , 2015 15,000 shares of bridge preferred stock for $ 15.0 million , which stock is anticipated to be exchanged for convertible preferred stock . the proceeds were used to make an accelerated principal payment of $

currently , 101 of our farms are leased on a pure , triple-net basis , 33 farms are leased on a partial-net basis ( with us , as landlord , responsible for all or a portion of the related property taxes ) , and 3 farms are leased on a single-net basis ( with us , as landlord , responsible for the related property taxes , as well as certain maintenance , repairs , and insurance costs ) . additionally , 40 of our farms are leased under agreements that include a variable rent component , called “ participation rents , ” that are based on the gross revenues earned on the respective farms . lease expirations agricultural leases are often shorter term in nature ( relative to leases of other types of real estate assets ) , so in any given year , we may have multiple leases up for extension or renewal . the following table summarizes the lease expirations by year for the farms owned and with leases in place as of december 31 , 2020 ( dollars in thousands ) : replace_table_token_3_th ( 1 ) certain lease agreements encompass multiple farms . ( 2 ) includes three leases that were renewed subsequent to december 31 , 2020 ( see “ recent developments—portfolio activity—existing properties—leasing activity ” below for a summary of these and other recent leasing activities ) . 36 ( 3 ) consists of ancillary leases ( e.g . , oil , gas , and mineral leases , telecommunications leases , etc . ) with varying expirations on certain of our farms . in addition , includes a net amount of approximately $ 2.8 million of lease revenue recorded as a result of an early lease termination on one of our properties ( see below , under “ recent developments—portfolio activity—existing properties—leasing activity—lease termination , ” for additional information ) . we currently have one agricultural lease scheduled to expire within the next six months on a farm in california . we are currently in negotiations with the existing tenant on the farm , as well as other potential tenants , and we anticipate being able to renew the lease at its current market rental rate without incurring any downtime on the farm . we currently anticipate the rental rate on this lease renewal to be relatively flat compared to that of the existing lease . regarding all upcoming lease expirations , there can be no assurance that we will be able to renew the existing leases or execute new leases at rental rates favorable to us , if at all , or be able to find replacement tenants , if necessary . recent developments portfolio activity property acquisitions since january 1 , 2020 , through the date of this filing , we have acquired 26 farms , which are summarized in the table below ( dollars in thousands , except for footnotes ) : replace_table_token_4_th ( 1 ) includes approximately $ 75,000 of aggregate external legal fees associated with negotiating and originating the leases associated with these acquisitions , which were expensed in the period incurred . ( 2 ) annualized straight-line rent is based on the minimum cash rental payments guaranteed under the respective leases , as required under gaap , and excludes contingent rental payments , such as participation rents . ( 3 ) the lease provides for an initial term of 14.7 years and includes six tenant termination options throughout the initial term . the lease term stated above represents the term through the first available termination option , and the annualized straight-line rent amount represents the rent guaranteed through the noncancellable term of the lease . ( 4 ) lease provides for an annual participation rent component based on the gross crop revenues earned on the farm . the rent figure above represents only the minimum cash guaranteed under the lease . ( 5 ) lease provides for an initial term of 8.2 years but also includes an annual tenant termination option should the tenant become physically unable to continue farming operations on the property , effective as of the end of the then-current lease year ( as defined within the lease ) . the lease term stated above represents the term through the first available termination option , and the annualized straight-line rent amount represents the rent guaranteed through the noncancellable term of the lease . ( 6 ) in connection with the acquisition of this property , we also acquired an ownership interest in a related llc , the sole purpose of which is to own and maintain a pipeline conveying water to this and other neighboring properties . our acquired ownership , which equated to a 12.5 % interest in the llc , was valued at approximately $ 280,000 at the time of acquisition and is included within other assets , net on the accompanying consolidated balance sheets . see “ investments in unconsolidated entities ” below for further information on our aggregate ownership interest in this llc . 37 ( 7 ) lease provides for an initial term of 3.1 years but also includes an annual tenant termination option should the tenant become physically unable to continue farming operations on the property , effective as of the end of the then-current lease year ( as defined within the lease ) . the lease term stated above represents the term through the first available termination option , and the annualized straight-line rent amount represents the rent guaranteed through the noncancellable term of the lease . ( 8 ) in connection with the acquisition of this property , we also acquired an ownership interest in a related llc , the sole purpose of which is to own and maintain a pipeline conveying water to this and other neighboring properties . story_separator_special_tag the primary series c offering will terminate on the date ( the “ series c termination date ” ) that is the earlier of either june 1 , 2025 ( unless terminated earlier or extended by our board of directors ) , or the date on which all 20,000,000 shares in the primary series c offering are sold . there is currently no public market for shares of the series c preferred stock ; however , we intend to apply to list the series c preferred stock on nasdaq or another national securities exchange within one calendar year after the series c termination date , though there can be no assurance that a listing will be achieved in such timeframe , or at all . common stock follow-on offering 41 in october 2020 , we completed a public offering of our common stock . the following table summarizes the details of the offering , including the underwriters ' full exercise of the over-allotment option in connection with the offering ( dollars in thousands , except per-share amounts ) : number of shares sold weighted-average offering price per share gross proceeds net proceeds ( 1 ) 1,897,500 $ 14.40 $ 27,324 $ 26,094 ( 1 ) net of underwriter discounts and commissions . at-the-market program on may 12 , 2020 , we terminated the prior atm program ( as defined in note 8 , “ equity—equity issuances—common stock—at-the-market-program , ” within the accompanying notes to our consolidated financial statements ) and entered into new equity distribution agreements with virtu americas , llc , and ladenburg thalmann & co. , inc. ( each a “ sales agent ” ) , under which we may issue and sell , from time to time and through the new sales agents , shares of our common stock having an aggregate offering price of up to $ 100.0 million ( the “ current atm program , ” and collectively with the prior atm program , the “ atm programs ” ) . the following table summarizes the activity under the atm programs from january 1 , 2020 , through the date of this filing ( dollars in thousands ) : number of shares sold weighted-average offering price per share gross proceeds net proceeds ( 1 ) 3,620,706 $ 14.77 $ 53,466 $ 52,930 ( 1 ) net of underwriter commissions and discounts . covid-19 the extent to which the covid-19 pandemic may impact our business , financial condition , liquidity , results of operations , funds from operations , or prospects will depend on numerous evolving factors that we are not be able to predict at this time , including the duration and long-term scope of the pandemic ; the adequate production and distribution of vaccinations ; governmental , business , and individuals ' actions that have been and continue to be taken in response to the pandemic ; the impact on economic activity from the pandemic and actions taken in response ; the effect on our tenants and their farming operations ; the ability of our tenants to make their rental payments ; any closures of our tenants ' operations ; and our ability to secure debt financing , service future debt obligations , or pay distributions to our stockholders . any of these events could materially adversely impact our business , financial condition , liquidity , results of operations , funds from operations , or prospects . during 2020 , we granted short-term rent extensions to two tenants who owed semi-annual rental payments totaling approximately $ 340,000. additional time was granted to these tenants due to delays in payments owed to them from their respective processors , which were primarily caused by the strict government-mandated lockdowns in the state of michigan in response to covid-19 . these rental payments were collected in full during the year ended december 31 , 2020 , and we have not received any further requests from tenants seeking relief as a result of covid-19 ; however , no assurances can be made that we will not receive additional rent deferral or modification requests in the future . libor transition the majority of our debt is at fixed rates , and we currently have very limited exposure to variable-rate debt based upon the london interbank offered rate ( “ libor ” ) , which is anticipated to be phased out during late 2021 or early 2022. libor is currently expected to transition to a new standard rate , the secured overnight financing rate ( “ sofr ” ) , which will incorporate certain overnight repo market data collected from multiple data sets . the current intent is to adjust the sofr to minimize the differences between the interest that a borrower would be paying using libor versus what it will be paying sofr . we are currently monitoring the transition and can not yet assess whether sofr will become a standard rate for variable-rate debt . our lines of credit with metlife and three term loans with rabo ( which are effectively fixed through our entry into interest swap agreements ) are currently based upon one-month libor . as such , we expect we will need to renegotiate these agreements in the future . assuming that sofr replaces libor and is appropriately adjusted , we currently expect the transition to result in a minimal impact to our overall operations . our adviser and administrator we are externally managed pursuant to contractual arrangements with our adviser and our administrator ( both affiliates of ours ) , which collectively employ all of our personnel and pay their salaries , benefits , and general expenses directly . the 42 investment advisory agreement with our adviser that was in effect through march 31 , 2017 , and the current administration agreement with our administrator ( the “ administration agreement ” ) each became effective february 1 , 2013. the advisory agreement with our adviser that was in effect through june 30 , 2019 (

cash flow resources the following table summarizes total net cash flows for operating , investing , and financing activities for the years ended december 31 , 2020 and 2019 ( dollars in thousands ) : replace_table_token_13_th operating activities the majority of cash from operating activities is generated from the rental payments we receive from our tenants , which is first used to fund our property-level operating expenses , with any excess cash being primarily used for principal and interest payments on our borrowings , management fees to our adviser , administrative fees to our administrator , and other corporate-level expenses . cash provided by operating activities increased for the year ended december 31 , 2020 , as compared to the prior year , primarily due to additional rental payments received from recent acquisitions and an early lease termination payment of approximately $ 3.0 million received from the outgoing tenant on four of our farms in arizona , partially offset by increases in the amount of fees paid to our adviser and interest payments made . investing activities the increase in cash used in investing activities for the year ended december 31 , 2020 , as compared to the prior-year period , was primarily due to an increase in aggregate cash paid for acquisitions of new farms and capital improvements on existing farms during the year ended december 31 , 2020 , which was approximately $ 10.2 million more than the prior year .

