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transition networks with over 30 years of growth and expertise in hardware and software development , transition networks offers customers the ability to affordably integrate the benefits of fiber optics into any data network , in any application , and in any environment . offering support for multiple protocols , any interface , and a multitude of hardware platforms , transition networks ' portfolio gives customers the power to deliver and manage network traffic reliably over fiber . transition networks distributes hardware-based connectivity solutions exclusively through a network of resellers in over 90 countries . jdl technologies jdl technologies provides technology services and infrastructure to the commercial , healthcare and education market segments . the company 's portfolio of technology solutions includes managed services , virtualization and cloud solutions , wired and wireless network design and implementation services , and converged infrastructure configuration and deployment . jdl has provided many of these technology services to the school board of broward county , florida , the sixth largest public school district in the u.s. , for more than a decade , and also provides these services to a number of commercial and healthcare clients . net2edge net2edge has been created to focus on the service provider/communications markets . designing , manufacturing and marketing carrier ethernet based network access devices and software that will revolutionize the near future evolution to the next wave of network modernization . carrier ethernet is the standard universal service provider delivery system based on the internationally recognized mef service standards . net2edge has created significant market differentiation by enabling legacy services over carrier ethernet access devices . service providers all over the world still have vast old networks which are expensive to operate , maintain and manage yet have millions of subscribers . net2edge helps resolve that challenge by bringing these legacy services in to the 21 st century network . key 2016 developments ● the company 's 2016 sales were $ 99.4 million , a 8 % decrease from 2015 sales of $ 107.7 million . ● the company 's 2016 net loss was $ 8.1 million , or ( $ 0.92 ) per diluted share , compared to net loss of $ 9.6 million or ( $ 1.11 ) per diluted share in fiscal 2015 . ● at 2016 year end , the company had cash , cash equivalents and investments of $ 16.2 million and positive working capital of $ 44.0 million compared to cash , cash equivalents and investments of $ 21.3 million and working capital of $ 46.4 million at december 31 , 2015 . ● suttle sales decreased 16 % to $ 42.1 million in 2016 from $ 50.1 million in 2015 , primarily due to a decrease in international sales and in sales to its largest telecommunications customer . suttle had an operating loss of $ 8.6 million in 2016 compared to an operating loss of $ 6.4 million in 2015 . ● transition networks sales decreased 1 % to $ 41.1 million in 2016 from $ 41.4 million in 2015. transition had operating income of $ 0.3 million in 2016 compared to an operating loss of $ 1.2 million in 2015 . 21 ● sales by jdl technologies decreased 1 % to $ 15.5 million in 2016 from $ 15.7 million in 2015. jdl had operating income of $ 1.9 million in 2016 compared to operating income of $ 1.2 million in 2015 . ● sales from net2edge increased 38 % to $ 1.9 million in 2016 from $ 1.4 million in 2015. net2edge had an operating loss of $ 2.2 million compared to an operating loss of $ 2.8 million in 2015 . ● the company 's r & d investment in 2016 was $ 5.4 million , or 5.4 % of consolidated sales , compared to $ 8.3 million , or 7.7 % of consolidated sales in 2015. forward looking statements in this report and from time to time , in reports filed with the securities and exchange commission , in press releases , and in other communications to shareholders or the investing public , we may make “ forward looking statements ” within the meaning of the private securities litigation reform act of 1995. we may make these forward looking statements concerning possible or anticipated future financial performance , business activities , plans , pending claims , investigations or litigation , which are typically preceded by the words “ believes , ” “ expects , ” “ anticipates , ” “ intends ” or similar expressions . for these forward-looking statements , the company claims the protection of the safe harbor for forward-looking statements contained in federal securities laws . shareholders and the investing public should understand that these forward looking statements are subject to risks and uncertainties that could cause actual performance , activities , anticipated results , outcomes or plans to differ significantly from those indicated in the forward-looking statements . for a detailed discussion of a number of such risk factors , please see item 1a above . critical accounting policies inventory valuation : we value inventories at the lower of cost or market . reserves for excess and obsolescence are estimated and recorded to reduce the carrying value to estimated net realizable value . the amount of the reserve is determined based on historical usage , projected sales information , plans for discontinued products and other factors . though management considers these reserves adequate and proper , changes in sales volumes due to unexpected economic or competitive conditions are among the factors that could materially affect the adequacy of this reserve . income taxes : in the preparation of the company 's consolidated financial statements , management calculates income taxes . story_separator_special_tag 2015 compared to 2014 consolidated sales were $ 107,670,000 in 2015 , a 10 % decrease from sales of $ 119,071,000 in 2014. consolidated operating loss was $ 10,506,000 in 2015 as compared to income of $ 3,293,000 in 2014. net loss in 2015 was $ 9,648,000 , or ( $ 1.11 ) per share compared to net income of $ 1,962,000 or $ 0.23 per share in 2014. suttle results suttle sales decreased 26 % to $ 50,082,000 in 2015 compared to $ 67,331,000 in 2014. sales by product groups in 2015 and 2014 were : replace_table_token_10_th 25 suttle 's sales by customer groups in 2015 and 2014 were : replace_table_token_11_th the decrease in sales is due primarily to increase pricing pressure and volume declines in suttle 's legacy product lines . sales to the telecommunication customers decreased 30 % to $ 39,809,000 in 2015 compared to $ 56,882,000 in 2014 due to a disrupted order cycle at a major customer that significantly curtailed its 2015 purchasing , and overall decline in legacy product lines . sales to these customers accounted for 79 % of suttle 's sales in 2015 compared to 84 % of sales in 2014. sales to distributors decreased 49 % and accounted for 6 % of sales in 2015 compared to 9 % in 2014. international sales accounted for 15 % of suttle 's 2015 sales and increased 60 % compared to 2014 due to the ordering cycle of dsl products and introduction of new products used in fttx deployments for a major customer . sales of structured cabling and connecting system products decreased 30 % primarily due to reduced demand from major customers and shifts in technology . sales of dsl and other products increased 19 % due to increased orders from a major international customer . suttle 's gross margin decreased 58 % to $ 8,850,000 in 2015 compared to $ 20,992,000 in 2014. the gross margin percentage decreased to 18 % in 2015 as compared to 31 % in 2014 due to increased pricing pressure at a major customer and high production variances due to decreased demand , as well as continued investment into production capabilities to support new fttx product platforms . selling , general and administrative expenses increased $ 896,000 , or 6 % to $ 15,285,000 , or 31 % of sales , in 2015 compared to $ 14,389,000 in 2014 , or 21 % of sales , due to investment into fiber and active capabilities to support new product platforms . suttle had an operating loss of $ 6,435,000 in 2015 compared to income of $ 6,603,000 in 2014. transition networks transition networks sales decreased 1 % to $ 41,469,000 in 2015 compared to $ 41,945,000 in 2014. transition networks organizes its sales force by vertical markets and segments its customers geographically . sales by customer groups in 2015 and 2014 were : replace_table_token_12_th the following table summarizes transition networks ' 2015 and 2014 sales by product group : replace_table_token_13_th 26 sales in north america decreased 2 % or $ 628,000 compared to 2014 due primarily to delays in federal government purchases . international sales increased $ 152,000 , or 1 % , due to gains in emea . gross margin decreased 3 % to $ 17,767,000 in 2015 compared to $ 18,406,000 in 2014. gross margin as a percentage of sales decreased to 43 % in 2015 compared to 44 % in 2014 due to unfavorable product mix . selling , general and administrative expenses increased 2 % to $ 19,005,000 , or 46 % of sales , in 2015 from $ 18,645,000 in 2014 , or 44 % of sales due to increased selling and engineering expenses . operating loss was $ 1,238,000 in 2015 compared to an operating loss of $ 477,000 in 2014. jdl technologies , inc. sales by jdl technologies , inc. increased 83 % to $ 15,672,000 in 2015 compared to $ 8,567,000 in 2014. the following table summarizes jdl 's revenues by customer group in 2015 and 2014 : replace_table_token_14_th revenues earned in broward county fl schools increased $ 5,187,000 or 80 % in 2015 as work began on a new multimillion dollar contract to deliver enhanced technology , modern it infrastructure and expanded wireless coverage to the district . jdl recognized no revenues from miami-dade county public schools due to completion of that district 's wireless classroom initiative , which had been funded under the e-rate program . revenue from jdl technologies ' sales to small and medium sized commercial businesses ( smbs ) increased by 105 % or $ 2,037,000 primarily due to continued robust sales of the company 's managed services as well as the revenue generated through the acquisition of twisted technologies in june of 2015. jdl gross margin increased 144 % to $ 4,806,000 in 2015 compared to $ 1,968,000 in 2014. gross margin as a percentage of sales increased to 31 % in 2015 from 23 % in 2014. this reflects , in part , jdl 's success in providing more profitable services for the commercial sector and its continuing evolution away from typically narrow margin e-rate funded projects for smaller or rural school districts . selling , general and administrative expenses increased 28 % in 2015 to $ 3,635,000 , or 23 % of sales , compared to $ 2,846,000 in 2014 , or 33 % of sales , due to strategic investments in staff , systems and product development to support growth and client retention . jdl reported operating income of $ 1,171,000 in 2015 compared to an operating loss of $ 878,000 in 2014. net2edge net2edge 's sales decreased 16 % to $ 1,353,000 in 2015 compared to $ 1,619,000 in 2014. gross margin decreased 10 % to $ 715,000 in 2015 compared to $ 793,000 in 2014. gross margin as a percentage of sales increased to 53 % in 2015 from 49 % in 2014. selling , general and administrative expenses

liquidity and capital resources as of december 31 , 2016 , the company had approximately $ 16,249,000 in cash , cash equivalents and investments . of this amount , $ 3,851,000 was invested in short-term money market funds that are not considered to be bank deposits and are not insured or guaranteed by the fdic or other government agency . these money market funds seek to preserve the value of the investment at $ 1.00 per share ; however , it is possible to lose money investing in these funds . the remainder in cash and cash equivalents is operating cash and certificates of deposit , which are fully insured through the fdic . the company also had $ 5,805,000 in investments consisting of certificates of deposit and corporate notes and bonds that are traded on the open market and are classified as available-for-sale at december 31 , 2016. the company had working capital of $ 44,005,000 , consisting of current assets of approximately $ 55,373,000 and current liabilities of $ 11,368,000 at december 31 , 2016 compared to working capital of $ 46,449,000 , consisting of current assets of $ 61,890,000 and current liabilities of $ 15,441,000 at the end of 2015. the company 's working capital at december 31 , 2015 decreased from the prior year-end as the company decreased its inventory as part of a concerted effort to more efficiently manage its inventory and begin to phase out specific legacy products .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 , the company had approximately $ 16,249,000 in cash , cash equivalents and investments . of this amount , $ 3,851,000 was invested in short-term money market funds that are not considered to be bank deposits and are not insured or guaranteed by the fdic or other government agency . these money market funds seek to preserve the value of the investment at $ 1.00 per share ; however , it is possible to lose money investing in these funds . the remainder in cash and cash equivalents is operating cash and certificates of deposit , which are fully insured through the fdic . the company also had $ 5,805,000 in investments consisting of certificates of deposit and corporate notes and bonds that are traded on the open market and are classified as available-for-sale at december 31 , 2016. the company had working capital of $ 44,005,000 , consisting of current assets of approximately $ 55,373,000 and current liabilities of $ 11,368,000 at december 31 , 2016 compared to working capital of $ 46,449,000 , consisting of current assets of $ 61,890,000 and current liabilities of $ 15,441,000 at the end of 2015. the company 's working capital at december 31 , 2015 decreased from the prior year-end as the company decreased its inventory as part of a concerted effort to more efficiently manage its inventory and begin to phase out specific legacy products . ``` Suspicious Activity Report : transition networks with over 30 years of growth and expertise in hardware and software development , transition networks offers customers the ability to affordably integrate the benefits of fiber optics into any data network , in any application , and in any environment . offering support for multiple protocols , any interface , and a multitude of hardware platforms , transition networks ' portfolio gives customers the power to deliver and manage network traffic reliably over fiber . transition networks distributes hardware-based connectivity solutions exclusively through a network of resellers in over 90 countries . jdl technologies jdl technologies provides technology services and infrastructure to the commercial , healthcare and education market segments . the company 's portfolio of technology solutions includes managed services , virtualization and cloud solutions , wired and wireless network design and implementation services , and converged infrastructure configuration and deployment . jdl has provided many of these technology services to the school board of broward county , florida , the sixth largest public school district in the u.s. , for more than a decade , and also provides these services to a number of commercial and healthcare clients . net2edge net2edge has been created to focus on the service provider/communications markets . designing , manufacturing and marketing carrier ethernet based network access devices and software that will revolutionize the near future evolution to the next wave of network modernization . carrier ethernet is the standard universal service provider delivery system based on the internationally recognized mef service standards . net2edge has created significant market differentiation by enabling legacy services over carrier ethernet access devices . service providers all over the world still have vast old networks which are expensive to operate , maintain and manage yet have millions of subscribers . net2edge helps resolve that challenge by bringing these legacy services in to the 21 st century network . key 2016 developments ● the company 's 2016 sales were $ 99.4 million , a 8 % decrease from 2015 sales of $ 107.7 million . ● the company 's 2016 net loss was $ 8.1 million , or ( $ 0.92 ) per diluted share , compared to net loss of $ 9.6 million or ( $ 1.11 ) per diluted share in fiscal 2015 . ● at 2016 year end , the company had cash , cash equivalents and investments of $ 16.2 million and positive working capital of $ 44.0 million compared to cash , cash equivalents and investments of $ 21.3 million and working capital of $ 46.4 million at december 31 , 2015 . ● suttle sales decreased 16 % to $ 42.1 million in 2016 from $ 50.1 million in 2015 , primarily due to a decrease in international sales and in sales to its largest telecommunications customer . suttle had an operating loss of $ 8.6 million in 2016 compared to an operating loss of $ 6.4 million in 2015 . ● transition networks sales decreased 1 % to $ 41.1 million in 2016 from $ 41.4 million in 2015. transition had operating income of $ 0.3 million in 2016 compared to an operating loss of $ 1.2 million in 2015 . 21 ● sales by jdl technologies decreased 1 % to $ 15.5 million in 2016 from $ 15.7 million in 2015. jdl had operating income of $ 1.9 million in 2016 compared to operating income of $ 1.2 million in 2015 . ● sales from net2edge increased 38 % to $ 1.9 million in 2016 from $ 1.4 million in 2015. net2edge had an operating loss of $ 2.2 million compared to an operating loss of $ 2.8 million in 2015 . ● the company 's r & d investment in 2016 was $ 5.4 million , or 5.4 % of consolidated sales , compared to $ 8.3 million , or 7.7 % of consolidated sales in 2015. forward looking statements in this report and from time to time , in reports filed with the securities and exchange commission , in press releases , and in other communications to shareholders or the investing public , we may make “ forward looking statements ” within the meaning of the private securities litigation reform act of 1995. we may make these forward looking statements concerning possible or anticipated future financial performance , business activities , plans , pending claims , investigations or litigation , which are typically preceded by the words “ believes , ” “ expects , ” “ anticipates , ” “ intends ” or similar expressions . for these forward-looking statements , the company claims the protection of the safe harbor for forward-looking statements contained in federal securities laws . shareholders and the investing public should understand that these forward looking statements are subject to risks and uncertainties that could cause actual performance , activities , anticipated results , outcomes or plans to differ significantly from those indicated in the forward-looking statements . for a detailed discussion of a number of such risk factors , please see item 1a above . critical accounting policies inventory valuation : we value inventories at the lower of cost or market . reserves for excess and obsolescence are estimated and recorded to reduce the carrying value to estimated net realizable value . the amount of the reserve is determined based on historical usage , projected sales information , plans for discontinued products and other factors . though management considers these reserves adequate and proper , changes in sales volumes due to unexpected economic or competitive conditions are among the factors that could materially affect the adequacy of this reserve . income taxes : in the preparation of the company 's consolidated financial statements , management calculates income taxes . story_separator_special_tag 2015 compared to 2014 consolidated sales were $ 107,670,000 in 2015 , a 10 % decrease from sales of $ 119,071,000 in 2014. consolidated operating loss was $ 10,506,000 in 2015 as compared to income of $ 3,293,000 in 2014. net loss in 2015 was $ 9,648,000 , or ( $ 1.11 ) per share compared to net income of $ 1,962,000 or $ 0.23 per share in 2014. suttle results suttle sales decreased 26 % to $ 50,082,000 in 2015 compared to $ 67,331,000 in 2014. sales by product groups in 2015 and 2014 were : replace_table_token_10_th 25 suttle 's sales by customer groups in 2015 and 2014 were : replace_table_token_11_th the decrease in sales is due primarily to increase pricing pressure and volume declines in suttle 's legacy product lines . sales to the telecommunication customers decreased 30 % to $ 39,809,000 in 2015 compared to $ 56,882,000 in 2014 due to a disrupted order cycle at a major customer that significantly curtailed its 2015 purchasing , and overall decline in legacy product lines . sales to these customers accounted for 79 % of suttle 's sales in 2015 compared to 84 % of sales in 2014. sales to distributors decreased 49 % and accounted for 6 % of sales in 2015 compared to 9 % in 2014. international sales accounted for 15 % of suttle 's 2015 sales and increased 60 % compared to 2014 due to the ordering cycle of dsl products and introduction of new products used in fttx deployments for a major customer . sales of structured cabling and connecting system products decreased 30 % primarily due to reduced demand from major customers and shifts in technology . sales of dsl and other products increased 19 % due to increased orders from a major international customer . suttle 's gross margin decreased 58 % to $ 8,850,000 in 2015 compared to $ 20,992,000 in 2014. the gross margin percentage decreased to 18 % in 2015 as compared to 31 % in 2014 due to increased pricing pressure at a major customer and high production variances due to decreased demand , as well as continued investment into production capabilities to support new fttx product platforms . selling , general and administrative expenses increased $ 896,000 , or 6 % to $ 15,285,000 , or 31 % of sales , in 2015 compared to $ 14,389,000 in 2014 , or 21 % of sales , due to investment into fiber and active capabilities to support new product platforms . suttle had an operating loss of $ 6,435,000 in 2015 compared to income of $ 6,603,000 in 2014. transition networks transition networks sales decreased 1 % to $ 41,469,000 in 2015 compared to $ 41,945,000 in 2014. transition networks organizes its sales force by vertical markets and segments its customers geographically . sales by customer groups in 2015 and 2014 were : replace_table_token_12_th the following table summarizes transition networks ' 2015 and 2014 sales by product group : replace_table_token_13_th 26 sales in north america decreased 2 % or $ 628,000 compared to 2014 due primarily to delays in federal government purchases . international sales increased $ 152,000 , or 1 % , due to gains in emea . gross margin decreased 3 % to $ 17,767,000 in 2015 compared to $ 18,406,000 in 2014. gross margin as a percentage of sales decreased to 43 % in 2015 compared to 44 % in 2014 due to unfavorable product mix . selling , general and administrative expenses increased 2 % to $ 19,005,000 , or 46 % of sales , in 2015 from $ 18,645,000 in 2014 , or 44 % of sales due to increased selling and engineering expenses . operating loss was $ 1,238,000 in 2015 compared to an operating loss of $ 477,000 in 2014. jdl technologies , inc. sales by jdl technologies , inc. increased 83 % to $ 15,672,000 in 2015 compared to $ 8,567,000 in 2014. the following table summarizes jdl 's revenues by customer group in 2015 and 2014 : replace_table_token_14_th revenues earned in broward county fl schools increased $ 5,187,000 or 80 % in 2015 as work began on a new multimillion dollar contract to deliver enhanced technology , modern it infrastructure and expanded wireless coverage to the district . jdl recognized no revenues from miami-dade county public schools due to completion of that district 's wireless classroom initiative , which had been funded under the e-rate program . revenue from jdl technologies ' sales to small and medium sized commercial businesses ( smbs ) increased by 105 % or $ 2,037,000 primarily due to continued robust sales of the company 's managed services as well as the revenue generated through the acquisition of twisted technologies in june of 2015. jdl gross margin increased 144 % to $ 4,806,000 in 2015 compared to $ 1,968,000 in 2014. gross margin as a percentage of sales increased to 31 % in 2015 from 23 % in 2014. this reflects , in part , jdl 's success in providing more profitable services for the commercial sector and its continuing evolution away from typically narrow margin e-rate funded projects for smaller or rural school districts . selling , general and administrative expenses increased 28 % in 2015 to $ 3,635,000 , or 23 % of sales , compared to $ 2,846,000 in 2014 , or 33 % of sales , due to strategic investments in staff , systems and product development to support growth and client retention . jdl reported operating income of $ 1,171,000 in 2015 compared to an operating loss of $ 878,000 in 2014. net2edge net2edge 's sales decreased 16 % to $ 1,353,000 in 2015 compared to $ 1,619,000 in 2014. gross margin decreased 10 % to $ 715,000 in 2015 compared to $ 793,000 in 2014. gross margin as a percentage of sales increased to 53 % in 2015 from 49 % in 2014. selling , general and administrative expenses

radiography is the largest product offering in point of care imaging , which includes digital and computed radiography and ultrasound instruments . radiography solutions typically consist of a combination of hardware and software placed with a customer , often combined with an ongoing service and support contract . our experience has been that most of the revenue is generated at the time of sale in this area , in contrast to the point of care diagnostic laboratory placements discussed above where ongoing consumable revenue is often a larger component of economic value as a given instrument is used . -35- pharmaceuticals , vaccines and diagnostic ( `` pvd `` ) revenue , includes single use diagnostic and other tests , pharmaceuticals and biologicals as well as research and development , licensing and royalty revenue . since items in this area are often single use by their nature , our typical aim is to build customer satisfaction and loyalty for each product , generate repeat annual sales from existing customers and expand our customer base in the future . products in this area are both supplied by third parties and provided by us . major products and services in this area include heartworm diagnostic tests and preventives , and allergy test kits , allergy immunotherapy and testing . other vaccines and pharmaceuticals ( `` ovp `` ) revenue is generated in our usda , fda and dea licensed production facility in des moines , iowa . we view this facility as an asset which could allow us to control our cost of goods on any pharmaceuticals and vaccines that we may commercialize in the future . we have increased integration of this facility with our operations elsewhere . for example , virtually all of our u.s. inventory , excluding our imaging products , is stored at this facility and related fulfillment logistics are managed there . our ovp revenue includes vaccines and pharmaceuticals produced for third parties . ovp is attributable only to the north america segment . all of our products are ultimately sold primarily to or through veterinarians . in many cases , veterinarians will mark up their costs to their customers . the acceptance of our products by veterinarians is critical to our success . these products are sold directly to end users by us as well as through distribution relationships , such as the sale of kits to conduct blood testing to third-party veterinary diagnostic laboratories and sales to independent third-party distributors . revenue from direct sales and distribution relationships represented 72 % and 28 % , respectively , of revenue for the year ended december 31 , 2020 compared to 64 % and 36 % , respectively , for the year ended december 31 , 2019. segment change during the second quarter of 2020 , following the scil acquisition , the chief operating decision maker ( “ codm ” ) changed how he assesses performance and allocates resources based on geographic regions . as a result , the company determined it has two operating and reportable segments : north america and international . north america consists of the united states , canada and mexico . international consists of geographies outside of north america , primarily our operations in australia , france , germany , italy , malaysia , spain and switzerland . the company 's core strategic focus on point of care laboratory and imaging products is included in both segments . the north america segment also includes the contract manufacturing of vaccines and pharmaceutical products . the company revised prior comparative periods to conform to the current period segment presentation . refer to note 18 - segment reporting to the consolidated financial statements included in part ii . item 8 of this annual report on form 10-k for further information . impact of covid-19 pandemic and current economic environment beginning in the first quarter of 2020 , to limit the spread of covid-19 , governments took various actions including the issuance of stay-at-home policies and social distancing procedures and guidelines , causing some businesses to adjust , reduce or suspend business and operating activities . veterinary care is widely recognized as an `` essential `` service for pet owners , and veterinarians continued to deliver essential medical care for sick and injured pets . the stay-at-home policies deployed early in 2020 to combat the spread of covid-19 resulted in a decrease in companion animal clinical visits , including delay of elective procedures and wellness visits and as a result lower demand for diagnostic testing services . during the second and third quarters of 2020 , certain local , state and federal governments began to ease the stay-at-home policies and allowed more businesses and facilities to re-open , leading to a recovery in companion animal clinical visits and associated demand for our diagnostic products . finally , during the fourth quarter , increased restrictions , mainly in the european union , certain parts of canada and australia , in which we operate , re-emerged . the extent to which -36- the continuation , or another wave outbreak of covid-19 , or an outbreak of other health epidemics could impact our business , results of operations and financial condition , including the potential for write-offs or impairments of assets and suspension of capital investments , will depend on future developments . we are unable to predict with certainty the effects of the covid-19 pandemic on our customers , suppliers and vendors , as well as the actions of governments , and when and to what extent normal economic and operating conditions can resume ; these effects may differ from those assumed in our projected estimates . even after the covid-19 pandemic has subsided , we may continue to experience adverse impacts , mainly in our ability to place new capital equipment , to our business as a result of any economic impact that has occurred or may occur in the future . story_separator_special_tag refer to note 16 - convertible notes and credit facility to the consolidated financial statements included in part ii , item 8 of this annual report on form 10-k. income tax ( benefit ) expense in 2020 , we had total income tax expense of $ 0.2 million compared to a total income tax benefit in 2019 of $ 1.4 million . see note 5 - income taxes to the consolidated financial statements included in part ii . item 8 of this annual report on form 10-k for additional information regarding our income taxes . net ( loss ) income attributable to heska corporation net loss attributable to heska corporation was $ 14.4 million in 2020 , compared to net loss attributable to heska corporation of $ 1.5 million in 2019. the difference between this line item and `` net ( loss ) income after equity in losses of unconsolidated affiliates `` is the net income or loss attributable to the minority interest in our french subsidiary , optomed , which we purchased in february 2019. the difference between these line items was a gain of $ 0.4 million for 2020 , and a gain of $ 0.3 million for 2019. in october 2020 , the company acquired the remaining 30 % minority interest in optomed . -42- adjusted ebitda adjusted ebitda in the twelve months ended december 31 , 2020 was $ 22.3 million ( 11.3 % adjusted ebitda margin ) , compared to $ 10.4 million ( 8.5 % adjusted ebitda margin ) in the twelve months ended december 31 , 2019. the increase is driven by increased revenue and gross profit as discussed above . the increases in operating expenses are excluded from adjusted ebitda . see “ non-gaap financial measures ” for a reconciliation of adjusted ebitda to net income and adjusted ebitda margin to net loss margin , the closest comparable gaap measures , for each of the periods presented . earnings per share loss per share attributable to heska was $ 1.66 per diluted share in the twelve months ended december 31 , 2020 compared to loss of $ 0.20 per diluted share in the twelve months ended december 31 , 2019. the decline is primarily due to increases in operating expenses as discussed above , interest and amortization charges relating to the notes , and increased deferred income tax expense . non-gaap earnings per share non-gaap eps was income of $ 0.74 per diluted share in the twelve months ended december 31 , 2020 compared to income of $ 0.49 per diluted share in the twelve months ended december 31 , 2019. the decline is primarily due to cash interest related to the notes and increased deferred income taxes . see “ non-gaap financial measures `` for a reconciliation of non-gaap eps to net ( loss ) income attributable to heska per diluted share , the closest comparable u.s. gaap measure , in each of the periods presented . non-gaap financial measures in addition to financial measures presented on the basis of accounting principles generally accepted in the u.s. ( “ u.s . gaap ” ) , we also present ebitda , adjusted ebitda , adjusted ebitda margin , and non-gaap net income ( loss ) per diluted share , which are non-gaap measures . these measures should be viewed as a supplement to , not substitute for , our results of operations presented under u.s. gaap . the non-gaap financial measures presented may not be comparable to similarly titled measures of other companies because they may not calculate their measures in the same manner . management uses ebitda , adjusted ebitda , adjusted ebitda margin and non-gaap net income ( loss ) per diluted share as key profitability measures , which are included in our quarterly analyses of our operating results to our senior management team , our annual budget and related goal setting and other performance measurements . we believe these non-gaap measures enhance our investors ' understanding of our business performance and that not adjusting for the items included in the reconciliations below would hinder comparison of the performance of our businesses on a period-over-period basis or with other businesses . -43- the following tables reconcile our most directly comparable as-reported financial measures calculated in accordance with gaap to our non-gaap financial measures ( in thousands , except percentages and per share amounts ) : replace_table_token_3_th ( 1 ) net loss used for reconciliation represents the `` net loss before equity in losses of unconsolidated affiliates . `` ( 2 ) to exclude the effect of one-time charges of $ 9.8 million for the year ended december 31 , 2020 compared to $ 1.0 million for the year ended december 31 , 2019. these costs were incurred primarily as part of the acquisition of scil . ( 3 ) net loss margin and adjusted ebitda margin are calculated as the ratio of net loss and adjusted ebitda , respectively , to revenue . replace_table_token_4_th ( 1 ) to exclude the effect of one-time charges of $ 9.8 million for the year ended december 31 , 2020 compared to $ 1.0 million for the year ended december 31 , 2019. these costs were incurred primarily as part of the acquisition of scil . ( 2 ) to exclude the effect of amortization of acquired intangibles of $ 5.2 million in the year ended december 31 , 2020 , compared to $ 1.3 million in the year ended december 31 , 2019. these costs were incurred as part of the purchase accounting adjustments for the acquisitions of scil , optomed and cvm . -44- ( 3 ) to exclude the effect of purchase accounting adjustments for inventory step up amortization and depreciation related to the step-up of fixed assets of $ 0.7 million for the year ended december 31 , 2020 . ( 4 ) represents income tax expense utilizing an estimated effective tax rate that adjusts for non-gaap measures including :

effect of currency translation on cash net effect of foreign currency translations on cash changed $ 789 thousand to a $ 793 thousand positive impact in 2020 , compared to a $ 4 thousand positive impact in 2019. the net effect of foreign currency translation on cash changed $ 14 thousand to a $ 4 thousand positive impact in 2019 from a $ 10 thousand negative impact in 2018. these effects are related to changes in exchange rates between the u.s. dollar and the swiss franc , euro , canadian dollar , australian dollar , and malaysian ringgit which are the functional currencies of our subsidiaries . material cash requirements the company has not entered into any transactions with unconsolidated entities whereby the company has financial guarantees , subordinated retained interests , derivative instruments , or other contingent arrangements that expose the company to material continuing risks , contingent liabilities , or any other obligation under a variable interest in an unconsolidated entity that provided financing , liquidity , market risk or credit risk support to the company , or engages in leasing , hedging or research and development services with the company . purchase obligations represent contractual agreements to purchase goods or services that are legally binding ; specify a fixed , minimum or range of quantities ; specify a fixed ,minimum , variable , or indexed price provision ; and specify approximate timing of the transaction .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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. ```effect of currency translation on cash net effect of foreign currency translations on cash changed $ 789 thousand to a $ 793 thousand positive impact in 2020 , compared to a $ 4 thousand positive impact in 2019. the net effect of foreign currency translation on cash changed $ 14 thousand to a $ 4 thousand positive impact in 2019 from a $ 10 thousand negative impact in 2018. these effects are related to changes in exchange rates between the u.s. dollar and the swiss franc , euro , canadian dollar , australian dollar , and malaysian ringgit which are the functional currencies of our subsidiaries . material cash requirements the company has not entered into any transactions with unconsolidated entities whereby the company has financial guarantees , subordinated retained interests , derivative instruments , or other contingent arrangements that expose the company to material continuing risks , contingent liabilities , or any other obligation under a variable interest in an unconsolidated entity that provided financing , liquidity , market risk or credit risk support to the company , or engages in leasing , hedging or research and development services with the company . purchase obligations represent contractual agreements to purchase goods or services that are legally binding ; specify a fixed , minimum or range of quantities ; specify a fixed ,minimum , variable , or indexed price provision ; and specify approximate timing of the transaction . ``` Suspicious Activity Report : radiography is the largest product offering in point of care imaging , which includes digital and computed radiography and ultrasound instruments . radiography solutions typically consist of a combination of hardware and software placed with a customer , often combined with an ongoing service and support contract . our experience has been that most of the revenue is generated at the time of sale in this area , in contrast to the point of care diagnostic laboratory placements discussed above where ongoing consumable revenue is often a larger component of economic value as a given instrument is used . -35- pharmaceuticals , vaccines and diagnostic ( `` pvd `` ) revenue , includes single use diagnostic and other tests , pharmaceuticals and biologicals as well as research and development , licensing and royalty revenue . since items in this area are often single use by their nature , our typical aim is to build customer satisfaction and loyalty for each product , generate repeat annual sales from existing customers and expand our customer base in the future . products in this area are both supplied by third parties and provided by us . major products and services in this area include heartworm diagnostic tests and preventives , and allergy test kits , allergy immunotherapy and testing . other vaccines and pharmaceuticals ( `` ovp `` ) revenue is generated in our usda , fda and dea licensed production facility in des moines , iowa . we view this facility as an asset which could allow us to control our cost of goods on any pharmaceuticals and vaccines that we may commercialize in the future . we have increased integration of this facility with our operations elsewhere . for example , virtually all of our u.s. inventory , excluding our imaging products , is stored at this facility and related fulfillment logistics are managed there . our ovp revenue includes vaccines and pharmaceuticals produced for third parties . ovp is attributable only to the north america segment . all of our products are ultimately sold primarily to or through veterinarians . in many cases , veterinarians will mark up their costs to their customers . the acceptance of our products by veterinarians is critical to our success . these products are sold directly to end users by us as well as through distribution relationships , such as the sale of kits to conduct blood testing to third-party veterinary diagnostic laboratories and sales to independent third-party distributors . revenue from direct sales and distribution relationships represented 72 % and 28 % , respectively , of revenue for the year ended december 31 , 2020 compared to 64 % and 36 % , respectively , for the year ended december 31 , 2019. segment change during the second quarter of 2020 , following the scil acquisition , the chief operating decision maker ( “ codm ” ) changed how he assesses performance and allocates resources based on geographic regions . as a result , the company determined it has two operating and reportable segments : north america and international . north america consists of the united states , canada and mexico . international consists of geographies outside of north america , primarily our operations in australia , france , germany , italy , malaysia , spain and switzerland . the company 's core strategic focus on point of care laboratory and imaging products is included in both segments . the north america segment also includes the contract manufacturing of vaccines and pharmaceutical products . the company revised prior comparative periods to conform to the current period segment presentation . refer to note 18 - segment reporting to the consolidated financial statements included in part ii . item 8 of this annual report on form 10-k for further information . impact of covid-19 pandemic and current economic environment beginning in the first quarter of 2020 , to limit the spread of covid-19 , governments took various actions including the issuance of stay-at-home policies and social distancing procedures and guidelines , causing some businesses to adjust , reduce or suspend business and operating activities . veterinary care is widely recognized as an `` essential `` service for pet owners , and veterinarians continued to deliver essential medical care for sick and injured pets . the stay-at-home policies deployed early in 2020 to combat the spread of covid-19 resulted in a decrease in companion animal clinical visits , including delay of elective procedures and wellness visits and as a result lower demand for diagnostic testing services . during the second and third quarters of 2020 , certain local , state and federal governments began to ease the stay-at-home policies and allowed more businesses and facilities to re-open , leading to a recovery in companion animal clinical visits and associated demand for our diagnostic products . finally , during the fourth quarter , increased restrictions , mainly in the european union , certain parts of canada and australia , in which we operate , re-emerged . the extent to which -36- the continuation , or another wave outbreak of covid-19 , or an outbreak of other health epidemics could impact our business , results of operations and financial condition , including the potential for write-offs or impairments of assets and suspension of capital investments , will depend on future developments . we are unable to predict with certainty the effects of the covid-19 pandemic on our customers , suppliers and vendors , as well as the actions of governments , and when and to what extent normal economic and operating conditions can resume ; these effects may differ from those assumed in our projected estimates . even after the covid-19 pandemic has subsided , we may continue to experience adverse impacts , mainly in our ability to place new capital equipment , to our business as a result of any economic impact that has occurred or may occur in the future . story_separator_special_tag refer to note 16 - convertible notes and credit facility to the consolidated financial statements included in part ii , item 8 of this annual report on form 10-k. income tax ( benefit ) expense in 2020 , we had total income tax expense of $ 0.2 million compared to a total income tax benefit in 2019 of $ 1.4 million . see note 5 - income taxes to the consolidated financial statements included in part ii . item 8 of this annual report on form 10-k for additional information regarding our income taxes . net ( loss ) income attributable to heska corporation net loss attributable to heska corporation was $ 14.4 million in 2020 , compared to net loss attributable to heska corporation of $ 1.5 million in 2019. the difference between this line item and `` net ( loss ) income after equity in losses of unconsolidated affiliates `` is the net income or loss attributable to the minority interest in our french subsidiary , optomed , which we purchased in february 2019. the difference between these line items was a gain of $ 0.4 million for 2020 , and a gain of $ 0.3 million for 2019. in october 2020 , the company acquired the remaining 30 % minority interest in optomed . -42- adjusted ebitda adjusted ebitda in the twelve months ended december 31 , 2020 was $ 22.3 million ( 11.3 % adjusted ebitda margin ) , compared to $ 10.4 million ( 8.5 % adjusted ebitda margin ) in the twelve months ended december 31 , 2019. the increase is driven by increased revenue and gross profit as discussed above . the increases in operating expenses are excluded from adjusted ebitda . see “ non-gaap financial measures ” for a reconciliation of adjusted ebitda to net income and adjusted ebitda margin to net loss margin , the closest comparable gaap measures , for each of the periods presented . earnings per share loss per share attributable to heska was $ 1.66 per diluted share in the twelve months ended december 31 , 2020 compared to loss of $ 0.20 per diluted share in the twelve months ended december 31 , 2019. the decline is primarily due to increases in operating expenses as discussed above , interest and amortization charges relating to the notes , and increased deferred income tax expense . non-gaap earnings per share non-gaap eps was income of $ 0.74 per diluted share in the twelve months ended december 31 , 2020 compared to income of $ 0.49 per diluted share in the twelve months ended december 31 , 2019. the decline is primarily due to cash interest related to the notes and increased deferred income taxes . see “ non-gaap financial measures `` for a reconciliation of non-gaap eps to net ( loss ) income attributable to heska per diluted share , the closest comparable u.s. gaap measure , in each of the periods presented . non-gaap financial measures in addition to financial measures presented on the basis of accounting principles generally accepted in the u.s. ( “ u.s . gaap ” ) , we also present ebitda , adjusted ebitda , adjusted ebitda margin , and non-gaap net income ( loss ) per diluted share , which are non-gaap measures . these measures should be viewed as a supplement to , not substitute for , our results of operations presented under u.s. gaap . the non-gaap financial measures presented may not be comparable to similarly titled measures of other companies because they may not calculate their measures in the same manner . management uses ebitda , adjusted ebitda , adjusted ebitda margin and non-gaap net income ( loss ) per diluted share as key profitability measures , which are included in our quarterly analyses of our operating results to our senior management team , our annual budget and related goal setting and other performance measurements . we believe these non-gaap measures enhance our investors ' understanding of our business performance and that not adjusting for the items included in the reconciliations below would hinder comparison of the performance of our businesses on a period-over-period basis or with other businesses . -43- the following tables reconcile our most directly comparable as-reported financial measures calculated in accordance with gaap to our non-gaap financial measures ( in thousands , except percentages and per share amounts ) : replace_table_token_3_th ( 1 ) net loss used for reconciliation represents the `` net loss before equity in losses of unconsolidated affiliates . `` ( 2 ) to exclude the effect of one-time charges of $ 9.8 million for the year ended december 31 , 2020 compared to $ 1.0 million for the year ended december 31 , 2019. these costs were incurred primarily as part of the acquisition of scil . ( 3 ) net loss margin and adjusted ebitda margin are calculated as the ratio of net loss and adjusted ebitda , respectively , to revenue . replace_table_token_4_th ( 1 ) to exclude the effect of one-time charges of $ 9.8 million for the year ended december 31 , 2020 compared to $ 1.0 million for the year ended december 31 , 2019. these costs were incurred primarily as part of the acquisition of scil . ( 2 ) to exclude the effect of amortization of acquired intangibles of $ 5.2 million in the year ended december 31 , 2020 , compared to $ 1.3 million in the year ended december 31 , 2019. these costs were incurred as part of the purchase accounting adjustments for the acquisitions of scil , optomed and cvm . -44- ( 3 ) to exclude the effect of purchase accounting adjustments for inventory step up amortization and depreciation related to the step-up of fixed assets of $ 0.7 million for the year ended december 31 , 2020 . ( 4 ) represents income tax expense utilizing an estimated effective tax rate that adjusts for non-gaap measures including :

2018 financial highlights among other financial highlights , for the year ended december 31 , 2018 : revenue increased $ 722.7 million , or 73.6 % , to $ 1,704.6 million , as compared to $ 981.9 million for the year ended december 31 , 2017 , primarily as a result of the increase in our fleet size ; cost of services ( exclusive of depreciation and amortization ) increased $ 456.8 million or 56.1 % to $ 1,270.6 million , as compared to $ 813.8 million for the year ended december 31 , 2017 , primarily as a result of the increase in fleet size , resulting in higher activity levels . cost of services as a percentage of revenue decreased to 74.5 % in 2018 compared to 82.9 % for the year ended december 31 , 2017 ; general and administrative expenses , inclusive of stock-based compensation ( “ g & a ” ) , increased $ 4.7 million , or 9.6 % to $ 54.0 million , as compared to $ 49.2 million for the december 31 , 2017 . g & a as a percentage of revenue decreased to 3.2 % in 2018 from 5.0 % for the year ended december 31 , 2017 ; diluted net income per common share was $ 2.00 , compared to $ 0.16 for the year ended december 31 , 2017 . 2019 outlook in 2019 , we continue to focus on providing best-in-class service to our customers , helping our customer improve their well economics while continuing to enhance the company 's profitability . we expect to achieve these objectives through : continuing to enhance our dedicated customer model to drive production efficiencies ; maintaining full utilization of our hydraulic fracturing fleets ; pursuing operational efficiencies and cost reduction strategies ; pursuing expansion opportunities for our non-hydraulic fracturing operations ; maintaining our existing relationships with our vendors and developing strategic relationships with new suppliers to ensure continuity ; exploring potential opportunities for mergers or acquisitions , focused on our growth , market opportunities and creating value to our shareholders . 32 our assets and operations through our pressure pumping segment , which includes cementing operations , we primarily provide hydraulic fracturing services ( inclusive of acidizing services ) to e & p companies in the permian basin . our modern hydraulic fracturing fleet has been designed to handle permian basin specific operating conditions and the region 's increasingly high‑intensity well completions , which are characterized by longer horizontal wellbores , more frac stages per lateral and increasing amounts of proppant per well . we have fully maintained our equipment throughout the recent industry downturn to ensure optimal performance and reliability . in addition to our core pressure pumping segment operations , we also offer a suite of complementary well completion and production services , including coiled tubing and flowback services . we believe these complementary services create operational efficiencies for our customers and allow us to capture a greater portion of their capital spending across the lifecycle of a well . additionally , we believe that these complementary services should benefit from a continued industry recovery and that we are well positioned to continue expanding these offerings in response to our customers ' increasing service needs and spending levels . how we generate revenue we generate revenue primarily through our pressure pumping segment , and more specifically , by providing hydraulic fracturing services to our customers . we own and operate a fleet of mobile hydraulic fracturing units and other auxiliary equipment to perform fracturing services . we also provide personnel and services that are tailored to meet each of our customers ' needs . we charge our customers on a per‑job basis , in which we set pricing terms after receiving full specifications for the requested job , including the lateral length of the customer 's wellbore , the number of frac stages per well , the amount of proppant to be employed and other parameters of the job . in addition to hydraulic fracturing services , we generate revenue through the complementary services that we provide to our customers , including cementing , coiled tubing and flowback services . these complementary services are provided through various contractual arrangements , including on a turnkey contract basis , in which we set a price to perform a particular job , or a daywork contract basis , in which we are paid a set price per day for our services . we are also sometimes paid by the hour for these complementary services . our revenue , profitability and cash flows are highly dependent upon prevailing crude oil prices and expectations about future prices . for many years , oil prices and markets have been extremely volatile . prices are affected by many factors beyond our control . west texas intermediate ( “ wti ” ) oil prices which declined significantly in 2015 and 2016 , but recovered somewhat during 2017 and 2018. the average wti oil prices per barrel was $ 65.1 , $ 50.8 and $ 43.3 for the years ended december 31 , 2018 , 2017 and 2016 , respectively . as a result of the recent recovery in oil prices , our industry has experienced a significant increase in both drilling and pressure pumping activity levels . looking forward , if oil prices increase , we believe u.s. rig counts will also increase , which may result in an increase in demand for drilling and pressure pumping services . higher oil and natural gas prices do not necessarily result in increased activity because demand for our services is generally driven by our customers ' expectations of future oil and natural gas prices , as well as rig count . story_separator_special_tag we calculate depreciation of property and equipment using the straight-line method . property and equipment impairment expense . there was no property and equipment impairment expense during the year ended december 31 , 2017 , compared to $ 6.3 million during the year ended december 31 , 2016. the non‑cash impairment expense in 2016 was associated with our drilling rigs , and was recognized as a result of depressed commodity prices and a negative future near‑term outlook for these assets . goodwill impairment expense . there was no goodwill impairment expense during the year ended december 31 , 2017 , compared to $ 1.2 million during the year ended december 31 , 2016. the non‑cash goodwill impairment expense in 2016 was as a result of the write‑down of goodwill related to our surface drilling reporting unit . loss on disposal of assets . loss on the disposal of assets increased 73.5 % , or $ 16.6 million , to $ 39.1 million for the year ended december 31 , 2017 , as compared to $ 22.5 million for the year ended december 31 , 2016. the increase was primarily attributable to greater service intensity of jobs completed , coupled with higher fleet size , activity levels and utilization of our equipment . interest expense . interest expense decreased 64.0 % , or $ 13.0 million , to $ 7.3 million for the year ended december 31 , 2017 , as compared to $ 20.4 million for the year ended december 31 , 2016. the decrease in interest expense was primarily attributable to a reduction in our average debt balance during 2017 due to the early retirement of our term loan and revolving credit facility in the first quarter of 2017. gain on extinguishment of debt . there was no debt extinguishment gain or loss during the year ended december 31 , 2017 , compared to the gain on extinguishment of debt , net of cost , of $ 7.0 million during the year ended december 31 , 2016. the gain on extinguishment of debt during 2016 was as a result of the auction process with our lenders to repurchase $ 37.5 million of our term loan at a 20 % discount to par value . 40 other expense . other expense was $ 1.0 million for the year ended december 31 , 2017 , as compared to $ 0.3 million for the year ended december 31 , 2016. the increase was primarily attributable to an increase in lenders related expenses , non-recurring listing related expenses , and partially offset by an increase in the unrealized gain resulting from the change in the fair value of our interest rate swap liability at december 31 , 2017 compared to december 31 , 2016. income tax expense/ ( benefit ) . income tax expense was $ 3.1 million for the year ended december 31 , 2017 , compared to income tax benefit of $ 28.0 million , for the year ended december 31 , 2016. the change from an income tax benefit to income tax expense is primarily due to the company 's reporting income before taxes during the year ended december 31 , 2017 , compared to a loss before taxes recorded during the year ended december 31 , 2016. the income before taxes generated is attributable to the increase in our revenue during the year ended december 31 , 2017 , compared to december 31 , 2016. additionally , the income tax expense during the year ended december 31 , 2017 , included a one-time deferred tax benefit offset of $ 3.4 million , resulting from the u.s. government enacted tax legislation commonly referred to as the tax cuts and jobs act ( “ tax act ” ) . liquidity and capital resources our liquidity is currently provided by ( i ) existing cash balances , ( ii ) operating cash flows and ( iii ) borrowings under our abl credit facility . our primary uses of cash will be to continue to fund our operations , support growth opportunities and satisfy debt payments . as of december 31 , 2018 , our total liquidity consists of cash and cash equivalents of $ 132.7 million , and $ 125.0 million of availability under our abl credit facility . there can be no assurance that operations and other capital resources will provide cash in sufficient amounts to maintain planned or future levels of capital expenditures . future cash flows are subject to a number of variables , and are highly dependent on the drilling , completion , and production activity by our customers , which in turn is highly dependent on oil and gas prices . depending upon market conditions and other factors , we may issue equity and debt securities or take other actions necessary to fund our business or meet our future long-term liquidity requirements . story_separator_special_tag the abl credit facility balance outstanding is exclusive of future commitment fees , interest or other fees since our potential future obligations thereunder are based on future events and can not be reasonably estimated . ( 2 ) operating leases include agreements for various office and maintenance locations . 43 recent accounting pronouncements disclosure concerning recently issued accounting standards is incorporated by reference to note 2 of our consolidated financial statements contained in this form 10-k. critical accounting policies and estimates the discussion and analysis of our financial condition and results of operations is based on our consolidated financial statements , which have been prepared in accordance with accounting principles generally acceptable in the united states of america . the preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements and the reported revenues and expenses during the years . we evaluate these estimates and assumptions on an ongoing basis and base our estimates on historical experience

cash and cash flows the following table sets forth our net cash provided by ( used in ) operating , investing and financing activities during the year at december 31 , 2018 , 2017 and 2016 , respectively . replace_table_token_9_th operating activities net cash provided by operating activities was $ 393.1 million for the year ended december 31 , 2018 , as compared to $ 109.3 million for the year ended december 31 , 2017 . the net increase of $ 283.8 million was primarily due to the increase in our revenue generating assets ( fleet size ) , which has resulted in increases in revenue and net income in the year , offset by our working capital needs resulting from higher fleet size and expanding activity levels . net cash provided by operating activities was $ 109.3 million for the year ended december 31 , 2017 , as compared to $ 10.7 million for the year ended december 31 , 2016. the net increase of $ 98.6 million was primarily due to an increase in revenue and net income in the year , resulting from an increase in customer activity , fleet size and demand for our services , and partially offset by the increase in our working capital needs resulting from higher fleet size and expanding activity levels . 41 investing activities net cash used in investing activities decreased to $ 280.6 million for the year ended december 31 , 2018 , from $ 281.5 million for the year ended december 31 , 2017 . the slight decrease was primarily attributable to the decrease in cash payment for capital expenditures during the year ended december 31 , 2018 , compared to the year ended december 31 , 2017 . net cash used in investing activities increased to $ 281.5 million for the year ended december 31 , 2017 , from $ 41.7 million for the year ended december 31 , 2016. the increase was primarily attributable to the additional hydraulic fracturing units and other ancillary equipment purchased and a marginal increase in maintenance capital expenditures , during the year ended december 31 , 2017 , compared to the year ended december 31 , 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 and cash flows the following table sets forth our net cash provided by ( used in ) operating , investing and financing activities during the year at december 31 , 2018 , 2017 and 2016 , respectively . replace_table_token_9_th operating activities net cash provided by operating activities was $ 393.1 million for the year ended december 31 , 2018 , as compared to $ 109.3 million for the year ended december 31 , 2017 . the net increase of $ 283.8 million was primarily due to the increase in our revenue generating assets ( fleet size ) , which has resulted in increases in revenue and net income in the year , offset by our working capital needs resulting from higher fleet size and expanding activity levels . net cash provided by operating activities was $ 109.3 million for the year ended december 31 , 2017 , as compared to $ 10.7 million for the year ended december 31 , 2016. the net increase of $ 98.6 million was primarily due to an increase in revenue and net income in the year , resulting from an increase in customer activity , fleet size and demand for our services , and partially offset by the increase in our working capital needs resulting from higher fleet size and expanding activity levels . 41 investing activities net cash used in investing activities decreased to $ 280.6 million for the year ended december 31 , 2018 , from $ 281.5 million for the year ended december 31 , 2017 . the slight decrease was primarily attributable to the decrease in cash payment for capital expenditures during the year ended december 31 , 2018 , compared to the year ended december 31 , 2017 . net cash used in investing activities increased to $ 281.5 million for the year ended december 31 , 2017 , from $ 41.7 million for the year ended december 31 , 2016. the increase was primarily attributable to the additional hydraulic fracturing units and other ancillary equipment purchased and a marginal increase in maintenance capital expenditures , during the year ended december 31 , 2017 , compared to the year ended december 31 , 2016. ``` Suspicious Activity Report : 2018 financial highlights among other financial highlights , for the year ended december 31 , 2018 : revenue increased $ 722.7 million , or 73.6 % , to $ 1,704.6 million , as compared to $ 981.9 million for the year ended december 31 , 2017 , primarily as a result of the increase in our fleet size ; cost of services ( exclusive of depreciation and amortization ) increased $ 456.8 million or 56.1 % to $ 1,270.6 million , as compared to $ 813.8 million for the year ended december 31 , 2017 , primarily as a result of the increase in fleet size , resulting in higher activity levels . cost of services as a percentage of revenue decreased to 74.5 % in 2018 compared to 82.9 % for the year ended december 31 , 2017 ; general and administrative expenses , inclusive of stock-based compensation ( “ g & a ” ) , increased $ 4.7 million , or 9.6 % to $ 54.0 million , as compared to $ 49.2 million for the december 31 , 2017 . g & a as a percentage of revenue decreased to 3.2 % in 2018 from 5.0 % for the year ended december 31 , 2017 ; diluted net income per common share was $ 2.00 , compared to $ 0.16 for the year ended december 31 , 2017 . 2019 outlook in 2019 , we continue to focus on providing best-in-class service to our customers , helping our customer improve their well economics while continuing to enhance the company 's profitability . we expect to achieve these objectives through : continuing to enhance our dedicated customer model to drive production efficiencies ; maintaining full utilization of our hydraulic fracturing fleets ; pursuing operational efficiencies and cost reduction strategies ; pursuing expansion opportunities for our non-hydraulic fracturing operations ; maintaining our existing relationships with our vendors and developing strategic relationships with new suppliers to ensure continuity ; exploring potential opportunities for mergers or acquisitions , focused on our growth , market opportunities and creating value to our shareholders . 32 our assets and operations through our pressure pumping segment , which includes cementing operations , we primarily provide hydraulic fracturing services ( inclusive of acidizing services ) to e & p companies in the permian basin . our modern hydraulic fracturing fleet has been designed to handle permian basin specific operating conditions and the region 's increasingly high‑intensity well completions , which are characterized by longer horizontal wellbores , more frac stages per lateral and increasing amounts of proppant per well . we have fully maintained our equipment throughout the recent industry downturn to ensure optimal performance and reliability . in addition to our core pressure pumping segment operations , we also offer a suite of complementary well completion and production services , including coiled tubing and flowback services . we believe these complementary services create operational efficiencies for our customers and allow us to capture a greater portion of their capital spending across the lifecycle of a well . additionally , we believe that these complementary services should benefit from a continued industry recovery and that we are well positioned to continue expanding these offerings in response to our customers ' increasing service needs and spending levels . how we generate revenue we generate revenue primarily through our pressure pumping segment , and more specifically , by providing hydraulic fracturing services to our customers . we own and operate a fleet of mobile hydraulic fracturing units and other auxiliary equipment to perform fracturing services . we also provide personnel and services that are tailored to meet each of our customers ' needs . we charge our customers on a per‑job basis , in which we set pricing terms after receiving full specifications for the requested job , including the lateral length of the customer 's wellbore , the number of frac stages per well , the amount of proppant to be employed and other parameters of the job . in addition to hydraulic fracturing services , we generate revenue through the complementary services that we provide to our customers , including cementing , coiled tubing and flowback services . these complementary services are provided through various contractual arrangements , including on a turnkey contract basis , in which we set a price to perform a particular job , or a daywork contract basis , in which we are paid a set price per day for our services . we are also sometimes paid by the hour for these complementary services . our revenue , profitability and cash flows are highly dependent upon prevailing crude oil prices and expectations about future prices . for many years , oil prices and markets have been extremely volatile . prices are affected by many factors beyond our control . west texas intermediate ( “ wti ” ) oil prices which declined significantly in 2015 and 2016 , but recovered somewhat during 2017 and 2018. the average wti oil prices per barrel was $ 65.1 , $ 50.8 and $ 43.3 for the years ended december 31 , 2018 , 2017 and 2016 , respectively . as a result of the recent recovery in oil prices , our industry has experienced a significant increase in both drilling and pressure pumping activity levels . looking forward , if oil prices increase , we believe u.s. rig counts will also increase , which may result in an increase in demand for drilling and pressure pumping services . higher oil and natural gas prices do not necessarily result in increased activity because demand for our services is generally driven by our customers ' expectations of future oil and natural gas prices , as well as rig count . story_separator_special_tag we calculate depreciation of property and equipment using the straight-line method . property and equipment impairment expense . there was no property and equipment impairment expense during the year ended december 31 , 2017 , compared to $ 6.3 million during the year ended december 31 , 2016. the non‑cash impairment expense in 2016 was associated with our drilling rigs , and was recognized as a result of depressed commodity prices and a negative future near‑term outlook for these assets . goodwill impairment expense . there was no goodwill impairment expense during the year ended december 31 , 2017 , compared to $ 1.2 million during the year ended december 31 , 2016. the non‑cash goodwill impairment expense in 2016 was as a result of the write‑down of goodwill related to our surface drilling reporting unit . loss on disposal of assets . loss on the disposal of assets increased 73.5 % , or $ 16.6 million , to $ 39.1 million for the year ended december 31 , 2017 , as compared to $ 22.5 million for the year ended december 31 , 2016. the increase was primarily attributable to greater service intensity of jobs completed , coupled with higher fleet size , activity levels and utilization of our equipment . interest expense . interest expense decreased 64.0 % , or $ 13.0 million , to $ 7.3 million for the year ended december 31 , 2017 , as compared to $ 20.4 million for the year ended december 31 , 2016. the decrease in interest expense was primarily attributable to a reduction in our average debt balance during 2017 due to the early retirement of our term loan and revolving credit facility in the first quarter of 2017. gain on extinguishment of debt . there was no debt extinguishment gain or loss during the year ended december 31 , 2017 , compared to the gain on extinguishment of debt , net of cost , of $ 7.0 million during the year ended december 31 , 2016. the gain on extinguishment of debt during 2016 was as a result of the auction process with our lenders to repurchase $ 37.5 million of our term loan at a 20 % discount to par value . 40 other expense . other expense was $ 1.0 million for the year ended december 31 , 2017 , as compared to $ 0.3 million for the year ended december 31 , 2016. the increase was primarily attributable to an increase in lenders related expenses , non-recurring listing related expenses , and partially offset by an increase in the unrealized gain resulting from the change in the fair value of our interest rate swap liability at december 31 , 2017 compared to december 31 , 2016. income tax expense/ ( benefit ) . income tax expense was $ 3.1 million for the year ended december 31 , 2017 , compared to income tax benefit of $ 28.0 million , for the year ended december 31 , 2016. the change from an income tax benefit to income tax expense is primarily due to the company 's reporting income before taxes during the year ended december 31 , 2017 , compared to a loss before taxes recorded during the year ended december 31 , 2016. the income before taxes generated is attributable to the increase in our revenue during the year ended december 31 , 2017 , compared to december 31 , 2016. additionally , the income tax expense during the year ended december 31 , 2017 , included a one-time deferred tax benefit offset of $ 3.4 million , resulting from the u.s. government enacted tax legislation commonly referred to as the tax cuts and jobs act ( “ tax act ” ) . liquidity and capital resources our liquidity is currently provided by ( i ) existing cash balances , ( ii ) operating cash flows and ( iii ) borrowings under our abl credit facility . our primary uses of cash will be to continue to fund our operations , support growth opportunities and satisfy debt payments . as of december 31 , 2018 , our total liquidity consists of cash and cash equivalents of $ 132.7 million , and $ 125.0 million of availability under our abl credit facility . there can be no assurance that operations and other capital resources will provide cash in sufficient amounts to maintain planned or future levels of capital expenditures . future cash flows are subject to a number of variables , and are highly dependent on the drilling , completion , and production activity by our customers , which in turn is highly dependent on oil and gas prices . depending upon market conditions and other factors , we may issue equity and debt securities or take other actions necessary to fund our business or meet our future long-term liquidity requirements . story_separator_special_tag the abl credit facility balance outstanding is exclusive of future commitment fees , interest or other fees since our potential future obligations thereunder are based on future events and can not be reasonably estimated . ( 2 ) operating leases include agreements for various office and maintenance locations . 43 recent accounting pronouncements disclosure concerning recently issued accounting standards is incorporated by reference to note 2 of our consolidated financial statements contained in this form 10-k. critical accounting policies and estimates the discussion and analysis of our financial condition and results of operations is based on our consolidated financial statements , which have been prepared in accordance with accounting principles generally acceptable in the united states of america . the preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the financial statements and the reported revenues and expenses during the years . we evaluate these estimates and assumptions on an ongoing basis and base our estimates on historical experience

each of these segments is organized and managed based upon the nature of the products and services they offer . see item 1. business for additional information on our segments . refining & marketing – refines crude oil and other feedstocks at our seven refineries in the gulf coast and midwest regions of the united states , purchases refined products and ethanol for resale and distributes refined products through various means , including barges , terminals and trucks that we own or operate . we sell refined products to wholesale marketing customers domestically and internationally , buyers on the spot market , our speedway business segment and to independent entrepreneurs who operate marathon ® retail outlets . speedway – sells transportation fuels and convenience products in the retail market in the midwest , east coast and southeast . midstream – includes the operations of mplx and certain other related operations . following the markwest merger , we changed the name of this segment from pipeline transportation to midstream to reflect its expanded business activities . there were no changes to the historical financial information reported for this segment . the midstream segment gathers , processes and transports natural gas ; gathers , transports , fractionates , stores and markets natural gas liquids and transports and stores crude oil and refined products . 50 executive summary results select results for 2015 and 2014 are reflected in the following table . replace_table_token_25_th net income attributable to mpc increased $ 328 million , or $ 0.87 per diluted share , in 2015 compared to 2014 , primarily due to our refining & marketing segment . refining & marketing segment income from operations increased in 2015 compared to 2014 , primarily due to higher crack spreads , favorable effects of changes in market structure on crude oil acquisition prices , more favorable net product price realizations compared to spot market reference prices and lower direct operating costs . these positive impacts were partially offset by unfavorable crude oil and feedstock acquisition costs relative to benchmark lls crude oil , the unfavorable effect of lower commodity prices on volumetric gains and a lower of cost or market ( “ lcm ” ) inventory valuation charge of $ 345 million . speedway segment income from operations increased in 2015 compared to 2014 , primarily due to the full year benefit in 2015 from the financial results of the locations acquired along the east coast and southeast on september 30 , 2014 , as well as higher light product margin . midstream segment income from operations increased in 2015 compared to 2014 , primarily due to the financial results of markwest , which are reflected in midstream segment income from the december 4 , 2015 merger date , partially offset by $ 30 million of merger transaction costs . mplx lp mplx is a publicly traded master limited partnership that was formed by us to own , operate , develop and acquire pipelines and other midstream assets related to the transportation and storage of crude oil , refined products and other hydrocarbon-based products . on december 4 , 2015 , mplx merged with markwest , whereby markwest became a wholly-owned subsidiary of mplx . prior to the markwest merger , we owned a 71.5 percent interest in mplx , which included our two percent general partner interest . each common unit of markwest issued and outstanding at the time of the markwest merger was converted into the right to receive 1.09 common units of mplx and as of december 31 , 2015 , our ownership interest in mplx was 20.4 percent , including our two percent general partner interest . due to our general partner interest , we have determined that we control mplx and therefore we consolidate mplx and record a noncontrolling interest for the 79.6 percent interest owned by the public . upon completion of the markwest merger , mplx assumed an aggregate principal amount of $ 4.1 billion in senior notes issued by markwest and markwest energy finance corporation . on december 22 , 2015 , mplx completed offers to exchange any and all outstanding markwest senior notes for ( 1 ) up to $ 4.1 billion aggregate principal amount of new notes issued by mplx having the same maturity and interest rates as the markwest senior notes and ( 2 ) cash of $ 1 for each $ 1,000 of principal amount exchanged . as of december 31 , 2015 , the exchange was completed on all the markwest senior notes except for 1.6 percent , or $ 63 million . in addition , markwest 's existing credit facility was terminated and the approximately $ 943 million outstanding under markwest 's bank revolving credit facility was repaid with $ 850 million of borrowings under mplx 's bank revolving credit facility and $ 93 million in cash . mplx 's initial assets consisted of a 51 percent general partner interest in pipe line holdings , which owns a network of common carrier crude oil and product pipeline systems and associated storage assets in the midwest and gulf coast regions of the united states , and a 100 percent interest in a butane storage cavern in west virginia . we originally retained a 49 percent limited partner interest in pipe line holdings . 51 on may 1 , 2013 , we sold a five percent interest in pipe line holdings to mplx for $ 100 million , which was financed by mplx with cash on hand . on march 1 , 2014 , we sold a 13 percent interest in pipe line holdings to mplx for $ 310 million . mplx financed this transaction with $ 40 million of cash on-hand and $ 270 million of borrowings on its bank revolving credit facility . story_separator_special_tag at december 31 , 2015 , market values for these inventories , which totaled approximately 4.0 billion gallons , were lower than their lifo cost basis and , as a result , we recorded an inventory valuation charge of $ 345 million to cost of revenues to value these inventories at the lower of cost or market . based on movements of refined product prices , future inventory valuation adjustments could have a negative or positive effect to earnings . such losses are subject to reversal in subsequent periods if prices recover . in 2016 , inventory market values have continued to decline and if they do not recover to december 31 , 2015 levels by march 31 , 2016 , an additional inventory valuation charge would be required in first quarter 2016. in the fourth quarter 2015 , we recorded a lifo charge of $ 45 million as a result of decreased levels in refined products and crude inventory volumes . since the lifo costs for these layers were based on 2014 costs , the liquidation of these layers resulted in a charge to income . in the fourth quarter of 2014 , we recognized builds in our refined product and crude inventories . these builds were based on 2014 costs which were significantly higher than fourth quarter 2014 costs and resulted in a benefit of approximately $ 240 million to income . for the full year , we recognized a lifo charge of $ 78 million in 2015 as compared to a lifo benefit of $ 265 million in 2014 . 55 refining & marketing segment income from operations is also affected by changes in refinery direct operating costs , which include turnaround and major maintenance , depreciation and amortization and other manufacturing expenses . changes in manufacturing costs are primarily driven by the cost of energy used by our refineries , including purchased natural gas , and the level of maintenance costs . planned major maintenance activities , or turnarounds , requiring temporary shutdown of certain refinery operating units , are periodically performed at each refinery . the following table lists the refineries that had significant planned turnaround and major maintenance activities for each of the last three years . year refinery 2015 catlettsburg , galveston bay , garyville and robinson 2014 catlettsburg , galveston bay , garyville and robinson 2013 canton , catlettsburg , galveston bay , garyville and robinson the table below sets forth the location and daily crude oil refining capacity of each of our refineries at december 31 of each year . replace_table_token_28_th speedway our retail marketing gross margin for gasoline and distillate , which is the price paid by consumers less the cost of refined products , including transportation , consumer excise taxes and bankcard processing fees , impacts the speedway segment profitability . numerous factors impact gasoline and distillate demand throughout the year , including local competition , seasonal demand fluctuations , the available wholesale supply , the level of economic activity in our marketing areas and weather conditions . gasoline demand in padd 2 is estimated to have grown for the third consecutive year , increasing by 2.3 percent in 2015 and approaching 2007 levels after climbing by 0.5 percent in 2014. meanwhile , gasoline demand in padd 1 is estimated to have grown by 3.0 percent in 2015 after a 2.4 percent increase in 2014 , returning to 2010 levels . continuing economic growth and year-on-year declines in prices supported gasoline demand . distillate demand in 2015 was softer than the very strong levels in 2014 which were supported by severe winter temperatures and a very strong harvest season . padd 2 distillate demand is estimated to have declined by 2.8 percent in 2015 after climbing by 4.3 percent to a record level in 2014. despite this decline , padd 2 demand is estimated to have remained near pre-recession highs . padd 1 estimated distillate demand declined 1.1 percent for 2016 with unseasonably warm weather in november and december after climbing by 4.9 percent in 2014. market demand increases for gasoline and distillate generally increase the product margin we can realize . the gross margin on merchandise sold at convenience stores historically has been less volatile and has contributed substantially to speedway 's gross margin . more than half of speedway 's gross margin was derived from merchandise sales in 2015 . speedway 's convenience stores offer a wide variety of merchandise , including prepared foods , beverages and non-food items . inventories are stated at the lower of cost or market . at december 31 , 2015 , market values for refined product inventories were lower than their lifo cost basis and , as a result , we recorded an inventory valuation charge of $ 25 million to cost of revenues to value these inventories at the lower of cost or market . based on movements of refined product prices , future inventory valuation adjustments could have a negative or positive effect to earnings . such losses are subject to reversal in subsequent periods if prices recover . in 2016 , inventory market values have continued to decline and if they do not recover to december 31 , 2015 levels by march 31 , 2016 , an additional inventory valuation charge would be required in first quarter 2016. midstream 56 ngl and natural gas prices are volatile and are impacted by changes in fundamental supply and demand , as well as market uncertainty , availability of ngl transportation and fractionation capacity and a variety of additional factors that are beyond our control . our profitability is directly affected by prevailing commodity prices primarily as a result of processing or conditioning at our own or third‑party processing plants , purchasing and selling or gathering and transporting volumes of natural gas at index‑related prices and the cost of third‑party transportation and fractionation services . to the extent that commodity prices influence the level of natural gas drilling by our producer

cash flows our cash and cash equivalents balance was $ 1.13 billion at december 31 , 2015 compared to $ 1.49 billion at december 31 , 2014 . net cash provided by ( used in ) operating activities , investing activities and financing activities for the past three years is presented in the following table . replace_table_token_41_th net cash provided by operating activities increased $ 951 million in 2015 compared to 2014 , primarily due to increased operating results , excluding non-cash charges such as the lcm inventory valuation charge and roux project impairment , partially offset by unfavorable changes in working capital of $ 330 million compared to 2014 . net cash provided by operating activities decreased $ 295 million in 2014 compared to 2013 , primarily due to unfavorable changes in working capital of $ 892 million compared to 2013 , partially offset by an increase in net income of $ 422 million and non-cash adjustments of $ 175 million . the above changes in working capital exclude changes in short-term debt . for 2015 , changes in working capital were a net $ 1.02 billion use of cash , primarily due to a decrease in accounts payable and accrued liabilities , partially offset by decreases in current receivables and inventories . changes from december 31 , 2014 to december 31 , 2015 per the consolidated balance sheets , excluding the impact of acquisitions , were as follows : accounts payable decreased $ 1.92 billion from year-end 2014 , primarily due to lower crude oil payable prices and volumes . current receivables decreased $ 1.13 billion from year-end 2014 , primarily due to lower refined product and crude oil receivable prices and lower crude oil receivable volumes . inventories decreased $ 417 million from year-end 2014 , primarily due to a $ 370 million lcm inventory valuation charge and lower refined product and crude oil inventory volumes .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```cash flows our cash and cash equivalents balance was $ 1.13 billion at december 31 , 2015 compared to $ 1.49 billion at december 31 , 2014 . net cash provided by ( used in ) operating activities , investing activities and financing activities for the past three years is presented in the following table . replace_table_token_41_th net cash provided by operating activities increased $ 951 million in 2015 compared to 2014 , primarily due to increased operating results , excluding non-cash charges such as the lcm inventory valuation charge and roux project impairment , partially offset by unfavorable changes in working capital of $ 330 million compared to 2014 . net cash provided by operating activities decreased $ 295 million in 2014 compared to 2013 , primarily due to unfavorable changes in working capital of $ 892 million compared to 2013 , partially offset by an increase in net income of $ 422 million and non-cash adjustments of $ 175 million . the above changes in working capital exclude changes in short-term debt . for 2015 , changes in working capital were a net $ 1.02 billion use of cash , primarily due to a decrease in accounts payable and accrued liabilities , partially offset by decreases in current receivables and inventories . changes from december 31 , 2014 to december 31 , 2015 per the consolidated balance sheets , excluding the impact of acquisitions , were as follows : accounts payable decreased $ 1.92 billion from year-end 2014 , primarily due to lower crude oil payable prices and volumes . current receivables decreased $ 1.13 billion from year-end 2014 , primarily due to lower refined product and crude oil receivable prices and lower crude oil receivable volumes . inventories decreased $ 417 million from year-end 2014 , primarily due to a $ 370 million lcm inventory valuation charge and lower refined product and crude oil inventory volumes . ``` Suspicious Activity Report : each of these segments is organized and managed based upon the nature of the products and services they offer . see item 1. business for additional information on our segments . refining & marketing – refines crude oil and other feedstocks at our seven refineries in the gulf coast and midwest regions of the united states , purchases refined products and ethanol for resale and distributes refined products through various means , including barges , terminals and trucks that we own or operate . we sell refined products to wholesale marketing customers domestically and internationally , buyers on the spot market , our speedway business segment and to independent entrepreneurs who operate marathon ® retail outlets . speedway – sells transportation fuels and convenience products in the retail market in the midwest , east coast and southeast . midstream – includes the operations of mplx and certain other related operations . following the markwest merger , we changed the name of this segment from pipeline transportation to midstream to reflect its expanded business activities . there were no changes to the historical financial information reported for this segment . the midstream segment gathers , processes and transports natural gas ; gathers , transports , fractionates , stores and markets natural gas liquids and transports and stores crude oil and refined products . 50 executive summary results select results for 2015 and 2014 are reflected in the following table . replace_table_token_25_th net income attributable to mpc increased $ 328 million , or $ 0.87 per diluted share , in 2015 compared to 2014 , primarily due to our refining & marketing segment . refining & marketing segment income from operations increased in 2015 compared to 2014 , primarily due to higher crack spreads , favorable effects of changes in market structure on crude oil acquisition prices , more favorable net product price realizations compared to spot market reference prices and lower direct operating costs . these positive impacts were partially offset by unfavorable crude oil and feedstock acquisition costs relative to benchmark lls crude oil , the unfavorable effect of lower commodity prices on volumetric gains and a lower of cost or market ( “ lcm ” ) inventory valuation charge of $ 345 million . speedway segment income from operations increased in 2015 compared to 2014 , primarily due to the full year benefit in 2015 from the financial results of the locations acquired along the east coast and southeast on september 30 , 2014 , as well as higher light product margin . midstream segment income from operations increased in 2015 compared to 2014 , primarily due to the financial results of markwest , which are reflected in midstream segment income from the december 4 , 2015 merger date , partially offset by $ 30 million of merger transaction costs . mplx lp mplx is a publicly traded master limited partnership that was formed by us to own , operate , develop and acquire pipelines and other midstream assets related to the transportation and storage of crude oil , refined products and other hydrocarbon-based products . on december 4 , 2015 , mplx merged with markwest , whereby markwest became a wholly-owned subsidiary of mplx . prior to the markwest merger , we owned a 71.5 percent interest in mplx , which included our two percent general partner interest . each common unit of markwest issued and outstanding at the time of the markwest merger was converted into the right to receive 1.09 common units of mplx and as of december 31 , 2015 , our ownership interest in mplx was 20.4 percent , including our two percent general partner interest . due to our general partner interest , we have determined that we control mplx and therefore we consolidate mplx and record a noncontrolling interest for the 79.6 percent interest owned by the public . upon completion of the markwest merger , mplx assumed an aggregate principal amount of $ 4.1 billion in senior notes issued by markwest and markwest energy finance corporation . on december 22 , 2015 , mplx completed offers to exchange any and all outstanding markwest senior notes for ( 1 ) up to $ 4.1 billion aggregate principal amount of new notes issued by mplx having the same maturity and interest rates as the markwest senior notes and ( 2 ) cash of $ 1 for each $ 1,000 of principal amount exchanged . as of december 31 , 2015 , the exchange was completed on all the markwest senior notes except for 1.6 percent , or $ 63 million . in addition , markwest 's existing credit facility was terminated and the approximately $ 943 million outstanding under markwest 's bank revolving credit facility was repaid with $ 850 million of borrowings under mplx 's bank revolving credit facility and $ 93 million in cash . mplx 's initial assets consisted of a 51 percent general partner interest in pipe line holdings , which owns a network of common carrier crude oil and product pipeline systems and associated storage assets in the midwest and gulf coast regions of the united states , and a 100 percent interest in a butane storage cavern in west virginia . we originally retained a 49 percent limited partner interest in pipe line holdings . 51 on may 1 , 2013 , we sold a five percent interest in pipe line holdings to mplx for $ 100 million , which was financed by mplx with cash on hand . on march 1 , 2014 , we sold a 13 percent interest in pipe line holdings to mplx for $ 310 million . mplx financed this transaction with $ 40 million of cash on-hand and $ 270 million of borrowings on its bank revolving credit facility . story_separator_special_tag at december 31 , 2015 , market values for these inventories , which totaled approximately 4.0 billion gallons , were lower than their lifo cost basis and , as a result , we recorded an inventory valuation charge of $ 345 million to cost of revenues to value these inventories at the lower of cost or market . based on movements of refined product prices , future inventory valuation adjustments could have a negative or positive effect to earnings . such losses are subject to reversal in subsequent periods if prices recover . in 2016 , inventory market values have continued to decline and if they do not recover to december 31 , 2015 levels by march 31 , 2016 , an additional inventory valuation charge would be required in first quarter 2016. in the fourth quarter 2015 , we recorded a lifo charge of $ 45 million as a result of decreased levels in refined products and crude inventory volumes . since the lifo costs for these layers were based on 2014 costs , the liquidation of these layers resulted in a charge to income . in the fourth quarter of 2014 , we recognized builds in our refined product and crude inventories . these builds were based on 2014 costs which were significantly higher than fourth quarter 2014 costs and resulted in a benefit of approximately $ 240 million to income . for the full year , we recognized a lifo charge of $ 78 million in 2015 as compared to a lifo benefit of $ 265 million in 2014 . 55 refining & marketing segment income from operations is also affected by changes in refinery direct operating costs , which include turnaround and major maintenance , depreciation and amortization and other manufacturing expenses . changes in manufacturing costs are primarily driven by the cost of energy used by our refineries , including purchased natural gas , and the level of maintenance costs . planned major maintenance activities , or turnarounds , requiring temporary shutdown of certain refinery operating units , are periodically performed at each refinery . the following table lists the refineries that had significant planned turnaround and major maintenance activities for each of the last three years . year refinery 2015 catlettsburg , galveston bay , garyville and robinson 2014 catlettsburg , galveston bay , garyville and robinson 2013 canton , catlettsburg , galveston bay , garyville and robinson the table below sets forth the location and daily crude oil refining capacity of each of our refineries at december 31 of each year . replace_table_token_28_th speedway our retail marketing gross margin for gasoline and distillate , which is the price paid by consumers less the cost of refined products , including transportation , consumer excise taxes and bankcard processing fees , impacts the speedway segment profitability . numerous factors impact gasoline and distillate demand throughout the year , including local competition , seasonal demand fluctuations , the available wholesale supply , the level of economic activity in our marketing areas and weather conditions . gasoline demand in padd 2 is estimated to have grown for the third consecutive year , increasing by 2.3 percent in 2015 and approaching 2007 levels after climbing by 0.5 percent in 2014. meanwhile , gasoline demand in padd 1 is estimated to have grown by 3.0 percent in 2015 after a 2.4 percent increase in 2014 , returning to 2010 levels . continuing economic growth and year-on-year declines in prices supported gasoline demand . distillate demand in 2015 was softer than the very strong levels in 2014 which were supported by severe winter temperatures and a very strong harvest season . padd 2 distillate demand is estimated to have declined by 2.8 percent in 2015 after climbing by 4.3 percent to a record level in 2014. despite this decline , padd 2 demand is estimated to have remained near pre-recession highs . padd 1 estimated distillate demand declined 1.1 percent for 2016 with unseasonably warm weather in november and december after climbing by 4.9 percent in 2014. market demand increases for gasoline and distillate generally increase the product margin we can realize . the gross margin on merchandise sold at convenience stores historically has been less volatile and has contributed substantially to speedway 's gross margin . more than half of speedway 's gross margin was derived from merchandise sales in 2015 . speedway 's convenience stores offer a wide variety of merchandise , including prepared foods , beverages and non-food items . inventories are stated at the lower of cost or market . at december 31 , 2015 , market values for refined product inventories were lower than their lifo cost basis and , as a result , we recorded an inventory valuation charge of $ 25 million to cost of revenues to value these inventories at the lower of cost or market . based on movements of refined product prices , future inventory valuation adjustments could have a negative or positive effect to earnings . such losses are subject to reversal in subsequent periods if prices recover . in 2016 , inventory market values have continued to decline and if they do not recover to december 31 , 2015 levels by march 31 , 2016 , an additional inventory valuation charge would be required in first quarter 2016. midstream 56 ngl and natural gas prices are volatile and are impacted by changes in fundamental supply and demand , as well as market uncertainty , availability of ngl transportation and fractionation capacity and a variety of additional factors that are beyond our control . our profitability is directly affected by prevailing commodity prices primarily as a result of processing or conditioning at our own or third‑party processing plants , purchasing and selling or gathering and transporting volumes of natural gas at index‑related prices and the cost of third‑party transportation and fractionation services . to the extent that commodity prices influence the level of natural gas drilling by our producer

liquidity sources management has reviewed all primary and secondary sources of liquidity in preparation for any unforeseen funding needs due to the covid-19 pandemic and prioritized based on available capacity , term flexibility , and cost . -29- as of september 30 , 2020 , the company had adequate sources of liquidity ( excluding the company 's ability to participate in the paycheck protection program liquidity facility ) . capital strength the company 's capital ratios continue to exceed the highest required regulatory benchmark levels . as of september 30 , 2020 , common equity tier 1 capital ratio was 14.25 percent , tier 1 leverage ratio was 11.87 percent , tier 1 risk-based capital ratio was 14.25 percent and the total risk-based capital ratio was 17.85 percent . deferral requests as of september 30 , 2020 , the company had 43 covid-19 loan modification agreements with respect to $ 147.9 million representing 14.2 percent of loans outstanding . the covid-19 loan modifications do not classify as tdrs as they fall under the cares act section 4013 , and f urther details regarding these modifications are provided in the table below . at january 15 , 2020 , the company had 15 covid-19-related modified loan deferrals totaling $ 71.3 million or 7.1 % of total loans . of the remaining $ 71.3 million deferrals , approximately $ 37.3 million or 52.3 % of the deferrals are paying the contractual interest payments . for loans subject to the program , each borrower is required to resume making regularly scheduled loan payments at the end of the modification period and the deferred amounts will be moved to the end of the loan term . management anticipates this activity will continue beyond fiscal year 2020. replace_table_token_2_th -30- certain industries are widely expected to be particularly impacted by social distancing , quarantines , and the economic impact of the covid-19 pandemic , such as the following : replace_table_token_3_th allowance for loan losses the allowance for loan losses represents management 's estimate of probable loan losses inherent in the loan portfolio . determining the amount of the allowance for loan losses 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 , and consideration of current economic trends and conditions , all of which may be susceptible to significant change . the loan portfolio also represents the largest asset type on the company 's consolidated statements of financial condition . the evaluation of the adequacy of the allowance for loan losses includes , among other factors , an analysis of historical loss rates by loan category applied to current loan totals and qualitative factors . however , actual loan losses may be higher or lower than historical trends , which vary . actual losses on specified problem loans , which also are provided for in the evaluation , may vary from estimated loss percentages , which are established based upon a limited number of potential loss classifications . the allowance for loan losses is established through a provision for loan losses charged to expense . management believes that the current allowance for loan losses will be adequate to absorb loan losses on existing loans that may become uncollectible based on the evaluation of known and inherent risks in the loan portfolio . the evaluation takes into consideration such factors as changes in the nature and size of the portfolio , overall portfolio quality , and specific problem loans and current economic conditions which may affect our borrowers ' ability to pay . the evaluation also details historical losses by loan category and the resulting loan loss rates which are projected for current loan total amounts . loss estimates for specified problem loans are also detailed . in addition , the occ , as an integral part of its examination process , periodically reviews our allowance for loan losses . the occ may require us to make additional provisions for loan losses based upon information available at the time of the examination . all of the factors considered in the analysis of the adequacy of the allowance for loan losses may be subject to change . to the extent actual outcomes differ from management estimates , additional provisions for loan losses may be required that could materially adversely impact earnings in future periods . qualitative or environmental factors that may result in further adjustments to the quantitative analyses include items such as changes in lending policies and procedures , economic and business conditions , nature and volume of the portfolio , changes in delinquency , concentration of credit trends , and value of underlying collateral . the total net adjustments due to all qualitative factors increased the allowance for loan losses by approximately $ 9.2 million and $ 6.7 million at september 30 , 2020 and september 30 , 2019 , respectively . an unallocated component is maintained to cover uncertainties that could affect management 's estimate of probable losses . the unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio . other real estate owned assets acquired through foreclosure consist of oreo and financial assets acquired from debtors . oreo is carried at the lower of cost or fair value , less estimated selling costs . the fair value of oreo is determined using current -31- market appraisals obtained from approved independent appraisers , agreements of sale , and comparable market analysis from real estate brokers , where applicable . story_separator_special_tag -37- the increase on the sale of investments resulted from managing and optimizing normal portfolio activity , while the gain on sale of loans was a result of a strategic effort to originate and sell residential loans in the current low interest rate environment . other expense the following table presents the principal categories of other expense for each of the years in the two-year period ended september 30 , 2020. replace_table_token_8_th for the fiscal year ended september 30 , 2020 , total other expense increased $ 815,000 , or 4.7 percent , compared to the fiscal year ended september 30 , 2019. this increase primarily reflects a $ 348,000 increase in salaries and employee benefits , a $ 247,000 increase in the pennsylvania shares tax , and a $ 196,000 increase in professional fees . these increases were partially offset by a $ 104,000 decrease in oreo expense , net , and a $ 66,000 decrease in the federal deposit insurance premium . the increase in salaries and employee benefits during the fiscal year ended september 30 , 2020 reflects normal increases to salary and benefits and additional hires to support overall franchise growth . the increased pennsylvania shares tax was due to the bank not being subject to this tax until the second quarter of 2019. the increase in professional fees was due to higher legal and professional services expenses of $ 182,000 and $ 160,000 , respectively , partially offset by lower audit and accounting expenses of approximately $ 143,000. the decrease in oreo expense , net , was due to successfully managing and leasing the space while actively working to dispose of the associated property . the reduction in the federal deposit insurance premium resulted from the deposit insurance fund reserve ratio exceeding the official required reserve ratio , which in turn generated credits to qualified participating banks . these credits have been fully utilized in fiscal 2020. financial condition investment portfolio for the year ended september 30 , 2020 , the average volume of investment securities decreased by $ 5.1 million to approximately $ 43.2 million or 3.7 percent of average interest- earning assets , from $ 48.3 million or 4.3 percent of average interest- earning assets , in fiscal 2019. at september 30 , 2020 , the total investment portfolio amounted to $ 46.5 million , an increase of $ 5.6 million from september 30 , 2019. the increase in the investment portfolio was primarily due to purchases of $ 30.1 million , partially offset by maturities , calls and principal repayments in the amount of $ 15.8 million and sales in the amount of $ 8.9 million during fiscal 2020. at september 30 , 2020 , the principal components of the investment portfolio were government agency obligations , federal agency obligations , including -38- mortgage-backed securities , obligations of u.s. states and political subdivision , corporate bonds and notes , a trust preferred security and equity securities . during the year ended september 30 , 2020 , volume related factors decreased investment revenue by $ 125,000 , while rate related factors increased investment revenue by $ 108,000. the yield on investments increased by twenty-five basis points to 2.71 percent from a yield of 2.46 percent during the year ended september 30 , 2019. the investment revenue decreased in fiscal 2020 compared to fiscal 2019 due primarily to decreased average volume . as of september 30 , 2020 , the estimated fair value of the available-for-sale securities disclosed below was primarily dependent upon the movement in market interest rates , particularly given the negligible inherent credit risk associated with these securities . these investment securities are comprised of securities that are rated investment grade by at least one bond credit rating service . as of september 30 , 2020 , the company held five corporate securities and one single issuer trust preferred security which were in an unrealized loss position . although the fair value will fluctuate as the market interest rates move , management believes that these fair values will recover as the underlying portfolios mature and are reinvested in market rate yielding investments . the company does not intend to sell and expects that it is not more likely than not that it will be required to sell these securities until such time as the value recovers or the securities mature . management does not believe any individual unrealized loss as of september 30 , 2020 represents other-than-temporary impairment . securities available-for-sale are a part of the company 's interest rate risk management strategy and may be sold in response to changes in interest rates , changes in prepayment risk , liquidity management and other factors . the company continues to reposition the investment portfolio as part of an overall corporate-wide strategy to produce reasonable and consistent margins where feasible , while attempting to limit risks inherent in the company 's balance sheet . for fiscal 2020 , proceeds of available-for-sale investment securities sold amounted to approximately $ 8.9 million . there were gains of approximately $ 352,000 associated with these sales . for fiscal 2019 , proceeds of available-for-sale investment securities sold amounted to approximately $ 2.1 million . gross realized gains on investment securities sold amounted to approximately $ 28,000. the varying amount of sales from the available-for-sale portfolio over the past few years , reflect the significant volatility present in the market . given the historic low interest rates prevalent in the market , it is necessary for the company to protect itself from interest rate exposure . securities that once appeared to be sound long-term investments can , after changes in the market , become securities that the company wishes to sell to avoid losses and mismatches of interest-earning assets and interest-bearing liabilities at a later time . -39- the table below illustrates the maturity distribution and weighted average yield for investment securities at september 30 , 20 20 , based on a contractual maturity . one year

debt with similar risks , and which are currently performing in accordance with the modified terms . for additional information regarding loans , see note 8 of the notes to the consolidated financial statements . the following table sets forth , as of the dates indicated , the amount of the company 's non-accrual loans , accruing loans past due 90 days or more , oreo and troubled debt restructurings . replace_table_token_14_th at september 30 , 2020 , non-performing assets totaled $ 25.7 million , or 2.12 percent of total assets , as compared with $ 8.1 million , or 0.64 percent , at september 30 , 2019. the increase in non-accrual loans was primarily due to additions of three commercial real estate loans totaling $ 17.6 million , four residential mortgage loans totaling $ 617,000 , and two second mortgage consumer loans totaling $ 64,000. subsequent to the fiscal year ended september 30 , 2020 , a $ 6.7 million non-accrual tdr commercial loan was returned to accruing status on january 4 , 2021. the loan is performing in accordance with its modified terms and has a positive payment history . had this occurred prior to september 30 , 2020 , it would have reduced non-accrual loans from $ 19.9 million to $ 13.2 million and total non-performing assets from $ 25.7 million to $ 19.1 million . tdr loans totaled $ 21.7 million and $ 13.3 million at september 30 , 2020 and at september 30 , 2019 , respectively . a total of $ 13.4 million and $ 12.2 million of tdr loans were performing pursuant to the terms of their respective modifications at september 30 , 2020 and september 30 , 2019 , respectively .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```debt with similar risks , and which are currently performing in accordance with the modified terms . for additional information regarding loans , see note 8 of the notes to the consolidated financial statements . the following table sets forth , as of the dates indicated , the amount of the company 's non-accrual loans , accruing loans past due 90 days or more , oreo and troubled debt restructurings . replace_table_token_14_th at september 30 , 2020 , non-performing assets totaled $ 25.7 million , or 2.12 percent of total assets , as compared with $ 8.1 million , or 0.64 percent , at september 30 , 2019. the increase in non-accrual loans was primarily due to additions of three commercial real estate loans totaling $ 17.6 million , four residential mortgage loans totaling $ 617,000 , and two second mortgage consumer loans totaling $ 64,000. subsequent to the fiscal year ended september 30 , 2020 , a $ 6.7 million non-accrual tdr commercial loan was returned to accruing status on january 4 , 2021. the loan is performing in accordance with its modified terms and has a positive payment history . had this occurred prior to september 30 , 2020 , it would have reduced non-accrual loans from $ 19.9 million to $ 13.2 million and total non-performing assets from $ 25.7 million to $ 19.1 million . tdr loans totaled $ 21.7 million and $ 13.3 million at september 30 , 2020 and at september 30 , 2019 , respectively . a total of $ 13.4 million and $ 12.2 million of tdr loans were performing pursuant to the terms of their respective modifications at september 30 , 2020 and september 30 , 2019 , respectively . ``` Suspicious Activity Report : liquidity sources management has reviewed all primary and secondary sources of liquidity in preparation for any unforeseen funding needs due to the covid-19 pandemic and prioritized based on available capacity , term flexibility , and cost . -29- as of september 30 , 2020 , the company had adequate sources of liquidity ( excluding the company 's ability to participate in the paycheck protection program liquidity facility ) . capital strength the company 's capital ratios continue to exceed the highest required regulatory benchmark levels . as of september 30 , 2020 , common equity tier 1 capital ratio was 14.25 percent , tier 1 leverage ratio was 11.87 percent , tier 1 risk-based capital ratio was 14.25 percent and the total risk-based capital ratio was 17.85 percent . deferral requests as of september 30 , 2020 , the company had 43 covid-19 loan modification agreements with respect to $ 147.9 million representing 14.2 percent of loans outstanding . the covid-19 loan modifications do not classify as tdrs as they fall under the cares act section 4013 , and f urther details regarding these modifications are provided in the table below . at january 15 , 2020 , the company had 15 covid-19-related modified loan deferrals totaling $ 71.3 million or 7.1 % of total loans . of the remaining $ 71.3 million deferrals , approximately $ 37.3 million or 52.3 % of the deferrals are paying the contractual interest payments . for loans subject to the program , each borrower is required to resume making regularly scheduled loan payments at the end of the modification period and the deferred amounts will be moved to the end of the loan term . management anticipates this activity will continue beyond fiscal year 2020. replace_table_token_2_th -30- certain industries are widely expected to be particularly impacted by social distancing , quarantines , and the economic impact of the covid-19 pandemic , such as the following : replace_table_token_3_th allowance for loan losses the allowance for loan losses represents management 's estimate of probable loan losses inherent in the loan portfolio . determining the amount of the allowance for loan losses 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 , and consideration of current economic trends and conditions , all of which may be susceptible to significant change . the loan portfolio also represents the largest asset type on the company 's consolidated statements of financial condition . the evaluation of the adequacy of the allowance for loan losses includes , among other factors , an analysis of historical loss rates by loan category applied to current loan totals and qualitative factors . however , actual loan losses may be higher or lower than historical trends , which vary . actual losses on specified problem loans , which also are provided for in the evaluation , may vary from estimated loss percentages , which are established based upon a limited number of potential loss classifications . the allowance for loan losses is established through a provision for loan losses charged to expense . management believes that the current allowance for loan losses will be adequate to absorb loan losses on existing loans that may become uncollectible based on the evaluation of known and inherent risks in the loan portfolio . the evaluation takes into consideration such factors as changes in the nature and size of the portfolio , overall portfolio quality , and specific problem loans and current economic conditions which may affect our borrowers ' ability to pay . the evaluation also details historical losses by loan category and the resulting loan loss rates which are projected for current loan total amounts . loss estimates for specified problem loans are also detailed . in addition , the occ , as an integral part of its examination process , periodically reviews our allowance for loan losses . the occ may require us to make additional provisions for loan losses based upon information available at the time of the examination . all of the factors considered in the analysis of the adequacy of the allowance for loan losses may be subject to change . to the extent actual outcomes differ from management estimates , additional provisions for loan losses may be required that could materially adversely impact earnings in future periods . qualitative or environmental factors that may result in further adjustments to the quantitative analyses include items such as changes in lending policies and procedures , economic and business conditions , nature and volume of the portfolio , changes in delinquency , concentration of credit trends , and value of underlying collateral . the total net adjustments due to all qualitative factors increased the allowance for loan losses by approximately $ 9.2 million and $ 6.7 million at september 30 , 2020 and september 30 , 2019 , respectively . an unallocated component is maintained to cover uncertainties that could affect management 's estimate of probable losses . the unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio . other real estate owned assets acquired through foreclosure consist of oreo and financial assets acquired from debtors . oreo is carried at the lower of cost or fair value , less estimated selling costs . the fair value of oreo is determined using current -31- market appraisals obtained from approved independent appraisers , agreements of sale , and comparable market analysis from real estate brokers , where applicable . story_separator_special_tag -37- the increase on the sale of investments resulted from managing and optimizing normal portfolio activity , while the gain on sale of loans was a result of a strategic effort to originate and sell residential loans in the current low interest rate environment . other expense the following table presents the principal categories of other expense for each of the years in the two-year period ended september 30 , 2020. replace_table_token_8_th for the fiscal year ended september 30 , 2020 , total other expense increased $ 815,000 , or 4.7 percent , compared to the fiscal year ended september 30 , 2019. this increase primarily reflects a $ 348,000 increase in salaries and employee benefits , a $ 247,000 increase in the pennsylvania shares tax , and a $ 196,000 increase in professional fees . these increases were partially offset by a $ 104,000 decrease in oreo expense , net , and a $ 66,000 decrease in the federal deposit insurance premium . the increase in salaries and employee benefits during the fiscal year ended september 30 , 2020 reflects normal increases to salary and benefits and additional hires to support overall franchise growth . the increased pennsylvania shares tax was due to the bank not being subject to this tax until the second quarter of 2019. the increase in professional fees was due to higher legal and professional services expenses of $ 182,000 and $ 160,000 , respectively , partially offset by lower audit and accounting expenses of approximately $ 143,000. the decrease in oreo expense , net , was due to successfully managing and leasing the space while actively working to dispose of the associated property . the reduction in the federal deposit insurance premium resulted from the deposit insurance fund reserve ratio exceeding the official required reserve ratio , which in turn generated credits to qualified participating banks . these credits have been fully utilized in fiscal 2020. financial condition investment portfolio for the year ended september 30 , 2020 , the average volume of investment securities decreased by $ 5.1 million to approximately $ 43.2 million or 3.7 percent of average interest- earning assets , from $ 48.3 million or 4.3 percent of average interest- earning assets , in fiscal 2019. at september 30 , 2020 , the total investment portfolio amounted to $ 46.5 million , an increase of $ 5.6 million from september 30 , 2019. the increase in the investment portfolio was primarily due to purchases of $ 30.1 million , partially offset by maturities , calls and principal repayments in the amount of $ 15.8 million and sales in the amount of $ 8.9 million during fiscal 2020. at september 30 , 2020 , the principal components of the investment portfolio were government agency obligations , federal agency obligations , including -38- mortgage-backed securities , obligations of u.s. states and political subdivision , corporate bonds and notes , a trust preferred security and equity securities . during the year ended september 30 , 2020 , volume related factors decreased investment revenue by $ 125,000 , while rate related factors increased investment revenue by $ 108,000. the yield on investments increased by twenty-five basis points to 2.71 percent from a yield of 2.46 percent during the year ended september 30 , 2019. the investment revenue decreased in fiscal 2020 compared to fiscal 2019 due primarily to decreased average volume . as of september 30 , 2020 , the estimated fair value of the available-for-sale securities disclosed below was primarily dependent upon the movement in market interest rates , particularly given the negligible inherent credit risk associated with these securities . these investment securities are comprised of securities that are rated investment grade by at least one bond credit rating service . as of september 30 , 2020 , the company held five corporate securities and one single issuer trust preferred security which were in an unrealized loss position . although the fair value will fluctuate as the market interest rates move , management believes that these fair values will recover as the underlying portfolios mature and are reinvested in market rate yielding investments . the company does not intend to sell and expects that it is not more likely than not that it will be required to sell these securities until such time as the value recovers or the securities mature . management does not believe any individual unrealized loss as of september 30 , 2020 represents other-than-temporary impairment . securities available-for-sale are a part of the company 's interest rate risk management strategy and may be sold in response to changes in interest rates , changes in prepayment risk , liquidity management and other factors . the company continues to reposition the investment portfolio as part of an overall corporate-wide strategy to produce reasonable and consistent margins where feasible , while attempting to limit risks inherent in the company 's balance sheet . for fiscal 2020 , proceeds of available-for-sale investment securities sold amounted to approximately $ 8.9 million . there were gains of approximately $ 352,000 associated with these sales . for fiscal 2019 , proceeds of available-for-sale investment securities sold amounted to approximately $ 2.1 million . gross realized gains on investment securities sold amounted to approximately $ 28,000. the varying amount of sales from the available-for-sale portfolio over the past few years , reflect the significant volatility present in the market . given the historic low interest rates prevalent in the market , it is necessary for the company to protect itself from interest rate exposure . securities that once appeared to be sound long-term investments can , after changes in the market , become securities that the company wishes to sell to avoid losses and mismatches of interest-earning assets and interest-bearing liabilities at a later time . -39- the table below illustrates the maturity distribution and weighted average yield for investment securities at september 30 , 20 20 , based on a contractual maturity . one year

19 accent acquisition on june 1 , 2015 , we acquired 100 % of the membership interests of accent pursuant to a membership interest purchase agreement with mdc corporate ( us ) inc. and mdc acquisition inc. accent is a business process outsourcing company providing contact center services and customer engagement solutions with locations in the u.s. and jamaica . accent 's data-driven approach helps brands maximize their engagement with consumers and enables brands to influence behavior , all while generating a better return on investment across all customer touch points , including phone , online and social media channels . accent 's customer engagement agency model and platform complements our ideal dialogue practice , significantly enhancing our solution set and commitment to results-driven analytics and customer insights for our clients . accordingly , we paid a premium for accent , resulting in the recognition of goodwill . 20 results of operations — years ended december 31 , 2015 and 2014 the following table summarizes our revenues and gross profit for the periods indicated , by reporting segment : replace_table_token_5_th revenue revenue increased by $ 32.0 million , or 12.8 % , from $ 250.1 million in 2014 to $ 282.1 million in 2015. this includes accent revenue of $ 40.4 million . the domestic segment increase of $ 39.4 million was due to $ 34.3 million from the acquisition of accent and $ 42.3 million of new business and growth from existing clients , partially offset by $ 31.1 million of volume reductions , $ 5.0 million of lost programs , and $ 1.1 million due to site closures . offshore revenues declined by $ 12.9 million due to $ 16.1 million of volume reductions and $ 6.3 million of lost programs , partially offset by $ 9.5 million of growth from existing and new clients . the increase in the nearshore segment of $ 5.6 million was due to $ 6.3 million of growth from existing and new clients in our honduras facilities and $ 6.5 million of revenue from our jamaica facility , partially offset by $ 3.8 million of volume reductions and $ 3.4 million of lost revenue due to the closure of the costa rica site in 2014. cost of services and gross profit the gross profit as a percentage of revenue decrease of 3.6 % was primarily due to the dilutive effects of both the accent acquisition and new capacity added in late 2014 , coupled with lower than expected call volumes . domestic gross profit as a percentage of revenue decreased to 6.8 % in 2015 from 9.9 % in 2014 primarily due to the dilutive effects of the accent acquisition and the aforementioned lower call volumes . the offshore decline of 8.5 % was primarily due to under-utilized capacity added during late 2014 as well as a decrease in call volumes . nearshore gross profit increased by $ 3.7 million , or 8.4 % as a percentage of revenue , due to the closure of costa rica , continuing increased capacity utilization in honduras and the benefit of our new jamaica facility . selling , general and administrative expenses selling , general and administrative expenses remained comparable at 12.2 % and 12.6 % for the years ended december 31 , 2015 and 2014 , respectively . 21 impairment losses and restructuring charges , net during 2015 , we recognized $ 0.3 million in impairment losses in our nearshore segment associated with certain assets after an impairment analysis indicated estimated future cash flows were insufficient to support the carrying values . no impairment losses were incurred during 2014. restructuring charges totaled $ 3.6 million for the year ended december 31 , 2015 , which primarily consisted of the following : $ 1.7 million in the domestic segment primarily due to the acquisition of accent and closure of three sites ; $ 0.4 million in the offshore and nearshore segments related to various corporate cost cutting measures ; and $ 1.5 million related to the it transformation project which concluded in third quarter 2015. interest and other income ( expense ) , net interest and other income ( expense ) , net for 2015 was $ 1.1 million of expense , which consists primarily of $ 1.6 million of interest expense on our revolving line of credit and other debt , partially offset by $ 0.5 million gain on sale of assets . income tax expense income tax expense for 2015 was $ 0.5 million , compared to $ 0.5 million in 2014 . similar to 2014 , the 2015 income tax expense is primarily related to the income tax provision for canadian operations . our u.s. operations have a valuation allowance recorded on u.s. deferred tax assets and we have tax holidays in costa rica , honduras , and jamaica , and for certain facilities in the philippines . net loss as a result of the factors described above , net loss was $ 15.6 million for the year ended december 31 , 2015 , compared to $ 5.5 million for the year ended december 31 , 2014 . 22 results of operations — years ended december 31 , 2014 and 2013 replace_table_token_6_th revenue revenue increased by $ 18.8 million , or 8.1 % , to $ 250.1 million in 2014 from $ 231.3 million in 2013. the domestic segment increase of $ 9.6 million was due to $ 20.6 million of new business and growth from existing programs , partially offset by $ 7.3 million of volume reductions , $ 1.9 million of pricing reductions , and $ 1.8 million of site closures . offshore revenues grew $ 4.7 million due to $ 14.0 million of growth from existing and new clients , partially offset by $ 1.6 million of lost revenues and $ 7.7 million of volume reductions . story_separator_special_tag these unobservable inputs reflect our own estimates of assumptions that market participants would use in pricing the asset or liability . when determining the fair value measurements for assets and liabilities required or permitted to be recorded at and or marked to fair value , we consider the principal or most advantageous market in which it would transact and consider assumptions that market participants would use when pricing the asset or liability . when possible , we look to active and observable markets to price identical assets or liabilities . when identical assets and liabilities are not traded in active markets , we look to market observable data for similar assets and liabilities . nevertheless , if certain assets and liabilities are not actively traded in observable markets , we must use alternative valuation techniques to derive a fair value measurement . for more information , refer to note 8 , “ fair value measurements , ” to our consolidated financial statements , included in item 8 , “ financial statements and supplementary financial data . ” 28 impairment of long-lived assets we periodically , on at least an annual basis , evaluate potential impairments of our long-lived assets . in our annual evaluation or when we determine that the carrying value of a long-lived asset may not be recoverable based upon the existence of one or more indicators of impairment , we evaluate the projected undiscounted cash flows related to the assets . if these cash flows are less than the carrying values of the assets , we measure the impairment based on the excess of the carrying value of the long-lived asset over its fair value . where appropriate we use a probability-weighted approach to determine our future cash flows , based upon our estimate of the likelihood of certain scenarios , primarily whether we expect to sell new business within a current location . these estimates are consistent with our internal projections , external communications and public disclosures . our projections contain assumptions pertaining to anticipated levels of utilization and revenue that may or may not be under contract but are based on our experience and or projections received from our customers . if our estimate of the probability of different scenarios changed by 10 % , the impact to our financial statements would not be material . for more information , refer to note 4 , “ impairment losses and restructuring charges , ” to our consolidated financial statements , included in item 8 , “ financial statements and supplementary financial data . ” impairment of goodwill and intangible assets we evaluate goodwill for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of goodwill may not be recoverable . goodwill is evaluated for impairment by first performing a qualitative assessment to determine whether a quantitative goodwill test is necessary . if it is determined , based on qualitative factors , the fair value of the reporting unit is `` more likely than not `` less than the carrying amount or if significant changes related to the reporting unit have occurred that could materially impact fair value , a quantitative goodwill impairment test would be required . we can elect to forgo the qualitative assessment and perform the quantitative test . the quantitative goodwill impairment test is performed using a two-step process . the first step is to identify if a potential impairment exists by comparing the fair value of a reporting unit with its carrying amount , including goodwill . if the carrying amount of a reporting unit exceeds its fair value , the second step is performed to determine if goodwill is impaired and to measure the amount of impairment loss to recognize , if any . the second step compares the implied fair value of goodwill with the carrying amount of goodwill . if the carrying amount of goodwill exceeds the implied fair value , an impairment loss is recognized in an amount equal to that excess . for intangible assets , a qualitative assessment can also be performed to determine whether the existence of events and circumstances indicates it is more likely than not an intangible asset is impaired . similar to goodwill , we can also elect to forgo the qualitative test for indefinite life intangible assets and perform the quantitative test . upon performing the quantitative test , if the carrying value of the intangible asset exceeds its fair value , an impairment loss is recognized in an amount equal to that excess . we estimate the fair value of our reporting units using a discounted cash flow analysis , which uses significant unobservable inputs , or level 3 inputs , as defined by the fair value hierarchy . a discounted cash flow analysis requires us to make various judgmental assumptions about revenue , gross profit , growth rates and discount rates . while we believe we have made reasonable estimates and assumptions to calculate the fair value of the reporting units and intangible assets , it is possible a material change could occur . if our actual results are not consistent with our estimates and assumptions used to calculate fair value , we may be required to perform the second step , which could result in material impairments of our goodwill . during 2015 , all of our material reporting units that underwent a quantitative test passed the first step of the goodwill impairment analysis and therefore , the second step was not necessary . our 2015 intangible asset impairment analysis did not result in an impairment charge . for more information , refer to note 3 , “ goodwill and intangible assets , ” to our consolidated financial statements , included in item 8 , “ financial statements and supplementary financial data . ” 29 restructuring charges on an ongoing basis , management assesses the profitability and utilization of our facilities and in some cases management has chosen to close facilities

debt instruments and related covenants on april 29 , 2015 , we entered into a secured revolving credit facility ( `` credit agreement '' ) with bmo harris bank n.a . ( `` lender '' ) and terminated our $ 20.0 million secured revolving credit facility with wells fargo bank . all amounts owed under the wells fargo bank credit facility were repaid with borrowings under the credit agreement in the amount of approximately $ 9.3 million , which included an early termination fee in the amount of $ 0.1 million . the credit agreement is effective through april 2020 and the amount we may borrow under the agreement is the lesser of the borrowing base calculation and $ 50.0 million , and so long as no default has occurred and with the lender 's consent , we may increase the maximum availability to $ 70.0 million in $ 5.0 million increments . we may request letters of credit under the credit agreement in an aggregate amount equal to the lesser of the borrowing base calculation ( minus outstanding advances ) and $ 5.0 million . the borrowing base is generally defined as 85 % of our eligible accounts receivable less certain reserves as defined in the credit agreement . after consideration of outstanding borrowings of $ 32.2 million , our remaining borrowing capacity was $ 12.8 million as of december 31 , 2015. initially , borrowings under the credit agreement bore interest at one , two , three or six-month libor , as selected by us , plus 1.75 % to 2.50 % , depending on current availability under the credit agreement and until january 1 , 2016 , the interest rate was the selected libor plus 1.75 % .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 instruments and related covenants on april 29 , 2015 , we entered into a secured revolving credit facility ( `` credit agreement '' ) with bmo harris bank n.a . ( `` lender '' ) and terminated our $ 20.0 million secured revolving credit facility with wells fargo bank . all amounts owed under the wells fargo bank credit facility were repaid with borrowings under the credit agreement in the amount of approximately $ 9.3 million , which included an early termination fee in the amount of $ 0.1 million . the credit agreement is effective through april 2020 and the amount we may borrow under the agreement is the lesser of the borrowing base calculation and $ 50.0 million , and so long as no default has occurred and with the lender 's consent , we may increase the maximum availability to $ 70.0 million in $ 5.0 million increments . we may request letters of credit under the credit agreement in an aggregate amount equal to the lesser of the borrowing base calculation ( minus outstanding advances ) and $ 5.0 million . the borrowing base is generally defined as 85 % of our eligible accounts receivable less certain reserves as defined in the credit agreement . after consideration of outstanding borrowings of $ 32.2 million , our remaining borrowing capacity was $ 12.8 million as of december 31 , 2015. initially , borrowings under the credit agreement bore interest at one , two , three or six-month libor , as selected by us , plus 1.75 % to 2.50 % , depending on current availability under the credit agreement and until january 1 , 2016 , the interest rate was the selected libor plus 1.75 % . ``` Suspicious Activity Report : 19 accent acquisition on june 1 , 2015 , we acquired 100 % of the membership interests of accent pursuant to a membership interest purchase agreement with mdc corporate ( us ) inc. and mdc acquisition inc. accent is a business process outsourcing company providing contact center services and customer engagement solutions with locations in the u.s. and jamaica . accent 's data-driven approach helps brands maximize their engagement with consumers and enables brands to influence behavior , all while generating a better return on investment across all customer touch points , including phone , online and social media channels . accent 's customer engagement agency model and platform complements our ideal dialogue practice , significantly enhancing our solution set and commitment to results-driven analytics and customer insights for our clients . accordingly , we paid a premium for accent , resulting in the recognition of goodwill . 20 results of operations — years ended december 31 , 2015 and 2014 the following table summarizes our revenues and gross profit for the periods indicated , by reporting segment : replace_table_token_5_th revenue revenue increased by $ 32.0 million , or 12.8 % , from $ 250.1 million in 2014 to $ 282.1 million in 2015. this includes accent revenue of $ 40.4 million . the domestic segment increase of $ 39.4 million was due to $ 34.3 million from the acquisition of accent and $ 42.3 million of new business and growth from existing clients , partially offset by $ 31.1 million of volume reductions , $ 5.0 million of lost programs , and $ 1.1 million due to site closures . offshore revenues declined by $ 12.9 million due to $ 16.1 million of volume reductions and $ 6.3 million of lost programs , partially offset by $ 9.5 million of growth from existing and new clients . the increase in the nearshore segment of $ 5.6 million was due to $ 6.3 million of growth from existing and new clients in our honduras facilities and $ 6.5 million of revenue from our jamaica facility , partially offset by $ 3.8 million of volume reductions and $ 3.4 million of lost revenue due to the closure of the costa rica site in 2014. cost of services and gross profit the gross profit as a percentage of revenue decrease of 3.6 % was primarily due to the dilutive effects of both the accent acquisition and new capacity added in late 2014 , coupled with lower than expected call volumes . domestic gross profit as a percentage of revenue decreased to 6.8 % in 2015 from 9.9 % in 2014 primarily due to the dilutive effects of the accent acquisition and the aforementioned lower call volumes . the offshore decline of 8.5 % was primarily due to under-utilized capacity added during late 2014 as well as a decrease in call volumes . nearshore gross profit increased by $ 3.7 million , or 8.4 % as a percentage of revenue , due to the closure of costa rica , continuing increased capacity utilization in honduras and the benefit of our new jamaica facility . selling , general and administrative expenses selling , general and administrative expenses remained comparable at 12.2 % and 12.6 % for the years ended december 31 , 2015 and 2014 , respectively . 21 impairment losses and restructuring charges , net during 2015 , we recognized $ 0.3 million in impairment losses in our nearshore segment associated with certain assets after an impairment analysis indicated estimated future cash flows were insufficient to support the carrying values . no impairment losses were incurred during 2014. restructuring charges totaled $ 3.6 million for the year ended december 31 , 2015 , which primarily consisted of the following : $ 1.7 million in the domestic segment primarily due to the acquisition of accent and closure of three sites ; $ 0.4 million in the offshore and nearshore segments related to various corporate cost cutting measures ; and $ 1.5 million related to the it transformation project which concluded in third quarter 2015. interest and other income ( expense ) , net interest and other income ( expense ) , net for 2015 was $ 1.1 million of expense , which consists primarily of $ 1.6 million of interest expense on our revolving line of credit and other debt , partially offset by $ 0.5 million gain on sale of assets . income tax expense income tax expense for 2015 was $ 0.5 million , compared to $ 0.5 million in 2014 . similar to 2014 , the 2015 income tax expense is primarily related to the income tax provision for canadian operations . our u.s. operations have a valuation allowance recorded on u.s. deferred tax assets and we have tax holidays in costa rica , honduras , and jamaica , and for certain facilities in the philippines . net loss as a result of the factors described above , net loss was $ 15.6 million for the year ended december 31 , 2015 , compared to $ 5.5 million for the year ended december 31 , 2014 . 22 results of operations — years ended december 31 , 2014 and 2013 replace_table_token_6_th revenue revenue increased by $ 18.8 million , or 8.1 % , to $ 250.1 million in 2014 from $ 231.3 million in 2013. the domestic segment increase of $ 9.6 million was due to $ 20.6 million of new business and growth from existing programs , partially offset by $ 7.3 million of volume reductions , $ 1.9 million of pricing reductions , and $ 1.8 million of site closures . offshore revenues grew $ 4.7 million due to $ 14.0 million of growth from existing and new clients , partially offset by $ 1.6 million of lost revenues and $ 7.7 million of volume reductions . story_separator_special_tag these unobservable inputs reflect our own estimates of assumptions that market participants would use in pricing the asset or liability . when determining the fair value measurements for assets and liabilities required or permitted to be recorded at and or marked to fair value , we consider the principal or most advantageous market in which it would transact and consider assumptions that market participants would use when pricing the asset or liability . when possible , we look to active and observable markets to price identical assets or liabilities . when identical assets and liabilities are not traded in active markets , we look to market observable data for similar assets and liabilities . nevertheless , if certain assets and liabilities are not actively traded in observable markets , we must use alternative valuation techniques to derive a fair value measurement . for more information , refer to note 8 , “ fair value measurements , ” to our consolidated financial statements , included in item 8 , “ financial statements and supplementary financial data . ” 28 impairment of long-lived assets we periodically , on at least an annual basis , evaluate potential impairments of our long-lived assets . in our annual evaluation or when we determine that the carrying value of a long-lived asset may not be recoverable based upon the existence of one or more indicators of impairment , we evaluate the projected undiscounted cash flows related to the assets . if these cash flows are less than the carrying values of the assets , we measure the impairment based on the excess of the carrying value of the long-lived asset over its fair value . where appropriate we use a probability-weighted approach to determine our future cash flows , based upon our estimate of the likelihood of certain scenarios , primarily whether we expect to sell new business within a current location . these estimates are consistent with our internal projections , external communications and public disclosures . our projections contain assumptions pertaining to anticipated levels of utilization and revenue that may or may not be under contract but are based on our experience and or projections received from our customers . if our estimate of the probability of different scenarios changed by 10 % , the impact to our financial statements would not be material . for more information , refer to note 4 , “ impairment losses and restructuring charges , ” to our consolidated financial statements , included in item 8 , “ financial statements and supplementary financial data . ” impairment of goodwill and intangible assets we evaluate goodwill for impairment at least annually or whenever events or changes in circumstances indicate that the carrying amount of goodwill may not be recoverable . goodwill is evaluated for impairment by first performing a qualitative assessment to determine whether a quantitative goodwill test is necessary . if it is determined , based on qualitative factors , the fair value of the reporting unit is `` more likely than not `` less than the carrying amount or if significant changes related to the reporting unit have occurred that could materially impact fair value , a quantitative goodwill impairment test would be required . we can elect to forgo the qualitative assessment and perform the quantitative test . the quantitative goodwill impairment test is performed using a two-step process . the first step is to identify if a potential impairment exists by comparing the fair value of a reporting unit with its carrying amount , including goodwill . if the carrying amount of a reporting unit exceeds its fair value , the second step is performed to determine if goodwill is impaired and to measure the amount of impairment loss to recognize , if any . the second step compares the implied fair value of goodwill with the carrying amount of goodwill . if the carrying amount of goodwill exceeds the implied fair value , an impairment loss is recognized in an amount equal to that excess . for intangible assets , a qualitative assessment can also be performed to determine whether the existence of events and circumstances indicates it is more likely than not an intangible asset is impaired . similar to goodwill , we can also elect to forgo the qualitative test for indefinite life intangible assets and perform the quantitative test . upon performing the quantitative test , if the carrying value of the intangible asset exceeds its fair value , an impairment loss is recognized in an amount equal to that excess . we estimate the fair value of our reporting units using a discounted cash flow analysis , which uses significant unobservable inputs , or level 3 inputs , as defined by the fair value hierarchy . a discounted cash flow analysis requires us to make various judgmental assumptions about revenue , gross profit , growth rates and discount rates . while we believe we have made reasonable estimates and assumptions to calculate the fair value of the reporting units and intangible assets , it is possible a material change could occur . if our actual results are not consistent with our estimates and assumptions used to calculate fair value , we may be required to perform the second step , which could result in material impairments of our goodwill . during 2015 , all of our material reporting units that underwent a quantitative test passed the first step of the goodwill impairment analysis and therefore , the second step was not necessary . our 2015 intangible asset impairment analysis did not result in an impairment charge . for more information , refer to note 3 , “ goodwill and intangible assets , ” to our consolidated financial statements , included in item 8 , “ financial statements and supplementary financial data . ” 29 restructuring charges on an ongoing basis , management assesses the profitability and utilization of our facilities and in some cases management has chosen to close facilities

we continued our balanced long-term focus on enhancing shareowner value without sacrificing growth investment , including maintaining r & d spending at 5 % of sales , new product introductions aligned with global macroeconomic trends in energy , safety , security , productivity and global urbanization , over $ 300 million of new repositioning investments to improve our operations and increased investment in high growth regions . we also continued to enhance our software capabilities through the creation of a software center in the united states to staff more than 730 full-time product software engineers , who are in addition to the more than 11,000 software engineers already part of honeywell . 16 in 2016 we deployed capital of over $ 7.5 billion , including the following : · mergers and acquisitions— we deployed over $ 2.5 billion during 2016 , acquiring businesses that will be integrated into each of our four operating segments . these acquisitions all share a software and technology focus and increase our existing deep alignment with enduring macro trends such as energy efficiency , clean energy generation , safety , security , productivity and global urbanization . · dividend —after a 15 % dividend rate increase in 2015 , we increased our annual dividend rate by 12 % in 2016 , as we seek to continue to grow the dividend faster than earnings , marking the 12 th dividend increase in the past 11 years . · share repurchases —we continue to opportunistically repurchase our shares with the goal of generally keeping share count flat and seeking to offset the dilutive impact of employee stock based compensation and savings plans . in 2016 , we repurchased 19.3 million shares for $ 2.1 billion . · capital investment in facilities —we invested over $ 1 billion in capital expenditures focused on high return investments such as the expansion of facilities to manufacture our solstice® low global-warming potential refrigerant products and building new production facilities to make uop catalyst and absorbent products . honeywell also completed refinancing of long-term debt through the issuance of 4,000 million senior notes in february and an additional $ 4,500 million senior notes in october . the proceeds from the offerings of senior notes were used to repurchase $ 2,200 million of senior notes outstanding , as well as repay outstanding commercial paper . we expect these refinancing activities will reduce our ongoing annual interest expense . consolidated results of operations net sales replace_table_token_4_th the change in net sales is attributable to the following : replace_table_token_5_th a discussion of net sales by segment can be found in the review of business segments section of this md & a . the foreign currency translation impact in 2016 compared with 2015 is principally driven by the weakening of the british pound , chinese renminbi and canadian dollar , partially offset by the strengthening of the japanese yen against the u.s. dollar . the foreign currency translation impact in 2015 compared with 2014 is principally driven by the weakening of the euro and canadian dollar against the u.s. dollar . 17 cost of products and services sold replace_table_token_6_th cost of products and services sold increased in 2016 compared with 2015 principally due to increased direct material costs of approximately $ 380 million ( driven primarily by acquisitions , net of divestitures , partially offset by the favorable impact of productivity , net of inflation , and foreign currency translation ) , higher depreciation and amortization attributable to acquisitions of approximately $ 135 million and increased pension mark-to-market expense allocated to cost of products and services sold of $ 70 million , partially offset by higher pension and other postretirement benefits income allocated to cost of products and services sold of $ 200 million . gross margin percentage increased in 2016 compared with 2015 principally due to higher gross margin in performance materials and technologies ( approximately 0.6 percentage point impact ) and higher pension and other postretirement benefits income allocated to cost of products and services sold ( approximately 0.5 percentage point impact ) , partially offset by lower gross margin in aerospace , home and building solutions and safety and productivity solutions ( approximately 0.7 percentage point impact collectively ) and increased pension mark-to-market expense allocated to cost of products and services sold ( approximately 0.2 percentage point impact ) . cost of products and services sold decreased in 2015 compared with 2014 principally due to a decrease in direct and indirect material costs of approximately $ 1,460 million ( driven primarily by the favorable impact of foreign currency translation , productivity , lower raw materials pass-through pricing and the absence of the friction materials business , partially offset by higher sales volume ) , a decrease in labor costs of approximately $ 450 million and higher pension income allocated to cost of products and services sold of approximately $ 230 million . gross margin percentage increased in 2015 compared with 2014 principally due to higher gross margin in all of our business segments ( approximately 2.0 percentage point impact collectively ) and increased pension income allocated to cost of products and services sold ( approximately 0.5 percentage point impact ) . selling , general and administrative expenses replace_table_token_7_th selling , general and administrative expenses ( sg & a ) increased in 2016 compared with 2015 primarily due to increased labor costs ( driven primarily by acquisitions , net of divestitures , investment for growth and merit increases ) , increased pension mark-to-market expense allocated to sg & a and higher repositioning charges , partially offset by the favorable impact from foreign currency translation and increased pension income allocated to sg & a . story_separator_special_tag story_separator_special_tag justify ; text-indent : 36pt `` > we also have a current shelf registration statement filed with the securities and exchange commission under which we may issue additional debt securities , common stock and preferred stock that may be offered in one or more offerings on terms to be determined at the time of the offering . net proceeds of any offering would be used for general corporate purposes , including repayment of existing indebtedness , share repurchases , capital expenditures and acquisitions . see note 2 acquisitions and divestitures and note 12 long-term debt and credit agreements of notes to financial statements for additional discussion of items impacting our liquidity . in 2016 , the company repurchased $ 2,079 million of outstanding shares to offset the dilutive impact of employee stock based compensation plans , including option exercises , restricted unit vesting and matching contributions under our savings plans . in april 2016 , the board of directors authorized the repurchase of up to a total of $ 5 billion of honeywell common stock , of which $ 4.1 billion remained available as of december 31 , 2016 for additional share repurchases . honeywell presently expects to repurchase outstanding shares from time to time to generally offset the dilutive impact of employee stock based compensation plans , including option exercises , restricted unit vesting and matching contributions under our savings plans . in addition to our normal operating cash requirements , our principal future cash requirements will be to fund capital expenditures , dividends , strategic acquisitions , share repurchases , employee benefit obligations , environmental remediation costs , asbestos claims , severance and exit costs related to repositioning actions and debt repayments . specifically , we expect our primary cash requirements in 2017 to be as follows : § capital expenditures—we expect to spend approximately $ 1.1 billion for capital expenditures in 2017 primarily for growth , production and capacity expansion , cost reduction , maintenance , and replacement . § share repurchases— under the company 's share repurchase program , $ 4.1 billion is available as of december 31 , 2016 for additional share repurchases . honeywell presently expects to repurchase outstanding shares from time to time to generally offset the dilutive impact of employee stock-based compensation plans , including option exercises , restricted unit vesting and matching contributions under our savings plans . the amount and timing of future repurchases may vary depending on market conditions and our level of operating , financing and other investing activities . § dividends—we increased our quarterly dividend rate by 12 % to $ .6650 per share of common stock effective with the fourth quarter 2016 dividend . the company intends to continue to pay quarterly dividends in 2017 . § asbestos claims—we expect our cash spending for asbestos claims and our cash receipts for related insurance recoveries to be approximately $ 546 million and $ 23 million in 2017 . § pension contributions—in 2017 , we are not required to make contributions to our u.s. pension plans . we plan to make contributions of cash and or marketable securities of approximately $ 130 million ( $ 89 million of marketable securities were contributed in january 2017 ) to our non-u.s. plans to 27 satisfy regulatory funding standards . the timing and amount of contributions to both our u.s. and non-u.s. plans may be impacted by a number of factors , including the funded status of the plans . § repositioning actions—we expect that cash spending for severance and other exit costs necessary to execute repositioning actions will approximate $ 225 million in 2017 . § environmental remediation costs—we expect to spend approximately $ 250 million in 2017 for remedial response and voluntary clean-up costs . we continuously assess the relative strength of each business in our portfolio as to strategic fit , market position , profit and cash flow contribution in order to upgrade our combined portfolio and identify business units that will most benefit from increased investment . we identify acquisition candidates that will further our strategic plan and strengthen our existing core businesses . we also identify businesses that do not fit into our long-term strategic plan based on their market position , relative profitability or growth potential . these businesses are considered for potential divestiture , restructuring or other repositioning actions subject to regulatory constraints . in 2016 and 2015 , we realized $ 565 million and $ 1 million in cash proceeds from sales and a spin-off of non-strategic businesses . based on past performance and current expectations , we believe that our operating cash flows will be sufficient to meet our future operating cash needs . our available cash , committed credit lines and access to the public debt and equity markets , provide additional sources of short-term and long-term liquidity to fund current operations , debt maturities , and future investment opportunities . contractual obligations and probable liability payments following is a summary of our significant contractual obligations and probable liability payments at december 31 , 2016 : replace_table_token_20_th ( 1 ) assumes all long-term debt is outstanding until scheduled maturity . ( 2 ) purchase obligations are entered into with various vendors in the normal course of business and are consistent with our expected requirements . ( 3 ) the payment amounts in the table only reflect the environmental liabilities which are probable and reasonably estimable as of december 31 , 2016 . ( 4 ) these amounts are estimates of asbestos related cash payments for narco and bendix based on our asbestos related liabilities which are probable and reasonably estimable as of december 31 , 2016. see asbestos matters in note 19 commitments and contingencies of notes to financial statements for additional information . ( 5 ) these amounts represent our insurance recoveries that are deemed probable for asbestos related liabilities as of december 31 , 2016. see asbestos matters in note 19 commitments and contingencies of notes to financial

cash flow summary our cash flows from operating , investing and financing activities , as reflected in the consolidated statement of cash flows , are summarized as follows : 25 replace_table_token_19_th 2016 compared with 2015 cash provided by operating activities decreased by $ 21 million primarily due to a $ 958 million unfavorable impact from working capital , partially offset by ( i ) a $ 395 million improvement in customer advances and deferred income , ( ii ) a $ 171 million increase in net income before the non-cash pension mark-to-market adjustment , ( iii ) the absence of $ 151 million in oem incentive payments and ( iv ) lower cash tax payments of $ 50 million . cash used for investing activities decreased by $ 3,172 million primarily due to ( i ) a decrease in cash paid for acquisitions of $ 2,655 million , most significantly elster in 2015 , ( ii ) an increase in proceeds from the sales of businesses of $ 295 million ( most significantly honeywell technology solutions inc. ) and ( iii ) a $ 384 million favorable change in settlements of foreign currency exchange contracts used as economic hedges on certain non-functional currency denominated monetary assets and liabilities . the decreases were partially offset by a net $ 146 million increase in investments , primarily short-term marketable securities . cash provided by financing activities increased by $ 309 million primarily due to an increase in the net proceeds from debt issuances of $ 497 million , partially offset by an increase in cash dividends paid of $ 189 million including amounts paid to the former uop russell llc noncontrolling shareholder .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```cash flow summary our cash flows from operating , investing and financing activities , as reflected in the consolidated statement of cash flows , are summarized as follows : 25 replace_table_token_19_th 2016 compared with 2015 cash provided by operating activities decreased by $ 21 million primarily due to a $ 958 million unfavorable impact from working capital , partially offset by ( i ) a $ 395 million improvement in customer advances and deferred income , ( ii ) a $ 171 million increase in net income before the non-cash pension mark-to-market adjustment , ( iii ) the absence of $ 151 million in oem incentive payments and ( iv ) lower cash tax payments of $ 50 million . cash used for investing activities decreased by $ 3,172 million primarily due to ( i ) a decrease in cash paid for acquisitions of $ 2,655 million , most significantly elster in 2015 , ( ii ) an increase in proceeds from the sales of businesses of $ 295 million ( most significantly honeywell technology solutions inc. ) and ( iii ) a $ 384 million favorable change in settlements of foreign currency exchange contracts used as economic hedges on certain non-functional currency denominated monetary assets and liabilities . the decreases were partially offset by a net $ 146 million increase in investments , primarily short-term marketable securities . cash provided by financing activities increased by $ 309 million primarily due to an increase in the net proceeds from debt issuances of $ 497 million , partially offset by an increase in cash dividends paid of $ 189 million including amounts paid to the former uop russell llc noncontrolling shareholder . ``` Suspicious Activity Report : we continued our balanced long-term focus on enhancing shareowner value without sacrificing growth investment , including maintaining r & d spending at 5 % of sales , new product introductions aligned with global macroeconomic trends in energy , safety , security , productivity and global urbanization , over $ 300 million of new repositioning investments to improve our operations and increased investment in high growth regions . we also continued to enhance our software capabilities through the creation of a software center in the united states to staff more than 730 full-time product software engineers , who are in addition to the more than 11,000 software engineers already part of honeywell . 16 in 2016 we deployed capital of over $ 7.5 billion , including the following : · mergers and acquisitions— we deployed over $ 2.5 billion during 2016 , acquiring businesses that will be integrated into each of our four operating segments . these acquisitions all share a software and technology focus and increase our existing deep alignment with enduring macro trends such as energy efficiency , clean energy generation , safety , security , productivity and global urbanization . · dividend —after a 15 % dividend rate increase in 2015 , we increased our annual dividend rate by 12 % in 2016 , as we seek to continue to grow the dividend faster than earnings , marking the 12 th dividend increase in the past 11 years . · share repurchases —we continue to opportunistically repurchase our shares with the goal of generally keeping share count flat and seeking to offset the dilutive impact of employee stock based compensation and savings plans . in 2016 , we repurchased 19.3 million shares for $ 2.1 billion . · capital investment in facilities —we invested over $ 1 billion in capital expenditures focused on high return investments such as the expansion of facilities to manufacture our solstice® low global-warming potential refrigerant products and building new production facilities to make uop catalyst and absorbent products . honeywell also completed refinancing of long-term debt through the issuance of 4,000 million senior notes in february and an additional $ 4,500 million senior notes in october . the proceeds from the offerings of senior notes were used to repurchase $ 2,200 million of senior notes outstanding , as well as repay outstanding commercial paper . we expect these refinancing activities will reduce our ongoing annual interest expense . consolidated results of operations net sales replace_table_token_4_th the change in net sales is attributable to the following : replace_table_token_5_th a discussion of net sales by segment can be found in the review of business segments section of this md & a . the foreign currency translation impact in 2016 compared with 2015 is principally driven by the weakening of the british pound , chinese renminbi and canadian dollar , partially offset by the strengthening of the japanese yen against the u.s. dollar . the foreign currency translation impact in 2015 compared with 2014 is principally driven by the weakening of the euro and canadian dollar against the u.s. dollar . 17 cost of products and services sold replace_table_token_6_th cost of products and services sold increased in 2016 compared with 2015 principally due to increased direct material costs of approximately $ 380 million ( driven primarily by acquisitions , net of divestitures , partially offset by the favorable impact of productivity , net of inflation , and foreign currency translation ) , higher depreciation and amortization attributable to acquisitions of approximately $ 135 million and increased pension mark-to-market expense allocated to cost of products and services sold of $ 70 million , partially offset by higher pension and other postretirement benefits income allocated to cost of products and services sold of $ 200 million . gross margin percentage increased in 2016 compared with 2015 principally due to higher gross margin in performance materials and technologies ( approximately 0.6 percentage point impact ) and higher pension and other postretirement benefits income allocated to cost of products and services sold ( approximately 0.5 percentage point impact ) , partially offset by lower gross margin in aerospace , home and building solutions and safety and productivity solutions ( approximately 0.7 percentage point impact collectively ) and increased pension mark-to-market expense allocated to cost of products and services sold ( approximately 0.2 percentage point impact ) . cost of products and services sold decreased in 2015 compared with 2014 principally due to a decrease in direct and indirect material costs of approximately $ 1,460 million ( driven primarily by the favorable impact of foreign currency translation , productivity , lower raw materials pass-through pricing and the absence of the friction materials business , partially offset by higher sales volume ) , a decrease in labor costs of approximately $ 450 million and higher pension income allocated to cost of products and services sold of approximately $ 230 million . gross margin percentage increased in 2015 compared with 2014 principally due to higher gross margin in all of our business segments ( approximately 2.0 percentage point impact collectively ) and increased pension income allocated to cost of products and services sold ( approximately 0.5 percentage point impact ) . selling , general and administrative expenses replace_table_token_7_th selling , general and administrative expenses ( sg & a ) increased in 2016 compared with 2015 primarily due to increased labor costs ( driven primarily by acquisitions , net of divestitures , investment for growth and merit increases ) , increased pension mark-to-market expense allocated to sg & a and higher repositioning charges , partially offset by the favorable impact from foreign currency translation and increased pension income allocated to sg & a . story_separator_special_tag story_separator_special_tag justify ; text-indent : 36pt `` > we also have a current shelf registration statement filed with the securities and exchange commission under which we may issue additional debt securities , common stock and preferred stock that may be offered in one or more offerings on terms to be determined at the time of the offering . net proceeds of any offering would be used for general corporate purposes , including repayment of existing indebtedness , share repurchases , capital expenditures and acquisitions . see note 2 acquisitions and divestitures and note 12 long-term debt and credit agreements of notes to financial statements for additional discussion of items impacting our liquidity . in 2016 , the company repurchased $ 2,079 million of outstanding shares to offset the dilutive impact of employee stock based compensation plans , including option exercises , restricted unit vesting and matching contributions under our savings plans . in april 2016 , the board of directors authorized the repurchase of up to a total of $ 5 billion of honeywell common stock , of which $ 4.1 billion remained available as of december 31 , 2016 for additional share repurchases . honeywell presently expects to repurchase outstanding shares from time to time to generally offset the dilutive impact of employee stock based compensation plans , including option exercises , restricted unit vesting and matching contributions under our savings plans . in addition to our normal operating cash requirements , our principal future cash requirements will be to fund capital expenditures , dividends , strategic acquisitions , share repurchases , employee benefit obligations , environmental remediation costs , asbestos claims , severance and exit costs related to repositioning actions and debt repayments . specifically , we expect our primary cash requirements in 2017 to be as follows : § capital expenditures—we expect to spend approximately $ 1.1 billion for capital expenditures in 2017 primarily for growth , production and capacity expansion , cost reduction , maintenance , and replacement . § share repurchases— under the company 's share repurchase program , $ 4.1 billion is available as of december 31 , 2016 for additional share repurchases . honeywell presently expects to repurchase outstanding shares from time to time to generally offset the dilutive impact of employee stock-based compensation plans , including option exercises , restricted unit vesting and matching contributions under our savings plans . the amount and timing of future repurchases may vary depending on market conditions and our level of operating , financing and other investing activities . § dividends—we increased our quarterly dividend rate by 12 % to $ .6650 per share of common stock effective with the fourth quarter 2016 dividend . the company intends to continue to pay quarterly dividends in 2017 . § asbestos claims—we expect our cash spending for asbestos claims and our cash receipts for related insurance recoveries to be approximately $ 546 million and $ 23 million in 2017 . § pension contributions—in 2017 , we are not required to make contributions to our u.s. pension plans . we plan to make contributions of cash and or marketable securities of approximately $ 130 million ( $ 89 million of marketable securities were contributed in january 2017 ) to our non-u.s. plans to 27 satisfy regulatory funding standards . the timing and amount of contributions to both our u.s. and non-u.s. plans may be impacted by a number of factors , including the funded status of the plans . § repositioning actions—we expect that cash spending for severance and other exit costs necessary to execute repositioning actions will approximate $ 225 million in 2017 . § environmental remediation costs—we expect to spend approximately $ 250 million in 2017 for remedial response and voluntary clean-up costs . we continuously assess the relative strength of each business in our portfolio as to strategic fit , market position , profit and cash flow contribution in order to upgrade our combined portfolio and identify business units that will most benefit from increased investment . we identify acquisition candidates that will further our strategic plan and strengthen our existing core businesses . we also identify businesses that do not fit into our long-term strategic plan based on their market position , relative profitability or growth potential . these businesses are considered for potential divestiture , restructuring or other repositioning actions subject to regulatory constraints . in 2016 and 2015 , we realized $ 565 million and $ 1 million in cash proceeds from sales and a spin-off of non-strategic businesses . based on past performance and current expectations , we believe that our operating cash flows will be sufficient to meet our future operating cash needs . our available cash , committed credit lines and access to the public debt and equity markets , provide additional sources of short-term and long-term liquidity to fund current operations , debt maturities , and future investment opportunities . contractual obligations and probable liability payments following is a summary of our significant contractual obligations and probable liability payments at december 31 , 2016 : replace_table_token_20_th ( 1 ) assumes all long-term debt is outstanding until scheduled maturity . ( 2 ) purchase obligations are entered into with various vendors in the normal course of business and are consistent with our expected requirements . ( 3 ) the payment amounts in the table only reflect the environmental liabilities which are probable and reasonably estimable as of december 31 , 2016 . ( 4 ) these amounts are estimates of asbestos related cash payments for narco and bendix based on our asbestos related liabilities which are probable and reasonably estimable as of december 31 , 2016. see asbestos matters in note 19 commitments and contingencies of notes to financial statements for additional information . ( 5 ) these amounts represent our insurance recoveries that are deemed probable for asbestos related liabilities as of december 31 , 2016. see asbestos matters in note 19 commitments and contingencies of notes to financial