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 resources the following table summarizes total net cash flows for operating , investing , and financing activities for the years ended december 31 , 2020 and 2019 ( dollars in thousands ) : replace_table_token_13_th operating activities the majority of cash from operating activities is generated from the rental payments we receive from our tenants , which is first used to fund our property-level operating expenses , with any excess cash being primarily used for principal and interest payments on our borrowings , management fees to our adviser , administrative fees to our administrator , and other corporate-level expenses . cash provided by operating activities increased for the year ended december 31 , 2020 , as compared to the prior year , primarily due to additional rental payments received from recent acquisitions and an early lease termination payment of approximately $ 3.0 million received from the outgoing tenant on four of our farms in arizona , partially offset by increases in the amount of fees paid to our adviser and interest payments made . investing activities the increase in cash used in investing activities for the year ended december 31 , 2020 , as compared to the prior-year period , was primarily due to an increase in aggregate cash paid for acquisitions of new farms and capital improvements on existing farms during the year ended december 31 , 2020 , which was approximately $ 10.2 million more than the prior year . ``` Suspicious Activity Report : currently , 101 of our farms are leased on a pure , triple-net basis , 33 farms are leased on a partial-net basis ( with us , as landlord , responsible for all or a portion of the related property taxes ) , and 3 farms are leased on a single-net basis ( with us , as landlord , responsible for the related property taxes , as well as certain maintenance , repairs , and insurance costs ) . additionally , 40 of our farms are leased under agreements that include a variable rent component , called “ participation rents , ” that are based on the gross revenues earned on the respective farms . lease expirations agricultural leases are often shorter term in nature ( relative to leases of other types of real estate assets ) , so in any given year , we may have multiple leases up for extension or renewal . the following table summarizes the lease expirations by year for the farms owned and with leases in place as of december 31 , 2020 ( dollars in thousands ) : replace_table_token_3_th ( 1 ) certain lease agreements encompass multiple farms . ( 2 ) includes three leases that were renewed subsequent to december 31 , 2020 ( see “ recent developments—portfolio activity—existing properties—leasing activity ” below for a summary of these and other recent leasing activities ) . 36 ( 3 ) consists of ancillary leases ( e.g . , oil , gas , and mineral leases , telecommunications leases , etc . ) with varying expirations on certain of our farms . in addition , includes a net amount of approximately $ 2.8 million of lease revenue recorded as a result of an early lease termination on one of our properties ( see below , under “ recent developments—portfolio activity—existing properties—leasing activity—lease termination , ” for additional information ) . we currently have one agricultural lease scheduled to expire within the next six months on a farm in california . we are currently in negotiations with the existing tenant on the farm , as well as other potential tenants , and we anticipate being able to renew the lease at its current market rental rate without incurring any downtime on the farm . we currently anticipate the rental rate on this lease renewal to be relatively flat compared to that of the existing lease . regarding all upcoming lease expirations , there can be no assurance that we will be able to renew the existing leases or execute new leases at rental rates favorable to us , if at all , or be able to find replacement tenants , if necessary . recent developments portfolio activity property acquisitions since january 1 , 2020 , through the date of this filing , we have acquired 26 farms , which are summarized in the table below ( dollars in thousands , except for footnotes ) : replace_table_token_4_th ( 1 ) includes approximately $ 75,000 of aggregate external legal fees associated with negotiating and originating the leases associated with these acquisitions , which were expensed in the period incurred . ( 2 ) annualized straight-line rent is based on the minimum cash rental payments guaranteed under the respective leases , as required under gaap , and excludes contingent rental payments , such as participation rents . ( 3 ) the lease provides for an initial term of 14.7 years and includes six tenant termination options throughout the initial term . the lease term stated above represents the term through the first available termination option , and the annualized straight-line rent amount represents the rent guaranteed through the noncancellable term of the lease . ( 4 ) lease provides for an annual participation rent component based on the gross crop revenues earned on the farm . the rent figure above represents only the minimum cash guaranteed under the lease . ( 5 ) lease provides for an initial term of 8.2 years but also includes an annual tenant termination option should the tenant become physically unable to continue farming operations on the property , effective as of the end of the then-current lease year ( as defined within the lease ) . the lease term stated above represents the term through the first available termination option , and the annualized straight-line rent amount represents the rent guaranteed through the noncancellable term of the lease . ( 6 ) in connection with the acquisition of this property , we also acquired an ownership interest in a related llc , the sole purpose of which is to own and maintain a pipeline conveying water to this and other neighboring properties . our acquired ownership , which equated to a 12.5 % interest in the llc , was valued at approximately $ 280,000 at the time of acquisition and is included within other assets , net on the accompanying consolidated balance sheets . see “ investments in unconsolidated entities ” below for further information on our aggregate ownership interest in this llc . 37 ( 7 ) lease provides for an initial term of 3.1 years but also includes an annual tenant termination option should the tenant become physically unable to continue farming operations on the property , effective as of the end of the then-current lease year ( as defined within the lease ) . the lease term stated above represents the term through the first available termination option , and the annualized straight-line rent amount represents the rent guaranteed through the noncancellable term of the lease . ( 8 ) in connection with the acquisition of this property , we also acquired an ownership interest in a related llc , the sole purpose of which is to own and maintain a pipeline conveying water to this and other neighboring properties . story_separator_special_tag the primary series c offering will terminate on the date ( the “ series c termination date ” ) that is the earlier of either june 1 , 2025 ( unless terminated earlier or extended by our board of directors ) , or the date on which all 20,000,000 shares in the primary series c offering are sold . there is currently no public market for shares of the series c preferred stock ; however , we intend to apply to list the series c preferred stock on nasdaq or another national securities exchange within one calendar year after the series c termination date , though there can be no assurance that a listing will be achieved in such timeframe , or at all . common stock follow-on offering 41 in october 2020 , we completed a public offering of our common stock . the following table summarizes the details of the offering , including the underwriters ' full exercise of the over-allotment option in connection with the offering ( dollars in thousands , except per-share amounts ) : number of shares sold weighted-average offering price per share gross proceeds net proceeds ( 1 ) 1,897,500 $ 14.40 $ 27,324 $ 26,094 ( 1 ) net of underwriter discounts and commissions . at-the-market program on may 12 , 2020 , we terminated the prior atm program ( as defined in note 8 , “ equity—equity issuances—common stock—at-the-market-program , ” within the accompanying notes to our consolidated financial statements ) and entered into new equity distribution agreements with virtu americas , llc , and ladenburg thalmann & co. , inc. ( each a “ sales agent ” ) , under which we may issue and sell , from time to time and through the new sales agents , shares of our common stock having an aggregate offering price of up to $ 100.0 million ( the “ current atm program , ” and collectively with the prior atm program , the “ atm programs ” ) . the following table summarizes the activity under the atm programs from january 1 , 2020 , through the date of this filing ( dollars in thousands ) : number of shares sold weighted-average offering price per share gross proceeds net proceeds ( 1 ) 3,620,706 $ 14.77 $ 53,466 $ 52,930 ( 1 ) net of underwriter commissions and discounts . covid-19 the extent to which the covid-19 pandemic may impact our business , financial condition , liquidity , results of operations , funds from operations , or prospects will depend on numerous evolving factors that we are not be able to predict at this time , including the duration and long-term scope of the pandemic ; the adequate production and distribution of vaccinations ; governmental , business , and individuals ' actions that have been and continue to be taken in response to the pandemic ; the impact on economic activity from the pandemic and actions taken in response ; the effect on our tenants and their farming operations ; the ability of our tenants to make their rental payments ; any closures of our tenants ' operations ; and our ability to secure debt financing , service future debt obligations , or pay distributions to our stockholders . any of these events could materially adversely impact our business , financial condition , liquidity , results of operations , funds from operations , or prospects . during 2020 , we granted short-term rent extensions to two tenants who owed semi-annual rental payments totaling approximately $ 340,000. additional time was granted to these tenants due to delays in payments owed to them from their respective processors , which were primarily caused by the strict government-mandated lockdowns in the state of michigan in response to covid-19 . these rental payments were collected in full during the year ended december 31 , 2020 , and we have not received any further requests from tenants seeking relief as a result of covid-19 ; however , no assurances can be made that we will not receive additional rent deferral or modification requests in the future . libor transition the majority of our debt is at fixed rates , and we currently have very limited exposure to variable-rate debt based upon the london interbank offered rate ( “ libor ” ) , which is anticipated to be phased out during late 2021 or early 2022. libor is currently expected to transition to a new standard rate , the secured overnight financing rate ( “ sofr ” ) , which will incorporate certain overnight repo market data collected from multiple data sets . the current intent is to adjust the sofr to minimize the differences between the interest that a borrower would be paying using libor versus what it will be paying sofr . we are currently monitoring the transition and can not yet assess whether sofr will become a standard rate for variable-rate debt . our lines of credit with metlife and three term loans with rabo ( which are effectively fixed through our entry into interest swap agreements ) are currently based upon one-month libor . as such , we expect we will need to renegotiate these agreements in the future . assuming that sofr replaces libor and is appropriately adjusted , we currently expect the transition to result in a minimal impact to our overall operations . our adviser and administrator we are externally managed pursuant to contractual arrangements with our adviser and our administrator ( both affiliates of ours ) , which collectively employ all of our personnel and pay their salaries , benefits , and general expenses directly . the 42 investment advisory agreement with our adviser that was in effect through march 31 , 2017 , and the current administration agreement with our administrator ( the “ administration agreement ” ) each became effective february 1 , 2013. the advisory agreement with our adviser that was in effect through june 30 , 2019 (

we are leveraging our manufacturing capabilities and know-how by developing , manufacturing and marketing 48 biosimilars through samsung bioepis , our joint venture with samsung biologics co. ltd. ( samsung biologics ) . under our commercial agreement with samsung bioepis , we market and sell benepali , an etanercept biosimilar referencing enbrel , and flixabi , an infliximab biosimilar referencing remicade , in the european union ( e.u . ) . financial highlights diluted earnings per share attributable to biogen inc. were $ 16.93 for 2016 , representing an increase of 10.4 % over the same period in 2015 . as described below under “ results of operations , ” our income from operations for the year ended december 31 , 2016 , reflects the following : total revenues were $ 11,448.8 million for 2016 , representing an increase of 6.4 % over the same period in 2015 . product revenues , net totaled $ 9,817.9 million for 2016 , representing an increase of 6.8 % over the same period in 2015 . this increase was driven by a 9.1 % increase in worldwide tecfidera revenues , a 52.8 % increase in worldwide hemophilia revenues , a 4.1 % increase in worldwide tysabri revenues and revenues from benepali . these increases are partially offset by a 5.8 % decrease in worldwide interferon revenues . product revenues , net for 2016 , compared to the same period in 2015 , were also negatively impacted by a $ 167.8 million decrease in hedge gains recognized under our foreign currency hedging program in comparative periods . revenues from anti-cd20 therapeutic programs totaled $ 1,314.5 million for 2016 , representing a decrease of 1.8 % over the same period in 2015 . other revenues totaled $ 316.4 million for 2016 , representing an increase of 34.0 % from the same period in 2015 . this increase was primarily driven by an increase in other corporate revenues , which includes amounts earned with respect to our contract manufacturing activities . total cost and expenses totaled $ 6,298.4 million for 2016 , representing an increase of 7.2 % , compared to the same period in 2015 . this increase was driven by a $ 454.8 million litigation settlement and license charge and a 19.2 % increase in cost of sales , which includes a charge of $ 45.5 million for accelerated depreciation as a result of the determination to cease manufacturing in cambridge , ma and vacate our biologics manufacturing facility in cambridge , ma and warehouse space in somerville , ma . these increases were partially offset by a 7.8 % decrease in selling , general and administrative expenses and a decrease in restructuring charges . we generated $ 4,522.4 million of net cash flows from operations for 2016 , which were primarily driven by earnings . cash , cash equivalents and marketable securities totaled approximately $ 7,724.5 million as of december 31 , 2016 . during the year ended december 31 , 2016 , we repurchased and retired approximately 3.3 million shares of common stock at a cost of $ 1.0 billion under our share repurchase programs . collaborative and other relationships in may 2016 we entered into a collaboration and alliance with the university of pennsylvania ( upenn ) to advance gene therapy and gene editing technologies . for additional information related to this transaction , please read note 19 , collaborative and other relationships to our consolidated financial statements included in this report . 49 restructuring and cost saving initiatives during the third quarter of 2016 we initiated cost saving measures primarily intended to realign our organizational structure due to the changes in roles and workforce resulting from our decision to spin off our hemophilia business , and to achieve further targeted cost reductions . additionally , in connection with the transaction to sublease our rights to the manufacturing facility in cambridge , ma to brammer bio ma , llc ( brammer ) , certain employees were separated from biogen . for additional information related to our restructuring and cost saving initiatives , please read note 3 , restructuring , business transformation and other cost saving initiatives to our consolidated financial statements included in this report . business environment the biopharmaceutical industry and the markets in which we operate are intensely competitive . many of our competitors are working to develop or have commercialized products similar to those we market or are developing . in addition , the commercialization of certain of our own approved ms products , products of our collaborators and pipeline product candidates may negatively impact future sales of our existing ms products . our products may also face increased competitive pressures from the introduction of generic versions , prodrugs of existing therapeutics or biosimilars of existing products and other technologies , such as gene therapies and bispecific antibodies . in addition , sales of our products are dependent , in large part , on the availability and extent of coverage , pricing and reimbursement from government health administration authorities , private health insurers and other organizations . drug prices are under significant scrutiny in the markets in which our products are prescribed . drug pricing and other health care costs continue to be subject to intense political and societal pressures . for additional information related to our competition and pricing risks that could negatively impact our product sales , please read the “ risk factors ” section of this report . results of operations revenues revenues are summarized as follows : replace_table_token_7_th 50 product revenues product revenues are summarized as follows : replace_table_token_8_th * interferon includes avonex and plegridy . * * percentage not meaningful . multiple sclerosis ( ms ) tecfidera for 2016 compared to 2015 , the increase in u.s. tecfidera revenues was primarily due to price increases , partially offset by higher discounts and allowances and a decrease in unit sales volume of 1 % . story_separator_special_tag for 2015 compared to 2014 , the increase in discounts was primarily driven by our recent product additions , gross price increases and increases in contractual rates contractual adjustments contractual adjustments relate to medicaid and managed care rebates , co-payment assistance ( copay ) , veterans administration ( va ) , public health service ( phs ) discounts , specialty pharmacy program fees and other government rebates or applicable allowances . for 2016 compared to 2015 , the increase in contractual adjustments was primarily due to higher medicaid and other governmental rebates and allowances in the u.s. and managed care rebates , due in part to an increase in gross selling prices . 57 for 2015 compared to 2014 , the increase in contractual adjustments was primarily due to our recent product additions , higher medicaid and other governmental rebates and allowances in the u.s. and managed care rebates as a result of an increase in contracted business and gross prices . returns product return reserves are established for returns made by wholesalers . in accordance with contractual terms , wholesalers are permitted to return product for reasons such as damaged or expired product . the majority of wholesaler returns are due to product expiration . provisions for product returns are recorded in the period the related revenue is recognized , resulting in a reduction to product sales . for 2016 compared to 2015 , and 2015 compared to 2014 , return reserves decreased primarily due to a reduction in return rates based on recent experiences of returned products . for additional information related to our reserves , please read note 4 , reserves for discounts and allowances to our consolidated financial statements included in this report . cost and expenses a summary of total cost and expenses is as follows : replace_table_token_11_th * * percentage not meaningful . 58 cost of sales , excluding amortization of acquired intangible assets ( cost of sales ) product cost of sales for 2016 compared to 2015 , the increase in product cost of sales was primarily driven by increased contract manufacturing shipments and higher unit sales volume related to our biosimilars and hemophilia products , partially offset by favorable production costs and mix of products . product cost of sales for 2016 also reflects the recognition of $ 45.5 million of accelerated depreciation as a result of the determination to cease manufacturing in cambridge , ma and vacate our biologics manufacturing facility in cambridge , ma and warehouse space in somerville , ma . for 2015 compared to 2014 , the increase in product cost of sales was primarily driven by increased contract manufacturing production and higher unit sales volume of our marketed products , including newly launched products . inventory amounts written down as a result of excess , obsolescence , unmarketability or other reasons totaled $ 48.2 million , $ 41.9 million and $ 50.6 million for the years ended december 31 , 2016 , 2015 and 2014 , respectively . royalty cost of sales for 2016 compared to 2015 , the increase in royalty cost of sales was primarily driven by the increase in royalty rates payable to sobi , increased sales of our hemophilia products and higher royalties on sales of avonex and plegridy in the u.s. , partially offset by a decrease in tysabri royalties due to the expiration of certain third party royalties . on june 28 , 2016 , the u.s. patent and trademark office issued to the japanese foundation for cancer research ( jfcr ) a patent related to recombinant interferon-beta protein . this patent , u.s. patent no . 9,376,478 , expires in june 2033. this patent was issued following an interference proceeding between jfcr and us . this patent is relevant to avonex and plegridy , and we will pay royalties in the mid-single digits in relation to this patent during the life of the patent . for 2015 compared to 2014 , the increase in royalty cost of sales was primarily driven by the increase in royalties due to sobi on increased sales of our hemophilia products and an increase in the contractual rate of tysabri contingent payments due to perrigo company plc ( perrigo ) , which is based on the expected level of annual worldwide net sales of tysabri , partially offset by a decrease in tysabri revenues and the expiration of certain third-party royalties related to tysabri . for additional information on our relationship with sobi , please read note 19 , collaborative and other relationships to our consolidated financial statements included in this report . 59 research and development 60 research and development expense incurred in support of our marketed products includes costs associated with product lifecycle management activities including , if applicable , costs associated with the development of new indications for existing products . late stage programs are programs in phase 3 development or in registration stage . early stage programs are programs in phase 1 or phase 2 development . research and discovery represents costs incurred to support our discovery research and translational science efforts . other research and development costs consist of indirect costs incurred in support of overall research and development activities and non-specific programs , including activities that benefit multiple programs , such as management costs as well as depreciation and other facility-based expenses . costs are reflected in the development stage based upon the program status when incurred . therefore , the same program could be reflected in different development stages in the same year . for several of our programs , the research and development activities are part of our collaborative and other relationships . our costs reflect our share of the total costs incurred . for 2016 compared to 2015 , the decrease in research and development expense was primarily related to decreases in costs incurred in connection with our early stage programs , marketed products and other research and development costs . these decreases were partially offset