$ 28,743,592 total loans $ 32,385,464 $ 29,053,935 $ 25,526,215 $ 23,675,706 $ 21,775,899 available-for-sale investment securities $ 2,741,847 $ 3,016,752 $ 3,335,795 $ 3,773,226 $ 2,626,617 total deposits , excluding held-for-sale deposits $ 35,439,628 $ 31,615,063 $ 29,890,983 $ 27,475,981 $ 24,008,774 long-term debt $ 146,835 $ 171,577 $ 186,327 $ 206,084 $ 225,848 fhlb advances $ 326,172 $ 323,891 $ 321,643 $ 1,019,424 $ 317,241 stockholders ' equity $ 4,423,974 $ 3,841,951 $ 3,427,741 $ 3,122,950 $ 2,856,111 performance metrics : return on average assets 1.83 % 1.41 % 1.30 % 1.27 % 1.25 % return on average equity 17.04 % 13.71 % 13.06 % 12.74 % 12.72 % net interest margin 3.78 % 3.48 % 3.30 % 3.35 % 4.03 % efficiency ratio 44.73 % 45.84 % 50.64 % 47.68 % 51.77 % credit quality metrics : allowance for loan losses $ 311,322 $ 287,128 $ 260,520 $ 264,959 $ 261,679 allowance for loan losses to loans held-for-investment ( 3 ) 0.96 % 0.99 % 1.02 % 1.12 % 1.20 % non-pci nonperforming assets to total assets ( 3 ) 0.23 % 0.31 % 0.37 % 0.40 % 0.46 % annual net charge-offs to average loans held-for-investment 0.13 % 0.08 % 0.15 % 0.01 % 0.18 % selected metrics : total average equity to total average assets 10.72 % 10.30 % 9.97 % 9.95 % 9.83 % common dividend payout ratio 17.90 % 23.14 % 27.01 % 30.21 % 30.07 % loan-to-deposit ratio 91.38 % 90.17 % 85.40 % 86.17 % 90.70 % capital ratios of ewbc ( 4 ) : total capital 13.7 % 12.9 % 12.4 % 12.2 % 12.6 % tier 1 capital 12.2 % 11.4 % 10.9 % 10.7 % 11.0 % cet1 capital 12.2 % 11.4 % 10.9 % 10.5 % n/a tier 1 leverage capital 9.9 % 9.2 % 8.7 % 8.5 % 8.4 % n/a — not applicable . ( 1 ) includes $ 31.5 million of pretax gain recognized from the sale of the dcb branches for 2018 . includes $ 71.7 million and $ 3.8 million of pretax gains recognized from the sales of a commercial property in california and ewis 's insurance brokerage business , respectively , for 2017 . includes changes in fdic indemnification asset and receivable/payable charges of $ 38.0 million and $ 201.4 million for 2015 and 2014 , respectively . the company terminated the united commercial bank and washington first international bank shared-loss agreements during 2015 . ( 2 ) includes an additional $ 41.7 million in income tax expense recognized during 2017 due to the enactment of the tax act . ( 3 ) total assets and loans held-for-investment include purchased credit-impaired ( “ pci ” ) loans of $ 308.0 million , $ 482.3 million , $ 642.4 million , $ 970.8 million and $ 1.32 billion as of december 31 , 2018 , 2017 , 2016 , 2015 and 2014 , respectively . ( 4 ) capital ratios are calculated under the basel iii capital rules which became effective on january 1 , 2015. prior to this date , the ratios were calculated under the basel i capital rules . the cet1 capital ratio was introduced under the basel iii capital rules . 31 2018 financial highlights we achieved strong earnings for the ninth consecutive year in 2018 . net income of $ 703.7 million in 2018 grew $ 198.1 million or 39 % from $ 505.6 million in 2017 . total revenue , or the sum of net interest income before provision for credit losses and noninterest income , of $ 1.60 billion grew 11 % year-over-year , primarily driven by an expanding net interest margin and robust loan growth . full year 2018 net interest margin of 3.78 % expanded 30 basis points year-over-year , from 3.48 % in 2017. revenue growth outpaced expense increases in 2018 , improving our operating efficiency . finally , net income growth in 2018 also benefited from a reduction in income tax expense related to the tax act . we earned a return on average assets ( “ roa ” ) of 1.83 % and a return on average equity ( “ roe ” ) of 17.04 % in 2018. on november 11 , 2017 , the bank entered into a purchase and assumption agreement to sell all of its eight dcb branches located in the high desert area of southern california to flagstar bank , a wholly-owned subsidiary of flagstar bancorp , inc. the sale of the bank 's dcb branches was completed on march 17 , 2018. the assets and liability of the dcb branches that were sold in this transaction included primarily $ 613.7 million of deposits , $ 59.1 million of loans , $ 9.0 million of cash and cash equivalents and $ 7.9 million of premises and equipment . the transaction resulted in a net cash payment of $ 499.9 million by the bank to flagstar bank . after transaction costs , the sale resulted in a pre-tax gain of $ 31.5 million , which was reported as net gain on sale of business as part of noninterest income on the consolidated statement of income . the 2018 eps impact from the sale of the dcb branches was $ 0.15 per share , net of tax . 32 noteworthy items about the company 's performance for 2018 included : earnings : full year 2018 net income of $ 703.7 million and diluted eps of $ 4.81 both increased 39 % , compared to full year 2017 net income of $ 505.6 million and diluted eps of $ 3.47 . strong returns on average assets and average equity during 2018 reflected our ability to expand profitability while growing the loan and deposit base . return on average assets increased 42 basis points to 1.83 % in 2018 , compared to 1.41 % in 2017 . story_separator_special_tag the changes in effective tax rates , as illustrated in the table above , were mainly due to the enactment of the tax act on december 22 , 2017. the tax act significantly changed u.s. corporate income tax laws by , among other things , reducing the u.s. federal corporate income tax rate from 35 % to 21 % effective january 1 , 2018 ; allowing the expensing of 100 % of the cost of acquired qualified property placed in service after september 27 , 2017 ; transitioning from a worldwide tax system to a territorial system ; imposing a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of december 31 , 2017 ; and eliminating the carrybacks of tax credits and net operating losses ( “ nols ” ) incurred after december 31 , 2017 . in addition , nols incurred after december 31 , 2017 can not offset more than 80 % of taxable income for any future year , but may be carried forward indefinitely . asc 740 , income taxes , requires companies to recognize the effect of the tax act in the period of enactment . hence , such effects were recognized in the company 's 2017 consolidated financial statements , even though the effective date of the law for most provisions is january 1 , 2018. the sec staff issued staff accounting bulletin no . 118 to address the application of u.s. gaap in situations where a registrant does not have the necessary information available , prepared , or analyzed ( including computations ) in reasonable detail to complete the accounting for certain income tax effects of the tax act . based on reasonable estimates , the company recorded $ 41.7 million of income tax expense in the fourth quarter of 2017 related to the impact of the tax act , the period in which the legislation was enacted . this amount was primarily related to the remeasurements of certain deferred tax assets and liabilities of $ 33.1 million , as well as the remeasurements of tax credits and other tax benefits related to qualified affordable housing partnerships of $ 7.9 million . as a result , the effective tax rate increased to 31.2 % during 2017 , compared to 24.6 % in 2016. during 2018 , management finalized its assessment of the initial impact of the tax act , which resulted in an increase in income tax expense by $ 985 thousand during the same period ensuing from the remeasurements of deferred tax assets and liabilities . as most of the income tax effects of the tax act were recorded during 2017 , coupled with the lower u.s. federal corporate income tax rate , the effective tax rate decreased to 14.0 % in 2018 , compared to 31.2 % in 2017 . the overall impact of the tax act was a one-time increase in income tax expense of $ 42.7 million . management regularly reviews the company 's tax positions and deferred tax balances . factors considered in this analysis include the company 's ability to generate future taxable income , implement tax-planning strategies ( as defined in asc 740 , income taxes ) and utilize taxable income from prior carryback years ( if such carryback is permitted under the applicable tax law ) , as well as future reversals of existing taxable temporary differences . the company accounts for income taxes using the asset and liability approach , the objective of which is to establish deferred tax assets and liabilities for the temporary differences between the financial reporting basis and the tax basis of the company 's assets and liabilities at enacted tax rates expected to be in effect when such amounts are realized and settled . net deferred tax assets increased $ 20.2 million or 21 % to $ 117.6 million as of december 31 , 2018 , compared to $ 97.4 million as of december 31 , 2017 , mainly attributable to an increase in tax credit carryforwards as a result of the lower income tax rate . for additional details on the components of net deferred tax assets , see note 13 — income taxes to the consolidated financial statements . a valuation allowance is established for deferred tax assets if , based on the weight of all positive evidence against all negative evidence , it is more likely than not that some portion or all of the deferred tax assets will not be realized . a valuation allowance is used , as needed , to reduce the deferred tax assets to the amount that is more likely than not to be realized . management has concluded that it is more likely than not that all of the benefits of the deferred tax assets will be realized , with the exception of the deferred tax assets related to nols in certain states . accordingly , a valuation allowance has been recorded for these amounts . the company believes that adequate provisions have been made for all income tax uncertainties consistent with asc 740 , income taxes as of december 31 , 2018. the company is also evaluating the possibility of recording an uncertain tax position liability in 2019 with regards to its investments in mobile solar generators sold and managed by dc solar . for further information , see item 7. md & a — other matters . operating segment results the company organizes its operations into three reportable operating segments : ( 1 ) consumer and business banking ( referred to as “ retail banking ” in the company 's prior quarterly form 10-q and annual form 10-k filings ) ; ( 2 ) commercial banking ; and ( 3 ) other . the consumer and business banking segment primarily provides financial products and services to consumer and commercial customers through the company 's domestic branch network . this segment offers consumer and commercial deposits , mortgage and home equity loans , and

cash dividend : we increased our quarterly common stock dividend by 15 % to $ 0.23 per share from $ 0.20 per share in the third quarter of 2018 . operating efficiency : efficiency ratio , calculated as noninterest expense divided by the sum of net interest income before provision for credit losses and noninterest income , was 44.73 % in 2018 , an improvement of 111 basis points compared to 45.84 % in 2017 . the improvement in the efficiency ratio reflects revenue growth , driven by net interest income growth , exceeding noninterest expense growth during 2018 . tax : our full year 2018 effective tax rate was 14.0 % , resulting in tax expense of $ 115.0 million , compared to an effective tax rate of 31.2 % and tax expense of $ 229.5 million for the full year 2017 . the income tax rate for 2018 was positively impacted by the decrease in the corporate federal income tax rate to 21 % from 35 % , effective january 1 , 2018. replace_table_token_1_th 33 results of operations net interest income the company 's primary source of revenue is net interest income , which is the difference between interest income earned on interest-earning assets less interest expense paid on interest-bearing liabilities . net interest margin is the ratio of net interest income to average interest-earning 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 dividend : we increased our quarterly common stock dividend by 15 % to $ 0.23 per share from $ 0.20 per share in the third quarter of 2018 . operating efficiency : efficiency ratio , calculated as noninterest expense divided by the sum of net interest income before provision for credit losses and noninterest income , was 44.73 % in 2018 , an improvement of 111 basis points compared to 45.84 % in 2017 . the improvement in the efficiency ratio reflects revenue growth , driven by net interest income growth , exceeding noninterest expense growth during 2018 . tax : our full year 2018 effective tax rate was 14.0 % , resulting in tax expense of $ 115.0 million , compared to an effective tax rate of 31.2 % and tax expense of $ 229.5 million for the full year 2017 . the income tax rate for 2018 was positively impacted by the decrease in the corporate federal income tax rate to 21 % from 35 % , effective january 1 , 2018. replace_table_token_1_th 33 results of operations net interest income the company 's primary source of revenue is net interest income , which is the difference between interest income earned on interest-earning assets less interest expense paid on interest-bearing liabilities . net interest margin is the ratio of net interest income to average interest-earning assets . ``` Suspicious Activity Report : $ 28,743,592 total loans $ 32,385,464 $ 29,053,935 $ 25,526,215 $ 23,675,706 $ 21,775,899 available-for-sale investment securities $ 2,741,847 $ 3,016,752 $ 3,335,795 $ 3,773,226 $ 2,626,617 total deposits , excluding held-for-sale deposits $ 35,439,628 $ 31,615,063 $ 29,890,983 $ 27,475,981 $ 24,008,774 long-term debt $ 146,835 $ 171,577 $ 186,327 $ 206,084 $ 225,848 fhlb advances $ 326,172 $ 323,891 $ 321,643 $ 1,019,424 $ 317,241 stockholders ' equity $ 4,423,974 $ 3,841,951 $ 3,427,741 $ 3,122,950 $ 2,856,111 performance metrics : return on average assets 1.83 % 1.41 % 1.30 % 1.27 % 1.25 % return on average equity 17.04 % 13.71 % 13.06 % 12.74 % 12.72 % net interest margin 3.78 % 3.48 % 3.30 % 3.35 % 4.03 % efficiency ratio 44.73 % 45.84 % 50.64 % 47.68 % 51.77 % credit quality metrics : allowance for loan losses $ 311,322 $ 287,128 $ 260,520 $ 264,959 $ 261,679 allowance for loan losses to loans held-for-investment ( 3 ) 0.96 % 0.99 % 1.02 % 1.12 % 1.20 % non-pci nonperforming assets to total assets ( 3 ) 0.23 % 0.31 % 0.37 % 0.40 % 0.46 % annual net charge-offs to average loans held-for-investment 0.13 % 0.08 % 0.15 % 0.01 % 0.18 % selected metrics : total average equity to total average assets 10.72 % 10.30 % 9.97 % 9.95 % 9.83 % common dividend payout ratio 17.90 % 23.14 % 27.01 % 30.21 % 30.07 % loan-to-deposit ratio 91.38 % 90.17 % 85.40 % 86.17 % 90.70 % capital ratios of ewbc ( 4 ) : total capital 13.7 % 12.9 % 12.4 % 12.2 % 12.6 % tier 1 capital 12.2 % 11.4 % 10.9 % 10.7 % 11.0 % cet1 capital 12.2 % 11.4 % 10.9 % 10.5 % n/a tier 1 leverage capital 9.9 % 9.2 % 8.7 % 8.5 % 8.4 % n/a — not applicable . ( 1 ) includes $ 31.5 million of pretax gain recognized from the sale of the dcb branches for 2018 . includes $ 71.7 million and $ 3.8 million of pretax gains recognized from the sales of a commercial property in california and ewis 's insurance brokerage business , respectively , for 2017 . includes changes in fdic indemnification asset and receivable/payable charges of $ 38.0 million and $ 201.4 million for 2015 and 2014 , respectively . the company terminated the united commercial bank and washington first international bank shared-loss agreements during 2015 . ( 2 ) includes an additional $ 41.7 million in income tax expense recognized during 2017 due to the enactment of the tax act . ( 3 ) total assets and loans held-for-investment include purchased credit-impaired ( “ pci ” ) loans of $ 308.0 million , $ 482.3 million , $ 642.4 million , $ 970.8 million and $ 1.32 billion as of december 31 , 2018 , 2017 , 2016 , 2015 and 2014 , respectively . ( 4 ) capital ratios are calculated under the basel iii capital rules which became effective on january 1 , 2015. prior to this date , the ratios were calculated under the basel i capital rules . the cet1 capital ratio was introduced under the basel iii capital rules . 31 2018 financial highlights we achieved strong earnings for the ninth consecutive year in 2018 . net income of $ 703.7 million in 2018 grew $ 198.1 million or 39 % from $ 505.6 million in 2017 . total revenue , or the sum of net interest income before provision for credit losses and noninterest income , of $ 1.60 billion grew 11 % year-over-year , primarily driven by an expanding net interest margin and robust loan growth . full year 2018 net interest margin of 3.78 % expanded 30 basis points year-over-year , from 3.48 % in 2017. revenue growth outpaced expense increases in 2018 , improving our operating efficiency . finally , net income growth in 2018 also benefited from a reduction in income tax expense related to the tax act . we earned a return on average assets ( “ roa ” ) of 1.83 % and a return on average equity ( “ roe ” ) of 17.04 % in 2018. on november 11 , 2017 , the bank entered into a purchase and assumption agreement to sell all of its eight dcb branches located in the high desert area of southern california to flagstar bank , a wholly-owned subsidiary of flagstar bancorp , inc. the sale of the bank 's dcb branches was completed on march 17 , 2018. the assets and liability of the dcb branches that were sold in this transaction included primarily $ 613.7 million of deposits , $ 59.1 million of loans , $ 9.0 million of cash and cash equivalents and $ 7.9 million of premises and equipment . the transaction resulted in a net cash payment of $ 499.9 million by the bank to flagstar bank . after transaction costs , the sale resulted in a pre-tax gain of $ 31.5 million , which was reported as net gain on sale of business as part of noninterest income on the consolidated statement of income . the 2018 eps impact from the sale of the dcb branches was $ 0.15 per share , net of tax . 32 noteworthy items about the company 's performance for 2018 included : earnings : full year 2018 net income of $ 703.7 million and diluted eps of $ 4.81 both increased 39 % , compared to full year 2017 net income of $ 505.6 million and diluted eps of $ 3.47 . strong returns on average assets and average equity during 2018 reflected our ability to expand profitability while growing the loan and deposit base . return on average assets increased 42 basis points to 1.83 % in 2018 , compared to 1.41 % in 2017 . story_separator_special_tag the changes in effective tax rates , as illustrated in the table above , were mainly due to the enactment of the tax act on december 22 , 2017. the tax act significantly changed u.s. corporate income tax laws by , among other things , reducing the u.s. federal corporate income tax rate from 35 % to 21 % effective january 1 , 2018 ; allowing the expensing of 100 % of the cost of acquired qualified property placed in service after september 27 , 2017 ; transitioning from a worldwide tax system to a territorial system ; imposing a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of december 31 , 2017 ; and eliminating the carrybacks of tax credits and net operating losses ( “ nols ” ) incurred after december 31 , 2017 . in addition , nols incurred after december 31 , 2017 can not offset more than 80 % of taxable income for any future year , but may be carried forward indefinitely . asc 740 , income taxes , requires companies to recognize the effect of the tax act in the period of enactment . hence , such effects were recognized in the company 's 2017 consolidated financial statements , even though the effective date of the law for most provisions is january 1 , 2018. the sec staff issued staff accounting bulletin no . 118 to address the application of u.s. gaap in situations where a registrant does not have the necessary information available , prepared , or analyzed ( including computations ) in reasonable detail to complete the accounting for certain income tax effects of the tax act . based on reasonable estimates , the company recorded $ 41.7 million of income tax expense in the fourth quarter of 2017 related to the impact of the tax act , the period in which the legislation was enacted . this amount was primarily related to the remeasurements of certain deferred tax assets and liabilities of $ 33.1 million , as well as the remeasurements of tax credits and other tax benefits related to qualified affordable housing partnerships of $ 7.9 million . as a result , the effective tax rate increased to 31.2 % during 2017 , compared to 24.6 % in 2016. during 2018 , management finalized its assessment of the initial impact of the tax act , which resulted in an increase in income tax expense by $ 985 thousand during the same period ensuing from the remeasurements of deferred tax assets and liabilities . as most of the income tax effects of the tax act were recorded during 2017 , coupled with the lower u.s. federal corporate income tax rate , the effective tax rate decreased to 14.0 % in 2018 , compared to 31.2 % in 2017 . the overall impact of the tax act was a one-time increase in income tax expense of $ 42.7 million . management regularly reviews the company 's tax positions and deferred tax balances . factors considered in this analysis include the company 's ability to generate future taxable income , implement tax-planning strategies ( as defined in asc 740 , income taxes ) and utilize taxable income from prior carryback years ( if such carryback is permitted under the applicable tax law ) , as well as future reversals of existing taxable temporary differences . the company accounts for income taxes using the asset and liability approach , the objective of which is to establish deferred tax assets and liabilities for the temporary differences between the financial reporting basis and the tax basis of the company 's assets and liabilities at enacted tax rates expected to be in effect when such amounts are realized and settled . net deferred tax assets increased $ 20.2 million or 21 % to $ 117.6 million as of december 31 , 2018 , compared to $ 97.4 million as of december 31 , 2017 , mainly attributable to an increase in tax credit carryforwards as a result of the lower income tax rate . for additional details on the components of net deferred tax assets , see note 13 — income taxes to the consolidated financial statements . a valuation allowance is established for deferred tax assets if , based on the weight of all positive evidence against all negative evidence , it is more likely than not that some portion or all of the deferred tax assets will not be realized . a valuation allowance is used , as needed , to reduce the deferred tax assets to the amount that is more likely than not to be realized . management has concluded that it is more likely than not that all of the benefits of the deferred tax assets will be realized , with the exception of the deferred tax assets related to nols in certain states . accordingly , a valuation allowance has been recorded for these amounts . the company believes that adequate provisions have been made for all income tax uncertainties consistent with asc 740 , income taxes as of december 31 , 2018. the company is also evaluating the possibility of recording an uncertain tax position liability in 2019 with regards to its investments in mobile solar generators sold and managed by dc solar . for further information , see item 7. md & a — other matters . operating segment results the company organizes its operations into three reportable operating segments : ( 1 ) consumer and business banking ( referred to as “ retail banking ” in the company 's prior quarterly form 10-q and annual form 10-k filings ) ; ( 2 ) commercial banking ; and ( 3 ) other . the consumer and business banking segment primarily provides financial products and services to consumer and commercial customers through the company 's domestic branch network . this segment offers consumer and commercial deposits , mortgage and home equity loans , and

while the impact of sequestration is yet to be determined , automatic across-the-board budget cuts would approximately double the amount of the ten-year $ 487 billion top line reduction already reflected in the defense funding over a ten-year period , with a $ 52 billion reduction occurring in the government 's fiscal year 2013. the resulting automatic across-the-board budget cuts in sequestration would have significant consequences to our business and industry . there would be disruption of ongoing programs and initiatives , facilities closures and personnel reductions that would severely impact advanced manufacturing operations and engineering expertise , and accelerate the loss of skills and knowledge , directly undermining a key provision of the new security strategy , which is to preserve the industrial base . the administration 's spending priorities were released on february 13 , 2012 with the submission of the president 's budget request for fiscal year 2013. the government 's 2013 fiscal year runs from october 2012 to september 2013. every year , congress must approve or revise the proposals contained in the president 's annual budget request through enactment of appropriations bills and other policy legislation , which then require final presidential approval . the outcome of the federal budget process has a direct effect on our business . department of defense business the passage of the budget act signaled the end of ten years of growth in the dod base budget and imposed specific caps on security and non-security spending beginning in fiscal year 2013. the fiscal year 2013 request of $ 525 billion for the dod base budget is the first to reflect the reduced spending levels imposed by the budget act and is consistent with its caps on discretionary spending . the fiscal year 2013 request represents a decline of about 1 % below the fiscal year 2012 dod baseline appropriated level of $ 531 billion . preliminary insights into national security funding priorities for fiscal year 2013 and beyond were revealed on january 26 , 2012 by secretary of defense leon panetta , which were consistent with the fiscal year 2013 budget request . specifically , the defense spending proposal estimates dod base budgets that are essentially flat in real terms from fiscal year 2013 through fiscal year 2017. in prior years , the administration has requested and congress has provided funds for u.s. military operations in afghanistan and iraq , and other unforeseeable contingency or peacekeeping operations , through a separate overseas contingency operations ( oco ) funding outside of the base dod budget . the oco funding for fiscal year 2012 totaled $ 115 billion , and the administration has requested $ 88 billion for fiscal year 2013. this significant reduction reflects the completion of u.s. military operations in iraq in 2011. our net sales historically have not been significantly dependent on overseas contingency or supplemental funding requests , and therefore , we continue to focus our attention on the dod 's base budget for support and funding of our programs . in december 2011 , congress passed an omnibus appropriations act for fiscal year 2012 to finance all u.s. government activities through september 30 , 2012 , the end of its fiscal year . this full year method of financing eliminated much of the uncertainty and inefficiency in procurement of products and services that characterized the first quarter of the government 's fiscal year 2012 when the operations of the federal government were financed through a series of continuing resolution temporary funding measures . as we begin 2012 , presidential election year activities will likely mean a shortened session for congress that will have to address the annual spending bills but also broader and more contentious policy issues associated with sequestration and tax policy . given the complexity and sensitivity of these issues , congress may resort to returning for a lame duck session after the november 2012 elections in order to deal with these more contentious issues . the fiscal year 2013 budget proposal reflects the administration 's new national security strategy and is consistent with the lower spending levels imposed by the budget act . despite the reduced defense spending levels in the president 's fiscal year 2013 budget proposal , we believe our broad mix of programs and capabilities continue to position us favorably to support the current and future needs of the dod and our programs are well supported in the fiscal year 2013 budget request . this view was strongly supported by the secretary of defense 's initial public release of elements of the fiscal year 2013 defense budget request on january 26 , 2012. for example , the budget supports continuation of all three variants of the f-35 and still maintains the same ultimate inventory objective of 2,443 aircraft for the u.s. government as last year , although ramp up of production will be slowed due to budgetary constraints in the near term to allow for more testing and to minimize design changes impacting production aircraft . additionally , the secretary 's preliminary release specifically cited continued support for systems where we are the prime contractor or a major subcontractor such as the global positioning satellite program , the advanced extremely high frequency system , the space-based infrared system , phased adaptive approach missile defense system , ddg-51 aegis destroyer , and continued operation of the u-2 manned isr aircraft . 23 given the administration 's emphasis on affordability and the need to find further efficiencies in the management and operations of dod , the need for more affordable logistics and sustainment , expansive use of information technology and knowledge-based solutions , and vastly improved levels of network and cyber security , all appear to continue to be national priorities . story_separator_special_tag product sales at space systems decreased about $ 460 million in 2010 compared to 2009 primarily due to lower volume on defensive missile systems , activities on the nasa external tank program due to the wind down of the space shuttle program and volume from commercial satellite and launch vehicle activities . there was one commercial satellite delivery in both 2010 and 2009 , and there were no commercial launches in 2010 compared to one commercial launch in 2009 . 27 services sales services sales at electronic systems increased about $ 165 million in 2011 compared to 2010 primarily due to growth on the special operations forces contractor logistics support services ( sof clss ) program partially offset by lower volume on various other logistic and training services programs . services sales at is & gs increased approximately $ 155 million in 2011 compared to 2010 due to activities on a number of smaller contracts . most of our services sales are in the electronic systems and is & gs business segments . services sales at electronic systems increased about $ 645 million in 2010 compared to 2009 primarily due to growth on various logistic and training programs and the start of the sof clss program in the third quarter of 2010. is & gs ' services sales increased about $ 310 million in 2010 compared to 2009 due to activities on the hanford mission support contract and numerous other services contracts at is & gs . cost of sales cost of sales , for both products and services , consist of materials , labor , and subcontracting costs , as well as an allocation of indirect costs ( overhead and general and administrative ) . for each of our contracts , we manage the nature and amount of costs at the contract level , which form the basis for estimating our total costs at completion of the contract . management evaluates performance on our contracts by focusing on net sales and operating profit , and not by type or amount of operating expense . consequently , our discussion of business segment performance focuses on net sales and operating profit , consistent with our approach for managing the business . this approach is consistent with the overall life cycle of our contracts , as management assesses the bidding of each contract by focusing on net sales and operating profit , and monitors performance on our contracts in a similar manner through their completion . we regularly provide customers with reports of our costs as the contract progresses . the cost information in the reports is accumulated in a manner specified by the requirements of each contract . for example , cost data provided to our customer for a product would typically align to the subcomponents of that product ( such as a wing-box on an aircraft ) or for services , the type of work being performed ( such as help-desk support ) . our contracts generally are cost-based , which allows for the recovery of costs in the pricing of our products and services . most of our contracts generally are bid and negotiated with our customers based on the mutual awareness of our estimated costs to provide the product or service . this approach for negotiating contracts with our u.s. government customers generally allows for the recovery of our costs . we also may enter into long-term supply contracts for certain materials or components , to coincide with the production schedule of certain products and to ensure their availability at known unit prices . replace_table_token_7_th due to the nature of poc accounting , changes in our cost of product and services sales are typically accompanied by changes in our net sales . the following discussion of material changes in our consolidated cost of sales should be read in tandem with the preceding discussion of changes in our consolidated net sales and with our “discussion of business segments.” cost of sales was $ 42.8 billion in 2011 , a $ 912 million or 2 % increase over 2010 cost of sales of $ 41.9 billion . the increase was due to a $ 429 million increase in cost of product sales , a $ 132 million increase in cost of services sales and a $ 435 million increase in other unallocated corporate costs , partially offset by a reduction in severance and other charges of $ 84 million as further discussed in the following sections . cost of sales was $ 41.9 billion in 2010 , a $ 2.2 billion or 5 % increase over 2009 cost of sales of $ 39.7 billion . the increase was due to a $ 896 million increase in cost of product sales , a $ 976 million increase in cost of services sales , a $ 71 million increase in other unallocated corporate costs and an increase for severance and other charges of $ 220 million , as further discussed in the following sections . 28 cost of product sales cost of product sales at aeronautics increased by about $ 1.1 billion in 2011 compared to 2010 primarily due to production volume on various programs , including f-35 lrip contracts , and the impact of additional aircraft deliveries . cost of product sales for electronic systems was relatively unchanged between 2011 and 2010. cost of product sales at is & gs decreased about $ 560 million in 2011 compared to 2010 primarily due to the absence of the dris program and lower volume on the jtrs program . cost of product sales decreased at space systems by about $ 120 million in 2011 compared to 2010 primarily due to lower volume on the nasa external tank and orion programs . cost of product sales at aeronautics increased by about $ 1.1 billion in 2010 compared to 2009 primarily due to production activities on various programs , including f-35 lrip contracts , and the impact of aircraft deliveries . cost of product sales

liquidity and cash flows our access to capital resources that provide liquidity has not been materially affected by the changing economic and market conditions over the past few years . we continually monitor changes in such conditions so that we can timely respond to any related developments . we have generated strong operating cash flows which have been the primary source of funding for our operations , debt service and repayments , capital expenditures , share repurchases , dividends , acquisitions , and postretirement benefit plan funding . we have accessed the capital markets on limited occasions , as needed or when opportunistic . we expect our cash from operations to continue to be sufficient to support our operations and anticipated capital expenditures for the foreseeable future . we have financing resources available to fund potential cash outflows that are less predictable or more discretionary , as discussed under capital structure , resources , and other . we have access to the credit markets , if needed , for liquidity or general corporate purposes , including letters of credit to support customer advance payments and for other trade finance purposes such as guaranteeing our performance on particular contracts . cash received from customers , either from the payment of invoices for work performed or for advances in excess of costs incurred , is our primary source of cash . we generally do not begin work on contracts until funding is appropriated by the customer . billing timetables and payment terms on our contracts vary based on a number of factors , including the contract type . we generally bill and collect cash more frequently under cost-reimbursable and time-and-materials contracts , which together represent approximately 55 % of the sales we recorded in 2011 , as we are authorized to bill as the costs are incurred or work is performed . in contrast to cost-reimbursable contracts , for fixed-price contracts , which represented approximately 45 % of the revenues we recorded in 2011 , we generally do not bill until milestones , including deliveries , are achieved .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 cash flows our access to capital resources that provide liquidity has not been materially affected by the changing economic and market conditions over the past few years . we continually monitor changes in such conditions so that we can timely respond to any related developments . we have generated strong operating cash flows which have been the primary source of funding for our operations , debt service and repayments , capital expenditures , share repurchases , dividends , acquisitions , and postretirement benefit plan funding . we have accessed the capital markets on limited occasions , as needed or when opportunistic . we expect our cash from operations to continue to be sufficient to support our operations and anticipated capital expenditures for the foreseeable future . we have financing resources available to fund potential cash outflows that are less predictable or more discretionary , as discussed under capital structure , resources , and other . we have access to the credit markets , if needed , for liquidity or general corporate purposes , including letters of credit to support customer advance payments and for other trade finance purposes such as guaranteeing our performance on particular contracts . cash received from customers , either from the payment of invoices for work performed or for advances in excess of costs incurred , is our primary source of cash . we generally do not begin work on contracts until funding is appropriated by the customer . billing timetables and payment terms on our contracts vary based on a number of factors , including the contract type . we generally bill and collect cash more frequently under cost-reimbursable and time-and-materials contracts , which together represent approximately 55 % of the sales we recorded in 2011 , as we are authorized to bill as the costs are incurred or work is performed . in contrast to cost-reimbursable contracts , for fixed-price contracts , which represented approximately 45 % of the revenues we recorded in 2011 , we generally do not bill until milestones , including deliveries , are achieved . ``` Suspicious Activity Report : while the impact of sequestration is yet to be determined , automatic across-the-board budget cuts would approximately double the amount of the ten-year $ 487 billion top line reduction already reflected in the defense funding over a ten-year period , with a $ 52 billion reduction occurring in the government 's fiscal year 2013. the resulting automatic across-the-board budget cuts in sequestration would have significant consequences to our business and industry . there would be disruption of ongoing programs and initiatives , facilities closures and personnel reductions that would severely impact advanced manufacturing operations and engineering expertise , and accelerate the loss of skills and knowledge , directly undermining a key provision of the new security strategy , which is to preserve the industrial base . the administration 's spending priorities were released on february 13 , 2012 with the submission of the president 's budget request for fiscal year 2013. the government 's 2013 fiscal year runs from october 2012 to september 2013. every year , congress must approve or revise the proposals contained in the president 's annual budget request through enactment of appropriations bills and other policy legislation , which then require final presidential approval . the outcome of the federal budget process has a direct effect on our business . department of defense business the passage of the budget act signaled the end of ten years of growth in the dod base budget and imposed specific caps on security and non-security spending beginning in fiscal year 2013. the fiscal year 2013 request of $ 525 billion for the dod base budget is the first to reflect the reduced spending levels imposed by the budget act and is consistent with its caps on discretionary spending . the fiscal year 2013 request represents a decline of about 1 % below the fiscal year 2012 dod baseline appropriated level of $ 531 billion . preliminary insights into national security funding priorities for fiscal year 2013 and beyond were revealed on january 26 , 2012 by secretary of defense leon panetta , which were consistent with the fiscal year 2013 budget request . specifically , the defense spending proposal estimates dod base budgets that are essentially flat in real terms from fiscal year 2013 through fiscal year 2017. in prior years , the administration has requested and congress has provided funds for u.s. military operations in afghanistan and iraq , and other unforeseeable contingency or peacekeeping operations , through a separate overseas contingency operations ( oco ) funding outside of the base dod budget . the oco funding for fiscal year 2012 totaled $ 115 billion , and the administration has requested $ 88 billion for fiscal year 2013. this significant reduction reflects the completion of u.s. military operations in iraq in 2011. our net sales historically have not been significantly dependent on overseas contingency or supplemental funding requests , and therefore , we continue to focus our attention on the dod 's base budget for support and funding of our programs . in december 2011 , congress passed an omnibus appropriations act for fiscal year 2012 to finance all u.s. government activities through september 30 , 2012 , the end of its fiscal year . this full year method of financing eliminated much of the uncertainty and inefficiency in procurement of products and services that characterized the first quarter of the government 's fiscal year 2012 when the operations of the federal government were financed through a series of continuing resolution temporary funding measures . as we begin 2012 , presidential election year activities will likely mean a shortened session for congress that will have to address the annual spending bills but also broader and more contentious policy issues associated with sequestration and tax policy . given the complexity and sensitivity of these issues , congress may resort to returning for a lame duck session after the november 2012 elections in order to deal with these more contentious issues . the fiscal year 2013 budget proposal reflects the administration 's new national security strategy and is consistent with the lower spending levels imposed by the budget act . despite the reduced defense spending levels in the president 's fiscal year 2013 budget proposal , we believe our broad mix of programs and capabilities continue to position us favorably to support the current and future needs of the dod and our programs are well supported in the fiscal year 2013 budget request . this view was strongly supported by the secretary of defense 's initial public release of elements of the fiscal year 2013 defense budget request on january 26 , 2012. for example , the budget supports continuation of all three variants of the f-35 and still maintains the same ultimate inventory objective of 2,443 aircraft for the u.s. government as last year , although ramp up of production will be slowed due to budgetary constraints in the near term to allow for more testing and to minimize design changes impacting production aircraft . additionally , the secretary 's preliminary release specifically cited continued support for systems where we are the prime contractor or a major subcontractor such as the global positioning satellite program , the advanced extremely high frequency system , the space-based infrared system , phased adaptive approach missile defense system , ddg-51 aegis destroyer , and continued operation of the u-2 manned isr aircraft . 23 given the administration 's emphasis on affordability and the need to find further efficiencies in the management and operations of dod , the need for more affordable logistics and sustainment , expansive use of information technology and knowledge-based solutions , and vastly improved levels of network and cyber security , all appear to continue to be national priorities . story_separator_special_tag product sales at space systems decreased about $ 460 million in 2010 compared to 2009 primarily due to lower volume on defensive missile systems , activities on the nasa external tank program due to the wind down of the space shuttle program and volume from commercial satellite and launch vehicle activities . there was one commercial satellite delivery in both 2010 and 2009 , and there were no commercial launches in 2010 compared to one commercial launch in 2009 . 27 services sales services sales at electronic systems increased about $ 165 million in 2011 compared to 2010 primarily due to growth on the special operations forces contractor logistics support services ( sof clss ) program partially offset by lower volume on various other logistic and training services programs . services sales at is & gs increased approximately $ 155 million in 2011 compared to 2010 due to activities on a number of smaller contracts . most of our services sales are in the electronic systems and is & gs business segments . services sales at electronic systems increased about $ 645 million in 2010 compared to 2009 primarily due to growth on various logistic and training programs and the start of the sof clss program in the third quarter of 2010. is & gs ' services sales increased about $ 310 million in 2010 compared to 2009 due to activities on the hanford mission support contract and numerous other services contracts at is & gs . cost of sales cost of sales , for both products and services , consist of materials , labor , and subcontracting costs , as well as an allocation of indirect costs ( overhead and general and administrative ) . for each of our contracts , we manage the nature and amount of costs at the contract level , which form the basis for estimating our total costs at completion of the contract . management evaluates performance on our contracts by focusing on net sales and operating profit , and not by type or amount of operating expense . consequently , our discussion of business segment performance focuses on net sales and operating profit , consistent with our approach for managing the business . this approach is consistent with the overall life cycle of our contracts , as management assesses the bidding of each contract by focusing on net sales and operating profit , and monitors performance on our contracts in a similar manner through their completion . we regularly provide customers with reports of our costs as the contract progresses . the cost information in the reports is accumulated in a manner specified by the requirements of each contract . for example , cost data provided to our customer for a product would typically align to the subcomponents of that product ( such as a wing-box on an aircraft ) or for services , the type of work being performed ( such as help-desk support ) . our contracts generally are cost-based , which allows for the recovery of costs in the pricing of our products and services . most of our contracts generally are bid and negotiated with our customers based on the mutual awareness of our estimated costs to provide the product or service . this approach for negotiating contracts with our u.s. government customers generally allows for the recovery of our costs . we also may enter into long-term supply contracts for certain materials or components , to coincide with the production schedule of certain products and to ensure their availability at known unit prices . replace_table_token_7_th due to the nature of poc accounting , changes in our cost of product and services sales are typically accompanied by changes in our net sales . the following discussion of material changes in our consolidated cost of sales should be read in tandem with the preceding discussion of changes in our consolidated net sales and with our “discussion of business segments.” cost of sales was $ 42.8 billion in 2011 , a $ 912 million or 2 % increase over 2010 cost of sales of $ 41.9 billion . the increase was due to a $ 429 million increase in cost of product sales , a $ 132 million increase in cost of services sales and a $ 435 million increase in other unallocated corporate costs , partially offset by a reduction in severance and other charges of $ 84 million as further discussed in the following sections . cost of sales was $ 41.9 billion in 2010 , a $ 2.2 billion or 5 % increase over 2009 cost of sales of $ 39.7 billion . the increase was due to a $ 896 million increase in cost of product sales , a $ 976 million increase in cost of services sales , a $ 71 million increase in other unallocated corporate costs and an increase for severance and other charges of $ 220 million , as further discussed in the following sections . 28 cost of product sales cost of product sales at aeronautics increased by about $ 1.1 billion in 2011 compared to 2010 primarily due to production volume on various programs , including f-35 lrip contracts , and the impact of additional aircraft deliveries . cost of product sales for electronic systems was relatively unchanged between 2011 and 2010. cost of product sales at is & gs decreased about $ 560 million in 2011 compared to 2010 primarily due to the absence of the dris program and lower volume on the jtrs program . cost of product sales decreased at space systems by about $ 120 million in 2011 compared to 2010 primarily due to lower volume on the nasa external tank and orion programs . cost of product sales at aeronautics increased by about $ 1.1 billion in 2010 compared to 2009 primarily due to production activities on various programs , including f-35 lrip contracts , and the impact of aircraft deliveries . cost of product sales

our principal sources of funds historically have been cash flow from operations and borrowings under credit facilities in existence from time to time . our cash flow from operations is subject to such factors as shifts in population , station listenership , demographics , or audience tastes , and fluctuations in preferred advertising media . in addition , customers may not be able to pay , or may delay payment of , accounts receivable that are owed to us , which risks may be exacerbated in challenging economic periods . in recent periods , management has taken steps to mitigate this risk through heightened collection efforts and enhancements to our credit approval process , although no assurances as to the longer-term success of these efforts can be provided . in addition , we believe the acquisition of the broad diversity in format , listener base , geography , advertiser base and revenue stream that accompanied the cmp acquisition and the citadel merger will help us reduce dependence on any single demographic , region or industry . on december 20 , 2012 , we entered into an amendment and restatement ( the “amendment and restatement” ) of our first lien facility credit agreement , dated as of september 16 , 2011 , among the company , cumulus media holdings , inc. , as borrower ( the “borrower” ) , and the lenders and the agents thereto ( the “original agreement” ) . pursuant to the amendment and restatement , the terms and conditions contained in the original agreement remained substantially unchanged , except as follows : ( i ) the amount outstanding thereunder was increased to $ 1.325 billion ; ( ii ) the margin for libor ( as defined below ) -based borrowings was reduced from 4.5 % to 3.5 % and for base rate ( as defined below ) -based borrowings was reduced from 3.5 % to 2.5 % ; and ( iii ) the libor floor for libor-based borrowings was reduced from 1.25 % to 1.0 % . in the event amounts are outstanding under the revolving credit facility , the first lien facility requires compliance with a consolidated total net leverage ratio . at december 31 , 2012 , this ratio would have been 6.5 to 1.0. such ratio will be reduced in future periods if amounts are outstanding under the revolving credit facility at an applicable date . at december 31 , 2012 we would not have been in compliance with this ratio . as a result , borrowings under the revolving credit facility were not available at that date . the second lien facility does not contain any financial covenants . at december 31 , 2012 our long-term debt consisted of $ 2.0 billion in total term loans and $ 610.0 million in 7.75 % senior notes . based upon the calculation of excess cash flow at december 31 , 2012 , the company is required to make a mandatory prepayment of $ 63.2 million on the first lien term loan due within 10 days of the filing of this annual report or form 10-k. this amount has been classified in the current portion of long-term debt caption of the consolidated balance sheet . the 2011 credit facilities contain provisions requiring the company to use the proceeds from the disposition of assets of the company to prepay amounts outstanding under the first lien facility and the second lien facility ( to the extent proceeds remain after the required prepayment 40 index to financial statements of all amounts outstanding under the first lien facility ) , subject to the right of the company to use such proceeds to acquire , improve or repair assets useful in its business , all within one year from the date of receipt of such proceeds . if and to the extent that the proceeds from the townsquare asset exchange are not otherwise reinvested within the applicable time period , the company will be required to prepay an equivalent amount of principal outstanding under the 2011 credit facilities in accordance with the terms thereof . we have assessed the current and expected conditions of our business climate , our current and expected needs for funds and our current and expected sources of funds and determined , based on our financial condition as of december 31 , 2012 , that cash on hand and cash expected to be generated from operating activities will be sufficient to satisfy our anticipated financing needs for working capital , capital expenditures , interest and debt service payments , and repurchases of securities and other debt obligations through december 31 , 2013. advertising revenue and adjusted ebitda our primary source of revenues is the sale of advertising time on our radio stations and networks . our sales of advertising time are primarily affected by the demand for advertising time from local , regional and national advertisers and the advertising rates charged by us . advertising demand and rates are based primarily on a station 's ability to attract audiences in the demographic groups targeted by its advertisers , as measured principally by various ratings agencies on a periodic basis . we endeavor to develop strong listener loyalty and we believe that the diversification of formats and programs helps to insulate us from the effects of changes in the musical tastes of the public with respect to any particular format . in addition , we believe that the portfolio that we own and operate , which has increased diversity in terms of format , listener base , geography , advertiser base and revenue stream as a result of our recent acquisitions , including the cmp acquisition and the citadel merger , and the development of our strategy to focus on radio stations in larger markets and geographically strategic regional clusters , will further reduce our revenue dependence on any single demographic , region or industry . story_separator_special_tag liquidity and capital resources liquidity considerations the following table summarizes our principal historical funding needs for the years ended december 31 , 2012 , 2011 and 2010 ( dollars in thousands ) : replace_table_token_20_th 49 index to financial statements cash flows from operating activities replace_table_token_21_th for the years ended december 31 , 2012 and 2011 , net cash provided by operating activities increased by $ 107.7 million and $ 29.2 million , respectively , over the prior year . the increase in 2012 was primarily due to an increase in net revenues of $ 556.6 million , partially offset by an aggregate decrease in cash provided by operating assets and liabilities of $ 31.0 million and increases in operating expenses and cash paid for interest of $ 303.9 million and $ 122.5 million , respectively . cash flows from investing activities replace_table_token_22_th for the year ended december 31 , 2012 , net cash provided by investing activities increased $ 2.1 billion as compared to the year ended december 31 , 2011 , primarily due to consideration paid in 2011 to complete the citadel merger . for the year ended december 31 , 2011 , net cash used in investing activities increased $ 2.0 billion as compared to the year ended december 31 , 2010 , primarily due to consideration paid to complete the citadel merger . cash flows from financing activities replace_table_token_23_th for the year ended december 31 , 2012 , net cash used in financing activities decreased $ 2.2 billion as compared to the year ended december 31 , 2011 , primarily due the company 's receipt in 2011 of proceeds from the refinancing and the sale of equity securities in connection with the completion of the citadel merger . for the year ended december 31 , 2011 , net cash provided by financing activities increased $ 2.0 billion as compared to the year ended december 31 , 2010 , primarily due to proceeds from those refinancing activities including the related sale of equity securities . 2012 acquisitions for a detailed discussion of our material 2012 acquisitions , see note 2 , “acquisitions and dispositions” in the consolidated financial statements included elsewhere in this form 10-k. 2011 acquisitions for a detailed discussion of our material 2011 acquisitions , see note 2 , “acquisitions and dispositions” in the consolidated financial statements included elsewhere in this form 10-k. we did not complete any material dispositions during the year ended december 31 , 2011 . 50 index to financial statements 2012 and 2011 refinancing transactions for a detailed discussion of our 2012 and 2011 refinancing transactions , see note 9 , “long-term debt” in the consolidated financial statements included elsewhere in this form 10-k. critical accounting policies and estimates use of estimates the preparation of financial statements in conformity with gaap requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . on an on-going basis , our management , in consultation with the audit committee of our board , evaluates these estimates , including those related to bad debts , intangible assets , self-insurance liabilities , income taxes , and contingencies and litigation . we base our estimates on historical experience and on various assumptions 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 . 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 we recognize revenue from the sale of commercial broadcast time to advertisers when the commercials are broadcast , subject to meeting certain conditions such as persuasive evidence that an arrangement exists and collection is reasonably assured . these criteria are generally met at the time an advertisement is broadcast . accounts receivable and concentration of credit risks accounts receivable are recorded at the invoiced amount and do not bear interest . the allowance for doubtful accounts is our best estimate of the amount of probable credit losses in our existing accounts receivable . we determine the allowance based on several factors including the length of time receivables are past due , trends and current economic factors . all balances are reviewed and evaluated on a consolidated basis . account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote . we do not have any off-balance-sheet credit exposure related to our customers . in the opinion of our management , credit risk with respect to accounts receivable is limited due to the large number of customers and the geographic diversification of our customer base . we perform ongoing credit evaluations of our customers and believe that adequate allowances for any uncollectible accounts receivable are maintained . intangible assets we have significant intangible assets recorded in our accounts . these intangible assets are comprised primarily of broadcast licenses and goodwill acquired through the acquisition of radio stations . we are required to review the carrying value of certain intangible assets and our goodwill annually for impairment , and more frequently if circumstances warrant , and record any impairment to results of operations in the periods in which the recorded value of those assets is more than their fair value . for the year ended december 31 , 2012 , we recorded aggregate impairment charges of $ 127.1 million , to reduce the carrying value of certain broadcast licenses , goodwill and definite-lived intangible assets to their respective fair values . as of december 31 , 2012 , we had $ 3.1 billion in intangible assets and goodwill , which represented approximately 81.7 % of our total assets . we

loss on early extinguishment of debt . for the years ended december 31 , 2012 and 2011 , we recorded $ 2.4 million and $ 4.4 million in losses on early extinguishment of debt as a result of our debt refinancings in december 2012 and may 2011 , respectively . gain on equity investment in cmp . for the year ended december 31 , 2011 , we recorded an $ 11.6 million gain on our equity investment in cmp due to the cmp acquisition . there was not a similar gain during the year ended december 31 , 2012 ( see note 2 , “acquisitions and dispositions” ) . income tax benefit ( expense ) . we recorded an income tax benefit on continuing operations of $ 26.6 million in 2012 as compared to a $ 3.3 million benefit during the prior year . the income tax benefit for 2012 is equal to the amount of tax expense on discontinued operations that is offset by the loss from continuing operations . the income tax benefit for 2011 is primarily due to a release of the valuation allowance as a result of the cmp acquisition and citadel merger while the 2010 tax expense is primarily due to tax amortization of intangibles . adjusted ebitda . as a result of the factors described above , adjusted ebitda for the year ended december 31 , 2012 increased $ 270.0 million , or 218.3 % , to $ 393.7 million compared to $ 123.7 million for the year ended december 31 , 2011 . 45 index to financial statements reconciliation of non-gaap financial measure . the following table reconciles adjusted ebitda to net income ( the most directly comparable financial measure calculated and presented in accordance with gaap ) as presented in the accompanying consolidated statements of operations ( dollars in thousands ) : replace_table_token_17_th * * calculation is not meaningful intangible assets ( including goodwill ) , net . intangible assets , net of amortization , were $ 3,056.3 million and $ 3,350.4 million as of december 31 , 2012 and 2011 , respectively . these intangible asset balances primarily consist of broadcast licenses and goodwill .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 early extinguishment of debt . for the years ended december 31 , 2012 and 2011 , we recorded $ 2.4 million and $ 4.4 million in losses on early extinguishment of debt as a result of our debt refinancings in december 2012 and may 2011 , respectively . gain on equity investment in cmp . for the year ended december 31 , 2011 , we recorded an $ 11.6 million gain on our equity investment in cmp due to the cmp acquisition . there was not a similar gain during the year ended december 31 , 2012 ( see note 2 , “acquisitions and dispositions” ) . income tax benefit ( expense ) . we recorded an income tax benefit on continuing operations of $ 26.6 million in 2012 as compared to a $ 3.3 million benefit during the prior year . the income tax benefit for 2012 is equal to the amount of tax expense on discontinued operations that is offset by the loss from continuing operations . the income tax benefit for 2011 is primarily due to a release of the valuation allowance as a result of the cmp acquisition and citadel merger while the 2010 tax expense is primarily due to tax amortization of intangibles . adjusted ebitda . as a result of the factors described above , adjusted ebitda for the year ended december 31 , 2012 increased $ 270.0 million , or 218.3 % , to $ 393.7 million compared to $ 123.7 million for the year ended december 31 , 2011 . 45 index to financial statements reconciliation of non-gaap financial measure . the following table reconciles adjusted ebitda to net income ( the most directly comparable financial measure calculated and presented in accordance with gaap ) as presented in the accompanying consolidated statements of operations ( dollars in thousands ) : replace_table_token_17_th * * calculation is not meaningful intangible assets ( including goodwill ) , net . intangible assets , net of amortization , were $ 3,056.3 million and $ 3,350.4 million as of december 31 , 2012 and 2011 , respectively . these intangible asset balances primarily consist of broadcast licenses and goodwill . ``` Suspicious Activity Report : our principal sources of funds historically have been cash flow from operations and borrowings under credit facilities in existence from time to time . our cash flow from operations is subject to such factors as shifts in population , station listenership , demographics , or audience tastes , and fluctuations in preferred advertising media . in addition , customers may not be able to pay , or may delay payment of , accounts receivable that are owed to us , which risks may be exacerbated in challenging economic periods . in recent periods , management has taken steps to mitigate this risk through heightened collection efforts and enhancements to our credit approval process , although no assurances as to the longer-term success of these efforts can be provided . in addition , we believe the acquisition of the broad diversity in format , listener base , geography , advertiser base and revenue stream that accompanied the cmp acquisition and the citadel merger will help us reduce dependence on any single demographic , region or industry . on december 20 , 2012 , we entered into an amendment and restatement ( the “amendment and restatement” ) of our first lien facility credit agreement , dated as of september 16 , 2011 , among the company , cumulus media holdings , inc. , as borrower ( the “borrower” ) , and the lenders and the agents thereto ( the “original agreement” ) . pursuant to the amendment and restatement , the terms and conditions contained in the original agreement remained substantially unchanged , except as follows : ( i ) the amount outstanding thereunder was increased to $ 1.325 billion ; ( ii ) the margin for libor ( as defined below ) -based borrowings was reduced from 4.5 % to 3.5 % and for base rate ( as defined below ) -based borrowings was reduced from 3.5 % to 2.5 % ; and ( iii ) the libor floor for libor-based borrowings was reduced from 1.25 % to 1.0 % . in the event amounts are outstanding under the revolving credit facility , the first lien facility requires compliance with a consolidated total net leverage ratio . at december 31 , 2012 , this ratio would have been 6.5 to 1.0. such ratio will be reduced in future periods if amounts are outstanding under the revolving credit facility at an applicable date . at december 31 , 2012 we would not have been in compliance with this ratio . as a result , borrowings under the revolving credit facility were not available at that date . the second lien facility does not contain any financial covenants . at december 31 , 2012 our long-term debt consisted of $ 2.0 billion in total term loans and $ 610.0 million in 7.75 % senior notes . based upon the calculation of excess cash flow at december 31 , 2012 , the company is required to make a mandatory prepayment of $ 63.2 million on the first lien term loan due within 10 days of the filing of this annual report or form 10-k. this amount has been classified in the current portion of long-term debt caption of the consolidated balance sheet . the 2011 credit facilities contain provisions requiring the company to use the proceeds from the disposition of assets of the company to prepay amounts outstanding under the first lien facility and the second lien facility ( to the extent proceeds remain after the required prepayment 40 index to financial statements of all amounts outstanding under the first lien facility ) , subject to the right of the company to use such proceeds to acquire , improve or repair assets useful in its business , all within one year from the date of receipt of such proceeds . if and to the extent that the proceeds from the townsquare asset exchange are not otherwise reinvested within the applicable time period , the company will be required to prepay an equivalent amount of principal outstanding under the 2011 credit facilities in accordance with the terms thereof . we have assessed the current and expected conditions of our business climate , our current and expected needs for funds and our current and expected sources of funds and determined , based on our financial condition as of december 31 , 2012 , that cash on hand and cash expected to be generated from operating activities will be sufficient to satisfy our anticipated financing needs for working capital , capital expenditures , interest and debt service payments , and repurchases of securities and other debt obligations through december 31 , 2013. advertising revenue and adjusted ebitda our primary source of revenues is the sale of advertising time on our radio stations and networks . our sales of advertising time are primarily affected by the demand for advertising time from local , regional and national advertisers and the advertising rates charged by us . advertising demand and rates are based primarily on a station 's ability to attract audiences in the demographic groups targeted by its advertisers , as measured principally by various ratings agencies on a periodic basis . we endeavor to develop strong listener loyalty and we believe that the diversification of formats and programs helps to insulate us from the effects of changes in the musical tastes of the public with respect to any particular format . in addition , we believe that the portfolio that we own and operate , which has increased diversity in terms of format , listener base , geography , advertiser base and revenue stream as a result of our recent acquisitions , including the cmp acquisition and the citadel merger , and the development of our strategy to focus on radio stations in larger markets and geographically strategic regional clusters , will further reduce our revenue dependence on any single demographic , region or industry . story_separator_special_tag liquidity and capital resources liquidity considerations the following table summarizes our principal historical funding needs for the years ended december 31 , 2012 , 2011 and 2010 ( dollars in thousands ) : replace_table_token_20_th 49 index to financial statements cash flows from operating activities replace_table_token_21_th for the years ended december 31 , 2012 and 2011 , net cash provided by operating activities increased by $ 107.7 million and $ 29.2 million , respectively , over the prior year . the increase in 2012 was primarily due to an increase in net revenues of $ 556.6 million , partially offset by an aggregate decrease in cash provided by operating assets and liabilities of $ 31.0 million and increases in operating expenses and cash paid for interest of $ 303.9 million and $ 122.5 million , respectively . cash flows from investing activities replace_table_token_22_th for the year ended december 31 , 2012 , net cash provided by investing activities increased $ 2.1 billion as compared to the year ended december 31 , 2011 , primarily due to consideration paid in 2011 to complete the citadel merger . for the year ended december 31 , 2011 , net cash used in investing activities increased $ 2.0 billion as compared to the year ended december 31 , 2010 , primarily due to consideration paid to complete the citadel merger . cash flows from financing activities replace_table_token_23_th for the year ended december 31 , 2012 , net cash used in financing activities decreased $ 2.2 billion as compared to the year ended december 31 , 2011 , primarily due the company 's receipt in 2011 of proceeds from the refinancing and the sale of equity securities in connection with the completion of the citadel merger . for the year ended december 31 , 2011 , net cash provided by financing activities increased $ 2.0 billion as compared to the year ended december 31 , 2010 , primarily due to proceeds from those refinancing activities including the related sale of equity securities . 2012 acquisitions for a detailed discussion of our material 2012 acquisitions , see note 2 , “acquisitions and dispositions” in the consolidated financial statements included elsewhere in this form 10-k. 2011 acquisitions for a detailed discussion of our material 2011 acquisitions , see note 2 , “acquisitions and dispositions” in the consolidated financial statements included elsewhere in this form 10-k. we did not complete any material dispositions during the year ended december 31 , 2011 . 50 index to financial statements 2012 and 2011 refinancing transactions for a detailed discussion of our 2012 and 2011 refinancing transactions , see note 9 , “long-term debt” in the consolidated financial statements included elsewhere in this form 10-k. critical accounting policies and estimates use of estimates the preparation of financial statements in conformity with gaap requires us to make estimates and judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . on an on-going basis , our management , in consultation with the audit committee of our board , evaluates these estimates , including those related to bad debts , intangible assets , self-insurance liabilities , income taxes , and contingencies and litigation . we base our estimates on historical experience and on various assumptions 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 . 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 we recognize revenue from the sale of commercial broadcast time to advertisers when the commercials are broadcast , subject to meeting certain conditions such as persuasive evidence that an arrangement exists and collection is reasonably assured . these criteria are generally met at the time an advertisement is broadcast . accounts receivable and concentration of credit risks accounts receivable are recorded at the invoiced amount and do not bear interest . the allowance for doubtful accounts is our best estimate of the amount of probable credit losses in our existing accounts receivable . we determine the allowance based on several factors including the length of time receivables are past due , trends and current economic factors . all balances are reviewed and evaluated on a consolidated basis . account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote . we do not have any off-balance-sheet credit exposure related to our customers . in the opinion of our management , credit risk with respect to accounts receivable is limited due to the large number of customers and the geographic diversification of our customer base . we perform ongoing credit evaluations of our customers and believe that adequate allowances for any uncollectible accounts receivable are maintained . intangible assets we have significant intangible assets recorded in our accounts . these intangible assets are comprised primarily of broadcast licenses and goodwill acquired through the acquisition of radio stations . we are required to review the carrying value of certain intangible assets and our goodwill annually for impairment , and more frequently if circumstances warrant , and record any impairment to results of operations in the periods in which the recorded value of those assets is more than their fair value . for the year ended december 31 , 2012 , we recorded aggregate impairment charges of $ 127.1 million , to reduce the carrying value of certain broadcast licenses , goodwill and definite-lived intangible assets to their respective fair values . as of december 31 , 2012 , we had $ 3.1 billion in intangible assets and goodwill , which represented approximately 81.7 % of our total assets . we

we have observed some degree of seasonality in our business , as there tends to be a lower number of procedures that use our products during the three months ending september 30. interventional procedure volume usually grows throughout the course of the fiscal year , with the quarter ending june 30 usually representing the highest volume of cases and , therefore , the highest amount of revenue generated by us during the course of the fiscal year . cost of goods sold . we assemble the single-use catheter with components purchased from third-party suppliers , as well as with components manufactured in-house . balloons , guide wires , and certain catheters are purchased from third-party suppliers . our cost of goods sold consists primarily of raw materials , direct labor , manufacturing overhead , and purchased finished goods . selling , general and administrative expenses . selling , general and administrative expenses include compensation for executive , sales , marketing , finance , information technology , human resources and administrative personnel , including stock-based compensation and facilities overhead . other significant expenses include bad debt expense , travel , marketing costs , professional fees and professional education . research and development expenses . research and development expenses include costs associated with the design , development , testing , enhancement and regulatory approval of our products . research and development expenses include employee compensation including stock-based compensation , supplies and materials , patent expenses , consulting expenses , travel and facilities overhead . we also incur significant expenses to operate clinical trials , including trial design , third-party fees , clinical site reimbursement , data management and travel expenses . all research and development expenses are expensed as incurred . approved patent applications are capitalized and amortized using the straight-line method over their remaining estimated lives . patent amortization begins at the time of patent application approval and does not exceed 20 years . other ( income ) and expense , net . other ( income ) and expense , net primarily includes interest expense from amounts owed under the lease of our headquarters facility and doj settlement and interest income from money market funds and other investments in marketable securities . net operating loss carryforwards . we have established valuation allowances to fully offset our deferred tax assets due to the uncertainty about our ability to generate the future taxable income necessary to realize these deferred assets , particularly in light of our historical losses . the future use of net operating loss carryforwards is dependent on us attaining profitable operations and will be limited in any one year under internal revenue code section 382 due to significant ownership changes ( as defined in section 382 ) resulting from our equity financings . at june 30 , 2019 , we had net operating loss carryforwards for federal and state income tax reporting purposes of approximately $ 269.4 million , which will expire at various dates through fiscal 2037. critical accounting policies and significant judgments and estimates our management 's discussion and analysis of our financial condition and results of operations is based on our consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states . the preparation of our consolidated financial statements requires us to make estimates , assumptions and judgments that affect amounts reported in those statements . our estimates , assumptions and judgments , including those related to revenue recognition , deferred revenue and stock-based compensation , are updated as appropriate at least quarterly . we use authoritative pronouncements , our technical accounting knowledge , cumulative business experience , valuation specialists , judgment and other factors in the selection and application of our accounting policies . while we believe that the estimates , assumptions and judgments that we use in preparing our consolidated financial statements are appropriate , these estimates , assumptions and judgments are subject to factors and uncertainties regarding their outcome . therefore , actual results may materially differ from these estimates . some of our significant accounting policies require us to make subjective or complex judgments or estimates . an accounting estimate is considered to be critical if it meets both of the following criteria : ( 1 ) the estimate requires assumptions about matters that are highly uncertain at the time the accounting estimate is made , and ( 2 ) different estimates that reasonably could have been used , or changes in the estimate that are reasonably likely to occur from period to period , would have a material impact on the presentation of our financial condition , results of operations , or cash flows . 31 revenue recognition . we sell our peripheral and coronary products to customers through a direct sales force in the united states and through distributors internationally . we have no material concentration of credit risk or significant payment terms extended to customers and , therefore , we do not adjust the promised amount of consideration for the effects of a significant financing component . sales , use , value-added , and other excise taxes are not recognized in revenue . we have elected to present revenue net of sales taxes and other similar taxes . performance obligations the majority of our revenues are from customer arrangements containing a single performance obligation to transfer peripheral and coronary products , and thus revenue is recognized at a point in time when control is transferred . this generally occurs upon shipment or upon delivery to the customer site , based on the contract terms . shipping and handling activities are considered to be fulfillment activities and are not considered to be a separate performance obligation . story_separator_special_tag off-balance sheet arrangements since inception , we have not engaged in any off-balance sheet arrangements as defined in item 303 ( a ) ( 4 ) of regulation s-k. recent accounting pronouncements in february 2016 , the fasb issued accounting standards update ( “ asu ” ) 2016-02 , “ leases . ” the guidance requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet . asu 2016-02 is effective for annual periods beginning after december 15 , 2018 , including interim periods within those annual periods , and should be applied using a modified retrospective approach . the guidance was effective for us on july 1 , 2019. we have elected the prospective transition method with the effects of adoption recognized as a cumulative effect adjustment to the opening balance of retained earnings in our fiscal 2020 financial statements , with no restatement of comparative periods . we have also elected the package of three practical expedients permitted under the transition guidance within the new standard , which among other things , allows us to carry forward the historical lease classification . we have assessed the impact of adopting this guidance on our consolidated financial statements and related disclosures and do not expect a material impact to our results of operations and cash flows . we will record our operating leases on our consolidated balance sheet as right of use assets and lease liabilities , but due to the makeup of our current operating lease portfolio , we do not expect a material amount to be recognized on the consolidated balance sheet . in june 2016 , the fasb issued asu 2016-13 , “ measurement of credit losses on financial instruments , ” which revises guidance for the accounting for credit losses on financial instruments within its scope . the new standard introduces an approach , based on expected losses , to estimate credit losses on certain types of financial instruments and modifies the impairment model for available-for-sale debt securities . the new approach to estimating credit losses ( referred to as the current expected credit losses model ) applies to most financial assets measured at amortized cost and certain other instruments , including trade and other receivables , loans , held-to-maturity debt securities , net investments in leases and off-balance-sheet credit exposures . asu 2016-13 is effective for annual periods beginning after december 15 , 2019 , including interim periods within those fiscal years . early adoption is permitted and should be applied as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted . the guidance is effective for us on july 1 , 2020. we do not anticipate a material impact on our financial statements upon adoption . private securities litigation reform act the private securities litigation reform act of 1995 provides a “ safe harbor ” for forward-looking statements . such “ forward-looking ” information is included in this form 10-k and in other materials filed or to be filed by us with the securities and exchange commission ( as well as information included in oral statements or other written statements made or to be made by the company ) . forward-looking statements include all statements based on future expectations . this form 10-k contains forward-looking statements that involve risks and uncertainties , including , but not limited to , ( i ) the expectation of selling our products , including recently approved products , future products and products we distribute , domestically and internationally in the future , the timing and structure of our plans to do so , and the specific countries and products to be sold , either by us or through distributors ; ( ii ) our strategy ; ( iii ) the competitive benefits of our products ; ( iv ) potential strategic acquisitions and partnerships ; ( v ) the expected timing of the manufacturing transfer and commercialization of the wirion system ; ( vi ) our products in development ; ( vii ) seasonality in our business ; ( viii ) reimbursement of our products ; ( ix ) our intention to expand our product portfolio through internal development and external relationships ; ( x ) our plan to balance revenue growth with a pathway to profitability and positive cash flow ; ( xi ) our current and anticipated clinical studies , including the results and timing of such studies ; ( xii ) our expectation that our revenue will increase ; ( xiii ) our expectation of increased selling , general and administrative expenses and the rate of such growth ; ( xiv ) our expectation that gross margin in fiscal 2020 will decrease slightly compared to fiscal 2019 ; ( xv ) our expectation that our current facilities will be adequate for the foreseeable future ; ( xvi ) our plans to continue to expand our sales and marketing efforts as well as our product portfolio and clinical studies ; ( xvii ) our intention to file additional patents and our efforts to protect our intellectual property ; ( xviii ) our expectation that we will incur research and development expenses in fiscal 2020 higher than the amounts incurred for fiscal 2019 ; ( xix ) our belief that our current cash and cash equivalents will be sufficient to fund working capital requirements , capital expenditures and operations for the foreseeable future , as well as to fund certain other anticipated expenses ; ( xx ) our intention to retain any future earnings to support operations and to finance the growth and development of our business ; ( xxi ) our dividend expectations ; ( xxii ) our ability to obtain regulatory approvals to market our products ; ( xxiii ) our plan not to borrow under our loan and security agreement ; and ( xxiv ) the anticipated impact of adoption of recent accounting pronouncements on our financial

net cash used in investing activities was $ 54.4 million for the year ended june 30 , 2019 , primarily due to purchases of available-for-sale debt securities made with our excess cash balance . also contributing to cash flows used in investing activities was a combined $ 3.6 million related to capital expenditures and patent costs and an additional $ 3.1 million equity investment . net cash used in investing activities was $ 5.1 million for the year ended june 30 , 2018. contributing to this was a combined $ 3.1 million of capital expenditures and patent costs and a $ 2.5 million equity investment made in june 2018 , partially offset by the collection of a note receivable . financing activities net cash provided by financing activities was $ 2.1 million for the year ended june 30 , 2019 , primarily from proceeds of $ 3.8 million from the employee stock purchase plan and a small amount of cash proceeds from stock option exercises . these amounts were partially offset by $ 1.8 million of payroll tax payments we made on behalf of our employees , associated with the vesting of employee restricted stock . net cash provided by financing activities was $ 3.8 million for the year ended june 30 , 2018 , primarily from proceeds of $ 3.8 million from the employee stock purchase plan and a small amount of cash proceeds from stock option exercises . our future liquidity and capital requirements will be influenced by numerous factors , including the extent and duration of future operating losses , the level and timing of future sales and expenditures , the results and scope of ongoing research and product development programs , working capital required to support our business operations , the receipt of and time required to obtain regulatory clearances and approvals , our sales and marketing programs , the continuing acceptance of our products in the marketplace , competing technologies , market and regulatory developments , ongoing facility requirements , potential strategic transactions ( including the potential acquisition of , or investments in , businesses , technologies and products ) , international expansion , and the existence , defense and resolution of legal proceedings .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 was $ 54.4 million for the year ended june 30 , 2019 , primarily due to purchases of available-for-sale debt securities made with our excess cash balance . also contributing to cash flows used in investing activities was a combined $ 3.6 million related to capital expenditures and patent costs and an additional $ 3.1 million equity investment . net cash used in investing activities was $ 5.1 million for the year ended june 30 , 2018. contributing to this was a combined $ 3.1 million of capital expenditures and patent costs and a $ 2.5 million equity investment made in june 2018 , partially offset by the collection of a note receivable . financing activities net cash provided by financing activities was $ 2.1 million for the year ended june 30 , 2019 , primarily from proceeds of $ 3.8 million from the employee stock purchase plan and a small amount of cash proceeds from stock option exercises . these amounts were partially offset by $ 1.8 million of payroll tax payments we made on behalf of our employees , associated with the vesting of employee restricted stock . net cash provided by financing activities was $ 3.8 million for the year ended june 30 , 2018 , primarily from proceeds of $ 3.8 million from the employee stock purchase plan and a small amount of cash proceeds from stock option exercises . our future liquidity and capital requirements will be influenced by numerous factors , including the extent and duration of future operating losses , the level and timing of future sales and expenditures , the results and scope of ongoing research and product development programs , working capital required to support our business operations , the receipt of and time required to obtain regulatory clearances and approvals , our sales and marketing programs , the continuing acceptance of our products in the marketplace , competing technologies , market and regulatory developments , ongoing facility requirements , potential strategic transactions ( including the potential acquisition of , or investments in , businesses , technologies and products ) , international expansion , and the existence , defense and resolution of legal proceedings . ``` Suspicious Activity Report : we have observed some degree of seasonality in our business , as there tends to be a lower number of procedures that use our products during the three months ending september 30. interventional procedure volume usually grows throughout the course of the fiscal year , with the quarter ending june 30 usually representing the highest volume of cases and , therefore , the highest amount of revenue generated by us during the course of the fiscal year . cost of goods sold . we assemble the single-use catheter with components purchased from third-party suppliers , as well as with components manufactured in-house . balloons , guide wires , and certain catheters are purchased from third-party suppliers . our cost of goods sold consists primarily of raw materials , direct labor , manufacturing overhead , and purchased finished goods . selling , general and administrative expenses . selling , general and administrative expenses include compensation for executive , sales , marketing , finance , information technology , human resources and administrative personnel , including stock-based compensation and facilities overhead . other significant expenses include bad debt expense , travel , marketing costs , professional fees and professional education . research and development expenses . research and development expenses include costs associated with the design , development , testing , enhancement and regulatory approval of our products . research and development expenses include employee compensation including stock-based compensation , supplies and materials , patent expenses , consulting expenses , travel and facilities overhead . we also incur significant expenses to operate clinical trials , including trial design , third-party fees , clinical site reimbursement , data management and travel expenses . all research and development expenses are expensed as incurred . approved patent applications are capitalized and amortized using the straight-line method over their remaining estimated lives . patent amortization begins at the time of patent application approval and does not exceed 20 years . other ( income ) and expense , net . other ( income ) and expense , net primarily includes interest expense from amounts owed under the lease of our headquarters facility and doj settlement and interest income from money market funds and other investments in marketable securities . net operating loss carryforwards . we have established valuation allowances to fully offset our deferred tax assets due to the uncertainty about our ability to generate the future taxable income necessary to realize these deferred assets , particularly in light of our historical losses . the future use of net operating loss carryforwards is dependent on us attaining profitable operations and will be limited in any one year under internal revenue code section 382 due to significant ownership changes ( as defined in section 382 ) resulting from our equity financings . at june 30 , 2019 , we had net operating loss carryforwards for federal and state income tax reporting purposes of approximately $ 269.4 million , which will expire at various dates through fiscal 2037. critical accounting policies and significant judgments and estimates our management 's discussion and analysis of our financial condition and results of operations is based on our consolidated financial statements , which have been prepared in accordance with accounting principles generally accepted in the united states . the preparation of our consolidated financial statements requires us to make estimates , assumptions and judgments that affect amounts reported in those statements . our estimates , assumptions and judgments , including those related to revenue recognition , deferred revenue and stock-based compensation , are updated as appropriate at least quarterly . we use authoritative pronouncements , our technical accounting knowledge , cumulative business experience , valuation specialists , judgment and other factors in the selection and application of our accounting policies . while we believe that the estimates , assumptions and judgments that we use in preparing our consolidated financial statements are appropriate , these estimates , assumptions and judgments are subject to factors and uncertainties regarding their outcome . therefore , actual results may materially differ from these estimates . some of our significant accounting policies require us to make subjective or complex judgments or estimates . an accounting estimate is considered to be critical if it meets both of the following criteria : ( 1 ) the estimate requires assumptions about matters that are highly uncertain at the time the accounting estimate is made , and ( 2 ) different estimates that reasonably could have been used , or changes in the estimate that are reasonably likely to occur from period to period , would have a material impact on the presentation of our financial condition , results of operations , or cash flows . 31 revenue recognition . we sell our peripheral and coronary products to customers through a direct sales force in the united states and through distributors internationally . we have no material concentration of credit risk or significant payment terms extended to customers and , therefore , we do not adjust the promised amount of consideration for the effects of a significant financing component . sales , use , value-added , and other excise taxes are not recognized in revenue . we have elected to present revenue net of sales taxes and other similar taxes . performance obligations the majority of our revenues are from customer arrangements containing a single performance obligation to transfer peripheral and coronary products , and thus revenue is recognized at a point in time when control is transferred . this generally occurs upon shipment or upon delivery to the customer site , based on the contract terms . shipping and handling activities are considered to be fulfillment activities and are not considered to be a separate performance obligation . story_separator_special_tag off-balance sheet arrangements since inception , we have not engaged in any off-balance sheet arrangements as defined in item 303 ( a ) ( 4 ) of regulation s-k. recent accounting pronouncements in february 2016 , the fasb issued accounting standards update ( “ asu ” ) 2016-02 , “ leases . ” the guidance requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet . asu 2016-02 is effective for annual periods beginning after december 15 , 2018 , including interim periods within those annual periods , and should be applied using a modified retrospective approach . the guidance was effective for us on july 1 , 2019. we have elected the prospective transition method with the effects of adoption recognized as a cumulative effect adjustment to the opening balance of retained earnings in our fiscal 2020 financial statements , with no restatement of comparative periods . we have also elected the package of three practical expedients permitted under the transition guidance within the new standard , which among other things , allows us to carry forward the historical lease classification . we have assessed the impact of adopting this guidance on our consolidated financial statements and related disclosures and do not expect a material impact to our results of operations and cash flows . we will record our operating leases on our consolidated balance sheet as right of use assets and lease liabilities , but due to the makeup of our current operating lease portfolio , we do not expect a material amount to be recognized on the consolidated balance sheet . in june 2016 , the fasb issued asu 2016-13 , “ measurement of credit losses on financial instruments , ” which revises guidance for the accounting for credit losses on financial instruments within its scope . the new standard introduces an approach , based on expected losses , to estimate credit losses on certain types of financial instruments and modifies the impairment model for available-for-sale debt securities . the new approach to estimating credit losses ( referred to as the current expected credit losses model ) applies to most financial assets measured at amortized cost and certain other instruments , including trade and other receivables , loans , held-to-maturity debt securities , net investments in leases and off-balance-sheet credit exposures . asu 2016-13 is effective for annual periods beginning after december 15 , 2019 , including interim periods within those fiscal years . early adoption is permitted and should be applied as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted . the guidance is effective for us on july 1 , 2020. we do not anticipate a material impact on our financial statements upon adoption . private securities litigation reform act the private securities litigation reform act of 1995 provides a “ safe harbor ” for forward-looking statements . such “ forward-looking ” information is included in this form 10-k and in other materials filed or to be filed by us with the securities and exchange commission ( as well as information included in oral statements or other written statements made or to be made by the company ) . forward-looking statements include all statements based on future expectations . this form 10-k contains forward-looking statements that involve risks and uncertainties , including , but not limited to , ( i ) the expectation of selling our products , including recently approved products , future products and products we distribute , domestically and internationally in the future , the timing and structure of our plans to do so , and the specific countries and products to be sold , either by us or through distributors ; ( ii ) our strategy ; ( iii ) the competitive benefits of our products ; ( iv ) potential strategic acquisitions and partnerships ; ( v ) the expected timing of the manufacturing transfer and commercialization of the wirion system ; ( vi ) our products in development ; ( vii ) seasonality in our business ; ( viii ) reimbursement of our products ; ( ix ) our intention to expand our product portfolio through internal development and external relationships ; ( x ) our plan to balance revenue growth with a pathway to profitability and positive cash flow ; ( xi ) our current and anticipated clinical studies , including the results and timing of such studies ; ( xii ) our expectation that our revenue will increase ; ( xiii ) our expectation of increased selling , general and administrative expenses and the rate of such growth ; ( xiv ) our expectation that gross margin in fiscal 2020 will decrease slightly compared to fiscal 2019 ; ( xv ) our expectation that our current facilities will be adequate for the foreseeable future ; ( xvi ) our plans to continue to expand our sales and marketing efforts as well as our product portfolio and clinical studies ; ( xvii ) our intention to file additional patents and our efforts to protect our intellectual property ; ( xviii ) our expectation that we will incur research and development expenses in fiscal 2020 higher than the amounts incurred for fiscal 2019 ; ( xix ) our belief that our current cash and cash equivalents will be sufficient to fund working capital requirements , capital expenditures and operations for the foreseeable future , as well as to fund certain other anticipated expenses ; ( xx ) our intention to retain any future earnings to support operations and to finance the growth and development of our business ; ( xxi ) our dividend expectations ; ( xxii ) our ability to obtain regulatory approvals to market our products ; ( xxiii ) our plan not to borrow under our loan and security agreement ; and ( xxiv ) the anticipated impact of adoption of recent accounting pronouncements on our financial

the segment is a diversified supplier of live and virtual military training systems , and communication systems and products to the u.s. department of defense , other u.s. government agencies and allied nations . we design instrumented range systems for fighter aircraft , armored vehicles and infantry force-on-force live training weapons effects simulations , laser-based tactical and communication systems , and precision gunnery solutions . our communications products are aimed at intelligence , surveillance , and search and rescue markets . in 2010 , through two acquisitions , we added new product lines including multi-band communication tracking devices , and cross domain hardware solutions to address multi-level security requirements . mission support services ( mss ) is a leading provider of highly specialized support services to the u.s. government and allied nations . services provided include live , virtual and constructive training , real-world mission rehearsal exercises , professional military education , intelligence support , information technology , information assurance and related cyber support , development of military doctrine , consequence management , infrastructure protection and force protection , as well as support to field operations , force deployment and redeployment and logistics . sales increased 7 % in fiscal 2012 over 2011 , primarily due to growth of 20 % in cts . growth in 2012 sales from mss was nearly offset by a decrease in cds sales . sales increased to $ 1.381 billion in 2012 , compared to $ 1.296 billion in 2011 , with all of the growth coming from existing businesses . the average exchange rates between the prevailing currencies in our foreign operations and the u.s. dollar , resulted in a decrease in sales of $ 1.5 million in 2012 over 2011. sales increased 8 % in 2011 over 2010 , due to growth in all three business segments . sales grew to $ 1.296 billion in 2011 , compared to $ 1.198 billion in 2010. approximately half of the growth in 2011 was organic and half was the result of our acquisition of abraxas in december 2010 , which added $ 50.0 million to our 2011 revenue . sales in 2011would have increased by 4 % without the addition of abraxas and sales in our mss segment would have decreased 4 % absent this acquisition . the average exchange rates between the prevailing currencies in our foreign operations and the u.s. dollar resulted in an increase in sales of $ 21.0 million in 2011 over 2010 . 27 growth in sales of 17 % in 2010 over 2009 also came from all three business segments . sales increased to $ 1.198 billion in 2010 , compared to $ 1.026 billion in 2009. nearly 80 % of the growth in 2010 was organic , while the remainder came from the consolidation of transys , a variable interest entity ( vie ) , and from two small acquisitions we made during 2010. the vie added $ 29.9 million to 2010 sales ; however these sales had no net margin and therefore had no effect on operating income . sales growth in 2010 without consolidation of the vie would have been approximately 14 % . the average exchange rates between the prevailing currencies in our foreign operations and the u.s. dollar , resulted in an increase in sales of $ 14.6 million in 2010 over 2009. see the segment discussions following for further information about segment sales . operating income increased 13 % to $ 128.0 million in 2012 compared to $ 113.5 million in 2011. cts and cds each contributed to the growth in operating income in 2012 , while mss operating income was down in 2012 from 2011. growth in cts sales was the primary reason for the increase in operating income , while cds operating income grew primarily due to a decrease in our investment in cross domain and global asset tracking products in 2012 compared to 2011. the current competitive environment in the government services industry is driving mss profit margins lower than in recent years , resulting in lower operating income . operating results for mss include an operating loss from abraxas of $ 1.3 million in 2012 , including amortization of intangible assets of $ 9.3 million , compared to a loss of $ 3.5 million in 2011 , which included amortization of intangible assets of $ 8.2 million and acquisition costs of $ 0.7 million . the average exchange rates between the prevailing currencies in our foreign operations and the u.s. dollar , resulted in a decrease in operating income of $ 0.6 million for 2012. operating income increased 6 % to $ 113.5 million in 2011 compared to $ 106.6 million in 2010. improved margins and higher sales in our transportation systems segment contributed significantly to the increase in our operating income . we incurred higher costs in 2010 than in 2011 on our contract in london for the transition of our contract from the vie to cubic , resulting in higher margins on this contract in 2011. operating income growth in 2011 was limited somewhat by an increase in the investment by cds in two businesses acquired in 2010 that are developing cross domain and global asset tracking products . the operating losses for these two businesses totaled $ 11.3 million in 2011 compared to $ 3.0 million in 2010. mss operating income in 2011 was lower than 2010 primarily because of an operating loss of $ 3.5 million incurred by the newly acquired abraxas business , as mentioned above . a $ 4.2 million gain was recorded by cds in 2010 related to the recovery of a receivable that had been reserved for in previous years , which positively impacted our 2010 operating income . the average exchange rates between the prevailing currencies in our foreign operations and the u.s. dollar , resulted in an increase in operating income of $ 3.0 million for 2011. our operating income increased 11 % in 2010 to $ 106.6 story_separator_special_tag the average exchange rates between the prevailing currencies in our foreign operations and the u.s. dollar , resulted in an increase in training system sales of $ 8.0 million for 2010. operating income for training systems was $ 39.0 million in 2012 and 2011. in 2011 and the first half of 2012 , we recorded revenues equal to costs on a ground combat training system in europe because we were working under a contract without a firm contract price or scope of work . in 2012 , we reached agreement with the customer on price and scope of work , resulting in additional profit margin this year because of this favorable change in estimate . an increase in operating income also came from increased sales of small arms training systems . offsetting these increases were lower operating profits on lower sales of air combat training systems , a ground combat training system in the far east and miles equipment . in addition , we incurred higher than previously expected costs in developing an instumented training system for the u.s. marine corps in 2012. the average exchange rates between the prevailing currencies in our foreign operations and the u.s. dollar , resulted in an increase in training systems operating income of $ 0.3 million for 2012. operating income for training systems increased 29 % to $ 39.0 million in 2011 compared to $ 30.2 million in 2010. the growth in operating income was primarily attributable to increased operating income on higher sales of air combat training systems to the u.s. military and to a customer in the far east , and improved margins on increased sales of miles equipment . the 2010 operating income for training systems was positively impacted by a bad debt recovery from a company through which we sold training systems products to the u.s. government . in 2009 the company had failed to pass on to us cash they collected from the government on our behalf . in 2010 , we were able to collect the entire amount plus attorney 's fees , costs and interest , for a total recovery of $ 4.2 million . we invested $ 3.4 million in 2011 and $ 3.2 million in 2010 in the development of new ground combat training technology for tactical vehicles , which limited our operating income in both years . the average exchange rates between the prevailing currencies in our foreign operations and the u.s. dollar , resulted in an increase in training systems operating income of $ 1.5 million for 2011. training systems operating income increased 62 % in 2010 to $ 30.2 million , from $ 18.6 million in 2009. higher sales and improved profit margins from the ground combat training system in the far east mentioned above added to operating income in 2010 , as well as higher sales and improved profit margins from miles equipment . in addition , in 2009 we had established a $ 3.1 million allowance for doubtful accounts receivable related to a company through which we sold training systems products to the u.s. government , because they failed to pass on to us cash they collected from the government on our behalf . as mentioned , in 2010 we were able to collect the entire amount plus attorney 's fees , costs and interest , for a total recovery in 2010 of $ 4.2 million . these improvements were partially offset by lower operating income from lower sales of air combat training systems to customers in the far east where we had realized higher profit margins in 2009. in addition , in the fourth quarter of 2010 , we invested $ 3.2 million in the development of new ground combat training technology for tactical vehicles , which limited growth in our operating income in 2010. the average exchange rates between the prevailing currencies in our foreign operations and the u.s. dollar , resulted in an increase in training systems operating income of $ 1.9 million for 2010 . 32 communications communications sales increased slightly to $ 41.6 million in 2012 from $ 41.4 million in 2011. sales of personnel locator systems and power amplifiers decreased in 2012 , while sales of data links increased . communications sales decreased 33 % to $ 41.4 million in 2011 from $ 61.8 million in 2010. sales of data links and power amplifiers decreased in 2011 , while sales of personnel locater systems were relatively consistent between the years . communications sales grew 39 % in 2010 to $ 61.8 million from $ 44.4 million in 2009. sales were higher in 2010 from all three major product lines , including personnel locator systems , data links and power amplifiers . we began work on a new contract in 2010 called video scout and produced spare parts for the joint-stars system we delivered years ago , which contributed to the increase in data links sales . operating income from communications decreased 66 % to $ 2.2 million in 2012 from $ 6.4 million in 2011. higher data link sales added to operating income , however , this was more than offset by higher than expected costs of developing new data link technology in 2012. lower sales of personnel locator systems and power amplifiers also contributed to the decrease . operating income from communications increased 39 % to $ 6.4 million in 2011 from $ 4.6 million in 2010. in 2010 we realized operating losses of $ 6.0 million from a new mini-common data link ( mini-cdl ) product and video scout product as a result of development costs incurred in 2010 , compared to profitable sales of these products in 2011. communications operating income increased to $ 4.6 million in 2010 , compared to $ 2.4 million in 2009 , a 92 % increase . in 2010 , higher operating income on higher sales from all three product lines was partially offset by development costs for new products , including video scout and

liquidity and capital resources operating activities used cash of $ 54.7 million in 2012 , compared to providing cash of $ 129.1 million in 2011 , $ 115.0 million in 2010 and $ 176.8 million in 2009. in 2012 , cash generated by earnings was offset by increases in accounts receivable of $ 118.2 million , long-term capitalized construction costs of $ 26.9 million , and inventories of $ 13.6 million , and a net decrease in customer advances of $ 38.0 million , which contributed to the overall use of cash for the year . the growth in accounts receivable and reduction of customer advances related to several large contracts we worked on in 2012 , including transportation systems contracts in canada and australia and defense system contracts in the u.s. , far east and middle east . negative cash flows on these contracts at this stage of their completion is in accordance with contract terms . in 2011 , cash generated by earnings , decreases in accounts receivable of $ 3.6 million and inventories of $ 2.4 million , and net customer advances of $ 37.1 million contributed to the positive results . in 2010 , cash generated by earnings , decreases in accounts receivable of $ 25.2 million and inventories of $ 17.3 million , and net customer advances of $ 18.5 million contributed to the positive cash flows . in 2009 , cash generated by earnings , decreases in accounts receivable of $ 41.1 million and net customer advances of $ 34.6 million contributed to the positive results . 34 in 2012 , mss contributed positive operating cash flows , while cds and cts both generated negative operating cash flows . in 2009 through 2011 , all three segments contributed to positive operating cash flows . in 2011 and 2010 , cts provided the greatest portion of the positive cash flows , while in 2009 cds provided more than half the positive cash flows .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources operating activities used cash of $ 54.7 million in 2012 , compared to providing cash of $ 129.1 million in 2011 , $ 115.0 million in 2010 and $ 176.8 million in 2009. in 2012 , cash generated by earnings was offset by increases in accounts receivable of $ 118.2 million , long-term capitalized construction costs of $ 26.9 million , and inventories of $ 13.6 million , and a net decrease in customer advances of $ 38.0 million , which contributed to the overall use of cash for the year . the growth in accounts receivable and reduction of customer advances related to several large contracts we worked on in 2012 , including transportation systems contracts in canada and australia and defense system contracts in the u.s. , far east and middle east . negative cash flows on these contracts at this stage of their completion is in accordance with contract terms . in 2011 , cash generated by earnings , decreases in accounts receivable of $ 3.6 million and inventories of $ 2.4 million , and net customer advances of $ 37.1 million contributed to the positive results . in 2010 , cash generated by earnings , decreases in accounts receivable of $ 25.2 million and inventories of $ 17.3 million , and net customer advances of $ 18.5 million contributed to the positive cash flows . in 2009 , cash generated by earnings , decreases in accounts receivable of $ 41.1 million and net customer advances of $ 34.6 million contributed to the positive results . 34 in 2012 , mss contributed positive operating cash flows , while cds and cts both generated negative operating cash flows . in 2009 through 2011 , all three segments contributed to positive operating cash flows . in 2011 and 2010 , cts provided the greatest portion of the positive cash flows , while in 2009 cds provided more than half the positive cash flows . ``` Suspicious Activity Report : the segment is a diversified supplier of live and virtual military training systems , and communication systems and products to the u.s. department of defense , other u.s. government agencies and allied nations . we design instrumented range systems for fighter aircraft , armored vehicles and infantry force-on-force live training weapons effects simulations , laser-based tactical and communication systems , and precision gunnery solutions . our communications products are aimed at intelligence , surveillance , and search and rescue markets . in 2010 , through two acquisitions , we added new product lines including multi-band communication tracking devices , and cross domain hardware solutions to address multi-level security requirements . mission support services ( mss ) is a leading provider of highly specialized support services to the u.s. government and allied nations . services provided include live , virtual and constructive training , real-world mission rehearsal exercises , professional military education , intelligence support , information technology , information assurance and related cyber support , development of military doctrine , consequence management , infrastructure protection and force protection , as well as support to field operations , force deployment and redeployment and logistics . sales increased 7 % in fiscal 2012 over 2011 , primarily due to growth of 20 % in cts . growth in 2012 sales from mss was nearly offset by a decrease in cds sales . sales increased to $ 1.381 billion in 2012 , compared to $ 1.296 billion in 2011 , with all of the growth coming from existing businesses . the average exchange rates between the prevailing currencies in our foreign operations and the u.s. dollar , resulted in a decrease in sales of $ 1.5 million in 2012 over 2011. sales increased 8 % in 2011 over 2010 , due to growth in all three business segments . sales grew to $ 1.296 billion in 2011 , compared to $ 1.198 billion in 2010. approximately half of the growth in 2011 was organic and half was the result of our acquisition of abraxas in december 2010 , which added $ 50.0 million to our 2011 revenue . sales in 2011would have increased by 4 % without the addition of abraxas and sales in our mss segment would have decreased 4 % absent this acquisition . the average exchange rates between the prevailing currencies in our foreign operations and the u.s. dollar resulted in an increase in sales of $ 21.0 million in 2011 over 2010 . 27 growth in sales of 17 % in 2010 over 2009 also came from all three business segments . sales increased to $ 1.198 billion in 2010 , compared to $ 1.026 billion in 2009. nearly 80 % of the growth in 2010 was organic , while the remainder came from the consolidation of transys , a variable interest entity ( vie ) , and from two small acquisitions we made during 2010. the vie added $ 29.9 million to 2010 sales ; however these sales had no net margin and therefore had no effect on operating income . sales growth in 2010 without consolidation of the vie would have been approximately 14 % . the average exchange rates between the prevailing currencies in our foreign operations and the u.s. dollar , resulted in an increase in sales of $ 14.6 million in 2010 over 2009. see the segment discussions following for further information about segment sales . operating income increased 13 % to $ 128.0 million in 2012 compared to $ 113.5 million in 2011. cts and cds each contributed to the growth in operating income in 2012 , while mss operating income was down in 2012 from 2011. growth in cts sales was the primary reason for the increase in operating income , while cds operating income grew primarily due to a decrease in our investment in cross domain and global asset tracking products in 2012 compared to 2011. the current competitive environment in the government services industry is driving mss profit margins lower than in recent years , resulting in lower operating income . operating results for mss include an operating loss from abraxas of $ 1.3 million in 2012 , including amortization of intangible assets of $ 9.3 million , compared to a loss of $ 3.5 million in 2011 , which included amortization of intangible assets of $ 8.2 million and acquisition costs of $ 0.7 million . the average exchange rates between the prevailing currencies in our foreign operations and the u.s. dollar , resulted in a decrease in operating income of $ 0.6 million for 2012. operating income increased 6 % to $ 113.5 million in 2011 compared to $ 106.6 million in 2010. improved margins and higher sales in our transportation systems segment contributed significantly to the increase in our operating income . we incurred higher costs in 2010 than in 2011 on our contract in london for the transition of our contract from the vie to cubic , resulting in higher margins on this contract in 2011. operating income growth in 2011 was limited somewhat by an increase in the investment by cds in two businesses acquired in 2010 that are developing cross domain and global asset tracking products . the operating losses for these two businesses totaled $ 11.3 million in 2011 compared to $ 3.0 million in 2010. mss operating income in 2011 was lower than 2010 primarily because of an operating loss of $ 3.5 million incurred by the newly acquired abraxas business , as mentioned above . a $ 4.2 million gain was recorded by cds in 2010 related to the recovery of a receivable that had been reserved for in previous years , which positively impacted our 2010 operating income . the average exchange rates between the prevailing currencies in our foreign operations and the u.s. dollar , resulted in an increase in operating income of $ 3.0 million for 2011. our operating income increased 11 % in 2010 to $ 106.6 story_separator_special_tag the average exchange rates between the prevailing currencies in our foreign operations and the u.s. dollar , resulted in an increase in training system sales of $ 8.0 million for 2010. operating income for training systems was $ 39.0 million in 2012 and 2011. in 2011 and the first half of 2012 , we recorded revenues equal to costs on a ground combat training system in europe because we were working under a contract without a firm contract price or scope of work . in 2012 , we reached agreement with the customer on price and scope of work , resulting in additional profit margin this year because of this favorable change in estimate . an increase in operating income also came from increased sales of small arms training systems . offsetting these increases were lower operating profits on lower sales of air combat training systems , a ground combat training system in the far east and miles equipment . in addition , we incurred higher than previously expected costs in developing an instumented training system for the u.s. marine corps in 2012. the average exchange rates between the prevailing currencies in our foreign operations and the u.s. dollar , resulted in an increase in training systems operating income of $ 0.3 million for 2012. operating income for training systems increased 29 % to $ 39.0 million in 2011 compared to $ 30.2 million in 2010. the growth in operating income was primarily attributable to increased operating income on higher sales of air combat training systems to the u.s. military and to a customer in the far east , and improved margins on increased sales of miles equipment . the 2010 operating income for training systems was positively impacted by a bad debt recovery from a company through which we sold training systems products to the u.s. government . in 2009 the company had failed to pass on to us cash they collected from the government on our behalf . in 2010 , we were able to collect the entire amount plus attorney 's fees , costs and interest , for a total recovery of $ 4.2 million . we invested $ 3.4 million in 2011 and $ 3.2 million in 2010 in the development of new ground combat training technology for tactical vehicles , which limited our operating income in both years . the average exchange rates between the prevailing currencies in our foreign operations and the u.s. dollar , resulted in an increase in training systems operating income of $ 1.5 million for 2011. training systems operating income increased 62 % in 2010 to $ 30.2 million , from $ 18.6 million in 2009. higher sales and improved profit margins from the ground combat training system in the far east mentioned above added to operating income in 2010 , as well as higher sales and improved profit margins from miles equipment . in addition , in 2009 we had established a $ 3.1 million allowance for doubtful accounts receivable related to a company through which we sold training systems products to the u.s. government , because they failed to pass on to us cash they collected from the government on our behalf . as mentioned , in 2010 we were able to collect the entire amount plus attorney 's fees , costs and interest , for a total recovery in 2010 of $ 4.2 million . these improvements were partially offset by lower operating income from lower sales of air combat training systems to customers in the far east where we had realized higher profit margins in 2009. in addition , in the fourth quarter of 2010 , we invested $ 3.2 million in the development of new ground combat training technology for tactical vehicles , which limited growth in our operating income in 2010. the average exchange rates between the prevailing currencies in our foreign operations and the u.s. dollar , resulted in an increase in training systems operating income of $ 1.9 million for 2010 . 32 communications communications sales increased slightly to $ 41.6 million in 2012 from $ 41.4 million in 2011. sales of personnel locator systems and power amplifiers decreased in 2012 , while sales of data links increased . communications sales decreased 33 % to $ 41.4 million in 2011 from $ 61.8 million in 2010. sales of data links and power amplifiers decreased in 2011 , while sales of personnel locater systems were relatively consistent between the years . communications sales grew 39 % in 2010 to $ 61.8 million from $ 44.4 million in 2009. sales were higher in 2010 from all three major product lines , including personnel locator systems , data links and power amplifiers . we began work on a new contract in 2010 called video scout and produced spare parts for the joint-stars system we delivered years ago , which contributed to the increase in data links sales . operating income from communications decreased 66 % to $ 2.2 million in 2012 from $ 6.4 million in 2011. higher data link sales added to operating income , however , this was more than offset by higher than expected costs of developing new data link technology in 2012. lower sales of personnel locator systems and power amplifiers also contributed to the decrease . operating income from communications increased 39 % to $ 6.4 million in 2011 from $ 4.6 million in 2010. in 2010 we realized operating losses of $ 6.0 million from a new mini-common data link ( mini-cdl ) product and video scout product as a result of development costs incurred in 2010 , compared to profitable sales of these products in 2011. communications operating income increased to $ 4.6 million in 2010 , compared to $ 2.4 million in 2009 , a 92 % increase . in 2010 , higher operating income on higher sales from all three product lines was partially offset by development costs for new products , including video scout and

we incurred $ 3.2 million of similar costs in fiscal 2010. our business we are one of the world 's leading manufacturers of firearms . we manufacture a wide array of handguns , modern sporting rifles , hunting rifles , black powder firearms , handcuffs , and firearm-related products and accessories for sale to a wide variety of customers , including gun enthusiasts , collectors , hunters , sportsmen , 38 competitive shooters , individuals desiring home and personal protection , law enforcement and security agencies and officers , and military agencies in the united states and throughout the world . we are one of the largest manufacturers of handguns and handcuffs in the united states , the largest u.s. exporter of handguns , and a participant in the modern sporting and hunting rifle markets . we are also a leading turnkey provider of perimeter security solutions to protect and control access to key military , government , and corporate facilities . we manufacture our firearm products at our facilities in springfield , massachusetts ; houlton , maine ; and rochester , new hampshire . we manufacture and assemble our perimeter security products at our facilities in franklin , tennessee . in addition , we pursue opportunities to license our name and trademarks to third parties for use in association with their products and services . we plan to increase our product offerings to leverage the nearly 160 year old “smith & wesson” brand and capitalize on the goodwill developed through our historic american tradition by expanding consumer awareness of products we produce or license in the safety , security , protection , and sport markets . key performance indicators we evaluate the performance of our business based upon operating profit , which includes net sales , cost of products and services sold , selling and administrative expenses , and certain components of other income and expense . we also use adjusted ebitdas ( earnings before interest , taxes , depreciation , amortization , and stock-based compensation expense , excluding large non-recurring items ) , which is a non-gaap financial metric , to evaluate our performance . we evaluate our various firearm products by such measurements as cost per unit produced , units produced per day , and incoming orders per day . we evaluate our security solutions products by revenue invoiced , gross margin per project , and incoming orders per month . key industry data handguns have been subject to legislative actions in the past , and the market has reacted to these actions . there was a substantial increase in sales in the early 1990s during the period leading up to and shortly after the enactment of the brady bill . in the period from 1992 through 1994 , the u.s. handgun market increased by over 50 % , as consumers purchased handguns because of the fear of prohibition of handgun ownership . the market levels then returned to pre-1992 levels and grew at normal industry growth rates until late in calendar 2008 , when the market increased in what appears to be fears surrounding crime and terrorism , an economic downturn , and a change in the white house administration . like the increase in 1992 , this increase in the market was temporary in nature and the market returned to more normal levels in fiscal 2010. within the u.s. handgun market , we estimate that approximately 81 % of the market is pistols and 19 % is revolvers . we also estimate that we have an 18 % share of the u.s. consumer market for handguns . this compares with approximately 10 % in the period just before we acquired smith & wesson corp. in 2001 and approximately 16 % during the 1990s . 39 results of operations net product and services sales the following table sets forth certain information regarding net product and services sales for the fiscal years ended april 30 , 2011 , 2010 , and 2009 ( dollars in thousands ) : replace_table_token_2_th fiscal 2011 net product and services sales compared with fiscal 2010 net product and services sales for fiscal 2011 decreased as ordering returned to more normal levels compared with the strong consumer demand that occurred after the november 2008 presidential election . revolver sales increased 3.0 % over the prior fiscal year because of the significant demand for our bodyguard 38 revolver , offset by reduced volume in our aluminum frame products to the consumer market and significantly reduced international shipments , which resulted from substantial changes we made in our foreign sales personnel and foreign representatives , modifications we made in our foreign sales processes , and our determination not to sell our products in certain foreign countries . price repositioning and the costs of a rebate program on small frame revolvers negatively impacted sales dollars while helping to spur unit sales . pistol sales were 6.8 % higher than in the prior fiscal year driven by the introduction of our bodyguard 380 concealed carry pistol . sales of metal pistols were lower compared with the prior fiscal year primarily due to reduced international shipments , while sales of sigma were down as demand shifted to concealed carry in the domestic marketplace . walther product sales declined 12.7 % from the prior fiscal year because of increased competition in small frame and concealed carry products . sales of modern sporting rifles , the product line most impacted by the reduction in consumer demand , declined by 37.5 % from the prior fiscal year . however , sales within this product line were favorably impacted in the fourth quarter of fiscal 2011 by the introduction of our new sport model . premium product sales increased 11.2 % over the prior fiscal year , primarily because of the continued success of our pro series handguns and the introduction of our matched set of engraved bodyguard revolver and pistol . story_separator_special_tag fiscal 2010 income/ ( loss ) from operations compared with fiscal 2009 excluding the impact of the impairment charge recorded in fiscal 2009 discussed above , income from operations for our firearm division of $ 40,074,000 was $ 15,198,000 , or 61.1 % , higher than operating income of $ 24,876,000 for fiscal 2009 , predominantly due to increased products and services sold and improved margins , which more than offset the impact of fcpa costs on operating expenses . other income/ ( expense ) the following table sets forth certain information regarding other income/ ( expense ) for the fiscal years ended april 30 , 2011 , 2010 , and 2009 ( dollars in thousands ) : replace_table_token_7_th for fiscal 2011 and 2010 , other income/ ( expense ) included $ 3,060,000 and $ 9,587,000 , respectively , of income associated with the revaluation of 4,080,000 shares of our common stock related to our july 2009 acquisition of swss ( see note 2 to our consolidated financial statements contained elsewhere in this report ) . excluding this income , the remaining other income/ ( expense ) represented , among other things , unrealized gains and losses on foreign exchange contracts . 45 interest expense the following table sets forth certain information regarding interest expense for the fiscal years ended april 30 , 2011 , 2010 , and 2009 ( dollars in thousands ) : replace_table_token_8_th interest expense increased for fiscal 2011 compared with fiscal 2010 due to the early retirement of $ 50.0 million of our senior convertible notes , which resulted in a $ 476,000 write-off of debt refinancing costs . this debt was exchanged for $ 50.0 million of our 9.5 % senior notes , resulting in higher interest expense , primarily in the fourth quarter of fiscal 2011. the exchange of the senior convertible notes for the higher coupon 9.5 % senior notes was made because of the impending december 2011 date on which holders of the senior convertible notes could require us to repurchase their senior convertible notes as well as to remove the dilutive effects of the senior convertible notes . interest expense decreased for fiscal 2010 as a result of the repayment of $ 4,814,000 of long-term debt in december 2009 and overall increased cash balances throughout the fiscal year . income tax expense the following table sets forth certain information regarding income tax expense for the fiscal years ended april 30 , 2011 , 2010 , 2009 ( dollars in thousands ) : replace_table_token_9_th our income tax expense for fiscal 2011 included the effect of changes in temporary differences between book value and tax bases of assets and liabilities and net operating loss carryforwards . these amounts are reflected in the balance of our net deferred tax assets , which totaled $ 8,764,000 , after valuation allowance , as of april 30 , 2011. we had federal net operating loss carryforwards amounting to $ 1,601,000 as of april 30 , 2011. we obtained $ 8,215,000 in additional loss carryforwards through our acquisition of swss on july 20 , 2009 , the majority of which was utilized in fiscal 2010. the net operating loss carryforwards at april 30 , 2011 expire through fiscal year 2021. internal revenue code section 382 limits our utilization of these losses to approximately $ 403,000 in fiscal 2012 and $ 108,000 per subsequent year . it is possible that future substantial changes in our ownership could occur that could result in a reduction in some or all of our loss carryforwards pursuant to internal revenue code section 382. if such an ownership change were to occur , there would be an annual limitation on the remaining tax loss carryforwards that could be utilized . adjustments to reserves and book versus tax difference on amortization of intangible assets increased the overall net deferred tax asset to $ 8,764,000 as of april 30 , 2011. there was $ 10,938,000 of state net operating loss carryforwards as of april 30 , 2011. there was $ 4,591,000 of state net operating loss carryforwards as of april 30 , 2010. there was $ 1,739,000 and $ 1,218,000 of state tax credit carryforwards as of april 30 , 2011 and 2010 , respectively . as of april 30 , 2011 , valuation allowances of $ 26,000 , $ 445,000 , and $ 705,000 were provided on our deferred tax assets for a federal capital loss carryforward , state net operating losses , and state tax credits , respectively , that we do not anticipate using prior to their expiration . as of april 30 , 2010 , valuation losses of $ 26,000 and $ 650,000 were provided on our deferred tax assets for a federal capital loss carryforward and state tax credits , respectively . the increase in the valuation allowance on our deferred tax assets for state net operating losses and credits related mainly to our operations in franklin , tennessee . no other valuation allowance was provided on our deferred federal income tax assets as of april 30 , 2011 or 2010 , as we believe that it is more likely than not that all such assets will be realized . in order to utilize the unreserved portion of our net operating loss carryforwards , the minimum level of annual taxable income that we would have achieve must equal or exceed the amount of federal net operating carryforwards for fiscal years 2012 through 2021. we believe that achievement of that level of taxable income is more likely than 46 not based on historical performance and future projections , including new product offerings , pricing decisions , marketing efforts , and expected spending levels . net income/ ( loss ) the following table sets forth certain information regarding net income/ ( loss ) and the related per share data for the fiscal years ended april 30 , 2011 , 2010 , and 2009 ( dollars in thousands , except per share data )

liquidity and capital resources our principal cash requirements are to finance the growth of our operations , including acquisitions , and to service our existing debt . capital expenditures for new products , capacity expansion , and process improvements represent important cash needs . 47 the following table sets forth certain cash flow information for the fiscal years ended april 30 , 2011 , 2010 , and 2009 ( dollars in thousands ) : replace_table_token_11_th operating activities represent the principal source of our cash flow . cash flow from operating activities increased significantly in fiscal 2011 over fiscal 2010 levels in spite of the reduction in profitability due to a $ 7,327,000 reduction in accounts receivable , a $ 10,861,000 increase in accounts payable , and a $ 8,892,000 increase in accrued taxes other than income . accounts receivable declined compared with the prior fiscal year , primarily as a result of timing of fourth quarter sales . accounts payable were high at the end of fiscal 2011 , primarily due to significant capital spending incurred late in the fourth quarter to meet the requirements of the massachusetts economic development incentive program that granted us up to $ 4,400,000 in refundable tax credits for capital spending on qualified property that exceeded $ 11.0 million . accrued taxes other than income increased as a result of a change in federal excise tax deposit requirements from bi-weekly to quarterly , allowing our first calendar quarterly payment to be made on may 2 , 2011 , after the end of our fiscal year . in addition , in fiscal 2010 , income tax payments were significantly higher as a result of our higher taxable income .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 principal cash requirements are to finance the growth of our operations , including acquisitions , and to service our existing debt . capital expenditures for new products , capacity expansion , and process improvements represent important cash needs . 47 the following table sets forth certain cash flow information for the fiscal years ended april 30 , 2011 , 2010 , and 2009 ( dollars in thousands ) : replace_table_token_11_th operating activities represent the principal source of our cash flow . cash flow from operating activities increased significantly in fiscal 2011 over fiscal 2010 levels in spite of the reduction in profitability due to a $ 7,327,000 reduction in accounts receivable , a $ 10,861,000 increase in accounts payable , and a $ 8,892,000 increase in accrued taxes other than income . accounts receivable declined compared with the prior fiscal year , primarily as a result of timing of fourth quarter sales . accounts payable were high at the end of fiscal 2011 , primarily due to significant capital spending incurred late in the fourth quarter to meet the requirements of the massachusetts economic development incentive program that granted us up to $ 4,400,000 in refundable tax credits for capital spending on qualified property that exceeded $ 11.0 million . accrued taxes other than income increased as a result of a change in federal excise tax deposit requirements from bi-weekly to quarterly , allowing our first calendar quarterly payment to be made on may 2 , 2011 , after the end of our fiscal year . in addition , in fiscal 2010 , income tax payments were significantly higher as a result of our higher taxable income . ``` Suspicious Activity Report : we incurred $ 3.2 million of similar costs in fiscal 2010. our business we are one of the world 's leading manufacturers of firearms . we manufacture a wide array of handguns , modern sporting rifles , hunting rifles , black powder firearms , handcuffs , and firearm-related products and accessories for sale to a wide variety of customers , including gun enthusiasts , collectors , hunters , sportsmen , 38 competitive shooters , individuals desiring home and personal protection , law enforcement and security agencies and officers , and military agencies in the united states and throughout the world . we are one of the largest manufacturers of handguns and handcuffs in the united states , the largest u.s. exporter of handguns , and a participant in the modern sporting and hunting rifle markets . we are also a leading turnkey provider of perimeter security solutions to protect and control access to key military , government , and corporate facilities . we manufacture our firearm products at our facilities in springfield , massachusetts ; houlton , maine ; and rochester , new hampshire . we manufacture and assemble our perimeter security products at our facilities in franklin , tennessee . in addition , we pursue opportunities to license our name and trademarks to third parties for use in association with their products and services . we plan to increase our product offerings to leverage the nearly 160 year old “smith & wesson” brand and capitalize on the goodwill developed through our historic american tradition by expanding consumer awareness of products we produce or license in the safety , security , protection , and sport markets . key performance indicators we evaluate the performance of our business based upon operating profit , which includes net sales , cost of products and services sold , selling and administrative expenses , and certain components of other income and expense . we also use adjusted ebitdas ( earnings before interest , taxes , depreciation , amortization , and stock-based compensation expense , excluding large non-recurring items ) , which is a non-gaap financial metric , to evaluate our performance . we evaluate our various firearm products by such measurements as cost per unit produced , units produced per day , and incoming orders per day . we evaluate our security solutions products by revenue invoiced , gross margin per project , and incoming orders per month . key industry data handguns have been subject to legislative actions in the past , and the market has reacted to these actions . there was a substantial increase in sales in the early 1990s during the period leading up to and shortly after the enactment of the brady bill . in the period from 1992 through 1994 , the u.s. handgun market increased by over 50 % , as consumers purchased handguns because of the fear of prohibition of handgun ownership . the market levels then returned to pre-1992 levels and grew at normal industry growth rates until late in calendar 2008 , when the market increased in what appears to be fears surrounding crime and terrorism , an economic downturn , and a change in the white house administration . like the increase in 1992 , this increase in the market was temporary in nature and the market returned to more normal levels in fiscal 2010. within the u.s. handgun market , we estimate that approximately 81 % of the market is pistols and 19 % is revolvers . we also estimate that we have an 18 % share of the u.s. consumer market for handguns . this compares with approximately 10 % in the period just before we acquired smith & wesson corp. in 2001 and approximately 16 % during the 1990s . 39 results of operations net product and services sales the following table sets forth certain information regarding net product and services sales for the fiscal years ended april 30 , 2011 , 2010 , and 2009 ( dollars in thousands ) : replace_table_token_2_th fiscal 2011 net product and services sales compared with fiscal 2010 net product and services sales for fiscal 2011 decreased as ordering returned to more normal levels compared with the strong consumer demand that occurred after the november 2008 presidential election . revolver sales increased 3.0 % over the prior fiscal year because of the significant demand for our bodyguard 38 revolver , offset by reduced volume in our aluminum frame products to the consumer market and significantly reduced international shipments , which resulted from substantial changes we made in our foreign sales personnel and foreign representatives , modifications we made in our foreign sales processes , and our determination not to sell our products in certain foreign countries . price repositioning and the costs of a rebate program on small frame revolvers negatively impacted sales dollars while helping to spur unit sales . pistol sales were 6.8 % higher than in the prior fiscal year driven by the introduction of our bodyguard 380 concealed carry pistol . sales of metal pistols were lower compared with the prior fiscal year primarily due to reduced international shipments , while sales of sigma were down as demand shifted to concealed carry in the domestic marketplace . walther product sales declined 12.7 % from the prior fiscal year because of increased competition in small frame and concealed carry products . sales of modern sporting rifles , the product line most impacted by the reduction in consumer demand , declined by 37.5 % from the prior fiscal year . however , sales within this product line were favorably impacted in the fourth quarter of fiscal 2011 by the introduction of our new sport model . premium product sales increased 11.2 % over the prior fiscal year , primarily because of the continued success of our pro series handguns and the introduction of our matched set of engraved bodyguard revolver and pistol . story_separator_special_tag fiscal 2010 income/ ( loss ) from operations compared with fiscal 2009 excluding the impact of the impairment charge recorded in fiscal 2009 discussed above , income from operations for our firearm division of $ 40,074,000 was $ 15,198,000 , or 61.1 % , higher than operating income of $ 24,876,000 for fiscal 2009 , predominantly due to increased products and services sold and improved margins , which more than offset the impact of fcpa costs on operating expenses . other income/ ( expense ) the following table sets forth certain information regarding other income/ ( expense ) for the fiscal years ended april 30 , 2011 , 2010 , and 2009 ( dollars in thousands ) : replace_table_token_7_th for fiscal 2011 and 2010 , other income/ ( expense ) included $ 3,060,000 and $ 9,587,000 , respectively , of income associated with the revaluation of 4,080,000 shares of our common stock related to our july 2009 acquisition of swss ( see note 2 to our consolidated financial statements contained elsewhere in this report ) . excluding this income , the remaining other income/ ( expense ) represented , among other things , unrealized gains and losses on foreign exchange contracts . 45 interest expense the following table sets forth certain information regarding interest expense for the fiscal years ended april 30 , 2011 , 2010 , and 2009 ( dollars in thousands ) : replace_table_token_8_th interest expense increased for fiscal 2011 compared with fiscal 2010 due to the early retirement of $ 50.0 million of our senior convertible notes , which resulted in a $ 476,000 write-off of debt refinancing costs . this debt was exchanged for $ 50.0 million of our 9.5 % senior notes , resulting in higher interest expense , primarily in the fourth quarter of fiscal 2011. the exchange of the senior convertible notes for the higher coupon 9.5 % senior notes was made because of the impending december 2011 date on which holders of the senior convertible notes could require us to repurchase their senior convertible notes as well as to remove the dilutive effects of the senior convertible notes . interest expense decreased for fiscal 2010 as a result of the repayment of $ 4,814,000 of long-term debt in december 2009 and overall increased cash balances throughout the fiscal year . income tax expense the following table sets forth certain information regarding income tax expense for the fiscal years ended april 30 , 2011 , 2010 , 2009 ( dollars in thousands ) : replace_table_token_9_th our income tax expense for fiscal 2011 included the effect of changes in temporary differences between book value and tax bases of assets and liabilities and net operating loss carryforwards . these amounts are reflected in the balance of our net deferred tax assets , which totaled $ 8,764,000 , after valuation allowance , as of april 30 , 2011. we had federal net operating loss carryforwards amounting to $ 1,601,000 as of april 30 , 2011. we obtained $ 8,215,000 in additional loss carryforwards through our acquisition of swss on july 20 , 2009 , the majority of which was utilized in fiscal 2010. the net operating loss carryforwards at april 30 , 2011 expire through fiscal year 2021. internal revenue code section 382 limits our utilization of these losses to approximately $ 403,000 in fiscal 2012 and $ 108,000 per subsequent year . it is possible that future substantial changes in our ownership could occur that could result in a reduction in some or all of our loss carryforwards pursuant to internal revenue code section 382. if such an ownership change were to occur , there would be an annual limitation on the remaining tax loss carryforwards that could be utilized . adjustments to reserves and book versus tax difference on amortization of intangible assets increased the overall net deferred tax asset to $ 8,764,000 as of april 30 , 2011. there was $ 10,938,000 of state net operating loss carryforwards as of april 30 , 2011. there was $ 4,591,000 of state net operating loss carryforwards as of april 30 , 2010. there was $ 1,739,000 and $ 1,218,000 of state tax credit carryforwards as of april 30 , 2011 and 2010 , respectively . as of april 30 , 2011 , valuation allowances of $ 26,000 , $ 445,000 , and $ 705,000 were provided on our deferred tax assets for a federal capital loss carryforward , state net operating losses , and state tax credits , respectively , that we do not anticipate using prior to their expiration . as of april 30 , 2010 , valuation losses of $ 26,000 and $ 650,000 were provided on our deferred tax assets for a federal capital loss carryforward and state tax credits , respectively . the increase in the valuation allowance on our deferred tax assets for state net operating losses and credits related mainly to our operations in franklin , tennessee . no other valuation allowance was provided on our deferred federal income tax assets as of april 30 , 2011 or 2010 , as we believe that it is more likely than not that all such assets will be realized . in order to utilize the unreserved portion of our net operating loss carryforwards , the minimum level of annual taxable income that we would have achieve must equal or exceed the amount of federal net operating carryforwards for fiscal years 2012 through 2021. we believe that achievement of that level of taxable income is more likely than 46 not based on historical performance and future projections , including new product offerings , pricing decisions , marketing efforts , and expected spending levels . net income/ ( loss ) the following table sets forth certain information regarding net income/ ( loss ) and the related per share data for the fiscal years ended april 30 , 2011 , 2010 , and 2009 ( dollars in thousands , except per share data )

we also typically receive a performance fee from an investment fund , which may be either an incentive fee or a special residual allocation of income , which we refer to as a carried interest , in the event that specified investment returns are achieved by the fund . under u.s. generally accepted accounting principles ( “ u.s . gaap ” ) , we are required to consolidate some of the investment funds that we advise . however , for segment reporting purposes , we present revenues and expenses on a basis that deconsolidates these investment funds . accordingly , our segment revenues primarily consist of fund management and related advisory fees and other income , realized performance revenues ( consisting of incentive fees and carried interest allocations ) , realized principal investment income , including realized gains on our investments in our funds and other trading securities , as well as interest income . our segment expenses primarily consist of cash compensation and benefits expenses , including salaries , bonuses , and realized performance payment arrangements , and general and administrative expenses . while our segment expenses include depreciation and interest expense , our segment expenses exclude acquisition-related charges and amortization of intangibles and impairment . refer to note 17 to the consolidated financial statements included in this annual report on form 10-k for 84 more information on the differences between our financial results reported pursuant to u.s. gaap and our financial results for segment reporting purposes . trends affecting our business market expectations for global economic growth continued to moderate into the fourth quarter of 2019. in the u.s. , growth decelerated relative to 2018 due to weakness in the industrial sector , business spending , and exports . although at a more moderate pace than 2018 , during 2019 and into early 2020 the economy continued to grow due to a housing sector rebound driven by lower mortgage rates tied to three federal reserve rate cuts during 2019 , and strong consumption growth due to low unemployment , robust real wage growth and generally solid household balance sheets during the year . the softness in business spending during 2019 and continuing into early 2020 appears to be attributable to a combination of weak corporate earnings , heightened “ late-cycle ” fears among business managers and ongoing geopolitical tensions . rising compensation and input costs have led to a decline in operating margins , while a strong dollar continues to weigh on the domestic value of foreign sales and earnings . in china , official data indicate real gdp grew by 6 % over the course of 2019 , unchanged from the third quarter . the deceleration in growth relative to prior periods was driven by ongoing softness in exports , housing and manufacturing . data over the course of 2019 highlights the degree to which the costs of the trade dispute have negatively affected the overall global economy . in its january 2020 update to the world economic outlook , the international monetary fund estimates that global growth amounted to just 2.9 % in 2019 and that the bulk of the slowdown from 4 % growth at the start of 2018 can be attributed to weak global trade . trends in manufacturing surveys , sentiment indices , and long-term yields all closely tracked the fall in global trade volumes throughout the year . since the global trade system is based on integrated , cross-border value chains , negative effects in one part of the network quickly spread to the rest . geopolitical uncertainty , trade frictions , and other downside risks continue to exert a significant impact on the overall economy into early 2020. although investors ' optimism rose in the immediate aftermath of the finalization of the “ phase-one ” trade agreement between the u.s. and china ( the s & p 500 , msci acwi-all cap , eurostoxx 600 and shanghai composite each rose 8.5 % , 8.6 % , 5.8 % , and 5.0 % , respectively , in the fourth quarter , bringing 2019 returns into the double digits across indices ) , sentiment has shifted once more in light of new concerns . the global market exuberance of the fourth quarter was likely due to investor hopes for a rebound in growth after the easing of trade tensions , particularly in china . the rapid proliferation of the novel coronavirus , however , threatens such a rebound , and highlights the fragility of the macro economy . from december 31 through january 31 , 2020 , the hang seng index fell nearly 7 % . brent crude spot prices fell nearly 16 % in january 2020 on fears that virus containment efforts will choke off demand . in the u.s. , valuations remain high , as prices belie underlying fundamentals . earnings for companies in the s & p 500 declined year-over-year in each of the first three quarters of 2019 , and are estimated to have risen just 0.7 % in the fourth quarter . if the growth that investors anticipate fails to materialize , or if the expected stabilization in trade does not come to fruition , equity markets may react in kind . the global monetary policy easing cycle that characterized the first three quarters of 2019 appears to have significantly slowed , with most ( but not all ) central banks on hold for now . story_separator_special_tag as a result , the performance allocations earned in an applicable reporting period are not indicative of any future period , as fair values are based on conditions prevalent as of the reporting date . refer to “ — trends affecting our business ” for further discussion . in addition to the performance allocations from our corporate private equity and real assets funds and most of our closed-end carry funds in the global credit segment , we are also entitled to receive performance allocations from our investment solutions , carlyle aviation and ngp carry funds . the timing of performance allocations realizations for these funds is typically later than in our other carry funds based on the terms of such arrangements . our performance allocations are generated by a diverse set of funds with different vintages , geographic concentration , investment strategies and industry specialties . for an explanation of the fund acronyms used throughout this management 's discussion and analysis of financial condition and results of operations section , see “ item 1. business — our family of funds . ” 88 performance allocations in excess of 10 % of the total for the years ended december 31 , 2019 , 2018 and 2017 were generated from the following funds : replace_table_token_7_th no other fund generated over 10 % of performance allocations in the periods presented above . under our arrangements with the historical owners and management team of alpinvest , we generally do not retain any carried interest in respect of the historical investments and commitments to our fund vehicles that existed as of july 1 , 2011 ( including any options to increase any such commitments exercised after such date ) . we are entitled to 15 % of the carried interest in respect of commitments from the historical owners of alpinvest for the period between 2011 and 2020 and 40 % of the carried interest in respect of all other commitments ( including all future commitments from third parties ) . in certain instances , carried interest associated with the alpinvest fund vehicles is subject to entity level income taxes in the netherlands . realized carried interest may be clawed back or given back to the fund if the fund 's investment values decline below certain return hurdles , which vary from fund to fund . when the fair value of a fund 's investments remains constant or falls below certain return hurdles , previously recognized performance allocations are reversed . in all cases , each investment fund is considered separately in evaluating carried interest and potential giveback obligations . for any given period , performance allocations revenue on our statement of operations may include reversals of previously recognized performance allocations due to a decrease in the value of a particular fund that results in a decrease of cumulative performance allocations earned to date . since fund return hurdles are cumulative , previously recognized performance allocations also may be reversed in a period of appreciation that is lower than the particular fund 's hurdle rate . for the years ended december 31 , 2019 , 2018 , and 2017 , the reversals of performance allocations were $ 215.8 million , $ 364.4 million and $ 74.2 million , respectively . additionally , unrealized performance allocations reverse when performance allocations are realized , and unrealized performance allocations can be negative if the amount of realized performance allocations exceed total performance allocations generated in the period . as of december 31 , 2019 , accrued performance allocations and accrued giveback obligations were approximately $ 3.9 billion and $ 22.2 million , respectively . each balance assumes a hypothetical liquidation of the funds ' investments at december 31 , 2019 at their then current fair values . these assets and liabilities will continue to fluctuate in accordance with the fair values of the fund investments until they are realized . as of december 31 , 2019 , approximately $ 14.1 million of the accrued giveback obligation is the responsibility of various current and former senior carlyle professionals and other limited partners of the carlyle holdings partnerships , and the net accrued giveback obligation attributable to carlyle holdings is $ 8.1 million . the company uses “ net accrued performance revenues ” to refer to the aggregation of the accrued performance allocations and incentive fees net of ( i ) accrued giveback obligations , ( ii ) accrued performance allocations and incentive fee-related compensation , ( iii ) performance allocations and incentive fee-related tax obligations , and ( iv ) accrued performance allocations and incentive fees attributable to non-controlling interests and excludes any net accrued performance allocations and incentive fees that have been realized but will be collected in subsequent periods . the net accrued performance revenues as of december 31 , 2019 are $ 1.7 billion . in addition , realized performance allocations may be reversed in future periods to the extent that such amounts become subject to a giveback obligation . if at december 31 , 2019 , all investments held by our carry funds were deemed worthless , a possibility that management views as remote , the amount of realized and previously distributed performance allocations subject to potential giveback would be approximately $ 0.4 billion , on an after-tax basis where applicable . see the related discussion of “ contingent obligations ( giveback ) ” within “ — liquidity and capital resources . ” 89 the following table summarizes the total amount of aggregate giveback obligations that we have realized since carlyle 's inception . given various current and former senior carlyle professionals and other limited partners of the carlyle holdings partnerships are responsible for paying the majority of the realized giveback obligation , the table below also summarizes the amount that was attributable to carlyle holdings : inception through december 31 , 2019 total giveback giveback attributable to carlyle holdings ( dollars in millions ) various legacy energy funds $ 155.2 $ 55.0 all other carlyle

net cash used in investing activities . our investing activities generally reflect cash used for acquisitions and fixed assets and software for internal use . purchases of fixed assets were $ 27.8 million , $ 31.3 million and $ 34.0 million for the years ended december 31 , 2019 , 2018 and 2017 , respectively . during the year ended december 31 , 2018 , cash used in investing activities principally reflects the acquisition of carlyle aviation partners . net cash provided by financing activities . in 2019 , we received net proceeds of $ 420.6 million from the issuance of $ 425 million of 3.500 % senior notes , and $ 41.0 million from the issuance of various clo borrowings , paid $ 405.4 million to repurchase our outstanding preferred units , paid $ 34.5 million to repurchase 1.6 million units under our repurchase program 146 and paid off a $ 25 million term loan . in 2018 , we received net proceeds of $ 345.7 million from the issuance of $ 350 million of 5.650 % senior notes , paid $ 255 million to repurchase $ 250 million of 3.875 % senior note , and paid $ 108.8 million to prepay the remaining balance outstanding under a promissory note to bnri . in 2017 , we received net proceeds of $ 387.5 million from the issuance of preferred units and $ 265.6 million from the issuance of various clo term loans . dividends to our common stockholders were $ 154.9 million , $ 129.8 million , and $ 118.1 million for the years ended december 31 , 2019 , 2018 and 2017 , respectively . distributions to the non-controlling interest holders in carlyle holdings were $ 313.3 million , $ 288.8 million , and $ 295.6 million the years ended december 31 , 2019 , 2018 and 2017 , respectively . the net ( payments ) borrowings on loans payable by our consolidated funds during the years ended december 31 , 2019 , 2018 and 2017 were $ 224.8 million , $ 818.0 million , and $ 147.2 million , 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. ```net cash used in investing activities . our investing activities generally reflect cash used for acquisitions and fixed assets and software for internal use . purchases of fixed assets were $ 27.8 million , $ 31.3 million and $ 34.0 million for the years ended december 31 , 2019 , 2018 and 2017 , respectively . during the year ended december 31 , 2018 , cash used in investing activities principally reflects the acquisition of carlyle aviation partners . net cash provided by financing activities . in 2019 , we received net proceeds of $ 420.6 million from the issuance of $ 425 million of 3.500 % senior notes , and $ 41.0 million from the issuance of various clo borrowings , paid $ 405.4 million to repurchase our outstanding preferred units , paid $ 34.5 million to repurchase 1.6 million units under our repurchase program 146 and paid off a $ 25 million term loan . in 2018 , we received net proceeds of $ 345.7 million from the issuance of $ 350 million of 5.650 % senior notes , paid $ 255 million to repurchase $ 250 million of 3.875 % senior note , and paid $ 108.8 million to prepay the remaining balance outstanding under a promissory note to bnri . in 2017 , we received net proceeds of $ 387.5 million from the issuance of preferred units and $ 265.6 million from the issuance of various clo term loans . dividends to our common stockholders were $ 154.9 million , $ 129.8 million , and $ 118.1 million for the years ended december 31 , 2019 , 2018 and 2017 , respectively . distributions to the non-controlling interest holders in carlyle holdings were $ 313.3 million , $ 288.8 million , and $ 295.6 million the years ended december 31 , 2019 , 2018 and 2017 , respectively . the net ( payments ) borrowings on loans payable by our consolidated funds during the years ended december 31 , 2019 , 2018 and 2017 were $ 224.8 million , $ 818.0 million , and $ 147.2 million , respectively . ``` Suspicious Activity Report : we also typically receive a performance fee from an investment fund , which may be either an incentive fee or a special residual allocation of income , which we refer to as a carried interest , in the event that specified investment returns are achieved by the fund . under u.s. generally accepted accounting principles ( “ u.s . gaap ” ) , we are required to consolidate some of the investment funds that we advise . however , for segment reporting purposes , we present revenues and expenses on a basis that deconsolidates these investment funds . accordingly , our segment revenues primarily consist of fund management and related advisory fees and other income , realized performance revenues ( consisting of incentive fees and carried interest allocations ) , realized principal investment income , including realized gains on our investments in our funds and other trading securities , as well as interest income . our segment expenses primarily consist of cash compensation and benefits expenses , including salaries , bonuses , and realized performance payment arrangements , and general and administrative expenses . while our segment expenses include depreciation and interest expense , our segment expenses exclude acquisition-related charges and amortization of intangibles and impairment . refer to note 17 to the consolidated financial statements included in this annual report on form 10-k for 84 more information on the differences between our financial results reported pursuant to u.s. gaap and our financial results for segment reporting purposes . trends affecting our business market expectations for global economic growth continued to moderate into the fourth quarter of 2019. in the u.s. , growth decelerated relative to 2018 due to weakness in the industrial sector , business spending , and exports . although at a more moderate pace than 2018 , during 2019 and into early 2020 the economy continued to grow due to a housing sector rebound driven by lower mortgage rates tied to three federal reserve rate cuts during 2019 , and strong consumption growth due to low unemployment , robust real wage growth and generally solid household balance sheets during the year . the softness in business spending during 2019 and continuing into early 2020 appears to be attributable to a combination of weak corporate earnings , heightened “ late-cycle ” fears among business managers and ongoing geopolitical tensions . rising compensation and input costs have led to a decline in operating margins , while a strong dollar continues to weigh on the domestic value of foreign sales and earnings . in china , official data indicate real gdp grew by 6 % over the course of 2019 , unchanged from the third quarter . the deceleration in growth relative to prior periods was driven by ongoing softness in exports , housing and manufacturing . data over the course of 2019 highlights the degree to which the costs of the trade dispute have negatively affected the overall global economy . in its january 2020 update to the world economic outlook , the international monetary fund estimates that global growth amounted to just 2.9 % in 2019 and that the bulk of the slowdown from 4 % growth at the start of 2018 can be attributed to weak global trade . trends in manufacturing surveys , sentiment indices , and long-term yields all closely tracked the fall in global trade volumes throughout the year . since the global trade system is based on integrated , cross-border value chains , negative effects in one part of the network quickly spread to the rest . geopolitical uncertainty , trade frictions , and other downside risks continue to exert a significant impact on the overall economy into early 2020. although investors ' optimism rose in the immediate aftermath of the finalization of the “ phase-one ” trade agreement between the u.s. and china ( the s & p 500 , msci acwi-all cap , eurostoxx 600 and shanghai composite each rose 8.5 % , 8.6 % , 5.8 % , and 5.0 % , respectively , in the fourth quarter , bringing 2019 returns into the double digits across indices ) , sentiment has shifted once more in light of new concerns . the global market exuberance of the fourth quarter was likely due to investor hopes for a rebound in growth after the easing of trade tensions , particularly in china . the rapid proliferation of the novel coronavirus , however , threatens such a rebound , and highlights the fragility of the macro economy . from december 31 through january 31 , 2020 , the hang seng index fell nearly 7 % . brent crude spot prices fell nearly 16 % in january 2020 on fears that virus containment efforts will choke off demand . in the u.s. , valuations remain high , as prices belie underlying fundamentals . earnings for companies in the s & p 500 declined year-over-year in each of the first three quarters of 2019 , and are estimated to have risen just 0.7 % in the fourth quarter . if the growth that investors anticipate fails to materialize , or if the expected stabilization in trade does not come to fruition , equity markets may react in kind . the global monetary policy easing cycle that characterized the first three quarters of 2019 appears to have significantly slowed , with most ( but not all ) central banks on hold for now . story_separator_special_tag as a result , the performance allocations earned in an applicable reporting period are not indicative of any future period , as fair values are based on conditions prevalent as of the reporting date . refer to “ — trends affecting our business ” for further discussion . in addition to the performance allocations from our corporate private equity and real assets funds and most of our closed-end carry funds in the global credit segment , we are also entitled to receive performance allocations from our investment solutions , carlyle aviation and ngp carry funds . the timing of performance allocations realizations for these funds is typically later than in our other carry funds based on the terms of such arrangements . our performance allocations are generated by a diverse set of funds with different vintages , geographic concentration , investment strategies and industry specialties . for an explanation of the fund acronyms used throughout this management 's discussion and analysis of financial condition and results of operations section , see “ item 1. business — our family of funds . ” 88 performance allocations in excess of 10 % of the total for the years ended december 31 , 2019 , 2018 and 2017 were generated from the following funds : replace_table_token_7_th no other fund generated over 10 % of performance allocations in the periods presented above . under our arrangements with the historical owners and management team of alpinvest , we generally do not retain any carried interest in respect of the historical investments and commitments to our fund vehicles that existed as of july 1 , 2011 ( including any options to increase any such commitments exercised after such date ) . we are entitled to 15 % of the carried interest in respect of commitments from the historical owners of alpinvest for the period between 2011 and 2020 and 40 % of the carried interest in respect of all other commitments ( including all future commitments from third parties ) . in certain instances , carried interest associated with the alpinvest fund vehicles is subject to entity level income taxes in the netherlands . realized carried interest may be clawed back or given back to the fund if the fund 's investment values decline below certain return hurdles , which vary from fund to fund . when the fair value of a fund 's investments remains constant or falls below certain return hurdles , previously recognized performance allocations are reversed . in all cases , each investment fund is considered separately in evaluating carried interest and potential giveback obligations . for any given period , performance allocations revenue on our statement of operations may include reversals of previously recognized performance allocations due to a decrease in the value of a particular fund that results in a decrease of cumulative performance allocations earned to date . since fund return hurdles are cumulative , previously recognized performance allocations also may be reversed in a period of appreciation that is lower than the particular fund 's hurdle rate . for the years ended december 31 , 2019 , 2018 , and 2017 , the reversals of performance allocations were $ 215.8 million , $ 364.4 million and $ 74.2 million , respectively . additionally , unrealized performance allocations reverse when performance allocations are realized , and unrealized performance allocations can be negative if the amount of realized performance allocations exceed total performance allocations generated in the period . as of december 31 , 2019 , accrued performance allocations and accrued giveback obligations were approximately $ 3.9 billion and $ 22.2 million , respectively . each balance assumes a hypothetical liquidation of the funds ' investments at december 31 , 2019 at their then current fair values . these assets and liabilities will continue to fluctuate in accordance with the fair values of the fund investments until they are realized . as of december 31 , 2019 , approximately $ 14.1 million of the accrued giveback obligation is the responsibility of various current and former senior carlyle professionals and other limited partners of the carlyle holdings partnerships , and the net accrued giveback obligation attributable to carlyle holdings is $ 8.1 million . the company uses “ net accrued performance revenues ” to refer to the aggregation of the accrued performance allocations and incentive fees net of ( i ) accrued giveback obligations , ( ii ) accrued performance allocations and incentive fee-related compensation , ( iii ) performance allocations and incentive fee-related tax obligations , and ( iv ) accrued performance allocations and incentive fees attributable to non-controlling interests and excludes any net accrued performance allocations and incentive fees that have been realized but will be collected in subsequent periods . the net accrued performance revenues as of december 31 , 2019 are $ 1.7 billion . in addition , realized performance allocations may be reversed in future periods to the extent that such amounts become subject to a giveback obligation . if at december 31 , 2019 , all investments held by our carry funds were deemed worthless , a possibility that management views as remote , the amount of realized and previously distributed performance allocations subject to potential giveback would be approximately $ 0.4 billion , on an after-tax basis where applicable . see the related discussion of “ contingent obligations ( giveback ) ” within “ — liquidity and capital resources . ” 89 the following table summarizes the total amount of aggregate giveback obligations that we have realized since carlyle 's inception . given various current and former senior carlyle professionals and other limited partners of the carlyle holdings partnerships are responsible for paying the majority of the realized giveback obligation , the table below also summarizes the amount that was attributable to carlyle holdings : inception through december 31 , 2019 total giveback giveback attributable to carlyle holdings ( dollars in millions ) various legacy energy funds $ 155.2 $ 55.0 all other carlyle

we work with the management teams or financial sponsors to seek investments with historical cash flows , asset collateral or contracted pro-forma cash flows . we currently have nine strategies that guide our origination of investment opportunities : ( 1 ) lending to companies controlled by private equity sponsors , ( 2 ) lending to companies not controlled by private equity sponsors , ( 3 ) purchasing controlling equity positions and lending to operating companies , ( 4 ) purchasing controlling equity positions and lending to financial services companies , ( 5 ) purchasing controlling equity positions and lending to real estate companies , ( 6 ) purchasing controlling equity positions and lending to aircraft leasing companies ( 7 ) investing in structured credit ( 8 ) investing in syndicated debt and ( 9 ) investing in online loans . we may also invest in other strategies and opportunities from time to time that we view as attractive . we continue to evaluate other origination strategies in the ordinary course of business with no specific top-down allocation to any single origination strategy . lending to companies controlled by private equity sponsors - we make agented loans to companies which are controlled by private equity sponsors . this debt can take the form of first lien , second lien , unitranche or unsecured loans . these loans typically have equity subordinate to our loan position . historically , this strategy has comprised approximately 40 % -60 % of our portfolio . 65 lending to companies not controlled by private equity sponsors - we make loans to companies which are not controlled by private equity sponsors , such as companies that are controlled by the management team , the founder , a family or public shareholders . this origination strategy may have less competition to provide debt financing than the private-equity-sponsor origination strategy because such company financing needs are not easily addressed by banks and often require more diligence preparation . this origination strategy can result in investments with higher returns or lower leverage than the private-equity-sponsor origination strategy . historically , this strategy has comprised up to approximately 15 % of our portfolio . purchasing controlling equity positions and lending to operating companies - this strategy involves purchasing yield-producing debt and controlling equity positions in non-financial-services operating companies . we believe that we can provide enhanced certainty of closure and liquidity to sellers and we look for management to continue on in their current roles . this strategy has comprised approximately 5 % -15 % of our portfolio . purchasing controlling equity positions and lending to financial services companies - this strategy involves purchasing yield-producing debt and control equity investments in financial services companies , including consumer direct lending , sub-prime auto lending and other strategies . these investments are often structured in tax-efficient partnerships , enhancing returns . this strategy has comprised approximately 5 % -15 % of our portfolio . purchasing controlling equity positions and lending to real estate companies - we purchase debt and controlling equity positions in tax-efficient real estate investment trusts ( “ reit ” or “ reits ” ) . nprc 's , an operating company and the surviving entity of the may 23 , 2016 merger with aprc and uprc , real estate investments are in various classes of developed and occupied real estate properties that generate current yields , including multi-family properties , student housing , and self-storage . nprc seeks to identify properties that have historically significant occupancy rates and recurring cash flow generation . nprc generally co-invests with established and experienced property management teams that manage such properties after acquisition . additionally , nprc purchases loans originated by certain consumer loan facilitators . it generally purchases each loan in its entirety ( i.e . , a “ whole loan ” ) . the borrowers are consumers , and the loans are typically serviced by the facilitators of the loans . this investment strategy has comprised approximately 5 % -10 % of our business . purchasing controlling equity positions and lending to aircraft leasing companies - we invest in debt as well as equity in companies with aircraft assets subject to commercial leases to airlines across the globe . we believe that these investments can present attractive return opportunities due to cash flow consistency from long-term leases coupled with hard asset residual value . we believe that these investment companies seek to deliver risk-adjusted returns with strong downside protection by analyzing relative value characteristics across a variety of aircraft types and vintages . this strategy historically has comprised less than 5 % of our portfolio . investing in structured credit - we make investments in clos , often taking a significant position in the subordinated interests ( equity ) of the clos . the underlying portfolio of each clo investment is diversified across approximately 100 to 200 broadly syndicated loans and does not have direct exposure to real estate , mortgages , or consumer-based credit assets . the clos in which we invest are managed by established collateral management teams with many years of experience in the industry . this strategy has comprised approximately 10 % -20 % of our portfolio . investing in syndicated debt - on a primary or secondary basis , we purchase primarily senior and secured loans and high yield bonds that have been sold to a club or syndicate of buyers . these investments are often purchased with a long term , buy-and-hold outlook , and we often look to provide significant input to the transaction by providing anchoring orders . this strategy has comprised approximately 5 % -10 % of our portfolio . investing in online loans - we purchase loans originated by certain small-and-medium-sized business ( “ sme ” ) loan facilitators . we generally purchase each loan in its entirety ( i.e . , a “ whole loan ” ) . story_separator_special_tag term loan a bears interest at the greater of 6.50 % or libor plus 4.50 % and has a final maturity of june 18 , 2019. term loan b bears interest at the greater of 11.50 % or libor plus 9.50 % and has a final maturity of june 18 , 2019. on february 1 , 2017 , we made a $ 10,000 senior secured debt investment to support a recapitalization in curo financial technologies corp. the senior secured debt bears interest at 12.00 % and has a final maturity of march 1 , 2022. on march 17 , 2017 , curo group holdings corp ( f/k/a speedy cash holdings corp. ) repaid the $ 25,000 loan receivable to us . 72 on february 17 , 2017 , we made a $ 14,500 second lien secured investment in turning point brands , inc. , a provider of other tobacco products . the second lien note bears interest at 11.00 % and has a final maturity of august 17 , 2022. on february 24 , 2017 , we made an additional $ 33,000 of senior secured term loan a and $ 7,000 of senior secured term loan b debt investment in matrixx to fund a dividend recapitalization . term loan a bears interest at the greater of 7.50 % or libor plus 6.50 % and has a final maturity of february 24 , 2020. term loan b bears interest at the greater of 12.50 % or libor plus 11.50 % and has a final maturity of february 24 , 2020. on march 8 , 2017 , we made a $ 20,000 second lien secured investment in vc gb holdings ii corp. to support a refinancing and acquisition for generation brands holdings , inc. ( “ generation brands ” ) . the second lien note bears interest at the greater of 9.00 % or libor plus 8.00 % and has a final maturity of february 28 , 2025. on march 16 , 2017 , we made a first lien senior secured investment of $ 38,000 to support the recapitalization of memorial mri & diagnostic , l.l.c . , a provider of multi-modality diagnostic imaging and pain management services . the term loan bears interest at the greater of 9.50 % or libor plus 8.50 % and has a final maturity of march 16 , 2022. on march 28 , 2017 , we made a $ 15,000 of senior secured term loan a and $ 15,000 of senior secured term loan b debt investment to support an acquisition of ezshield , parent inc. , a provider of fraud and identify theft protection services . term loan a bears interest at the greater of 7.75 % or libor plus 6.75 % and has a final maturity of february 26 , 2021. term loan b bears interest at the greater of 12.75 % or libor plus 11.75 % and has a final maturity of february 26 , 2021. on april 7 , 2017 , we made an investment of $ 19,408 to purchase 50.48 % of the subordinated notes in carlyle global market strategies clo 2014-4 , ltd. in a co-investment transaction pathway energy infrastructure fund , inc. , a closed-end fund managed by an affiliate of prospect capital management . on april 20 , 2017 , we made a $ 15,000 first lien senior secured investment to support a refinancing of rgis services , llc , a provider of inventory , merchandising and staffing solutions . the senior secured term loan bears interest at the greater of 8.50 % or libor plus 7.50 % and has a final maturity of march 31 , 2023. on may 4 , 2017 , we provided $ 64,500 of senior secured financing , of which $ 62,500 was funded at closing , to support the acquisition of rme group holdings company , a provider of client acquisition and lead generation services to professional service firms . the $ 2,000 unfunded revolver bears interest in at the greater of 9.00 % or libor plus 8.00 % and has a final maturity of august 4 , 2017. the $ 37,500 term loan a bears interest at the greater of 7.00 % or libor plus 6.00 % and has a final maturity of may 4 , 2022. the $ 25,000 term loan b bears interest at the greater of 12.00 % or libor plus 11.00 % and has a final maturity of may 4 , 2022. on may 18 , 2017 , we made a $ 50,000 second lien secured investment to support kepro 's refinancing and acquisition of keystone acquisition corp. the second lien term loan bears interest at the greater of 10.25 % or libor plus 9.25 % and has a final maturity of may 1 , 2025. on june 13 , 2017 , we made an investment of $ 44,900 to purchase 84.21 % of the subordinated notes in voya clo 2017-3 , ltd. in a co-investment transaction with priority income fund , inc. , a closed-end fund managed by an affiliate of prospect capital management l.p. during the year ended june 30 , 2017 , we made twelve follow-on investments in nprc totaling $ 123,506 to support the online consumer lending initiative . we invested $ 23,077 of equity through nph and $ 100,429 of debt directly to nprc and its wholly-owned subsidiaries . we also provided $ 75,591 of debt and $ 25,200 of equity financing to nprc , which was utilized for the acquisition of real estate properties . in addition , we provided $ 13,553 of equity investment which was used to fund capital expenditures for existing properties . during the year ended june 30 , 2017 , we purchased $ 51,802 of small business whole loans from ondeck . during the year ended june 30 , 2017 , we received full repayments on twenty-one investments , sold six investments , and received several partial prepayments and amortization payments totaling $ 1,413,882 , which

debt issuances and redemptions during the three months ended june 30 , 2017 , we redeemed $ 49,497 aggregate principal amount of our prospect capital internotes® at par with a weighted average interest rate of 4.87 % , and issued $ 29,661 aggregate principal amount of prospect capital internotes® with a stated and weighted average interest rate of 4.82 % , to extend our borrowing base . the newly issued notes mature between april 15 , 2022 and june 15 , 2022 and generated net proceeds of $ 29,290 . during the three months ended june 30 , 2017 , we repaid $ 2,420 aggregate principal amount of prospect capital internotes® at par in accordance with the survivor 's option , as defined in the internotes® offering prospectus . as a result of these transactions , we recorded a loss in the amount of the unamortized debt issuance costs . the net loss on the extinguishment of prospect capital internotes® in the three months ended june 30 , 2017 was $ 320. in april , 2017 we repurchased $ 78,766 aggregate principal amount of the 2017 notes at a price of 102.0 % of face value , including commissions . as a result of these transactions , we recorded a loss in the amount of the difference between the reacquisition price and the net carrying amount of the 2017 notes , net of the proportionate amount of unamortized debt issuance costs .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```debt issuances and redemptions during the three months ended june 30 , 2017 , we redeemed $ 49,497 aggregate principal amount of our prospect capital internotes® at par with a weighted average interest rate of 4.87 % , and issued $ 29,661 aggregate principal amount of prospect capital internotes® with a stated and weighted average interest rate of 4.82 % , to extend our borrowing base . the newly issued notes mature between april 15 , 2022 and june 15 , 2022 and generated net proceeds of $ 29,290 . during the three months ended june 30 , 2017 , we repaid $ 2,420 aggregate principal amount of prospect capital internotes® at par in accordance with the survivor 's option , as defined in the internotes® offering prospectus . as a result of these transactions , we recorded a loss in the amount of the unamortized debt issuance costs . the net loss on the extinguishment of prospect capital internotes® in the three months ended june 30 , 2017 was $ 320. in april , 2017 we repurchased $ 78,766 aggregate principal amount of the 2017 notes at a price of 102.0 % of face value , including commissions . as a result of these transactions , we recorded a loss in the amount of the difference between the reacquisition price and the net carrying amount of the 2017 notes , net of the proportionate amount of unamortized debt issuance costs . ``` Suspicious Activity Report : we work with the management teams or financial sponsors to seek investments with historical cash flows , asset collateral or contracted pro-forma cash flows . we currently have nine strategies that guide our origination of investment opportunities : ( 1 ) lending to companies controlled by private equity sponsors , ( 2 ) lending to companies not controlled by private equity sponsors , ( 3 ) purchasing controlling equity positions and lending to operating companies , ( 4 ) purchasing controlling equity positions and lending to financial services companies , ( 5 ) purchasing controlling equity positions and lending to real estate companies , ( 6 ) purchasing controlling equity positions and lending to aircraft leasing companies ( 7 ) investing in structured credit ( 8 ) investing in syndicated debt and ( 9 ) investing in online loans . we may also invest in other strategies and opportunities from time to time that we view as attractive . we continue to evaluate other origination strategies in the ordinary course of business with no specific top-down allocation to any single origination strategy . lending to companies controlled by private equity sponsors - we make agented loans to companies which are controlled by private equity sponsors . this debt can take the form of first lien , second lien , unitranche or unsecured loans . these loans typically have equity subordinate to our loan position . historically , this strategy has comprised approximately 40 % -60 % of our portfolio . 65 lending to companies not controlled by private equity sponsors - we make loans to companies which are not controlled by private equity sponsors , such as companies that are controlled by the management team , the founder , a family or public shareholders . this origination strategy may have less competition to provide debt financing than the private-equity-sponsor origination strategy because such company financing needs are not easily addressed by banks and often require more diligence preparation . this origination strategy can result in investments with higher returns or lower leverage than the private-equity-sponsor origination strategy . historically , this strategy has comprised up to approximately 15 % of our portfolio . purchasing controlling equity positions and lending to operating companies - this strategy involves purchasing yield-producing debt and controlling equity positions in non-financial-services operating companies . we believe that we can provide enhanced certainty of closure and liquidity to sellers and we look for management to continue on in their current roles . this strategy has comprised approximately 5 % -15 % of our portfolio . purchasing controlling equity positions and lending to financial services companies - this strategy involves purchasing yield-producing debt and control equity investments in financial services companies , including consumer direct lending , sub-prime auto lending and other strategies . these investments are often structured in tax-efficient partnerships , enhancing returns . this strategy has comprised approximately 5 % -15 % of our portfolio . purchasing controlling equity positions and lending to real estate companies - we purchase debt and controlling equity positions in tax-efficient real estate investment trusts ( “ reit ” or “ reits ” ) . nprc 's , an operating company and the surviving entity of the may 23 , 2016 merger with aprc and uprc , real estate investments are in various classes of developed and occupied real estate properties that generate current yields , including multi-family properties , student housing , and self-storage . nprc seeks to identify properties that have historically significant occupancy rates and recurring cash flow generation . nprc generally co-invests with established and experienced property management teams that manage such properties after acquisition . additionally , nprc purchases loans originated by certain consumer loan facilitators . it generally purchases each loan in its entirety ( i.e . , a “ whole loan ” ) . the borrowers are consumers , and the loans are typically serviced by the facilitators of the loans . this investment strategy has comprised approximately 5 % -10 % of our business . purchasing controlling equity positions and lending to aircraft leasing companies - we invest in debt as well as equity in companies with aircraft assets subject to commercial leases to airlines across the globe . we believe that these investments can present attractive return opportunities due to cash flow consistency from long-term leases coupled with hard asset residual value . we believe that these investment companies seek to deliver risk-adjusted returns with strong downside protection by analyzing relative value characteristics across a variety of aircraft types and vintages . this strategy historically has comprised less than 5 % of our portfolio . investing in structured credit - we make investments in clos , often taking a significant position in the subordinated interests ( equity ) of the clos . the underlying portfolio of each clo investment is diversified across approximately 100 to 200 broadly syndicated loans and does not have direct exposure to real estate , mortgages , or consumer-based credit assets . the clos in which we invest are managed by established collateral management teams with many years of experience in the industry . this strategy has comprised approximately 10 % -20 % of our portfolio . investing in syndicated debt - on a primary or secondary basis , we purchase primarily senior and secured loans and high yield bonds that have been sold to a club or syndicate of buyers . these investments are often purchased with a long term , buy-and-hold outlook , and we often look to provide significant input to the transaction by providing anchoring orders . this strategy has comprised approximately 5 % -10 % of our portfolio . investing in online loans - we purchase loans originated by certain small-and-medium-sized business ( “ sme ” ) loan facilitators . we generally purchase each loan in its entirety ( i.e . , a “ whole loan ” ) . story_separator_special_tag term loan a bears interest at the greater of 6.50 % or libor plus 4.50 % and has a final maturity of june 18 , 2019. term loan b bears interest at the greater of 11.50 % or libor plus 9.50 % and has a final maturity of june 18 , 2019. on february 1 , 2017 , we made a $ 10,000 senior secured debt investment to support a recapitalization in curo financial technologies corp. the senior secured debt bears interest at 12.00 % and has a final maturity of march 1 , 2022. on march 17 , 2017 , curo group holdings corp ( f/k/a speedy cash holdings corp. ) repaid the $ 25,000 loan receivable to us . 72 on february 17 , 2017 , we made a $ 14,500 second lien secured investment in turning point brands , inc. , a provider of other tobacco products . the second lien note bears interest at 11.00 % and has a final maturity of august 17 , 2022. on february 24 , 2017 , we made an additional $ 33,000 of senior secured term loan a and $ 7,000 of senior secured term loan b debt investment in matrixx to fund a dividend recapitalization . term loan a bears interest at the greater of 7.50 % or libor plus 6.50 % and has a final maturity of february 24 , 2020. term loan b bears interest at the greater of 12.50 % or libor plus 11.50 % and has a final maturity of february 24 , 2020. on march 8 , 2017 , we made a $ 20,000 second lien secured investment in vc gb holdings ii corp. to support a refinancing and acquisition for generation brands holdings , inc. ( “ generation brands ” ) . the second lien note bears interest at the greater of 9.00 % or libor plus 8.00 % and has a final maturity of february 28 , 2025. on march 16 , 2017 , we made a first lien senior secured investment of $ 38,000 to support the recapitalization of memorial mri & diagnostic , l.l.c . , a provider of multi-modality diagnostic imaging and pain management services . the term loan bears interest at the greater of 9.50 % or libor plus 8.50 % and has a final maturity of march 16 , 2022. on march 28 , 2017 , we made a $ 15,000 of senior secured term loan a and $ 15,000 of senior secured term loan b debt investment to support an acquisition of ezshield , parent inc. , a provider of fraud and identify theft protection services . term loan a bears interest at the greater of 7.75 % or libor plus 6.75 % and has a final maturity of february 26 , 2021. term loan b bears interest at the greater of 12.75 % or libor plus 11.75 % and has a final maturity of february 26 , 2021. on april 7 , 2017 , we made an investment of $ 19,408 to purchase 50.48 % of the subordinated notes in carlyle global market strategies clo 2014-4 , ltd. in a co-investment transaction pathway energy infrastructure fund , inc. , a closed-end fund managed by an affiliate of prospect capital management . on april 20 , 2017 , we made a $ 15,000 first lien senior secured investment to support a refinancing of rgis services , llc , a provider of inventory , merchandising and staffing solutions . the senior secured term loan bears interest at the greater of 8.50 % or libor plus 7.50 % and has a final maturity of march 31 , 2023. on may 4 , 2017 , we provided $ 64,500 of senior secured financing , of which $ 62,500 was funded at closing , to support the acquisition of rme group holdings company , a provider of client acquisition and lead generation services to professional service firms . the $ 2,000 unfunded revolver bears interest in at the greater of 9.00 % or libor plus 8.00 % and has a final maturity of august 4 , 2017. the $ 37,500 term loan a bears interest at the greater of 7.00 % or libor plus 6.00 % and has a final maturity of may 4 , 2022. the $ 25,000 term loan b bears interest at the greater of 12.00 % or libor plus 11.00 % and has a final maturity of may 4 , 2022. on may 18 , 2017 , we made a $ 50,000 second lien secured investment to support kepro 's refinancing and acquisition of keystone acquisition corp. the second lien term loan bears interest at the greater of 10.25 % or libor plus 9.25 % and has a final maturity of may 1 , 2025. on june 13 , 2017 , we made an investment of $ 44,900 to purchase 84.21 % of the subordinated notes in voya clo 2017-3 , ltd. in a co-investment transaction with priority income fund , inc. , a closed-end fund managed by an affiliate of prospect capital management l.p. during the year ended june 30 , 2017 , we made twelve follow-on investments in nprc totaling $ 123,506 to support the online consumer lending initiative . we invested $ 23,077 of equity through nph and $ 100,429 of debt directly to nprc and its wholly-owned subsidiaries . we also provided $ 75,591 of debt and $ 25,200 of equity financing to nprc , which was utilized for the acquisition of real estate properties . in addition , we provided $ 13,553 of equity investment which was used to fund capital expenditures for existing properties . during the year ended june 30 , 2017 , we purchased $ 51,802 of small business whole loans from ondeck . during the year ended june 30 , 2017 , we received full repayments on twenty-one investments , sold six investments , and received several partial prepayments and amortization payments totaling $ 1,413,882 , which

additionally , we plan to continue to focus on key market adjacencies where we believe we can drive additional long-term growth by employing our unique business model and customer value proposition . these adjacencies include digital marketing services , new geographic markets , personalized products for home and family usage , and up-market customers . the strategy for growth in our core micro business marketing opportunity is to make investments and drive success in the following areas : customer value proposition . we believe our customers currently spend only a small portion of their annual budget for marketing products and services with us . by shifting our success metrics from transactionally focused profit measures to longer-term customer satisfaction and economic measures , we believe we can deliver improvements to our customer experience and value proposition that will significantly increase customer loyalty and lifetime value . examples of these programs include improving the customer experience on our site , such as ease of use , less cross selling before customers reach the checkout , and expanded customer service . lifetime value based marketing . we have traditionally acquired customers by targeting micro businesses who are already shopping online through marketing channels such as search marketing , email marketing , and other online advertising . we believe a significant portion of micro businesses in our core markets do not currently use online providers of marketing services . by investing more deeply into existing marketing channels , as well as opening up new channels such as television broadcast and direct mail , we believe we can accelerate our new customer growth and reach offline audiences that are not currently looking to online partners for marketing needs . world class manufacturing . we believe our manufacturing processes are best-in-class when it comes to the printing industry . but when compared to the best manufacturing 39 companies in the world , we believe there is significant opportunity to drive further efficiencies and competitive advantages . by focusing additional top engineering talent on key process approaches , we believe we can make a step-function improvement in product quality and reliability , and significantly lower unit manufacturing costs . our strategy to drive longer-term growth by addressing market adjacencies is to develop our business in the following areas : digital marketing services . we estimate that less than 50 % of micro businesses have a website today , but digital marketing services , including websites , email marketing , online search marketing and social media marketing , are the fastest-growing part of the small business marketing space . we believe there is great value in helping customers understand the powerful ways in which physical and digital marketing can be combined . our current offering includes websites , email marketing , and local search visibility . additionally , in fiscal 2011 , we added several digital marketing services products or enhancements , including blogs , a search engine optimization tool for website customers , and personalized email domain names . since we launched digital marketing services in april 2008 , our number of unique paying digital subscribers has grown to approximately 335,000. geographies outside north america and europe . for the fiscal year ended june 30 , 2011 , revenue generated outside of north america and europe accounted for approximately 5 % of our total revenue . we believe that we have significant opportunity to expand our revenue both in the countries we currently service and in new markets . we completed construction of a production facility near melbourne , australia and launched a marketing office in sydney , australia in june 2010 to better support our business and customers in asia pacific . we intend to further extend our geographic reach by continuing to introduce localized websites in different countries and languages , expanding our marketing efforts and customer service capabilities , and offering graphic design content , products , payment methodologies and languages specific to local markets . home and family . although we expect to maintain our primary focus on micro business marketing products and services , we also participate in the market for customized home and family products such as invitations , announcements , calendars , holiday cards and apparel . we intend to add new products and services targeted at the home and family market . we believe that the economies of scale provided by cross selling these products to our extensive micro business customer base , our large production order volumes and integrated design and production software and facilities support and will continue to support our effort to profitably grow our home and family business . up-market customers . we serve customers across the spectrum of micro businesses with fewer than 10 employees , but our strength has traditionally been in the smallest and most price sensitive of these customers . the “up-market” portion of this spectrum tend to have more sophisticated marketing needs , typically spend more per year on their marketing activities and often have 3 to 10 employees in comparison to our current customer base which is concentrated in businesses with 2 or fewer employees . we believe that as we continue to research customer needs and make customer value proposition improvements for our traditional core customer base , we will develop a stronger ability to focus on “up-market” small business customers . we expect this adjacency can serve as a driver of longer-term growth 3 to 5 years from now . critical accounting policies and estimates our financial statements are prepared in accordance with u.s. generally accepted accounting principles ( “gaap” ) . to apply these principles , we must make estimates and judgments that affect our 40 reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . story_separator_special_tag the increase in our technology and development expenses of $ 17.5 million for fiscal 2010 as compared to fiscal 2009 was primarily due to increased payroll and benefit costs of $ 10.4 million associated with increased headcount in our technology development and information technology support organizations . at june 30 , 2010 , we employed 375 employees in these organizations compared to 302 employees at june 30 , 2009. in addition , to support our continued revenue growth during this period , we continued to invest in our website infrastructure , which resulted in increased depreciation and hosting services expense of $ 2.4 million , increased third-party consulting services of $ 0.8 million , and increased other expenses of $ 3.0 million for fiscal 2010 as compared to fiscal 2009. fiscal 2010 included $ 0.9 million of expense related to certain acquired intangibles recorded in conjunction with the soft sight acquisition that were determined not to have an economic use for vistaprint and were abandoned . marketing and selling expense marketing and selling expense consists primarily of advertising and promotional costs ; payroll and related expenses for our employees engaged in marketing , sales , customer support and public relations activities ; and third-party payment processing fees . the increase in our marketing and selling expenses of $ 55.3 million for fiscal 2011 as compared to fiscal 2010 was driven primarily by increases of $ 41.9 million in advertising costs and commissions related to new customer acquisition and costs of promotions targeted at our existing customer base , and increases in payroll and facility-related costs of $ 11.4 million . we continued to expand our marketing organization and our customer service , sales and design support centers and at june 30 , 2011 , we employed 1,017 employees in these organizations compared to 806 employees at june 30 , 2010. in addition , payment processing fees paid to third parties increased by $ 3.2 million during fiscal 2011 , as compared to fiscal 2010 due primarily to increased order volumes . these increases were partially offset by a charge of $ 1.5 million related to indirect taxes that is included in the fiscal year ended june 30 , 2010. the increase in our marketing and selling expenses of $ 57.4 million for fiscal 2010 as compared to fiscal 2009 was driven primarily by increases of $ 39.5 million in advertising costs and commissions related to new customer acquisition and costs of promotions targeted at our existing customer base , and increases in payroll and benefits related costs of $ 12.9 million . during this period , we continued to expand our marketing organization and our customer service , sales and design support centers including the addition of our facilities in berlin , germany and tunis , tunisia . at june 30 , 2010 , we employed 806 employees in these organizations compared to 609 employees at june 30 , 2009. in addition , payment processing fees paid to third-parties increased by $ 2.8 million during fiscal 2010 , as compared to fiscal 2009 due to increased order volumes . 46 general and administrative expense general and administrative expense consists primarily of general corporate costs , including third-party professional fees , insurance and payroll and related expenses of employees involved in executive management , finance , legal , and human resources . the increase in our general and administrative expenses of $ 12.6 million for fiscal 2011 as compared to fiscal 2010 was primarily due to increased payroll and facility-related costs of $ 12.8 million resulting from the continued investment in our general and administrative organizations to support our expansion and growth . at june 30 , 2011 , we employed 267 employees in these organizations compared to 199 employees at june 30 , 2010. these increases were offset by decreased third-party professional fees of $ 0.8 million during fiscal 2011 as compared to fiscal 2010 due primarily to the completion of our change of domicile to the netherlands and decreased costs of ongoing litigation and other general and administrative activities . the increase in our general and administrative expenses of $ 15.8 million for fiscal 2010 as compared to fiscal 2009 was primarily due to increased payroll and benefit costs of $ 8.0 million resulting from the continued growth of our executive management , finance , legal and human resource organizations to support our expansion and growth , and increased third-party professional fees of $ 5.6 million related to ongoing litigation , the execution of our change of domicile to the netherlands , and other general and administrative activities including recruitment . at june 30 , 2010 , we employed 199 employees in these organizations compared to 141 employees at june 30 , 2009. the increase in headcount has resulted in an increase in allocated overhead of $ 1.1 million as compared to fiscal 2009. interest income interest income , which consists of interest earned on cash , cash equivalents and marketable securities , was $ 0.4 million , $ 0.4 million and $ 1.7 million during fiscal 2011 , 2010 and 2009 , respectively . the decrease in interest income is attributable to the decline in interest rates on a year-over-year basis , partially offset by higher levels of interest bearing assets . other expense , net other expense , net , which primarily consists of gains and losses from currency transactions or revaluation and realized gains and losses related to our marketable securities , was $ 2.2 million , $ 1.5 million , and $ 0.8 million for fiscal 2011 , 2010 and 2009 , respectively . increases in other expense , net are primarily due to currency exchange rate fluctuations on transactions or balances denominated in currencies other than the functional currency of our subsidiaries . interest expense interest expense , which consists of interest and penalties , if any , paid to financial institutions on outstanding balances on our credit facilities , was $ 0.2 million

cash outflows : repurchases of our ordinary shares of $ 56.9 million ; capital expenditures of $ 37.4 million of which $ 16.2 million were related to the purchase of manufacturing and automation equipment for our production facilities , $ 11.2 million were related to the purchase of land and facilities , and $ 10.0 million were related to purchases of other assets including information technology infrastructure and office equipment ; internal costs for software and website development that we have capitalized of $ 6.3 million ; payments of the minimum withholding taxes related to shares withheld on vested restricted stock units of $ 5.7 million ; and payments in connection with our loan facility of $ 5.2 million , which included the final balloon payment on our amended canadian credit agreement in december 2010. additional liquidity and capital resources information . during fiscal 2011 , we financed our operations primarily through internally generated cash flows from operations . we believe that our available cash , cash flows generated from operations and our debt financing capacity will be sufficient to satisfy our working capital and planned investments to support our new growth strategy including capital expenditure requirements for the foreseeable future . we currently plan to invest approximately $ 75 million to $ 95 million on capital expenditures in fiscal 2012 , primarily due to plans to expand our manufacturing capacity in europe , construction of our jamaican customer service , sales and design support center , and other it and manufacturing equipment requirements to support our growth .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```cash outflows : repurchases of our ordinary shares of $ 56.9 million ; capital expenditures of $ 37.4 million of which $ 16.2 million were related to the purchase of manufacturing and automation equipment for our production facilities , $ 11.2 million were related to the purchase of land and facilities , and $ 10.0 million were related to purchases of other assets including information technology infrastructure and office equipment ; internal costs for software and website development that we have capitalized of $ 6.3 million ; payments of the minimum withholding taxes related to shares withheld on vested restricted stock units of $ 5.7 million ; and payments in connection with our loan facility of $ 5.2 million , which included the final balloon payment on our amended canadian credit agreement in december 2010. additional liquidity and capital resources information . during fiscal 2011 , we financed our operations primarily through internally generated cash flows from operations . we believe that our available cash , cash flows generated from operations and our debt financing capacity will be sufficient to satisfy our working capital and planned investments to support our new growth strategy including capital expenditure requirements for the foreseeable future . we currently plan to invest approximately $ 75 million to $ 95 million on capital expenditures in fiscal 2012 , primarily due to plans to expand our manufacturing capacity in europe , construction of our jamaican customer service , sales and design support center , and other it and manufacturing equipment requirements to support our growth . ``` Suspicious Activity Report : additionally , we plan to continue to focus on key market adjacencies where we believe we can drive additional long-term growth by employing our unique business model and customer value proposition . these adjacencies include digital marketing services , new geographic markets , personalized products for home and family usage , and up-market customers . the strategy for growth in our core micro business marketing opportunity is to make investments and drive success in the following areas : customer value proposition . we believe our customers currently spend only a small portion of their annual budget for marketing products and services with us . by shifting our success metrics from transactionally focused profit measures to longer-term customer satisfaction and economic measures , we believe we can deliver improvements to our customer experience and value proposition that will significantly increase customer loyalty and lifetime value . examples of these programs include improving the customer experience on our site , such as ease of use , less cross selling before customers reach the checkout , and expanded customer service . lifetime value based marketing . we have traditionally acquired customers by targeting micro businesses who are already shopping online through marketing channels such as search marketing , email marketing , and other online advertising . we believe a significant portion of micro businesses in our core markets do not currently use online providers of marketing services . by investing more deeply into existing marketing channels , as well as opening up new channels such as television broadcast and direct mail , we believe we can accelerate our new customer growth and reach offline audiences that are not currently looking to online partners for marketing needs . world class manufacturing . we believe our manufacturing processes are best-in-class when it comes to the printing industry . but when compared to the best manufacturing 39 companies in the world , we believe there is significant opportunity to drive further efficiencies and competitive advantages . by focusing additional top engineering talent on key process approaches , we believe we can make a step-function improvement in product quality and reliability , and significantly lower unit manufacturing costs . our strategy to drive longer-term growth by addressing market adjacencies is to develop our business in the following areas : digital marketing services . we estimate that less than 50 % of micro businesses have a website today , but digital marketing services , including websites , email marketing , online search marketing and social media marketing , are the fastest-growing part of the small business marketing space . we believe there is great value in helping customers understand the powerful ways in which physical and digital marketing can be combined . our current offering includes websites , email marketing , and local search visibility . additionally , in fiscal 2011 , we added several digital marketing services products or enhancements , including blogs , a search engine optimization tool for website customers , and personalized email domain names . since we launched digital marketing services in april 2008 , our number of unique paying digital subscribers has grown to approximately 335,000. geographies outside north america and europe . for the fiscal year ended june 30 , 2011 , revenue generated outside of north america and europe accounted for approximately 5 % of our total revenue . we believe that we have significant opportunity to expand our revenue both in the countries we currently service and in new markets . we completed construction of a production facility near melbourne , australia and launched a marketing office in sydney , australia in june 2010 to better support our business and customers in asia pacific . we intend to further extend our geographic reach by continuing to introduce localized websites in different countries and languages , expanding our marketing efforts and customer service capabilities , and offering graphic design content , products , payment methodologies and languages specific to local markets . home and family . although we expect to maintain our primary focus on micro business marketing products and services , we also participate in the market for customized home and family products such as invitations , announcements , calendars , holiday cards and apparel . we intend to add new products and services targeted at the home and family market . we believe that the economies of scale provided by cross selling these products to our extensive micro business customer base , our large production order volumes and integrated design and production software and facilities support and will continue to support our effort to profitably grow our home and family business . up-market customers . we serve customers across the spectrum of micro businesses with fewer than 10 employees , but our strength has traditionally been in the smallest and most price sensitive of these customers . the “up-market” portion of this spectrum tend to have more sophisticated marketing needs , typically spend more per year on their marketing activities and often have 3 to 10 employees in comparison to our current customer base which is concentrated in businesses with 2 or fewer employees . we believe that as we continue to research customer needs and make customer value proposition improvements for our traditional core customer base , we will develop a stronger ability to focus on “up-market” small business customers . we expect this adjacency can serve as a driver of longer-term growth 3 to 5 years from now . critical accounting policies and estimates our financial statements are prepared in accordance with u.s. generally accepted accounting principles ( “gaap” ) . to apply these principles , we must make estimates and judgments that affect our 40 reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . story_separator_special_tag the increase in our technology and development expenses of $ 17.5 million for fiscal 2010 as compared to fiscal 2009 was primarily due to increased payroll and benefit costs of $ 10.4 million associated with increased headcount in our technology development and information technology support organizations . at june 30 , 2010 , we employed 375 employees in these organizations compared to 302 employees at june 30 , 2009. in addition , to support our continued revenue growth during this period , we continued to invest in our website infrastructure , which resulted in increased depreciation and hosting services expense of $ 2.4 million , increased third-party consulting services of $ 0.8 million , and increased other expenses of $ 3.0 million for fiscal 2010 as compared to fiscal 2009. fiscal 2010 included $ 0.9 million of expense related to certain acquired intangibles recorded in conjunction with the soft sight acquisition that were determined not to have an economic use for vistaprint and were abandoned . marketing and selling expense marketing and selling expense consists primarily of advertising and promotional costs ; payroll and related expenses for our employees engaged in marketing , sales , customer support and public relations activities ; and third-party payment processing fees . the increase in our marketing and selling expenses of $ 55.3 million for fiscal 2011 as compared to fiscal 2010 was driven primarily by increases of $ 41.9 million in advertising costs and commissions related to new customer acquisition and costs of promotions targeted at our existing customer base , and increases in payroll and facility-related costs of $ 11.4 million . we continued to expand our marketing organization and our customer service , sales and design support centers and at june 30 , 2011 , we employed 1,017 employees in these organizations compared to 806 employees at june 30 , 2010. in addition , payment processing fees paid to third parties increased by $ 3.2 million during fiscal 2011 , as compared to fiscal 2010 due primarily to increased order volumes . these increases were partially offset by a charge of $ 1.5 million related to indirect taxes that is included in the fiscal year ended june 30 , 2010. the increase in our marketing and selling expenses of $ 57.4 million for fiscal 2010 as compared to fiscal 2009 was driven primarily by increases of $ 39.5 million in advertising costs and commissions related to new customer acquisition and costs of promotions targeted at our existing customer base , and increases in payroll and benefits related costs of $ 12.9 million . during this period , we continued to expand our marketing organization and our customer service , sales and design support centers including the addition of our facilities in berlin , germany and tunis , tunisia . at june 30 , 2010 , we employed 806 employees in these organizations compared to 609 employees at june 30 , 2009. in addition , payment processing fees paid to third-parties increased by $ 2.8 million during fiscal 2010 , as compared to fiscal 2009 due to increased order volumes . 46 general and administrative expense general and administrative expense consists primarily of general corporate costs , including third-party professional fees , insurance and payroll and related expenses of employees involved in executive management , finance , legal , and human resources . the increase in our general and administrative expenses of $ 12.6 million for fiscal 2011 as compared to fiscal 2010 was primarily due to increased payroll and facility-related costs of $ 12.8 million resulting from the continued investment in our general and administrative organizations to support our expansion and growth . at june 30 , 2011 , we employed 267 employees in these organizations compared to 199 employees at june 30 , 2010. these increases were offset by decreased third-party professional fees of $ 0.8 million during fiscal 2011 as compared to fiscal 2010 due primarily to the completion of our change of domicile to the netherlands and decreased costs of ongoing litigation and other general and administrative activities . the increase in our general and administrative expenses of $ 15.8 million for fiscal 2010 as compared to fiscal 2009 was primarily due to increased payroll and benefit costs of $ 8.0 million resulting from the continued growth of our executive management , finance , legal and human resource organizations to support our expansion and growth , and increased third-party professional fees of $ 5.6 million related to ongoing litigation , the execution of our change of domicile to the netherlands , and other general and administrative activities including recruitment . at june 30 , 2010 , we employed 199 employees in these organizations compared to 141 employees at june 30 , 2009. the increase in headcount has resulted in an increase in allocated overhead of $ 1.1 million as compared to fiscal 2009. interest income interest income , which consists of interest earned on cash , cash equivalents and marketable securities , was $ 0.4 million , $ 0.4 million and $ 1.7 million during fiscal 2011 , 2010 and 2009 , respectively . the decrease in interest income is attributable to the decline in interest rates on a year-over-year basis , partially offset by higher levels of interest bearing assets . other expense , net other expense , net , which primarily consists of gains and losses from currency transactions or revaluation and realized gains and losses related to our marketable securities , was $ 2.2 million , $ 1.5 million , and $ 0.8 million for fiscal 2011 , 2010 and 2009 , respectively . increases in other expense , net are primarily due to currency exchange rate fluctuations on transactions or balances denominated in currencies other than the functional currency of our subsidiaries . interest expense interest expense , which consists of interest and penalties , if any , paid to financial institutions on outstanding balances on our credit facilities , was $ 0.2 million

studies have shown that inhibition of polo-like-kinases can lead to tumor cell death , including a phase 2 study in aml where response rates with a prior plk inhibitor of up to 31 % were observed when used in conjunction with a standard therapy for aml ( low-dose cytarabine ( “ ldac ” ) ) versus a 13.3 % response rate with ldac alone . we believe the more selective nature of onvansertib to plk1 , its 24-hour half-life and oral bioavailability , as well as its demonstrated safety and tolerability , with expected on-target , easy to manage and reversible side effects , may prove useful in addressing clinical therapeutic needs across a variety of cancers . onvansertib has been tested in-vivo in different xenograft and transgenic models suggesting tumor growth inhibition or tumor regression when used in combination with other therapies . onvansertib has been tested for antiproliferative activity on a panel of 148 tumor cell lines and appeared highly active with an ic 50 ( a measure concentration for 50 % target inhibition ) below 100 nm in 75 cell lines and ic 50 values below 1 um in 133 out of 148 cell lines . onvansertib also appears active in cells expressing multi-drug resistant ( “ mdr ” ) transporter proteins and we believe its apparent ability to overcome the mdr transporter resistance mechanism in cancer cells could prove useful in broader drug combination applications . in in-vitro and in-vivo preclinical studies , synergy ( interaction of discrete drugs such that the total effect is greater than the sum of the individual effects ) has been demonstrated with onvansertib when used in combination with numerous different chemotherapies , including cisplatin , cytarabine , doxorubicin , gemcitabine and paclitaxel , as well as targeted therapeutics , such as abiraterone acetate ( zytiga ® ) , histone deacetylase ( “ hdac ” ) inhibitors , such as belinostat ( beleodaq ® ) , quizartinib ( ac220 ) , a development stage flt3 inhibitor , and bortezomib ( velcade ® ) . these therapies are used clinically for the treatment of leukemias , lymphomas and solid tumor cancers , including aml , non-hodgkin lymphoma ( “ nhl ” ) , mcrpc , mcrc , and triple negative breast cancer ( “ tnbc ” ) . we achieved a number of key milestones throughout 2019 and anticipate achieving additional milestones through the end of 2020 : phase 2 trial of onvansertib in combination with abiraterone acetate ( zytiga ® ) and prednisone for the treatment of metastatic castration-resistant prostate cancer initiated enrollment and evaluation of 3 safety lead-in patients in the second arm ( 2-week dosing schedule ) with onvansertib at 18 mg/m 2 in combination with abiraterone acetate ( zytiga ) and prednisone . provide safety and preliminary efficacy data of onvansertib in combination with abiraterone acetate ( zytiga ® ) and prednisone in patients treated through the end of 2019 and into 2020 . 40 presented data from the mcrpc trial at key oncology conferences throughout 2019 , including the asia-pacific prostate cancer conference ( `` appc `` ) , and first quarter of 2020 including asco-gu . phase 1b/2 trial of onvansertib in combination with folfiri and bevacizumab ( avastin ® ) for second-line treatment of metastatic colorectal cancer with a kras mutation completed enrollment and evaluation of the initial dose level cohort of onvansertib 12 mg/m 2 and fully enrolled the second dose level ( onvansertib 15 mg/m 2 ) cohort . presented data from the mcrc trial at key oncology conferences throughout 2019 , including the european society for medical oncology ( “ esmo ” ) , and first quarter of 2020 including asco-gi . phase 1b/2 trial of onvansertib in combination with either low-dose cytarabine or decitabine for the treatment of acute myeloid leukemia completed phase 1b dose escalation safety segment of trial , identified the recommended phase 2 dose ( “ rp2d ” ) of onvansertib at 60mg/m 2 . initiated the phase 2 segment of the aml trial , which will enroll approximately 32 patients , for continued evaluation of safety and efficacy of onvansertib in combination with decitabine . presented data from the aml trial at key oncology conferences , including the european society for medical oncology ( `` esmo `` ) and the american society of hematology ( “ ash ” ) annual meetings . during 2019 , we advanced our business with the following activities : announced positive data presented in an oral session at the american society of hematology ( “ ash ” ) conference response to treatment in patients with acute myeloid leukemia . on december 9 , 2019 , we announced the presentation of data demonstrating efficacy , durability of response and safety of onvansertib from the completed phase 1b segment of the ongoing trial in acute myeloid leukemia , in an oral session at ash . efficacy was observed in patients treated at onvansertib doses ranging from 27 to 90 mg/m 2 , with a complete response ( cr ) and cr with incomplete count recovery ( cri ) rate of 31 % ( 5 out of 16 patients ) . treatment was well tolerated ; adverse events related to onvansertib were primarily on-target hematological ( based on mechanism of action ) and were easily managed and reversible . biomarker positive patients showed a higher response to treatment ; 67 % ( 4 out of 6 ) patients had marked decreases in bone marrow blast cells vs only 18 % ( 1 out of 11 ) biomarker negative patients . announced data showing the ability of onvanserib to rescue patients previously treated with , and resistant to , venetoclax in acute myeloid leukemia . on december 4 , 2019 , we announced data showing the ability of onvansertib to rescue venetoclax-resistant aml patients . story_separator_special_tag the decrease in value was recorded as non-operating gain for the year ended december 31 , 2019 . net loss net loss and per share amounts were as follows : replace_table_token_3_th the $ 2,548,283 decrease in net loss attributable to common shareholders was primarily the result of a decrease in series b deemed dividend expense of $ 2,769,533 , and a decrease in operating expenses of $ 508,611 offset by a decrease in gain from change in fair value of derivative financial instruments-warrants of $ 588,884 for the for the year ended december 31 , 2019 as compared to the same period of 2018. the $ 5.46 decrease in basic and diluted net loss per share was impacted by the decrease in net loss attributable to shareholders and the increase in basic weighted average shares outstanding resulting primarily from the sales of approximately 3.9 million shares of common stock and common stock equivalents through public and direct offerings , issuance of approximately 0.5 million shares of common stock upon exercise of warrants , and 0.3 million shares of common stock upon conversion of series c convertible preferred stock . 46 liquidity and capital resources as of december 31 , 2019 , we had $ 10,195,292 in cash and cash equivalents . net cash used in operating activities for the year ended december 31 , 2019 was $ 13,267,500 , compared to $ 13,199,013 for the year ended december 31 , 2018 . our use of cash was primarily a result of the net loss of $ 16,414,159 for the year ended december 31 , 2019 , adjusted for items mainly related to stock-based compensation of $ 884,943 , release of clinical trial funding commitment of $ 703,327 , and depreciation and amortization of $ 494,232 . the changes in our operating assets and liabilities consisted primarily of higher accounts payable and accrued expenses . at our current and anticipated levels of operating losses , we expect to continue to incur an operating cash outflow for the next several years . as of december 31 , 2019 and 2018 , we had working capital of $ 6,571,985 and $ 9,841,947 , respectively . the decrease in working capital is primarily due to the decrease in cash and cash equivalents and an increase in accrued liabilities . net cash ( used ) /provided by investing activities was $ ( 67,622 ) and $ 22,842 for the years ended december 31 , 2019 and 2018 , respectively . investing activities during the year ended december 31 , 2019 consisted primarily of the purchase of capital equipment of $ 67,622 , while investing activities during the year ended december 31 , 2018 consisted primarily of cash provided by disposal of capital equipment of $ 27,942 . story_separator_special_tag style= `` line-height:120 % ; text-indent:48px ; font-size:10pt ; `` > on may 10 , 2019 , we entered into a securities purchase agreement with lpc , gross proceeds were approximately $ 1.5 million . the may 2019 securities purchase agreement consisted of ( i ) 458,015 shares of common stock ( including pre-funded warrants ) at a purchase price of $ 3.275 per share and ( ii ) 458,015 series d warrants with an exercise price of $ 3.15 per share , expiring on november 12 , 2024. none of the series d warrants have been exercised as of february 20 , 2020. on august 20 , 2019 , we entered into a securities purchase agreement with lpc , gross proceeds were approximately $ 1.5 million . the august 2019 securities purchase agreement consisted of ( i ) 727,802 shares of common stock ( including pre-funded warrants ) at a purchase price of $ 2.061 per share and ( ii ) 727,802 series f warrants with an exercise price of $ 1.936 per share , expiring on february 24 , 2025. none of the series f warrants have been exercised as of february 20 , 2020. on october 30 , 2019 , we closed a private placement with certain institutional investors for gross proceeds of approximately $ 5.0 million . we sold an aggregate of ( i ) 2,756,340 shares of common stock ( including pre-funded warrants ) at a purchase price of $ 1.814 per share , ( ii ) 2,756,340 series g warrants with an exercise price of $ 1.56 per share , expiring on april 30 , 2025 , ( iii ) 2,756,340 series h warrants with an exercise price of $ 1.56 per share , expiring on april 30 , 2021 , and ( iv ) 206,726 placement agent warrants at an exercise price of $ 2.2675 per share , expiring on april 30 , 2025. none of the series g or placement agent warrants have been exercised as of february 20 , 2020. we received net proceeds of approximately $ 1.5 million from the exercise of 1,005,072 series h warrants on january 27 , 2020. nasdaq notice on september 5 , 2017 , we received a written notice from nasdaq notifying us that we were not in compliance with nasdaq listing rule 5550 ( a ) ( 2 ) for continued listing on the nasdaq capital market , as the minimum bid price of our common stock had been below $ 1.00 per share for 30 consecutive business days . the notice had no immediate effect on the listing of our common stock , and our common stock continued to trade on the nasdaq capital market under the symbol “ trov ” . in accordance with nasdaq listing rule 5810 ( c ) ( 3 ) ( a ) , we had until march 5 , 2018 , to regain compliance with the minimum bid price requirement . on march 6 , 2018 , nasdaq informed us that we were eligible for an additional 180 calendar day period until september 4 , 2018 to regain compliance with the minimum $ 1.00 bid price per share requirement . to regain compliance ,

net cash provided by financing activities was $ 12,077,281 during the year ended december 31 , 2019 , compared to $ 16,403,540 provided in financing activities during the year ended december 31 , 2018 . financing activities during the year ended december 31 , 2019 related primarily to sales of common stock , warrants and proceeds from exercise of warrants . financing activities during the year ended december 31 , 2018 related primarily to sales of common stock and series b convertible preferred stock and proceeds from exercise of warrants , offset by the pay-off of our equipment line of credit . based on our current business plan and assumptions , we expect to continue to incur significant losses and require significant additional capital to further advance our clinical trial programs and support our other operations . considering our current cash resources , we believe our existing resources will be sufficient to fund our planned operations into third quarter of 2020. in addition , we have based our cash sufficiency estimates on our current business plan and assumptions that may prove to be wrong . we could utilize our available capital resources sooner than we currently expect , and we could need additional funding to sustain our operations even sooner than currently anticipated . these circumstances raise substantial doubt about our ability to continue as a going concern . our working capital requirements will depend upon numerous factors including but not limited to the nature , cost and timing of our research and development programs . to date , our sources of cash have been primarily limited to the sale of equity securities . we can not be certain that additional funding will be available on acceptable terms , or at all . to the extent that we raise additional funds by issuing equity securities , our stockholders may experience significant dilution . if we are unable to raise additional capital when required or on acceptable terms , we may have to significantly delay , scale back or discontinue the development and or commercialization of one or more product candidates , all of which may have a material adverse impact on our operations .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```net cash provided by financing activities was $ 12,077,281 during the year ended december 31 , 2019 , compared to $ 16,403,540 provided in financing activities during the year ended december 31 , 2018 . financing activities during the year ended december 31 , 2019 related primarily to sales of common stock , warrants and proceeds from exercise of warrants . financing activities during the year ended december 31 , 2018 related primarily to sales of common stock and series b convertible preferred stock and proceeds from exercise of warrants , offset by the pay-off of our equipment line of credit . based on our current business plan and assumptions , we expect to continue to incur significant losses and require significant additional capital to further advance our clinical trial programs and support our other operations . considering our current cash resources , we believe our existing resources will be sufficient to fund our planned operations into third quarter of 2020. in addition , we have based our cash sufficiency estimates on our current business plan and assumptions that may prove to be wrong . we could utilize our available capital resources sooner than we currently expect , and we could need additional funding to sustain our operations even sooner than currently anticipated . these circumstances raise substantial doubt about our ability to continue as a going concern . our working capital requirements will depend upon numerous factors including but not limited to the nature , cost and timing of our research and development programs . to date , our sources of cash have been primarily limited to the sale of equity securities . we can not be certain that additional funding will be available on acceptable terms , or at all . to the extent that we raise additional funds by issuing equity securities , our stockholders may experience significant dilution . if we are unable to raise additional capital when required or on acceptable terms , we may have to significantly delay , scale back or discontinue the development and or commercialization of one or more product candidates , all of which may have a material adverse impact on our operations . ``` Suspicious Activity Report : studies have shown that inhibition of polo-like-kinases can lead to tumor cell death , including a phase 2 study in aml where response rates with a prior plk inhibitor of up to 31 % were observed when used in conjunction with a standard therapy for aml ( low-dose cytarabine ( “ ldac ” ) ) versus a 13.3 % response rate with ldac alone . we believe the more selective nature of onvansertib to plk1 , its 24-hour half-life and oral bioavailability , as well as its demonstrated safety and tolerability , with expected on-target , easy to manage and reversible side effects , may prove useful in addressing clinical therapeutic needs across a variety of cancers . onvansertib has been tested in-vivo in different xenograft and transgenic models suggesting tumor growth inhibition or tumor regression when used in combination with other therapies . onvansertib has been tested for antiproliferative activity on a panel of 148 tumor cell lines and appeared highly active with an ic 50 ( a measure concentration for 50 % target inhibition ) below 100 nm in 75 cell lines and ic 50 values below 1 um in 133 out of 148 cell lines . onvansertib also appears active in cells expressing multi-drug resistant ( “ mdr ” ) transporter proteins and we believe its apparent ability to overcome the mdr transporter resistance mechanism in cancer cells could prove useful in broader drug combination applications . in in-vitro and in-vivo preclinical studies , synergy ( interaction of discrete drugs such that the total effect is greater than the sum of the individual effects ) has been demonstrated with onvansertib when used in combination with numerous different chemotherapies , including cisplatin , cytarabine , doxorubicin , gemcitabine and paclitaxel , as well as targeted therapeutics , such as abiraterone acetate ( zytiga ® ) , histone deacetylase ( “ hdac ” ) inhibitors , such as belinostat ( beleodaq ® ) , quizartinib ( ac220 ) , a development stage flt3 inhibitor , and bortezomib ( velcade ® ) . these therapies are used clinically for the treatment of leukemias , lymphomas and solid tumor cancers , including aml , non-hodgkin lymphoma ( “ nhl ” ) , mcrpc , mcrc , and triple negative breast cancer ( “ tnbc ” ) . we achieved a number of key milestones throughout 2019 and anticipate achieving additional milestones through the end of 2020 : phase 2 trial of onvansertib in combination with abiraterone acetate ( zytiga ® ) and prednisone for the treatment of metastatic castration-resistant prostate cancer initiated enrollment and evaluation of 3 safety lead-in patients in the second arm ( 2-week dosing schedule ) with onvansertib at 18 mg/m 2 in combination with abiraterone acetate ( zytiga ) and prednisone . provide safety and preliminary efficacy data of onvansertib in combination with abiraterone acetate ( zytiga ® ) and prednisone in patients treated through the end of 2019 and into 2020 . 40 presented data from the mcrpc trial at key oncology conferences throughout 2019 , including the asia-pacific prostate cancer conference ( `` appc `` ) , and first quarter of 2020 including asco-gu . phase 1b/2 trial of onvansertib in combination with folfiri and bevacizumab ( avastin ® ) for second-line treatment of metastatic colorectal cancer with a kras mutation completed enrollment and evaluation of the initial dose level cohort of onvansertib 12 mg/m 2 and fully enrolled the second dose level ( onvansertib 15 mg/m 2 ) cohort . presented data from the mcrc trial at key oncology conferences throughout 2019 , including the european society for medical oncology ( “ esmo ” ) , and first quarter of 2020 including asco-gi . phase 1b/2 trial of onvansertib in combination with either low-dose cytarabine or decitabine for the treatment of acute myeloid leukemia completed phase 1b dose escalation safety segment of trial , identified the recommended phase 2 dose ( “ rp2d ” ) of onvansertib at 60mg/m 2 . initiated the phase 2 segment of the aml trial , which will enroll approximately 32 patients , for continued evaluation of safety and efficacy of onvansertib in combination with decitabine . presented data from the aml trial at key oncology conferences , including the european society for medical oncology ( `` esmo `` ) and the american society of hematology ( “ ash ” ) annual meetings . during 2019 , we advanced our business with the following activities : announced positive data presented in an oral session at the american society of hematology ( “ ash ” ) conference response to treatment in patients with acute myeloid leukemia . on december 9 , 2019 , we announced the presentation of data demonstrating efficacy , durability of response and safety of onvansertib from the completed phase 1b segment of the ongoing trial in acute myeloid leukemia , in an oral session at ash . efficacy was observed in patients treated at onvansertib doses ranging from 27 to 90 mg/m 2 , with a complete response ( cr ) and cr with incomplete count recovery ( cri ) rate of 31 % ( 5 out of 16 patients ) . treatment was well tolerated ; adverse events related to onvansertib were primarily on-target hematological ( based on mechanism of action ) and were easily managed and reversible . biomarker positive patients showed a higher response to treatment ; 67 % ( 4 out of 6 ) patients had marked decreases in bone marrow blast cells vs only 18 % ( 1 out of 11 ) biomarker negative patients . announced data showing the ability of onvanserib to rescue patients previously treated with , and resistant to , venetoclax in acute myeloid leukemia . on december 4 , 2019 , we announced data showing the ability of onvansertib to rescue venetoclax-resistant aml patients . story_separator_special_tag the decrease in value was recorded as non-operating gain for the year ended december 31 , 2019 . net loss net loss and per share amounts were as follows : replace_table_token_3_th the $ 2,548,283 decrease in net loss attributable to common shareholders was primarily the result of a decrease in series b deemed dividend expense of $ 2,769,533 , and a decrease in operating expenses of $ 508,611 offset by a decrease in gain from change in fair value of derivative financial instruments-warrants of $ 588,884 for the for the year ended december 31 , 2019 as compared to the same period of 2018. the $ 5.46 decrease in basic and diluted net loss per share was impacted by the decrease in net loss attributable to shareholders and the increase in basic weighted average shares outstanding resulting primarily from the sales of approximately 3.9 million shares of common stock and common stock equivalents through public and direct offerings , issuance of approximately 0.5 million shares of common stock upon exercise of warrants , and 0.3 million shares of common stock upon conversion of series c convertible preferred stock . 46 liquidity and capital resources as of december 31 , 2019 , we had $ 10,195,292 in cash and cash equivalents . net cash used in operating activities for the year ended december 31 , 2019 was $ 13,267,500 , compared to $ 13,199,013 for the year ended december 31 , 2018 . our use of cash was primarily a result of the net loss of $ 16,414,159 for the year ended december 31 , 2019 , adjusted for items mainly related to stock-based compensation of $ 884,943 , release of clinical trial funding commitment of $ 703,327 , and depreciation and amortization of $ 494,232 . the changes in our operating assets and liabilities consisted primarily of higher accounts payable and accrued expenses . at our current and anticipated levels of operating losses , we expect to continue to incur an operating cash outflow for the next several years . as of december 31 , 2019 and 2018 , we had working capital of $ 6,571,985 and $ 9,841,947 , respectively . the decrease in working capital is primarily due to the decrease in cash and cash equivalents and an increase in accrued liabilities . net cash ( used ) /provided by investing activities was $ ( 67,622 ) and $ 22,842 for the years ended december 31 , 2019 and 2018 , respectively . investing activities during the year ended december 31 , 2019 consisted primarily of the purchase of capital equipment of $ 67,622 , while investing activities during the year ended december 31 , 2018 consisted primarily of cash provided by disposal of capital equipment of $ 27,942 . story_separator_special_tag style= `` line-height:120 % ; text-indent:48px ; font-size:10pt ; `` > on may 10 , 2019 , we entered into a securities purchase agreement with lpc , gross proceeds were approximately $ 1.5 million . the may 2019 securities purchase agreement consisted of ( i ) 458,015 shares of common stock ( including pre-funded warrants ) at a purchase price of $ 3.275 per share and ( ii ) 458,015 series d warrants with an exercise price of $ 3.15 per share , expiring on november 12 , 2024. none of the series d warrants have been exercised as of february 20 , 2020. on august 20 , 2019 , we entered into a securities purchase agreement with lpc , gross proceeds were approximately $ 1.5 million . the august 2019 securities purchase agreement consisted of ( i ) 727,802 shares of common stock ( including pre-funded warrants ) at a purchase price of $ 2.061 per share and ( ii ) 727,802 series f warrants with an exercise price of $ 1.936 per share , expiring on february 24 , 2025. none of the series f warrants have been exercised as of february 20 , 2020. on october 30 , 2019 , we closed a private placement with certain institutional investors for gross proceeds of approximately $ 5.0 million . we sold an aggregate of ( i ) 2,756,340 shares of common stock ( including pre-funded warrants ) at a purchase price of $ 1.814 per share , ( ii ) 2,756,340 series g warrants with an exercise price of $ 1.56 per share , expiring on april 30 , 2025 , ( iii ) 2,756,340 series h warrants with an exercise price of $ 1.56 per share , expiring on april 30 , 2021 , and ( iv ) 206,726 placement agent warrants at an exercise price of $ 2.2675 per share , expiring on april 30 , 2025. none of the series g or placement agent warrants have been exercised as of february 20 , 2020. we received net proceeds of approximately $ 1.5 million from the exercise of 1,005,072 series h warrants on january 27 , 2020. nasdaq notice on september 5 , 2017 , we received a written notice from nasdaq notifying us that we were not in compliance with nasdaq listing rule 5550 ( a ) ( 2 ) for continued listing on the nasdaq capital market , as the minimum bid price of our common stock had been below $ 1.00 per share for 30 consecutive business days . the notice had no immediate effect on the listing of our common stock , and our common stock continued to trade on the nasdaq capital market under the symbol “ trov ” . in accordance with nasdaq listing rule 5810 ( c ) ( 3 ) ( a ) , we had until march 5 , 2018 , to regain compliance with the minimum bid price requirement . on march 6 , 2018 , nasdaq informed us that we were eligible for an additional 180 calendar day period until september 4 , 2018 to regain compliance with the minimum $ 1.00 bid price per share requirement . to regain compliance ,

subsequent to april 29 , 2015 , incuron was accounted for on the cost basis until we sold our remaining interest in incuron on june 30 , 2015. see item 1 , “ business ” for more information on our product candidates and our strategic partnerships . critical accounting policies and estimates 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 accounting principles generally accepted in the u.s. ( `` gaap `` ) . the preparation of these financial statements requires us to make estimates and judgments that affect our reported amounts of assets , liabilities , revenues and expenses . on an ongoing basis , we evaluate our estimates and judgments , including those related to accrued expenses , income taxes , stock-based compensation , investments and in-process r & d . we base our estimates on historical experience and on various other assumptions 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 and the reported amounts of revenues and expenses that are not readily apparent from other sources . actual results may differ from these estimates . we believe the following critical accounting policies affect our more significant judgments and estimates used in the preparation of our financial statements . revenue recognition revenue is recognized when persuasive evidence of an arrangement exists , delivery has occurred , the fee is fixed and determinable , collectability is reasonably assured , contractual obligations have been satisfied and title and risk of loss have been transferred to the customer . we generate our revenue from two different types of contractual arrangements : cost-reimbursable grants and contracts and fixed-price grants and contracts . costs consist primarily of actual internal labor charges , subcontractor and material costs incurred , plus an allocation of fringe benefits , overhead and general and administrative expenses ( `` g & a `` ) , based on the terms of the contract . revenues on cost-reimbursable grants and contracts are recognized in an amount equal to the costs incurred during the period , plus an estimate of the applicable fee earned . the estimate of the applicable fee earned is determined by reference to the contract : if the contract defines the fee in terms of risk-based milestones and specifies the fees to be earned upon the completion of each milestone , then the fee is recognized when the related milestones are earned . otherwise , we compute fee income earned in a given period by using a proportional performance method based on costs incurred during the period as compared to total estimated project costs and application of the resulting fraction to the total project fee specified in the grant or contract . revenues on fixed-price grants and contracts are recognized using a percentage-of-completion method , which uses assumptions and estimates , as appropriate . these assumptions and estimates are developed in coordination with the principal investigator performing the work under the fixed-price grant or contract to determine levels of accomplishments throughout the life of the grant or contract . 38 stock-based compensation we expense all share-based awards to employees and consultants , including grants of stock options and shares , based on their estimated fair value at the date of grant . costs of all share-based payments are recognized over the requisite service period that an employee or consultant must provide to earn the award ( i.e . , the vesting period ) and allocated to the functional operating expense associated with that employee or consultant . fair value of financial instruments the carrying value of cash and cash equivalents , accounts receivable , short-term investments , accounts payable and accrued expenses approximates fair value due to the relatively short maturity of these instruments . common stock warrants , which are classified as liabilities , are recorded at their fair market value as of each reporting period . the measurement of fair value requires the use of techniques based on observable and unobservable inputs . observable inputs reflect market data obtained from independent sources , while unobservable inputs reflect our market assumptions . the inputs create the following fair value hierarchy : level 1 – quoted prices for identical instruments in active markets . level 2 – quoted prices for similar instruments in active markets ; quoted prices for identical or similar instruments in markets that are not active ; and model-derived valuations where inputs are observable or where significant value drivers are observable . level 3 – instruments where significant value drivers are unobservable to third parties . we use the black-scholes model to determine the fair value of certain common stock warrants on a recurring basis and classify such warrants in level 3. the black-scholes model utilizes inputs consisting of : ( i ) the closing price of our common stock ; ( ii ) the expected remaining life of the warrants ; ( iii ) the expected volatility using a weighted-average of historical volatilities of cbli and a group of comparable companies ; and ( iv ) the risk-free market rate . as of december 31 , 2015 , we held approximately $ 4.0 million in accrued expenses classified as level 3 securities for warrants to purchase common stock . income taxes determining the consolidated provision for income tax expense , deferred tax assets and liabilities and related valuation allowance , if any , involves judgment . on an on-going basis , we evaluate whether a valuation allowance is needed to reduce our deferred income tax assets to an amount that is more likely than not to be realized . story_separator_special_tag to ramp up the newly awarded dod contracts discussed above , and the panacela product candidates are lower mainly due to periodic drug manufacturing costs incurred in 2014 that were not required in 2015.the increase in expenses related to entolimod 's oncology indication is attributable to an ongoing phase 2 study in the russian federation that was not active in 2014 , along with preparatory research for follow-on development efforts . we expect that costs associated with entolimod 's biodefense indication to significantly increase in 2016 , entolimod 's oncology indication should decrease and the other research efforts should remain relatively constant . replace_table_token_3_th general and administrative expenses g & a expenses decreased from $ 8.5 million for the year ended december 31 , 2014 to $ 6.4 million for the year ended december 31 , 2015 , representing a decrease of $ ( 2.1 ) million , or ( 25.0 ) % . $ 0.9 million of this decrease was due to the deconsolidation of incuron , which occurred in the fourth quarter of 2014. in addition , compensation expense decreased by $ 0.6 million and recurring professional fees and other costs decreased by $ 1.2 million . these reductions were partially offset by a one-time increase of $ 0.6 million related to costs associated with our equity offering in february 2015 , as more fully described in note 7 , `` stockholders ' equity , `` to our consolidated financial statements . the majority of the costs of the february equity offering were expensed , and not otherwise charged to equity , as the majority of the net proceeds were considered derivative liabilities . we expect g & a expenses to decrease in 2016 due to the one-time expenses described above and continued cost control efforts . other income and expenses other net income decreased from $ 14.5 million for the year ended december 31 , 2014 to other net expense of $ ( 2.3 ) million for the year ended december 31 , 2015 , representing a net expense increase of $ ( 16.8 ) million or ( 116 ) % . expense increases include : a one-time gain reported in 2014 of $ 14.2 million on the deconsolidation of incuron , $ 2.9 million attributable to the change in 41 periodic warrant valuation , $ 1.1 million in deposit losses associated with the nota-bank failure more fully discussed in note 2 , `` summary of significant accounting principles , `` and $ 0.1 million of equity investment losses associated with incuron . these expense increases which total $ 18.2 million were offset by expense reductions of $ 1.0 million in debt service costs associated with our debt to hercules technology growth capital and rusnano , both of which were retired in 2015 and more fully described in note 6 , `` debt , `` and $ 0.5 million due to lower foreign exchange losses . liquidity and capital resources we incurred net losses of $ ( 148.0 ) million from our inception through december 31 , 2015 . historically , we have not generated , and do not expect to generate , revenue from sales of product candidates in the immediate future . since our founding in 2003 , we have funded our operations through a variety of means : from inception through december 31 , 2015 , we have raised $ 144.7 million of net equity capital , including amounts received from the exercise of options and warrants . we have also received $ 7.3 million in net proceeds from the issuance of long-term debt instruments ; dod and barda have funded grants and contracts totaling $ 60.4 million for the development of entolimod for its biodefense indication ; the russian federation has funded a series of contracts totaling $ 17.3 million , based on the exchange rates in effect on the date of funding . these contracts include requirements for us to contribute matching funds , which we have satisfied or expect to satisfy with both the value of developed intellectual property at the time of award , incurred development expenses and future expenses ; we have been awarded $ 4.0 million in grants and contracts not described above , all of which has been recognized at december 31 , 2015 ; incuron was formed to develop and commercialize the curaxins product line , including its lead oncology drug candidate cbl0137 . as more fully described in note 5 , `` noncontrolling interests `` we sold our remaining ownership interest in incuron during 2015 for which we received approximately $ 3 million in april and $ 1 million in july . we also assigned the remainder of our curaxin intellectual property to incuron for a 2 % royalty ; and panacela was formed to develop and commercialize preclinical compounds , which were transferred to panacela through assignment and lease agreements . rusnano contributed $ 9.0 million and we contributed $ 3.0 million plus intellectual property at formation . as more fully described in note 5 , `` noncontrolling interests `` we recapitalized panacela in december 2015 with rusnano converting $ 0.7 million of debt to equity and cbli obtaining $ 2.2 million of panacela equity through a combination of cash payments , debt forgiveness and common stock issuance . as of the date of this filing , cbli owns 66.77 % of panacela . we have incurred cumulative net losses and expect to incur additional losses related to our r & d activities . we do not have commercial products and have limited capital resources . as of december 31 , 2015 we had $ 19.6 million in cash , cash equivalents and short-term investments which , along with the active government contracts described above , are expected to fund our projected operating requirements beyond one year . however , until we are able to commercialize our product candidates at a level that covers our cash expenses , we will need to raise substantial

net cash used in operations decreased by $ 2.4 million to $ ( 12.1 ) million for the year ended december 31 , 2015 from $ ( 14.5 ) million for the year ended december 31 , 2014 . net cash used in operating activities for the period ending december 31 , 2015 consisted of a reported net loss of $ ( 13.0 ) million , which was adjusted down for $ 2.4 million of net noncash operating activities , and a $ ( 1.4 ) million net increase due to changes in operating assets and liabilities . of the net noncash operating activities of $ 2.4 million , $ 1.1 million was due to an investment loss in connection with our nota-bank deposit , as more fully described in note 2 , `` summary of significant accounting policies- restricted cash , '' $ 0.6 million was due to warrant issuance costs associated with the sale of equity in february 2015 , $ 0.4 million was due to our equity in incuron losses , and $ 0.5 million was due to depreciation , amortization , noncash compensation expense and other noncash expenses . these expenses were partially offset by a $ 0.2 million gain on the settlement of debt associated with the panacela restructuring transaction more fully described in note 5 , `` noncontrolling interests . ''