cash flows the following table summarizes our cash flow activity : replace_table_token_15_th operating activities cash flows from operating activities represent the cash receipts and disbursements related to all of our activities other than investing and financing activities . we expect cash provided from operating activities will continue to be our primary source of funds to finance operating needs and capital expenditures for the foreseeable future . operating cash flow is derived by adjusting our net income for : non-cash operating items such as depreciation and amortization , impairment charges and share-based compensation charges ; 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 results of operations ; and 70 changes associated with the fair value of contingent payments associated with our acquisitions of businesses and payments related to collaborations . for 2016 compared to 2015 , the increase in cash provided by operating activities was primarily driven by higher net income , non-cash charges for depreciation and amortization , a comparative increase in accrued expenses and other liabilities , partially offset by a comparative increase in accounts receivable . for 2015 compared to 2014 , the increase in cash provided by operating activities was primarily driven by higher net income and accounts receivable collections , partially offset by income tax payments . investing activities for 2016 compared to 2015 , the decrease in net cash flows used in investing activities was primarily due to a decrease in net purchases of marketable securities and cash paid for the acquisition of convergence in february 2015 , partially offset by an increase in the contingent consideration related to the fumapharm ag acquisition .

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 flow activity : replace_table_token_15_th operating activities cash flows from operating activities represent the cash receipts and disbursements related to all of our activities other than investing and financing activities . we expect cash provided from operating activities will continue to be our primary source of funds to finance operating needs and capital expenditures for the foreseeable future . operating cash flow is derived by adjusting our net income for : non-cash operating items such as depreciation and amortization , impairment charges and share-based compensation charges ; 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 results of operations ; and 70 changes associated with the fair value of contingent payments associated with our acquisitions of businesses and payments related to collaborations . for 2016 compared to 2015 , the increase in cash provided by operating activities was primarily driven by higher net income , non-cash charges for depreciation and amortization , a comparative increase in accrued expenses and other liabilities , partially offset by a comparative increase in accounts receivable . for 2015 compared to 2014 , the increase in cash provided by operating activities was primarily driven by higher net income and accounts receivable collections , partially offset by income tax payments . investing activities for 2016 compared to 2015 , the decrease in net cash flows used in investing activities was primarily due to a decrease in net purchases of marketable securities and cash paid for the acquisition of convergence in february 2015 , partially offset by an increase in the contingent consideration related to the fumapharm ag acquisition . ``` Suspicious Activity Report : we are leveraging our manufacturing capabilities and know-how by developing , manufacturing and marketing 48 biosimilars through samsung bioepis , our joint venture with samsung biologics co. ltd. ( samsung biologics ) . under our commercial agreement with samsung bioepis , we market and sell benepali , an etanercept biosimilar referencing enbrel , and flixabi , an infliximab biosimilar referencing remicade , in the european union ( e.u . ) . financial highlights diluted earnings per share attributable to biogen inc. were $ 16.93 for 2016 , representing an increase of 10.4 % over the same period in 2015 . as described below under “ results of operations , ” our income from operations for the year ended december 31 , 2016 , reflects the following : total revenues were $ 11,448.8 million for 2016 , representing an increase of 6.4 % over the same period in 2015 . product revenues , net totaled $ 9,817.9 million for 2016 , representing an increase of 6.8 % over the same period in 2015 . this increase was driven by a 9.1 % increase in worldwide tecfidera revenues , a 52.8 % increase in worldwide hemophilia revenues , a 4.1 % increase in worldwide tysabri revenues and revenues from benepali . these increases are partially offset by a 5.8 % decrease in worldwide interferon revenues . product revenues , net for 2016 , compared to the same period in 2015 , were also negatively impacted by a $ 167.8 million decrease in hedge gains recognized under our foreign currency hedging program in comparative periods . revenues from anti-cd20 therapeutic programs totaled $ 1,314.5 million for 2016 , representing a decrease of 1.8 % over the same period in 2015 . other revenues totaled $ 316.4 million for 2016 , representing an increase of 34.0 % from the same period in 2015 . this increase was primarily driven by an increase in other corporate revenues , which includes amounts earned with respect to our contract manufacturing activities . total cost and expenses totaled $ 6,298.4 million for 2016 , representing an increase of 7.2 % , compared to the same period in 2015 . this increase was driven by a $ 454.8 million litigation settlement and license charge and a 19.2 % increase in cost of sales , which includes a charge of $ 45.5 million for accelerated depreciation as a result of the determination to cease manufacturing in cambridge , ma and vacate our biologics manufacturing facility in cambridge , ma and warehouse space in somerville , ma . these increases were partially offset by a 7.8 % decrease in selling , general and administrative expenses and a decrease in restructuring charges . we generated $ 4,522.4 million of net cash flows from operations for 2016 , which were primarily driven by earnings . cash , cash equivalents and marketable securities totaled approximately $ 7,724.5 million as of december 31 , 2016 . during the year ended december 31 , 2016 , we repurchased and retired approximately 3.3 million shares of common stock at a cost of $ 1.0 billion under our share repurchase programs . collaborative and other relationships in may 2016 we entered into a collaboration and alliance with the university of pennsylvania ( upenn ) to advance gene therapy and gene editing technologies . for additional information related to this transaction , please read note 19 , collaborative and other relationships to our consolidated financial statements included in this report . 49 restructuring and cost saving initiatives during the third quarter of 2016 we initiated cost saving measures primarily intended to realign our organizational structure due to the changes in roles and workforce resulting from our decision to spin off our hemophilia business , and to achieve further targeted cost reductions . additionally , in connection with the transaction to sublease our rights to the manufacturing facility in cambridge , ma to brammer bio ma , llc ( brammer ) , certain employees were separated from biogen . for additional information related to our restructuring and cost saving initiatives , please read note 3 , restructuring , business transformation and other cost saving initiatives to our consolidated financial statements included in this report . business environment the biopharmaceutical industry and the markets in which we operate are intensely competitive . many of our competitors are working to develop or have commercialized products similar to those we market or are developing . in addition , the commercialization of certain of our own approved ms products , products of our collaborators and pipeline product candidates may negatively impact future sales of our existing ms products . our products may also face increased competitive pressures from the introduction of generic versions , prodrugs of existing therapeutics or biosimilars of existing products and other technologies , such as gene therapies and bispecific antibodies . in addition , sales of our products are dependent , in large part , on the availability and extent of coverage , pricing and reimbursement from government health administration authorities , private health insurers and other organizations . drug prices are under significant scrutiny in the markets in which our products are prescribed . drug pricing and other health care costs continue to be subject to intense political and societal pressures . for additional information related to our competition and pricing risks that could negatively impact our product sales , please read the “ risk factors ” section of this report . results of operations revenues revenues are summarized as follows : replace_table_token_7_th 50 product revenues product revenues are summarized as follows : replace_table_token_8_th * interferon includes avonex and plegridy . * * percentage not meaningful . multiple sclerosis ( ms ) tecfidera for 2016 compared to 2015 , the increase in u.s. tecfidera revenues was primarily due to price increases , partially offset by higher discounts and allowances and a decrease in unit sales volume of 1 % . story_separator_special_tag for 2015 compared to 2014 , the increase in discounts was primarily driven by our recent product additions , gross price increases and increases in contractual rates contractual adjustments contractual adjustments relate to medicaid and managed care rebates , co-payment assistance ( copay ) , veterans administration ( va ) , public health service ( phs ) discounts , specialty pharmacy program fees and other government rebates or applicable allowances . for 2016 compared to 2015 , the increase in contractual adjustments was primarily due to higher medicaid and other governmental rebates and allowances in the u.s. and managed care rebates , due in part to an increase in gross selling prices . 57 for 2015 compared to 2014 , the increase in contractual adjustments was primarily due to our recent product additions , higher medicaid and other governmental rebates and allowances in the u.s. and managed care rebates as a result of an increase in contracted business and gross prices . returns product return reserves are established for returns made by wholesalers . in accordance with contractual terms , wholesalers are permitted to return product for reasons such as damaged or expired product . the majority of wholesaler returns are due to product expiration . provisions for product returns are recorded in the period the related revenue is recognized , resulting in a reduction to product sales . for 2016 compared to 2015 , and 2015 compared to 2014 , return reserves decreased primarily due to a reduction in return rates based on recent experiences of returned products . for additional information related to our reserves , please read note 4 , reserves for discounts and allowances to our consolidated financial statements included in this report . cost and expenses a summary of total cost and expenses is as follows : replace_table_token_11_th * * percentage not meaningful . 58 cost of sales , excluding amortization of acquired intangible assets ( cost of sales ) product cost of sales for 2016 compared to 2015 , the increase in product cost of sales was primarily driven by increased contract manufacturing shipments and higher unit sales volume related to our biosimilars and hemophilia products , partially offset by favorable production costs and mix of products . product cost of sales for 2016 also reflects the recognition of $ 45.5 million of accelerated depreciation as a result of the determination to cease manufacturing in cambridge , ma and vacate our biologics manufacturing facility in cambridge , ma and warehouse space in somerville , ma . for 2015 compared to 2014 , the increase in product cost of sales was primarily driven by increased contract manufacturing production and higher unit sales volume of our marketed products , including newly launched products . inventory amounts written down as a result of excess , obsolescence , unmarketability or other reasons totaled $ 48.2 million , $ 41.9 million and $ 50.6 million for the years ended december 31 , 2016 , 2015 and 2014 , respectively . royalty cost of sales for 2016 compared to 2015 , the increase in royalty cost of sales was primarily driven by the increase in royalty rates payable to sobi , increased sales of our hemophilia products and higher royalties on sales of avonex and plegridy in the u.s. , partially offset by a decrease in tysabri royalties due to the expiration of certain third party royalties . on june 28 , 2016 , the u.s. patent and trademark office issued to the japanese foundation for cancer research ( jfcr ) a patent related to recombinant interferon-beta protein . this patent , u.s. patent no . 9,376,478 , expires in june 2033. this patent was issued following an interference proceeding between jfcr and us . this patent is relevant to avonex and plegridy , and we will pay royalties in the mid-single digits in relation to this patent during the life of the patent . for 2015 compared to 2014 , the increase in royalty cost of sales was primarily driven by the increase in royalties due to sobi on increased sales of our hemophilia products and an increase in the contractual rate of tysabri contingent payments due to perrigo company plc ( perrigo ) , which is based on the expected level of annual worldwide net sales of tysabri , partially offset by a decrease in tysabri revenues and the expiration of certain third-party royalties related to tysabri . for additional information on our relationship with sobi , please read note 19 , collaborative and other relationships to our consolidated financial statements included in this report . 59 research and development 60 research and development expense incurred in support of our marketed products includes costs associated with product lifecycle management activities including , if applicable , costs associated with the development of new indications for existing products . late stage programs are programs in phase 3 development or in registration stage . early stage programs are programs in phase 1 or phase 2 development . research and discovery represents costs incurred to support our discovery research and translational science efforts . other research and development costs consist of indirect costs incurred in support of overall research and development activities and non-specific programs , including activities that benefit multiple programs , such as management costs as well as depreciation and other facility-based expenses . costs are reflected in the development stage based upon the program status when incurred . therefore , the same program could be reflected in different development stages in the same year . for several of our programs , the research and development activities are part of our collaborative and other relationships . our costs reflect our share of the total costs incurred . for 2016 compared to 2015 , the decrease in research and development expense was primarily related to decreases in costs incurred in connection with our early stage programs , marketed products and other research and development costs . these decreases were partially offset