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 operations decreased by $ 2.4 million to $ ( 12.1 ) million for the year ended december 31 , 2015 from $ ( 14.5 ) million for the year ended december 31 , 2014 . net cash used in operating activities for the period ending december 31 , 2015 consisted of a reported net loss of $ ( 13.0 ) million , which was adjusted down for $ 2.4 million of net noncash operating activities , and a $ ( 1.4 ) million net increase due to changes in operating assets and liabilities . of the net noncash operating activities of $ 2.4 million , $ 1.1 million was due to an investment loss in connection with our nota-bank deposit , as more fully described in note 2 , `` summary of significant accounting policies- restricted cash , '' $ 0.6 million was due to warrant issuance costs associated with the sale of equity in february 2015 , $ 0.4 million was due to our equity in incuron losses , and $ 0.5 million was due to depreciation , amortization , noncash compensation expense and other noncash expenses . these expenses were partially offset by a $ 0.2 million gain on the settlement of debt associated with the panacela restructuring transaction more fully described in note 5 , `` noncontrolling interests . '' ``` Suspicious Activity Report : subsequent to april 29 , 2015 , incuron was accounted for on the cost basis until we sold our remaining interest in incuron on june 30 , 2015. see item 1 , “ business ” for more information on our product candidates and our strategic partnerships . critical accounting policies and estimates 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 accounting principles generally accepted in the u.s. ( `` gaap `` ) . the preparation of these financial statements requires us to make estimates and judgments that affect our reported amounts of assets , liabilities , revenues and expenses . on an ongoing basis , we evaluate our estimates and judgments , including those related to accrued expenses , income taxes , stock-based compensation , investments and in-process r & d . we base our estimates on historical experience and on various other assumptions 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 and the reported amounts of revenues and expenses that are not readily apparent from other sources . actual results may differ from these estimates . we believe the following critical accounting policies affect our more significant judgments and estimates used in the preparation of our financial statements . revenue recognition revenue is recognized when persuasive evidence of an arrangement exists , delivery has occurred , the fee is fixed and determinable , collectability is reasonably assured , contractual obligations have been satisfied and title and risk of loss have been transferred to the customer . we generate our revenue from two different types of contractual arrangements : cost-reimbursable grants and contracts and fixed-price grants and contracts . costs consist primarily of actual internal labor charges , subcontractor and material costs incurred , plus an allocation of fringe benefits , overhead and general and administrative expenses ( `` g & a `` ) , based on the terms of the contract . revenues on cost-reimbursable grants and contracts are recognized in an amount equal to the costs incurred during the period , plus an estimate of the applicable fee earned . the estimate of the applicable fee earned is determined by reference to the contract : if the contract defines the fee in terms of risk-based milestones and specifies the fees to be earned upon the completion of each milestone , then the fee is recognized when the related milestones are earned . otherwise , we compute fee income earned in a given period by using a proportional performance method based on costs incurred during the period as compared to total estimated project costs and application of the resulting fraction to the total project fee specified in the grant or contract . revenues on fixed-price grants and contracts are recognized using a percentage-of-completion method , which uses assumptions and estimates , as appropriate . these assumptions and estimates are developed in coordination with the principal investigator performing the work under the fixed-price grant or contract to determine levels of accomplishments throughout the life of the grant or contract . 38 stock-based compensation we expense all share-based awards to employees and consultants , including grants of stock options and shares , based on their estimated fair value at the date of grant . costs of all share-based payments are recognized over the requisite service period that an employee or consultant must provide to earn the award ( i.e . , the vesting period ) and allocated to the functional operating expense associated with that employee or consultant . fair value of financial instruments the carrying value of cash and cash equivalents , accounts receivable , short-term investments , accounts payable and accrued expenses approximates fair value due to the relatively short maturity of these instruments . common stock warrants , which are classified as liabilities , are recorded at their fair market value as of each reporting period . the measurement of fair value requires the use of techniques based on observable and unobservable inputs . observable inputs reflect market data obtained from independent sources , while unobservable inputs reflect our market assumptions . the inputs create the following fair value hierarchy : level 1 – quoted prices for identical instruments in active markets . level 2 – quoted prices for similar instruments in active markets ; quoted prices for identical or similar instruments in markets that are not active ; and model-derived valuations where inputs are observable or where significant value drivers are observable . level 3 – instruments where significant value drivers are unobservable to third parties . we use the black-scholes model to determine the fair value of certain common stock warrants on a recurring basis and classify such warrants in level 3. the black-scholes model utilizes inputs consisting of : ( i ) the closing price of our common stock ; ( ii ) the expected remaining life of the warrants ; ( iii ) the expected volatility using a weighted-average of historical volatilities of cbli and a group of comparable companies ; and ( iv ) the risk-free market rate . as of december 31 , 2015 , we held approximately $ 4.0 million in accrued expenses classified as level 3 securities for warrants to purchase common stock . income taxes determining the consolidated provision for income tax expense , deferred tax assets and liabilities and related valuation allowance , if any , involves judgment . on an on-going basis , we evaluate whether a valuation allowance is needed to reduce our deferred income tax assets to an amount that is more likely than not to be realized . story_separator_special_tag to ramp up the newly awarded dod contracts discussed above , and the panacela product candidates are lower mainly due to periodic drug manufacturing costs incurred in 2014 that were not required in 2015.the increase in expenses related to entolimod 's oncology indication is attributable to an ongoing phase 2 study in the russian federation that was not active in 2014 , along with preparatory research for follow-on development efforts . we expect that costs associated with entolimod 's biodefense indication to significantly increase in 2016 , entolimod 's oncology indication should decrease and the other research efforts should remain relatively constant . replace_table_token_3_th general and administrative expenses g & a expenses decreased from $ 8.5 million for the year ended december 31 , 2014 to $ 6.4 million for the year ended december 31 , 2015 , representing a decrease of $ ( 2.1 ) million , or ( 25.0 ) % . $ 0.9 million of this decrease was due to the deconsolidation of incuron , which occurred in the fourth quarter of 2014. in addition , compensation expense decreased by $ 0.6 million and recurring professional fees and other costs decreased by $ 1.2 million . these reductions were partially offset by a one-time increase of $ 0.6 million related to costs associated with our equity offering in february 2015 , as more fully described in note 7 , `` stockholders ' equity , `` to our consolidated financial statements . the majority of the costs of the february equity offering were expensed , and not otherwise charged to equity , as the majority of the net proceeds were considered derivative liabilities . we expect g & a expenses to decrease in 2016 due to the one-time expenses described above and continued cost control efforts . other income and expenses other net income decreased from $ 14.5 million for the year ended december 31 , 2014 to other net expense of $ ( 2.3 ) million for the year ended december 31 , 2015 , representing a net expense increase of $ ( 16.8 ) million or ( 116 ) % . expense increases include : a one-time gain reported in 2014 of $ 14.2 million on the deconsolidation of incuron , $ 2.9 million attributable to the change in 41 periodic warrant valuation , $ 1.1 million in deposit losses associated with the nota-bank failure more fully discussed in note 2 , `` summary of significant accounting principles , `` and $ 0.1 million of equity investment losses associated with incuron . these expense increases which total $ 18.2 million were offset by expense reductions of $ 1.0 million in debt service costs associated with our debt to hercules technology growth capital and rusnano , both of which were retired in 2015 and more fully described in note 6 , `` debt , `` and $ 0.5 million due to lower foreign exchange losses . liquidity and capital resources we incurred net losses of $ ( 148.0 ) million from our inception through december 31 , 2015 . historically , we have not generated , and do not expect to generate , revenue from sales of product candidates in the immediate future . since our founding in 2003 , we have funded our operations through a variety of means : from inception through december 31 , 2015 , we have raised $ 144.7 million of net equity capital , including amounts received from the exercise of options and warrants . we have also received $ 7.3 million in net proceeds from the issuance of long-term debt instruments ; dod and barda have funded grants and contracts totaling $ 60.4 million for the development of entolimod for its biodefense indication ; the russian federation has funded a series of contracts totaling $ 17.3 million , based on the exchange rates in effect on the date of funding . these contracts include requirements for us to contribute matching funds , which we have satisfied or expect to satisfy with both the value of developed intellectual property at the time of award , incurred development expenses and future expenses ; we have been awarded $ 4.0 million in grants and contracts not described above , all of which has been recognized at december 31 , 2015 ; incuron was formed to develop and commercialize the curaxins product line , including its lead oncology drug candidate cbl0137 . as more fully described in note 5 , `` noncontrolling interests `` we sold our remaining ownership interest in incuron during 2015 for which we received approximately $ 3 million in april and $ 1 million in july . we also assigned the remainder of our curaxin intellectual property to incuron for a 2 % royalty ; and panacela was formed to develop and commercialize preclinical compounds , which were transferred to panacela through assignment and lease agreements . rusnano contributed $ 9.0 million and we contributed $ 3.0 million plus intellectual property at formation . as more fully described in note 5 , `` noncontrolling interests `` we recapitalized panacela in december 2015 with rusnano converting $ 0.7 million of debt to equity and cbli obtaining $ 2.2 million of panacela equity through a combination of cash payments , debt forgiveness and common stock issuance . as of the date of this filing , cbli owns 66.77 % of panacela . we have incurred cumulative net losses and expect to incur additional losses related to our r & d activities . we do not have commercial products and have limited capital resources . as of december 31 , 2015 we had $ 19.6 million in cash , cash equivalents and short-term investments which , along with the active government contracts described above , are expected to fund our projected operating requirements beyond one year . however , until we are able to commercialize our product candidates at a level that covers our cash expenses , we will need to raise substantial

certain accounting estimates are particularly important to the understanding of the company 's financial position and results of operations and require the application of significant judgment by the company 's management and can be materially affected by changes from period to period in economic factors or conditions that are outside the control of management . the company 's management uses its judgment to determine the appropriate assumptions to be used in the determination of certain estimates . those estimates are based on historical operations , future business plans and projected financial results , the terms of existing contracts , the observance of trends in the industry , information provided by customers and information available from other outside sources , as appropriate . the following discusses the company 's critical accounting policies and estimates : estimates . operating results may be affected by certain accounting estimates . the most sensitive and significant accounting estimates in the financial statements relate to customer rebates , valuation allowances for deferred income tax assets , obsolete and slow moving inventories , potentially uncollectible accounts receivable , pension liability and accruals for income taxes . although the company 's management has used available information to make judgments on the appropriate estimates to account for the above matters , there can be no assurance that future events will not significantly affect the estimated amounts related to these areas where estimates are required . however , historically , actual results have not been materially different than original estimates . revenue recognition . the company recognizes revenue from the sales of its products when ownership transfers to the customers , which occurs either at the time of shipment or upon delivery based upon contractual terms with the customer . the company recognizes customer program costs , including rebates , cooperative advertising , slotting fees and other sales related discounts , as a reduction to sales . allowance for doubtful accounts . the company provides an allowance for doubtful accounts based upon a review of outstanding accounts receivable , historical collection information and existing economic conditions . the allowance for doubtful accounts represents estimated uncollectible accounts receivables associated with potential customer defaults on contractual obligations , usually due to potential insolvencies . the allowance includes amounts for certain customers where a risk of default has been specifically identified . in addition , the allowance includes a provision for customer defaults based on historical experience . the company actively monitors its accounts receivable balances and its historical experience of annual accounts receivable write offs has been negligible . customer rebates . customer rebates and incentives are a common practice in the office products industry . we incur customer rebate costs to obtain favorable product placement , to promote sell-through of products and to maintain competitive pricing . customer rebate costs and incentives , including volume rebates , promotional funds , catalog allowances and slotting fees , are accounted for as a reduction to gross sales . these costs are recorded at the time of sale and are based on individual customer contracts . management periodically reviews accruals for these rebates and allowances , and adjusts accruals when appropriate . obsolete and slow moving inventory . inventories are stated at the lower of cost , determined on the first-in , first-out method , or market . an allowance is established to adjust the cost of inventory to its net realizable value . inventory allowances are recorded for obsolete or slow moving inventory based on assumptions about future demand and marketability of products , the impact of new product introductions and specific identification of items , such as discontinued products . these estimates could vary significantly from actual requirements if future economic conditions , customer inventory levels or competitive conditions differ from expectations . income taxes . deferred income tax liabilities or assets are established for temporary differences between financial and tax reporting bases and are subsequently adjusted to reflect changes in tax rates expected to be in effect when the temporary differences reverse . a valuation allowance is recorded to reduce deferred income tax assets to an amount that is more likely than not to be realized . 15 intangible assets . intangible assets with finite useful lives are recorded at cost upon acquisition and amortized over the term of the related contract , if any , or useful life , as applicable . intangible assets held by the company with finite useful lives include patents and trademarks . the weighted average amortization period for intangible assets at december 31 , 2013 was 14 years . the company periodically reviews the values recorded for intangible assets to assess recoverability from future operations whenever events or changes in circumstances indicate that its carrying amount may not be recoverable . at december 31 , 2013 and 2012 , the company assessed the recoverability of its long-lived assets and believed that there were no events or circumstances present that would that would require a test of recoverability on those assets . as a result , there was no impairment of the carrying amounts of such assets and no reduction in their estimated useful lives . the net book value of the company 's intangible assets was $ 4,071,897 as of december 31 , 2013 compared to $ 4,240,401 as of december 31 , 2012. pension obligation . the pension benefit obligation is based on various assumptions used by third-party actuaries in calculating this amount . these assumptions include discount rates , expected return on plan assets , mortality rates and other factors . revisions in assumptions and actual results that differ from the assumptions affect future expenses , cash funding requirements and obligations . our funding policy is to fund the plan in accordance with applicable requirements of the internal revenue code and regulations . story_separator_special_tag these assumptions are reviewed annually and updated as required . the company has a frozen defined benefit pension plan . two assumptions , the discount rate and the expected return on plan assets , are important elements of expense and liability measurement . we determine the discount rate used to measure plan liabilities as of the december 31 measurement date . the discount rate reflects the current rate at which the associated liabilities could be effectively settled at the end of the year . in estimating this rate , we look at rates of return on fixed-income investments of similar duration to the liabilities in the plan that receive high , investment grade ratings by recognized ratings agencies . using these methodologies , we determined a discount rate of 3.78 % to be appropriate as of december 31 , 2013 , which is an increase of .79 percentage points from the rate used as of december 31 , 2012. the expected long-term rate of return on assets considers the company 's historical results and projected returns for similar allocations among asset classes . in accordance with generally accepted accounting principles , actual results that differ from the company 's assumptions are accumulated and amortized over future periods and , therefore , affect expense and obligation in future periods . for the u.s. pension plan , our assumption for the expected return on plan assets was 6.0 % for 2013. for more information concerning these costs and obligations , see the discussion in note 6 – pension and profit sharing , in the notes to the company 's consolidated financial statements in this report . accounting for stock-based compensation . stock based compensation cost is measured at the grant date fair value of the award and is recognized as expense over the requisite service period . the company uses the black-scholes option - pricing model to determine fair value of the awards , which involves certain subjective assumptions . these assumptions include estimating the length of time employees will retain their vested stock options before exercising them ( “ expected term ” ) , the estimated volatility of the company 's common stock price over the expected term ( “ volatility ” ) and the number of options for which vesting requirements will not be completed ( “ forfeitures ” ) . changes in the subjective assumptions can materially affect estimates of fair value stock-based compensation , and the related amount recognized on the consolidated statements of operations . refer to note 11 - stock option plans - in the notes to consolidated financial statements in this report for a more detailed discussion . results of operations 2013 compared with 2012 on june 7 , 2012 , the company purchased certain assets of the c-thru ruler company , a leading supplier of drafting , measuring , lettering and stencil products . the company purchased inventory and intellectual property related to c-thru 's lettering and ruler business for approximately $ 1.47 million using funds borrowed under its revolving loan agreement with hsbc . the company recorded approximately $ 0.42 million for inventory , as well as approximately $ 1.05 million for intangible assets , consisting primarily of customer relationships . on august 30 , 2013 , the company purchased a manufacturing and distribution center in rocky mount , north carolina for approximately $ 2.8 million . the company acquired the facility in the bankruptcy liquidation of roomstore , inc. the property consists of approximately 340,000 square feet of office , manufacturing and warehouse space on 33 acres . the facility will be used to consolidate the company 's two distribution centers in north carolina and to provide space for growth . the company expects to invest a total of approximately $ 1.3 million by the end of the first quarter of 2014 to upgrade the building and equipment . as of december 31 , 2013 , the company paid approximately $ 900,000 towards upgrading the building . 16 net sales in 2013 , sales increased by $ 5,207,007 or 6 % to $ 89,576,777 compared to $ 84,369,770 in 2012. the u.s. segment sales increased by $ 6,099,000 or 9 % in 2013 compared to 2012. sales in canada decreased by $ 716,000 or 8 % in both u.s. dollars and local currency in 2013 compared to 2012. european sales decreased by 2 % in u.s. dollars and 5 % in local currency in 2013 compared to 2012. the increase in net sales for the twelve months ended december 31 , 2013 in the u.s. segment was primarily due to higher sales of camillus knives and back-to-school products as well as increased distribution of first aid products . the decline in net sales in canada for the twelve months ended december 31 , 2013 was primarily due to general softness in the office products industry . the decrease in sales in europe was primarily due to the loss of schlecker , a major customer , due to their liquidation in the second quarter of 2012. gross profit gross profit was 35.5 % of net sales in 2013 compared to 35.3 % in 2012. selling , general and administrative selling , general and administrative expenses were $ 25,945,000 in 2013 compared with $ 24,386,000 in 2012 , an increase of $ 1,559,000 or 6 % . sg & a expenses were 29 % of net sales in 2013 and 2012 , respectively . the increase in sg & a expenses was primarily the result of higher personnel related expenses which includes salaries and recruiting ( $ 1.1 million ) and higher delivery costs and sales commissions as a result of higher sales ( $ 200,000 ) . operating income operating income was $ 5,879,000 in 2013 , compared with $ 5,361,000 in 2012 , an increase of $ 518,000. operating income in the u.s. increased by approximately $ 689,000 primarily as a result of higher sales . operating income in the european segment

liquidity and capital resources during 2013 , working capital increased by approximately $ 431,000 compared to december 31 , 2012. inventory decreased by approximately $ 2.1 million . inventory turnover , calculated using a twelve month average inventory balance , remained constant at 1.9 for december 31 , 2013 compared to december 31 , 2012. receivables decreased approximately $ 815,000 at december 31 , 2013 compared to december 31 , 2012. the average number of days sales outstanding in accounts receivable was 64 days in 2013 compared to 61 days in 2012 . 17 the company 's working capital , current ratio and long-term debt to equity ratio follow : replace_table_token_3_th at december 31 , 2013 , total debt outstanding under the company 's revolving credit facility ( referred to below ) decreased by approximately $ 1.4 million compared to total debt at december 31 , 2012. the decrease in total debt outstanding is primarily due to the receipt of $ 1.7 million from early repayment of the company 's mortgage receivable , cash generated from earnings and the reduction of inventory partially offset by the purchase of the new distribution facility in rocky mount , nc . as of december 31 , 2013 , $ 22,911,829 was outstanding and $ 17,088,171 was available for borrowing under the revolving credit facility .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources during 2013 , working capital increased by approximately $ 431,000 compared to december 31 , 2012. inventory decreased by approximately $ 2.1 million . inventory turnover , calculated using a twelve month average inventory balance , remained constant at 1.9 for december 31 , 2013 compared to december 31 , 2012. receivables decreased approximately $ 815,000 at december 31 , 2013 compared to december 31 , 2012. the average number of days sales outstanding in accounts receivable was 64 days in 2013 compared to 61 days in 2012 . 17 the company 's working capital , current ratio and long-term debt to equity ratio follow : replace_table_token_3_th at december 31 , 2013 , total debt outstanding under the company 's revolving credit facility ( referred to below ) decreased by approximately $ 1.4 million compared to total debt at december 31 , 2012. the decrease in total debt outstanding is primarily due to the receipt of $ 1.7 million from early repayment of the company 's mortgage receivable , cash generated from earnings and the reduction of inventory partially offset by the purchase of the new distribution facility in rocky mount , nc . as of december 31 , 2013 , $ 22,911,829 was outstanding and $ 17,088,171 was available for borrowing under the revolving credit facility . ``` Suspicious Activity Report : certain accounting estimates are particularly important to the understanding of the company 's financial position and results of operations and require the application of significant judgment by the company 's management and can be materially affected by changes from period to period in economic factors or conditions that are outside the control of management . the company 's management uses its judgment to determine the appropriate assumptions to be used in the determination of certain estimates . those estimates are based on historical operations , future business plans and projected financial results , the terms of existing contracts , the observance of trends in the industry , information provided by customers and information available from other outside sources , as appropriate . the following discusses the company 's critical accounting policies and estimates : estimates . operating results may be affected by certain accounting estimates . the most sensitive and significant accounting estimates in the financial statements relate to customer rebates , valuation allowances for deferred income tax assets , obsolete and slow moving inventories , potentially uncollectible accounts receivable , pension liability and accruals for income taxes . although the company 's management has used available information to make judgments on the appropriate estimates to account for the above matters , there can be no assurance that future events will not significantly affect the estimated amounts related to these areas where estimates are required . however , historically , actual results have not been materially different than original estimates . revenue recognition . the company recognizes revenue from the sales of its products when ownership transfers to the customers , which occurs either at the time of shipment or upon delivery based upon contractual terms with the customer . the company recognizes customer program costs , including rebates , cooperative advertising , slotting fees and other sales related discounts , as a reduction to sales . allowance for doubtful accounts . the company provides an allowance for doubtful accounts based upon a review of outstanding accounts receivable , historical collection information and existing economic conditions . the allowance for doubtful accounts represents estimated uncollectible accounts receivables associated with potential customer defaults on contractual obligations , usually due to potential insolvencies . the allowance includes amounts for certain customers where a risk of default has been specifically identified . in addition , the allowance includes a provision for customer defaults based on historical experience . the company actively monitors its accounts receivable balances and its historical experience of annual accounts receivable write offs has been negligible . customer rebates . customer rebates and incentives are a common practice in the office products industry . we incur customer rebate costs to obtain favorable product placement , to promote sell-through of products and to maintain competitive pricing . customer rebate costs and incentives , including volume rebates , promotional funds , catalog allowances and slotting fees , are accounted for as a reduction to gross sales . these costs are recorded at the time of sale and are based on individual customer contracts . management periodically reviews accruals for these rebates and allowances , and adjusts accruals when appropriate . obsolete and slow moving inventory . inventories are stated at the lower of cost , determined on the first-in , first-out method , or market . an allowance is established to adjust the cost of inventory to its net realizable value . inventory allowances are recorded for obsolete or slow moving inventory based on assumptions about future demand and marketability of products , the impact of new product introductions and specific identification of items , such as discontinued products . these estimates could vary significantly from actual requirements if future economic conditions , customer inventory levels or competitive conditions differ from expectations . income taxes . deferred income tax liabilities or assets are established for temporary differences between financial and tax reporting bases and are subsequently adjusted to reflect changes in tax rates expected to be in effect when the temporary differences reverse . a valuation allowance is recorded to reduce deferred income tax assets to an amount that is more likely than not to be realized . 15 intangible assets . intangible assets with finite useful lives are recorded at cost upon acquisition and amortized over the term of the related contract , if any , or useful life , as applicable . intangible assets held by the company with finite useful lives include patents and trademarks . the weighted average amortization period for intangible assets at december 31 , 2013 was 14 years . the company periodically reviews the values recorded for intangible assets to assess recoverability from future operations whenever events or changes in circumstances indicate that its carrying amount may not be recoverable . at december 31 , 2013 and 2012 , the company assessed the recoverability of its long-lived assets and believed that there were no events or circumstances present that would that would require a test of recoverability on those assets . as a result , there was no impairment of the carrying amounts of such assets and no reduction in their estimated useful lives . the net book value of the company 's intangible assets was $ 4,071,897 as of december 31 , 2013 compared to $ 4,240,401 as of december 31 , 2012. pension obligation . the pension benefit obligation is based on various assumptions used by third-party actuaries in calculating this amount . these assumptions include discount rates , expected return on plan assets , mortality rates and other factors . revisions in assumptions and actual results that differ from the assumptions affect future expenses , cash funding requirements and obligations . our funding policy is to fund the plan in accordance with applicable requirements of the internal revenue code and regulations . story_separator_special_tag these assumptions are reviewed annually and updated as required . the company has a frozen defined benefit pension plan . two assumptions , the discount rate and the expected return on plan assets , are important elements of expense and liability measurement . we determine the discount rate used to measure plan liabilities as of the december 31 measurement date . the discount rate reflects the current rate at which the associated liabilities could be effectively settled at the end of the year . in estimating this rate , we look at rates of return on fixed-income investments of similar duration to the liabilities in the plan that receive high , investment grade ratings by recognized ratings agencies . using these methodologies , we determined a discount rate of 3.78 % to be appropriate as of december 31 , 2013 , which is an increase of .79 percentage points from the rate used as of december 31 , 2012. the expected long-term rate of return on assets considers the company 's historical results and projected returns for similar allocations among asset classes . in accordance with generally accepted accounting principles , actual results that differ from the company 's assumptions are accumulated and amortized over future periods and , therefore , affect expense and obligation in future periods . for the u.s. pension plan , our assumption for the expected return on plan assets was 6.0 % for 2013. for more information concerning these costs and obligations , see the discussion in note 6 – pension and profit sharing , in the notes to the company 's consolidated financial statements in this report . accounting for stock-based compensation . stock based compensation cost is measured at the grant date fair value of the award and is recognized as expense over the requisite service period . the company uses the black-scholes option - pricing model to determine fair value of the awards , which involves certain subjective assumptions . these assumptions include estimating the length of time employees will retain their vested stock options before exercising them ( “ expected term ” ) , the estimated volatility of the company 's common stock price over the expected term ( “ volatility ” ) and the number of options for which vesting requirements will not be completed ( “ forfeitures ” ) . changes in the subjective assumptions can materially affect estimates of fair value stock-based compensation , and the related amount recognized on the consolidated statements of operations . refer to note 11 - stock option plans - in the notes to consolidated financial statements in this report for a more detailed discussion . results of operations 2013 compared with 2012 on june 7 , 2012 , the company purchased certain assets of the c-thru ruler company , a leading supplier of drafting , measuring , lettering and stencil products . the company purchased inventory and intellectual property related to c-thru 's lettering and ruler business for approximately $ 1.47 million using funds borrowed under its revolving loan agreement with hsbc . the company recorded approximately $ 0.42 million for inventory , as well as approximately $ 1.05 million for intangible assets , consisting primarily of customer relationships . on august 30 , 2013 , the company purchased a manufacturing and distribution center in rocky mount , north carolina for approximately $ 2.8 million . the company acquired the facility in the bankruptcy liquidation of roomstore , inc. the property consists of approximately 340,000 square feet of office , manufacturing and warehouse space on 33 acres . the facility will be used to consolidate the company 's two distribution centers in north carolina and to provide space for growth . the company expects to invest a total of approximately $ 1.3 million by the end of the first quarter of 2014 to upgrade the building and equipment . as of december 31 , 2013 , the company paid approximately $ 900,000 towards upgrading the building . 16 net sales in 2013 , sales increased by $ 5,207,007 or 6 % to $ 89,576,777 compared to $ 84,369,770 in 2012. the u.s. segment sales increased by $ 6,099,000 or 9 % in 2013 compared to 2012. sales in canada decreased by $ 716,000 or 8 % in both u.s. dollars and local currency in 2013 compared to 2012. european sales decreased by 2 % in u.s. dollars and 5 % in local currency in 2013 compared to 2012. the increase in net sales for the twelve months ended december 31 , 2013 in the u.s. segment was primarily due to higher sales of camillus knives and back-to-school products as well as increased distribution of first aid products . the decline in net sales in canada for the twelve months ended december 31 , 2013 was primarily due to general softness in the office products industry . the decrease in sales in europe was primarily due to the loss of schlecker , a major customer , due to their liquidation in the second quarter of 2012. gross profit gross profit was 35.5 % of net sales in 2013 compared to 35.3 % in 2012. selling , general and administrative selling , general and administrative expenses were $ 25,945,000 in 2013 compared with $ 24,386,000 in 2012 , an increase of $ 1,559,000 or 6 % . sg & a expenses were 29 % of net sales in 2013 and 2012 , respectively . the increase in sg & a expenses was primarily the result of higher personnel related expenses which includes salaries and recruiting ( $ 1.1 million ) and higher delivery costs and sales commissions as a result of higher sales ( $ 200,000 ) . operating income operating income was $ 5,879,000 in 2013 , compared with $ 5,361,000 in 2012 , an increase of $ 518,000. operating income in the u.s. increased by approximately $ 689,000 primarily as a result of higher sales . operating income in the european segment

” one of our core profitably measurements is our portfolio related net interest margin , which measures the difference between interest income earned on our loan portfolio and interest expense paid on our portfolio-related debt , relative to the amount of loans outstanding over the period . our portfolio-related debt consists of our warehouse repurchase facilities and securitizations and excludes our corporate debt . for the year ended december 31 , 2019 , our portfolio related net interest margin was 4.13 % . we generate profits to the extent that our portfolio related net interest income exceeds our interest expense on corporate debt , provision for loan losses and operating expenses . for the year ended december 31 , 2019 , we generated income before income taxes and net income of $ 25.4 million and $ 17.3 million , respectively , and earned a pre-tax return on equity and return on equity of 17.4 % and 11.8 % , respectively . 40 items affecting comparability of results due to a number of factors , our historical financial results may not be comparable , either from period to period , or to our financial results in future periods . we have summarized the key factors affecting the comparability of our financial results below . income taxes prior to our initial public offering , the company operated as velocity financial , llc , which was formed as a delaware limited liability company , or llc , in 2012. until january 1 , 2018 , as an llc , we had elected to be treated as a partnership for u.s. federal and state income tax purposes , and as such , had generally not been subject to federal and state income taxes prior to january 1 , 2018. accordingly , the results of operations presented for the years prior to january 1 , 2018 do not include any provision for federal or state income taxes . as part of our initial public offering , we converted velocity financial , llc into a delaware corporation and changed our name to velocity financial , inc. , a transaction that we refer to as the “ conversion ” in this annual report form 10-k. the conversion is accounted for in accordance with asc 805-50 –business combinations , as a transaction between entities under common control . the conversion is not expected to impact our provision for income taxes or our deferred tax assets and liabilities . effective january 1 , 2018 , we elected to be treated as a corporation for u.s. federal and state income tax purposes . accordingly , the results of operations for the year ended december 31 , 2018 include the impacts of income taxes . as a result , the historical net income reported for any period prior to january 1 , 2018 , is not comparable to the net income reported for the year ended december 31 , 2018 or the net income anticipated in future periods . furthermore , in connection with the new tax treatment , we began recognizing , and will continue to recognize , deferred tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts of our existing assets and liabilities and their respective tax bases . deferred tax assets and liabilities are measured using the tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled . the effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statements of operations in the period that included the enactment date , as applicable . interest expense on corporate debt in 2014 , we entered into a five-year , $ 100.0 million corporate debt agreement with the owners of our class c preferred units , pursuant to which we issued at par senior secured notes , the 2014 senior secured notes , that mature on december 16 , 2019. the 2014 senior secured notes bear interest , at our election , at either 10 % annually paid in cash or 11 % annually paid in kind . in august 2019 , we entered into a five-year $ 153.0 million corporate debt agreement with owl rock capital corporation ( “ 2019 term loans ” ) . the 2019 term loans under this agreement bear interest at a rate equal to one-month libor plus 7.50 % and mature in august 2024. a portion of the net proceeds from the 2019 term loans was used to redeem all of the outstanding 2014 senior secured notes in august 2019. another portion of the net proceeds from the 2019 term loans , together with cash on hand , was used to repurchase our outstanding class c preferred units . as of december 31 , 2018 , including paid-in-kind interest , the 2014 senior secured notes balance was $ 127.6 million , and is presented as secured financing , net of debt issuance costs , on the consolidated statement of financial condition . the 2019 term loans balance was $ 153.0 million as of december 31 , 2019. during the year ended december 31 , 2019 , we incurred $ 14.6 million of interest expense related to the 2014 senior secured notes and the 2019 term loans . we used $ 75.7 million of the net proceeds from our ipo to lower our interest expense through the repayment of the $ 75.0 million outstanding principal amount on the 2019 term loans . 41 recent developments january 2020 ipo on january 16 , 2020 , velocity financial , llc converted from a delaware limited liability company to a delaware corporation and changed its name to velocity financial , inc. the conversion was accounted for in accordance with asc 805-50 – business combinations , as a transaction between entities under common control . all assets and liabilities of velocity financial , llc were contributed to velocity financial , inc. story_separator_special_tag operating efficiency we generate positive operating leverage to the extent that our revenue grows at a faster rate than our expenses . we believe our platform is highly scalable and that we can generate positive operating leverage in future periods , primarily due to the technology and other investments we have made in our platform to date and our focus on a scalable , cost-effective mortgage broker network to generate new loan originations . portfolio and asset quality key portfolio statistics replace_table_token_3_th total loans . total loans reflects the aggregate upb at the end of the period . it excludes deferred origination costs , acquisition discounts , fair value adjustments and allowance for loan losses . loan count . loan count reflects the number of loans at the end of the period . it includes all loans with an outstanding principal balance . average loan balance . average loan balance reflects the average upb at the end of the period ( i.e . , total loans divided by loan count ) . weighted average loan-to-value . loan-to-value , or ltv , reflects the ratio of the original loan amount to the appraised value of the underlying property at the time of origination . in instances where the ltv at origination is not available for an acquired loan , the ltv reflects our best estimate of value at the time of acquisition . weighted average ltv is calculated for the population of loans outstanding at the end of each specified period using the original loan amounts and appraised ltvs at the time of origination of each loan . ltv is a key statistic because requiring the borrower to invest more equity in the collateral minimizes our exposure for future credit losses . nonperforming loans . loans that are 90 or more days past due , in bankruptcy , or in foreclosure are not accruing interest and are considered nonperforming loans . the dollar amount of nonperforming loans presented in the table above reflects the upb of all loans that meet this definition . 46 originations and acquisitions the following table presents new loan originations and acquisitions and includes average loan size , weighted average coupon and weighted average loan-to-value for the periods indicated : replace_table_token_4_th over the periods shown , we have increased our origination volume by executing our strategy of continuing to serve and build loyalty within our network of mortgage brokers , while also expanding our network with new mortgage brokers through improved brand recognition . for the year ended december 31 , 2019 , we originated $ 1.0 billion of loans , which was an increase of $ 275.4 million , or 37.4 % from $ 737.3 million for the year ended december 31 , 2018. for the year ended december 31 , 2018 , we originated $ 737.3 million of loans , which was an increase of $ 182.6 million , or 32.9 % , from $ 554.7 million for the year ended december 31 , 2017. loans held for investment our total portfolio of loans held for investment consists of both loans held for investment at cost , which are presented in the consolidated financial statements as loans held for investment , net , and loans held for investment at fair value , which are presented in the financial statements as loans held for investment at fair value . the following tables show the various components of loans held for investment as of the dates indicated : replace_table_token_5_th 47 the following table illustrates the contractual maturities for our loans held for investment in aggregate upb and as a percentage of our total held for investment loan portfolio as of december 31 , 2019 : replace_table_token_6_th allowance for loan losses our allowance for loan losses increased to $ 2.2 million as of december 31 , 2019 , compared to $ 1.7 million as of december 31 , 2018. the increase in allowance is primarily due to the increase in our loan portfolio from december 31 , 2018 to december 31 , 2019. our allowance decreased to $ 1.7 million as of december 31 , 2018 , compared to $ 1.9 million as of december 31 , 2017. the decrease in the allowance for loan losses is based on an analysis of historical loan loss data from january 1 , 2012 through december 31 , 2019. we strive to minimize actual credit losses through our rigorous screening and underwriting process , life of loan portfolio management and special servicing practices . additionally , we believe borrower equity of 25 % to 40 % provides significant protection against credit losses should a loan become impaired . to estimate the allowance for loan losses in our loans held for investment portfolio , we follow a detailed internal process , considering a number of different factors including , but not limited to , our ongoing analyses of loans , historical loss rates , relevant environmental factors , relevant market research , trends in delinquencies , effects and changes in credit concentrations , and ongoing evaluation of fair values . the following table illustrates the activity in our allowance for loan losses over the periods indicated : replace_table_token_7_th credit quality – loans held for investment the following table provides delinquency information on our held for investment loan portfolio as of the dates indicated : replace_table_token_8_th 48 loans that are 90+ days past due , in bankruptcy , or in foreclosure are not accruing interest and are considered nonperforming loans . nonperforming loans were $ 112.2 million , or 6.1 % of our held for investment loan portfolio as of december 31 , 2019 , compared to $ 91.1 million , or 5.9 % as of december 31 , 2018 , and $ 73.3 million , or 5.7 % of the loan portfolio as of december 31 , 2017. we believe the significant equity cushion at origination and the active management of loans will continue to minimize credit losses on the resolution of

cash provided by ( used in ) operating activities , investing activities and financing activities as of the periods indicated : replace_table_token_30_th operating activities cash flows from operating activities primarily includes net income adjusted for ( 1 ) cash used for origination of held for sale loans and the related cash proceeds from the sales of such loans , ( 2 ) non-cash items including depreciation , provision for loan loss , discount accretion , and valuation changes , and ( 3 ) changes in the balances of operating assets and liabilities . for the year ended december 31 , 2019 , our net cash used in operating activities of $ 105.3 million consisted mainly of $ 336.9 million cash used to originate held for sale loans , offset by $ 179.6 million proceeds from sale of loans held for sale , $ 25.1 million in repayments on loans held for sale , and net income of $ 17.3 million . for the year ended december 31 , 2018 , our net cash used in operating activities of $ 72.5 million consisted mainly of net income of $ 7.6 million , offset by $ 148.8 million in cash used to originate held for sale loans , less proceeds from the sale and repayments of loans held for sale of $ 72.9 million and $ 3.5 million , respectively . changes in operating assets and liabilities resulted in cash used of $ 18.9 million , mainly as a result of a $ 16.2 million increase in interest receivable due to portfolio growth . for the year ended december 31 , 2017 , our net cash provided by operating activities of $ 37.6 million consisted mainly of net income of $ 14.0 million , offset by $ 42.9 million in cash used to originate held for sale loans , less proceeds from the sale of such loans of $ 46.3 million . changes in operating assets and liabilities resulted in cash provided of $ 4.8

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 ( used in ) operating activities , investing activities and financing activities as of the periods indicated : replace_table_token_30_th operating activities cash flows from operating activities primarily includes net income adjusted for ( 1 ) cash used for origination of held for sale loans and the related cash proceeds from the sales of such loans , ( 2 ) non-cash items including depreciation , provision for loan loss , discount accretion , and valuation changes , and ( 3 ) changes in the balances of operating assets and liabilities . for the year ended december 31 , 2019 , our net cash used in operating activities of $ 105.3 million consisted mainly of $ 336.9 million cash used to originate held for sale loans , offset by $ 179.6 million proceeds from sale of loans held for sale , $ 25.1 million in repayments on loans held for sale , and net income of $ 17.3 million . for the year ended december 31 , 2018 , our net cash used in operating activities of $ 72.5 million consisted mainly of net income of $ 7.6 million , offset by $ 148.8 million in cash used to originate held for sale loans , less proceeds from the sale and repayments of loans held for sale of $ 72.9 million and $ 3.5 million , respectively . changes in operating assets and liabilities resulted in cash used of $ 18.9 million , mainly as a result of a $ 16.2 million increase in interest receivable due to portfolio growth . for the year ended december 31 , 2017 , our net cash provided by operating activities of $ 37.6 million consisted mainly of net income of $ 14.0 million , offset by $ 42.9 million in cash used to originate held for sale loans , less proceeds from the sale of such loans of $ 46.3 million . changes in operating assets and liabilities resulted in cash provided of $ 4.8 ``` Suspicious Activity Report : ” one of our core profitably measurements is our portfolio related net interest margin , which measures the difference between interest income earned on our loan portfolio and interest expense paid on our portfolio-related debt , relative to the amount of loans outstanding over the period . our portfolio-related debt consists of our warehouse repurchase facilities and securitizations and excludes our corporate debt . for the year ended december 31 , 2019 , our portfolio related net interest margin was 4.13 % . we generate profits to the extent that our portfolio related net interest income exceeds our interest expense on corporate debt , provision for loan losses and operating expenses . for the year ended december 31 , 2019 , we generated income before income taxes and net income of $ 25.4 million and $ 17.3 million , respectively , and earned a pre-tax return on equity and return on equity of 17.4 % and 11.8 % , respectively . 40 items affecting comparability of results due to a number of factors , our historical financial results may not be comparable , either from period to period , or to our financial results in future periods . we have summarized the key factors affecting the comparability of our financial results below . income taxes prior to our initial public offering , the company operated as velocity financial , llc , which was formed as a delaware limited liability company , or llc , in 2012. until january 1 , 2018 , as an llc , we had elected to be treated as a partnership for u.s. federal and state income tax purposes , and as such , had generally not been subject to federal and state income taxes prior to january 1 , 2018. accordingly , the results of operations presented for the years prior to january 1 , 2018 do not include any provision for federal or state income taxes . as part of our initial public offering , we converted velocity financial , llc into a delaware corporation and changed our name to velocity financial , inc. , a transaction that we refer to as the “ conversion ” in this annual report form 10-k. the conversion is accounted for in accordance with asc 805-50 –business combinations , as a transaction between entities under common control . the conversion is not expected to impact our provision for income taxes or our deferred tax assets and liabilities . effective january 1 , 2018 , we elected to be treated as a corporation for u.s. federal and state income tax purposes . accordingly , the results of operations for the year ended december 31 , 2018 include the impacts of income taxes . as a result , the historical net income reported for any period prior to january 1 , 2018 , is not comparable to the net income reported for the year ended december 31 , 2018 or the net income anticipated in future periods . furthermore , in connection with the new tax treatment , we began recognizing , and will continue to recognize , deferred tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts of our existing assets and liabilities and their respective tax bases . deferred tax assets and liabilities are measured using the tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled . the effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statements of operations in the period that included the enactment date , as applicable . interest expense on corporate debt in 2014 , we entered into a five-year , $ 100.0 million corporate debt agreement with the owners of our class c preferred units , pursuant to which we issued at par senior secured notes , the 2014 senior secured notes , that mature on december 16 , 2019. the 2014 senior secured notes bear interest , at our election , at either 10 % annually paid in cash or 11 % annually paid in kind . in august 2019 , we entered into a five-year $ 153.0 million corporate debt agreement with owl rock capital corporation ( “ 2019 term loans ” ) . the 2019 term loans under this agreement bear interest at a rate equal to one-month libor plus 7.50 % and mature in august 2024. a portion of the net proceeds from the 2019 term loans was used to redeem all of the outstanding 2014 senior secured notes in august 2019. another portion of the net proceeds from the 2019 term loans , together with cash on hand , was used to repurchase our outstanding class c preferred units . as of december 31 , 2018 , including paid-in-kind interest , the 2014 senior secured notes balance was $ 127.6 million , and is presented as secured financing , net of debt issuance costs , on the consolidated statement of financial condition . the 2019 term loans balance was $ 153.0 million as of december 31 , 2019. during the year ended december 31 , 2019 , we incurred $ 14.6 million of interest expense related to the 2014 senior secured notes and the 2019 term loans . we used $ 75.7 million of the net proceeds from our ipo to lower our interest expense through the repayment of the $ 75.0 million outstanding principal amount on the 2019 term loans . 41 recent developments january 2020 ipo on january 16 , 2020 , velocity financial , llc converted from a delaware limited liability company to a delaware corporation and changed its name to velocity financial , inc. the conversion was accounted for in accordance with asc 805-50 – business combinations , as a transaction between entities under common control . all assets and liabilities of velocity financial , llc were contributed to velocity financial , inc. story_separator_special_tag operating efficiency we generate positive operating leverage to the extent that our revenue grows at a faster rate than our expenses . we believe our platform is highly scalable and that we can generate positive operating leverage in future periods , primarily due to the technology and other investments we have made in our platform to date and our focus on a scalable , cost-effective mortgage broker network to generate new loan originations . portfolio and asset quality key portfolio statistics replace_table_token_3_th total loans . total loans reflects the aggregate upb at the end of the period . it excludes deferred origination costs , acquisition discounts , fair value adjustments and allowance for loan losses . loan count . loan count reflects the number of loans at the end of the period . it includes all loans with an outstanding principal balance . average loan balance . average loan balance reflects the average upb at the end of the period ( i.e . , total loans divided by loan count ) . weighted average loan-to-value . loan-to-value , or ltv , reflects the ratio of the original loan amount to the appraised value of the underlying property at the time of origination . in instances where the ltv at origination is not available for an acquired loan , the ltv reflects our best estimate of value at the time of acquisition . weighted average ltv is calculated for the population of loans outstanding at the end of each specified period using the original loan amounts and appraised ltvs at the time of origination of each loan . ltv is a key statistic because requiring the borrower to invest more equity in the collateral minimizes our exposure for future credit losses . nonperforming loans . loans that are 90 or more days past due , in bankruptcy , or in foreclosure are not accruing interest and are considered nonperforming loans . the dollar amount of nonperforming loans presented in the table above reflects the upb of all loans that meet this definition . 46 originations and acquisitions the following table presents new loan originations and acquisitions and includes average loan size , weighted average coupon and weighted average loan-to-value for the periods indicated : replace_table_token_4_th over the periods shown , we have increased our origination volume by executing our strategy of continuing to serve and build loyalty within our network of mortgage brokers , while also expanding our network with new mortgage brokers through improved brand recognition . for the year ended december 31 , 2019 , we originated $ 1.0 billion of loans , which was an increase of $ 275.4 million , or 37.4 % from $ 737.3 million for the year ended december 31 , 2018. for the year ended december 31 , 2018 , we originated $ 737.3 million of loans , which was an increase of $ 182.6 million , or 32.9 % , from $ 554.7 million for the year ended december 31 , 2017. loans held for investment our total portfolio of loans held for investment consists of both loans held for investment at cost , which are presented in the consolidated financial statements as loans held for investment , net , and loans held for investment at fair value , which are presented in the financial statements as loans held for investment at fair value . the following tables show the various components of loans held for investment as of the dates indicated : replace_table_token_5_th 47 the following table illustrates the contractual maturities for our loans held for investment in aggregate upb and as a percentage of our total held for investment loan portfolio as of december 31 , 2019 : replace_table_token_6_th allowance for loan losses our allowance for loan losses increased to $ 2.2 million as of december 31 , 2019 , compared to $ 1.7 million as of december 31 , 2018. the increase in allowance is primarily due to the increase in our loan portfolio from december 31 , 2018 to december 31 , 2019. our allowance decreased to $ 1.7 million as of december 31 , 2018 , compared to $ 1.9 million as of december 31 , 2017. the decrease in the allowance for loan losses is based on an analysis of historical loan loss data from january 1 , 2012 through december 31 , 2019. we strive to minimize actual credit losses through our rigorous screening and underwriting process , life of loan portfolio management and special servicing practices . additionally , we believe borrower equity of 25 % to 40 % provides significant protection against credit losses should a loan become impaired . to estimate the allowance for loan losses in our loans held for investment portfolio , we follow a detailed internal process , considering a number of different factors including , but not limited to , our ongoing analyses of loans , historical loss rates , relevant environmental factors , relevant market research , trends in delinquencies , effects and changes in credit concentrations , and ongoing evaluation of fair values . the following table illustrates the activity in our allowance for loan losses over the periods indicated : replace_table_token_7_th credit quality – loans held for investment the following table provides delinquency information on our held for investment loan portfolio as of the dates indicated : replace_table_token_8_th 48 loans that are 90+ days past due , in bankruptcy , or in foreclosure are not accruing interest and are considered nonperforming loans . nonperforming loans were $ 112.2 million , or 6.1 % of our held for investment loan portfolio as of december 31 , 2019 , compared to $ 91.1 million , or 5.9 % as of december 31 , 2018 , and $ 73.3 million , or 5.7 % of the loan portfolio as of december 31 , 2017. we believe the significant equity cushion at origination and the active management of loans will continue to minimize credit losses on the resolution of

we assume no obligation to revise or update any forward-looking statement , whether written or oral , that we may make from time to time , whether as a result of new information , future developments or otherwise . background we design and manufacture seismic instruments and equipment and primarily market these products to the oil and gas industry to locate , characterize and monitor hydrocarbon producing reservoirs . we also market our seismic products to other industries for vibration monitoring , border and perimeter security and various geotechnical applications . we design and manufacture other products of a non-seismic nature , including water meter products , imaging equipment , offshore cables and provide contract manufacturing services . see the information under the heading “ business ” in this annual report on form 10-k. consolidated results of operations as we have reported in the past , our revenue and operating profits have varied significantly from quarter-to-quarter , and even year-to-year , and are expected to continue that trend in the future , especially when our quarterly or annual financial results are impacted by the presence or absence of relatively large , but somewhat erratic , sales of our oil and gas prm systems and or wireless seismic data acquisition systems for land and marine applications . our revenue and results of operations have not been materially impacted by inflation or changing prices in the past two fiscal years . we report and evaluate financial information for three segments : oil and gas markets , adjacent markets and emerging markets . summary financial data by business segment follows ( in thousands ) : replace_table_token_3_th overview in 2014 , our oil and gas markets segment experienced a softening in the demand for its traditional exploration products , particularly in north america , as capital budgets for oil and gas producers were trending away from exploration-focused activities toward production and exploitation activities . during this period oil production in north america 's unconventional shale reservoirs increased , as did oil production from other non-opec countries , resulting in an oversupply of crude oil in the world market and a resulting drop in energy prices . early in 2020 , decreased demand again caused by the oversupply of crude oil due to failed opec negotiations and , when combined with the impact of the covid–19 pandemic , led to a dramatic drop in crude oil prices which have subsequently recovered to some extent . to date the effect of the covid-19 pandemic has resulted in a global drop in demand for oil and gas . these declines in the demand for oil and gas have caused oil and gas exploration and production companies to experience a significant reduction in cash flows , which have resulted in and will likely continue to result in reductions in their capital spending budgets for oil and gas exploration-focused activities , including seismic data acquisition activities . our oil and gas markets segment has in recent years experienced strong demand for the rental of our marine wireless nodal products ; however , this demand could 21 significantly diminish during fiscal year 2021 or beyond as a result of the significant uncertainty in the outlook for oil and gas exploration . demand for new land-based seismic equipment in recent fiscal years has remained restrained due to capital limitations affecting many of our customers , along with their excess levels of underutilized equipment . as a result , revenue from the sale and rental of our land-based traditional and wireless products has remained low due to the reduced investment in exploration-focused seismic activities . we expect these challenging industry conditions will result in revenue from our traditional and land-based wireless products to remain below historical norms . in light of current market conditions , the inventory balances in our oil and gas markets business segment at september 30 , 2020 continued to exceed levels we consider appropriate for the current level of product demand . while we are aggressively working to reduce these legacy inventory balances , we are also adding new inventories for new wireless product developments and for other product demand in our adjacent markets segment . during periods of excessive inventory levels , our policy has been , and will continue to be , to record obsolescence expense as we experience reduced product demand and as our inventories continue to age . if difficult market conditions continue for the products in our oil and gas markets segment , we expect to record additional inventory obsolescence expense in fiscal year 2021 and beyond until product demand and or resulting inventory turnover return to acceptable levels . coronavirus ( covid-19 ) in march 2020 , the world health organization declared covid-19 a global pandemic and recommended containment and mitigation measures worldwide . the spread of covid-19 has resulted in most governments issuing restrictive orders , including “ shelter in place ” orders around the globe to assist in mitigating the spread of the virus . while we continue to support our customers , there remain uncertainties regarding the duration and the extent to which the covid-19 pandemic will ultimately have a negative impact on the demand for our products and services or on our supply chain . we continue to closely monitor the situation as information becomes readily available . as of the date of this filing , our operations have , for the most part , remained open globally and the impact of the effects of covid-19 to our personnel and operations has been limited . we have experienced lower than expected sales in our adjacent markets segment which we believe are primarily the result of the pandemic . we have also experienced a reduction in demand for certain products , cancellation of rental contracts and difficulty with field employees and salespeople traveling domestically and abroad to conduct our business . story_separator_special_tag if the carrying value of the asset group exceeds the expected future cash flows , an impairment loss is recognized to the extent that the carrying value of the asset group exceeds its fair value . management makes judgments regarding the interpretation of tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liability . in addition , we operate within multiple taxing jurisdictions and are subject to audit in these jurisdictions as well as by the internal revenue service . in management 's opinion , adequate provisions for income taxes have been made for all open tax years . the potential outcomes of examinations are regularly assessed in determining the adequacy of the provision for income taxes and income tax liabilities . management believes that adequate provisions have been made for reasonable and foreseeable outcomes related to uncertain tax matters . we record a write-down of our inventories when the cost basis of any manufactured product , including any estimated future costs to complete the manufacturing process , exceeds its net realizable value . inventories are stated at the lower of cost or net realizable value . cost is determined on a first-in , first-out method , except that our subsidiaries in the russian federation and the united kingdom use an average cost method to value their inventories . we periodically review the composition of our inventories to determine if market demand , product modifications , technology changes , excessive quantities on-hand and other factors hinder our ability to recover our investment in such inventories . management 's assessment is based upon historical product demand , estimated future product demand and various other judgments and estimates . inventory obsolescence reserves are recorded when such assessments reveal that portions or components of our inventory investment will not be realized in our operating activities . the value of our inventories not expected to be realized in cash , sold or consumed during our next operating cycle are classified as non-current assets in our consolidated balance sheets . we recognize revenue from product sales and services in accordance with asc topic 606 , revenue from contracts with customers . this standard applies to contracts for the sale of products and services and does not apply to contracts for the rental or lease of products . under this standard , we recognize revenue when performance of contractual obligations are satisfied , generally when control of the promised goods or services is transferred to our customers , in an amount that reflects the consideration we expect to be entitled in exchange for those goods or services . revenue from product sales is recognized when obligations under the terms of a contract are satisfied , control is transferred and collectability of the sales price is reasonably assured . transfer of control generally occurs with shipment or delivery , depending on the terms of the underlying contract . our products are generally sold without any customer acceptance provisions , and our standard terms of sale do not allow customers to return products for credit . most of our products do not require installation assistance or sophisticated instruction . we offer a standard product warranty , which obligates us to repair or replace our products having manufacturing defects . we maintain a reserve for future warranty costs based on historical experience or , in the absence of historical experience , management estimates . revenue from engineering services is recognized as services are rendered over the duration of a project or as billed on a per hour basis . field service revenue is recognized when services are rendered and is generally priced on a per day rate . we recognize rental revenue as earned over the rental period . rentals of our equipment generally range from daily rentals to rental periods of up to six months or longer . we recognize rental revenue in accordance with asc topic 842 , leases . in the event collectability of lease payments is not probable at the lease commencement date , we recognize revenue when payments are received . we regularly evaluate the collectability of our lease receivables on a lease by lease basis . the evaluation primarily consists of reviewing past due account balances and other factors such as the credit quality of the customer , historical trends of the customer and current economic conditions . we suspend the recognition of rental revenue when the collectability of amounts due are no longer probable and record a direct write-off of the lease receivable to rental revenue . recent accounting pronouncements please refer to note 1 to our consolidated financial statements contained in this annual report for a discussion of recent accounting pronouncements . 27 management 's current outlook and assumptions as further discussed above , there remains uncertainties regarding the duration and to what extent the covid-19 pandemic will ultimately impact the demand for our products and services or with our supply chain . regarding our oil and gas markets business segment , prices for a barrel of wti crude oil declined from over $ 100 in july 2014 to approximately $ 26 in february 2016 , and have recovered to approximately $ 40 today . with this substantial net decline in crude oil prices and the recent reduced global demand for oil and gas as a result of the covid-19 pandemic , oil and gas exploration and production companies experienced a significant reduction in cash flows resulting in sharp reductions in their capital spending budgets for oil and gas exploration-focused activities including seismic data acquisition activities . while we have experienced strong marine nodal rental activity in recent years including fiscal year 2020 , the need for new seismic equipment , particularly land-based equipment , remains restrained due to our customers ' ( i ) limited capital resources , ( ii ) lack of visibility into future demand for their seismic services and ( iii ) in some cases , under-utilized legacy equipment

liquidity and capital resources fiscal year 2020 at september 30 , 2020 , we had approximately $ 32.7 million in cash and cash equivalents . for fiscal year 2020 , we generated $ 18.1 million of cash from operating activities . our net loss of $ 19.2 million was offset by net non-cash charges of $ 40.7 million resulting from deferred income taxes , depreciation , amortization , inventory obsolescence , goodwill impairment , stock-based compensation , bad debt expense , change in estimate of collectability of rental revenue and changes in the estimated fair value of contingent consideration . other sources of cash included ( i ) a $ 5.2 million increase in deferred revenue and other liabilities primarily due to the deferral of revenue on a significant product sale occurring in our second fiscal quarter and partially offset by a decrease in customer deposits and ( ii ) a $ 2.5 million decrease in trade and other receivables resulting from the timing of collections from customers . offsetting these sources of cash were ( i ) a $ 2.5 million decrease in accounts payable resulting from the timing of payments to our suppliers , ( ii ) an $ 7.8 million increase in deferred cost of revenue and other assets primarily due to the deferral of cost on a product sale and an increase in the prepayment of certain expenses and ( iii ) the removal of a $ 0.7 million gross profit from the sale of used rental equipment since such gross profit is reflected in the proceeds from the sale of used rental equipment under investing activities . for fiscal year 2020 , we used cash of $ 4.1 million in investing activities . uses of cash included ( i ) a $ 5.5 million investment in our rental equipment primarily to expand our obx rental fleet and ( ii ) $ 2.9 million for additions to our property , plant and equipment . these uses of cash were partially offset by ( i ) $ 4.1 million of proceeds from the sale of rental equipment and ( ii ) $ 0.2 million of proceeds from the sale of 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. ```liquidity and capital resources fiscal year 2020 at september 30 , 2020 , we had approximately $ 32.7 million in cash and cash equivalents . for fiscal year 2020 , we generated $ 18.1 million of cash from operating activities . our net loss of $ 19.2 million was offset by net non-cash charges of $ 40.7 million resulting from deferred income taxes , depreciation , amortization , inventory obsolescence , goodwill impairment , stock-based compensation , bad debt expense , change in estimate of collectability of rental revenue and changes in the estimated fair value of contingent consideration . other sources of cash included ( i ) a $ 5.2 million increase in deferred revenue and other liabilities primarily due to the deferral of revenue on a significant product sale occurring in our second fiscal quarter and partially offset by a decrease in customer deposits and ( ii ) a $ 2.5 million decrease in trade and other receivables resulting from the timing of collections from customers . offsetting these sources of cash were ( i ) a $ 2.5 million decrease in accounts payable resulting from the timing of payments to our suppliers , ( ii ) an $ 7.8 million increase in deferred cost of revenue and other assets primarily due to the deferral of cost on a product sale and an increase in the prepayment of certain expenses and ( iii ) the removal of a $ 0.7 million gross profit from the sale of used rental equipment since such gross profit is reflected in the proceeds from the sale of used rental equipment under investing activities . for fiscal year 2020 , we used cash of $ 4.1 million in investing activities . uses of cash included ( i ) a $ 5.5 million investment in our rental equipment primarily to expand our obx rental fleet and ( ii ) $ 2.9 million for additions to our property , plant and equipment . these uses of cash were partially offset by ( i ) $ 4.1 million of proceeds from the sale of rental equipment and ( ii ) $ 0.2 million of proceeds from the sale of equipment . ``` Suspicious Activity Report : we assume no obligation to revise or update any forward-looking statement , whether written or oral , that we may make from time to time , whether as a result of new information , future developments or otherwise . background we design and manufacture seismic instruments and equipment and primarily market these products to the oil and gas industry to locate , characterize and monitor hydrocarbon producing reservoirs . we also market our seismic products to other industries for vibration monitoring , border and perimeter security and various geotechnical applications . we design and manufacture other products of a non-seismic nature , including water meter products , imaging equipment , offshore cables and provide contract manufacturing services . see the information under the heading “ business ” in this annual report on form 10-k. consolidated results of operations as we have reported in the past , our revenue and operating profits have varied significantly from quarter-to-quarter , and even year-to-year , and are expected to continue that trend in the future , especially when our quarterly or annual financial results are impacted by the presence or absence of relatively large , but somewhat erratic , sales of our oil and gas prm systems and or wireless seismic data acquisition systems for land and marine applications . our revenue and results of operations have not been materially impacted by inflation or changing prices in the past two fiscal years . we report and evaluate financial information for three segments : oil and gas markets , adjacent markets and emerging markets . summary financial data by business segment follows ( in thousands ) : replace_table_token_3_th overview in 2014 , our oil and gas markets segment experienced a softening in the demand for its traditional exploration products , particularly in north america , as capital budgets for oil and gas producers were trending away from exploration-focused activities toward production and exploitation activities . during this period oil production in north america 's unconventional shale reservoirs increased , as did oil production from other non-opec countries , resulting in an oversupply of crude oil in the world market and a resulting drop in energy prices . early in 2020 , decreased demand again caused by the oversupply of crude oil due to failed opec negotiations and , when combined with the impact of the covid–19 pandemic , led to a dramatic drop in crude oil prices which have subsequently recovered to some extent . to date the effect of the covid-19 pandemic has resulted in a global drop in demand for oil and gas . these declines in the demand for oil and gas have caused oil and gas exploration and production companies to experience a significant reduction in cash flows , which have resulted in and will likely continue to result in reductions in their capital spending budgets for oil and gas exploration-focused activities , including seismic data acquisition activities . our oil and gas markets segment has in recent years experienced strong demand for the rental of our marine wireless nodal products ; however , this demand could 21 significantly diminish during fiscal year 2021 or beyond as a result of the significant uncertainty in the outlook for oil and gas exploration . demand for new land-based seismic equipment in recent fiscal years has remained restrained due to capital limitations affecting many of our customers , along with their excess levels of underutilized equipment . as a result , revenue from the sale and rental of our land-based traditional and wireless products has remained low due to the reduced investment in exploration-focused seismic activities . we expect these challenging industry conditions will result in revenue from our traditional and land-based wireless products to remain below historical norms . in light of current market conditions , the inventory balances in our oil and gas markets business segment at september 30 , 2020 continued to exceed levels we consider appropriate for the current level of product demand . while we are aggressively working to reduce these legacy inventory balances , we are also adding new inventories for new wireless product developments and for other product demand in our adjacent markets segment . during periods of excessive inventory levels , our policy has been , and will continue to be , to record obsolescence expense as we experience reduced product demand and as our inventories continue to age . if difficult market conditions continue for the products in our oil and gas markets segment , we expect to record additional inventory obsolescence expense in fiscal year 2021 and beyond until product demand and or resulting inventory turnover return to acceptable levels . coronavirus ( covid-19 ) in march 2020 , the world health organization declared covid-19 a global pandemic and recommended containment and mitigation measures worldwide . the spread of covid-19 has resulted in most governments issuing restrictive orders , including “ shelter in place ” orders around the globe to assist in mitigating the spread of the virus . while we continue to support our customers , there remain uncertainties regarding the duration and the extent to which the covid-19 pandemic will ultimately have a negative impact on the demand for our products and services or on our supply chain . we continue to closely monitor the situation as information becomes readily available . as of the date of this filing , our operations have , for the most part , remained open globally and the impact of the effects of covid-19 to our personnel and operations has been limited . we have experienced lower than expected sales in our adjacent markets segment which we believe are primarily the result of the pandemic . we have also experienced a reduction in demand for certain products , cancellation of rental contracts and difficulty with field employees and salespeople traveling domestically and abroad to conduct our business . story_separator_special_tag if the carrying value of the asset group exceeds the expected future cash flows , an impairment loss is recognized to the extent that the carrying value of the asset group exceeds its fair value . management makes judgments regarding the interpretation of tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liability . in addition , we operate within multiple taxing jurisdictions and are subject to audit in these jurisdictions as well as by the internal revenue service . in management 's opinion , adequate provisions for income taxes have been made for all open tax years . the potential outcomes of examinations are regularly assessed in determining the adequacy of the provision for income taxes and income tax liabilities . management believes that adequate provisions have been made for reasonable and foreseeable outcomes related to uncertain tax matters . we record a write-down of our inventories when the cost basis of any manufactured product , including any estimated future costs to complete the manufacturing process , exceeds its net realizable value . inventories are stated at the lower of cost or net realizable value . cost is determined on a first-in , first-out method , except that our subsidiaries in the russian federation and the united kingdom use an average cost method to value their inventories . we periodically review the composition of our inventories to determine if market demand , product modifications , technology changes , excessive quantities on-hand and other factors hinder our ability to recover our investment in such inventories . management 's assessment is based upon historical product demand , estimated future product demand and various other judgments and estimates . inventory obsolescence reserves are recorded when such assessments reveal that portions or components of our inventory investment will not be realized in our operating activities . the value of our inventories not expected to be realized in cash , sold or consumed during our next operating cycle are classified as non-current assets in our consolidated balance sheets . we recognize revenue from product sales and services in accordance with asc topic 606 , revenue from contracts with customers . this standard applies to contracts for the sale of products and services and does not apply to contracts for the rental or lease of products . under this standard , we recognize revenue when performance of contractual obligations are satisfied , generally when control of the promised goods or services is transferred to our customers , in an amount that reflects the consideration we expect to be entitled in exchange for those goods or services . revenue from product sales is recognized when obligations under the terms of a contract are satisfied , control is transferred and collectability of the sales price is reasonably assured . transfer of control generally occurs with shipment or delivery , depending on the terms of the underlying contract . our products are generally sold without any customer acceptance provisions , and our standard terms of sale do not allow customers to return products for credit . most of our products do not require installation assistance or sophisticated instruction . we offer a standard product warranty , which obligates us to repair or replace our products having manufacturing defects . we maintain a reserve for future warranty costs based on historical experience or , in the absence of historical experience , management estimates . revenue from engineering services is recognized as services are rendered over the duration of a project or as billed on a per hour basis . field service revenue is recognized when services are rendered and is generally priced on a per day rate . we recognize rental revenue as earned over the rental period . rentals of our equipment generally range from daily rentals to rental periods of up to six months or longer . we recognize rental revenue in accordance with asc topic 842 , leases . in the event collectability of lease payments is not probable at the lease commencement date , we recognize revenue when payments are received . we regularly evaluate the collectability of our lease receivables on a lease by lease basis . the evaluation primarily consists of reviewing past due account balances and other factors such as the credit quality of the customer , historical trends of the customer and current economic conditions . we suspend the recognition of rental revenue when the collectability of amounts due are no longer probable and record a direct write-off of the lease receivable to rental revenue . recent accounting pronouncements please refer to note 1 to our consolidated financial statements contained in this annual report for a discussion of recent accounting pronouncements . 27 management 's current outlook and assumptions as further discussed above , there remains uncertainties regarding the duration and to what extent the covid-19 pandemic will ultimately impact the demand for our products and services or with our supply chain . regarding our oil and gas markets business segment , prices for a barrel of wti crude oil declined from over $ 100 in july 2014 to approximately $ 26 in february 2016 , and have recovered to approximately $ 40 today . with this substantial net decline in crude oil prices and the recent reduced global demand for oil and gas as a result of the covid-19 pandemic , oil and gas exploration and production companies experienced a significant reduction in cash flows resulting in sharp reductions in their capital spending budgets for oil and gas exploration-focused activities including seismic data acquisition activities . while we have experienced strong marine nodal rental activity in recent years including fiscal year 2020 , the need for new seismic equipment , particularly land-based equipment , remains restrained due to our customers ' ( i ) limited capital resources , ( ii ) lack of visibility into future demand for their seismic services and ( iii ) in some cases , under-utilized legacy equipment

the contracts for these engagements typically cover the detailed scope of work , phases , milestones , billing schedules and processes for review of work and clinical results . contracts are individually priced and negotiated based on the anticipated level of effort required to complete the project , the complexity and performance risks , and the level of competition in the market . direct costs associated with these contracts consist principally of compensation expense and benefits associated with our employees and other employee-related costs . while we can manage the majority of these costs relative to the amount of contracted services we have during any given period , direct costs as a 51 percentage of net service revenue can vary from period to period . such fluctuations are due to a variety of factors , including , among others : ( i ) the level of staff utilization created by our ability to effectively manage our workforce , ( ii ) adjustments to the timing of work on specific customer contracts , ( iii ) the experience mix of personnel assigned to projects , and ( iv ) the service mix and pricing of our contracts . in addition , as global projects wind down or as delays and cancellations occur , staffing levels in certain countries or functional areas can become misaligned with the current business volume . new business awards and backlog we add new business awards to backlog when we enter into a contract or when we receive a written commitment from the customer selecting us as its service provider , provided that ( i ) the customer has received appropriate internal funding approval , ( ii ) the project or projects are not contingent upon completion of another trial or event , ( iii ) the project or projects are expected to commence within the next 12 months and ( iv ) the customer has entered or intends to enter into a comprehensive contract as soon as practicable . contracts generally have terms ranging from several months to several years . we recognize revenue on these awards as services are performed , provided we have entered into a contractual commitment with the customer . our new business awards , net of cancellations of prior awards , for the years ended december 31 , 2015 , 2014 and 2013 were $ 1.18 billion , $ 0.95 billion and $ 0.81 billion , respectively , representing a 23.9 % increase from 2014 to 2015 and a 16.7 % increase from 2013 to 2014. net new business awards were higher for the year ended december 31 , 2015 , primarily due to ( i ) a lower cancellation rate in 2015 compared to 2014 , ( ii ) the continued growth of our business across therapeutic areas , and ( iii ) the timing of the conversion of our relationship with a major customer from primarily that of a functional service provider to a more traditional full service arrangement . new business awards have varied and will continue to vary significantly from quarter to quarter . the dollar amount of our backlog consists of anticipated future net service revenue from business awards that either ( 1 ) have not started but are anticipated to begin in the future , or ( 2 ) are in process and have not been completed . our backlog also reflects any cancellation or adjustment activity related to these contracts . the average duration of our contracts will fluctuate from period to period in the future based on the contracts comprising our backlog at any given time . the majority of our contracts can be terminated by our customers with 30 days ' notice . the dollar amount of our backlog is adjusted each quarter for foreign currency fluctuations . during the year ended december 31 , 2015 , fluctuations in foreign currency exchange rates resulted in an unfavorable impact on our december 31 , 2015 backlog in the amount of approximately $ 38.0 million , primarily due to the weakening of the euro and british pound against the u.s. dollar . our backlog as of december 31 , 2015 , 2014 and 2013 was $ 1.81 billion , $ 1.59 billion and $ 1.49 billion , respectively , representing a 14.1 % increase from 2014 to 2015 and a 6.6 % increase from 2013 to 2014. included within backlog at december 31 , 2015 is approximately $ 0.84 billion that we expect to translate into revenue in 2016 , with the remainder expected to generate revenue beyond 2016 . we believe that backlog and net new business awards might not be consistent indicators of future revenue because they have been , and likely will be , affected by a number of factors , including the variable size and duration of projects , many of which are performed over several years , and cancellations and changes to the scope of work during the course of projects . additionally , projects may be canceled or delayed by the customer or delayed by regulatory authorities . projects that have been delayed for less than 12 months remain in backlog , but the anticipated timing of the recognition of revenue is uncertain . we generally do not have a contractual right to the full amount of the revenue reflected in our backlog . if a customer cancels an award , we might be reimbursed for the costs we have incurred . fluctuations in our reported backlog and net new business award levels also result from the fact that we may receive a small number of relatively large orders in any given reporting period . because of these large orders , our backlog and net new business awards in that reporting period might reach levels that are not sustained in subsequent reporting periods . story_separator_special_tag this resulted in a triggering event , requiring an evaluation of both long-lived assets and goodwill for potential impairment . as a result of this evaluation , we recorded a total asset impairment charge of 3.9 million , comprised of a long-lived assets impairment charge of $ 1.0 million and a goodwill impairment charge of $ 2.9 million , which was the total remaining goodwill balance of our phase i services reporting unit as of the evaluation date . there were no further asset impairment charges during 2015. depreciation and amortization expense total depreciation and amortization expense increased to $ 56.0 million , for the year ended december 31 , 2015 from $ 54.5 million for the year ended december 31 , 2014 . amortization expense increased $ 5.0 million for the year ended december 31 , 2015 as compared to the year ended december 31 , 2014 , primarily due to the reduction in estimated useful lives of certain intangible assets during the second quarter of 2014. these increases were partially offset by a $ 3.5 million decrease in depreciation expense for the year ended december 31 , 2015 as compared to the year ended december 31 , 2014 , principally due to ( i ) lower capital expenditures in 2015 and ( ii ) the write-off of long-lived assets in the phase i services reporting unit during the first quarter of 2015. total depreciation and amortization expense decreased to $ 54.5 million , for the year ended december 31 , 2014 from $ 58.5 million for the year ended december 31 , 2013. this decrease is principally attributable to a decrease in amortization expense of $ 6.4 million , or 16.2 % , resulting from the intangible assets that were impaired or became fully amortized , partially offset by the increase in amortization expense as a result of the reduction of estimated useful lives of certain intangible assets . additionally depreciation expense increased primarily due to ( i ) our continued investment in our it infrastructure , and ( ii ) the reduction in the estimated useful lives on several assets during the first quarter of 2014 due to the consolidation of data centers and information systems . other income and expense , net for the years ended december 31 , 2015 , 2014 and 2013 , the components of total other expenses , net were as follows ( dollars in thousands ) : replace_table_token_11_th interest expense decreased $ 37.4 million for the year ended december 31 , 2015 compared to the year ended december 31 , 2014 and $ 7.8 million for the year ended december 31 , 2014 compared to the year ended december 31 , 2013. the decrease in interest expense during the last two years is the result of decreased interest rates as a result of our debt repayment and refinancing activities during the fourth quarter of 2014 and second quarter of 2015. the loss on extinguishment of debt was $ 9.8 million and $ 46.8 million for the year ended december 31 , 2015 and 2014 , respectively , as a result of the may 2015 and november 2014 debt refinancing transactions . other income ( expense ) , net , decreased $ 3.8 million for the year ended december 31 , 2015 compared to the year ended december 31 , 2014 and increased $ 9.3 million for the year ended december 31 , 2014 compared to the year ended december 31 , 2013. other income is primarily comprised of foreign currency gains and losses and the changes are principally driven by fluctuations in exchange rates . 58 income tax ( expense ) benefit income tax ( expense ) benefit was an expense of $ 13.9 million for the year ended december 31 , 2015 , compared to a benefit of $ 4.7 million for the year ended december 31 , 2014 , as a result of becoming profitable in 2015. income taxes for the year ended december 31 , 2015 were positively impacted by an income tax benefit of $ 31.9 million recognized as a result of the release of the valuation allowance on certain deferred tax assets , primarily u.s. operating loss carryforwards during the fourth quarter of 2015. the release of the valuation allowance was due to management 's conclusion that it was more likely than not that a portion of our deferred tax assets will be realized through future u.s. taxable income . this conclusion was based , in part , on our achieving sustained profitability in 2015 in the united states coupled with the reliability on our projections of ongoing positive future earnings . therefore , we released a significant portion of the valuation allowances related to these deferred tax assets . at december 31 , 2015 , we assessed both positive and negative evidence available to estimate whether future taxable income will be available to permit the use of the existing deferred tax assets . accordingly , notwithstanding the accumulation of historical losses experienced in the united states , based on our achieving sustained profitability in 2015 we reevaluated our ability to consider other subjective evidence , such as the reliability of our projections for future growth . given our current and anticipated sustained future earnings in the united states , we expect we will no longer need a significant portion of the valuation allowance related to these deferred tax assets . as a result of this change in assertion , the release of the valuation allowance on the net deferred tax assets associated with the operating loss carryforwards in the united states resulted in the recognition of certain related deferred tax assets and a decrease to income tax expense in the current period . other variances from the statutory rate of 35 % were due to foreign income inclusions related to deemed dividends from foreign subsidiaries , and the geographical split of pre-tax income . income tax benefit ( expense ) was a benefit of $

cash flows from operations increased by $ 73.3 million during the year ended december 31 , 2015 compared to the year ended december 31 , 2014 , primarily due to the $ 140.5 million increase in net income ( loss ) net of the $ 29.5 million change in adjustments for non-operating and non-cash items principally associated with a loss on the extinguishment of debt and debt refinancing costs . this increase was partially offset by a decline in cash received from working capital of $ 37.7 million . cash flows from operations increased by $ 94.2 million during the year ended december 31 , 2014 compared to the year ended december 31 , 2013 , primarily due to year-over-year increase of $ 39.7 million in cash provided from working capital , a $ 18.1 million decrease in net loss and a $ 36.9 million change in adjustments 61 for non-operating and non-cash items principally associated with a loss on the extinguishment of debt and debt refinancing costs of $ 49.2 million . the changes in operating assets and liabilities result primarily from the net movement in accounts receivable , unbilled revenue , and deferred revenue , coupled with changes in accrued expenses . fluctuations in billed and unbilled receivables and unearned revenue occur on a regular basis as we perform services , achieve milestones or other billing criteria , send invoices to customers and collect outstanding accounts receivable . this activity varies by individual customer and contract . we attempt to negotiate payment terms that provide for payment of services prior to or soon after the provision of services , but the levels of unbilled services and unearned revenue can vary significantly from period to period .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```cash flows from operations increased by $ 73.3 million during the year ended december 31 , 2015 compared to the year ended december 31 , 2014 , primarily due to the $ 140.5 million increase in net income ( loss ) net of the $ 29.5 million change in adjustments for non-operating and non-cash items principally associated with a loss on the extinguishment of debt and debt refinancing costs . this increase was partially offset by a decline in cash received from working capital of $ 37.7 million . cash flows from operations increased by $ 94.2 million during the year ended december 31 , 2014 compared to the year ended december 31 , 2013 , primarily due to year-over-year increase of $ 39.7 million in cash provided from working capital , a $ 18.1 million decrease in net loss and a $ 36.9 million change in adjustments 61 for non-operating and non-cash items principally associated with a loss on the extinguishment of debt and debt refinancing costs of $ 49.2 million . the changes in operating assets and liabilities result primarily from the net movement in accounts receivable , unbilled revenue , and deferred revenue , coupled with changes in accrued expenses . fluctuations in billed and unbilled receivables and unearned revenue occur on a regular basis as we perform services , achieve milestones or other billing criteria , send invoices to customers and collect outstanding accounts receivable . this activity varies by individual customer and contract . we attempt to negotiate payment terms that provide for payment of services prior to or soon after the provision of services , but the levels of unbilled services and unearned revenue can vary significantly from period to period . ``` Suspicious Activity Report : the contracts for these engagements typically cover the detailed scope of work , phases , milestones , billing schedules and processes for review of work and clinical results . contracts are individually priced and negotiated based on the anticipated level of effort required to complete the project , the complexity and performance risks , and the level of competition in the market . direct costs associated with these contracts consist principally of compensation expense and benefits associated with our employees and other employee-related costs . while we can manage the majority of these costs relative to the amount of contracted services we have during any given period , direct costs as a 51 percentage of net service revenue can vary from period to period . such fluctuations are due to a variety of factors , including , among others : ( i ) the level of staff utilization created by our ability to effectively manage our workforce , ( ii ) adjustments to the timing of work on specific customer contracts , ( iii ) the experience mix of personnel assigned to projects , and ( iv ) the service mix and pricing of our contracts . in addition , as global projects wind down or as delays and cancellations occur , staffing levels in certain countries or functional areas can become misaligned with the current business volume . new business awards and backlog we add new business awards to backlog when we enter into a contract or when we receive a written commitment from the customer selecting us as its service provider , provided that ( i ) the customer has received appropriate internal funding approval , ( ii ) the project or projects are not contingent upon completion of another trial or event , ( iii ) the project or projects are expected to commence within the next 12 months and ( iv ) the customer has entered or intends to enter into a comprehensive contract as soon as practicable . contracts generally have terms ranging from several months to several years . we recognize revenue on these awards as services are performed , provided we have entered into a contractual commitment with the customer . our new business awards , net of cancellations of prior awards , for the years ended december 31 , 2015 , 2014 and 2013 were $ 1.18 billion , $ 0.95 billion and $ 0.81 billion , respectively , representing a 23.9 % increase from 2014 to 2015 and a 16.7 % increase from 2013 to 2014. net new business awards were higher for the year ended december 31 , 2015 , primarily due to ( i ) a lower cancellation rate in 2015 compared to 2014 , ( ii ) the continued growth of our business across therapeutic areas , and ( iii ) the timing of the conversion of our relationship with a major customer from primarily that of a functional service provider to a more traditional full service arrangement . new business awards have varied and will continue to vary significantly from quarter to quarter . the dollar amount of our backlog consists of anticipated future net service revenue from business awards that either ( 1 ) have not started but are anticipated to begin in the future , or ( 2 ) are in process and have not been completed . our backlog also reflects any cancellation or adjustment activity related to these contracts . the average duration of our contracts will fluctuate from period to period in the future based on the contracts comprising our backlog at any given time . the majority of our contracts can be terminated by our customers with 30 days ' notice . the dollar amount of our backlog is adjusted each quarter for foreign currency fluctuations . during the year ended december 31 , 2015 , fluctuations in foreign currency exchange rates resulted in an unfavorable impact on our december 31 , 2015 backlog in the amount of approximately $ 38.0 million , primarily due to the weakening of the euro and british pound against the u.s. dollar . our backlog as of december 31 , 2015 , 2014 and 2013 was $ 1.81 billion , $ 1.59 billion and $ 1.49 billion , respectively , representing a 14.1 % increase from 2014 to 2015 and a 6.6 % increase from 2013 to 2014. included within backlog at december 31 , 2015 is approximately $ 0.84 billion that we expect to translate into revenue in 2016 , with the remainder expected to generate revenue beyond 2016 . we believe that backlog and net new business awards might not be consistent indicators of future revenue because they have been , and likely will be , affected by a number of factors , including the variable size and duration of projects , many of which are performed over several years , and cancellations and changes to the scope of work during the course of projects . additionally , projects may be canceled or delayed by the customer or delayed by regulatory authorities . projects that have been delayed for less than 12 months remain in backlog , but the anticipated timing of the recognition of revenue is uncertain . we generally do not have a contractual right to the full amount of the revenue reflected in our backlog . if a customer cancels an award , we might be reimbursed for the costs we have incurred . fluctuations in our reported backlog and net new business award levels also result from the fact that we may receive a small number of relatively large orders in any given reporting period . because of these large orders , our backlog and net new business awards in that reporting period might reach levels that are not sustained in subsequent reporting periods . story_separator_special_tag this resulted in a triggering event , requiring an evaluation of both long-lived assets and goodwill for potential impairment . as a result of this evaluation , we recorded a total asset impairment charge of 3.9 million , comprised of a long-lived assets impairment charge of $ 1.0 million and a goodwill impairment charge of $ 2.9 million , which was the total remaining goodwill balance of our phase i services reporting unit as of the evaluation date . there were no further asset impairment charges during 2015. depreciation and amortization expense total depreciation and amortization expense increased to $ 56.0 million , for the year ended december 31 , 2015 from $ 54.5 million for the year ended december 31 , 2014 . amortization expense increased $ 5.0 million for the year ended december 31 , 2015 as compared to the year ended december 31 , 2014 , primarily due to the reduction in estimated useful lives of certain intangible assets during the second quarter of 2014. these increases were partially offset by a $ 3.5 million decrease in depreciation expense for the year ended december 31 , 2015 as compared to the year ended december 31 , 2014 , principally due to ( i ) lower capital expenditures in 2015 and ( ii ) the write-off of long-lived assets in the phase i services reporting unit during the first quarter of 2015. total depreciation and amortization expense decreased to $ 54.5 million , for the year ended december 31 , 2014 from $ 58.5 million for the year ended december 31 , 2013. this decrease is principally attributable to a decrease in amortization expense of $ 6.4 million , or 16.2 % , resulting from the intangible assets that were impaired or became fully amortized , partially offset by the increase in amortization expense as a result of the reduction of estimated useful lives of certain intangible assets . additionally depreciation expense increased primarily due to ( i ) our continued investment in our it infrastructure , and ( ii ) the reduction in the estimated useful lives on several assets during the first quarter of 2014 due to the consolidation of data centers and information systems . other income and expense , net for the years ended december 31 , 2015 , 2014 and 2013 , the components of total other expenses , net were as follows ( dollars in thousands ) : replace_table_token_11_th interest expense decreased $ 37.4 million for the year ended december 31 , 2015 compared to the year ended december 31 , 2014 and $ 7.8 million for the year ended december 31 , 2014 compared to the year ended december 31 , 2013. the decrease in interest expense during the last two years is the result of decreased interest rates as a result of our debt repayment and refinancing activities during the fourth quarter of 2014 and second quarter of 2015. the loss on extinguishment of debt was $ 9.8 million and $ 46.8 million for the year ended december 31 , 2015 and 2014 , respectively , as a result of the may 2015 and november 2014 debt refinancing transactions . other income ( expense ) , net , decreased $ 3.8 million for the year ended december 31 , 2015 compared to the year ended december 31 , 2014 and increased $ 9.3 million for the year ended december 31 , 2014 compared to the year ended december 31 , 2013. other income is primarily comprised of foreign currency gains and losses and the changes are principally driven by fluctuations in exchange rates . 58 income tax ( expense ) benefit income tax ( expense ) benefit was an expense of $ 13.9 million for the year ended december 31 , 2015 , compared to a benefit of $ 4.7 million for the year ended december 31 , 2014 , as a result of becoming profitable in 2015. income taxes for the year ended december 31 , 2015 were positively impacted by an income tax benefit of $ 31.9 million recognized as a result of the release of the valuation allowance on certain deferred tax assets , primarily u.s. operating loss carryforwards during the fourth quarter of 2015. the release of the valuation allowance was due to management 's conclusion that it was more likely than not that a portion of our deferred tax assets will be realized through future u.s. taxable income . this conclusion was based , in part , on our achieving sustained profitability in 2015 in the united states coupled with the reliability on our projections of ongoing positive future earnings . therefore , we released a significant portion of the valuation allowances related to these deferred tax assets . at december 31 , 2015 , we assessed both positive and negative evidence available to estimate whether future taxable income will be available to permit the use of the existing deferred tax assets . accordingly , notwithstanding the accumulation of historical losses experienced in the united states , based on our achieving sustained profitability in 2015 we reevaluated our ability to consider other subjective evidence , such as the reliability of our projections for future growth . given our current and anticipated sustained future earnings in the united states , we expect we will no longer need a significant portion of the valuation allowance related to these deferred tax assets . as a result of this change in assertion , the release of the valuation allowance on the net deferred tax assets associated with the operating loss carryforwards in the united states resulted in the recognition of certain related deferred tax assets and a decrease to income tax expense in the current period . other variances from the statutory rate of 35 % were due to foreign income inclusions related to deemed dividends from foreign subsidiaries , and the geographical split of pre-tax income . income tax benefit ( expense ) was a benefit of $

when used in this section , words such as “ anticipate , ” “ believe , ” “ estimate , ” “ expect , ” “ intend ” and similar expressions , as they relate to our management , identify forward-looking statements . such forward-looking statements are based on the beliefs of management , as well as assumptions made by , and information currently available to , our management . actual results could differ materially from those contemplated by the forward- looking statements as a result of certain factors detailed herein . all subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are qualified in their entirety by this paragraph . some of the information contained in this discussion and analysis or set forth elsewhere , including information with respect to our plans and strategy for our business include forward-looking statements that involve risks , uncertainties and assumptions . you should read the sections titled “ cautionary note regarding forward-looking statements ” and “ risk factors ” for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis . company overview we are a clinical-stage biopharmaceutical company that discovers , develops and seeks to commercialize next-generation therapeutics for diseases representing significant unmet medical needs and burden to society , patients , and their families . our current pipeline focuses on the central nervous system , respiratory , and metabolic diseases . we use a chemical genomics driven technology platform and proprietary chemistry to develop new medicines . our pipeline currently has two drug candidates , rp5063 ( brilaroxazine ) and rp1208 . both are new chemical entities discovered in-house . we have been granted composition of matter patents for both rp5063 and r1208 in the united states ( u.s. ) , europe , and several other countries . our lead drug candidate , rp5063 , is ready for continued clinical development for multiple neuropsychiatric indications . these include schizophrenia , bipolar disorder ( bd ) , major depressive disorder ( mdd ) , behavioral and psychotic symptoms , dementia or alzheimer 's disease ( bpsd ) , parkinson 's disease psychosis ( pdp ) , and attention deficit hyperactivity disorder ( adhd ) . furthermore , rp5063 is also ready for clinical development for two respiratory indications — pulmonary arterial hypertension ( pah ) and idiopathic pulmonary fibrosis ( ipf ) . the u.s. food and drug administration ( fda ) has granted orphan drug designation to rp5063 for the treatment of pah in november 2016 and ipf in april 2018 . 60 our primary focus is to complete the clinical development of rp5063 for the treatment of acute and maintenance schizophrenia . subject to the receipt of additional financing , we may also continue the clinical development of rp5063 for the treatment of bd , mdd , bpsd , pdp , adhd , pah and ipf . moreover , subject to the receipt of additional financing , we may also advance the development of our second drug candidate , rp1208 , for the treatment of depression and obesity . impact of covid-19 in response to the spread of covid-19 , we have taken temporary precautionary measures intended to help minimize the risk of the virus to our employees and community , including temporarily requiring employees to work remotely and suspending all non-essential travel for our employees . as a result of the covid-19 pandemic , we may experience disruptions that could adversely impact our business . the covid-19 pandemic may negatively affect clinical site initiation , patient recruitment and enrollment , patient dosing , distribution of drug to clinical sites and clinical trial monitoring for our clinical trials . the covid-19 pandemic may also negatively affect the operations of the third-party contract research organizations that we intend to rely upon to assist us in conducting our clinical trials and the contract manufacturers who manufacture our drug candidates . we are continuing to assess the potential impact of the covid-19 pandemic on our business and operations . for additional information on the various risks posed by the covid-19 pandemic , refer to part i—item 1a—risk factors of this annual report on form 10-k. business combination and domestication on december 14 , 2020 , our predecessor company , formerly known as tenzing acquisition corp. , a british virgin islands exempted company ( “ tenzing ” ) , and reviva pharmaceuticals , inc. , a delaware corporation ( together with its consolidated subsidiaries , “ old reviva ” ) , consummated the transactions contemplated by the agreement and plan of merger , dated as of july 20 , 2020 ( as amended , the “ merger agreement ” ) , by and among tenzing , tenzing merger subsidiary inc. , a delaware corporation and wholly-owned subsidiary of tenzing ( “ merger sub ” ) , old reviva , and the other parties thereto . pursuant to the merger agreement , merger sub merged with and into old reviva , with old reviva surviving as our wholly owned subsidiary . we refer to this transaction as the business combination . in connection with and one day prior to the completion of the business combination , tenzing re-domiciled out of the british virgin islands and continued as a company incorporated in the state of delaware , and changed its name to reviva pharmaceuticals holdings , inc. prior to the completion of the business combination , the company was a shell company . following the business combination , the business of old reviva is the business of the company . story_separator_special_tag the company provides a valuation allowance , if necessary , to reduce deferred tax assets to their estimated realizable value . in evaluating the ability recover its deferred income tax assets , the company considers all available positive and negative evidence , including its opening results , ongoing tax planning , and forecasts of future taxable income on a jurisdiction-by-jurisdiction basis . the company generated a deferred tax asset through net operating loss carry-forward . however , a valuation allowance of 100 % has been established due to the uncertainty of the company 's realization of the net operating loss carry forward prior to its expiration . in the event the company determines that it would be able to realize its deferred income tax assets in the future in excess of their net recorded amount , it would make an adjustment to the valuation allowance that would reduce the provision for income taxes . conversely , in the event that all or part of the net deferred tax assets are determined not to be realizable in the future , an adjustment to the valuation allowance would be charged to earnings in the period such determination is made . 65 fair value measurements of warrants asc 820 “ fair value measurements ” defines fair value , establishes a framework for measuring fair value in gaap and expands disclosures about fair value measurements . asc 820 defines fair value 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 . asc 820 establishes a fair value hierarchy that distinguishes between ( 1 ) market participant assumptions developed based on market data obtained from independent sources ( observable inputs ) and ( 2 ) an entity 's own assumptions about market participant assumptions developed based on the best information available in the circumstances ( unobservable inputs ) . the fair value hierarchy consists of three broad levels , which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities ( level 1 ) and the lowest priority to unobservable inputs ( level 3 ) . the three levels of the fair value hierarchy under asc 820 are described below : ● level 1 — quoted prices ( unadjusted ) in active markets that are accessible at the measurement date for assets or liabilities . the fair value hierarchy gives the highest priority to level 1 inputs . ● level 2 — directly or indirectly observable inputs as of the reporting date through correlation with market data , including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active . level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models , such as interest rates and volatility factors , are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument . ● level 3 — unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment . these values are generally determined using pricing models for which the assumptions utilize management 's estimates of market participant assumptions . in determining the fair value of warrants , the company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value . beneficial conversion features in accordance with fasb asc 470-20 , “ debt with conversion and other options ” the company records a beneficial conversion feature ( “ bcf ” ) related to the issuance of convertible debt or preferred stock instruments that have conversion features at fixed rates that are in-the-money when issued . the bcf for the convertible instruments is recognized and measured by allocating a portion of the proceeds equal to the intrinsic value of that feature to additional paid-in capital . the intrinsic value is generally calculated at the commitment date as the difference between the conversion price and the fair value of the common stock or other securities into which the security is convertible , multiplied by the number of shares into which the security is convertible . if certain other securities are issued with the convertible security , the proceeds are allocated among the different components . the portion of the proceeds allocated to the convertible security is divided by the contractual number of the conversion shares to determine the effective conversion price , which is used to measure the bcf . the effective conversion price is used to compute the intrinsic value . the value of the bcf is limited to the basis that is initially allocated to the convertible security . results of operations comparison of the years ended december 31 , 2020 and 2019 : the following table summarizes our results of operation for the years ended december 31 , 2020 and 2019 : replace_table_token_1_th research & development expenses we incurred approximately $ 295,000 and $ 196,000 in research and development expenses for the years ended december 31 , 2020 and 2019 , respectively . the primary reason for the increase or $ 99,000 , or 51 % , was due to higher salary expenditures and increased consulting and drug development costs . our research and development expenses are expected to increase for the foreseeable future as we continue to advance our platform and product candidates . general administrative expenses for the years ended december 31 , 2020 and 2019 , we incurred approximately $ 2.1 million and $ 181,000 in general and administrative expenses . the increase of $ 2.0 million , or 1,081 % , was due to warrant expense of approximately $ 1,125,000 , $ 345,000 attributable to the increased use

liquidity and capital resources as of december 31 , 2020 , we had cash and cash equivalents of approximately $ 8.8 million . we expect to continue to incur significant expenses and operating losses for the foreseeable future as we continue our research and preclinical and clinical development of our product candidates ; expand the scope of our current studies for our product candidates ; initiate additional preclinical , clinical or other studies for our product candidates ; change or add additional manufacturers or suppliers ; seek regulatory and marketing approvals for any of our product candidates that successfully complete clinical studies ; seek to identify , evaluate and validate additional product candidates ; acquire or in-license other product candidates and technologies ; maintain , protect and expand our intellectual property portfolio ; attract and retain skilled personnel ; and experience any delays or encounter issues with any of the above . until such time as we can generate substantial product revenue , if ever , we expect to finance our cash needs through a combination of equity or debt financings and collaboration agreements . we do not currently have any committed external sources of capital . to the extent that we raise additional capital through the future sale of equity or debt , the ownership interest of our stockholders will be diluted , and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our existing stockholders .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 approximately $ 8.8 million . we expect to continue to incur significant expenses and operating losses for the foreseeable future as we continue our research and preclinical and clinical development of our product candidates ; expand the scope of our current studies for our product candidates ; initiate additional preclinical , clinical or other studies for our product candidates ; change or add additional manufacturers or suppliers ; seek regulatory and marketing approvals for any of our product candidates that successfully complete clinical studies ; seek to identify , evaluate and validate additional product candidates ; acquire or in-license other product candidates and technologies ; maintain , protect and expand our intellectual property portfolio ; attract and retain skilled personnel ; and experience any delays or encounter issues with any of the above . until such time as we can generate substantial product revenue , if ever , we expect to finance our cash needs through a combination of equity or debt financings and collaboration agreements . we do not currently have any committed external sources of capital . to the extent that we raise additional capital through the future sale of equity or debt , the ownership interest of our stockholders will be diluted , and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our existing stockholders . ``` Suspicious Activity Report : when used in this section , words such as “ anticipate , ” “ believe , ” “ estimate , ” “ expect , ” “ intend ” and similar expressions , as they relate to our management , identify forward-looking statements . such forward-looking statements are based on the beliefs of management , as well as assumptions made by , and information currently available to , our management . actual results could differ materially from those contemplated by the forward- looking statements as a result of certain factors detailed herein . all subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are qualified in their entirety by this paragraph . some of the information contained in this discussion and analysis or set forth elsewhere , including information with respect to our plans and strategy for our business include forward-looking statements that involve risks , uncertainties and assumptions . you should read the sections titled “ cautionary note regarding forward-looking statements ” and “ risk factors ” for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis . company overview we are a clinical-stage biopharmaceutical company that discovers , develops and seeks to commercialize next-generation therapeutics for diseases representing significant unmet medical needs and burden to society , patients , and their families . our current pipeline focuses on the central nervous system , respiratory , and metabolic diseases . we use a chemical genomics driven technology platform and proprietary chemistry to develop new medicines . our pipeline currently has two drug candidates , rp5063 ( brilaroxazine ) and rp1208 . both are new chemical entities discovered in-house . we have been granted composition of matter patents for both rp5063 and r1208 in the united states ( u.s. ) , europe , and several other countries . our lead drug candidate , rp5063 , is ready for continued clinical development for multiple neuropsychiatric indications . these include schizophrenia , bipolar disorder ( bd ) , major depressive disorder ( mdd ) , behavioral and psychotic symptoms , dementia or alzheimer 's disease ( bpsd ) , parkinson 's disease psychosis ( pdp ) , and attention deficit hyperactivity disorder ( adhd ) . furthermore , rp5063 is also ready for clinical development for two respiratory indications — pulmonary arterial hypertension ( pah ) and idiopathic pulmonary fibrosis ( ipf ) . the u.s. food and drug administration ( fda ) has granted orphan drug designation to rp5063 for the treatment of pah in november 2016 and ipf in april 2018 . 60 our primary focus is to complete the clinical development of rp5063 for the treatment of acute and maintenance schizophrenia . subject to the receipt of additional financing , we may also continue the clinical development of rp5063 for the treatment of bd , mdd , bpsd , pdp , adhd , pah and ipf . moreover , subject to the receipt of additional financing , we may also advance the development of our second drug candidate , rp1208 , for the treatment of depression and obesity . impact of covid-19 in response to the spread of covid-19 , we have taken temporary precautionary measures intended to help minimize the risk of the virus to our employees and community , including temporarily requiring employees to work remotely and suspending all non-essential travel for our employees . as a result of the covid-19 pandemic , we may experience disruptions that could adversely impact our business . the covid-19 pandemic may negatively affect clinical site initiation , patient recruitment and enrollment , patient dosing , distribution of drug to clinical sites and clinical trial monitoring for our clinical trials . the covid-19 pandemic may also negatively affect the operations of the third-party contract research organizations that we intend to rely upon to assist us in conducting our clinical trials and the contract manufacturers who manufacture our drug candidates . we are continuing to assess the potential impact of the covid-19 pandemic on our business and operations . for additional information on the various risks posed by the covid-19 pandemic , refer to part i—item 1a—risk factors of this annual report on form 10-k. business combination and domestication on december 14 , 2020 , our predecessor company , formerly known as tenzing acquisition corp. , a british virgin islands exempted company ( “ tenzing ” ) , and reviva pharmaceuticals , inc. , a delaware corporation ( together with its consolidated subsidiaries , “ old reviva ” ) , consummated the transactions contemplated by the agreement and plan of merger , dated as of july 20 , 2020 ( as amended , the “ merger agreement ” ) , by and among tenzing , tenzing merger subsidiary inc. , a delaware corporation and wholly-owned subsidiary of tenzing ( “ merger sub ” ) , old reviva , and the other parties thereto . pursuant to the merger agreement , merger sub merged with and into old reviva , with old reviva surviving as our wholly owned subsidiary . we refer to this transaction as the business combination . in connection with and one day prior to the completion of the business combination , tenzing re-domiciled out of the british virgin islands and continued as a company incorporated in the state of delaware , and changed its name to reviva pharmaceuticals holdings , inc. prior to the completion of the business combination , the company was a shell company . following the business combination , the business of old reviva is the business of the company . story_separator_special_tag the company provides a valuation allowance , if necessary , to reduce deferred tax assets to their estimated realizable value . in evaluating the ability recover its deferred income tax assets , the company considers all available positive and negative evidence , including its opening results , ongoing tax planning , and forecasts of future taxable income on a jurisdiction-by-jurisdiction basis . the company generated a deferred tax asset through net operating loss carry-forward . however , a valuation allowance of 100 % has been established due to the uncertainty of the company 's realization of the net operating loss carry forward prior to its expiration . in the event the company determines that it would be able to realize its deferred income tax assets in the future in excess of their net recorded amount , it would make an adjustment to the valuation allowance that would reduce the provision for income taxes . conversely , in the event that all or part of the net deferred tax assets are determined not to be realizable in the future , an adjustment to the valuation allowance would be charged to earnings in the period such determination is made . 65 fair value measurements of warrants asc 820 “ fair value measurements ” defines fair value , establishes a framework for measuring fair value in gaap and expands disclosures about fair value measurements . asc 820 defines fair value 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 . asc 820 establishes a fair value hierarchy that distinguishes between ( 1 ) market participant assumptions developed based on market data obtained from independent sources ( observable inputs ) and ( 2 ) an entity 's own assumptions about market participant assumptions developed based on the best information available in the circumstances ( unobservable inputs ) . the fair value hierarchy consists of three broad levels , which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities ( level 1 ) and the lowest priority to unobservable inputs ( level 3 ) . the three levels of the fair value hierarchy under asc 820 are described below : ● level 1 — quoted prices ( unadjusted ) in active markets that are accessible at the measurement date for assets or liabilities . the fair value hierarchy gives the highest priority to level 1 inputs . ● level 2 — directly or indirectly observable inputs as of the reporting date through correlation with market data , including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active . level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models , such as interest rates and volatility factors , are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument . ● level 3 — unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment . these values are generally determined using pricing models for which the assumptions utilize management 's estimates of market participant assumptions . in determining the fair value of warrants , the company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considers counterparty credit risk in its assessment of fair value . beneficial conversion features in accordance with fasb asc 470-20 , “ debt with conversion and other options ” the company records a beneficial conversion feature ( “ bcf ” ) related to the issuance of convertible debt or preferred stock instruments that have conversion features at fixed rates that are in-the-money when issued . the bcf for the convertible instruments is recognized and measured by allocating a portion of the proceeds equal to the intrinsic value of that feature to additional paid-in capital . the intrinsic value is generally calculated at the commitment date as the difference between the conversion price and the fair value of the common stock or other securities into which the security is convertible , multiplied by the number of shares into which the security is convertible . if certain other securities are issued with the convertible security , the proceeds are allocated among the different components . the portion of the proceeds allocated to the convertible security is divided by the contractual number of the conversion shares to determine the effective conversion price , which is used to measure the bcf . the effective conversion price is used to compute the intrinsic value . the value of the bcf is limited to the basis that is initially allocated to the convertible security . results of operations comparison of the years ended december 31 , 2020 and 2019 : the following table summarizes our results of operation for the years ended december 31 , 2020 and 2019 : replace_table_token_1_th research & development expenses we incurred approximately $ 295,000 and $ 196,000 in research and development expenses for the years ended december 31 , 2020 and 2019 , respectively . the primary reason for the increase or $ 99,000 , or 51 % , was due to higher salary expenditures and increased consulting and drug development costs . our research and development expenses are expected to increase for the foreseeable future as we continue to advance our platform and product candidates . general administrative expenses for the years ended december 31 , 2020 and 2019 , we incurred approximately $ 2.1 million and $ 181,000 in general and administrative expenses . the increase of $ 2.0 million , or 1,081 % , was due to warrant expense of approximately $ 1,125,000 , $ 345,000 attributable to the increased use

long-term financing , both within the united states and mexico and globally ; market and regulatory responses to climate change ; 24 changes in labor costs and labor difficulties , including strikes and work stoppages affecting either operations or customers ' abilities to deliver goods for shipment ; kcs 's reliance on certain key suppliers of core rail equipment ; availability of qualified personnel ; and acts of terrorism , war or other acts of violence or crime or risk of such activities . forward-looking statements reflect the information only as of the date on which they are made . the company does not undertake any obligation to update any forward-looking statements to reflect future events , developments , or other information . if kcs does update one or more forward-looking statements , no inference should be drawn that additional updates will be made regarding that statement or any other forward-looking statements . corporate overview kansas city southern , a delaware corporation , is a transportation holding company that has railroad investments in the u.s. , mexico and panama . in the u.s. , the company serves the central and south central u.s. its international holdings serve northeastern and central mexico and the port cities of lazaro cardenas , tampico and veracruz , and a fifty percent interest in panama canal railway company provides ocean-to-ocean freight and passenger service along the panama canal . kcs 's north american rail holdings and strategic alliances are primary components of a nafta railway system , linking the commercial and industrial centers of the u.s. , canada and mexico . its principal subsidiaries and affiliates include the following : the kansas city southern railway company ( “ kcsr ” ) , a wholly-owned subsidiary ; kcsm , a wholly-owned subsidiary ; mexrail , inc. ( “ mexrail ” ) , a wholly-owned consolidated subsidiary ; which , in turn , wholly owns the texas mexican railway company ( “ tex-mex ” ) ; kcsm servicios , s.a. de c.v. ( “ kcsm servicios ” ) , a wholly-owned subsidiary ; meridian speedway , llc ( “ msllc ” ) , a seventy percent-owned consolidated affiliate ; panama canal railway company ( “ pcrc ” ) , a fifty percent-owned unconsolidated affiliate ; tfcm , s. de r.l . de c.v. ( “ tcm ” ) , a forty-five percent-owned unconsolidated affiliate ; ferrocarril y terminal del valle de méxico , s.a. de c.v. ( “ ftvm ” ) , a twenty-five percent-owned unconsolidated affiliate ; and ptc-220 , llc ( “ ptc-220 ” ) , a fourteen percent-owned unconsolidated affiliate . executive summary 2017 financial overview revenues in 2017 increased 11 % from 2016 , due to 6 % and 5 % increases in revenue per carload/unit and carload/unit volumes , respectively . revenue per carload/unit increased due to mix , increased average length of haul , positive pricing impacts and higher fuel surcharge . energy revenue increased $ 81.1 million , primarily due to an increase in utility coal volumes due to higher natural gas prices and lower coal inventory levels . in addition , frac sand volumes increased due to strong demand as a result of higher crude oil prices . operating expenses increased 10 % compared to 2016 , primarily due to higher fuel prices and consumption , and compensation and benefits . expense fluctuations resulting from higher fuel prices largely offset the revenue fluctuations driven by these same macroeconomic factors . operating expenses as a percentage of revenues decreased to 64.3 % in 2017 from 64.9 % in 2016 . in 2017 , the company invested $ 559.5 million in capital expenditures . in addition , the company purchased $ 42.6 million of equipment under existing operating leases or replacement equipment as certain operating leases expired , which was primarily funded with internally generated cash flows and short-term borrowings . the company reported 2017 earnings of $ 9.16 per diluted share on consolidated net income attributable to kansas city southern and subsidiaries of $ 962.0 million for the year ended december 31 , 2017 , compared to annual earnings of $ 4.43 per 25 diluted share on consolidated net income attributable to kansas city southern and subsidiaries of $ 478.1 million for 2016 , due to increased net income , largely resulting from the recognition of a $ 413.0 million net tax benefit as a result of the tax cuts and jobs act ( the “ tax reform act ” ) , and the accelerated share repurchase program that was implemented during the third quarter of 2017 , which reduced the weighted-average shares outstanding . further information on the tax impacts of the tax reform act is included in the company 's consolidated financial statements presented in note 12 to the consolidated financial statements in item 8. results of operations year ended december 31 , 2017 , compared with the year ended december 31 , 2016 the following summarizes kcs 's consolidated income statement components ( in millions ) : replace_table_token_5_th revenues the following summarizes revenues ( in millions ) , carload/unit statistics ( in thousands ) and revenue per carload/unit : replace_table_token_6_th 26 revenues include revenue for transportation services and fuel surcharges . notwithstanding the impacts of hurricane harvey , revenues and carload/unit volumes increased 11 % and 5 % , respectively , for the year ended december 31 , 2017 , compared to the prior year . revenue per carload/unit increased by 6 % due to mix , increased average length of haul , positive pricing impacts , and higher fuel surcharge . energy revenues increased $ 81.1 million , primarily due to an increase in utility coal volumes due to higher natural gas prices and lower coal inventory levels . in addition , frac sand volumes increased due to strong demand as a result of higher crude oil prices . story_separator_special_tag revenues decreased $ 23.9 million for the year ended december 31 , 2016 , compared to 2015 , due to a 4 % decrease in carload/unit volumes and a 3 % decrease in revenue per carload/unit . volumes decreased due to service disruptions related to the flooding in the southeastern united states earlier in the year and protests in mexico during july of 2016 , increased truck conversion , and high retail inventory levels . revenue per carload/unit decreased as a result of pricing impacts and shorter average length of haul . automotive . revenues decreased $ 28.8 million for the year ended december 31 , 2016 , compared to 2015 , due to an 18 % decrease in revenue per carload/unit , partially offset by a 5 % increase in carload/unit volumes . revenue per carload/unit decreased due to the weakening of the mexican peso against the u.s. dollar and lower fuel surcharge . volumes increased due to 2015 service-related issues and new customers in 2016 , partially offset by customers ' temporary plant shutdowns in the first half of 2016 . 33 operating expenses operating expenses , as shown below ( in millions ) , decreased $ 99.3 million for the year ended december 31 , 2016 , compared to 2015 , primarily due to the mexican fuel excise tax credit , the weakening of the mexican peso against the u.s. dollar , and lower fuel prices . the weakening of the mexican peso against the u.s. dollar resulted in an expense reduction of approximately $ 63.0 million or 4 % for expense transactions denominated in mexican pesos . the average exchange rate of mexican pesos per u.s. dollar was ps.18.7 for 2016 compared to ps.15.8 for 2015. replace_table_token_10_th compensation and benefits . compensation and benefits increased $ 20.2 million for the year ended december 31 , 2016 , compared to 2015 , due to higher incentive compensation of approximately $ 34.0 million and annual wage increases of approximately $ 14.0 million . incentive compensation increased due to higher expected achievement of short and long-term incentive performance targets in 2016 , as compared to 2015. these increases were partially offset by the weakening of the mexican peso of approximately $ 19.0 million compared to 2015 , and lower u.s. labor costs of approximately $ 15.0 million due to reduced volumes and increased productivity . purchased services . purchased services expense decreased $ 14.5 million for the year ended december 31 , 2016 , compared to 2015 , due to car repair in mexico being performed in-house starting in october 2016 and the weakening of the mexican peso . fuel . fuel expense decreased $ 53.1 million for the year ended december 31 , 2016 , compared to 2015 , due to the weakening of the mexican peso of approximately $ 28.0 million and lower diesel fuel prices of approximately $ 18.0 million and $ 4.0 million in the u.s. and mexico , respectively . the average price per gallon , inclusive of the impact from the weakening of the mexican peso , was $ 1.95 in 2016 , compared to $ 2.32 in 2015. in addition , fuel expense decreased due to improved fuel efficiency and lower fuel consumption . mexican fuel excise tax credit . fuel purchases made in mexico are subject to an excise tax that is included in the price of fuel . in 2016 , the company determined it was eligible for and could utilize an available credit for the excise tax included in the price of fuel that is purchased and consumed in locomotives and certain work equipment in mexico and recognized a $ 62.8 million benefit . the mexican fuel excise tax credit is realized through the offset of the total annual 2016 mexico income tax liability and income tax withholding payment obligations of kcsm , with no carryforward to future periods . equipment costs . equipment costs increased $ 0.6 million for the year ended december 31 , 2016 , compared to 2015 , due to higher car hire expense due to volume mix , partially offset by lower lease expense as a result of the purchase of equipment under existing operating leases and replacement equipment as certain operating leases expired . depreciation and amortization . depreciation and amortization increased $ 20.4 million for the year ended december 31 , 2016 , compared to 2015 , due to a larger asset base . materials and other . materials and other expense was flat for the year ended december 31 , 2016 , compared to 2015 . 34 lease termination costs . lease termination costs were $ 9.6 million for the year ended december 31 , 2015 , due to the early termination of certain operating leases and the related purchase of the equipment . the company did not incur lease termination costs for the year ended december 31 , 2016 . non-operating expenses equity in net earnings of affiliates . equity in net earnings from affiliates decreased $ 3.7 million for the year ended december 31 , 2016 , compared to 2015 , due to lower net earnings from the operations of pcrc and ftvm as a result of lower volumes . interest expense . interest expense increased $ 15.8 million for the year ended december 31 , 2016 , compared to 2015 , due to higher average debt balances and average interest rates as a result of the company 's issuance of debt during the third quarter of 2015 and the second quarter of 2016. for the year ended december 31 , 2016 , the average debt balance ( including short-term borrowings ) was $ 2,492.7 million , compared to $ 2,257.8 million in 2015 . the average interest rate for the year ended december 31 , 2016 was 4.0 % , compared to 3.7 % in 2015 . story_separator_special_tag activities increased $ 109.4 million for 2017 , as compared to 2016 , primarily due to increased operating income of

debt retirement and exchange costs . the company did not incur debt retirement and exchange costs during 2016. for the year ended december 31 , 2015 , debt retirement and exchange costs were $ 7.6 million , related to costs that were payable to parties other than the debt holders as a result of the kcsr and kcsm senior notes exchanged for kcs senior notes . foreign exchange loss . for the years ended december 31 , 2016 and 2015 , foreign exchange loss was $ 72.0 million and $ 56.6 million , respectively . foreign exchange loss includes the re-measurement and settlement of net monetary assets denominated in mexican pesos and the loss on foreign currency derivative contracts . for the years ended december 31 , 2016 and 2015 , the re-measurement and settlement of net monetary assets denominated in mexican pesos resulted in a foreign exchange loss of $ 18.5 million and $ 9.4 million , respectively . the company enters into foreign currency derivative contracts to hedge its net exposure to fluctuations in the mexican cash tax obligation due to changes in the value of the mexican peso against the u.s. dollar . for the years ended december 31 , 2016 and 2015 , foreign exchange loss on foreign currency derivative contracts was $ 53.5 million and $ 47.2 million , respectively . other expense , net . other expense , net , decreased $ 2.7 million for the year ended december 31 , 2016 , compared to 2015 , due to lower miscellaneous expenses . income tax expense . income tax expense decreased $ 4.5 million for the year ended december 31 , 2016 , compared to 2015 , due to lower pre-tax income and a lower effective tax rate . the effective tax rate was 27.6 % and 27.8 % for the years ended december 31 , 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. ```debt retirement and exchange costs . the company did not incur debt retirement and exchange costs during 2016. for the year ended december 31 , 2015 , debt retirement and exchange costs were $ 7.6 million , related to costs that were payable to parties other than the debt holders as a result of the kcsr and kcsm senior notes exchanged for kcs senior notes . foreign exchange loss . for the years ended december 31 , 2016 and 2015 , foreign exchange loss was $ 72.0 million and $ 56.6 million , respectively . foreign exchange loss includes the re-measurement and settlement of net monetary assets denominated in mexican pesos and the loss on foreign currency derivative contracts . for the years ended december 31 , 2016 and 2015 , the re-measurement and settlement of net monetary assets denominated in mexican pesos resulted in a foreign exchange loss of $ 18.5 million and $ 9.4 million , respectively . the company enters into foreign currency derivative contracts to hedge its net exposure to fluctuations in the mexican cash tax obligation due to changes in the value of the mexican peso against the u.s. dollar . for the years ended december 31 , 2016 and 2015 , foreign exchange loss on foreign currency derivative contracts was $ 53.5 million and $ 47.2 million , respectively . other expense , net . other expense , net , decreased $ 2.7 million for the year ended december 31 , 2016 , compared to 2015 , due to lower miscellaneous expenses . income tax expense . income tax expense decreased $ 4.5 million for the year ended december 31 , 2016 , compared to 2015 , due to lower pre-tax income and a lower effective tax rate . the effective tax rate was 27.6 % and 27.8 % for the years ended december 31 , 2016 and 2015 , respectively . ``` Suspicious Activity Report : long-term financing , both within the united states and mexico and globally ; market and regulatory responses to climate change ; 24 changes in labor costs and labor difficulties , including strikes and work stoppages affecting either operations or customers ' abilities to deliver goods for shipment ; kcs 's reliance on certain key suppliers of core rail equipment ; availability of qualified personnel ; and acts of terrorism , war or other acts of violence or crime or risk of such activities . forward-looking statements reflect the information only as of the date on which they are made . the company does not undertake any obligation to update any forward-looking statements to reflect future events , developments , or other information . if kcs does update one or more forward-looking statements , no inference should be drawn that additional updates will be made regarding that statement or any other forward-looking statements . corporate overview kansas city southern , a delaware corporation , is a transportation holding company that has railroad investments in the u.s. , mexico and panama . in the u.s. , the company serves the central and south central u.s. its international holdings serve northeastern and central mexico and the port cities of lazaro cardenas , tampico and veracruz , and a fifty percent interest in panama canal railway company provides ocean-to-ocean freight and passenger service along the panama canal . kcs 's north american rail holdings and strategic alliances are primary components of a nafta railway system , linking the commercial and industrial centers of the u.s. , canada and mexico . its principal subsidiaries and affiliates include the following : the kansas city southern railway company ( “ kcsr ” ) , a wholly-owned subsidiary ; kcsm , a wholly-owned subsidiary ; mexrail , inc. ( “ mexrail ” ) , a wholly-owned consolidated subsidiary ; which , in turn , wholly owns the texas mexican railway company ( “ tex-mex ” ) ; kcsm servicios , s.a. de c.v. ( “ kcsm servicios ” ) , a wholly-owned subsidiary ; meridian speedway , llc ( “ msllc ” ) , a seventy percent-owned consolidated affiliate ; panama canal railway company ( “ pcrc ” ) , a fifty percent-owned unconsolidated affiliate ; tfcm , s. de r.l . de c.v. ( “ tcm ” ) , a forty-five percent-owned unconsolidated affiliate ; ferrocarril y terminal del valle de méxico , s.a. de c.v. ( “ ftvm ” ) , a twenty-five percent-owned unconsolidated affiliate ; and ptc-220 , llc ( “ ptc-220 ” ) , a fourteen percent-owned unconsolidated affiliate . executive summary 2017 financial overview revenues in 2017 increased 11 % from 2016 , due to 6 % and 5 % increases in revenue per carload/unit and carload/unit volumes , respectively . revenue per carload/unit increased due to mix , increased average length of haul , positive pricing impacts and higher fuel surcharge . energy revenue increased $ 81.1 million , primarily due to an increase in utility coal volumes due to higher natural gas prices and lower coal inventory levels . in addition , frac sand volumes increased due to strong demand as a result of higher crude oil prices . operating expenses increased 10 % compared to 2016 , primarily due to higher fuel prices and consumption , and compensation and benefits . expense fluctuations resulting from higher fuel prices largely offset the revenue fluctuations driven by these same macroeconomic factors . operating expenses as a percentage of revenues decreased to 64.3 % in 2017 from 64.9 % in 2016 . in 2017 , the company invested $ 559.5 million in capital expenditures . in addition , the company purchased $ 42.6 million of equipment under existing operating leases or replacement equipment as certain operating leases expired , which was primarily funded with internally generated cash flows and short-term borrowings . the company reported 2017 earnings of $ 9.16 per diluted share on consolidated net income attributable to kansas city southern and subsidiaries of $ 962.0 million for the year ended december 31 , 2017 , compared to annual earnings of $ 4.43 per 25 diluted share on consolidated net income attributable to kansas city southern and subsidiaries of $ 478.1 million for 2016 , due to increased net income , largely resulting from the recognition of a $ 413.0 million net tax benefit as a result of the tax cuts and jobs act ( the “ tax reform act ” ) , and the accelerated share repurchase program that was implemented during the third quarter of 2017 , which reduced the weighted-average shares outstanding . further information on the tax impacts of the tax reform act is included in the company 's consolidated financial statements presented in note 12 to the consolidated financial statements in item 8. results of operations year ended december 31 , 2017 , compared with the year ended december 31 , 2016 the following summarizes kcs 's consolidated income statement components ( in millions ) : replace_table_token_5_th revenues the following summarizes revenues ( in millions ) , carload/unit statistics ( in thousands ) and revenue per carload/unit : replace_table_token_6_th 26 revenues include revenue for transportation services and fuel surcharges . notwithstanding the impacts of hurricane harvey , revenues and carload/unit volumes increased 11 % and 5 % , respectively , for the year ended december 31 , 2017 , compared to the prior year . revenue per carload/unit increased by 6 % due to mix , increased average length of haul , positive pricing impacts , and higher fuel surcharge . energy revenues increased $ 81.1 million , primarily due to an increase in utility coal volumes due to higher natural gas prices and lower coal inventory levels . in addition , frac sand volumes increased due to strong demand as a result of higher crude oil prices . story_separator_special_tag revenues decreased $ 23.9 million for the year ended december 31 , 2016 , compared to 2015 , due to a 4 % decrease in carload/unit volumes and a 3 % decrease in revenue per carload/unit . volumes decreased due to service disruptions related to the flooding in the southeastern united states earlier in the year and protests in mexico during july of 2016 , increased truck conversion , and high retail inventory levels . revenue per carload/unit decreased as a result of pricing impacts and shorter average length of haul . automotive . revenues decreased $ 28.8 million for the year ended december 31 , 2016 , compared to 2015 , due to an 18 % decrease in revenue per carload/unit , partially offset by a 5 % increase in carload/unit volumes . revenue per carload/unit decreased due to the weakening of the mexican peso against the u.s. dollar and lower fuel surcharge . volumes increased due to 2015 service-related issues and new customers in 2016 , partially offset by customers ' temporary plant shutdowns in the first half of 2016 . 33 operating expenses operating expenses , as shown below ( in millions ) , decreased $ 99.3 million for the year ended december 31 , 2016 , compared to 2015 , primarily due to the mexican fuel excise tax credit , the weakening of the mexican peso against the u.s. dollar , and lower fuel prices . the weakening of the mexican peso against the u.s. dollar resulted in an expense reduction of approximately $ 63.0 million or 4 % for expense transactions denominated in mexican pesos . the average exchange rate of mexican pesos per u.s. dollar was ps.18.7 for 2016 compared to ps.15.8 for 2015. replace_table_token_10_th compensation and benefits . compensation and benefits increased $ 20.2 million for the year ended december 31 , 2016 , compared to 2015 , due to higher incentive compensation of approximately $ 34.0 million and annual wage increases of approximately $ 14.0 million . incentive compensation increased due to higher expected achievement of short and long-term incentive performance targets in 2016 , as compared to 2015. these increases were partially offset by the weakening of the mexican peso of approximately $ 19.0 million compared to 2015 , and lower u.s. labor costs of approximately $ 15.0 million due to reduced volumes and increased productivity . purchased services . purchased services expense decreased $ 14.5 million for the year ended december 31 , 2016 , compared to 2015 , due to car repair in mexico being performed in-house starting in october 2016 and the weakening of the mexican peso . fuel . fuel expense decreased $ 53.1 million for the year ended december 31 , 2016 , compared to 2015 , due to the weakening of the mexican peso of approximately $ 28.0 million and lower diesel fuel prices of approximately $ 18.0 million and $ 4.0 million in the u.s. and mexico , respectively . the average price per gallon , inclusive of the impact from the weakening of the mexican peso , was $ 1.95 in 2016 , compared to $ 2.32 in 2015. in addition , fuel expense decreased due to improved fuel efficiency and lower fuel consumption . mexican fuel excise tax credit . fuel purchases made in mexico are subject to an excise tax that is included in the price of fuel . in 2016 , the company determined it was eligible for and could utilize an available credit for the excise tax included in the price of fuel that is purchased and consumed in locomotives and certain work equipment in mexico and recognized a $ 62.8 million benefit . the mexican fuel excise tax credit is realized through the offset of the total annual 2016 mexico income tax liability and income tax withholding payment obligations of kcsm , with no carryforward to future periods . equipment costs . equipment costs increased $ 0.6 million for the year ended december 31 , 2016 , compared to 2015 , due to higher car hire expense due to volume mix , partially offset by lower lease expense as a result of the purchase of equipment under existing operating leases and replacement equipment as certain operating leases expired . depreciation and amortization . depreciation and amortization increased $ 20.4 million for the year ended december 31 , 2016 , compared to 2015 , due to a larger asset base . materials and other . materials and other expense was flat for the year ended december 31 , 2016 , compared to 2015 . 34 lease termination costs . lease termination costs were $ 9.6 million for the year ended december 31 , 2015 , due to the early termination of certain operating leases and the related purchase of the equipment . the company did not incur lease termination costs for the year ended december 31 , 2016 . non-operating expenses equity in net earnings of affiliates . equity in net earnings from affiliates decreased $ 3.7 million for the year ended december 31 , 2016 , compared to 2015 , due to lower net earnings from the operations of pcrc and ftvm as a result of lower volumes . interest expense . interest expense increased $ 15.8 million for the year ended december 31 , 2016 , compared to 2015 , due to higher average debt balances and average interest rates as a result of the company 's issuance of debt during the third quarter of 2015 and the second quarter of 2016. for the year ended december 31 , 2016 , the average debt balance ( including short-term borrowings ) was $ 2,492.7 million , compared to $ 2,257.8 million in 2015 . the average interest rate for the year ended december 31 , 2016 was 4.0 % , compared to 3.7 % in 2015 . story_separator_special_tag activities increased $ 109.4 million for 2017 , as compared to 2016 , primarily due to increased operating income of

-33- wageworks acquisition on august 30 , 2019 , we completed the wageworks acquisition and paid approximately $ 2.0 billion in cash to wageworks stockholders , financed through net borrowings of approximately $ 1.22 billion under a new term loan facility and approximately $ 816.9 million of cash on hand . as a result of the wageworks acquisition , wageworks inc. became a wholly owned subsidiary of healthequity , inc. the key strategy of the wageworks acquisition was to enable us to increase the number of our employer sales opportunities , the conversion of these opportunities to clients , and the value of clients in generating members , hsa assets and complementary cdbs . wageworks ' historic strength of selling to employers directly and through health benefits brokers and advisors complemented our distribution through network partners . with wageworks ' cdb capabilities , we provide employers with a single partner for both hsas and other cdbs , which is preferred by the vast majority of employers according to research conducted for us by aite group . for clients that partner with us in this way , we believe we can produce more value by encouraging both cdb participants to contribute to hsas and hsa-only members to take advantage of tax savings available through other cdbs . accordingly , we believe that there are significant opportunities to expand the scope of services that we provide to our clients . the wageworks acquisition has significantly increased the number of our total accounts , hsa assets , client-held funds , adjusted ebitda , total revenue , total cost of revenue , operating expenses , and other financial results . these increases impact the comparability of the period-over-period results described in this report . key factors affecting our performance we believe that our future performance will be driven by a number of factors , including those identified below . each of these factors presents both significant opportunities and significant risks to our future performance . see also `` results of operations - revenue `` for information relating to the ongoing covid-19 pandemic and also the section entitled “ risk factors ” included in part 1 , item 1a of this annual report on form 10-k and our other reports filed with the sec . wageworks integration on august 30 , 2019 , we completed the wageworks acquisition . we are continuing our multi-year integration effort that we expect will produce long-term cost savings and revenue synergies . we have identified opportunities of approximately $ 80 million in annualized ongoing net synergies to be achieved by the end of the fiscal year ending january 31 , 2022 , of which approximately $ 60 million were achieved as of january 31 , 2021. furthermore , we anticipate generating additional revenue synergies over the longer-term as our combined distribution channels and existing client base take advantage of the broader platform and service offerings and as we continue to drive member engagement . we estimate non-recurring costs to achieve these synergies of approximately $ 100 million incurred by the end of fiscal year 2022 , resulting from investment in technology platforms , back-office systems and platform integration , as well as rationalization of cost of operations . as of january 31 , 2021 , we had incurred a total of approximately $ 78 million of non-recurring merger integration costs related to the wageworks acquisition . structural change in u.s. health insurance we derive revenue primarily from healthcare-related saving and spending by consumers in the u.s. , which are driven by changes in the broader healthcare industry , including the structure of health insurance . the average premium for employer-sponsored health insurance has risen by 22 % since 2015 and 55 % since 2010 , resulting in increased participation in hsa-qualified health plans and hsas and increased consumer cost-sharing in health insurance more generally . we believe that continued growth in healthcare costs and related factors will spur continued growth in hsa-qualified health plans and hsas and may encourage policy changes making hsas or similar vehicles available to new populations such as individuals in medicare . however , the timing and impact of these and other developments in u.s. healthcare are uncertain . moreover , changes in healthcare policy , such as `` medicare for all `` plans , could materially and adversely affect our business in ways that are difficult to predict . trends in u.s. tax law tax law has a profound impact on our business . our offerings to members , clients , and network partners consist primarily of services enabled , mandated , or advantaged by provisions of u.s. tax law and regulations . we believe that the present direction of u.s. tax policy is favorable to our business , as evidenced for example by recent regulatory action and bipartisan policy proposals to expand the availability of hsas . however , changes in tax policy are speculative , and may affect our business in ways that are difficult to predict . -34- our client base our business model is based on a b2b2c distribution strategy , whereby we work with network partners and clients to reach consumers to increase the number of our members with hsa accounts and complementary cdbs . we believe that there are significant opportunities to expand the scope of services that we provide to our current clients . broad distribution footprint we believe we have a diverse distribution footprint to attract new clients and network partners . our sales force calls on enterprise and regional employers in industries across the u.s. , as well as potential network partners from among health plans , benefits administrators , and retirement plan record keepers . product breadth we are the largest custodian and administrator of hsas ( by number of accounts ) , as well as a market-share leader in each of the major categories of complementary cdbs , including fsas and hras , cobra and commuter benefits administration . story_separator_special_tag in addition , once a member 's hsa cash balance reaches a certain threshold , the member is able to invest his or her hsa assets in mutual funds through our custodial investment partner . we earn a recordkeeping fee , calculated as a percentage of custodial investments . we are continuing to transition hsa cash without yield to hsa cash with yield and expect to complete the transition in fiscal year 2022. interchange revenue . we earn interchange revenue each time one of our members uses one of our physical payment cards or virtual platforms to make a purchase . this revenue is collected each time a member “ swipes ” our payment card to pay expenses . we recognize interchange revenue monthly based on reports received from third parties , namely , the card-issuing banks and card processors . cost of revenue cost of revenue includes costs related to servicing accounts , managing client and network partner relationships and processing reimbursement claims . expenditures include personnel-related costs , depreciation , amortization , stock-based compensation , common expense allocations ( such as office rent , supplies , and other overhead expenses ) , new member and participant supplies , and other operating costs related to servicing our members . other components of cost of revenue include interest retained by members on hsa cash and interchange costs incurred in connection with processing card transactions for our members . service costs . service costs include the servicing costs described above . additionally , for new accounts , we incur on-boarding costs associated with the new accounts , such as new member welcome kits , the cost associated with issuance of new payment cards , and costs of marketing materials that we produce for our network partners . custodial costs . custodial costs are comprised of interest retained by our hsa members , in respect of hsa cash with yield , and fees we pay to banking consultants whom we use to help secure agreements with our depository -39- partners . interest retained by hsa members is calculated on a tiered basis . the interest rates retained by hsa members can change based on a formula or upon required notice . interchange costs . interchange costs are comprised of costs we incur in connection with processing payment transactions initiated by our members . due to the substantiation requirement on fsa/hra-linked payment card transactions , payment card costs are higher for fsa/hra card transactions . in addition to fixed per card fees , we are assessed additional transaction costs determined by the amount of the transaction . gross profit and gross margin our gross profit is our total revenue minus our total cost of revenue , and our gross margin is our gross profit expressed as a percentage of our total revenue . our gross margin has been and will continue to be affected by a number of factors , including interest rates , the amount we charge our network partners , clients , and members , the mix of our sources of revenue , how many services we deliver per account , and payment processing costs per account . operating expenses sales and marketing . sales and marketing expenses consist primarily of personnel and related expenses for our sales and marketing staff , including sales commissions for our direct sales force , external agent/broker commission expenses , marketing expenses , depreciation , amortization , stock-based compensation , and common expense allocations . technology and development . technology and development expenses include personnel and related expenses for software development and delivery , information technology , data management , product , and security . technology and development expenses also include software engineering services , the costs of operating our on-demand technology infrastructure , depreciation , amortization of capitalized software development costs , stock-based compensation , and common expense allocations . general and administrative . general and administrative expenses include personnel and related expenses of , and professional fees incurred by our executive , finance , legal , internal audit , corporate development , compliance , and people departments . they also include depreciation , amortization , stock-based compensation , and common expense allocations . amortization of acquired intangible assets . amortization of acquired intangible assets results primarily from intangible assets acquired in connection with business combinations . the assets include acquired customer relationships , acquired developed technology , and acquired trade names and trademarks , which we amortize over the assets ' estimated useful lives , estimated to be 10-15 years , 2-5 years , and 3 years , respectively . we also acquired intangible hsa portfolios from third-party custodians . we amortize these assets over the assets ' estimated useful life of 15 years . we evaluate our acquired intangible assets for impairment annually , or at a triggering event . merger integration . merger integration expenses include personnel and related expenses , including severance , professional fees , and facilities and technology expenses directly related to integration activities to merge operations as a result of the wageworks acquisition . merger integration expenses for the year ended january 31 , 2021 also include the estimated net cost to settle a legal matter related to the wageworks acquisition described in note 7—commitments and contingencies . interest expense interest expense consists of accrued interest expense and amortization of deferred financing costs associated with our credit agreement . interest on our long-term debt changes frequently due to variable interest rate terms , and as a result , our interest expense is expected to fluctuate based on changes in prevailing interest rates . other income ( expense ) , net other income ( expense ) , net , primarily consists of acquisition costs , gains and losses on marketable equity securities , non-income-based taxes , a gain resulting from a legal matter described in note 7—commitments and contingencies , and interest income earned on corporate cash . income tax provision ( benefit ) as of december 31

capital resources we have a “ shelf ” registration statement on form s-3 on file with the sec . this shelf registration statement , which includes a base prospectus , allows us at any time to offer any combination of securities described in the prospectus in one or more offerings . unless otherwise specified in a prospectus supplement accompanying the base prospectus , we would use the net proceeds from the sale of any securities offered pursuant to the shelf registration statement for general corporate purposes , including , but not limited to , working capital , sales and marketing activities , general and administrative matters and capital expenditures , and if opportunities arise , for the acquisition of , or investment in , assets , technologies , solutions or businesses that complement our business . pending such uses , we may invest the net proceeds in interest-bearing securities . in addition , we may conduct concurrent or other financings at any time . in july 2020 , we closed a follow-on public offering of 5,290,000 shares of common stock at a public offering price of $ 56.00 per share , less the underwriters ' discount . we received net proceeds of $ 286.8 million after deducting underwriting discounts and commissions of $ 8.9 million and other offering expenses of $ 0.6 million . our credit agreement includes a five-year senior secured revolving credit facility in an aggregate principal amount of up to $ 350.0 million , which may be used for working capital and general corporate purposes , including the financing -44- of acquisitions and other investments . for a description of the terms of the credit agreement , refer to note 8—indebtedness . we were in compliance with all covenants under the credit agreement as of january 31 , 2021 , and for the period then ended .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 we have a “ shelf ” registration statement on form s-3 on file with the sec . this shelf registration statement , which includes a base prospectus , allows us at any time to offer any combination of securities described in the prospectus in one or more offerings . unless otherwise specified in a prospectus supplement accompanying the base prospectus , we would use the net proceeds from the sale of any securities offered pursuant to the shelf registration statement for general corporate purposes , including , but not limited to , working capital , sales and marketing activities , general and administrative matters and capital expenditures , and if opportunities arise , for the acquisition of , or investment in , assets , technologies , solutions or businesses that complement our business . pending such uses , we may invest the net proceeds in interest-bearing securities . in addition , we may conduct concurrent or other financings at any time . in july 2020 , we closed a follow-on public offering of 5,290,000 shares of common stock at a public offering price of $ 56.00 per share , less the underwriters ' discount . we received net proceeds of $ 286.8 million after deducting underwriting discounts and commissions of $ 8.9 million and other offering expenses of $ 0.6 million . our credit agreement includes a five-year senior secured revolving credit facility in an aggregate principal amount of up to $ 350.0 million , which may be used for working capital and general corporate purposes , including the financing -44- of acquisitions and other investments . for a description of the terms of the credit agreement , refer to note 8—indebtedness . we were in compliance with all covenants under the credit agreement as of january 31 , 2021 , and for the period then ended . ``` Suspicious Activity Report : -33- wageworks acquisition on august 30 , 2019 , we completed the wageworks acquisition and paid approximately $ 2.0 billion in cash to wageworks stockholders , financed through net borrowings of approximately $ 1.22 billion under a new term loan facility and approximately $ 816.9 million of cash on hand . as a result of the wageworks acquisition , wageworks inc. became a wholly owned subsidiary of healthequity , inc. the key strategy of the wageworks acquisition was to enable us to increase the number of our employer sales opportunities , the conversion of these opportunities to clients , and the value of clients in generating members , hsa assets and complementary cdbs . wageworks ' historic strength of selling to employers directly and through health benefits brokers and advisors complemented our distribution through network partners . with wageworks ' cdb capabilities , we provide employers with a single partner for both hsas and other cdbs , which is preferred by the vast majority of employers according to research conducted for us by aite group . for clients that partner with us in this way , we believe we can produce more value by encouraging both cdb participants to contribute to hsas and hsa-only members to take advantage of tax savings available through other cdbs . accordingly , we believe that there are significant opportunities to expand the scope of services that we provide to our clients . the wageworks acquisition has significantly increased the number of our total accounts , hsa assets , client-held funds , adjusted ebitda , total revenue , total cost of revenue , operating expenses , and other financial results . these increases impact the comparability of the period-over-period results described in this report . key factors affecting our performance we believe that our future performance will be driven by a number of factors , including those identified below . each of these factors presents both significant opportunities and significant risks to our future performance . see also `` results of operations - revenue `` for information relating to the ongoing covid-19 pandemic and also the section entitled “ risk factors ” included in part 1 , item 1a of this annual report on form 10-k and our other reports filed with the sec . wageworks integration on august 30 , 2019 , we completed the wageworks acquisition . we are continuing our multi-year integration effort that we expect will produce long-term cost savings and revenue synergies . we have identified opportunities of approximately $ 80 million in annualized ongoing net synergies to be achieved by the end of the fiscal year ending january 31 , 2022 , of which approximately $ 60 million were achieved as of january 31 , 2021. furthermore , we anticipate generating additional revenue synergies over the longer-term as our combined distribution channels and existing client base take advantage of the broader platform and service offerings and as we continue to drive member engagement . we estimate non-recurring costs to achieve these synergies of approximately $ 100 million incurred by the end of fiscal year 2022 , resulting from investment in technology platforms , back-office systems and platform integration , as well as rationalization of cost of operations . as of january 31 , 2021 , we had incurred a total of approximately $ 78 million of non-recurring merger integration costs related to the wageworks acquisition . structural change in u.s. health insurance we derive revenue primarily from healthcare-related saving and spending by consumers in the u.s. , which are driven by changes in the broader healthcare industry , including the structure of health insurance . the average premium for employer-sponsored health insurance has risen by 22 % since 2015 and 55 % since 2010 , resulting in increased participation in hsa-qualified health plans and hsas and increased consumer cost-sharing in health insurance more generally . we believe that continued growth in healthcare costs and related factors will spur continued growth in hsa-qualified health plans and hsas and may encourage policy changes making hsas or similar vehicles available to new populations such as individuals in medicare . however , the timing and impact of these and other developments in u.s. healthcare are uncertain . moreover , changes in healthcare policy , such as `` medicare for all `` plans , could materially and adversely affect our business in ways that are difficult to predict . trends in u.s. tax law tax law has a profound impact on our business . our offerings to members , clients , and network partners consist primarily of services enabled , mandated , or advantaged by provisions of u.s. tax law and regulations . we believe that the present direction of u.s. tax policy is favorable to our business , as evidenced for example by recent regulatory action and bipartisan policy proposals to expand the availability of hsas . however , changes in tax policy are speculative , and may affect our business in ways that are difficult to predict . -34- our client base our business model is based on a b2b2c distribution strategy , whereby we work with network partners and clients to reach consumers to increase the number of our members with hsa accounts and complementary cdbs . we believe that there are significant opportunities to expand the scope of services that we provide to our current clients . broad distribution footprint we believe we have a diverse distribution footprint to attract new clients and network partners . our sales force calls on enterprise and regional employers in industries across the u.s. , as well as potential network partners from among health plans , benefits administrators , and retirement plan record keepers . product breadth we are the largest custodian and administrator of hsas ( by number of accounts ) , as well as a market-share leader in each of the major categories of complementary cdbs , including fsas and hras , cobra and commuter benefits administration . story_separator_special_tag in addition , once a member 's hsa cash balance reaches a certain threshold , the member is able to invest his or her hsa assets in mutual funds through our custodial investment partner . we earn a recordkeeping fee , calculated as a percentage of custodial investments . we are continuing to transition hsa cash without yield to hsa cash with yield and expect to complete the transition in fiscal year 2022. interchange revenue . we earn interchange revenue each time one of our members uses one of our physical payment cards or virtual platforms to make a purchase . this revenue is collected each time a member “ swipes ” our payment card to pay expenses . we recognize interchange revenue monthly based on reports received from third parties , namely , the card-issuing banks and card processors . cost of revenue cost of revenue includes costs related to servicing accounts , managing client and network partner relationships and processing reimbursement claims . expenditures include personnel-related costs , depreciation , amortization , stock-based compensation , common expense allocations ( such as office rent , supplies , and other overhead expenses ) , new member and participant supplies , and other operating costs related to servicing our members . other components of cost of revenue include interest retained by members on hsa cash and interchange costs incurred in connection with processing card transactions for our members . service costs . service costs include the servicing costs described above . additionally , for new accounts , we incur on-boarding costs associated with the new accounts , such as new member welcome kits , the cost associated with issuance of new payment cards , and costs of marketing materials that we produce for our network partners . custodial costs . custodial costs are comprised of interest retained by our hsa members , in respect of hsa cash with yield , and fees we pay to banking consultants whom we use to help secure agreements with our depository -39- partners . interest retained by hsa members is calculated on a tiered basis . the interest rates retained by hsa members can change based on a formula or upon required notice . interchange costs . interchange costs are comprised of costs we incur in connection with processing payment transactions initiated by our members . due to the substantiation requirement on fsa/hra-linked payment card transactions , payment card costs are higher for fsa/hra card transactions . in addition to fixed per card fees , we are assessed additional transaction costs determined by the amount of the transaction . gross profit and gross margin our gross profit is our total revenue minus our total cost of revenue , and our gross margin is our gross profit expressed as a percentage of our total revenue . our gross margin has been and will continue to be affected by a number of factors , including interest rates , the amount we charge our network partners , clients , and members , the mix of our sources of revenue , how many services we deliver per account , and payment processing costs per account . operating expenses sales and marketing . sales and marketing expenses consist primarily of personnel and related expenses for our sales and marketing staff , including sales commissions for our direct sales force , external agent/broker commission expenses , marketing expenses , depreciation , amortization , stock-based compensation , and common expense allocations . technology and development . technology and development expenses include personnel and related expenses for software development and delivery , information technology , data management , product , and security . technology and development expenses also include software engineering services , the costs of operating our on-demand technology infrastructure , depreciation , amortization of capitalized software development costs , stock-based compensation , and common expense allocations . general and administrative . general and administrative expenses include personnel and related expenses of , and professional fees incurred by our executive , finance , legal , internal audit , corporate development , compliance , and people departments . they also include depreciation , amortization , stock-based compensation , and common expense allocations . amortization of acquired intangible assets . amortization of acquired intangible assets results primarily from intangible assets acquired in connection with business combinations . the assets include acquired customer relationships , acquired developed technology , and acquired trade names and trademarks , which we amortize over the assets ' estimated useful lives , estimated to be 10-15 years , 2-5 years , and 3 years , respectively . we also acquired intangible hsa portfolios from third-party custodians . we amortize these assets over the assets ' estimated useful life of 15 years . we evaluate our acquired intangible assets for impairment annually , or at a triggering event . merger integration . merger integration expenses include personnel and related expenses , including severance , professional fees , and facilities and technology expenses directly related to integration activities to merge operations as a result of the wageworks acquisition . merger integration expenses for the year ended january 31 , 2021 also include the estimated net cost to settle a legal matter related to the wageworks acquisition described in note 7—commitments and contingencies . interest expense interest expense consists of accrued interest expense and amortization of deferred financing costs associated with our credit agreement . interest on our long-term debt changes frequently due to variable interest rate terms , and as a result , our interest expense is expected to fluctuate based on changes in prevailing interest rates . other income ( expense ) , net other income ( expense ) , net , primarily consists of acquisition costs , gains and losses on marketable equity securities , non-income-based taxes , a gain resulting from a legal matter described in note 7—commitments and contingencies , and interest income earned on corporate cash . income tax provision ( benefit ) as of december 31

cell manufacturing services are generally distinct arrangements whereby masthercell is paid for time and materials or for fixed monthly amounts . the company also recognizes revenue via the sale of consumables to customers that are incidental to the services provided as foreseen in the clinical services contracts . on a monthly basis , the company bills customers for reimbursable expenses and immediately recognizes these billings in revenue , as the revenue is deemed earned . for the year ended november 30 , 2015 , our total revenues were approximately $ 3 million , as opposed to none for the corresponding period in 2014 , respectively . the increase in revenue is attributable to our acquisition of masthercell and the revenues they recognize from services and sales of consumables . expenses the company 's expenses for the year ended november 30 , 2015 are summarized as follows in comparison to its expenses for the year ended november 30 , 2014 : replace_table_token_1_th 42 research and development expenses replace_table_token_2_th the decrease in salaries and related expenses and in stock-based compensation in the year ended november 30 , 2015 , compared to 2014 , is primarily due to lower compensation expense for certain executives that are no longer employed by the company . this was offset by expenses due to the employment of a new development director for the cell therapy business . the decrease in grant income is due to a decrease of $ 266 thousand on the dgo6 project , mainly due to less work performed under grants approved from dgo6 in our belgian subsidiary and due to changes in the exchange rate currency . this was offset by grant income of $ 153 thousand due to work performed under the grant approved from bird . selling , general and administrative expenses replace_table_token_3_th the increase in salaries and related expenses for the year ended november 30 , 2015 , compared to 2014 is due to the increase in the number of employees following the acquisition of masthercell . in addition , there was an increase in legal and accounting fees due to the various material transactions that occurred for certain collaboration agreements and as a result of the acquisition of masthercell . the rent and related expenses for the year ended november 30 , 2015 arise from the offices of masthercell . the increase in professional fees for the year ended november 30 , 2015 is due to a reduction in the reliance on outside professionals as compared to the same period last year . financial expenses ( income ) , net replace_table_token_4_th 43 the increase in financial income for the year ended november 30 , 2015 compared to 2014 is mainly attributable to a decrease in the fair value of warrants , embedded derivative and convertible bonds , which is a non-cash metric that is based on the company 's share price as of the measurement date and reflects the issuance of beneficial warrants that were granted during 2015. due to a decrease in the company 's shares price during the period , there was a resultant income impact . story_separator_special_tag ( “ lenders ” ) furnished to us access to a $ 5.0 million credit line ( collectively , the “ credit facility agreements ” ) . pursuant to the credit facility agreements , upon request we are entitled to receive $ 500,000 or such lesser amount as may then be available under the credit facility ( the “ advance amount ” ) , pro-rata from the credit providers under the credit facility agreements , in consideration of which , we will issue to such persons , promissory notes for the amount advanced ( each a “ credit note ” ) . orgenesis may draw down on the credit facility as needed until the entire $ 5.0 million is exhausted . unless extended by mutual arrangement , the credit facility terminates on the earlier to occur of ( i ) november 30 , 2016 and ( ii ) such time as we shall have raised in excess of $ 10 million in an equity investment . in consideration of the funding commitment under the credit facility agreements , we issued to these lenders warrants to purchase up to an aggregate of 2,358,491 shares of the company 's common stock at a per share exercise price of $ 0.53 per share ( the “ commitment warrants ” ) . the commitment warrants become first exercisable upon the scheduled expiration or termination of the credit facility through the third anniversary thereof ; provided , that the commitment warrants issued to a lender are subject to cancellation if for whatever reason a funding request by such lender is not honored . additionally , upon the issuance of credit notes , the lender is entitled to three year warrants ( “ drawdown warrants ” ) to purchase additional shares of the company 's common stock in an amount equal to the quotient of : 0.50 x advance amount / $ 0.53. if the entire $ 5,000,000 were drawn down by the company , it would issue to the lenders a total of 4,716,980 drawdown warrants . all credit notes that may be issued under the credit facility mature on november 30 , 2016. interest on the outstanding principal amount of the credit notes accrues at a per annum rate of 12 % , payable at maturity or upon an event of default . the credit notes contain customary events of default for transactions of this nature . upon an event of default , the lender has the right to require the company to prepay the outstanding principal amount of the credit notes plus all accrued and unpaid interest . story_separator_special_tag goodwill is not amortized but is tested for impairment at least annually ( at november 30 ) , at the reporting unit level or more frequently if events or changes in circumstances indicate that the asset might be impaired . the goodwill impairment test is applied by performing a qualitative assessment before calculating the fair value of the reporting unit . if , on the basis of qualitative factors , it is considered not more likely than not that the fair value of the reporting unit is less than the carrying amount , further testing of goodwill for impairment would not be required . otherwise , goodwill impairment is tested using a two-step approach . fair value measurement the fair value measurement guidance clarifies that fair value is an exit price , representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants . as such , fair value is a market-based measurement that should be determined based on assumptions that market participants would use in the valuation of an asset or liability . it establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value . the hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities ( level 1 measurements ) and the lowest priority to unobservable inputs ( level 3 measurements ) . the three levels of the fair value hierarchy under the fair value measurement guidance are described below : 48 level 1 : quoted prices ( unadjusted ) in active markets that are accessible at the measurement date for assets or liabilities . the fair value hierarchy gives the highest priority to level 1 inputs . level 2 : observable inputs that are based on inputs not quoted on active markets , but corroborated by market data . level 3 : unobservable inputs are used when little or no market data is available . the fair value hierarchy gives the lowest priority to level 3 inputs . embedded derivatives we entered into convertible debentures agreements in which a derivative instrument is “embedded” . embedded derivative is separated from the host contract and carried at fair value when ( 1 ) the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract and ( 2 ) a separate , stand-alone instrument with the same terms would qualify as a derivative instrument . the derivative is measured both initially and in subsequent periods at fair value , with changes in fair value charged to finance expenses , net . as to embedded derivatives arising from the issuance of convertible debentures , see note 13. volatility in stock-based compensation the volatility is based on historical volatilities of companies in comparable stages as well as the historical volatility of companies in the industry and , by statistical analysis of the daily share-pricing model . the volatility of stock-based compensation granted after november 30 , 2013 is based on historical volatility of the company for the last two years . warrants and price protection mechanism derivative classified as a liability warrants that entitle the holder to down-round protection ( through ratchet and anti-dilution provisions ) and price protection mechanism derivatives in respect of shares entitled to down-round protection are classified as liabilities on the balance sheet . the liability is measured both initially and in subsequent periods at fair value , with changes in fair value charged to finance expenses , net . the fair value of the warrants and the price protection mechanism derivatives are determining by using a monte carlo type model based on a risk neutral approach . the model takes as an input the estimated future dates when new capital will be raised , and builds a multi-step dynamic model . the first step is to model the risk neutral distribution of the share value on the new issue dates , then for each path to use the black-scholes model to estimate the value of the warrants and the price protection mechanism derivatives on the last issue date including all the changes in exercise price and quantity along this path . the significant unobservable input used in the fair value measurement is the future expected issue dates . bsignificant delay in this input would result a higher fair value measurement . impairment of long-lived assets we are reviewing the property and equipment , intangible assets subject to amortization and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset class may not be recoverable . indicators of potential impairment include : an adverse change in legal factors or in the business climate that could affect the value of the asset ; an adverse change in the extent or manner in which the asset is used or is expected to be used , or in its physical condition ; and current or forecasted operating or cash flow losses that demonstrate continuing losses associated with the use of the asset . if indicators of impairment are present , the asset is tested for recoverability by comparing the carrying value of the asset to the related estimated undiscounted future cash flows expected to be derived from the asset . if the expected cash flows are less than the carrying value of the asset , then the asset is considered to be impaired and its carrying value is written down to fair value , based on the related estimated discounted cash flows . there were no impairment charges in 2015 . 49 revenue recognition we recognize the revenue for services linked to cell process development and cell manufacturing services based on individual contracts in accordance with asc 605 , revenue recognition , when the following criteria have been met : persuasive evidence of an arrangement exists ; delivery has occurred or services have been provided

liquidity and financial condition working capital deficiency replace_table_token_5_th the increase in current assets is mainly due to an increase of $ 3 million in cash and cash equivalents following the capital raise and an increase of $ 3.4 million in accounts receivable , inventory , prepaid expenses and other receivables , as well as grants receivable due to the acquisition of masthercell . cash flows replace_table_token_6_th our cash and cash equivalents balance increased to $ 4.2 million at november 30 , 2015 from $ 1.3 million at november 30 , 2014. the increase in cash and cash equivalents during the period was primarily due to increase in financing activities of $ 4 million that was offset by increase in cash flows used in operating activities in an amount of $ 1.3 million and by increase in cash used in investing activities of $ 0.9 million . net cash used in operations of approximately $ 2.7 million for the year ended november 30 , 2015 was mainly due to increases in accounts receivable of $ 0.7 million and a change in the fair value of convertible bonds and warrants of $ 2.6 million , but was offset by decrease of $ 1.1 million in prepaid expenses and other accounts receivable . net cash provided by financing activities for the year ended november 30 , 2015 was $ 6.7 million , compared to $ 2.7 million for the same period last year . the increase of $ 4 million was mainly due to an increase in the amount of $ 3.3 million from the issuance of shares and warrants and proceeds from issuance of loans to masthercell totaling $ 3.9 million , which was offset by repayment of short and long term loans in amount of $ 2.4 million , and by a decrease in the issuance convertible loans in amount of $ 0.7 million . we need to raise additional operating capital on an immediate 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 financial condition working capital deficiency replace_table_token_5_th the increase in current assets is mainly due to an increase of $ 3 million in cash and cash equivalents following the capital raise and an increase of $ 3.4 million in accounts receivable , inventory , prepaid expenses and other receivables , as well as grants receivable due to the acquisition of masthercell . cash flows replace_table_token_6_th our cash and cash equivalents balance increased to $ 4.2 million at november 30 , 2015 from $ 1.3 million at november 30 , 2014. the increase in cash and cash equivalents during the period was primarily due to increase in financing activities of $ 4 million that was offset by increase in cash flows used in operating activities in an amount of $ 1.3 million and by increase in cash used in investing activities of $ 0.9 million . net cash used in operations of approximately $ 2.7 million for the year ended november 30 , 2015 was mainly due to increases in accounts receivable of $ 0.7 million and a change in the fair value of convertible bonds and warrants of $ 2.6 million , but was offset by decrease of $ 1.1 million in prepaid expenses and other accounts receivable . net cash provided by financing activities for the year ended november 30 , 2015 was $ 6.7 million , compared to $ 2.7 million for the same period last year . the increase of $ 4 million was mainly due to an increase in the amount of $ 3.3 million from the issuance of shares and warrants and proceeds from issuance of loans to masthercell totaling $ 3.9 million , which was offset by repayment of short and long term loans in amount of $ 2.4 million , and by a decrease in the issuance convertible loans in amount of $ 0.7 million . we need to raise additional operating capital on an immediate basis . ``` Suspicious Activity Report : cell manufacturing services are generally distinct arrangements whereby masthercell is paid for time and materials or for fixed monthly amounts . the company also recognizes revenue via the sale of consumables to customers that are incidental to the services provided as foreseen in the clinical services contracts . on a monthly basis , the company bills customers for reimbursable expenses and immediately recognizes these billings in revenue , as the revenue is deemed earned . for the year ended november 30 , 2015 , our total revenues were approximately $ 3 million , as opposed to none for the corresponding period in 2014 , respectively . the increase in revenue is attributable to our acquisition of masthercell and the revenues they recognize from services and sales of consumables . expenses the company 's expenses for the year ended november 30 , 2015 are summarized as follows in comparison to its expenses for the year ended november 30 , 2014 : replace_table_token_1_th 42 research and development expenses replace_table_token_2_th the decrease in salaries and related expenses and in stock-based compensation in the year ended november 30 , 2015 , compared to 2014 , is primarily due to lower compensation expense for certain executives that are no longer employed by the company . this was offset by expenses due to the employment of a new development director for the cell therapy business . the decrease in grant income is due to a decrease of $ 266 thousand on the dgo6 project , mainly due to less work performed under grants approved from dgo6 in our belgian subsidiary and due to changes in the exchange rate currency . this was offset by grant income of $ 153 thousand due to work performed under the grant approved from bird . selling , general and administrative expenses replace_table_token_3_th the increase in salaries and related expenses for the year ended november 30 , 2015 , compared to 2014 is due to the increase in the number of employees following the acquisition of masthercell . in addition , there was an increase in legal and accounting fees due to the various material transactions that occurred for certain collaboration agreements and as a result of the acquisition of masthercell . the rent and related expenses for the year ended november 30 , 2015 arise from the offices of masthercell . the increase in professional fees for the year ended november 30 , 2015 is due to a reduction in the reliance on outside professionals as compared to the same period last year . financial expenses ( income ) , net replace_table_token_4_th 43 the increase in financial income for the year ended november 30 , 2015 compared to 2014 is mainly attributable to a decrease in the fair value of warrants , embedded derivative and convertible bonds , which is a non-cash metric that is based on the company 's share price as of the measurement date and reflects the issuance of beneficial warrants that were granted during 2015. due to a decrease in the company 's shares price during the period , there was a resultant income impact . story_separator_special_tag ( “ lenders ” ) furnished to us access to a $ 5.0 million credit line ( collectively , the “ credit facility agreements ” ) . pursuant to the credit facility agreements , upon request we are entitled to receive $ 500,000 or such lesser amount as may then be available under the credit facility ( the “ advance amount ” ) , pro-rata from the credit providers under the credit facility agreements , in consideration of which , we will issue to such persons , promissory notes for the amount advanced ( each a “ credit note ” ) . orgenesis may draw down on the credit facility as needed until the entire $ 5.0 million is exhausted . unless extended by mutual arrangement , the credit facility terminates on the earlier to occur of ( i ) november 30 , 2016 and ( ii ) such time as we shall have raised in excess of $ 10 million in an equity investment . in consideration of the funding commitment under the credit facility agreements , we issued to these lenders warrants to purchase up to an aggregate of 2,358,491 shares of the company 's common stock at a per share exercise price of $ 0.53 per share ( the “ commitment warrants ” ) . the commitment warrants become first exercisable upon the scheduled expiration or termination of the credit facility through the third anniversary thereof ; provided , that the commitment warrants issued to a lender are subject to cancellation if for whatever reason a funding request by such lender is not honored . additionally , upon the issuance of credit notes , the lender is entitled to three year warrants ( “ drawdown warrants ” ) to purchase additional shares of the company 's common stock in an amount equal to the quotient of : 0.50 x advance amount / $ 0.53. if the entire $ 5,000,000 were drawn down by the company , it would issue to the lenders a total of 4,716,980 drawdown warrants . all credit notes that may be issued under the credit facility mature on november 30 , 2016. interest on the outstanding principal amount of the credit notes accrues at a per annum rate of 12 % , payable at maturity or upon an event of default . the credit notes contain customary events of default for transactions of this nature . upon an event of default , the lender has the right to require the company to prepay the outstanding principal amount of the credit notes plus all accrued and unpaid interest . story_separator_special_tag goodwill is not amortized but is tested for impairment at least annually ( at november 30 ) , at the reporting unit level or more frequently if events or changes in circumstances indicate that the asset might be impaired . the goodwill impairment test is applied by performing a qualitative assessment before calculating the fair value of the reporting unit . if , on the basis of qualitative factors , it is considered not more likely than not that the fair value of the reporting unit is less than the carrying amount , further testing of goodwill for impairment would not be required . otherwise , goodwill impairment is tested using a two-step approach . fair value measurement the fair value measurement guidance clarifies that fair value is an exit price , representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants . as such , fair value is a market-based measurement that should be determined based on assumptions that market participants would use in the valuation of an asset or liability . it establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value . the hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities ( level 1 measurements ) and the lowest priority to unobservable inputs ( level 3 measurements ) . the three levels of the fair value hierarchy under the fair value measurement guidance are described below : 48 level 1 : quoted prices ( unadjusted ) in active markets that are accessible at the measurement date for assets or liabilities . the fair value hierarchy gives the highest priority to level 1 inputs . level 2 : observable inputs that are based on inputs not quoted on active markets , but corroborated by market data . level 3 : unobservable inputs are used when little or no market data is available . the fair value hierarchy gives the lowest priority to level 3 inputs . embedded derivatives we entered into convertible debentures agreements in which a derivative instrument is “embedded” . embedded derivative is separated from the host contract and carried at fair value when ( 1 ) the embedded derivative possesses economic characteristics that are not clearly and closely related to the economic characteristics of the host contract and ( 2 ) a separate , stand-alone instrument with the same terms would qualify as a derivative instrument . the derivative is measured both initially and in subsequent periods at fair value , with changes in fair value charged to finance expenses , net . as to embedded derivatives arising from the issuance of convertible debentures , see note 13. volatility in stock-based compensation the volatility is based on historical volatilities of companies in comparable stages as well as the historical volatility of companies in the industry and , by statistical analysis of the daily share-pricing model . the volatility of stock-based compensation granted after november 30 , 2013 is based on historical volatility of the company for the last two years . warrants and price protection mechanism derivative classified as a liability warrants that entitle the holder to down-round protection ( through ratchet and anti-dilution provisions ) and price protection mechanism derivatives in respect of shares entitled to down-round protection are classified as liabilities on the balance sheet . the liability is measured both initially and in subsequent periods at fair value , with changes in fair value charged to finance expenses , net . the fair value of the warrants and the price protection mechanism derivatives are determining by using a monte carlo type model based on a risk neutral approach . the model takes as an input the estimated future dates when new capital will be raised , and builds a multi-step dynamic model . the first step is to model the risk neutral distribution of the share value on the new issue dates , then for each path to use the black-scholes model to estimate the value of the warrants and the price protection mechanism derivatives on the last issue date including all the changes in exercise price and quantity along this path . the significant unobservable input used in the fair value measurement is the future expected issue dates . bsignificant delay in this input would result a higher fair value measurement . impairment of long-lived assets we are reviewing the property and equipment , intangible assets subject to amortization and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset class may not be recoverable . indicators of potential impairment include : an adverse change in legal factors or in the business climate that could affect the value of the asset ; an adverse change in the extent or manner in which the asset is used or is expected to be used , or in its physical condition ; and current or forecasted operating or cash flow losses that demonstrate continuing losses associated with the use of the asset . if indicators of impairment are present , the asset is tested for recoverability by comparing the carrying value of the asset to the related estimated undiscounted future cash flows expected to be derived from the asset . if the expected cash flows are less than the carrying value of the asset , then the asset is considered to be impaired and its carrying value is written down to fair value , based on the related estimated discounted cash flows . there were no impairment charges in 2015 . 49 revenue recognition we recognize the revenue for services linked to cell process development and cell manufacturing services based on individual contracts in accordance with asc 605 , revenue recognition , when the following criteria have been met : persuasive evidence of an arrangement exists ; delivery has occurred or services have been provided

our increase as a percentage of sales in fiscal year 2012 was primarily attributable to our increased expenses relating to new product introductions , particularly related to the introduction of intel 's sandy bridge processor as well as net sales which were lower than we had anticipated in fiscal year 2012. we use several suppliers and contract manufacturers to design and manufacture components in accordance with our specifications , with most final assembly and testing performed at our manufacturing facility in san jose , california . during fiscal year 2013 , we continued to invest in expanding our operations both in san jose , california and our subsidiaries in taiwan and the netherlands in order to support our growth . we have increased manufacturing and service operations in taiwan and the netherlands to support our asia and european customers and we have increased our utilization of our overseas manufacturing 29 capacity in fiscal year 2013. one of our key suppliers is ablecom , a related party , which supplies us with contract design and manufacturing support . for fiscal years 2013 , 2012 and 2011 , our purchases from ablecom represented 17.9 % , 19.9 % and 19.6 % of our cost of sales , respectively . the decrease as a percentage of cost of sales in fiscal year 2013 was attributable to our increased purchases from other suppliers . ablecom 's sales to us constitute a substantial majority of ablecom 's net sales . we continue to maintain our manufacturing relationship with ablecom in asia in an effort to reduce our product costs . in addition to providing a larger volume of contract manufacturing services for us , ablecom continues to warehouse for us a number of components and subassemblies manufactured by multiple suppliers prior to shipment to our facilities in the united states and europe . we typically negotiate the price of products that we purchase from ablecom on a quarterly basis ; however , either party may re-negotiate the price of products with each order . as a result of our relationship with ablecom , it is possible that ablecom may in the future sell products to us at a price higher or lower than we could obtain from an unrelated third party supplier . this may result in our future reporting of gross profit as a percentage of net sales that is less than or in excess of what we might have obtained absent our relationship with ablecom . in order to continue to increase our net sales and profits , we believe that we must continue to develop flexible and customizable server solutions and be among the first to market with new features and products . we measure our financial success based on various indicators , including growth in net sales , gross profit as a percentage of net sales , operating income as a percentage of net sales , levels of inventory , and days sales outstanding , or dsos . in connection with these efforts , we monitor daily and weekly sales and shipment reports . among the key non-financial indicators of our success is our ability to rapidly introduce new products and deliver the latest application optimized server solutions . in this regard , we work closely with microprocessor and other component vendors to take advantage of new technologies as they are introduced . historically , our ability to introduce new products rapidly has allowed us to benefit from the introduction of new microprocessors and as a result we monitor the introduction cycles of intel , amd and nvidia carefully . this also impacts our research and development expenditures . for example , in fiscal year 2012 and in prior years , our results have been adversely impacted by customer order delays in anticipation of the introduction of the new lines of microprocessors and research and development expenditures necessary for us to prepare for the introduction . other financial highlights the following is a summary of other financial highlights of fiscal year 2013 : net cash provided by operating activities was $ 13.6 million , $ 16.5 million and $ 8.5 million in fiscal year 2013 , 2012 and 2011 , respectively . our cash and cash equivalents , together with our investments , were $ 95.7 million at the end of fiscal year 2013 , compared with $ 83.8 million at the end of fiscal year 2012 . the increase in our cash and cash equivalents , together with our investments at the end of fiscal year 2013 was primarily due to $ 13.6 million of cash generated from our operating activities and $ 2.6 million of borrowings , net of repayments , offset in part by $ 5.0 million of purchases of property and equipments . days sales outstanding in accounts receivable ( “ dso ” ) at the end of fiscal year 2013 was 39 days , compared with 33 days at the end of fiscal year 2012 . the increase in our dso was primarily due to an increase in sales to customers with net payment terms and a decrease in sales to customers with telegraphic transfer ( `` tt `` ) payment terms . our inventory balance was $ 254.2 million at the end of fiscal year 2013 , compared with $ 276.6 million at the end of fiscal year 2012 . days sales of inventory ( “ dsi ” ) at the end of fiscal year 2013 was 95 days , compared with 100 days at the end of fiscal year 2012 . story_separator_special_tag the expected volatility is based on a combination of the implied and historical volatility of our relevant peer group for the stock options granted prior to september 30 , 2009. for stock options and restricted stock awards granted after september 30 , 2009 , expected volatility is based solely on our historical volatility . in addition , forfeitures of share-based awards are estimated at the time of grant and revised , if necessary , in subsequent periods if actual forfeitures differ from those estimates . we use historical data to estimate pre-vesting option forfeitures and record stock-based compensation expense only for those awards that are expected to vest . variable interest entities . we have concluded that ablecom and its subsidiaries ( `` ablecom `` ) is a variable interest entity in accordance with applicable accounting standards and guidance ; however , we are not the primary beneficiary of 33 ablecom and therefore , we do not consolidate ablecom . in performing our analysis , we considered our explicit arrangements with ablecom including the supplier and distributor arrangements . also , as a result of the substantial related party relationship between the two companies , we considered whether any implicit arrangements exist that would cause us to protect those related parties ' interests in ablecom from suffering losses . we determined that no implicit arrangements exist with ablecom or its shareholders . such an arrangement would be inconsistent with the fiduciary duty that we have towards our stockholders who do not own shares in ablecom . in may 2012 , we and ablecom jointly established super micro business park , inc. ( `` management company `` ) in taiwan to manage the common areas shared by us and ablecom for our separately constructed manufacturing facilities . each company contributed $ 168,000 and own 50 % of the management company . although the operations of the management company are independent of us , through governance rights , we have the ability to direct the management company 's business strategies . therefore , we have concluded that the management company is a variable interest entity of us as we are the primary beneficiary of the management company . as of june 30 , 2013 , the accounts of the management company have been consolidated with our accounts , and a noncontrolling interest has been recorded for ablecom 's interests in the net assets and operations of the management company . in fiscal year 2013 , $ 13,000 of net income attributable to ablecom 's interest was included in our general and administrative expenses in the consolidated statements of operations . results of operations the following table sets forth our financial results , as a percentage of net sales for the periods indicated : replace_table_token_6_th comparison of fiscal years ended june 30 , 2013 and 2012 net sales . net sales increased by $ 148.7 million , or 14.7 % , to $ 1,162.6 million from $ 1,013.9 million , for fiscal year 2013 and 2012 , respectively . this increase was due primarily to an increase in unit volumes of our subsystems and accessories and to a lesser extent an increase in the average selling price of our server systems offset by a decrease in unit volumes of server systems as we sold more higher density server systems on a processing node basis in fiscal year 2013 compared to fiscal year 2012. for fiscal year 2013 , the number of server system units sold decreased 2.9 % to 232,000 compared to 239,000 for fiscal year 2012 . the average selling price of server system units increased 15.8 % to $ 2,200 in fiscal year 2013 compared to $ 1,900 in fiscal year 2012 . the average selling prices of our server systems increased primarily due to higher average selling prices of microcloud , fattwin servers , storage and superblades servers with intel 's sandy bridge processors which offered higher density computing and more memory and hard disk drive capacity . sales of server systems increased by $ 54.9 million or 12.3 % from fiscal year 2012 to fiscal year 2013 , primarily due to higher sales of twin , storage , microcloud , gpu/xeon phi and superblade servers solutions and complete integrated-high-end servers solutions to oem and end customers partially offset by lower sales of rack solutions . sales of server systems represented 43.2 % of our net sales for fiscal year 2013 compared to 44.1 % of our net sales for fiscal year 2012 . 34 for fiscal year 2013 , the number of subsystems and accessories units sold increased 3.6 % to 4.5 million compared to 4.3 million for fiscal year 2012 . sales of subsystems and accessories increased by $ 93.8 million or 16.6 % from fiscal year 2012 to fiscal year 2013 , primarily related to higher sales of hard disk drives , chassis , memory and serverboards to our distributors and system integrators who purchased additional accessories from us and completed the final assembly themselves . sales of subsystems and accessories represented 56.8 % of our net sales for fiscal year 2013 as compared to 55.9 % of our net sales for fiscal year 2012 . for fiscal year 2013 and 2012 , we derived 56.3 % and 54.4 % , respectively , of our net sales from products sold to distributors and we derived 43.7 % and 45.6 % , respectively , from sales to oems and to end customers . for fiscal year 2013 , customers in the united states , europe and asia accounted for 54.2 % , 22.7 % and 20.5 % , of our net sales , respectively , as compared to 58.2 % , 21.8 % and 17.4 % of our net sales , respectively , for fiscal year 2012 . cost of sales . cost of sales increased by $ 154.1 million , or 18.2 % , to $ 1,002.5 million from $ 848.5 million , for fiscal year 2013

other factors affecting liquidity and capital resources activities under revolving lines of credit and term loans bank of america in october 2011 , we entered into an amendment to our existing credit agreement with bank of america , n.a . ( `` bank of america '' ) which provided for ( i ) a $ 40.0 million revolving line of credit facility through june 15 , 2013 and ( ii ) a five-year $ 14.0 million term loan facility . the term loan is secured by the three buildings purchased in san jose , california in june 2010 and the principal and interest are payable monthly through september 30 , 2016 with an interest rate at the libor rate plus 1.50 % per annum . in june and august 2013 , we extended the revolving line of credit to mature on august and september 15 , 2013 , respectively , and we are currently negotiating with bank of america to renew the revolving line of credit . the line of credit facility provided for borrowings denominated both in u.s. dollars and in taiwanese dollars . for borrowings denominated in u.s. dollars , the interest rate for the revolving line of credit is at the libor rate plus 1.25 % per annum . the libor rate was 0.19 % at june 30 , 2013 . for borrowings denominated in taiwanese dollars , the interest rate for the revolving line of credit is equal to the lender 's established interest rate which is adjusted monthly . as of june 30 , 2013 and 2012 , the total outstanding borrowings under the bank of america term loan was $ 9.3 million and $ 12.1 million , respectively . the total outstanding borrowings under the bank of america line of credit was $ 10.9 million and $ 10.6 million as of june 30 , 2013 and 2012 , 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. ```other factors affecting liquidity and capital resources activities under revolving lines of credit and term loans bank of america in october 2011 , we entered into an amendment to our existing credit agreement with bank of america , n.a . ( `` bank of america '' ) which provided for ( i ) a $ 40.0 million revolving line of credit facility through june 15 , 2013 and ( ii ) a five-year $ 14.0 million term loan facility . the term loan is secured by the three buildings purchased in san jose , california in june 2010 and the principal and interest are payable monthly through september 30 , 2016 with an interest rate at the libor rate plus 1.50 % per annum . in june and august 2013 , we extended the revolving line of credit to mature on august and september 15 , 2013 , respectively , and we are currently negotiating with bank of america to renew the revolving line of credit . the line of credit facility provided for borrowings denominated both in u.s. dollars and in taiwanese dollars . for borrowings denominated in u.s. dollars , the interest rate for the revolving line of credit is at the libor rate plus 1.25 % per annum . the libor rate was 0.19 % at june 30 , 2013 . for borrowings denominated in taiwanese dollars , the interest rate for the revolving line of credit is equal to the lender 's established interest rate which is adjusted monthly . as of june 30 , 2013 and 2012 , the total outstanding borrowings under the bank of america term loan was $ 9.3 million and $ 12.1 million , respectively . the total outstanding borrowings under the bank of america line of credit was $ 10.9 million and $ 10.6 million as of june 30 , 2013 and 2012 , respectively . ``` Suspicious Activity Report : our increase as a percentage of sales in fiscal year 2012 was primarily attributable to our increased expenses relating to new product introductions , particularly related to the introduction of intel 's sandy bridge processor as well as net sales which were lower than we had anticipated in fiscal year 2012. we use several suppliers and contract manufacturers to design and manufacture components in accordance with our specifications , with most final assembly and testing performed at our manufacturing facility in san jose , california . during fiscal year 2013 , we continued to invest in expanding our operations both in san jose , california and our subsidiaries in taiwan and the netherlands in order to support our growth . we have increased manufacturing and service operations in taiwan and the netherlands to support our asia and european customers and we have increased our utilization of our overseas manufacturing 29 capacity in fiscal year 2013. one of our key suppliers is ablecom , a related party , which supplies us with contract design and manufacturing support . for fiscal years 2013 , 2012 and 2011 , our purchases from ablecom represented 17.9 % , 19.9 % and 19.6 % of our cost of sales , respectively . the decrease as a percentage of cost of sales in fiscal year 2013 was attributable to our increased purchases from other suppliers . ablecom 's sales to us constitute a substantial majority of ablecom 's net sales . we continue to maintain our manufacturing relationship with ablecom in asia in an effort to reduce our product costs . in addition to providing a larger volume of contract manufacturing services for us , ablecom continues to warehouse for us a number of components and subassemblies manufactured by multiple suppliers prior to shipment to our facilities in the united states and europe . we typically negotiate the price of products that we purchase from ablecom on a quarterly basis ; however , either party may re-negotiate the price of products with each order . as a result of our relationship with ablecom , it is possible that ablecom may in the future sell products to us at a price higher or lower than we could obtain from an unrelated third party supplier . this may result in our future reporting of gross profit as a percentage of net sales that is less than or in excess of what we might have obtained absent our relationship with ablecom . in order to continue to increase our net sales and profits , we believe that we must continue to develop flexible and customizable server solutions and be among the first to market with new features and products . we measure our financial success based on various indicators , including growth in net sales , gross profit as a percentage of net sales , operating income as a percentage of net sales , levels of inventory , and days sales outstanding , or dsos . in connection with these efforts , we monitor daily and weekly sales and shipment reports . among the key non-financial indicators of our success is our ability to rapidly introduce new products and deliver the latest application optimized server solutions . in this regard , we work closely with microprocessor and other component vendors to take advantage of new technologies as they are introduced . historically , our ability to introduce new products rapidly has allowed us to benefit from the introduction of new microprocessors and as a result we monitor the introduction cycles of intel , amd and nvidia carefully . this also impacts our research and development expenditures . for example , in fiscal year 2012 and in prior years , our results have been adversely impacted by customer order delays in anticipation of the introduction of the new lines of microprocessors and research and development expenditures necessary for us to prepare for the introduction . other financial highlights the following is a summary of other financial highlights of fiscal year 2013 : net cash provided by operating activities was $ 13.6 million , $ 16.5 million and $ 8.5 million in fiscal year 2013 , 2012 and 2011 , respectively . our cash and cash equivalents , together with our investments , were $ 95.7 million at the end of fiscal year 2013 , compared with $ 83.8 million at the end of fiscal year 2012 . the increase in our cash and cash equivalents , together with our investments at the end of fiscal year 2013 was primarily due to $ 13.6 million of cash generated from our operating activities and $ 2.6 million of borrowings , net of repayments , offset in part by $ 5.0 million of purchases of property and equipments . days sales outstanding in accounts receivable ( “ dso ” ) at the end of fiscal year 2013 was 39 days , compared with 33 days at the end of fiscal year 2012 . the increase in our dso was primarily due to an increase in sales to customers with net payment terms and a decrease in sales to customers with telegraphic transfer ( `` tt `` ) payment terms . our inventory balance was $ 254.2 million at the end of fiscal year 2013 , compared with $ 276.6 million at the end of fiscal year 2012 . days sales of inventory ( “ dsi ” ) at the end of fiscal year 2013 was 95 days , compared with 100 days at the end of fiscal year 2012 . story_separator_special_tag the expected volatility is based on a combination of the implied and historical volatility of our relevant peer group for the stock options granted prior to september 30 , 2009. for stock options and restricted stock awards granted after september 30 , 2009 , expected volatility is based solely on our historical volatility . in addition , forfeitures of share-based awards are estimated at the time of grant and revised , if necessary , in subsequent periods if actual forfeitures differ from those estimates . we use historical data to estimate pre-vesting option forfeitures and record stock-based compensation expense only for those awards that are expected to vest . variable interest entities . we have concluded that ablecom and its subsidiaries ( `` ablecom `` ) is a variable interest entity in accordance with applicable accounting standards and guidance ; however , we are not the primary beneficiary of 33 ablecom and therefore , we do not consolidate ablecom . in performing our analysis , we considered our explicit arrangements with ablecom including the supplier and distributor arrangements . also , as a result of the substantial related party relationship between the two companies , we considered whether any implicit arrangements exist that would cause us to protect those related parties ' interests in ablecom from suffering losses . we determined that no implicit arrangements exist with ablecom or its shareholders . such an arrangement would be inconsistent with the fiduciary duty that we have towards our stockholders who do not own shares in ablecom . in may 2012 , we and ablecom jointly established super micro business park , inc. ( `` management company `` ) in taiwan to manage the common areas shared by us and ablecom for our separately constructed manufacturing facilities . each company contributed $ 168,000 and own 50 % of the management company . although the operations of the management company are independent of us , through governance rights , we have the ability to direct the management company 's business strategies . therefore , we have concluded that the management company is a variable interest entity of us as we are the primary beneficiary of the management company . as of june 30 , 2013 , the accounts of the management company have been consolidated with our accounts , and a noncontrolling interest has been recorded for ablecom 's interests in the net assets and operations of the management company . in fiscal year 2013 , $ 13,000 of net income attributable to ablecom 's interest was included in our general and administrative expenses in the consolidated statements of operations . results of operations the following table sets forth our financial results , as a percentage of net sales for the periods indicated : replace_table_token_6_th comparison of fiscal years ended june 30 , 2013 and 2012 net sales . net sales increased by $ 148.7 million , or 14.7 % , to $ 1,162.6 million from $ 1,013.9 million , for fiscal year 2013 and 2012 , respectively . this increase was due primarily to an increase in unit volumes of our subsystems and accessories and to a lesser extent an increase in the average selling price of our server systems offset by a decrease in unit volumes of server systems as we sold more higher density server systems on a processing node basis in fiscal year 2013 compared to fiscal year 2012. for fiscal year 2013 , the number of server system units sold decreased 2.9 % to 232,000 compared to 239,000 for fiscal year 2012 . the average selling price of server system units increased 15.8 % to $ 2,200 in fiscal year 2013 compared to $ 1,900 in fiscal year 2012 . the average selling prices of our server systems increased primarily due to higher average selling prices of microcloud , fattwin servers , storage and superblades servers with intel 's sandy bridge processors which offered higher density computing and more memory and hard disk drive capacity . sales of server systems increased by $ 54.9 million or 12.3 % from fiscal year 2012 to fiscal year 2013 , primarily due to higher sales of twin , storage , microcloud , gpu/xeon phi and superblade servers solutions and complete integrated-high-end servers solutions to oem and end customers partially offset by lower sales of rack solutions . sales of server systems represented 43.2 % of our net sales for fiscal year 2013 compared to 44.1 % of our net sales for fiscal year 2012 . 34 for fiscal year 2013 , the number of subsystems and accessories units sold increased 3.6 % to 4.5 million compared to 4.3 million for fiscal year 2012 . sales of subsystems and accessories increased by $ 93.8 million or 16.6 % from fiscal year 2012 to fiscal year 2013 , primarily related to higher sales of hard disk drives , chassis , memory and serverboards to our distributors and system integrators who purchased additional accessories from us and completed the final assembly themselves . sales of subsystems and accessories represented 56.8 % of our net sales for fiscal year 2013 as compared to 55.9 % of our net sales for fiscal year 2012 . for fiscal year 2013 and 2012 , we derived 56.3 % and 54.4 % , respectively , of our net sales from products sold to distributors and we derived 43.7 % and 45.6 % , respectively , from sales to oems and to end customers . for fiscal year 2013 , customers in the united states , europe and asia accounted for 54.2 % , 22.7 % and 20.5 % , of our net sales , respectively , as compared to 58.2 % , 21.8 % and 17.4 % of our net sales , respectively , for fiscal year 2012 . cost of sales . cost of sales increased by $ 154.1 million , or 18.2 % , to $ 1,002.5 million from $ 848.5 million , for fiscal year 2013

in our zig-zag products segment , we principally market and distribute ( i ) rolling papers , tubes , and related products ; and ( ii ) finished cigars and make-your-own ( “ myo ” ) cigar wraps . in our stoker 's products segment , we ( i ) manufacture and market moist snuff tobacco ( “ mst ” ) and ( ii ) contract for and market loose leaf chewing tobacco products . in our newgen products segment , we ( i ) market and distribute cbd , liquid vapor products and certain other products without tobacco and or nicotine ; ( ii ) distribute a wide assortment of products to non-traditional retail via vaporbeast ; and ( iii ) market and distribute a wide assortment of products to individual consumers via the vaporfi b2c online platform . refer to the ‘ recent developments ' section below for details regarding the recreation marketing investment . 38 our portfolio of brands includes some of the most widely recognized names in the alternative smoking accessories and otp industries , such as zig-zag ® , stoker 's ® , vapor beast ® and vaporfi ® . the following table sets forth the market share and category rank of our core products and demonstrates their industry positions : replace_table_token_3_th ( 1 ) market share and category rank data for all products are derived from msai data 52 weeks endeding 12/26/20 . operations we subscribe to a sales tracking system from msai that records all otp product shipments ( ours as well as those of our competitors ) from approximately 900 wholesalers to over 250,000 traditional retail stores in the u.s. this system enables us to understand individual product share and volume trends across multiple categories down to the individual retail store level , allowing us to allocate field salesforce coverage to the highest opportunity stores . our sales and marketing group of approximately 180 professionals utilize the msai system to efficiently target markets and sales channels with the highest sales potential . our core zig-zag products and stoker 's products segments primarily generate revenues from the sale of our products to wholesale distributors who , in turn , resell the products to retail operations . our acquisition of vaporbeast in 2016 expanded our revenue streams as we began selling directly to non-traditional retail outlets . our acquisition of ivg in 2018 enhanced our b2c revenue stream with the addition of the vapor-fi online platform . the acquisition of solace provided us with a line of leading liquids and a powerful new product development platform . our net sales , which include federal excise taxes , consist of gross sales net of cash discounts , returns , and selling and marketing allowances . we rely on long-standing relationships with high-quality , established manufacturers to provide the majority of our produced products . more than 80 % of our production , as measured by net sales , is outsourced to suppliers . the remaining production consists primarily of our moist snuff tobacco operations located in dresden , tennessee , and louisville , kentucky . our principal operating expenses include the cost of raw materials used to manufacture the limited number of our products which we produce in-house ; the cost of finished products , which are generally purchased goods ; federal excise taxes ; legal expenses ; and compensation expenses , including benefits and costs of salaried personnel . our other principal expenses include interest expense and other expenses . key factors affecting our results of operations we consider the following to be the key factors affecting our results of operations : our ability to further penetrate markets with our existing products ; our ability to introduce new products and product lines that complement our core business ; decreasing interest in tobacco products among consumers ; price sensitivity in our end-markets ; marketing and promotional initiatives , which cause variability in our results ; general economic conditions , including consumer access to disposable income ; cost and increasing regulation of promotional and advertising activities ; cost of complying with regulation , including “ deeming regulation ” ; counterfeit and other illegal products in our end-markets ; currency fluctuations ; our ability to identify attractive acquisition opportunities ; and our ability to integrate acquisitions . 39 recent developments covid-19 impact as a result of the extraordinary situation caused by the covid-19 pandemic , our focus is on the safety and well-being of our colleagues and the communities and customers we serve . as an organization , we have implemented several changes to enhance safety and mitigate health risk in our work environment . for our warehouse and manufacturing operations , these include split shifts , temperature scans , additional contactless hand sanitizing stations , protective equipment , social distancing guidelines , and increased cleaning and sanitization . these changes resulted in higher operational costs related to maintaining a safer work environment and fulfilling orders . we canceled all unnecessary travel and facilitated telecommuting where possible . like many companies , we have changed the way we communicate through increased use of videoconferencing and have implemented tele-selling initiatives through our sales force . some of these changes that are proving to be efficient are likely to remain in-place even after the restrictions caused by the pandemic are lifted and will lead to on-going cost savings . we have also put a hold on new spending commitments as we cautiously manage through this environment . we hired additional employees in our louisville facility and implemented temporary wage increases for our hourly employees to meet increased demand . we shifted production capacity to manufacture hand sanitizers and have donated bottles to hospitals , nursing homes and first responders in our local communities . covid-19 may impact our results . our third-party cigar wrap manufacturer in the dominican republic was temporarily shut down . our supply chain has remained operational otherwise . story_separator_special_tag income taxes we account for income taxes under asc 740. we record the effects of income taxes under the liability method in which deferred income tax assets and liabilities are recognized based on the difference between the financial and tax basis of assets and liabilities using the enacted tax rates in effect for the years in which the differences are expected to reverse . we assess our ability to realize future benefits of deferred tax assets by determining if they meet the “ more likely than not ” criteria in asc 740 , income taxes . if we determine that future benefits do not meet the “ more likely than not ” criteria , a valuation allowance is recorded . stock-based compensation we measure stock compensation costs related to our stock options on the fair value-based method under the provisions of asc 718 , compensation – stock compensation , which requires compensation cost for stock options to be recognized based on the fair value of stock options granted . we determined the fair value of these awards using the black-scholes option pricing model . we grant performance-based restricted stock units ( “ prsu ” ) subject to both performance-based and service-based vesting conditions . the fair value of each prsu is our stock price on the date of grant . for purposes of recognizing compensation expense as services are rendered in accordance with asc 718 , we assume all employees involved in the prsu grant will provide service through the end of the performance period . stock compensation expense is recorded based on the probability of achievement of the performance conditions specified in the prsu grant . accounts receivable accounts receivable are recognized at their net realizable value . all accounts receivable are trade-related and are recorded at the invoiced amount and do not bear interest . we maintain allowances for doubtful accounts receivable for estimated uncollectible invoices resulting from the customer 's inability to pay , which may result in write-offs . we recorded an allowance for doubtful accounts of $ 0.2 million and less than $ 0.3 million at december 31 , 2020 and 2019 , respectively . 43 inventories inventories are stated at the lower of cost or market . cost was determined using the lifo method for approximately 45.1 % of the inventories as of december 31 , 2020. leaf tobacco is presented in current assets in accordance with standard industry practice , notwithstanding the fact that such tobaccos are carried longer than one year for the purpose of curing . we recorded an inventory valuation allowance of $ 9.9 million and $ 21.5 million at december 31 , 2020 and 2019 , respectively . jumpstart our business startups act of 2012 we chose to “ opt out ” of the provision of the jobs act that permits us , as an “ emerging growth company , ” to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies . as a result , we will comply with new or revised accounting standards as required for public companies . our decision to opt out of the extended transition period provided in the jobs act is irrevocable . results of operations summary the table and discussion set forth below relates to our consolidated results of operations for the years ended december 31 ( in thousands ) : replace_table_token_4_th comparison of year ended december 31 , 2020 , to year ended december 31 , 2019 net sales . for the year ended december 31 , 2020 , overall net sales increased to $ 405.1 million from $ 362.0 million for the year ended december 31 , 2019 , an increase of $ 43.1 million or 11.9 % . the increase in net sales was primarily driven by increased sales volume across all segments . for the year ended december 31 , 2020 , net sales in the zig-zag products segment increased to $ 132.8 million from $ 108.7 million for the year ended december 31 , 2019 , an increase of $ 24.1 million or 22.1 % . for the year ended december 31 , 2020 , zig-zag products volumes increased 19.7 % , and price/mix increased 2.4 % . the increase in net sales was primarily related to double digit growth in us papers and wraps , partially offset by a $ 1.8 million decline in non-focus cigars and myo pipe . 44 for the year ended december 31 , 2020 , net sales in the stoker 's products segment increased to $ 115.9 million from $ 99.9 million for the year ended december 31 , 2019 , an increase of $ 16.0 million or 16.0 % . for the year ended december 31 , 2020 , stoker 's products volume increased 12.0 % and price/mix increased 4.0 % . the increase in net sales was primarily driven by the continuing double-digit volume growth of stoker 's ® mst . sales in chewing tobacco products were up mid-single digits as compared to prior year . mst represented 59 % of stoker 's products revenue in 2020 , up from 54 % a year earlier . for the year ended december 31 , 2020 , net sales in the newgen products segment increased to $ 156.4 million from $ 153.4 million for the year ended december 31 , 2019 , an increase of $ 3.1 million or 2.0 % . the increase in net sales was primarily the result of growth in both the nu-x and vape distribution businesses . gross profit . for the year ended december 31 , 2020 , overall gross profit increased to $ 189.6 million from $ 136.7 million for the year ended december 31 , 2019 , an increase of $ 52.9 million or 38.7 % , due to growth across all segments and $ 24.2 million of costs in 2019 that did not recur primarily related to inventory reserves . consolidated gross

loss on extinguishment of debt . for the year ended december 31 , 2020 , there was no loss on extinguishment of debt . for the year ended december 31 , 2019 , loss on extinguishment of debt was $ 1.3 million as the result of paying off the 2018 second lien credit facility . net periodic benefit cost ( income ) , excluding service cost . for the year ended december 31 , 2020 , net periodic cost was $ 0.9 million primarily as a result of the curtailment from the shutdown of the pension plan . for the year ended december 31 , 2019 , net periodic income was $ 5.0 million primarily due to the gain on the termination of the postretirement plan . 45 income tax expense . the company 's income tax expense was $ 10.0 million , or 23.3 % of income before income taxes , for the year ended december 31 , 2020 , and included a discrete tax deduction of $ 3.3 million relating to stock option exercises during the year and a discrete tax benefit of $ 0.6 million from the shutdown of the pension plan . the company 's income tax expense of $ 2.0 million , or 12.9 % of income before income taxes , for the year ended december 31 , 2019 , was lower than the expected annual effective tax rate as a result of discrete tax benefits of $ 4.6 million from the exercise of stock options during the year . consolidated net income . due to the factors described above , net income for the year ended december 31 , 2020 and 2019 , was $ 33.0 million and $ 13.8 million , respectively . comparison of year ended december 31 , 2019 , to year ended december 31 , 2018 net sales . for the year ended december 31 , 2019 , overall net sales increased to $ 362.0 million from $ 332.7 million for the year ended december 31 , 2018 , an increase of $ 29.3 million or 8.8 % .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 . for the year ended december 31 , 2020 , there was no loss on extinguishment of debt . for the year ended december 31 , 2019 , loss on extinguishment of debt was $ 1.3 million as the result of paying off the 2018 second lien credit facility . net periodic benefit cost ( income ) , excluding service cost . for the year ended december 31 , 2020 , net periodic cost was $ 0.9 million primarily as a result of the curtailment from the shutdown of the pension plan . for the year ended december 31 , 2019 , net periodic income was $ 5.0 million primarily due to the gain on the termination of the postretirement plan . 45 income tax expense . the company 's income tax expense was $ 10.0 million , or 23.3 % of income before income taxes , for the year ended december 31 , 2020 , and included a discrete tax deduction of $ 3.3 million relating to stock option exercises during the year and a discrete tax benefit of $ 0.6 million from the shutdown of the pension plan . the company 's income tax expense of $ 2.0 million , or 12.9 % of income before income taxes , for the year ended december 31 , 2019 , was lower than the expected annual effective tax rate as a result of discrete tax benefits of $ 4.6 million from the exercise of stock options during the year . consolidated net income . due to the factors described above , net income for the year ended december 31 , 2020 and 2019 , was $ 33.0 million and $ 13.8 million , respectively . comparison of year ended december 31 , 2019 , to year ended december 31 , 2018 net sales . for the year ended december 31 , 2019 , overall net sales increased to $ 362.0 million from $ 332.7 million for the year ended december 31 , 2018 , an increase of $ 29.3 million or 8.8 % . ``` Suspicious Activity Report : in our zig-zag products segment , we principally market and distribute ( i ) rolling papers , tubes , and related products ; and ( ii ) finished cigars and make-your-own ( “ myo ” ) cigar wraps . in our stoker 's products segment , we ( i ) manufacture and market moist snuff tobacco ( “ mst ” ) and ( ii ) contract for and market loose leaf chewing tobacco products . in our newgen products segment , we ( i ) market and distribute cbd , liquid vapor products and certain other products without tobacco and or nicotine ; ( ii ) distribute a wide assortment of products to non-traditional retail via vaporbeast ; and ( iii ) market and distribute a wide assortment of products to individual consumers via the vaporfi b2c online platform . refer to the ‘ recent developments ' section below for details regarding the recreation marketing investment . 38 our portfolio of brands includes some of the most widely recognized names in the alternative smoking accessories and otp industries , such as zig-zag ® , stoker 's ® , vapor beast ® and vaporfi ® . the following table sets forth the market share and category rank of our core products and demonstrates their industry positions : replace_table_token_3_th ( 1 ) market share and category rank data for all products are derived from msai data 52 weeks endeding 12/26/20 . operations we subscribe to a sales tracking system from msai that records all otp product shipments ( ours as well as those of our competitors ) from approximately 900 wholesalers to over 250,000 traditional retail stores in the u.s. this system enables us to understand individual product share and volume trends across multiple categories down to the individual retail store level , allowing us to allocate field salesforce coverage to the highest opportunity stores . our sales and marketing group of approximately 180 professionals utilize the msai system to efficiently target markets and sales channels with the highest sales potential . our core zig-zag products and stoker 's products segments primarily generate revenues from the sale of our products to wholesale distributors who , in turn , resell the products to retail operations . our acquisition of vaporbeast in 2016 expanded our revenue streams as we began selling directly to non-traditional retail outlets . our acquisition of ivg in 2018 enhanced our b2c revenue stream with the addition of the vapor-fi online platform . the acquisition of solace provided us with a line of leading liquids and a powerful new product development platform . our net sales , which include federal excise taxes , consist of gross sales net of cash discounts , returns , and selling and marketing allowances . we rely on long-standing relationships with high-quality , established manufacturers to provide the majority of our produced products . more than 80 % of our production , as measured by net sales , is outsourced to suppliers . the remaining production consists primarily of our moist snuff tobacco operations located in dresden , tennessee , and louisville , kentucky . our principal operating expenses include the cost of raw materials used to manufacture the limited number of our products which we produce in-house ; the cost of finished products , which are generally purchased goods ; federal excise taxes ; legal expenses ; and compensation expenses , including benefits and costs of salaried personnel . our other principal expenses include interest expense and other expenses . key factors affecting our results of operations we consider the following to be the key factors affecting our results of operations : our ability to further penetrate markets with our existing products ; our ability to introduce new products and product lines that complement our core business ; decreasing interest in tobacco products among consumers ; price sensitivity in our end-markets ; marketing and promotional initiatives , which cause variability in our results ; general economic conditions , including consumer access to disposable income ; cost and increasing regulation of promotional and advertising activities ; cost of complying with regulation , including “ deeming regulation ” ; counterfeit and other illegal products in our end-markets ; currency fluctuations ; our ability to identify attractive acquisition opportunities ; and our ability to integrate acquisitions . 39 recent developments covid-19 impact as a result of the extraordinary situation caused by the covid-19 pandemic , our focus is on the safety and well-being of our colleagues and the communities and customers we serve . as an organization , we have implemented several changes to enhance safety and mitigate health risk in our work environment . for our warehouse and manufacturing operations , these include split shifts , temperature scans , additional contactless hand sanitizing stations , protective equipment , social distancing guidelines , and increased cleaning and sanitization . these changes resulted in higher operational costs related to maintaining a safer work environment and fulfilling orders . we canceled all unnecessary travel and facilitated telecommuting where possible . like many companies , we have changed the way we communicate through increased use of videoconferencing and have implemented tele-selling initiatives through our sales force . some of these changes that are proving to be efficient are likely to remain in-place even after the restrictions caused by the pandemic are lifted and will lead to on-going cost savings . we have also put a hold on new spending commitments as we cautiously manage through this environment . we hired additional employees in our louisville facility and implemented temporary wage increases for our hourly employees to meet increased demand . we shifted production capacity to manufacture hand sanitizers and have donated bottles to hospitals , nursing homes and first responders in our local communities . covid-19 may impact our results . our third-party cigar wrap manufacturer in the dominican republic was temporarily shut down . our supply chain has remained operational otherwise . story_separator_special_tag income taxes we account for income taxes under asc 740. we record the effects of income taxes under the liability method in which deferred income tax assets and liabilities are recognized based on the difference between the financial and tax basis of assets and liabilities using the enacted tax rates in effect for the years in which the differences are expected to reverse . we assess our ability to realize future benefits of deferred tax assets by determining if they meet the “ more likely than not ” criteria in asc 740 , income taxes . if we determine that future benefits do not meet the “ more likely than not ” criteria , a valuation allowance is recorded . stock-based compensation we measure stock compensation costs related to our stock options on the fair value-based method under the provisions of asc 718 , compensation – stock compensation , which requires compensation cost for stock options to be recognized based on the fair value of stock options granted . we determined the fair value of these awards using the black-scholes option pricing model . we grant performance-based restricted stock units ( “ prsu ” ) subject to both performance-based and service-based vesting conditions . the fair value of each prsu is our stock price on the date of grant . for purposes of recognizing compensation expense as services are rendered in accordance with asc 718 , we assume all employees involved in the prsu grant will provide service through the end of the performance period . stock compensation expense is recorded based on the probability of achievement of the performance conditions specified in the prsu grant . accounts receivable accounts receivable are recognized at their net realizable value . all accounts receivable are trade-related and are recorded at the invoiced amount and do not bear interest . we maintain allowances for doubtful accounts receivable for estimated uncollectible invoices resulting from the customer 's inability to pay , which may result in write-offs . we recorded an allowance for doubtful accounts of $ 0.2 million and less than $ 0.3 million at december 31 , 2020 and 2019 , respectively . 43 inventories inventories are stated at the lower of cost or market . cost was determined using the lifo method for approximately 45.1 % of the inventories as of december 31 , 2020. leaf tobacco is presented in current assets in accordance with standard industry practice , notwithstanding the fact that such tobaccos are carried longer than one year for the purpose of curing . we recorded an inventory valuation allowance of $ 9.9 million and $ 21.5 million at december 31 , 2020 and 2019 , respectively . jumpstart our business startups act of 2012 we chose to “ opt out ” of the provision of the jobs act that permits us , as an “ emerging growth company , ” to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies . as a result , we will comply with new or revised accounting standards as required for public companies . our decision to opt out of the extended transition period provided in the jobs act is irrevocable . results of operations summary the table and discussion set forth below relates to our consolidated results of operations for the years ended december 31 ( in thousands ) : replace_table_token_4_th comparison of year ended december 31 , 2020 , to year ended december 31 , 2019 net sales . for the year ended december 31 , 2020 , overall net sales increased to $ 405.1 million from $ 362.0 million for the year ended december 31 , 2019 , an increase of $ 43.1 million or 11.9 % . the increase in net sales was primarily driven by increased sales volume across all segments . for the year ended december 31 , 2020 , net sales in the zig-zag products segment increased to $ 132.8 million from $ 108.7 million for the year ended december 31 , 2019 , an increase of $ 24.1 million or 22.1 % . for the year ended december 31 , 2020 , zig-zag products volumes increased 19.7 % , and price/mix increased 2.4 % . the increase in net sales was primarily related to double digit growth in us papers and wraps , partially offset by a $ 1.8 million decline in non-focus cigars and myo pipe . 44 for the year ended december 31 , 2020 , net sales in the stoker 's products segment increased to $ 115.9 million from $ 99.9 million for the year ended december 31 , 2019 , an increase of $ 16.0 million or 16.0 % . for the year ended december 31 , 2020 , stoker 's products volume increased 12.0 % and price/mix increased 4.0 % . the increase in net sales was primarily driven by the continuing double-digit volume growth of stoker 's ® mst . sales in chewing tobacco products were up mid-single digits as compared to prior year . mst represented 59 % of stoker 's products revenue in 2020 , up from 54 % a year earlier . for the year ended december 31 , 2020 , net sales in the newgen products segment increased to $ 156.4 million from $ 153.4 million for the year ended december 31 , 2019 , an increase of $ 3.1 million or 2.0 % . the increase in net sales was primarily the result of growth in both the nu-x and vape distribution businesses . gross profit . for the year ended december 31 , 2020 , overall gross profit increased to $ 189.6 million from $ 136.7 million for the year ended december 31 , 2019 , an increase of $ 52.9 million or 38.7 % , due to growth across all segments and $ 24.2 million of costs in 2019 that did not recur primarily related to inventory reserves . consolidated gross

key factors affecting our business key factors that we believe impact our business , results of operations and financial condition include , but are not limited to , the following : ● the dollar amount volume and the number of transactions that are processed by the customers that we currently serve ; ● our ability to attract new merchants and onboard them as active processing customers ; ● our ability to ( i ) successfully integrate recent acquisitions and ( ii ) complete future acquisitions ; ● our ability to offer new and competitive payment technology solutions to our customers ; and ● general economic conditions and consumer finance trends . 39 acquisitions on february 10 , 2020 , we announced the acquisition of ventanex for up to $ 50.0 million , which includes a $ 14.0 million performance-based earnout . the closing of the acquisition was financed with a combination of cash on hand and new borrowings under our existing credit facility . see note 5 to the audited consolidated financial statements included elsewhere in this annual report on form 10-k. on july 23 , 2020 , we announced the acquisition of cpayplus for up to $ 16.0 million , which includes a $ 8.0 million performance-based earnout . the closing of the acquisition was financed with cash on hand . see note 5 to the audited consolidated financial statements included elsewhere in this annual report on form 10-k. on october 27 , 2020 , we announced the acquisition of cps for up to $ 93 million , which includes up to $ 15 million in performance-based earnouts . the acquisition closed on november 2 , 2020 and was financed with cash on hand . see note 5 to the audited consolidated financial statements included elsewhere in this annual report on form 10-k. key components of our revenues and expenses revenues revenue . as our customers process increased volumes of payments , our revenues increase as a result of the fees we charge for processing these payments . most of our revenues are derived from volume-based payment processing fees ( “ discount fees ” ) and other related fixed per transaction fees . discount fees represent a percentage of the dollar amount of each credit or debit transaction processed and include fees relating to processing and services that we provide . the transaction price for such processing services are determined , based on the judgment of the company 's management , considering factors such as margin objectives , pricing practices and controls , customer segment pricing strategies , the product life cycle and the observable price of the service charged to similarly situated customers . we believe our chargeback rate was less than 1 % of our card payment volume , during the years ended december 31 , 2020 , 2019 and 2018. as discussed in note 3 in the notes to the consolidated financial statements , repay adopted asc 606 on january 1 , 2019 , using the modified retrospective method and applying the standard to all contracts not completed on the date of adoption . results for the reporting period beginning january 1 , 2019 are presented under asc 606 , while the 2018 amounts continue to be reported in accordance with the company 's historical accounting practices under previous guidance . the primary impact to the company 's consolidated financial statements as a result of the adoption of asc 606 is a change in total net revenue attributable to the presentation of interchange , network and other fees on a net basis , driven by changes in principal and agent considerations , as compared to previously being presented on a gross basis . under the modified retrospective method , the company did not restate its 2018 consolidated financial statements for these effects . expenses interchange and network fees . interchange and network fees consist primarily of pass-through fees which generally increase in proportion to card payment volume increases . these include interchange fees , dues and assessments , and other pass-through costs . beginning january 1 , 2019 , as a result of the adoption of asc 606 , interchange and network fees are not presented as operating expenses , but as a reduction of revenue . other costs of services . other costs of services primarily include commissions to our software integration partners and other third-party processing costs , such as front and back-end processing costs and sponsor bank fees . selling , general and administrative . selling , general and administrative expenses include salaries , share-based compensation and other employment costs , professional service fees , rent and utilities , and other operating costs . depreciation and amortization . depreciation expense consists of depreciation on our investments in property , equipment and computer hardware . depreciation expense is recognized on a straight-line basis over the estimated useful life of the asset . amortization expense for software development costs and purchased software is recognized on the straight-line method over a three-year estimated useful life , over a ten-year estimated useful life for customer relationships and channel relationships , and a two-year estimated useful life for non-competition agreements . interest expense . prior to the closing of the business combination , interest expense consisted of interest in respect of our indebtedness under our predecessor credit agreement ( as defined below ) , which was terminated in connection with the 40 closing of the business combination . in periods after the closing of the business combination , interest expense consists of interest in respect of our indebtedness under the successor credit agreement ( as defined below ) , which was entered into in connection with the business combination and amended in february 2020 and november 2020 . change in fair value of tax receivable liability . this amount represents the change in fair value of the tax receivable agreement liability . story_separator_special_tag the increase in net income ( loss ) attributable to the company for the year ended december 31 , 2020 , is primarily the result of one-time expenses incurred in connection with the business combination . for discussion on adjusted ebitda , adjusted net income , and net income ( loss ) attributable to the company for the year ended december 31 , 2019 compared to the year ended december 31 , 2018 , see part ii , item 7 of the company 's 2019 form 10-k. seasonality we have experienced in the past , and may continue to experience , seasonal fluctuations in our volumes and revenues as a result of consumer spending patterns . volumes and revenues during the first quarter of the calendar year tend to increase in comparison to the remaining three quarters of the calendar year on a same store basis . this increase is due to consumers ' receipt of tax refunds and the increases in repayment activity levels that follow . operating expenses show less seasonal fluctuation , with the result that net income is subject to the similar seasonal factors as our volumes and revenues . liquidity and capital resources we have historically financed our operations and working capital through net cash from operating activities . we also finance our operations through proceeds from the issuance of our class a common stock in june 2020 and our january 2021 convertible notes offering . as of december 31 , 2020 , we had $ 92.6 million of cash and cash equivalents and available borrowing capacity of $ 75.6 million under the successor credit agreement . this balance does not include restricted cash , which reflects cash accounts holding reserves for potential losses and customer settlement funds of $ 13.9 million as of december 31 , 2020. in february 2021 , we used a portion of the proceeds from the january 2021 convertible notes offering to prepay in full the entire principal amount of the term loans then outstanding under the successor credit agreement and also terminated in full all delayed draw term loan commitments then outstanding . at that time , we also amended and restated the successor credit agreement and entered into the amended credit agreement , which establishes a $ 125.0 million senior secured revolving credit facility in favor of hawk parent . our primary cash needs are to fund working capital requirements , invest in technology development , fund acquisitions and related contingent consideration , make scheduled principal payments and interest payments on our outstanding indebtedness and pay tax distributions to members of hawk parent . we expect that our cash flow from 47 operations , current cash and cash equivalents and available borrowing capacity under the amended credit agreement will be sufficient to fund our operations and planned capital expenditures and to service our debt obligations for the next twelve months . we are a holding company with no operations and depend on our subsidiaries for cash to fund all of our consolidated operations , including future dividend payments , if any . we depend on the payment of distributions by our current subsidiaries , including hawk parent , which distributions may be restricted by law or contractual agreements , including agreements governing their indebtedness . for a discussion of those considerations and restrictions , refer to part ii , item 1a `` risk factors - risks related to our class a common stock . `` cash flows the following table present a summary of cash flows from operating , investing and financing activities for the periods indicated : replace_table_token_8_th cash flow from operating activities story_separator_special_tag roman ; font-size:10pt ; font-weight : normal ; font-style : normal ; text-transform : none ; font-variant : normal ; `` > as of december 31 , 2020 , we had term loan borrowings of $ 248.3 million , net of deferred issuance costs , under the successor credit agreement , and we were in compliance with its restrictive financial covenants . amended credit agreement in february 2021 , we also amended and restated the successor credit agreement and entered into the amended credit agreement , which establishes a $ 125.0 million senior secured revolving credit facility in favor of hawk parent . we currently expect that we will remain in compliance with the restrictive financial covenants of the amended credit agreement , prospectively . contractual obligations the following table summarizes our contractual obligations and commitments as of december 31 , 2020 related to processing minimums , operating leases , borrowings , and contingent consideration : replace_table_token_9_th 49 ( a ) certain of the agreements with third-party processors require us to submit a minimum monthly number of transactions for processing . if we submit a number of transactions that is lower than the minimum , we are required to pay to the processor the fees it would have received if we had submitted the required minimum number of transactions . ( b ) we estimated interest payments through the maturity of the revolving credit facility by applying the interest rate of 4.00 % in effect on our borrowings as of december 31 , 2020 , plus an unused fee rate of 0.50 % . ( c ) represents contingent consideration associated with the acquisitions of ventanex , cpayplus , and cps . potential payments under the tax receivable agreement are not reflected in this table . see the section entitled “ — tax receivable agreement ” below . tax receivable agreement upon the completion of the business combination , we entered into that certain tax receivable agreement ( the “ tax receivable agreement ” or “ tra ” ) with holders ( other than the company ) of limited liability company interests of hawk parent ( the “ post-merger repay units ” ) . as a result of the tra , we established a liability in our consolidated financial statements . such liability , which will increase upon the exchanges of post-merger repay

net cash provided by operating activities wa s $ 28.5 million for the year ended december 31 , 2020. net cash provided by operating activities was $ 12.9 million from july 11 , 2019 to december 31 , 2019. net cash provided by operating activities was $ 8.4 million from january 1 , 2019 to july 10 , 2019. net cash provided by operating activities was $ 24.2 million in the year ended december 31 , 2018. cash provided by operating activities for the year ended december 31 , 2020 , the period from july 11 , 2019 to december 31 , 2019 , the period from january 1 , 2019 to july 10 , 2019 , and the year ended december 31 , 2018 reflects net income as adjusted for non-cash operating items including depreciation and amortization , share-based compensation , and changes in working capital accounts . cash flow from investing activities net cash used in investing activities was $ 146.0 million for the year ended december 31 , 2020 , due to the acquisition of ventanex , cpayplus , and cps , as well as capitalization of software development activities . net cash used in investing activities was $ 335.1 million from july 11 , 2019 to december 31 , 2019 , due to the business combination , the acquisitions of trisource and aps , and capitalization of software development activities . net cash used in investing activities was $ 4.0 million from january 1 , 2019 to july 10 , 2019 due to capitalization of software development activities and fixed asset additions .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```net cash provided by operating activities wa s $ 28.5 million for the year ended december 31 , 2020. net cash provided by operating activities was $ 12.9 million from july 11 , 2019 to december 31 , 2019. net cash provided by operating activities was $ 8.4 million from january 1 , 2019 to july 10 , 2019. net cash provided by operating activities was $ 24.2 million in the year ended december 31 , 2018. cash provided by operating activities for the year ended december 31 , 2020 , the period from july 11 , 2019 to december 31 , 2019 , the period from january 1 , 2019 to july 10 , 2019 , and the year ended december 31 , 2018 reflects net income as adjusted for non-cash operating items including depreciation and amortization , share-based compensation , and changes in working capital accounts . cash flow from investing activities net cash used in investing activities was $ 146.0 million for the year ended december 31 , 2020 , due to the acquisition of ventanex , cpayplus , and cps , as well as capitalization of software development activities . net cash used in investing activities was $ 335.1 million from july 11 , 2019 to december 31 , 2019 , due to the business combination , the acquisitions of trisource and aps , and capitalization of software development activities . net cash used in investing activities was $ 4.0 million from january 1 , 2019 to july 10 , 2019 due to capitalization of software development activities and fixed asset additions . ``` Suspicious Activity Report : key factors affecting our business key factors that we believe impact our business , results of operations and financial condition include , but are not limited to , the following : ● the dollar amount volume and the number of transactions that are processed by the customers that we currently serve ; ● our ability to attract new merchants and onboard them as active processing customers ; ● our ability to ( i ) successfully integrate recent acquisitions and ( ii ) complete future acquisitions ; ● our ability to offer new and competitive payment technology solutions to our customers ; and ● general economic conditions and consumer finance trends . 39 acquisitions on february 10 , 2020 , we announced the acquisition of ventanex for up to $ 50.0 million , which includes a $ 14.0 million performance-based earnout . the closing of the acquisition was financed with a combination of cash on hand and new borrowings under our existing credit facility . see note 5 to the audited consolidated financial statements included elsewhere in this annual report on form 10-k. on july 23 , 2020 , we announced the acquisition of cpayplus for up to $ 16.0 million , which includes a $ 8.0 million performance-based earnout . the closing of the acquisition was financed with cash on hand . see note 5 to the audited consolidated financial statements included elsewhere in this annual report on form 10-k. on october 27 , 2020 , we announced the acquisition of cps for up to $ 93 million , which includes up to $ 15 million in performance-based earnouts . the acquisition closed on november 2 , 2020 and was financed with cash on hand . see note 5 to the audited consolidated financial statements included elsewhere in this annual report on form 10-k. key components of our revenues and expenses revenues revenue . as our customers process increased volumes of payments , our revenues increase as a result of the fees we charge for processing these payments . most of our revenues are derived from volume-based payment processing fees ( “ discount fees ” ) and other related fixed per transaction fees . discount fees represent a percentage of the dollar amount of each credit or debit transaction processed and include fees relating to processing and services that we provide . the transaction price for such processing services are determined , based on the judgment of the company 's management , considering factors such as margin objectives , pricing practices and controls , customer segment pricing strategies , the product life cycle and the observable price of the service charged to similarly situated customers . we believe our chargeback rate was less than 1 % of our card payment volume , during the years ended december 31 , 2020 , 2019 and 2018. as discussed in note 3 in the notes to the consolidated financial statements , repay adopted asc 606 on january 1 , 2019 , using the modified retrospective method and applying the standard to all contracts not completed on the date of adoption . results for the reporting period beginning january 1 , 2019 are presented under asc 606 , while the 2018 amounts continue to be reported in accordance with the company 's historical accounting practices under previous guidance . the primary impact to the company 's consolidated financial statements as a result of the adoption of asc 606 is a change in total net revenue attributable to the presentation of interchange , network and other fees on a net basis , driven by changes in principal and agent considerations , as compared to previously being presented on a gross basis . under the modified retrospective method , the company did not restate its 2018 consolidated financial statements for these effects . expenses interchange and network fees . interchange and network fees consist primarily of pass-through fees which generally increase in proportion to card payment volume increases . these include interchange fees , dues and assessments , and other pass-through costs . beginning january 1 , 2019 , as a result of the adoption of asc 606 , interchange and network fees are not presented as operating expenses , but as a reduction of revenue . other costs of services . other costs of services primarily include commissions to our software integration partners and other third-party processing costs , such as front and back-end processing costs and sponsor bank fees . selling , general and administrative . selling , general and administrative expenses include salaries , share-based compensation and other employment costs , professional service fees , rent and utilities , and other operating costs . depreciation and amortization . depreciation expense consists of depreciation on our investments in property , equipment and computer hardware . depreciation expense is recognized on a straight-line basis over the estimated useful life of the asset . amortization expense for software development costs and purchased software is recognized on the straight-line method over a three-year estimated useful life , over a ten-year estimated useful life for customer relationships and channel relationships , and a two-year estimated useful life for non-competition agreements . interest expense . prior to the closing of the business combination , interest expense consisted of interest in respect of our indebtedness under our predecessor credit agreement ( as defined below ) , which was terminated in connection with the 40 closing of the business combination . in periods after the closing of the business combination , interest expense consists of interest in respect of our indebtedness under the successor credit agreement ( as defined below ) , which was entered into in connection with the business combination and amended in february 2020 and november 2020 . change in fair value of tax receivable liability . this amount represents the change in fair value of the tax receivable agreement liability . story_separator_special_tag the increase in net income ( loss ) attributable to the company for the year ended december 31 , 2020 , is primarily the result of one-time expenses incurred in connection with the business combination . for discussion on adjusted ebitda , adjusted net income , and net income ( loss ) attributable to the company for the year ended december 31 , 2019 compared to the year ended december 31 , 2018 , see part ii , item 7 of the company 's 2019 form 10-k. seasonality we have experienced in the past , and may continue to experience , seasonal fluctuations in our volumes and revenues as a result of consumer spending patterns . volumes and revenues during the first quarter of the calendar year tend to increase in comparison to the remaining three quarters of the calendar year on a same store basis . this increase is due to consumers ' receipt of tax refunds and the increases in repayment activity levels that follow . operating expenses show less seasonal fluctuation , with the result that net income is subject to the similar seasonal factors as our volumes and revenues . liquidity and capital resources we have historically financed our operations and working capital through net cash from operating activities . we also finance our operations through proceeds from the issuance of our class a common stock in june 2020 and our january 2021 convertible notes offering . as of december 31 , 2020 , we had $ 92.6 million of cash and cash equivalents and available borrowing capacity of $ 75.6 million under the successor credit agreement . this balance does not include restricted cash , which reflects cash accounts holding reserves for potential losses and customer settlement funds of $ 13.9 million as of december 31 , 2020. in february 2021 , we used a portion of the proceeds from the january 2021 convertible notes offering to prepay in full the entire principal amount of the term loans then outstanding under the successor credit agreement and also terminated in full all delayed draw term loan commitments then outstanding . at that time , we also amended and restated the successor credit agreement and entered into the amended credit agreement , which establishes a $ 125.0 million senior secured revolving credit facility in favor of hawk parent . our primary cash needs are to fund working capital requirements , invest in technology development , fund acquisitions and related contingent consideration , make scheduled principal payments and interest payments on our outstanding indebtedness and pay tax distributions to members of hawk parent . we expect that our cash flow from 47 operations , current cash and cash equivalents and available borrowing capacity under the amended credit agreement will be sufficient to fund our operations and planned capital expenditures and to service our debt obligations for the next twelve months . we are a holding company with no operations and depend on our subsidiaries for cash to fund all of our consolidated operations , including future dividend payments , if any . we depend on the payment of distributions by our current subsidiaries , including hawk parent , which distributions may be restricted by law or contractual agreements , including agreements governing their indebtedness . for a discussion of those considerations and restrictions , refer to part ii , item 1a `` risk factors - risks related to our class a common stock . `` cash flows the following table present a summary of cash flows from operating , investing and financing activities for the periods indicated : replace_table_token_8_th cash flow from operating activities story_separator_special_tag roman ; font-size:10pt ; font-weight : normal ; font-style : normal ; text-transform : none ; font-variant : normal ; `` > as of december 31 , 2020 , we had term loan borrowings of $ 248.3 million , net of deferred issuance costs , under the successor credit agreement , and we were in compliance with its restrictive financial covenants . amended credit agreement in february 2021 , we also amended and restated the successor credit agreement and entered into the amended credit agreement , which establishes a $ 125.0 million senior secured revolving credit facility in favor of hawk parent . we currently expect that we will remain in compliance with the restrictive financial covenants of the amended credit agreement , prospectively . contractual obligations the following table summarizes our contractual obligations and commitments as of december 31 , 2020 related to processing minimums , operating leases , borrowings , and contingent consideration : replace_table_token_9_th 49 ( a ) certain of the agreements with third-party processors require us to submit a minimum monthly number of transactions for processing . if we submit a number of transactions that is lower than the minimum , we are required to pay to the processor the fees it would have received if we had submitted the required minimum number of transactions . ( b ) we estimated interest payments through the maturity of the revolving credit facility by applying the interest rate of 4.00 % in effect on our borrowings as of december 31 , 2020 , plus an unused fee rate of 0.50 % . ( c ) represents contingent consideration associated with the acquisitions of ventanex , cpayplus , and cps . potential payments under the tax receivable agreement are not reflected in this table . see the section entitled “ — tax receivable agreement ” below . tax receivable agreement upon the completion of the business combination , we entered into that certain tax receivable agreement ( the “ tax receivable agreement ” or “ tra ” ) with holders ( other than the company ) of limited liability company interests of hawk parent ( the “ post-merger repay units ” ) . as a result of the tra , we established a liability in our consolidated financial statements . such liability , which will increase upon the exchanges of post-merger repay

the closing , which is subject to customary conditions and regulatory approval , is expected to occur late in the first quarter or early in the second quarter of 2016. our revenue was $ 8.020 billion in 2015 , approximately 45 % of which was generated internationally . our global designer lifestyle brands , tommy hilfiger and calvin klein , together generated over 75 % of our revenue . results of operations operations overview we generate net sales from ( i ) the wholesale distribution to retailers , franchisees , licensees and distributors of dress shirts , neckwear , sportswear , jeanswear , underwear , intimate apparel , swim products , handbags , footwear , accessories and other related products under owned and licensed trademarks , and ( ii ) the sale through ( a ) approximately 1,450 company-operated free-standing retail store locations worldwide under our calvin klein , tommy hilfiger and van heusen trademarks , ( b ) approximately 1,100 company-operated concessions/shop-in-shops worldwide under our calvin klein and tommy hilfiger trademarks , and ( c ) e-commerce sites in certain countries under our calvin klein and tommy hilfiger trademarks , of apparel , footwear , accessories and other products , and swimwear and related products in north america through our speedo e-commerce site . we also operated izod retail stores through the end of the third quarter of 2015 , at which time we completed the exit from the business , and g.h . bass & co . stores through the end of the third quarter of 2013 , at which time we sold 30 substantially all of the assets of our bass business . additionally , we generate royalty , advertising and other revenue from fees for licensing the use of our trademarks . we recorded pre-tax charges principally in connection with the warnaco acquisition , integration and related restructuring that totaled $ 73 million , $ 146 million and $ 471 million during 2015 , 2014 and 2013 , respectively . the amounts incurred in 2013 included noncash charges of approximately $ 175 million , principally related to valuation adjustments and amortization of short-lived assets . we also recorded pre-tax debt modification and extinguishment charges in 2014 and 2013 that totaled $ 93 million and $ 40 million , respectively . we recorded a net gain of $ 8 million in 2014 resulting from the deconsolidation of certain calvin klein subsidiaries in australia and new zealand and our previously consolidated calvin klein joint venture in india ( please see note 6 , “ investments in unconsolidated affiliates ” and note 7 , “ redeemable non-controlling interest ” in the notes to consolidated financial statements included in item 8 of this report for further discussion ) . we have implemented initiatives to rationalize the heritage brands business , including the exit from our izod retail business ( completed in the third quarter of 2015 ) and the discontinuation of several licensed product lines in the dress furnishings business . we recorded pre-tax charges of $ 10 million in 2015 and $ 21 million in 2014 , including $ 18 million of noncash impairment charges , in connection with the operation of and exit from our izod retail business . we recorded pre-tax charges of $ 17 million in 2015 principally in connection with the discontinuation of several licensed product lines in the dress furnishings business . we recorded pre-tax charges of $ 3 million in the fourth quarter of 2015 in connection with licensing to g-iii the tommy hilfiger womenswear wholesale business in the united states and canada . we expect to incur additional pre-tax charges of approximately $ 25 million during 2016 in connection with the warnaco integration and related restructuring , the discontinuation of several licensed product lines in the dress furnishings business and licensing to g-iii the tommy hilfiger womenswear wholesale business in the united states and canada . on november 4 , 2013 , we sold substantially all of the assets of our bass business and recorded a net pre-tax loss of $ 20 million during 2013 in connection with the sale . please see the section entitled “ sale of bass ” within “ liquidity and capital resources ” below for a further discussion . our calvin klein and tommy hilfiger businesses each have substantial international components that expose us to significant foreign exchange risk . amounts recorded in local foreign currencies are translated back to united states dollars using an average exchange rate over the representative period . our international revenue and earnings are unfavorably impacted during times of a strengthening united states dollar against the currencies in which we generate significant revenue and earnings and favorably impacted during times of a weakening united states dollar against those currencies . additionally , there is a transaction impact on our financial results because goods are often purchased in united states dollars by foreign subsidiaries . as with translation , during times of a strengthening united states dollar , our results of operations will be negatively impacted by these transactions as the increased local currency value of inventory results in a higher local currency cost of goods when the goods are sold . the united states dollar has strengthened for more than a year against most major foreign currencies , particularly the euro , which is the foreign currency in which we transact the most business . in 2015 , approximately 45 % of our revenue was subject to foreign currency translation , the majority of which relates to our operations in europe , resulting in a negative impact on our 2015 results of operations . we currently expect the strength of the united states dollar and resulting unfavorable impact on our revenue and earnings to continue into 2016. retail comparable store sales discussed below refer to sales for retail stores that have been open for at least 12 months . story_separator_special_tag other income in connection with the acquisition of the interests in th asia that we do not already own , we expect to record in 2016 a significant noncash gain to write-up our equity investment in the joint venture to fair market value immediately preceding the acquisition closing . the closing is expected to occur late in the first quarter or early in the second quarter of 2016. debt modification and extinguishment costs we incurred costs totaling $ 93 million in 2014 in connection with the amendment and restatement of our senior secured credit facilities entered into in 2013 and the related redemption of our 7 3/8 % senior notes due 2020. please see the section entitled “ liquidity and capital resources ” below for a further discussion . we incurred costs totaling $ 40 million in 2013 related to the modification and extinguishment of previously outstanding term loans and the replacement of such term loans with the senior secured credit facilities entered into in 2013 in connection with the warnaco acquisition . please see the section entitled “ liquidity and capital resources ” below for further discussion . equity in net income of unconsolidated affiliates the equity in net income of unconsolidated affiliates during 2015 was $ 17 million , as compared to $ 10 million during 2014 and $ 8 million during 2013. these amounts relate to our share of income from our joint ventures for the tommy hilfiger brand in china , india and brazil , for the calvin klein brand in india , for the tommy hilfiger , calvin klein and van heusen brands in australia and for the karl lagerfeld brand . our investments in these joint ventures are being accounted for under the equity method of accounting . please see the section entitled “ investments in unconsolidated affiliates ” within “ liquidity and capital resources ” below for a further discussion . the equity in net income of unconsolidated affiliates in 2015 includes a one- 35 time gain of $ 2 million on our equity investment in kingdom holding 1 b.v. , the parent company of the karl lagerfeld brand , ( “ karl lagerfeld ” ) . interest expense , net net interest expense decreased to $ 113 million in 2015 from $ 139 million in 2014 due to lower average debt balances and the effect of the amendment and restatement of our senior secured credit facilities and the related redemption of our 7 3/8 % senior notes due 2020 in the first quarter of 2014. please see the section entitled “ financing arrangements ” within “ liquidity and capital resources ” below for a further discussion . net interest expense decreased to $ 139 million in 2014 from $ 185 million in 2013 due to lower average debt balances and interest rates as compared to the prior year , combined with the effect of the amendment and restatement of our senior secured credit facilities and the related redemption of our 7 3/8 % senior notes due 2020 in the first quarter of 2014. please see the section entitled “ financing arrangements ” within “ liquidity and capital resources ” below for a further discussion . net interest expense in 2016 is currently expected to increase to approximately $ 120 million to $ 125 million from $ 113 million in 2015 , primarily due to the negative impact of the interest rate swap that commenced on february 17 , 2016 to convert a portion of our variable rate debt under our term loans to fixed rate debt , partially offset by a decrease to net interest expense as a result of 2016 debt repayments , which are anticipated to be made at a similar level to 2015 , and the full year impact of repayments made in 2015. income taxes income tax expense was as follows : replace_table_token_4_th the effective income tax rate for 2015 was 11.6 % compared with ( 12.1 ) % in 2014 and 56.4 % in 2013. the volatility in our effective income tax rate in the last three years is due in large part to adjustments to our liabilities for uncertain tax positions . the effective income tax rate for 2015 was lower than the united states statutory rate principally due to the benefit of lower tax rates in certain international jurisdictions where we file tax returns and the benefits primarily related to the favorable resolution of uncertain tax positions and the impact of recently enacted tax law and tax rate changes on deferred taxes , as well as the expiration of the statute of limitations related to other uncertain tax positions . the effective income tax rate in 2014 was a benefit to income principally due to the effects of lower tax rates in international jurisdictions where we file tax returns , and a reduction of $ 94 million in our estimate for uncertain tax positions , which provided a 24 % benefit to our tax rate . this benefit resulted from the favorable resolutions of uncertain tax positions in certain international jurisdictions , as well as the expiration of the statute of limitations related to other uncertain tax positions . the effective income tax rate in 2013 was higher than the united states statutory tax rate principally due to the recognition of $ 145 million of tax expense related to changes in estimates for uncertain tax positions , which increased the 2013 effective tax rate by 44 % . the majority of this expense related to an increase to our previously established liability for an uncertain tax position related to european and united states transfer pricing arrangements . also contributing to the higher tax rate in 2013 was an expense related to valuation allowances recorded on deferred tax assets from our business in japan , and also on certain domestic state and local deferred tax assets . partially offsetting these increases was the impact of warnaco integration and restructuring expenses in 2013 , the majority of

cash flow summary cash and cash equivalents at january 31 , 2016 was $ 556 million , an increase of $ 77 million from the amount at february 1 , 2015 of $ 479 million . the change in cash and cash equivalents during 2015 included the impact of $ 350 million of debt payments and $ 126 million of stock repurchases . cash flow in 2016 will be impacted by various factors in addition to those noted below in this “ liquidity and capital resources ” section , including the amount of debt repayments and stock repurchases we make in 2016. as of january 31 , 2016 , approximately $ 450 million of cash and cash equivalents was held by international subsidiaries whose undistributed earnings are considered permanently reinvested . our intent is to continue to reinvest these funds in international operations . if management decides at a later date to repatriate these funds to the united states , we would be required to pay taxes on these amounts based on applicable united states tax rates , net of foreign taxes already paid . operations cash provided by operating activities was $ 900 million in 2015 as compared with $ 789 million in 2014. the increase in cash provided by operating activities as compared to the prior year was primarily driven by 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. ```cash flow summary cash and cash equivalents at january 31 , 2016 was $ 556 million , an increase of $ 77 million from the amount at february 1 , 2015 of $ 479 million . the change in cash and cash equivalents during 2015 included the impact of $ 350 million of debt payments and $ 126 million of stock repurchases . cash flow in 2016 will be impacted by various factors in addition to those noted below in this “ liquidity and capital resources ” section , including the amount of debt repayments and stock repurchases we make in 2016. as of january 31 , 2016 , approximately $ 450 million of cash and cash equivalents was held by international subsidiaries whose undistributed earnings are considered permanently reinvested . our intent is to continue to reinvest these funds in international operations . if management decides at a later date to repatriate these funds to the united states , we would be required to pay taxes on these amounts based on applicable united states tax rates , net of foreign taxes already paid . operations cash provided by operating activities was $ 900 million in 2015 as compared with $ 789 million in 2014. the increase in cash provided by operating activities as compared to the prior year was primarily driven by changes in working capital . ``` Suspicious Activity Report : the closing , which is subject to customary conditions and regulatory approval , is expected to occur late in the first quarter or early in the second quarter of 2016. our revenue was $ 8.020 billion in 2015 , approximately 45 % of which was generated internationally . our global designer lifestyle brands , tommy hilfiger and calvin klein , together generated over 75 % of our revenue . results of operations operations overview we generate net sales from ( i ) the wholesale distribution to retailers , franchisees , licensees and distributors of dress shirts , neckwear , sportswear , jeanswear , underwear , intimate apparel , swim products , handbags , footwear , accessories and other related products under owned and licensed trademarks , and ( ii ) the sale through ( a ) approximately 1,450 company-operated free-standing retail store locations worldwide under our calvin klein , tommy hilfiger and van heusen trademarks , ( b ) approximately 1,100 company-operated concessions/shop-in-shops worldwide under our calvin klein and tommy hilfiger trademarks , and ( c ) e-commerce sites in certain countries under our calvin klein and tommy hilfiger trademarks , of apparel , footwear , accessories and other products , and swimwear and related products in north america through our speedo e-commerce site . we also operated izod retail stores through the end of the third quarter of 2015 , at which time we completed the exit from the business , and g.h . bass & co . stores through the end of the third quarter of 2013 , at which time we sold 30 substantially all of the assets of our bass business . additionally , we generate royalty , advertising and other revenue from fees for licensing the use of our trademarks . we recorded pre-tax charges principally in connection with the warnaco acquisition , integration and related restructuring that totaled $ 73 million , $ 146 million and $ 471 million during 2015 , 2014 and 2013 , respectively . the amounts incurred in 2013 included noncash charges of approximately $ 175 million , principally related to valuation adjustments and amortization of short-lived assets . we also recorded pre-tax debt modification and extinguishment charges in 2014 and 2013 that totaled $ 93 million and $ 40 million , respectively . we recorded a net gain of $ 8 million in 2014 resulting from the deconsolidation of certain calvin klein subsidiaries in australia and new zealand and our previously consolidated calvin klein joint venture in india ( please see note 6 , “ investments in unconsolidated affiliates ” and note 7 , “ redeemable non-controlling interest ” in the notes to consolidated financial statements included in item 8 of this report for further discussion ) . we have implemented initiatives to rationalize the heritage brands business , including the exit from our izod retail business ( completed in the third quarter of 2015 ) and the discontinuation of several licensed product lines in the dress furnishings business . we recorded pre-tax charges of $ 10 million in 2015 and $ 21 million in 2014 , including $ 18 million of noncash impairment charges , in connection with the operation of and exit from our izod retail business . we recorded pre-tax charges of $ 17 million in 2015 principally in connection with the discontinuation of several licensed product lines in the dress furnishings business . we recorded pre-tax charges of $ 3 million in the fourth quarter of 2015 in connection with licensing to g-iii the tommy hilfiger womenswear wholesale business in the united states and canada . we expect to incur additional pre-tax charges of approximately $ 25 million during 2016 in connection with the warnaco integration and related restructuring , the discontinuation of several licensed product lines in the dress furnishings business and licensing to g-iii the tommy hilfiger womenswear wholesale business in the united states and canada . on november 4 , 2013 , we sold substantially all of the assets of our bass business and recorded a net pre-tax loss of $ 20 million during 2013 in connection with the sale . please see the section entitled “ sale of bass ” within “ liquidity and capital resources ” below for a further discussion . our calvin klein and tommy hilfiger businesses each have substantial international components that expose us to significant foreign exchange risk . amounts recorded in local foreign currencies are translated back to united states dollars using an average exchange rate over the representative period . our international revenue and earnings are unfavorably impacted during times of a strengthening united states dollar against the currencies in which we generate significant revenue and earnings and favorably impacted during times of a weakening united states dollar against those currencies . additionally , there is a transaction impact on our financial results because goods are often purchased in united states dollars by foreign subsidiaries . as with translation , during times of a strengthening united states dollar , our results of operations will be negatively impacted by these transactions as the increased local currency value of inventory results in a higher local currency cost of goods when the goods are sold . the united states dollar has strengthened for more than a year against most major foreign currencies , particularly the euro , which is the foreign currency in which we transact the most business . in 2015 , approximately 45 % of our revenue was subject to foreign currency translation , the majority of which relates to our operations in europe , resulting in a negative impact on our 2015 results of operations . we currently expect the strength of the united states dollar and resulting unfavorable impact on our revenue and earnings to continue into 2016. retail comparable store sales discussed below refer to sales for retail stores that have been open for at least 12 months . story_separator_special_tag other income in connection with the acquisition of the interests in th asia that we do not already own , we expect to record in 2016 a significant noncash gain to write-up our equity investment in the joint venture to fair market value immediately preceding the acquisition closing . the closing is expected to occur late in the first quarter or early in the second quarter of 2016. debt modification and extinguishment costs we incurred costs totaling $ 93 million in 2014 in connection with the amendment and restatement of our senior secured credit facilities entered into in 2013 and the related redemption of our 7 3/8 % senior notes due 2020. please see the section entitled “ liquidity and capital resources ” below for a further discussion . we incurred costs totaling $ 40 million in 2013 related to the modification and extinguishment of previously outstanding term loans and the replacement of such term loans with the senior secured credit facilities entered into in 2013 in connection with the warnaco acquisition . please see the section entitled “ liquidity and capital resources ” below for further discussion . equity in net income of unconsolidated affiliates the equity in net income of unconsolidated affiliates during 2015 was $ 17 million , as compared to $ 10 million during 2014 and $ 8 million during 2013. these amounts relate to our share of income from our joint ventures for the tommy hilfiger brand in china , india and brazil , for the calvin klein brand in india , for the tommy hilfiger , calvin klein and van heusen brands in australia and for the karl lagerfeld brand . our investments in these joint ventures are being accounted for under the equity method of accounting . please see the section entitled “ investments in unconsolidated affiliates ” within “ liquidity and capital resources ” below for a further discussion . the equity in net income of unconsolidated affiliates in 2015 includes a one- 35 time gain of $ 2 million on our equity investment in kingdom holding 1 b.v. , the parent company of the karl lagerfeld brand , ( “ karl lagerfeld ” ) . interest expense , net net interest expense decreased to $ 113 million in 2015 from $ 139 million in 2014 due to lower average debt balances and the effect of the amendment and restatement of our senior secured credit facilities and the related redemption of our 7 3/8 % senior notes due 2020 in the first quarter of 2014. please see the section entitled “ financing arrangements ” within “ liquidity and capital resources ” below for a further discussion . net interest expense decreased to $ 139 million in 2014 from $ 185 million in 2013 due to lower average debt balances and interest rates as compared to the prior year , combined with the effect of the amendment and restatement of our senior secured credit facilities and the related redemption of our 7 3/8 % senior notes due 2020 in the first quarter of 2014. please see the section entitled “ financing arrangements ” within “ liquidity and capital resources ” below for a further discussion . net interest expense in 2016 is currently expected to increase to approximately $ 120 million to $ 125 million from $ 113 million in 2015 , primarily due to the negative impact of the interest rate swap that commenced on february 17 , 2016 to convert a portion of our variable rate debt under our term loans to fixed rate debt , partially offset by a decrease to net interest expense as a result of 2016 debt repayments , which are anticipated to be made at a similar level to 2015 , and the full year impact of repayments made in 2015. income taxes income tax expense was as follows : replace_table_token_4_th the effective income tax rate for 2015 was 11.6 % compared with ( 12.1 ) % in 2014 and 56.4 % in 2013. the volatility in our effective income tax rate in the last three years is due in large part to adjustments to our liabilities for uncertain tax positions . the effective income tax rate for 2015 was lower than the united states statutory rate principally due to the benefit of lower tax rates in certain international jurisdictions where we file tax returns and the benefits primarily related to the favorable resolution of uncertain tax positions and the impact of recently enacted tax law and tax rate changes on deferred taxes , as well as the expiration of the statute of limitations related to other uncertain tax positions . the effective income tax rate in 2014 was a benefit to income principally due to the effects of lower tax rates in international jurisdictions where we file tax returns , and a reduction of $ 94 million in our estimate for uncertain tax positions , which provided a 24 % benefit to our tax rate . this benefit resulted from the favorable resolutions of uncertain tax positions in certain international jurisdictions , as well as the expiration of the statute of limitations related to other uncertain tax positions . the effective income tax rate in 2013 was higher than the united states statutory tax rate principally due to the recognition of $ 145 million of tax expense related to changes in estimates for uncertain tax positions , which increased the 2013 effective tax rate by 44 % . the majority of this expense related to an increase to our previously established liability for an uncertain tax position related to european and united states transfer pricing arrangements . also contributing to the higher tax rate in 2013 was an expense related to valuation allowances recorded on deferred tax assets from our business in japan , and also on certain domestic state and local deferred tax assets . partially offsetting these increases was the impact of warnaco integration and restructuring expenses in 2013 , the majority of

should oxycyte successfully progress in clinical testing and it appears regulatory approval for one or more medical uses is likely , either in the united states or in another country , we will evaluate our options for commercializing the product . these options include licensing oxycyte to a third party for manufacture and distribution , manufacturing oxycyte ourselves for distribution through third party distributors , manufacturing and selling the product ourselves , or establishing some other form of strategic relationship for making and distributing oxycyte with a participant in the pharmaceutical industry . we are currently investigating and evaluating all options . 20 dermacyte the dermacyte line of topical cosmetic products employs our patented pfc technology and other known cosmetic ingredients to promote the appearance of skin health and other desirable cosmetic benefits . dermacyte is designed to provide a moist and oxygen-rich environment for the skin when it is applied topically , even in small amounts . dermacyte concentrate has been formulated as a cosmetic in our lab and dermacyte eye complex was created by a contract formulator , with the patent held by oxygen biotherapeutics . both formulas have passed all safety and toxicity tests , and we have filed a cpis with the fda . the market for oxygen-carrying cosmetics includes anti-aging , anti-wrinkle , skin abrasions and minor skin defects . in september 2009 , we started production of our first commercial product under our topical cosmetic line , dermacyte concentrate . we produced and sold a limited pre-production batch in november 2009 as a market acceptance test . the product was sold in packs of 8 doses of 0.4ml . based on the test market results we identified specific market opportunities for this product and reformulated dermacyte concentrate for better product stability . marketing and shipments of the new dermacyte concentrate formulation began in april 2010. we have also developed a 10ml pump package for dermacyte concentrate that should be available for market this summer . we worked with a contract formulator in california to develop the dermacyte eye complex which contains pfc technology as well as other ingredients beneficial to the healthy appearance of the skin around the eyes . we anticipate that both formulations should be ready for sale by the second quarter of fiscal 2011. we market and sell these products through www.buydermacyte.com and to dermatologists and medical spas with a combination of in-house sales and exclusive distributors . we have hired a sales manager based in new york , and we intend to add sales people in other major urban areas like los angeles and miami . we have entered into an agreement with a sales representative for the territories of arizona and michigan , and we intend to add more territories with agents or distributors . additional potential topical applications of our pfc technology that are under development include : dermacyte moisturizing lotion : an evolution of the dermacyte line that will contain spf to protect the skin from uv-rays while beautifying . rosacyte : incorporates perfluorocarbon technology to be used as a healing gel against rosacea . acnecyte : incorporates perfluorocarbon technology to be used as a healing gel against acne . wundecyte our wound product , wundecyte , is a novel gel developed under a contract agreement with a lab in virginia . wundecyte is designed to be used as a wound-healing gel . in july 2009 , we filed a 510k medical device application for wundecyte with the fda . several oxygen-producing and oxygen-carrying devices were cited as predicate devices . the fda response was that the application likely would be classified as a combination device . the drug component of the combination device will require extensive preclinical and clinical studies to be conducted prior to potential commercialization of the product . we have also developed an oxygen-generating bandage that can be combined with wundecyte gel . wundecyte gel and the oxygen-generating bandage both entered preclinical testing in our first quarter of fiscal 2011. the studies will look at factors such as time to wound closure and reduction in scar tissue formation as compared to a control group . preliminary results are expected later this year . our current product development plan is for wundecyte to emerge into more complex wound-healing indications , also in combination with oxygen-producing technologies based on hydrogen peroxide . additionally , we are developing preclinical research protocols for the treatment of burns and other topical indication based on our pfc . we intend to develop additional clinical research protocols for topical indications , including the treatment of acne and rosacea . however , we can provide no assurance that the topical indications we have under development will prove their claims and be successful commercial products . results of operations – comparison of years ended april 30 , 2010 and 2009 replace_table_token_2_th 21 research and development expenses research and development expenses include , but are not limited to , ( i ) expenses incurred under agreements with contract research organizations , or cros , and investigative sites , which conduct our clinical trials and a substantial portion of our pre-clinical studies ; ( ii ) the cost of manufacturing and supplying clinical trial materials ; ( iii ) payments to contract service organizations , as well as consultants ; ( iv ) employee-related expenses , which include salaries and benefits ; and ( v ) facilities , depreciation and other allocated expenses , which include direct and allocated expenses for rent and maintenance of facilities and equipment , depreciation of leasehold improvements and equipment and laboratory and other supplies . all research and development expenses are expensed as incurred . the increase in research and development expenses for the year ended april 30 , 2010 was driven primarily by costs incurred for the development of dermacyte formulations and the costs associated with the phase ii-b clinical trials for oxycyte . story_separator_special_tag depreciation and amortization are computed using the straight-line method over the following estimated useful lives : laboratory equipment 3-5 years office furniture and fixtures 7 years computer equipment and software 3 years leasehold improvements shorter of useful life or remaining lease term maintenance and repairs are charged to expense as incurred , improvements to leased facilities and equipment are capitalized . income taxes —deferred tax assets and liabilities are recorded for differences between the financial statement and tax bases of the assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income . valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized . income tax expense is recorded for the amount of income tax payable or refundable for the period increased or decreased by the change in deferred tax assets and liabilities during the period . stock-based compensation— effective may 1 , 2005 , we adopted asc 718 compensation — stock compensation , using the prospective transition method , which requires the measurement and recognition of compensation expense for all stock-based payment awards granted , modified and settled to our employees and directors after may 1 , 2005. our financial statements reflect the impact of asc 718. we chose the “straight-line” attribution method for allocating compensation costs and recognized the fair value of each stock option on a straight-line basis over the requisite service period . we account for equity instruments issued to non-employees in accordance with asc 505-50 accounting for equity instruments that are issued to other than employees for acquiring , or in conjunction with selling , goods or services . equity instruments issued to non-employees are recorded at their fair value on the measurement date and are subject to periodic adjustment as the underlying equity instruments vest . loss per share —basic loss per share , which excludes antidilutive securities , is computed by dividing loss available to common shareholders by the weighted-average number of common shares outstanding for that particular period . in contrast , diluted loss per share considers the potential dilution that could occur from other equity instruments that would increase the total number of outstanding shares of common stock . such amounts include shares potentially issuable under outstanding options , warrants and convertible debentures . a reconciliation of the numerator and denominator used in the calculation of basic and diluted net loss per share follows . replace_table_token_4_th 26 the following outstanding options , convertible note shares and warrants were excluded from the computation of basic and diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect . replace_table_token_5_th operating leases— we maintain operating leases for our office and laboratory facilities . the lease agreements may include rent escalation clauses and tenant improvement allowances . we recognize scheduled rent increases on a straight-line basis over the lease term beginning with the date we take possession of the leased space . differences between rental expense and actual rental payments are recorded as deferred rent liabilities and are included in “other liabilities” on the consolidated balance sheets . fair value— on may 1 , 2008 , we adopted asc 820 fair value measurements , as it relates to financial assets and financial liabilities . our balance sheet includes the following financial instruments : cash and cash equivalents , short-term notes payable and convertible debentures . we consider the carrying amount of our cash and cash equivalents and short-term notes payable to approximate fair value due to the short-term nature of these instruments . it is not practicable for us to estimate the fair value of its convertible debentures as such estimates can not be made without incurring excessive costs . the significant terms of our convertible debentures are described in note d. at april 30 , 2010 and 2009 the debentures had a gross carrying value of $ 15,903 and $ 351,867 , respectively , with unamortized discounts totaling $ 5,725 and $ 124,152 , respectively . in addition to the above financial instruments , we maintain an investment in a start-up technology company , glucometrics , inc. the investment is recorded in other assets , at cost . this investment totaled $ 0 and $ 114,193 at april 30 , 2010 and 2009 , respectively . we review this investment quarterly , including historical and projected financial performance , expected cash needs and recent funding events . we recognize other-than-temporary impairments if the market value of the investment is below its cost basis for an extended period of time or if the issuer has experienced significant financial declines or difficulties in raising capital to continue operations . we recorded an other-than-temporary impairment of $ 114,193 in the fourth quarter of 2010. see note d for additional details . recent accounting pronouncements in september 2009 , the financial accounting standards board , or fasb ratified revenue arrangements with multiple deliverables issued as accounting standards update , or asu , 2009-13. asu 2009-13 updates the existing multiple-element arrangements guidance currently included in asc 605-25 , revenue recognition — multiple-element arrangements . the revised guidance provides for two significant changes to the existing multiple-element arrangements guidance . the first relates to the determination of when the individual deliverables included in a multiple-element arrangement may be treated as separate units of accounting . this change is significant as it will likely result in the requirement to separate more deliverables within an arrangement , ultimately leading to less revenue deferral . the second change modifies the manner in which the transaction consideration is allocated across the separately identifiable deliverables . these changes are likely to result in earlier recognition of revenue for multiple-element arrangements than under previous guidance . asu 2009-13 also significantly expands the disclosures required for multiple-element revenue arrangements . the revised multiple-element arrangements guidance will be

liquidity oxygen biotherapeutics has financed its operations since september 1990 through the issuance of debt and equity securities and loans from stockholders . as of april 30 , 2010 , we had $ 2,184,826 of total current assets and working capital of $ 785,483. our practice is to invest excess cash , where available , in short-term money market investment instruments . 23 we are in the preclinical and clinical trial stages in the development of our products . for example , we are currently conducting phase ii-b clinical trials for the use of oxycyte in the treatment of severe traumatic brain injury . even if we are successful with our phase ii-b study , we must then conduct a phase iii clinical study and , if that is successful , file with the fda and obtain approval of a biologics license application to begin commercial distribution , all of which will take more time and funding to complete . our other products must undergo further development and testing prior to submission to the fda for approval to initiate clinical trials , which also requires additional funding . management is actively pursuing private and institutional financing , as well as strategic alliances and or joint venture agreements to obtain the necessary additional financing and reduce the cost burden related to the development and commercialization of our products though we can give no assurance that any such initiative will be successful . we expect our primary focus will be on funding the continued testing of oxycyte , since this product is the furthest along in the regulatory review process . our ability to continue to pursue testing and development of our products beyond 2010 depends on obtaining license income or outside financial resources . there is no assurance that we will obtain any license agreement or outside financing or that we will otherwise succeed in obtaining the necessary resources .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 oxygen biotherapeutics has financed its operations since september 1990 through the issuance of debt and equity securities and loans from stockholders . as of april 30 , 2010 , we had $ 2,184,826 of total current assets and working capital of $ 785,483. our practice is to invest excess cash , where available , in short-term money market investment instruments . 23 we are in the preclinical and clinical trial stages in the development of our products . for example , we are currently conducting phase ii-b clinical trials for the use of oxycyte in the treatment of severe traumatic brain injury . even if we are successful with our phase ii-b study , we must then conduct a phase iii clinical study and , if that is successful , file with the fda and obtain approval of a biologics license application to begin commercial distribution , all of which will take more time and funding to complete . our other products must undergo further development and testing prior to submission to the fda for approval to initiate clinical trials , which also requires additional funding . management is actively pursuing private and institutional financing , as well as strategic alliances and or joint venture agreements to obtain the necessary additional financing and reduce the cost burden related to the development and commercialization of our products though we can give no assurance that any such initiative will be successful . we expect our primary focus will be on funding the continued testing of oxycyte , since this product is the furthest along in the regulatory review process . our ability to continue to pursue testing and development of our products beyond 2010 depends on obtaining license income or outside financial resources . there is no assurance that we will obtain any license agreement or outside financing or that we will otherwise succeed in obtaining the necessary resources . ``` Suspicious Activity Report : should oxycyte successfully progress in clinical testing and it appears regulatory approval for one or more medical uses is likely , either in the united states or in another country , we will evaluate our options for commercializing the product . these options include licensing oxycyte to a third party for manufacture and distribution , manufacturing oxycyte ourselves for distribution through third party distributors , manufacturing and selling the product ourselves , or establishing some other form of strategic relationship for making and distributing oxycyte with a participant in the pharmaceutical industry . we are currently investigating and evaluating all options . 20 dermacyte the dermacyte line of topical cosmetic products employs our patented pfc technology and other known cosmetic ingredients to promote the appearance of skin health and other desirable cosmetic benefits . dermacyte is designed to provide a moist and oxygen-rich environment for the skin when it is applied topically , even in small amounts . dermacyte concentrate has been formulated as a cosmetic in our lab and dermacyte eye complex was created by a contract formulator , with the patent held by oxygen biotherapeutics . both formulas have passed all safety and toxicity tests , and we have filed a cpis with the fda . the market for oxygen-carrying cosmetics includes anti-aging , anti-wrinkle , skin abrasions and minor skin defects . in september 2009 , we started production of our first commercial product under our topical cosmetic line , dermacyte concentrate . we produced and sold a limited pre-production batch in november 2009 as a market acceptance test . the product was sold in packs of 8 doses of 0.4ml . based on the test market results we identified specific market opportunities for this product and reformulated dermacyte concentrate for better product stability . marketing and shipments of the new dermacyte concentrate formulation began in april 2010. we have also developed a 10ml pump package for dermacyte concentrate that should be available for market this summer . we worked with a contract formulator in california to develop the dermacyte eye complex which contains pfc technology as well as other ingredients beneficial to the healthy appearance of the skin around the eyes . we anticipate that both formulations should be ready for sale by the second quarter of fiscal 2011. we market and sell these products through www.buydermacyte.com and to dermatologists and medical spas with a combination of in-house sales and exclusive distributors . we have hired a sales manager based in new york , and we intend to add sales people in other major urban areas like los angeles and miami . we have entered into an agreement with a sales representative for the territories of arizona and michigan , and we intend to add more territories with agents or distributors . additional potential topical applications of our pfc technology that are under development include : dermacyte moisturizing lotion : an evolution of the dermacyte line that will contain spf to protect the skin from uv-rays while beautifying . rosacyte : incorporates perfluorocarbon technology to be used as a healing gel against rosacea . acnecyte : incorporates perfluorocarbon technology to be used as a healing gel against acne . wundecyte our wound product , wundecyte , is a novel gel developed under a contract agreement with a lab in virginia . wundecyte is designed to be used as a wound-healing gel . in july 2009 , we filed a 510k medical device application for wundecyte with the fda . several oxygen-producing and oxygen-carrying devices were cited as predicate devices . the fda response was that the application likely would be classified as a combination device . the drug component of the combination device will require extensive preclinical and clinical studies to be conducted prior to potential commercialization of the product . we have also developed an oxygen-generating bandage that can be combined with wundecyte gel . wundecyte gel and the oxygen-generating bandage both entered preclinical testing in our first quarter of fiscal 2011. the studies will look at factors such as time to wound closure and reduction in scar tissue formation as compared to a control group . preliminary results are expected later this year . our current product development plan is for wundecyte to emerge into more complex wound-healing indications , also in combination with oxygen-producing technologies based on hydrogen peroxide . additionally , we are developing preclinical research protocols for the treatment of burns and other topical indication based on our pfc . we intend to develop additional clinical research protocols for topical indications , including the treatment of acne and rosacea . however , we can provide no assurance that the topical indications we have under development will prove their claims and be successful commercial products . results of operations – comparison of years ended april 30 , 2010 and 2009 replace_table_token_2_th 21 research and development expenses research and development expenses include , but are not limited to , ( i ) expenses incurred under agreements with contract research organizations , or cros , and investigative sites , which conduct our clinical trials and a substantial portion of our pre-clinical studies ; ( ii ) the cost of manufacturing and supplying clinical trial materials ; ( iii ) payments to contract service organizations , as well as consultants ; ( iv ) employee-related expenses , which include salaries and benefits ; and ( v ) facilities , depreciation and other allocated expenses , which include direct and allocated expenses for rent and maintenance of facilities and equipment , depreciation of leasehold improvements and equipment and laboratory and other supplies . all research and development expenses are expensed as incurred . the increase in research and development expenses for the year ended april 30 , 2010 was driven primarily by costs incurred for the development of dermacyte formulations and the costs associated with the phase ii-b clinical trials for oxycyte . story_separator_special_tag depreciation and amortization are computed using the straight-line method over the following estimated useful lives : laboratory equipment 3-5 years office furniture and fixtures 7 years computer equipment and software 3 years leasehold improvements shorter of useful life or remaining lease term maintenance and repairs are charged to expense as incurred , improvements to leased facilities and equipment are capitalized . income taxes —deferred tax assets and liabilities are recorded for differences between the financial statement and tax bases of the assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income . valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized . income tax expense is recorded for the amount of income tax payable or refundable for the period increased or decreased by the change in deferred tax assets and liabilities during the period . stock-based compensation— effective may 1 , 2005 , we adopted asc 718 compensation — stock compensation , using the prospective transition method , which requires the measurement and recognition of compensation expense for all stock-based payment awards granted , modified and settled to our employees and directors after may 1 , 2005. our financial statements reflect the impact of asc 718. we chose the “straight-line” attribution method for allocating compensation costs and recognized the fair value of each stock option on a straight-line basis over the requisite service period . we account for equity instruments issued to non-employees in accordance with asc 505-50 accounting for equity instruments that are issued to other than employees for acquiring , or in conjunction with selling , goods or services . equity instruments issued to non-employees are recorded at their fair value on the measurement date and are subject to periodic adjustment as the underlying equity instruments vest . loss per share —basic loss per share , which excludes antidilutive securities , is computed by dividing loss available to common shareholders by the weighted-average number of common shares outstanding for that particular period . in contrast , diluted loss per share considers the potential dilution that could occur from other equity instruments that would increase the total number of outstanding shares of common stock . such amounts include shares potentially issuable under outstanding options , warrants and convertible debentures . a reconciliation of the numerator and denominator used in the calculation of basic and diluted net loss per share follows . replace_table_token_4_th 26 the following outstanding options , convertible note shares and warrants were excluded from the computation of basic and diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect . replace_table_token_5_th operating leases— we maintain operating leases for our office and laboratory facilities . the lease agreements may include rent escalation clauses and tenant improvement allowances . we recognize scheduled rent increases on a straight-line basis over the lease term beginning with the date we take possession of the leased space . differences between rental expense and actual rental payments are recorded as deferred rent liabilities and are included in “other liabilities” on the consolidated balance sheets . fair value— on may 1 , 2008 , we adopted asc 820 fair value measurements , as it relates to financial assets and financial liabilities . our balance sheet includes the following financial instruments : cash and cash equivalents , short-term notes payable and convertible debentures . we consider the carrying amount of our cash and cash equivalents and short-term notes payable to approximate fair value due to the short-term nature of these instruments . it is not practicable for us to estimate the fair value of its convertible debentures as such estimates can not be made without incurring excessive costs . the significant terms of our convertible debentures are described in note d. at april 30 , 2010 and 2009 the debentures had a gross carrying value of $ 15,903 and $ 351,867 , respectively , with unamortized discounts totaling $ 5,725 and $ 124,152 , respectively . in addition to the above financial instruments , we maintain an investment in a start-up technology company , glucometrics , inc. the investment is recorded in other assets , at cost . this investment totaled $ 0 and $ 114,193 at april 30 , 2010 and 2009 , respectively . we review this investment quarterly , including historical and projected financial performance , expected cash needs and recent funding events . we recognize other-than-temporary impairments if the market value of the investment is below its cost basis for an extended period of time or if the issuer has experienced significant financial declines or difficulties in raising capital to continue operations . we recorded an other-than-temporary impairment of $ 114,193 in the fourth quarter of 2010. see note d for additional details . recent accounting pronouncements in september 2009 , the financial accounting standards board , or fasb ratified revenue arrangements with multiple deliverables issued as accounting standards update , or asu , 2009-13. asu 2009-13 updates the existing multiple-element arrangements guidance currently included in asc 605-25 , revenue recognition — multiple-element arrangements . the revised guidance provides for two significant changes to the existing multiple-element arrangements guidance . the first relates to the determination of when the individual deliverables included in a multiple-element arrangement may be treated as separate units of accounting . this change is significant as it will likely result in the requirement to separate more deliverables within an arrangement , ultimately leading to less revenue deferral . the second change modifies the manner in which the transaction consideration is allocated across the separately identifiable deliverables . these changes are likely to result in earlier recognition of revenue for multiple-element arrangements than under previous guidance . asu 2009-13 also significantly expands the disclosures required for multiple-element revenue arrangements . the revised multiple-element arrangements guidance will be

21 in february 2011 , the corporation completed the sale of its interests in certain natural gas producing assets located in the united kingdom north sea for cash proceeds of $ 359 million , after post-closing adjustments , resulting in a pre-tax gain of $ 343 million ( $ 310 million after income taxes ) . in august 2011 , the corporation completed the sale of its interests in the snorre field ( hess 1 % ) , offshore norway and the cook field ( hess 28 % ) in the united kingdom north sea for cash proceeds of $ 131 million , after post-closing adjustments . these disposals resulted in non-taxable gains totaling $ 103 million . status of libyan operations in response to civil unrest in libya , a number of measures were taken by the international community in the first quarter of 2011 , including the imposition of economic sanctions . production at the waha field was suspended in the first quarter of 2011. as a consequence of the civil unrest and the sanctions , the corporation delivered force majeure notices to the libyan government relating to the agreements covering its exploration and production interests in order to protect its rights while it was temporarily prevented from fulfilling its obligations and benefiting from the rights granted by those agreements . production at the waha field restarted during the fourth quarter of 2011 at levels that were significantly lower than those prior to the civil unrest . the corporation 's libyan production averaged 23,000 barrels of oil equivalent per day ( boepd ) for the full year of 2010 and 4,000 boepd for 2011. the force majeure covering the corporation 's production interests was withdrawn at the end of the fourth quarter of 2011 , as the economic sanctions were lifted . the force majeure covering the corporation 's offshore exploration interests remained in place at year-end but is expected to be withdrawn in 2012. the corporation had proved reserves of 166 million barrels of oil equivalent in libya at december 31 , 2011. at december 31 , 2011 , the net book value of the corporation 's exploration and production assets in libya was approximately $ 500 million . marketing and refining the corporation 's strategy for the m & r segment is to deliver strong operating performance and generate free cash flow . in january 2012 , hovensa announced a decision to shut down its refinery in st. croix , u.s. virgin islands and operate the complex as an oil storage terminal . results from m & r activities amounted to losses of $ 584 million in 2011 , losses of $ 231 million in 2010 and earnings of $ 127 million in 2009. refining operations generated losses of $ 728 million in 2011 , $ 445 million in 2010 and $ 87 million in 2009. refining results include after-tax charges of $ 525 million in 2011 and $ 289 million in 2010 related to the corporation 's investment in hovensa . marketing earnings were $ 185 million in 2011 , $ 215 million in 2010 and $ 168 million in 2009. liquidity and capital and exploratory expenditures net cash provided by operating activities was $ 4,984 million in 2011 , $ 4,530 million in 2010 and $ 3,046 million in 2009. at december 31 , 2011 , cash and cash equivalents totaled $ 351 million compared with $ 1,608 million at december 31 , 2010 , principally due to increased capital expenditures . total debt was $ 6,057 million at december 31 , 2011 and $ 5,583 million at december 31 , 2010. the corporation 's debt to capitalization ratio at december 31 , 2011 was 24.6 % compared with 24.9 % at the end of 2010. capital and exploratory expenditures were as follows for the years ended december 31 : replace_table_token_14_th 22 the corporation anticipates investing $ 6.8 billion in capital and exploratory expenditures in 2012 , substantially all of which is targeted for e & p operations . consolidated results of operations the after-tax income ( loss ) by major operating activity is summarized below for the years ended december 31 : replace_table_token_15_th the following table summarizes , on an after-tax basis , items of income ( expense ) that are included in net income and affect comparability between periods . the items in the table below are explained on pages 27 through 30. replace_table_token_16_th in the following discussion and elsewhere in this report , the financial effects of certain transactions are disclosed on an after-tax basis . management reviews segment earnings on an after-tax basis and uses after-tax amounts in its review of variances in segment earnings . management believes that after-tax amounts are a preferable method of explaining variances in earnings , since they show the entire effect of a transaction rather than only the pre-tax amount . after-tax amounts are determined by applying the income tax rate in each tax jurisdiction to pre-tax amounts . 23 comparison of results exploration and production following is a summarized income statement of the corporation 's e & p operations for the years ended december 31 : replace_table_token_17_th * amounts differ from e & p operating revenues in note 19 , segment information in the notes to the consolidated financial statements primarily due to the exclusion of sales of hydrocarbons purchased from third parties . after considering the e & p items affecting comparability of earnings between periods in the table on page 27 , the remaining changes in e & p earnings are primarily attributable to changes in selling prices , production and sales volumes , operating costs , exploration expenses , income taxes and foreign exchange , as discussed below . selling prices : higher average selling prices increased e & p revenues by approximately $ 2,400 million in 2011 compared with 2010. higher average selling prices increased e & p revenues by approximately $ 1,775 million in 2010 compared with 2009. story_separator_special_tag as a result of a strategic assessment in 2010 , hovensa decided to lower its crude oil refining capacity to 350,000 from 500,000 barrels per day in 2011. the corporation performed an impairment analysis and concluded that its investment had experienced an other than temporary decline in value . for discussion of the impairment charge , see note 5 , hovensa l.l.c . joint venture in the notes to the consolidated financial statements . excluding items affecting comparability discussed above , the corporation 's share of hovensa 's results was a loss of $ 198 million in 2011 , $ 137 million in 2010 ( $ 222 million before income taxes ) and $ 141 million ( $ 230 million before income taxes ) in 2009. u.s. virgin island income taxes have not been recorded on the corporation 's share of hovensa 's 2011 results due to cumulative operating losses . these results reflect lower refining margins , higher fuel costs and lower sales volumes . during 2010 , the fluid catalytic cracking unit at hovensa was shut down for a scheduled turnaround . the corporation 's share of hovensa 's turnaround expenses was approximately $ 20 million after income taxes . other after-tax refining results , principally from port reading operations , were a loss of $ 5 million in 2011 , a loss of $ 19 million in 2010 and income of $ 42 million in 2009. during 2010 , the port reading refining facility was shut down for 41 days for a scheduled turnaround . the after-tax expenses for the port reading turnaround were approximately $ 30 million . the turnaround expenses are included in other operating expenses in the statement of consolidated income . the following table summarizes refinery utilization rates for the years ended december 31 : replace_table_token_22_th * hovensa 's crude oil refining capacity was reduced to 350,000 from 500,000 barrels per day in the first half of 2011. marketing : marketing operations , which consist principally of retail gasoline and energy marketing activities , generated income of $ 185 million in 2011 , $ 215 million in 2010 and $ 168 million in 2009. the decrease in earnings in 2011 compared with 2010 was due to lower sales volumes and lower margins . the increase in earnings in 2010 compared with 2009 reflected improved margins from the weak economic environment in 2009. the table below summarizes marketing sales volumes for the years ended december 31 : replace_table_token_23_th the corporation has a 50 % voting interest in a consolidated partnership that trades energy commodities and energy derivatives . the corporation also takes trading positions for its own account . the corporation 's after-tax results from trading activities , including its share of the results of the trading partnership , amounted to a loss of $ 41 million in 2011 , a loss of $ 1 million in 2010 and earnings of $ 46 million in 2009. marketing expenses increased in 2011 compared with 2010 reflecting higher retail credit card fees , maintenance , environmental and employee related expenses . marketing expenses increased in 2010 compared with 2009 , principally reflecting changes in retail credit card fees . 29 the corporation 's future m & r earnings may be impacted by supply and demand factors , volatility in margins , credit risks , the effects of weather , competitive industry conditions , political risk , environmental risk and catastrophic risk . for a more comprehensive description of the risks that may affect the corporation 's m & r business , see item 1a . risk factors related to our business and operations . corporate the following table summarizes corporate expenses for the years ended december 31 : replace_table_token_24_th excluding items affecting comparability between periods , net corporate expenses were comparable in 2011 and 2010. the increase in net corporate expenses in 2010 compared with 2009 primarily reflects higher employee and insurance costs and bank facility fees . after-tax corporate expenses in 2012 are estimated to be in the range of $ 160 million to $ 170 million . in 2010 , the corporation recorded a pre-tax charge of $ 11 million ( $ 7 million after income taxes ) related to the repurchase of the remaining $ 116 million of fixed-rate public notes that were scheduled to mature in 2011. in 2009 , the corporation recorded pre-tax charges of $ 54 million ( $ 34 million after income taxes ) related to the repurchase of $ 546 million in fixed-rate public notes that were scheduled to mature in 2011 and $ 42 million ( $ 26 million after income taxes ) relating to retirement benefits and employee severance costs . the pre-tax charges in connection with the debt repurchases were recorded in other , net , and the pre-tax amounts of the retirement benefits and severance costs were recorded in general and administrative expenses in the statement of consolidated income . interest interest expense was as follows for the years ended december 31 : replace_table_token_25_th the increase in interest expense in 2011 compared to 2010 primarily reflects higher average borrowings following the issuance of $ 1.25 billion of 30-year fixed-rate public notes in august 2010. capitalized interest increased in 2011 due to the sanctioning of the tubular bells project . interest expense was comparable in 2010 and 2009. after-tax interest expense in 2012 is expected to be in the range of $ 245 million to $ 255 million . consolidated sales and cost of products sold sales and other operating revenues totaled $ 38,466 million in 2011 , $ 33,862 million in 2010 and $ 29,614 million in 2009. the increase in sales and other operating revenues of 14 % year-on-year from 2009 to 2011 is primarily due to higher crude oil and refined petroleum product selling prices , partially offset by lower crude oil and refined petroleum product sales volumes . 30 the increase in cost of products sold each year principally reflects higher

cash flows the following table sets forth a summary of the corporation 's cash flows for the years ended december 31 : replace_table_token_27_th operating activities : net cash provided by operating activities amounted to $ 4,984 million in 2011 compared with $ 4,530 million in 2010 , reflecting higher operating earnings partially offset by a period over period increase in the use of cash from changes in operating assets and liabilities of $ 412 million . operating cash flow increased to $ 4,530 million in 2010 from $ 3,046 million in 2009 principally reflecting higher earnings . investing activities : the following table summarizes the corporation 's capital expenditures for the years ended december 31 : replace_table_token_28_th capital expenditures in 2011 included acquisitions of approximately $ 800 million for 185,000 net acres in the utica shale play in eastern ohio , $ 214 million for interests in two blocks in the kurdistan region of iraq and $ 116 million for an additional 4 % interest in the south arne field in denmark . capital expenditures in 2010 included acquisitions of 167,000 net acres in the bakken oil shale play in north dakota from trz energy , llc for $ 1,075 million in cash and additional interests of 8 % and 13 % in the valhall and hod fields , respectively , for $ 507 million in cash . capital expenditures in 2009 included acquisitions of $ 188 million for unproved leaseholds and $ 74 million for a 50 % interest in blocks pm301 and pm302 in malaysia , which are adjacent to block a-18 of the jda . in addition , proceeds from asset sales were $ 490 million in 2011 and $ 183 million in 2010 . 31 financing activities : during 2011 , net proceeds from borrowings on available credit facilities were $ 422 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 sets forth a summary of the corporation 's cash flows for the years ended december 31 : replace_table_token_27_th operating activities : net cash provided by operating activities amounted to $ 4,984 million in 2011 compared with $ 4,530 million in 2010 , reflecting higher operating earnings partially offset by a period over period increase in the use of cash from changes in operating assets and liabilities of $ 412 million . operating cash flow increased to $ 4,530 million in 2010 from $ 3,046 million in 2009 principally reflecting higher earnings . investing activities : the following table summarizes the corporation 's capital expenditures for the years ended december 31 : replace_table_token_28_th capital expenditures in 2011 included acquisitions of approximately $ 800 million for 185,000 net acres in the utica shale play in eastern ohio , $ 214 million for interests in two blocks in the kurdistan region of iraq and $ 116 million for an additional 4 % interest in the south arne field in denmark . capital expenditures in 2010 included acquisitions of 167,000 net acres in the bakken oil shale play in north dakota from trz energy , llc for $ 1,075 million in cash and additional interests of 8 % and 13 % in the valhall and hod fields , respectively , for $ 507 million in cash . capital expenditures in 2009 included acquisitions of $ 188 million for unproved leaseholds and $ 74 million for a 50 % interest in blocks pm301 and pm302 in malaysia , which are adjacent to block a-18 of the jda . in addition , proceeds from asset sales were $ 490 million in 2011 and $ 183 million in 2010 . 31 financing activities : during 2011 , net proceeds from borrowings on available credit facilities were $ 422 million . ``` Suspicious Activity Report : 21 in february 2011 , the corporation completed the sale of its interests in certain natural gas producing assets located in the united kingdom north sea for cash proceeds of $ 359 million , after post-closing adjustments , resulting in a pre-tax gain of $ 343 million ( $ 310 million after income taxes ) . in august 2011 , the corporation completed the sale of its interests in the snorre field ( hess 1 % ) , offshore norway and the cook field ( hess 28 % ) in the united kingdom north sea for cash proceeds of $ 131 million , after post-closing adjustments . these disposals resulted in non-taxable gains totaling $ 103 million . status of libyan operations in response to civil unrest in libya , a number of measures were taken by the international community in the first quarter of 2011 , including the imposition of economic sanctions . production at the waha field was suspended in the first quarter of 2011. as a consequence of the civil unrest and the sanctions , the corporation delivered force majeure notices to the libyan government relating to the agreements covering its exploration and production interests in order to protect its rights while it was temporarily prevented from fulfilling its obligations and benefiting from the rights granted by those agreements . production at the waha field restarted during the fourth quarter of 2011 at levels that were significantly lower than those prior to the civil unrest . the corporation 's libyan production averaged 23,000 barrels of oil equivalent per day ( boepd ) for the full year of 2010 and 4,000 boepd for 2011. the force majeure covering the corporation 's production interests was withdrawn at the end of the fourth quarter of 2011 , as the economic sanctions were lifted . the force majeure covering the corporation 's offshore exploration interests remained in place at year-end but is expected to be withdrawn in 2012. the corporation had proved reserves of 166 million barrels of oil equivalent in libya at december 31 , 2011. at december 31 , 2011 , the net book value of the corporation 's exploration and production assets in libya was approximately $ 500 million . marketing and refining the corporation 's strategy for the m & r segment is to deliver strong operating performance and generate free cash flow . in january 2012 , hovensa announced a decision to shut down its refinery in st. croix , u.s. virgin islands and operate the complex as an oil storage terminal . results from m & r activities amounted to losses of $ 584 million in 2011 , losses of $ 231 million in 2010 and earnings of $ 127 million in 2009. refining operations generated losses of $ 728 million in 2011 , $ 445 million in 2010 and $ 87 million in 2009. refining results include after-tax charges of $ 525 million in 2011 and $ 289 million in 2010 related to the corporation 's investment in hovensa . marketing earnings were $ 185 million in 2011 , $ 215 million in 2010 and $ 168 million in 2009. liquidity and capital and exploratory expenditures net cash provided by operating activities was $ 4,984 million in 2011 , $ 4,530 million in 2010 and $ 3,046 million in 2009. at december 31 , 2011 , cash and cash equivalents totaled $ 351 million compared with $ 1,608 million at december 31 , 2010 , principally due to increased capital expenditures . total debt was $ 6,057 million at december 31 , 2011 and $ 5,583 million at december 31 , 2010. the corporation 's debt to capitalization ratio at december 31 , 2011 was 24.6 % compared with 24.9 % at the end of 2010. capital and exploratory expenditures were as follows for the years ended december 31 : replace_table_token_14_th 22 the corporation anticipates investing $ 6.8 billion in capital and exploratory expenditures in 2012 , substantially all of which is targeted for e & p operations . consolidated results of operations the after-tax income ( loss ) by major operating activity is summarized below for the years ended december 31 : replace_table_token_15_th the following table summarizes , on an after-tax basis , items of income ( expense ) that are included in net income and affect comparability between periods . the items in the table below are explained on pages 27 through 30. replace_table_token_16_th in the following discussion and elsewhere in this report , the financial effects of certain transactions are disclosed on an after-tax basis . management reviews segment earnings on an after-tax basis and uses after-tax amounts in its review of variances in segment earnings . management believes that after-tax amounts are a preferable method of explaining variances in earnings , since they show the entire effect of a transaction rather than only the pre-tax amount . after-tax amounts are determined by applying the income tax rate in each tax jurisdiction to pre-tax amounts . 23 comparison of results exploration and production following is a summarized income statement of the corporation 's e & p operations for the years ended december 31 : replace_table_token_17_th * amounts differ from e & p operating revenues in note 19 , segment information in the notes to the consolidated financial statements primarily due to the exclusion of sales of hydrocarbons purchased from third parties . after considering the e & p items affecting comparability of earnings between periods in the table on page 27 , the remaining changes in e & p earnings are primarily attributable to changes in selling prices , production and sales volumes , operating costs , exploration expenses , income taxes and foreign exchange , as discussed below . selling prices : higher average selling prices increased e & p revenues by approximately $ 2,400 million in 2011 compared with 2010. higher average selling prices increased e & p revenues by approximately $ 1,775 million in 2010 compared with 2009. story_separator_special_tag as a result of a strategic assessment in 2010 , hovensa decided to lower its crude oil refining capacity to 350,000 from 500,000 barrels per day in 2011. the corporation performed an impairment analysis and concluded that its investment had experienced an other than temporary decline in value . for discussion of the impairment charge , see note 5 , hovensa l.l.c . joint venture in the notes to the consolidated financial statements . excluding items affecting comparability discussed above , the corporation 's share of hovensa 's results was a loss of $ 198 million in 2011 , $ 137 million in 2010 ( $ 222 million before income taxes ) and $ 141 million ( $ 230 million before income taxes ) in 2009. u.s. virgin island income taxes have not been recorded on the corporation 's share of hovensa 's 2011 results due to cumulative operating losses . these results reflect lower refining margins , higher fuel costs and lower sales volumes . during 2010 , the fluid catalytic cracking unit at hovensa was shut down for a scheduled turnaround . the corporation 's share of hovensa 's turnaround expenses was approximately $ 20 million after income taxes . other after-tax refining results , principally from port reading operations , were a loss of $ 5 million in 2011 , a loss of $ 19 million in 2010 and income of $ 42 million in 2009. during 2010 , the port reading refining facility was shut down for 41 days for a scheduled turnaround . the after-tax expenses for the port reading turnaround were approximately $ 30 million . the turnaround expenses are included in other operating expenses in the statement of consolidated income . the following table summarizes refinery utilization rates for the years ended december 31 : replace_table_token_22_th * hovensa 's crude oil refining capacity was reduced to 350,000 from 500,000 barrels per day in the first half of 2011. marketing : marketing operations , which consist principally of retail gasoline and energy marketing activities , generated income of $ 185 million in 2011 , $ 215 million in 2010 and $ 168 million in 2009. the decrease in earnings in 2011 compared with 2010 was due to lower sales volumes and lower margins . the increase in earnings in 2010 compared with 2009 reflected improved margins from the weak economic environment in 2009. the table below summarizes marketing sales volumes for the years ended december 31 : replace_table_token_23_th the corporation has a 50 % voting interest in a consolidated partnership that trades energy commodities and energy derivatives . the corporation also takes trading positions for its own account . the corporation 's after-tax results from trading activities , including its share of the results of the trading partnership , amounted to a loss of $ 41 million in 2011 , a loss of $ 1 million in 2010 and earnings of $ 46 million in 2009. marketing expenses increased in 2011 compared with 2010 reflecting higher retail credit card fees , maintenance , environmental and employee related expenses . marketing expenses increased in 2010 compared with 2009 , principally reflecting changes in retail credit card fees . 29 the corporation 's future m & r earnings may be impacted by supply and demand factors , volatility in margins , credit risks , the effects of weather , competitive industry conditions , political risk , environmental risk and catastrophic risk . for a more comprehensive description of the risks that may affect the corporation 's m & r business , see item 1a . risk factors related to our business and operations . corporate the following table summarizes corporate expenses for the years ended december 31 : replace_table_token_24_th excluding items affecting comparability between periods , net corporate expenses were comparable in 2011 and 2010. the increase in net corporate expenses in 2010 compared with 2009 primarily reflects higher employee and insurance costs and bank facility fees . after-tax corporate expenses in 2012 are estimated to be in the range of $ 160 million to $ 170 million . in 2010 , the corporation recorded a pre-tax charge of $ 11 million ( $ 7 million after income taxes ) related to the repurchase of the remaining $ 116 million of fixed-rate public notes that were scheduled to mature in 2011. in 2009 , the corporation recorded pre-tax charges of $ 54 million ( $ 34 million after income taxes ) related to the repurchase of $ 546 million in fixed-rate public notes that were scheduled to mature in 2011 and $ 42 million ( $ 26 million after income taxes ) relating to retirement benefits and employee severance costs . the pre-tax charges in connection with the debt repurchases were recorded in other , net , and the pre-tax amounts of the retirement benefits and severance costs were recorded in general and administrative expenses in the statement of consolidated income . interest interest expense was as follows for the years ended december 31 : replace_table_token_25_th the increase in interest expense in 2011 compared to 2010 primarily reflects higher average borrowings following the issuance of $ 1.25 billion of 30-year fixed-rate public notes in august 2010. capitalized interest increased in 2011 due to the sanctioning of the tubular bells project . interest expense was comparable in 2010 and 2009. after-tax interest expense in 2012 is expected to be in the range of $ 245 million to $ 255 million . consolidated sales and cost of products sold sales and other operating revenues totaled $ 38,466 million in 2011 , $ 33,862 million in 2010 and $ 29,614 million in 2009. the increase in sales and other operating revenues of 14 % year-on-year from 2009 to 2011 is primarily due to higher crude oil and refined petroleum product selling prices , partially offset by lower crude oil and refined petroleum product sales volumes . 30 the increase in cost of products sold each year principally reflects higher

the commodities comprising the index are corn , soybeans , wheat , kansas city wheat , sugar , cocoa , coffee , cotton , live cattle , feeder cattle and lean hogs ( each an “ index commodity ” , and collectively , the “ index commodities ” ) . the fund may invest directly in united states treasury obligations . the fund may also gain exposure to united states treasury obligations through investments in exchange-traded funds ( “ etfs ” ) ( affiliated or otherwise ) that track indexes that measure the performance of united states treasury obligations with a maximum remaining maturity of up to 12 months ( “ t-bill etfs ” ) . the fund holds as collateral united states treasury obligations , money market mutual funds and t-bill etfs ( affiliated or otherwise ) , if any , for margin and or cash management purposes . while the fund 's performance reflects the appreciation and depreciation of those holdings , the fund 's performance , whether positive or negative , is driven primarily by its strategy of trading futures contracts with the aim of seeking to track the index . the fund pursues its investment objective by investing in a portfolio of exchange-traded commodity futures contracts that expire in a specific month and trade on a specific exchange ( the “ index contracts ” ) in the index commodities . the fund also holds united states treasury obligations and t-bill etfs , if any , for deposit with morgan stanley & co. llc , the fund 's commodity broker ( the “ commodity broker ” ) as margin , to the extent permissible under cftc rules and united states treasury obligations , cash , money market mutual funds and t-bill etfs ( affiliated or otherwise ) , if any , on deposit with the bank of new york mellon ( the “ custodian ” ) , for cash management purposes . the aggregate notional value of the commodity futures contracts owned by the fund is expected to approximate the aggregate net asset value ( “ nav ” ) of the fund , as opposed to the aggregate index value . the cftc and certain futures exchanges impose position limits on futures contracts , including on index contracts . as the fund approaches or reaches position limits with respect to an index commodity , the fund may commence investing in index contracts that reference other index commodities . in those circumstances , the fund may also trade in futures contracts based on commodities other than index commodities that the managing owner reasonably believes tend to exhibit trading prices that correlate with an index contract . in addition , the managing owner may determine to invest in other futures contracts if at any time it is impractical or inefficient to gain full or partial exposure to an index commodity through the use of index contracts . these other futures contracts may or may not be based on an index commodity . when they are not , the managing owner may seek to select futures contracts that it reasonably believes tend to exhibit trading prices that correlate with an index contract . the shares are intended to provide investment results that generally correspond to the changes , positive or negative , in the levels of the index over time . the value of the shares is expected to fluctuate in relation to changes in the value of the fund 's portfolio . the market price of the shares may not be identical to the nav per share , but these two valuations are expected to be very close . margin calls “ initial ” or “ original ” margin is the minimum amount of funds that must be deposited by a futures trader with his commodity broker in order to initiate futures trading or to maintain an open position in futures contracts . “ maintenance ” margin is the amount ( generally less than initial margin ) to which a trader 's account may decline before he must deliver additional margin . a margin deposit is like a cash performance bond . it helps assure the futures trader 's performance of the futures contract that the trader purchases or sells . futures contracts are customarily bought and sold on margin that represents a very small percentage ( ranging upward from less than 2 % ) of the purchase price of the underlying commodity being traded . because of such low margins , price fluctuations occurring in the futures markets may create profits and losses that are greater , in relation to the amount invested , than are customary in other forms of investments . the minimum amount of margin required in connection with a particular futures contract is set from time to time by the exchange on which such contract is traded , and may be modified from time to time by the exchange during the term of the contract . “ variation margin ” is assessed daily to reflect changes in the value of the position . brokerage firms carrying accounts for traders in futures contracts may not accept lower , and generally require higher , amounts of margin as a matter of policy in order to afford further protection for themselves . margin requirements are computed each day by a commodity broker . when the market value of a particular open futures contract position changes to a point where the margin on deposit does not satisfy maintenance margin requirements , a margin call is made by the commodity broker . if the margin call is not met within a reasonable time , the broker may close out the fund 's position . story_separator_special_tag rising commodity futures contract prices of corn , soybean , wheat , cocoa , coffee and live cattle were partially offset by falling commodity futures contract prices of kansas city wheat , sugar , cotton , feeder cattle and lean hogs during the year ended december 31 , 2019 contributed to an overall 1.92 % decrease in the level of the index and to a 0.15 % increase in the level of the dbiq diversified agriculture tr . on december 31 , 2019 , the fund paid a distribution of $ 0.25717 for each general share and share to holders of record as of december 24 , 2019. therefore , the total return for the fund on a nav basis was -0.70 % . net income ( loss ) for the year ended december 31 , 2019 was $ ( 7.3 ) million , resulting from $ 9.3 million of income , net realized gain ( loss ) of $ ( 42.5 ) million , net change in unrealized gain ( loss ) of $ 29.7 million and net operating expenses of $ 3.8 million . critical accounting policies the fund 's critical accounting policies are as follows : preparation of the financial statements and related disclosures in conformity with u.s. gaap requires the application of appropriate accounting rules and guidance , as well as the use of estimates , and requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities , revenue and expense and related disclosure of contingent assets and liabilities during the reporting period of the financial statements and accompanying notes . the fund 's application of these policies involves judgments and actual results may differ from the estimates used . there were no significant estimates used in the preparation of these financial statements . commodity futures contracts , united states treasury obligations , t-bill etfs and money market mutual funds are recorded on a trade date basis and at fair value in the financial statements , with changes in fair value , if any , reported in the statements of income and expenses . the use of fair value to measure financial instruments , with related unrealized gains or losses recognized in earnings in each period , is fundamental to the fund 's financial statements . the fair value of a financial instrument is the amount 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 ( the exit price ) . united states treasury obligations are fair valued using an evaluated quote provided by an independent pricing service . futures contracts are valued at the final settlement price set by an exchange on which they are principally traded . investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day nav per share . investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded . financial accounting standards board ( “ fasb ” ) accounting standards codification for fair value measurement and disclosure guidance requires a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value . the objective of a fair value measurement is to determine 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 ( an exit price ) . the hierarchy gives the highest priority to unadjusted quoted prices for identical assets or liabilities ( level 1 measurements ) and the lowest priority to unobservable inputs ( level 3 measurements ) . assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement . see note 6 within the financial statements in item 8 for further information . securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith following procedures approved by the managing owner . issuer-specific events , market trends , bid/asked quotes of brokers and information providers and other data may be reviewed in the course of making a good faith determination of a security 's fair value . realized gains ( losses ) from the sale or disposition of securities or derivatives are determined on a specific identification basis and recognized in the statements of income and expenses in the period in which the contract is closed or the sale or disposition occurs , respectively . interest income on united states treasury obligations is recognized on an accrual basis when earned . premiums and discounts are amortized or accreted over the life of the united states treasury obligations . dividend income ( net of withholding tax , if any ) is recorded on the ex-dividend date . 29 off-balance sheet arrangements and contractual obligations in the normal course of its business , the fund is a party to financial instruments with off-balance sheet risk . the term “ off-balance sheet risk ” refers to an unrecorded potential liability that , even though it does not appear on the balance sheet , may result in a future obligation or loss . the financial instruments used by the fund are commodity futures , the values of which are based upon an underlying asset and generally represent future commitments which have a reasonable possibility to be settled in cash or through physical delivery . the financial instruments are traded on an exchange and are standardized contracts . the fund has not utilized , nor does it expect to utilize in the future , special purpose entities to facilitate off-balance sheet financing arrangements and has no loan guarantee arrangements or off-balance sheet

cash flows a primary cash flow activity of the fund is to raise capital from authorized participants through the issuance of shares . this cash is used to invest in united states treasury obligations , money market mutual funds and t-bill etfs , if any , and to meet margin requirements as a result of the positions taken in futures contracts to match the fluctuations of the index the fund is tracking . as of the date of this report , each of bank of america merrill lynch , bmo capital markets corp. , bnp paribas securities corp. , cantor fitzgerald & co. , citadel securities llc , citigroup global markets inc. , credit suisse securities ( usa ) llc , deutsche bank securities inc. , goldman sachs & co. , goldman sachs execution & clearing lp , interactive brokers llc , jefferies llc , jp morgan securities inc. , merrill lynch professional clearing corp. , morgan stanley & co. llc , nomura securities international inc. , rbc capital markets llc , sg americas securities llc , ubs securities llc , virtu americas llc and virtu financial capital markets llc has executed a participant agreement and are the only authorized participants . operating activities net cash flow provided by ( used in ) operating activities was $ ( 265.0 ) million and $ 143.1 million for the years december 31 , 2020 and 2019 , respectively . these amounts primarily include net income ( loss ) , net purchases and sales of money market mutual funds and net purchases and sales of united states treasury obligations and affiliated investments . the fund invests in futures contracts in an attempt to track its index . the fund invests in united states treasury obligations , money market mutual funds and t-bill etfs ( affiliated or otherwise ) , if any , for margin and or cash management purposes only .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 a primary cash flow activity of the fund is to raise capital from authorized participants through the issuance of shares . this cash is used to invest in united states treasury obligations , money market mutual funds and t-bill etfs , if any , and to meet margin requirements as a result of the positions taken in futures contracts to match the fluctuations of the index the fund is tracking . as of the date of this report , each of bank of america merrill lynch , bmo capital markets corp. , bnp paribas securities corp. , cantor fitzgerald & co. , citadel securities llc , citigroup global markets inc. , credit suisse securities ( usa ) llc , deutsche bank securities inc. , goldman sachs & co. , goldman sachs execution & clearing lp , interactive brokers llc , jefferies llc , jp morgan securities inc. , merrill lynch professional clearing corp. , morgan stanley & co. llc , nomura securities international inc. , rbc capital markets llc , sg americas securities llc , ubs securities llc , virtu americas llc and virtu financial capital markets llc has executed a participant agreement and are the only authorized participants . operating activities net cash flow provided by ( used in ) operating activities was $ ( 265.0 ) million and $ 143.1 million for the years december 31 , 2020 and 2019 , respectively . these amounts primarily include net income ( loss ) , net purchases and sales of money market mutual funds and net purchases and sales of united states treasury obligations and affiliated investments . the fund invests in futures contracts in an attempt to track its index . the fund invests in united states treasury obligations , money market mutual funds and t-bill etfs ( affiliated or otherwise ) , if any , for margin and or cash management purposes only . ``` Suspicious Activity Report : the commodities comprising the index are corn , soybeans , wheat , kansas city wheat , sugar , cocoa , coffee , cotton , live cattle , feeder cattle and lean hogs ( each an “ index commodity ” , and collectively , the “ index commodities ” ) . the fund may invest directly in united states treasury obligations . the fund may also gain exposure to united states treasury obligations through investments in exchange-traded funds ( “ etfs ” ) ( affiliated or otherwise ) that track indexes that measure the performance of united states treasury obligations with a maximum remaining maturity of up to 12 months ( “ t-bill etfs ” ) . the fund holds as collateral united states treasury obligations , money market mutual funds and t-bill etfs ( affiliated or otherwise ) , if any , for margin and or cash management purposes . while the fund 's performance reflects the appreciation and depreciation of those holdings , the fund 's performance , whether positive or negative , is driven primarily by its strategy of trading futures contracts with the aim of seeking to track the index . the fund pursues its investment objective by investing in a portfolio of exchange-traded commodity futures contracts that expire in a specific month and trade on a specific exchange ( the “ index contracts ” ) in the index commodities . the fund also holds united states treasury obligations and t-bill etfs , if any , for deposit with morgan stanley & co. llc , the fund 's commodity broker ( the “ commodity broker ” ) as margin , to the extent permissible under cftc rules and united states treasury obligations , cash , money market mutual funds and t-bill etfs ( affiliated or otherwise ) , if any , on deposit with the bank of new york mellon ( the “ custodian ” ) , for cash management purposes . the aggregate notional value of the commodity futures contracts owned by the fund is expected to approximate the aggregate net asset value ( “ nav ” ) of the fund , as opposed to the aggregate index value . the cftc and certain futures exchanges impose position limits on futures contracts , including on index contracts . as the fund approaches or reaches position limits with respect to an index commodity , the fund may commence investing in index contracts that reference other index commodities . in those circumstances , the fund may also trade in futures contracts based on commodities other than index commodities that the managing owner reasonably believes tend to exhibit trading prices that correlate with an index contract . in addition , the managing owner may determine to invest in other futures contracts if at any time it is impractical or inefficient to gain full or partial exposure to an index commodity through the use of index contracts . these other futures contracts may or may not be based on an index commodity . when they are not , the managing owner may seek to select futures contracts that it reasonably believes tend to exhibit trading prices that correlate with an index contract . the shares are intended to provide investment results that generally correspond to the changes , positive or negative , in the levels of the index over time . the value of the shares is expected to fluctuate in relation to changes in the value of the fund 's portfolio . the market price of the shares may not be identical to the nav per share , but these two valuations are expected to be very close . margin calls “ initial ” or “ original ” margin is the minimum amount of funds that must be deposited by a futures trader with his commodity broker in order to initiate futures trading or to maintain an open position in futures contracts . “ maintenance ” margin is the amount ( generally less than initial margin ) to which a trader 's account may decline before he must deliver additional margin . a margin deposit is like a cash performance bond . it helps assure the futures trader 's performance of the futures contract that the trader purchases or sells . futures contracts are customarily bought and sold on margin that represents a very small percentage ( ranging upward from less than 2 % ) of the purchase price of the underlying commodity being traded . because of such low margins , price fluctuations occurring in the futures markets may create profits and losses that are greater , in relation to the amount invested , than are customary in other forms of investments . the minimum amount of margin required in connection with a particular futures contract is set from time to time by the exchange on which such contract is traded , and may be modified from time to time by the exchange during the term of the contract . “ variation margin ” is assessed daily to reflect changes in the value of the position . brokerage firms carrying accounts for traders in futures contracts may not accept lower , and generally require higher , amounts of margin as a matter of policy in order to afford further protection for themselves . margin requirements are computed each day by a commodity broker . when the market value of a particular open futures contract position changes to a point where the margin on deposit does not satisfy maintenance margin requirements , a margin call is made by the commodity broker . if the margin call is not met within a reasonable time , the broker may close out the fund 's position . story_separator_special_tag rising commodity futures contract prices of corn , soybean , wheat , cocoa , coffee and live cattle were partially offset by falling commodity futures contract prices of kansas city wheat , sugar , cotton , feeder cattle and lean hogs during the year ended december 31 , 2019 contributed to an overall 1.92 % decrease in the level of the index and to a 0.15 % increase in the level of the dbiq diversified agriculture tr . on december 31 , 2019 , the fund paid a distribution of $ 0.25717 for each general share and share to holders of record as of december 24 , 2019. therefore , the total return for the fund on a nav basis was -0.70 % . net income ( loss ) for the year ended december 31 , 2019 was $ ( 7.3 ) million , resulting from $ 9.3 million of income , net realized gain ( loss ) of $ ( 42.5 ) million , net change in unrealized gain ( loss ) of $ 29.7 million and net operating expenses of $ 3.8 million . critical accounting policies the fund 's critical accounting policies are as follows : preparation of the financial statements and related disclosures in conformity with u.s. gaap requires the application of appropriate accounting rules and guidance , as well as the use of estimates , and requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities , revenue and expense and related disclosure of contingent assets and liabilities during the reporting period of the financial statements and accompanying notes . the fund 's application of these policies involves judgments and actual results may differ from the estimates used . there were no significant estimates used in the preparation of these financial statements . commodity futures contracts , united states treasury obligations , t-bill etfs and money market mutual funds are recorded on a trade date basis and at fair value in the financial statements , with changes in fair value , if any , reported in the statements of income and expenses . the use of fair value to measure financial instruments , with related unrealized gains or losses recognized in earnings in each period , is fundamental to the fund 's financial statements . the fair value of a financial instrument is the amount 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 ( the exit price ) . united states treasury obligations are fair valued using an evaluated quote provided by an independent pricing service . futures contracts are valued at the final settlement price set by an exchange on which they are principally traded . investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day nav per share . investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded . financial accounting standards board ( “ fasb ” ) accounting standards codification for fair value measurement and disclosure guidance requires a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value . the objective of a fair value measurement is to determine 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 ( an exit price ) . the hierarchy gives the highest priority to unadjusted quoted prices for identical assets or liabilities ( level 1 measurements ) and the lowest priority to unobservable inputs ( level 3 measurements ) . assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement . see note 6 within the financial statements in item 8 for further information . securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith following procedures approved by the managing owner . issuer-specific events , market trends , bid/asked quotes of brokers and information providers and other data may be reviewed in the course of making a good faith determination of a security 's fair value . realized gains ( losses ) from the sale or disposition of securities or derivatives are determined on a specific identification basis and recognized in the statements of income and expenses in the period in which the contract is closed or the sale or disposition occurs , respectively . interest income on united states treasury obligations is recognized on an accrual basis when earned . premiums and discounts are amortized or accreted over the life of the united states treasury obligations . dividend income ( net of withholding tax , if any ) is recorded on the ex-dividend date . 29 off-balance sheet arrangements and contractual obligations in the normal course of its business , the fund is a party to financial instruments with off-balance sheet risk . the term “ off-balance sheet risk ” refers to an unrecorded potential liability that , even though it does not appear on the balance sheet , may result in a future obligation or loss . the financial instruments used by the fund are commodity futures , the values of which are based upon an underlying asset and generally represent future commitments which have a reasonable possibility to be settled in cash or through physical delivery . the financial instruments are traded on an exchange and are standardized contracts . the fund has not utilized , nor does it expect to utilize in the future , special purpose entities to facilitate off-balance sheet financing arrangements and has no loan guarantee arrangements or off-balance sheet

our recently awarded large civil projects have contract durations of approximately four to five years . accordingly , we expect to realize the benefits of these projects over the next several years . typically , in later stages of our projects , productivity increases are realized and claims and unapproved change orders , if any , are resolved . when projects are in later stages of completion , these changes may result in more significant impacts to profitability . 32 the following table sets forth our consolidated results of operations : replace_table_token_18_th replace_table_token_19_th revenues were $ 4,175.7 million in 2013 , as compared to $ 4,111.5 million in 2012 and $ 3,716.3 million in 2011. income from construction operations was $ 203.8 million in 2013 , as compared to loss from construction operations of $ 221.8 million in 2012 and income from construction operations of $ 168.4 million in 2011. in 2012 , our loss from construction operations of $ 221.8 million was materially impacted by a $ 376.6 million goodwill and intangible asset impairment charge ( $ 326.4 million after-tax ) , due primarily to a deterioration in broader market conditions , degradation in the timing of projected cash flows used to derive the fair value , and a sustained decrease in the company 's stock price , causing its market capitalization to be substantially less than its carrying value . see additional discussion under critical accounting policies below . net income was $ 87.3 million in 2013 , as compared to a net loss of $ 265.4 million in 2012 and net income of $ 86.1 million in 2011. basic and diluted earnings per share were $ 1.82 and $ 1.80 , respectively , in 2013 , as compared to basic and diluted loss per share of $ 5.59 and $ 5.59 , respectively , in 2012 , and basic and diluted earnings per share of $ 1.82 and $ 1.80 , respectively , in 2011. excluding the $ 326.4 million after-tax goodwill and intangible asset impairment charge , the $ 3.0 million after-tax litigation provision relating to an adverse court decision , $ 3.6 million in discrete tax expense adjustments and a $ 2.7 million pre-tax loss on the sale of certain auction rate securities , net income and diluted earnings per share for 2012 were $ 70.3 million , and $ 1.46 , respectively . net income and diluted earnings per share excluding these adjustments are non-u.s. gaap financial measures , which are discussed below and are reconciled to the most directly comparable u.s. gaap measures . 33 revenues increased by $ 64.2 million , or 1.6 % during 2013. this increase was primarily driven by increased activity in certain hospitality and gaming projects in california , arizona and nevada as well as increased activity and the start-up of projects at hudson yards in new york . these increases were offset by reduced activity on large healthcare facility projects in northern california . income from construction operations increased by $ 425.6 million during 2013. this increase was primarily driven by the $ 376.6 million goodwill and intangible asset impairment charge discussed above . excluding the impairment charge , income from construction operations increased by $ 49.1 million , or 31.7 % during 2013. this increase was primarily driven by strong operating performance in our civil group . other expense ( income ) , net , was an expense of $ 18.6 million in 2013 , an increase of $ 16.7 million compared to an expense of $ 1.9 million in 2012. this increase was primarily driven by increases to certain business acquisition related liabilities . interest expense increased by $ 1.5 million during 2013. this increase was primarily driven by increased draws on our revolving facilities . the provision for income taxes increased by $ 54.8 million during 2013. the income tax benefit in 2012 includes the impact of a $ 50.2 million reduction in our provision for income taxes recorded due to the impairment charge discussed above . at december 31 , 2013 , we had working capital of $ 787.4 million , a ratio of current assets to current liabilities of 1.61 to 1.00 , and a ratio of debt to equity of 0.59 to 1.00 compared to working capital of $ 747.6 million , a ratio of current assets to current liabilities of 1.61 to 1.00 , and a ratio of debt to equity of 0.64 to 1.00 at december 31 , 2012. our stockholders ' equity increased to $ 1.2 billion as of december 31 , 2013 from $ 1.1 billion as of december 31 , 2012. non-u.s. gaap measures our consolidated financial statements are presented based on u.s. gaap . we sometimes use non-u.s. gaap measures of income from operations , net income , earnings per share and other measures that we believe are appropriate to enhance an overall understanding of our historical financial performance and future prospects . we are providing these non-u.s. gaap measures to disclose additional information to facilitate the comparison of past and present operations , and they are among the indicators management uses as a basis for evaluating the company 's financial performance as well as for forecasting future periods . for these reasons , management believes these non-u.s.gaap measures can be useful operating performance measures to be considered by investors , prospective investors and others . these non-u.s. gaap measures are not intended to replace the presentation of our financial results in accordance with u.s. gaap , and they may not be comparable to other similarly titled measures of other companies . 34 the following table is a reconciliation of reported income ( loss ) from construction operations , net income ( loss ) , and diluted earnings ( loss ) per share under u.s. gaap to income from operations , net income and diluted earnings per share for the years ended december 31 , 2013 and 2012 , excluding discrete items . story_separator_special_tag · market control premium : we compare our implied control premium to the average control premium paid in transactions of companies in the construction industry during the year of evaluation . · sensitivity analysis : we perform a sensitivity analysis to determine the minimum control premium required to recover the book value of the company at the testing date . the minimum control premium required is then compared to the average control premium paid in transactions of companies in the construction industry during the year of evaluation . · impact of low public float and limited trading activity : a significant portion of our common stock is owned by our chairman and ceo . as a result , the public float of our common stock , calculated as the percentage of shares of common stock freely traded by public investors divided by our total shares outstanding , is significantly lower than that of its publicly traded peers . this circumstance does not impact the fair value of the company , however based on its evaluation of third party market data , we believe it does lead to an inherent marketability discount impacting its stock price . impairment assessment inherently involves management judgments as to the assumptions used for projections and to evaluate the impact of market conditions on those assumptions . the key assumptions that we use to estimate the fair value of our reporting units under the income-based approach are as follows : · weighted average cost of capital used to discount the projected cash flows ; · cash flows generated from existing and new work awards ; and · projected operating margins . 38 weighted average cost of capital rates used to discount the projected cash flows are developed via the capital asset pricing model which is primarily based upon market inputs . we use discount rates that management feels are an accurate reflection of the risks associated with the forecasted cash flows of our respective reporting units . to develop the cash flows generated from new work awards and future operating margins , we primarily track prospective work for each of our reporting units on a project-by-project basis as well as the estimated timing of when the work would be bid or prequalified , started and completed . we also give consideration to our relationships with the prospective owners , the pool of competitors that are capable of performing large , complex work , changes in business strategy and the company 's history of success in winning new work in each reporting unit . with regard to operating margins , we give consideration to our historical reporting unit operating margins in the end markets that the prospective work opportunities are most significant , current market trends in recent new work procurement , and changes in business strategy . we also estimate the fair value of our reporting units under a market-based approach by applying industry-comparable multiples of revenues and operating earnings to our reporting units ' projected performance . the conditions and prospects of companies in the construction industry depend on common factors such as overall demand for services . changes in our assumptions or estimates could materially affect the determination of the fair value of a reporting unit . such changes in assumptions could be caused by : · terminations , suspensions , reductions in scope or delays in the start-up of the revenues and cash flows from backlog as well as the prospective work we track ; · reductions in available government , state and local agencies and non-residential private industry funding and spending ; · our ability to effectively compete for new work and maintain and grow market penetration in the regions that the company operates in ; · our ability to successfully control costs , work schedule , and project delivery ; or · broader market conditions , including stock market volatility in the construction industry and its impact on the weighted average cost of capital assumption . on a quarterly basis we consider whether events or changes in circumstances indicate that assets , including goodwill and intangible assets not subject to amortization might be impaired . in conjunction with this analysis , we evaluate whether our current market capitalization is less than our stockholders ' equity and specifically consider ( 1 ) changes in macroeconomic conditions , ( 2 ) changes in general economic conditions in the construction industry including any declines in market-dependent multiples , ( 3 ) cost factors such as increases in raw materials , labor , or other costs that have a negative effect on earnings and cash flows analyses , ( 4 ) a reconciliation of the implied control premium to a current market control premium , ( 5 ) target price assessments by third party analysts and ( 6 ) the impact of current market conditions on its forecast of future cash flows including consideration of specific projects in backlog , pending awards , or large prospect opportunities . we also evaluate our most recent assessment of the fair value for each of our reporting units , considering whether our current forecast of future cash flows is in line with those used in our annual impairment assessment and whether there are any significant changes in trends or any other material assumptions used . as of december 31 , 2013 , we have concluded that we do not have an impairment of our goodwill or our indefinite-lived intangible assets and that the estimated fair value of each reporting unit exceeds its carrying value . see note 4 — goodwill and other intangible assets of the notes to consolidated financial statements in part iv , item 15. exhibits and financial statement schedu le for additional goodwill disclosure . fair value measurements — our investment in auction rate securities ( “ars” ) is measured at fair value utilizing unobservable ( level 3 ) inputs . we have determined the estimated fair values of these securities utilizing an income approach