see “ risk factors — risks relating to our 71 business — the covid-19 pandemic could materially adversely affect our business , operating results , financial condition and prospects ” for additional information . key factors affecting our performance our historical financial performance has been , and we expect our financial performance in the future to be , driven by our ability to : attract new customers . our ability to attract new customers is dependent upon a number of factors , including the effectiveness of our pricing and solutions , the features and pricing of our competitors ' offerings , the effectiveness of our marketing efforts , the effectiveness of our channel partners in selling , marketing and deploying our software solutions and the growth of the market for apple devices and services for smbs and enterprises . sustaining our growth requires continued adoption of our platform by new customers . we intend to continue to invest in building brand awareness as we further penetrate our addressable markets . we intend to expand our customer base by continuing to make significant and targeted investments in our direct sales and marketing to attract new customers and to drive broader awareness of our software solutions . expand within our customer base . our ability to increase revenue within our existing customer base is dependent upon a number of factors , including their satisfaction with our software solutions and support , the features and pricing of our competitors ' offerings and our ability to effectively enhance our platform by developing new products and features and addressing additional use cases . often our customers will begin with a small deployment and then later expand their usage more broadly within the enterprise as they realize the benefits of our platform . we believe that our “ land and expand ” business model allows us to efficiently increase revenue from our existing customer base . we intend to continue to invest in enhancing awareness of our software solutions , creating additional use cases , and developing more products , features , and functionality , which we believe are important factors to expand usage of our software solutions by our existing customer base . we believe our ability to retain and expand usage of our software solutions by our existing customer base is evidenced by our dollar-based net retention rate . sustain product innovation and technology leadership . our success is dependent on our ability to sustain product innovation and technology leadership in order to maintain our competitive advantage . we believe that we have built a highly differentiated platform and we intend to further extend the adoption of our platform through additional innovation . while sales of subscriptions to our jamf pro product account for most of our revenue , we intend to continue to invest in building additional products , features and functionality that expand our capabilities and facilitate the extension of our platform to new use cases . our future success is dependent on our ability to successfully develop , market and sell additional products to both new and existing customers . for example , in 2018 , we introduced jamf connect to provide users with a seamless connection to corporate resources using a single identity and in 2019 we introduced jamf protect to extend apple 's security and privacy model to enterprise teams by creating unprecedented visibility into macos fleets through customized remote monitoring and threat detection and prevention . continue investment in growth . our ability to effectively invest for growth is dependent upon a number of factors , including our ability to offset anticipated increases in operating expenses with revenue growth , our ability to spend our research and development budget efficiently or effectively on compelling innovation and technologies , our ability to accurately predict costs and our ability to maintain our corporate culture as our headcount expands . we plan to continue investing in our business so we can capitalize on our market opportunity . we intend to grow our sales team to target expansion within our midmarket and enterprise customers and to attract new customers . we expect to continue to make focused investments in marketing to drive brand awareness and enhance the effectiveness of our customer acquisition model . we also intend to continue to add headcount to our research and development team to develop new and improved products , features and functionality . although these investments may increase our operating expenses and , as a result , adversely affect our operating results in the near term , we believe they will contribute to our long-term growth . continue international expansion . our international growth in any region will depend on our ability to effectively implement our business processes and go-to-market strategy , our ability to adapt to market or cultural differences , the general competitive landscape , our ability to invest in our sales and marketing channels , the maturity and 72 growth trajectory of apple devices and services by region and our brand awareness and perception . we plan to continue making investments in our international sales and marketing channels to take advantage of this market opportunity while refining our go-to-market approach based on local market dynamics . while we believe global demand for our platform will increase as international market awareness of jamf grows , our ability to conduct our operations internationally will require considerable management attention and resources and is subject to the particular challenges of supporting a growing business in an environment of multiple languages , cultures , customs , legal and regulatory systems ( including with respect to data transfer and privacy ) , alternative dispute systems and commercial markets . in addition , global demand for our platform and the growth of our international operations is dependent upon the rate of market adoption of apple products in international markets . enhance our offerings via our partner network . story_separator_special_tag cost of subscription revenue consists primarily of employee compensation costs for employees associated with supporting our subscription and support and maintenance arrangements , our customer success function , and third-party hosting fees related to our cloud services . employee compensation and related costs include cash compensation and benefits to employees and associated overhead costs . we expect cost of subscription revenue to increase in absolute dollars , but to remain relatively consistent as a percentage of subscription revenue , relative to the extent of the growth of our business . cost of services . cost of services revenue consists primarily of employee compensation costs directly associated with delivery of professional services and training , costs of third-party integrators and other associated overhead costs . we expect cost of services revenue to decrease in absolute dollars relative to the decrease of our services business . gross profit and gross margin gross profit , or revenue less cost of revenue , has been and will continue to be affected by various factors , including the mix of cloud-based subscription customers , the costs associated with supporting our cloud solution , the extent to which we expand our customer support team and the extent to which we can increase the efficiency of our technology and infrastructure though technological improvements . we expect our gross profit to increase in absolute dollars . we expect our gross margin to increase over time as compared to the rates we delivered prior to the impact of covid , as subscription revenue becomes a larger proportion of revenue , and as we increase average arr per device . operating expenses sales and marketing . sales and marketing expenses consist primarily of employee compensation costs , sales commissions , costs of general marketing and promotional activities , travel-related expenses and allocated overhead . sales commissions earned by our sales force are deferred and amortized over the period of benefit , which is estimated to be 5 years . we expect our sales and marketing expenses to increase on an absolute dollar basis as we expand our sales personnel and marketing efforts . research and development . research and development expenses consist primarily of personnel costs and allocated overhead . we will continue to invest in innovation so that we can offer our customers new solutions and enhance our existing solutions . see “ business — research and development ” for more information . we expect such investment to increase on an absolute dollar basis as our business grows . general and administrative . general and administrative expenses consist primarily of employee compensation costs for corporate personnel , such as those in our executive , human resource , facilities , accounting and finance , legal and compliance , and information technology departments . in addition , general and administrative expenses include acquisition-related expenses which primarily consist of third-party expenses , such as legal and accounting fees , and adjustments to contingent consideration . general and administrative expenses also include costs incurred in secondary offerings . we expect our general and administrative expenses to increase on a dollar basis as our business grows , particularly as we continue to invest in technology infrastructure and expand our operations globally . also , we incur additional general and administrative expenses as a result of operating as a public company , including costs to comply with the rules and regulations applicable to companies listed on a national securities exchange , costs related to compliance and reporting obligations pursuant to the rules and regulations of the sec , and increased expenses for insurance , investor relations and accounting expenses . amortization . amortization expense primarily consists of amortization of acquired trademarks , customer relationships and developed technology . 79 interest expense , net interest expense , net consists primarily of interest payments on our outstanding borrowings under our credit facilities as well as the amortization of associated deferred financing costs . see “ liquidity and capital resources — credit facilities . ” story_separator_special_tag to support our continued growth , $ 6.1 million in additional expenses as a result of operating as a public company , a $ 5.2 million increase in acquisition-related expenses , a $ 1.2 million increase in stock-based compensation expense and a $ 0.8 million increase in allowance for bad debt and returns , partially offset by a $ 1.0 million reduction to contingent consideration . the remainder of the cost increase is primarily related to costs to support the growth in business and headcount . general and administrative . general and administrative expenses increased by $ 9.7 million , or 44 % , for the year ended december 31 , 2019 compared to the year ended december 31 , 2018. the increase was primarily due to an increase of $ 3.5 million in employee compensation costs primarily related to higher headcount to support our continued growth and an increase of $ 3.0 million in costs of professional services comprised primarily of legal and accounting fees driven by the 2019 acquisitions of zuludesk and digita and general growth in the company . in addition , charitable 85 contributions increased by $ 0.9 million . the remainder of the cost increase related to costs to support the growth in business and headcount of approximately $ 2.3 million . amortization expense . amortization expense increased by $ 0.2 million , or 1 % , for the year ended december 31 , 20120 compared to the year ended december 31 , 2019. the increase was due to additional intangibles that were acquired in 2020 and july 2019. amortization expense . amortization expense increased by $ 0.9 million , or 4 % , for the year ended december 31 , 2019 compared to the year ended december 31 , 2018. the increase was due to additional intangibles that were acquired in 2019. interest expense , net ​ replace_table_token_12_th ​ interest expense , net decreased by $ 10.7 million , or 50 % , for the year

loss on extinguishment of debt upon closing of the ipo , we repaid $ 205.0 million of the principal amount of the prior term loan facility and recorded a loss on extinguishment of debt of $ 5.2 million for the prepayment penalty and write off of debt issuance costs . foreign currency transaction gain ( loss ) our reporting currency is the u.s. dollar . the functional currency of all our international operations is the u.s. dollar . the assets , liabilities , revenues and expenses of our foreign operations are remeasured in accordance with asc topic 830 , foreign currency matters . remeasurement adjustments are recorded as foreign currency transaction gains ( losses ) in the consolidated statement of operations . income tax benefit income tax benefit consists primarily of income taxes related to u.s. federal and state income taxes and income taxes in foreign jurisdictions in which we conduct business . other income other income consists primarily of sublease rental income . the sublease was terminated in the second quarter of 2020 . 80 results of operations the following table sets forth our consolidated statements of operations data for the periods indicated : ​ replace_table_token_4_th ​ ( 1 ) includes stock-based compensation as follows : replace_table_token_5_th ​ 81 ( 2 ) includes depreciation expense as follows : replace_table_token_6_th ​ ( 3 ) includes acquisition-related expense as follows : replace_table_token_7_th ​ general and administrative also includes a digita earnout benefit ( expense ) of $ 1.0 million and $ ( 0.2 ) million for the years ended december 31 , 2020 and 2019 , respectively . 82 the following table sets forth our consolidated statements of operations data expressed as a percentage of total revenue for the periods indicated : ​ replace_table_token_8_th ​ comparison of the years ended december 31 , 2020 , 2019 and 2018 revenue ​ replace_table_token_9_th ​ total revenue increased by $ 65.4 million , or 32 % , for the year ended december 31 , 2020 compared to the year ended december 31 , 2019. overall revenue increased as a result of higher subscription revenue , partially offset by lower services and license revenue .