debt debt was $ 733.9 million at december 31 , 2013 , a decrease of $ 3.2 million from $ 737.1 million at december 31 , 2012 , primarily due to the pay down of our $ 200 million term loan by $ 37.5 million , partially offset by a net increase of $ 15.0 million in borrowings on our revolving line of credit . we utilized the revolving facility for outstanding letters of credit in the amount of $ 0.2 million . accordingly , at december 31 , 2013 , we had $ 164.8 million available to borrow under our credit agreement . excluding the outstanding borrowings of $ 135.0 million on our revolving line of credit , unsecured senior notes of $ 298.5 million and our $ 200 million term loan ( which had been paid down to $ 115.0 million as of december 31 , 2013 from $ 152.5 million at december 31 , 2012 ) , the remaining balance of $ 185.4 million of our outstanding debt is generally secured by the underlying assets . our debt to equity ratio was 0.59 to 1.00 as of december 31 , 2013 compared to 0.64 to 1.00 as of december 31 , 2012. on august 2 , 2012 , we entered into a first amendment ( the “first amendment” ) to our fifth amended and restated credit agreement ( the “credit agreement” ) entered into on august 3 , 2011 as borrower , with bank of america , n.a. , as administrative agent , swing line lender and l/c issuer . the first amendment modified the financial covenants under the credit agreement to allow for more favorable minimum net worth , minimum fixed charge and maximum leverage ratios for us and also to add several new financial covenants including minimum liquidity and a consolidated senior leverage ratio . the first amendment also modified the applicable interest rates for amounts outstanding under the credit facility as well as the quarterly fees per annum for the unused portion of the credit facility . see amended credit agreement below for a detailed discussion of 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. ```debt debt was $ 733.9 million at december 31 , 2013 , a decrease of $ 3.2 million from $ 737.1 million at december 31 , 2012 , primarily due to the pay down of our $ 200 million term loan by $ 37.5 million , partially offset by a net increase of $ 15.0 million in borrowings on our revolving line of credit . we utilized the revolving facility for outstanding letters of credit in the amount of $ 0.2 million . accordingly , at december 31 , 2013 , we had $ 164.8 million available to borrow under our credit agreement . excluding the outstanding borrowings of $ 135.0 million on our revolving line of credit , unsecured senior notes of $ 298.5 million and our $ 200 million term loan ( which had been paid down to $ 115.0 million as of december 31 , 2013 from $ 152.5 million at december 31 , 2012 ) , the remaining balance of $ 185.4 million of our outstanding debt is generally secured by the underlying assets . our debt to equity ratio was 0.59 to 1.00 as of december 31 , 2013 compared to 0.64 to 1.00 as of december 31 , 2012. on august 2 , 2012 , we entered into a first amendment ( the “first amendment” ) to our fifth amended and restated credit agreement ( the “credit agreement” ) entered into on august 3 , 2011 as borrower , with bank of america , n.a. , as administrative agent , swing line lender and l/c issuer . the first amendment modified the financial covenants under the credit agreement to allow for more favorable minimum net worth , minimum fixed charge and maximum leverage ratios for us and also to add several new financial covenants including minimum liquidity and a consolidated senior leverage ratio . the first amendment also modified the applicable interest rates for amounts outstanding under the credit facility as well as the quarterly fees per annum for the unused portion of the credit facility . see amended credit agreement below for a detailed discussion of this amendment . ``` Suspicious Activity Report : our recently awarded large civil projects have contract durations of approximately four to five years . accordingly , we expect to realize the benefits of these projects over the next several years . typically , in later stages of our projects , productivity increases are realized and claims and unapproved change orders , if any , are resolved . when projects are in later stages of completion , these changes may result in more significant impacts to profitability . 32 the following table sets forth our consolidated results of operations : replace_table_token_18_th replace_table_token_19_th revenues were $ 4,175.7 million in 2013 , as compared to $ 4,111.5 million in 2012 and $ 3,716.3 million in 2011. income from construction operations was $ 203.8 million in 2013 , as compared to loss from construction operations of $ 221.8 million in 2012 and income from construction operations of $ 168.4 million in 2011. in 2012 , our loss from construction operations of $ 221.8 million was materially impacted by a $ 376.6 million goodwill and intangible asset impairment charge ( $ 326.4 million after-tax ) , due primarily to a deterioration in broader market conditions , degradation in the timing of projected cash flows used to derive the fair value , and a sustained decrease in the company 's stock price , causing its market capitalization to be substantially less than its carrying value . see additional discussion under critical accounting policies below . net income was $ 87.3 million in 2013 , as compared to a net loss of $ 265.4 million in 2012 and net income of $ 86.1 million in 2011. basic and diluted earnings per share were $ 1.82 and $ 1.80 , respectively , in 2013 , as compared to basic and diluted loss per share of $ 5.59 and $ 5.59 , respectively , in 2012 , and basic and diluted earnings per share of $ 1.82 and $ 1.80 , respectively , in 2011. excluding the $ 326.4 million after-tax goodwill and intangible asset impairment charge , the $ 3.0 million after-tax litigation provision relating to an adverse court decision , $ 3.6 million in discrete tax expense adjustments and a $ 2.7 million pre-tax loss on the sale of certain auction rate securities , net income and diluted earnings per share for 2012 were $ 70.3 million , and $ 1.46 , respectively . net income and diluted earnings per share excluding these adjustments are non-u.s. gaap financial measures , which are discussed below and are reconciled to the most directly comparable u.s. gaap measures . 33 revenues increased by $ 64.2 million , or 1.6 % during 2013. this increase was primarily driven by increased activity in certain hospitality and gaming projects in california , arizona and nevada as well as increased activity and the start-up of projects at hudson yards in new york . these increases were offset by reduced activity on large healthcare facility projects in northern california . income from construction operations increased by $ 425.6 million during 2013. this increase was primarily driven by the $ 376.6 million goodwill and intangible asset impairment charge discussed above . excluding the impairment charge , income from construction operations increased by $ 49.1 million , or 31.7 % during 2013. this increase was primarily driven by strong operating performance in our civil group . other expense ( income ) , net , was an expense of $ 18.6 million in 2013 , an increase of $ 16.7 million compared to an expense of $ 1.9 million in 2012. this increase was primarily driven by increases to certain business acquisition related liabilities . interest expense increased by $ 1.5 million during 2013. this increase was primarily driven by increased draws on our revolving facilities . the provision for income taxes increased by $ 54.8 million during 2013. the income tax benefit in 2012 includes the impact of a $ 50.2 million reduction in our provision for income taxes recorded due to the impairment charge discussed above . at december 31 , 2013 , we had working capital of $ 787.4 million , a ratio of current assets to current liabilities of 1.61 to 1.00 , and a ratio of debt to equity of 0.59 to 1.00 compared to working capital of $ 747.6 million , a ratio of current assets to current liabilities of 1.61 to 1.00 , and a ratio of debt to equity of 0.64 to 1.00 at december 31 , 2012. our stockholders ' equity increased to $ 1.2 billion as of december 31 , 2013 from $ 1.1 billion as of december 31 , 2012. non-u.s. gaap measures our consolidated financial statements are presented based on u.s. gaap . we sometimes use non-u.s. gaap measures of income from operations , net income , earnings per share and other measures that we believe are appropriate to enhance an overall understanding of our historical financial performance and future prospects . we are providing these non-u.s. gaap measures to disclose additional information to facilitate the comparison of past and present operations , and they are among the indicators management uses as a basis for evaluating the company 's financial performance as well as for forecasting future periods . for these reasons , management believes these non-u.s.gaap measures can be useful operating performance measures to be considered by investors , prospective investors and others . these non-u.s. gaap measures are not intended to replace the presentation of our financial results in accordance with u.s. gaap , and they may not be comparable to other similarly titled measures of other companies . 34 the following table is a reconciliation of reported income ( loss ) from construction operations , net income ( loss ) , and diluted earnings ( loss ) per share under u.s. gaap to income from operations , net income and diluted earnings per share for the years ended december 31 , 2013 and 2012 , excluding discrete items . story_separator_special_tag · market control premium : we compare our implied control premium to the average control premium paid in transactions of companies in the construction industry during the year of evaluation . · sensitivity analysis : we perform a sensitivity analysis to determine the minimum control premium required to recover the book value of the company at the testing date . the minimum control premium required is then compared to the average control premium paid in transactions of companies in the construction industry during the year of evaluation . · impact of low public float and limited trading activity : a significant portion of our common stock is owned by our chairman and ceo . as a result , the public float of our common stock , calculated as the percentage of shares of common stock freely traded by public investors divided by our total shares outstanding , is significantly lower than that of its publicly traded peers . this circumstance does not impact the fair value of the company , however based on its evaluation of third party market data , we believe it does lead to an inherent marketability discount impacting its stock price . impairment assessment inherently involves management judgments as to the assumptions used for projections and to evaluate the impact of market conditions on those assumptions . the key assumptions that we use to estimate the fair value of our reporting units under the income-based approach are as follows : · weighted average cost of capital used to discount the projected cash flows ; · cash flows generated from existing and new work awards ; and · projected operating margins . 38 weighted average cost of capital rates used to discount the projected cash flows are developed via the capital asset pricing model which is primarily based upon market inputs . we use discount rates that management feels are an accurate reflection of the risks associated with the forecasted cash flows of our respective reporting units . to develop the cash flows generated from new work awards and future operating margins , we primarily track prospective work for each of our reporting units on a project-by-project basis as well as the estimated timing of when the work would be bid or prequalified , started and completed . we also give consideration to our relationships with the prospective owners , the pool of competitors that are capable of performing large , complex work , changes in business strategy and the company 's history of success in winning new work in each reporting unit . with regard to operating margins , we give consideration to our historical reporting unit operating margins in the end markets that the prospective work opportunities are most significant , current market trends in recent new work procurement , and changes in business strategy . we also estimate the fair value of our reporting units under a market-based approach by applying industry-comparable multiples of revenues and operating earnings to our reporting units ' projected performance . the conditions and prospects of companies in the construction industry depend on common factors such as overall demand for services . changes in our assumptions or estimates could materially affect the determination of the fair value of a reporting unit . such changes in assumptions could be caused by : · terminations , suspensions , reductions in scope or delays in the start-up of the revenues and cash flows from backlog as well as the prospective work we track ; · reductions in available government , state and local agencies and non-residential private industry funding and spending ; · our ability to effectively compete for new work and maintain and grow market penetration in the regions that the company operates in ; · our ability to successfully control costs , work schedule , and project delivery ; or · broader market conditions , including stock market volatility in the construction industry and its impact on the weighted average cost of capital assumption . on a quarterly basis we consider whether events or changes in circumstances indicate that assets , including goodwill and intangible assets not subject to amortization might be impaired . in conjunction with this analysis , we evaluate whether our current market capitalization is less than our stockholders ' equity and specifically consider ( 1 ) changes in macroeconomic conditions , ( 2 ) changes in general economic conditions in the construction industry including any declines in market-dependent multiples , ( 3 ) cost factors such as increases in raw materials , labor , or other costs that have a negative effect on earnings and cash flows analyses , ( 4 ) a reconciliation of the implied control premium to a current market control premium , ( 5 ) target price assessments by third party analysts and ( 6 ) the impact of current market conditions on its forecast of future cash flows including consideration of specific projects in backlog , pending awards , or large prospect opportunities . we also evaluate our most recent assessment of the fair value for each of our reporting units , considering whether our current forecast of future cash flows is in line with those used in our annual impairment assessment and whether there are any significant changes in trends or any other material assumptions used . as of december 31 , 2013 , we have concluded that we do not have an impairment of our goodwill or our indefinite-lived intangible assets and that the estimated fair value of each reporting unit exceeds its carrying value . see note 4 — goodwill and other intangible assets of the notes to consolidated financial statements in part iv , item 15. exhibits and financial statement schedu le for additional goodwill disclosure . fair value measurements — our investment in auction rate securities ( “ars” ) is measured at fair value utilizing unobservable ( level 3 ) inputs . we have determined the estimated fair values of these securities utilizing an income approach

we had volume increases in nearly all of our service lines , but also experienced pricing declines , which impacted our net revenue margins . truckload margin compression was a challenge to our earnings per share during the second half of the year . in september 2016 , we completed the acquisition of apc logistics ( “ apc ” ) , a privately held company based in australia , for the purpose of expanding our global presence and bringing additional capabilities and expertise to our portfolio . apc provides international freight forwarding and customs brokerage services in australia and new zealand . apc operates in our global forwarding segment . fuel prices declined throughout 2015 , which contributed to slower growth of our total revenues and an increase in our transportation net revenue margins . in 2015 , we completed the acquisition of freightquote.com , inc. ( “ freightquote ” ) , a privately held freight broker based in kansas city , missouri . freightquote provides services throughout north america . the acquisition enhances and brings synergies to our ltl and truckload businesses , and expands our ecommerce capabilities . freightquote operates in our nast segment . 24 we keep our personnel and other operating expenses as variable as possible . compensation is tied to productivity and performance . each office is responsible for its hiring and headcount decisions , based on the needs of their office and to balance personnel resources with business requirements . this helps keep our personnel expense as variable as possible with the business . our office network . our office network is a competitive advantage . building local customer and contract carrier relationships has been an important part of our success , and our worldwide network of offices supports our core strategy of serving customers locally , nationally , and globally . our network of offices helps us penetrate local markets , provides face-to-face service when needed , and enables us to recruit contract carriers . our network also gives us knowledge of local market conditions , which is important in the transportation industry because it is market driven and very dynamic . our people . because we are a service company , our continued success is dependent on our ability to continue to hire and retain talented , productive people , and to properly align our headcount and personnel expense with our business . our headcount increased by 949 employees during 2017 , which includes approximately 325 employees added as a result of the milgram acquisition . compensation programs are performance-based and cash incentives are directly tied to productivity and performance . most network management compensation is dependent on the profitability of their particular office . we believe this makes our employees more service-oriented and focused on driving growth and maximizing office productivity . all of our managers and certain other employees who have significant responsibilities are eligible to receive equity awards because we believe these awards are an effective tool for creating long-term ownership and alignment between employees and our shareholders . our customers . in 2017 , we worked with more than 120,000 customers . we work with a wide variety of companies , ranging in size from fortune 100 companies to small family businesses , in many different industries . our customer base is very diverse and unconcentrated . in 2017 , our top 100 customers represented approximately 35 percent of our total revenues and approximately 23 percent of our net revenues . our largest customer was approximately two percent of our total revenues . our contracted carriers . our contracted carrier base includes motor carriers , railroads ( primarily intermodal service providers ) , air freight , and ocean carriers . in 2017 , we worked with approximately 73,000 transportation providers worldwide , up from approximately 71,000 in 2016 . motor carriers with fewer than 100 tractors transported approximately 82 percent of our truckload shipments in 2017 . in our transportation business , no single contracted carrier represents more than approximately two percent of our contracted carrier capacity . consolidated results of operations the following table summarizes our total revenues by service line ( dollars in thousands ) : replace_table_token_8_th the following table illustrates our net revenue margins by service line : replace_table_token_9_th 25 the following table summarizes our net revenues by service line ( dollars in thousands ) : replace_table_token_10_th ( 1 ) less than truckload ( “ ltl ” ) . the following table represents certain statements of operations data , shown as percentages of our net revenues : replace_table_token_11_th 26 the following table summarizes our results by reportable segment ( dollars in thousands ) : replace_table_token_12_th 2017 compared to 2016 total revenues and direct costs . total transportation revenues increased 15.4 percent to $ 13.5 billion in 2017 from $ 11.7 billion in 2016 . this increase in transportation revenues was driven by volume increases in all of our transportation services and increased customer pricing in most services . total purchased transportation and related services increased 17.9 percent in 2017 to $ 11.3 billion from $ 9.5 billion in 2016 . this increase was due to increased transportation costs and higher volumes in nearly all of our transportation services . total sourcing revenues decreased 5.1 percent to $ 1.37 billion in 2017 from $ 1.44 billion in 2016 . purchased products sourced for resale decreased 5.5 percent in 2017 to $ 1.2 billion from $ 1.3 billion in 2016 . these decreases were primarily due to lower market pricing and change in service mix . net revenues . total transportation net revenues increased 4.2 percent in 2017 to $ 2.25 billion from $ 2.15 billion in 2016 . our transportation net revenue margin decreased to 16.6 percent in 2017 from 18.4 percent in 2016 . this decrease in net revenue margin was driven by increases in transportation costs , including fuel . story_separator_special_tag diluted net income per share increased 2.3 percent to $ 3.59 in 2016 from $ 3.51 in 2015 . 30 segment results of operations-2016 compared to 2015 north american surface transportation . nast total revenues decreased 2.6 percent to $ 8.7 billion in 2016 compared to $ 9.0 billion in 2015. this was primarily due to decreased pricing to our customers , partially offset by increased volumes . nast cost of purchased transportation and related services decreased 2.6 percent to $ 7.2 billion in 2016 from $ 7.4 billion in 2015. this decrease was primarily due to lower transportation costs . total nast net revenues decreased 2.6 percent to $ 1.5 billion in 2016 from $ 1.6 billion in 2015. the decrease was driven by a decline in truckload and intermodal net revenues , partially offset by an increase in ltl net revenues . nast truckload net revenues decreased 4.7 percent in 2016 to $ 1.1 billion from $ 1.2 billion in 2015. nast truckload volumes increased approximately 5.5 percent in 2016 compared to 2015. nast truckload net revenue margin decreased in 2016 compared to 2015 , due primarily to lower customer pricing . nast truckload net revenues accounted for approximately 92 percent of our total north america truckload net revenues in 2016 and 2015. the majority of the remaining north american truckload net revenues is included in robinson fresh . excluding the estimated impacts of the change in fuel prices , our average north america truckload rate per mile charged to our customers decreased approximately 5.0 percent in 2016 compared to 2015. excluding the estimated impacts of the change in fuel prices , our average north america truckload transportation cost per mile decreased approximately 4.5 percent in 2016 compared to 2015. nast ltl net revenues increased 5.1 percent in 2016 to $ 366.1 million from $ 348.3 million in 2015. nast ltl volumes increased approximately 7.5 percent in 2016 compared to 2015 , and net revenue margin increased slightly . nast intermodal net revenues decreased 20.1 percent to $ 31.3 million in 2016 from $ 39.2 million in 2015. this was primarily due to declines in net revenue margin and volumes . during 2016 , intermodal opportunities were negatively impacted by the alternative lower-cost truck market . nast operating expenses increased 0.4 percent in 2016 to $ 849.9 million from $ 846.6 million in 2015. this was primarily due to increases in selling , general , and administrative expenses , partially offset by a decrease in personnel expenses related to incentive plans that are designed to keep expenses variable with changes in net revenues and profitability . the operating expenses of nast and all other segments include allocated corporate expenses . nast operating income decreased 6.1 percent to $ 674.4 million in 2016 from $ 718.3 million in 2015. this was primarily due to a decline in total revenues and net revenues caused by lower customer pricing . global forwarding . global forwarding total revenues decreased 4.0 percent to $ 1.57 billion in 2016 from $ 1.64 billion in 2015. this decrease was primarily related to lower customer pricing across ocean and air services , partially offset by increased volumes in all services . global forwarding costs of transportation and related services decreased 7.6 percent to $ 1.2 billion in 2016 from $ 1.3 billion in 2015. global forwarding net revenues increased 8.8 percent to $ 397.5 million in 2016 from $ 365.5 million in 2015. global forwarding net revenue margin increased due to transportation costs declining at a faster rate than customer pricing . ocean transportation net revenues increased 9.4 percent to $ 244.2 million in 2016 from $ 223.3 million in 2015. this was primarily due to increases in volumes . air net revenues increased 3.9 percent to $ 76.1 million in 2016 from $ 73.3 million in 2015. this was primarily due to increases in volumes offset by pricing declines . customs net revenues increased 14.9 percent to $ 50.5 million in 2016 from $ 44.0 million in 2015. the increase was primarily due to increased transaction volumes . global forwarding operating expenses increased 9.4 percent in 2016 to $ 316.6 million from $ 289.4 million in 2015. this increase was primarily due to an increase in claims expense , and the acquisition of apc on september 30 , 2016. global forwarding operating income increased 6.4 percent in 2016 to $ 80.9 million from $ 76.1 million in 2015. this was primarily due to an increase in net revenues driven by higher volumes , partially offset by increased operating expenses . robinson fresh . robinson fresh total revenues decreased 2.1 percent to $ 2.3 billion in 2016 from $ 2.4 billion in 2015. robinson fresh costs of transportation and related services and purchased products sourced for resale decreased 2.4 percent in to $ 2.1 billion in 2016 from $ 2.2 billion in 2015. robinson fresh net revenues decreased 0.2 percent to $ 234.8 million in 2016 from $ 235.3 million in 2015. this decrease was due to declines in transportation net revenues , partially offset by an increase in sourcing net revenue . robinson fresh net revenues from sourcing services increased 1.4 percent to $ 122.7 million in 2016 from $ 121.0 million in 2015. this increase was primarily due to a case volume increase across a variety of commodities and services , partially offset by a decrease in net revenue per case . robinson fresh net revenues from transportation services decreased 2.0 percent to 31 $ 112.1 million in 2016 from $ 114.4 million in 2015. robinson fresh transportation net revenue margin decreased in 2016 compared to 2015 , due primarily to lower customer pricing . robinson fresh operating expenses increased 3.3 percent to $ 159.0 million in 2016 from $ 154.0 million in 2015. this increase was primarily due to an increase in warehousing expenses . in 2016 , growth in robinson fresh headcount was offset by a decrease in variable compensation . robinson

cash flow from operating activities . we generated $ 384.0 million , $ 529.4 million , and $ 718.3 million of cash flow from operations in 2017 , 2016 , and 2015. the decrease of $ 145.4 million and in cash flow from operations in 2017 from 2016 is primarily the result of increased working capital driven by the impact of increased volumes and a deterioration of our accounts receivable aging . the decrease of $ 188.9 million in cash flow from operations in 2016 from 2015 is primarily the result of increases in accounts receivable , partially offset by an increase in accounts payable . the increases in accounts receivable and accounts payable are primarily the result of increased volumes . additionally , accruals for variable compensation were lower in 2016 compared to 2015. cash used for investing activities . we used $ 107.5 million , $ 313.0 million , and $ 54.4 million of cash for investing activities in 2017 , 2016 , and 2015. our investing activities consist primarily of capital expenditures and cash paid for acquisitions . in 2017 , we paid $ 47.3 million for the acquisition of milgram . in 2016 , we paid $ 220.2 million for the acquisition of apc . we used $ 57.9 million , $ 91.4 million , and $ 44.6 million of cash for capital expenditures in 2017 , 2016 , and 2015. we spent $ 29.0 million , $ 25.0 million , and $ 26.0 million in 2017 , 2016 , and 2015 primarily for annual investments in information technology equipment to support our operating systems , including the purchase and development of software . these information technology investments are intended to improve efficiencies and help grow the business . additionally , in 2016 , we completed construction of a second data recovery center . the cost of this data recovery center was $ 20.0 million , $ 19.3 million of which was spent in 2016. we anticipate capital expenditures in 2018 to be approximately $ 60 to $ 70 million . 32 cash used for financing activities . we used $ 202.1 million , $ 127.3

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 operating activities . we generated $ 384.0 million , $ 529.4 million , and $ 718.3 million of cash flow from operations in 2017 , 2016 , and 2015. the decrease of $ 145.4 million and in cash flow from operations in 2017 from 2016 is primarily the result of increased working capital driven by the impact of increased volumes and a deterioration of our accounts receivable aging . the decrease of $ 188.9 million in cash flow from operations in 2016 from 2015 is primarily the result of increases in accounts receivable , partially offset by an increase in accounts payable . the increases in accounts receivable and accounts payable are primarily the result of increased volumes . additionally , accruals for variable compensation were lower in 2016 compared to 2015. cash used for investing activities . we used $ 107.5 million , $ 313.0 million , and $ 54.4 million of cash for investing activities in 2017 , 2016 , and 2015. our investing activities consist primarily of capital expenditures and cash paid for acquisitions . in 2017 , we paid $ 47.3 million for the acquisition of milgram . in 2016 , we paid $ 220.2 million for the acquisition of apc . we used $ 57.9 million , $ 91.4 million , and $ 44.6 million of cash for capital expenditures in 2017 , 2016 , and 2015. we spent $ 29.0 million , $ 25.0 million , and $ 26.0 million in 2017 , 2016 , and 2015 primarily for annual investments in information technology equipment to support our operating systems , including the purchase and development of software . these information technology investments are intended to improve efficiencies and help grow the business . additionally , in 2016 , we completed construction of a second data recovery center . the cost of this data recovery center was $ 20.0 million , $ 19.3 million of which was spent in 2016. we anticipate capital expenditures in 2018 to be approximately $ 60 to $ 70 million . 32 cash used for financing activities . we used $ 202.1 million , $ 127.3 ``` Suspicious Activity Report : we had volume increases in nearly all of our service lines , but also experienced pricing declines , which impacted our net revenue margins . truckload margin compression was a challenge to our earnings per share during the second half of the year . in september 2016 , we completed the acquisition of apc logistics ( “ apc ” ) , a privately held company based in australia , for the purpose of expanding our global presence and bringing additional capabilities and expertise to our portfolio . apc provides international freight forwarding and customs brokerage services in australia and new zealand . apc operates in our global forwarding segment . fuel prices declined throughout 2015 , which contributed to slower growth of our total revenues and an increase in our transportation net revenue margins . in 2015 , we completed the acquisition of freightquote.com , inc. ( “ freightquote ” ) , a privately held freight broker based in kansas city , missouri . freightquote provides services throughout north america . the acquisition enhances and brings synergies to our ltl and truckload businesses , and expands our ecommerce capabilities . freightquote operates in our nast segment . 24 we keep our personnel and other operating expenses as variable as possible . compensation is tied to productivity and performance . each office is responsible for its hiring and headcount decisions , based on the needs of their office and to balance personnel resources with business requirements . this helps keep our personnel expense as variable as possible with the business . our office network . our office network is a competitive advantage . building local customer and contract carrier relationships has been an important part of our success , and our worldwide network of offices supports our core strategy of serving customers locally , nationally , and globally . our network of offices helps us penetrate local markets , provides face-to-face service when needed , and enables us to recruit contract carriers . our network also gives us knowledge of local market conditions , which is important in the transportation industry because it is market driven and very dynamic . our people . because we are a service company , our continued success is dependent on our ability to continue to hire and retain talented , productive people , and to properly align our headcount and personnel expense with our business . our headcount increased by 949 employees during 2017 , which includes approximately 325 employees added as a result of the milgram acquisition . compensation programs are performance-based and cash incentives are directly tied to productivity and performance . most network management compensation is dependent on the profitability of their particular office . we believe this makes our employees more service-oriented and focused on driving growth and maximizing office productivity . all of our managers and certain other employees who have significant responsibilities are eligible to receive equity awards because we believe these awards are an effective tool for creating long-term ownership and alignment between employees and our shareholders . our customers . in 2017 , we worked with more than 120,000 customers . we work with a wide variety of companies , ranging in size from fortune 100 companies to small family businesses , in many different industries . our customer base is very diverse and unconcentrated . in 2017 , our top 100 customers represented approximately 35 percent of our total revenues and approximately 23 percent of our net revenues . our largest customer was approximately two percent of our total revenues . our contracted carriers . our contracted carrier base includes motor carriers , railroads ( primarily intermodal service providers ) , air freight , and ocean carriers . in 2017 , we worked with approximately 73,000 transportation providers worldwide , up from approximately 71,000 in 2016 . motor carriers with fewer than 100 tractors transported approximately 82 percent of our truckload shipments in 2017 . in our transportation business , no single contracted carrier represents more than approximately two percent of our contracted carrier capacity . consolidated results of operations the following table summarizes our total revenues by service line ( dollars in thousands ) : replace_table_token_8_th the following table illustrates our net revenue margins by service line : replace_table_token_9_th 25 the following table summarizes our net revenues by service line ( dollars in thousands ) : replace_table_token_10_th ( 1 ) less than truckload ( “ ltl ” ) . the following table represents certain statements of operations data , shown as percentages of our net revenues : replace_table_token_11_th 26 the following table summarizes our results by reportable segment ( dollars in thousands ) : replace_table_token_12_th 2017 compared to 2016 total revenues and direct costs . total transportation revenues increased 15.4 percent to $ 13.5 billion in 2017 from $ 11.7 billion in 2016 . this increase in transportation revenues was driven by volume increases in all of our transportation services and increased customer pricing in most services . total purchased transportation and related services increased 17.9 percent in 2017 to $ 11.3 billion from $ 9.5 billion in 2016 . this increase was due to increased transportation costs and higher volumes in nearly all of our transportation services . total sourcing revenues decreased 5.1 percent to $ 1.37 billion in 2017 from $ 1.44 billion in 2016 . purchased products sourced for resale decreased 5.5 percent in 2017 to $ 1.2 billion from $ 1.3 billion in 2016 . these decreases were primarily due to lower market pricing and change in service mix . net revenues . total transportation net revenues increased 4.2 percent in 2017 to $ 2.25 billion from $ 2.15 billion in 2016 . our transportation net revenue margin decreased to 16.6 percent in 2017 from 18.4 percent in 2016 . this decrease in net revenue margin was driven by increases in transportation costs , including fuel . story_separator_special_tag diluted net income per share increased 2.3 percent to $ 3.59 in 2016 from $ 3.51 in 2015 . 30 segment results of operations-2016 compared to 2015 north american surface transportation . nast total revenues decreased 2.6 percent to $ 8.7 billion in 2016 compared to $ 9.0 billion in 2015. this was primarily due to decreased pricing to our customers , partially offset by increased volumes . nast cost of purchased transportation and related services decreased 2.6 percent to $ 7.2 billion in 2016 from $ 7.4 billion in 2015. this decrease was primarily due to lower transportation costs . total nast net revenues decreased 2.6 percent to $ 1.5 billion in 2016 from $ 1.6 billion in 2015. the decrease was driven by a decline in truckload and intermodal net revenues , partially offset by an increase in ltl net revenues . nast truckload net revenues decreased 4.7 percent in 2016 to $ 1.1 billion from $ 1.2 billion in 2015. nast truckload volumes increased approximately 5.5 percent in 2016 compared to 2015. nast truckload net revenue margin decreased in 2016 compared to 2015 , due primarily to lower customer pricing . nast truckload net revenues accounted for approximately 92 percent of our total north america truckload net revenues in 2016 and 2015. the majority of the remaining north american truckload net revenues is included in robinson fresh . excluding the estimated impacts of the change in fuel prices , our average north america truckload rate per mile charged to our customers decreased approximately 5.0 percent in 2016 compared to 2015. excluding the estimated impacts of the change in fuel prices , our average north america truckload transportation cost per mile decreased approximately 4.5 percent in 2016 compared to 2015. nast ltl net revenues increased 5.1 percent in 2016 to $ 366.1 million from $ 348.3 million in 2015. nast ltl volumes increased approximately 7.5 percent in 2016 compared to 2015 , and net revenue margin increased slightly . nast intermodal net revenues decreased 20.1 percent to $ 31.3 million in 2016 from $ 39.2 million in 2015. this was primarily due to declines in net revenue margin and volumes . during 2016 , intermodal opportunities were negatively impacted by the alternative lower-cost truck market . nast operating expenses increased 0.4 percent in 2016 to $ 849.9 million from $ 846.6 million in 2015. this was primarily due to increases in selling , general , and administrative expenses , partially offset by a decrease in personnel expenses related to incentive plans that are designed to keep expenses variable with changes in net revenues and profitability . the operating expenses of nast and all other segments include allocated corporate expenses . nast operating income decreased 6.1 percent to $ 674.4 million in 2016 from $ 718.3 million in 2015. this was primarily due to a decline in total revenues and net revenues caused by lower customer pricing . global forwarding . global forwarding total revenues decreased 4.0 percent to $ 1.57 billion in 2016 from $ 1.64 billion in 2015. this decrease was primarily related to lower customer pricing across ocean and air services , partially offset by increased volumes in all services . global forwarding costs of transportation and related services decreased 7.6 percent to $ 1.2 billion in 2016 from $ 1.3 billion in 2015. global forwarding net revenues increased 8.8 percent to $ 397.5 million in 2016 from $ 365.5 million in 2015. global forwarding net revenue margin increased due to transportation costs declining at a faster rate than customer pricing . ocean transportation net revenues increased 9.4 percent to $ 244.2 million in 2016 from $ 223.3 million in 2015. this was primarily due to increases in volumes . air net revenues increased 3.9 percent to $ 76.1 million in 2016 from $ 73.3 million in 2015. this was primarily due to increases in volumes offset by pricing declines . customs net revenues increased 14.9 percent to $ 50.5 million in 2016 from $ 44.0 million in 2015. the increase was primarily due to increased transaction volumes . global forwarding operating expenses increased 9.4 percent in 2016 to $ 316.6 million from $ 289.4 million in 2015. this increase was primarily due to an increase in claims expense , and the acquisition of apc on september 30 , 2016. global forwarding operating income increased 6.4 percent in 2016 to $ 80.9 million from $ 76.1 million in 2015. this was primarily due to an increase in net revenues driven by higher volumes , partially offset by increased operating expenses . robinson fresh . robinson fresh total revenues decreased 2.1 percent to $ 2.3 billion in 2016 from $ 2.4 billion in 2015. robinson fresh costs of transportation and related services and purchased products sourced for resale decreased 2.4 percent in to $ 2.1 billion in 2016 from $ 2.2 billion in 2015. robinson fresh net revenues decreased 0.2 percent to $ 234.8 million in 2016 from $ 235.3 million in 2015. this decrease was due to declines in transportation net revenues , partially offset by an increase in sourcing net revenue . robinson fresh net revenues from sourcing services increased 1.4 percent to $ 122.7 million in 2016 from $ 121.0 million in 2015. this increase was primarily due to a case volume increase across a variety of commodities and services , partially offset by a decrease in net revenue per case . robinson fresh net revenues from transportation services decreased 2.0 percent to 31 $ 112.1 million in 2016 from $ 114.4 million in 2015. robinson fresh transportation net revenue margin decreased in 2016 compared to 2015 , due primarily to lower customer pricing . robinson fresh operating expenses increased 3.3 percent to $ 159.0 million in 2016 from $ 154.0 million in 2015. this increase was primarily due to an increase in warehousing expenses . in 2016 , growth in robinson fresh headcount was offset by a decrease in variable compensation . robinson

our net sales by market sector for fiscal 2014 , 2013 and 2012 were as follows ( in millions ) : replace_table_token_5_th networking/communications . net sales for fiscal 2014 in the networking/communications sector decreased $ 63.8 million , or 7.7 percent , as compared to fiscal 2013. the change was primarily the result of a $ 282.6 million decrease in net sales to juniper , related to its disengagement , partially offset by a $ 230.3 million increase in sales related to two key customers in this sector primarily resulting from new program ramps . net sales for fiscal 2013 in the networking/communications sector decreased $ 77.3 million as compared to fiscal 2012. the change was primarily the result of an $ 85.3 million decrease in net sales to juniper , related to its disengagement , partially offset by increased sales to existing customers in this sector as well as program ramps with new customers . healthcare/life sciences . net sales for fiscal 2014 in the healthcare/life sciences sector increased $ 134.1 million , or 23.8 percent , as compared to fiscal 2013. the increase was primarily due to $ 89.3 million of new program ramps and increased end-market demand for two key customers in this sector and increased end-market demand and new program ramps across several other customers in this sector . net sales for fiscal 2013 in the healthcare/life sciences sector increased $ 68.8 million as compared to fiscal 2012. the increase was primarily due to market share gains and new program ramps with existing customers . industrial/commercial . net sales for fiscal 2014 in the industrial/commercial sector increased $ 32.5 million , or 5.9 percent , as compared to fiscal 2013. the increase was primarily the result of the expansion of current business with one of our larger customers in the sector , which accounted for $ 30.7 million of the increased net sales as compared to the prior year . net sales for fiscal 2013 in the industrial/commercial sector decreased $ 119.8 million as compared to fiscal 2012. the decrease was primarily a result of decreased end-market demand for one of our larger customers in the sector , which accounted for $ 113.6 million of the decreased net sales as compared to the prior year . defense/security/aerospace . net sales for fiscal 2014 in the defense/security/aerospace sector increased $ 47.4 million , or 16.5 percent , as compared to fiscal 2013. the increase was primarily due to $ 37.5 million resulting from new program ramps and increased end-market demand for one of our larger customers in the sector . net sales for fiscal 2013 in the defense/security/aerospace sector increased $ 49.6 million as compared to fiscal 2012. the increase was the result of new program ramps as well as increased end-market demand for the products we produce for our customers . 26 as a percentage of consolidated net sales , net sales attributable to customers representing 10.0 percent or more of consolidated net sales as well as the percentage of net sales attributable to our ten largest customers for fiscal 2014 , 2013 and 2012 , were as follows : 2014 2013 2012 arris group , inc. ( `` arris `` ) 12.5 % * * general electric company ( `` ge `` ) 11.2 % * * juniper networks , inc. ( `` juniper `` ) * 12.8 % 16.0 % top 10 customers 55.1 % 54.5 % 60.0 % * net sales attributable to the customer were less than 10.0 percent of consolidated net sales for the period . gross profit . gross profit for fiscal 2014 increased $ 12.4 million , or 5.8 percent , as compared to fiscal 2013. overall gross margin decreased to 9.5 percent from 9.6 percent . gross profit increased $ 34.2 million primarily as a result of increased sales . this favorable effect was largely offset by a $ 21.9 million increase in fixed costs due to our investment in a new manufacturing facility in neenah , wisconsin , the ramp up of new business in the amer region , and increased depreciation and personnel expenses with our new manufacturing facility in oradea , romania . gross profit for fiscal 2013 decreased $ 6.7 million , or 3.1 percent , as compared to fiscal 2012 primarily due to decreased net sales , increased fixed expenses related to site investments in penang , malaysia , xiamen , china , and oradea , romania , and unfavorable changes in customer mix . the decrease was partially offset by the sale of certain inventory that had previously been written down . a slightly larger percentage decrease in revenue as compared to the decrease in gross profit for fiscal 2013 led to an increase in gross margin to 9.6 percent for fiscal 2013 from 9.5 percent for fiscal 2012. operating income . operating income for fiscal 2014 increased $ 4.0 million as compared to fiscal 2013. a $ 2.9 million decrease in selling and administrative expenses ( `` s & a `` ) as compared to prior year and the previously discussed increase to gross profit were partially offset by $ 11.3 million of restructuring and impairment charges primarily related to the consolidation of facilities in the fox cities , wisconsin , and the relocation of manufacturing operations from juarez , mexico , to guadalajara , mexico . as a result , operating margin decreased to 4.2 percent for fiscal 2014 from 4.3 percent for fiscal 2013. operating income for fiscal 2013 decreased $ 7.5 million as compared to fiscal 2012. the operating income decrease reflected the $ 6.7 million decrease in gross profit described above as well as a $ 0.8 million increase in s & a expenses . story_separator_special_tag the decrease was primarily attributable to the increase in net sales , which resulted in higher inventory and accounts receivable balances at the end of fiscal 2014. additionally , increases in forecasted net sales for the first quarter of fiscal 2015 relative to the first quarter of fiscal 2014 also resulted in higher inventory and accounts payable balances at the end of fiscal 2014. cash flows provided by operating activities were $ 207.6 million for fiscal 2013 , as compared to cash flows provided by operating activities of $ 157.5 million for fiscal 2012 . cash flows provided by operating activities increased due to overall improved working capital management . the following table provides a summary of cash cycle days for the periods indicated ( in days ) : replace_table_token_11_th we calculate days in accounts receivable as accounts receivable for the respective quarter divided by annualized sales for the respective quarter by day . we calculate days in inventory , accounts payable , and cash deposits as each balance sheet line item for the respective quarter divided by annualized cost of sales for the respective quarter by day . we calculate annualized cash cycle as the sum of days in accounts receivable and days in inventory , less days in accounts payable and days in cash deposits . 31 days in accounts receivable for the three months ended september 27 , 2014 decreased five days compared to the three months ended september 28 , 2013. the decrease is primarily attributable to new product ramps related to a key customer with shorter payment terms than our other customers . days in inventory for the three months ended september 27 , 2014 increased eight days compared to the three months ended september 28 , 2013. the increase is primarily attributable to the timing of inventory build-up to support forecasted net sales . days in accounts payable for the three months ended september 27 , 2014 increased four days compared to the three months ended september 28 , 2013. the improvement was primarily attributable to increased purchases from suppliers with more favorable terms to support increases in net sales . days in cash deposits for the three months ended september 27 , 2014 decreased four days compared to the three months ended september 28 , 2013. the decrease was primarily attributable to the return of approximately $ 11.0 million of excess deposit funds to juniper in the first quarter of fiscal 2014. as of september 27 , 2014 story_separator_special_tag credit facility and a $ 90.0 million term loan ( balance of $ 75.0 million as of may 15 , 2014 ) , was converted into a $ 235.0 million revolving credit facility , and its termination date was extended from may 15 , 2017 to may 15 , 2019. the credit facility may potentially be increased by $ 100.0 million to $ 335.0 million generally by mutual agreement of the company and the lenders , subject to certain customary conditions . quarterly principal repayments on the former term loan of $ 3.8 million per quarter ended on march 28 , 2013. as of september 27 , 2014 , the company had $ 75.0 million of revolving borrowings outstanding under the credit facility . during fiscal 2014 , the company borrowed and repaid $ 281.0 million of revolving borrowings under the credit facility . the financial covenants ( as defined under the credit agreement ) require that the company maintain , as of each fiscal quarter end , a maximum total leverage ratio and a minimum interest coverage ratio . as of september 27 , 2014 , the company was in compliance with all financial covenants of the credit agreement . borrowings under the credit facility , at the company 's option , bear interest at a defined base rate or the libor rate plus , in each case , an applicable margin based upon the company 's leverage ratio as defined in the credit agreement . rates would increase upon negative changes in specified company financial metrics and would decrease to no less than libor plus 1.000 % or base rate plus 0.000 % upon reduction in the current total leverage ratio . as of september 27 , 2014 , the company had a borrowing rate of libor plus 1.125 % . as of september 27 , 2014 , all outstanding debt under the credit facility is effectively at a fixed interest rate as a result of the interest rate swap contract discussed in note 5 , `` derivatives and fair value measurements , `` in notes to consolidated financial statements . there is no floating rate debt outstanding under the credit facility as of september 27 , 2014. the company is required to pay an annual commitment fee on the unused revolver credit commitment based on the company 's leverage ratio ; the fee was 0.175 % as of september 27 , 2014. the company also has outstanding 5.20 % senior notes , due on june 15 , 2018 ( the `` notes `` ) ; $ 175.0 million principal of the notes was outstanding as of both september 27 , 2014 and september 28 , 2013 . the credit facility and note purchase agreement allow for the future payment of cash dividends or the future repurchases of shares provided that no event of default ( including any failure to comply with a financial covenant ) exists at the time of , or would be caused by , the dividend payment or the share repurchases . we have not paid cash dividends in the past and do not currently anticipate paying them in the future . however , we evaluate from time to time potential uses of excess cash , which in the future may include share repurchases above those already authorized , a special dividend or recurring dividends . based on current expectations , we believe that our projected cash flows from operations , available cash and cash equivalents , potential

cash cycle days increased three days compared to september 28 , 2013 due to the factors discussed above . free cash flow . free cash flow ( “ fcf ” ) , which we define as cash flow provided by ( used in ) operations less capital expenditures , was $ 23.1 million for fiscal 2014 , as compared to $ 99.5 million for fiscal 2013. the decrease of $ 76.4 million from fiscal 2013 was primarily attributable to the decrease in cash provided by operating activities , partially offset by a reduction in capital expenditures , which is discussed below . non-gaap financial measures , including fcf , are used for internal management assessments because such measures provide additional insight into ongoing financial performance . in particular , we provide fcf because we believe it offers insight into the metrics that are driving management decisions . we view fcf as an important financial metric as it demonstrates our ability to generate cash and allows us to pursue opportunities that enhance shareholder value . fcf is a non-gaap financial measure which should be considered in addition to , not as a substitute for , measures of our financial performance prepared in accordance with u.s. gaap . the following table provides a reconciliation of fcf to our financial statements that were prepared using gaap ( in millions ) : replace_table_token_12_th investing activities . cash flows used in investing activities were $ 62.6 million for fiscal 2014 as compared to cash flows used in investing activities of $ 107.2 million for fiscal 2013 .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```cash cycle days increased three days compared to september 28 , 2013 due to the factors discussed above . free cash flow . free cash flow ( “ fcf ” ) , which we define as cash flow provided by ( used in ) operations less capital expenditures , was $ 23.1 million for fiscal 2014 , as compared to $ 99.5 million for fiscal 2013. the decrease of $ 76.4 million from fiscal 2013 was primarily attributable to the decrease in cash provided by operating activities , partially offset by a reduction in capital expenditures , which is discussed below . non-gaap financial measures , including fcf , are used for internal management assessments because such measures provide additional insight into ongoing financial performance . in particular , we provide fcf because we believe it offers insight into the metrics that are driving management decisions . we view fcf as an important financial metric as it demonstrates our ability to generate cash and allows us to pursue opportunities that enhance shareholder value . fcf is a non-gaap financial measure which should be considered in addition to , not as a substitute for , measures of our financial performance prepared in accordance with u.s. gaap . the following table provides a reconciliation of fcf to our financial statements that were prepared using gaap ( in millions ) : replace_table_token_12_th investing activities . cash flows used in investing activities were $ 62.6 million for fiscal 2014 as compared to cash flows used in investing activities of $ 107.2 million for fiscal 2013 . ``` Suspicious Activity Report : our net sales by market sector for fiscal 2014 , 2013 and 2012 were as follows ( in millions ) : replace_table_token_5_th networking/communications . net sales for fiscal 2014 in the networking/communications sector decreased $ 63.8 million , or 7.7 percent , as compared to fiscal 2013. the change was primarily the result of a $ 282.6 million decrease in net sales to juniper , related to its disengagement , partially offset by a $ 230.3 million increase in sales related to two key customers in this sector primarily resulting from new program ramps . net sales for fiscal 2013 in the networking/communications sector decreased $ 77.3 million as compared to fiscal 2012. the change was primarily the result of an $ 85.3 million decrease in net sales to juniper , related to its disengagement , partially offset by increased sales to existing customers in this sector as well as program ramps with new customers . healthcare/life sciences . net sales for fiscal 2014 in the healthcare/life sciences sector increased $ 134.1 million , or 23.8 percent , as compared to fiscal 2013. the increase was primarily due to $ 89.3 million of new program ramps and increased end-market demand for two key customers in this sector and increased end-market demand and new program ramps across several other customers in this sector . net sales for fiscal 2013 in the healthcare/life sciences sector increased $ 68.8 million as compared to fiscal 2012. the increase was primarily due to market share gains and new program ramps with existing customers . industrial/commercial . net sales for fiscal 2014 in the industrial/commercial sector increased $ 32.5 million , or 5.9 percent , as compared to fiscal 2013. the increase was primarily the result of the expansion of current business with one of our larger customers in the sector , which accounted for $ 30.7 million of the increased net sales as compared to the prior year . net sales for fiscal 2013 in the industrial/commercial sector decreased $ 119.8 million as compared to fiscal 2012. the decrease was primarily a result of decreased end-market demand for one of our larger customers in the sector , which accounted for $ 113.6 million of the decreased net sales as compared to the prior year . defense/security/aerospace . net sales for fiscal 2014 in the defense/security/aerospace sector increased $ 47.4 million , or 16.5 percent , as compared to fiscal 2013. the increase was primarily due to $ 37.5 million resulting from new program ramps and increased end-market demand for one of our larger customers in the sector . net sales for fiscal 2013 in the defense/security/aerospace sector increased $ 49.6 million as compared to fiscal 2012. the increase was the result of new program ramps as well as increased end-market demand for the products we produce for our customers . 26 as a percentage of consolidated net sales , net sales attributable to customers representing 10.0 percent or more of consolidated net sales as well as the percentage of net sales attributable to our ten largest customers for fiscal 2014 , 2013 and 2012 , were as follows : 2014 2013 2012 arris group , inc. ( `` arris `` ) 12.5 % * * general electric company ( `` ge `` ) 11.2 % * * juniper networks , inc. ( `` juniper `` ) * 12.8 % 16.0 % top 10 customers 55.1 % 54.5 % 60.0 % * net sales attributable to the customer were less than 10.0 percent of consolidated net sales for the period . gross profit . gross profit for fiscal 2014 increased $ 12.4 million , or 5.8 percent , as compared to fiscal 2013. overall gross margin decreased to 9.5 percent from 9.6 percent . gross profit increased $ 34.2 million primarily as a result of increased sales . this favorable effect was largely offset by a $ 21.9 million increase in fixed costs due to our investment in a new manufacturing facility in neenah , wisconsin , the ramp up of new business in the amer region , and increased depreciation and personnel expenses with our new manufacturing facility in oradea , romania . gross profit for fiscal 2013 decreased $ 6.7 million , or 3.1 percent , as compared to fiscal 2012 primarily due to decreased net sales , increased fixed expenses related to site investments in penang , malaysia , xiamen , china , and oradea , romania , and unfavorable changes in customer mix . the decrease was partially offset by the sale of certain inventory that had previously been written down . a slightly larger percentage decrease in revenue as compared to the decrease in gross profit for fiscal 2013 led to an increase in gross margin to 9.6 percent for fiscal 2013 from 9.5 percent for fiscal 2012. operating income . operating income for fiscal 2014 increased $ 4.0 million as compared to fiscal 2013. a $ 2.9 million decrease in selling and administrative expenses ( `` s & a `` ) as compared to prior year and the previously discussed increase to gross profit were partially offset by $ 11.3 million of restructuring and impairment charges primarily related to the consolidation of facilities in the fox cities , wisconsin , and the relocation of manufacturing operations from juarez , mexico , to guadalajara , mexico . as a result , operating margin decreased to 4.2 percent for fiscal 2014 from 4.3 percent for fiscal 2013. operating income for fiscal 2013 decreased $ 7.5 million as compared to fiscal 2012. the operating income decrease reflected the $ 6.7 million decrease in gross profit described above as well as a $ 0.8 million increase in s & a expenses . story_separator_special_tag the decrease was primarily attributable to the increase in net sales , which resulted in higher inventory and accounts receivable balances at the end of fiscal 2014. additionally , increases in forecasted net sales for the first quarter of fiscal 2015 relative to the first quarter of fiscal 2014 also resulted in higher inventory and accounts payable balances at the end of fiscal 2014. cash flows provided by operating activities were $ 207.6 million for fiscal 2013 , as compared to cash flows provided by operating activities of $ 157.5 million for fiscal 2012 . cash flows provided by operating activities increased due to overall improved working capital management . the following table provides a summary of cash cycle days for the periods indicated ( in days ) : replace_table_token_11_th we calculate days in accounts receivable as accounts receivable for the respective quarter divided by annualized sales for the respective quarter by day . we calculate days in inventory , accounts payable , and cash deposits as each balance sheet line item for the respective quarter divided by annualized cost of sales for the respective quarter by day . we calculate annualized cash cycle as the sum of days in accounts receivable and days in inventory , less days in accounts payable and days in cash deposits . 31 days in accounts receivable for the three months ended september 27 , 2014 decreased five days compared to the three months ended september 28 , 2013. the decrease is primarily attributable to new product ramps related to a key customer with shorter payment terms than our other customers . days in inventory for the three months ended september 27 , 2014 increased eight days compared to the three months ended september 28 , 2013. the increase is primarily attributable to the timing of inventory build-up to support forecasted net sales . days in accounts payable for the three months ended september 27 , 2014 increased four days compared to the three months ended september 28 , 2013. the improvement was primarily attributable to increased purchases from suppliers with more favorable terms to support increases in net sales . days in cash deposits for the three months ended september 27 , 2014 decreased four days compared to the three months ended september 28 , 2013. the decrease was primarily attributable to the return of approximately $ 11.0 million of excess deposit funds to juniper in the first quarter of fiscal 2014. as of september 27 , 2014 story_separator_special_tag credit facility and a $ 90.0 million term loan ( balance of $ 75.0 million as of may 15 , 2014 ) , was converted into a $ 235.0 million revolving credit facility , and its termination date was extended from may 15 , 2017 to may 15 , 2019. the credit facility may potentially be increased by $ 100.0 million to $ 335.0 million generally by mutual agreement of the company and the lenders , subject to certain customary conditions . quarterly principal repayments on the former term loan of $ 3.8 million per quarter ended on march 28 , 2013. as of september 27 , 2014 , the company had $ 75.0 million of revolving borrowings outstanding under the credit facility . during fiscal 2014 , the company borrowed and repaid $ 281.0 million of revolving borrowings under the credit facility . the financial covenants ( as defined under the credit agreement ) require that the company maintain , as of each fiscal quarter end , a maximum total leverage ratio and a minimum interest coverage ratio . as of september 27 , 2014 , the company was in compliance with all financial covenants of the credit agreement . borrowings under the credit facility , at the company 's option , bear interest at a defined base rate or the libor rate plus , in each case , an applicable margin based upon the company 's leverage ratio as defined in the credit agreement . rates would increase upon negative changes in specified company financial metrics and would decrease to no less than libor plus 1.000 % or base rate plus 0.000 % upon reduction in the current total leverage ratio . as of september 27 , 2014 , the company had a borrowing rate of libor plus 1.125 % . as of september 27 , 2014 , all outstanding debt under the credit facility is effectively at a fixed interest rate as a result of the interest rate swap contract discussed in note 5 , `` derivatives and fair value measurements , `` in notes to consolidated financial statements . there is no floating rate debt outstanding under the credit facility as of september 27 , 2014. the company is required to pay an annual commitment fee on the unused revolver credit commitment based on the company 's leverage ratio ; the fee was 0.175 % as of september 27 , 2014. the company also has outstanding 5.20 % senior notes , due on june 15 , 2018 ( the `` notes `` ) ; $ 175.0 million principal of the notes was outstanding as of both september 27 , 2014 and september 28 , 2013 . the credit facility and note purchase agreement allow for the future payment of cash dividends or the future repurchases of shares provided that no event of default ( including any failure to comply with a financial covenant ) exists at the time of , or would be caused by , the dividend payment or the share repurchases . we have not paid cash dividends in the past and do not currently anticipate paying them in the future . however , we evaluate from time to time potential uses of excess cash , which in the future may include share repurchases above those already authorized , a special dividend or recurring dividends . based on current expectations , we believe that our projected cash flows from operations , available cash and cash equivalents , potential

the taxact business 's basic federal tax preparation online software service is `` free for everyone , `` meaning that any taxpayer can use the services to e-file his or her federal income tax return without paying for upgraded services and may do so for every form that the irs allows to be e-filed . this free offer differentiates taxact 's offerings from many of its competitors who limit their free software and or services offerings to certain categories of customers or certain forms . the taxact business generates revenue from a percentage of these `` free `` users who purchase a state form or choose to upgrade for a fee to the deluxe or ultimate offering , which includes additional support , tools , or state forms in the 30 case of the ultimate offering . in addition , revenue is generated from the sale of ancillary services , which include , among other things , tax preparation support services , data archive services , bank services ( including reloadable pre-paid debit card services ) , and additional e-filing services . taxact is the recognized value player in the digital do-it-yourself space , offering comparable software and or services at a lower cost to the end user compared to larger competitors . this , coupled with its `` free for everyone `` offer , provides taxact a valuable marketing position . taxact 's professional tax preparer software allows professional tax preparers to file individual returns for their clients . revenue from professional tax preparers historically has constituted a relatively small percentage of the taxact business 's overall revenue and requires relatively modest incremental development costs as the professional tax preparer software is substantially similar to the consumer-facing software and online service . on october 4 , 2013 , taxact acquired balance financial , a provider of web and mobile-based financial management software through its website www.balancefinancial.com . e-commerce our e-commerce business , monoprice , is an online retailer of self-branded electronics and accessories to both consumers and businesses . monoprice offers its products for sale through the www.monoprice.com website , where the majority of our e-commerce revenue is derived , and fulfills those orders from our warehouse in rancho cucamonga , california . we also sell our products through reseller and marketplace agreements . monoprice has built a well-respected brand by delivering products with quality on par with well-known national brands , selling these products at prices far below the prices for those well-known brands , and providing top-tier service and rapid product delivery . the monoprice website showcases 14 product categories and over 6,900 individual products . monoprice has developed an efficient product cost structure that is enabled by a direct import supply chain solution that eliminates traditional layers of mark-ups imposed by intermediaries . consumers are able to access and purchase products 24 hours a day from the convenience of a computer or a mobile device . monoprice 's team of customer service representatives assists customers primarily by online chat or email . nearly all sales are to customers located in the united states . acquisitions hsw : on may 30 , 2014 , infospace acquired hsw for $ 44.9 million in cash . hsw is included in our financial results beginning on may 30 , 2014 , the acquisition date . monoprice : on august 22 , 2013 , we acquired monoprice for $ 182.9 million in cash . monoprice is included in our financial results beginning on august 22 , 2013 , the acquisition date . accordingly , the results discussed below were impacted by the timing of this acquisition , in that 2014 included a full year of monoprice results as compared to a partial year of results in 2013. taxact : on january 31 , 2012 , we acquired taxact for $ 287.5 million in cash . taxact is included in our financial results beginning on january 31 , 2012 , the acquisition date . accordingly , the results discussed below were impacted by the timing of this acquisition , in that 2014 and 2013 included twelve months of taxact results while 2012 included eleven months . in addition , on october 4 , 2013 , taxact acquired balance financial . seasonality our tax preparation segment is highly seasonal , with the significant majority of its annual revenue earned in the first four months of our fiscal year . during the third and fourth quarters , the tax preparation segment typically reports losses because revenue from the segment is minimal while core operating expenses continue at relatively consistent levels . revenue from our e-commerce segment also is seasonal , with revenues historically being the lowest in the second quarter , a period that does not include consumer back-to-school or holiday-related spending . comparability we revised certain amounts for the year ended december 31 , 2012 from the amounts previously reported in that period 's annual report on form 10-k. we reclassified credit card fees previously reported in `` services cost of revenue `` to `` “ sales and marketing `` expense . the reclassification had no effect on our reported revenues , operating income , or cash flows for the year ended december 31 , 2012. refer to `` note 1 : the company and basis of presentation `` of the notes to consolidated financial statements in part ii item 8 of this report . 31 results of operations summary replace_table_token_4_th year ended december 31 , 2014 compared with year ended december 31 , 2013 total revenues increased approximately $ 6.7 million due to increases of $ 96.4 million in product revenue from the monoprice business that we acquired in august 2013 and $ 12.5 million in revenue related to our tax preparation business , offset by a decrease of $ 102.2 million in revenue related to our search and content business . story_separator_special_tag million increase in revenue , offset by an increase of $ 18.6 million in operating expenses that primarily were related to the timing of the taxact acquisition . the increase in operating expenses was amplified further by the fact that a relatively high percentage of tax season advertising occurs in january , a month that was included in 2013 results but not in 2012 results due to the timing of the taxact acquisition . in addition , personnel expenses increased mainly due to higher headcount supporting sales and marketing and general and administrative functions , while data center expenses grew primarily to support our online service offerings . these operating expense increases were offset by a $ 2.4 million decrease in tax preparation services cost of revenue primarily related to decreased bank service fees on our bank card services and royalties . e-commerce the e-commerce segment was new in 2013 due to our acquisition of monoprice . unless otherwise indicated , figures for the year ended december 31 , 2013 reflect the results from august 22 , 2013 , the acquisition date , through december 31 , 2013. replace_table_token_9_th monoprice is an online retailer of self-branded electronics and accessories to both consumers and businesses . monoprice offers its products for sale through the www.monoprice.com website , where the majority of our e-commerce revenue is derived , and fulfills those orders from our warehouse in rancho cucamonga , california . we also sell our products through reseller and marketplace agreements . e-commerce revenue growth largely is driven by our ability to increase the number of monoprice.com orders and extend our sales channels . because we acquired the monoprice business during the course of 2013 , we believe that presenting the percentage change in the number of orders covering the same 2013 time period as the financial results presented ( and comparable period ) would not accurately reflect segment results of operations . accordingly , we are presenting this metric for the entire 2013 calendar year and the comparable prior period . while order growth slowed for the current period as compared to the prior period , it was offset by an increase in the average order value . the decrease in the number of orders was driven by increased activity through the reseller channel , which also increased the average order value , as well as the impacts of inventory challenges due to port slowdowns . order numbers changed as follows : replace_table_token_10_th 36 e-commerce revenue and operating income increased approximately $ 96.4 million and $ 7.1 million , respectively , primarily due to the timing of the monoprice acquisition . in addition , e-commerce segment operating expenses included a $ 1.2 million charge triggered by the resignation of ajay kumar , the president of monoprice . on june 24 , 2014 , the company accepted the resignation of mr. kumar , and , under the circumstances of that resignation , mr. kumar was entitled to receive payment under the terms of the restricted cash agreement that was entered into in connection with our acquisition of monoprice . the amount that mr. kumar was entitled to under the restricted cash agreement was the deferred amount that he otherwise would have been entitled to receive at the time of the 2013 sale of monoprice to blucora . refer to our current report on form 8-k dated june 24 , 2014 for additional information . as noted above , we have experienced inventory challenges as a result of port slowdowns . see `` risks related to our e-commerce business `` in part i item 1a . of this report . the port slowdowns have continued into the first quarter of 2015. until these slowdowns are resolved , the availability of our products will be negatively impacted . as a result , we expect downward pressure on our quarterly revenues through at least the first quarter of 2015. corporate-level activity replace_table_token_11_th certain corporate-level activity is not allocated to our segments , including certain general and administrative costs ( including personnel and overhead costs ) , stock-based compensation , depreciation , amortization of intangible assets , and impairment of goodwill and intangible assets . for further detail , refer to segment information appearing in `` note 11 : segment information `` of the notes to consolidated financial statements in part ii item 8 of this report . year ended december 31 , 2014 compared with year ended december 31 , 2013 operating expenses included in corporate-level activity increased primarily due to a $ 1.1 million net increase in personnel expenses and a $ 0.5 million increase in corporate business insurance expenses as a result of the monoprice acquisition . the net increase in personnel expenses consisted of an increase in headcount to support operations , an increase in employee separation and related costs incurred in connection with leadership changes , offset by lower bonus amounts consistent with company performance in 2014. these increases were offset by a $ 0.9 million increase in capitalized internally developed software primarily due to the timing of the monoprice acquisition . internally developed software expense is recorded within our segments with the related cost capitalization benefit recorded within corporate-level activity . stock-based compensation increased primarily due to the issuance of equity awards to balance financial and monoprice employees . depreciation increased primarily due to depreciation expense on fixed assets attributable to monoprice . amortization of intangible assets increased primarily due to amortization expense related to intangibles acquired as part of the monoprice and hsw acquisitions . impairment of goodwill and intangible assets increased primarily due to impairments recognized in the fourth quarter of 2014 on e-commerce goodwill and trade name . for further detail , see `` note 4 : goodwill and other intangible assets `` of the notes to consolidated financial statements in part ii item 8 of this report . year ended december 31 , 2013 compared with year ended december 31 , 2012 operating expenses included in

use of cash we may use our cash , cash equivalents , and short-term investments balance in the future on investment in our current businesses , in acquiring new businesses or assets , for repayment of debt , or for stock repurchases . such businesses or assets may not be related to search and content , tax preparation , or e-commerce , and such acquisitions will result in further transaction-related costs . we currently are focused on the following areas : enhancing the search and content services and tax preparation services and software offered to our end users , maintaining and adding search distribution partners and tax preparation and monoprice.com customers , expanding and diversifying the offerings of our three businesses , extending our e-commerce sales channels through geographic and other means , and building our e-commerce brand recognition . on may 30 , 2014 , infospace acquired hsw for $ 44.9 million in cash , which was funded from our available cash . on august 22 , 2013 , we acquired monoprice for $ 182.9 million in cash . the acquisition of monoprice was funded from our available cash . on november 22 , 2013 , monoprice entered into a $ 70.0 million credit facility agreement for the purposes of post-transaction financing of the monoprice acquisition and providing future working capital flexibility for monoprice . the final maturity date of the credit facility is november 22 , 2018. the interest rate is variable , based upon choices from which monoprice elects . the credit facility includes financial and operating covenants with respect to certain ratios , including leverage ratio and fixed charge coverage ratio , which are defined further in the agreement . we were in compliance with these covenants as of december 31 , 2014 . monoprice borrowed $ 50.0 million under the credit facility , receiving net proceeds of approximately $ 49.3 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. ```use of cash we may use our cash , cash equivalents , and short-term investments balance in the future on investment in our current businesses , in acquiring new businesses or assets , for repayment of debt , or for stock repurchases . such businesses or assets may not be related to search and content , tax preparation , or e-commerce , and such acquisitions will result in further transaction-related costs . we currently are focused on the following areas : enhancing the search and content services and tax preparation services and software offered to our end users , maintaining and adding search distribution partners and tax preparation and monoprice.com customers , expanding and diversifying the offerings of our three businesses , extending our e-commerce sales channels through geographic and other means , and building our e-commerce brand recognition . on may 30 , 2014 , infospace acquired hsw for $ 44.9 million in cash , which was funded from our available cash . on august 22 , 2013 , we acquired monoprice for $ 182.9 million in cash . the acquisition of monoprice was funded from our available cash . on november 22 , 2013 , monoprice entered into a $ 70.0 million credit facility agreement for the purposes of post-transaction financing of the monoprice acquisition and providing future working capital flexibility for monoprice . the final maturity date of the credit facility is november 22 , 2018. the interest rate is variable , based upon choices from which monoprice elects . the credit facility includes financial and operating covenants with respect to certain ratios , including leverage ratio and fixed charge coverage ratio , which are defined further in the agreement . we were in compliance with these covenants as of december 31 , 2014 . monoprice borrowed $ 50.0 million under the credit facility , receiving net proceeds of approximately $ 49.3 million . ``` Suspicious Activity Report : the taxact business 's basic federal tax preparation online software service is `` free for everyone , `` meaning that any taxpayer can use the services to e-file his or her federal income tax return without paying for upgraded services and may do so for every form that the irs allows to be e-filed . this free offer differentiates taxact 's offerings from many of its competitors who limit their free software and or services offerings to certain categories of customers or certain forms . the taxact business generates revenue from a percentage of these `` free `` users who purchase a state form or choose to upgrade for a fee to the deluxe or ultimate offering , which includes additional support , tools , or state forms in the 30 case of the ultimate offering . in addition , revenue is generated from the sale of ancillary services , which include , among other things , tax preparation support services , data archive services , bank services ( including reloadable pre-paid debit card services ) , and additional e-filing services . taxact is the recognized value player in the digital do-it-yourself space , offering comparable software and or services at a lower cost to the end user compared to larger competitors . this , coupled with its `` free for everyone `` offer , provides taxact a valuable marketing position . taxact 's professional tax preparer software allows professional tax preparers to file individual returns for their clients . revenue from professional tax preparers historically has constituted a relatively small percentage of the taxact business 's overall revenue and requires relatively modest incremental development costs as the professional tax preparer software is substantially similar to the consumer-facing software and online service . on october 4 , 2013 , taxact acquired balance financial , a provider of web and mobile-based financial management software through its website www.balancefinancial.com . e-commerce our e-commerce business , monoprice , is an online retailer of self-branded electronics and accessories to both consumers and businesses . monoprice offers its products for sale through the www.monoprice.com website , where the majority of our e-commerce revenue is derived , and fulfills those orders from our warehouse in rancho cucamonga , california . we also sell our products through reseller and marketplace agreements . monoprice has built a well-respected brand by delivering products with quality on par with well-known national brands , selling these products at prices far below the prices for those well-known brands , and providing top-tier service and rapid product delivery . the monoprice website showcases 14 product categories and over 6,900 individual products . monoprice has developed an efficient product cost structure that is enabled by a direct import supply chain solution that eliminates traditional layers of mark-ups imposed by intermediaries . consumers are able to access and purchase products 24 hours a day from the convenience of a computer or a mobile device . monoprice 's team of customer service representatives assists customers primarily by online chat or email . nearly all sales are to customers located in the united states . acquisitions hsw : on may 30 , 2014 , infospace acquired hsw for $ 44.9 million in cash . hsw is included in our financial results beginning on may 30 , 2014 , the acquisition date . monoprice : on august 22 , 2013 , we acquired monoprice for $ 182.9 million in cash . monoprice is included in our financial results beginning on august 22 , 2013 , the acquisition date . accordingly , the results discussed below were impacted by the timing of this acquisition , in that 2014 included a full year of monoprice results as compared to a partial year of results in 2013. taxact : on january 31 , 2012 , we acquired taxact for $ 287.5 million in cash . taxact is included in our financial results beginning on january 31 , 2012 , the acquisition date . accordingly , the results discussed below were impacted by the timing of this acquisition , in that 2014 and 2013 included twelve months of taxact results while 2012 included eleven months . in addition , on october 4 , 2013 , taxact acquired balance financial . seasonality our tax preparation segment is highly seasonal , with the significant majority of its annual revenue earned in the first four months of our fiscal year . during the third and fourth quarters , the tax preparation segment typically reports losses because revenue from the segment is minimal while core operating expenses continue at relatively consistent levels . revenue from our e-commerce segment also is seasonal , with revenues historically being the lowest in the second quarter , a period that does not include consumer back-to-school or holiday-related spending . comparability we revised certain amounts for the year ended december 31 , 2012 from the amounts previously reported in that period 's annual report on form 10-k. we reclassified credit card fees previously reported in `` services cost of revenue `` to `` “ sales and marketing `` expense . the reclassification had no effect on our reported revenues , operating income , or cash flows for the year ended december 31 , 2012. refer to `` note 1 : the company and basis of presentation `` of the notes to consolidated financial statements in part ii item 8 of this report . 31 results of operations summary replace_table_token_4_th year ended december 31 , 2014 compared with year ended december 31 , 2013 total revenues increased approximately $ 6.7 million due to increases of $ 96.4 million in product revenue from the monoprice business that we acquired in august 2013 and $ 12.5 million in revenue related to our tax preparation business , offset by a decrease of $ 102.2 million in revenue related to our search and content business . story_separator_special_tag million increase in revenue , offset by an increase of $ 18.6 million in operating expenses that primarily were related to the timing of the taxact acquisition . the increase in operating expenses was amplified further by the fact that a relatively high percentage of tax season advertising occurs in january , a month that was included in 2013 results but not in 2012 results due to the timing of the taxact acquisition . in addition , personnel expenses increased mainly due to higher headcount supporting sales and marketing and general and administrative functions , while data center expenses grew primarily to support our online service offerings . these operating expense increases were offset by a $ 2.4 million decrease in tax preparation services cost of revenue primarily related to decreased bank service fees on our bank card services and royalties . e-commerce the e-commerce segment was new in 2013 due to our acquisition of monoprice . unless otherwise indicated , figures for the year ended december 31 , 2013 reflect the results from august 22 , 2013 , the acquisition date , through december 31 , 2013. replace_table_token_9_th monoprice is an online retailer of self-branded electronics and accessories to both consumers and businesses . monoprice offers its products for sale through the www.monoprice.com website , where the majority of our e-commerce revenue is derived , and fulfills those orders from our warehouse in rancho cucamonga , california . we also sell our products through reseller and marketplace agreements . e-commerce revenue growth largely is driven by our ability to increase the number of monoprice.com orders and extend our sales channels . because we acquired the monoprice business during the course of 2013 , we believe that presenting the percentage change in the number of orders covering the same 2013 time period as the financial results presented ( and comparable period ) would not accurately reflect segment results of operations . accordingly , we are presenting this metric for the entire 2013 calendar year and the comparable prior period . while order growth slowed for the current period as compared to the prior period , it was offset by an increase in the average order value . the decrease in the number of orders was driven by increased activity through the reseller channel , which also increased the average order value , as well as the impacts of inventory challenges due to port slowdowns . order numbers changed as follows : replace_table_token_10_th 36 e-commerce revenue and operating income increased approximately $ 96.4 million and $ 7.1 million , respectively , primarily due to the timing of the monoprice acquisition . in addition , e-commerce segment operating expenses included a $ 1.2 million charge triggered by the resignation of ajay kumar , the president of monoprice . on june 24 , 2014 , the company accepted the resignation of mr. kumar , and , under the circumstances of that resignation , mr. kumar was entitled to receive payment under the terms of the restricted cash agreement that was entered into in connection with our acquisition of monoprice . the amount that mr. kumar was entitled to under the restricted cash agreement was the deferred amount that he otherwise would have been entitled to receive at the time of the 2013 sale of monoprice to blucora . refer to our current report on form 8-k dated june 24 , 2014 for additional information . as noted above , we have experienced inventory challenges as a result of port slowdowns . see `` risks related to our e-commerce business `` in part i item 1a . of this report . the port slowdowns have continued into the first quarter of 2015. until these slowdowns are resolved , the availability of our products will be negatively impacted . as a result , we expect downward pressure on our quarterly revenues through at least the first quarter of 2015. corporate-level activity replace_table_token_11_th certain corporate-level activity is not allocated to our segments , including certain general and administrative costs ( including personnel and overhead costs ) , stock-based compensation , depreciation , amortization of intangible assets , and impairment of goodwill and intangible assets . for further detail , refer to segment information appearing in `` note 11 : segment information `` of the notes to consolidated financial statements in part ii item 8 of this report . year ended december 31 , 2014 compared with year ended december 31 , 2013 operating expenses included in corporate-level activity increased primarily due to a $ 1.1 million net increase in personnel expenses and a $ 0.5 million increase in corporate business insurance expenses as a result of the monoprice acquisition . the net increase in personnel expenses consisted of an increase in headcount to support operations , an increase in employee separation and related costs incurred in connection with leadership changes , offset by lower bonus amounts consistent with company performance in 2014. these increases were offset by a $ 0.9 million increase in capitalized internally developed software primarily due to the timing of the monoprice acquisition . internally developed software expense is recorded within our segments with the related cost capitalization benefit recorded within corporate-level activity . stock-based compensation increased primarily due to the issuance of equity awards to balance financial and monoprice employees . depreciation increased primarily due to depreciation expense on fixed assets attributable to monoprice . amortization of intangible assets increased primarily due to amortization expense related to intangibles acquired as part of the monoprice and hsw acquisitions . impairment of goodwill and intangible assets increased primarily due to impairments recognized in the fourth quarter of 2014 on e-commerce goodwill and trade name . for further detail , see `` note 4 : goodwill and other intangible assets `` of the notes to consolidated financial statements in part ii item 8 of this report . year ended december 31 , 2013 compared with year ended december 31 , 2012 operating expenses included in

allscripts also paid $ 1.7 million of cash consideration to us as an estimated working capital payment , and we recorded a receivable of $ 1.0 million related to final working capital adjustments . we are also responsible for paying allscripts for fulfilling certain customer service obligations of the business post-closing . - 80 - concurrent with the closing and as contemplated by the apa , we and allscripts modified the amended and restated mutual license and reseller agreement dated june 26 , 2015 , which was further amended on december 30 , 2017 , such that , among other things , the company committed to deliver a minimum of $ 95.0 million of total bookings over a ten-year period ( “ bookings commitment ” ) from referral transactions and sales of certain allscripts products under this agreement ( see note 3 of the consolidated and combined financial statements ) . in the event of a bookings commitment shortfall at the end of the ten-year period , we may be obligated to pay 70 % of the shortfall , subject to certain credits . we will earn 30 % commission from allscripts on each software referral transaction that results in a booking with allscripts . we account for the bookings commitment at its estimated fair value over the life of the agreement and , as of december 31 , 2017 , the estimated fair value was not material . the sale of the business qualified as a discontinued operations because it comprised operations and cash flows that could be distinguished , operationally and for financial reporting purposes , from the rest of the company . the disposal of the business sold to allscripts represented a strategic shift in the company 's operations as the sale enables the company to focus on genomic sequencing , clinical decision support , connected care and payer engagement . the consummation of the transactions contemplated by the apa is reflected in the consolidated and combined financial statements . 2017 corporate restructuring plan in august 2017 , we committed to and began implementation of a comprehensive restructuring plan that includes a wide range of organizational efficiency initiatives and other cost reduction opportunities . the plan will allow us to focus on our core competencies of genomic sequencing , clinical decision support , connected care and payer engagement . we incurred charges from this restructuring related to severance and other cash expenditures and recognized the majority of the expenses related to this restructuring in the year ended december 31 , 2017 . 2016 developments and acquisition on june 7 , 2016 , we completed our ipo , whereby we sold 6,500,000 shares of our common stock at a public offering price of $ 14.00 per share . additionally , on june 9 , 2016 , the underwriters partially exercised their overallotment option to purchase an additional 400,000 shares of our common stock at $ 14.00 per share . we received a total of $ 83.6 million in net proceeds from our ipo , after deducting underwriting discounts and commissions and offering costs of $ 13.0 million . the offering was registered under the securities act of 1933 , as amended , on a registration statement on form s-1 ( registration no . 333-211196 ) , as amended . in december 2016 , we issued convertible notes to a related party and others for net proceeds of $ 9.9 million and $ 92.8 million , respectively , after deducting underwriting discounts and commissions and other offering costs of $ 4.3 million . please see note 12 of the notes to consolidated and combined financial statements for further discussion of these convertible notes . non-gaap net loss from continuing operations and non-gaap net loss per share from continuing operations adjusted net loss from continuing operations and adjusted net loss per share from continuing operations are financial measures that are not prepared in conformity with united states generally accepted accounting principles ( u.s. gaap ) . our management believes that the presentation of non-gaap financial measures provides useful supplementary information regarding operational performance , because it enhances an investor 's overall understanding of the financial results for our core business . additionally , it provides a basis for the comparison of the financial results for our core business between current , past and future periods . other companies may define these measures in different ways . non-gaap financial measures should be considered only as a supplement to , and not as a substitute for or as a superior measure to , financial measures prepared in accordance with u.s. gaap . non-gaap net loss from continuing operations excludes the effects of ( 1 ) corporate restructuring expenses from continuing operations , ( 2 ) acquisition related compensation expense , ( 3 ) acquisition-related sales incentives , which have been recorded as contra revenue , ( 4 ) intangible amortization from continuing operations , ( 5 ) loss from equity method investments , ( 6 ) non-cash interest expense related to convertible notes , ( 7 ) change in fair value of derivatives liability , ( 8 ) stock-based compensation expense from continuing operations , ( 9 ) bp settlement other income , ( 10 ) securities litigation costs , and ( 11 ) benefit from ( provision for ) income taxes adjustment includes the impact of the conversion from a limited liability corporation to a corporation , the impact of convertible notes offering and the impact of intangibles amortization , and the impact of the `` tax act `` of 2017 . story_separator_special_tag million compared to the prior year . this growth was primarily driven by higher revenue from our navinet and eviti solutions . maintenance revenue increased $ 1.3 million , or 14.7 % , from $ 9.1 million in the year ended december 31 , 2016 to $ 10.4 million for the year ended december 31 , 2017 . this increase was primarily driven by an increase in deviceconx post contract support maintenance from a larger number of licenses under maintenance . sequencing and molecular analysis revenue increased from $ 0.6 million for the year ended december 31 , 2016 to $ 2.6 million for the year ended december 31 , 2017. this increase was primarily due to a larger number of gps samples sequenced and recognized as revenue as compared with last year as a result of either receiving reimbursement from non-contracted payers or from deliveries to patients covered by a contract payer of the gps test . currently , we recognize revenue from clients with executed contracts , from signed single case agreements , and from clients without a contractual agreement where we recognize revenue on a cash basis given the uncertainty over reimbursement . as the company gains additional insurance coverage and reimbursement experience , we expect to be able to reduce the portion of gps revenue which is recognized on a cash basis . we have significantly expanded our sales efforts by adding seasoned sales and account management professionals in 2017. in 2017 , we grew our gps provider-facing sales team from 5 to 13 professionals , including an international sales professional in the second quarter of 2017. with the growth of the sales team , we expect to continue to gain traction with physicians in new areas of the us and have seen continued year over year growth in the number of physicians ordering our test . - 90 - the commercial team 's efforts are focused on increasing reimbursement of the gps cancer profile by developing partnerships , which include pilot arrangements with commercial insurance and self-insured employers , expanding physician relationships , and enhancing operational performance and efficiencies . the partnership strategy that we developed for commercial health plans supports an alignment with designated provider/oncology groups within the health plan 's network . we work directly with the physician groups to support education of test ordering and interpretation and enable aggregate review of results with the plans . in the initial pilot arrangement that we have with commercial health plan , reimbursement is recognized for each test order throughout the pilot arrangement and the gps cancer profile value is assessed by the plan with the goal of full medical policy adoption at pilot end . we have grown the number of payers and self-insured employers covering our gps cancer test and have added several national self- insured employers . we will continue to invest resources in this area and expect growth as a result of our efforts . our pipeline includes several national and regional health plans and we expect to announce additional pilot contracts before year end . the self-insured employer pipeline includes opportunities with many companies listed on fortune 's 100 list . finally , we are pursuing international opportunities via partnerships with locally based resellers around the world . during the third quarter of 2017 , we entered into a reseller agreement for gps cancer with a large singapore-based reseller . under this agreement , the reseller will distribute gps cancer to physicians in singapore , malaysia , thailand , vietnam , and the philippines . this new contract expands gps cancer beyond our existing international coverage in israel , italy , mexico , and the middle east . we have also continued focused efforts to enhance reimbursement from plans when profiles are ordered and there is no payer contract in place . we are actively engaging plans with detail which supports a physician 's reason for ordering . our utilization of pre-authorizations and supporting documentation assists in the overall billing and appeal process ; optimizing payment with payers , who do not have a formal agreement with us . the gps cancer profile provides all information that can be found in other market molecular tests that physicians deem necessary for treatment recommendation and expands insight for the oncologist with the comprehensive information available on each patient tested . other services revenue decreased $ 0.9 million , or 11.0 % , from $ 7.8 million in 2016 to $ 6.9 million for the year ended december 31 , 2017 . this was primarily driven by a $ 0.6 million decrease in non-pcs device con x revenue due to the timing of project implementations , a $ 0.2 million decrease in non-pcs navinet open revenue as well as a $ 0.1 million decrease in home health services . we believe that significant opportunities exist for expanded cross-sell opportunities of our suite of solutions across our existing customer base , including eviti and navinet customer bases . we also believe that our customer base and our product solutions provide unique opportunities to expand the volume of gps sequencing analysis reporting to our customer base . maintaining our current customer base will be important to our future maintenance and saas recurring revenue streams . comparison of the years ended december 31 , 2015 and 2016 total revenue increased $ 34.2 million , or 74.1 % , from the year ended december 31 , 2015 to $ 80.4 million for the year ended december 31 , 2016. our total revenue growth was driven primarily by our acquisition of navinet in january 2016. our acquisition of navinet resulted in the contribution of $ 40.9 million mainly in saas revenue in the year ended december 31 , 2016. total software-related revenue was $ 63.0 million for the year ended december 31 , 2016 compared to $ 28.2 million for the year ended december 31 , 2015 , an increase of $ 34.7 million or 123.1 % .

cash used in operating activities of $ 81.1 million in the year ended december 31 , 2017 was a result of our continued significant investments in research and development , sales and marketing , and increased expenses incurred as we became a public company , including costs associated with public company reporting and corporate governance requirements , and other expenses incurred to grow our business . in the year ended december 31 , 2017 , $ 102.7 million , or 59 % of our net loss of $ 175.2 million consisted of non-cash items , including a $ 4.5 million in stock-based compensation , $ 28.1 million of depreciation and amortization , a $ 50.3 million equity in net loss of a related party investment , $ 9.6 million of loss on sale of business and dissolution of business component , $ 5.1 million deferred income taxes , net expense , a $ 0.2 million provision for accounts receivable bad debts , a $ 0.7 million inventory provision , $ 4.4 million amortization of debt discounts and deferred financing offering costs , and partially offset by a $ 0.3 million decrease in fair value of derivatives liability . cash used in operating activities in the year ended december 31 , 2017 included a decrease in prepaid expenses and other current assets of $ 0.6 million , a $ 2.2 million increase in deferred implementation costs due to an increase in business activity associated with the growth of our business , $ 1.9 million in reduction in accounts payable , $ 6.3 million reduction in accrued and other liabilities , a $ 1.0 million decrease in deferred revenue , and a $ 0.3 million increase in other 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 used in operating activities of $ 81.1 million in the year ended december 31 , 2017 was a result of our continued significant investments in research and development , sales and marketing , and increased expenses incurred as we became a public company , including costs associated with public company reporting and corporate governance requirements , and other expenses incurred to grow our business . in the year ended december 31 , 2017 , $ 102.7 million , or 59 % of our net loss of $ 175.2 million consisted of non-cash items , including a $ 4.5 million in stock-based compensation , $ 28.1 million of depreciation and amortization , a $ 50.3 million equity in net loss of a related party investment , $ 9.6 million of loss on sale of business and dissolution of business component , $ 5.1 million deferred income taxes , net expense , a $ 0.2 million provision for accounts receivable bad debts , a $ 0.7 million inventory provision , $ 4.4 million amortization of debt discounts and deferred financing offering costs , and partially offset by a $ 0.3 million decrease in fair value of derivatives liability . cash used in operating activities in the year ended december 31 , 2017 included a decrease in prepaid expenses and other current assets of $ 0.6 million , a $ 2.2 million increase in deferred implementation costs due to an increase in business activity associated with the growth of our business , $ 1.9 million in reduction in accounts payable , $ 6.3 million reduction in accrued and other liabilities , a $ 1.0 million decrease in deferred revenue , and a $ 0.3 million increase in other assets and liabilities . ``` Suspicious Activity Report : allscripts also paid $ 1.7 million of cash consideration to us as an estimated working capital payment , and we recorded a receivable of $ 1.0 million related to final working capital adjustments . we are also responsible for paying allscripts for fulfilling certain customer service obligations of the business post-closing . - 80 - concurrent with the closing and as contemplated by the apa , we and allscripts modified the amended and restated mutual license and reseller agreement dated june 26 , 2015 , which was further amended on december 30 , 2017 , such that , among other things , the company committed to deliver a minimum of $ 95.0 million of total bookings over a ten-year period ( “ bookings commitment ” ) from referral transactions and sales of certain allscripts products under this agreement ( see note 3 of the consolidated and combined financial statements ) . in the event of a bookings commitment shortfall at the end of the ten-year period , we may be obligated to pay 70 % of the shortfall , subject to certain credits . we will earn 30 % commission from allscripts on each software referral transaction that results in a booking with allscripts . we account for the bookings commitment at its estimated fair value over the life of the agreement and , as of december 31 , 2017 , the estimated fair value was not material . the sale of the business qualified as a discontinued operations because it comprised operations and cash flows that could be distinguished , operationally and for financial reporting purposes , from the rest of the company . the disposal of the business sold to allscripts represented a strategic shift in the company 's operations as the sale enables the company to focus on genomic sequencing , clinical decision support , connected care and payer engagement . the consummation of the transactions contemplated by the apa is reflected in the consolidated and combined financial statements . 2017 corporate restructuring plan in august 2017 , we committed to and began implementation of a comprehensive restructuring plan that includes a wide range of organizational efficiency initiatives and other cost reduction opportunities . the plan will allow us to focus on our core competencies of genomic sequencing , clinical decision support , connected care and payer engagement . we incurred charges from this restructuring related to severance and other cash expenditures and recognized the majority of the expenses related to this restructuring in the year ended december 31 , 2017 . 2016 developments and acquisition on june 7 , 2016 , we completed our ipo , whereby we sold 6,500,000 shares of our common stock at a public offering price of $ 14.00 per share . additionally , on june 9 , 2016 , the underwriters partially exercised their overallotment option to purchase an additional 400,000 shares of our common stock at $ 14.00 per share . we received a total of $ 83.6 million in net proceeds from our ipo , after deducting underwriting discounts and commissions and offering costs of $ 13.0 million . the offering was registered under the securities act of 1933 , as amended , on a registration statement on form s-1 ( registration no . 333-211196 ) , as amended . in december 2016 , we issued convertible notes to a related party and others for net proceeds of $ 9.9 million and $ 92.8 million , respectively , after deducting underwriting discounts and commissions and other offering costs of $ 4.3 million . please see note 12 of the notes to consolidated and combined financial statements for further discussion of these convertible notes . non-gaap net loss from continuing operations and non-gaap net loss per share from continuing operations adjusted net loss from continuing operations and adjusted net loss per share from continuing operations are financial measures that are not prepared in conformity with united states generally accepted accounting principles ( u.s. gaap ) . our management believes that the presentation of non-gaap financial measures provides useful supplementary information regarding operational performance , because it enhances an investor 's overall understanding of the financial results for our core business . additionally , it provides a basis for the comparison of the financial results for our core business between current , past and future periods . other companies may define these measures in different ways . non-gaap financial measures should be considered only as a supplement to , and not as a substitute for or as a superior measure to , financial measures prepared in accordance with u.s. gaap . non-gaap net loss from continuing operations excludes the effects of ( 1 ) corporate restructuring expenses from continuing operations , ( 2 ) acquisition related compensation expense , ( 3 ) acquisition-related sales incentives , which have been recorded as contra revenue , ( 4 ) intangible amortization from continuing operations , ( 5 ) loss from equity method investments , ( 6 ) non-cash interest expense related to convertible notes , ( 7 ) change in fair value of derivatives liability , ( 8 ) stock-based compensation expense from continuing operations , ( 9 ) bp settlement other income , ( 10 ) securities litigation costs , and ( 11 ) benefit from ( provision for ) income taxes adjustment includes the impact of the conversion from a limited liability corporation to a corporation , the impact of convertible notes offering and the impact of intangibles amortization , and the impact of the `` tax act `` of 2017 . story_separator_special_tag million compared to the prior year . this growth was primarily driven by higher revenue from our navinet and eviti solutions . maintenance revenue increased $ 1.3 million , or 14.7 % , from $ 9.1 million in the year ended december 31 , 2016 to $ 10.4 million for the year ended december 31 , 2017 . this increase was primarily driven by an increase in deviceconx post contract support maintenance from a larger number of licenses under maintenance . sequencing and molecular analysis revenue increased from $ 0.6 million for the year ended december 31 , 2016 to $ 2.6 million for the year ended december 31 , 2017. this increase was primarily due to a larger number of gps samples sequenced and recognized as revenue as compared with last year as a result of either receiving reimbursement from non-contracted payers or from deliveries to patients covered by a contract payer of the gps test . currently , we recognize revenue from clients with executed contracts , from signed single case agreements , and from clients without a contractual agreement where we recognize revenue on a cash basis given the uncertainty over reimbursement . as the company gains additional insurance coverage and reimbursement experience , we expect to be able to reduce the portion of gps revenue which is recognized on a cash basis . we have significantly expanded our sales efforts by adding seasoned sales and account management professionals in 2017. in 2017 , we grew our gps provider-facing sales team from 5 to 13 professionals , including an international sales professional in the second quarter of 2017. with the growth of the sales team , we expect to continue to gain traction with physicians in new areas of the us and have seen continued year over year growth in the number of physicians ordering our test . - 90 - the commercial team 's efforts are focused on increasing reimbursement of the gps cancer profile by developing partnerships , which include pilot arrangements with commercial insurance and self-insured employers , expanding physician relationships , and enhancing operational performance and efficiencies . the partnership strategy that we developed for commercial health plans supports an alignment with designated provider/oncology groups within the health plan 's network . we work directly with the physician groups to support education of test ordering and interpretation and enable aggregate review of results with the plans . in the initial pilot arrangement that we have with commercial health plan , reimbursement is recognized for each test order throughout the pilot arrangement and the gps cancer profile value is assessed by the plan with the goal of full medical policy adoption at pilot end . we have grown the number of payers and self-insured employers covering our gps cancer test and have added several national self- insured employers . we will continue to invest resources in this area and expect growth as a result of our efforts . our pipeline includes several national and regional health plans and we expect to announce additional pilot contracts before year end . the self-insured employer pipeline includes opportunities with many companies listed on fortune 's 100 list . finally , we are pursuing international opportunities via partnerships with locally based resellers around the world . during the third quarter of 2017 , we entered into a reseller agreement for gps cancer with a large singapore-based reseller . under this agreement , the reseller will distribute gps cancer to physicians in singapore , malaysia , thailand , vietnam , and the philippines . this new contract expands gps cancer beyond our existing international coverage in israel , italy , mexico , and the middle east . we have also continued focused efforts to enhance reimbursement from plans when profiles are ordered and there is no payer contract in place . we are actively engaging plans with detail which supports a physician 's reason for ordering . our utilization of pre-authorizations and supporting documentation assists in the overall billing and appeal process ; optimizing payment with payers , who do not have a formal agreement with us . the gps cancer profile provides all information that can be found in other market molecular tests that physicians deem necessary for treatment recommendation and expands insight for the oncologist with the comprehensive information available on each patient tested . other services revenue decreased $ 0.9 million , or 11.0 % , from $ 7.8 million in 2016 to $ 6.9 million for the year ended december 31 , 2017 . this was primarily driven by a $ 0.6 million decrease in non-pcs device con x revenue due to the timing of project implementations , a $ 0.2 million decrease in non-pcs navinet open revenue as well as a $ 0.1 million decrease in home health services . we believe that significant opportunities exist for expanded cross-sell opportunities of our suite of solutions across our existing customer base , including eviti and navinet customer bases . we also believe that our customer base and our product solutions provide unique opportunities to expand the volume of gps sequencing analysis reporting to our customer base . maintaining our current customer base will be important to our future maintenance and saas recurring revenue streams . comparison of the years ended december 31 , 2015 and 2016 total revenue increased $ 34.2 million , or 74.1 % , from the year ended december 31 , 2015 to $ 80.4 million for the year ended december 31 , 2016. our total revenue growth was driven primarily by our acquisition of navinet in january 2016. our acquisition of navinet resulted in the contribution of $ 40.9 million mainly in saas revenue in the year ended december 31 , 2016. total software-related revenue was $ 63.0 million for the year ended december 31 , 2016 compared to $ 28.2 million for the year ended december 31 , 2015 , an increase of $ 34.7 million or 123.1 % .

unless otherwise expressly indicated , the information set forth in this form 10-k is as of december 31 , 2014 , and we undertake no duty to update this information . overview in the second quarter of 2014 , we reached a major milestone in the company 's evolution , generating revenues from our aot technology for the first time since our inception in february 1998. we continue to devote the bulk of our efforts to the promotion , design , testing and the commercial manufacturing and operations of our crude oil pipeline products in the upstream and midstream energy sector . we anticipate that these efforts will continue during 2015. our expenses to date have been funded primarily through the sale of shares of common stock and convertible debt , as well as proceeds from the exercise of stock purchase warrants and options . we raised capital in 2014 and will need to raise substantial additional capital in 2015 , and possibly beyond , to fund our sales and marketing efforts , continuing research and development , and certain other expenses , until our revenue base grows sufficiently . results of operation revenue comparison , 2014 and 2013 the company recognized $ 240,000 in revenues in the fiscal year ended december 31 , 2014 pursuant to the lease of the aot equipment by transcanada . there were no similar transactions during the fiscal year ended december 31 , 2013 . 22 operating expense comparison , 2014 and 2013 operating expenses were $ 3,284,666 for the fiscal year ended december 31 , 2014 , compared to $ 11,884,775 for the fiscal year ended december 31 , 2013 , a decrease of $ 8,600,109. this increase is attributable to decreases in non-cash expenses of $ 7,298,848 and cash expenses of $ 1,301,261. specifically , the decrease in non-cash expenses is attributable to a $ 3,108,351 decrease in settlements paid through issuance of stock , a decrease in valuation of warrants , options and common stock issued to employees , directors and consultants of $ 4,183,923 , and a decrease in depreciation of $ 6,574. the decrease in cash expenses is attributable to decreases in salaries and benefits of $ 774,820 , consulting fees of $ 196,630 , rents , utilities and maintenance of $ 109,770 , travel expenses of $ 12,123 and general operating expenses of $ 207,918. research and development expenses were $ 893,452 for the fiscal year ended december 31 , 2014 , compared to $ 2,011,486 for the fiscal year ended december 31 , 2013 , a decrease of $ 1,118,034. this decrease is attributable to decreases in product prototype development costs of $ 526,423 and general testing and development costs of $ 602,351 , offset by an increase in licensing and research fees of $ 10,740. other income was $ 1,500 for the fiscal year ended december 31 , 2014 , compared to $ 3,493,125 for the fiscal year ended december 31 , 2013 , a decrease of $ 3,491,625. this decrease is attributable to decrease in the gain on extinguishment of derivative liabilities of $ 3,441,752 , a decrease in gain from disposition of fixed assets of $ 41,923 and a decrease in debt cancellation and other miscellaneous income of $ 7,950. other expenses were $ 70,517 for the fiscal year ended december 31 , 2014 , compared to $ 254,674 for the fiscal year ended december 31 , 2013 , a decrease of $ 184,157. this decrease is attributable to a decrease in the fair value of derivative liabilities of $ 220,614 , an increase in non-cash interest and financing expense of $ 39,359 and decrease in other miscellaneous expenses of $ 2,902. we had a net loss of $ 4,006,335 or $ 0.02 loss per share for the fiscal year ended december 31 , 2014 compared to a net loss of $ 10,657,009 , or $ 0.07 loss per share for the fiscal year ended december 31 , 2013. operating expense comparison , 2013 and 2012 operating expenses were $ 11,884,775 for the fiscal year ended december 31 , 2013 , compared to $ 7,187,970 for the fiscal year ended december 31 , 2012 , an increase of $ 4,696,805. this increase is attributable to increases in non-cash expenses of $ 4,014,898 and cash expenses of $ 681,967. specifically , the increase in non-cash expenses is attributable to an a settlement paid through an issuance of stock valued at $ 3,108,351 plus an increase in valuation of warrants and options given to employees and directors of $ 2,694,534 offset by a decrease in depreciation and other non-cash expense of $ 67,678 and a decrease in valuation of warrants and options given to consultants of $ 1,720,308. the increase in cash expenses is attributable to an increase in salaries and benefits of $ 394,148 , an increase in travel expenses of $ 210,045 and an increase in general operating expenses of $ 82,320 , offset by a decrease in professional and consulting fees of $ 4,556. research and development expenses were $ 2,011,486 for the fiscal year ended december 31 , 2013 , compared to $ 963,184 for the fiscal year ended december 31 , 2012 , an increase of $ 1,048,302. this increase is attributable to increases in product testing of $ 88,103 and product development costs for the aot prototype of $ 1,029,143 offset by a decrease in licensing and research fees of $ 68,944. other income was $ 3,493,125 for the fiscal year ended december 31 , 2013 , compared to $ 2,703,876 for the fiscal year ended december 31 , 2012 , an increase of $ 789,249. this increase is attributable to an story_separator_special_tag the amendments clarify that an entity should consider all relevant terms and features , including the embedded derivative feature being evaluated for bifurcation , in evaluating the nature of the host contract . the asu applies to all entities that are issuers of , or investors in , hybrid financial instruments that are issued in the form of a share and is effective for public business entities for fiscal years , and interim periods within those fiscal years , beginning after december 15 , 2015. early adoption is permitted . the company is currently evaluating the impact the adoption of asu 2014-16 on the company 's financial statement presentation and disclosures in january 2015 , the fasb issued accounting standards update ( asu ) no . 2015-01 ( subtopic 225-20 ) - income statement - extraordinary and unusual items . asu 2015-01 eliminates the concept of an extraordinary item from gaap . as a result , an entity will no longer be required to segregate extraordinary items from the results of ordinary operations , to separately present an extraordinary item on its income statement , net of tax , after income from continuing operations or to disclose income taxes and earnings-per-share data applicable to an extraordinary item . however , asu 2015-01 will still retain the presentation and disclosure guidance for items that are unusual in nature and occur infrequently . asu 2015-01 is effective for periods beginning after december 15 , 2015. the adoption of asu 2015-01 is not expected to have a material effect on the company 's consolidated financial statements . early adoption is permitted . in february , 2015 , the fasb issued accounting standards update ( asu ) no . 2015-02 , consolidation ( topic 810 ) : amendments to the consolidation analysis . asu 2015-02 provides guidance on the consolidation evaluation for reporting organizations that are required to evaluate whether they should consolidate certain legal entities such as limited partnerships , limited liability corporations , and securitization structures ( collateralized debt obligations , collateralized loan obligations , and mortgage-backed security transactions ) . asu 2015-02 is effective for periods beginning after december 15 , 2015. the adoption of asu 2015-02 is not expected to have a material effect on the company 's consolidated financial statements . early adoption is permitted . on august 27 , 2014 , the fasb issued asu 2014-15 , disclosure of uncertainties about an entity 's ability to continue as a going concern , which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements . the new standard requires management to perform interim and annual assessments of an entity 's ability to continue as a going concern within one year of the date the financial statements are issued . an entity must provide certain disclosures if conditions or events raise substantial doubt about the entity 's ability to continue as a going concern . the asu applies to all entities and is effective for annual periods ending after december 15 , 2016 , and interim periods thereafter , with early adoption permitted . on june 10 , 2014 , the financial accounting standards board ( fasb ) issued accounting standards update no . 2014-10 ( asu 2014-10 ) , development stage entities ( topic 915 ) : elimination of certain financial reporting requirements , including an amendment to variable interest entities guidance in topic 810 , consolidation . asu 2014-10 eliminates the requirement to present inception-to-date information about income statement line items , cash flows , and equity transactions , and clarifies how entities should disclosure the risks and uncertainties related to their activities . asu 2014-10 also eliminates an exception provided to development stage entities in consolidations ( asc topic 810 ) for determining whether an entity is a variable interest entity on the basis of the amount of investment equity that is at risk . the presentation and disclosure requirements in topic 915 will no longer be required for interim and annual reporting periods beginning after december 15 , 2014 , and the revised consolidation standards will take effect in annual periods beginning after december 15 , 2015. early adoption is permitted . the company adopted the provisions of asu 2014-10 effective for its financial statements for the interim period ended june 30 , 2014 , and accordingly , is no longer presenting the inception-to-date financial information and disclosures formerly required . 26 on may 28 , 2014 , the fasb issued accounting standards update no . 2014-09 ( asu 2014-09 ) , revenue from contracts with customers . asu 2014-09 will eliminate transaction- and industry-specific revenue recognition guidance under current u.s. gaap and replace it with a principle based approach for determining revenue recognition . asu 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract . the asu also will require additional disclosure about the nature , amount , timing and uncertainty of revenue and cash flows arising from customer contracts , including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract . asu 2014-09 is effective for reporting periods beginning after december 15 , 2016 , and early adoption is not permitted . entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption . the company does not expect the adoption of this guidance to have any impact on the company 's consolidated financial statement presentation or disclosures . in april 2014 , the fasb issued accounting standards update no . 2014-08 ( asu 2014-08 ) , presentation of financial statements ( topic 205 ) and property , plant and equipment ( topic 360 ) . asu 2014-08 amends the requirements for reporting discontinued operations and requires additional disclosures about discontinued operations . under the new guidance , only disposals representing a strategic shift in operations or that have

liquidity and capital resources general we have incurred negative cash flow from operations since our inception in 1998. as of december 31 , 2014 , we had cash of $ 2,247,557 and an accumulated deficit of $ 97,045,198. our negative operating cash flow in 2014 was funded primarily through cash reserves , the exercise of stock purchase warrants and options for cash , and the issuance of convertible notes for cash . the accompanying consolidated financial statements have been prepared on a going concern basis , which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business . as reflected in the accompanying consolidated financial statements , the company had a net loss of $ 4,006,335 and a negative cash flow from operations of $ 3,527,695 for the year ended december 31 , 2014. these factors raise substantial doubt about our ability to continue as a going concern . our ability to continue as a going concern is dependent upon our ability to raise additional funds and implement our business plan . the consolidated financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources general we have incurred negative cash flow from operations since our inception in 1998. as of december 31 , 2014 , we had cash of $ 2,247,557 and an accumulated deficit of $ 97,045,198. our negative operating cash flow in 2014 was funded primarily through cash reserves , the exercise of stock purchase warrants and options for cash , and the issuance of convertible notes for cash . the accompanying consolidated financial statements have been prepared on a going concern basis , which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business . as reflected in the accompanying consolidated financial statements , the company had a net loss of $ 4,006,335 and a negative cash flow from operations of $ 3,527,695 for the year ended december 31 , 2014. these factors raise substantial doubt about our ability to continue as a going concern . our ability to continue as a going concern is dependent upon our ability to raise additional funds and implement our business plan . the consolidated financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern . ``` Suspicious Activity Report : unless otherwise expressly indicated , the information set forth in this form 10-k is as of december 31 , 2014 , and we undertake no duty to update this information . overview in the second quarter of 2014 , we reached a major milestone in the company 's evolution , generating revenues from our aot technology for the first time since our inception in february 1998. we continue to devote the bulk of our efforts to the promotion , design , testing and the commercial manufacturing and operations of our crude oil pipeline products in the upstream and midstream energy sector . we anticipate that these efforts will continue during 2015. our expenses to date have been funded primarily through the sale of shares of common stock and convertible debt , as well as proceeds from the exercise of stock purchase warrants and options . we raised capital in 2014 and will need to raise substantial additional capital in 2015 , and possibly beyond , to fund our sales and marketing efforts , continuing research and development , and certain other expenses , until our revenue base grows sufficiently . results of operation revenue comparison , 2014 and 2013 the company recognized $ 240,000 in revenues in the fiscal year ended december 31 , 2014 pursuant to the lease of the aot equipment by transcanada . there were no similar transactions during the fiscal year ended december 31 , 2013 . 22 operating expense comparison , 2014 and 2013 operating expenses were $ 3,284,666 for the fiscal year ended december 31 , 2014 , compared to $ 11,884,775 for the fiscal year ended december 31 , 2013 , a decrease of $ 8,600,109. this increase is attributable to decreases in non-cash expenses of $ 7,298,848 and cash expenses of $ 1,301,261. specifically , the decrease in non-cash expenses is attributable to a $ 3,108,351 decrease in settlements paid through issuance of stock , a decrease in valuation of warrants , options and common stock issued to employees , directors and consultants of $ 4,183,923 , and a decrease in depreciation of $ 6,574. the decrease in cash expenses is attributable to decreases in salaries and benefits of $ 774,820 , consulting fees of $ 196,630 , rents , utilities and maintenance of $ 109,770 , travel expenses of $ 12,123 and general operating expenses of $ 207,918. research and development expenses were $ 893,452 for the fiscal year ended december 31 , 2014 , compared to $ 2,011,486 for the fiscal year ended december 31 , 2013 , a decrease of $ 1,118,034. this decrease is attributable to decreases in product prototype development costs of $ 526,423 and general testing and development costs of $ 602,351 , offset by an increase in licensing and research fees of $ 10,740. other income was $ 1,500 for the fiscal year ended december 31 , 2014 , compared to $ 3,493,125 for the fiscal year ended december 31 , 2013 , a decrease of $ 3,491,625. this decrease is attributable to decrease in the gain on extinguishment of derivative liabilities of $ 3,441,752 , a decrease in gain from disposition of fixed assets of $ 41,923 and a decrease in debt cancellation and other miscellaneous income of $ 7,950. other expenses were $ 70,517 for the fiscal year ended december 31 , 2014 , compared to $ 254,674 for the fiscal year ended december 31 , 2013 , a decrease of $ 184,157. this decrease is attributable to a decrease in the fair value of derivative liabilities of $ 220,614 , an increase in non-cash interest and financing expense of $ 39,359 and decrease in other miscellaneous expenses of $ 2,902. we had a net loss of $ 4,006,335 or $ 0.02 loss per share for the fiscal year ended december 31 , 2014 compared to a net loss of $ 10,657,009 , or $ 0.07 loss per share for the fiscal year ended december 31 , 2013. operating expense comparison , 2013 and 2012 operating expenses were $ 11,884,775 for the fiscal year ended december 31 , 2013 , compared to $ 7,187,970 for the fiscal year ended december 31 , 2012 , an increase of $ 4,696,805. this increase is attributable to increases in non-cash expenses of $ 4,014,898 and cash expenses of $ 681,967. specifically , the increase in non-cash expenses is attributable to an a settlement paid through an issuance of stock valued at $ 3,108,351 plus an increase in valuation of warrants and options given to employees and directors of $ 2,694,534 offset by a decrease in depreciation and other non-cash expense of $ 67,678 and a decrease in valuation of warrants and options given to consultants of $ 1,720,308. the increase in cash expenses is attributable to an increase in salaries and benefits of $ 394,148 , an increase in travel expenses of $ 210,045 and an increase in general operating expenses of $ 82,320 , offset by a decrease in professional and consulting fees of $ 4,556. research and development expenses were $ 2,011,486 for the fiscal year ended december 31 , 2013 , compared to $ 963,184 for the fiscal year ended december 31 , 2012 , an increase of $ 1,048,302. this increase is attributable to increases in product testing of $ 88,103 and product development costs for the aot prototype of $ 1,029,143 offset by a decrease in licensing and research fees of $ 68,944. other income was $ 3,493,125 for the fiscal year ended december 31 , 2013 , compared to $ 2,703,876 for the fiscal year ended december 31 , 2012 , an increase of $ 789,249. this increase is attributable to an story_separator_special_tag the amendments clarify that an entity should consider all relevant terms and features , including the embedded derivative feature being evaluated for bifurcation , in evaluating the nature of the host contract . the asu applies to all entities that are issuers of , or investors in , hybrid financial instruments that are issued in the form of a share and is effective for public business entities for fiscal years , and interim periods within those fiscal years , beginning after december 15 , 2015. early adoption is permitted . the company is currently evaluating the impact the adoption of asu 2014-16 on the company 's financial statement presentation and disclosures in january 2015 , the fasb issued accounting standards update ( asu ) no . 2015-01 ( subtopic 225-20 ) - income statement - extraordinary and unusual items . asu 2015-01 eliminates the concept of an extraordinary item from gaap . as a result , an entity will no longer be required to segregate extraordinary items from the results of ordinary operations , to separately present an extraordinary item on its income statement , net of tax , after income from continuing operations or to disclose income taxes and earnings-per-share data applicable to an extraordinary item . however , asu 2015-01 will still retain the presentation and disclosure guidance for items that are unusual in nature and occur infrequently . asu 2015-01 is effective for periods beginning after december 15 , 2015. the adoption of asu 2015-01 is not expected to have a material effect on the company 's consolidated financial statements . early adoption is permitted . in february , 2015 , the fasb issued accounting standards update ( asu ) no . 2015-02 , consolidation ( topic 810 ) : amendments to the consolidation analysis . asu 2015-02 provides guidance on the consolidation evaluation for reporting organizations that are required to evaluate whether they should consolidate certain legal entities such as limited partnerships , limited liability corporations , and securitization structures ( collateralized debt obligations , collateralized loan obligations , and mortgage-backed security transactions ) . asu 2015-02 is effective for periods beginning after december 15 , 2015. the adoption of asu 2015-02 is not expected to have a material effect on the company 's consolidated financial statements . early adoption is permitted . on august 27 , 2014 , the fasb issued asu 2014-15 , disclosure of uncertainties about an entity 's ability to continue as a going concern , which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements . the new standard requires management to perform interim and annual assessments of an entity 's ability to continue as a going concern within one year of the date the financial statements are issued . an entity must provide certain disclosures if conditions or events raise substantial doubt about the entity 's ability to continue as a going concern . the asu applies to all entities and is effective for annual periods ending after december 15 , 2016 , and interim periods thereafter , with early adoption permitted . on june 10 , 2014 , the financial accounting standards board ( fasb ) issued accounting standards update no . 2014-10 ( asu 2014-10 ) , development stage entities ( topic 915 ) : elimination of certain financial reporting requirements , including an amendment to variable interest entities guidance in topic 810 , consolidation . asu 2014-10 eliminates the requirement to present inception-to-date information about income statement line items , cash flows , and equity transactions , and clarifies how entities should disclosure the risks and uncertainties related to their activities . asu 2014-10 also eliminates an exception provided to development stage entities in consolidations ( asc topic 810 ) for determining whether an entity is a variable interest entity on the basis of the amount of investment equity that is at risk . the presentation and disclosure requirements in topic 915 will no longer be required for interim and annual reporting periods beginning after december 15 , 2014 , and the revised consolidation standards will take effect in annual periods beginning after december 15 , 2015. early adoption is permitted . the company adopted the provisions of asu 2014-10 effective for its financial statements for the interim period ended june 30 , 2014 , and accordingly , is no longer presenting the inception-to-date financial information and disclosures formerly required . 26 on may 28 , 2014 , the fasb issued accounting standards update no . 2014-09 ( asu 2014-09 ) , revenue from contracts with customers . asu 2014-09 will eliminate transaction- and industry-specific revenue recognition guidance under current u.s. gaap and replace it with a principle based approach for determining revenue recognition . asu 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract . the asu also will require additional disclosure about the nature , amount , timing and uncertainty of revenue and cash flows arising from customer contracts , including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract . asu 2014-09 is effective for reporting periods beginning after december 15 , 2016 , and early adoption is not permitted . entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption . the company does not expect the adoption of this guidance to have any impact on the company 's consolidated financial statement presentation or disclosures . in april 2014 , the fasb issued accounting standards update no . 2014-08 ( asu 2014-08 ) , presentation of financial statements ( topic 205 ) and property , plant and equipment ( topic 360 ) . asu 2014-08 amends the requirements for reporting discontinued operations and requires additional disclosures about discontinued operations . under the new guidance , only disposals representing a strategic shift in operations or that have

during the second half of 2015 , we also used advances from the fhlbi to finance our agency rmbs . we have also invested in agency cmos consisting of interest-only securities as well as risk-sharing securities issued by fannie mae and freddie mac . in january 2016 , the fhfa released a final rule that amends regulations governing membership in the federal home loan bank ( “fhlb” ) system . the final rule , which largely adopts the provisions included in the proposed rule issued by the fhfa in september 2014 , prevents captive insurance companies from obtaining and maintaining membership in the fhlb system and , consequently , accessing low-cost funding through the fhlb system . the final rule became effective on february 19 , 2016. as a result of this rule , chmi insurance , our captive insurance subsidiary , terminated its membership in the fhlbi in november and was dissolved in december 2016 . 32 subject to maintaining our qualification as a reit , we utilize derivative financial instruments ( or hedging instruments ) to hedge our exposure to potential interest rate mismatches between the interest we earn on our assets and our borrowing costs caused by fluctuations in short-term interest rates . in utilizing leverage and interest rate hedges , our objectives include , where desirable , locking in , on a long-term basis , a spread between the yield on our assets and the cost of our financing in an effort to improve returns to our stockholders . we also operate our business in a manner that permits us to maintain our exclusion from registration as an investment company under the investment company act . factors impacting our operating results our income is generated primarily by the net spread between the income we earn on our assets and the cost of our financing and hedging activities as well as the amortization of any purchase premiums or the accretion of discounts . our net income includes the actual interest payments we receive on our excess msrs , if any , and rmbs , the net servicing fee we receive on our msrs and the accretion/amortization of any purchase discounts/premiums . changes in various factors such as market interest rates , prepayment speeds , estimated future cash flows , servicing costs and credit quality could affect the amount of premium to be amortized or discount to be accreted into interest income for a given period . market interest rates and prepayment rates vary according to the type of investment , conditions in the financial markets , competition and other factors , none of which can be predicted with any certainty . our operating results may also be affected by credit losses in excess of initial anticipations or unanticipated credit events experienced by borrowers whose mortgage loans underlay the msrs held by aurora . set forth below is the positive gross spread between the yield on rmbs and our costs of funding those assets at the end of each of the quarters indicated below : average net yield spread at period end replace_table_token_6_th the average net interest spread has fluctuated but risen over the past two years . during that time , we have strategically taken the opportunity to reduce our average cost of funds by restructuring our swaps portfolio as interest rates declined . the new positioning helped to partially offset increased repurchase rates charged by our counterparties in anticipation of increases in the federal funds rate . changes in the market value of our assets we hold our servicing related assets as long-term investments . our excess msrs were , and our msrs are , carried at their fair value with changes in their fair value recorded in other income or loss in our consolidated statements of operations . those values may be affected by events or headlines that are outside of our control , such as brexit , other events impacting the u.s. or global economy generally or the u.s. residential market specifically , and events or headlines impacting the parties with which we do business . see “item 1a . risk factors – risks related to our business.” our rmbs are carried at their fair value , as available-for-sale in accordance with asc 320 , accounting for certain investments in debt or equity securities , with changes in fair value recorded through accumulated other 33 comprehensive income ( loss ) , a component of stockholders ' equity . as a result , we do not expect that changes in the market value of our rmbs will normally impact our operating results , but such changes will affect our book value . however , at least on a quarterly basis , we assess both our ability and intent to continue to hold our rmbs as long-term investments . as part of this process , we monitor our rmbs for other-than-temporary impairment . a change in our ability and or intent to continue to hold any of our rmbs could result in our recognizing an impairment charge or realizing losses while holding these assets . impact of changes in market interest rates on our assets the value of our assets may be affected by prepayment rates on mortgage loans prepayment speed is the measurement of how quickly borrowers pay down the upb of their loans or how quickly loans are otherwise liquidated or charged off . generally , in a declining interest rate environment , prepayment speeds tend to increase . conversely , in an increasing interest rate environment , prepayment speeds tend to decrease . when we acquire servicing related assets or rmbs , we anticipate that the underlying mortgage loans will prepay at a projected rate generating an expected cash flow ( in the case of servicing related assets ) and yield . story_separator_special_tag for additional information on our fair value methodology , see “item 8. consolidated financial statements and supplementary data—note 9. fair value.” revenue recognition on investments in excess msrs investments in excess msrs are aggregated into pools as applicable and each pool of excess msrs is accounted for in the aggregate . income for excess msrs is accreted into income on an effective yield or “interest” method , based upon the expected excess servicing amount through the expected life of the underlying mortgages . changes to expected cash flows result in a cumulative retrospective adjustment , which will be recorded in the period in which the change in expected cash flows occurs . under the retrospective method , the income recognized for a reporting period is measured as the difference between the amortized cost basis at the end of the period and the amortized cost basis at the beginning of the period , plus any cash received during the period . the amortized cost basis is calculated as the present value of estimated future cash flows using an effective yield , which is the yield that equates all past actual and current estimated future cash flows to the initial investment . the difference between the fair value of excess msrs and their amortized cost basis are recorded as “unrealized gain ( loss ) on investments in excess mortgage servicing rights.” fair value is generally determined by discounting the expected future cash flows using discount rates that incorporate the market risks and liquidity premium specific to the excess msrs , and therefore may differ from their effective yields . 37 investments in msrs the company has elected the fair value option to record its investments in msrs in order to provide users of the consolidated financial statements with better information regarding the effects of prepayment risk and other market factors on the msrs . under this election , the company records a valuation adjustment on its investments in msrs on a quarterly basis to recognize the changes in fair value in net income as described below . the company 's msrs represent the right to service mortgage loans . as an owner and manager of msrs , the company may be obligated to fund advances of principal and interest payments due to third-party owners of the loans , but not yet received from the individual borrowers . these advances are reported as servicing advances within the “receivables and other assets” line item on the consolidated balance sheets . msrs are reported at fair value on the consolidated balance sheets . although transactions in msrs are observable in the marketplace , the valuation includes unobservable market data inputs ( prepayment speeds , delinquency levels , costs to service and discount rates ) . changes in the fair value of msrs as well as servicing fee income and servicing expenses are reported on the consolidated statements of income . in determining the valuation of msrs , management used internally developed models that are primarily based on observable market-based inputs but which also include unobservable market data inputs . see “item 8. consolidated financial statements - note 9—fair value.” . revenue recognition on investments in msrs mortgage servicing fee income represents revenue earned for servicing mortgage loans . the servicing fees are based on a contractual percentage of the outstanding principal balance and recognized as revenue as the related mortgage payments are collected . corresponding costs to service are charged to expense as incurred . approximately $ 1.5 million and $ 800,000 in reimbursable servicing advances were receivable at december 31 , 2016 and 2015 , respectively , and have been classified within “receivables and other assets” on the consolidated balance sheets . servicing fee income received and servicing expenses incurred are reported on the consolidated statements of comprehensive income ( loss ) . the difference between the fair value of msrs and their amortized cost basis is recorded on the consolidated statements of income as “unrealized gain ( loss ) on investments in msrs.” fair value is generally determined by discounting the expected future cash flows using discount rates that incorporate the market risks and liquidity premium specific to the msrs and , therefore , may differ from their effective yields . revenue recognition on securities interest income from coupon payments is accrued based on the outstanding principal amount of the rmbs and their contractual terms . premiums and discounts associated with the purchase of the rmbs are amortized into interest income over the projected lives of the securities using the interest method . our policy for estimating prepayment speeds for calculating the effective yield is to evaluate historical performance , consensus prepayment speeds , and current market conditions . adjustments are made for actual prepayment activity . repurchase transactions we finance the acquisition of our rmbs for our portfolio through repurchase transactions under master repurchase agreements . repurchase transactions are treated as collateralized financing transactions and are carried at their contractual amounts as specified in the respective transactions . accrued interest payable is included in “accrued expense and other liabilities” on the consolidated balance sheets . 38 securities financed through repurchase transactions remain on our consolidated balance sheets as an asset and cash received from the purchaser is recorded on our consolidated balance sheets as a liability . interest paid in accordance with repurchase transactions is recorded in interest expense . income taxes the company elected to be taxed as a reit under the code commencing with its short taxable year ended december 31 , 2013. the company expects to continue to qualify to be treated as a reit . as long as the company qualifies as a reit , the company generally will not be subject to u.s. federal income taxes on its taxable income to the extent it annually distributes at least 90 % of its reit taxable income to stockholders and does not engage in prohibited transactions . the company 's taxable reit subsidiaries ( “trss” ) , solutions and

cash flows operating and investing activities our operating activities provided cash of approximately $ 34.5 million and our investing activities used cash of approximately $ 146.1 million for the year ended december 31 , 2016. the cash provided by operating activities and the cash used in investing activities is a result of the execution of our ongoing investment strategy . dividends we conduct our operations in a manner intended to satisfy the requirements for qualification as a reit for u.s. federal income tax purposes . u.s. federal income tax law generally requires that a reit distribute annually at least 90 % of its reit taxable income , without regard to the deduction for dividends paid and excluding net capital gains , and that it pay tax at regular corporate rates to the extent that it annually distributes less than 100 % of its taxable income . we intend to make regular quarterly distributions of all or substantially all of our reit taxable income to holders of our common stock out of assets legally available for this purpose , if and to the extent authorized by our board of directors . before we pay any dividend , whether for u.s. federal income tax purposes or otherwise , we must first meet both our operating requirements and debt service on our repurchase agreements and other debt payable . if our cash available for distribution is less than our reit taxable income , we could be required to sell assets or borrow funds to make cash distributions , or we may make a portion of the required distribution in the form of a taxable stock distribution or distribution of debt securities . we will make distributions only upon the authorization of our board of directors .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 operating and investing activities our operating activities provided cash of approximately $ 34.5 million and our investing activities used cash of approximately $ 146.1 million for the year ended december 31 , 2016. the cash provided by operating activities and the cash used in investing activities is a result of the execution of our ongoing investment strategy . dividends we conduct our operations in a manner intended to satisfy the requirements for qualification as a reit for u.s. federal income tax purposes . u.s. federal income tax law generally requires that a reit distribute annually at least 90 % of its reit taxable income , without regard to the deduction for dividends paid and excluding net capital gains , and that it pay tax at regular corporate rates to the extent that it annually distributes less than 100 % of its taxable income . we intend to make regular quarterly distributions of all or substantially all of our reit taxable income to holders of our common stock out of assets legally available for this purpose , if and to the extent authorized by our board of directors . before we pay any dividend , whether for u.s. federal income tax purposes or otherwise , we must first meet both our operating requirements and debt service on our repurchase agreements and other debt payable . if our cash available for distribution is less than our reit taxable income , we could be required to sell assets or borrow funds to make cash distributions , or we may make a portion of the required distribution in the form of a taxable stock distribution or distribution of debt securities . we will make distributions only upon the authorization of our board of directors . ``` Suspicious Activity Report : during the second half of 2015 , we also used advances from the fhlbi to finance our agency rmbs . we have also invested in agency cmos consisting of interest-only securities as well as risk-sharing securities issued by fannie mae and freddie mac . in january 2016 , the fhfa released a final rule that amends regulations governing membership in the federal home loan bank ( “fhlb” ) system . the final rule , which largely adopts the provisions included in the proposed rule issued by the fhfa in september 2014 , prevents captive insurance companies from obtaining and maintaining membership in the fhlb system and , consequently , accessing low-cost funding through the fhlb system . the final rule became effective on february 19 , 2016. as a result of this rule , chmi insurance , our captive insurance subsidiary , terminated its membership in the fhlbi in november and was dissolved in december 2016 . 32 subject to maintaining our qualification as a reit , we utilize derivative financial instruments ( or hedging instruments ) to hedge our exposure to potential interest rate mismatches between the interest we earn on our assets and our borrowing costs caused by fluctuations in short-term interest rates . in utilizing leverage and interest rate hedges , our objectives include , where desirable , locking in , on a long-term basis , a spread between the yield on our assets and the cost of our financing in an effort to improve returns to our stockholders . we also operate our business in a manner that permits us to maintain our exclusion from registration as an investment company under the investment company act . factors impacting our operating results our income is generated primarily by the net spread between the income we earn on our assets and the cost of our financing and hedging activities as well as the amortization of any purchase premiums or the accretion of discounts . our net income includes the actual interest payments we receive on our excess msrs , if any , and rmbs , the net servicing fee we receive on our msrs and the accretion/amortization of any purchase discounts/premiums . changes in various factors such as market interest rates , prepayment speeds , estimated future cash flows , servicing costs and credit quality could affect the amount of premium to be amortized or discount to be accreted into interest income for a given period . market interest rates and prepayment rates vary according to the type of investment , conditions in the financial markets , competition and other factors , none of which can be predicted with any certainty . our operating results may also be affected by credit losses in excess of initial anticipations or unanticipated credit events experienced by borrowers whose mortgage loans underlay the msrs held by aurora . set forth below is the positive gross spread between the yield on rmbs and our costs of funding those assets at the end of each of the quarters indicated below : average net yield spread at period end replace_table_token_6_th the average net interest spread has fluctuated but risen over the past two years . during that time , we have strategically taken the opportunity to reduce our average cost of funds by restructuring our swaps portfolio as interest rates declined . the new positioning helped to partially offset increased repurchase rates charged by our counterparties in anticipation of increases in the federal funds rate . changes in the market value of our assets we hold our servicing related assets as long-term investments . our excess msrs were , and our msrs are , carried at their fair value with changes in their fair value recorded in other income or loss in our consolidated statements of operations . those values may be affected by events or headlines that are outside of our control , such as brexit , other events impacting the u.s. or global economy generally or the u.s. residential market specifically , and events or headlines impacting the parties with which we do business . see “item 1a . risk factors – risks related to our business.” our rmbs are carried at their fair value , as available-for-sale in accordance with asc 320 , accounting for certain investments in debt or equity securities , with changes in fair value recorded through accumulated other 33 comprehensive income ( loss ) , a component of stockholders ' equity . as a result , we do not expect that changes in the market value of our rmbs will normally impact our operating results , but such changes will affect our book value . however , at least on a quarterly basis , we assess both our ability and intent to continue to hold our rmbs as long-term investments . as part of this process , we monitor our rmbs for other-than-temporary impairment . a change in our ability and or intent to continue to hold any of our rmbs could result in our recognizing an impairment charge or realizing losses while holding these assets . impact of changes in market interest rates on our assets the value of our assets may be affected by prepayment rates on mortgage loans prepayment speed is the measurement of how quickly borrowers pay down the upb of their loans or how quickly loans are otherwise liquidated or charged off . generally , in a declining interest rate environment , prepayment speeds tend to increase . conversely , in an increasing interest rate environment , prepayment speeds tend to decrease . when we acquire servicing related assets or rmbs , we anticipate that the underlying mortgage loans will prepay at a projected rate generating an expected cash flow ( in the case of servicing related assets ) and yield . story_separator_special_tag for additional information on our fair value methodology , see “item 8. consolidated financial statements and supplementary data—note 9. fair value.” revenue recognition on investments in excess msrs investments in excess msrs are aggregated into pools as applicable and each pool of excess msrs is accounted for in the aggregate . income for excess msrs is accreted into income on an effective yield or “interest” method , based upon the expected excess servicing amount through the expected life of the underlying mortgages . changes to expected cash flows result in a cumulative retrospective adjustment , which will be recorded in the period in which the change in expected cash flows occurs . under the retrospective method , the income recognized for a reporting period is measured as the difference between the amortized cost basis at the end of the period and the amortized cost basis at the beginning of the period , plus any cash received during the period . the amortized cost basis is calculated as the present value of estimated future cash flows using an effective yield , which is the yield that equates all past actual and current estimated future cash flows to the initial investment . the difference between the fair value of excess msrs and their amortized cost basis are recorded as “unrealized gain ( loss ) on investments in excess mortgage servicing rights.” fair value is generally determined by discounting the expected future cash flows using discount rates that incorporate the market risks and liquidity premium specific to the excess msrs , and therefore may differ from their effective yields . 37 investments in msrs the company has elected the fair value option to record its investments in msrs in order to provide users of the consolidated financial statements with better information regarding the effects of prepayment risk and other market factors on the msrs . under this election , the company records a valuation adjustment on its investments in msrs on a quarterly basis to recognize the changes in fair value in net income as described below . the company 's msrs represent the right to service mortgage loans . as an owner and manager of msrs , the company may be obligated to fund advances of principal and interest payments due to third-party owners of the loans , but not yet received from the individual borrowers . these advances are reported as servicing advances within the “receivables and other assets” line item on the consolidated balance sheets . msrs are reported at fair value on the consolidated balance sheets . although transactions in msrs are observable in the marketplace , the valuation includes unobservable market data inputs ( prepayment speeds , delinquency levels , costs to service and discount rates ) . changes in the fair value of msrs as well as servicing fee income and servicing expenses are reported on the consolidated statements of income . in determining the valuation of msrs , management used internally developed models that are primarily based on observable market-based inputs but which also include unobservable market data inputs . see “item 8. consolidated financial statements - note 9—fair value.” . revenue recognition on investments in msrs mortgage servicing fee income represents revenue earned for servicing mortgage loans . the servicing fees are based on a contractual percentage of the outstanding principal balance and recognized as revenue as the related mortgage payments are collected . corresponding costs to service are charged to expense as incurred . approximately $ 1.5 million and $ 800,000 in reimbursable servicing advances were receivable at december 31 , 2016 and 2015 , respectively , and have been classified within “receivables and other assets” on the consolidated balance sheets . servicing fee income received and servicing expenses incurred are reported on the consolidated statements of comprehensive income ( loss ) . the difference between the fair value of msrs and their amortized cost basis is recorded on the consolidated statements of income as “unrealized gain ( loss ) on investments in msrs.” fair value is generally determined by discounting the expected future cash flows using discount rates that incorporate the market risks and liquidity premium specific to the msrs and , therefore , may differ from their effective yields . revenue recognition on securities interest income from coupon payments is accrued based on the outstanding principal amount of the rmbs and their contractual terms . premiums and discounts associated with the purchase of the rmbs are amortized into interest income over the projected lives of the securities using the interest method . our policy for estimating prepayment speeds for calculating the effective yield is to evaluate historical performance , consensus prepayment speeds , and current market conditions . adjustments are made for actual prepayment activity . repurchase transactions we finance the acquisition of our rmbs for our portfolio through repurchase transactions under master repurchase agreements . repurchase transactions are treated as collateralized financing transactions and are carried at their contractual amounts as specified in the respective transactions . accrued interest payable is included in “accrued expense and other liabilities” on the consolidated balance sheets . 38 securities financed through repurchase transactions remain on our consolidated balance sheets as an asset and cash received from the purchaser is recorded on our consolidated balance sheets as a liability . interest paid in accordance with repurchase transactions is recorded in interest expense . income taxes the company elected to be taxed as a reit under the code commencing with its short taxable year ended december 31 , 2013. the company expects to continue to qualify to be treated as a reit . as long as the company qualifies as a reit , the company generally will not be subject to u.s. federal income taxes on its taxable income to the extent it annually distributes at least 90 % of its reit taxable income to stockholders and does not engage in prohibited transactions . the company 's taxable reit subsidiaries ( “trss” ) , solutions and

other income increased by $ 3.1 million , or 16.5 % , when comparing the two fiscal years due mainly from an increase in tax return income of $ 2.8 million . 30 the provision for loan losses during fiscal 2017 increased by $ 5.0 million , or 4.0 % , from the previous year . this increase resulted from an increase in the amount of loans charged off as well as an increase in the amount of loans that were fully reserved during the year . net charge-offs for fiscal 2017 amounted to $ 125.4 million , a 1.5 % increase over the $ 123.6 million charged off during fiscal 2016 . we believe that the increase in charge-offs is the result of ceasing all in-person visits to delinquent borrowers in december 2015. accounts that were 60 days or more past due were 5.5 % and 4.7 % on a recency basis , and were 7.8 % and 7.1 % on a contractual basis at march 31 , 2017 and march 31 , 2016 , respectively . when excluding the impact of payroll deduct loans in mexico , the accounts contractually delinquent 60 days or more past due were 6.9 % at march 31 , 2017 compared to 6.4 % at march 31 , 2016. during the fiscal 2017 , the company also had an increase in year-over-year loan loss ratios . net charge-offs as a percentage of average net loans increased from 14.8 % during fiscal 2016 to 15.7 % during fiscal 2017 . during fiscal 2017 , the company had a charge-off ratio of 15.7 % , which is elevated compared to historical levels . from fiscal 2002 to fiscal 2006 , the charge-offs as a percent of average loans ranged from 14.6 % to 14.8 % . in fiscal 2007 , the company experienced a temporary decline to 13.3 % , which was attributed to a change in the bankruptcy law but returned to 14.5 % in fiscal 2008. in fiscal 2009 the ratio increased to 16.7 % , the highest in the company 's history as a result of the difficult economic environment and higher energy costs that our customers faced . the ratio steadily declined from 15.5 % in fiscal 2010 to 13.9 % in fiscal 2013 and increased to 14.7 % in fiscal 2014. general and administrative expenses during fiscal 2017 decreased by $ 1.5 million , or 0.5 % , over the previous fiscal year . personnel expense only increased $ 2.4 million despite the prior year benefiting from the release of $ 11.4 million of expense previously accrued for long-term equity incentive awards . other expense decreased due to $ 1.2 million of expense related to a planned bond offering that was not completed being recorded in fiscal 2016 as well as a $ 1.5 million decrease in mileage expense . occupancy and equipment expense decreased due to a $ 1.3 million loss taken as a result of the sale of the corporate jet in fiscal 2016. general and administrative expenses , when divided by average open branches , increased 0.4 % when comparing the two fiscal years and , overall , general and administrative expenses as a percent of total revenues increased to 50.3 % in fiscal 2017 from 48.3 % in fiscal 2016 . interest expense decreased by $ 5.3 million , or 19.9 % , during fiscal 2017 , as compared to the previous fiscal year as a result of a 3.6 % decrease in the effective rate and a decrease in average debt outstanding of 24.1 % . income tax expense decreased $ 10.1 million , or 20.0 % , primarily from a decrease in pre-tax income . the effective tax rate decreased to 35.4 % for fiscal 2017 compared to 36.6 % for fiscal 2016 . the decrease was primarily due to a reduction in state tax expense related to the company 's settlement with a state taxing authority during the current year . comparison of fiscal 2016 versus fiscal 2015 net income was $ 87.4 million during fiscal 2016 , a 21.1 % decrease from the $ 110.8 million earned during fiscal 2015. the decrease in net income was significantly impacted by a $ 10.0 million after-tax gain realized during fiscal 2015 from the sale of previously charged-off accounts that was not repeated in fiscal 2016 operating income ( revenues less provision for loan losses and general and administrative expenses ) excluding the impact of the charge-off sale decreased $ 18.6 million due to a $ 29.1 million decrease in interest and fee income and a $ 4.8 million increase in provision expense offset by a $ 22.9 million decrease in general and administrative expenses . net income was also impacted by a $ 14.7 million decrease in income tax expense and a $ 3.5 million increase in interest expense . total revenues decreased to $ 557.5 million in fiscal 2016 , a $ 52.7 million , or 8.6 % , decrease from the $ 610.2 million in fiscal 2015. revenues from the 1,233 branches open throughout both fiscal years decreased by 6.9 % . at march 31 , 2016 , the company had 1,339 branches in operation , an increase of 19 branches from march 31 , 2015. interest and fee income during fiscal 2016 decreased by $ 29.1 million , or 5.6 % , from fiscal 2015. we experienced a 3.3 % decrease in our average net loans receivable less loans that are 60 days or more contractually past due when comparing two corresponding periods for our u.s. and traditional mexican loans . the accrual of interest is discontinued when a loan becomes 60 days or more past the contractual due date and all unpaid accrued interest is reversed against interest income . interest and fee income for the year was also negatively impacted by a continued decrease in volumes . story_separator_special_tag to overcome this presumption of inability to repay , the lender would have to verify an improvement in the borrower 's financial capacity to indicate an ability to repay the additional extension of credit . these proposals are subject to possible change before any final rules would be issued and implemented and we can not predict what the ultimate rulemaking will provide . the company does not believe that these proposals as currently described by the cfpb would have a material impact on the company 's existing lending procedures , because the company currently underwrites all its loans ( including those secured by a vehicle title that would fall within the scope of these proposals ) by reviewing the customer 's ability to repay based on the company 's standards . however , there can be no assurance that these proposals for longer-term loans , if and when implemented in final rulemaking , would not require changes to the company 's practices and procedures for such loans that could materially and adversely affect the company 's ability to make such loans , the cost of making such loans , the company 's ability to , or frequency with which it could , refinance any such loans , and the profitability of such loans . any final rulemaking also could have effects beyond those contemplated in the initial proposal that could further materially and adversely impact our business and operations . the cfpb 's outline of the proposed rulemaking initiative described above , the cfpb also stated that it expects to conduct separate rulemaking to identify larger participants in the installment lending market for purposes of its supervision program . though the timing of any such rulemaking is uncertain , the company believes that the implementation of such rules would likely bring the company 's business under the cfpb 's supervisory authority which , among other things , would subject the company to reporting obligations to , and on-site compliance examinations by , the cfpb . see part i , item 1 , “ business - government regulation - federal legislation , ” for a further discussion of these matters and the federal regulations to which the company 's operations are subject and part i , item 1a , “ risk factors , ” for more information regarding these regulatory and related risks . military lending act 34 in july 2015 , the department of defense ( the “ dod ” ) amended its regulations implementing the military lending act ( the “ mla ” ) by issuing final regulations ( the “ final rule ” ) . prior mla regulations prohibited creditors from making payday loans , non-purchase money motor vehicle title loans with a term of less than 181 days , and refund anticipation loans to “ covered borrowers , ” which includes members of the armed forces ( i ) on active duty ; ( ii ) on active guard and reserve duty ; and ( iii ) their dependents if the apr exceeded 36 % . the company did not make any of the loans covered under the prior mla regulations . however , the final rule expands the mla and its 36 % apr cap to cover a broader range of credit products . the final rule covers credit offered or extended to a “ covered borrower ” primarily for personal , family , or household purposes that is either subject to a finance charge or payable by a written agreement in more than four installments . the final rule mandates , among other things , that a creditor must provide both oral and written disclosures , including an all-inclusive apr referred to as the military annual percentage rate ( “ mapr ” ) , and must not require arbitration in agreements with “ covered borrowers . `` additionally , the final rule prohibits creditors from entering into any credit transactions with covered borrowers that use the title of a vehicle as security for the credit obligation . creditors may elect to check a borrower 's status as a “ covered borrower ” either in a database maintained by the dod or through a nationwide consumer reporting agency before entering into a consumer credit transaction . doing so provides a creditor with a legally conclusive determination as to the borrower 's status and affords the creditor a safe harbor from liability as to the “ covered borrower ” determination . while the final rule became effective on october 1 , 2015 , the limitations in the final rule apply only to consumer credit transactions or accounts for consumer credit consummated or established on or after october 3 , 2016. as such , effective september 1 , 2016 , the company elected to no longer make loans to covered borrowers ( active duty military personnel and their dependents ) due to these new restrictions in the law . the company believes the implementation of the final rule will not adversely affect its operations or financial condition . new mexico rate cap bills on december 15 , 2016 , a bill was pre-filed in the new mexico state senate , which , if enacted , would place a 36 % rate cap on any contract for the extension of credit entered into after july 1 , 2017. this initiative was tabled in early february 2015 by a legislative committee . if similar legislation is passed in any of the states in which we operate , it could materially and adversely affect , or in the worst case eliminate , the company 's lending practices , operations , profitability or prospects . the company , through its state and federal trade associations , worked to oppose this legislation ; however , it is uncertain whether these efforts will be successful in preventing the passage of similar legislation in the future . as discussed elsewhere in this report , the company 's operations are subject to extensive state and federal

liquidity and capital resources the company has financed and continues to finance its operations , acquisitions and branch expansion through a combination of cash flows from operations and borrowings from its institutional lenders . the company has generally applied its cash flows from operations to fund its loan volume , fund acquisitions , repay long-term indebtedness and repurchase its common stock . as the company 's gross loans receivable decreased from $ 1,112.3 million at march 31 , 2014 to $ 1,059.8 million at march 31 , 2017 , net cash provided by operating activities for fiscal years 2017 , 2016 and 2015 was $ 219.4 million , $ 206.1 million and $ 241.9 million , respectively . the company continues to believe stock repurchases to be a viable component of the company 's long-term financial strategy and an excellent use of excess cash when the opportunity arises . however , our amended credit facility limits share repurchases to 50 % of consolidated adjusted net income in any fiscal year commencing with the fiscal year ending march 31 , 2017. the company plans to open or acquire approximately 25 branches in the united states during fiscal 2018 . expenditures by the company to open and furnish new branches averaged approximately $ 35,000 per branch during fiscal 2017 .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 financed and continues to finance its operations , acquisitions and branch expansion through a combination of cash flows from operations and borrowings from its institutional lenders . the company has generally applied its cash flows from operations to fund its loan volume , fund acquisitions , repay long-term indebtedness and repurchase its common stock . as the company 's gross loans receivable decreased from $ 1,112.3 million at march 31 , 2014 to $ 1,059.8 million at march 31 , 2017 , net cash provided by operating activities for fiscal years 2017 , 2016 and 2015 was $ 219.4 million , $ 206.1 million and $ 241.9 million , respectively . the company continues to believe stock repurchases to be a viable component of the company 's long-term financial strategy and an excellent use of excess cash when the opportunity arises . however , our amended credit facility limits share repurchases to 50 % of consolidated adjusted net income in any fiscal year commencing with the fiscal year ending march 31 , 2017. the company plans to open or acquire approximately 25 branches in the united states during fiscal 2018 . expenditures by the company to open and furnish new branches averaged approximately $ 35,000 per branch during fiscal 2017 . ``` Suspicious Activity Report : other income increased by $ 3.1 million , or 16.5 % , when comparing the two fiscal years due mainly from an increase in tax return income of $ 2.8 million . 30 the provision for loan losses during fiscal 2017 increased by $ 5.0 million , or 4.0 % , from the previous year . this increase resulted from an increase in the amount of loans charged off as well as an increase in the amount of loans that were fully reserved during the year . net charge-offs for fiscal 2017 amounted to $ 125.4 million , a 1.5 % increase over the $ 123.6 million charged off during fiscal 2016 . we believe that the increase in charge-offs is the result of ceasing all in-person visits to delinquent borrowers in december 2015. accounts that were 60 days or more past due were 5.5 % and 4.7 % on a recency basis , and were 7.8 % and 7.1 % on a contractual basis at march 31 , 2017 and march 31 , 2016 , respectively . when excluding the impact of payroll deduct loans in mexico , the accounts contractually delinquent 60 days or more past due were 6.9 % at march 31 , 2017 compared to 6.4 % at march 31 , 2016. during the fiscal 2017 , the company also had an increase in year-over-year loan loss ratios . net charge-offs as a percentage of average net loans increased from 14.8 % during fiscal 2016 to 15.7 % during fiscal 2017 . during fiscal 2017 , the company had a charge-off ratio of 15.7 % , which is elevated compared to historical levels . from fiscal 2002 to fiscal 2006 , the charge-offs as a percent of average loans ranged from 14.6 % to 14.8 % . in fiscal 2007 , the company experienced a temporary decline to 13.3 % , which was attributed to a change in the bankruptcy law but returned to 14.5 % in fiscal 2008. in fiscal 2009 the ratio increased to 16.7 % , the highest in the company 's history as a result of the difficult economic environment and higher energy costs that our customers faced . the ratio steadily declined from 15.5 % in fiscal 2010 to 13.9 % in fiscal 2013 and increased to 14.7 % in fiscal 2014. general and administrative expenses during fiscal 2017 decreased by $ 1.5 million , or 0.5 % , over the previous fiscal year . personnel expense only increased $ 2.4 million despite the prior year benefiting from the release of $ 11.4 million of expense previously accrued for long-term equity incentive awards . other expense decreased due to $ 1.2 million of expense related to a planned bond offering that was not completed being recorded in fiscal 2016 as well as a $ 1.5 million decrease in mileage expense . occupancy and equipment expense decreased due to a $ 1.3 million loss taken as a result of the sale of the corporate jet in fiscal 2016. general and administrative expenses , when divided by average open branches , increased 0.4 % when comparing the two fiscal years and , overall , general and administrative expenses as a percent of total revenues increased to 50.3 % in fiscal 2017 from 48.3 % in fiscal 2016 . interest expense decreased by $ 5.3 million , or 19.9 % , during fiscal 2017 , as compared to the previous fiscal year as a result of a 3.6 % decrease in the effective rate and a decrease in average debt outstanding of 24.1 % . income tax expense decreased $ 10.1 million , or 20.0 % , primarily from a decrease in pre-tax income . the effective tax rate decreased to 35.4 % for fiscal 2017 compared to 36.6 % for fiscal 2016 . the decrease was primarily due to a reduction in state tax expense related to the company 's settlement with a state taxing authority during the current year . comparison of fiscal 2016 versus fiscal 2015 net income was $ 87.4 million during fiscal 2016 , a 21.1 % decrease from the $ 110.8 million earned during fiscal 2015. the decrease in net income was significantly impacted by a $ 10.0 million after-tax gain realized during fiscal 2015 from the sale of previously charged-off accounts that was not repeated in fiscal 2016 operating income ( revenues less provision for loan losses and general and administrative expenses ) excluding the impact of the charge-off sale decreased $ 18.6 million due to a $ 29.1 million decrease in interest and fee income and a $ 4.8 million increase in provision expense offset by a $ 22.9 million decrease in general and administrative expenses . net income was also impacted by a $ 14.7 million decrease in income tax expense and a $ 3.5 million increase in interest expense . total revenues decreased to $ 557.5 million in fiscal 2016 , a $ 52.7 million , or 8.6 % , decrease from the $ 610.2 million in fiscal 2015. revenues from the 1,233 branches open throughout both fiscal years decreased by 6.9 % . at march 31 , 2016 , the company had 1,339 branches in operation , an increase of 19 branches from march 31 , 2015. interest and fee income during fiscal 2016 decreased by $ 29.1 million , or 5.6 % , from fiscal 2015. we experienced a 3.3 % decrease in our average net loans receivable less loans that are 60 days or more contractually past due when comparing two corresponding periods for our u.s. and traditional mexican loans . the accrual of interest is discontinued when a loan becomes 60 days or more past the contractual due date and all unpaid accrued interest is reversed against interest income . interest and fee income for the year was also negatively impacted by a continued decrease in volumes . story_separator_special_tag to overcome this presumption of inability to repay , the lender would have to verify an improvement in the borrower 's financial capacity to indicate an ability to repay the additional extension of credit . these proposals are subject to possible change before any final rules would be issued and implemented and we can not predict what the ultimate rulemaking will provide . the company does not believe that these proposals as currently described by the cfpb would have a material impact on the company 's existing lending procedures , because the company currently underwrites all its loans ( including those secured by a vehicle title that would fall within the scope of these proposals ) by reviewing the customer 's ability to repay based on the company 's standards . however , there can be no assurance that these proposals for longer-term loans , if and when implemented in final rulemaking , would not require changes to the company 's practices and procedures for such loans that could materially and adversely affect the company 's ability to make such loans , the cost of making such loans , the company 's ability to , or frequency with which it could , refinance any such loans , and the profitability of such loans . any final rulemaking also could have effects beyond those contemplated in the initial proposal that could further materially and adversely impact our business and operations . the cfpb 's outline of the proposed rulemaking initiative described above , the cfpb also stated that it expects to conduct separate rulemaking to identify larger participants in the installment lending market for purposes of its supervision program . though the timing of any such rulemaking is uncertain , the company believes that the implementation of such rules would likely bring the company 's business under the cfpb 's supervisory authority which , among other things , would subject the company to reporting obligations to , and on-site compliance examinations by , the cfpb . see part i , item 1 , “ business - government regulation - federal legislation , ” for a further discussion of these matters and the federal regulations to which the company 's operations are subject and part i , item 1a , “ risk factors , ” for more information regarding these regulatory and related risks . military lending act 34 in july 2015 , the department of defense ( the “ dod ” ) amended its regulations implementing the military lending act ( the “ mla ” ) by issuing final regulations ( the “ final rule ” ) . prior mla regulations prohibited creditors from making payday loans , non-purchase money motor vehicle title loans with a term of less than 181 days , and refund anticipation loans to “ covered borrowers , ” which includes members of the armed forces ( i ) on active duty ; ( ii ) on active guard and reserve duty ; and ( iii ) their dependents if the apr exceeded 36 % . the company did not make any of the loans covered under the prior mla regulations . however , the final rule expands the mla and its 36 % apr cap to cover a broader range of credit products . the final rule covers credit offered or extended to a “ covered borrower ” primarily for personal , family , or household purposes that is either subject to a finance charge or payable by a written agreement in more than four installments . the final rule mandates , among other things , that a creditor must provide both oral and written disclosures , including an all-inclusive apr referred to as the military annual percentage rate ( “ mapr ” ) , and must not require arbitration in agreements with “ covered borrowers . `` additionally , the final rule prohibits creditors from entering into any credit transactions with covered borrowers that use the title of a vehicle as security for the credit obligation . creditors may elect to check a borrower 's status as a “ covered borrower ” either in a database maintained by the dod or through a nationwide consumer reporting agency before entering into a consumer credit transaction . doing so provides a creditor with a legally conclusive determination as to the borrower 's status and affords the creditor a safe harbor from liability as to the “ covered borrower ” determination . while the final rule became effective on october 1 , 2015 , the limitations in the final rule apply only to consumer credit transactions or accounts for consumer credit consummated or established on or after october 3 , 2016. as such , effective september 1 , 2016 , the company elected to no longer make loans to covered borrowers ( active duty military personnel and their dependents ) due to these new restrictions in the law . the company believes the implementation of the final rule will not adversely affect its operations or financial condition . new mexico rate cap bills on december 15 , 2016 , a bill was pre-filed in the new mexico state senate , which , if enacted , would place a 36 % rate cap on any contract for the extension of credit entered into after july 1 , 2017. this initiative was tabled in early february 2015 by a legislative committee . if similar legislation is passed in any of the states in which we operate , it could materially and adversely affect , or in the worst case eliminate , the company 's lending practices , operations , profitability or prospects . the company , through its state and federal trade associations , worked to oppose this legislation ; however , it is uncertain whether these efforts will be successful in preventing the passage of similar legislation in the future . as discussed elsewhere in this report , the company 's operations are subject to extensive state and federal

our gross margin continued to be impacted by higher product input costs , including materials and labor , which more than offset the positive impacts of higher product selling prices , the growth of our direct to consumer business and benefits from ongoing product cost reduction initiatives . for fiscal 2012 , the growth of our net income was negatively affected by a year-over-year increase in our effective tax rate . however , diluted earnings per share grew at a higher rate than net income due to a 3 % decrease in the weighted average number of diluted common shares outstanding , driven by share repurchases during fiscal 2012 and 2011. as part of our long-term growth strategy , we continually evaluate our existing portfolio of businesses to ensure the company is investing in those businesses that are accretive to the nike brand , and with the largest growth potential and highest returns . on may 31 , 2012 , we announced our intention to divest of the cole haan and umbro businesses , which will allow us to focus our resources on driving growth in the nike , jordan , converse and hurley brands . for additional details , refer to our “other businesses” section below . while we will continue to face headwinds from higher input costs and foreign exchange volatility in fiscal 2013 , we continue to see opportunities to drive future growth and remain committed to effectively managing our business to achieve our financial goals over the long-term , by executing against the operational strategies outlined above . results of operations replace_table_token_5_th 16 consolidated operating results revenues replace_table_token_6_th ( 1 ) results have been restated using actual exchange rates in use during the comparative period to enhance the visibility of the underlying business trends by excluding the impact of translation arising from foreign currency exchange rate fluctuations . ( 2 ) corporate revenues primarily consist of intercompany revenue eliminations and foreign currency revenue-related hedge gains and losses generated by entities within the nike brand geographic operating segments and certain other businesses through our centrally managed foreign exchange risk management program . ( 3 ) references to nike brand wholesale equivalent revenues are intended to provide context as to the overall current nike brand market footprint on a wholesale revenue basis . nike brand wholesale equivalent revenues consist of 1 ) sales to external wholesale customers and 2 ) internal sales from our wholesale operations to our direct to consumer operations at prices that are comparable to prices charged to external wholesale customers . nike brand wholesale equivalent revenues do not include the estimation of sales made by nike brand licensees as the amounts are not material . ( 4 ) others include all other categories and certain adjustments that are not allocated at the category level . 17 fiscal 2012 compared to fiscal 2011 on a currency neutral basis , revenues for nike , inc. grew 14 % for fiscal 2012 , driven by increases in revenues for both the nike brand and our other businesses . excluding the effects of changes in currency exchange rates , revenues for the nike brand increased 15 % , as every nike brand geography delivered higher revenues for fiscal 2012. north america contributed approximately 7 percentage points to the nike brand revenue increase , while the emerging markets and greater china geographies contributed approximately 4 and 2 percentage points to the nike brand revenue growth , respectively . revenues for our other businesses grew 11 % during fiscal 2012 , contributing 1 percentage point of our consolidated revenue growth . excluding the effects of changes in currency exchange rates , nike brand footwear and apparel revenue increased 15 % and 13 % , respectively , while nike brand equipment revenues increased 16 % during fiscal 2012. continuing to fuel the growth of our nike brand footwear business was the increased demand for performance products , including the nike lunar and free technologies . the increase in nike brand footwear revenue for fiscal 2012 was attributable to double-digit percentage growth in unit sales along with a low-single-digit percentage increase in average selling price per pair , primarily reflecting the favorable impact from product price increases , partially offset by higher discounts on close-out sales . the overall increase in footwear sales was driven by growth across all key categories , notably running , sportswear and basketball . for nike brand apparel , the increase in revenue for fiscal 2012 was driven by mid-single-digit percentage increases in both unit sales and average selling prices . the increase in average selling prices was primarily driven by product price increases , partially offset by a higher mix of close-out sales . the overall increase in apparel sales was reflective of increased demand across most key categories . while wholesale revenues remain the largest component of overall nike brand revenues , we continue to see growth in revenue through our direct to consumer channels . our nike brand direct to consumer operations include nike owned in-line and factory stores , as well as online sales through nike owned websites . for fiscal 2012 , direct to consumer channels represented approximately 17 % of our total nike brand revenues compared to 16 % in fiscal 2011. on a currency neutral basis , direct to consumer revenues grew 21 % for fiscal 2012 , as comparable store sales grew 13 % and we continue to expand our store network and e-commerce business . comparable store sales include revenues from nike owned in-line and factory stores for which all three of the following requirements have been met : the store has been open at least one year , square footage has not changed by more than 15 % within the past year , and the store has not been permanently repositioned within the past year . story_separator_special_tag for fiscal 2011 , the increase in north america 's ebit was primarily the result of revenue growth and leverage on selling and administrative expense , which more than offset a lower gross margin percentage . the decline in gross margin percentage was due primarily to increased air freight and product input costs , which more than offset the favorable impact from the growth of our direct to consumer business and fewer close-out sales . western europe replace_table_token_15_th fiscal 2012 compared to fiscal 2011 on a currency neutral basis , revenues for western europe increased 4 % for fiscal 2012 , as most territories reported revenue growth , which more than offset revenue declines in the u.k. & ireland and italy . revenues for the u.k. & ireland , the largest market in western europe , declined 3 % for the fiscal 2012 period . western europe 's direct to consumer revenues grew 18 % for fiscal 2012 , including 8 % growth in comparable store sales . excluding changes in currency exchange rates , footwear revenue in western europe increased 5 % for fiscal 2012 , primarily driven by a low-single-digit percentage growth in both unit sales and average selling price per pair , primarily reflective of product price increases , partially offset by higher discounts on in-line and close-out sales . the overall increase in footwear sales was driven by growth in running , basketball and football ( soccer ) , which more than offset a decline in action sports . excluding changes in currency exchange rates , apparel revenue in western europe increased 2 % for fiscal 2012. the year-over-year change was primarily driven by a mid-single-digit percentage increase in average selling price per unit , reflective of higher product prices . partially offsetting the increase in average selling price per unit was a mid-single-digit percentage decline in unit sales . the overall increase in apparel sales was driven by growth in football ( soccer ) and running , which more than offset a decline in sportswear . on a reported basis , revenues for western europe increased 7 % for fiscal 2012. however , ebit fell 18 % , primarily driven by a 350 basis point decline in gross margin and higher selling and administrative expense as a percentage of revenues . the decline in gross margin was driven by higher product input costs and the negative impact from changes in standard currency rates , which more than offset the favorable impact of product price increases and the growth of our direct to consumer business . the increase in selling and administrative expense as a percentage of revenues was mainly driven by an increased level of demand creation spending around the european football championships and london summer olympics . also reflected in western europe 's fiscal 2012 results was a $ 24 million charge relating to the restructuring of its operations . 22 fiscal 2011 compared to fiscal 2010 on a currency neutral basis , revenues for western europe increased 6 % for fiscal 2011 , attributable to growth in most territories . revenues for the u.k. & ireland , the largest market in western europe , grew 5 % for fiscal 2011. western europe 's direct to consumer revenues grew 10 % , which contributed approximately 1 percentage point to western europe 's revenue increase . the growth in the direct to consumer business was fueled by 6 % growth in comparable store sales . excluding changes in currency exchange rates , footwear revenue in western europe increased 8 % , driven by double-digit percentage growth in running , football ( soccer ) and action sports , which more than offset a slight revenue decline in sportswear . on a currency neutral basis , apparel revenue in western europe increased 4 % , primarily driven by double-digit percentage growth in football ( soccer ) and running , which more than offset a mid-single-digit revenue decline in sportswear . for fiscal 2011 , the decrease in western europe 's ebit was driven by unfavorable foreign currency translation and a lower gross margin percentage , all of which more than offset the increase in revenues and improved leverage on selling and administrative expense . the decline in the gross margin percentage was significantly impacted by the unfavorable year-over-year standard currency rates . also contributing to the decrease in the gross margin percentage was higher product input and air freight costs , higher royalty expenses related to sales of endorsed team products and higher full price discounts . these factors more than offset the favorable impact of fewer close-out sales . central & eastern europe replace_table_token_16_th fiscal 2012 compared to fiscal 2011 excluding the changes in currency exchange rates , revenues for central & eastern europe increased 17 % for fiscal 2012 , driven by growth across most territories , including double-digit growth in russia and turkey , which more than offset lower revenues in greece . excluding changes in currency exchange rates , central & eastern europe 's footwear revenue grew 13 % , primarily driven by double-digit percentage growth in unit sales and a low-single-digit percentage increase in average selling price per pair . the increase in average selling price per pair was reflective of product price increases which more than offset the negative impact of higher discounts on in-line and close-out sales . the overall increase in footwear sales was driven by growth across all key categories , most notably running , sportswear and football ( soccer ) . excluding changes in currency exchange rates , central & eastern europe 's apparel revenues grew 24 % , mainly driven by double-digit percentage growth in unit sales , offset by a slight decrease in average price per unit , mainly due to less favorable product mix and higher discounts on in-line sales , which more than offset the impact from product price increases . the overall increase in apparel sales was primarily driven by growth in

cash flow activity cash provided by operations was $ 1.9 billion for fiscal 2012 compared to $ 1.8 billion for fiscal 2011. our primary source of operating cash flow for fiscal 2012 was net income of $ 2.2 billion . our working capital was a net cash outflow of $ 799 million for fiscal 2012 as compared to a net cash outflow of $ 708 million for fiscal 2011. our investments in working capital increased primarily due to an increase in inventory and prepaid expenses . inventory at the end of fiscal 2012 increased 23 % compared to fiscal 2011 , primarily due to higher product input costs as well as changes in product mix , which more than offset the favorable impact of changes in currency exchange rates . inventory units for the nike brand grew 10 % compared to the prior year , driven by growth in futures orders and improved factory deliveries . the increase in prepaid expenses was primarily driven by higher prepaid demand creation expenses around the european football championships and london summer olympics . cash provided by investing activities was $ 514 million during fiscal 2012 , compared to a use of cash of $ 1,021 million for fiscal 2011. the year-over-year increase was primarily due to higher net sales and maturities of short-term investments of $ 1,124 million ( net of purchases ) in fiscal 2012 , compared to net purchases of $ 537 million ( net of sales and maturities ) during fiscal 2011. cash used by financing activities was $ 2.1 billion for fiscal 2012 compared to $ 2.0 billion for fiscal 2011. the increase in cash used by financing activities was primarily due to higher payments of long-term debt , notes payable , and dividends , which was partially offset by an increase in the proceeds from the exercise of stock options . in fiscal 2012 , we purchased 20.0 million shares of nike 's class b common stock for $ 1.8 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 flow activity cash provided by operations was $ 1.9 billion for fiscal 2012 compared to $ 1.8 billion for fiscal 2011. our primary source of operating cash flow for fiscal 2012 was net income of $ 2.2 billion . our working capital was a net cash outflow of $ 799 million for fiscal 2012 as compared to a net cash outflow of $ 708 million for fiscal 2011. our investments in working capital increased primarily due to an increase in inventory and prepaid expenses . inventory at the end of fiscal 2012 increased 23 % compared to fiscal 2011 , primarily due to higher product input costs as well as changes in product mix , which more than offset the favorable impact of changes in currency exchange rates . inventory units for the nike brand grew 10 % compared to the prior year , driven by growth in futures orders and improved factory deliveries . the increase in prepaid expenses was primarily driven by higher prepaid demand creation expenses around the european football championships and london summer olympics . cash provided by investing activities was $ 514 million during fiscal 2012 , compared to a use of cash of $ 1,021 million for fiscal 2011. the year-over-year increase was primarily due to higher net sales and maturities of short-term investments of $ 1,124 million ( net of purchases ) in fiscal 2012 , compared to net purchases of $ 537 million ( net of sales and maturities ) during fiscal 2011. cash used by financing activities was $ 2.1 billion for fiscal 2012 compared to $ 2.0 billion for fiscal 2011. the increase in cash used by financing activities was primarily due to higher payments of long-term debt , notes payable , and dividends , which was partially offset by an increase in the proceeds from the exercise of stock options . in fiscal 2012 , we purchased 20.0 million shares of nike 's class b common stock for $ 1.8 billion . ``` Suspicious Activity Report : our gross margin continued to be impacted by higher product input costs , including materials and labor , which more than offset the positive impacts of higher product selling prices , the growth of our direct to consumer business and benefits from ongoing product cost reduction initiatives . for fiscal 2012 , the growth of our net income was negatively affected by a year-over-year increase in our effective tax rate . however , diluted earnings per share grew at a higher rate than net income due to a 3 % decrease in the weighted average number of diluted common shares outstanding , driven by share repurchases during fiscal 2012 and 2011. as part of our long-term growth strategy , we continually evaluate our existing portfolio of businesses to ensure the company is investing in those businesses that are accretive to the nike brand , and with the largest growth potential and highest returns . on may 31 , 2012 , we announced our intention to divest of the cole haan and umbro businesses , which will allow us to focus our resources on driving growth in the nike , jordan , converse and hurley brands . for additional details , refer to our “other businesses” section below . while we will continue to face headwinds from higher input costs and foreign exchange volatility in fiscal 2013 , we continue to see opportunities to drive future growth and remain committed to effectively managing our business to achieve our financial goals over the long-term , by executing against the operational strategies outlined above . results of operations replace_table_token_5_th 16 consolidated operating results revenues replace_table_token_6_th ( 1 ) results have been restated using actual exchange rates in use during the comparative period to enhance the visibility of the underlying business trends by excluding the impact of translation arising from foreign currency exchange rate fluctuations . ( 2 ) corporate revenues primarily consist of intercompany revenue eliminations and foreign currency revenue-related hedge gains and losses generated by entities within the nike brand geographic operating segments and certain other businesses through our centrally managed foreign exchange risk management program . ( 3 ) references to nike brand wholesale equivalent revenues are intended to provide context as to the overall current nike brand market footprint on a wholesale revenue basis . nike brand wholesale equivalent revenues consist of 1 ) sales to external wholesale customers and 2 ) internal sales from our wholesale operations to our direct to consumer operations at prices that are comparable to prices charged to external wholesale customers . nike brand wholesale equivalent revenues do not include the estimation of sales made by nike brand licensees as the amounts are not material . ( 4 ) others include all other categories and certain adjustments that are not allocated at the category level . 17 fiscal 2012 compared to fiscal 2011 on a currency neutral basis , revenues for nike , inc. grew 14 % for fiscal 2012 , driven by increases in revenues for both the nike brand and our other businesses . excluding the effects of changes in currency exchange rates , revenues for the nike brand increased 15 % , as every nike brand geography delivered higher revenues for fiscal 2012. north america contributed approximately 7 percentage points to the nike brand revenue increase , while the emerging markets and greater china geographies contributed approximately 4 and 2 percentage points to the nike brand revenue growth , respectively . revenues for our other businesses grew 11 % during fiscal 2012 , contributing 1 percentage point of our consolidated revenue growth . excluding the effects of changes in currency exchange rates , nike brand footwear and apparel revenue increased 15 % and 13 % , respectively , while nike brand equipment revenues increased 16 % during fiscal 2012. continuing to fuel the growth of our nike brand footwear business was the increased demand for performance products , including the nike lunar and free technologies . the increase in nike brand footwear revenue for fiscal 2012 was attributable to double-digit percentage growth in unit sales along with a low-single-digit percentage increase in average selling price per pair , primarily reflecting the favorable impact from product price increases , partially offset by higher discounts on close-out sales . the overall increase in footwear sales was driven by growth across all key categories , notably running , sportswear and basketball . for nike brand apparel , the increase in revenue for fiscal 2012 was driven by mid-single-digit percentage increases in both unit sales and average selling prices . the increase in average selling prices was primarily driven by product price increases , partially offset by a higher mix of close-out sales . the overall increase in apparel sales was reflective of increased demand across most key categories . while wholesale revenues remain the largest component of overall nike brand revenues , we continue to see growth in revenue through our direct to consumer channels . our nike brand direct to consumer operations include nike owned in-line and factory stores , as well as online sales through nike owned websites . for fiscal 2012 , direct to consumer channels represented approximately 17 % of our total nike brand revenues compared to 16 % in fiscal 2011. on a currency neutral basis , direct to consumer revenues grew 21 % for fiscal 2012 , as comparable store sales grew 13 % and we continue to expand our store network and e-commerce business . comparable store sales include revenues from nike owned in-line and factory stores for which all three of the following requirements have been met : the store has been open at least one year , square footage has not changed by more than 15 % within the past year , and the store has not been permanently repositioned within the past year . story_separator_special_tag for fiscal 2011 , the increase in north america 's ebit was primarily the result of revenue growth and leverage on selling and administrative expense , which more than offset a lower gross margin percentage . the decline in gross margin percentage was due primarily to increased air freight and product input costs , which more than offset the favorable impact from the growth of our direct to consumer business and fewer close-out sales . western europe replace_table_token_15_th fiscal 2012 compared to fiscal 2011 on a currency neutral basis , revenues for western europe increased 4 % for fiscal 2012 , as most territories reported revenue growth , which more than offset revenue declines in the u.k. & ireland and italy . revenues for the u.k. & ireland , the largest market in western europe , declined 3 % for the fiscal 2012 period . western europe 's direct to consumer revenues grew 18 % for fiscal 2012 , including 8 % growth in comparable store sales . excluding changes in currency exchange rates , footwear revenue in western europe increased 5 % for fiscal 2012 , primarily driven by a low-single-digit percentage growth in both unit sales and average selling price per pair , primarily reflective of product price increases , partially offset by higher discounts on in-line and close-out sales . the overall increase in footwear sales was driven by growth in running , basketball and football ( soccer ) , which more than offset a decline in action sports . excluding changes in currency exchange rates , apparel revenue in western europe increased 2 % for fiscal 2012. the year-over-year change was primarily driven by a mid-single-digit percentage increase in average selling price per unit , reflective of higher product prices . partially offsetting the increase in average selling price per unit was a mid-single-digit percentage decline in unit sales . the overall increase in apparel sales was driven by growth in football ( soccer ) and running , which more than offset a decline in sportswear . on a reported basis , revenues for western europe increased 7 % for fiscal 2012. however , ebit fell 18 % , primarily driven by a 350 basis point decline in gross margin and higher selling and administrative expense as a percentage of revenues . the decline in gross margin was driven by higher product input costs and the negative impact from changes in standard currency rates , which more than offset the favorable impact of product price increases and the growth of our direct to consumer business . the increase in selling and administrative expense as a percentage of revenues was mainly driven by an increased level of demand creation spending around the european football championships and london summer olympics . also reflected in western europe 's fiscal 2012 results was a $ 24 million charge relating to the restructuring of its operations . 22 fiscal 2011 compared to fiscal 2010 on a currency neutral basis , revenues for western europe increased 6 % for fiscal 2011 , attributable to growth in most territories . revenues for the u.k. & ireland , the largest market in western europe , grew 5 % for fiscal 2011. western europe 's direct to consumer revenues grew 10 % , which contributed approximately 1 percentage point to western europe 's revenue increase . the growth in the direct to consumer business was fueled by 6 % growth in comparable store sales . excluding changes in currency exchange rates , footwear revenue in western europe increased 8 % , driven by double-digit percentage growth in running , football ( soccer ) and action sports , which more than offset a slight revenue decline in sportswear . on a currency neutral basis , apparel revenue in western europe increased 4 % , primarily driven by double-digit percentage growth in football ( soccer ) and running , which more than offset a mid-single-digit revenue decline in sportswear . for fiscal 2011 , the decrease in western europe 's ebit was driven by unfavorable foreign currency translation and a lower gross margin percentage , all of which more than offset the increase in revenues and improved leverage on selling and administrative expense . the decline in the gross margin percentage was significantly impacted by the unfavorable year-over-year standard currency rates . also contributing to the decrease in the gross margin percentage was higher product input and air freight costs , higher royalty expenses related to sales of endorsed team products and higher full price discounts . these factors more than offset the favorable impact of fewer close-out sales . central & eastern europe replace_table_token_16_th fiscal 2012 compared to fiscal 2011 excluding the changes in currency exchange rates , revenues for central & eastern europe increased 17 % for fiscal 2012 , driven by growth across most territories , including double-digit growth in russia and turkey , which more than offset lower revenues in greece . excluding changes in currency exchange rates , central & eastern europe 's footwear revenue grew 13 % , primarily driven by double-digit percentage growth in unit sales and a low-single-digit percentage increase in average selling price per pair . the increase in average selling price per pair was reflective of product price increases which more than offset the negative impact of higher discounts on in-line and close-out sales . the overall increase in footwear sales was driven by growth across all key categories , most notably running , sportswear and football ( soccer ) . excluding changes in currency exchange rates , central & eastern europe 's apparel revenues grew 24 % , mainly driven by double-digit percentage growth in unit sales , offset by a slight decrease in average price per unit , mainly due to less favorable product mix and higher discounts on in-line sales , which more than offset the impact from product price increases . the overall increase in apparel sales was primarily driven by growth in

we have incurred losses in each year since our inception . our net losses were $ 41.1 million and $ 29.8 million for the years ended december 31 , 2020 and 2019 , respectively . as of december 31 , 2020 , we had an accumulated deficit of $ 143.7 million . we expect to continue to incur significant expenses and operating losses as we : expand our sales and marketing efforts to further commercialize our products ; continue research and development efforts to improve our existing products ; hire additional personnel ; enter into collaboration arrangements , if any ; add operational , financial and management information systems ; and incur increased costs as a result of operating as a public company . covid-19 we are subject to additional risks and uncertainties as a result of the continued spread of covid-19 and uncertain market conditions , which could continue to have a material impact on our business and financial results . the company closely monitors and complies with various applicable guidelines and legal requirements in the jurisdictions in which it operates , which may continue to result in reduced business operations in response to new or existing stay-at-home orders , travel restrictions and other social distancing measures . our manufacturing partners , suppliers , and customers , have implemented similar operational reductions . this overall reduction in activity has contributed to a decrease in sales which has negatively impacted the company 's 2020 financial results . the future effects of covid-19 are unknown and the company 's financial results may continue to be negatively affected in the future . there may be long-term negative effects of the covid-19 pandemic , even after it has subsided . specifically , product demand may be reduced due to an economic recession , a decrease in corporate capital expenditures , prolonged unemployment , reduction in consumer confidence , or any similar negative economic condition . these negative effects could have a material impact on our operations , business , earnings , and liquidity . initial public offering in august 2018 , we completed our initial public offering of our common stock , or the ipo , in which we sold an aggregate of 3,864,000 units ( each unit consisting of one share of our common stock and one warrant to purchase one share of our common stock ) at a public offering price of $ 6.125 per unit for net proceeds of $ 19.4 million , after deducting underwriters ' discounts and commissions of $ 2.2 million and other offering expenses of $ 2.1 million . follow-on public offerings in october 2019 , we completed an underwritten public offering of 10,014,000 shares of our common stock and , to certain investors , pre-funded warrants to purchase 10,924,000 shares of our common stock , and accompanying common warrants to purchase 63 up to an aggregate of 20,938,000 shares of our common stock . each share of common stock and pre-funded warrant to purchase one share of common stock was sold together with a common warrant to purchase one share of common stock . the public offering price of each share of common stock and accompanying common warrant was $ 0.86 and $ 0.859 , respectively . the pre-funded warrants are immediately exercisable at a price of $ 0.001 per share of common stock . the common warrants are immediately exercisable at a price of $ 0.86 per share of common stock and will expire five years from the date of issuance . the shares of common stock and pre-funded warrants , and the accompanying common warrants , were issued separately and were immediately separable upon issuance . we received gross proceeds , before deducting underwriting discounts and commissions and other offering expenses , of $ 18.0 million . in april 2020 , we completed an underwritten public offering of 16,896,000 shares of our common stock and , to certain investors , pre-funded warrants to purchase 37,650,000 shares of our common stock , and accompanying common warrants to purchase up to an aggregate of 54,546,000 shares of our common stock . each share of common stock and pre-funded warrant to purchase one share of common stock was sold together with a common warrant to purchase one share of common stock . the public offering price of each share of common stock and accompanying common warrant was $ 0.33 and $ 0.329 for each pre-funded warrant . the pre-funded warrants are immediately exercisable at a price of $ 0.001 per share of common stock . the common warrants are immediately exercisable at a price of $ 0.33 per share of common stock and will expire five years from the date of issuance . the shares of common stock and pre-funded warrants , and the accompanying common warrants , were issued separately and were immediately separable upon issuance . we received gross proceeds , before deducting underwriting discounts and commissions and other offering expenses , of $ 18.0 million . on january 12 , 2021 , we completed an underwritten public offering of 33,368,851 shares of our common stock , including 4,352,458 shares of our common stock sold pursuant to the underwriters ' exercise in full of their option to purchase additional shares . the price to the public in the offering was $ 3.05 per share and the underwriters purchased the shares from us pursuant to the underwriting agreement at a price of $ 2.867 per share . the gross proceeds to us were approximately $ 101.8 million before deducting underwriting discounts and commissions and other offering expenses . story_separator_special_tag contract liabilities are classified as other current liabilities and other long-term liabilities on the consolidated balance sheets . we recognized revenue of $ 357,492 and $ 270,171 during the years ended december 31 , 2020 and 2019 , respectively , which was included in the contract liability balance at the end of the previous year . distributor transactions in certain markets , we sell products and provide services to customers through distributors that specialize in life sciences products . in cases where the product is delivered to a distributor , revenue recognition generally occurs when title transfers to the distributor . the terms of sales transactions through distributors are generally consistent with the terms of direct sales to customers and do not contain return rights . distributor sales transactions typically differ from direct customer sales as they do not require our services to install the instrument at the end customer or perform the services for the customer that are beyond our standard warranty in the first year following the sale . these transactions are accounted for in accordance with our revenue recognition policy described herein . stock-based compensation expense we recognize compensation expense for employees based on an estimated grant date fair value using the black-scholes option-pricing method . we have elected to account for forfeitures as they occur . the inputs for the black-scholes valuation model require management 's significant assumptions . the common share price was determined by using the quoted price on the grant date . the risk-free interest rates were based on the rate for u.s. treasury securities at the date of grant with maturity dates approximately equal to the expected life at the grant date . the expected life was based on the simplified method in accordance with the sec staff accounting bulletin nos . 107 and 110. the expected volatility was estimated based on historical volatility information of peer companies that are publicly available . goodwill impairment we review goodwill annually at the reporting unit level at the same time every year or when an event occurs or circumstances change such that it is reasonably possible that an impairment may exist . we have established december 31 as the annual impairment test date . we first make a qualitative assessment as to whether goodwill is impaired and if it is more likely than not that goodwill is impaired , we perform a quantitative impairment analysis to determine if goodwill is impaired . we may also determine to skip the qualitative assessment in any year and move directly to the quantitative test . for the quantitative test , we determine the fair value of the reporting unit , then compare the fair value of the reporting unit to its carrying value . goodwill impairment is recorded for any excess of a reporting unit 's carrying amount over its fair value , not to exceed the total amount of goodwill allocated to the reporting unit . the determination of fair value requires a number of significant assumptions and judgments , including assumptions about future economic conditions , revenue growth , operating margins , and discount rates . 70 we have determined that the company is a single reporting unit for purposes of goodwill impairment testing . as of december 31 , 2020 , we performed a qualitative assessment of goodwill impairment which included an evaluation of changes in industry , market and macroeconomic conditions as well as consideration of our financial performance and any significant trends . our qualitative assessment indicated that it was not more likely that not that goodwill is impaired . no impairments of goodwill were reported during the years ended december 31 , 2020 and 2019. business combinations we apply the provisions of asc 805 , business combinations , in accounting for acquisitions . it requires us to recognize separately from goodwill the assets acquired and the liabilities assumed at the acquisition date fair values . goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed . while we use our best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as any contingent consideration , where applicable , our estimates are inherently uncertain and subject to refinement . as a result , during the measurement period , which may be up to one year from the acquisition date , we may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill . upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed , whichever comes first , any subsequent adjustments are required to be recorded to our consolidated statements of operations . accounting for business combinations requires management to make significant estimates and assumptions , especially at the acquisition date , including estimates for intangible assets , contractual obligations assumed , pre-acquisition contingencies and any contingent consideration , where applicable . although we believe that the assumptions and estimates we have made in the past have been reasonable and appropriate , they are based in part on historical experience and information obtained from management of the acquired company and are inherently uncertain . jobs act we are an “ emerging growth company , ” as defined in the jumpstart our business startups act , or jobs act . under the jobs act , an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards . this provision allows an emerging growth company to delay the adoption of new or revised accounting standards that have different transition dates for public and private companies until those standards would otherwise apply to private companies . we have elected to use this extended transition period . as a result of this election , our timeline to comply with these standards will in many

liquidity and capital resources since our inception , we have incurred net losses and negative cash flows from operations . we incurred net losses of $ 41.1 million , and $ 29.8 million , and used $ 38.3 million and $ 29.5 million of cash from our operating activities for the years ended december 31 , 2020 and 2019 , respectively . as of december 31 , 2020 , we had an accumulated deficit of $ 143.7 million and cash and cash equivalents of $ 38.4 million . sources of liquidity since our ipo , we have generated cash flows from sales of common stock and other equity instruments . we anticipate that future sources of liquidity will principally come from sales of common stock and other equity instruments , borrowings from credit facilities and revenue from our commercial operations . see note 9 to our consolidated financial statements for a discussion of our recent equity activity and note 8 to our consolidated financial statements for a discussion of terms and provisions of our debt included in this annual report on form 10-k for more information . cash flows we derive cash flows from operations primarily from the sale of our products and services . our cash flows from operating activities are also significantly influenced by our use of cash for operating expenses to support the growth of our business . we have historically experienced negative cash flows from operating activities as we have developed our technology , expanded our business and built our infrastructure and this may continue in the future .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources since our inception , we have incurred net losses and negative cash flows from operations . we incurred net losses of $ 41.1 million , and $ 29.8 million , and used $ 38.3 million and $ 29.5 million of cash from our operating activities for the years ended december 31 , 2020 and 2019 , respectively . as of december 31 , 2020 , we had an accumulated deficit of $ 143.7 million and cash and cash equivalents of $ 38.4 million . sources of liquidity since our ipo , we have generated cash flows from sales of common stock and other equity instruments . we anticipate that future sources of liquidity will principally come from sales of common stock and other equity instruments , borrowings from credit facilities and revenue from our commercial operations . see note 9 to our consolidated financial statements for a discussion of our recent equity activity and note 8 to our consolidated financial statements for a discussion of terms and provisions of our debt included in this annual report on form 10-k for more information . cash flows we derive cash flows from operations primarily from the sale of our products and services . our cash flows from operating activities are also significantly influenced by our use of cash for operating expenses to support the growth of our business . we have historically experienced negative cash flows from operating activities as we have developed our technology , expanded our business and built our infrastructure and this may continue in the future . ``` Suspicious Activity Report : we have incurred losses in each year since our inception . our net losses were $ 41.1 million and $ 29.8 million for the years ended december 31 , 2020 and 2019 , respectively . as of december 31 , 2020 , we had an accumulated deficit of $ 143.7 million . we expect to continue to incur significant expenses and operating losses as we : expand our sales and marketing efforts to further commercialize our products ; continue research and development efforts to improve our existing products ; hire additional personnel ; enter into collaboration arrangements , if any ; add operational , financial and management information systems ; and incur increased costs as a result of operating as a public company . covid-19 we are subject to additional risks and uncertainties as a result of the continued spread of covid-19 and uncertain market conditions , which could continue to have a material impact on our business and financial results . the company closely monitors and complies with various applicable guidelines and legal requirements in the jurisdictions in which it operates , which may continue to result in reduced business operations in response to new or existing stay-at-home orders , travel restrictions and other social distancing measures . our manufacturing partners , suppliers , and customers , have implemented similar operational reductions . this overall reduction in activity has contributed to a decrease in sales which has negatively impacted the company 's 2020 financial results . the future effects of covid-19 are unknown and the company 's financial results may continue to be negatively affected in the future . there may be long-term negative effects of the covid-19 pandemic , even after it has subsided . specifically , product demand may be reduced due to an economic recession , a decrease in corporate capital expenditures , prolonged unemployment , reduction in consumer confidence , or any similar negative economic condition . these negative effects could have a material impact on our operations , business , earnings , and liquidity . initial public offering in august 2018 , we completed our initial public offering of our common stock , or the ipo , in which we sold an aggregate of 3,864,000 units ( each unit consisting of one share of our common stock and one warrant to purchase one share of our common stock ) at a public offering price of $ 6.125 per unit for net proceeds of $ 19.4 million , after deducting underwriters ' discounts and commissions of $ 2.2 million and other offering expenses of $ 2.1 million . follow-on public offerings in october 2019 , we completed an underwritten public offering of 10,014,000 shares of our common stock and , to certain investors , pre-funded warrants to purchase 10,924,000 shares of our common stock , and accompanying common warrants to purchase 63 up to an aggregate of 20,938,000 shares of our common stock . each share of common stock and pre-funded warrant to purchase one share of common stock was sold together with a common warrant to purchase one share of common stock . the public offering price of each share of common stock and accompanying common warrant was $ 0.86 and $ 0.859 , respectively . the pre-funded warrants are immediately exercisable at a price of $ 0.001 per share of common stock . the common warrants are immediately exercisable at a price of $ 0.86 per share of common stock and will expire five years from the date of issuance . the shares of common stock and pre-funded warrants , and the accompanying common warrants , were issued separately and were immediately separable upon issuance . we received gross proceeds , before deducting underwriting discounts and commissions and other offering expenses , of $ 18.0 million . in april 2020 , we completed an underwritten public offering of 16,896,000 shares of our common stock and , to certain investors , pre-funded warrants to purchase 37,650,000 shares of our common stock , and accompanying common warrants to purchase up to an aggregate of 54,546,000 shares of our common stock . each share of common stock and pre-funded warrant to purchase one share of common stock was sold together with a common warrant to purchase one share of common stock . the public offering price of each share of common stock and accompanying common warrant was $ 0.33 and $ 0.329 for each pre-funded warrant . the pre-funded warrants are immediately exercisable at a price of $ 0.001 per share of common stock . the common warrants are immediately exercisable at a price of $ 0.33 per share of common stock and will expire five years from the date of issuance . the shares of common stock and pre-funded warrants , and the accompanying common warrants , were issued separately and were immediately separable upon issuance . we received gross proceeds , before deducting underwriting discounts and commissions and other offering expenses , of $ 18.0 million . on january 12 , 2021 , we completed an underwritten public offering of 33,368,851 shares of our common stock , including 4,352,458 shares of our common stock sold pursuant to the underwriters ' exercise in full of their option to purchase additional shares . the price to the public in the offering was $ 3.05 per share and the underwriters purchased the shares from us pursuant to the underwriting agreement at a price of $ 2.867 per share . the gross proceeds to us were approximately $ 101.8 million before deducting underwriting discounts and commissions and other offering expenses . story_separator_special_tag contract liabilities are classified as other current liabilities and other long-term liabilities on the consolidated balance sheets . we recognized revenue of $ 357,492 and $ 270,171 during the years ended december 31 , 2020 and 2019 , respectively , which was included in the contract liability balance at the end of the previous year . distributor transactions in certain markets , we sell products and provide services to customers through distributors that specialize in life sciences products . in cases where the product is delivered to a distributor , revenue recognition generally occurs when title transfers to the distributor . the terms of sales transactions through distributors are generally consistent with the terms of direct sales to customers and do not contain return rights . distributor sales transactions typically differ from direct customer sales as they do not require our services to install the instrument at the end customer or perform the services for the customer that are beyond our standard warranty in the first year following the sale . these transactions are accounted for in accordance with our revenue recognition policy described herein . stock-based compensation expense we recognize compensation expense for employees based on an estimated grant date fair value using the black-scholes option-pricing method . we have elected to account for forfeitures as they occur . the inputs for the black-scholes valuation model require management 's significant assumptions . the common share price was determined by using the quoted price on the grant date . the risk-free interest rates were based on the rate for u.s. treasury securities at the date of grant with maturity dates approximately equal to the expected life at the grant date . the expected life was based on the simplified method in accordance with the sec staff accounting bulletin nos . 107 and 110. the expected volatility was estimated based on historical volatility information of peer companies that are publicly available . goodwill impairment we review goodwill annually at the reporting unit level at the same time every year or when an event occurs or circumstances change such that it is reasonably possible that an impairment may exist . we have established december 31 as the annual impairment test date . we first make a qualitative assessment as to whether goodwill is impaired and if it is more likely than not that goodwill is impaired , we perform a quantitative impairment analysis to determine if goodwill is impaired . we may also determine to skip the qualitative assessment in any year and move directly to the quantitative test . for the quantitative test , we determine the fair value of the reporting unit , then compare the fair value of the reporting unit to its carrying value . goodwill impairment is recorded for any excess of a reporting unit 's carrying amount over its fair value , not to exceed the total amount of goodwill allocated to the reporting unit . the determination of fair value requires a number of significant assumptions and judgments , including assumptions about future economic conditions , revenue growth , operating margins , and discount rates . 70 we have determined that the company is a single reporting unit for purposes of goodwill impairment testing . as of december 31 , 2020 , we performed a qualitative assessment of goodwill impairment which included an evaluation of changes in industry , market and macroeconomic conditions as well as consideration of our financial performance and any significant trends . our qualitative assessment indicated that it was not more likely that not that goodwill is impaired . no impairments of goodwill were reported during the years ended december 31 , 2020 and 2019. business combinations we apply the provisions of asc 805 , business combinations , in accounting for acquisitions . it requires us to recognize separately from goodwill the assets acquired and the liabilities assumed at the acquisition date fair values . goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed . while we use our best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as any contingent consideration , where applicable , our estimates are inherently uncertain and subject to refinement . as a result , during the measurement period , which may be up to one year from the acquisition date , we may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill . upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed , whichever comes first , any subsequent adjustments are required to be recorded to our consolidated statements of operations . accounting for business combinations requires management to make significant estimates and assumptions , especially at the acquisition date , including estimates for intangible assets , contractual obligations assumed , pre-acquisition contingencies and any contingent consideration , where applicable . although we believe that the assumptions and estimates we have made in the past have been reasonable and appropriate , they are based in part on historical experience and information obtained from management of the acquired company and are inherently uncertain . jobs act we are an “ emerging growth company , ” as defined in the jumpstart our business startups act , or jobs act . under the jobs act , an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards . this provision allows an emerging growth company to delay the adoption of new or revised accounting standards that have different transition dates for public and private companies until those standards would otherwise apply to private companies . we have elected to use this extended transition period . as a result of this election , our timeline to comply with these standards will in many

we use third-party vendors and company-owned outlet stores to dispose of marked-out-of-stock merchandise . the primary drivers of the costs of individual goods are raw materials , labor in the countries where our merchandise is sourced , and logistics costs associated with transporting our merchandise . selling , general , and administrative expenses . selling , general , and administrative expenses include all operating costs not included in cost of goods sold , buying and occupancy costs , with the exception of costs such as advisory fees incurred prior to our ipo , proceeds received from insurance claims , and gain/loss on disposal of assets , which are included in other operating expense , net . these costs include payroll and other expenses related to operations at our corporate home office , store expenses other than occupancy , and marketing expenses , which primarily include production , mailing , and print advertising costs . with the exception of store payroll and marketing , these expenses generally do not vary proportionally with net sales . as a result , selling , general , and administrative expenses as a percentage of net sales is usually higher in lower volume quarters and lower in higher volume quarters . other operating expense , net . other operating expense , net includes advisory fees incurred prior to our ipo , excess proceeds received from the settlement of insurance claims , and gain/loss on disposal of assets . results of operations the table below sets forth the various line items in the consolidated statements of income and comprehensive income as a percentage of net sales for the last three years . replace_table_token_8_th fiscal year comparisons net sales replace_table_token_9_th 26 net sales increased by approximately $ 74.7 million , or 4 % , and included approximately $ 27.0 million related to the fifty-third week in 2012. comparable sales were flat for 2012 compared to 2011 . for 2012 , comparable sales were calculated based upon the fifty-three week period ended february 2 , 2013 compared to the fifty-three week period ended february 4 , 2012. the flat comparable sales resulted from decreases in both transactions and average dollar sales , offset by growth in e-commerce sales . we attribute the decrease in transactions to lower traffic in our stores and a lesser acceptance of product in certain women 's categories during the second and third quarters . non-comparable sales increased $ 35.8 million , equally driven by new store openings and remodels . net sales increased $ 167.5 million from $ 1.9 billion in 2010 to $ 2.1 billion in 2011 , a 9 % increase . comparable sales increased by $ 109.0 million , or 6 % , in 2011 compared to 2010 . the comparable sales growth was driven by growth in average dollar sales during the period as well as the continued growth in e-commerce sales . non-comparable sales increased $ 58.5 million primarily driven by new store openings . other revenue was $ 21.5 million in 2011 , an increase of $ 4.0 million , compared to other revenue of $ 17.5 million in 2010 , primarily as a result of more shipping and handling revenue related to e-commerce merchandise sales growth . gross profit the following table shows cost of sales and gross profit in dollars for the stated periods : replace_table_token_10_th the 180 basis point decrease in gross margin , or gross profit as a percentage of net sales , in 2012 compared to 2011 was comprised of a 140 basis point deterioration in merchandise margin and a 40 basis point increase in buying and occupancy costs . the decrease in merchandise margin was primarily driven by higher product costs and increased promotional activity in the latter part of the second quarter and into the fall season . the increase in buying and occupancy costs is primarily driven by increased rent , including the impact of $ 7.8 million of pre-opening rent expense for the 2 flagship stores under construction . from 2010 to 2011 , we had an 80 basis point improvement in gross margin , or gross profit as a percentage of net sales . the improvement was comprised of 40 basis points of merchandise margin expansion and 40 basis points of buying and occupancy leverage . the merchandise margin expansion was primarily driven by average unit retail increases in certain categories , partially offset by average unit cost increases and higher cancellation charges resulting from our strategic positioning of fabric ahead of anticipated cost increases , along with improvements in the execution of our go-to-market strategy . selling , general , and administrative expenses the following table shows selling , general , and administrative expenses in dollars for the stated periods : year ended 2012 2011 2010 ( in thousands ) selling , general , and administrative expenses $ 491,599 $ 483,823 $ 461,073 the $ 7.8 million increase in selling , general , and administrative expenses in 2012 compared to 2011 was driven by a $ 4.7 million increase in information technology expenses to support international expansion and e-commerce growth , a $ 2.8 million increase in payroll primarily related to additional headcount at our home office to support our international expansion and e-commerce growth pillars , merit increases , and increased stock compensation expense , and a $ 2.5 million increase in marketing expense , primarily related to e-commerce activities . story_separator_special_tag as discussed in “ results of operations ” , this was primarily the result of higher average dollar sales and the execution of our go-to-market strategy , as well as continued debt reduction . these items were offset by higher taxes in the current year as a result of improved operating results and the change in our tax status during the second quarter of 2010. the increase in cash provided by items included in net income discussed above was more than offset by $ 11.3 million of cash used for working capital increases during 2011 compared to $ 28.5 million of cash provided in 2010 . working capital is subject to cyclical operating needs , the timing of receivable collections and payable and expense payments , and the seasonal fluctuations in our operations . the working capital increase in 2011 was primarily attributable to an increase in inventories and income tax liability . the increase in inventories primarily reflects funding for continued e-commerce growth , new stores , and new category growth , while the increase in income tax liability was driven by our status as a corporation for all of 2011 versus only 9 months in 2010 and timing of tax payments . story_separator_special_tag # 000000 ; padding-left:2px ; padding-top:2px ; padding-bottom:2px ; padding-right:2px ; `` > judgments and uncertainties effect if actual results differ from assumptions gift card breakage we sell gift cards in our retail stores and through our e-commerce website and third parties , which do not expire or lose value over periods of inactivity . we account for gift cards by recognizing a liability at the time a gift card is sold . we recognize income from gift cards when they are redeemed by the customer . in addition , income on unredeemed gift cards is recognized proportionally using a time based attribution method from issuance of the gift card to the time it is can be determined that the likelihood of the gift card being redeemed is remote . the gift card breakage rate is based on historical redemption patterns . our accounting methodology for calculating gift card breakage contains uncertainties because it requires management to make assumptions that future gift card redemptions will follow the pattern of previous redemptions . our estimates for these items are based primarily on historical transaction experience . we have not made any material changes in the accounting methodology used to determine gift card breakage over the past 3 years . we have no reason to believe that there will be a material change in the future estimates or assumptions we use to measure gift card breakage . however , if actual results are not consistent with our estimates or assumptions , we may be exposed to losses or gains that could be material . a 100 basis point change in our gift card breakage rate as of february 2 , 2013 would have affected pre-tax income by approximately $ 0.6 million . 33 description of policy judgments and uncertainties effect if actual results differ from assumptions inventories inventories are principally valued at the lower of cost or market on a weighted-average cost basis . we record a lower of cost or market reserve for our inventories if the cost of specific inventory items on hand exceeds the amount we expect to realize from the ultimate sale or disposal of the inventory . we also record an inventory shrinkage reserve calculated as a percentage of cost of sales for estimated merchandise losses for the period between the last physical inventory count and the balance sheet date . these estimates are based on historical results and can be affected by changes in merchandise mix and or changes in shrinkage trends . our accounting methodology for determining the lower of cost or market reserve contains uncertainties because it requires management to make assumptions and estimates that are based on factors such as merchandise seasonality , historical trends , and estimated inventory levels , including sell-through of remaining units . our accounting methodology for estimating the inventory shrinkage reserve contains uncertainty as it requires management to make the assumption that future shrink results will follow the pattern of previous physical inventory losses . we have not made any material changes in the accounting methodology used to determine the lower of cost or market or shrinkage reserve over the past 3 years . we have no reason to believe that there will be a material change in the future estimates or assumptions we use to measure the lower of cost or market or shrinkage reserve . however , if actual results are not consistent with our estimates or assumptions , we may be exposed to losses or gains that could be material . a 10 % increase or decrease in the lower of cost or market adjustment would impact the inventory balance and pre-tax income by $ 0.8 million as of and for the year ended february 2 , 2013. a 10 % increase or decrease in the inventory shrink reserve balance would impact the reserve balance and pre-tax income by $ 1.7 million as of and for the year ended february 2 , 2013. intangible assets intangible assets with indefinite lives , primarily trade names , are reviewed for impairment annually in the fourth quarter and may be reviewed more frequently if indicators of impairment are present . the impairment review is performed by assessing qualitative factors to determine whether it is more likely than not that the fair value of the asset is less than its carrying amount . our consideration of indefinite lived intangible assets for impairment requires judgments surrounding future operating performance , economic conditions , and business plans , among other factors . there are inherent uncertanties related to our qualitative assessment and , if actual results are not consistent with our estimates or assumptions , we may be exposed to impairment losses that could be material . leasehold improvements leasehold improvements are reviewed for impairment if

net cash used in investing activities investing activities consist primarily of capital expenditures for new and remodeled store construction and fixtures , information technology , and home office and design studio renovations . net cash used in investing activities totaled $ 99.9 million in 2012 compared to $ 77.2 million in 2011 , a $ 22.7 million increase . this increase was primarily driven by capital expenditures , gross of landlord allowances , attributable to new store openings and remodels , totaling $ 76.0 million during 2012 compared to $ 60.7 million during 2011 . the remaining increase related primarily to investments in technology to support our international expansion and e-commerce growth . net cash used in investing activities increased $ 22.4 million to $ 77.2 million in 2011 compared to $ 54.8 million in 2010 . this increase was primarily driven by capital expenditures , gross of landlord allowances , attributable to new store openings , remodels , and store fixtures , totaling $ 60.7 million in 2011 compared to $ 38.9 million in 2010 . in 2013 , we plan to open approximately 16 new stores , including 4 in canada . we expect capital expenditures for 2013 to be approximately $ 110.0 million to $ 115.0 million , primarily driven by these new store openings , including the 2 flagship locations , which require additional expenditures over that of a typical new store opening . these capital expenditures do not include the impact of landlord allowances , which are expected to be approximately $ 10.0 to $ 15.0 million for 2013 . 31 net cash used in financing activities net cash used in financing activities totaled $ 65.6 million during 2012 as compared to $ 170.8 million in 2011 , a decrease of $ 105.2 million . cash used for financing activities was primarily related to the repurchase of $ 65.1 million of our common stock , including broker commissions , in 2012 as part of the repurchase program . the cash used in financing activities in 2011 was primarily related to the $ 119.7 million full prepayment of the term loan and repurchases of $ 49.2 million of senior 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. ```net cash used in investing activities investing activities consist primarily of capital expenditures for new and remodeled store construction and fixtures , information technology , and home office and design studio renovations . net cash used in investing activities totaled $ 99.9 million in 2012 compared to $ 77.2 million in 2011 , a $ 22.7 million increase . this increase was primarily driven by capital expenditures , gross of landlord allowances , attributable to new store openings and remodels , totaling $ 76.0 million during 2012 compared to $ 60.7 million during 2011 . the remaining increase related primarily to investments in technology to support our international expansion and e-commerce growth . net cash used in investing activities increased $ 22.4 million to $ 77.2 million in 2011 compared to $ 54.8 million in 2010 . this increase was primarily driven by capital expenditures , gross of landlord allowances , attributable to new store openings , remodels , and store fixtures , totaling $ 60.7 million in 2011 compared to $ 38.9 million in 2010 . in 2013 , we plan to open approximately 16 new stores , including 4 in canada . we expect capital expenditures for 2013 to be approximately $ 110.0 million to $ 115.0 million , primarily driven by these new store openings , including the 2 flagship locations , which require additional expenditures over that of a typical new store opening . these capital expenditures do not include the impact of landlord allowances , which are expected to be approximately $ 10.0 to $ 15.0 million for 2013 . 31 net cash used in financing activities net cash used in financing activities totaled $ 65.6 million during 2012 as compared to $ 170.8 million in 2011 , a decrease of $ 105.2 million . cash used for financing activities was primarily related to the repurchase of $ 65.1 million of our common stock , including broker commissions , in 2012 as part of the repurchase program . the cash used in financing activities in 2011 was primarily related to the $ 119.7 million full prepayment of the term loan and repurchases of $ 49.2 million of senior notes . ``` Suspicious Activity Report : we use third-party vendors and company-owned outlet stores to dispose of marked-out-of-stock merchandise . the primary drivers of the costs of individual goods are raw materials , labor in the countries where our merchandise is sourced , and logistics costs associated with transporting our merchandise . selling , general , and administrative expenses . selling , general , and administrative expenses include all operating costs not included in cost of goods sold , buying and occupancy costs , with the exception of costs such as advisory fees incurred prior to our ipo , proceeds received from insurance claims , and gain/loss on disposal of assets , which are included in other operating expense , net . these costs include payroll and other expenses related to operations at our corporate home office , store expenses other than occupancy , and marketing expenses , which primarily include production , mailing , and print advertising costs . with the exception of store payroll and marketing , these expenses generally do not vary proportionally with net sales . as a result , selling , general , and administrative expenses as a percentage of net sales is usually higher in lower volume quarters and lower in higher volume quarters . other operating expense , net . other operating expense , net includes advisory fees incurred prior to our ipo , excess proceeds received from the settlement of insurance claims , and gain/loss on disposal of assets . results of operations the table below sets forth the various line items in the consolidated statements of income and comprehensive income as a percentage of net sales for the last three years . replace_table_token_8_th fiscal year comparisons net sales replace_table_token_9_th 26 net sales increased by approximately $ 74.7 million , or 4 % , and included approximately $ 27.0 million related to the fifty-third week in 2012. comparable sales were flat for 2012 compared to 2011 . for 2012 , comparable sales were calculated based upon the fifty-three week period ended february 2 , 2013 compared to the fifty-three week period ended february 4 , 2012. the flat comparable sales resulted from decreases in both transactions and average dollar sales , offset by growth in e-commerce sales . we attribute the decrease in transactions to lower traffic in our stores and a lesser acceptance of product in certain women 's categories during the second and third quarters . non-comparable sales increased $ 35.8 million , equally driven by new store openings and remodels . net sales increased $ 167.5 million from $ 1.9 billion in 2010 to $ 2.1 billion in 2011 , a 9 % increase . comparable sales increased by $ 109.0 million , or 6 % , in 2011 compared to 2010 . the comparable sales growth was driven by growth in average dollar sales during the period as well as the continued growth in e-commerce sales . non-comparable sales increased $ 58.5 million primarily driven by new store openings . other revenue was $ 21.5 million in 2011 , an increase of $ 4.0 million , compared to other revenue of $ 17.5 million in 2010 , primarily as a result of more shipping and handling revenue related to e-commerce merchandise sales growth . gross profit the following table shows cost of sales and gross profit in dollars for the stated periods : replace_table_token_10_th the 180 basis point decrease in gross margin , or gross profit as a percentage of net sales , in 2012 compared to 2011 was comprised of a 140 basis point deterioration in merchandise margin and a 40 basis point increase in buying and occupancy costs . the decrease in merchandise margin was primarily driven by higher product costs and increased promotional activity in the latter part of the second quarter and into the fall season . the increase in buying and occupancy costs is primarily driven by increased rent , including the impact of $ 7.8 million of pre-opening rent expense for the 2 flagship stores under construction . from 2010 to 2011 , we had an 80 basis point improvement in gross margin , or gross profit as a percentage of net sales . the improvement was comprised of 40 basis points of merchandise margin expansion and 40 basis points of buying and occupancy leverage . the merchandise margin expansion was primarily driven by average unit retail increases in certain categories , partially offset by average unit cost increases and higher cancellation charges resulting from our strategic positioning of fabric ahead of anticipated cost increases , along with improvements in the execution of our go-to-market strategy . selling , general , and administrative expenses the following table shows selling , general , and administrative expenses in dollars for the stated periods : year ended 2012 2011 2010 ( in thousands ) selling , general , and administrative expenses $ 491,599 $ 483,823 $ 461,073 the $ 7.8 million increase in selling , general , and administrative expenses in 2012 compared to 2011 was driven by a $ 4.7 million increase in information technology expenses to support international expansion and e-commerce growth , a $ 2.8 million increase in payroll primarily related to additional headcount at our home office to support our international expansion and e-commerce growth pillars , merit increases , and increased stock compensation expense , and a $ 2.5 million increase in marketing expense , primarily related to e-commerce activities . story_separator_special_tag as discussed in “ results of operations ” , this was primarily the result of higher average dollar sales and the execution of our go-to-market strategy , as well as continued debt reduction . these items were offset by higher taxes in the current year as a result of improved operating results and the change in our tax status during the second quarter of 2010. the increase in cash provided by items included in net income discussed above was more than offset by $ 11.3 million of cash used for working capital increases during 2011 compared to $ 28.5 million of cash provided in 2010 . working capital is subject to cyclical operating needs , the timing of receivable collections and payable and expense payments , and the seasonal fluctuations in our operations . the working capital increase in 2011 was primarily attributable to an increase in inventories and income tax liability . the increase in inventories primarily reflects funding for continued e-commerce growth , new stores , and new category growth , while the increase in income tax liability was driven by our status as a corporation for all of 2011 versus only 9 months in 2010 and timing of tax payments . story_separator_special_tag # 000000 ; padding-left:2px ; padding-top:2px ; padding-bottom:2px ; padding-right:2px ; `` > judgments and uncertainties effect if actual results differ from assumptions gift card breakage we sell gift cards in our retail stores and through our e-commerce website and third parties , which do not expire or lose value over periods of inactivity . we account for gift cards by recognizing a liability at the time a gift card is sold . we recognize income from gift cards when they are redeemed by the customer . in addition , income on unredeemed gift cards is recognized proportionally using a time based attribution method from issuance of the gift card to the time it is can be determined that the likelihood of the gift card being redeemed is remote . the gift card breakage rate is based on historical redemption patterns . our accounting methodology for calculating gift card breakage contains uncertainties because it requires management to make assumptions that future gift card redemptions will follow the pattern of previous redemptions . our estimates for these items are based primarily on historical transaction experience . we have not made any material changes in the accounting methodology used to determine gift card breakage over the past 3 years . we have no reason to believe that there will be a material change in the future estimates or assumptions we use to measure gift card breakage . however , if actual results are not consistent with our estimates or assumptions , we may be exposed to losses or gains that could be material . a 100 basis point change in our gift card breakage rate as of february 2 , 2013 would have affected pre-tax income by approximately $ 0.6 million . 33 description of policy judgments and uncertainties effect if actual results differ from assumptions inventories inventories are principally valued at the lower of cost or market on a weighted-average cost basis . we record a lower of cost or market reserve for our inventories if the cost of specific inventory items on hand exceeds the amount we expect to realize from the ultimate sale or disposal of the inventory . we also record an inventory shrinkage reserve calculated as a percentage of cost of sales for estimated merchandise losses for the period between the last physical inventory count and the balance sheet date . these estimates are based on historical results and can be affected by changes in merchandise mix and or changes in shrinkage trends . our accounting methodology for determining the lower of cost or market reserve contains uncertainties because it requires management to make assumptions and estimates that are based on factors such as merchandise seasonality , historical trends , and estimated inventory levels , including sell-through of remaining units . our accounting methodology for estimating the inventory shrinkage reserve contains uncertainty as it requires management to make the assumption that future shrink results will follow the pattern of previous physical inventory losses . we have not made any material changes in the accounting methodology used to determine the lower of cost or market or shrinkage reserve over the past 3 years . we have no reason to believe that there will be a material change in the future estimates or assumptions we use to measure the lower of cost or market or shrinkage reserve . however , if actual results are not consistent with our estimates or assumptions , we may be exposed to losses or gains that could be material . a 10 % increase or decrease in the lower of cost or market adjustment would impact the inventory balance and pre-tax income by $ 0.8 million as of and for the year ended february 2 , 2013. a 10 % increase or decrease in the inventory shrink reserve balance would impact the reserve balance and pre-tax income by $ 1.7 million as of and for the year ended february 2 , 2013. intangible assets intangible assets with indefinite lives , primarily trade names , are reviewed for impairment annually in the fourth quarter and may be reviewed more frequently if indicators of impairment are present . the impairment review is performed by assessing qualitative factors to determine whether it is more likely than not that the fair value of the asset is less than its carrying amount . our consideration of indefinite lived intangible assets for impairment requires judgments surrounding future operating performance , economic conditions , and business plans , among other factors . there are inherent uncertanties related to our qualitative assessment and , if actual results are not consistent with our estimates or assumptions , we may be exposed to impairment losses that could be material . leasehold improvements leasehold improvements are reviewed for impairment if

by offering trend-right merchandise at a differentiated price point of $ 5 and below , our stores have been successful in varying geographic regions , population densities and real estate settings . as of february 2 , 2019 , we operated stores in 33 states in the northeast , south , midwest and west regions of the united states . we are primarily located in power , community and lifestyle shopping centers across a variety of urban , suburban and semi-rural markets with trade areas including at least 100,000 people in the specified market . we believe we have the opportunity to expand our store base in the united states from 750 locations as of february 2 , 2019 to more than 2,500 locations over time . our ability to open profitable new stores depends on many factors , including our ability to identify suitable markets and sites ; negotiate leases with acceptable terms ; achieve brand awareness in the new markets ; efficiently source and distribute additional merchandise ; and achieve sufficient levels of cash flow and financing to support our expansion . 36 for the fiscal year ended february 3 , 2018 , we recorded a provisional net tax benefit of $ 0.5 million related to the impact of the tcja . this provisional tax benefit included a one-time $ 1.5 million remeasurement charge of the net u.s. deferred tax assets to the lower enacted u.s. corporate tax rate of 21 % and a $ 2.0 million tax benefit related to the company 's 2017 blended rate of 33.7 % as a result of section 15 of the internal revenue code . december 22 , 2018 marked the end of the measurement period for purposes of securities and exchange commission staff accounting bulletin no . 118 ( `` sab 118 `` ) . as such , the company has completed the analysis based on legislative updates relating to the u.s. tcja currently available and recorded no additional tax impacts for the year ended february 2 , 2019 . while we have completed our accounting of the income tax effects of the u.s. tcja under sab 118 , the related tax impacts may differ , possibly materially , due to changes in interpretations and assumptions that we have made , additional guidance that may be issued by regulatory bodies , and actions and related accounting policy decisions we may take as a result of the new legislation . we have a proven and highly profitable store model that has produced consistent financial results and returns and our new stores have achieved average payback periods of less than one year . our new store model assumes a store size of approximately 8,500 square feet that achieves annual sales of approximately $ 1.8 million in the first full year of operation . our new store model also assumes an average new store investment of approximately $ 0.3 million . our new store investment includes our store build-out ( net of tenant allowances ) , inventory ( net of payables ) and cash pre-opening expenses . our planned store expansion will place increased demands on our operational , managerial , administrative and other resources . managing our growth effectively will require us to continue to maintain adequate distribution capacity , enhance our store management systems , financial and management controls , information systems and other operational system capabilities . in addition , we will be required to hire , train and retain store management and other qualified personnel . for further information , see part i , item 1a “ risk factors-risk relating to our business and industry . ” over the past five years we have invested a significant amount of capital in infrastructure and systems necessary to support our future growth and we expect to incur additional capital expenditures related to expansion of our infrastructure and systems in future periods . in fiscal 2015 , we invested in a new erp and began the multi-year implementation of the erp , which is designed to enhance functionality and provide timely information to the company 's management team related to the operation of the business . in june 2015 , we opened a new distribution center in pedricktown , new jersey to support our anticipated growth . we occupy approximately 1,000,000 square feet at this distribution center , having expanded from 800,000 square feet in september 2018. in september 2016 , we signed a 15-year lease for a new corporate headquarters location in philadelphia , pennsylvania to accommodate our current and anticipated future growth . we currently occupy approximately 117,000 square feet of office space and will expand into approximately 50,000 square feet of additional office space by no later than 2020. in march 2019 , we completed the purchase of an approximately 700,000 square foot build-to-suit distribution center in forsyth , georgia for approximately $ 42 million , for the land and building , to support our anticipated growth . we are planning to lease or build new distribution centers over the next few years to support our growth objectives . we continuously assess ways to maximize the productivity and efficiency of our existing facilities , infrastructure and systems . the timing and amount of investments in our facilities , infrastructure and systems could affect the comparability of our results of operations in future periods . the completion date and ultimate cost of future projects could differ significantly from initial expectations due to construction-related or other reasons . we believe our business strategy will continue to offer significant opportunity , but it also presents risks and challenges . these risks and challenges include , but are not limited to , that we may not be able to effectively identify and respond to changing trends and customer preferences , that we may not be able to find desirable locations for new stores and that we may not be able to effectively manage our future growth . story_separator_special_tag income tax expense income tax expense increased to $ 56.4 million in fiscal year 2017 from $ 42.4 million in fiscal year 2016 , an increase of $ 14.0 million , or approximately 33.0 % . this increase in income tax expense was primarily the result of a $ 44.6 million increase in pre-tax net income . our effective tax rate for fiscal year 2017 was 35.5 % compared to 37.1 % in fiscal year 2016. the decrease in our effective tax rate was primarily driven by discrete items , which include the impact of the adoption of fasb asu 2016-09 , `` improvements to employee share-based payment accounting , `` with respect to the requirement to recognize excess income tax benefits or deficiencies as income tax benefit or expense in the consolidated statements of operations rather than as additional paid-in capital in the consolidated balance sheets , and the impact of tax reform as a result of the tcja . the tcja includes a number of changes to existing u.s. tax laws that impact us , most notably a reduction of the u.s. corporate tax rate from 35 % to 21 % , for tax years beginning after december 31 , 2017. we recorded an additional expense of $ 1.5 million in deferred income tax expense for the remeasurement of our net deferred tax asset at the 21 % tax rate . additionally , and in accordance with section 15 of the internal revenue code , we utilized a blended rate of 33.7 % for our fiscal 2017 tax year , by applying a prorated percentage of the number of days prior to and subsequent to the january 1 , 2018 effective date as compared with the 35 % for the 2016 tax year . the effect of this blended rate change is a benefit of $ 2.0 million . the tcja also provides for acceleration of depreciation for certain assets placed into service after september 27 , 2017 , as well as prospective changes beginning in 2018 , including additional limitations on deductibility of executive compensation and employee meal benefits . as a result of the tcja , we expect that the effective tax rate in fiscal 2018 will be approximately 24.5 % . the net $ 0.5 million benefit represents what we believe is the impact of the tcja in the current year . as the benefit is based on currently available information and interpretations , which are continuing to evolve , the benefit should be considered provisional . we will continue to analyze additional information and guidance related to the tcja as supplemental legislation , regulatory guidance , or evolving technical interpretations become available . the final impacts may differ from the recorded amounts as of february 3 , 2018 , and we will continue to refine such amounts within the measurement period provided by sab 118 . 42 net income as a result of the foregoing , net income increased to $ 102.5 million in fiscal year 2017 from $ 71.8 million in fiscal year 2016 , an increase of approximately $ 30.7 million , or 42.6 % . impact of inflation our results of operations and financial condition are presented based on historical cost . while it is difficult to accurately measure the impact of inflation due to the imprecise nature of the estimates required , we believe the effects of inflation , if any , on our historical results of operations and financial condition have been immaterial . we can not assure you , however , that our results of operations and financial condition will not be materially impacted by inflation in the future . seasonality our business is seasonal in nature with the highest level of net sales and net income generated in the fourth fiscal quarter due to the year-end holiday season and , therefore , operating results for any fiscal quarter are not necessarily indicative of results for the full fiscal year . to prepare for the holiday season , we must order and keep in stock more merchandise than we carry during other parts of the year . we expect inventory levels , along with an increase in accounts payable and accrued expenses , generally to reach their highest levels in the third and fourth fiscal quarters in anticipation of the increased net sales during the year-end holiday season . as a result of this seasonality , and generally because of variation in consumer spending habits , we experience fluctuations in net sales , net income and working capital requirements during the year . liquidity and capital resources overview our primary source of liquidity is cash flows from operations . our primary cash needs are for capital expenditures and working capital . capital expenditures typically vary depending on the timing of new store openings and infrastructure-related investments . we plan to make capital expenditures of approximately $ 170 million in fiscal 2019 , which exclude the impact of tenant allowances , and which we expect to fund from cash generated from operations . we expect to incur approximately $ 50 million of our capital expenditure budget in fiscal 2019 to construct and open approximately 145 to 150 new stores , with the remainder projected to be spent on our distribution facilities including the new distribution center in georgia , store relocations and remodels , and our corporate infrastructure . our primary working capital requirements are for the purchase of store inventory and payment of payroll , rent , other store operating costs and distribution costs . our working capital requirements fluctuate during the year , rising in the third and fourth fiscal quarters as we take title to increasing quantities of inventory in anticipation of our peak , year-end holiday shopping season in the fourth fiscal quarter . fluctuations in working capital are also driven by the timing of new store openings . historically , we have funded our capital expenditures and working capital requirements during the fiscal year

cash flows a summary of our cash flows from operating , investing and financing activities is presented in the following table ( in millions ) : replace_table_token_9_th ( 1 ) components may not add to total due to rounding . cash provided by operating activities net cash provided by operating activities for fiscal 2018 was $ 184.1 million , an increase of $ 16.7 million compared to fiscal 2017 . the increase was primarily due to an increase in operating cash flows from store performance and a decrease in income taxes paid partially offset by changes in working capital . during fiscal 2018 , we added 125 net new stores and expect to add approximately 145 to 150 new stores in fiscal 2019 . net cash provided by operating activities for fiscal 2017 was $ 167.4 million , an increase of $ 60.8 million compared to fiscal 2016 . the increase was primarily due to an increase in operating cash flows from store performance partially offset by an increase in income taxes paid . during fiscal 2017 , we added 103 net new stores . cash used in investing activities net cash used in investing activities for fiscal 2018 was $ 39.5 million , a decrease of $ 99.7 million compared to fiscal 2017 . the decrease was primarily due to an increase in net sales , maturities , and redemptions of investment securities partially offset by an increase in capital expenditures . the increase in capital expenditures was primarily for our distribution facilities , our new store construction , and our corporate infrastructure . net cash used in investing activities for fiscal 2017 was $ 139.2 million , an increase of $ 52.4 million compared to fiscal 2016 . the increase was primarily due to increases in net purchases of investment securities and capital expenditures . the increase in capital expenditures was primarily for our new store construction , our corporate infrastructure , and our distribution facilities . cash ( used in ) provided by financing activities net cash used in financing activities for fiscal year 2018 was $ 5.6 million , an increase of $ 14.0 million compared to fiscal 2017 .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 a summary of our cash flows from operating , investing and financing activities is presented in the following table ( in millions ) : replace_table_token_9_th ( 1 ) components may not add to total due to rounding . cash provided by operating activities net cash provided by operating activities for fiscal 2018 was $ 184.1 million , an increase of $ 16.7 million compared to fiscal 2017 . the increase was primarily due to an increase in operating cash flows from store performance and a decrease in income taxes paid partially offset by changes in working capital . during fiscal 2018 , we added 125 net new stores and expect to add approximately 145 to 150 new stores in fiscal 2019 . net cash provided by operating activities for fiscal 2017 was $ 167.4 million , an increase of $ 60.8 million compared to fiscal 2016 . the increase was primarily due to an increase in operating cash flows from store performance partially offset by an increase in income taxes paid . during fiscal 2017 , we added 103 net new stores . cash used in investing activities net cash used in investing activities for fiscal 2018 was $ 39.5 million , a decrease of $ 99.7 million compared to fiscal 2017 . the decrease was primarily due to an increase in net sales , maturities , and redemptions of investment securities partially offset by an increase in capital expenditures . the increase in capital expenditures was primarily for our distribution facilities , our new store construction , and our corporate infrastructure . net cash used in investing activities for fiscal 2017 was $ 139.2 million , an increase of $ 52.4 million compared to fiscal 2016 . the increase was primarily due to increases in net purchases of investment securities and capital expenditures . the increase in capital expenditures was primarily for our new store construction , our corporate infrastructure , and our distribution facilities . cash ( used in ) provided by financing activities net cash used in financing activities for fiscal year 2018 was $ 5.6 million , an increase of $ 14.0 million compared to fiscal 2017 . ``` Suspicious Activity Report : by offering trend-right merchandise at a differentiated price point of $ 5 and below , our stores have been successful in varying geographic regions , population densities and real estate settings . as of february 2 , 2019 , we operated stores in 33 states in the northeast , south , midwest and west regions of the united states . we are primarily located in power , community and lifestyle shopping centers across a variety of urban , suburban and semi-rural markets with trade areas including at least 100,000 people in the specified market . we believe we have the opportunity to expand our store base in the united states from 750 locations as of february 2 , 2019 to more than 2,500 locations over time . our ability to open profitable new stores depends on many factors , including our ability to identify suitable markets and sites ; negotiate leases with acceptable terms ; achieve brand awareness in the new markets ; efficiently source and distribute additional merchandise ; and achieve sufficient levels of cash flow and financing to support our expansion . 36 for the fiscal year ended february 3 , 2018 , we recorded a provisional net tax benefit of $ 0.5 million related to the impact of the tcja . this provisional tax benefit included a one-time $ 1.5 million remeasurement charge of the net u.s. deferred tax assets to the lower enacted u.s. corporate tax rate of 21 % and a $ 2.0 million tax benefit related to the company 's 2017 blended rate of 33.7 % as a result of section 15 of the internal revenue code . december 22 , 2018 marked the end of the measurement period for purposes of securities and exchange commission staff accounting bulletin no . 118 ( `` sab 118 `` ) . as such , the company has completed the analysis based on legislative updates relating to the u.s. tcja currently available and recorded no additional tax impacts for the year ended february 2 , 2019 . while we have completed our accounting of the income tax effects of the u.s. tcja under sab 118 , the related tax impacts may differ , possibly materially , due to changes in interpretations and assumptions that we have made , additional guidance that may be issued by regulatory bodies , and actions and related accounting policy decisions we may take as a result of the new legislation . we have a proven and highly profitable store model that has produced consistent financial results and returns and our new stores have achieved average payback periods of less than one year . our new store model assumes a store size of approximately 8,500 square feet that achieves annual sales of approximately $ 1.8 million in the first full year of operation . our new store model also assumes an average new store investment of approximately $ 0.3 million . our new store investment includes our store build-out ( net of tenant allowances ) , inventory ( net of payables ) and cash pre-opening expenses . our planned store expansion will place increased demands on our operational , managerial , administrative and other resources . managing our growth effectively will require us to continue to maintain adequate distribution capacity , enhance our store management systems , financial and management controls , information systems and other operational system capabilities . in addition , we will be required to hire , train and retain store management and other qualified personnel . for further information , see part i , item 1a “ risk factors-risk relating to our business and industry . ” over the past five years we have invested a significant amount of capital in infrastructure and systems necessary to support our future growth and we expect to incur additional capital expenditures related to expansion of our infrastructure and systems in future periods . in fiscal 2015 , we invested in a new erp and began the multi-year implementation of the erp , which is designed to enhance functionality and provide timely information to the company 's management team related to the operation of the business . in june 2015 , we opened a new distribution center in pedricktown , new jersey to support our anticipated growth . we occupy approximately 1,000,000 square feet at this distribution center , having expanded from 800,000 square feet in september 2018. in september 2016 , we signed a 15-year lease for a new corporate headquarters location in philadelphia , pennsylvania to accommodate our current and anticipated future growth . we currently occupy approximately 117,000 square feet of office space and will expand into approximately 50,000 square feet of additional office space by no later than 2020. in march 2019 , we completed the purchase of an approximately 700,000 square foot build-to-suit distribution center in forsyth , georgia for approximately $ 42 million , for the land and building , to support our anticipated growth . we are planning to lease or build new distribution centers over the next few years to support our growth objectives . we continuously assess ways to maximize the productivity and efficiency of our existing facilities , infrastructure and systems . the timing and amount of investments in our facilities , infrastructure and systems could affect the comparability of our results of operations in future periods . the completion date and ultimate cost of future projects could differ significantly from initial expectations due to construction-related or other reasons . we believe our business strategy will continue to offer significant opportunity , but it also presents risks and challenges . these risks and challenges include , but are not limited to , that we may not be able to effectively identify and respond to changing trends and customer preferences , that we may not be able to find desirable locations for new stores and that we may not be able to effectively manage our future growth . story_separator_special_tag income tax expense income tax expense increased to $ 56.4 million in fiscal year 2017 from $ 42.4 million in fiscal year 2016 , an increase of $ 14.0 million , or approximately 33.0 % . this increase in income tax expense was primarily the result of a $ 44.6 million increase in pre-tax net income . our effective tax rate for fiscal year 2017 was 35.5 % compared to 37.1 % in fiscal year 2016. the decrease in our effective tax rate was primarily driven by discrete items , which include the impact of the adoption of fasb asu 2016-09 , `` improvements to employee share-based payment accounting , `` with respect to the requirement to recognize excess income tax benefits or deficiencies as income tax benefit or expense in the consolidated statements of operations rather than as additional paid-in capital in the consolidated balance sheets , and the impact of tax reform as a result of the tcja . the tcja includes a number of changes to existing u.s. tax laws that impact us , most notably a reduction of the u.s. corporate tax rate from 35 % to 21 % , for tax years beginning after december 31 , 2017. we recorded an additional expense of $ 1.5 million in deferred income tax expense for the remeasurement of our net deferred tax asset at the 21 % tax rate . additionally , and in accordance with section 15 of the internal revenue code , we utilized a blended rate of 33.7 % for our fiscal 2017 tax year , by applying a prorated percentage of the number of days prior to and subsequent to the january 1 , 2018 effective date as compared with the 35 % for the 2016 tax year . the effect of this blended rate change is a benefit of $ 2.0 million . the tcja also provides for acceleration of depreciation for certain assets placed into service after september 27 , 2017 , as well as prospective changes beginning in 2018 , including additional limitations on deductibility of executive compensation and employee meal benefits . as a result of the tcja , we expect that the effective tax rate in fiscal 2018 will be approximately 24.5 % . the net $ 0.5 million benefit represents what we believe is the impact of the tcja in the current year . as the benefit is based on currently available information and interpretations , which are continuing to evolve , the benefit should be considered provisional . we will continue to analyze additional information and guidance related to the tcja as supplemental legislation , regulatory guidance , or evolving technical interpretations become available . the final impacts may differ from the recorded amounts as of february 3 , 2018 , and we will continue to refine such amounts within the measurement period provided by sab 118 . 42 net income as a result of the foregoing , net income increased to $ 102.5 million in fiscal year 2017 from $ 71.8 million in fiscal year 2016 , an increase of approximately $ 30.7 million , or 42.6 % . impact of inflation our results of operations and financial condition are presented based on historical cost . while it is difficult to accurately measure the impact of inflation due to the imprecise nature of the estimates required , we believe the effects of inflation , if any , on our historical results of operations and financial condition have been immaterial . we can not assure you , however , that our results of operations and financial condition will not be materially impacted by inflation in the future . seasonality our business is seasonal in nature with the highest level of net sales and net income generated in the fourth fiscal quarter due to the year-end holiday season and , therefore , operating results for any fiscal quarter are not necessarily indicative of results for the full fiscal year . to prepare for the holiday season , we must order and keep in stock more merchandise than we carry during other parts of the year . we expect inventory levels , along with an increase in accounts payable and accrued expenses , generally to reach their highest levels in the third and fourth fiscal quarters in anticipation of the increased net sales during the year-end holiday season . as a result of this seasonality , and generally because of variation in consumer spending habits , we experience fluctuations in net sales , net income and working capital requirements during the year . liquidity and capital resources overview our primary source of liquidity is cash flows from operations . our primary cash needs are for capital expenditures and working capital . capital expenditures typically vary depending on the timing of new store openings and infrastructure-related investments . we plan to make capital expenditures of approximately $ 170 million in fiscal 2019 , which exclude the impact of tenant allowances , and which we expect to fund from cash generated from operations . we expect to incur approximately $ 50 million of our capital expenditure budget in fiscal 2019 to construct and open approximately 145 to 150 new stores , with the remainder projected to be spent on our distribution facilities including the new distribution center in georgia , store relocations and remodels , and our corporate infrastructure . our primary working capital requirements are for the purchase of store inventory and payment of payroll , rent , other store operating costs and distribution costs . our working capital requirements fluctuate during the year , rising in the third and fourth fiscal quarters as we take title to increasing quantities of inventory in anticipation of our peak , year-end holiday shopping season in the fourth fiscal quarter . fluctuations in working capital are also driven by the timing of new store openings . historically , we have funded our capital expenditures and working capital requirements during the fiscal year

the most significant accounting policies followed by fnb are presented in note 1 , “summary of significant accounting policies” in the notes to consolidated financial statements , which is included in item 8 of this report . these policies , along with the disclosures presented in the notes to consolidated financial statements , provide information on how we value significant assets and liabilities in the consolidated financial statements , how we determine those values and how we record transactions in the consolidated financial statements . management views critical accounting policies to be those which are highly dependent on subjective or complex judgments , estimates and assumptions , and where changes in those estimates and assumptions could have a significant impact on the consolidated financial statements . management currently views the determination of the allowance for credit losses , accounting for acquired loans , fair value of financial instruments , goodwill and other intangible assets , litigation and income taxes to be critical accounting policies . 43 allowance for credit losses the allowance for credit losses addresses credit losses inherent in the existing loan portfolio and in unfunded loan commitments and standby letters of credit at the balance sheet date , and is presented as a reserve against loans and other liabilities , respectively , on the consolidated balance sheets . management 's assessment of the appropriateness of the allowance for credit losses considers individual impaired loans , pools of homogeneous loans with similar risk characteristics and other risk factors concerning the economic environment . these analyses involve a high degree of judgment in estimating the amount of loss associated with specific impaired loans , including estimating the amount and timing of future cash flows , current fair value of the underlying collateral and other qualitative risk factors that may affect the loan , all of which may be susceptible to significant change . the evaluation of this component of the allowance for credit losses requires considerable judgment in order to reasonably estimate inherent loss exposures . loans with similar risk characteristics are categorized into pools based on loan type and by internal risk rating for commercial loans , or payment performance and fico score for consumer loans . there is considerable judgment involved in setting internal commercial risk ratings , including an evaluation of the borrower 's current financial condition and ability to repay the loan . transition matrices are generated on a monthly basis to determine probabilities of default , while historical loss experience is used to generate loss given default results for the pools . inherent but undetected losses may arise due to uncertainties in economic conditions , delays in obtaining information , including unfavorable information about a borrower 's financial condition , the difficulty in identifying triggering events that correlate to subsequent loss rates and risk factors that have not yet manifested themselves in loss allocation factors . uncertainty surrounding the strength and timing of economic cycles also affects estimates of loss . the historical loss experience used in the transition matrices and historical loss experience analysis may not be representative of actual unrealized losses inherent in the portfolio . management evaluates the impact of various qualitative factors which pose additional risks that may not adequately be addressed in the analyses described above . expected loss rates for each loan category may be adjusted for levels of and trends in loan volumes , net charge-offs , delinquency and non-performing loans . in addition , management takes into consideration the impact of changes to lending policies ; the experience and depth of lending management and staff ; the results of internal loan reviews ; concentrations of credit ; competition , legal and regulatory risk ; market uncertainty and collateral illiquidity ; national and local economic trends ; or any other common risk factor that might affect loss experience across one or more components of the portfolio . the assessment of relevant economic factors indicates that fnb 's primary markets historically tend to lag the national economy , with local economies in our primary market areas also improving or weakening , as the case may be , but at a more measured rate than the national trends . regional economic factors influencing management 's estimate of allowance for credit losses include , but are not limited to , uncertainty of the labor markets , industrial presence , commercial real estate activity and residential real estate values . the determination of this qualitative component of the allowance for credit losses is particularly dependent on the judgment of management . to the extent actual outcomes differ from management estimates , additional provisions for credit losses could be required that may adversely affect our earnings or financial position in future periods . the provision for credit losses section in the results of operations includes a discussion of the factors affecting changes in the allowance for credit losses during the current period . see note 1 , “summary of significant accounting policies” and the note 6 , “loans and leases” in the notes to consolidated financial statements for further information on the allowance for credit losses . accounting for acquired loans all acquired loans are initially measured at fair value at the date of acquisition . the fair value of acquired loans is based on a discounted cash flow methodology that involves assumptions and judgments as to credit risk , default rates , loss severity , collateral values , discount rates , prepayment speeds , prepayment risk and liquidity 44 risk . the measurement of fair value on acquired loans prohibits the carryover or establishment of an allowance for loan losses at acquisition date . acquired loans are evaluated for impairment in accordance with the provisions of accounting standards codification ( asc ) 310-30. acquired loans are considered impaired if there is evidence of credit deterioration since origination and if it is probable at time of acquisition that all contractually required payments will not be collected . story_separator_special_tag we believe this measure to be the preferred industry measurement of net interest income and provides relevant comparison between taxable and non-taxable amounts . ( 3 ) average balances include non-accrual loans . loans consist of average total loans less average unearned income net interest income net interest income , which is our major source of revenue , is the difference between interest income from interest-earning assets and interest expense paid on interest-bearing liabilities . in 2016 , net interest income , 50 which comprised 75.2 % of net revenue ( net interest income plus non-interest income ) compared to 75.4 % in 2015 , was affected by the general level of interest rates , changes in interest rates , the timing of repricing of assets and liabilities , the shape of the yield curve , the level of non-accrual loans and changes in the amount and mix of interest-earning assets and interest-bearing liabilities . net interest income on an fte basis ( non-gaap ) of $ 622.8 million for 2016 increased $ 116.9 million or 23.1 % from $ 505.9 million for 2015. average interest earning assets increased $ 3.6 billion or 24.6 % and average interest-bearing liabilities increased $ 2.5 billion or 21.9 % from 2015 , primarily due to the metr acquisition , combined with organic growth in loans and deposits . our net interest margin ( non-gaap ) was 3.38 % for 2016 , compared to 3.42 % for 2015 , reflecting the impact of an extended low interest rate environment and a competitive landscape for interest-earning assets . the tax-equivalent adjustment to net interest income ( non-gaap ) from amounts reported in our financial statements is shown in the preceding table . the following table provides certain information regarding changes in net interest income on an fte basis ( non-gaap ) attributable to changes in the average volumes and yields earned on interest-earning assets and the average volume and rates paid for interest-bearing liabilities for the periods indicated : replace_table_token_9_th ( 1 ) the amount of change not solely due to rate or volume was allocated between the change due to rate and the change due to volume based on the net size of the rate and volume changes . ( 2 ) interest income amounts are reflected on an fte basis ( non-gaap ) which adjusts for the tax benefit of income on certain tax-exempt loans and investments using the federal statutory tax rate of 35.0 % for each period presented . we believe this measure to be the preferred industry measurement of net interest income and provides relevant comparison between taxable and non-taxable amounts . interest income on an fte basis ( non-gaap ) of $ 690.2 million for 2016 , increased $ 135.8 million or 24.5 % from 2015 , primarily due to increased interest-earning assets , which was slightly offset by lower yields . during 2016 and 2015 , we recognized benefits of $ 6.7 million and $ 5.0 million , respectively , in accretable yield adjustments on acquired loans . the increase in interest-earning assets was primarily driven by a $ 2.6 billion or 22.4 % increase in average loans and leases , including $ 929.2 million or 8.0 % of organic growth , which reflects the benefit of our expanded banking footprint and successful sales management . loans added at closing in the fifth third branch purchase and metr acquisition were $ 95.4 million and $ 1.9 billion , respectively . the loans added in the bofa branch purchase were immaterial . additionally , average securities increased $ 971.8 million or 31.7 % , primarily due to replacing the securities acquired from metr with new securities . the yield on average interest-earning assets ( non-gaap ) decreased 1 basis point from 3.75 % for 2015 to 3.74 % for 2016 . 51 interest expense of $ 67.5 million for 2016 increased $ 18.9 million or 38.9 % from 2015 due to an increase in rates paid and growth in interest-bearing liabilities , as all categories of interest-bearing liabilities increased over the same period of 2015. average interest-bearing deposits increased $ 2.2 billion or 23.3 % , including $ 242.4 million or 11.2 % of organic growth , which reflects the benefit of our expanded banking footprint . additionally , interest-bearing deposits added at closing in the fifth third branch purchase , metr acquisition and bofa branch purchase were $ 258.1 million , $ 1.9 billion and $ 105.3 million , respectively . average short-term borrowings increased $ 311.6 million or 18.7 % , primarily as a result of a $ 538.2 increase in federal funds purchased , partially offset by declines of $ 201.3 million and $ 25.3 million in customer repurchase agreements and short-term fhlb borrowings , respectively . average long-term borrowings increased $ 49.4 million or 8.7 % , primarily due to $ 100.0 million in subordinated notes that we issued in our october 2015 debt offering in anticipation of the acquisitions in early 2016. the rate paid on interest-bearing liabilities increased 6 basis points to 0.48 % for 2016 , compared to 0.42 % for 2015 , due to the debt offering and changes in the funding mix as borrowings increased faster than deposits . given the relatively low level of interest rates and the current rates paid on the various deposit products , we believe there is limited opportunity for reductions in the overall rate paid on interest-bearing liabilities . provision for credit losses the provision for credit losses is determined based on management 's estimates of the appropriate level of allowance for credit losses needed to absorb probable losses inherent in the existing loan and lease portfolio , after giving consideration to charge-offs and recoveries for the period . the following table presents information regarding the provision for credit losses and net charge-offs for the years 2014 through 2016 : replace_table_token_10_th the provision for credit losses of $ 55.8 million during 2016 increased $

liquidity our goal in liquidity management is to satisfy the cash flow requirements of customers and the operating cash needs of fnb with cost-effective funding . our board of directors has established an asset/liability management policy in order to guide management in achieving and maintaining earnings performance consistent 71 with long-term goals , while maintaining acceptable levels of interest rate risk , a “well-capitalized” balance sheet and adequate levels of liquidity . our board of directors has also established a contingency funding policy to guide management in addressing stressed liquidity conditions . these policies designate our asset/liability committee ( alco ) as the body responsible for meeting these objectives . the alco , which is comprised of members of executive management , reviews liquidity on a continuous basis and approves significant changes in strategies that affect balance sheet or cash flow positions . liquidity is centrally managed on a daily basis by our treasury department . fnbpa generates liquidity from its normal business operations . liquidity sources from assets include payments from loans and investments , as well as the ability to securitize , pledge or sell loans , investment securities and other assets . liquidity sources from liabilities are generated primarily through the banking offices of fnbpa in the form of deposits and customer repurchase agreements . fnb also has access to reliable and cost-effective wholesale sources of liquidity . short- and long-term funds can be acquired to help fund normal business operations , as well as to serve as contingency funding in the event that we would be faced with a liquidity crisis . the principal sources of the parent company 's liquidity are its strong existing cash resources plus dividends it receives from its subsidiaries . these dividends may be impacted by the parent 's or its subsidiaries ' capital needs , statutory laws and regulations , corporate policies , contractual restrictions , profitability and other factors . in addition , fnb , through one of our subsidiaries , regularly issues subordinated notes , which are guaranteed by fnb . cash on hand at the parent has been managed by various strategies over the last few years .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity our goal in liquidity management is to satisfy the cash flow requirements of customers and the operating cash needs of fnb with cost-effective funding . our board of directors has established an asset/liability management policy in order to guide management in achieving and maintaining earnings performance consistent 71 with long-term goals , while maintaining acceptable levels of interest rate risk , a “well-capitalized” balance sheet and adequate levels of liquidity . our board of directors has also established a contingency funding policy to guide management in addressing stressed liquidity conditions . these policies designate our asset/liability committee ( alco ) as the body responsible for meeting these objectives . the alco , which is comprised of members of executive management , reviews liquidity on a continuous basis and approves significant changes in strategies that affect balance sheet or cash flow positions . liquidity is centrally managed on a daily basis by our treasury department . fnbpa generates liquidity from its normal business operations . liquidity sources from assets include payments from loans and investments , as well as the ability to securitize , pledge or sell loans , investment securities and other assets . liquidity sources from liabilities are generated primarily through the banking offices of fnbpa in the form of deposits and customer repurchase agreements . fnb also has access to reliable and cost-effective wholesale sources of liquidity . short- and long-term funds can be acquired to help fund normal business operations , as well as to serve as contingency funding in the event that we would be faced with a liquidity crisis . the principal sources of the parent company 's liquidity are its strong existing cash resources plus dividends it receives from its subsidiaries . these dividends may be impacted by the parent 's or its subsidiaries ' capital needs , statutory laws and regulations , corporate policies , contractual restrictions , profitability and other factors . in addition , fnb , through one of our subsidiaries , regularly issues subordinated notes , which are guaranteed by fnb . cash on hand at the parent has been managed by various strategies over the last few years . ``` Suspicious Activity Report : the most significant accounting policies followed by fnb are presented in note 1 , “summary of significant accounting policies” in the notes to consolidated financial statements , which is included in item 8 of this report . these policies , along with the disclosures presented in the notes to consolidated financial statements , provide information on how we value significant assets and liabilities in the consolidated financial statements , how we determine those values and how we record transactions in the consolidated financial statements . management views critical accounting policies to be those which are highly dependent on subjective or complex judgments , estimates and assumptions , and where changes in those estimates and assumptions could have a significant impact on the consolidated financial statements . management currently views the determination of the allowance for credit losses , accounting for acquired loans , fair value of financial instruments , goodwill and other intangible assets , litigation and income taxes to be critical accounting policies . 43 allowance for credit losses the allowance for credit losses addresses credit losses inherent in the existing loan portfolio and in unfunded loan commitments and standby letters of credit at the balance sheet date , and is presented as a reserve against loans and other liabilities , respectively , on the consolidated balance sheets . management 's assessment of the appropriateness of the allowance for credit losses considers individual impaired loans , pools of homogeneous loans with similar risk characteristics and other risk factors concerning the economic environment . these analyses involve a high degree of judgment in estimating the amount of loss associated with specific impaired loans , including estimating the amount and timing of future cash flows , current fair value of the underlying collateral and other qualitative risk factors that may affect the loan , all of which may be susceptible to significant change . the evaluation of this component of the allowance for credit losses requires considerable judgment in order to reasonably estimate inherent loss exposures . loans with similar risk characteristics are categorized into pools based on loan type and by internal risk rating for commercial loans , or payment performance and fico score for consumer loans . there is considerable judgment involved in setting internal commercial risk ratings , including an evaluation of the borrower 's current financial condition and ability to repay the loan . transition matrices are generated on a monthly basis to determine probabilities of default , while historical loss experience is used to generate loss given default results for the pools . inherent but undetected losses may arise due to uncertainties in economic conditions , delays in obtaining information , including unfavorable information about a borrower 's financial condition , the difficulty in identifying triggering events that correlate to subsequent loss rates and risk factors that have not yet manifested themselves in loss allocation factors . uncertainty surrounding the strength and timing of economic cycles also affects estimates of loss . the historical loss experience used in the transition matrices and historical loss experience analysis may not be representative of actual unrealized losses inherent in the portfolio . management evaluates the impact of various qualitative factors which pose additional risks that may not adequately be addressed in the analyses described above . expected loss rates for each loan category may be adjusted for levels of and trends in loan volumes , net charge-offs , delinquency and non-performing loans . in addition , management takes into consideration the impact of changes to lending policies ; the experience and depth of lending management and staff ; the results of internal loan reviews ; concentrations of credit ; competition , legal and regulatory risk ; market uncertainty and collateral illiquidity ; national and local economic trends ; or any other common risk factor that might affect loss experience across one or more components of the portfolio . the assessment of relevant economic factors indicates that fnb 's primary markets historically tend to lag the national economy , with local economies in our primary market areas also improving or weakening , as the case may be , but at a more measured rate than the national trends . regional economic factors influencing management 's estimate of allowance for credit losses include , but are not limited to , uncertainty of the labor markets , industrial presence , commercial real estate activity and residential real estate values . the determination of this qualitative component of the allowance for credit losses is particularly dependent on the judgment of management . to the extent actual outcomes differ from management estimates , additional provisions for credit losses could be required that may adversely affect our earnings or financial position in future periods . the provision for credit losses section in the results of operations includes a discussion of the factors affecting changes in the allowance for credit losses during the current period . see note 1 , “summary of significant accounting policies” and the note 6 , “loans and leases” in the notes to consolidated financial statements for further information on the allowance for credit losses . accounting for acquired loans all acquired loans are initially measured at fair value at the date of acquisition . the fair value of acquired loans is based on a discounted cash flow methodology that involves assumptions and judgments as to credit risk , default rates , loss severity , collateral values , discount rates , prepayment speeds , prepayment risk and liquidity 44 risk . the measurement of fair value on acquired loans prohibits the carryover or establishment of an allowance for loan losses at acquisition date . acquired loans are evaluated for impairment in accordance with the provisions of accounting standards codification ( asc ) 310-30. acquired loans are considered impaired if there is evidence of credit deterioration since origination and if it is probable at time of acquisition that all contractually required payments will not be collected . story_separator_special_tag we believe this measure to be the preferred industry measurement of net interest income and provides relevant comparison between taxable and non-taxable amounts . ( 3 ) average balances include non-accrual loans . loans consist of average total loans less average unearned income net interest income net interest income , which is our major source of revenue , is the difference between interest income from interest-earning assets and interest expense paid on interest-bearing liabilities . in 2016 , net interest income , 50 which comprised 75.2 % of net revenue ( net interest income plus non-interest income ) compared to 75.4 % in 2015 , was affected by the general level of interest rates , changes in interest rates , the timing of repricing of assets and liabilities , the shape of the yield curve , the level of non-accrual loans and changes in the amount and mix of interest-earning assets and interest-bearing liabilities . net interest income on an fte basis ( non-gaap ) of $ 622.8 million for 2016 increased $ 116.9 million or 23.1 % from $ 505.9 million for 2015. average interest earning assets increased $ 3.6 billion or 24.6 % and average interest-bearing liabilities increased $ 2.5 billion or 21.9 % from 2015 , primarily due to the metr acquisition , combined with organic growth in loans and deposits . our net interest margin ( non-gaap ) was 3.38 % for 2016 , compared to 3.42 % for 2015 , reflecting the impact of an extended low interest rate environment and a competitive landscape for interest-earning assets . the tax-equivalent adjustment to net interest income ( non-gaap ) from amounts reported in our financial statements is shown in the preceding table . the following table provides certain information regarding changes in net interest income on an fte basis ( non-gaap ) attributable to changes in the average volumes and yields earned on interest-earning assets and the average volume and rates paid for interest-bearing liabilities for the periods indicated : replace_table_token_9_th ( 1 ) the amount of change not solely due to rate or volume was allocated between the change due to rate and the change due to volume based on the net size of the rate and volume changes . ( 2 ) interest income amounts are reflected on an fte basis ( non-gaap ) which adjusts for the tax benefit of income on certain tax-exempt loans and investments using the federal statutory tax rate of 35.0 % for each period presented . we believe this measure to be the preferred industry measurement of net interest income and provides relevant comparison between taxable and non-taxable amounts . interest income on an fte basis ( non-gaap ) of $ 690.2 million for 2016 , increased $ 135.8 million or 24.5 % from 2015 , primarily due to increased interest-earning assets , which was slightly offset by lower yields . during 2016 and 2015 , we recognized benefits of $ 6.7 million and $ 5.0 million , respectively , in accretable yield adjustments on acquired loans . the increase in interest-earning assets was primarily driven by a $ 2.6 billion or 22.4 % increase in average loans and leases , including $ 929.2 million or 8.0 % of organic growth , which reflects the benefit of our expanded banking footprint and successful sales management . loans added at closing in the fifth third branch purchase and metr acquisition were $ 95.4 million and $ 1.9 billion , respectively . the loans added in the bofa branch purchase were immaterial . additionally , average securities increased $ 971.8 million or 31.7 % , primarily due to replacing the securities acquired from metr with new securities . the yield on average interest-earning assets ( non-gaap ) decreased 1 basis point from 3.75 % for 2015 to 3.74 % for 2016 . 51 interest expense of $ 67.5 million for 2016 increased $ 18.9 million or 38.9 % from 2015 due to an increase in rates paid and growth in interest-bearing liabilities , as all categories of interest-bearing liabilities increased over the same period of 2015. average interest-bearing deposits increased $ 2.2 billion or 23.3 % , including $ 242.4 million or 11.2 % of organic growth , which reflects the benefit of our expanded banking footprint . additionally , interest-bearing deposits added at closing in the fifth third branch purchase , metr acquisition and bofa branch purchase were $ 258.1 million , $ 1.9 billion and $ 105.3 million , respectively . average short-term borrowings increased $ 311.6 million or 18.7 % , primarily as a result of a $ 538.2 increase in federal funds purchased , partially offset by declines of $ 201.3 million and $ 25.3 million in customer repurchase agreements and short-term fhlb borrowings , respectively . average long-term borrowings increased $ 49.4 million or 8.7 % , primarily due to $ 100.0 million in subordinated notes that we issued in our october 2015 debt offering in anticipation of the acquisitions in early 2016. the rate paid on interest-bearing liabilities increased 6 basis points to 0.48 % for 2016 , compared to 0.42 % for 2015 , due to the debt offering and changes in the funding mix as borrowings increased faster than deposits . given the relatively low level of interest rates and the current rates paid on the various deposit products , we believe there is limited opportunity for reductions in the overall rate paid on interest-bearing liabilities . provision for credit losses the provision for credit losses is determined based on management 's estimates of the appropriate level of allowance for credit losses needed to absorb probable losses inherent in the existing loan and lease portfolio , after giving consideration to charge-offs and recoveries for the period . the following table presents information regarding the provision for credit losses and net charge-offs for the years 2014 through 2016 : replace_table_token_10_th the provision for credit losses of $ 55.8 million during 2016 increased $

the ultimate amount of these claims will likely include amounts for incremental counterfeit fraud losses and non-ordinary course operating expenses ( such as card reissuance costs ) that the payment card networks believe they or their issuing banks have incurred . in order for us to have liability for such claims , we believe that a court would have to find among other things that ( 1 ) at the time of the data breach the portion of our network that handles payment card data was noncompliant with applicable data security standards in a manner that contributed to the data breach , and ( 2 ) the network operating rules around reimbursement of operating costs and counterfeit fraud losses are enforceable . while an independent third-party assessor found the portion of our network that handles payment card data to be compliant with applicable data security standards in the fall of 2013 , we expect the forensic investigator working on behalf of the payment card networks nonetheless to claim that we were not in compliance with those standards at the time of the data breach . we base that expectation on our understanding that , in cases like ours where prior to a data breach the entity suffering the breach had been found by an independent third-party assessor to be fully compliant with those standards , the network-approved forensic investigator nonetheless regularly claims that the breached entity was not in fact compliant with those standards . as a result , we believe it is probable that the payment card networks will make claims against us . we expect to dispute the payment card networks ' anticipated claims , and we think it is likely that our disputes would lead to settlement negotiations consistent with the experience of other entities that have suffered similar payment card breaches . we believe such negotiations would effect a combined settlement of both the payment card networks ' counterfeit fraud loss allegations and their non-ordinary course operating expense allegations . we based our year-end accrual on the expectation of reaching negotiated settlements of the payment card networks ' anticipated claims and not on any determination that it is probable we would be found liable on these claims were they to be litigated . currently , we can only reasonably estimate a loss associated with settlements of the networks ' expected claims for non-ordinary course operating expenses . the year-end accrual does not include any amounts associated with the networks ' expected claims for alleged incremental counterfeit fraud losses because the loss associated with settling such claims , while probable in our judgment , is not reasonably estimable , in part because we have not yet received third-party fraud reporting from the payment card networks . we are not able to reasonably estimate a range of possible losses in excess of the year-end accrual related to the expected settlement of the payment card networks ' claims because the investigation into the matter is ongoing and there are significant factual and legal issues to be resolved . we believe that the ultimate amount paid on payment card network claims could be material to our results of operations in future periods . 17 litigation and governmental investigations in addition , more than 80 actions have been filed in courts in many states and other claims have been or may be asserted against us on behalf of guests , payment card issuing banks , shareholders or others seeking damages or other related relief , allegedly arising out of the data breach . state and federal agencies , including the state attorneys general , the federal trade commission and the sec are investigating events related to the data breach , including how it occurred , its consequences and our responses . although we are cooperating in these investigations , we may be subject to fines or other obligations , which may have an adverse effect on how we operate our business and our results of operations . while a loss from these matters is reasonably possible , we can not reasonably estimate a range of possible losses because our investigation into the matter is ongoing , the proceedings remain in the early stages , alleged damages have not been specified , there is uncertainty as to the likelihood of a class or classes being certified or the ultimate size of any class if certified , and there are significant factual and legal issues to be resolved . further , we do not believe that a loss from these matters is probable ; therefore , we have not recorded a loss contingency liability for litigation , claims and governmental investigations in the fourth quarter . see note 17 of the notes to consolidated financial statements included in item 8 , financial statements and supplementary data . future costs we expect to incur significant investigation , legal and professional services expenses associated with the data breach in future periods . we will recognize these expenses as services are received . we also expect to incur additional expenses associated with incremental fraud and reissuance costs on target redcards . insurance coverage to limit our exposure to data breach losses , we maintain $ 100 million of network-security insurance coverage , above a $ 10 million deductible . this coverage and certain other insurance coverage may reduce our exposure . we will pursue recoveries to the maximum extent available under the policies . as of february 1 , 2014 , we have recorded a $ 44 million receivable for costs we believe are reimbursable and probable of recovery under our insurance coverage , which partially offsets the $ 61 million of expense relating to the data breach . story_separator_special_tag see note 20 of the notes to consolidated financial statements for further information . ( c ) real estate liabilities include costs incurred but not paid related to the construction or remodeling of real estate and facilities . ( d ) deferred compensation obligations include commitments related to our nonqualified deferred compensation plans . the timing of deferred compensation payouts is estimated based on payments currently made to former employees and retirees , forecasted investment returns , and the projected timing of future retirements . ( e ) estimated tax contingencies of $ 241 million , including interest and penalties , are not included in the table above because we are not able to make reasonably reliable estimates of the period of cash settlement . see note 21 of the notes to consolidated financial statements for further information . ( f ) estimated loss contingencies , including those related to the data breach , are not included in the table above because we are not able to make reasonably reliable estimates of the period of cash settlement . see note 17 of the notes to consolidated financial statements for further information . ( g ) real estate obligations include commitments for the purchase , construction or remodeling of real estate and facilities . ( h ) purchase obligations include all legally binding contracts such as firm minimum commitments for inventory purchases , merchandise royalties , equipment purchases , marketing-related contracts , software acquisition/license commitments and service contracts . ( note : we expect to extend certain merchandise contracts during the first quarter of 2014 , which could increase our minimum purchase commitment by approximately $ 1,500 million . ) we issue inventory purchase orders in the normal course of business , which represent authorizations to purchase that are cancelable by their terms . we do not consider purchase orders to be firm inventory commitments ; therefore , they are excluded from the table above . if we choose to cancel a purchase order , we may be obligated to reimburse the vendor for unrecoverable outlays incurred prior to cancellation . we also issue trade letters of credit in the ordinary course of business , which are excluded from this table as these obligations are conditioned on terms of the letter of credit being met . ( i ) we have not included obligations under our pension and postretirement health care benefit plans in the contractual obligations table above because no additional amounts are required to be funded as of february 1 , 2014 . our historical practice regarding these plans has been to contribute amounts necessary to satisfy minimum pension funding requirements , plus periodic discretionary amounts determined to be appropriate . off balance sheet arrangements : other than the unrecorded contractual obligations above , we do not have any arrangements or relationships with entities that are not consolidated into the financial statements . critical accounting estimates our analysis of operations and financial condition is based on our consolidated financial statements prepared in accordance with gaap . preparation of these consolidated financial statements requires us to make estimates and assumptions affecting the reported amounts of assets and liabilities at the date of the consolidated financial statements , reported amounts of revenues and expenses during the reporting period and related disclosures of contingent assets 28 and liabilities . in the notes to consolidated financial statements , we describe the significant accounting policies used in preparing the consolidated financial statements . our estimates are evaluated on an ongoing basis and are drawn from historical experience and other assumptions that we believe to be reasonable under the circumstances . actual results could differ under other assumptions or conditions . however , we do not believe there is a reasonable likelihood that there will be a material change in future estimates or assumptions . our senior management has discussed the development and selection of our critical accounting estimates with the audit committee of our board of directors . the following items in our consolidated financial statements require significant estimation or judgment : inventory and cost of sales : we use the retail inventory method to account for the majority of our inventory and the related cost of sales . under this method , inventory is stated at cost using the last-in , first-out ( lifo ) method as determined by applying a cost-to-retail ratio to each merchandise grouping 's ending retail value . the cost of our inventory includes the amount we pay to our suppliers to acquire inventory , freight costs incurred in connection with the delivery of product to our distribution centers and stores , and import costs , reduced by vendor income and cash discounts . the majority of our distribution center operating costs , including compensation and benefits , are expensed to cost of sales in the period incurred . since inventory value is adjusted regularly to reflect market conditions , our inventory methodology reflects the lower of cost or market . we reduce inventory for estimated losses related to shrink and markdowns . our shrink estimate is based on historical losses verified by physical inventory counts . historically , our actual physical inventory count results have shown our estimates to be reliable . markdowns designated for clearance activity are recorded when the salability of the merchandise has diminished . inventory is at risk of obsolescence if economic conditions change , including changing consumer demand , guest preferences , changing consumer credit markets or increasing competition . we believe these risks are largely mitigated because our inventory typically turns in less than three months . inventory was $ 8,766 million and $ 7,903 million at february 1 , 2014 and february 2 , 2013 , respectively , and is further described in note 10 of the notes to consolidated financial statements . vendor income receivable : cost of sales and sg & a expenses are partially offset by various forms of consideration received from our vendors . this `` vendor

cash flows our 2013 operations were funded by both internally generated funds and proceeds from the sale of our consumer credit card receivables portfolio . cash flow provided by operations was $ 6,520 million in 2013 compared with $ 5,325 million in 2012 . our cash flows , combined with our prior year-end cash position , allowed us to pay current debt maturities , invest in the business , pay dividends and repurchase shares under our share repurchase program . concurrent with the sale of our u.s. credit card portfolio described in note 6 of the notes to consolidated financial statements included in item 8 , financial statements and supplementary data , we repaid the nonrecourse debt collateralized by credit card receivables ( 2006/2007 series variable funding certificate ) at par of $ 1.5 billion . also 25 during the first quarter of 2013 , we used $ 1.4 billion of the net proceeds received from the sale to repurchase , at market value , $ 970 million of debt . we have applied additional proceeds from the sale to reduce our debt and repurchase shares . year-end inventory levels increased from $ 7,903 million in 2012 to $ 8,766 million in 2013 , about half of which was for our 2013 canadian market entry . accounts payable increased by $ 627 million , or 8.9 percent over the same period . share repurchases during the first quarter of 2012 , we completed a $ 10 billion share repurchase program authorized by our board of directors in november 2007 , and began repurchasing shares under a new $ 5 billion program authorized by our board of directors in january 2012. during 2013 , we repurchased 21.9 million shares of our common stock for a total investment of $ 1,474 million ( $ 67.41 per share ) . we did not repurchase any shares during the second half of 2013 due to our performance and desire to maintain our strong investment grade credit ratings . during 2012 , we repurchased 32.2 million shares of our common stock for a total investment of $ 1,900 million ( $ 58.96 per share ) .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```cash flows our 2013 operations were funded by both internally generated funds and proceeds from the sale of our consumer credit card receivables portfolio . cash flow provided by operations was $ 6,520 million in 2013 compared with $ 5,325 million in 2012 . our cash flows , combined with our prior year-end cash position , allowed us to pay current debt maturities , invest in the business , pay dividends and repurchase shares under our share repurchase program . concurrent with the sale of our u.s. credit card portfolio described in note 6 of the notes to consolidated financial statements included in item 8 , financial statements and supplementary data , we repaid the nonrecourse debt collateralized by credit card receivables ( 2006/2007 series variable funding certificate ) at par of $ 1.5 billion . also 25 during the first quarter of 2013 , we used $ 1.4 billion of the net proceeds received from the sale to repurchase , at market value , $ 970 million of debt . we have applied additional proceeds from the sale to reduce our debt and repurchase shares . year-end inventory levels increased from $ 7,903 million in 2012 to $ 8,766 million in 2013 , about half of which was for our 2013 canadian market entry . accounts payable increased by $ 627 million , or 8.9 percent over the same period . share repurchases during the first quarter of 2012 , we completed a $ 10 billion share repurchase program authorized by our board of directors in november 2007 , and began repurchasing shares under a new $ 5 billion program authorized by our board of directors in january 2012. during 2013 , we repurchased 21.9 million shares of our common stock for a total investment of $ 1,474 million ( $ 67.41 per share ) . we did not repurchase any shares during the second half of 2013 due to our performance and desire to maintain our strong investment grade credit ratings . during 2012 , we repurchased 32.2 million shares of our common stock for a total investment of $ 1,900 million ( $ 58.96 per share ) . ``` Suspicious Activity Report : the ultimate amount of these claims will likely include amounts for incremental counterfeit fraud losses and non-ordinary course operating expenses ( such as card reissuance costs ) that the payment card networks believe they or their issuing banks have incurred . in order for us to have liability for such claims , we believe that a court would have to find among other things that ( 1 ) at the time of the data breach the portion of our network that handles payment card data was noncompliant with applicable data security standards in a manner that contributed to the data breach , and ( 2 ) the network operating rules around reimbursement of operating costs and counterfeit fraud losses are enforceable . while an independent third-party assessor found the portion of our network that handles payment card data to be compliant with applicable data security standards in the fall of 2013 , we expect the forensic investigator working on behalf of the payment card networks nonetheless to claim that we were not in compliance with those standards at the time of the data breach . we base that expectation on our understanding that , in cases like ours where prior to a data breach the entity suffering the breach had been found by an independent third-party assessor to be fully compliant with those standards , the network-approved forensic investigator nonetheless regularly claims that the breached entity was not in fact compliant with those standards . as a result , we believe it is probable that the payment card networks will make claims against us . we expect to dispute the payment card networks ' anticipated claims , and we think it is likely that our disputes would lead to settlement negotiations consistent with the experience of other entities that have suffered similar payment card breaches . we believe such negotiations would effect a combined settlement of both the payment card networks ' counterfeit fraud loss allegations and their non-ordinary course operating expense allegations . we based our year-end accrual on the expectation of reaching negotiated settlements of the payment card networks ' anticipated claims and not on any determination that it is probable we would be found liable on these claims were they to be litigated . currently , we can only reasonably estimate a loss associated with settlements of the networks ' expected claims for non-ordinary course operating expenses . the year-end accrual does not include any amounts associated with the networks ' expected claims for alleged incremental counterfeit fraud losses because the loss associated with settling such claims , while probable in our judgment , is not reasonably estimable , in part because we have not yet received third-party fraud reporting from the payment card networks . we are not able to reasonably estimate a range of possible losses in excess of the year-end accrual related to the expected settlement of the payment card networks ' claims because the investigation into the matter is ongoing and there are significant factual and legal issues to be resolved . we believe that the ultimate amount paid on payment card network claims could be material to our results of operations in future periods . 17 litigation and governmental investigations in addition , more than 80 actions have been filed in courts in many states and other claims have been or may be asserted against us on behalf of guests , payment card issuing banks , shareholders or others seeking damages or other related relief , allegedly arising out of the data breach . state and federal agencies , including the state attorneys general , the federal trade commission and the sec are investigating events related to the data breach , including how it occurred , its consequences and our responses . although we are cooperating in these investigations , we may be subject to fines or other obligations , which may have an adverse effect on how we operate our business and our results of operations . while a loss from these matters is reasonably possible , we can not reasonably estimate a range of possible losses because our investigation into the matter is ongoing , the proceedings remain in the early stages , alleged damages have not been specified , there is uncertainty as to the likelihood of a class or classes being certified or the ultimate size of any class if certified , and there are significant factual and legal issues to be resolved . further , we do not believe that a loss from these matters is probable ; therefore , we have not recorded a loss contingency liability for litigation , claims and governmental investigations in the fourth quarter . see note 17 of the notes to consolidated financial statements included in item 8 , financial statements and supplementary data . future costs we expect to incur significant investigation , legal and professional services expenses associated with the data breach in future periods . we will recognize these expenses as services are received . we also expect to incur additional expenses associated with incremental fraud and reissuance costs on target redcards . insurance coverage to limit our exposure to data breach losses , we maintain $ 100 million of network-security insurance coverage , above a $ 10 million deductible . this coverage and certain other insurance coverage may reduce our exposure . we will pursue recoveries to the maximum extent available under the policies . as of february 1 , 2014 , we have recorded a $ 44 million receivable for costs we believe are reimbursable and probable of recovery under our insurance coverage , which partially offsets the $ 61 million of expense relating to the data breach . story_separator_special_tag see note 20 of the notes to consolidated financial statements for further information . ( c ) real estate liabilities include costs incurred but not paid related to the construction or remodeling of real estate and facilities . ( d ) deferred compensation obligations include commitments related to our nonqualified deferred compensation plans . the timing of deferred compensation payouts is estimated based on payments currently made to former employees and retirees , forecasted investment returns , and the projected timing of future retirements . ( e ) estimated tax contingencies of $ 241 million , including interest and penalties , are not included in the table above because we are not able to make reasonably reliable estimates of the period of cash settlement . see note 21 of the notes to consolidated financial statements for further information . ( f ) estimated loss contingencies , including those related to the data breach , are not included in the table above because we are not able to make reasonably reliable estimates of the period of cash settlement . see note 17 of the notes to consolidated financial statements for further information . ( g ) real estate obligations include commitments for the purchase , construction or remodeling of real estate and facilities . ( h ) purchase obligations include all legally binding contracts such as firm minimum commitments for inventory purchases , merchandise royalties , equipment purchases , marketing-related contracts , software acquisition/license commitments and service contracts . ( note : we expect to extend certain merchandise contracts during the first quarter of 2014 , which could increase our minimum purchase commitment by approximately $ 1,500 million . ) we issue inventory purchase orders in the normal course of business , which represent authorizations to purchase that are cancelable by their terms . we do not consider purchase orders to be firm inventory commitments ; therefore , they are excluded from the table above . if we choose to cancel a purchase order , we may be obligated to reimburse the vendor for unrecoverable outlays incurred prior to cancellation . we also issue trade letters of credit in the ordinary course of business , which are excluded from this table as these obligations are conditioned on terms of the letter of credit being met . ( i ) we have not included obligations under our pension and postretirement health care benefit plans in the contractual obligations table above because no additional amounts are required to be funded as of february 1 , 2014 . our historical practice regarding these plans has been to contribute amounts necessary to satisfy minimum pension funding requirements , plus periodic discretionary amounts determined to be appropriate . off balance sheet arrangements : other than the unrecorded contractual obligations above , we do not have any arrangements or relationships with entities that are not consolidated into the financial statements . critical accounting estimates our analysis of operations and financial condition is based on our consolidated financial statements prepared in accordance with gaap . preparation of these consolidated financial statements requires us to make estimates and assumptions affecting the reported amounts of assets and liabilities at the date of the consolidated financial statements , reported amounts of revenues and expenses during the reporting period and related disclosures of contingent assets 28 and liabilities . in the notes to consolidated financial statements , we describe the significant accounting policies used in preparing the consolidated financial statements . our estimates are evaluated on an ongoing basis and are drawn from historical experience and other assumptions that we believe to be reasonable under the circumstances . actual results could differ under other assumptions or conditions . however , we do not believe there is a reasonable likelihood that there will be a material change in future estimates or assumptions . our senior management has discussed the development and selection of our critical accounting estimates with the audit committee of our board of directors . the following items in our consolidated financial statements require significant estimation or judgment : inventory and cost of sales : we use the retail inventory method to account for the majority of our inventory and the related cost of sales . under this method , inventory is stated at cost using the last-in , first-out ( lifo ) method as determined by applying a cost-to-retail ratio to each merchandise grouping 's ending retail value . the cost of our inventory includes the amount we pay to our suppliers to acquire inventory , freight costs incurred in connection with the delivery of product to our distribution centers and stores , and import costs , reduced by vendor income and cash discounts . the majority of our distribution center operating costs , including compensation and benefits , are expensed to cost of sales in the period incurred . since inventory value is adjusted regularly to reflect market conditions , our inventory methodology reflects the lower of cost or market . we reduce inventory for estimated losses related to shrink and markdowns . our shrink estimate is based on historical losses verified by physical inventory counts . historically , our actual physical inventory count results have shown our estimates to be reliable . markdowns designated for clearance activity are recorded when the salability of the merchandise has diminished . inventory is at risk of obsolescence if economic conditions change , including changing consumer demand , guest preferences , changing consumer credit markets or increasing competition . we believe these risks are largely mitigated because our inventory typically turns in less than three months . inventory was $ 8,766 million and $ 7,903 million at february 1 , 2014 and february 2 , 2013 , respectively , and is further described in note 10 of the notes to consolidated financial statements . vendor income receivable : cost of sales and sg & a expenses are partially offset by various forms of consideration received from our vendors . this `` vendor

the repurchase program authorizes us to make repurchases on a discretionary basis as determined by management , subject to market conditions , applicable legal requirements , available liquidity , and other appropriate factors . all or a portion of any repurchases may be made under a rule 10b5-1 plan , which would permit common units to be repurchased when we might otherwise be precluded from doing so under applicable laws . the repurchase program does not obligate us to acquire any particular amount of common units and may be modified or suspended at any time and could be terminated prior to completion . we will periodically report the number of common units repurchased . in 2018 , we repurchased a total of 128,627 common units for an aggregate cost of $ 2.0 million . the program is funded from cash on hand or through borrowings under the credit facility . any repurchased units are canceled . business environment the information below is designed to give a broad overview of the oil and natural gas business environment as it affects us . commodity prices and demand oil and natural gas prices have been historically volatile based upon the dynamics of supply and demand . the eia forecasts that wti oil prices will average approximately $ 54.79 per bbl in 2019 and $ 58.00 per bbl in 2020 . during the year ended december 31 , 2018 , the wti oil spot price reached a high of $ 77.41 per bbl on june 27 , 2018 but decreased to a low of $ 44.48 per bbl on december 27 , 2018. the eia forecasts that the henry hub spot natural gas price will average $ 2.83 per mmbtu for 2019 and $ 2.80 per mmbtu for 2020 . during the year ended december 31 , 2018 , henry hub spot natural gas prices ranged from a high of $ 6.24 per mmbtu on january 3 , 2018 to a low of $ 2.49 per mmbtu on february 16 , 2018. to manage the variability in cash flows associated with the projected sale of our oil and natural gas production , we use various derivative instruments , which have recently consisted of fixed-price swap contracts and costless collar contracts . the following table reflects commodity prices at the end of each quarter presented : replace_table_token_17_th 1 source : eia rig count as we are not the operator of record on any producing properties , drilling on our acreage is dependent upon the exploration and production companies that lease our acreage . in addition to drilling plans that we seek from our operators , we also monitor rig counts in an effort to identify existing and future leasing and drilling activity on our acreage . 52 the following table shows the rig count at the end of each quarter presented : replace_table_token_18_th 1 source : baker hughes incorporated natural gas storage a substantial portion of our revenue is derived from sales of oil production attributable to our interests ; however , the majority of our production is natural gas . natural gas prices are significantly influenced by storage levels throughout the year . accordingly , we monitor the natural gas storage reports regularly in the evaluation of our business and its outlook . historically , natural gas supply and demand fluctuates on a seasonal basis . from april to october , when the weather is warmer and natural gas demand is lower , natural gas storage levels generally increase . from november to march , storage levels typically decline as utility companies draw natural gas from storage to meet increased heating demand due to colder weather . in order to maintain sufficient storage levels for increased seasonal demand , a portion of natural gas production during the summer months must be used for storage injection . the portion of production used for storage varies from year to year depending on the demand from the previous winter and the demand for electricity used for cooling during the summer months . the eia forecasts that inventories will conclude the withdrawal season , which is the end of march 2019 , at 1,417 bcf , or 14 % below the five-year average . the eia expects inventories to build slightly over the five-year average to a projected 3,761 bcf at the end of october 2019 ; in 2020 , inventories are expected to be about 5 % higher on average than 2019 levels . the following table shows natural gas storage volumes by region at the end of each quarter presented : replace_table_token_19_th 1 source : eia 53 how we evaluate our operations we use a variety of operational and financial measures to assess our performance . among the measures considered by management are the following : volumes of oil and natural gas produced ; commodity prices including the effect of derivative instruments ; and adjusted ebitda and distributable cash flow . volumes of oil and natural gas produced in order to track and assess the performance of our assets , we monitor and analyze our production volumes from the various basins and plays that constitute our extensive asset base . we also regularly compare projected volumes to actual reported volumes and investigate unexpected variances . commodity prices factors affecting the sales price of oil and natural gas the prices we receive for oil , natural gas , and ngls vary by geographical area . the relative prices of these products are determined by the factors affecting global and regional supply and demand dynamics , such as economic conditions , production levels , availability of transportation , weather cycles , and other factors . in addition , realized prices are influenced by product quality and proximity to consuming and refining markets . any differences between realized prices and nymex prices are referred to as differentials . all our production is derived from properties located in the united states . oil . story_separator_special_tag our mineral and royalty interest oil and condensate volumes accounted for 83 % and 77 % of total oil and condensate volumes for the years ended december 31 , 2017 and 2016 , respectively . our oil and condensate volumes decreased slightly in 2017 . natural gas and natural gas liquids sales . natural gas and ngl sales increased for the year ended december 31 , 2017 as compared to 2016 . during 2017 , production from new wells in haynesville/bossier and wilcox plays combined with higher natural gas and ngl prices drove the increase in natural gas and ngl sales . mineral and royalty interest production accounted for 51 % and 59 % of our natural gas and ngl volumes for the years ended december 31 , 2017 and 2016 , respectively . 59 gain ( loss ) on commodity derivative instruments . in 2017 , we recognized $ 5.1 million of net losses from oil commodity contracts , which included cash received of $ 10.9 million , compared to $ 16.0 million of recognized net losses in 2016 . in 2017 , we recognized $ 32.0 million of net gains from natural gas commodity contracts , which included cash received of $ 4.3 million , compared to $ 20.5 million of net losses in 2016 . lease bonus and other income . when we lease our mineral interests , we generally receive an upfront cash payment , or a lease bonus . lease bonus and delay rental revenue increased for the year ended december 31 , 2017 , as compared to 2016 . in 2017 , we successfully closed several significant lease transactions in the austin chalk , bakken/three forks , haynesville/bossier and canyon lime plays as well as the anadarko and permian basins , compared to the majority of 2016 activity which came from the wolfcamp , austin chalk , and marcellus plays . operating expenses lease operating expense . lease operating expense includes normally recurring expenses associated with our non-operated working interests necessary to produce hydrocarbons from our oil and natural gas wells , as well as certain nonrecurring expenses , such as well repairs . lease operating expense decreased for the year ended december 31 , 2017 as compared to 2016 , primarily due to fewer remedial projects initiated by our operators . production costs and ad valorem taxes . production taxes include statutory amounts deducted from our production revenues by various state taxing entities . depending on the regulations of the states where the production originates , these taxes may be based on a percentage of the realized value or a fixed amount per production unit . this category also includes the costs to process and transport our production to applicable sales points . ad valorem taxes are jurisdictional taxes levied on the value of oil and natural gas minerals and reserves . rates , methods of calculating property values , and timing of payments vary between taxing authorities . for the year ended december 31 , 2017 , production and ad valorem taxes increased over the year ended december 31 , 2016 , generally as a result of higher production volumes and commodity prices . exploration expense . exploration expense typically consists of dry-hole expenses , delay rentals , and geological and geophysical costs , including seismic costs , and is expensed as incurred under the successful efforts method of accounting . exploration expense for 2017 represents costs incurred to acquire 3-d seismic information , related to our mineral and royalty interests , from a third-party service provider . depreciation , depletion , and amortization . depletion is the amount of cost basis of oil and natural gas properties attributable to the volume of hydrocarbons extracted during such period , calculated on a units-of-production basis . estimates of proved developed producing reserves are a major component of the calculation of depletion . we adjust our depletion rates semi-annually based upon the mid-year and year-end reserve reports , except when circumstances indicate that there has been a significant change in reserves or costs . depreciation , depletion , and amortization expense increased for the year ended december 31 , 2017 as compared to 2016 , primarily due to higher production volumes partially offset by lower depletion rates . impairment of oil and natural gas properties . individual categories of oil and natural gas properties are assessed periodically to determine if the net book value for these properties has been impaired . management periodically conducts an in-depth evaluation of the cost of property acquisitions , successful exploratory wells , development activities , unproved leasehold , and mineral interests to identify impairments . we did not incur any impairment in 2017 , while impairments for 2016 were $ 6.8 million . general and administrative . general and administrative expenses are costs not directly associated with the production of oil and natural gas and include the cost of employee salaries and related benefits , office expenses , and fees for professional services . for the year ended december 31 , 2017 , general and administrative expenses increased compared to 2016 . in 2017 , costs attributable to our long-term incentive plans were higher due to the achievement of certain performance targets ; we also incurred higher broker fees associated with increased acquisition activities . interest expense . interest expense increased due to higher average outstanding borrowings and higher interest rates under our credit facility , which were predominantly driven by increased acquisition of oil and natural gas properties in 2017 as compared to 2016 . 60 story_separator_special_tag style= `` line-height:120 % ; padding-top:16px ; text-indent:24px ; font-size:10pt ; `` > financing activities . cash flows provided by financing activities increased in 2017 as compared to 2016. the increase was primarily due to proceeds from the issuance of common units under our atm program and proceeds from the issuance of the series b cumulative convertible preferred units . decreased distributions to holders of the series a redeemable preferred

liquidity and capital resources overview our primary sources of liquidity are cash generated from operations , borrowings under our credit facility , and proceeds from the issuance of equity and debt . our primary uses of cash are for distributions to our unitholders and for investing in our business , specifically the acquisition of mineral and royalty interests and our selective participation on a non-operated working interest basis in the development of our oil and natural gas properties . the board of directors of our general partner has adopted a policy pursuant to which , at a minimum , distributions will be paid on each common and subordinated unit for each quarter to the extent we have sufficient cash generated from our operations after establishment of cash reserves , if any , and after we have made the required distributions to the holders of our outstanding preferred units . however , we do not have a legal or contractual obligation to pay distributions on our common and subordinated units quarterly or on any other basis , and there is no guarantee that we will pay distributions to our common and subordinated unitholders in any quarter . our minimum quarterly distribution provides the common unitholders a specified priority right to distributions over the subordinated unitholders . the priority right will cease to exist upon full conversion of the subordinated units to common units , which may occur as early as may of 2019. the board of directors of our general partner may change the foregoing distribution policy at any time and from time to time . we intend to finance our future acquisitions with cash generated from operations , borrowings from our credit facility , and proceeds from any future issuances of equity and debt .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 primary sources of liquidity are cash generated from operations , borrowings under our credit facility , and proceeds from the issuance of equity and debt . our primary uses of cash are for distributions to our unitholders and for investing in our business , specifically the acquisition of mineral and royalty interests and our selective participation on a non-operated working interest basis in the development of our oil and natural gas properties . the board of directors of our general partner has adopted a policy pursuant to which , at a minimum , distributions will be paid on each common and subordinated unit for each quarter to the extent we have sufficient cash generated from our operations after establishment of cash reserves , if any , and after we have made the required distributions to the holders of our outstanding preferred units . however , we do not have a legal or contractual obligation to pay distributions on our common and subordinated units quarterly or on any other basis , and there is no guarantee that we will pay distributions to our common and subordinated unitholders in any quarter . our minimum quarterly distribution provides the common unitholders a specified priority right to distributions over the subordinated unitholders . the priority right will cease to exist upon full conversion of the subordinated units to common units , which may occur as early as may of 2019. the board of directors of our general partner may change the foregoing distribution policy at any time and from time to time . we intend to finance our future acquisitions with cash generated from operations , borrowings from our credit facility , and proceeds from any future issuances of equity and debt . ``` Suspicious Activity Report : the repurchase program authorizes us to make repurchases on a discretionary basis as determined by management , subject to market conditions , applicable legal requirements , available liquidity , and other appropriate factors . all or a portion of any repurchases may be made under a rule 10b5-1 plan , which would permit common units to be repurchased when we might otherwise be precluded from doing so under applicable laws . the repurchase program does not obligate us to acquire any particular amount of common units and may be modified or suspended at any time and could be terminated prior to completion . we will periodically report the number of common units repurchased . in 2018 , we repurchased a total of 128,627 common units for an aggregate cost of $ 2.0 million . the program is funded from cash on hand or through borrowings under the credit facility . any repurchased units are canceled . business environment the information below is designed to give a broad overview of the oil and natural gas business environment as it affects us . commodity prices and demand oil and natural gas prices have been historically volatile based upon the dynamics of supply and demand . the eia forecasts that wti oil prices will average approximately $ 54.79 per bbl in 2019 and $ 58.00 per bbl in 2020 . during the year ended december 31 , 2018 , the wti oil spot price reached a high of $ 77.41 per bbl on june 27 , 2018 but decreased to a low of $ 44.48 per bbl on december 27 , 2018. the eia forecasts that the henry hub spot natural gas price will average $ 2.83 per mmbtu for 2019 and $ 2.80 per mmbtu for 2020 . during the year ended december 31 , 2018 , henry hub spot natural gas prices ranged from a high of $ 6.24 per mmbtu on january 3 , 2018 to a low of $ 2.49 per mmbtu on february 16 , 2018. to manage the variability in cash flows associated with the projected sale of our oil and natural gas production , we use various derivative instruments , which have recently consisted of fixed-price swap contracts and costless collar contracts . the following table reflects commodity prices at the end of each quarter presented : replace_table_token_17_th 1 source : eia rig count as we are not the operator of record on any producing properties , drilling on our acreage is dependent upon the exploration and production companies that lease our acreage . in addition to drilling plans that we seek from our operators , we also monitor rig counts in an effort to identify existing and future leasing and drilling activity on our acreage . 52 the following table shows the rig count at the end of each quarter presented : replace_table_token_18_th 1 source : baker hughes incorporated natural gas storage a substantial portion of our revenue is derived from sales of oil production attributable to our interests ; however , the majority of our production is natural gas . natural gas prices are significantly influenced by storage levels throughout the year . accordingly , we monitor the natural gas storage reports regularly in the evaluation of our business and its outlook . historically , natural gas supply and demand fluctuates on a seasonal basis . from april to october , when the weather is warmer and natural gas demand is lower , natural gas storage levels generally increase . from november to march , storage levels typically decline as utility companies draw natural gas from storage to meet increased heating demand due to colder weather . in order to maintain sufficient storage levels for increased seasonal demand , a portion of natural gas production during the summer months must be used for storage injection . the portion of production used for storage varies from year to year depending on the demand from the previous winter and the demand for electricity used for cooling during the summer months . the eia forecasts that inventories will conclude the withdrawal season , which is the end of march 2019 , at 1,417 bcf , or 14 % below the five-year average . the eia expects inventories to build slightly over the five-year average to a projected 3,761 bcf at the end of october 2019 ; in 2020 , inventories are expected to be about 5 % higher on average than 2019 levels . the following table shows natural gas storage volumes by region at the end of each quarter presented : replace_table_token_19_th 1 source : eia 53 how we evaluate our operations we use a variety of operational and financial measures to assess our performance . among the measures considered by management are the following : volumes of oil and natural gas produced ; commodity prices including the effect of derivative instruments ; and adjusted ebitda and distributable cash flow . volumes of oil and natural gas produced in order to track and assess the performance of our assets , we monitor and analyze our production volumes from the various basins and plays that constitute our extensive asset base . we also regularly compare projected volumes to actual reported volumes and investigate unexpected variances . commodity prices factors affecting the sales price of oil and natural gas the prices we receive for oil , natural gas , and ngls vary by geographical area . the relative prices of these products are determined by the factors affecting global and regional supply and demand dynamics , such as economic conditions , production levels , availability of transportation , weather cycles , and other factors . in addition , realized prices are influenced by product quality and proximity to consuming and refining markets . any differences between realized prices and nymex prices are referred to as differentials . all our production is derived from properties located in the united states . oil . story_separator_special_tag our mineral and royalty interest oil and condensate volumes accounted for 83 % and 77 % of total oil and condensate volumes for the years ended december 31 , 2017 and 2016 , respectively . our oil and condensate volumes decreased slightly in 2017 . natural gas and natural gas liquids sales . natural gas and ngl sales increased for the year ended december 31 , 2017 as compared to 2016 . during 2017 , production from new wells in haynesville/bossier and wilcox plays combined with higher natural gas and ngl prices drove the increase in natural gas and ngl sales . mineral and royalty interest production accounted for 51 % and 59 % of our natural gas and ngl volumes for the years ended december 31 , 2017 and 2016 , respectively . 59 gain ( loss ) on commodity derivative instruments . in 2017 , we recognized $ 5.1 million of net losses from oil commodity contracts , which included cash received of $ 10.9 million , compared to $ 16.0 million of recognized net losses in 2016 . in 2017 , we recognized $ 32.0 million of net gains from natural gas commodity contracts , which included cash received of $ 4.3 million , compared to $ 20.5 million of net losses in 2016 . lease bonus and other income . when we lease our mineral interests , we generally receive an upfront cash payment , or a lease bonus . lease bonus and delay rental revenue increased for the year ended december 31 , 2017 , as compared to 2016 . in 2017 , we successfully closed several significant lease transactions in the austin chalk , bakken/three forks , haynesville/bossier and canyon lime plays as well as the anadarko and permian basins , compared to the majority of 2016 activity which came from the wolfcamp , austin chalk , and marcellus plays . operating expenses lease operating expense . lease operating expense includes normally recurring expenses associated with our non-operated working interests necessary to produce hydrocarbons from our oil and natural gas wells , as well as certain nonrecurring expenses , such as well repairs . lease operating expense decreased for the year ended december 31 , 2017 as compared to 2016 , primarily due to fewer remedial projects initiated by our operators . production costs and ad valorem taxes . production taxes include statutory amounts deducted from our production revenues by various state taxing entities . depending on the regulations of the states where the production originates , these taxes may be based on a percentage of the realized value or a fixed amount per production unit . this category also includes the costs to process and transport our production to applicable sales points . ad valorem taxes are jurisdictional taxes levied on the value of oil and natural gas minerals and reserves . rates , methods of calculating property values , and timing of payments vary between taxing authorities . for the year ended december 31 , 2017 , production and ad valorem taxes increased over the year ended december 31 , 2016 , generally as a result of higher production volumes and commodity prices . exploration expense . exploration expense typically consists of dry-hole expenses , delay rentals , and geological and geophysical costs , including seismic costs , and is expensed as incurred under the successful efforts method of accounting . exploration expense for 2017 represents costs incurred to acquire 3-d seismic information , related to our mineral and royalty interests , from a third-party service provider . depreciation , depletion , and amortization . depletion is the amount of cost basis of oil and natural gas properties attributable to the volume of hydrocarbons extracted during such period , calculated on a units-of-production basis . estimates of proved developed producing reserves are a major component of the calculation of depletion . we adjust our depletion rates semi-annually based upon the mid-year and year-end reserve reports , except when circumstances indicate that there has been a significant change in reserves or costs . depreciation , depletion , and amortization expense increased for the year ended december 31 , 2017 as compared to 2016 , primarily due to higher production volumes partially offset by lower depletion rates . impairment of oil and natural gas properties . individual categories of oil and natural gas properties are assessed periodically to determine if the net book value for these properties has been impaired . management periodically conducts an in-depth evaluation of the cost of property acquisitions , successful exploratory wells , development activities , unproved leasehold , and mineral interests to identify impairments . we did not incur any impairment in 2017 , while impairments for 2016 were $ 6.8 million . general and administrative . general and administrative expenses are costs not directly associated with the production of oil and natural gas and include the cost of employee salaries and related benefits , office expenses , and fees for professional services . for the year ended december 31 , 2017 , general and administrative expenses increased compared to 2016 . in 2017 , costs attributable to our long-term incentive plans were higher due to the achievement of certain performance targets ; we also incurred higher broker fees associated with increased acquisition activities . interest expense . interest expense increased due to higher average outstanding borrowings and higher interest rates under our credit facility , which were predominantly driven by increased acquisition of oil and natural gas properties in 2017 as compared to 2016 . 60 story_separator_special_tag style= `` line-height:120 % ; padding-top:16px ; text-indent:24px ; font-size:10pt ; `` > financing activities . cash flows provided by financing activities increased in 2017 as compared to 2016. the increase was primarily due to proceeds from the issuance of common units under our atm program and proceeds from the issuance of the series b cumulative convertible preferred units . decreased distributions to holders of the series a redeemable preferred

the acquisition and development of properties also entails various risks , including the risk that our investments may not perform as expected . for example , acquired existing and acquired and developed new properties may not sustain and or achieve anticipated occupancy and rental rate levels . with respect to acquired and developed new properties , we may not be able to complete construction on schedule or within budget , resulting in increased debt service expense and construction costs and delays in leasing the properties . also , we face significant competition for attractive acquisition and development opportunities from other well-capitalized real estate investors , including publicly-traded reits and private investors . further , as discussed below , we may not be able to finance the acquisition and development opportunities we identify . if we were unable to acquire and develop sufficient additional properties on favorable terms , or if such investments did not perform as expected , our revenue growth would be limited and our financial condition , results of operations , cash flow and ability to make distributions to our stockholders and unitholders , the market price of the company 's common stock and the market value of the units would be adversely affected . 27 we also generate income from the sale of our properties ( including existing buildings , buildings which we have developed or re-developed on a merchant basis and land ) . the gain or loss on , and fees from , the sale of such properties are included in our income and can be a significant source of funds , in addition to revenues generated from rental income and tenant recoveries . proceeds from sales are used to repay outstanding debt and , market conditions permitting , may be used to fund the acquisition of existing industrial properties , and the acquisition and development of new industrial properties . the sale of properties is impacted , variously , by property specific , market specific , general economic and other conditions , many of which are beyond our control . the sale of properties also entails various risks , including competition from other sellers and the availability of attractive financing for potential buyers of our properties . further , our ability to sell properties is limited by safe harbor rules applying to reits under the code which relate to the number of properties that may be disposed of in a year , their tax bases and the cost of improvements made to the properties , along with other tests which enable a reit to avoid punitive taxation on the sale of assets . if we are unable to sell properties on favorable terms , our income growth would be limited and our financial condition , results of operations , cash flow and ability to make distributions to our stockholders and unitholders , the market price of the company 's common stock and the market value of the units could be adversely affected . we utilize a portion of the net sales proceeds from property sales , borrowings under our unsecured credit facility and proceeds from the issuance , when and as warranted , of additional debt and equity securities to refinance debt and finance future acquisitions and developments . access to external capital on favorable terms plays a key role in our financial condition and results of operations , as it impacts our cost of capital and our ability and cost to refinance existing indebtedness as it matures and our ability to fund acquisitions and developments . our ability to access external capital on favorable terms is dependent on various factors , including general market conditions , interest rates , credit ratings on our debt , the market 's perception of our growth potential , our current and potential future earnings and cash distributions and the market price of the company 's common stock . if we were unable to access external capital on favorable terms , our financial condition , results of operations , cash flow and ability to make distributions to our stockholders and unitholders , the market price of the company 's common stock and the market value of the units could be adversely affected . summary of significant transactions during 2018 during 2018 , we completed the following significant transactions and financing activities : we acquired 10 industrial properties comprised of approximately 1.0 million square feet of gla located in our seattle , orlando , southern california , new jersey and houston markets for an aggregate purchase price of $ 124.9 million . we acquired 271.7 acres of land for development located in our dallas , denver , seattle , southern california , new jersey and miami markets for an aggregate purchase price of $ 42.6 million . we developed , placed in-service and leased at 100 % , 8 industrial properties comprising approximately 3.5 million square feet of gla located in southern california , chicago and phoenix at an estimated total cost of $ 226.6 million . we sold 53 industrial properties comprised of approximately 2.6 million square feet of gla and several land parcels for total gross sales proceeds of $ 192.0 million . we entered into the joint venture with a third party and acquired , for a purchase price of $ 49.0 million , approximately 532 net developable acres of land located in phoenix for the purpose of developing , selling , leasing and operating industrial properties . we issued $ 150.0 million of ten-year private placement notes at a rate of 3.86 % and $ 150.0 million of twelve-year private placement notes at a rate of 3.96 % . we issued 4,800,000 shares of the company 's common stock in an underwritten public offering . proceeds to the company , net of the underwriter 's discount , were $ 145.6 million . we paid off $ 157.8 million in mortgage loans payable . story_separator_special_tag as a result of this adoption , our acquisitions of real estate during the year ended december 31 , 2017 did not meet the definition of a business combination and thus the closing costs , which historically have been expensed , were capitalized as part of the basis of the real estate assets acquired . for the year ended december 31 , 2016 , we recognized $ 0.5 million of expenses related to costs associated with acquiring industrial properties from third parties . 33 replace_table_token_18_th depreciation and other amortization from same store properties decreased by $ 1.4 million due to accelerated depreciation and amortization taken during the year ended december 31 , 2016 attributable to certain tenants who terminated their leases early . depreciation and other amortization from acquired properties increased $ 3.5 million due to properties acquired subsequent to december 31 , 2015. depreciation and other amortization from sold properties decreased $ 5.0 million due to properties sold subsequent to december 31 , 2015. depreciation and other amortization from ( re ) developments increased $ 1.8 million primarily due to an increase in depreciation and amortization related to completed developments offset by accelerated depreciation on one property in rancho dominguez , ca which was razed during the year ended december 31 , 2016. depreciation from corporate furniture , fixtures and equipment and other increased $ 0.2 million due to higher depreciation related to incurred leasing costs at three properties acquired in the year ended december 31 , 2015 that were placed in service during the year ended december 31 , 2016. for the year ended december 31 , 2017 , we recognized $ 131.3 million of gain on sale of real estate related to the sale of 60 industrial properties comprising approximately 4.6 million square feet of gla and one land parcel . for the year ended december 31 , 2016 , we recognized $ 68.2 million of gain on sale of real estate related to the sale of 63 industrial properties comprising approximately 3.9 million square feet of gla and several land parcels . interest expense decreased $ 2.2 million , or 3.8 % , primarily due to a decrease in the weighted average interest rate for the year ended december 31 , 2017 ( 4.42 % ) as compared to the year ended december 31 , 2016 ( 4.50 % ) , a decrease in the weighted average debt balance outstanding for the year ended december 31 , 2017 ( $ 1,392.2 million ) as compared to the year ended december 31 , 2016 ( $ 1,400.5 million ) and an increase in capitalized interest of $ 0.8 million for the year ended december 31 , 2017 as compared to the year ended december 31 , 2016 due to an increase in development activities . amortization of debt issuance costs remained relatively unchanged . during the year ended december 31 , 2017 , we recorded $ 1.9 million of settlement gain on derivative instruments . in september 2017 , we entered into the 2017 treasury locks in order to fix the interest rate on an anticipated unsecured debt offering . the 2017 treasury locks were settled during the fourth quarter of 2017. for the year ended december 31 , 2017 , we recognized a loss from retirement of debt of $ 1.8 million due to prepayment penalties related to the early payoff of certain mortgage loans and the write-off of unamortized debt issuance costs on these mortgage loans as well as the write-off of unamortized debt issuance costs related to an exiting lender on our revolving line of credit and one of our unsecured term loans . the income tax provision remained relatively unchanged . 34 critical accounting policies we believe the following critical accounting policies relate to the more significant judgments and estimates used in the preparation of our consolidated financial statements . refer to note 2 to the consolidated financial statements for further detail on our critical accounting policies , which are as follows : acquisitions of real estate assets : we allocate the purchase price of acquired real estate , including real estate acquired as a portfolio , to the fair value of tangible assets ( land , building , and improvements ) by valuing the real estate as if it were vacant . the determination of fair value includes estimates such as discount rates , terminal capitalization rates and market rent assumptions . above-market and below-market lease and below market ground lease obligation values are recorded based on the present value ( using a discount rate which reflects the risks associated with the leases acquired ) of the difference between ( i ) the contractual amounts to be paid pursuant to each in-place lease and ( ii ) our estimate of fair market lease rents for each corresponding in-place lease . the purchase price is further allocated to leasing commissions , in-place lease and tenant relationship values based on our evaluation of the specific characteristics of each tenant 's lease and our overall relationship with the respective tenant . the value allocated to tenant relationships is amortized to depreciation and amortization expense over the expected term of the relationship , which includes an estimate of the probability of lease renewal and its estimated term . impairment of real estate assets : we review our real estate assets for possible impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable . the judgments regarding the existence of indicators of impairment are based on the operating performance , market conditions , as well as our ability to hold and our intent with regard to each property . the judgments regarding whether the carrying amounts of these assets may not be recoverable are based on estimates of future undiscounted cash flows from properties which include estimates of future operating performance and market conditions . if any real estate investment is considered impaired , a loss is recorded to reduce the

cash flow activity the following table summarizes our cash flow activity for the company for the years ended december 31 , 2018 and 2017 : replace_table_token_19_th the following table summarizes our cash flow activity for the operating partnership for the years ended december 31 , 2018 and 2017 : replace_table_token_20_th changes in cash flow for the year ended december 31 , 2018 , compared to the prior year are described as follows : operating activities : cash provided by operating activities increased $ 17.9 million for the company ( increased by $ 17.6 million for the operating partnership ) , primarily due to the following : decrease in interest expense of $ 6.4 million ; increase in cash noi from same store properties , acquired properties , and recently developed properties offset by decreases in cash noi due to building disposals for a net total increase of approximately $ 6.8 million ; increase in accounts payable , accrued expenses and other liabilities as well as a decrease in other assets due to timing of cash payments and cash receipts . investing activities : cash used in investing activities increased $ 140.9 million , primarily due to the following : increase in cash used of $ 78.5 million related to non-acquisition additions and improvements to real estate primarily due to an increase in development expenditures in 2018 ; increase in cash used of $ 23.4 million related to our net contributions to the joint venture in 2018 ; decrease in cash received of $ 43.3 million related to the disposition of real estate in 2018 ; decrease in cash received of $ 9.2 million related to insurance proceeds on casualty losses ; offset by : decrease in cash used to acquire real estate in 2018 of $ 17.5 million .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```cash flow activity the following table summarizes our cash flow activity for the company for the years ended december 31 , 2018 and 2017 : replace_table_token_19_th the following table summarizes our cash flow activity for the operating partnership for the years ended december 31 , 2018 and 2017 : replace_table_token_20_th changes in cash flow for the year ended december 31 , 2018 , compared to the prior year are described as follows : operating activities : cash provided by operating activities increased $ 17.9 million for the company ( increased by $ 17.6 million for the operating partnership ) , primarily due to the following : decrease in interest expense of $ 6.4 million ; increase in cash noi from same store properties , acquired properties , and recently developed properties offset by decreases in cash noi due to building disposals for a net total increase of approximately $ 6.8 million ; increase in accounts payable , accrued expenses and other liabilities as well as a decrease in other assets due to timing of cash payments and cash receipts . investing activities : cash used in investing activities increased $ 140.9 million , primarily due to the following : increase in cash used of $ 78.5 million related to non-acquisition additions and improvements to real estate primarily due to an increase in development expenditures in 2018 ; increase in cash used of $ 23.4 million related to our net contributions to the joint venture in 2018 ; decrease in cash received of $ 43.3 million related to the disposition of real estate in 2018 ; decrease in cash received of $ 9.2 million related to insurance proceeds on casualty losses ; offset by : decrease in cash used to acquire real estate in 2018 of $ 17.5 million . ``` Suspicious Activity Report : the acquisition and development of properties also entails various risks , including the risk that our investments may not perform as expected . for example , acquired existing and acquired and developed new properties may not sustain and or achieve anticipated occupancy and rental rate levels . with respect to acquired and developed new properties , we may not be able to complete construction on schedule or within budget , resulting in increased debt service expense and construction costs and delays in leasing the properties . also , we face significant competition for attractive acquisition and development opportunities from other well-capitalized real estate investors , including publicly-traded reits and private investors . further , as discussed below , we may not be able to finance the acquisition and development opportunities we identify . if we were unable to acquire and develop sufficient additional properties on favorable terms , or if such investments did not perform as expected , our revenue growth would be limited and our financial condition , results of operations , cash flow and ability to make distributions to our stockholders and unitholders , the market price of the company 's common stock and the market value of the units would be adversely affected . 27 we also generate income from the sale of our properties ( including existing buildings , buildings which we have developed or re-developed on a merchant basis and land ) . the gain or loss on , and fees from , the sale of such properties are included in our income and can be a significant source of funds , in addition to revenues generated from rental income and tenant recoveries . proceeds from sales are used to repay outstanding debt and , market conditions permitting , may be used to fund the acquisition of existing industrial properties , and the acquisition and development of new industrial properties . the sale of properties is impacted , variously , by property specific , market specific , general economic and other conditions , many of which are beyond our control . the sale of properties also entails various risks , including competition from other sellers and the availability of attractive financing for potential buyers of our properties . further , our ability to sell properties is limited by safe harbor rules applying to reits under the code which relate to the number of properties that may be disposed of in a year , their tax bases and the cost of improvements made to the properties , along with other tests which enable a reit to avoid punitive taxation on the sale of assets . if we are unable to sell properties on favorable terms , our income growth would be limited and our financial condition , results of operations , cash flow and ability to make distributions to our stockholders and unitholders , the market price of the company 's common stock and the market value of the units could be adversely affected . we utilize a portion of the net sales proceeds from property sales , borrowings under our unsecured credit facility and proceeds from the issuance , when and as warranted , of additional debt and equity securities to refinance debt and finance future acquisitions and developments . access to external capital on favorable terms plays a key role in our financial condition and results of operations , as it impacts our cost of capital and our ability and cost to refinance existing indebtedness as it matures and our ability to fund acquisitions and developments . our ability to access external capital on favorable terms is dependent on various factors , including general market conditions , interest rates , credit ratings on our debt , the market 's perception of our growth potential , our current and potential future earnings and cash distributions and the market price of the company 's common stock . if we were unable to access external capital on favorable terms , our financial condition , results of operations , cash flow and ability to make distributions to our stockholders and unitholders , the market price of the company 's common stock and the market value of the units could be adversely affected . summary of significant transactions during 2018 during 2018 , we completed the following significant transactions and financing activities : we acquired 10 industrial properties comprised of approximately 1.0 million square feet of gla located in our seattle , orlando , southern california , new jersey and houston markets for an aggregate purchase price of $ 124.9 million . we acquired 271.7 acres of land for development located in our dallas , denver , seattle , southern california , new jersey and miami markets for an aggregate purchase price of $ 42.6 million . we developed , placed in-service and leased at 100 % , 8 industrial properties comprising approximately 3.5 million square feet of gla located in southern california , chicago and phoenix at an estimated total cost of $ 226.6 million . we sold 53 industrial properties comprised of approximately 2.6 million square feet of gla and several land parcels for total gross sales proceeds of $ 192.0 million . we entered into the joint venture with a third party and acquired , for a purchase price of $ 49.0 million , approximately 532 net developable acres of land located in phoenix for the purpose of developing , selling , leasing and operating industrial properties . we issued $ 150.0 million of ten-year private placement notes at a rate of 3.86 % and $ 150.0 million of twelve-year private placement notes at a rate of 3.96 % . we issued 4,800,000 shares of the company 's common stock in an underwritten public offering . proceeds to the company , net of the underwriter 's discount , were $ 145.6 million . we paid off $ 157.8 million in mortgage loans payable . story_separator_special_tag as a result of this adoption , our acquisitions of real estate during the year ended december 31 , 2017 did not meet the definition of a business combination and thus the closing costs , which historically have been expensed , were capitalized as part of the basis of the real estate assets acquired . for the year ended december 31 , 2016 , we recognized $ 0.5 million of expenses related to costs associated with acquiring industrial properties from third parties . 33 replace_table_token_18_th depreciation and other amortization from same store properties decreased by $ 1.4 million due to accelerated depreciation and amortization taken during the year ended december 31 , 2016 attributable to certain tenants who terminated their leases early . depreciation and other amortization from acquired properties increased $ 3.5 million due to properties acquired subsequent to december 31 , 2015. depreciation and other amortization from sold properties decreased $ 5.0 million due to properties sold subsequent to december 31 , 2015. depreciation and other amortization from ( re ) developments increased $ 1.8 million primarily due to an increase in depreciation and amortization related to completed developments offset by accelerated depreciation on one property in rancho dominguez , ca which was razed during the year ended december 31 , 2016. depreciation from corporate furniture , fixtures and equipment and other increased $ 0.2 million due to higher depreciation related to incurred leasing costs at three properties acquired in the year ended december 31 , 2015 that were placed in service during the year ended december 31 , 2016. for the year ended december 31 , 2017 , we recognized $ 131.3 million of gain on sale of real estate related to the sale of 60 industrial properties comprising approximately 4.6 million square feet of gla and one land parcel . for the year ended december 31 , 2016 , we recognized $ 68.2 million of gain on sale of real estate related to the sale of 63 industrial properties comprising approximately 3.9 million square feet of gla and several land parcels . interest expense decreased $ 2.2 million , or 3.8 % , primarily due to a decrease in the weighted average interest rate for the year ended december 31 , 2017 ( 4.42 % ) as compared to the year ended december 31 , 2016 ( 4.50 % ) , a decrease in the weighted average debt balance outstanding for the year ended december 31 , 2017 ( $ 1,392.2 million ) as compared to the year ended december 31 , 2016 ( $ 1,400.5 million ) and an increase in capitalized interest of $ 0.8 million for the year ended december 31 , 2017 as compared to the year ended december 31 , 2016 due to an increase in development activities . amortization of debt issuance costs remained relatively unchanged . during the year ended december 31 , 2017 , we recorded $ 1.9 million of settlement gain on derivative instruments . in september 2017 , we entered into the 2017 treasury locks in order to fix the interest rate on an anticipated unsecured debt offering . the 2017 treasury locks were settled during the fourth quarter of 2017. for the year ended december 31 , 2017 , we recognized a loss from retirement of debt of $ 1.8 million due to prepayment penalties related to the early payoff of certain mortgage loans and the write-off of unamortized debt issuance costs on these mortgage loans as well as the write-off of unamortized debt issuance costs related to an exiting lender on our revolving line of credit and one of our unsecured term loans . the income tax provision remained relatively unchanged . 34 critical accounting policies we believe the following critical accounting policies relate to the more significant judgments and estimates used in the preparation of our consolidated financial statements . refer to note 2 to the consolidated financial statements for further detail on our critical accounting policies , which are as follows : acquisitions of real estate assets : we allocate the purchase price of acquired real estate , including real estate acquired as a portfolio , to the fair value of tangible assets ( land , building , and improvements ) by valuing the real estate as if it were vacant . the determination of fair value includes estimates such as discount rates , terminal capitalization rates and market rent assumptions . above-market and below-market lease and below market ground lease obligation values are recorded based on the present value ( using a discount rate which reflects the risks associated with the leases acquired ) of the difference between ( i ) the contractual amounts to be paid pursuant to each in-place lease and ( ii ) our estimate of fair market lease rents for each corresponding in-place lease . the purchase price is further allocated to leasing commissions , in-place lease and tenant relationship values based on our evaluation of the specific characteristics of each tenant 's lease and our overall relationship with the respective tenant . the value allocated to tenant relationships is amortized to depreciation and amortization expense over the expected term of the relationship , which includes an estimate of the probability of lease renewal and its estimated term . impairment of real estate assets : we review our real estate assets for possible impairment whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable . the judgments regarding the existence of indicators of impairment are based on the operating performance , market conditions , as well as our ability to hold and our intent with regard to each property . the judgments regarding whether the carrying amounts of these assets may not be recoverable are based on estimates of future undiscounted cash flows from properties which include estimates of future operating performance and market conditions . if any real estate investment is considered impaired , a loss is recorded to reduce the

the secondary endpoints of the 312 study included evaluating the proportion of subjects achieving culture conversion ( defined in the same way as the convert study ) by month 6 and the proportion of subjects achieving culture conversion by month 12 , which was the end of treatment . the 312 study has completed . as a condition of accelerated approval , we must conduct a post-approval confirmatory clinical trial . the required confirmatory trial , which is currently under discussion with the fda , is proposed to be a randomized , double-blind , placebo-controlled clinical trial to assess and describe the clinical benefit of arikayce in patients with mac lung disease . the trial will evaluate the effect of arikayce on a clinically meaningful endpoint , as compared to an appropriate control , in the intended patient population of patients with mac lung disease . pursuant to the timetable agreed upon with the fda , the study protocol is expected to be finalized during the first half of 2019 , with trial results to be reported by 2024. continued approval of arikayce will be contingent upon verification and description of clinical benefit in this study . pipeline progress ins1007 54 ins1007 is a small molecule , oral , reversible inhibitor of dpp1 , which we licensed from astrazeneca in october 2016. dpp1 is an enzyme responsible for activating neutrophil serine proteases in neutrophils when they are formed in the bone marrow . neutrophils are the most common type of white blood cell and play an essential role in pathogen destruction and inflammatory mediation . neutrophils contain the neutrophil serine proteases ( including neutrophil elastase , proteinase 3 , and cathepsin g ) that have been implicated in a variety of inflammatory diseases . in chronic inflammatory lung diseases , neutrophils accumulate in the airways and release active neutrophil serine proteases in excess that cause lung destruction and inflammation . ins1007 may decrease the damaging effects of inflammatory diseases , such as non-cf bronchiectasis , by inhibiting dpp1 and its activation of neutrophil serine proteases . non-cf bronchiectasis is a progressive pulmonary disorder in which the bronchi become permanently dilated due to chronic inflammation and infection . currently , there is no cure , and we are not aware of any fda-approved therapies specifically indicated for non-cf bronchiectasis . the willow study the willow study is a global phase 2 , randomized , double-blind , placebo-controlled , parallel group , multi-center clinical study to assess the efficacy , safety and tolerability , and pharmacokinetics of ins1007 administered once daily for 24 weeks in subjects with non-cf bronchiectasis . we commenced enrollment in the willow study in december 2017 and we expect to complete enrollment in mid-2019 . in addition , we are exploring the potential of ins1007 in various neutrophil-driven inflammatory conditions . ins1009 ins1009 is an investigational inhaled treprostinil prodrug formulation that has the potential to address certain of the current limitations of existing prostanoid therapies . we believe that ins1009 prolongs duration of effect and may provide pah patients with greater consistency in pulmonary arterial pressure reduction over time . current inhaled prostanoid therapies must be dosed four to nine times per day for the treatment of pah . reducing dose frequency has the potential to ease patient burden and improve compliance . additionally , we believe that ins1009 may be associated with fewer side effects , including elevated heart rate , low blood pressure , and severity and or frequency of cough , associated with high initial drug levels and local upper airway exposure when using current inhaled prostanoid therapies . we believe ins1009 may offer a differentiated product profile for rare pulmonary disorders , including pah , and we are currently evaluating our options to advance its development , including exploring its use as an inhaled dry powder formulation . other development activities our earlier-stage pipeline includes preclinical compounds that we are evaluating in multiple rare diseases of unmet medical need , including gram positive pulmonary infections in cf , ntm lung disease and refractory localized infections involving biofilm . to complement our internal research and development , we actively evaluate in-licensing and acquisition opportunities for a broad range of rare diseases . key components of our results of operations revenues product revenues consist primarily of net sales of arikayce in the us . in october 2018 , we began shipping arikayce to our customers in the us , which include specialty pharmacies and specialty distributors . we recognize revenue for product received by our customers net of allowances for customer credits , including estimated rebates , chargebacks , prompt pay discounts , returns , service fees , and government rebates , such as medicaid rebates and medicare part d coverage gap reimbursements in the us . we also began recognizing revenue from sales to the french national agency for medicines and health products safety ( ansm ) , which granted arikayce a temporary authorizations for use ( autorisation temporaire d'utilisation or atu ) . cost of product revenues ( excluding amortization of intangible assets ) cost of product revenues ( excluding amortization of intangible assets ) consist primarily of direct and indirect costs related to the manufacturing of arikayce sold , including third-party manufacturing costs , packaging services , freight , allocation of overhead costs , and inventory adjustment charges , in addition to royalty expenses due to pari . we began capitalizing inventory upon fda approval of arikayce . research and development ( r & d ) expenses r & d expenses consist of salaries , benefits and other related costs , including stock-based compensation , for personnel serving in our research and development functions , including medical affairs . expenses also include other internal operating 55 expenses , the cost of manufacturing our drug candidate ( s ) for clinical study , the cost of conducting clinical studies , and the cost of conducting preclinical and research activities . story_separator_special_tag in 2019 , we plan to continue to support the commercial launch of arikayce in the us , to fund further clinical development of arikayce and ins1007 , and support efforts to obtain regulatory approvals for arikayce outside the us . our cash requirements in 2019 will be impacted by a number of factors , the most significant of which are expenses related to the commercialization efforts for arikayce , and to a lesser extent , expenses related to ins1007 and future arikayce clinical trials . cash flows as of december 31 , 2018 , we had cash and cash equivalents of $ 495.1 million , as compared with $ 381.2 million as of december 31 , 2017 . the $ 113.9 million increase was due primarily to the net cash proceeds from our issuance of convertible notes in january 2018 , partially offset by cash used in operating activities and , to a lesser extent , cash used in investing activities . our working capital was $ 439.2 million as of december 31 , 2018 as compared with $ 344.8 million as of december 31 , 2017 . story_separator_special_tag collaborated with therapure to construct a production area for the manufacture of arikayce in therapure 's existing manufacturing facility in canada . the agreement has an initial term of five years from the first date on which therapure delivers arikayce to us after we obtain permits related to the manufacture of arikayce , and will renew automatically for successive periods of two years each , unless terminated by either party by providing the required two years ' prior written notice to the other party . under the agreement , we are obligated to pay certain minimum amounts for the batches of arikayce produced each calendar year . in september 2015 , we entered into a commercial fill/finish services agreement ( the fill/finish agreement ) with althea , for althea to produce , on a non-exclusive basis , arikayce in finished dosage form at a 50 kg scale . under the fill/finish agreement , we are obligated to pay a minimum of $ 2.7 million for the batches of arikayce produced each calendar year during the term of the fill/finish agreement . the fill/finish agreement became effective as of january 1 , 2015 , and following an extension in 2018 , the agreement remains in effect through december 31 , 2021. the fill/finish agreement may be extended for additional two -year periods upon mutual written agreement of the company and althea at least one year prior to the expiration of its then-current term . we currently have a licensing agreement with pari for the use of the optimized lamira nebulizer system for delivery of arikayce in treating patients with ntm lung infections , cf and bronchiectasis . under the licensing agreement , we have rights under several us and foreign issued patents , and patent applications involving improvements to the optimized lamira nebulizer system , to exploit such system with arikayce for the treatment of such indications , but we can not manufacture such nebulizers except as permitted under our commercialization agreement with pari . under the licensing 61 agreement , we paid pari an upfront license fee and milestone payments . upon fda acceptance of our new drug application and the subsequent fda approval of arikayce , we paid pari additional milestone payments of 1.0 million and 1.5 million , respectively . in addition , pari is entitled to receive a future milestone payment of 0.5 million in cash based on achievement of first receipt of marketing approval in a major eu country for arikayce and the device . in october 2017 , we exercised an option to buy-down the royalties payable to pari , which was included within selling , general and administrative expenses in the fourth quarter of 2017. pari is now entitled to receive royalty payments in the mid-single digits on the annual global net sales of arikayce , pursuant to the licensing agreement , subject to certain specified annual minimum royalties . in july 2014 , we entered into a commercialization agreement with pari for the manufacture and supply of the lamira nebulizer systems and related accessories ( the device ) as optimized for use with arikayce . under the commercialization agreement , pari manufactures the device except in the case of certain defined supply failures , when the company will have the right to make the device and have it made by third parties ( but not certain third parties deemed under the commercialization agreement to compete with pari ) . the commercialization agreement has an initial term of 15 years that began in october 2018 ( the initial term ) . the term of the commercialization agreement may be extended by us for an additional five years by providing written notice to pari at least one year prior to the expiration of the initial term . in october 2017 , we entered into certain agreements with patheon related to the increase of our long-term production capacity for arikayce . the agreements provide for patheon to manufacture and supply arikayce for our anticipated commercial needs . under these agreements , we are required to deliver to patheon the required raw materials , including active pharmaceutical ingredients , and certain fixed assets needed to manufacture arikayce . patheon 's supply obligations will commence once certain technology transfer and construction services are completed . our manufacturing and supply agreement with patheon will remain in effect for a fixed initial term , after which it will continue for successive renewal terms unless either we or patheon have given written notice of termination . the technology transfer agreement will expire when the parties agree that the technology transfer services have been completed . the agreements may also be terminated under certain other circumstances , including by either party due to a material uncured breach of the other party or the other party 's insolvency . these early termination clauses

net cash used in operating activities was $ 258.0 million and $ 159.6 million for the years ended december 31 , 2018 and 2017 , respectively . the net cash used in operating activities during the years ended december 31 , 2018 and 2017 was primarily for the pre-commercialization efforts and clinical activities related to arikayce , as well as general and administrative expenses . in addition , net cash used in operating activities during the year ended december 31 , 2018 and 2017 included commercialization efforts and clinical trial expenses related to ins1007 . net cash used in investing activities was $ 14.8 million and $ 3.0 million for the years ended december 31 , 2018 and 2017 , respectively . the net cash used in investing activities during 2018 was primarily related to the investment in our long-term production capacity build-out at patheon . the net cash used in investing activities during 2017 was primarily related to the investment in our long-term production capacity build-out at patheon and for the build out of our lab facility in bridgewater , 60 new jersey . we expect our net cash used in investing activities will increase in 2019 as compared to 2018 as a result of our continuing investment in the build-out of patheon and our new headquarters facility . net cash provided by financing activities was $ 386.7 million and $ 381.1 million for the years ended december 31 , 2018 and 2017 , respectively .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```net cash used in operating activities was $ 258.0 million and $ 159.6 million for the years ended december 31 , 2018 and 2017 , respectively . the net cash used in operating activities during the years ended december 31 , 2018 and 2017 was primarily for the pre-commercialization efforts and clinical activities related to arikayce , as well as general and administrative expenses . in addition , net cash used in operating activities during the year ended december 31 , 2018 and 2017 included commercialization efforts and clinical trial expenses related to ins1007 . net cash used in investing activities was $ 14.8 million and $ 3.0 million for the years ended december 31 , 2018 and 2017 , respectively . the net cash used in investing activities during 2018 was primarily related to the investment in our long-term production capacity build-out at patheon . the net cash used in investing activities during 2017 was primarily related to the investment in our long-term production capacity build-out at patheon and for the build out of our lab facility in bridgewater , 60 new jersey . we expect our net cash used in investing activities will increase in 2019 as compared to 2018 as a result of our continuing investment in the build-out of patheon and our new headquarters facility . net cash provided by financing activities was $ 386.7 million and $ 381.1 million for the years ended december 31 , 2018 and 2017 , respectively . ``` Suspicious Activity Report : the secondary endpoints of the 312 study included evaluating the proportion of subjects achieving culture conversion ( defined in the same way as the convert study ) by month 6 and the proportion of subjects achieving culture conversion by month 12 , which was the end of treatment . the 312 study has completed . as a condition of accelerated approval , we must conduct a post-approval confirmatory clinical trial . the required confirmatory trial , which is currently under discussion with the fda , is proposed to be a randomized , double-blind , placebo-controlled clinical trial to assess and describe the clinical benefit of arikayce in patients with mac lung disease . the trial will evaluate the effect of arikayce on a clinically meaningful endpoint , as compared to an appropriate control , in the intended patient population of patients with mac lung disease . pursuant to the timetable agreed upon with the fda , the study protocol is expected to be finalized during the first half of 2019 , with trial results to be reported by 2024. continued approval of arikayce will be contingent upon verification and description of clinical benefit in this study . pipeline progress ins1007 54 ins1007 is a small molecule , oral , reversible inhibitor of dpp1 , which we licensed from astrazeneca in october 2016. dpp1 is an enzyme responsible for activating neutrophil serine proteases in neutrophils when they are formed in the bone marrow . neutrophils are the most common type of white blood cell and play an essential role in pathogen destruction and inflammatory mediation . neutrophils contain the neutrophil serine proteases ( including neutrophil elastase , proteinase 3 , and cathepsin g ) that have been implicated in a variety of inflammatory diseases . in chronic inflammatory lung diseases , neutrophils accumulate in the airways and release active neutrophil serine proteases in excess that cause lung destruction and inflammation . ins1007 may decrease the damaging effects of inflammatory diseases , such as non-cf bronchiectasis , by inhibiting dpp1 and its activation of neutrophil serine proteases . non-cf bronchiectasis is a progressive pulmonary disorder in which the bronchi become permanently dilated due to chronic inflammation and infection . currently , there is no cure , and we are not aware of any fda-approved therapies specifically indicated for non-cf bronchiectasis . the willow study the willow study is a global phase 2 , randomized , double-blind , placebo-controlled , parallel group , multi-center clinical study to assess the efficacy , safety and tolerability , and pharmacokinetics of ins1007 administered once daily for 24 weeks in subjects with non-cf bronchiectasis . we commenced enrollment in the willow study in december 2017 and we expect to complete enrollment in mid-2019 . in addition , we are exploring the potential of ins1007 in various neutrophil-driven inflammatory conditions . ins1009 ins1009 is an investigational inhaled treprostinil prodrug formulation that has the potential to address certain of the current limitations of existing prostanoid therapies . we believe that ins1009 prolongs duration of effect and may provide pah patients with greater consistency in pulmonary arterial pressure reduction over time . current inhaled prostanoid therapies must be dosed four to nine times per day for the treatment of pah . reducing dose frequency has the potential to ease patient burden and improve compliance . additionally , we believe that ins1009 may be associated with fewer side effects , including elevated heart rate , low blood pressure , and severity and or frequency of cough , associated with high initial drug levels and local upper airway exposure when using current inhaled prostanoid therapies . we believe ins1009 may offer a differentiated product profile for rare pulmonary disorders , including pah , and we are currently evaluating our options to advance its development , including exploring its use as an inhaled dry powder formulation . other development activities our earlier-stage pipeline includes preclinical compounds that we are evaluating in multiple rare diseases of unmet medical need , including gram positive pulmonary infections in cf , ntm lung disease and refractory localized infections involving biofilm . to complement our internal research and development , we actively evaluate in-licensing and acquisition opportunities for a broad range of rare diseases . key components of our results of operations revenues product revenues consist primarily of net sales of arikayce in the us . in october 2018 , we began shipping arikayce to our customers in the us , which include specialty pharmacies and specialty distributors . we recognize revenue for product received by our customers net of allowances for customer credits , including estimated rebates , chargebacks , prompt pay discounts , returns , service fees , and government rebates , such as medicaid rebates and medicare part d coverage gap reimbursements in the us . we also began recognizing revenue from sales to the french national agency for medicines and health products safety ( ansm ) , which granted arikayce a temporary authorizations for use ( autorisation temporaire d'utilisation or atu ) . cost of product revenues ( excluding amortization of intangible assets ) cost of product revenues ( excluding amortization of intangible assets ) consist primarily of direct and indirect costs related to the manufacturing of arikayce sold , including third-party manufacturing costs , packaging services , freight , allocation of overhead costs , and inventory adjustment charges , in addition to royalty expenses due to pari . we began capitalizing inventory upon fda approval of arikayce . research and development ( r & d ) expenses r & d expenses consist of salaries , benefits and other related costs , including stock-based compensation , for personnel serving in our research and development functions , including medical affairs . expenses also include other internal operating 55 expenses , the cost of manufacturing our drug candidate ( s ) for clinical study , the cost of conducting clinical studies , and the cost of conducting preclinical and research activities . story_separator_special_tag in 2019 , we plan to continue to support the commercial launch of arikayce in the us , to fund further clinical development of arikayce and ins1007 , and support efforts to obtain regulatory approvals for arikayce outside the us . our cash requirements in 2019 will be impacted by a number of factors , the most significant of which are expenses related to the commercialization efforts for arikayce , and to a lesser extent , expenses related to ins1007 and future arikayce clinical trials . cash flows as of december 31 , 2018 , we had cash and cash equivalents of $ 495.1 million , as compared with $ 381.2 million as of december 31 , 2017 . the $ 113.9 million increase was due primarily to the net cash proceeds from our issuance of convertible notes in january 2018 , partially offset by cash used in operating activities and , to a lesser extent , cash used in investing activities . our working capital was $ 439.2 million as of december 31 , 2018 as compared with $ 344.8 million as of december 31 , 2017 . story_separator_special_tag collaborated with therapure to construct a production area for the manufacture of arikayce in therapure 's existing manufacturing facility in canada . the agreement has an initial term of five years from the first date on which therapure delivers arikayce to us after we obtain permits related to the manufacture of arikayce , and will renew automatically for successive periods of two years each , unless terminated by either party by providing the required two years ' prior written notice to the other party . under the agreement , we are obligated to pay certain minimum amounts for the batches of arikayce produced each calendar year . in september 2015 , we entered into a commercial fill/finish services agreement ( the fill/finish agreement ) with althea , for althea to produce , on a non-exclusive basis , arikayce in finished dosage form at a 50 kg scale . under the fill/finish agreement , we are obligated to pay a minimum of $ 2.7 million for the batches of arikayce produced each calendar year during the term of the fill/finish agreement . the fill/finish agreement became effective as of january 1 , 2015 , and following an extension in 2018 , the agreement remains in effect through december 31 , 2021. the fill/finish agreement may be extended for additional two -year periods upon mutual written agreement of the company and althea at least one year prior to the expiration of its then-current term . we currently have a licensing agreement with pari for the use of the optimized lamira nebulizer system for delivery of arikayce in treating patients with ntm lung infections , cf and bronchiectasis . under the licensing agreement , we have rights under several us and foreign issued patents , and patent applications involving improvements to the optimized lamira nebulizer system , to exploit such system with arikayce for the treatment of such indications , but we can not manufacture such nebulizers except as permitted under our commercialization agreement with pari . under the licensing 61 agreement , we paid pari an upfront license fee and milestone payments . upon fda acceptance of our new drug application and the subsequent fda approval of arikayce , we paid pari additional milestone payments of 1.0 million and 1.5 million , respectively . in addition , pari is entitled to receive a future milestone payment of 0.5 million in cash based on achievement of first receipt of marketing approval in a major eu country for arikayce and the device . in october 2017 , we exercised an option to buy-down the royalties payable to pari , which was included within selling , general and administrative expenses in the fourth quarter of 2017. pari is now entitled to receive royalty payments in the mid-single digits on the annual global net sales of arikayce , pursuant to the licensing agreement , subject to certain specified annual minimum royalties . in july 2014 , we entered into a commercialization agreement with pari for the manufacture and supply of the lamira nebulizer systems and related accessories ( the device ) as optimized for use with arikayce . under the commercialization agreement , pari manufactures the device except in the case of certain defined supply failures , when the company will have the right to make the device and have it made by third parties ( but not certain third parties deemed under the commercialization agreement to compete with pari ) . the commercialization agreement has an initial term of 15 years that began in october 2018 ( the initial term ) . the term of the commercialization agreement may be extended by us for an additional five years by providing written notice to pari at least one year prior to the expiration of the initial term . in october 2017 , we entered into certain agreements with patheon related to the increase of our long-term production capacity for arikayce . the agreements provide for patheon to manufacture and supply arikayce for our anticipated commercial needs . under these agreements , we are required to deliver to patheon the required raw materials , including active pharmaceutical ingredients , and certain fixed assets needed to manufacture arikayce . patheon 's supply obligations will commence once certain technology transfer and construction services are completed . our manufacturing and supply agreement with patheon will remain in effect for a fixed initial term , after which it will continue for successive renewal terms unless either we or patheon have given written notice of termination . the technology transfer agreement will expire when the parties agree that the technology transfer services have been completed . the agreements may also be terminated under certain other circumstances , including by either party due to a material uncured breach of the other party or the other party 's insolvency . these early termination clauses