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 upon closing of the ipo , we repaid $ 205.0 million of the principal amount of the prior term loan facility and recorded a loss on extinguishment of debt of $ 5.2 million for the prepayment penalty and write off of debt issuance costs . foreign currency transaction gain ( loss ) our reporting currency is the u.s. dollar . the functional currency of all our international operations is the u.s. dollar . the assets , liabilities , revenues and expenses of our foreign operations are remeasured in accordance with asc topic 830 , foreign currency matters . remeasurement adjustments are recorded as foreign currency transaction gains ( losses ) in the consolidated statement of operations . income tax benefit income tax benefit consists primarily of income taxes related to u.s. federal and state income taxes and income taxes in foreign jurisdictions in which we conduct business . other income other income consists primarily of sublease rental income . the sublease was terminated in the second quarter of 2020 . 80 results of operations the following table sets forth our consolidated statements of operations data for the periods indicated : ​ replace_table_token_4_th ​ ( 1 ) includes stock-based compensation as follows : replace_table_token_5_th ​ 81 ( 2 ) includes depreciation expense as follows : replace_table_token_6_th ​ ( 3 ) includes acquisition-related expense as follows : replace_table_token_7_th ​ general and administrative also includes a digita earnout benefit ( expense ) of $ 1.0 million and $ ( 0.2 ) million for the years ended december 31 , 2020 and 2019 , respectively . 82 the following table sets forth our consolidated statements of operations data expressed as a percentage of total revenue for the periods indicated : ​ replace_table_token_8_th ​ comparison of the years ended december 31 , 2020 , 2019 and 2018 revenue ​ replace_table_token_9_th ​ total revenue increased by $ 65.4 million , or 32 % , for the year ended december 31 , 2020 compared to the year ended december 31 , 2019. overall revenue increased as a result of higher subscription revenue , partially offset by lower services and license revenue . ``` Suspicious Activity Report : see “ risk factors — risks relating to our 71 business — the covid-19 pandemic could materially adversely affect our business , operating results , financial condition and prospects ” for additional information . key factors affecting our performance our historical financial performance has been , and we expect our financial performance in the future to be , driven by our ability to : attract new customers . our ability to attract new customers is dependent upon a number of factors , including the effectiveness of our pricing and solutions , the features and pricing of our competitors ' offerings , the effectiveness of our marketing efforts , the effectiveness of our channel partners in selling , marketing and deploying our software solutions and the growth of the market for apple devices and services for smbs and enterprises . sustaining our growth requires continued adoption of our platform by new customers . we intend to continue to invest in building brand awareness as we further penetrate our addressable markets . we intend to expand our customer base by continuing to make significant and targeted investments in our direct sales and marketing to attract new customers and to drive broader awareness of our software solutions . expand within our customer base . our ability to increase revenue within our existing customer base is dependent upon a number of factors , including their satisfaction with our software solutions and support , the features and pricing of our competitors ' offerings and our ability to effectively enhance our platform by developing new products and features and addressing additional use cases . often our customers will begin with a small deployment and then later expand their usage more broadly within the enterprise as they realize the benefits of our platform . we believe that our “ land and expand ” business model allows us to efficiently increase revenue from our existing customer base . we intend to continue to invest in enhancing awareness of our software solutions , creating additional use cases , and developing more products , features , and functionality , which we believe are important factors to expand usage of our software solutions by our existing customer base . we believe our ability to retain and expand usage of our software solutions by our existing customer base is evidenced by our dollar-based net retention rate . sustain product innovation and technology leadership . our success is dependent on our ability to sustain product innovation and technology leadership in order to maintain our competitive advantage . we believe that we have built a highly differentiated platform and we intend to further extend the adoption of our platform through additional innovation . while sales of subscriptions to our jamf pro product account for most of our revenue , we intend to continue to invest in building additional products , features and functionality that expand our capabilities and facilitate the extension of our platform to new use cases . our future success is dependent on our ability to successfully develop , market and sell additional products to both new and existing customers . for example , in 2018 , we introduced jamf connect to provide users with a seamless connection to corporate resources using a single identity and in 2019 we introduced jamf protect to extend apple 's security and privacy model to enterprise teams by creating unprecedented visibility into macos fleets through customized remote monitoring and threat detection and prevention . continue investment in growth . our ability to effectively invest for growth is dependent upon a number of factors , including our ability to offset anticipated increases in operating expenses with revenue growth , our ability to spend our research and development budget efficiently or effectively on compelling innovation and technologies , our ability to accurately predict costs and our ability to maintain our corporate culture as our headcount expands . we plan to continue investing in our business so we can capitalize on our market opportunity . we intend to grow our sales team to target expansion within our midmarket and enterprise customers and to attract new customers . we expect to continue to make focused investments in marketing to drive brand awareness and enhance the effectiveness of our customer acquisition model . we also intend to continue to add headcount to our research and development team to develop new and improved products , features and functionality . although these investments may increase our operating expenses and , as a result , adversely affect our operating results in the near term , we believe they will contribute to our long-term growth . continue international expansion . our international growth in any region will depend on our ability to effectively implement our business processes and go-to-market strategy , our ability to adapt to market or cultural differences , the general competitive landscape , our ability to invest in our sales and marketing channels , the maturity and 72 growth trajectory of apple devices and services by region and our brand awareness and perception . we plan to continue making investments in our international sales and marketing channels to take advantage of this market opportunity while refining our go-to-market approach based on local market dynamics . while we believe global demand for our platform will increase as international market awareness of jamf grows , our ability to conduct our operations internationally will require considerable management attention and resources and is subject to the particular challenges of supporting a growing business in an environment of multiple languages , cultures , customs , legal and regulatory systems ( including with respect to data transfer and privacy ) , alternative dispute systems and commercial markets . in addition , global demand for our platform and the growth of our international operations is dependent upon the rate of market adoption of apple products in international markets . enhance our offerings via our partner network . story_separator_special_tag cost of subscription revenue consists primarily of employee compensation costs for employees associated with supporting our subscription and support and maintenance arrangements , our customer success function , and third-party hosting fees related to our cloud services . employee compensation and related costs include cash compensation and benefits to employees and associated overhead costs . we expect cost of subscription revenue to increase in absolute dollars , but to remain relatively consistent as a percentage of subscription revenue , relative to the extent of the growth of our business . cost of services . cost of services revenue consists primarily of employee compensation costs directly associated with delivery of professional services and training , costs of third-party integrators and other associated overhead costs . we expect cost of services revenue to decrease in absolute dollars relative to the decrease of our services business . gross profit and gross margin gross profit , or revenue less cost of revenue , has been and will continue to be affected by various factors , including the mix of cloud-based subscription customers , the costs associated with supporting our cloud solution , the extent to which we expand our customer support team and the extent to which we can increase the efficiency of our technology and infrastructure though technological improvements . we expect our gross profit to increase in absolute dollars . we expect our gross margin to increase over time as compared to the rates we delivered prior to the impact of covid , as subscription revenue becomes a larger proportion of revenue , and as we increase average arr per device . operating expenses sales and marketing . sales and marketing expenses consist primarily of employee compensation costs , sales commissions , costs of general marketing and promotional activities , travel-related expenses and allocated overhead . sales commissions earned by our sales force are deferred and amortized over the period of benefit , which is estimated to be 5 years . we expect our sales and marketing expenses to increase on an absolute dollar basis as we expand our sales personnel and marketing efforts . research and development . research and development expenses consist primarily of personnel costs and allocated overhead . we will continue to invest in innovation so that we can offer our customers new solutions and enhance our existing solutions . see “ business — research and development ” for more information . we expect such investment to increase on an absolute dollar basis as our business grows . general and administrative . general and administrative expenses consist primarily of employee compensation costs for corporate personnel , such as those in our executive , human resource , facilities , accounting and finance , legal and compliance , and information technology departments . in addition , general and administrative expenses include acquisition-related expenses which primarily consist of third-party expenses , such as legal and accounting fees , and adjustments to contingent consideration . general and administrative expenses also include costs incurred in secondary offerings . we expect our general and administrative expenses to increase on a dollar basis as our business grows , particularly as we continue to invest in technology infrastructure and expand our operations globally . also , we incur additional general and administrative expenses as a result of operating as a public company , including costs to comply with the rules and regulations applicable to companies listed on a national securities exchange , costs related to compliance and reporting obligations pursuant to the rules and regulations of the sec , and increased expenses for insurance , investor relations and accounting expenses . amortization . amortization expense primarily consists of amortization of acquired trademarks , customer relationships and developed technology . 79 interest expense , net interest expense , net consists primarily of interest payments on our outstanding borrowings under our credit facilities as well as the amortization of associated deferred financing costs . see “ liquidity and capital resources — credit facilities . ” story_separator_special_tag to support our continued growth , $ 6.1 million in additional expenses as a result of operating as a public company , a $ 5.2 million increase in acquisition-related expenses , a $ 1.2 million increase in stock-based compensation expense and a $ 0.8 million increase in allowance for bad debt and returns , partially offset by a $ 1.0 million reduction to contingent consideration . the remainder of the cost increase is primarily related to costs to support the growth in business and headcount . general and administrative . general and administrative expenses increased by $ 9.7 million , or 44 % , for the year ended december 31 , 2019 compared to the year ended december 31 , 2018. the increase was primarily due to an increase of $ 3.5 million in employee compensation costs primarily related to higher headcount to support our continued growth and an increase of $ 3.0 million in costs of professional services comprised primarily of legal and accounting fees driven by the 2019 acquisitions of zuludesk and digita and general growth in the company . in addition , charitable 85 contributions increased by $ 0.9 million . the remainder of the cost increase related to costs to support the growth in business and headcount of approximately $ 2.3 million . amortization expense . amortization expense increased by $ 0.2 million , or 1 % , for the year ended december 31 , 20120 compared to the year ended december 31 , 2019. the increase was due to additional intangibles that were acquired in 2020 and july 2019. amortization expense . amortization expense increased by $ 0.9 million , or 4 % , for the year ended december 31 , 2019 compared to the year ended december 31 , 2018. the increase was due to additional intangibles that were acquired in 2019. interest expense , net ​ replace_table_token_12_th ​ interest expense , net decreased by $ 10.7 million , or 50 % , for the year

our new vehicle unit volume and new vehicle gross profit on a per vehicle retailed ( “ pvr ” ) basis were adversely impacted by certain manufacturers ' disruptive marketing and sales incentive programs , which are based upon store-level growth targets established by those manufacturers , and which result in multi-tier pricing . if those manufacturers continue to use such incentive programs or if other manufacturers adopt similar incentive programs , our operating results could continue to be adversely impacted . the number of recent-model-year vehicles in operation is growing due to increases in the annual rate of new vehicle sales in the united states since 2009. the growth in that portion of our service base , together with our customer retention efforts , has benefited the customer-pay service and warranty components of our parts and service business , and we believe that it will continue to benefit those components for the next several years . while the number of older vehicles in operation 22 has declined in recent years and is expected to continue to decline over the next few years , we believe that overall our parts and service business will benefit from the mix shift in our service base toward newer vehicles . results of operations we had net income from continuing operations of $ 431.7 million and diluted earnings per share of $ 4.16 in 2016 , as compared to net income from continuing operations of $ 443.7 million and diluted earnings per share of $ 3.90 in 2015 , and net income from continuing operations of $ 419.8 million and diluted earnings per share of $ 3.53 in 2014 . our retail new vehicle unit sales were down slightly in 2016 as compared to 2015. the disruptive manufacturer marketing and sales incentive programs discussed above under “ market conditions ” had a negative impact on our new vehicle unit volume and gross profit pvr . new vehicle gross profit pvr compression was partially offset by continued strength in finance and insurance gross profit pvr . used vehicle unit volume and gross profit were adversely impacted by the takata airbag inflator recall discussed below . our total gross profit for 2016 increased 2 % , as compared to 2015 , primarily due to the acquisitions we completed in 2016 and 2015 and an increase in parts and service gross profit . net income from continuing operations benefited from net after-tax gains related to business/property dispositions ( net of property impairments ) of $ 30.1 million in 2016 , $ 11.1 million in 2015 , and $ 7.7 million in 2014 , as well as net after-tax gains related to legal settlements of $ 8.9 million in 2016 and $ 2.5 million in 2014. see “ other income , net ” below . strategic initiatives in 2013 , we launched the autonation retail brand from coast to coast . during 2015 , that branding effort was extended to autonation express and the autonation vehicle protection plan . we recently announced the next phase of our comprehensive , customer-focused brand extension strategy , which includes : autonation usa stand-alone used vehicle sales and service centers , with 25 potential sites identified , five of which are expected to open in 2017 , autonation branded parts and accessories , the launch of which began in the third quarter of 2016 , and which will be expanded over the next several years , the expansion of autonation branded collision centers , which includes the unification of our collision centers under the autonation retail brand and plans to open or acquire at least 18 new collision centers over the next several years , and the expansion of autonation branded automotive auctions , which , as announced in october 2016 , includes plans to open four additional automotive auctions by the end of 2018. we expect that these initiatives will expand and strengthen the autonation retail brand , improve the customer experience , provide new growth opportunities , and enable us to expand our footprint in our core and other markets . we expect that our investments in this phase of our brand extension roll-out , which may exceed $ 500 million in the aggregate , will continue for the next several years . the roll-out of these strategic initiatives may be impacted by a number of variables , including customer adoption , market conditions , and our ability to identify , acquire , and build out suitable locations in a timely manner . see “ risk factors ” in part i , item 1a of this form 10-k. in connection with our brand extension strategy , we also launched a one price used vehicle sales model during the second half of 2016. the one price model is planned to be fully implemented in all of o ur stores by the end of the second quarter of 2017. takata airbag inflator recall used vehicle unit volume and gross profit in 2016 were adversely impacted by the takata airbag inflator recall , the largest and most complex safety recall in u.s. automotive history . this recall has been disruptive to our business , as the vehicle inventory subject to this recall has been placed on a retail sales-hold by several manufacturers until parts become available to replace the defective airbag inflators . certain manufacturers provide financial support for select vehicles that are on a retail sales-hold as a result of the recall , which serves to reduce our costs associated with those vehicles . we can not predict when or how many replacement parts will become available , the number of additional affected vehicles that we will 23 acquire through trade-ins , or the amount of financial support we will receive from the manufacturers of such vehicles in the future , and this recall may continue to adversely impact our business . story_separator_special_tag 27 reported operating data years ended december 31 , ( $ in millions , except per vehicle data ) 2016 vs. 2015 2015 vs. 2014 2016 2015 variance favorable / ( unfavorable ) % variance 2014 variance favorable / ( unfavorable ) % variance revenue : new vehicle $ 12,255.8 $ 11,995.0 $ 260.8 2.2 $ 10,972.2 $ 1,022.8 9.3 retail used vehicle 4,481.7 4,370.3 111.4 2.5 3,988.9 381.4 9.6 wholesale 513.6 398.4 115.2 28.9 396.8 1.6 0.4 used vehicle 4,995.3 4,768.7 226.6 4.8 4,385.7 383.0 8.7 finance and insurance , net 894.6 868.7 25.9 3.0 750.8 117.9 15.7 total variable operations ( 1 ) 18,145.7 17,632.4 513.3 2.9 16,108.7 1,523.7 9.5 parts and service 3,321.4 3,082.8 238.6 7.7 2,822.5 260.3 9.2 other 141.9 146.8 ( 4.9 ) 177.6 ( 30.8 ) total revenue $ 21,609.0 $ 20,862.0 $ 747.0 3.6 $ 19,108.8 $ 1,753.2 9.2 gross profit : new vehicle $ 635.8 $ 673.1 $ ( 37.3 ) ( 5.5 ) $ 650.1 $ 23.0 3.5 retail used vehicle 334.9 358.4 ( 23.5 ) ( 6.6 ) 363.2 ( 4.8 ) ( 1.3 ) wholesale ( 17.3 ) ( 4.7 ) ( 12.6 ) ( 2.6 ) ( 2.1 ) used vehicle 317.6 353.7 ( 36.1 ) ( 10.2 ) 360.6 ( 6.9 ) ( 1.9 ) finance and insurance 894.6 868.7 25.9 3.0 750.8 117.9 15.7 total variable operations ( 1 ) 1,848.0 1,895.5 ( 47.5 ) ( 2.5 ) 1,761.5 134.0 7.6 parts and service 1,434.7 1,338.0 96.7 7.2 1,196.6 141.4 11.8 other 30.5 28.0 2.5 30.6 ( 2.6 ) total gross profit 3,313.2 3,261.5 51.7 1.6 2,988.7 272.8 9.1 selling , general , and administrative expenses 2,349.4 2,263.5 ( 85.9 ) ( 3.8 ) 2,079.6 ( 183.9 ) ( 8.8 ) depreciation and amortization 143.4 127.4 ( 16.0 ) 106.9 ( 20.5 ) franchise rights impairment — 15.4 15.4 — ( 15.4 ) other income , net ( 69.1 ) ( 17.9 ) 51.2 ( 18.6 ) ( 0.7 ) operating income 889.5 873.1 16.4 1.9 820.8 52.3 6.4 non-operating income ( expense ) items : floorplan interest expense ( 76.5 ) ( 58.3 ) ( 18.2 ) ( 53.3 ) ( 5.0 ) other interest expense ( 115.5 ) ( 90.9 ) ( 24.6 ) ( 86.7 ) ( 4.2 ) loss on debt extinguishment — — — ( 1.6 ) 1.6 interest income 1.1 0.1 1.0 0.2 ( 0.1 ) other income ( loss ) , net 3.7 ( 1.3 ) 5.0 2.9 ( 4.2 ) income from continuing operations before income taxes $ 702.3 $ 722.7 $ ( 20.4 ) ( 2.8 ) $ 682.3 $ 40.4 5.9 retail vehicle unit sales : new vehicle 337,622 339,080 ( 1,458 ) ( 0.4 ) 318,008 21,072 6.6 used vehicle 225,713 227,290 ( 1,577 ) ( 0.7 ) 214,910 12,380 5.8 563,335 566,370 ( 3,035 ) ( 0.5 ) 532,918 33,452 6.3 revenue per vehicle retailed : new vehicle $ 36,300 $ 35,375 $ 925 2.6 $ 34,503 $ 872 2.5 used vehicle $ 19,856 $ 19,228 $ 628 3.3 $ 18,561 $ 667 3.6 gross profit per vehicle retailed : new vehicle $ 1,883 $ 1,985 $ ( 102 ) ( 5.1 ) $ 2,044 $ ( 59 ) ( 2.9 ) used vehicle $ 1,484 $ 1,577 $ ( 93 ) ( 5.9 ) $ 1,690 $ ( 113 ) ( 6.7 ) finance and insurance $ 1,588 $ 1,534 $ 54 3.5 $ 1,409 $ 125 8.9 total variable operations ( 2 ) $ 3,311 $ 3,355 $ ( 44 ) ( 1.3 ) $ 3,310 $ 45 1.4 ( 1 ) total variable operations includes new vehicle , used vehicle ( retail and wholesale ) , and finance and insurance results . ( 2 ) total variable operations gross profit per vehicle retailed is calculated by dividing the sum of new vehicle , retail used vehicle , and finance and insurance gross profit by total retail vehicle unit sales . 28 replace_table_token_8_th 29 same store operating data we have presented below our operating results on a same store basis to reflect our internal performance . the “ same store ” amounts presented below include the results of our stores for the identical months in each period presented in the comparison , commencing with the first full month in which the store was owned by us . for example , the results for a store acquired in february 2015 would be included only in our same store comparison of 2016 to 2015 , not in our same store comparison of 2015 to 2014 . therefore , the amounts presented in the year 2015 column that is being compared to the year 2016 column may differ from the amounts presented in the year 2015 column that is being compared to the year 2014 column . years ended december 31 , years ended december 31 , ( $ in millions , except per vehicle data ) 2016 2015 variance favorable / ( unfavorable ) % variance 2015 2014 variance favorable / ( unfavorable ) % variance revenue : new vehicle $ 11,288.4 $ 11,605.0 $ ( 316.6 ) ( 2.7 ) $ 11,576.5 $ 10,885.3 $ 691.2 6.3 retail used vehicle 4,123.5 4,201.1 ( 77.6 ) ( 1.8 ) 4,209.2 3,957.8 251.4 6.4 wholesale 471.5 387.4 84.1 21.7 390.7 395.0 ( 4.3 ) ( 1.1 ) used vehicle 4,595.0 4,588.5 6.5 0.1 4,599.9 4,352.8 247.1 5.7 finance and insurance , net 834.6 841.4 ( 6.8 ) ( 0.8 ) 846.1 745.6 100.5 13.5 total variable operations ( 1 ) 16,718.0 17,034.9 ( 316.9 ) ( 1.9 ) 17,022.5 15,983.7 1,038.8 6.5 parts and service 3,054.2 2,966.2 88.0 3.0 2,973.3 2,793.1 180.2 6.5 other 141.6 146.1 ( 4.5 ) 146.7 176.3 ( 29.6 ) total revenue $ 19,913.8 $ 20,147.2 $ ( 233.4 ) ( 1.2 ) $ 20,142.5 $ 18,953.1 $ 1,189.4 6.3 gross profit : new vehicle $ 590.2 $ 656.2 $ (