in the second transaction , global trend merged with and into jerash holdings with jerash holdings being the surviving entity , as a result of which jerash holdings became the direct parent of global trend 's wholly owned operating subsidiaries , jerash garments and treasure success . 21 accounting treatment of merger for accounting purposes , global trend is recognized as the accounting acquirer , and jerash holdings is the legal acquirer or accounting acquiree . as such , following the merger , the historical financial statements of global trend are treated as the historical financial statements of the combined company . accordingly , the financial information in this annual report on form 10-k , including management 's discussion and analysis of financial condition and results of operations and the consolidated financial statements and the related notes thereto appearing elsewhere in this filing , reflect the consolidated financial statements of global trend , its subsidiaries and its affiliate , which includes as a variable interest entity victory apparel jordan company limited ( “ victory apparel ” ) . victory apparel was incorporated in jordan in 2005 and it is a wholly owned subsidiary of wcl . wealth choice limited ( “ wcl ” ) acquired global trend and jerash garments from two third-party individuals on march 21 , 2012. on march 31 , 2006 , victory apparel purchased all of the property and equipment of jerash garments at an industrial building in al tajamouat industrial city purchased by jerash garments on july 31 , 2000. the land and building were not registered in victory apparel 's name , and jerash garments continued to hold the land and building in its name in trust for victory apparel . the declaration of trust was never registered with the land registry of jordan , and on june 30 , 2016 , victory apparel and jerash garments dissolved the sale agreement , resulting in the property and equipment being owned free and clear by jerash garments . victory apparel does not currently have any material assets or operations of its own , and mr. choi and mr. lee , the group 's significant stockholders who together indirectly own 100 % of victory apparel through wcl , intend to dissolve the entity seasonality of sales a significant portion of our revenues are received during the first six months of our fiscal year . the majority of our vf corporation orders are derived from winter season fashions , the sales of which occur in spring and summer and are merchandized by vf corporation during the autumn months ( september through november ) . as such , the second half of our fiscal years reflect lower sales in anticipation of the spring and summer seasons . one of our strategies is to increase sales with other customers where clothing lines are stronger during the spring months . this strategy also reflects our current plan to increase the group 's number of customers to mitigate our current concentration risk with vf corporation . results of operations the following table presents certain information from our statement of income for fiscal years 2017 and 2018 and should be read , along with all of the information in this management 's discussion and analysis , in conjunction with the consolidated financial statements and related notes included elsewhere in this filing . ( all amounts , other than percentages , in thousands of u.s. dollars ) replace_table_token_2_th 22 revenue . revenue increased by approximately $ 7.3 million or 12 % , to approximately $ 69.3 million in fiscal 2018 from approximately $ 62.0 million in fiscal 2017. the growth was mainly the result of the expansion of our business with one of our major customers , particularly , in export product types with higher sales value , such as jackets , and the economic recovery of the u.s. , which remains the group 's major export destination . approximately 88 % and 90 % of our products were exported to the u.s. in fiscal 2018 and 2017 respectively . as a garment manufacturing group , we excel in manufacturing sport and outerwear and derive most of our revenue from the manufacturing and sales of sport and outerwear , which is the only segment in which we operate . the table below presents our revenues for fiscal years 2017 and 2018 by geographic area . revenue by geographic area ( all amounts , other than percentages , in thousands of u.s. dollars ) replace_table_token_3_th since december 2001 , all apparel manufactured in jordan could be exported to the u.s. without duty imposed , pursuant to the u.s. customs and border protection jordan free trade treaty . this treaty provides substantial competitiveness and benefit for us to expand the group 's garment export business in the u.s. our sales to the u.s. increased by approximately 9.8 % in fiscal 2018 compared to fiscal 2017. according to the major shippers report issued by the office of textiles and apparel under the u.s. department of commerce , u.s. apparel import from jordan increased by approximately 6.7 % from $ 1.30 billion in the fiscal year ended march 31 , 2017 to approximately $ 1.38 billion in the fiscal year ended march 31 , 2018. the group 's sales growth ratio has been exceeding the industrial average growth ratio , and the group still has plenty of room to expand our garment export business in the u.s. , as jerash accounts for only 4.8 % of the total jordanian garment exports to the u.s. , according to the world bank . cost of goods sold . story_separator_special_tag revenue is recognized when all four of the following criteria are met : ( i ) persuasive evidence that an arrangement exists ( sales agreements and customer purchase orders are used to determine the existence of an arrangement ) ; ( ii ) delivery of goods has occurred and risks and benefits of ownership have been transferred ( which is when the goods are received by the customer at its designated location in accordance with the sales terms ) ; ( iii ) the sales price is both fixed and determinable , and ( iv ) collectability is reasonably assured . most of the company 's products are custom-made for large brand-name retailers . historically , sales returns have been minimal . accounts receivable accounts receivable are recognized and carried at original invoiced amount less an estimated allowance for uncollectible accounts . the company usually grants credit to customers with good credit standing with a maximum of 90 days and determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends . the company establishes a provision for doubtful receivables when there is objective evidence that the company may not be able to collect amounts due . the allowance is based on management 's best estimates of specific losses on individual exposures , as well as a provision on historical trends of collections . the provision is recorded against accounts receivables balances , with a corresponding charge recorded in the consolidated statements of income and comprehensive income . actual amounts received may differ from management 's estimate of credit worthiness and the economic environment . delinquent account balances are written off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable . no allowance was considered necessary as of march 31 , 2018 and 2017. recent accounting pronouncements the company considers the applicability and impact of all accounting standards updates ( “ asus ” ) . management periodically reviews new accounting standards that are issued . new accounting pronouncements recently adopted in july 2015 , the financial accounting standards board ( “ fasb ” ) issued asu no . 2015-11 , “ simplifying the measurement of inventory . ” asu no . 2015-11 changes the measurement principle for inventory from the lower of cost or market to lower of cost and net realizable value . net realizable value is defined as the estimated selling prices in the ordinary course of business ; less reasonably predictable costs of completion , disposal and transportation . for public business entities , the amendments in this asu are effective for fiscal years beginning after december 15 , 2016 , including interim reporting periods within those fiscal years . the company adopted this guidance in the first quarter of its fiscal year ended march 31 , 2018 using a prospective application . the adoption of this guidance did not have a material impact on the company 's consolidated financial statements and related disclosures . 29 in march 2016 , the fasb issued asu 2016-09 , “ compensation—stock compensation ( topic 718 ) : improvements to employee share-based payment accounting . ” this update addresses several aspects of the accounting for share-based compensation transactions including : ( a ) income tax consequences when awards vest or are settled , ( b ) classification of awards as either equity or liabilities , ( c ) a policy election to account for forfeitures as they occur rather than on an estimated basis and ( d ) classification of excess tax impacts on the statement of cash flows . the company adopted this guidance in the first quarter of its fiscal year ended march 31 , 2018 , which did not have a material impact on the company 's consolidated financial statements and related disclosures . the amendments requiring recognition of excess tax benefits and tax deficiencies in the income statement will be applied prospectively . the company does not expect the future impact to be material to the consolidated results of operations ; however , such determination is subject to change based on facts and circumstances at the time when awards vest or settle . accounting pronouncements not yet adopted in may 2014 , the fasb issued asu no . 2014-09 , “ revenue from contracts with customers ( topic 606 ) ” ( “ topic 606 ” ) . topic 606 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 . topic 606 will replace most existing revenue recognition guidance in u.s. gaap when it becomes effective and permits the use of either the retrospective or cumulative effect transition method . the guidance also requires additional disclosure about the nature , amount , timing and uncertainty of revenue and cash flows arising from customer contracts . in august 2015 , the fasb issued asu no . 2015-14 , “ deferral of the effective date ” , which defers the effective date for topic 606 by one year . for public entities , the guidance in topic 606 will be effective for annual reporting periods beginning after december 15 , 2017 ( including interim reporting periods within those periods ) , and for all other entities , topic 606 will be effective for annual reporting periods beginning after december 15 , 2018 , and interim reporting periods within annual reporting periods beginning after december 15 , 2019. in march 2016 , the fasb issued asu no . 2016-08 , “ principal versus agent considerations ( reporting revenue versus net ) , ” which clarifies the implementation guidance on principal versus agent considerations in the new revenue recognition standard . in april 2016 , the fasb issued asu no . 2016-10 , “ identifying performance obligations and licensing , ” which reduces the complexity when applying the guidance for identifying performance obligations and improves the operability and understandability

liquidity and capital resources jerash holdings is a holding company incorporated in delaware . as a holding company , we rely on dividends and other distributions from our jordanian subsidiaries to satisfy our liquidity requirements . current jordanian regulations permit the group 's jordanian subsidiaries to pay dividends to us only out of their accumulated profits , if any , determined in accordance with jordanian accounting standards and regulations . in addition , our jordanian subsidiaries are required to set aside at least 10 % of their respective accumulated profits each year , if any , to fund certain reserve funds . these reserves are not distributable as cash dividends . the group has relied on direct payments of expenses by the group 's subsidiaries ( which generate revenues ) , to meet the group 's obligations to date . to the extent payments are due in u.s. dollars , the group has occasionally paid such amounts in jordanian dinar to an entity controlled by the group 's management capable of paying such amounts in u.s. dollars . such transactions have been made at prevailing exchange rates and have resulted in immaterial losses or gains on currency exchange but no other profit . as of march 31 , 2018 , we had cash of approximately $ 8.6 million and restricted cash of approximately $ 3.6 million compared to cash of approximately $ 3.7 million and restricted cash of approximately $ 0.5 million as of march 31 , 2017 , which was mainly the security deposit for obtaining the credit facilities from hsbc . our current assets as of march 31 , 2018 were approximately $ 36.9 million , and our current liabilities were approximately $ 7.9 million , which resulted in a current ratio of approximately 4.7:1. our current assets as of march 31 , 2017 were approximately $ 30.3 million , and our current liabilities were approximately $ 11.9 million , which resulted in a current ratio of approximately 2.5:1. total equity as of march 31 , 2018 and 2017 was approximately $ 34.1 million and 22.0 million , respectively . we had net working capital of $ 29.0 million and $ 18.4 million as of march 31 , 2018 and 2017 , respectively .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources jerash holdings is a holding company incorporated in delaware . as a holding company , we rely on dividends and other distributions from our jordanian subsidiaries to satisfy our liquidity requirements . current jordanian regulations permit the group 's jordanian subsidiaries to pay dividends to us only out of their accumulated profits , if any , determined in accordance with jordanian accounting standards and regulations . in addition , our jordanian subsidiaries are required to set aside at least 10 % of their respective accumulated profits each year , if any , to fund certain reserve funds . these reserves are not distributable as cash dividends . the group has relied on direct payments of expenses by the group 's subsidiaries ( which generate revenues ) , to meet the group 's obligations to date . to the extent payments are due in u.s. dollars , the group has occasionally paid such amounts in jordanian dinar to an entity controlled by the group 's management capable of paying such amounts in u.s. dollars . such transactions have been made at prevailing exchange rates and have resulted in immaterial losses or gains on currency exchange but no other profit . as of march 31 , 2018 , we had cash of approximately $ 8.6 million and restricted cash of approximately $ 3.6 million compared to cash of approximately $ 3.7 million and restricted cash of approximately $ 0.5 million as of march 31 , 2017 , which was mainly the security deposit for obtaining the credit facilities from hsbc . our current assets as of march 31 , 2018 were approximately $ 36.9 million , and our current liabilities were approximately $ 7.9 million , which resulted in a current ratio of approximately 4.7:1. our current assets as of march 31 , 2017 were approximately $ 30.3 million , and our current liabilities were approximately $ 11.9 million , which resulted in a current ratio of approximately 2.5:1. total equity as of march 31 , 2018 and 2017 was approximately $ 34.1 million and 22.0 million , respectively . we had net working capital of $ 29.0 million and $ 18.4 million as of march 31 , 2018 and 2017 , respectively . ``` Suspicious Activity Report : in the second transaction , global trend merged with and into jerash holdings with jerash holdings being the surviving entity , as a result of which jerash holdings became the direct parent of global trend 's wholly owned operating subsidiaries , jerash garments and treasure success . 21 accounting treatment of merger for accounting purposes , global trend is recognized as the accounting acquirer , and jerash holdings is the legal acquirer or accounting acquiree . as such , following the merger , the historical financial statements of global trend are treated as the historical financial statements of the combined company . accordingly , the financial information in this annual report on form 10-k , including management 's discussion and analysis of financial condition and results of operations and the consolidated financial statements and the related notes thereto appearing elsewhere in this filing , reflect the consolidated financial statements of global trend , its subsidiaries and its affiliate , which includes as a variable interest entity victory apparel jordan company limited ( “ victory apparel ” ) . victory apparel was incorporated in jordan in 2005 and it is a wholly owned subsidiary of wcl . wealth choice limited ( “ wcl ” ) acquired global trend and jerash garments from two third-party individuals on march 21 , 2012. on march 31 , 2006 , victory apparel purchased all of the property and equipment of jerash garments at an industrial building in al tajamouat industrial city purchased by jerash garments on july 31 , 2000. the land and building were not registered in victory apparel 's name , and jerash garments continued to hold the land and building in its name in trust for victory apparel . the declaration of trust was never registered with the land registry of jordan , and on june 30 , 2016 , victory apparel and jerash garments dissolved the sale agreement , resulting in the property and equipment being owned free and clear by jerash garments . victory apparel does not currently have any material assets or operations of its own , and mr. choi and mr. lee , the group 's significant stockholders who together indirectly own 100 % of victory apparel through wcl , intend to dissolve the entity seasonality of sales a significant portion of our revenues are received during the first six months of our fiscal year . the majority of our vf corporation orders are derived from winter season fashions , the sales of which occur in spring and summer and are merchandized by vf corporation during the autumn months ( september through november ) . as such , the second half of our fiscal years reflect lower sales in anticipation of the spring and summer seasons . one of our strategies is to increase sales with other customers where clothing lines are stronger during the spring months . this strategy also reflects our current plan to increase the group 's number of customers to mitigate our current concentration risk with vf corporation . results of operations the following table presents certain information from our statement of income for fiscal years 2017 and 2018 and should be read , along with all of the information in this management 's discussion and analysis , in conjunction with the consolidated financial statements and related notes included elsewhere in this filing . ( all amounts , other than percentages , in thousands of u.s. dollars ) replace_table_token_2_th 22 revenue . revenue increased by approximately $ 7.3 million or 12 % , to approximately $ 69.3 million in fiscal 2018 from approximately $ 62.0 million in fiscal 2017. the growth was mainly the result of the expansion of our business with one of our major customers , particularly , in export product types with higher sales value , such as jackets , and the economic recovery of the u.s. , which remains the group 's major export destination . approximately 88 % and 90 % of our products were exported to the u.s. in fiscal 2018 and 2017 respectively . as a garment manufacturing group , we excel in manufacturing sport and outerwear and derive most of our revenue from the manufacturing and sales of sport and outerwear , which is the only segment in which we operate . the table below presents our revenues for fiscal years 2017 and 2018 by geographic area . revenue by geographic area ( all amounts , other than percentages , in thousands of u.s. dollars ) replace_table_token_3_th since december 2001 , all apparel manufactured in jordan could be exported to the u.s. without duty imposed , pursuant to the u.s. customs and border protection jordan free trade treaty . this treaty provides substantial competitiveness and benefit for us to expand the group 's garment export business in the u.s. our sales to the u.s. increased by approximately 9.8 % in fiscal 2018 compared to fiscal 2017. according to the major shippers report issued by the office of textiles and apparel under the u.s. department of commerce , u.s. apparel import from jordan increased by approximately 6.7 % from $ 1.30 billion in the fiscal year ended march 31 , 2017 to approximately $ 1.38 billion in the fiscal year ended march 31 , 2018. the group 's sales growth ratio has been exceeding the industrial average growth ratio , and the group still has plenty of room to expand our garment export business in the u.s. , as jerash accounts for only 4.8 % of the total jordanian garment exports to the u.s. , according to the world bank . cost of goods sold . story_separator_special_tag revenue is recognized when all four of the following criteria are met : ( i ) persuasive evidence that an arrangement exists ( sales agreements and customer purchase orders are used to determine the existence of an arrangement ) ; ( ii ) delivery of goods has occurred and risks and benefits of ownership have been transferred ( which is when the goods are received by the customer at its designated location in accordance with the sales terms ) ; ( iii ) the sales price is both fixed and determinable , and ( iv ) collectability is reasonably assured . most of the company 's products are custom-made for large brand-name retailers . historically , sales returns have been minimal . accounts receivable accounts receivable are recognized and carried at original invoiced amount less an estimated allowance for uncollectible accounts . the company usually grants credit to customers with good credit standing with a maximum of 90 days and determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends . the company establishes a provision for doubtful receivables when there is objective evidence that the company may not be able to collect amounts due . the allowance is based on management 's best estimates of specific losses on individual exposures , as well as a provision on historical trends of collections . the provision is recorded against accounts receivables balances , with a corresponding charge recorded in the consolidated statements of income and comprehensive income . actual amounts received may differ from management 's estimate of credit worthiness and the economic environment . delinquent account balances are written off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable . no allowance was considered necessary as of march 31 , 2018 and 2017. recent accounting pronouncements the company considers the applicability and impact of all accounting standards updates ( “ asus ” ) . management periodically reviews new accounting standards that are issued . new accounting pronouncements recently adopted in july 2015 , the financial accounting standards board ( “ fasb ” ) issued asu no . 2015-11 , “ simplifying the measurement of inventory . ” asu no . 2015-11 changes the measurement principle for inventory from the lower of cost or market to lower of cost and net realizable value . net realizable value is defined as the estimated selling prices in the ordinary course of business ; less reasonably predictable costs of completion , disposal and transportation . for public business entities , the amendments in this asu are effective for fiscal years beginning after december 15 , 2016 , including interim reporting periods within those fiscal years . the company adopted this guidance in the first quarter of its fiscal year ended march 31 , 2018 using a prospective application . the adoption of this guidance did not have a material impact on the company 's consolidated financial statements and related disclosures . 29 in march 2016 , the fasb issued asu 2016-09 , “ compensation—stock compensation ( topic 718 ) : improvements to employee share-based payment accounting . ” this update addresses several aspects of the accounting for share-based compensation transactions including : ( a ) income tax consequences when awards vest or are settled , ( b ) classification of awards as either equity or liabilities , ( c ) a policy election to account for forfeitures as they occur rather than on an estimated basis and ( d ) classification of excess tax impacts on the statement of cash flows . the company adopted this guidance in the first quarter of its fiscal year ended march 31 , 2018 , which did not have a material impact on the company 's consolidated financial statements and related disclosures . the amendments requiring recognition of excess tax benefits and tax deficiencies in the income statement will be applied prospectively . the company does not expect the future impact to be material to the consolidated results of operations ; however , such determination is subject to change based on facts and circumstances at the time when awards vest or settle . accounting pronouncements not yet adopted in may 2014 , the fasb issued asu no . 2014-09 , “ revenue from contracts with customers ( topic 606 ) ” ( “ topic 606 ” ) . topic 606 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 . topic 606 will replace most existing revenue recognition guidance in u.s. gaap when it becomes effective and permits the use of either the retrospective or cumulative effect transition method . the guidance also requires additional disclosure about the nature , amount , timing and uncertainty of revenue and cash flows arising from customer contracts . in august 2015 , the fasb issued asu no . 2015-14 , “ deferral of the effective date ” , which defers the effective date for topic 606 by one year . for public entities , the guidance in topic 606 will be effective for annual reporting periods beginning after december 15 , 2017 ( including interim reporting periods within those periods ) , and for all other entities , topic 606 will be effective for annual reporting periods beginning after december 15 , 2018 , and interim reporting periods within annual reporting periods beginning after december 15 , 2019. in march 2016 , the fasb issued asu no . 2016-08 , “ principal versus agent considerations ( reporting revenue versus net ) , ” which clarifies the implementation guidance on principal versus agent considerations in the new revenue recognition standard . in april 2016 , the fasb issued asu no . 2016-10 , “ identifying performance obligations and licensing , ” which reduces the complexity when applying the guidance for identifying performance obligations and improves the operability and understandability

acquired assets include intangible assets of $ 0.5 million , deferred tax assets of $ 22.2 million , consisting of tax effected net operating losses in the amount of $ 13.5 million , tax effected capitalized research and development expenses of $ 8.5 million and tax effected federal tax credits of $ 0.2 million , and deferred tax liabilities of $ 0.1 million . the excess amount of fair value received over consideration paid of $ 21.4 million was recorded as a deferred credit in the consolidated balance sheets and will be recognized within income tax provision in proportion to the realization of the deferred tax assets and federal tax credits prospectively . during the fourth quarter of the year ended december 31 , 2017 , the deferred tax assets and related deferred credit balances were revalued due primarily to the impact of tax reform . see note 12 of the notes to consolidated financial statements for further discussion of the impact of tax reform on our consolidated financial statements . additionally , in 2018 , the company disposed of approximately $ 7.4 million in deferred tax assets and reduced the deferred credit by approximately $ 6.9 million as a result of an irc section 382 ownership shift that occurred as a result of cinven 's sales of the company 's securities . the ownership shift resulted in a limitation in the ability to utilize the acquired tax attributes and resulted in the described asset write-off and reduction of the deferred credit . how we generate revenue we earn fees through the performance of services detailed in our customer contracts . contract scope and pricing is typically based on either a fixed-fee or unit-of-service model , with consideration of activities performed by third parties , as well as ancillary costs necessary to deliver on the contract scope that are reimbursable by our customers . our contracts can range in duration from a few months to several years . these contracts are individually priced and negotiated based on the anticipated project scope , including the complexity of the project and the performance risks inherent in the project . the majority of our contracts are structured with an upfront fee that is collected at the time of contract signing , and the balance of the fee is collected over the duration of the contract either through an arranged billing schedule or upon completion of certain performance targets or defined milestones . revenue , which is distinct from billing and cash receipt , is recognized based on the satisfaction of the individual performance obligations identified in each contract . substantially all of our customer contracts consist of a single performance obligation , as the promise to transfer the individual services defined in the contracts are not separately identifiable from other promises in the contract , and therefore not distinct . our performance obligations are generally satisfied over time and recognized as services are performed . the progression of our contract performance obligations are measured primarily utilizing the input method of cost to cost . cancellation provisions in our contracts allow our customers to terminate a contract either immediately or according to advance notice terms specified within the applicable contract , which is typically 30 days . contract cancellation may occur for various reasons , including , but not limited to , adverse patient reactions , lack of efficacy , or inadequate patient enrollment . upon cancellation , we are entitled to fees for services rendered and reimbursable costs incurred through the date of termination , including payment for subsequent services necessary to conclude the study or close out the contract . these fees are typically discussed and agreed upon with the customer and are realized as revenue when we believe the amount can be estimated reliably and its realization is probable . changes in revenue from period to period are driven primarily by new business volume and task order execution activity , project cancellations , changes in estimated costs to complete performance obligations , and the mix of active studies during a given period that can vary based on therapeutic area and or study life cycle stage . costs and expenses our costs and expenses are comprised primarily of our total direct costs , selling , general and administrative costs , depreciation and amortization and income taxes . - 53 - total direct costs total direct costs are primarily driven by labor and related employee benefits , but also include contracted third party service related expenses , fees paid to site investigators , reimbursed out of pocket expenses , laboratory supplies and other expenses contributing to service delivery . the other costs of service delivery can include office rent , utilities , supplies and software licenses which are allocated between total direct costs and selling , general and administrative expenses based on the estimated contribution among service delivery and support function efforts on a percentage basis . total direct costs are expensed as incurred and are not deferred in anticipation of contracts being awarded or finalization of changes in scope . total direct costs , as a percentage of net revenue , can vary from period to period due to project labor efficiencies , changes in workforce , compensation/bonus programs and service mix . selling , general and administrative selling , general and administrative expenses are primarily driven by compensation and related employee benefits , as well as rent , utilities , supplies , software licenses , professional fees ( e.g . , legal and accounting expenses ) , travel , marketing and other operating expenses . story_separator_special_tag income tax provision income tax provision increased by $ 9.3 million , to $ 17.8 million for the year ended december 31 , 2017 from $ 8.5 million for the year ended december 31 , 2016. the overall effective tax rates for the years ended december 31 , 2017 and 2016 were 31.3 % and 38.9 % , respectively . on december 22 , 2017 , the u.s. government enacted comprehensive tax legislation commonly referred to as “ tax cuts and jobs act ” ( tcja ) . the effective tax rate for 2017 decreased from 2016 primarily due to the impact from the tcja . excluding the impacts of the new federal tax reform legislation , our effective income tax rate in 2017 would have been an expense of 36.2 % . the remaining difference was primarily attributable to the impact of state taxes , domestic and foreign uncertain tax positions and the tax impact associated with acquired tax attributes . the 2017 tcja significantly reforms the internal revenue code of 1986 , as amended . the tcja , among other things , includes a reduction in the u.s. federal tax rate from 35 % to 21 % , allows for the expensing of capital expenditures and puts into effect the migration from a “ worldwide ” system of taxation to a territorial system . the provisional impact on the year ended december 31 , 2017 effective tax rate from the tcja was primarily attributable to a one-time transition tax of $ 0.6 million on unrepatriated earnings of foreign subsidiaries as well as a tax benefit of $ 3.4 million related to the revaluation of the deferred credit which was partially offset by the revaluation of our deferred tax assets and liabilities and other miscellaneous tax attributes due to the reduction of the u.s. corporate tax rate from 35 % to 21 % . - 59 - liquidity and capital resources we assess our liquidity in terms of our ability to generate cash to fund our operating , investing and financing activities . our principal sources of liquidity are operating cash flows and funds available for borrowing under our senior secured revolving credit facility ( as defined below ) . as of december 31 , 2018 , we had cash and cash equivalents of $ 23.3 million , including an immaterial amount of restricted cash , related to advanced payments received pursuant to certain sponsor contracts . approximately $ 10.4 million of our cash and cash equivalents , none of which was restricted , was held by our foreign subsidiaries as of december 31 , 2018. on august 16 , 2016 , the company completed its ipo of its common stock at a price of $ 23.00 per share . we issued and sold 8,050,000 shares of common stock in the ipo . the ipo raised net proceeds of approximately $ 173.6 million after deducting underwriting discounts and commissions . we used the proceeds from our ipo , combined with cash on hand , to repay $ 175.0 million of outstanding borrowings under our 2014 senior secured term loan facility . on december 8 , 2016 , the company entered into a credit agreement ( the “ senior secured credit agreement ” ) consisting of a $ 165.0 million term loan ( the “ senior secured term loan facility ” ) and a $ 150.0 million revolving credit facility ( the “ senior secured revolving credit facility ” and , together with the senior secured term loan facility , the “ senior secured credit facilities ” ) . as of december 31 , 2018 , we had $ 149.8 million available for borrowing under our senior secured revolving credit facility . proceeds from the senior secured term loan facility were used to repay and extinguish our obligations under the 2014 senior secured credit facilities as well as pay any fees , costs and expenses related thereto . our expected primary cash needs on both a short and long-term basis are for investment in operational growth , capital expenditures , payment of debt , share repurchases , selective strategic bolt-on acquisitions , other investments , and other general corporate needs . we have historically funded our operations and growth with cash flow from operations and borrowings under our credit facilities . we expect to continue expanding our operations through organic growth and potentially highly selective bolt-on acquisitions and investments . we expect these activities will be funded from existing cash , cash flow from operations and , if necessary , borrowings under our existing or future credit facilities or other debt . we have deemed that foreign earnings will be indefinitely reinvested and therefore we have not provided taxes on these earnings . while we do not anticipate the need to repatriate these foreign earnings for liquidity purposes given our cash flows from operations and available borrowings under existing and future credit facilities , we would incur taxes on these earnings if the need for repatriation due to liquidity purposes arises . we believe that our sources of liquidity and capital will be sufficient to finance our cash needs for the next 12 months and on a longer-term basis . however , we can not assure you that our business will generate sufficient cash flow from operations , or that future borrowings will be available to us under our senior secured credit facilities or otherwise , in an amount sufficient to fund our liquidity needs . if our cash flows and capital resources are insufficient to service our indebtedness , we may be forced to reduce or delay capital expenditures , sell assets , seek additional capital or restructure or refinance our indebtedness . see “ item 1a . risk factors—risks relating to our indebtedness—we may not be able to generate sufficient cash to service all of our indebtedness , and may be forced to take other actions to satisfy our obligations under our indebtedness that may not be successful

cash flows from operating activities cash flows from operations are driven mainly by net income and net movement in accounts receivable and unbilled , net , advanced billings , pre-funded liabilities , accounts payable and accrued expenses . accounts receivable and unbilled , net , advanced billings and pre-funded liabilities fluctuate on a regular basis as we perform our services , bill our customers and ultimately collect on those receivables . we attempt to negotiate payment terms in order to provide for payments prior to or soon after the provision of services , but this timing of collection can vary significantly on a period by period comparative basis . net cash flows provided by operating activities were $ 156.6 million for the year ended december 31 , 2018 consisting of net income of $ 73.2 million . adjustments to reconcile net income to net cash provided by operating activities were $ 43.8 million , primarily related to amortization of intangibles of $ 29.6 million , depreciation of $ 9.2 million , stock based compensation expense of $ 6.5 million , and deferred income tax provision of $ 3.9 million , offset by $ 7.7 million of amortization and adjustment of deferred credit . changes in operating assets and liabilities provided $ 39.6 million in operating cash flows and were primarily driven by increased accrued expenses of $ 29.0 million and increased advanced billings of $ 35.6 million , offset by increased accounts receivable and unbilled , net of $ 27.0 million . net cash flows provided by operating activities were $ 97.4 million for the year ended december 31 , 2017 consisting of net income of $ 39.1 million . adjustments to reconcile net income to net cash provided by operating activities were $ 45.4 million , primarily related to amortization of intangibles of $ 37.9 million , depreciation of $ 8.6 million , stock based compensation expense of $ 4.5 million , and deferred income tax provision of $ 3.2 million , offset by $ 8.8 million of amortization and adjustment of deferred credit .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 cash flows from operations are driven mainly by net income and net movement in accounts receivable and unbilled , net , advanced billings , pre-funded liabilities , accounts payable and accrued expenses . accounts receivable and unbilled , net , advanced billings and pre-funded liabilities fluctuate on a regular basis as we perform our services , bill our customers and ultimately collect on those receivables . we attempt to negotiate payment terms in order to provide for payments prior to or soon after the provision of services , but this timing of collection can vary significantly on a period by period comparative basis . net cash flows provided by operating activities were $ 156.6 million for the year ended december 31 , 2018 consisting of net income of $ 73.2 million . adjustments to reconcile net income to net cash provided by operating activities were $ 43.8 million , primarily related to amortization of intangibles of $ 29.6 million , depreciation of $ 9.2 million , stock based compensation expense of $ 6.5 million , and deferred income tax provision of $ 3.9 million , offset by $ 7.7 million of amortization and adjustment of deferred credit . changes in operating assets and liabilities provided $ 39.6 million in operating cash flows and were primarily driven by increased accrued expenses of $ 29.0 million and increased advanced billings of $ 35.6 million , offset by increased accounts receivable and unbilled , net of $ 27.0 million . net cash flows provided by operating activities were $ 97.4 million for the year ended december 31 , 2017 consisting of net income of $ 39.1 million . adjustments to reconcile net income to net cash provided by operating activities were $ 45.4 million , primarily related to amortization of intangibles of $ 37.9 million , depreciation of $ 8.6 million , stock based compensation expense of $ 4.5 million , and deferred income tax provision of $ 3.2 million , offset by $ 8.8 million of amortization and adjustment of deferred credit . ``` Suspicious Activity Report : acquired assets include intangible assets of $ 0.5 million , deferred tax assets of $ 22.2 million , consisting of tax effected net operating losses in the amount of $ 13.5 million , tax effected capitalized research and development expenses of $ 8.5 million and tax effected federal tax credits of $ 0.2 million , and deferred tax liabilities of $ 0.1 million . the excess amount of fair value received over consideration paid of $ 21.4 million was recorded as a deferred credit in the consolidated balance sheets and will be recognized within income tax provision in proportion to the realization of the deferred tax assets and federal tax credits prospectively . during the fourth quarter of the year ended december 31 , 2017 , the deferred tax assets and related deferred credit balances were revalued due primarily to the impact of tax reform . see note 12 of the notes to consolidated financial statements for further discussion of the impact of tax reform on our consolidated financial statements . additionally , in 2018 , the company disposed of approximately $ 7.4 million in deferred tax assets and reduced the deferred credit by approximately $ 6.9 million as a result of an irc section 382 ownership shift that occurred as a result of cinven 's sales of the company 's securities . the ownership shift resulted in a limitation in the ability to utilize the acquired tax attributes and resulted in the described asset write-off and reduction of the deferred credit . how we generate revenue we earn fees through the performance of services detailed in our customer contracts . contract scope and pricing is typically based on either a fixed-fee or unit-of-service model , with consideration of activities performed by third parties , as well as ancillary costs necessary to deliver on the contract scope that are reimbursable by our customers . our contracts can range in duration from a few months to several years . these contracts are individually priced and negotiated based on the anticipated project scope , including the complexity of the project and the performance risks inherent in the project . the majority of our contracts are structured with an upfront fee that is collected at the time of contract signing , and the balance of the fee is collected over the duration of the contract either through an arranged billing schedule or upon completion of certain performance targets or defined milestones . revenue , which is distinct from billing and cash receipt , is recognized based on the satisfaction of the individual performance obligations identified in each contract . substantially all of our customer contracts consist of a single performance obligation , as the promise to transfer the individual services defined in the contracts are not separately identifiable from other promises in the contract , and therefore not distinct . our performance obligations are generally satisfied over time and recognized as services are performed . the progression of our contract performance obligations are measured primarily utilizing the input method of cost to cost . cancellation provisions in our contracts allow our customers to terminate a contract either immediately or according to advance notice terms specified within the applicable contract , which is typically 30 days . contract cancellation may occur for various reasons , including , but not limited to , adverse patient reactions , lack of efficacy , or inadequate patient enrollment . upon cancellation , we are entitled to fees for services rendered and reimbursable costs incurred through the date of termination , including payment for subsequent services necessary to conclude the study or close out the contract . these fees are typically discussed and agreed upon with the customer and are realized as revenue when we believe the amount can be estimated reliably and its realization is probable . changes in revenue from period to period are driven primarily by new business volume and task order execution activity , project cancellations , changes in estimated costs to complete performance obligations , and the mix of active studies during a given period that can vary based on therapeutic area and or study life cycle stage . costs and expenses our costs and expenses are comprised primarily of our total direct costs , selling , general and administrative costs , depreciation and amortization and income taxes . - 53 - total direct costs total direct costs are primarily driven by labor and related employee benefits , but also include contracted third party service related expenses , fees paid to site investigators , reimbursed out of pocket expenses , laboratory supplies and other expenses contributing to service delivery . the other costs of service delivery can include office rent , utilities , supplies and software licenses which are allocated between total direct costs and selling , general and administrative expenses based on the estimated contribution among service delivery and support function efforts on a percentage basis . total direct costs are expensed as incurred and are not deferred in anticipation of contracts being awarded or finalization of changes in scope . total direct costs , as a percentage of net revenue , can vary from period to period due to project labor efficiencies , changes in workforce , compensation/bonus programs and service mix . selling , general and administrative selling , general and administrative expenses are primarily driven by compensation and related employee benefits , as well as rent , utilities , supplies , software licenses , professional fees ( e.g . , legal and accounting expenses ) , travel , marketing and other operating expenses . story_separator_special_tag income tax provision income tax provision increased by $ 9.3 million , to $ 17.8 million for the year ended december 31 , 2017 from $ 8.5 million for the year ended december 31 , 2016. the overall effective tax rates for the years ended december 31 , 2017 and 2016 were 31.3 % and 38.9 % , respectively . on december 22 , 2017 , the u.s. government enacted comprehensive tax legislation commonly referred to as “ tax cuts and jobs act ” ( tcja ) . the effective tax rate for 2017 decreased from 2016 primarily due to the impact from the tcja . excluding the impacts of the new federal tax reform legislation , our effective income tax rate in 2017 would have been an expense of 36.2 % . the remaining difference was primarily attributable to the impact of state taxes , domestic and foreign uncertain tax positions and the tax impact associated with acquired tax attributes . the 2017 tcja significantly reforms the internal revenue code of 1986 , as amended . the tcja , among other things , includes a reduction in the u.s. federal tax rate from 35 % to 21 % , allows for the expensing of capital expenditures and puts into effect the migration from a “ worldwide ” system of taxation to a territorial system . the provisional impact on the year ended december 31 , 2017 effective tax rate from the tcja was primarily attributable to a one-time transition tax of $ 0.6 million on unrepatriated earnings of foreign subsidiaries as well as a tax benefit of $ 3.4 million related to the revaluation of the deferred credit which was partially offset by the revaluation of our deferred tax assets and liabilities and other miscellaneous tax attributes due to the reduction of the u.s. corporate tax rate from 35 % to 21 % . - 59 - liquidity and capital resources we assess our liquidity in terms of our ability to generate cash to fund our operating , investing and financing activities . our principal sources of liquidity are operating cash flows and funds available for borrowing under our senior secured revolving credit facility ( as defined below ) . as of december 31 , 2018 , we had cash and cash equivalents of $ 23.3 million , including an immaterial amount of restricted cash , related to advanced payments received pursuant to certain sponsor contracts . approximately $ 10.4 million of our cash and cash equivalents , none of which was restricted , was held by our foreign subsidiaries as of december 31 , 2018. on august 16 , 2016 , the company completed its ipo of its common stock at a price of $ 23.00 per share . we issued and sold 8,050,000 shares of common stock in the ipo . the ipo raised net proceeds of approximately $ 173.6 million after deducting underwriting discounts and commissions . we used the proceeds from our ipo , combined with cash on hand , to repay $ 175.0 million of outstanding borrowings under our 2014 senior secured term loan facility . on december 8 , 2016 , the company entered into a credit agreement ( the “ senior secured credit agreement ” ) consisting of a $ 165.0 million term loan ( the “ senior secured term loan facility ” ) and a $ 150.0 million revolving credit facility ( the “ senior secured revolving credit facility ” and , together with the senior secured term loan facility , the “ senior secured credit facilities ” ) . as of december 31 , 2018 , we had $ 149.8 million available for borrowing under our senior secured revolving credit facility . proceeds from the senior secured term loan facility were used to repay and extinguish our obligations under the 2014 senior secured credit facilities as well as pay any fees , costs and expenses related thereto . our expected primary cash needs on both a short and long-term basis are for investment in operational growth , capital expenditures , payment of debt , share repurchases , selective strategic bolt-on acquisitions , other investments , and other general corporate needs . we have historically funded our operations and growth with cash flow from operations and borrowings under our credit facilities . we expect to continue expanding our operations through organic growth and potentially highly selective bolt-on acquisitions and investments . we expect these activities will be funded from existing cash , cash flow from operations and , if necessary , borrowings under our existing or future credit facilities or other debt . we have deemed that foreign earnings will be indefinitely reinvested and therefore we have not provided taxes on these earnings . while we do not anticipate the need to repatriate these foreign earnings for liquidity purposes given our cash flows from operations and available borrowings under existing and future credit facilities , we would incur taxes on these earnings if the need for repatriation due to liquidity purposes arises . we believe that our sources of liquidity and capital will be sufficient to finance our cash needs for the next 12 months and on a longer-term basis . however , we can not assure you that our business will generate sufficient cash flow from operations , or that future borrowings will be available to us under our senior secured credit facilities or otherwise , in an amount sufficient to fund our liquidity needs . if our cash flows and capital resources are insufficient to service our indebtedness , we may be forced to reduce or delay capital expenditures , sell assets , seek additional capital or restructure or refinance our indebtedness . see “ item 1a . risk factors—risks relating to our indebtedness—we may not be able to generate sufficient cash to service all of our indebtedness , and may be forced to take other actions to satisfy our obligations under our indebtedness that may not be successful

without access to working capital from profitable operations , through equity , or by incurring additional debt , we may not be able to execute our growth strategy or pursue additional projects , which could adversely impact our results of operations , and may impair our longer term viability . 4 our ability to secure project financing for project development and our outstanding loans and line of credit from cdb may be adversely impacted by ldk solar 's liquidation and our default under our cathay bank loan agreement . as shown in the accompanying consolidated financial statements , the company incurred a net loss of $ 32.2 million during the year ended december 31 , 2013 and has an accumulated deficit of $ 56.1 million as of december 31 , 2013. working capital levels have decreased significantly from $ 22.4 million at december 31 , 2012 to negative $ 36.6 million at december 31 , 2013. in february 2014 , the company 's parent company , ldk , who owns approximately 71 % of the company 's outstanding common stock , announced that ldk filed an application for provisional liquidation in the cayman islands in connection with its plans to resolve its offshore liquidity issues . it is unknown at this time if ldk 's joint provisional liquidation will require or result in the company disposing of assets in an orderly manner , in a liquidation scenario or at all . if the company is required to dispose of assets to satisfy ldk 's creditors , it could result in the company incurring losses . we are experiencing the following risks and uncertainties in our business : as of december 31 , 2013 and 2012 , the company has accounts payable due to ldk of $ 50.9 million and $ 51.8 million , respectively . all of the accounts payable due to ldk are currently past due and payable to ldk . although there are no formal agreements , ldk has verbally indicated that it will not demand payment until the receivable from the customer has been collected . in light of ldk 's recent filing for liquidation , it is unclear whether or not ldk will be able to continue to allow the company to defer repayment to ldk . should ldk change its position and demand payment for the past due amount prior to collection of the related receivable from the customer , the company does not have the ability to make the payment currently due without additional sources of financing or accelerating the collection of outstanding receivables . with ldk as a majority shareholder , the significant risks and uncertainties associated with their filing for liquidation by ldk could have a significant negative impact on the financial viability of solar power , inc. as well as indicate an inability for ldk to support the company 's business . on march 25 , 2014 , solar power , inc. ( the “ company ” ) received notice from cathay bank stating that the company is in default under the business loan agreement dated december 26 , 2011 and as amended on january 2 , 2013 ( the “ loan agreement ” ) due to ( i ) the company failing to make payments as due pursuant to the loan agreement and pursuant to the forbearance agreements entered into between the parties , and ( ii ) the guarantor , ldk , filing an application for provisional liquidation in the cayman islands on february 24 , 2014. based on these events of default , cathay bank has accelerated the entire principal balance due under the loan agreement . the company owes approximately $ 4.25 million under the loan agreement , plus accrued interest and fees . the balance under the loan agreement will continue to incur interest at 11 % per year . if the company can not remedy the default , the company does not have the ability to make the payments without additional sources of financing or accelerating the collection of outstanding receivables . since the loan balance is secured by the company 's assets , cathay bank may foreclose on the collateral securing the loan which could significantly impact our business and our financial results . china development bank ( “ cdb ” ) has provided financing for construction and project financing on certain development projects in the past . they have also executed non-binding term sheets for other projects , but there is no assurance that the projects in process will be funded by cdb . cdb has been financing the company 's projects primarily because the company 's majority shareholder is ldk and cdb has a long term relationship with ldk . due to ldk 's financial difficulties and liquidation , certain financing of the company 's projects have been delayed . if cdb will no longer provide financing for the projects , the company will need to seek construction financing from other sources which could be very difficult given the company 's financial condition and its recent default under the cathay bank loan agreement as further described below . the company has completed projects in greece with a customer that is requesting debt term financing from cdb . because cdb has not yet provided the term financing , the company will collect its outstanding receivables on these projects from the operation 's cash proceeds over an extended period of time of up to six years and has reflected the receivables as noncurrent on the balance sheet . however , the customer continues to have discussions with cdb about financing , and if financing is obtained , collection of our receivables may be accelerated . the company has also completed an additional commercial scale project in new jersey with kdc solar , which is currently seeking debt term financing from cdb . story_separator_special_tag if these net metering caps are reached and local utilities are not required to purchase solar power , or if the net metering caps do not increase in the locations where we install our solar product , demand for our products could decrease . the solar industry is currently lobbying to extend these arbitrary net metering caps and replace them with either notably higher numbers or with a revised method of calculation that will allow the industry to continue our expansion in a manner consistent with both the industry and state and federal desires . moreover , we anticipate that our solar power installation will be subject to oversight and regulation in accordance with national and local ordinances relating to building codes , safety , environmental protection , utility interconnection and metering and related matters . 9 it is difficult to track the requirements of individual states and design equipment to comply with the varying standards . any new government regulations or utility policies pertaining to our solar power products may result in significant additional expenses to us , our resellers , and our customers and as a result , could cause a significant reduction in demand for our solar power products . compliance with environmental regulations can be expensive and noncompliance with these regulations may result in adverse publicity and potentially significant monetary damages and fines . we are required to comply with extensive environmental laws and regulations at the national , state , local , and international levels . these environmental laws and regulations include those governing the discharge of pollutants into the air and water , the use , management , and disposal of hazardous materials and wastes , the cleanup of contaminated sites , and occupational health and safety . we have incurred and will continue to incur significant costs and capital expenditures in complying with these laws and regulations . in addition , violations of or liabilities under environmental laws or permits may result in restrictions being imposed on our operating activities or in our being subjected to substantial fines , penalties , criminal proceedings , third party property damage or personal injury claims , cleanup costs , or other costs . while we believe we are currently in substantial compliance with applicable environmental requirements , future developments such as more aggressive enforcement policies , and the implementation of new , more stringent laws and regulations , or the discovery of presently unknown environmental conditions may require expenditures that could have a material adverse effect on our business , results of operations , and financial condition . we generally recognize revenue on system installations on a “ percentage of completion ” basis and payments are due upon the achievement of contractual milestones and any delay or cancellation of a project could adversely affect our business . we generally recognize revenue on our system installations on a “ percentage of completion ” basis , and as a result , our revenues from these installations are driven by the performance of our contractual obligations , which is generally driven by timelines for the installation of our solar power systems at customer sites . this could result in unpredictability of revenue and in the near term , a revenue decrease . as with any project-related business , there is the potential for delays within any particular customer project . variation of project timelines and estimates may impact our ability to recognize revenue in a particular period . in addition , certain customer contracts may include payment milestones due at specified points during a project . because we must invest substantial time and incur significant expense in advance of achieving milestones and the receipt of payments , failure to achieve milestones could adversely affect our business and results of operations . we are subject to particularly lengthy sales cycles in some markets . our focus on developing a customer base that requires installation of a solar power system means that it may take longer to develop strong customer relationships or partnerships . moreover , factors specific to certain industries also have an impact on our sales cycles . some of our customers may have longer sales cycles that could occur due to the timing of various state and federal subsidies . these lengthy and challenging sales cycles may mean that it could take longer before our sales and marketing efforts result in revenue , if at all , and may have adverse effects on our operating results , financial condition , cash flows and stock price . our competitive position depends in part on maintaining intellectual property protection . our ability to compete and to achieve and maintain profitability depends in part on our ability to protect our proprietary discoveries and technologies . we currently rely on a combination of copyrights , trademarks , trade secret laws and confidentiality agreements to protect our intellectual property rights . we also rely upon unpatented know-how and continuing technological innovation to develop and maintain our competitive position . from time to time , the u.s. supreme court , other federal courts , the u.s. congress or the u.s. patent and trademark office may change the standards of patentability , and any such changes could have a negative impact on our business . 10 we may face intellectual property infringement claims that could be time-consuming and costly to defend and result in our loss of significant rights and the assessment of damages . if we receive notice of claims of infringement , misappropriation or misuse of other parties ' proprietary rights , some of these claims could lead to litigation . we can not provide assurance that we will prevail in these actions or that other actions alleging misappropriation or misuse by us of third-party trade secrets , infringement by us of third-party patents and trademarks or the validity of our patents will not be asserted or prosecuted against us . we may also initiate claims to defend our intellectual property rights .

liquidity a summary of the sources and uses of cash and cash equivalents is as follows : replace_table_token_1_th 23 as of december 31 , 2013 and 2012 , we had $ 1.0 million and $ 17.8 million , respectively , in cash and cash equivalents . operating activities – net cash provided by operating activities of $ 11.2 million for the year ended december 31 , 2013 which resulted primarily from the decreases in costs and estimated earnings in excess of billing on uncompleted contracts of $ 28.7 million , decreases in construction in progress of $ 16.0 million , decreases in accounts receivable of $ 15.3 million , increases in accounts payable of $ 2.4 million , decreases in inventories of $ 1.6 million . these amounts were partially offset by the $ 32.2 million net loss which includes a gain on deconsolidation of sgt of $ 3.5 million and non-cash activity related to the solar system subject to financing obligation of $ 1.2 million , offset in part by non-cash items consisting of depreciation and amortization of $ 1.9 million , bad debt expense of $ 9.3 million , impairment charges of $ 7.5 million and impairment of project assets of $ 2.8 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 a summary of the sources and uses of cash and cash equivalents is as follows : replace_table_token_1_th 23 as of december 31 , 2013 and 2012 , we had $ 1.0 million and $ 17.8 million , respectively , in cash and cash equivalents . operating activities – net cash provided by operating activities of $ 11.2 million for the year ended december 31 , 2013 which resulted primarily from the decreases in costs and estimated earnings in excess of billing on uncompleted contracts of $ 28.7 million , decreases in construction in progress of $ 16.0 million , decreases in accounts receivable of $ 15.3 million , increases in accounts payable of $ 2.4 million , decreases in inventories of $ 1.6 million . these amounts were partially offset by the $ 32.2 million net loss which includes a gain on deconsolidation of sgt of $ 3.5 million and non-cash activity related to the solar system subject to financing obligation of $ 1.2 million , offset in part by non-cash items consisting of depreciation and amortization of $ 1.9 million , bad debt expense of $ 9.3 million , impairment charges of $ 7.5 million and impairment of project assets of $ 2.8 million . ``` Suspicious Activity Report : without access to working capital from profitable operations , through equity , or by incurring additional debt , we may not be able to execute our growth strategy or pursue additional projects , which could adversely impact our results of operations , and may impair our longer term viability . 4 our ability to secure project financing for project development and our outstanding loans and line of credit from cdb may be adversely impacted by ldk solar 's liquidation and our default under our cathay bank loan agreement . as shown in the accompanying consolidated financial statements , the company incurred a net loss of $ 32.2 million during the year ended december 31 , 2013 and has an accumulated deficit of $ 56.1 million as of december 31 , 2013. working capital levels have decreased significantly from $ 22.4 million at december 31 , 2012 to negative $ 36.6 million at december 31 , 2013. in february 2014 , the company 's parent company , ldk , who owns approximately 71 % of the company 's outstanding common stock , announced that ldk filed an application for provisional liquidation in the cayman islands in connection with its plans to resolve its offshore liquidity issues . it is unknown at this time if ldk 's joint provisional liquidation will require or result in the company disposing of assets in an orderly manner , in a liquidation scenario or at all . if the company is required to dispose of assets to satisfy ldk 's creditors , it could result in the company incurring losses . we are experiencing the following risks and uncertainties in our business : as of december 31 , 2013 and 2012 , the company has accounts payable due to ldk of $ 50.9 million and $ 51.8 million , respectively . all of the accounts payable due to ldk are currently past due and payable to ldk . although there are no formal agreements , ldk has verbally indicated that it will not demand payment until the receivable from the customer has been collected . in light of ldk 's recent filing for liquidation , it is unclear whether or not ldk will be able to continue to allow the company to defer repayment to ldk . should ldk change its position and demand payment for the past due amount prior to collection of the related receivable from the customer , the company does not have the ability to make the payment currently due without additional sources of financing or accelerating the collection of outstanding receivables . with ldk as a majority shareholder , the significant risks and uncertainties associated with their filing for liquidation by ldk could have a significant negative impact on the financial viability of solar power , inc. as well as indicate an inability for ldk to support the company 's business . on march 25 , 2014 , solar power , inc. ( the “ company ” ) received notice from cathay bank stating that the company is in default under the business loan agreement dated december 26 , 2011 and as amended on january 2 , 2013 ( the “ loan agreement ” ) due to ( i ) the company failing to make payments as due pursuant to the loan agreement and pursuant to the forbearance agreements entered into between the parties , and ( ii ) the guarantor , ldk , filing an application for provisional liquidation in the cayman islands on february 24 , 2014. based on these events of default , cathay bank has accelerated the entire principal balance due under the loan agreement . the company owes approximately $ 4.25 million under the loan agreement , plus accrued interest and fees . the balance under the loan agreement will continue to incur interest at 11 % per year . if the company can not remedy the default , the company does not have the ability to make the payments without additional sources of financing or accelerating the collection of outstanding receivables . since the loan balance is secured by the company 's assets , cathay bank may foreclose on the collateral securing the loan which could significantly impact our business and our financial results . china development bank ( “ cdb ” ) has provided financing for construction and project financing on certain development projects in the past . they have also executed non-binding term sheets for other projects , but there is no assurance that the projects in process will be funded by cdb . cdb has been financing the company 's projects primarily because the company 's majority shareholder is ldk and cdb has a long term relationship with ldk . due to ldk 's financial difficulties and liquidation , certain financing of the company 's projects have been delayed . if cdb will no longer provide financing for the projects , the company will need to seek construction financing from other sources which could be very difficult given the company 's financial condition and its recent default under the cathay bank loan agreement as further described below . the company has completed projects in greece with a customer that is requesting debt term financing from cdb . because cdb has not yet provided the term financing , the company will collect its outstanding receivables on these projects from the operation 's cash proceeds over an extended period of time of up to six years and has reflected the receivables as noncurrent on the balance sheet . however , the customer continues to have discussions with cdb about financing , and if financing is obtained , collection of our receivables may be accelerated . the company has also completed an additional commercial scale project in new jersey with kdc solar , which is currently seeking debt term financing from cdb . story_separator_special_tag if these net metering caps are reached and local utilities are not required to purchase solar power , or if the net metering caps do not increase in the locations where we install our solar product , demand for our products could decrease . the solar industry is currently lobbying to extend these arbitrary net metering caps and replace them with either notably higher numbers or with a revised method of calculation that will allow the industry to continue our expansion in a manner consistent with both the industry and state and federal desires . moreover , we anticipate that our solar power installation will be subject to oversight and regulation in accordance with national and local ordinances relating to building codes , safety , environmental protection , utility interconnection and metering and related matters . 9 it is difficult to track the requirements of individual states and design equipment to comply with the varying standards . any new government regulations or utility policies pertaining to our solar power products may result in significant additional expenses to us , our resellers , and our customers and as a result , could cause a significant reduction in demand for our solar power products . compliance with environmental regulations can be expensive and noncompliance with these regulations may result in adverse publicity and potentially significant monetary damages and fines . we are required to comply with extensive environmental laws and regulations at the national , state , local , and international levels . these environmental laws and regulations include those governing the discharge of pollutants into the air and water , the use , management , and disposal of hazardous materials and wastes , the cleanup of contaminated sites , and occupational health and safety . we have incurred and will continue to incur significant costs and capital expenditures in complying with these laws and regulations . in addition , violations of or liabilities under environmental laws or permits may result in restrictions being imposed on our operating activities or in our being subjected to substantial fines , penalties , criminal proceedings , third party property damage or personal injury claims , cleanup costs , or other costs . while we believe we are currently in substantial compliance with applicable environmental requirements , future developments such as more aggressive enforcement policies , and the implementation of new , more stringent laws and regulations , or the discovery of presently unknown environmental conditions may require expenditures that could have a material adverse effect on our business , results of operations , and financial condition . we generally recognize revenue on system installations on a “ percentage of completion ” basis and payments are due upon the achievement of contractual milestones and any delay or cancellation of a project could adversely affect our business . we generally recognize revenue on our system installations on a “ percentage of completion ” basis , and as a result , our revenues from these installations are driven by the performance of our contractual obligations , which is generally driven by timelines for the installation of our solar power systems at customer sites . this could result in unpredictability of revenue and in the near term , a revenue decrease . as with any project-related business , there is the potential for delays within any particular customer project . variation of project timelines and estimates may impact our ability to recognize revenue in a particular period . in addition , certain customer contracts may include payment milestones due at specified points during a project . because we must invest substantial time and incur significant expense in advance of achieving milestones and the receipt of payments , failure to achieve milestones could adversely affect our business and results of operations . we are subject to particularly lengthy sales cycles in some markets . our focus on developing a customer base that requires installation of a solar power system means that it may take longer to develop strong customer relationships or partnerships . moreover , factors specific to certain industries also have an impact on our sales cycles . some of our customers may have longer sales cycles that could occur due to the timing of various state and federal subsidies . these lengthy and challenging sales cycles may mean that it could take longer before our sales and marketing efforts result in revenue , if at all , and may have adverse effects on our operating results , financial condition , cash flows and stock price . our competitive position depends in part on maintaining intellectual property protection . our ability to compete and to achieve and maintain profitability depends in part on our ability to protect our proprietary discoveries and technologies . we currently rely on a combination of copyrights , trademarks , trade secret laws and confidentiality agreements to protect our intellectual property rights . we also rely upon unpatented know-how and continuing technological innovation to develop and maintain our competitive position . from time to time , the u.s. supreme court , other federal courts , the u.s. congress or the u.s. patent and trademark office may change the standards of patentability , and any such changes could have a negative impact on our business . 10 we may face intellectual property infringement claims that could be time-consuming and costly to defend and result in our loss of significant rights and the assessment of damages . if we receive notice of claims of infringement , misappropriation or misuse of other parties ' proprietary rights , some of these claims could lead to litigation . we can not provide assurance that we will prevail in these actions or that other actions alleging misappropriation or misuse by us of third-party trade secrets , infringement by us of third-party patents and trademarks or the validity of our patents will not be asserted or prosecuted against us . we may also initiate claims to defend our intellectual property rights .

we believe we are well positioned to manage through these constraints as a large , integrated midstream company , but growth of our business could be dampened in the near term while more industry wide pipeline and fractionation facilities are developed . although there may be infrastructure constraints in the near term , we believe our growth projects and other industry wide projects coming on-line over the next two years will help mitigate those constraints . we believe these projects being developed will enable us to meet the demand of our customers . we believe our contract structure with our producers provides us with significant protection from credit risk since we generally hold the product , sell it and withhold our fees prior to remittance of payments to the producer . currently , our top 20 producers account for a majority of the total natural gas that we gather and process and of these top 20 producers , 9 have investment grade credit ratings while the remainder do not . in addition to the u.s. financial markets , many businesses and investors continue to monitor global economic conditions . uncertainty abroad may contribute to volatility in domestic financial and commodity markets . we believe we are positioned to withstand current and future commodity price volatility as a result of the following : our growing fee-based business represents a significant portion of our margins . we have positive operating cash flow from our well-positioned and diversified assets . we have a well-defined and targeted hedging program . we manage our disciplined capital growth program with a significant focus on fee-based agreements and projects with long term volume outlooks . we believe we have a solid capital structure and balance sheet . we believe we have access to sufficient capital to fund our growth . during 2019 , our strategic objectives will continue to focus on maintaining stable distributable cash flows from our existing assets and executing on opportunities to sustain and ultimately grow our long-term distributable cash flows . we believe the key elements to stable distributable cash flows are the diversity of our asset portfolio , our fee-based business which represents a significant portion of our estimated margins , plus our hedged commodity position , the objective of which is to protect against downside risk in our distributable cash flows . we have engaged in a disciplined growth strategy in recent years focusing on our key areas of operations . our targeted strategy may take numerous forms such as organic build opportunities within our footprint , joint venture opportunities , and acquisitions . growth opportunities will be evaluated in cooperation with producers and customers based on the expected level of drilling activity in these geographic regions and the impacts of higher costs of capital . some of our growth projects include the following : within our logistics and marketing segment , we increased the capacity of the sand hills pipeline to 485 mbbls/d during the fourth quarter of 2018 . 52 we increased the capacity of the southern hills pipeline at the end of the third quarter to approximately 190 mbbls/d . we are participating in the front range 100 mbls/d and texas express 90 mbls/d expansions adding ngl takeaway from the dj basin . both expansions are expected to go into service in the third quarter of 2019. we have a 33 % ownership option in the cheyenne connector pipeline . the cheyenne connector pipeline will have an initial capacity of at least 600 mmcf/day and is expected to be in service in the fourth quarter of 2019 , subject to certain conditions , including required approvals from the federal energy regulatory commission . we are adding ngl takeaway to the dj basin with our southern hills pipeline extension via the white cliffs pipeline , with capacity of 90 mbls/d , expandable to 120 mbls/d . expected completion is in the fourth quarter of 2019. we have a 25 % ownership interest in the gulf coast express pipeline , or `` gcx `` . the gcx project is designed to transport approximately 2 bcf/d of natural gas , and is fully subscribed . the natural gas takeaway pipeline is under construction and is anticipated to be in-service in the fourth quarter of 2019. we hold an option to acquire a 30 % ownership interest in two 150 mbbls/d fractionators to be constructed within phillips 66 's sweeny hub , exercisable at the in-service date , which is expected to be in late 2020. within our gathering and processing segment , construction of our up to 300 mmcf/d o'connor 2 facility and associated gathering infrastructure , located in the dj basin , is progressing . o'connor 2 is comprised of 200 mmcf/d of processing capacity and up to 100 mmcf/d of bypass . we expect to place the plant into service in the second quarter of 2019 , and the bypass into service in the third quarter of 2019. we have secured land and filed permits for bighorn , a natural gas processing facility in the dj basin , with capacity of up to 1.0 bcf/d including bypass . the bighorn facility is expected to be placed into service in phases beginning in the second quarter of 2020. we incur capital expenditures for our consolidated entities and our unconsolidated affiliates . our 2019 plan includes maintenance capital expenditures of between $ 90 million and $ 110 million , and expansion capital expenditures of between $ 600 million and $ 800 million . expansion capital expenditures are expected to include the construction of the o'connor 2 plant in our dj basin as well as the construction of the gulf coast express pipeline , the front range and texas express expansions and the extension of southern hills into the dj basin via the white cliffs pipeline , which are shown as investments in unconsolidated affiliates in our consolidated statements of cash flows . story_separator_special_tag 57 year ended december 31 , 2018 vs. year ended december 31 , 2017 total operating revenues — total operating revenues increased $ 1,360 million in 2018 compared to 2017 primarily as a result of the following : $ 1,257 million increase for our logistics and marketing segment primarily due to higher ngl and crude prices , higher gas and ngl sales volumes which impacts both sales and purchases , partially offset by lower natural gas prices , unfavorable commodity derivative activity and the implementation of asc 606 ; and $ 376 million increase for our gathering and processing segment due to higher ngl and crude prices , higher gas and ngl sales volumes impacting both sales and purchases due to increased drilling activity in our eagle ford system and the impact of hurricane harvey in 2017 in the south region , growth projects primarily related to our dj basin system in the north region and increased volumes , improved operational performance in our midcontinent region and favorable commodity derivative activity . these increases were partially offset by lower natural gas prices , the sale of our douglas gathering system in june 2017 and the implementation of asc 606 ; these increases were partially offset by : $ 273 million change in inter-segment eliminations , which relate to sales of gas and ngl volumes from our gathering and processing segment to our logistics and marketing segment , primarily due to higher gas and ngl sales volume , higher commodity prices and the implementation of asc 606. total purchases — total purchases increased $ 1,134 million in 2018 compared to 2017 primarily as a result of the following : $ 1,232 million increase for our logistics and marketing segment for the reasons discussed above . $ 175 million increase for our gathering and processing segment for the reasons discussed above ; these increases were partially offset by : $ 273 million change in inter-segment eliminations , which relate to sales of gas and ngl volumes from our gathering and processing segment to our logistics and marketing segment , primarily due to higher gas and ngl sales volumes and higher commodity prices and the implementation of asc 606 ; operating and maintenance expense — operating and maintenance expense increased in 2018 compared to 2017 primarily as a result of increased reliability spending , planned maintenance spending associated with anticipated volume growth and costs associated with the ramp-up of our mewbourn 3 plant . general and administrative expense — general and administrative expense decreased in 2018 compared to 2017 primarily as a result of lower contract services . asset impairments — asset impairments in 2018 represent the impairment of property , plant and equipment in our midcontinent and south regions . asset impairments in 2017 represent the impairment of property , plant and equipment and intangible assets in our south region . gain on sale of assets , net — the gain on sale in 2017 represents the sale of our douglas gathering system . loss from financing activities — loss from financing activities in 2018 represents a loss on redemption of senior notes . earnings from unconsolidated affiliates — earnings from unconsolidated affiliates increased in 2018 compared to 2017 primarily as a result of the expansion and volume ramp up of the sand hills ngl pipeline and higher volumes on the southern hills ngl pipeline in our logistics and marketing segment partially offset by a decrease from discovery in our gathering and processing segment primarily due to lower production volumes from two offshore wells . interest expense - interest expense decreased in 2018 compared to 2017 as a result of higher capitalized interest and a lower effective interest rate . net income attributable to partners — net income attributable to partners increased in 2018 compared to 2017 for the reasons discussed above . gross margin — gross margin increased $ 226 million in 2018 compared to 2017 primarily as a result of the following : 58 $ 201 million increase for our gathering and processing segment primarily related to increased volumes from increased drilling activity in our eagle ford system and the impact of hurricane harvey in 2017 in the south region , growth projects primarily related to our dj basin system in the north region , increased volumes and improved operational performance in the midcontinent region , favorable commodity derivative activity and higher commodity prices . these increases were partially offset by lower volumes in our permian region due to weather impacting operations , a third-party line strike and operational factors and the sale of our douglas gathering system in june 2017 ; $ 25 million increase for our logistics and marketing segment primarily related to higher gas marketing margins due to favorable commodity spreads primarily associated with guadalupe and higher ngl marketing margins and transported volumes , partially offset by unfavorable commodity derivative activity , lower margins on wholesale propane and the expiration of a commercial arrangement . year ended december 31 , 2017 vs. year ended december 31 , 2016 total operating revenues — total operating revenues increased $ 1,569 million in 2017 compared to 2016 primarily as a result of the following : $ 1,571 million increase for our logistics and marketing segment primarily due to increased commodity prices and favorable commodity derivative activity , partially offset by lower gas and ngl sales volumes and the sale of our northern louisiana system ; $ 977 million increase for our gathering and processing segment primarily due to higher commodity prices , higher gas and ngl sales volumes primarily related to our north region which impacts both sales and purchases , and higher transportation , processing and other , primarily related to fee based contract realignment efforts . these increases were partially offset by lower gas and ngl sales volumes in the south , midcontinent and permian regions , unfavorable commodity derivative activity and the sale of our northern louisiana system and douglas gathering system ; these increases were partially

cash distributions to unitholders — our partnership agreement requires that , within 45 days after the end of each quarter , we distribute all available cash , as defined in the partnership agreement . we made cash distributions to our common unitholders and general partner of $ 658 million and $ 545 million during the years ended december 31 , 2018 and 2017 , respectively . distributions paid during the years ended december 31 , 2018 reflect the distribution of $ 40 million of idr givebacks to the idr holders , in conjunction with the quarterly distribution , that were previously withheld in 2017 under the partnership agreement . we intend to continue making quarterly distribution payments to our unitholders and general partner to the extent we have sufficient cash from operations after the establishment of reserves . in accordance with our partnership agreement , distributions declared were $ 618 million for the year ended december 31 , 2018 . during the years ended december 31 , 2018 , no idr giveback was withheld from the distribution declared . on january 23 , 2019 , we announced that the board of directors of the general partner declared a quarterly distribution on our common units of $ 0.78 per common unit . the distribution will be paid on february 14 , 2019 to unitholders of record on february 4 , 2019 . on the same date , the board of directors of the general partner declared a quarterly distribution on our series b and series c preferred units of $ 0.4922 and $ 0.4969 per unit , respectively . the series b distributions will be paid on march 15 , 2019 to unitholders of record on march 1 , 2019 . the series c distribution will be paid on april 15 , 2019 to unitholders of record on april 1 , 2019 . we expect to continue to use cash provided by operating activities for the payment of distributions to our unitholders and general partner . see note 14 . `` partnership equity and distributions '' in the notes to the consolidated financial statements in item 8 . “ financial statements.

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 distributions to unitholders — our partnership agreement requires that , within 45 days after the end of each quarter , we distribute all available cash , as defined in the partnership agreement . we made cash distributions to our common unitholders and general partner of $ 658 million and $ 545 million during the years ended december 31 , 2018 and 2017 , respectively . distributions paid during the years ended december 31 , 2018 reflect the distribution of $ 40 million of idr givebacks to the idr holders , in conjunction with the quarterly distribution , that were previously withheld in 2017 under the partnership agreement . we intend to continue making quarterly distribution payments to our unitholders and general partner to the extent we have sufficient cash from operations after the establishment of reserves . in accordance with our partnership agreement , distributions declared were $ 618 million for the year ended december 31 , 2018 . during the years ended december 31 , 2018 , no idr giveback was withheld from the distribution declared . on january 23 , 2019 , we announced that the board of directors of the general partner declared a quarterly distribution on our common units of $ 0.78 per common unit . the distribution will be paid on february 14 , 2019 to unitholders of record on february 4 , 2019 . on the same date , the board of directors of the general partner declared a quarterly distribution on our series b and series c preferred units of $ 0.4922 and $ 0.4969 per unit , respectively . the series b distributions will be paid on march 15 , 2019 to unitholders of record on march 1 , 2019 . the series c distribution will be paid on april 15 , 2019 to unitholders of record on april 1 , 2019 . we expect to continue to use cash provided by operating activities for the payment of distributions to our unitholders and general partner . see note 14 . `` partnership equity and distributions '' in the notes to the consolidated financial statements in item 8 . “ financial statements. ``` Suspicious Activity Report : we believe we are well positioned to manage through these constraints as a large , integrated midstream company , but growth of our business could be dampened in the near term while more industry wide pipeline and fractionation facilities are developed . although there may be infrastructure constraints in the near term , we believe our growth projects and other industry wide projects coming on-line over the next two years will help mitigate those constraints . we believe these projects being developed will enable us to meet the demand of our customers . we believe our contract structure with our producers provides us with significant protection from credit risk since we generally hold the product , sell it and withhold our fees prior to remittance of payments to the producer . currently , our top 20 producers account for a majority of the total natural gas that we gather and process and of these top 20 producers , 9 have investment grade credit ratings while the remainder do not . in addition to the u.s. financial markets , many businesses and investors continue to monitor global economic conditions . uncertainty abroad may contribute to volatility in domestic financial and commodity markets . we believe we are positioned to withstand current and future commodity price volatility as a result of the following : our growing fee-based business represents a significant portion of our margins . we have positive operating cash flow from our well-positioned and diversified assets . we have a well-defined and targeted hedging program . we manage our disciplined capital growth program with a significant focus on fee-based agreements and projects with long term volume outlooks . we believe we have a solid capital structure and balance sheet . we believe we have access to sufficient capital to fund our growth . during 2019 , our strategic objectives will continue to focus on maintaining stable distributable cash flows from our existing assets and executing on opportunities to sustain and ultimately grow our long-term distributable cash flows . we believe the key elements to stable distributable cash flows are the diversity of our asset portfolio , our fee-based business which represents a significant portion of our estimated margins , plus our hedged commodity position , the objective of which is to protect against downside risk in our distributable cash flows . we have engaged in a disciplined growth strategy in recent years focusing on our key areas of operations . our targeted strategy may take numerous forms such as organic build opportunities within our footprint , joint venture opportunities , and acquisitions . growth opportunities will be evaluated in cooperation with producers and customers based on the expected level of drilling activity in these geographic regions and the impacts of higher costs of capital . some of our growth projects include the following : within our logistics and marketing segment , we increased the capacity of the sand hills pipeline to 485 mbbls/d during the fourth quarter of 2018 . 52 we increased the capacity of the southern hills pipeline at the end of the third quarter to approximately 190 mbbls/d . we are participating in the front range 100 mbls/d and texas express 90 mbls/d expansions adding ngl takeaway from the dj basin . both expansions are expected to go into service in the third quarter of 2019. we have a 33 % ownership option in the cheyenne connector pipeline . the cheyenne connector pipeline will have an initial capacity of at least 600 mmcf/day and is expected to be in service in the fourth quarter of 2019 , subject to certain conditions , including required approvals from the federal energy regulatory commission . we are adding ngl takeaway to the dj basin with our southern hills pipeline extension via the white cliffs pipeline , with capacity of 90 mbls/d , expandable to 120 mbls/d . expected completion is in the fourth quarter of 2019. we have a 25 % ownership interest in the gulf coast express pipeline , or `` gcx `` . the gcx project is designed to transport approximately 2 bcf/d of natural gas , and is fully subscribed . the natural gas takeaway pipeline is under construction and is anticipated to be in-service in the fourth quarter of 2019. we hold an option to acquire a 30 % ownership interest in two 150 mbbls/d fractionators to be constructed within phillips 66 's sweeny hub , exercisable at the in-service date , which is expected to be in late 2020. within our gathering and processing segment , construction of our up to 300 mmcf/d o'connor 2 facility and associated gathering infrastructure , located in the dj basin , is progressing . o'connor 2 is comprised of 200 mmcf/d of processing capacity and up to 100 mmcf/d of bypass . we expect to place the plant into service in the second quarter of 2019 , and the bypass into service in the third quarter of 2019. we have secured land and filed permits for bighorn , a natural gas processing facility in the dj basin , with capacity of up to 1.0 bcf/d including bypass . the bighorn facility is expected to be placed into service in phases beginning in the second quarter of 2020. we incur capital expenditures for our consolidated entities and our unconsolidated affiliates . our 2019 plan includes maintenance capital expenditures of between $ 90 million and $ 110 million , and expansion capital expenditures of between $ 600 million and $ 800 million . expansion capital expenditures are expected to include the construction of the o'connor 2 plant in our dj basin as well as the construction of the gulf coast express pipeline , the front range and texas express expansions and the extension of southern hills into the dj basin via the white cliffs pipeline , which are shown as investments in unconsolidated affiliates in our consolidated statements of cash flows . story_separator_special_tag 57 year ended december 31 , 2018 vs. year ended december 31 , 2017 total operating revenues — total operating revenues increased $ 1,360 million in 2018 compared to 2017 primarily as a result of the following : $ 1,257 million increase for our logistics and marketing segment primarily due to higher ngl and crude prices , higher gas and ngl sales volumes which impacts both sales and purchases , partially offset by lower natural gas prices , unfavorable commodity derivative activity and the implementation of asc 606 ; and $ 376 million increase for our gathering and processing segment due to higher ngl and crude prices , higher gas and ngl sales volumes impacting both sales and purchases due to increased drilling activity in our eagle ford system and the impact of hurricane harvey in 2017 in the south region , growth projects primarily related to our dj basin system in the north region and increased volumes , improved operational performance in our midcontinent region and favorable commodity derivative activity . these increases were partially offset by lower natural gas prices , the sale of our douglas gathering system in june 2017 and the implementation of asc 606 ; these increases were partially offset by : $ 273 million change in inter-segment eliminations , which relate to sales of gas and ngl volumes from our gathering and processing segment to our logistics and marketing segment , primarily due to higher gas and ngl sales volume , higher commodity prices and the implementation of asc 606. total purchases — total purchases increased $ 1,134 million in 2018 compared to 2017 primarily as a result of the following : $ 1,232 million increase for our logistics and marketing segment for the reasons discussed above . $ 175 million increase for our gathering and processing segment for the reasons discussed above ; these increases were partially offset by : $ 273 million change in inter-segment eliminations , which relate to sales of gas and ngl volumes from our gathering and processing segment to our logistics and marketing segment , primarily due to higher gas and ngl sales volumes and higher commodity prices and the implementation of asc 606 ; operating and maintenance expense — operating and maintenance expense increased in 2018 compared to 2017 primarily as a result of increased reliability spending , planned maintenance spending associated with anticipated volume growth and costs associated with the ramp-up of our mewbourn 3 plant . general and administrative expense — general and administrative expense decreased in 2018 compared to 2017 primarily as a result of lower contract services . asset impairments — asset impairments in 2018 represent the impairment of property , plant and equipment in our midcontinent and south regions . asset impairments in 2017 represent the impairment of property , plant and equipment and intangible assets in our south region . gain on sale of assets , net — the gain on sale in 2017 represents the sale of our douglas gathering system . loss from financing activities — loss from financing activities in 2018 represents a loss on redemption of senior notes . earnings from unconsolidated affiliates — earnings from unconsolidated affiliates increased in 2018 compared to 2017 primarily as a result of the expansion and volume ramp up of the sand hills ngl pipeline and higher volumes on the southern hills ngl pipeline in our logistics and marketing segment partially offset by a decrease from discovery in our gathering and processing segment primarily due to lower production volumes from two offshore wells . interest expense - interest expense decreased in 2018 compared to 2017 as a result of higher capitalized interest and a lower effective interest rate . net income attributable to partners — net income attributable to partners increased in 2018 compared to 2017 for the reasons discussed above . gross margin — gross margin increased $ 226 million in 2018 compared to 2017 primarily as a result of the following : 58 $ 201 million increase for our gathering and processing segment primarily related to increased volumes from increased drilling activity in our eagle ford system and the impact of hurricane harvey in 2017 in the south region , growth projects primarily related to our dj basin system in the north region , increased volumes and improved operational performance in the midcontinent region , favorable commodity derivative activity and higher commodity prices . these increases were partially offset by lower volumes in our permian region due to weather impacting operations , a third-party line strike and operational factors and the sale of our douglas gathering system in june 2017 ; $ 25 million increase for our logistics and marketing segment primarily related to higher gas marketing margins due to favorable commodity spreads primarily associated with guadalupe and higher ngl marketing margins and transported volumes , partially offset by unfavorable commodity derivative activity , lower margins on wholesale propane and the expiration of a commercial arrangement . year ended december 31 , 2017 vs. year ended december 31 , 2016 total operating revenues — total operating revenues increased $ 1,569 million in 2017 compared to 2016 primarily as a result of the following : $ 1,571 million increase for our logistics and marketing segment primarily due to increased commodity prices and favorable commodity derivative activity , partially offset by lower gas and ngl sales volumes and the sale of our northern louisiana system ; $ 977 million increase for our gathering and processing segment primarily due to higher commodity prices , higher gas and ngl sales volumes primarily related to our north region which impacts both sales and purchases , and higher transportation , processing and other , primarily related to fee based contract realignment efforts . these increases were partially offset by lower gas and ngl sales volumes in the south , midcontinent and permian regions , unfavorable commodity derivative activity and the sale of our northern louisiana system and douglas gathering system ; these increases were partially

as a result , the volume of one-to-four family loans produced was lower in 2014 than it was in the prior year . the impact of market interest rates on our multi-family and commercial real estate lending is far less overt than the impact on our production of one-to-four family mortgage loans . because the multi-family and commercial real estate loans we produce generate prepayment penalty income when they repay , the impact of repayment activity can be especially meaningful . while prepayment penalty income reached $ 136.8 million in 2013—the third consecutive year in which we established a new record—the level declined to $ 86.8 million in 2014. also less overt , but nonetheless having an impact on our operations , has been the significant increase in regulation and supervision required under the dodd-frank wall street reform and consumer protection act of 2010 ( the “dodd-frank act” or , more simply “dodd-frank” ) . for example , as a bank holding company with assets in the range of $ 10 billion to $ 50 billion , we were required to submit our first dodd-frank act stress test ( “dfast” ) report , including the results of our stress tests , to the frb in march 2014. our second dfast report will be submitted later this month ( i.e . , march 2015 ) , and the results of our stress tests will be disclosed in june . with assets of $ 41.2 billion at december 31 , 2010 , and a fundamental focus on growth through acquisition , we began in 2011 to prepare for the possibility of exceeding the threshold for classification as a “systemically important financial institution” ( “sifi” ) as such term is defined by the dodd-frank act . since then , we have invested significant human , technological , and financial resources into our enterprise risk management program , while also strengthening our corporate governance policies , procedures , and practices . we also have continued to grow our balance sheet . at december 31 , 2014 , we recorded total assets of $ 48.6 billion , a $ 1.9 billion , or 4.0 % , increase from the balance at december 31 , 2013. essentially , a bank is designated a “sifi” when the average of its total consolidated assets over the four most recent quarters exceeds $ 50 billion . in the third quarter of 2014 , with our assets drawing closer to $ 50 billion , we decided to manage our assets below that level for the near-term as we continue to evaluate the impact of the sifi threshold being crossed . accordingly , in the fourth quarter of 2014 , we reduced our loans by $ 601.0 million through a combination of sales and participations , and our securities by $ 354.8 million through a combination of sales and calls . these reductions were largely offset by an increase in the production of multi-family loans and specialty finance loans and leases for portfolio . while the costs of complying with dodd-frank have added meaningfully to our operating expenses , the impact was more than offset in 2014 by a decline in our fdic deposit insurance assessments and the expenses associated with the management and sale of foreclosed real estate , as the quality of our assets continued to improve . reflecting our unique lending niche and our conservative underwriting standards , net charge-offs declined $ 14.9 million from the year-earlier level to $ 2.1 million in 2014. in addition , non-performing non-covered assets declined $ 36.0 million year-over-year to $ 138.9 million at the end of this december , the lowest level we 've recorded since december 31 , 2008. reflecting these improvements , net charge-offs represented 0.01 % of average loans in 2014 , and non-performing non-covered assets represented 0.30 % of total non-covered assets at year-end . while the quality of our assets generally reflects the nature of our primary lending niche and the benefit of conservative underwriting , it also reflects certain economic improvements that occurred in 2014. those improvements are reflected in the economic data cited on the following page . 43 the following table presents the downward trend in unemployment rates , as reported by the u.s. department of labor , both nationally and in the various markets that comprise our footprint , for the months indicated : replace_table_token_6_th yet another key economic indicator is the consumer price index ( the “cpi” ) , which measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services . the following table indicates the change in the cpi for the twelve months ended at each of the indicated dates : for the twelve months ended december 2014 december 2013 change in prices : 0.8 % 1.5 % the recovery is also reflected in the s & p/case-shiller home price index for the twelve months ended december 2014 and 2013. home prices rose 4.6 % across the u.s. in the twelve months ended december 2014 , as compared to 11.3 % in the year-earlier twelve months . given the impact that home prices have on residential mortgage lending , we believe the s & p/case-shiller home price index is a particularly important economic indicator for the company . in addition , the volume of new home sales nationwide was at a seasonally adjusted annual rate of 481,000 in december 2014 , according to estimates set forth in a u.s. commerce department report issued on january 27 , 2015. the december 2014 rate was 8.8 % higher than the rate reported in december 2013. yet another pertinent economic indicator is the residential rental vacancy rate in new york , as reported by the u.s. department of commerce , and the office vacancy rate in manhattan , as reported by a leading commercial real estate broker , jones lang lasalle . story_separator_special_tag if there is a decline in fair value of a security below its carrying amount and we have the intent to sell it , or it is more likely than not that we may be required to sell the security before recovery , the entire amount of the decline in fair value is charged to earnings . goodwill impairment goodwill is presumed to have an indefinite useful life and is tested for impairment , rather than amortized , at the reporting unit level , at least once a year . we performed our annual goodwill impairment test as of december 31 , 2014 and found no indication of goodwill impairment at that date . goodwill would be tested in less than one year 's time if there were a “triggering event.” there were no triggering events identified during the twelve months ended december 31 , 2014. the goodwill impairment analysis is a two-step test . however , a company can , under accounting standards update ( “asu” ) no . 2011-08 , “testing goodwill for impairment , ” first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test . under this amendment , an entity would not be required to calculate the fair value of a reporting unit unless the entity determined , based on a qualitative assessment , that it was more likely than not that its fair value was less than its carrying amount . the company did not elect to perform a qualitative assessment in 2014. the first step ( “step 1” ) is used to identify potential impairment , and involves comparing each reporting segment 's estimated fair value to its carrying amount , including goodwill . if the estimated fair value of a reporting segment exceeds its carrying amount , goodwill is not considered to be impaired . if the carrying amount exceeds the estimated fair value , there is an indication of potential impairment and the second step ( “step 2” ) is performed to measure the amount . step 2 involves calculating an implied fair value of goodwill for each reporting segment for which impairment was indicated in step 1. the implied fair value of goodwill is determined in a manner similar to the amount of goodwill calculated in a business combination , i.e . , by measuring the excess of the estimated fair value of the reporting segment , as determined in step 1 , over the aggregate estimated fair values of the individual assets , liabilities , and identifiable intangibles , as if the reporting segment were being acquired in a business combination at the impairment test date . if the implied fair value of goodwill exceeds the carrying amount of goodwill assigned to the reporting segment , there is no impairment . if the carrying amount of goodwill assigned to a reporting segment exceeds the implied fair value of the goodwill , an impairment charge is recorded for the excess . an impairment loss can not exceed the carrying amount of goodwill assigned to a reporting segment , and the loss establishes a new basis in the goodwill . subsequent reversal of goodwill impairment losses is not permitted . quoted market prices in active markets are the best evidence of fair value and are used as the basis for measurement , when available . other acceptable valuation methods include present-value measurements based on multiples of earnings or revenues , or similar performance measures . differences in the identification of reporting units and in valuation techniques could result in materially different evaluations of impairment . for the purpose of goodwill impairment testing , management has determined that the company has two reporting segments : banking operations and residential mortgage banking . all of our recorded goodwill has resulted from prior acquisitions and , accordingly , is attributed to banking operations . there is no goodwill associated with residential mortgage banking , as this segment was acquired in our fdic-assisted amtrust acquisition , which resulted in a bargain purchase gain . in order to perform our annual goodwill impairment test , we determined the carrying value of the banking operations segment to be the carrying value of the company and compared it to the fair value of the company . 48 income taxes in estimating income taxes , management assesses the relative merits and risks of the tax treatment of transactions , taking into account statutory , judicial , and regulatory guidance in the context of our tax position . in this process , management also relies on tax opinions , recent audits , and historical experience . although we use the best available information to record income taxes , underlying estimates and assumptions can change over time as a result of unanticipated events or circumstances such as changes in tax laws and judicial guidance influencing our overall or transaction-specific tax position . we recognize deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases , and the carryforward of certain tax attributes such as net operating losses . a valuation allowance is maintained for deferred tax assets that we estimate are more likely than not to be unrealizable , based on available evidence at the time the estimate is made . in assessing the need for a valuation allowance , we estimate future taxable income , considering the prudence and feasibility of tax planning strategies and the realizability of tax loss carryforwards . valuation allowances related to deferred tax assets can be affected by changes to tax laws , statutory tax rates , and future taxable income levels . in the event we were to determine that we would not be able to realize all or a portion of our net deferred tax assets in the future , we would reduce such amounts through a charge to income tax expense in the period in

liquidity we manage our liquidity to ensure that our cash flows are sufficient to support our operations , and to compensate for any temporary mismatches between sources and uses of funds caused by variable loan and deposit demand . we monitor our liquidity daily to ensure that sufficient funds are available to meet our financial obligations . our most liquid assets are cash and cash equivalents , which totaled $ 564.2 million and $ 644.6 million , respectively , at december 31 , 2014 and 2013. as in the past , our loan and securities portfolios provided meaningful liquidity in 2014 , with cash flows from the repayment and sale of loans totaling $ 11.3 billion and cash flows from the repayment and sale of securities totaling $ 1.3 billion . additional liquidity stems from the retail , institutional , and municipal deposits we gather or acquire through business combinations , and from our use of wholesale funding sources , including brokered deposits and wholesale borrowings . in addition , we have access to the banks ' approved lines of credit with various counterparties , including the fhlb-ny . the availability of these wholesale funding sources is generally based on the amount of mortgage loan collateral available under a blanket lien we have pledged to the respective institutions and , to a lesser extent , the amount of available securities that may be pledged to collateralize our borrowings . at december 31 , 2014 , our available borrowing capacity with the fhlb-ny was $ 7.9 billion . in addition , the community bank and the commercial bank had available-for-sale securities of $ 171.8 million , combined , at that date . furthermore , the community bank has an agreement with the federal reserve bank of new york ( the “frb-ny” ) that enables it to access the discount window as a further means of enhancing its liquidity if need be . in connection with that agreement , the community bank has pledged certain loans and securities to collateralize any funds it may borrow .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 we manage our liquidity to ensure that our cash flows are sufficient to support our operations , and to compensate for any temporary mismatches between sources and uses of funds caused by variable loan and deposit demand . we monitor our liquidity daily to ensure that sufficient funds are available to meet our financial obligations . our most liquid assets are cash and cash equivalents , which totaled $ 564.2 million and $ 644.6 million , respectively , at december 31 , 2014 and 2013. as in the past , our loan and securities portfolios provided meaningful liquidity in 2014 , with cash flows from the repayment and sale of loans totaling $ 11.3 billion and cash flows from the repayment and sale of securities totaling $ 1.3 billion . additional liquidity stems from the retail , institutional , and municipal deposits we gather or acquire through business combinations , and from our use of wholesale funding sources , including brokered deposits and wholesale borrowings . in addition , we have access to the banks ' approved lines of credit with various counterparties , including the fhlb-ny . the availability of these wholesale funding sources is generally based on the amount of mortgage loan collateral available under a blanket lien we have pledged to the respective institutions and , to a lesser extent , the amount of available securities that may be pledged to collateralize our borrowings . at december 31 , 2014 , our available borrowing capacity with the fhlb-ny was $ 7.9 billion . in addition , the community bank and the commercial bank had available-for-sale securities of $ 171.8 million , combined , at that date . furthermore , the community bank has an agreement with the federal reserve bank of new york ( the “frb-ny” ) that enables it to access the discount window as a further means of enhancing its liquidity if need be . in connection with that agreement , the community bank has pledged certain loans and securities to collateralize any funds it may borrow . ``` Suspicious Activity Report : as a result , the volume of one-to-four family loans produced was lower in 2014 than it was in the prior year . the impact of market interest rates on our multi-family and commercial real estate lending is far less overt than the impact on our production of one-to-four family mortgage loans . because the multi-family and commercial real estate loans we produce generate prepayment penalty income when they repay , the impact of repayment activity can be especially meaningful . while prepayment penalty income reached $ 136.8 million in 2013—the third consecutive year in which we established a new record—the level declined to $ 86.8 million in 2014. also less overt , but nonetheless having an impact on our operations , has been the significant increase in regulation and supervision required under the dodd-frank wall street reform and consumer protection act of 2010 ( the “dodd-frank act” or , more simply “dodd-frank” ) . for example , as a bank holding company with assets in the range of $ 10 billion to $ 50 billion , we were required to submit our first dodd-frank act stress test ( “dfast” ) report , including the results of our stress tests , to the frb in march 2014. our second dfast report will be submitted later this month ( i.e . , march 2015 ) , and the results of our stress tests will be disclosed in june . with assets of $ 41.2 billion at december 31 , 2010 , and a fundamental focus on growth through acquisition , we began in 2011 to prepare for the possibility of exceeding the threshold for classification as a “systemically important financial institution” ( “sifi” ) as such term is defined by the dodd-frank act . since then , we have invested significant human , technological , and financial resources into our enterprise risk management program , while also strengthening our corporate governance policies , procedures , and practices . we also have continued to grow our balance sheet . at december 31 , 2014 , we recorded total assets of $ 48.6 billion , a $ 1.9 billion , or 4.0 % , increase from the balance at december 31 , 2013. essentially , a bank is designated a “sifi” when the average of its total consolidated assets over the four most recent quarters exceeds $ 50 billion . in the third quarter of 2014 , with our assets drawing closer to $ 50 billion , we decided to manage our assets below that level for the near-term as we continue to evaluate the impact of the sifi threshold being crossed . accordingly , in the fourth quarter of 2014 , we reduced our loans by $ 601.0 million through a combination of sales and participations , and our securities by $ 354.8 million through a combination of sales and calls . these reductions were largely offset by an increase in the production of multi-family loans and specialty finance loans and leases for portfolio . while the costs of complying with dodd-frank have added meaningfully to our operating expenses , the impact was more than offset in 2014 by a decline in our fdic deposit insurance assessments and the expenses associated with the management and sale of foreclosed real estate , as the quality of our assets continued to improve . reflecting our unique lending niche and our conservative underwriting standards , net charge-offs declined $ 14.9 million from the year-earlier level to $ 2.1 million in 2014. in addition , non-performing non-covered assets declined $ 36.0 million year-over-year to $ 138.9 million at the end of this december , the lowest level we 've recorded since december 31 , 2008. reflecting these improvements , net charge-offs represented 0.01 % of average loans in 2014 , and non-performing non-covered assets represented 0.30 % of total non-covered assets at year-end . while the quality of our assets generally reflects the nature of our primary lending niche and the benefit of conservative underwriting , it also reflects certain economic improvements that occurred in 2014. those improvements are reflected in the economic data cited on the following page . 43 the following table presents the downward trend in unemployment rates , as reported by the u.s. department of labor , both nationally and in the various markets that comprise our footprint , for the months indicated : replace_table_token_6_th yet another key economic indicator is the consumer price index ( the “cpi” ) , which measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services . the following table indicates the change in the cpi for the twelve months ended at each of the indicated dates : for the twelve months ended december 2014 december 2013 change in prices : 0.8 % 1.5 % the recovery is also reflected in the s & p/case-shiller home price index for the twelve months ended december 2014 and 2013. home prices rose 4.6 % across the u.s. in the twelve months ended december 2014 , as compared to 11.3 % in the year-earlier twelve months . given the impact that home prices have on residential mortgage lending , we believe the s & p/case-shiller home price index is a particularly important economic indicator for the company . in addition , the volume of new home sales nationwide was at a seasonally adjusted annual rate of 481,000 in december 2014 , according to estimates set forth in a u.s. commerce department report issued on january 27 , 2015. the december 2014 rate was 8.8 % higher than the rate reported in december 2013. yet another pertinent economic indicator is the residential rental vacancy rate in new york , as reported by the u.s. department of commerce , and the office vacancy rate in manhattan , as reported by a leading commercial real estate broker , jones lang lasalle . story_separator_special_tag if there is a decline in fair value of a security below its carrying amount and we have the intent to sell it , or it is more likely than not that we may be required to sell the security before recovery , the entire amount of the decline in fair value is charged to earnings . goodwill impairment goodwill is presumed to have an indefinite useful life and is tested for impairment , rather than amortized , at the reporting unit level , at least once a year . we performed our annual goodwill impairment test as of december 31 , 2014 and found no indication of goodwill impairment at that date . goodwill would be tested in less than one year 's time if there were a “triggering event.” there were no triggering events identified during the twelve months ended december 31 , 2014. the goodwill impairment analysis is a two-step test . however , a company can , under accounting standards update ( “asu” ) no . 2011-08 , “testing goodwill for impairment , ” first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test . under this amendment , an entity would not be required to calculate the fair value of a reporting unit unless the entity determined , based on a qualitative assessment , that it was more likely than not that its fair value was less than its carrying amount . the company did not elect to perform a qualitative assessment in 2014. the first step ( “step 1” ) is used to identify potential impairment , and involves comparing each reporting segment 's estimated fair value to its carrying amount , including goodwill . if the estimated fair value of a reporting segment exceeds its carrying amount , goodwill is not considered to be impaired . if the carrying amount exceeds the estimated fair value , there is an indication of potential impairment and the second step ( “step 2” ) is performed to measure the amount . step 2 involves calculating an implied fair value of goodwill for each reporting segment for which impairment was indicated in step 1. the implied fair value of goodwill is determined in a manner similar to the amount of goodwill calculated in a business combination , i.e . , by measuring the excess of the estimated fair value of the reporting segment , as determined in step 1 , over the aggregate estimated fair values of the individual assets , liabilities , and identifiable intangibles , as if the reporting segment were being acquired in a business combination at the impairment test date . if the implied fair value of goodwill exceeds the carrying amount of goodwill assigned to the reporting segment , there is no impairment . if the carrying amount of goodwill assigned to a reporting segment exceeds the implied fair value of the goodwill , an impairment charge is recorded for the excess . an impairment loss can not exceed the carrying amount of goodwill assigned to a reporting segment , and the loss establishes a new basis in the goodwill . subsequent reversal of goodwill impairment losses is not permitted . quoted market prices in active markets are the best evidence of fair value and are used as the basis for measurement , when available . other acceptable valuation methods include present-value measurements based on multiples of earnings or revenues , or similar performance measures . differences in the identification of reporting units and in valuation techniques could result in materially different evaluations of impairment . for the purpose of goodwill impairment testing , management has determined that the company has two reporting segments : banking operations and residential mortgage banking . all of our recorded goodwill has resulted from prior acquisitions and , accordingly , is attributed to banking operations . there is no goodwill associated with residential mortgage banking , as this segment was acquired in our fdic-assisted amtrust acquisition , which resulted in a bargain purchase gain . in order to perform our annual goodwill impairment test , we determined the carrying value of the banking operations segment to be the carrying value of the company and compared it to the fair value of the company . 48 income taxes in estimating income taxes , management assesses the relative merits and risks of the tax treatment of transactions , taking into account statutory , judicial , and regulatory guidance in the context of our tax position . in this process , management also relies on tax opinions , recent audits , and historical experience . although we use the best available information to record income taxes , underlying estimates and assumptions can change over time as a result of unanticipated events or circumstances such as changes in tax laws and judicial guidance influencing our overall or transaction-specific tax position . we recognize deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases , and the carryforward of certain tax attributes such as net operating losses . a valuation allowance is maintained for deferred tax assets that we estimate are more likely than not to be unrealizable , based on available evidence at the time the estimate is made . in assessing the need for a valuation allowance , we estimate future taxable income , considering the prudence and feasibility of tax planning strategies and the realizability of tax loss carryforwards . valuation allowances related to deferred tax assets can be affected by changes to tax laws , statutory tax rates , and future taxable income levels . in the event we were to determine that we would not be able to realize all or a portion of our net deferred tax assets in the future , we would reduce such amounts through a charge to income tax expense in the period in

income before income taxes from mfg , net of the intercompany mfg elimination , offsets the merchandise amortization costs incurred by the us and canadian rental and cleaning reporting segment as the merchandise costs of this reporting segment are amortized and recognized based on inventories purchased from mfg at the transfer price which is above our manufacturing cost . the corporate operating segment consists of costs associated with our distribution center , sales and marketing , information systems , engineering , materials management , manufacturing planning , finance , budgeting , human resources , other general and administrative costs and interest expense . the revenues generated from the corporate operating segment represent certain direct sales made directly from our distribution center . the products sold by this operating segment are the same products rented and sold by the us and canadian rental and cleaning reporting segment . in the segment disclosures in note 15 , “ segment reporting ” , of our consolidated financial statements , no assets or capital expenditures are presented for the corporate operating segment as no assets are allocated to this operating segment in the information reviewed by our chief executive officer . however , depreciation and amortization expense related to certain assets are reflected in income from operations and income before income taxes for the corporate operating segment . the assets that give rise to this depreciation and amortization are included in the total assets of the us and canadian rental and cleaning reporting segment as this is how they are tracked and reviewed by us . we refer to our us and canadian rental and cleaning , mfg , and corporate segments combined as our “ core laundry operations ” . the specialty garments operating segment purchases , rents , cleans , delivers and sells , specialty garments and non-garment items primarily for nuclear and cleanroom applications . the first aid operating segment sells first aid cabinet services and other safety supplies . approximately 89 % of our revenues in fiscal 2012 were derived from us and canadian rental and cleaning , and corporate . a key driver of this business is the number of workers employed by our customers . our revenues are directly impacted by fluctuations in these employment levels . revenues from specialty garments , which accounted for 8 % of our 2012 revenues , increase during outages and refueling by nuclear power plants , as garment usage increases at these times . first aid represented 3 % of our total revenue in fiscal 2012. critical accounting policies and estimates we believe the following critical accounting policies reflect our more significant judgments and estimates used in the preparation of our consolidated financial statements . use of estimates we prepare our financial statements in conformity with us gaap , which requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes . these estimates are based on historical information , current trends , and information available from other sources . the actual results could differ from our estimates . foreign currency translation the functional currency of our foreign operations is the local country 's currency . transaction gains and losses , including gains and losses on our intercompany transactions , are included in other expense ( income ) , in the accompanying consolidated statements of income . assets and liabilities of operations outside the united states are translated into u.s. dollars using period-end exchange rates . revenues and expenses are translated at the average exchange rates in effect during each month of the fiscal year . the effects of foreign currency translation adjustments are included in shareholders ' equity as a component of accumulated other comprehensive income in the accompanying consolidated balance sheets . revenue recognition and allowance for doubtful accounts we recognize revenue from rental operations in the period in which the services are provided . direct sale revenue is recognized in the period in which the services are performed or when the product is shipped . our judgment and estimates are used in determining the collectability of accounts receivable and evaluating the adequacy of the allowance for doubtful accounts . we consider specific accounts receivable and historical bad debt experience , customer credit worthiness , current economic trends and the age of outstanding balances as part of our evaluation . changes in our estimates are reflected in the period they become known . if the financial condition of our customers were to deteriorate , resulting in an impairment of their ability to make payments , additional allowances may be required . material changes in our estimates may result in significant differences in the amount and timing of bad debt expense recognition for any given period . our revenues do not include taxes we collect from our customers and remit to governmental authorities . inventories and rental merchandise in service our inventories are stated at the lower of cost or market value , net of any reserve for excess and obsolete inventory . judgments and estimates are used in determining the likelihood that new goods on hand can be sold to our customers or used in our rental operations . historical inventory usage and current revenue trends are considered in estimating both excess and obsolete inventories . if actual product demand and market conditions are less favorable than the amount we projected , additional inventory write-downs may be required . we use the first-in , first-out ( “ fifo ” ) method to value our inventories , which primarily consist of finished goods . rental merchandise in service is being amortized on a straight-line basis over the estimated service lives of the merchandise , which range from 6 to 36 months . in establishing estimated lives for merchandise in service , our management considers historical experience and the intended use of the merchandise . story_separator_special_tag depreciation and amortization our depreciation and amortization expense was $ 66.4 million , or 5.3 % of revenues , in fiscal 2012 compared to $ 64.7 million , or 5.7 % of revenues in fiscal 2011. depreciation and amortization expense increased due to capital expenditure and acquisition activity but decreased as a percentage of revenues due to the strong revenue growth we experienced in fiscal 2012. income from operations for the year ended august 25 , 2012 , the changes in revenues in our core laundry operations , specialty garments and first aid segments , as well as the changes in our costs discussed above , resulted in the following changes in our income from operations : replace_table_token_5_th other expense ( income ) other expense ( income ) , which includes interest expense , interest income and foreign currency exchange ( gain ) loss , decreased by $ 3.0 million to $ 0.4 million in fiscal 2012 compared to $ 3.4 million in fiscal 2011. in fiscal 2012 , we had net interest income of $ 0.6 million compared to net interest expense of $ 4.2 million in fiscal 2011 primarily due to our repayment of $ 75.0 million in fixed-rate notes in june 2011 as well as the effect of an interest rate swap that matured in march 2011. this benefit was offset by foreign exchange losses of $ 1.0 million in fiscal 2012 compared to foreign exchange gains of $ 0.8 million in fiscal 2011. provision for income taxes our effective tax rate was 37.0 % for fiscal 2012 compared to 36.6 % for fiscal 2011. this increase was primarily due to the fact that the 2011 rate benefited from the reversal of tax contingency reserves related to the resolution of certain state tax audits . fiscal year ended august 27 , 2011 compared with fiscal year ended august 28 , 2010 revenues replace_table_token_6_th in fiscal 2011 , our consolidated revenues increased by $ 108.2 million from the comparable period in 2010 , or 10.5 % . this increase was primarily driven by an $ 89.1 million increase in our core laundry operations . core laundry revenues increased to $ 997.0 million in fiscal 2011 from $ 907.9 million in fiscal 2010 , or 9.8 % . this increase was primarily attributable to positive organic growth of 7.7 % . organic growth is comprised of new sales , additions to our existing customer base and price increases , offset by lost accounts and reductions to our existing customer base . organic growth in fiscal 2011 was impacted by improved sales representative productivity compared to fiscal 2010. in addition , wearer levels at our existing accounts increased slightly during the year . our positive organic growth in our core laundry operations was accompanied by positive acquisition-related growth of 1.6 % and the effect of a favorable fluctuation in the canadian foreign exchange rate , which accounted for a 0.5 % increase in revenue during fiscal year 2011. specialty garments ' revenue increased from $ 88.0 million in fiscal 2010 to $ 103.3 million in fiscal 2011 , or 17.4 % . this increase was primarily the result of an increase in power reactor outages supplemented by increased revenues from reactor rebuild projects . higher direct sales as well as increased revenues from our cleanroom operations also contributed to the revenue growth . first aid revenues increased 12.5 % , from $ 30.1 million in fiscal 2010 to $ 33.8 million in fiscal 2011. this increase was primarily the result of better performance from the segment 's wholesale distribution and pill packaging operations . cost of revenues cost of revenues increased from 60.5 % of revenues , or $ 620.7 million , in fiscal 2010 to 62.8 % of revenues , or $ 712.3 million , in fiscal 2011. this increase was primarily the result of higher merchandise costs , as well as the effect of higher fuel costs associated with operating our fleet of delivery trucks . in addition , overall distribution costs , including freight costs , were also higher as a percentage of revenues due to an increase in the number of units being shipped to our plants nationwide . partially offsetting these higher costs were lower payroll-related costs as a percentage of revenues . selling and administrative expense our selling and administrative expenses increased to $ 233.1 million in fiscal 2011 from $ 213.5 million in fiscal 2010 , although this reflected a slight decrease in these expenses as a percentage of revenues to 20.6 % of revenues in fiscal 2011 from 20.8 % of revenues in fiscal 2010. this decrease as a percentage of revenues was due principally to lower payroll and payroll-related costs as a percent of revenues , primarily due to the strong revenue growth we experienced in fiscal 2011 , which was partially offset by a $ 2.7 million increase in share-based compensation expense related to a grant of restricted stock to our chief executive officer in fiscal 2010. depreciation and amortization our depreciation and amortization expense increased to $ 64.7 million , or 5.7 % of revenues , in fiscal 2011 from $ 61.5 million , or 6.0 % of revenues , in fiscal 2010. the increase in depreciation and amortization expense was due to capital expenditure and acquisition activity in earlier periods . income from operations for the year ended august 27 , 2011 , the changes in revenues in our core laundry operations , specialty garments and first aid segments , as well as the changes in our costs discussed above , resulted in the following changes in our income from operations : replace_table_token_7_th other expense ( income ) other expense ( income ) , which includes interest expense , interest income and foreign currency exchange ( gain ) loss , decreased by $ 4.0 million to $ 3.4 million in fiscal 2011 compared to $ 7.4 million in fiscal 2010. net interest expense decreased from $ 6.7 million

liquidity and capital resources general for the fiscal year ended august 25 , 2012 , we had a net increase in cash and cash equivalents of $ 71.3 million . as of august 25 , 2012 , we had cash and cash equivalents of $ 120.1 million and working capital of $ 342.2 million . we believe that current cash and cash equivalent balances , cash generated from operations and amounts available under our credit agreement ( defined below ) will be sufficient to meet our current anticipated working capital and capital expenditure requirements for at least the next 12 months . sources and uses of cash during the fiscal year ended august 25 , 2012 , we generated cash from operating activities of $ 161.7 million resulting primarily from net income of $ 95.0 million , net of non-cash amounts charged for depreciation , amortization and accretion of $ 67.9 million and share based compensation of $ 6.7 million . we also generated cash as a result of decreases in prepaid taxes of $ 11.4 million , increases in accounts payables and accruals of $ 1.8 million and decreases in inventories of $ 0.6 million . our cash inflows were partially offset by increases in rental merchandise in service of $ 12.0 million , increases in accounts receivables of $ 7.6 million , and increases in prepaid expenses of $ 1.8 million . we used cash to , among other things , invest $ 74.5 million in capital expenditures and pay down debt in the amount of approximately $ 15.4 million . we have accumulated $ 56.3 million in cash outside the united states that is expected to be invested indefinitely outside the united states . if these funds were distributed to the u.s. in the form of dividends , the company would be subject to additional u.s. income 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. ```liquidity and capital resources general for the fiscal year ended august 25 , 2012 , we had a net increase in cash and cash equivalents of $ 71.3 million . as of august 25 , 2012 , we had cash and cash equivalents of $ 120.1 million and working capital of $ 342.2 million . we believe that current cash and cash equivalent balances , cash generated from operations and amounts available under our credit agreement ( defined below ) will be sufficient to meet our current anticipated working capital and capital expenditure requirements for at least the next 12 months . sources and uses of cash during the fiscal year ended august 25 , 2012 , we generated cash from operating activities of $ 161.7 million resulting primarily from net income of $ 95.0 million , net of non-cash amounts charged for depreciation , amortization and accretion of $ 67.9 million and share based compensation of $ 6.7 million . we also generated cash as a result of decreases in prepaid taxes of $ 11.4 million , increases in accounts payables and accruals of $ 1.8 million and decreases in inventories of $ 0.6 million . our cash inflows were partially offset by increases in rental merchandise in service of $ 12.0 million , increases in accounts receivables of $ 7.6 million , and increases in prepaid expenses of $ 1.8 million . we used cash to , among other things , invest $ 74.5 million in capital expenditures and pay down debt in the amount of approximately $ 15.4 million . we have accumulated $ 56.3 million in cash outside the united states that is expected to be invested indefinitely outside the united states . if these funds were distributed to the u.s. in the form of dividends , the company would be subject to additional u.s. income taxes . ``` Suspicious Activity Report : income before income taxes from mfg , net of the intercompany mfg elimination , offsets the merchandise amortization costs incurred by the us and canadian rental and cleaning reporting segment as the merchandise costs of this reporting segment are amortized and recognized based on inventories purchased from mfg at the transfer price which is above our manufacturing cost . the corporate operating segment consists of costs associated with our distribution center , sales and marketing , information systems , engineering , materials management , manufacturing planning , finance , budgeting , human resources , other general and administrative costs and interest expense . the revenues generated from the corporate operating segment represent certain direct sales made directly from our distribution center . the products sold by this operating segment are the same products rented and sold by the us and canadian rental and cleaning reporting segment . in the segment disclosures in note 15 , “ segment reporting ” , of our consolidated financial statements , no assets or capital expenditures are presented for the corporate operating segment as no assets are allocated to this operating segment in the information reviewed by our chief executive officer . however , depreciation and amortization expense related to certain assets are reflected in income from operations and income before income taxes for the corporate operating segment . the assets that give rise to this depreciation and amortization are included in the total assets of the us and canadian rental and cleaning reporting segment as this is how they are tracked and reviewed by us . we refer to our us and canadian rental and cleaning , mfg , and corporate segments combined as our “ core laundry operations ” . the specialty garments operating segment purchases , rents , cleans , delivers and sells , specialty garments and non-garment items primarily for nuclear and cleanroom applications . the first aid operating segment sells first aid cabinet services and other safety supplies . approximately 89 % of our revenues in fiscal 2012 were derived from us and canadian rental and cleaning , and corporate . a key driver of this business is the number of workers employed by our customers . our revenues are directly impacted by fluctuations in these employment levels . revenues from specialty garments , which accounted for 8 % of our 2012 revenues , increase during outages and refueling by nuclear power plants , as garment usage increases at these times . first aid represented 3 % of our total revenue in fiscal 2012. critical accounting policies and estimates we believe the following critical accounting policies reflect our more significant judgments and estimates used in the preparation of our consolidated financial statements . use of estimates we prepare our financial statements in conformity with us gaap , which requires management to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes . these estimates are based on historical information , current trends , and information available from other sources . the actual results could differ from our estimates . foreign currency translation the functional currency of our foreign operations is the local country 's currency . transaction gains and losses , including gains and losses on our intercompany transactions , are included in other expense ( income ) , in the accompanying consolidated statements of income . assets and liabilities of operations outside the united states are translated into u.s. dollars using period-end exchange rates . revenues and expenses are translated at the average exchange rates in effect during each month of the fiscal year . the effects of foreign currency translation adjustments are included in shareholders ' equity as a component of accumulated other comprehensive income in the accompanying consolidated balance sheets . revenue recognition and allowance for doubtful accounts we recognize revenue from rental operations in the period in which the services are provided . direct sale revenue is recognized in the period in which the services are performed or when the product is shipped . our judgment and estimates are used in determining the collectability of accounts receivable and evaluating the adequacy of the allowance for doubtful accounts . we consider specific accounts receivable and historical bad debt experience , customer credit worthiness , current economic trends and the age of outstanding balances as part of our evaluation . changes in our estimates are reflected in the period they become known . if the financial condition of our customers were to deteriorate , resulting in an impairment of their ability to make payments , additional allowances may be required . material changes in our estimates may result in significant differences in the amount and timing of bad debt expense recognition for any given period . our revenues do not include taxes we collect from our customers and remit to governmental authorities . inventories and rental merchandise in service our inventories are stated at the lower of cost or market value , net of any reserve for excess and obsolete inventory . judgments and estimates are used in determining the likelihood that new goods on hand can be sold to our customers or used in our rental operations . historical inventory usage and current revenue trends are considered in estimating both excess and obsolete inventories . if actual product demand and market conditions are less favorable than the amount we projected , additional inventory write-downs may be required . we use the first-in , first-out ( “ fifo ” ) method to value our inventories , which primarily consist of finished goods . rental merchandise in service is being amortized on a straight-line basis over the estimated service lives of the merchandise , which range from 6 to 36 months . in establishing estimated lives for merchandise in service , our management considers historical experience and the intended use of the merchandise . story_separator_special_tag depreciation and amortization our depreciation and amortization expense was $ 66.4 million , or 5.3 % of revenues , in fiscal 2012 compared to $ 64.7 million , or 5.7 % of revenues in fiscal 2011. depreciation and amortization expense increased due to capital expenditure and acquisition activity but decreased as a percentage of revenues due to the strong revenue growth we experienced in fiscal 2012. income from operations for the year ended august 25 , 2012 , the changes in revenues in our core laundry operations , specialty garments and first aid segments , as well as the changes in our costs discussed above , resulted in the following changes in our income from operations : replace_table_token_5_th other expense ( income ) other expense ( income ) , which includes interest expense , interest income and foreign currency exchange ( gain ) loss , decreased by $ 3.0 million to $ 0.4 million in fiscal 2012 compared to $ 3.4 million in fiscal 2011. in fiscal 2012 , we had net interest income of $ 0.6 million compared to net interest expense of $ 4.2 million in fiscal 2011 primarily due to our repayment of $ 75.0 million in fixed-rate notes in june 2011 as well as the effect of an interest rate swap that matured in march 2011. this benefit was offset by foreign exchange losses of $ 1.0 million in fiscal 2012 compared to foreign exchange gains of $ 0.8 million in fiscal 2011. provision for income taxes our effective tax rate was 37.0 % for fiscal 2012 compared to 36.6 % for fiscal 2011. this increase was primarily due to the fact that the 2011 rate benefited from the reversal of tax contingency reserves related to the resolution of certain state tax audits . fiscal year ended august 27 , 2011 compared with fiscal year ended august 28 , 2010 revenues replace_table_token_6_th in fiscal 2011 , our consolidated revenues increased by $ 108.2 million from the comparable period in 2010 , or 10.5 % . this increase was primarily driven by an $ 89.1 million increase in our core laundry operations . core laundry revenues increased to $ 997.0 million in fiscal 2011 from $ 907.9 million in fiscal 2010 , or 9.8 % . this increase was primarily attributable to positive organic growth of 7.7 % . organic growth is comprised of new sales , additions to our existing customer base and price increases , offset by lost accounts and reductions to our existing customer base . organic growth in fiscal 2011 was impacted by improved sales representative productivity compared to fiscal 2010. in addition , wearer levels at our existing accounts increased slightly during the year . our positive organic growth in our core laundry operations was accompanied by positive acquisition-related growth of 1.6 % and the effect of a favorable fluctuation in the canadian foreign exchange rate , which accounted for a 0.5 % increase in revenue during fiscal year 2011. specialty garments ' revenue increased from $ 88.0 million in fiscal 2010 to $ 103.3 million in fiscal 2011 , or 17.4 % . this increase was primarily the result of an increase in power reactor outages supplemented by increased revenues from reactor rebuild projects . higher direct sales as well as increased revenues from our cleanroom operations also contributed to the revenue growth . first aid revenues increased 12.5 % , from $ 30.1 million in fiscal 2010 to $ 33.8 million in fiscal 2011. this increase was primarily the result of better performance from the segment 's wholesale distribution and pill packaging operations . cost of revenues cost of revenues increased from 60.5 % of revenues , or $ 620.7 million , in fiscal 2010 to 62.8 % of revenues , or $ 712.3 million , in fiscal 2011. this increase was primarily the result of higher merchandise costs , as well as the effect of higher fuel costs associated with operating our fleet of delivery trucks . in addition , overall distribution costs , including freight costs , were also higher as a percentage of revenues due to an increase in the number of units being shipped to our plants nationwide . partially offsetting these higher costs were lower payroll-related costs as a percentage of revenues . selling and administrative expense our selling and administrative expenses increased to $ 233.1 million in fiscal 2011 from $ 213.5 million in fiscal 2010 , although this reflected a slight decrease in these expenses as a percentage of revenues to 20.6 % of revenues in fiscal 2011 from 20.8 % of revenues in fiscal 2010. this decrease as a percentage of revenues was due principally to lower payroll and payroll-related costs as a percent of revenues , primarily due to the strong revenue growth we experienced in fiscal 2011 , which was partially offset by a $ 2.7 million increase in share-based compensation expense related to a grant of restricted stock to our chief executive officer in fiscal 2010. depreciation and amortization our depreciation and amortization expense increased to $ 64.7 million , or 5.7 % of revenues , in fiscal 2011 from $ 61.5 million , or 6.0 % of revenues , in fiscal 2010. the increase in depreciation and amortization expense was due to capital expenditure and acquisition activity in earlier periods . income from operations for the year ended august 27 , 2011 , the changes in revenues in our core laundry operations , specialty garments and first aid segments , as well as the changes in our costs discussed above , resulted in the following changes in our income from operations : replace_table_token_7_th other expense ( income ) other expense ( income ) , which includes interest expense , interest income and foreign currency exchange ( gain ) loss , decreased by $ 4.0 million to $ 3.4 million in fiscal 2011 compared to $ 7.4 million in fiscal 2010. net interest expense decreased from $ 6.7 million

15 index interest rates and differentials the following table illustrates average yields on interest-earning assets and average rates on interest-bearing liabilities for the periods indicated : replace_table_token_5_th ( 1 ) includes nonaccrual loans . ( 2 ) net interest margin is computed by dividing net interest income by total average earning assets . ( 3 ) net interest spread represents average yield earned on interest-earning assets less the average rate paid on interest-bearing liabilities . 16 index replace_table_token_6_th ( 1 ) includes nonaccrual loans . ( 2 ) net interest margin is computed by dividing net interest income by total average earning assets . ( 3 ) net interest spread represents average yield earned on interest-earning assets less the average rate paid on interest-bearing liabilities . the table below sets forth the relative impact on net interest income of changes in the volume of earning assets and interest-bearing liabilities and changes in rates earned and paid by the company on such assets and liabilities . for purposes of this table , nonaccrual loans have been included in the average loan balances . replace_table_token_7_th ( 1 ) changes due to both volume and rate have been allocated to volume changes . 17 index comparison of interest income , interest expense and net interest margin the company 's primary source of revenue is interest income . interest income for the year ended december 31 , 2018 was $ 42.6 million , an increase from $ 37.4 million and $ 32.2 million , respectively , for the years ended december 31 , 2017 and 2016. the interest income was positively impacted by increased average earning assets primarily loans in 2018. average loans for the year increased 8.8 % over 2017 and 46.3 % over 2016. average earning asset yields declined for 2018 as competition for new quality loans continued to further compress the interest rates and the margin . in 2016 the margin benefited by 8 basis points from the payoff of one large nonaccrual loan relationship . interest expense for the year ended december 31 , 2018 increased compared to 2017 by $ 4.3 million and increased compared to 2016 by $ 5.9 million , respectively , to $ 9.0 million . the increase for 2018 compared to 2017 was mostly the result of the increased volume of deposits and increased rates paid on interest-bearing deposits . average interest-bearing deposits increased 8.3 % in 2018 compared to 2017. the average cost on interest-bearing deposits also increased to 128 basis points in 2018 compared to 77 basis points in 2017. the net impact of the changes in yields on interest-earning assets and the rates paid on interest-bearing liabilities was to decrease the margin for 2018 compared to 2017. the net interest margin was 4.07 % for 2018 compared to 4.34 % for 2017 and 4.60 % in 2016. net interest income increased by $ 1.0 million for 2018 compared to 2017 and $ 4.6 million , compared to 2016. total interest income increased by $ 5.2 million to $ 37.4 million in 2017 compared to 2016. the interest income was negatively impacted by decreased yields on earning assets in 2017 which decreased to 4.96 % compared to 5.09 % for 2016. the average yield on loans decreased to 5.24 % for 2017 compared to 5.43 % for 2016. total interest expense increased by $ 1.4 million in 2017 compared to 2016. this increase was primarily due to increased total cost of funds which include non-interest bearing deposits from 54 basis points for 2016 to 68 basis points for 2017. net interest income increased by $ 3.6 million for 2017 compared to 2016 . 18 index provision for loan losses the provision for loan losses in each period is reflected as a charge against earnings in that period . the provision for loan losses is equal to the amount required to maintain the allowance for loan losses at a level that is adequate to absorb probable losses inherent in the loan portfolio . the provision ( credit ) for loan losses was $ 14,000 in 2018 compared to $ 0.4 million in 2017 and ( $ 48,000 ) in 2016. the provision for loan losses for 2018 resulted primarily from loan growth and change in loan portfolio mix . the credit to provision for 2016 resulted from $ 0.6 million net recoveries , reduced historical loss factors partially offset by loan growth . as a result of improvements in credit quality , decreased historical loss rates , and net recoveries for the year , the ratio of the allowance for loan losses to loans held for investment decreased to 1.21 % at december 31 , 2018 from 1.24 % at december 31 , 2017. additional information regarding improved credit quality can be found beginning on page 26. the following table summarizes the provision ( credit ) , charge-offs ( recoveries ) by loan category for the year ended december 31 , 2018 , 2017 and 2016 : replace_table_token_8_th the percentage of net non-accrual loans ( net of government guarantees ) to the total loan portfolio has decreased to 0.44 % as of december 31 , 2018 from 0.61 % at december 31 , 2017 primarily due to commercial loan repayments .. the allowance for loan losses compared to net non-accrual loans has increased to 257 % as of december 31 , 2018 from 188 % as of december 31 , 2017. total past due loans were $ 3.7 million as of december 31 , 2018 compared to $ 0.4 million as of december 31 , 2017 . 19 index non-interest income the company earned non-interest income primarily through fees related to services provided to loan and deposit customers . the following tables present a summary of non-interest income for the periods presented : replace_table_token_9_th total non-interest income decreased $ 0.1 million for 2018 compared to 2017. the decrease was mostly from lower loan servicing and loan fee collection . story_separator_special_tag 24 index the following table presents total gross loans based on remaining scheduled contractual repayments of principal as of the periods indicated : replace_table_token_14_th concentrations of lending activities the company 's lending activities are primarily driven by the customers served in the market areas where the company has branch offices in the central coast of california . the company monitors concentrations within selected categories such as geography and product . the company makes manufactured housing , commercial , sba , construction , commercial real estate and consumer loans to customers through branch offices located in the company 's primary markets . the company 's business is concentrated in these areas and the loan portfolio includes significant credit exposure to the manufactured housing and commercial real estate markets of these areas . as of december 31 , 2018 and 2017 , manufactured housing loans comprised 32.2 % and 30.4 % , of total loans , respectively . as of december 31 , 2018 and 2017 , commercial real estate loans accounted for approximately 47.6 % and 48.3 % of total loans , respectively . approximately 33.8 % and 33.9 % of these commercial real estate loans were owner occupied at december 31 , 2018 and 2017 , respectively . substantially all of these loans are secured by first liens with an average loan to value ratios of 57.9 % and 55.0 % at december 31 , 2018 and 2017 , respectively . the company was within established policy limits at december 31 , 2018 and 2017. interest reserves interest reserves are generally established at the time of the loan origination as an expense item in the budget for a construction and land development loan . the company 's practice is to monitor the construction , sales and or leasing progress to determine the feasibility of ongoing construction and development projects . if , at any time during the life of the loan , the project is determined not to be viable , the company discontinues the use of the interest reserve and may take appropriate action to protect its collateral position via renegotiation and or legal action as deemed appropriate . at december 31 , 2018 , the company had 18 loans with an outstanding balance of $ 70.5 million with available interest reserves of $ 3.5 million . total construction and land loans are approximately 11 % and 8 % of the company 's loan portfolio and december 31 , 2018 and 2017 , respectively . impaired loans a loan is considered impaired when , based on current information , it is probable that the company will be unable to collect the scheduled payments of principal and or interest under the contractual terms of the loan agreement . factors considered by management in determining impairment include payment status , collateral value and the probability of collecting scheduled principal and or interest payments . loans that experience insignificant payment delays or payment shortfalls generally are not classified as impaired . management determines the significance of payment delays or payment shortfalls on a case-by-case basis . when determining the possibility of impairment , management considers the circumstances surrounding the loan and the borrower , including the length of the delay , the reasons for the delay , the borrower 's prior payment record and the amount of the shortfall in relation to the principal and interest owed . for collateral-dependent loans , the company uses the fair value of collateral method to measure impairment . all other loans are measured for impairment based on the present value of future cash flows . impairment is measured on a loan-by-loan basis for all impaired loans in the portfolio . a loan is considered a troubled debt restructured loan ( “ tdr ” ) when concessions have been made to the borrower and the borrower is in financial difficulty . these concessions include but are not limited to term extensions , rate reductions and principal reductions . forgiveness of principal is rarely granted and modifications for all classes of loans are predominantly term extensions . tdr loans are also considered impaired . 25 index the recorded investment in loans that are considered impaired is as follows : replace_table_token_15_th the following schedule summarizes impaired loans and specific reserves by loan class as of the periods indicated : replace_table_token_16_th $ 3.1 million of the above impaired loans are government guaranteed . 26 index replace_table_token_17_th $ 2.6 million of the above impaired loans are government guaranteed . total impaired loans increased by $ 3.3 million at december 31 , 2018 compared to december 31 , 2017. the manufactured housing impaired loans increased by $ 4.0 million and single family real estate impaired loans increased by $ 0.4 million in 2018 compared to 2017. both the sba and commercial real estate impaired loans decreased by $ 0.2 million each in 2018 compared to 2017. further offsetting the overall increase in impaired loans was a $ 0.8 million decrease in commercial impaired loans and a slight decrease to impaired heloc loans . impaired manufactured housing loans increased mainly due to extending the maturities on 37 existing loans totaling $ 5.2 million less pay-offs and pay-downs . impaired commercial loans decreased in 2018 compared to 2017 primarily due to the loan payoffs and payments partially offset by one new loan added for $ 0.1 million . the following schedule reflects recorded investment in certain types of loans at the dates indicated : replace_table_token_18_th the accrual of interest is discontinued when substantial doubt exists as to collectability of the loan ; generally at the time the loan is 90 days delinquent . any unpaid but accrued interest is reversed at that time . thereafter , interest income is usually no longer recognized on the loan . interest income may be recognized on impaired loans to the extent they are not past due by 90 days . interest on nonaccrual loans is accounted for on the cash-basis or cost-recovery method , until qualifying

liquidity liquidity is the ongoing ability to fund asset growth and business operations , to accommodate liability maturities and deposit withdrawals and meet contractual obligations through unconstrained access to funding at reasonable market rates . liquidity management involves forecasting funding requirements and maintaining sufficient capacity to meet the needs and accommodate fluctuations in asset and liability levels due to changes in our business operations or unanticipated events . 33 index the ability to have readily available funds sufficient to repay fully maturing liabilities is of primary importance to depositors , creditors and regulators . our liquidity , represented by cash and amounts due from banks , federal funds sold and non-pledged marketable securities , is a result of our operating , investing and financing activities and related cash flows . in order to ensure funds are available when necessary , on at least a quarterly basis , we project the amount of funds that will be required , and we strive to maintain relationships with a diversified customer base . liquidity requirements can also be met through short-term borrowings or the disposition of short-term assets . the company has federal funds borrowing lines at correspondent banks totaling $ 20.0 million . in addition , loans and securities are pledged to the fhlb providing $ 35.9 million in available borrowing capacity as of december 31 , 2018. loans pledged to the frb discount window provided $ 103.8 million in borrowing capacity . as of december 31 , 2018 , there were no outstanding borrowings from the frb . the company has established policies as well as analytical tools to manage liquidity . proper liquidity management ensures that sufficient funds are available to meet normal operating demands in addition to unexpected customer demand for funds , such as high levels of deposit withdrawals or increased loan demand , in a timely and cost effective manner . the most important factor in the preservation of liquidity is maintaining public confidence that facilitates the retention and growth of core deposits .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity liquidity is the ongoing ability to fund asset growth and business operations , to accommodate liability maturities and deposit withdrawals and meet contractual obligations through unconstrained access to funding at reasonable market rates . liquidity management involves forecasting funding requirements and maintaining sufficient capacity to meet the needs and accommodate fluctuations in asset and liability levels due to changes in our business operations or unanticipated events . 33 index the ability to have readily available funds sufficient to repay fully maturing liabilities is of primary importance to depositors , creditors and regulators . our liquidity , represented by cash and amounts due from banks , federal funds sold and non-pledged marketable securities , is a result of our operating , investing and financing activities and related cash flows . in order to ensure funds are available when necessary , on at least a quarterly basis , we project the amount of funds that will be required , and we strive to maintain relationships with a diversified customer base . liquidity requirements can also be met through short-term borrowings or the disposition of short-term assets . the company has federal funds borrowing lines at correspondent banks totaling $ 20.0 million . in addition , loans and securities are pledged to the fhlb providing $ 35.9 million in available borrowing capacity as of december 31 , 2018. loans pledged to the frb discount window provided $ 103.8 million in borrowing capacity . as of december 31 , 2018 , there were no outstanding borrowings from the frb . the company has established policies as well as analytical tools to manage liquidity . proper liquidity management ensures that sufficient funds are available to meet normal operating demands in addition to unexpected customer demand for funds , such as high levels of deposit withdrawals or increased loan demand , in a timely and cost effective manner . the most important factor in the preservation of liquidity is maintaining public confidence that facilitates the retention and growth of core deposits . ``` Suspicious Activity Report : 15 index interest rates and differentials the following table illustrates average yields on interest-earning assets and average rates on interest-bearing liabilities for the periods indicated : replace_table_token_5_th ( 1 ) includes nonaccrual loans . ( 2 ) net interest margin is computed by dividing net interest income by total average earning assets . ( 3 ) net interest spread represents average yield earned on interest-earning assets less the average rate paid on interest-bearing liabilities . 16 index replace_table_token_6_th ( 1 ) includes nonaccrual loans . ( 2 ) net interest margin is computed by dividing net interest income by total average earning assets . ( 3 ) net interest spread represents average yield earned on interest-earning assets less the average rate paid on interest-bearing liabilities . the table below sets forth the relative impact on net interest income of changes in the volume of earning assets and interest-bearing liabilities and changes in rates earned and paid by the company on such assets and liabilities . for purposes of this table , nonaccrual loans have been included in the average loan balances . replace_table_token_7_th ( 1 ) changes due to both volume and rate have been allocated to volume changes . 17 index comparison of interest income , interest expense and net interest margin the company 's primary source of revenue is interest income . interest income for the year ended december 31 , 2018 was $ 42.6 million , an increase from $ 37.4 million and $ 32.2 million , respectively , for the years ended december 31 , 2017 and 2016. the interest income was positively impacted by increased average earning assets primarily loans in 2018. average loans for the year increased 8.8 % over 2017 and 46.3 % over 2016. average earning asset yields declined for 2018 as competition for new quality loans continued to further compress the interest rates and the margin . in 2016 the margin benefited by 8 basis points from the payoff of one large nonaccrual loan relationship . interest expense for the year ended december 31 , 2018 increased compared to 2017 by $ 4.3 million and increased compared to 2016 by $ 5.9 million , respectively , to $ 9.0 million . the increase for 2018 compared to 2017 was mostly the result of the increased volume of deposits and increased rates paid on interest-bearing deposits . average interest-bearing deposits increased 8.3 % in 2018 compared to 2017. the average cost on interest-bearing deposits also increased to 128 basis points in 2018 compared to 77 basis points in 2017. the net impact of the changes in yields on interest-earning assets and the rates paid on interest-bearing liabilities was to decrease the margin for 2018 compared to 2017. the net interest margin was 4.07 % for 2018 compared to 4.34 % for 2017 and 4.60 % in 2016. net interest income increased by $ 1.0 million for 2018 compared to 2017 and $ 4.6 million , compared to 2016. total interest income increased by $ 5.2 million to $ 37.4 million in 2017 compared to 2016. the interest income was negatively impacted by decreased yields on earning assets in 2017 which decreased to 4.96 % compared to 5.09 % for 2016. the average yield on loans decreased to 5.24 % for 2017 compared to 5.43 % for 2016. total interest expense increased by $ 1.4 million in 2017 compared to 2016. this increase was primarily due to increased total cost of funds which include non-interest bearing deposits from 54 basis points for 2016 to 68 basis points for 2017. net interest income increased by $ 3.6 million for 2017 compared to 2016 . 18 index provision for loan losses the provision for loan losses in each period is reflected as a charge against earnings in that period . the provision for loan losses is equal to the amount required to maintain the allowance for loan losses at a level that is adequate to absorb probable losses inherent in the loan portfolio . the provision ( credit ) for loan losses was $ 14,000 in 2018 compared to $ 0.4 million in 2017 and ( $ 48,000 ) in 2016. the provision for loan losses for 2018 resulted primarily from loan growth and change in loan portfolio mix . the credit to provision for 2016 resulted from $ 0.6 million net recoveries , reduced historical loss factors partially offset by loan growth . as a result of improvements in credit quality , decreased historical loss rates , and net recoveries for the year , the ratio of the allowance for loan losses to loans held for investment decreased to 1.21 % at december 31 , 2018 from 1.24 % at december 31 , 2017. additional information regarding improved credit quality can be found beginning on page 26. the following table summarizes the provision ( credit ) , charge-offs ( recoveries ) by loan category for the year ended december 31 , 2018 , 2017 and 2016 : replace_table_token_8_th the percentage of net non-accrual loans ( net of government guarantees ) to the total loan portfolio has decreased to 0.44 % as of december 31 , 2018 from 0.61 % at december 31 , 2017 primarily due to commercial loan repayments .. the allowance for loan losses compared to net non-accrual loans has increased to 257 % as of december 31 , 2018 from 188 % as of december 31 , 2017. total past due loans were $ 3.7 million as of december 31 , 2018 compared to $ 0.4 million as of december 31 , 2017 . 19 index non-interest income the company earned non-interest income primarily through fees related to services provided to loan and deposit customers . the following tables present a summary of non-interest income for the periods presented : replace_table_token_9_th total non-interest income decreased $ 0.1 million for 2018 compared to 2017. the decrease was mostly from lower loan servicing and loan fee collection . story_separator_special_tag 24 index the following table presents total gross loans based on remaining scheduled contractual repayments of principal as of the periods indicated : replace_table_token_14_th concentrations of lending activities the company 's lending activities are primarily driven by the customers served in the market areas where the company has branch offices in the central coast of california . the company monitors concentrations within selected categories such as geography and product . the company makes manufactured housing , commercial , sba , construction , commercial real estate and consumer loans to customers through branch offices located in the company 's primary markets . the company 's business is concentrated in these areas and the loan portfolio includes significant credit exposure to the manufactured housing and commercial real estate markets of these areas . as of december 31 , 2018 and 2017 , manufactured housing loans comprised 32.2 % and 30.4 % , of total loans , respectively . as of december 31 , 2018 and 2017 , commercial real estate loans accounted for approximately 47.6 % and 48.3 % of total loans , respectively . approximately 33.8 % and 33.9 % of these commercial real estate loans were owner occupied at december 31 , 2018 and 2017 , respectively . substantially all of these loans are secured by first liens with an average loan to value ratios of 57.9 % and 55.0 % at december 31 , 2018 and 2017 , respectively . the company was within established policy limits at december 31 , 2018 and 2017. interest reserves interest reserves are generally established at the time of the loan origination as an expense item in the budget for a construction and land development loan . the company 's practice is to monitor the construction , sales and or leasing progress to determine the feasibility of ongoing construction and development projects . if , at any time during the life of the loan , the project is determined not to be viable , the company discontinues the use of the interest reserve and may take appropriate action to protect its collateral position via renegotiation and or legal action as deemed appropriate . at december 31 , 2018 , the company had 18 loans with an outstanding balance of $ 70.5 million with available interest reserves of $ 3.5 million . total construction and land loans are approximately 11 % and 8 % of the company 's loan portfolio and december 31 , 2018 and 2017 , respectively . impaired loans a loan is considered impaired when , based on current information , it is probable that the company will be unable to collect the scheduled payments of principal and or interest under the contractual terms of the loan agreement . factors considered by management in determining impairment include payment status , collateral value and the probability of collecting scheduled principal and or interest payments . loans that experience insignificant payment delays or payment shortfalls generally are not classified as impaired . management determines the significance of payment delays or payment shortfalls on a case-by-case basis . when determining the possibility of impairment , management considers the circumstances surrounding the loan and the borrower , including the length of the delay , the reasons for the delay , the borrower 's prior payment record and the amount of the shortfall in relation to the principal and interest owed . for collateral-dependent loans , the company uses the fair value of collateral method to measure impairment . all other loans are measured for impairment based on the present value of future cash flows . impairment is measured on a loan-by-loan basis for all impaired loans in the portfolio . a loan is considered a troubled debt restructured loan ( “ tdr ” ) when concessions have been made to the borrower and the borrower is in financial difficulty . these concessions include but are not limited to term extensions , rate reductions and principal reductions . forgiveness of principal is rarely granted and modifications for all classes of loans are predominantly term extensions . tdr loans are also considered impaired . 25 index the recorded investment in loans that are considered impaired is as follows : replace_table_token_15_th the following schedule summarizes impaired loans and specific reserves by loan class as of the periods indicated : replace_table_token_16_th $ 3.1 million of the above impaired loans are government guaranteed . 26 index replace_table_token_17_th $ 2.6 million of the above impaired loans are government guaranteed . total impaired loans increased by $ 3.3 million at december 31 , 2018 compared to december 31 , 2017. the manufactured housing impaired loans increased by $ 4.0 million and single family real estate impaired loans increased by $ 0.4 million in 2018 compared to 2017. both the sba and commercial real estate impaired loans decreased by $ 0.2 million each in 2018 compared to 2017. further offsetting the overall increase in impaired loans was a $ 0.8 million decrease in commercial impaired loans and a slight decrease to impaired heloc loans . impaired manufactured housing loans increased mainly due to extending the maturities on 37 existing loans totaling $ 5.2 million less pay-offs and pay-downs . impaired commercial loans decreased in 2018 compared to 2017 primarily due to the loan payoffs and payments partially offset by one new loan added for $ 0.1 million . the following schedule reflects recorded investment in certain types of loans at the dates indicated : replace_table_token_18_th the accrual of interest is discontinued when substantial doubt exists as to collectability of the loan ; generally at the time the loan is 90 days delinquent . any unpaid but accrued interest is reversed at that time . thereafter , interest income is usually no longer recognized on the loan . interest income may be recognized on impaired loans to the extent they are not past due by 90 days . interest on nonaccrual loans is accounted for on the cash-basis or cost-recovery method , until qualifying

in response to the continued spread of covid-19 , governmental authorities in the united states and around the world have imposed various restrictions designed to slow the pace of the pandemic , including restrictions on travel and other restrictions that prohibit employees from going to work , in cities where we have offices , employees , and customers causing severe disruptions in the worldwide economy , including the global demand for oil and natural gas . in response , companies within the energy industry ( including many of our customers ) have announced capital spending cuts which , in turn , may result in a decrease in new project awards or adjustments , reductions , suspensions , cancellations or payment defaults with respect to existing project awards . we have been fortunate that we entered 2020 with a robust backlog and that the larger projects in our backlog have not been cancelled or postponed . this has allowed us to keep a significant portion of our workforce productive . however , we have not been successful in replacing our backlog as quickly as it has been converted to revenues . as a result , our backlog has decreased by approximately $ 34.9 million from $ 59.2 million at december 28 , 2019 to $ 24.3 million at december 26 , 2020. while we have many potential opportunities in our sales pipeline that could replace a significant portion of this backlog reduction , inefficiencies and complications resulting from many of our clients ' remote working conditions combined with the uncertainty of new project necessity and funding caused by covid-19 related disruptions have largely contributed to delays in project awards and our inability to replace our backlog as quickly as it has been converted to revenue . while we believe our backlog is sufficient to keep a significant portion of our workforce productive in the near term , it may not be at our current operating levels . the extent to which the disruption of covid-19 may impact our business , financial condition and results of operations will depend on future developments , which are highly uncertain and can not be predicted at this time . the duration and intensity of these impacts and resulting disruption to our business , financial condition and results of operations is uncertain and we will continue to monitor the situation and assess the operational and financial impact on our business . as a result of these current and future uncertainties , we felt it necessary to utilize all avenues of available assistance as they may not be available in the future when needed . on april 13 , 2020 , we obtained a $ 4.9 million loan ( the “ ppp loan ” ) pursuant to the paycheck protection program ( the “ ppp ” ) under division a , title i of the coronavirus aid , relief , and economic security act ( “ cares act ” ) , which we expect to be forgiven . we are also utilizing relief for employees impacted by covid-19 under the families first coronavirus response act in order to minimize the impact to both our employees and our business . further , we are utilizing some of the tax payment deferral opportunities and federal refund acceleration opportunities provided by the irs and the cares act . on may 21 , 2020 , in order to provide additional liquidity , the company and its subsidiaries ( collectively , the “ borrowers ” ) entered into a loan and security agreement ( the “ revolving credit facility ” ) with pacific western bank dba pacific western business finance , a california state-chartered bank ( the “ lender ” ) , pursuant to which the lender agreed to extend credit to the borrowers in the form of revolving loans in the aggregate amount of up to $ 6.0 million , subject to a credit limit . for additional information , see “ liquidity and capital resources . ” as we continue to monitor the situation and assess the operational and financial impact on our business , we may determine to take further actions in response . 18 on june 27 , 2020 , we temporarily closed one of our operational facilities and sponsored covid-19 testing for employees in response to a potential covid-19 exposure . during the closure , we cleaned and sanitized the facility , and we reopened the facility after one week . employees and visitors were allowed to return to the facility only after negative test results were received or after a fourteen day quarantine period . although the closure was only for one week , the disruption to our operations was longer as testing results were received slower than expected and project progress was delayed . because the severity , magnitude and duration of the covid-19 pandemic and its economic consequences are uncertain , rapidly changing and difficult to predict , the impact on our business , financial condition and results of operations remains uncertain and difficult to predict . if covid–19 continues to spread or if the response to contain the covid-19 pandemic is unsuccessful , we could experience a material adverse effect on our business , financial condition , and results of operations . for additional information , see part ii . item 1a “ risk factors . ” results of operations our revenue is comprised of services revenue and the sale of engineered modular solutions . we generally 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 engineered modular solutions revenues are earned on fixed-price contracts . story_separator_special_tag selling , general and administrative – overall , our sg & a expenses decreased by $ 0.5 million for the year ended december 26 , 2020 as compared to the year ended december 28 , 2019. this decrease in sg & a is driven by reductions in travel costs due to covid-19 restrictions of $ 0.1 million , facility costs of $ 0.1 million , legal fees of $ 0.1 million , and $ 0.2 in computer software costs . we continue to look for ways to streamline our processes and delay expenditures while we continue to invest in our business development activities . 21 other income , net – other income , net of expense , decreased $ 35 thousand for the year ended december 26 , 2020 as compared to the year ended december 28 , 2019 primarily due to rental income received in 2019 with no comparable occurrence in 2020. tax expense – tax expense was $ 0.1 million for the year ended december 26 , 2020 and december 28 , 2019. net income ( loss ) – net loss for the year ended december 26 , 2020 was $ 0.6 million compared to a net loss of $ 1.5 million for the year ended december 28 , 2019 , primarily as a result of our increase in revenue and higher margin projects from our epcm segment and decrease in sg & a expense year-over-year , partially offset by project delays and inefficiencies due to the covid-19 pandemic . 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 cash on hand , internally generated funds , and borrowings under the ppp loan and the revolving credit facility . our cash increased to $ 13.7 million at december 26 , 2020 from $ 8.3 million at december 28 , 2019 , as our operating activities used approximately $ 0.5 million in net cash during the year ended december 26 , 2020 primarily due to decreased contract assets net of contract liabilities , decreased accounts payable , and operating losses , partially offset by a decrease in trade receivables , depreciation and cash provided by other components of working capital . our working capital as of december 26 , 2020 was $ 14.0 million as compared to $ 11.3 million as of december 28 , 2019. on april 13 , 2020 , we obtained the ppp loan , which was a significant cash injection for us . in addition , on may 21 , 2020 , we entered into the revolving credit facility pursuant to which the lender agreed to extend credit of up to $ 6.0 million , subject to a credit limit . as of december 26 , 2020 , the credit limit under the revolving credit facility was $ 2.4 million and outstanding borrowings were $ 1.5 million , which yields enough interest to cover our minimum monthly interest charge . as of december 26 , 2020 , we were in compliance with all of the covenants under the ppp loan and revolving credit facility . for additional information on the ppp loan and revolving credit facility , see part ii , item 8 , note 7 – debt - . in addition , on january 29 , 2021 , we filed a shelf registration statement on form s-3 ( the “ registration statement ” ) with the sec , pursuant to which we may offer and sell , at our option , securities having an aggregate offering price of up to $ 100 million . on the same date , we entered into an at market issuance sales agreement with b. riley securities , inc. pursuant to which we may offer and sell shares of our common stock having an aggregate offering price of up to $ 25 million to or through b. riley , as sales agent , from time to time , in an “ at the market offering ” . the company is not obligated to make any sales under the agreement and any determination by the company to do so will be dependent , among other things , on market conditions and the company 's capital raising needs . the registration statement has not yet become effective and these securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective . we believe our cash on hand , internally generated funds and availability under the revolving credit facility along with other working capital will be sufficient to fund our current operations and expected activity for the next twelve months . 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 our major customers significantly reduce the amount of work requested from us , ( 4 ) we are unable to win new projects that we can perform on a profitable basis or ( 5 ) we are unable to reverse our use of cash to fund losses . if any such event occurs , we would be forced to consider alternative financing options . our board of directors continues to review strategic transactions , which could include strategic mergers , reverse mergers , the issuance or buyback of public shares , or the purchase or sale of specific assets , in addition to other potential actions aimed at increasing shareholder value . the company does not intend to disclose or comment on developments related to its review unless and until the board has approved a specific transaction or otherwise determined that further disclosure is appropriate . there can be no assurance that

cash flows from operating activities operating activities used approximately $ 0.5 million in net cash during the year ended december 26 , 2020 , compared with net cash provided by operating activities of $ 2.7 million during the comparable period in 2019. the primary driver of the cash used by operations for the year ended december 26 , 2020 was a decrease of $ 4.4 million in contract assets net of contract liabilities , a decrease of $ 1.1 million in trade payables , and our $ 0.6 million operating loss , partially offset by cash provided from decreases of $ 3.7 million in trade receivables , $ 0.5 million in deprecation , $ 0.2 million in share-based compensation , an increase of $ 1.3 million in accrued compensation and benefits , and a decrease of $ 0.1 million in other components of working capital . for the year ended december 28 , 2019 , cash provided by operations was primarily related to an increase of $ 4.2 million from contract assets net of contract liabilities and $ 1.2 million in cash provided by other working capital items , offset by our net loss of $ 1.5 million and an increase in trade receivables of $ 1.2 million . cash flows from investing activities investing activities used cash of $ 0.4 million during the year ended december 26 , 2020 and used cash of $ 0.3 million during the year ended december 28 , 2019 primarily related to the purchase of equipment used to outfit our fabrication facility and to upgrade our accounting and purchasing system .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 operating activities used approximately $ 0.5 million in net cash during the year ended december 26 , 2020 , compared with net cash provided by operating activities of $ 2.7 million during the comparable period in 2019. the primary driver of the cash used by operations for the year ended december 26 , 2020 was a decrease of $ 4.4 million in contract assets net of contract liabilities , a decrease of $ 1.1 million in trade payables , and our $ 0.6 million operating loss , partially offset by cash provided from decreases of $ 3.7 million in trade receivables , $ 0.5 million in deprecation , $ 0.2 million in share-based compensation , an increase of $ 1.3 million in accrued compensation and benefits , and a decrease of $ 0.1 million in other components of working capital . for the year ended december 28 , 2019 , cash provided by operations was primarily related to an increase of $ 4.2 million from contract assets net of contract liabilities and $ 1.2 million in cash provided by other working capital items , offset by our net loss of $ 1.5 million and an increase in trade receivables of $ 1.2 million . cash flows from investing activities investing activities used cash of $ 0.4 million during the year ended december 26 , 2020 and used cash of $ 0.3 million during the year ended december 28 , 2019 primarily related to the purchase of equipment used to outfit our fabrication facility and to upgrade our accounting and purchasing system . ``` Suspicious Activity Report : in response to the continued spread of covid-19 , governmental authorities in the united states and around the world have imposed various restrictions designed to slow the pace of the pandemic , including restrictions on travel and other restrictions that prohibit employees from going to work , in cities where we have offices , employees , and customers causing severe disruptions in the worldwide economy , including the global demand for oil and natural gas . in response , companies within the energy industry ( including many of our customers ) have announced capital spending cuts which , in turn , may result in a decrease in new project awards or adjustments , reductions , suspensions , cancellations or payment defaults with respect to existing project awards . we have been fortunate that we entered 2020 with a robust backlog and that the larger projects in our backlog have not been cancelled or postponed . this has allowed us to keep a significant portion of our workforce productive . however , we have not been successful in replacing our backlog as quickly as it has been converted to revenues . as a result , our backlog has decreased by approximately $ 34.9 million from $ 59.2 million at december 28 , 2019 to $ 24.3 million at december 26 , 2020. while we have many potential opportunities in our sales pipeline that could replace a significant portion of this backlog reduction , inefficiencies and complications resulting from many of our clients ' remote working conditions combined with the uncertainty of new project necessity and funding caused by covid-19 related disruptions have largely contributed to delays in project awards and our inability to replace our backlog as quickly as it has been converted to revenue . while we believe our backlog is sufficient to keep a significant portion of our workforce productive in the near term , it may not be at our current operating levels . the extent to which the disruption of covid-19 may impact our business , financial condition and results of operations will depend on future developments , which are highly uncertain and can not be predicted at this time . the duration and intensity of these impacts and resulting disruption to our business , financial condition and results of operations is uncertain and we will continue to monitor the situation and assess the operational and financial impact on our business . as a result of these current and future uncertainties , we felt it necessary to utilize all avenues of available assistance as they may not be available in the future when needed . on april 13 , 2020 , we obtained a $ 4.9 million loan ( the “ ppp loan ” ) pursuant to the paycheck protection program ( the “ ppp ” ) under division a , title i of the coronavirus aid , relief , and economic security act ( “ cares act ” ) , which we expect to be forgiven . we are also utilizing relief for employees impacted by covid-19 under the families first coronavirus response act in order to minimize the impact to both our employees and our business . further , we are utilizing some of the tax payment deferral opportunities and federal refund acceleration opportunities provided by the irs and the cares act . on may 21 , 2020 , in order to provide additional liquidity , the company and its subsidiaries ( collectively , the “ borrowers ” ) entered into a loan and security agreement ( the “ revolving credit facility ” ) with pacific western bank dba pacific western business finance , a california state-chartered bank ( the “ lender ” ) , pursuant to which the lender agreed to extend credit to the borrowers in the form of revolving loans in the aggregate amount of up to $ 6.0 million , subject to a credit limit . for additional information , see “ liquidity and capital resources . ” as we continue to monitor the situation and assess the operational and financial impact on our business , we may determine to take further actions in response . 18 on june 27 , 2020 , we temporarily closed one of our operational facilities and sponsored covid-19 testing for employees in response to a potential covid-19 exposure . during the closure , we cleaned and sanitized the facility , and we reopened the facility after one week . employees and visitors were allowed to return to the facility only after negative test results were received or after a fourteen day quarantine period . although the closure was only for one week , the disruption to our operations was longer as testing results were received slower than expected and project progress was delayed . because the severity , magnitude and duration of the covid-19 pandemic and its economic consequences are uncertain , rapidly changing and difficult to predict , the impact on our business , financial condition and results of operations remains uncertain and difficult to predict . if covid–19 continues to spread or if the response to contain the covid-19 pandemic is unsuccessful , we could experience a material adverse effect on our business , financial condition , and results of operations . for additional information , see part ii . item 1a “ risk factors . ” results of operations our revenue is comprised of services revenue and the sale of engineered modular solutions . we generally 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 engineered modular solutions revenues are earned on fixed-price contracts . story_separator_special_tag selling , general and administrative – overall , our sg & a expenses decreased by $ 0.5 million for the year ended december 26 , 2020 as compared to the year ended december 28 , 2019. this decrease in sg & a is driven by reductions in travel costs due to covid-19 restrictions of $ 0.1 million , facility costs of $ 0.1 million , legal fees of $ 0.1 million , and $ 0.2 in computer software costs . we continue to look for ways to streamline our processes and delay expenditures while we continue to invest in our business development activities . 21 other income , net – other income , net of expense , decreased $ 35 thousand for the year ended december 26 , 2020 as compared to the year ended december 28 , 2019 primarily due to rental income received in 2019 with no comparable occurrence in 2020. tax expense – tax expense was $ 0.1 million for the year ended december 26 , 2020 and december 28 , 2019. net income ( loss ) – net loss for the year ended december 26 , 2020 was $ 0.6 million compared to a net loss of $ 1.5 million for the year ended december 28 , 2019 , primarily as a result of our increase in revenue and higher margin projects from our epcm segment and decrease in sg & a expense year-over-year , partially offset by project delays and inefficiencies due to the covid-19 pandemic . 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 cash on hand , internally generated funds , and borrowings under the ppp loan and the revolving credit facility . our cash increased to $ 13.7 million at december 26 , 2020 from $ 8.3 million at december 28 , 2019 , as our operating activities used approximately $ 0.5 million in net cash during the year ended december 26 , 2020 primarily due to decreased contract assets net of contract liabilities , decreased accounts payable , and operating losses , partially offset by a decrease in trade receivables , depreciation and cash provided by other components of working capital . our working capital as of december 26 , 2020 was $ 14.0 million as compared to $ 11.3 million as of december 28 , 2019. on april 13 , 2020 , we obtained the ppp loan , which was a significant cash injection for us . in addition , on may 21 , 2020 , we entered into the revolving credit facility pursuant to which the lender agreed to extend credit of up to $ 6.0 million , subject to a credit limit . as of december 26 , 2020 , the credit limit under the revolving credit facility was $ 2.4 million and outstanding borrowings were $ 1.5 million , which yields enough interest to cover our minimum monthly interest charge . as of december 26 , 2020 , we were in compliance with all of the covenants under the ppp loan and revolving credit facility . for additional information on the ppp loan and revolving credit facility , see part ii , item 8 , note 7 – debt - . in addition , on january 29 , 2021 , we filed a shelf registration statement on form s-3 ( the “ registration statement ” ) with the sec , pursuant to which we may offer and sell , at our option , securities having an aggregate offering price of up to $ 100 million . on the same date , we entered into an at market issuance sales agreement with b. riley securities , inc. pursuant to which we may offer and sell shares of our common stock having an aggregate offering price of up to $ 25 million to or through b. riley , as sales agent , from time to time , in an “ at the market offering ” . the company is not obligated to make any sales under the agreement and any determination by the company to do so will be dependent , among other things , on market conditions and the company 's capital raising needs . the registration statement has not yet become effective and these securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective . we believe our cash on hand , internally generated funds and availability under the revolving credit facility along with other working capital will be sufficient to fund our current operations and expected activity for the next twelve months . 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 our major customers significantly reduce the amount of work requested from us , ( 4 ) we are unable to win new projects that we can perform on a profitable basis or ( 5 ) we are unable to reverse our use of cash to fund losses . if any such event occurs , we would be forced to consider alternative financing options . our board of directors continues to review strategic transactions , which could include strategic mergers , reverse mergers , the issuance or buyback of public shares , or the purchase or sale of specific assets , in addition to other potential actions aimed at increasing shareholder value . the company does not intend to disclose or comment on developments related to its review unless and until the board has approved a specific transaction or otherwise determined that further disclosure is appropriate . there can be no assurance that