cash flows from financing activities net cash flows from financing activities primarily include repurchases of common stock , debt activity , changes in vehicle floorplan payable-non-trade , and proceeds from stock option exercises . 2016 compared to 2015 under our share repurchase program authorized by our board of directors , during 2016 , we repurchased 10.5 million shares of common stock for an aggregate purchase price of $ 497.0 million ( average purchase price per share of $ 47.30 ) . additionally , 38,906 shares were surrendered to autonation in 2016 to satisfy tax withholding obligations in connection with the vesting of restricted stock . during 2015 , we repurchased 3.9 million shares of our common stock for an aggregate purchase price of $ 235.1 million ( average purchase price per share of $ 60.49 ) . additionally , 36,712 shares were surrendered to autonation in 2015 to satisfy tax withholding obligations in connection with the vesting of restricted stock . during 2015 , we issued $ 300.0 million aggregate principal amount of 3.35 % senior notes due 2021 and $ 450.0 million aggregate principal amount of 4.5 % senior notes due 2025. cash flows from financing activities in 2015 reflect cash payments of $ 6.4 million for debt issuance costs that are being amortized to interest expense over the terms of the related debt arrangements . cash flows from financing activities include changes in commercial paper notes outstanding totaling net proceeds of $ 342.5 million during 2016 and $ 599.5 million during 2015. during 2016 , we borrowed $ 1.3 billion and repaid $ 1.3 billion under our revolving credit facility . during 2015 , we borrowed $ 1.4 billion and repaid $ 2.5 billion under our revolving credit facility , for net repayments of $ 1.1 billion . cash flows from financing activities include changes in vehicle floorplan payable-non-trade totaling net proceeds of $ 153.8 million during 2016 compared to net repayments of $ 13.3 million in 2015 .

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 financing activities net cash flows from financing activities primarily include repurchases of common stock , debt activity , changes in vehicle floorplan payable-non-trade , and proceeds from stock option exercises . 2016 compared to 2015 under our share repurchase program authorized by our board of directors , during 2016 , we repurchased 10.5 million shares of common stock for an aggregate purchase price of $ 497.0 million ( average purchase price per share of $ 47.30 ) . additionally , 38,906 shares were surrendered to autonation in 2016 to satisfy tax withholding obligations in connection with the vesting of restricted stock . during 2015 , we repurchased 3.9 million shares of our common stock for an aggregate purchase price of $ 235.1 million ( average purchase price per share of $ 60.49 ) . additionally , 36,712 shares were surrendered to autonation in 2015 to satisfy tax withholding obligations in connection with the vesting of restricted stock . during 2015 , we issued $ 300.0 million aggregate principal amount of 3.35 % senior notes due 2021 and $ 450.0 million aggregate principal amount of 4.5 % senior notes due 2025. cash flows from financing activities in 2015 reflect cash payments of $ 6.4 million for debt issuance costs that are being amortized to interest expense over the terms of the related debt arrangements . cash flows from financing activities include changes in commercial paper notes outstanding totaling net proceeds of $ 342.5 million during 2016 and $ 599.5 million during 2015. during 2016 , we borrowed $ 1.3 billion and repaid $ 1.3 billion under our revolving credit facility . during 2015 , we borrowed $ 1.4 billion and repaid $ 2.5 billion under our revolving credit facility , for net repayments of $ 1.1 billion . cash flows from financing activities include changes in vehicle floorplan payable-non-trade totaling net proceeds of $ 153.8 million during 2016 compared to net repayments of $ 13.3 million in 2015 . ``` Suspicious Activity Report : our new vehicle unit volume and new vehicle gross profit on a per vehicle retailed ( “ pvr ” ) basis were adversely impacted by certain manufacturers ' disruptive marketing and sales incentive programs , which are based upon store-level growth targets established by those manufacturers , and which result in multi-tier pricing . if those manufacturers continue to use such incentive programs or if other manufacturers adopt similar incentive programs , our operating results could continue to be adversely impacted . the number of recent-model-year vehicles in operation is growing due to increases in the annual rate of new vehicle sales in the united states since 2009. the growth in that portion of our service base , together with our customer retention efforts , has benefited the customer-pay service and warranty components of our parts and service business , and we believe that it will continue to benefit those components for the next several years . while the number of older vehicles in operation 22 has declined in recent years and is expected to continue to decline over the next few years , we believe that overall our parts and service business will benefit from the mix shift in our service base toward newer vehicles . results of operations we had net income from continuing operations of $ 431.7 million and diluted earnings per share of $ 4.16 in 2016 , as compared to net income from continuing operations of $ 443.7 million and diluted earnings per share of $ 3.90 in 2015 , and net income from continuing operations of $ 419.8 million and diluted earnings per share of $ 3.53 in 2014 . our retail new vehicle unit sales were down slightly in 2016 as compared to 2015. the disruptive manufacturer marketing and sales incentive programs discussed above under “ market conditions ” had a negative impact on our new vehicle unit volume and gross profit pvr . new vehicle gross profit pvr compression was partially offset by continued strength in finance and insurance gross profit pvr . used vehicle unit volume and gross profit were adversely impacted by the takata airbag inflator recall discussed below . our total gross profit for 2016 increased 2 % , as compared to 2015 , primarily due to the acquisitions we completed in 2016 and 2015 and an increase in parts and service gross profit . net income from continuing operations benefited from net after-tax gains related to business/property dispositions ( net of property impairments ) of $ 30.1 million in 2016 , $ 11.1 million in 2015 , and $ 7.7 million in 2014 , as well as net after-tax gains related to legal settlements of $ 8.9 million in 2016 and $ 2.5 million in 2014. see “ other income , net ” below . strategic initiatives in 2013 , we launched the autonation retail brand from coast to coast . during 2015 , that branding effort was extended to autonation express and the autonation vehicle protection plan . we recently announced the next phase of our comprehensive , customer-focused brand extension strategy , which includes : autonation usa stand-alone used vehicle sales and service centers , with 25 potential sites identified , five of which are expected to open in 2017 , autonation branded parts and accessories , the launch of which began in the third quarter of 2016 , and which will be expanded over the next several years , the expansion of autonation branded collision centers , which includes the unification of our collision centers under the autonation retail brand and plans to open or acquire at least 18 new collision centers over the next several years , and the expansion of autonation branded automotive auctions , which , as announced in october 2016 , includes plans to open four additional automotive auctions by the end of 2018. we expect that these initiatives will expand and strengthen the autonation retail brand , improve the customer experience , provide new growth opportunities , and enable us to expand our footprint in our core and other markets . we expect that our investments in this phase of our brand extension roll-out , which may exceed $ 500 million in the aggregate , will continue for the next several years . the roll-out of these strategic initiatives may be impacted by a number of variables , including customer adoption , market conditions , and our ability to identify , acquire , and build out suitable locations in a timely manner . see “ risk factors ” in part i , item 1a of this form 10-k. in connection with our brand extension strategy , we also launched a one price used vehicle sales model during the second half of 2016. the one price model is planned to be fully implemented in all of o ur stores by the end of the second quarter of 2017. takata airbag inflator recall used vehicle unit volume and gross profit in 2016 were adversely impacted by the takata airbag inflator recall , the largest and most complex safety recall in u.s. automotive history . this recall has been disruptive to our business , as the vehicle inventory subject to this recall has been placed on a retail sales-hold by several manufacturers until parts become available to replace the defective airbag inflators . certain manufacturers provide financial support for select vehicles that are on a retail sales-hold as a result of the recall , which serves to reduce our costs associated with those vehicles . we can not predict when or how many replacement parts will become available , the number of additional affected vehicles that we will 23 acquire through trade-ins , or the amount of financial support we will receive from the manufacturers of such vehicles in the future , and this recall may continue to adversely impact our business . story_separator_special_tag 27 reported operating data years ended december 31 , ( $ in millions , except per vehicle data ) 2016 vs. 2015 2015 vs. 2014 2016 2015 variance favorable / ( unfavorable ) % variance 2014 variance favorable / ( unfavorable ) % variance revenue : new vehicle $ 12,255.8 $ 11,995.0 $ 260.8 2.2 $ 10,972.2 $ 1,022.8 9.3 retail used vehicle 4,481.7 4,370.3 111.4 2.5 3,988.9 381.4 9.6 wholesale 513.6 398.4 115.2 28.9 396.8 1.6 0.4 used vehicle 4,995.3 4,768.7 226.6 4.8 4,385.7 383.0 8.7 finance and insurance , net 894.6 868.7 25.9 3.0 750.8 117.9 15.7 total variable operations ( 1 ) 18,145.7 17,632.4 513.3 2.9 16,108.7 1,523.7 9.5 parts and service 3,321.4 3,082.8 238.6 7.7 2,822.5 260.3 9.2 other 141.9 146.8 ( 4.9 ) 177.6 ( 30.8 ) total revenue $ 21,609.0 $ 20,862.0 $ 747.0 3.6 $ 19,108.8 $ 1,753.2 9.2 gross profit : new vehicle $ 635.8 $ 673.1 $ ( 37.3 ) ( 5.5 ) $ 650.1 $ 23.0 3.5 retail used vehicle 334.9 358.4 ( 23.5 ) ( 6.6 ) 363.2 ( 4.8 ) ( 1.3 ) wholesale ( 17.3 ) ( 4.7 ) ( 12.6 ) ( 2.6 ) ( 2.1 ) used vehicle 317.6 353.7 ( 36.1 ) ( 10.2 ) 360.6 ( 6.9 ) ( 1.9 ) finance and insurance 894.6 868.7 25.9 3.0 750.8 117.9 15.7 total variable operations ( 1 ) 1,848.0 1,895.5 ( 47.5 ) ( 2.5 ) 1,761.5 134.0 7.6 parts and service 1,434.7 1,338.0 96.7 7.2 1,196.6 141.4 11.8 other 30.5 28.0 2.5 30.6 ( 2.6 ) total gross profit 3,313.2 3,261.5 51.7 1.6 2,988.7 272.8 9.1 selling , general , and administrative expenses 2,349.4 2,263.5 ( 85.9 ) ( 3.8 ) 2,079.6 ( 183.9 ) ( 8.8 ) depreciation and amortization 143.4 127.4 ( 16.0 ) 106.9 ( 20.5 ) franchise rights impairment — 15.4 15.4 — ( 15.4 ) other income , net ( 69.1 ) ( 17.9 ) 51.2 ( 18.6 ) ( 0.7 ) operating income 889.5 873.1 16.4 1.9 820.8 52.3 6.4 non-operating income ( expense ) items : floorplan interest expense ( 76.5 ) ( 58.3 ) ( 18.2 ) ( 53.3 ) ( 5.0 ) other interest expense ( 115.5 ) ( 90.9 ) ( 24.6 ) ( 86.7 ) ( 4.2 ) loss on debt extinguishment — — — ( 1.6 ) 1.6 interest income 1.1 0.1 1.0 0.2 ( 0.1 ) other income ( loss ) , net 3.7 ( 1.3 ) 5.0 2.9 ( 4.2 ) income from continuing operations before income taxes $ 702.3 $ 722.7 $ ( 20.4 ) ( 2.8 ) $ 682.3 $ 40.4 5.9 retail vehicle unit sales : new vehicle 337,622 339,080 ( 1,458 ) ( 0.4 ) 318,008 21,072 6.6 used vehicle 225,713 227,290 ( 1,577 ) ( 0.7 ) 214,910 12,380 5.8 563,335 566,370 ( 3,035 ) ( 0.5 ) 532,918 33,452 6.3 revenue per vehicle retailed : new vehicle $ 36,300 $ 35,375 $ 925 2.6 $ 34,503 $ 872 2.5 used vehicle $ 19,856 $ 19,228 $ 628 3.3 $ 18,561 $ 667 3.6 gross profit per vehicle retailed : new vehicle $ 1,883 $ 1,985 $ ( 102 ) ( 5.1 ) $ 2,044 $ ( 59 ) ( 2.9 ) used vehicle $ 1,484 $ 1,577 $ ( 93 ) ( 5.9 ) $ 1,690 $ ( 113 ) ( 6.7 ) finance and insurance $ 1,588 $ 1,534 $ 54 3.5 $ 1,409 $ 125 8.9 total variable operations ( 2 ) $ 3,311 $ 3,355 $ ( 44 ) ( 1.3 ) $ 3,310 $ 45 1.4 ( 1 ) total variable operations includes new vehicle , used vehicle ( retail and wholesale ) , and finance and insurance results . ( 2 ) total variable operations gross profit per vehicle retailed is calculated by dividing the sum of new vehicle , retail used vehicle , and finance and insurance gross profit by total retail vehicle unit sales . 28 replace_table_token_8_th 29 same store operating data we have presented below our operating results on a same store basis to reflect our internal performance . the “ same store ” amounts presented below include the results of our stores for the identical months in each period presented in the comparison , commencing with the first full month in which the store was owned by us . for example , the results for a store acquired in february 2015 would be included only in our same store comparison of 2016 to 2015 , not in our same store comparison of 2015 to 2014 . therefore , the amounts presented in the year 2015 column that is being compared to the year 2016 column may differ from the amounts presented in the year 2015 column that is being compared to the year 2014 column . years ended december 31 , years ended december 31 , ( $ in millions , except per vehicle data ) 2016 2015 variance favorable / ( unfavorable ) % variance 2015 2014 variance favorable / ( unfavorable ) % variance revenue : new vehicle $ 11,288.4 $ 11,605.0 $ ( 316.6 ) ( 2.7 ) $ 11,576.5 $ 10,885.3 $ 691.2 6.3 retail used vehicle 4,123.5 4,201.1 ( 77.6 ) ( 1.8 ) 4,209.2 3,957.8 251.4 6.4 wholesale 471.5 387.4 84.1 21.7 390.7 395.0 ( 4.3 ) ( 1.1 ) used vehicle 4,595.0 4,588.5 6.5 0.1 4,599.9 4,352.8 247.1 5.7 finance and insurance , net 834.6 841.4 ( 6.8 ) ( 0.8 ) 846.1 745.6 100.5 13.5 total variable operations ( 1 ) 16,718.0 17,034.9 ( 316.9 ) ( 1.9 ) 17,022.5 15,983.7 1,038.8 6.5 parts and service 3,054.2 2,966.2 88.0 3.0 2,973.3 2,793.1 180.2 6.5 other 141.6 146.1 ( 4.5 ) 146.7 176.3 ( 29.6 ) total revenue $ 19,913.8 $ 20,147.2 $ ( 233.4 ) ( 1.2 ) $ 20,142.5 $ 18,953.1 $ 1,189.4 6.3 gross profit : new vehicle $ 590.2 $ 656.2 $ (

merchandise inventory is valued at the lower of average cost or market , utilizing the retail method . average cost includes merchandise design and sourcing costs and related expenses . the company records merchandise receipts at the time merchandise is delivered to the foreign shipping port by the manufacturer ( fob port ) . this is the point at which title and risk of loss transfer to us . we review our inventory in order to identify slow-moving merchandise and generally use markdowns to clear merchandise . additionally , we estimate a markdown reserve for future planned markdowns related to current inventory . if inventory exceeds customer demand for reasons of style , seasonal adaptation , changes in 19 customer preference , lack of consumer acceptance of fashion items , competition , or if it is determined that the inventory in stock will not sell at its currently ticketed price , additional markdowns may be necessary . these markdowns may have a material adverse impact on earnings , depending on the extent and amount of inventory affected . we estimate an inventory shrinkage reserve for anticipated losses for the period between the last physical count and the balance sheet date . the estimate for the shrinkage reserve is calculated based on historical percentages and can be affected by changes in merchandise mix and changes in actual shrinkage trends . we do not believe there is a reasonable likelihood that there will be a material change in the future estimates or assumptions we use to calculate our inventory shrinkage reserve . however , if actual physical inventory losses differ significantly from our estimate , our operating results could be adversely affected . asset impairment . in accordance with financial accounting standards board ( “fasb” ) accounting standard codification ( “asc” ) 360 , property , plant , and equipment , we evaluate long-lived assets for impairment at the individual store level , which is the lowest level at which individual cash flows can be identified . impairment losses are recorded on long-lived assets used in operations when events and circumstances indicate that the assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amounts of the assets . when events such as these occur , the impaired assets are adjusted to their estimated fair value and an impairment loss is recorded separately as a component of operating income under loss on impairment of assets . our impairment loss calculations require management to make assumptions and to apply judgment to estimate future cash flows and asset fair values , including forecasting useful lives of the assets and selecting the discount rate that reflects the risk inherent in future cash flows . we do not believe there is a reasonable likelihood that there will be a material change in the estimates or assumptions we use to calculate long-lived asset impairment losses . however , if actual results are not consistent with our estimates and assumptions , our operating results could be adversely affected . investment securities . in accordance with asc 820 , fair value measurements and disclosures ( “asc 820” ) , we measure our investment securities using level 1 , level 2 and level 3 inputs . level 1 and level 2 inputs are valued using quoted market prices . in the event we hold level 3 investments , we would use a discounted cash flow ( “dcf” ) model to assess fair value of our level 3 investments . the assumptions in our dcf model include different recovery periods depending on the type of security and varying discount factors for yield and illiquidity . these assumptions are subjective and they are based on our current judgment and our view of current market conditions . the use of different assumptions could result in a different valuation . we evaluate our investments for impairment in accordance with asc 320 , investments – debt and equity securities ( “asc 320” ) . asc 320 provides guidance for determining when an investment is considered impaired , whether impairment is other-than-temporary , and measurement of an impairment loss . an investment is considered impaired if the fair value of the investment is less than its cost . if , after consideration of all available evidence to evaluate the realizable value of its investment , impairment is determined to be other-than-temporary , then an impairment loss is recognized in the consolidated statement of operations equal to the difference between the investment 's cost and its fair value . additionally , asc 320 requires additional disclosures relating to debt and equity securities both in the interim and annual periods as well as requires us to present total other-than-temporary impairment ( “otti” ) with an offsetting reduction for any non-credit loss impairment amount recognized in other comprehensive income ( “oci” ) . share-based payments . we account for share-based payments in accordance with the provisions of asc 718 , compensation – stock compensation ( “asc 718” ) . to determine the fair value of our stock option awards , we use the black-scholes option pricing model , which requires management to apply judgment and make assumptions to determine the fair value of our awards . these assumptions include estimating the length of time employees will retain their vested stock options before exercising them ( the “expected term” ) and the estimated volatility of the price of our common stock over the expected term . 20 we calculate a weighted-average expected term based on historical experience . expected stock price volatility is based on a combination of historical volatility of our common stock and implied volatility . we chose to use a combination of historical and implied volatility as we believe that this combination is more representative of future stock price trends than historical volatility alone . story_separator_special_tag as a rate to total net revenue , selling , general and administrative expenses improved 90 basis points to 23.0 % , compared to 23.9 % in fiscal 2010. expense reduction efforts , partially offset by new store growth , variable expense related to the sales increase and a planned investment in advertising led to the improvement in the rate . by brand , including aeo direct , american eagle outfitters contributed 80 basis points of the total sg & a improvement with aerie contributing 10 basis points of the increase . there was $ 6.5 million of share-based payment expense , consisting of time-based awards , included in selling , general and administrative expenses this year compared to $ 16.7 million in fiscal 2010. loss on impairment of assets the loss on impairment of assets of $ 19.2 million resulted from our evaluation of underperforming stores which exhibited an unanticipated increase in negative cash flow trends , driven by fourth quarter 2011 results . this impairment consisted of 57 retail stores , largely related to the aerie brand . depreciation and amortization expense depreciation and amortization expense decreased slightly to $ 138.0 million from $ 139.7 million in fiscal 2010. this decrease is primarily due to store closures during the year , partially offset by a greater property and equipment base driven by our level of capital expenditures . as a percent to total net revenue , depreciation and amortization expense decreased to 4.5 % from 4.7 % as a result of the decrease in expense and higher comparable sales for the period . realized loss on sale of investment securities there was no realized loss on sale of investment securities in fiscal 2011 , compared to $ 24.4 million , or $ 0.12 per diluted share , in fiscal 2010. the loss in fiscal 2010 was primarily due to the liquidation of 95 % of our auction rate security investment portfolio . other income , net other income , net increased to $ 5.9 million from $ 2.2 million last year . the change is primarily due to proceeds received from our ars call option in fiscal 2011 . 27 provision for income taxes the effective income tax rate from continuing operations decreased to approximately 36 % in fiscal 2011 from 38 % in fiscal 2010. the higher effective income tax rate in fiscal 2010 was primarily due to losses on the sale of certain ars investments for which no income tax benefit was recognized . refer to note 14 to the consolidated financial statements for additional information regarding our accounting for income taxes . income from continuing operations income from continuing operations for fiscal 2011 was $ 175.3 million , or $ 0.89 per diluted share , and includes $ 15.7 million , or ( $ 0.08 ) per diluted share , of after-tax store impairment and executive transition costs . income from continuing operations for fiscal 2010 was $ 195.7 million , or $ 0.97 per diluted share , and includes a ( $ 0.12 ) per diluted share loss from the sale of investment securities related to our ars liquidation . loss from discontinued operations we completed the closure of m+o stores and related e-commerce operations during fiscal 2010 and the sale of the 77kids stores and related e-commerce operations during fiscal 2012. accordingly , the after-tax operating results for m+o and 77kids appear in loss from discontinued operations on the consolidated statements of operations for all periods presented . loss from discontinued operations , net of tax , for fiscal 2011 was $ 23.6 million , which relates to 77kids operating losses only . loss from discontinued operations , net of tax , for fiscal 2010 was $ 55.1 million , of which $ 41.3 million and $ 13.8 million related to m+o and 77kids , respectively . the loss from discontinued operations for fiscal 2010 for m+o included both operating losses and closure charges , whereas 77kids relates only to operating losses . refer to note 15 to the consolidated financial statements for additional information regarding the discontinued operations of m+o and 77kids . net income net income increased to $ 151.7 million in fiscal 2011 from $ 140.6 million in fiscal 2010. as a percent to total net revenue , net income was 4.8 % and 4.7 % for fiscal 2011 and fiscal 2010 , respectively . net income per diluted share was $ 0.77 , compared to $ 0.70 in fiscal 2010. the increase in net income was attributable to the factors noted above . fair value measurements asc 820 defines fair value , establishes a framework for measuring fair value in accordance with gaap , and expands disclosures about fair value measurements . fair value is defined under asc 820 as the exit price associated with the sale of an asset or transfer of a liability in an orderly transaction between market participants at the measurement date : financial instruments valuation techniques used to measure fair value under asc 820 must maximize the use of observable inputs and minimize the use of unobservable inputs . in addition , asc 820 establishes a three-tier fair value hierarchy , which prioritizes the inputs used in measuring fair value . the tiers include : level 1 — quoted prices in active markets for identical assets or liabilities . level 2 — inputs other than level 1 that are observable , either directly or indirectly , such as quoted prices for similar assets or liabilities ; quoted prices in markets that are not active ; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities . 28 level 3 — unobservable inputs ( i.e . , projections , estimates , interpretations , etc . ) that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities . as of

cash flow and liquidity — our management evaluates cash flow from operations , investing and financing in determining the sufficiency of our cash position . cash flow from operations has historically been sufficient to cover our uses of cash . our management believes that cash flow from operations will be sufficient to fund anticipated capital expenditures and working capital requirements . our management 's goals are to drive improvements to our gross profit performance , bring greater consistency to our results and to deliver profitable growth over the long term . specifically , our planned near-term financial targets are to deliver a total net revenue compounded annual growth rate ( “cagr” ) of 7 % to 9 % , an ebit cagr of 12 % to 15 % and a roic in the range of 14 % to 17 % , annually . 22 results of operations overview in 2012 , we made significant progress on our near-term goals . we focused on delivering results through our five near-term priorities : ( 1 ) driving a competitive top line ; ( 2 ) generating margin flow-through from improved inventory management ; ( 3 ) rebalancing our store fleet ; ( 4 ) accelerating our online business ; and ( 5 ) gaining leverage on our infrastructure . total revenue for the 53 week year increased 11 % to a record $ 3.476 billion , compared to $ 3.120 billion for the 52 week period last year . total comparable sales for the 53 week year increased 9 % over the corresponding 53 week period last year , with positive comparable sales in all quarters of the year . for the year , aeo brand comparable sales increased 7 % , aerie brand increased 6 % , and aeo direct increased 25 % . throughout the year , strong merchandise improvements led to comparable sales growth across the assortment . the strength of our brand , combined with a more distinct lifestyle point of view , is broadening our customer appeal .

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 and liquidity — our management evaluates cash flow from operations , investing and financing in determining the sufficiency of our cash position . cash flow from operations has historically been sufficient to cover our uses of cash . our management believes that cash flow from operations will be sufficient to fund anticipated capital expenditures and working capital requirements . our management 's goals are to drive improvements to our gross profit performance , bring greater consistency to our results and to deliver profitable growth over the long term . specifically , our planned near-term financial targets are to deliver a total net revenue compounded annual growth rate ( “cagr” ) of 7 % to 9 % , an ebit cagr of 12 % to 15 % and a roic in the range of 14 % to 17 % , annually . 22 results of operations overview in 2012 , we made significant progress on our near-term goals . we focused on delivering results through our five near-term priorities : ( 1 ) driving a competitive top line ; ( 2 ) generating margin flow-through from improved inventory management ; ( 3 ) rebalancing our store fleet ; ( 4 ) accelerating our online business ; and ( 5 ) gaining leverage on our infrastructure . total revenue for the 53 week year increased 11 % to a record $ 3.476 billion , compared to $ 3.120 billion for the 52 week period last year . total comparable sales for the 53 week year increased 9 % over the corresponding 53 week period last year , with positive comparable sales in all quarters of the year . for the year , aeo brand comparable sales increased 7 % , aerie brand increased 6 % , and aeo direct increased 25 % . throughout the year , strong merchandise improvements led to comparable sales growth across the assortment . the strength of our brand , combined with a more distinct lifestyle point of view , is broadening our customer appeal . ``` Suspicious Activity Report : merchandise inventory is valued at the lower of average cost or market , utilizing the retail method . average cost includes merchandise design and sourcing costs and related expenses . the company records merchandise receipts at the time merchandise is delivered to the foreign shipping port by the manufacturer ( fob port ) . this is the point at which title and risk of loss transfer to us . we review our inventory in order to identify slow-moving merchandise and generally use markdowns to clear merchandise . additionally , we estimate a markdown reserve for future planned markdowns related to current inventory . if inventory exceeds customer demand for reasons of style , seasonal adaptation , changes in 19 customer preference , lack of consumer acceptance of fashion items , competition , or if it is determined that the inventory in stock will not sell at its currently ticketed price , additional markdowns may be necessary . these markdowns may have a material adverse impact on earnings , depending on the extent and amount of inventory affected . we estimate an inventory shrinkage reserve for anticipated losses for the period between the last physical count and the balance sheet date . the estimate for the shrinkage reserve is calculated based on historical percentages and can be affected by changes in merchandise mix and changes in actual shrinkage trends . we do not believe there is a reasonable likelihood that there will be a material change in the future estimates or assumptions we use to calculate our inventory shrinkage reserve . however , if actual physical inventory losses differ significantly from our estimate , our operating results could be adversely affected . asset impairment . in accordance with financial accounting standards board ( “fasb” ) accounting standard codification ( “asc” ) 360 , property , plant , and equipment , we evaluate long-lived assets for impairment at the individual store level , which is the lowest level at which individual cash flows can be identified . impairment losses are recorded on long-lived assets used in operations when events and circumstances indicate that the assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amounts of the assets . when events such as these occur , the impaired assets are adjusted to their estimated fair value and an impairment loss is recorded separately as a component of operating income under loss on impairment of assets . our impairment loss calculations require management to make assumptions and to apply judgment to estimate future cash flows and asset fair values , including forecasting useful lives of the assets and selecting the discount rate that reflects the risk inherent in future cash flows . we do not believe there is a reasonable likelihood that there will be a material change in the estimates or assumptions we use to calculate long-lived asset impairment losses . however , if actual results are not consistent with our estimates and assumptions , our operating results could be adversely affected . investment securities . in accordance with asc 820 , fair value measurements and disclosures ( “asc 820” ) , we measure our investment securities using level 1 , level 2 and level 3 inputs . level 1 and level 2 inputs are valued using quoted market prices . in the event we hold level 3 investments , we would use a discounted cash flow ( “dcf” ) model to assess fair value of our level 3 investments . the assumptions in our dcf model include different recovery periods depending on the type of security and varying discount factors for yield and illiquidity . these assumptions are subjective and they are based on our current judgment and our view of current market conditions . the use of different assumptions could result in a different valuation . we evaluate our investments for impairment in accordance with asc 320 , investments – debt and equity securities ( “asc 320” ) . asc 320 provides guidance for determining when an investment is considered impaired , whether impairment is other-than-temporary , and measurement of an impairment loss . an investment is considered impaired if the fair value of the investment is less than its cost . if , after consideration of all available evidence to evaluate the realizable value of its investment , impairment is determined to be other-than-temporary , then an impairment loss is recognized in the consolidated statement of operations equal to the difference between the investment 's cost and its fair value . additionally , asc 320 requires additional disclosures relating to debt and equity securities both in the interim and annual periods as well as requires us to present total other-than-temporary impairment ( “otti” ) with an offsetting reduction for any non-credit loss impairment amount recognized in other comprehensive income ( “oci” ) . share-based payments . we account for share-based payments in accordance with the provisions of asc 718 , compensation – stock compensation ( “asc 718” ) . to determine the fair value of our stock option awards , we use the black-scholes option pricing model , which requires management to apply judgment and make assumptions to determine the fair value of our awards . these assumptions include estimating the length of time employees will retain their vested stock options before exercising them ( the “expected term” ) and the estimated volatility of the price of our common stock over the expected term . 20 we calculate a weighted-average expected term based on historical experience . expected stock price volatility is based on a combination of historical volatility of our common stock and implied volatility . we chose to use a combination of historical and implied volatility as we believe that this combination is more representative of future stock price trends than historical volatility alone . story_separator_special_tag as a rate to total net revenue , selling , general and administrative expenses improved 90 basis points to 23.0 % , compared to 23.9 % in fiscal 2010. expense reduction efforts , partially offset by new store growth , variable expense related to the sales increase and a planned investment in advertising led to the improvement in the rate . by brand , including aeo direct , american eagle outfitters contributed 80 basis points of the total sg & a improvement with aerie contributing 10 basis points of the increase . there was $ 6.5 million of share-based payment expense , consisting of time-based awards , included in selling , general and administrative expenses this year compared to $ 16.7 million in fiscal 2010. loss on impairment of assets the loss on impairment of assets of $ 19.2 million resulted from our evaluation of underperforming stores which exhibited an unanticipated increase in negative cash flow trends , driven by fourth quarter 2011 results . this impairment consisted of 57 retail stores , largely related to the aerie brand . depreciation and amortization expense depreciation and amortization expense decreased slightly to $ 138.0 million from $ 139.7 million in fiscal 2010. this decrease is primarily due to store closures during the year , partially offset by a greater property and equipment base driven by our level of capital expenditures . as a percent to total net revenue , depreciation and amortization expense decreased to 4.5 % from 4.7 % as a result of the decrease in expense and higher comparable sales for the period . realized loss on sale of investment securities there was no realized loss on sale of investment securities in fiscal 2011 , compared to $ 24.4 million , or $ 0.12 per diluted share , in fiscal 2010. the loss in fiscal 2010 was primarily due to the liquidation of 95 % of our auction rate security investment portfolio . other income , net other income , net increased to $ 5.9 million from $ 2.2 million last year . the change is primarily due to proceeds received from our ars call option in fiscal 2011 . 27 provision for income taxes the effective income tax rate from continuing operations decreased to approximately 36 % in fiscal 2011 from 38 % in fiscal 2010. the higher effective income tax rate in fiscal 2010 was primarily due to losses on the sale of certain ars investments for which no income tax benefit was recognized . refer to note 14 to the consolidated financial statements for additional information regarding our accounting for income taxes . income from continuing operations income from continuing operations for fiscal 2011 was $ 175.3 million , or $ 0.89 per diluted share , and includes $ 15.7 million , or ( $ 0.08 ) per diluted share , of after-tax store impairment and executive transition costs . income from continuing operations for fiscal 2010 was $ 195.7 million , or $ 0.97 per diluted share , and includes a ( $ 0.12 ) per diluted share loss from the sale of investment securities related to our ars liquidation . loss from discontinued operations we completed the closure of m+o stores and related e-commerce operations during fiscal 2010 and the sale of the 77kids stores and related e-commerce operations during fiscal 2012. accordingly , the after-tax operating results for m+o and 77kids appear in loss from discontinued operations on the consolidated statements of operations for all periods presented . loss from discontinued operations , net of tax , for fiscal 2011 was $ 23.6 million , which relates to 77kids operating losses only . loss from discontinued operations , net of tax , for fiscal 2010 was $ 55.1 million , of which $ 41.3 million and $ 13.8 million related to m+o and 77kids , respectively . the loss from discontinued operations for fiscal 2010 for m+o included both operating losses and closure charges , whereas 77kids relates only to operating losses . refer to note 15 to the consolidated financial statements for additional information regarding the discontinued operations of m+o and 77kids . net income net income increased to $ 151.7 million in fiscal 2011 from $ 140.6 million in fiscal 2010. as a percent to total net revenue , net income was 4.8 % and 4.7 % for fiscal 2011 and fiscal 2010 , respectively . net income per diluted share was $ 0.77 , compared to $ 0.70 in fiscal 2010. the increase in net income was attributable to the factors noted above . fair value measurements asc 820 defines fair value , establishes a framework for measuring fair value in accordance with gaap , and expands disclosures about fair value measurements . fair value is defined under asc 820 as the exit price associated with the sale of an asset or transfer of a liability in an orderly transaction between market participants at the measurement date : financial instruments valuation techniques used to measure fair value under asc 820 must maximize the use of observable inputs and minimize the use of unobservable inputs . in addition , asc 820 establishes a three-tier fair value hierarchy , which prioritizes the inputs used in measuring fair value . the tiers include : level 1 — quoted prices in active markets for identical assets or liabilities . level 2 — inputs other than level 1 that are observable , either directly or indirectly , such as quoted prices for similar assets or liabilities ; quoted prices in markets that are not active ; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities . 28 level 3 — unobservable inputs ( i.e . , projections , estimates , interpretations , etc . ) that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities . as of