our revenue , income from continuing operations and adjusted ebitda for fiscal 2010 were $ 199.8 million , $ 28.1 million and $ 29.9 million , respectively . our revenue , income from continuing operations and adjusted ebitda for fiscal 2009 were $ 188.9 million , $ 7.9 million and $ 22.9 million , respectively . see page 27 of this annual report for a reconciliation of our adjusted ebitda to income from continuing operations . our operations are organized in the following two business units : advanced computing solutions , or acs . this business unit is focused on specialized , high performance signal end-to-end processing solutions that encompass signal acquisition including microwave front-end , digitalization , computing , storage and communications , targeted to key market segments , including defense , communications and other commercial application . acs 's open system architecture solutions span the full range of embedded technologies from board level products to fully integrated sub-systems . our products utilize leading-edge processor technologies architected to address highly data-intensive applications that include signal , sensor and image processing within environmentally constrained military and commercial applications . in addition , acs now has a portfolio of microwave sub-assemblies to address needs in ew , sigint , elint and high bandwidth communications subsystems . these products are highly optimized for size , weight and power , as well as for the performance and ruggedization requirements of our customers . customized design and sub-systems integration services extend our capabilities to tailor solutions to meet the specialized requirements of our customers . in fiscal 2011 , acs accounted for 95 % of our total net revenues . mercury federal systems , or mfs . this business unit is focused on services and support work with the department of defense , or the dod , and federal intelligence and homeland security agencies , including designing and engineering new intelligence , surveillance and reconnaissance , or isr , capabilities to address present and emerging threats to u.s. forces . mfs is part of our long-term strategy to expand our software and services presence and pursue growth in platform-ready isr sub-systems , particularly those with classified intellectual property . mfs offers a wide range of engineering architecture and design services that enable clients to deploy leading edge computing capabilities for isr systems on an accelerated time cycle . this business unit enables us to combine classified intellectual property with the commercially developed application-ready sub-systems being developed by acs , providing customers with platform-ready , affordable isr sub-systems . in fiscal 2011 , mfs accounted for 5 % of our total net revenues . since we are an oem supplier to our commercial markets and conduct business with our defense customers via commercial items , requests by customers are a primary driver of revenue fluctuations from quarter to quarter . customers specify delivery date requirements that coincide with their need for our products . because these customers may use our products in connection with a variety of defense programs or other projects of different sizes and durations , a customer 's orders for one quarter generally do not indicate a trend for future orders by that customer . additionally , order patterns do not necessarily correlate amongst customers and , therefore , we generally can not identify sequential quarterly trends , even within our business units . non-gaap financial measures in our periodic communications , we discuss two important measures that are not calculated according to u.s. generally accepted accounting principles ( “gaap” ) , adjusted ebitda and free cash flow . adjusted ebitda is defined as earnings from continuing operations before interest income and expense , income taxes , depreciation , amortization of acquired intangible assets , restructuring , impairment of long-lived assets , 34 acquisition costs and other related expenses , fair value adjustments from purchase accounting and stock-based compensation costs . we use adjusted ebitda as an important indicator of the operating performance of our business . we use adjusted ebitda in internal forecasts and models when establishing internal operating budgets , supplementing the financial results and forecasts reported to our board of directors , determining a component of bonus compensation for executive officers and other key employees based on operating performance and evaluating short-term and long-term operating trends in our operations . we believe the adjusted ebitda financial measure assists in providing a more complete understanding of our underlying operational measures to manage our business , to evaluate our performance compared to prior periods and the marketplace , and to establish operational goals . we believe that these non-gaap financial adjustments are useful to investors because they allow investors to evaluate the effectiveness of the methodology and information used by management in our financial and operational decision-making . adjusted ebitda is a non-gaap financial measure and should not be considered in isolation or as a substitute for financial information provided in accordance with gaap . this non-gaap financial measure may not be computed in the same manner as similarly titled measures used by other companies . we expect to continue to incur expenses similar to the adjusted ebitda financial adjustments described above , and investors should not infer from our presentation of this non-gaap financial measure that these costs are unusual , infrequent or non-recurring . the following tables reconcile our adjusted ebitda to the most directly comparable gaap financial measure : replace_table_token_5_th free cash flow , a non-gaap measure for reporting cash flow , is defined as cash provided by operating activities less capital expenditures for property and equipment , which includes capitalized software development costs . we believe free cash flow provides investors with an important perspective on cash available for investments and acquisitions after making capital investments required to support ongoing business operations and long-term value creation . we believe that trends in our free cash flow are valuable indicators of our operating performance and liquidity . story_separator_special_tag million in fiscal 2010. this decrease was driven by expected declines in sales of legacy product to medical equipment customers , partially offset by increases in sales to commercial communications and semiconductor inspection equipment customers . 41 mfs revenues increased $ 5.2 million , or 94 % , during fiscal 2010 as compared to fiscal 2009. this increase in revenue was primarily driven by an increase of $ 5.5 million in revenue relating to an isr qrc development program . this increase was slightly offset by the year over year completion of other development programs . net other revenues increased $ 0.1 million to $ 0.1 million during fiscal 2010 as compared to nil during fiscal 2009. net other revenue is attributable to development programs where the revenue recognized in our two business segments under contract accounting is either greater or less than revenue recognized on a consolidated basis . g ross m argin gross margin was 56.3 % for fiscal 2010 , an increase of 50 basis points from the 55.8 % gross margin achieved in fiscal 2009. the increase in gross margin was primarily due to a $ 5.8 million decrease in provisions for obsolete inventory , a $ 1.5 million decrease in warranty expense and a $ 0.8 million decrease in scrap expenditures , as compared to fiscal 2009. this increase was partially offset by a decrease in direct margin due to an unfavorable shift in product and business mix . significant reserves for inventory obsolescence were booked in fiscal 2009 largely due to lower demand in our commercial markets . s elling , g eneral and a dministrative selling , general and administrative expenses increased 0.7 % or $ 0.3 million to $ 51.5 million during fiscal 2010 compared to $ 51.2 million during fiscal 2009. the increase was primarily due to a $ 1.1 million increase in salary and fringe expense primarily attributed to an increase in severance expense for terminated employees and a $ 0.2 million increase in recruiting costs associated with filling key executive positions . these increases were partially offset by decreases of $ 0.8 million in legal fees and $ 0.4 million in sales commissions paid due to lower bookings . even with an increase in overall selling , general and administrative expenses in fiscal 2010 , these expenses represented approximately 25.7 % of our revenues during fiscal 2010 , down from 27.1 % in fiscal 2009 due to our continued focus on improving the underlying leverage of the business . r esearch and d evelopment research and development expenses decreased 2 % or $ 0.9 million to $ 41.5 million during fiscal 2010 compared to $ 42.4 million for fiscal 2009. the decrease was primarily the result of a $ 3.8 million increase in the time spent by our engineers on billable projects , a $ 0.5 million decrease in stock-based compensation expense due to the difference in the values of awards that were fully vested in fiscal 2010 and the values of new grants , and a $ 0.3 million decrease in depreciation expense due to assets becoming fully depreciated . the decrease in research and development expenses was partially offset by a $ 2.1 million increase in salary expense due to an increase in headcount , a $ 0.8 million increase in prototype material spending , and a $ 0.4 million increase in equipment and supply costs . research and development continues to be a focus of our business with approximately 20.8 % of our revenues dedicated to research and development activities during fiscal 2010 and approximately 22.4 % of our revenues dedicated to such activities during fiscal 2009. we continue to focus on improving the leverage of our research and development investments in order to realize a more near-term return . a mortization of a cquired i ntangible a ssets amortization of acquired intangible assets decreased 29 % or $ 0.7 million to $ 1.7 million during fiscal 2010 compared to $ 2.4 million for fiscal 2009. the decrease was attributable to assets becoming fully amortized during fiscal 2010 and a fiscal 2010 impairment of a terminated license agreement . 42 i mpairment of g oodwill and l ong - lived a ssets we recorded $ 0.2 million in impairment charges in fiscal 2010 compared to no impairment charges recorded in fiscal 2009. these fiscal 2010 charges were the result of the $ 0.1 million impairment of the remaining value of a terminated license agreement and $ 0.1 million for the impairment of the fair value of the shares we received as compensation in the sale of our former biotech business . following the vi and vsg divestitures , acs is the only reporting unit containing goodwill , and in june 2010 , we performed our annual goodwill impairment test in accordance with fasb asc 350. this evaluation was performed consistent with prior years and relied on a discounted cash flow analysis , which was corroborated by two market-based analyses : one evaluated guideline companies and another that reviewed comparable transactions . for each analysis performed , the fair value of the acs reporting unit was deemed to be in excess of the book value . as such , no impairment charge was recorded . there were no impairment charges in fiscal 2009. r estructuring e xpense restructuring expense for fiscal 2010 decreased $ 1.5 million to $ 0.2 million as compared to $ 1.7 million in fiscal 2009. this decrease reflects no additional substantial activities and was primarily due to improved operating results in fiscal 2010 and an improved outlook for fiscal 2011 and beyond . as a result of the restructuring actions taken in fiscal 2010 , we eliminated four positions , while we eliminated approximately 35 positions in fiscal 2009. i nterest i ncome interest income for fiscal 2010 decreased by $ 1.6 million to $ 0.5 million compared to $ 2.1 million in fiscal 2009. the decrease was primarily attributable to decreased rates

cash flows replace_table_token_11_th our cash and cash equivalents increased by $ 106.6 million during fiscal 2011 primarily as the result of $ 31.5 million generated by operating activities , $ 93.6 million net proceeds received from a follow-on public 46 stock offering , $ 18.0 million cash proceeds from sale of marketable securities and $ 4.6 million generated from stock related activities , offset by $ 29.5 million in payment , net of cash acquired , for the lnx acquisition , $ 8.8 million in capital expenditures and $ 2.4 million in payments for acquired intangible assets . operating activities during fiscal 2011 , we generated $ 31.5 million in cash from operations compared to $ 15.7 million generated from operations during fiscal 2010. the $ 15.8 million increase in the amount of cash generated from operations was driven by a $ 15.5 million improvement in accounts receivable primarily driven by collection of a large receivable shipped at the end of fiscal 2010 , an $ 11.6 million increase in provision for deferred income taxes , a $ 4.0 million increase in cash generated from prepaid income taxes and income taxes payable , a $ 3.4 million increase in inventory activities , a $ 1.6 million increase in stock-based compensation , a $ 1.5 million increase in depreciation and amortization expense , and a $ 0.9 million reduction in other non-cash items . these improvements were partially offset by lower comparative net income of $ 9.9 million , a $ 4.8 million increase in cash used for accounts payable and accrued expenses , a $ 4.8 million increase in cash used for deferred revenue , customer advances , and other non-current liabilities , and a $ 3.2 million increase in cash used for prepaid expenses and other current and non-current assets . our ability to generate cash from operations in future periods will depend in large part on profitability , the rate of collection of accounts receivable , our inventory turns and our ability to manage other areas 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. ```cash flows replace_table_token_11_th our cash and cash equivalents increased by $ 106.6 million during fiscal 2011 primarily as the result of $ 31.5 million generated by operating activities , $ 93.6 million net proceeds received from a follow-on public 46 stock offering , $ 18.0 million cash proceeds from sale of marketable securities and $ 4.6 million generated from stock related activities , offset by $ 29.5 million in payment , net of cash acquired , for the lnx acquisition , $ 8.8 million in capital expenditures and $ 2.4 million in payments for acquired intangible assets . operating activities during fiscal 2011 , we generated $ 31.5 million in cash from operations compared to $ 15.7 million generated from operations during fiscal 2010. the $ 15.8 million increase in the amount of cash generated from operations was driven by a $ 15.5 million improvement in accounts receivable primarily driven by collection of a large receivable shipped at the end of fiscal 2010 , an $ 11.6 million increase in provision for deferred income taxes , a $ 4.0 million increase in cash generated from prepaid income taxes and income taxes payable , a $ 3.4 million increase in inventory activities , a $ 1.6 million increase in stock-based compensation , a $ 1.5 million increase in depreciation and amortization expense , and a $ 0.9 million reduction in other non-cash items . these improvements were partially offset by lower comparative net income of $ 9.9 million , a $ 4.8 million increase in cash used for accounts payable and accrued expenses , a $ 4.8 million increase in cash used for deferred revenue , customer advances , and other non-current liabilities , and a $ 3.2 million increase in cash used for prepaid expenses and other current and non-current assets . our ability to generate cash from operations in future periods will depend in large part on profitability , the rate of collection of accounts receivable , our inventory turns and our ability to manage other areas of working capital . ``` Suspicious Activity Report : our revenue , income from continuing operations and adjusted ebitda for fiscal 2010 were $ 199.8 million , $ 28.1 million and $ 29.9 million , respectively . our revenue , income from continuing operations and adjusted ebitda for fiscal 2009 were $ 188.9 million , $ 7.9 million and $ 22.9 million , respectively . see page 27 of this annual report for a reconciliation of our adjusted ebitda to income from continuing operations . our operations are organized in the following two business units : advanced computing solutions , or acs . this business unit is focused on specialized , high performance signal end-to-end processing solutions that encompass signal acquisition including microwave front-end , digitalization , computing , storage and communications , targeted to key market segments , including defense , communications and other commercial application . acs 's open system architecture solutions span the full range of embedded technologies from board level products to fully integrated sub-systems . our products utilize leading-edge processor technologies architected to address highly data-intensive applications that include signal , sensor and image processing within environmentally constrained military and commercial applications . in addition , acs now has a portfolio of microwave sub-assemblies to address needs in ew , sigint , elint and high bandwidth communications subsystems . these products are highly optimized for size , weight and power , as well as for the performance and ruggedization requirements of our customers . customized design and sub-systems integration services extend our capabilities to tailor solutions to meet the specialized requirements of our customers . in fiscal 2011 , acs accounted for 95 % of our total net revenues . mercury federal systems , or mfs . this business unit is focused on services and support work with the department of defense , or the dod , and federal intelligence and homeland security agencies , including designing and engineering new intelligence , surveillance and reconnaissance , or isr , capabilities to address present and emerging threats to u.s. forces . mfs is part of our long-term strategy to expand our software and services presence and pursue growth in platform-ready isr sub-systems , particularly those with classified intellectual property . mfs offers a wide range of engineering architecture and design services that enable clients to deploy leading edge computing capabilities for isr systems on an accelerated time cycle . this business unit enables us to combine classified intellectual property with the commercially developed application-ready sub-systems being developed by acs , providing customers with platform-ready , affordable isr sub-systems . in fiscal 2011 , mfs accounted for 5 % of our total net revenues . since we are an oem supplier to our commercial markets and conduct business with our defense customers via commercial items , requests by customers are a primary driver of revenue fluctuations from quarter to quarter . customers specify delivery date requirements that coincide with their need for our products . because these customers may use our products in connection with a variety of defense programs or other projects of different sizes and durations , a customer 's orders for one quarter generally do not indicate a trend for future orders by that customer . additionally , order patterns do not necessarily correlate amongst customers and , therefore , we generally can not identify sequential quarterly trends , even within our business units . non-gaap financial measures in our periodic communications , we discuss two important measures that are not calculated according to u.s. generally accepted accounting principles ( “gaap” ) , adjusted ebitda and free cash flow . adjusted ebitda is defined as earnings from continuing operations before interest income and expense , income taxes , depreciation , amortization of acquired intangible assets , restructuring , impairment of long-lived assets , 34 acquisition costs and other related expenses , fair value adjustments from purchase accounting and stock-based compensation costs . we use adjusted ebitda as an important indicator of the operating performance of our business . we use adjusted ebitda in internal forecasts and models when establishing internal operating budgets , supplementing the financial results and forecasts reported to our board of directors , determining a component of bonus compensation for executive officers and other key employees based on operating performance and evaluating short-term and long-term operating trends in our operations . we believe the adjusted ebitda financial measure assists in providing a more complete understanding of our underlying operational measures to manage our business , to evaluate our performance compared to prior periods and the marketplace , and to establish operational goals . we believe that these non-gaap financial adjustments are useful to investors because they allow investors to evaluate the effectiveness of the methodology and information used by management in our financial and operational decision-making . adjusted ebitda is a non-gaap financial measure and should not be considered in isolation or as a substitute for financial information provided in accordance with gaap . this non-gaap financial measure may not be computed in the same manner as similarly titled measures used by other companies . we expect to continue to incur expenses similar to the adjusted ebitda financial adjustments described above , and investors should not infer from our presentation of this non-gaap financial measure that these costs are unusual , infrequent or non-recurring . the following tables reconcile our adjusted ebitda to the most directly comparable gaap financial measure : replace_table_token_5_th free cash flow , a non-gaap measure for reporting cash flow , is defined as cash provided by operating activities less capital expenditures for property and equipment , which includes capitalized software development costs . we believe free cash flow provides investors with an important perspective on cash available for investments and acquisitions after making capital investments required to support ongoing business operations and long-term value creation . we believe that trends in our free cash flow are valuable indicators of our operating performance and liquidity . story_separator_special_tag million in fiscal 2010. this decrease was driven by expected declines in sales of legacy product to medical equipment customers , partially offset by increases in sales to commercial communications and semiconductor inspection equipment customers . 41 mfs revenues increased $ 5.2 million , or 94 % , during fiscal 2010 as compared to fiscal 2009. this increase in revenue was primarily driven by an increase of $ 5.5 million in revenue relating to an isr qrc development program . this increase was slightly offset by the year over year completion of other development programs . net other revenues increased $ 0.1 million to $ 0.1 million during fiscal 2010 as compared to nil during fiscal 2009. net other revenue is attributable to development programs where the revenue recognized in our two business segments under contract accounting is either greater or less than revenue recognized on a consolidated basis . g ross m argin gross margin was 56.3 % for fiscal 2010 , an increase of 50 basis points from the 55.8 % gross margin achieved in fiscal 2009. the increase in gross margin was primarily due to a $ 5.8 million decrease in provisions for obsolete inventory , a $ 1.5 million decrease in warranty expense and a $ 0.8 million decrease in scrap expenditures , as compared to fiscal 2009. this increase was partially offset by a decrease in direct margin due to an unfavorable shift in product and business mix . significant reserves for inventory obsolescence were booked in fiscal 2009 largely due to lower demand in our commercial markets . s elling , g eneral and a dministrative selling , general and administrative expenses increased 0.7 % or $ 0.3 million to $ 51.5 million during fiscal 2010 compared to $ 51.2 million during fiscal 2009. the increase was primarily due to a $ 1.1 million increase in salary and fringe expense primarily attributed to an increase in severance expense for terminated employees and a $ 0.2 million increase in recruiting costs associated with filling key executive positions . these increases were partially offset by decreases of $ 0.8 million in legal fees and $ 0.4 million in sales commissions paid due to lower bookings . even with an increase in overall selling , general and administrative expenses in fiscal 2010 , these expenses represented approximately 25.7 % of our revenues during fiscal 2010 , down from 27.1 % in fiscal 2009 due to our continued focus on improving the underlying leverage of the business . r esearch and d evelopment research and development expenses decreased 2 % or $ 0.9 million to $ 41.5 million during fiscal 2010 compared to $ 42.4 million for fiscal 2009. the decrease was primarily the result of a $ 3.8 million increase in the time spent by our engineers on billable projects , a $ 0.5 million decrease in stock-based compensation expense due to the difference in the values of awards that were fully vested in fiscal 2010 and the values of new grants , and a $ 0.3 million decrease in depreciation expense due to assets becoming fully depreciated . the decrease in research and development expenses was partially offset by a $ 2.1 million increase in salary expense due to an increase in headcount , a $ 0.8 million increase in prototype material spending , and a $ 0.4 million increase in equipment and supply costs . research and development continues to be a focus of our business with approximately 20.8 % of our revenues dedicated to research and development activities during fiscal 2010 and approximately 22.4 % of our revenues dedicated to such activities during fiscal 2009. we continue to focus on improving the leverage of our research and development investments in order to realize a more near-term return . a mortization of a cquired i ntangible a ssets amortization of acquired intangible assets decreased 29 % or $ 0.7 million to $ 1.7 million during fiscal 2010 compared to $ 2.4 million for fiscal 2009. the decrease was attributable to assets becoming fully amortized during fiscal 2010 and a fiscal 2010 impairment of a terminated license agreement . 42 i mpairment of g oodwill and l ong - lived a ssets we recorded $ 0.2 million in impairment charges in fiscal 2010 compared to no impairment charges recorded in fiscal 2009. these fiscal 2010 charges were the result of the $ 0.1 million impairment of the remaining value of a terminated license agreement and $ 0.1 million for the impairment of the fair value of the shares we received as compensation in the sale of our former biotech business . following the vi and vsg divestitures , acs is the only reporting unit containing goodwill , and in june 2010 , we performed our annual goodwill impairment test in accordance with fasb asc 350. this evaluation was performed consistent with prior years and relied on a discounted cash flow analysis , which was corroborated by two market-based analyses : one evaluated guideline companies and another that reviewed comparable transactions . for each analysis performed , the fair value of the acs reporting unit was deemed to be in excess of the book value . as such , no impairment charge was recorded . there were no impairment charges in fiscal 2009. r estructuring e xpense restructuring expense for fiscal 2010 decreased $ 1.5 million to $ 0.2 million as compared to $ 1.7 million in fiscal 2009. this decrease reflects no additional substantial activities and was primarily due to improved operating results in fiscal 2010 and an improved outlook for fiscal 2011 and beyond . as a result of the restructuring actions taken in fiscal 2010 , we eliminated four positions , while we eliminated approximately 35 positions in fiscal 2009. i nterest i ncome interest income for fiscal 2010 decreased by $ 1.6 million to $ 0.5 million compared to $ 2.1 million in fiscal 2009. the decrease was primarily attributable to decreased rates

gsrn became our wholly owned subsidiary with the withdrawal of the 51 % majority partner for the full ownership of one center with no other consideration . we made a fair value determination of our original 49 % interest which resulted in a step-up gain of approximately 36 $ 1.3 million . we determined a fair value of the remaining acquired imaging center of $ 3.1 million in assets and $ 426,000 in liabilities were recognized . we recorded $ 1,000 in other assets , $ 679,000 in fixed assets , $ 426,000 in right-of-use assets , $ 426,000 in operating lease liabilities , and $ 2.0 million in goodwill . on august 1 , 2019 we completed a step-up acquisition of our former 25 % owned joint venture , nulogix , via a stock issuance of radnet common shares valued at $ 1.5 million to obtain the remaining 75 % outstanding nulogix shares . we made a fair value determination of the acquired assets and approximately $ 189,000 in fixed assets , $ 732,000 in intangible assets , $ 278,000 in deferred tax liability and goodwill of $ 1.3 million were recorded . we also made a fair value determination of our 25 % pre-existing interest in the business and recognized a loss of $ 504,000 which is included in operating expenses within the consolidated statements of operations . on april 1 , 2019 we completed our acquisition of certain assets of kern radiology imaging systems inc. , consisting of four multi-modality imaging centers located in bakersfield , california for purchase consideration of $ 19.3 million . we made a fair value determination of the acquired assets and assumed liabilities and approximately $ 10.1 million in property and equipment , $ 9.7 million in right-of-use assets , $ 36,000 in other assets , $ 3.4 million in intangible assets , $ 14.5 million in operating lease liabilities , and $ 10.5 million in goodwill were recorded . on april 1 , 2019 we completed our acquisition of certain assets of zilkha radiology inc. consisting of two multi-modality centers located in islip , new york for purchase consideration of $ 4.5 million . we made a fair value determination of the acquired assets and assumed liabilities and approximately $ 2.2 million in property and equipment , $ 5.1 million in right-of-use assets , $ 100,000 in intangible assets , $ 5.1 million in operating lease liabilities , $ 332,000 in finance lease liabilities and $ 2.6 million in goodwill were recorded . on february 28 , 2019 , one of our variable interest entities ( vies ) , lenox hill radiology and medical imaging associates , p.c . ( `` lhr `` ) , purchased the membership interest of hudson valley radiology associates , p.l.l.c . ( `` hvra `` ) for $ 6.0 million of radnet common stock and contingent consideration valued at $ 680,000 to guarantee the share value issued for a period of six months post acquisition date . lhr has performed a fair value purchase price allocation and recorded equipment of $ 10,000 , a covenant not to compete of $ 50,000 , trade name of $ 380,000 , other intangible assets of $ 340,000 and goodwill of $ 3.1 million from the transaction . in connection with the acquisition , radnet also settled against the purchase consideration , $ 2.8 million , net of taxes , of an unfavorable vendor contract with hvra stemming from the previous acquisition of radiologix , inc. in november 2006. on february 1 , 2019 , our majority owned subsidiary , west valley imaging group , llc ( `` wvig `` ) completed its acquisition of certain assets of west valley imaging center , llc ( `` west valley `` ) , consisting of a single multi-modality imaging center located in west hills , ca for purchase consideration of $ 3.0 million all of which was initially funded by the company . we have made a fair value determination of the acquired assets and approximately $ 300,000 in equipment and fixed assets , $ 7,000 in other assets , $ 200,000 in intangible assets and $ 2.5 million in goodwill were recorded . subsequent to the transaction , our partner in wvig , cedars sinai medical center , contributed $ 750,000 in cash to maintain its 25 % economic interest in the venture . on december 3 , 2018 we completed our acquisition of certain assets of orange county diagnostics imaging center consisting of five multi-modality imaging centers located in orange county , california for purchase consideration of $ 6.6 million . we have made a fair valuation determination of the acquired assets and approximately $ 23,000 of current assets , $ 69,000 of other assets , $ 2.8 million of leaseholds and equipment , a $ 50,000 of covenant not to compete , and $ 3.6 million of goodwill were recorded . on november 5 , 2018 we completed our acquisition of certain assets of arcadia radiology imaging consisting of one multi-modality imaging center and one women 's center located in arcadia , california for purchase consideration of $ 3.8 million . we have made a fair value determination of the acquired assets and approximately $ 20,000 of other assets , $ 819,000 of leaseholds , $ 80,000 equipment , $ 300,000 in covenants not to compete , and $ 2.6 million of goodwill were recorded . on november 1 , 2018 we completed our acquisition of certain assets of southern california diagnostic imaging consisting of a multi-modality imaging center located in santa ana , california for purchase consideration of $ 1.4 million . we have made a fair value determination of the acquired assets and approximately $ 18,000 of other assets , $ 1.2 million of leasehold improvements , $ 110,000 of equipment , $ 50,000 of covenants not to compete , and $ 41,000 of goodwill were recorded . story_separator_special_tag see “ liquidity and capital resources ” below for more details on our credit facilities . to mitigate our future interest expense exposure the company has entered into two forward interest rate cap agreements . see derivative instruments section of note 2 to the consolidated financial statements included in this annual report on form 10-k and item 7a , quantitative and qualitative disclosure about market risk below for more details on our derivative transactions . equity in earnings from unconsolidated joint ventures for the twelve months ended december 31 , 2019 we recognized equity in earnings from unconsolidated joint ventures of $ 8.3 million versus $ 11.4 million for the twelve months ended december 31 , 2018 , a decrease of $ 3.0 million or 26.6 % . the decrease was related to the assumption of operational control of the new jersey imaging network which became a consolidated subsidiary on october 1 , 2018. gain on re-measurement valuation of pre-existing interest on august 1 , 2019 we completed a step-up acquisition upon the dissolution of our former 49 % owned joint venture , garden state radiology llc ( `` gsrn `` ) . also on august 1 , 2019 , in a separate transaction , we issued radnet common stock in the amount of $ 1.5 million to acquire a 75 % controlling interest in our formerly 25 % owned joint venture nulogix . in both 43 instances , we made a fair value determination of our original interests , and recorded a step-up gain of approximately $ 1.3 million for the gsrn and recognized a a loss of $ 504,000 on our 25 % pre-existing interest in nulogix . in sum we recorded a net gain on re-measurement of approximately $ 800,000 for the year ended december 31 , 2019 on these transactions . on october 1 , 2018 we completed an step-up acquisition of new jersey imaging network , formerly a joint venture . the change in control was effective upon the execution of an agreement which provided radnet with the ability to make unanimous operating decisions . upon a fair value determination of our 49 % interest in the business of approximately $ 42.5 million , the step-up in valuation from an existing investment caused us to recognize a gain of $ 39.5 million for the year ended december 31 , 2018. other expenses / income for the year ended ended december 31 , 2019 we recorded approximately $ 1.3 million of other expenses and for the year ended december 31 , 2018 we recorded approximately $ 181,000 of other income , respectively . provision for income taxes we had a tax provision for the twelve months ended december 31 , 2019 of $ 6.2 million or 21.0 % of income before income taxes , compared to a tax provision for the twelve months ended december 31 , 2018 of $ 394,000 or 1.0 % of income before income taxes . income tax provision increased in 2019 primarily due to non-recognition of gain on re-measurement of pre-existing interest in the prior year . the income tax rates for the twelve months ended december 31 , 2019 diverge from the federal statutory rate due to noncontrolling interests of the controlled partnerships and the prior year adjustments partially offset by effects of state income taxes . year ended december 31 , 2018 compared to the year ended december 31 , 2017 for the comparison of results of operations for the year ended december 31 , 2018 to the year ended december 31 , 2017 , please see item 7 , management 's discussion and analysis of financial condition and operations in our form 10-k for the year ended december 31 , 2018 , filed with the sec on march 18 , 2019. non-gaap financial measures we use both gaap and non-gaap metrics to measure our financial results . we believe that , in addition to gaap metrics , non-gaap metrics such as adjusted ebitda and free cash flow assist us in measuring our cash generated from operations and ability to service our debt obligations . adjusted ebitda our adjusted ebitda metric removes non-cash and non-recurring charges that occur in the affected period and provides a basis for measuring the company 's core financial performance against other periods . we define adjusted ebitda as earnings before interest , taxes , depreciation and amortization , as adjusted to exclude losses or gains on the disposal of equipment , other income or loss , loss on debt extinguishment , bargain purchase gains , loss on de-consolidation of joint ventures and non-cash equity compensation . adjusted ebitda includes equity earnings in unconsolidated operations and subtracts allocations of earnings to non-controlling interests in subsidiaries , and is adjusted for non-cash or one-time events that take place during the period . adjusted ebitda is a non-gaap financial measure used as an analytical indicator by us and the healthcare industry to assess business performance , and is a measure of leverage capacity and ability to service debt . adjusted ebitda should not be considered a measure of financial performance under gaap , and adjusted ebitda should not be considered in isolation or as alternatives to net income , cash flows generated by operating , investing or financing activities or other financial statement data presented in the consolidated financial statements as an indicator of financial performance or liquidity . adjusted ebitda is not a measurement determined in accordance with gaap and is therefore susceptible to varying methods of calculation , this metric , as presented , may not be comparable to other similarly titled measures of other companies . the following is a reconciliation of the nearest comparable gaap financial measure , net income , to adjusted ebitda for the years ended december 31 , 2019 , 2018 , and 2017 , respectively ( in thousands ) : 44 replace_table_token_19_th free cash flow another non-gaap measure that we use is “ free cash flow ” . we

sources and uses of cash the following table summarizes key components of our sources and uses of cash for the twelve months ended december 31 , 2019 and 2018 : replace_table_token_22_th for cash used in investing activities for the twelve months ended december 31 , 2019 , we purchased property and equipment for approximately $ 74.2 million , acquired imaging facilities for $ 27.2 million , made equity investments at fair value of $ 143,000 and an equity contribution to an existing joint venture of $ 103,000 . we received proceeds from the sale of equipment of $ 1,160,000 . the cash provided by financing activities for the twelve months ended december 31 , 2019 was mainly due to our additional term loan debt issuance of april 18 , 2019 , offset by payments on our term loans and revolving credit facility borrowings . we have entered into factoring agreements with various institutions and sold certain accounts receivable under non-recourse agreements . these transactions are accounted for as a reduction in accounts receivable as the agreements transfer effective control over and risk related to the receivables to the buyers . the aggregate gross amount factored under these facilities for the year ended december 31 , 2019 was approximately $ 9.0 million , inclusive of discount recorded to reflect the difference between market interest rates and the stated interest rate of the receivable . at december 31 , 2019 we have $ 24.2 million , net of discount , remaining to be collected on these agreements . we do not utilize factoring arrangements as an integral part of our financing for working capital . senior credit facilities : at december 31 , 2019 , our barclays credit facilities were comprised of one tranche of term loans ( “ first lien term loans ” ) and a revolving credit facility of $ 137.5 million ( the “ barclays revolving credit facility ” ) , both of which are provided pursuant to the amended and restated first lien credit and guaranty agreement dated july 1 , 2016 ( as amended , the `` first lien 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. ```sources and uses of cash the following table summarizes key components of our sources and uses of cash for the twelve months ended december 31 , 2019 and 2018 : replace_table_token_22_th for cash used in investing activities for the twelve months ended december 31 , 2019 , we purchased property and equipment for approximately $ 74.2 million , acquired imaging facilities for $ 27.2 million , made equity investments at fair value of $ 143,000 and an equity contribution to an existing joint venture of $ 103,000 . we received proceeds from the sale of equipment of $ 1,160,000 . the cash provided by financing activities for the twelve months ended december 31 , 2019 was mainly due to our additional term loan debt issuance of april 18 , 2019 , offset by payments on our term loans and revolving credit facility borrowings . we have entered into factoring agreements with various institutions and sold certain accounts receivable under non-recourse agreements . these transactions are accounted for as a reduction in accounts receivable as the agreements transfer effective control over and risk related to the receivables to the buyers . the aggregate gross amount factored under these facilities for the year ended december 31 , 2019 was approximately $ 9.0 million , inclusive of discount recorded to reflect the difference between market interest rates and the stated interest rate of the receivable . at december 31 , 2019 we have $ 24.2 million , net of discount , remaining to be collected on these agreements . we do not utilize factoring arrangements as an integral part of our financing for working capital . senior credit facilities : at december 31 , 2019 , our barclays credit facilities were comprised of one tranche of term loans ( “ first lien term loans ” ) and a revolving credit facility of $ 137.5 million ( the “ barclays revolving credit facility ” ) , both of which are provided pursuant to the amended and restated first lien credit and guaranty agreement dated july 1 , 2016 ( as amended , the `` first lien credit agreement '' ) . ``` Suspicious Activity Report : gsrn became our wholly owned subsidiary with the withdrawal of the 51 % majority partner for the full ownership of one center with no other consideration . we made a fair value determination of our original 49 % interest which resulted in a step-up gain of approximately 36 $ 1.3 million . we determined a fair value of the remaining acquired imaging center of $ 3.1 million in assets and $ 426,000 in liabilities were recognized . we recorded $ 1,000 in other assets , $ 679,000 in fixed assets , $ 426,000 in right-of-use assets , $ 426,000 in operating lease liabilities , and $ 2.0 million in goodwill . on august 1 , 2019 we completed a step-up acquisition of our former 25 % owned joint venture , nulogix , via a stock issuance of radnet common shares valued at $ 1.5 million to obtain the remaining 75 % outstanding nulogix shares . we made a fair value determination of the acquired assets and approximately $ 189,000 in fixed assets , $ 732,000 in intangible assets , $ 278,000 in deferred tax liability and goodwill of $ 1.3 million were recorded . we also made a fair value determination of our 25 % pre-existing interest in the business and recognized a loss of $ 504,000 which is included in operating expenses within the consolidated statements of operations . on april 1 , 2019 we completed our acquisition of certain assets of kern radiology imaging systems inc. , consisting of four multi-modality imaging centers located in bakersfield , california for purchase consideration of $ 19.3 million . we made a fair value determination of the acquired assets and assumed liabilities and approximately $ 10.1 million in property and equipment , $ 9.7 million in right-of-use assets , $ 36,000 in other assets , $ 3.4 million in intangible assets , $ 14.5 million in operating lease liabilities , and $ 10.5 million in goodwill were recorded . on april 1 , 2019 we completed our acquisition of certain assets of zilkha radiology inc. consisting of two multi-modality centers located in islip , new york for purchase consideration of $ 4.5 million . we made a fair value determination of the acquired assets and assumed liabilities and approximately $ 2.2 million in property and equipment , $ 5.1 million in right-of-use assets , $ 100,000 in intangible assets , $ 5.1 million in operating lease liabilities , $ 332,000 in finance lease liabilities and $ 2.6 million in goodwill were recorded . on february 28 , 2019 , one of our variable interest entities ( vies ) , lenox hill radiology and medical imaging associates , p.c . ( `` lhr `` ) , purchased the membership interest of hudson valley radiology associates , p.l.l.c . ( `` hvra `` ) for $ 6.0 million of radnet common stock and contingent consideration valued at $ 680,000 to guarantee the share value issued for a period of six months post acquisition date . lhr has performed a fair value purchase price allocation and recorded equipment of $ 10,000 , a covenant not to compete of $ 50,000 , trade name of $ 380,000 , other intangible assets of $ 340,000 and goodwill of $ 3.1 million from the transaction . in connection with the acquisition , radnet also settled against the purchase consideration , $ 2.8 million , net of taxes , of an unfavorable vendor contract with hvra stemming from the previous acquisition of radiologix , inc. in november 2006. on february 1 , 2019 , our majority owned subsidiary , west valley imaging group , llc ( `` wvig `` ) completed its acquisition of certain assets of west valley imaging center , llc ( `` west valley `` ) , consisting of a single multi-modality imaging center located in west hills , ca for purchase consideration of $ 3.0 million all of which was initially funded by the company . we have made a fair value determination of the acquired assets and approximately $ 300,000 in equipment and fixed assets , $ 7,000 in other assets , $ 200,000 in intangible assets and $ 2.5 million in goodwill were recorded . subsequent to the transaction , our partner in wvig , cedars sinai medical center , contributed $ 750,000 in cash to maintain its 25 % economic interest in the venture . on december 3 , 2018 we completed our acquisition of certain assets of orange county diagnostics imaging center consisting of five multi-modality imaging centers located in orange county , california for purchase consideration of $ 6.6 million . we have made a fair valuation determination of the acquired assets and approximately $ 23,000 of current assets , $ 69,000 of other assets , $ 2.8 million of leaseholds and equipment , a $ 50,000 of covenant not to compete , and $ 3.6 million of goodwill were recorded . on november 5 , 2018 we completed our acquisition of certain assets of arcadia radiology imaging consisting of one multi-modality imaging center and one women 's center located in arcadia , california for purchase consideration of $ 3.8 million . we have made a fair value determination of the acquired assets and approximately $ 20,000 of other assets , $ 819,000 of leaseholds , $ 80,000 equipment , $ 300,000 in covenants not to compete , and $ 2.6 million of goodwill were recorded . on november 1 , 2018 we completed our acquisition of certain assets of southern california diagnostic imaging consisting of a multi-modality imaging center located in santa ana , california for purchase consideration of $ 1.4 million . we have made a fair value determination of the acquired assets and approximately $ 18,000 of other assets , $ 1.2 million of leasehold improvements , $ 110,000 of equipment , $ 50,000 of covenants not to compete , and $ 41,000 of goodwill were recorded . story_separator_special_tag see “ liquidity and capital resources ” below for more details on our credit facilities . to mitigate our future interest expense exposure the company has entered into two forward interest rate cap agreements . see derivative instruments section of note 2 to the consolidated financial statements included in this annual report on form 10-k and item 7a , quantitative and qualitative disclosure about market risk below for more details on our derivative transactions . equity in earnings from unconsolidated joint ventures for the twelve months ended december 31 , 2019 we recognized equity in earnings from unconsolidated joint ventures of $ 8.3 million versus $ 11.4 million for the twelve months ended december 31 , 2018 , a decrease of $ 3.0 million or 26.6 % . the decrease was related to the assumption of operational control of the new jersey imaging network which became a consolidated subsidiary on october 1 , 2018. gain on re-measurement valuation of pre-existing interest on august 1 , 2019 we completed a step-up acquisition upon the dissolution of our former 49 % owned joint venture , garden state radiology llc ( `` gsrn `` ) . also on august 1 , 2019 , in a separate transaction , we issued radnet common stock in the amount of $ 1.5 million to acquire a 75 % controlling interest in our formerly 25 % owned joint venture nulogix . in both 43 instances , we made a fair value determination of our original interests , and recorded a step-up gain of approximately $ 1.3 million for the gsrn and recognized a a loss of $ 504,000 on our 25 % pre-existing interest in nulogix . in sum we recorded a net gain on re-measurement of approximately $ 800,000 for the year ended december 31 , 2019 on these transactions . on october 1 , 2018 we completed an step-up acquisition of new jersey imaging network , formerly a joint venture . the change in control was effective upon the execution of an agreement which provided radnet with the ability to make unanimous operating decisions . upon a fair value determination of our 49 % interest in the business of approximately $ 42.5 million , the step-up in valuation from an existing investment caused us to recognize a gain of $ 39.5 million for the year ended december 31 , 2018. other expenses / income for the year ended ended december 31 , 2019 we recorded approximately $ 1.3 million of other expenses and for the year ended december 31 , 2018 we recorded approximately $ 181,000 of other income , respectively . provision for income taxes we had a tax provision for the twelve months ended december 31 , 2019 of $ 6.2 million or 21.0 % of income before income taxes , compared to a tax provision for the twelve months ended december 31 , 2018 of $ 394,000 or 1.0 % of income before income taxes . income tax provision increased in 2019 primarily due to non-recognition of gain on re-measurement of pre-existing interest in the prior year . the income tax rates for the twelve months ended december 31 , 2019 diverge from the federal statutory rate due to noncontrolling interests of the controlled partnerships and the prior year adjustments partially offset by effects of state income taxes . year ended december 31 , 2018 compared to the year ended december 31 , 2017 for the comparison of results of operations for the year ended december 31 , 2018 to the year ended december 31 , 2017 , please see item 7 , management 's discussion and analysis of financial condition and operations in our form 10-k for the year ended december 31 , 2018 , filed with the sec on march 18 , 2019. non-gaap financial measures we use both gaap and non-gaap metrics to measure our financial results . we believe that , in addition to gaap metrics , non-gaap metrics such as adjusted ebitda and free cash flow assist us in measuring our cash generated from operations and ability to service our debt obligations . adjusted ebitda our adjusted ebitda metric removes non-cash and non-recurring charges that occur in the affected period and provides a basis for measuring the company 's core financial performance against other periods . we define adjusted ebitda as earnings before interest , taxes , depreciation and amortization , as adjusted to exclude losses or gains on the disposal of equipment , other income or loss , loss on debt extinguishment , bargain purchase gains , loss on de-consolidation of joint ventures and non-cash equity compensation . adjusted ebitda includes equity earnings in unconsolidated operations and subtracts allocations of earnings to non-controlling interests in subsidiaries , and is adjusted for non-cash or one-time events that take place during the period . adjusted ebitda is a non-gaap financial measure used as an analytical indicator by us and the healthcare industry to assess business performance , and is a measure of leverage capacity and ability to service debt . adjusted ebitda should not be considered a measure of financial performance under gaap , and adjusted ebitda should not be considered in isolation or as alternatives to net income , cash flows generated by operating , investing or financing activities or other financial statement data presented in the consolidated financial statements as an indicator of financial performance or liquidity . adjusted ebitda is not a measurement determined in accordance with gaap and is therefore susceptible to varying methods of calculation , this metric , as presented , may not be comparable to other similarly titled measures of other companies . the following is a reconciliation of the nearest comparable gaap financial measure , net income , to adjusted ebitda for the years ended december 31 , 2019 , 2018 , and 2017 , respectively ( in thousands ) : 44 replace_table_token_19_th free cash flow another non-gaap measure that we use is “ free cash flow ” . we

this change in the sale methodology resulted in the need to extend the period to complete the sale of the remainder of the lending segment beyond one year . on december 17 , 2015 , pursuant to the modified plan , we sold substantially all of our commercial mortgage loans with a carrying value of $ 77,121,000 to an unrelated third party and recognized a gain of $ 5,151,000 . in september 2016 , we discontinued our efforts to sell the sba 7 ( a ) lending platform , and the activities related to the sba 7 ( a ) lending platform have been reclassified to continuing operations for all periods presented . on december 29 , 2016 , we sold our commercial real estate lending subsidiary , which was classified as held for sale and had a carrying value of $ 27,587,000 , which was equal to management 's estimate of fair value , to a fund managed by an affiliate of cim group . we did not recognize any gain or loss in connection with the transaction . management 's estimate of fair value was determined with assistance from an independent third party valuation firm . business overview our principal business is to invest in , own , and operate class a and creative office investments in vibrant and improving urban communities throughout the united states . these communities are located in areas that include traditional downtown areas and suburban main streets , which have high barriers to entry , high population density , improving demographic trends and a propensity for growth . we believe that the critical mass of redevelopment in such areas creates positive externalities , which enhance the value of substantially stabilized assets in the area . we believe that these assets will provide greater returns than similar assets in other markets , as a result of the improving demographics , public commitment , and significant private investment that characterize these areas . our two primary goals are ( a ) consistently growing our nav and cash flows per share of common stock through our principal business and ( b ) providing liquidity to our common stockholders at prices reflecting our nav and cash flow prospects . in that regard , in june 2016 we completed a tender offer for 10 million shares of common stock at a price of $ 21.00 per share of common stock , and in september 2016 , we repurchased in a privately negotiated transaction , 3,628,116 shares of our common stock at $ 22.00 per share from urban ii . in furtherance of our two primary goals , we anticipate additional such transactions in the future . we are also exploring alternative means of providing liquidity to the stockholders that did not participate in the september 2016 and or any subsequent private repurchases , to allow those stockholders to receive the economic benefit of such private repurchase ( s ) . we are managed by affiliates of cim group . cim group is a vertically-integrated , full-service investment manager with multidisciplinary expertise and in-house research , acquisition , investment , development , finance , leasing , and management capabilities . cim group is headquartered in los angeles , california and has offices in oakland , california ; bethesda , maryland ; dallas , texas ; and new york , new york . we seek to utilize the cim platform to acquire and improve assets within cim 's qualified communities . we believe assets in these markets provide greater returns as a result of improving demographics , public commitment , and significant private investment within the areas . over time , we seek to expand our real estate investments in communities targeted by cim group for investment , supported by cim group 's broad real estate investment capabilities , as part of our plan to prudently grow market value and earnings . as a matter of prudent management , we also regularly evaluate each investment within our portfolio as well as our strategies . such review may result in dispositions when an investment no longer fits our overall objectives or investment strategies or when our view of the market value of such investment is equal to or exceeds its intrinsic value . as a result of such review , we sold an office building in santa ana , california in november 2015 , a hotel in oakland , california in february 2016 , a hotel in los angeles , california in july 2016 and we entered into an agreement in february 2017 to sell an office building in san francisco , california . such review is likely to result in additional dispositions in 2017. the net proceeds of such dispositions may be used to provide liquidity to our common stockholders at prices reflecting our nav and cash flow prospects . 59 properties as of december 31 , 2016 , our real estate portfolio consisted of 31 assets , all of which are fee-simple properties except one leasehold property . as of december 31 , 2016 , our 24 office properties ( including two parking garages , one of which has street level retail space , and two development sites , one of which is being used as a parking lot ) , totaling approximately 5.6 million rentable square feet , were 85.7 % occupied ; our multifamily properties , comprised of 930 units , were 92.0 % occupied ; and one hotel , which has a total of 503 rooms , had revpar of $ 119.44 for the year ended december 31 , 2016 . strategy our investment strategy is to continue to primarily invest in class a and creative office investments in vibrant and improving urban communities throughout the united states in a manner that will allow us to increase our nav and cash flows per share of common stock . our investment strategy is centered around cim 's community qualification process . story_separator_special_tag expenses office expenses : office expenses increased by 2.1 % to $ 82,451,000 for the year ended december 31 , 2016 compared to $ 80,785,000 for the year ended december 31 , 2015 . the increase is primarily due to an increase in real estate taxes at certain of our california properties , due to supplemental tax assessments received during 2016 , and an increase in earthquake insurance premiums at our california properties . the increase at our california properties is partially offset by a decrease in electricity expense at our washington d.c. properties , a decrease in certain other tenant reimbursable expenses at one of our washington d.c. properties , and a decrease in expenses associated with our santa ana , california property sold in november 2015. further , the pending sale of an office building in san francisco , if completed , will , and the sale of any additional office properties during 2017 would , cause office expenses to decline in 2017. however , the magnitude of any such decrease can not be predicted with much accuracy as it will depend on a number of factors such as the number of dispositions that may occur in 2017 and changes to expenses at existing properties . hotel expenses : hotel expenses decreased to $ 32,459,000 , or by 22.7 % , for the year ended december 31 , 2016 compared to $ 41,974,000 for the year ended december 31 , 2015 . the decrease is primarily due to the sale of our hotel properties in february and july 2016 , partially offset by an increase at our remaining hotel property in operating costs and an increase in real estate taxes due to a reduction in tax accruals during 2015 following the receipt of the actual tax assessment . our hotel expenses are expected to decline materially in 2017 as we sold two of our hotels in 2016 . multifamily expenses : multifamily expenses increased to $ 12,357,000 , or by 1.6 % , for the year ended december 31 , 2016 compared to $ 12,168,000 for the year ended december 31 , 2015 . the increase is primarily due to an increase in legal fees in 2016 at our new york property , as well as increases in real estate taxes at our dallas properties , partially offset by lower expenses associated with operating our new york property , which was in the process of being re-leased as individual units during 2015 following the termination of the lease by our corporate housing tenant . lending expenses : represents expenses from our lending subsidiaries included in continuing operations , including general and administrative expenses and fees to related party , related to the operation of the lending business . lending expenses decreased by 8.2 % to $ 5,258,000 for the year ended december 31 , 2016 compared to $ 5,727,000 for the year ended december 31 , 2015 , primarily due to a decrease in the amount of reimbursement of fees to related party as a result of decreased payroll and related expenses , and lower interest expense as a result of secured borrowing prepayments and amortization of related deferred premiums . asset management and other fees to related parties : asset management fees totaled $ 25,753,000 for the year ended december 31 , 2016 compared to $ 24,882,000 for the year ended december 31 , 2015 . asset management fees are calculated based on a percentage of the daily average adjusted fair value of cim urban 's investments , which are appraised in the fourth quarter of each year . the higher fees reflect a net increase in the fair value of cim urban 's real estate investments based on the december 31 , 2015 appraised values , as well as incremental capital expenditures during 2016 , offset by decreases as a result of dispositions . cim commercial also pays a base service fee to the manager , a related party , which totaled $ 1,043,000 for the year ended december 31 , 2016 compared to $ 1,010,000 for the year ended december 31 , 2015 . in addition , the manager may receive compensation and or reimbursement for performing certain services for cim commercial and its subsidiaries that are not covered under the base service fee . for the years ended december 31 , 2016 and 2015 , we expensed $ 3,120,000 and $ 2,993,000 for such services , respectively . for the years ended december 31 , 2016 and 2015 , we also expensed $ 411,000 and $ 434,000 , respectively , related to corporate services subject to reimbursement by us under the cim sba staffing and reimbursement agreement . interest expense : interest expense , which is not allocated to our operating segments , was $ 33,848,000 for the year ended december 31 , 2016 , an increase of $ 11,063,000 , as compared to $ 22,785,000 for the year ended december 31 , 2015 . the increase is mainly due to higher average outstanding loan balances under the unsecured credit and term loan facilities during 2016 compared to 2015 combined with a higher overall interest rate including the impact of interest rate swaps , and interest expense on our $ 392,000,000 mortgage loans entered into in june 2016 , partially offset by lower interest expense as a result of the repayment of $ 71,237,000 in fixed rate mortgages in april and september 2015. our interest expense is expected to increase in 2017 , as the mortgage loans entered into in 2016 will be outstanding for the full year in 2017. however , the 65 magnitude of any such increase can not be predicted with much accuracy as it will depend on a number of factors such as usage of our revolving credit facility and whether any sale of encumbered properties occurs . general and administrative expenses : general and administrative expenses , which have not been allocated to our operating segments , were $

cash flow analysis comparison of the year ended december 31 , 2016 to the year ended december 31 , 2015 our cash and cash equivalents , inclusive of cash associated with assets held for sale , totaled $ 144,449,000 and $ 140,572,000 at december 31 , 2016 and 2015 , respectively . our cash flows from operating activities are primarily dependent upon the occupancy level of our real estate assets , the rental rates achieved through our leases , and the collectability of rent and recoveries from our tenants . our cash flows from operating activities are also impacted by fluctuations in operating expenses 71 and other general and administrative costs . net cash provided by operating activities totaled $ 51,873,000 for the year ended december 31 , 2016 compared to $ 77,035,000 for the year ended december 31 , 2015 . the decrease is mainly due to a decrease of $ 21,261,000 in net income adjusted for the gain on real estate and gain on disposition of assets held for sale , a decrease of $ 8,615,000 resulting from increased funding for loans , and a decrease of $ 9,444,000 resulting from a higher level of working capital used , partially offset by an increase of $ 10,562,000 in proceeds from sale of guaranteed loans . our cash flows from investing activities are primarily related to property investments and sales , expenditures for development and redevelopment projects , capital expenditures and cash flows associated with loans originated at our lending segment . net cash provided by investing activities for the year ended december 31 , 2016 was $ 29,526,000 compared to $ 64,272,000 in the corresponding period 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 flow analysis comparison of the year ended december 31 , 2016 to the year ended december 31 , 2015 our cash and cash equivalents , inclusive of cash associated with assets held for sale , totaled $ 144,449,000 and $ 140,572,000 at december 31 , 2016 and 2015 , respectively . our cash flows from operating activities are primarily dependent upon the occupancy level of our real estate assets , the rental rates achieved through our leases , and the collectability of rent and recoveries from our tenants . our cash flows from operating activities are also impacted by fluctuations in operating expenses 71 and other general and administrative costs . net cash provided by operating activities totaled $ 51,873,000 for the year ended december 31 , 2016 compared to $ 77,035,000 for the year ended december 31 , 2015 . the decrease is mainly due to a decrease of $ 21,261,000 in net income adjusted for the gain on real estate and gain on disposition of assets held for sale , a decrease of $ 8,615,000 resulting from increased funding for loans , and a decrease of $ 9,444,000 resulting from a higher level of working capital used , partially offset by an increase of $ 10,562,000 in proceeds from sale of guaranteed loans . our cash flows from investing activities are primarily related to property investments and sales , expenditures for development and redevelopment projects , capital expenditures and cash flows associated with loans originated at our lending segment . net cash provided by investing activities for the year ended december 31 , 2016 was $ 29,526,000 compared to $ 64,272,000 in the corresponding period in 2015 . ``` Suspicious Activity Report : this change in the sale methodology resulted in the need to extend the period to complete the sale of the remainder of the lending segment beyond one year . on december 17 , 2015 , pursuant to the modified plan , we sold substantially all of our commercial mortgage loans with a carrying value of $ 77,121,000 to an unrelated third party and recognized a gain of $ 5,151,000 . in september 2016 , we discontinued our efforts to sell the sba 7 ( a ) lending platform , and the activities related to the sba 7 ( a ) lending platform have been reclassified to continuing operations for all periods presented . on december 29 , 2016 , we sold our commercial real estate lending subsidiary , which was classified as held for sale and had a carrying value of $ 27,587,000 , which was equal to management 's estimate of fair value , to a fund managed by an affiliate of cim group . we did not recognize any gain or loss in connection with the transaction . management 's estimate of fair value was determined with assistance from an independent third party valuation firm . business overview our principal business is to invest in , own , and operate class a and creative office investments in vibrant and improving urban communities throughout the united states . these communities are located in areas that include traditional downtown areas and suburban main streets , which have high barriers to entry , high population density , improving demographic trends and a propensity for growth . we believe that the critical mass of redevelopment in such areas creates positive externalities , which enhance the value of substantially stabilized assets in the area . we believe that these assets will provide greater returns than similar assets in other markets , as a result of the improving demographics , public commitment , and significant private investment that characterize these areas . our two primary goals are ( a ) consistently growing our nav and cash flows per share of common stock through our principal business and ( b ) providing liquidity to our common stockholders at prices reflecting our nav and cash flow prospects . in that regard , in june 2016 we completed a tender offer for 10 million shares of common stock at a price of $ 21.00 per share of common stock , and in september 2016 , we repurchased in a privately negotiated transaction , 3,628,116 shares of our common stock at $ 22.00 per share from urban ii . in furtherance of our two primary goals , we anticipate additional such transactions in the future . we are also exploring alternative means of providing liquidity to the stockholders that did not participate in the september 2016 and or any subsequent private repurchases , to allow those stockholders to receive the economic benefit of such private repurchase ( s ) . we are managed by affiliates of cim group . cim group is a vertically-integrated , full-service investment manager with multidisciplinary expertise and in-house research , acquisition , investment , development , finance , leasing , and management capabilities . cim group is headquartered in los angeles , california and has offices in oakland , california ; bethesda , maryland ; dallas , texas ; and new york , new york . we seek to utilize the cim platform to acquire and improve assets within cim 's qualified communities . we believe assets in these markets provide greater returns as a result of improving demographics , public commitment , and significant private investment within the areas . over time , we seek to expand our real estate investments in communities targeted by cim group for investment , supported by cim group 's broad real estate investment capabilities , as part of our plan to prudently grow market value and earnings . as a matter of prudent management , we also regularly evaluate each investment within our portfolio as well as our strategies . such review may result in dispositions when an investment no longer fits our overall objectives or investment strategies or when our view of the market value of such investment is equal to or exceeds its intrinsic value . as a result of such review , we sold an office building in santa ana , california in november 2015 , a hotel in oakland , california in february 2016 , a hotel in los angeles , california in july 2016 and we entered into an agreement in february 2017 to sell an office building in san francisco , california . such review is likely to result in additional dispositions in 2017. the net proceeds of such dispositions may be used to provide liquidity to our common stockholders at prices reflecting our nav and cash flow prospects . 59 properties as of december 31 , 2016 , our real estate portfolio consisted of 31 assets , all of which are fee-simple properties except one leasehold property . as of december 31 , 2016 , our 24 office properties ( including two parking garages , one of which has street level retail space , and two development sites , one of which is being used as a parking lot ) , totaling approximately 5.6 million rentable square feet , were 85.7 % occupied ; our multifamily properties , comprised of 930 units , were 92.0 % occupied ; and one hotel , which has a total of 503 rooms , had revpar of $ 119.44 for the year ended december 31 , 2016 . strategy our investment strategy is to continue to primarily invest in class a and creative office investments in vibrant and improving urban communities throughout the united states in a manner that will allow us to increase our nav and cash flows per share of common stock . our investment strategy is centered around cim 's community qualification process . story_separator_special_tag expenses office expenses : office expenses increased by 2.1 % to $ 82,451,000 for the year ended december 31 , 2016 compared to $ 80,785,000 for the year ended december 31 , 2015 . the increase is primarily due to an increase in real estate taxes at certain of our california properties , due to supplemental tax assessments received during 2016 , and an increase in earthquake insurance premiums at our california properties . the increase at our california properties is partially offset by a decrease in electricity expense at our washington d.c. properties , a decrease in certain other tenant reimbursable expenses at one of our washington d.c. properties , and a decrease in expenses associated with our santa ana , california property sold in november 2015. further , the pending sale of an office building in san francisco , if completed , will , and the sale of any additional office properties during 2017 would , cause office expenses to decline in 2017. however , the magnitude of any such decrease can not be predicted with much accuracy as it will depend on a number of factors such as the number of dispositions that may occur in 2017 and changes to expenses at existing properties . hotel expenses : hotel expenses decreased to $ 32,459,000 , or by 22.7 % , for the year ended december 31 , 2016 compared to $ 41,974,000 for the year ended december 31 , 2015 . the decrease is primarily due to the sale of our hotel properties in february and july 2016 , partially offset by an increase at our remaining hotel property in operating costs and an increase in real estate taxes due to a reduction in tax accruals during 2015 following the receipt of the actual tax assessment . our hotel expenses are expected to decline materially in 2017 as we sold two of our hotels in 2016 . multifamily expenses : multifamily expenses increased to $ 12,357,000 , or by 1.6 % , for the year ended december 31 , 2016 compared to $ 12,168,000 for the year ended december 31 , 2015 . the increase is primarily due to an increase in legal fees in 2016 at our new york property , as well as increases in real estate taxes at our dallas properties , partially offset by lower expenses associated with operating our new york property , which was in the process of being re-leased as individual units during 2015 following the termination of the lease by our corporate housing tenant . lending expenses : represents expenses from our lending subsidiaries included in continuing operations , including general and administrative expenses and fees to related party , related to the operation of the lending business . lending expenses decreased by 8.2 % to $ 5,258,000 for the year ended december 31 , 2016 compared to $ 5,727,000 for the year ended december 31 , 2015 , primarily due to a decrease in the amount of reimbursement of fees to related party as a result of decreased payroll and related expenses , and lower interest expense as a result of secured borrowing prepayments and amortization of related deferred premiums . asset management and other fees to related parties : asset management fees totaled $ 25,753,000 for the year ended december 31 , 2016 compared to $ 24,882,000 for the year ended december 31 , 2015 . asset management fees are calculated based on a percentage of the daily average adjusted fair value of cim urban 's investments , which are appraised in the fourth quarter of each year . the higher fees reflect a net increase in the fair value of cim urban 's real estate investments based on the december 31 , 2015 appraised values , as well as incremental capital expenditures during 2016 , offset by decreases as a result of dispositions . cim commercial also pays a base service fee to the manager , a related party , which totaled $ 1,043,000 for the year ended december 31 , 2016 compared to $ 1,010,000 for the year ended december 31 , 2015 . in addition , the manager may receive compensation and or reimbursement for performing certain services for cim commercial and its subsidiaries that are not covered under the base service fee . for the years ended december 31 , 2016 and 2015 , we expensed $ 3,120,000 and $ 2,993,000 for such services , respectively . for the years ended december 31 , 2016 and 2015 , we also expensed $ 411,000 and $ 434,000 , respectively , related to corporate services subject to reimbursement by us under the cim sba staffing and reimbursement agreement . interest expense : interest expense , which is not allocated to our operating segments , was $ 33,848,000 for the year ended december 31 , 2016 , an increase of $ 11,063,000 , as compared to $ 22,785,000 for the year ended december 31 , 2015 . the increase is mainly due to higher average outstanding loan balances under the unsecured credit and term loan facilities during 2016 compared to 2015 combined with a higher overall interest rate including the impact of interest rate swaps , and interest expense on our $ 392,000,000 mortgage loans entered into in june 2016 , partially offset by lower interest expense as a result of the repayment of $ 71,237,000 in fixed rate mortgages in april and september 2015. our interest expense is expected to increase in 2017 , as the mortgage loans entered into in 2016 will be outstanding for the full year in 2017. however , the 65 magnitude of any such increase can not be predicted with much accuracy as it will depend on a number of factors such as usage of our revolving credit facility and whether any sale of encumbered properties occurs . general and administrative expenses : general and administrative expenses , which have not been allocated to our operating segments , were $

section 107 of the jobs act provides that an “ emerging growth company ” can take advantage of the extended transition period provided in section 7 ( a ) ( 2 ) ( b ) of the securities act of 1933 , as amended , or the securities act , for complying with new or revised accounting standards . in other words , an “ emerging growth company ” can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies . we are in the process of evaluating the benefits of relying on other exemptions and reduced reporting requirements provided by the jobs act . subject to certain conditions set forth in the jobs act , as an “ emerging growth company , ” we intend to rely on certain of these exemptions from , without limitation , ( i ) providing an auditor 's attestation report on our system of internal controls over financial reporting pursuant to section 404 ( b ) of the sarbanes-oxley act and ( ii ) complying with any requirement that may be adopted by the public company accounting oversight board ( pcaob ) regarding mandatory audit firm rotation or a supplement to the auditor 's report providing additional information about the audit and the financial statements , known as the auditor discussion and analysis . we will remain an “ emerging growth company ” until the earliest of ( a ) the last day of our fiscal year following the fifth anniversary of the ipo , ( b ) the last day of the first fiscal year in which our annual gross revenues exceed $ 1.07 billion , ( c ) the last day of our fiscal year in which we are deemed to be a “ large accelerated filer ” as defined in rule 12b-2 under the securities exchange act of 1934 , or exchange act ( which would occur if the market value of our equity securities that is held by non-affiliates exceeds $ 700 million as of the last business day of our most recently completed second fiscal quarter ) , or ( d ) the date on which we have issued more than $ 1 billion in nonconvertible debt during the preceding three-year period . 15 for the year ended december 31 , 2018 for the year ended december 31 , 2018 compared to the year ended december 31 , 2017 revenues revenues for the years ended december 31 , 2018 and 2017 were $ 15,289,400 and $ 14,201,836 , respectively , consisted of metal goods and soft goods sold to customers . revenues increased in 2018 over 2017 by $ 1,087,564 , or 7.7 % , primarily due to wide acceptance of our products in the tools industry and receipt of recurring sales orders for metal goods and soft goods from our existing customers and new customers , and introduction and sale of new soft goods products to our customers . cost of goods sold cost of goods sold for the years ended december 31 , 2018 and 2017 was $ 11,794,206 and $ 10,234,838 , respectively . cost of goods sold increased in 2018 over 2017 by $ 1,559,368 or 15.2 % , primarily due to the increase in materials cost of steel and plastics polyester to manufacture metal goods and soft goods and increase in labor cost in china . cost of goods sold as a percentage of revenues in 2018 was 77.1 % as compared to cost of goods sold as a percentage of revenues in 2017 of 72.1 % . we expect to reverse the trend and reduce our cost of goods sold as a percentage of revenue as we achieve operational efficiencies in production and work with automated state of the art factories to manufacture our product lines . operating expenses operating expenses consist of selling , general and administrative expenses , litigation expense , and research and development costs . selling , general and administrative expenses ( the “ sg & a expenses ” ) for the years ended december 31 , 2018 and 2017 were $ 6,937,704 and $ 6,070,868 , respectively . sg & a expenses increased in 2018 over 2017 by $ 866,836 or 14 % , primarily due to hiring additional employees , independent contractors and consultants to grow the company . sg & a expense in 2018 as a percentage of revenues was 45.4 % as compared to sg & a expense in 2017 as a percentage of revenues was 42.7 % . we expect our sg & a expense will continue to increase as the company plans to bring professional management team and staff on board , expend cash to raise capital for new products development , and acquire a new warehouse/storage facility to expand its operations and maintain finished products inventory on hand . litigation expense for the years ended december 31 , 2018 and 2017 was $ 1,192,488 and $ 0 , respectively . litigation expense consisted of a cash award of $ 252,950 and issuance of shares of common stock reflecting 7 % ownership stake in us to edwin minassian in satisfaction of the judgments . we have recorded the litigation expense of $ 1,192,488 and have satisfied the judgments by payment of $ 252,950 and by issuing him shares of common stock reflecting a 7 % ownership stake in us . research and development costs ( the “ r & d ” ) for the years ended december 31 , 2018 and 2017 were $ 1,816,389 and $ 1,675,093 , respectively . story_separator_special_tag however , the company can not assure that it will be able to raise additional capital on acceptable terms , or at all . subject to the foregoing , management believes that the company has sufficient capital and liquidity to fund its operations for at least one year from the date of issuance of the accompanying financial statements . story_separator_special_tag 0 ; text-align : justify `` > on may 2 , 2018 , the company conducted a confidential private placement of its securities in which the company offered to sell a maximum 140,000 units to certain accredited investors , with each such unit consisting of ( i ) one half of a share of the company 's class b convertible preferred stock , par value of $ 0.0001 per share , and ( ii ) one half of a warrant to purchase one half of a share of the company 's common stock , par value $ 0.0001 per share . each unit will be sold at a price of $ 5.00 per unit . each warrant has an initial exercise price of $ 12.00 per share , subject to adjustment , and is exercisable for a period of five years from the date of issuance . the company sold all 140,000 units for gross proceeds of $ 700,000 , and received cash proceeds of $ 587,957 on may 15 , 2018 , net of commissions and fees of $ 74,574 earned by the placement agent on capital raise , $ 33,469 in legal fees , and $ 4,000 in escrow fees . the company issued to the underwriter 3,500 placement agent warrants at their fair value of $ 12,527 . 18 august 2018 financing pursuant to the terms of august 2018 financing , the company executed six ( 6 ) promissory notes , unsecured , with original issuance debt discount of 15 % , for a cumulative principal sum of $ 862,500 on september 4 , 2018. the company promised to pay the note holders the principal sum of $ 862,500 on earlier of ( i ) the third trading day after the closing of the company 's initial public offering , and ( ii ) november 30 , 2018 or such earlier date as these promissory notes are required or permitted to be repaid . on closing of this offering , on september 5 , 2018 , the company received cash proceeds of $ 652,579 , net of commission and fees of $ 62,850 earned by the placement agent on capital raise , $ 30,571 in legal fees , and $ 4,000 in escrow fees . in addition , the company issued to the six note holders 18,750 shares of class b convertible preferred stock valued at $ 120,394 , and 7,500 warrants to the placement agent , valued at their fair value of $ 26,843. on october 19 , 2018 , the holders of these notes agreed to convert all amounts due to them into unregistered class a units at a per unit conversion price equal to 80 % of the per unit purchase price of a class a unit in the company 's initial public offering . initial public offering on november 14 , 2018 , the company consummated its ipo whereby it sold a total of 2,670,000 class a units , each unit consisting of one share of common stock , par value $ 0.0001 per share , and a series a warrant to purchase one share of common stock and a series b warrant to purchase one share of common stock , on an offer price of $ 5.00 for each unit of a share and a series a warrant and a series b warrant ( “ class a unit ” ) . the company received net proceeds from the ipo of $ 12,415,500 after deducting underwriting discounts and commission of $ 934,500. the company incurred $ 743,765 in expenses related to the ipo . $ 3,657,507 of the proceeds were allocated to warrant derivative on our balance sheet as a result of our series b warrant issuance which were deemed to be a derivative liability . november 2018 private transactions concurrent with the closing of the ipo on november 14 , 2018 , the following private transactions were consummated in accordance with the related agreements ( see notes 6 , 7 , 8 and 9 of the financial statements ) , all in transactions exempt from registration under section 4 ( a ) ( 2 ) of the securities act of 1933 , as amended : ( a ) 1,366,768 unregistered class a units were issued upon the conversion of outstanding shares of class b convertible preferred stock at a conversion price of $ 3.50 per class a unit . ( b ) 42,105 unregistered shares of common stock were issued upon conversion of the $ 200,000 principal amount of a promissory note due to an officer at a conversion price of $ 4.75 per share . ( c ) 1,726,678 unregistered class a units were issued upon conversion of outstanding convertible debt instruments ( consisting of all principal amounts and accrued and unpaid interest through the date of the ipo ) at a conversion price of $ 5.00 per unit . ( d ) 136,863 unregistered shares of common stock were issued upon conversion of $ 650,100 of accrued and unpaid salaries to officers and directors at a conversion price of $ 4.75 per share . ( e ) 215,625 unregistered class a units issued upon the conversion of outstanding principal amount of unsecured promissory notes at a conversion price of $ 4.00 per unit . on december 17 , 2018 , pursuant to the underwriting agreement dated november 8 , 2018 , by and between the company and the underwriters , the underwriters agreed to partially exercise the over-allotment option to purchase an additional 25,000 shares of common stock , par value $ 0.0001 , at a price of $ 4.98

cash flows net cash flows used in operating activities for the year ended december 31 , 2018 was $ 8,243,414 , attributable to a net loss of $ 27,651,412 , offset by depreciation expense of $ 120,723 , amortization of original issuance of debt discount and debt issuance cost and non-cash inducement cost for debt conversion of $ 5,278,132 , change in the fair value of warrant derivative of $ 14,336,425 , stock-based litigation settlement expense of $ 939,538 , stock-based compensation expense of $ 557,042 , stock issued in lieu of deferred salaries of $ 650,100 and net increase in operating assets of $ 1,154,073 , and net decrease in liabilities of $ 1,319,889. the company offered cash discounts to its customers and factors to accelerate payments of accounts receivable . in addition , the company negotiated extended payment terms with its suppliers , vendors and related parties to conserve its cash . net cash flows used in operating activities for the year ended december 31 , 2017 was $ 1,429,468 , attributable to net loss of $ 5,941,457 , offset by depreciation expense of $ 119,627 , amortization of original issuance of debt discount and debt issuance cost of $ 1,089,204 , stock-based compensation expense of $ 112,215 , and net increase in operating assets of $ 326,576 , and net increase in liabilities of $ 3,517,519 . 17 there was no net cash used by investing activities for the year ended december 31 , 2018. net cash used by investing activities for the year ended december 31 , 2017 was $ 69,926 , attributable to cash paid for purchase of 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. ```cash flows net cash flows used in operating activities for the year ended december 31 , 2018 was $ 8,243,414 , attributable to a net loss of $ 27,651,412 , offset by depreciation expense of $ 120,723 , amortization of original issuance of debt discount and debt issuance cost and non-cash inducement cost for debt conversion of $ 5,278,132 , change in the fair value of warrant derivative of $ 14,336,425 , stock-based litigation settlement expense of $ 939,538 , stock-based compensation expense of $ 557,042 , stock issued in lieu of deferred salaries of $ 650,100 and net increase in operating assets of $ 1,154,073 , and net decrease in liabilities of $ 1,319,889. the company offered cash discounts to its customers and factors to accelerate payments of accounts receivable . in addition , the company negotiated extended payment terms with its suppliers , vendors and related parties to conserve its cash . net cash flows used in operating activities for the year ended december 31 , 2017 was $ 1,429,468 , attributable to net loss of $ 5,941,457 , offset by depreciation expense of $ 119,627 , amortization of original issuance of debt discount and debt issuance cost of $ 1,089,204 , stock-based compensation expense of $ 112,215 , and net increase in operating assets of $ 326,576 , and net increase in liabilities of $ 3,517,519 . 17 there was no net cash used by investing activities for the year ended december 31 , 2018. net cash used by investing activities for the year ended december 31 , 2017 was $ 69,926 , attributable to cash paid for purchase of property and equipment . ``` Suspicious Activity Report : section 107 of the jobs act provides that an “ emerging growth company ” can take advantage of the extended transition period provided in section 7 ( a ) ( 2 ) ( b ) of the securities act of 1933 , as amended , or the securities act , for complying with new or revised accounting standards . in other words , an “ emerging growth company ” can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies . we are in the process of evaluating the benefits of relying on other exemptions and reduced reporting requirements provided by the jobs act . subject to certain conditions set forth in the jobs act , as an “ emerging growth company , ” we intend to rely on certain of these exemptions from , without limitation , ( i ) providing an auditor 's attestation report on our system of internal controls over financial reporting pursuant to section 404 ( b ) of the sarbanes-oxley act and ( ii ) complying with any requirement that may be adopted by the public company accounting oversight board ( pcaob ) regarding mandatory audit firm rotation or a supplement to the auditor 's report providing additional information about the audit and the financial statements , known as the auditor discussion and analysis . we will remain an “ emerging growth company ” until the earliest of ( a ) the last day of our fiscal year following the fifth anniversary of the ipo , ( b ) the last day of the first fiscal year in which our annual gross revenues exceed $ 1.07 billion , ( c ) the last day of our fiscal year in which we are deemed to be a “ large accelerated filer ” as defined in rule 12b-2 under the securities exchange act of 1934 , or exchange act ( which would occur if the market value of our equity securities that is held by non-affiliates exceeds $ 700 million as of the last business day of our most recently completed second fiscal quarter ) , or ( d ) the date on which we have issued more than $ 1 billion in nonconvertible debt during the preceding three-year period . 15 for the year ended december 31 , 2018 for the year ended december 31 , 2018 compared to the year ended december 31 , 2017 revenues revenues for the years ended december 31 , 2018 and 2017 were $ 15,289,400 and $ 14,201,836 , respectively , consisted of metal goods and soft goods sold to customers . revenues increased in 2018 over 2017 by $ 1,087,564 , or 7.7 % , primarily due to wide acceptance of our products in the tools industry and receipt of recurring sales orders for metal goods and soft goods from our existing customers and new customers , and introduction and sale of new soft goods products to our customers . cost of goods sold cost of goods sold for the years ended december 31 , 2018 and 2017 was $ 11,794,206 and $ 10,234,838 , respectively . cost of goods sold increased in 2018 over 2017 by $ 1,559,368 or 15.2 % , primarily due to the increase in materials cost of steel and plastics polyester to manufacture metal goods and soft goods and increase in labor cost in china . cost of goods sold as a percentage of revenues in 2018 was 77.1 % as compared to cost of goods sold as a percentage of revenues in 2017 of 72.1 % . we expect to reverse the trend and reduce our cost of goods sold as a percentage of revenue as we achieve operational efficiencies in production and work with automated state of the art factories to manufacture our product lines . operating expenses operating expenses consist of selling , general and administrative expenses , litigation expense , and research and development costs . selling , general and administrative expenses ( the “ sg & a expenses ” ) for the years ended december 31 , 2018 and 2017 were $ 6,937,704 and $ 6,070,868 , respectively . sg & a expenses increased in 2018 over 2017 by $ 866,836 or 14 % , primarily due to hiring additional employees , independent contractors and consultants to grow the company . sg & a expense in 2018 as a percentage of revenues was 45.4 % as compared to sg & a expense in 2017 as a percentage of revenues was 42.7 % . we expect our sg & a expense will continue to increase as the company plans to bring professional management team and staff on board , expend cash to raise capital for new products development , and acquire a new warehouse/storage facility to expand its operations and maintain finished products inventory on hand . litigation expense for the years ended december 31 , 2018 and 2017 was $ 1,192,488 and $ 0 , respectively . litigation expense consisted of a cash award of $ 252,950 and issuance of shares of common stock reflecting 7 % ownership stake in us to edwin minassian in satisfaction of the judgments . we have recorded the litigation expense of $ 1,192,488 and have satisfied the judgments by payment of $ 252,950 and by issuing him shares of common stock reflecting a 7 % ownership stake in us . research and development costs ( the “ r & d ” ) for the years ended december 31 , 2018 and 2017 were $ 1,816,389 and $ 1,675,093 , respectively . story_separator_special_tag however , the company can not assure that it will be able to raise additional capital on acceptable terms , or at all . subject to the foregoing , management believes that the company has sufficient capital and liquidity to fund its operations for at least one year from the date of issuance of the accompanying financial statements . story_separator_special_tag 0 ; text-align : justify `` > on may 2 , 2018 , the company conducted a confidential private placement of its securities in which the company offered to sell a maximum 140,000 units to certain accredited investors , with each such unit consisting of ( i ) one half of a share of the company 's class b convertible preferred stock , par value of $ 0.0001 per share , and ( ii ) one half of a warrant to purchase one half of a share of the company 's common stock , par value $ 0.0001 per share . each unit will be sold at a price of $ 5.00 per unit . each warrant has an initial exercise price of $ 12.00 per share , subject to adjustment , and is exercisable for a period of five years from the date of issuance . the company sold all 140,000 units for gross proceeds of $ 700,000 , and received cash proceeds of $ 587,957 on may 15 , 2018 , net of commissions and fees of $ 74,574 earned by the placement agent on capital raise , $ 33,469 in legal fees , and $ 4,000 in escrow fees . the company issued to the underwriter 3,500 placement agent warrants at their fair value of $ 12,527 . 18 august 2018 financing pursuant to the terms of august 2018 financing , the company executed six ( 6 ) promissory notes , unsecured , with original issuance debt discount of 15 % , for a cumulative principal sum of $ 862,500 on september 4 , 2018. the company promised to pay the note holders the principal sum of $ 862,500 on earlier of ( i ) the third trading day after the closing of the company 's initial public offering , and ( ii ) november 30 , 2018 or such earlier date as these promissory notes are required or permitted to be repaid . on closing of this offering , on september 5 , 2018 , the company received cash proceeds of $ 652,579 , net of commission and fees of $ 62,850 earned by the placement agent on capital raise , $ 30,571 in legal fees , and $ 4,000 in escrow fees . in addition , the company issued to the six note holders 18,750 shares of class b convertible preferred stock valued at $ 120,394 , and 7,500 warrants to the placement agent , valued at their fair value of $ 26,843. on october 19 , 2018 , the holders of these notes agreed to convert all amounts due to them into unregistered class a units at a per unit conversion price equal to 80 % of the per unit purchase price of a class a unit in the company 's initial public offering . initial public offering on november 14 , 2018 , the company consummated its ipo whereby it sold a total of 2,670,000 class a units , each unit consisting of one share of common stock , par value $ 0.0001 per share , and a series a warrant to purchase one share of common stock and a series b warrant to purchase one share of common stock , on an offer price of $ 5.00 for each unit of a share and a series a warrant and a series b warrant ( “ class a unit ” ) . the company received net proceeds from the ipo of $ 12,415,500 after deducting underwriting discounts and commission of $ 934,500. the company incurred $ 743,765 in expenses related to the ipo . $ 3,657,507 of the proceeds were allocated to warrant derivative on our balance sheet as a result of our series b warrant issuance which were deemed to be a derivative liability . november 2018 private transactions concurrent with the closing of the ipo on november 14 , 2018 , the following private transactions were consummated in accordance with the related agreements ( see notes 6 , 7 , 8 and 9 of the financial statements ) , all in transactions exempt from registration under section 4 ( a ) ( 2 ) of the securities act of 1933 , as amended : ( a ) 1,366,768 unregistered class a units were issued upon the conversion of outstanding shares of class b convertible preferred stock at a conversion price of $ 3.50 per class a unit . ( b ) 42,105 unregistered shares of common stock were issued upon conversion of the $ 200,000 principal amount of a promissory note due to an officer at a conversion price of $ 4.75 per share . ( c ) 1,726,678 unregistered class a units were issued upon conversion of outstanding convertible debt instruments ( consisting of all principal amounts and accrued and unpaid interest through the date of the ipo ) at a conversion price of $ 5.00 per unit . ( d ) 136,863 unregistered shares of common stock were issued upon conversion of $ 650,100 of accrued and unpaid salaries to officers and directors at a conversion price of $ 4.75 per share . ( e ) 215,625 unregistered class a units issued upon the conversion of outstanding principal amount of unsecured promissory notes at a conversion price of $ 4.00 per unit . on december 17 , 2018 , pursuant to the underwriting agreement dated november 8 , 2018 , by and between the company and the underwriters , the underwriters agreed to partially exercise the over-allotment option to purchase an additional 25,000 shares of common stock , par value $ 0.0001 , at a price of $ 4.98

our goal is to drill and produce oil and gas cost effectively by concentrating our efforts in proven oil rich areas where we have in-house geologic and operating experience . we are focusing on the acquisition of proven properties that we believe can be economically enhanced in this current commodity price environment . in certain market conditions , we believe there could be additional upside realized through the development of deeper productive horizons , or applying tertiary recovery applications to these acquired fields . to date , we have focused our activities in eastern wyoming along the salt creek/big muddy trend . starting with the salt creek field in natrona county , following the salt creek/big muddy trend down to the south glenrock field in converse county , we believe there are a series of analogous fields that could provide ideal targets for us to execute this business strategy . our acquisition strategy includes taking older wells that are shut in or have lower production results and applying new and existing technologies to work-over and or recomplete those wells so as to increase production and ultimate recovery . technologies to be deployed include 3-d seismic imaging to target undeveloped areas of the reservoir that contain remaining primary reserves and horizontal drilling to increase recoveries , as well as secondary and tertiary recovery methods to increase produced reserves . we will require substantial additional capital to support our existing and proposed future operations . we have no committed source for any additional funds as of the date hereof . no representation is made that any funds will be available when needed . in the event funds can not be raised when needed , we may not be able to carry out our business plan , may never achieve sales or royalty income and could fail in business as a result of these uncertainties . results of operations for the year ended march 31 , 2016 compared to the year ended march 31 , 2015 overview . during the year ended march 31 , 2016 , the company recognized a net loss of $ 15,767,831 compared to a net loss of $ 11,043,541 for the year ended march 31 , 2015. the increase of $ 4,724,290 is primarily the result of an increase in oil sales offset by an increase in operational activities , impairment of oil and gas properties as a result in the decline of oil and gas prices and the acquisition of western interior . discussions of individually significant line items follow : revenues : during the year ended march 31 , 2016 , the company recognized revenues of $ 547,000. during the year ended march 31 , 2015 , the company did not recognize revenues from its oil and gas operational activities . during the year ended march 31 , 2016 , the company sold approximately 16,120 barrels of oil at an average price of $ 33.93 per barrel during the period . management expects to see increases in its production numbers as it takes over the management of the operations of the wells held by llc # 3 and from the company 's purchase of outstanding working interests in these properties during april 2016 . 29 operating expenses : during the year ended march 31 , 2016 , the company had an increase of $ 6,693,726 in total operating expenses as a result of the following : an increase in costs of $ 509,584 related to its oil and gas operational activities as a result of its acquisition of western interior . general and administrative expenses increased by $ 464,096 primarily as a result of increases in staffing and costs associated with reporting requirements . depletion , depreciation , amortization and accretion increased by $ 3,392,414 as a result of its acquisition of western interior oil and gas properties that at march 31 , 2016 reflected only 46.5mbbls of proved producing reserves ( no proved undeveloped reserves ) due to sec pricing requirements with a decrease in exploration costs $ 1,440,037 due to the company focusing its efforts on existing producing wells and an increase in asset impairment of $ 3,411,348 further as a result of sec pricing requirements . story_separator_special_tag 10pt `` > on august 1 , 2015 , the company , relative to the repurchase by the company on march 31 , 2015 of the remaining 14,368 shares of western interior common stock , entered into an agreement with the note holder to settle the amount owed under the promissory note . as such , the parties agreed the amount owed on such promissory note by the company would be reduced from $ 768,715 to $ 393,795 and the difference of $ 374,920 be considered a reduction in the purchase price by the company of the 14,368 shares of western interior common stock . in addition , the $ 393,795 was paid in full effective august 1 , 2015 by the transfer to the note holder of certain oil and gas properties owned by western interior . on january 14 , 2016 , the company borrowed $ 50,000 each from two directors in exchange for secured promissory notes including interest at the rate of 5 % per annum with accrued and unpaid interest and principal due at september 30 , 2016. the promissory notes are collateralized by certain oil and gas properties located in the state of wyoming . holders may , at any time prior to payment of the promissory notes elect to convert all or any portion of the promissory notes , including accrued interest , into common shares of the company at a price determined by the average ten consecutive day trading closing price less 30 % . story_separator_special_tag during the years ended march 31 , 2016 and 2015 , there was impairment to unproved properties in the amount of $ 3,384,758 and $ 6,661 , respectively and for the year ended march 31 , 2016 there was a write off of expired lease costs in the amount of $ 3,096,931. the sale of a partial interest in an unproved property is accounted for as a recovery of cost when substantial uncertainty exists as to the ultimate recovery of the cost applicable to the interest retained . a gain on the sale is recognized to the extent that the sales price exceeds the carrying amount of the unproved property . a gain or loss is recognized for all other sales of unproved properties . there were capitalized costs of $ 4,745,917 and $ 8,087,991 at march 31 , 2016 and 2015 , respectively . costs associated with development wells that are unevaluated or are waiting for access to transportation or processing facilities are reclassified into developmental wells-in-progress ( “ wip ” ) . these costs are not put into a depletable field basis until the wells are fully evaluated or access is gained to transportation and processing facilities . costs associated with wip are included in the cash flows from investing as part of investment in oil and gas properties . at march 31 , 2016 and 2015 , no capitalized developmental costs were included in wip . depreciation , depletion and amortization of proved oil and gas properties is calculated using the units-of-production method based on proved reserves and estimated salvage values . for the years ended march 31 , 2016 and 2015 , the company recorded depreciation , depletion and amortization expense on oil and gas properties in the amount of $ 3,411,348 and $ 0 , respectively . the company reviews its proved oil and natural gas properties for impairment whenever events and circumstances indicate that a decline in the recoverability of its carrying value may have occurred . it estimates the undiscounted future net cash flows of its oil and natural gas properties and compares such undiscounted future cash flows to the carrying amount of the oil and natural gas properties to determine if the carrying amount is recoverable . if the carrying amount exceeds the estimated undiscounted future cash flows , the company will adjust the carrying amount of the oil and natural gas properties to fair value . for the years ended march 31 , 2016 and 2015 , there was impairment to proved properties of $ 5,091,554 and $ 0 , respectively . asset retirement obligations the company records estimated future asset retirement obligations ( “ aro ” ) related to its oil and gas properties . the company records the estimated fair value of a liability for aro in the period in which it is incurred with a corresponding increase in the carrying amount of the related long-lived asset . the increased carrying value is depleted using the units-of-production method , and the discounted liability is increased through accretion over the remaining life of the respective oil and gas properties . the estimated liability is based on historical industry experience in abandoning wells , including estimated economic lives , external estimates as to the cost to abandon the wells in the future and federal and state regulatory requirements . the company 's liability is discounted using management 's best estimate of its credit-adjusted , risk-free rate . revisions to the liability could occur due to changes in estimated abandonment costs , changes in well economic lives or if federal or state regulators enact new requirements regarding the abandonment of wells . 33 replace_table_token_7_th impairment of long-lived assets in accordance with authoritative guidance on accounting for the impairment or disposal of long-lived assets , as set forth in topic 360 of the asc , the company assesses the recoverability of the carrying value of its non-oil and gas long-lived assets when events occur that indicate an impairment in value may exist . an impairment loss is indicated if the sum of the expected undiscounted future net cash flows is less than the carrying amount of the assets . if this occurs , an impairment loss is recognized for the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets . revenue recognition the company recognizes revenue when it is realized or realizable and earned . revenue is realized or realizable and earned when persuasive evidence of an arrangement exists , delivery has occurred or services have been rendered to the customer , the price to the buyer is fixed or determinable and collectability is reasonably assured . for goods , this is the point at which title and risk of loss is transferred and when payment has either been received or collection is reasonably assured . revenues for services are recorded when the services have been provided . revenue that does not meet these criteria is deferred until the criteria are met . business combination the company accounts for acquisitions in accordance with guidance found in asc 805 , business combinations . the guidance requires consideration given , including contingent consideration , assets acquired and liabilities assumed to be valued at their fair values at the date of acquisition . the guidance further provides that acquisition costs will generally be expensed as incurred and changes in deferred tax asset valuations and income tax uncertainties after the acquisition date generally will affect income tax expense . asc 805 requires that any excess of purchase price over the fair value of assets acquired , including identifiable intangibles and liabilities assumed , be recognized as goodwill and any excess of fair value of acquired net assets , including identifiable intangible assets over the acquisition consideration , results in a gain from bargain purchase . prior to recording a gain , the acquiring entity must reassess whether acquired assets and assumed liabilities have been identified and recognized and perform

liquidity we have incurred a net loss of $ 15,767,831 for the year ended march 31 , 2016 and have had a limited operating history . on april 26 , 2015 , we entered into a subscription agreement for the purchase of shares of our restricted common stock pursuant to regulation s. through the termination of the subscription agreement as of september 30 , 2015 , we received $ 1,345,000 in funds and issued 664,050 shares of restricted common stock . the company has used these funds to support ongoing operations . in october 2015 , the company commenced a private placement financing of $ 7,000,000 in units , a unit consisting of 1 share of its series a shares and a unit warrant . the unit warrant has an exercise price of $ 3.00 per share and a term of 3 years . the unit warrant is exercisable 9 months after issuance and is callable by the company upon the company 's common stock closing at a market price of $ 5.00 or above for a period of 10 days . the series a shares do not accrue dividends and have a deemed purchase price of $ 2.00 per share . at march 31 , 2016 , the company had received $ 657,988 of cash in exchange for issuance of 396,519 shares of its series a shares and unit warrants exercisable for 396,519 shares of 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. ```liquidity we have incurred a net loss of $ 15,767,831 for the year ended march 31 , 2016 and have had a limited operating history . on april 26 , 2015 , we entered into a subscription agreement for the purchase of shares of our restricted common stock pursuant to regulation s. through the termination of the subscription agreement as of september 30 , 2015 , we received $ 1,345,000 in funds and issued 664,050 shares of restricted common stock . the company has used these funds to support ongoing operations . in october 2015 , the company commenced a private placement financing of $ 7,000,000 in units , a unit consisting of 1 share of its series a shares and a unit warrant . the unit warrant has an exercise price of $ 3.00 per share and a term of 3 years . the unit warrant is exercisable 9 months after issuance and is callable by the company upon the company 's common stock closing at a market price of $ 5.00 or above for a period of 10 days . the series a shares do not accrue dividends and have a deemed purchase price of $ 2.00 per share . at march 31 , 2016 , the company had received $ 657,988 of cash in exchange for issuance of 396,519 shares of its series a shares and unit warrants exercisable for 396,519 shares of common stock . ``` Suspicious Activity Report : our goal is to drill and produce oil and gas cost effectively by concentrating our efforts in proven oil rich areas where we have in-house geologic and operating experience . we are focusing on the acquisition of proven properties that we believe can be economically enhanced in this current commodity price environment . in certain market conditions , we believe there could be additional upside realized through the development of deeper productive horizons , or applying tertiary recovery applications to these acquired fields . to date , we have focused our activities in eastern wyoming along the salt creek/big muddy trend . starting with the salt creek field in natrona county , following the salt creek/big muddy trend down to the south glenrock field in converse county , we believe there are a series of analogous fields that could provide ideal targets for us to execute this business strategy . our acquisition strategy includes taking older wells that are shut in or have lower production results and applying new and existing technologies to work-over and or recomplete those wells so as to increase production and ultimate recovery . technologies to be deployed include 3-d seismic imaging to target undeveloped areas of the reservoir that contain remaining primary reserves and horizontal drilling to increase recoveries , as well as secondary and tertiary recovery methods to increase produced reserves . we will require substantial additional capital to support our existing and proposed future operations . we have no committed source for any additional funds as of the date hereof . no representation is made that any funds will be available when needed . in the event funds can not be raised when needed , we may not be able to carry out our business plan , may never achieve sales or royalty income and could fail in business as a result of these uncertainties . results of operations for the year ended march 31 , 2016 compared to the year ended march 31 , 2015 overview . during the year ended march 31 , 2016 , the company recognized a net loss of $ 15,767,831 compared to a net loss of $ 11,043,541 for the year ended march 31 , 2015. the increase of $ 4,724,290 is primarily the result of an increase in oil sales offset by an increase in operational activities , impairment of oil and gas properties as a result in the decline of oil and gas prices and the acquisition of western interior . discussions of individually significant line items follow : revenues : during the year ended march 31 , 2016 , the company recognized revenues of $ 547,000. during the year ended march 31 , 2015 , the company did not recognize revenues from its oil and gas operational activities . during the year ended march 31 , 2016 , the company sold approximately 16,120 barrels of oil at an average price of $ 33.93 per barrel during the period . management expects to see increases in its production numbers as it takes over the management of the operations of the wells held by llc # 3 and from the company 's purchase of outstanding working interests in these properties during april 2016 . 29 operating expenses : during the year ended march 31 , 2016 , the company had an increase of $ 6,693,726 in total operating expenses as a result of the following : an increase in costs of $ 509,584 related to its oil and gas operational activities as a result of its acquisition of western interior . general and administrative expenses increased by $ 464,096 primarily as a result of increases in staffing and costs associated with reporting requirements . depletion , depreciation , amortization and accretion increased by $ 3,392,414 as a result of its acquisition of western interior oil and gas properties that at march 31 , 2016 reflected only 46.5mbbls of proved producing reserves ( no proved undeveloped reserves ) due to sec pricing requirements with a decrease in exploration costs $ 1,440,037 due to the company focusing its efforts on existing producing wells and an increase in asset impairment of $ 3,411,348 further as a result of sec pricing requirements . story_separator_special_tag 10pt `` > on august 1 , 2015 , the company , relative to the repurchase by the company on march 31 , 2015 of the remaining 14,368 shares of western interior common stock , entered into an agreement with the note holder to settle the amount owed under the promissory note . as such , the parties agreed the amount owed on such promissory note by the company would be reduced from $ 768,715 to $ 393,795 and the difference of $ 374,920 be considered a reduction in the purchase price by the company of the 14,368 shares of western interior common stock . in addition , the $ 393,795 was paid in full effective august 1 , 2015 by the transfer to the note holder of certain oil and gas properties owned by western interior . on january 14 , 2016 , the company borrowed $ 50,000 each from two directors in exchange for secured promissory notes including interest at the rate of 5 % per annum with accrued and unpaid interest and principal due at september 30 , 2016. the promissory notes are collateralized by certain oil and gas properties located in the state of wyoming . holders may , at any time prior to payment of the promissory notes elect to convert all or any portion of the promissory notes , including accrued interest , into common shares of the company at a price determined by the average ten consecutive day trading closing price less 30 % . story_separator_special_tag during the years ended march 31 , 2016 and 2015 , there was impairment to unproved properties in the amount of $ 3,384,758 and $ 6,661 , respectively and for the year ended march 31 , 2016 there was a write off of expired lease costs in the amount of $ 3,096,931. the sale of a partial interest in an unproved property is accounted for as a recovery of cost when substantial uncertainty exists as to the ultimate recovery of the cost applicable to the interest retained . a gain on the sale is recognized to the extent that the sales price exceeds the carrying amount of the unproved property . a gain or loss is recognized for all other sales of unproved properties . there were capitalized costs of $ 4,745,917 and $ 8,087,991 at march 31 , 2016 and 2015 , respectively . costs associated with development wells that are unevaluated or are waiting for access to transportation or processing facilities are reclassified into developmental wells-in-progress ( “ wip ” ) . these costs are not put into a depletable field basis until the wells are fully evaluated or access is gained to transportation and processing facilities . costs associated with wip are included in the cash flows from investing as part of investment in oil and gas properties . at march 31 , 2016 and 2015 , no capitalized developmental costs were included in wip . depreciation , depletion and amortization of proved oil and gas properties is calculated using the units-of-production method based on proved reserves and estimated salvage values . for the years ended march 31 , 2016 and 2015 , the company recorded depreciation , depletion and amortization expense on oil and gas properties in the amount of $ 3,411,348 and $ 0 , respectively . the company reviews its proved oil and natural gas properties for impairment whenever events and circumstances indicate that a decline in the recoverability of its carrying value may have occurred . it estimates the undiscounted future net cash flows of its oil and natural gas properties and compares such undiscounted future cash flows to the carrying amount of the oil and natural gas properties to determine if the carrying amount is recoverable . if the carrying amount exceeds the estimated undiscounted future cash flows , the company will adjust the carrying amount of the oil and natural gas properties to fair value . for the years ended march 31 , 2016 and 2015 , there was impairment to proved properties of $ 5,091,554 and $ 0 , respectively . asset retirement obligations the company records estimated future asset retirement obligations ( “ aro ” ) related to its oil and gas properties . the company records the estimated fair value of a liability for aro in the period in which it is incurred with a corresponding increase in the carrying amount of the related long-lived asset . the increased carrying value is depleted using the units-of-production method , and the discounted liability is increased through accretion over the remaining life of the respective oil and gas properties . the estimated liability is based on historical industry experience in abandoning wells , including estimated economic lives , external estimates as to the cost to abandon the wells in the future and federal and state regulatory requirements . the company 's liability is discounted using management 's best estimate of its credit-adjusted , risk-free rate . revisions to the liability could occur due to changes in estimated abandonment costs , changes in well economic lives or if federal or state regulators enact new requirements regarding the abandonment of wells . 33 replace_table_token_7_th impairment of long-lived assets in accordance with authoritative guidance on accounting for the impairment or disposal of long-lived assets , as set forth in topic 360 of the asc , the company assesses the recoverability of the carrying value of its non-oil and gas long-lived assets when events occur that indicate an impairment in value may exist . an impairment loss is indicated if the sum of the expected undiscounted future net cash flows is less than the carrying amount of the assets . if this occurs , an impairment loss is recognized for the amount by which the carrying amount of the assets exceeds the estimated fair value of the assets . revenue recognition the company recognizes revenue when it is realized or realizable and earned . revenue is realized or realizable and earned when persuasive evidence of an arrangement exists , delivery has occurred or services have been rendered to the customer , the price to the buyer is fixed or determinable and collectability is reasonably assured . for goods , this is the point at which title and risk of loss is transferred and when payment has either been received or collection is reasonably assured . revenues for services are recorded when the services have been provided . revenue that does not meet these criteria is deferred until the criteria are met . business combination the company accounts for acquisitions in accordance with guidance found in asc 805 , business combinations . the guidance requires consideration given , including contingent consideration , assets acquired and liabilities assumed to be valued at their fair values at the date of acquisition . the guidance further provides that acquisition costs will generally be expensed as incurred and changes in deferred tax asset valuations and income tax uncertainties after the acquisition date generally will affect income tax expense . asc 805 requires that any excess of purchase price over the fair value of assets acquired , including identifiable intangibles and liabilities assumed , be recognized as goodwill and any excess of fair value of acquired net assets , including identifiable intangible assets over the acquisition consideration , results in a gain from bargain purchase . prior to recording a gain , the acquiring entity must reassess whether acquired assets and assumed liabilities have been identified and recognized and perform

non-gaap measures such as adjusted gross profits , adjusted gross profit margin , adjusted operating income , adjusted operating margin , adjusted net earnings , and adjusted net earnings per diluted share do not have uniform definitions . these measures , as calculated by vpg , may not be comparable to similarly titled measures used by other companies . management believes that these non-gaap measures are useful to investors because each presents what management views as our core operating performance for the relevant period . the adjustments to the applicable gaap measures relate to occurrences or events that are outside of our core operations , and management believes that the use of these non-gaap measures provides a consistent basis to evaluate our operating profitability and performance trends across comparable periods . in addition , the company has historically provided these or similar non-gaap measures and understands that some investors and financial analysts find this information helpful in analyzing the company 's performance and in comparing the company 's financial performance to that of its peer companies and competitors . management believes that the company 's non-gaap measures are regarded as supplemental to its gaap financial results . - 27 - the items affecting comparability are ( dollars in thousands , except per share amounts ) : replace_table_token_3_th ( a ) acquisition purchase accounting adjustments in 2019 include fair market value adjustments associated with inventory recorded as a component of costs of products sold . ( b ) acquisition costs associated with the acquisition of dsi in 2019 . ( c ) severance costs associated with the resignation of an executive officer of the company in 2019 . ( d ) in 2018 , the company incurred one-time settlement costs in connection with the de-risking of the pension plan in our uk location ( see note 9 to our consolidated financial statements ) . ( e ) included in the discrete items for 2019 is a $ 3.4 million tax benefit primarily related to the acquisition of dsi . financial metrics we utilize several financial measures and metrics to evaluate the performance and assess the future direction of our business . these key financial measures and metrics include net revenues , gross profit margin , end-of-period backlog , book-to-bill ratio , and inventory turnover . gross profit margin is gross profit shown as a percentage of net revenues . gross profit is generally net revenues less costs of products sold , but could also include certain other period costs . gross profit margin is clearly a function of net revenues , but also reflects our cost-cutting programs and our ability to contain fixed costs . end-of-period backlog is one indicator of potential future sales . we include in our backlog only open orders that have been released by the customer for shipment in the next twelve months . if demand falls below customers ' forecasts , or if customers do not control their inventory effectively , they may cancel or reschedule the shipments that are included in our backlog , in many instances without the payment of any penalty . therefore , the backlog is not necessarily indicative of the results to be expected for future periods . another important indicator of demand in our industry is the book-to-bill ratio , which is the ratio of the amount of product ordered during a period compared with the product that we ship during that period . a book-to-bill ratio that is greater than one indicates that demand is higher than current revenues and manufacturing capacities , and it indicates that we may generate increasing revenues in future periods . conversely , a book-to-bill ratio that is less than one is an indicator of lower demand compared to existing revenues and current capacities and may foretell declining sales . we focus on our inventory turnover as a measure of how well we are managing our inventory . we define inventory turnover for a financial reporting period as our costs of products sold for the four fiscal quarters ending on the last day of the reporting period divided by our average inventory ( computed using each quarter-end balance ) for this same period . a higher level of inventory turnover reflects more efficient use of our capital . the quarter-to-quarter trends in these financial metrics can also be an important indicator of the likely direction of our business . the following table shows net revenues , gross profit margin , the end-of-period backlog , the book-to-bill ratio , and the inventory turnover for our business as a whole during the five quarters beginning with the fourth quarter of 2018 and through the fourth quarter of 2019 ( dollars in thousands ) : - 28 - replace_table_token_4_th replace_table_token_5_th net revenues for the fourth quarter of 2019 increased 2.6 % from the net revenues of $ 67.4 million reported in the third quarter of 2019 , and decreased 10.2 % from $ 77.0 million for the comparable prior year period . net revenues in the foil technology products segment of $ 29.6 million in the fourth quarter of 2019 decreased 7.7 % from $ 32.1 million in the third quarter of 2019 , and decreased 19.3 % from $ 36.7 million in the fourth quarter of 2018 . the sequential decline in revenue was attributable to precision resistor products in the test and measurement market . compared to the fourth quarter of 2018 , the decline in revenues was primarily attributable to precision resistor products in all regions for distribution , oem and ems customers , primarily in the test and measurement and avionics , military and space markets . net revenues in the force sensors segment of $ 15.1 million in the fourth quarter of 2019 decreased 7.1 % compared to revenues of $ 16.2 million in the third quarter of 2019 due to lower volume attributable to oem customers in the precision weighing and force measurement markets in the americas and europe . story_separator_special_tag we could also incur similar costs after we acquire companies . these production transfers , facility consolidations , and other long-term cost-cutting measures require us to initially incur significant severance and other exit costs . we anticipate that we will realize the benefits of our restructuring efforts through lower labor costs and other operating efficiencies in future periods . restructuring and severance costs are expensed during the period in which we incur those costs and all other requirements for accrual are met . because transfers of manufacturing operations sometimes occur incrementally over a period of time , the expense initially recorded is often based on estimates . because these costs are recorded based on estimates , our actual expenditures for restructuring activities may differ from the initially recorded costs . if this happens , we will adjust our estimates in future periods , either by recording additional expenses in future periods if our initial estimates were too low , or by reversing part of the charges that we recorded initially if our initial estimates were too high . goodwill and other intangible assets goodwill and indefinite-lived trademarks are tested for impairment at least annually , and whenever events or changes in circumstances occur indicating that it is `` more likely than not `` impairment may have been incurred . we have the option to first assess qualitative factors to determine whether it is `` more likely than not `` that the fair value of a reporting unit is less than its carrying amount as a basis for determining if it is necessary to perform the quantitative goodwill impairment test . however , if we conclude otherwise , then we are required to perform the quantitative impairment test by calculating the fair value of the reporting unit and comparing it against its carrying amount . we estimate the fair value of our steel and on-board weighing reporting units using the income approach and a market approach to valuation . the income approach to valuation uses our estimates of the future cash flows of the reporting unit discounted to their net present value using a discount rate determined using the capital asset pricing model and adjusted for the forecast risk inherent in our projections of future cash flows . the income approach to valuation is dependent on inputs from management such as expected revenue growth , profitability , capital expenditures , and working capital requirements . the market approach to valuation uses the market capitalization of public companies similar to the reporting unit to calculate an implied ebitda multiple , and we apply that calculated ebitda multiple to the expected ebitda of the reporting unit to estimate the fair value of the reporting unit , after consideration of appropriate control premiums . we weigh the results of the income approach and the market approach to arrive at the estimated fair value of the reporting unit . we estimate the fair value of our instrumentation reporting unit using the income approach . if the fair value exceeds the carrying value , no further evaluation is required and no impairment loss is recognized . an impairment charge would be recognized to the extent the carrying amount of goodwill exceeds the reporting unit fair value . during 2018 , we recognized an impairment loss associated with the goodwill and indefinite lived intangible assets in the instrumentation reporting unit , which holds goodwill related to our 2016 pacific acquisition , which was recognized in the fourth quarter of fiscal 2018. the impairment was primarily from lower margins on the forecasted projections due to product mix . after considering the impact of the impairment charges , the carrying amount of goodwill and indefinite-lived trade names as of december 31 , 2018 was $ 3.5 million and $ 0.4 million , respectively . - 33 - in 2019 , we did not recognize an impairment for the instrumentation reporting unit , as the fair value exceeded its carrying value by approximately 12 % . the instrumentation reporting unit is particularly sensitive to the revenue projections used in the income approach valuation to determine the fair value and its related impact on gross margin . determining whether to test goodwill for impairment , and the application of goodwill impairment tests , require significant management judgment , including the identification of reporting units , assigning assets and liabilities to reporting units , assigning goodwill to reporting units , and determining the fair value of each reporting unit . changes in these estimates could materially affect the determination of fair value for each reporting unit . a slowdown or deferral of orders for a business , with which we have goodwill associated , could impact our valuation of that goodwill . the indefinite-lived trade names are tested for impairment either by employing the qualitative approach outlined above , or by comparing the carrying value to the fair value based on current revenue projections of the related operations , under the relief from royalty method . any excess carrying value over the applicable fair value is recognized as impairment . any impairment would be recognized in the reporting period in which it has been identified . definite-lived intangible assets , such as customer relationships , patents and acquired technology , non-competition agreements , and certain trade names are amortized on a straight-line method over their estimated useful lives . patents and acquired technology are being amortized over useful lives of seven to twenty years . customer relationships are being amortized over useful lives of five to eighteen years . trade names are being amortized over their contractual period ranging from seven to ten years . non-competition agreements are being amortized over periods of five to ten years . we review the carrying values of these assets for possible impairment whenever events or changes in circumstances indicate that the carrying value of the assets , when combined with the broader asset group in which they belong , may not be recoverable based on

. the debt is payable monthly over the next 2 years at a zero percent interest rate . see note 7 to our consolidated financial statements for additional details . our business has historically generated significant cash flow . our cash provided by operating activities for the year ended december 31 , 2019 was $ 30.9 million as compared to $ 35.4 million for the year ended december 31 , 2018 . cash provided by operating activities for the year ended december 31 , 2019 was lower than the cash provided by operating activities for the year ended december 31 , 2018 due to a decrease in net earnings . our net cash used in investing activities for the year ended december 31 , 2019 was $ 51.1 million as compared to $ 14.4 million for the year ended december 31 , 2018 . this increase was primarily due to the purchase of dsi . our net cash provided by financing activities for the year ended december 31 , 2019 was $ 16.5 million as compared to net cash used for financing activities of $ 3.5 million for the year ended december 31 , 2018 . this reflects the higher borrowings on the revolving credit facility which were used to fund the purchase of dsi . approximately 93 % of our cash and cash equivalents balance at december 31 , 2019 and 2018 , respectively , was held by our non-u.s. subsidiaries .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```. the debt is payable monthly over the next 2 years at a zero percent interest rate . see note 7 to our consolidated financial statements for additional details . our business has historically generated significant cash flow . our cash provided by operating activities for the year ended december 31 , 2019 was $ 30.9 million as compared to $ 35.4 million for the year ended december 31 , 2018 . cash provided by operating activities for the year ended december 31 , 2019 was lower than the cash provided by operating activities for the year ended december 31 , 2018 due to a decrease in net earnings . our net cash used in investing activities for the year ended december 31 , 2019 was $ 51.1 million as compared to $ 14.4 million for the year ended december 31 , 2018 . this increase was primarily due to the purchase of dsi . our net cash provided by financing activities for the year ended december 31 , 2019 was $ 16.5 million as compared to net cash used for financing activities of $ 3.5 million for the year ended december 31 , 2018 . this reflects the higher borrowings on the revolving credit facility which were used to fund the purchase of dsi . approximately 93 % of our cash and cash equivalents balance at december 31 , 2019 and 2018 , respectively , was held by our non-u.s. subsidiaries . ``` Suspicious Activity Report : non-gaap measures such as adjusted gross profits , adjusted gross profit margin , adjusted operating income , adjusted operating margin , adjusted net earnings , and adjusted net earnings per diluted share do not have uniform definitions . these measures , as calculated by vpg , may not be comparable to similarly titled measures used by other companies . management believes that these non-gaap measures are useful to investors because each presents what management views as our core operating performance for the relevant period . the adjustments to the applicable gaap measures relate to occurrences or events that are outside of our core operations , and management believes that the use of these non-gaap measures provides a consistent basis to evaluate our operating profitability and performance trends across comparable periods . in addition , the company has historically provided these or similar non-gaap measures and understands that some investors and financial analysts find this information helpful in analyzing the company 's performance and in comparing the company 's financial performance to that of its peer companies and competitors . management believes that the company 's non-gaap measures are regarded as supplemental to its gaap financial results . - 27 - the items affecting comparability are ( dollars in thousands , except per share amounts ) : replace_table_token_3_th ( a ) acquisition purchase accounting adjustments in 2019 include fair market value adjustments associated with inventory recorded as a component of costs of products sold . ( b ) acquisition costs associated with the acquisition of dsi in 2019 . ( c ) severance costs associated with the resignation of an executive officer of the company in 2019 . ( d ) in 2018 , the company incurred one-time settlement costs in connection with the de-risking of the pension plan in our uk location ( see note 9 to our consolidated financial statements ) . ( e ) included in the discrete items for 2019 is a $ 3.4 million tax benefit primarily related to the acquisition of dsi . financial metrics we utilize several financial measures and metrics to evaluate the performance and assess the future direction of our business . these key financial measures and metrics include net revenues , gross profit margin , end-of-period backlog , book-to-bill ratio , and inventory turnover . gross profit margin is gross profit shown as a percentage of net revenues . gross profit is generally net revenues less costs of products sold , but could also include certain other period costs . gross profit margin is clearly a function of net revenues , but also reflects our cost-cutting programs and our ability to contain fixed costs . end-of-period backlog is one indicator of potential future sales . we include in our backlog only open orders that have been released by the customer for shipment in the next twelve months . if demand falls below customers ' forecasts , or if customers do not control their inventory effectively , they may cancel or reschedule the shipments that are included in our backlog , in many instances without the payment of any penalty . therefore , the backlog is not necessarily indicative of the results to be expected for future periods . another important indicator of demand in our industry is the book-to-bill ratio , which is the ratio of the amount of product ordered during a period compared with the product that we ship during that period . a book-to-bill ratio that is greater than one indicates that demand is higher than current revenues and manufacturing capacities , and it indicates that we may generate increasing revenues in future periods . conversely , a book-to-bill ratio that is less than one is an indicator of lower demand compared to existing revenues and current capacities and may foretell declining sales . we focus on our inventory turnover as a measure of how well we are managing our inventory . we define inventory turnover for a financial reporting period as our costs of products sold for the four fiscal quarters ending on the last day of the reporting period divided by our average inventory ( computed using each quarter-end balance ) for this same period . a higher level of inventory turnover reflects more efficient use of our capital . the quarter-to-quarter trends in these financial metrics can also be an important indicator of the likely direction of our business . the following table shows net revenues , gross profit margin , the end-of-period backlog , the book-to-bill ratio , and the inventory turnover for our business as a whole during the five quarters beginning with the fourth quarter of 2018 and through the fourth quarter of 2019 ( dollars in thousands ) : - 28 - replace_table_token_4_th replace_table_token_5_th net revenues for the fourth quarter of 2019 increased 2.6 % from the net revenues of $ 67.4 million reported in the third quarter of 2019 , and decreased 10.2 % from $ 77.0 million for the comparable prior year period . net revenues in the foil technology products segment of $ 29.6 million in the fourth quarter of 2019 decreased 7.7 % from $ 32.1 million in the third quarter of 2019 , and decreased 19.3 % from $ 36.7 million in the fourth quarter of 2018 . the sequential decline in revenue was attributable to precision resistor products in the test and measurement market . compared to the fourth quarter of 2018 , the decline in revenues was primarily attributable to precision resistor products in all regions for distribution , oem and ems customers , primarily in the test and measurement and avionics , military and space markets . net revenues in the force sensors segment of $ 15.1 million in the fourth quarter of 2019 decreased 7.1 % compared to revenues of $ 16.2 million in the third quarter of 2019 due to lower volume attributable to oem customers in the precision weighing and force measurement markets in the americas and europe . story_separator_special_tag we could also incur similar costs after we acquire companies . these production transfers , facility consolidations , and other long-term cost-cutting measures require us to initially incur significant severance and other exit costs . we anticipate that we will realize the benefits of our restructuring efforts through lower labor costs and other operating efficiencies in future periods . restructuring and severance costs are expensed during the period in which we incur those costs and all other requirements for accrual are met . because transfers of manufacturing operations sometimes occur incrementally over a period of time , the expense initially recorded is often based on estimates . because these costs are recorded based on estimates , our actual expenditures for restructuring activities may differ from the initially recorded costs . if this happens , we will adjust our estimates in future periods , either by recording additional expenses in future periods if our initial estimates were too low , or by reversing part of the charges that we recorded initially if our initial estimates were too high . goodwill and other intangible assets goodwill and indefinite-lived trademarks are tested for impairment at least annually , and whenever events or changes in circumstances occur indicating that it is `` more likely than not `` impairment may have been incurred . we have the option to first assess qualitative factors to determine whether it is `` more likely than not `` that the fair value of a reporting unit is less than its carrying amount as a basis for determining if it is necessary to perform the quantitative goodwill impairment test . however , if we conclude otherwise , then we are required to perform the quantitative impairment test by calculating the fair value of the reporting unit and comparing it against its carrying amount . we estimate the fair value of our steel and on-board weighing reporting units using the income approach and a market approach to valuation . the income approach to valuation uses our estimates of the future cash flows of the reporting unit discounted to their net present value using a discount rate determined using the capital asset pricing model and adjusted for the forecast risk inherent in our projections of future cash flows . the income approach to valuation is dependent on inputs from management such as expected revenue growth , profitability , capital expenditures , and working capital requirements . the market approach to valuation uses the market capitalization of public companies similar to the reporting unit to calculate an implied ebitda multiple , and we apply that calculated ebitda multiple to the expected ebitda of the reporting unit to estimate the fair value of the reporting unit , after consideration of appropriate control premiums . we weigh the results of the income approach and the market approach to arrive at the estimated fair value of the reporting unit . we estimate the fair value of our instrumentation reporting unit using the income approach . if the fair value exceeds the carrying value , no further evaluation is required and no impairment loss is recognized . an impairment charge would be recognized to the extent the carrying amount of goodwill exceeds the reporting unit fair value . during 2018 , we recognized an impairment loss associated with the goodwill and indefinite lived intangible assets in the instrumentation reporting unit , which holds goodwill related to our 2016 pacific acquisition , which was recognized in the fourth quarter of fiscal 2018. the impairment was primarily from lower margins on the forecasted projections due to product mix . after considering the impact of the impairment charges , the carrying amount of goodwill and indefinite-lived trade names as of december 31 , 2018 was $ 3.5 million and $ 0.4 million , respectively . - 33 - in 2019 , we did not recognize an impairment for the instrumentation reporting unit , as the fair value exceeded its carrying value by approximately 12 % . the instrumentation reporting unit is particularly sensitive to the revenue projections used in the income approach valuation to determine the fair value and its related impact on gross margin . determining whether to test goodwill for impairment , and the application of goodwill impairment tests , require significant management judgment , including the identification of reporting units , assigning assets and liabilities to reporting units , assigning goodwill to reporting units , and determining the fair value of each reporting unit . changes in these estimates could materially affect the determination of fair value for each reporting unit . a slowdown or deferral of orders for a business , with which we have goodwill associated , could impact our valuation of that goodwill . the indefinite-lived trade names are tested for impairment either by employing the qualitative approach outlined above , or by comparing the carrying value to the fair value based on current revenue projections of the related operations , under the relief from royalty method . any excess carrying value over the applicable fair value is recognized as impairment . any impairment would be recognized in the reporting period in which it has been identified . definite-lived intangible assets , such as customer relationships , patents and acquired technology , non-competition agreements , and certain trade names are amortized on a straight-line method over their estimated useful lives . patents and acquired technology are being amortized over useful lives of seven to twenty years . customer relationships are being amortized over useful lives of five to eighteen years . trade names are being amortized over their contractual period ranging from seven to ten years . non-competition agreements are being amortized over periods of five to ten years . we review the carrying values of these assets for possible impairment whenever events or changes in circumstances indicate that the carrying value of the assets , when combined with the broader asset group in which they belong , may not be recoverable based on

under the agreement , ( 1 ) delta acquired 132 slot pairs at laguardia from us airways and ( 2 ) us airways acquired from delta 42 slot pairs at reagan national ; the rights to operate additional daily service to são paulo , brazil in 2015 ; and $ 66.5 million in cash . additionally , delta divested 16 slot pairs at laguardia and eight slot pairs at reagan national to airlines with limited or no service at those airports . 26 following the closing of the transaction , we announced the expansion of our service at laguardia in 2012 to include more than 100 new flights and 29 new destinations . our expanded schedule will add nonstop service to top u.s. business markets and additional frequencies to business markets currently served . as part of the expansion , we are also investing $ 100 million to create an expanded main terminal at laguardia in terminals c and d and will build a bridge to link the two terminals . jfk . while our expanded laguardia schedule is focused on providing industry-leading domestic service , our schedule at jfk is being optimized in 2012 for international and trans-continental flights , as well as improved coordination with our skyteam alliance partners . at jfk , we currently operate domestic flights primarily at terminal 2 and international flights at terminal 3 and , to a lesser extent , terminal 4. our redevelopment project at jfk , which began in 2010 , currently includes the ( 1 ) enhancement and expansion of terminal 4 , including the construction of nine new international gates ; ( 2 ) construction of a passenger connector between terminal 2 and terminal 4 ; ( 3 ) demolition of the outdated terminal 3 , which was constructed in 1960 ; and ( 4 ) development of the terminal 3 site for aircraft parking positions . we estimate this project will cost approximately $ 1.2 billion and will be completed in stages over five years . construction at terminal 4 has commenced and is scheduled to be completed in 2013. upon completion of the terminal 4 expansion , we will relocate our operations from terminal 3 to terminal 4 , proceed with the demolition of terminal 3 , and thereafter conduct coordinated flight operations from terminals 2 and 4. once our project is complete , we expect that passengers will benefit from an enhanced customer experience and improved operational performance , including reduced taxi times and better on-time performance . 27 results of operations - 2011 compared to 2010 operating revenue replace_table_token_11_th replace_table_token_12_th mainline passenger revenue . mainline passenger revenue increased primarily due to an improvement in the passenger mile yield from fare increases implemented in response to higher fuel prices and from higher revenue under corporate travel contracts . domestic . domestic mainline passenger revenue increased 11 % due to an 11 % improvement in prasm on a 1 % decline in capacity . the improvement in prasm reflects higher passenger mile yield driven by fare increases . international . international mainline passenger revenue increased 13 % due to a 9 % improvement in prasm on a 4 % capacity increase . passenger mile yield increased 12 % , reflecting increased business and leisure travel and increased fares , including fuel surcharges . atlantic passenger revenue increased 9 % due to a 7 % increase in prasm . we and the industry faced overcapacity in the atlantic , particularly in early 2011 , which prevented us from increasing ticket prices sufficiently to cover higher fuel prices . pacific passenger revenue increased 20 % on a 10 % capacity increase . pacific passenger mile yield increased 15 % due to a stronger revenue environment , partially offset by the negative impact from the march 2011 earthquake and tsunami in japan . latin america passenger revenue increased 13 % , benefiting from a 13 % higher passenger mile yield driven by fare increases . regional carriers . passenger revenue from regional carriers increased 9 % due to an 12 % improvement in prasm on a 2 % decline in capacity . passenger mile yield increased 12 % , reflecting fare increases we implemented in response to increased fuel prices . cargo . cargo revenue increased 21 % due to a 12 % improvement in yield and an 8 % increase in volume . other . other revenue increased $ 210 million due to higher maintenance sales to third parties by our mro services business and $ 65 million due to an increase in the volume of ticket change fees . these increases were partially offset by $ 90 million in lower baggage fee revenue , resulting from an increase in bag fees waived for premium customers and customers under our co-brand credit card agreement with american express . 28 operating expense replace_table_token_13_th on july 1 , 2010 , we sold compass and mesaba , our wholly-owned subsidiaries , to trans states and pinnacle , respectively . upon the closing of these transactions , we entered into new or amended long-term capacity purchase agreements with compass , mesaba and pinnacle . prior to these sales , expenses related to compass and mesaba as our wholly-owned subsidiaries were reported in the applicable expense line items . subsequent to these sales , expenses related to compass and mesaba are reported as contract carrier arrangements expense . fuel expense . including contract carriers under capacity purchase agreements , fuel expense increased $ 2.9 billion on flat consumption . the table below presents fuel expense , gallons consumed , and our average price per fuel gallon , including the impact of fuel hedge activity : replace_table_token_14_th fuel expense increased primarily due to higher unhedged fuel prices , partially offset by an improvement in net fuel hedge results . story_separator_special_tag customers may earn mileage credits through participating companies such as credit card companies , hotels and car rental agencies with which we have marketing agreements to sell mileage credits . our contracts to sell mileage credits under these marketing agreements have two deliverables : ( 1 ) the mileage credits redeemable for future travel and ( 2 ) the marketing component . asu 2009-13 does not apply to contracts to sell mileage credits entered into prior to january 1 , 2011 unless those contracts are materially modified . as of december 31 , 2011 , we had not materially modified any of our significant agreements . our most significant contract to sell mileage credits relates to our co-brand credit card relationship with american express . for additional information about this relationship , see note 6. for contracts entered into prior to january 1 , 2011 that have not been materially modified since january 1 , 2011 , we continue to use the residual method for revenue recognition and value only the mileage credits . under the residual method , the portion of the revenue from the mileage component is deferred and recognized as passenger revenue when miles are redeemed and services are provided . the portion of the revenue received in excess of the fair value of mileage credits sold , the marketing component , is recognized in income as other revenue when the related marketing services are provided . the fair value of a mileage credit is determined based on prices at which we sell mileage credits to other airlines and is re-evaluated at least annually . if we enter into new contracts or materially modify existing contracts to sell mileage credits related to our skymiles program , we will value the standalone selling price of the marketing component and allocate the revenue from the contract based on the relative selling price of the mileage credits and the marketing component . a material modification of an existing contract could impact our deferral rate or cause an adjustment to our deferred revenue balance , which could materially impact our future financial results . breakage . for mileage credits which we estimate are not likely to be redeemed ( “ breakage ” ) , we recognize the associated value proportionally during the period in which the remaining mileage credits are expected to be redeemed . the estimate of breakage is based on historical redemption patterns . a change in assumptions as to the period over which mileage credits are expected to be redeemed , the actual redemption activity for mileage credits or the estimated fair value of mileage credits expected to be redeemed could have a material impact on our revenue in the year in which the change occurs and in future years . at december 31 , 2011 , the aggregate deferred revenue balance associated with the skymiles program was $ 4.5 billion . a hypothetical 1 % change in the number of outstanding miles estimated to be redeemed would result in a $ 31 million impact on our deferred revenue liability at december 31 , 2011 . goodwill and other intangible assets we apply a fair value-based impairment test to the net book value of goodwill and indefinite-lived intangible assets on an annual basis ( as of october 1 ) and , if certain events or circumstances indicate that an impairment loss may have been incurred , on an interim basis . in september 2011 , the fasb issued `` testing goodwill for impairment . `` the standard revises the way in which entities test goodwill for impairment . we adopted this standard and applied its provisions to our annual goodwill impairment test in the december 2011 quarter . key assumptions . the key assumptions in our impairment tests include ( 1 ) our projected revenues , expenses and cash flows , ( 2 ) an estimated weighted average cost of capital , ( 3 ) assumed discount rates depending on the asset and ( 4 ) a tax rate . these assumptions are consistent with those hypothetical market participants would use . since we are required to make estimates and assumptions when evaluating goodwill and indefinite-lived intangible assets for impairment , the actual amounts may differ materially from these estimates . 38 changes in assumptions or circumstances could result in impairment . factors which could cause impairment include , but are not limited to , ( 1 ) negative trends in our market capitalization , ( 2 ) an increase in fuel prices , ( 3 ) declining passenger mile yields , ( 4 ) lower passenger demand as a result of the weakened u.s. and global economy , ( 5 ) interruption to our operations due to an employee strike , terrorist attack , or other reasons , ( 6 ) changes to the regulatory environment and ( 7 ) consolidation of competitors in the airline industry . goodwill . as of december 31 , 2011 and 2010 , our goodwill balance was $ 9.8 billion . in evaluating goodwill for impairment , we estimate the fair value of our reporting unit by considering market capitalization and other factors if it is more likely than not that the fair value of our reporting unit is less than its carrying value . if the reporting unit 's fair value exceeds its carrying value , no further testing is required . if , however , the reporting unit 's carrying value exceeds its fair value , we then determine the amount of the impairment charge , if any . we recognize an impairment charge if the carrying value of the reporting unit 's goodwill exceeds its estimated fair value . identifiable intangible assets . our identifiable intangible assets had a net carrying amount of $ 4.8 billion at december 31 , 2011 . indefinite-lived assets are not amortized and consist primarily of routes , slots , the delta tradename and assets related to skyteam . definite-lived intangible assets consist

liquidity events liquidity and financing events during 2011 included the following : senior secured credit facilities . we entered into senior secured first-lien credit facilities ( the `` senior secured credit facilities '' ) to borrow up to $ 2.6 billion . we borrowed $ 1.4 billion under the senior secured credit facilities to retire $ 1.4 billion of outstanding loans under our $ 2.5 billion senior secured exit financing facilities and terminated those facilities and an existing $ 100 million revolving credit facility . the senior secured credit facilities bear interest at a variable rate equal to libor ( subject to a 1.25 % floor ) or another index rate , in each case plus a specified margin and have final maturities in april 2016 and 2017. at december 31 , 2011 , the outstanding balances under the senior secured credit facilities had an interest rate of 5.50 % per annum . pacific routes term loan facility . we amended our $ 250 million first-lien term loan facility ( the `` pacific routes term loan facility '' ) to , among other things , reduce the interest rate and extend the maturity date from september 2013 to march 2016. at december 31 , 2011 , the pacific routes term loan facility had an interest rate of 4.25 % per annum . certificates . we received $ 834 million in proceeds from offerings of pass-through trust certificates ( `` eetc '' ) and used the proceeds to refinance aircraft securing other debt instruments at their maturities , primarily the 2001-1 eetc , and for general corporate purposes . during 2011 , we paid $ 789 million to retire the outstanding principal amount under the 2001-1 eetc . sources and uses of cash cash flows from operating activities cash provided by operating activities totaled $ 2.8 billion for 2011 , primarily reflecting ( 1 ) $ 2.7 billion in net income after adjusting for items such as depreciation and amortization and ( 2 ) $ 675 million received for the sale of skymiles . cash provided by operating activities was reduced by $ 313 million in profit sharing payments related to 2010 and other working capital changes .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 events liquidity and financing events during 2011 included the following : senior secured credit facilities . we entered into senior secured first-lien credit facilities ( the `` senior secured credit facilities '' ) to borrow up to $ 2.6 billion . we borrowed $ 1.4 billion under the senior secured credit facilities to retire $ 1.4 billion of outstanding loans under our $ 2.5 billion senior secured exit financing facilities and terminated those facilities and an existing $ 100 million revolving credit facility . the senior secured credit facilities bear interest at a variable rate equal to libor ( subject to a 1.25 % floor ) or another index rate , in each case plus a specified margin and have final maturities in april 2016 and 2017. at december 31 , 2011 , the outstanding balances under the senior secured credit facilities had an interest rate of 5.50 % per annum . pacific routes term loan facility . we amended our $ 250 million first-lien term loan facility ( the `` pacific routes term loan facility '' ) to , among other things , reduce the interest rate and extend the maturity date from september 2013 to march 2016. at december 31 , 2011 , the pacific routes term loan facility had an interest rate of 4.25 % per annum . certificates . we received $ 834 million in proceeds from offerings of pass-through trust certificates ( `` eetc '' ) and used the proceeds to refinance aircraft securing other debt instruments at their maturities , primarily the 2001-1 eetc , and for general corporate purposes . during 2011 , we paid $ 789 million to retire the outstanding principal amount under the 2001-1 eetc . sources and uses of cash cash flows from operating activities cash provided by operating activities totaled $ 2.8 billion for 2011 , primarily reflecting ( 1 ) $ 2.7 billion in net income after adjusting for items such as depreciation and amortization and ( 2 ) $ 675 million received for the sale of skymiles . cash provided by operating activities was reduced by $ 313 million in profit sharing payments related to 2010 and other working capital changes . ``` Suspicious Activity Report : under the agreement , ( 1 ) delta acquired 132 slot pairs at laguardia from us airways and ( 2 ) us airways acquired from delta 42 slot pairs at reagan national ; the rights to operate additional daily service to são paulo , brazil in 2015 ; and $ 66.5 million in cash . additionally , delta divested 16 slot pairs at laguardia and eight slot pairs at reagan national to airlines with limited or no service at those airports . 26 following the closing of the transaction , we announced the expansion of our service at laguardia in 2012 to include more than 100 new flights and 29 new destinations . our expanded schedule will add nonstop service to top u.s. business markets and additional frequencies to business markets currently served . as part of the expansion , we are also investing $ 100 million to create an expanded main terminal at laguardia in terminals c and d and will build a bridge to link the two terminals . jfk . while our expanded laguardia schedule is focused on providing industry-leading domestic service , our schedule at jfk is being optimized in 2012 for international and trans-continental flights , as well as improved coordination with our skyteam alliance partners . at jfk , we currently operate domestic flights primarily at terminal 2 and international flights at terminal 3 and , to a lesser extent , terminal 4. our redevelopment project at jfk , which began in 2010 , currently includes the ( 1 ) enhancement and expansion of terminal 4 , including the construction of nine new international gates ; ( 2 ) construction of a passenger connector between terminal 2 and terminal 4 ; ( 3 ) demolition of the outdated terminal 3 , which was constructed in 1960 ; and ( 4 ) development of the terminal 3 site for aircraft parking positions . we estimate this project will cost approximately $ 1.2 billion and will be completed in stages over five years . construction at terminal 4 has commenced and is scheduled to be completed in 2013. upon completion of the terminal 4 expansion , we will relocate our operations from terminal 3 to terminal 4 , proceed with the demolition of terminal 3 , and thereafter conduct coordinated flight operations from terminals 2 and 4. once our project is complete , we expect that passengers will benefit from an enhanced customer experience and improved operational performance , including reduced taxi times and better on-time performance . 27 results of operations - 2011 compared to 2010 operating revenue replace_table_token_11_th replace_table_token_12_th mainline passenger revenue . mainline passenger revenue increased primarily due to an improvement in the passenger mile yield from fare increases implemented in response to higher fuel prices and from higher revenue under corporate travel contracts . domestic . domestic mainline passenger revenue increased 11 % due to an 11 % improvement in prasm on a 1 % decline in capacity . the improvement in prasm reflects higher passenger mile yield driven by fare increases . international . international mainline passenger revenue increased 13 % due to a 9 % improvement in prasm on a 4 % capacity increase . passenger mile yield increased 12 % , reflecting increased business and leisure travel and increased fares , including fuel surcharges . atlantic passenger revenue increased 9 % due to a 7 % increase in prasm . we and the industry faced overcapacity in the atlantic , particularly in early 2011 , which prevented us from increasing ticket prices sufficiently to cover higher fuel prices . pacific passenger revenue increased 20 % on a 10 % capacity increase . pacific passenger mile yield increased 15 % due to a stronger revenue environment , partially offset by the negative impact from the march 2011 earthquake and tsunami in japan . latin america passenger revenue increased 13 % , benefiting from a 13 % higher passenger mile yield driven by fare increases . regional carriers . passenger revenue from regional carriers increased 9 % due to an 12 % improvement in prasm on a 2 % decline in capacity . passenger mile yield increased 12 % , reflecting fare increases we implemented in response to increased fuel prices . cargo . cargo revenue increased 21 % due to a 12 % improvement in yield and an 8 % increase in volume . other . other revenue increased $ 210 million due to higher maintenance sales to third parties by our mro services business and $ 65 million due to an increase in the volume of ticket change fees . these increases were partially offset by $ 90 million in lower baggage fee revenue , resulting from an increase in bag fees waived for premium customers and customers under our co-brand credit card agreement with american express . 28 operating expense replace_table_token_13_th on july 1 , 2010 , we sold compass and mesaba , our wholly-owned subsidiaries , to trans states and pinnacle , respectively . upon the closing of these transactions , we entered into new or amended long-term capacity purchase agreements with compass , mesaba and pinnacle . prior to these sales , expenses related to compass and mesaba as our wholly-owned subsidiaries were reported in the applicable expense line items . subsequent to these sales , expenses related to compass and mesaba are reported as contract carrier arrangements expense . fuel expense . including contract carriers under capacity purchase agreements , fuel expense increased $ 2.9 billion on flat consumption . the table below presents fuel expense , gallons consumed , and our average price per fuel gallon , including the impact of fuel hedge activity : replace_table_token_14_th fuel expense increased primarily due to higher unhedged fuel prices , partially offset by an improvement in net fuel hedge results . story_separator_special_tag customers may earn mileage credits through participating companies such as credit card companies , hotels and car rental agencies with which we have marketing agreements to sell mileage credits . our contracts to sell mileage credits under these marketing agreements have two deliverables : ( 1 ) the mileage credits redeemable for future travel and ( 2 ) the marketing component . asu 2009-13 does not apply to contracts to sell mileage credits entered into prior to january 1 , 2011 unless those contracts are materially modified . as of december 31 , 2011 , we had not materially modified any of our significant agreements . our most significant contract to sell mileage credits relates to our co-brand credit card relationship with american express . for additional information about this relationship , see note 6. for contracts entered into prior to january 1 , 2011 that have not been materially modified since january 1 , 2011 , we continue to use the residual method for revenue recognition and value only the mileage credits . under the residual method , the portion of the revenue from the mileage component is deferred and recognized as passenger revenue when miles are redeemed and services are provided . the portion of the revenue received in excess of the fair value of mileage credits sold , the marketing component , is recognized in income as other revenue when the related marketing services are provided . the fair value of a mileage credit is determined based on prices at which we sell mileage credits to other airlines and is re-evaluated at least annually . if we enter into new contracts or materially modify existing contracts to sell mileage credits related to our skymiles program , we will value the standalone selling price of the marketing component and allocate the revenue from the contract based on the relative selling price of the mileage credits and the marketing component . a material modification of an existing contract could impact our deferral rate or cause an adjustment to our deferred revenue balance , which could materially impact our future financial results . breakage . for mileage credits which we estimate are not likely to be redeemed ( “ breakage ” ) , we recognize the associated value proportionally during the period in which the remaining mileage credits are expected to be redeemed . the estimate of breakage is based on historical redemption patterns . a change in assumptions as to the period over which mileage credits are expected to be redeemed , the actual redemption activity for mileage credits or the estimated fair value of mileage credits expected to be redeemed could have a material impact on our revenue in the year in which the change occurs and in future years . at december 31 , 2011 , the aggregate deferred revenue balance associated with the skymiles program was $ 4.5 billion . a hypothetical 1 % change in the number of outstanding miles estimated to be redeemed would result in a $ 31 million impact on our deferred revenue liability at december 31 , 2011 . goodwill and other intangible assets we apply a fair value-based impairment test to the net book value of goodwill and indefinite-lived intangible assets on an annual basis ( as of october 1 ) and , if certain events or circumstances indicate that an impairment loss may have been incurred , on an interim basis . in september 2011 , the fasb issued `` testing goodwill for impairment . `` the standard revises the way in which entities test goodwill for impairment . we adopted this standard and applied its provisions to our annual goodwill impairment test in the december 2011 quarter . key assumptions . the key assumptions in our impairment tests include ( 1 ) our projected revenues , expenses and cash flows , ( 2 ) an estimated weighted average cost of capital , ( 3 ) assumed discount rates depending on the asset and ( 4 ) a tax rate . these assumptions are consistent with those hypothetical market participants would use . since we are required to make estimates and assumptions when evaluating goodwill and indefinite-lived intangible assets for impairment , the actual amounts may differ materially from these estimates . 38 changes in assumptions or circumstances could result in impairment . factors which could cause impairment include , but are not limited to , ( 1 ) negative trends in our market capitalization , ( 2 ) an increase in fuel prices , ( 3 ) declining passenger mile yields , ( 4 ) lower passenger demand as a result of the weakened u.s. and global economy , ( 5 ) interruption to our operations due to an employee strike , terrorist attack , or other reasons , ( 6 ) changes to the regulatory environment and ( 7 ) consolidation of competitors in the airline industry . goodwill . as of december 31 , 2011 and 2010 , our goodwill balance was $ 9.8 billion . in evaluating goodwill for impairment , we estimate the fair value of our reporting unit by considering market capitalization and other factors if it is more likely than not that the fair value of our reporting unit is less than its carrying value . if the reporting unit 's fair value exceeds its carrying value , no further testing is required . if , however , the reporting unit 's carrying value exceeds its fair value , we then determine the amount of the impairment charge , if any . we recognize an impairment charge if the carrying value of the reporting unit 's goodwill exceeds its estimated fair value . identifiable intangible assets . our identifiable intangible assets had a net carrying amount of $ 4.8 billion at december 31 , 2011 . indefinite-lived assets are not amortized and consist primarily of routes , slots , the delta tradename and assets related to skyteam . definite-lived intangible assets consist

online retailers include amazon.com , dell , newegg.com and buy.com . our dmrs include cdw corporation , insight corporation and pc connection in domestic markets and misco throughout europe . in addition , we also sell our products through broadband service providers , such as multiple system operators ( “ msos ” ) , dsl , and other broadband technology operators domestically and internationally . some of these retailers and broadband service providers purchase directly from us , while others are fulfilled through wholesale distributors around the world . a substantial portion of our net revenue to date has been derived from a limited number of wholesale distributors and retailers . we expect that these wholesale distributors and retailers will continue to contribute a significant percentage of our net revenue for the foreseeable future . we experienced revenue growth of 1.7 % during the year ended december 31 , 2014 . the increase in net revenue was primarily attributable to increased sales of our mobile products acquired through our acquisition of aircard and broadband gateways , partially offset by a decrease in sales of our multimedia products . on a geographic basis , net revenue increased in the apac region , driven primarily by an increase in sales of our mobile , home wireless and broadband gateway products , partially offset by a reduction in sales of our small business wireless products . net revenue increased in the emea region , driven primarily by an increase in sales of our broadband gateways , partially offset by a reduction in sales of our mobile products . net revenue decreased in the americas region , driven primarily by a reduction in sales of our home wireless , multimedia , home security and automation products and 37 switches , partially offset by an increase in sales of our mobile products . on a segment basis , service provider net revenue increased , primarily due to an increase in gross shipments of mobile products , as a result of the aircard acquisition which was completed on april 2 , 2013. retail net revenue decreased slightly , due primarily to a reduction in gross shipments of our multimedia and powerline products , partially offset by an increase in gross shipments of home wireless products and broadband gateways . commercial net revenue decreased from prior year , due primarily to a reduction in gross shipments of our network storage and wireless products , partially offset by an increase in shipments of switches . in the fourth quarter of fiscal year 2014 , we saw a decline in net revenue in the service provider reporting unit . according to our customers , purchase constraints will tighten further in 2015 and for the foreseeable future . due to the decline in the estimated fair value of the business as a result of the decline in the long-term revenue and profitability projections of the reporting unit , we recorded a goodwill impairment charge of $ 74.2 million related to the service provider business unit in the fourth quarter of fiscal year 2014. looking forward , we expect growth in retail business unit mainly driven by continued introduction and wider adoption of our new 802.11 ac technology , accelerated penetration of home security automation products and establishment in cable gateway market . we expect growth in our commercial business unit driven by sales of our 10gig switches , poe switches , storage and wireless products among small and medium-sized businesses and end users . although service provider results remained strong for the first three quarters of 2014 , we expect revenue will continue to decline due to further weakness in capital expense spending by certain service providers in both north america and in europe . we also expect to incur restructuring charges of between $ 7.0 and $ 9.0 million during the first half of 2015 , as part of a plan to reduce the cost structure of the service provider business unit and supporting functions to match the reduced revenue outlook and to concentrate resources on long-term and profitable accounts . we remain focused on improving profitability , while investing in key strategic growth areas . the areas that we are targeting continue to be mobile lte , 802.11ac , home security and automation and the under-served small and medium-sized business market . critical accounting policies and estimates our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the united states of america and pursuant to the rules and regulations of the u.s. securities and exchange commission ( `` sec `` ) . the preparation of these financial statements requires management to make assumptions , judgments and estimates that can have a significant impact on the reported amounts of assets , liabilities , revenues and expenses . we base our estimates on historical experience and on various other assumptions believed to be applicable and reasonable under the circumstances . actual results could differ significantly from these estimates . these estimates may change as new events occur , as additional information is obtained and as our operating environment changes . on a regular basis we evaluate our assumptions , judgments and estimates and make changes accordingly . we also discuss our critical accounting estimates with the audit committee of the board of directors . note 1 , the company and summary of significant accounting policies , of the notes to consolidated financial statements of this annual report on form 10-k describes the significant accounting policies used in the preparation of the consolidated financial statements . we have listed below our critical accounting policies that we believe to have the greatest potential impact on our consolidated financial statements . historically , our assumptions , judgments and estimates relative to our critical accounting policies have not differed materially from actual results . story_separator_special_tag in addition , deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences resulting from different treatments for tax versus accounting of certain items , such as accruals and allowances not currently deductible for tax purposes . these differences result in deferred tax assets and liabilities , which are included within the consolidated balance sheet . we must then assess the likelihood that our deferred tax assets will be recovered from future taxable income and to the extent we believe that recovery is not more likely than not , we must establish a valuation allowance . our assessment considers the recognition of deferred tax assets on a jurisdictional basis . accordingly , in assessing our future taxable income on a jurisdictional basis , we consider the effect of its transfer pricing policies on that income . during the year ended december 31 , 2014 , a valuation allowance was placed against california deferred tax assets since the recovery of the assets is uncertain . we believe that all of our other deferred tax assets are recoverable ; however , if there were a change in our ability to recover our deferred tax assets , we would be required to take a charge in the period in which we determined that recovery was not more likely than not . uncertain tax provisions are recognized under guidance that provides that a company should use a more-likely-than-not recognition threshold based on the technical merits of the income tax position taken . income tax positions that meet the more-likely-than-not recognition threshold should be measured in order to determine the tax benefit to be recognized in the financial statements . we include interest expense and penalties related to uncertain tax positions as additional tax expense . 41 results of operations the following table sets forth , for the periods presented , the consolidated statements of operations data , which is derived from the accompanying consolidated financial statements : replace_table_token_8_th net revenue by geographic region our net revenue consists of gross product shipments , less allowances for estimated returns for stock rotation and warranty , price protection , end-user customer rebates and other sales incentives deemed to be a reduction of net revenue per the authoritative guidance for revenue recognition , and net changes in deferred revenue . we conduct business across three geographic regions : americas , emea and apac . for reporting purposes revenue is attributed to each geographic region based upon the location of the customer . replace_table_token_9_th 2014 vs 2013 the decrease in americas net revenue for the year ended december 31 , 2014 compared to the prior year was driven primarily by a reduction in sales of our home wireless , multimedia , home security and automation products and switches , partially offset by an increase in sales of our mobile products and broadband gateways . net revenue for mobile products increased for the year ended december 31 , 2014 as a result of the aircard acquisition which was completed on april 2 , 2013. in contrast to 2013 , the 42 positive effect of the acquisition is included in our results of the entire year ended december 31 , 2014. in our retail and distribution channels , we continue to see strong demand for our products . however , we are managing our inventory levels at our u.s. retail partners to be more aligned with historic levels , which has contributed to the decline in the americas net revenue for the year ended december 31 , 2014 compared to the prior year . the increase in emea net revenue for the year ended december 31 , 2014 compared to the prior year was driven primarily by an increase in sales of our switches and broadband gateways , partially offset by a reduction in sales of our mobile products . the increase in emea net revenue was primarily driven by sales to our service provider customers in fiscal 2014. we expect service provider revenue in emea to decrease in fiscal year 2015. these positive effects to net revenue in fiscal year 2014 were partially offset by challenges resulting from the macro-economic environment , increased competition and pricing pressures in europe , and weakening of foreign currencies compared to the u.s. dollar . the increase in apac net revenue for the year ended december 31 , 2014 compared to the prior year was driven primarily by an increase in sales of our mobile , home wireless and broadband gateway products , partially offset by a reduction in sales of our small business wireless products . net revenue for mobile products specifically increased for the year ended december 31 , 2014 as a result of the aircard acquisition which was completed on april 2 , 2013. in contrast to 2013 , the positive effect of the acquisition is included in our results for the entire year ended december 31 , 2014 . 2013 vs 2012 the increase in americas net revenue for the year ended december 31 , 2013 compared to the prior year was primarily attributable to increased sales of our mobile , home security and automation products and switches , partially offset by a decrease in sales of our broadband gateways . net revenue for mobile products increased for the year ended december 31 , 2013 as a result of the aircard acquisition which was completed in april 2 , 2013. the decrease in emea net revenue for the year ended december 31 , 2013 compared to the prior year was primarily attributable to a decrease in sales of our broadband gateways and home wireless products . net revenue for broadband gateways decreased for the year ended december 31 , 2013 due , in part , to consolidation among european cable operators in europe in the second half of the year . the increase in apac net revenue for the year ended december 31 , 2013 compared to the prior year was primarily attributable to

liquidity and capital resources as of december 31 , 2014 , we had cash , cash equivalents and short-term investments totaling $ 257.1 million . our cash and cash equivalents balance decreased from $ 143.0 million as of december 31 , 2013 to $ 141.2 million as of december 31 , 2014 . our short-term investments , which represent the investment of funds available for current operations , increased from $ 105.1 million as of december 31 , 2013 to $ 115.9 million as of december 31 , 2014 , resulting from net purchases of treasuries . operating activities during the year ended december 31 , 2014 generated cash of $ 109.0 million , compared to $ 86.9 million in 2013 , resulting primarily from an increase in net income when excluding the $ 74.2 million of non-cash goodwill impairment charge . investing activities during the year ended december 31 , 2014 used $ 30.7 million , mainly due to purchases of property and equipment , and net purchases of short-term investments . during the year ended december 31 , 2014 , financing activities used cash of $ 80.0 million , primarily due to the repurchase of common stock , partially offset by proceeds from the issuance of common stock upon exercise of stock options and our employee stock purchase program .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 , 2014 , we had cash , cash equivalents and short-term investments totaling $ 257.1 million . our cash and cash equivalents balance decreased from $ 143.0 million as of december 31 , 2013 to $ 141.2 million as of december 31 , 2014 . our short-term investments , which represent the investment of funds available for current operations , increased from $ 105.1 million as of december 31 , 2013 to $ 115.9 million as of december 31 , 2014 , resulting from net purchases of treasuries . operating activities during the year ended december 31 , 2014 generated cash of $ 109.0 million , compared to $ 86.9 million in 2013 , resulting primarily from an increase in net income when excluding the $ 74.2 million of non-cash goodwill impairment charge . investing activities during the year ended december 31 , 2014 used $ 30.7 million , mainly due to purchases of property and equipment , and net purchases of short-term investments . during the year ended december 31 , 2014 , financing activities used cash of $ 80.0 million , primarily due to the repurchase of common stock , partially offset by proceeds from the issuance of common stock upon exercise of stock options and our employee stock purchase program . ``` Suspicious Activity Report : online retailers include amazon.com , dell , newegg.com and buy.com . our dmrs include cdw corporation , insight corporation and pc connection in domestic markets and misco throughout europe . in addition , we also sell our products through broadband service providers , such as multiple system operators ( “ msos ” ) , dsl , and other broadband technology operators domestically and internationally . some of these retailers and broadband service providers purchase directly from us , while others are fulfilled through wholesale distributors around the world . a substantial portion of our net revenue to date has been derived from a limited number of wholesale distributors and retailers . we expect that these wholesale distributors and retailers will continue to contribute a significant percentage of our net revenue for the foreseeable future . we experienced revenue growth of 1.7 % during the year ended december 31 , 2014 . the increase in net revenue was primarily attributable to increased sales of our mobile products acquired through our acquisition of aircard and broadband gateways , partially offset by a decrease in sales of our multimedia products . on a geographic basis , net revenue increased in the apac region , driven primarily by an increase in sales of our mobile , home wireless and broadband gateway products , partially offset by a reduction in sales of our small business wireless products . net revenue increased in the emea region , driven primarily by an increase in sales of our broadband gateways , partially offset by a reduction in sales of our mobile products . net revenue decreased in the americas region , driven primarily by a reduction in sales of our home wireless , multimedia , home security and automation products and 37 switches , partially offset by an increase in sales of our mobile products . on a segment basis , service provider net revenue increased , primarily due to an increase in gross shipments of mobile products , as a result of the aircard acquisition which was completed on april 2 , 2013. retail net revenue decreased slightly , due primarily to a reduction in gross shipments of our multimedia and powerline products , partially offset by an increase in gross shipments of home wireless products and broadband gateways . commercial net revenue decreased from prior year , due primarily to a reduction in gross shipments of our network storage and wireless products , partially offset by an increase in shipments of switches . in the fourth quarter of fiscal year 2014 , we saw a decline in net revenue in the service provider reporting unit . according to our customers , purchase constraints will tighten further in 2015 and for the foreseeable future . due to the decline in the estimated fair value of the business as a result of the decline in the long-term revenue and profitability projections of the reporting unit , we recorded a goodwill impairment charge of $ 74.2 million related to the service provider business unit in the fourth quarter of fiscal year 2014. looking forward , we expect growth in retail business unit mainly driven by continued introduction and wider adoption of our new 802.11 ac technology , accelerated penetration of home security automation products and establishment in cable gateway market . we expect growth in our commercial business unit driven by sales of our 10gig switches , poe switches , storage and wireless products among small and medium-sized businesses and end users . although service provider results remained strong for the first three quarters of 2014 , we expect revenue will continue to decline due to further weakness in capital expense spending by certain service providers in both north america and in europe . we also expect to incur restructuring charges of between $ 7.0 and $ 9.0 million during the first half of 2015 , as part of a plan to reduce the cost structure of the service provider business unit and supporting functions to match the reduced revenue outlook and to concentrate resources on long-term and profitable accounts . we remain focused on improving profitability , while investing in key strategic growth areas . the areas that we are targeting continue to be mobile lte , 802.11ac , home security and automation and the under-served small and medium-sized business market . critical accounting policies and estimates our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the united states of america and pursuant to the rules and regulations of the u.s. securities and exchange commission ( `` sec `` ) . the preparation of these financial statements requires management to make assumptions , judgments and estimates that can have a significant impact on the reported amounts of assets , liabilities , revenues and expenses . we base our estimates on historical experience and on various other assumptions believed to be applicable and reasonable under the circumstances . actual results could differ significantly from these estimates . these estimates may change as new events occur , as additional information is obtained and as our operating environment changes . on a regular basis we evaluate our assumptions , judgments and estimates and make changes accordingly . we also discuss our critical accounting estimates with the audit committee of the board of directors . note 1 , the company and summary of significant accounting policies , of the notes to consolidated financial statements of this annual report on form 10-k describes the significant accounting policies used in the preparation of the consolidated financial statements . we have listed below our critical accounting policies that we believe to have the greatest potential impact on our consolidated financial statements . historically , our assumptions , judgments and estimates relative to our critical accounting policies have not differed materially from actual results . story_separator_special_tag in addition , deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences resulting from different treatments for tax versus accounting of certain items , such as accruals and allowances not currently deductible for tax purposes . these differences result in deferred tax assets and liabilities , which are included within the consolidated balance sheet . we must then assess the likelihood that our deferred tax assets will be recovered from future taxable income and to the extent we believe that recovery is not more likely than not , we must establish a valuation allowance . our assessment considers the recognition of deferred tax assets on a jurisdictional basis . accordingly , in assessing our future taxable income on a jurisdictional basis , we consider the effect of its transfer pricing policies on that income . during the year ended december 31 , 2014 , a valuation allowance was placed against california deferred tax assets since the recovery of the assets is uncertain . we believe that all of our other deferred tax assets are recoverable ; however , if there were a change in our ability to recover our deferred tax assets , we would be required to take a charge in the period in which we determined that recovery was not more likely than not . uncertain tax provisions are recognized under guidance that provides that a company should use a more-likely-than-not recognition threshold based on the technical merits of the income tax position taken . income tax positions that meet the more-likely-than-not recognition threshold should be measured in order to determine the tax benefit to be recognized in the financial statements . we include interest expense and penalties related to uncertain tax positions as additional tax expense . 41 results of operations the following table sets forth , for the periods presented , the consolidated statements of operations data , which is derived from the accompanying consolidated financial statements : replace_table_token_8_th net revenue by geographic region our net revenue consists of gross product shipments , less allowances for estimated returns for stock rotation and warranty , price protection , end-user customer rebates and other sales incentives deemed to be a reduction of net revenue per the authoritative guidance for revenue recognition , and net changes in deferred revenue . we conduct business across three geographic regions : americas , emea and apac . for reporting purposes revenue is attributed to each geographic region based upon the location of the customer . replace_table_token_9_th 2014 vs 2013 the decrease in americas net revenue for the year ended december 31 , 2014 compared to the prior year was driven primarily by a reduction in sales of our home wireless , multimedia , home security and automation products and switches , partially offset by an increase in sales of our mobile products and broadband gateways . net revenue for mobile products increased for the year ended december 31 , 2014 as a result of the aircard acquisition which was completed on april 2 , 2013. in contrast to 2013 , the 42 positive effect of the acquisition is included in our results of the entire year ended december 31 , 2014. in our retail and distribution channels , we continue to see strong demand for our products . however , we are managing our inventory levels at our u.s. retail partners to be more aligned with historic levels , which has contributed to the decline in the americas net revenue for the year ended december 31 , 2014 compared to the prior year . the increase in emea net revenue for the year ended december 31 , 2014 compared to the prior year was driven primarily by an increase in sales of our switches and broadband gateways , partially offset by a reduction in sales of our mobile products . the increase in emea net revenue was primarily driven by sales to our service provider customers in fiscal 2014. we expect service provider revenue in emea to decrease in fiscal year 2015. these positive effects to net revenue in fiscal year 2014 were partially offset by challenges resulting from the macro-economic environment , increased competition and pricing pressures in europe , and weakening of foreign currencies compared to the u.s. dollar . the increase in apac net revenue for the year ended december 31 , 2014 compared to the prior year was driven primarily by an increase in sales of our mobile , home wireless and broadband gateway products , partially offset by a reduction in sales of our small business wireless products . net revenue for mobile products specifically increased for the year ended december 31 , 2014 as a result of the aircard acquisition which was completed on april 2 , 2013. in contrast to 2013 , the positive effect of the acquisition is included in our results for the entire year ended december 31 , 2014 . 2013 vs 2012 the increase in americas net revenue for the year ended december 31 , 2013 compared to the prior year was primarily attributable to increased sales of our mobile , home security and automation products and switches , partially offset by a decrease in sales of our broadband gateways . net revenue for mobile products increased for the year ended december 31 , 2013 as a result of the aircard acquisition which was completed in april 2 , 2013. the decrease in emea net revenue for the year ended december 31 , 2013 compared to the prior year was primarily attributable to a decrease in sales of our broadband gateways and home wireless products . net revenue for broadband gateways decreased for the year ended december 31 , 2013 due , in part , to consolidation among european cable operators in europe in the second half of the year . the increase in apac net revenue for the year ended december 31 , 2013 compared to the prior year was primarily attributable to

the company completed the elimination of certain corporate redundancies , the planning of country consolidation activities and the renegotiating of supply contracts with vendors . additionally , the company initiated reorganization activities that include manufacturing and logistics . the company achieved tax savings as it realized complementary tax attributes of the combined businesses . with regard to revenue synergies , dentsply sirona launched combined commercial activities , such as bundling products and developing cross-selling opportunities . investments in research and development have yielded new products and solutions which is expected to generate sales growth in the future . 32 during 2016 , the company deployed cash in excess of $ 1.2 billion as it returned cash to shareholders through common share repurchases and dividend payments , as well as strengthened the business through acquisitions . during 2016 , the company completed two acquisitions with an aggregate purchase price of $ 341.1 million , including the acquisition of mis implants technologies ltd. ( “ mis ” ) , a manufacturer of dental implant systems , and a small acquisition of a healthcare consumable business . in addition , the company repurchased $ 813.9 million of common shares outstanding in 2016. company profile dentsply sirona is the world 's largest manufacturer of professional dental products and technologies , with a 130-year history of innovation and service to the dental industry and patients worldwide . dentsply sirona develops , manufactures , and markets a comprehensive solutions offering including dental and oral health products as well as other consumable medical devices under a strong portfolio of world class brands . as the dental solutions company , dentsply sirona 's products provide innovative , high-quality and effective solutions to advance patient care and deliver better , safer and faster dentistry . dentsply sirona 's global headquarters is located in york , pennsylvania , and the international headquarters are based in salzburg , austria . the company 's shares are listed in the united states on nasdaq under the symbol xray . business the company operates in two business segments , dental and healthcare consumables and technologies . the dental and healthcare consumables segment includes responsibility for the worldwide design , manufacture , sales and distribution of the company 's dental and healthcare consumable products which include preventive , restorative , instruments , endodontic , and laboratory dental products as well as consumable medical device products . the technologies segment is responsible for the worldwide design , manufacture , sales and distribution of the company 's dental technology products which includes dental implants , cad/cam systems , imaging systems , treatment centers and orthodontic products . principal measurements the principal measurements used by the company in evaluating its business are : ( 1 ) constant currency sales growth by segment and geographic region ; ( 2 ) internal sales growth by segment and geographic region ; and ( 3 ) adjusted operating income and margins of each reportable segment , which excludes the impacts of purchase accounting , corporate expenses , and certain other items to enhance the comparability of results period to period . these principal measurements are not calculated in accordance with accounting principles generally accepted in the united states ; therefore , these items represent non-us gaap measures . these non-us gaap measures may differ from other companies and should not be considered in isolation from , or as a substitute for , measures of financial performance prepared in accordance with us gaap . the company defines “ constant currency ” sales growth as the increase or decrease in net sales from period to period excluding precious metal content and the impact of changes in foreign currency exchange rates . this impact is calculated by comparing current-period revenues to prior-period revenues , with both periods converted at the u.s. dollar to local currency average foreign exchange rate for each month of the prior period , for the currencies in which the company does business . the company defines “ internal ” sales growth as constant currency sales growth excluding the impacts of net acquisitions and divestitures , merger accounting impacts and discontinued products . business drivers the primary drivers of internal growth include macroeconomic factors , global dental market growth , innovation and new product launches by the company , as well as continued investments in sales and marketing resources , including clinical education . management believes that the company 's ability to execute its strategies has allowed it to grow faster than the underlying dental market . the company has a focus on maximizing operational efficiencies on a global basis . the company has expanded the use of technology as well as process improvement initiatives to enhance global efficiency . in addition , management continues to evaluate the consolidation of operations and functions , as part of integration activities , to further reduce costs . the company believes that the benefits from these global efficiency and integration initiatives will improve the cost structure and help mitigate the impacts of rising costs such as energy , employee benefits and regulatory oversight and compliance . 33 the company expects that it will record restructuring charges , from time to time , associated with such initiatives . these restructuring charges could be material to the company 's consolidated financial statements and there can be no assurance that the target adjusted operating income margins will continue to be achieved . in october 2016 , the company announced that it is proposing plans in germany to reorganize and combine portions of its manufacturing , logistics and distribution networks within both of the company 's segments . as required under german law , the company has entered into a statutory co-determination process under which it will collaborate with the appropriate labor groups to jointly define the infrastructure and staffing adjustments necessary to support this initiative . the company also initiated similar actions in other regions of the world . story_separator_special_tag the company also recorded $ 0.8 million of tax expense related to other discrete tax matters . excluding the impact of these tax matters , the company 's effective tax rate was 18.9 % . the effective tax rate was favorably impacted by the company 's change in the mix of consolidated earnings . further information regarding the details of income taxes is presented in note 14 , income taxes , in the notes to consolidated financial statements in item 15 of this form 10-k. the company 's effective income tax rate for 2016 included the net impact of business combination related costs and fair value adjustments , amortization of purchased intangible assets , restructuring program related costs and other costs , credit risk and fair value adjustments and income tax related adjustments which impacted income before income taxes and the provision for income taxes by $ 340.3 million and $ 153.1 million , respectively . the company 's effective income tax rate for 2015 included the net impact of restructuring program related costs and other costs , amortization of purchased intangible assets , business combination related costs and fair value adjustments , income tax related adjustments , credit risk and fair value adjustments and certain fair value adjustments related to an unconsolidated affiliated company which impacted income before income taxes and the provision for income taxes by $ 153.0 million and $ 33.5 million , respectively . 39 net income attributable to dentsply sirona in addition to the results reported in accordance with us gaap , the company provides adjusted net income attributable to dentsply sirona and adjusted earnings per diluted common share ( “ adjusted eps ” ) . the company discloses adjusted net income attributable to dentsply sirona to allow investors to evaluate the performance of the company 's operations exclusive of certain items that impact the comparability of results from period to period and may not be indicative of past or future performance of the normal operations of the company and certain large non-cash charges related to intangible assets either purchased or acquired through a business combination . the company believes that this information is helpful in understanding underlying operating trends and cash flow generation . adjusted net income and adjusted eps are important internal measures for the company . senior management receives a monthly analysis of operating results that includes adjusted net income and adjusted eps and the performance of the company is measured on this basis along with other performance metrics . the adjusted net income attributable to dentsply sirona consists of net income attributable to dentsply sirona adjusted to exclude the following : ( 1 ) business combination related costs and fair value adjustments . these adjustments include costs related to integrating and consummating mergers and recently acquired businesses , as well as costs , gains and losses related to the disposal of businesses or product lines . in addition , this category includes the roll off to the consolidated statement of operations of fair value adjustments related to business combinations , except for amortization expense noted below . these items are irregular in timing and as such may not be indicative of past and future performance of the company and are therefore excluded to allow investors to better understand underlying operating trends . ( 2 ) restructuring program related costs and other costs . these adjustments include costs related to the implementation of restructuring initiatives as well as certain other costs . these costs can include , but are not limited to , severance costs , facility closure costs , lease and contract terminations costs , related professional service costs , duplicate facility and labor costs associated with specific restructuring initiatives , as well as , legal settlements and impairments of assets . these items are irregular in timing , amount and impact to the company 's financial performance . as such , these items may not be indicative of past and future performance of the company and are therefore excluded for the purpose of understanding underlying operating trends . ( 3 ) amortization of purchased intangible assets . this adjustment excludes the periodic amortization expense related to purchased intangible assets . amortization expense has been excluded from adjusted net income attributed to dentsply sirona to allow investors to evaluate and understand operating trends excluding these large non-cash charges . ( 4 ) credit risk and fair value adjustments . these adjustments include both the cost and income impacts of adjustments in certain assets and liabilities including the company 's pension obligations , that are recorded through net income which are due solely to the changes in fair value and credit risk . these items can be variable and driven more by market conditions than the company 's operating performance . as such , these items may not be indicative of past and future performance of the company and therefore are excluded for comparability purposes . ( 5 ) certain fair value adjustments related to an unconsolidated affiliated company . this adjustment represents the fair value adjustment of the unconsolidated affiliated company 's convertible debt instrument held by the company . the affiliate is accounted for under the equity method of accounting . the fair value adjustment is driven by open market pricing of the affiliate 's equity instruments , which has a high degree of variability and may not be indicative of the operating performance of the affiliate or the company . ( 6 ) income tax related adjustments . these adjustments include both income tax expenses and income tax benefits that are representative of income tax adjustments mostly related to prior periods , as well as the final settlement of income tax audits , and discrete tax items resulting from the implementation of restructuring initiatives . these adjustments are irregular in timing and amount and may significantly impact the company 's operating performance . as such , these items may not be indicative of past and future performance of the

liquidity and capital resources cash flows from operating activities during the year ended december 31 , 2016 were $ 563.4 million compared to $ 497.4 million during the year ended december 31 , 2015. net income improved by $ 180.4 million in the period ended december 31 , 2016 compared to the prior year , largely from the merger and acquisition growth . this improvement was offset by increases in accounts receivable and prepaid expenses and merger transaction related fees and integration costs . working capital uses consumed $ 153.4 million in 2016 compared to cash generated of $ 65.4 million in 2015. primary working capital ( defined as inventories plus accounts receivable less accounts payable , a non-us gaap measure ) consumed $ 112.6 million of operating cash flow in 2016 compared to sources of $ 46.1 million in 2015. the investment of $ 112.6 million during the 2016 calendar year came from higher accounts receivable of $ 75.1 million , higher inventory of $ 11.6 million , and investment of $ 25.9 million in prepaid expenses and other current assets , net of accruals . this investment in primary working capital was partially offset by a reduction in inventory of $ 77.0 million related to the roll off of fair value adjustments from the merger and acquisitions . the decline in total working capital was further impacted by higher tax payments of $ 137.1 million in 2016 versus 2015. the company 's cash and cash equivalents increased by $ 99.3 million during the year ended december 31 , 2016 to $ 383.9 million .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources cash flows from operating activities during the year ended december 31 , 2016 were $ 563.4 million compared to $ 497.4 million during the year ended december 31 , 2015. net income improved by $ 180.4 million in the period ended december 31 , 2016 compared to the prior year , largely from the merger and acquisition growth . this improvement was offset by increases in accounts receivable and prepaid expenses and merger transaction related fees and integration costs . working capital uses consumed $ 153.4 million in 2016 compared to cash generated of $ 65.4 million in 2015. primary working capital ( defined as inventories plus accounts receivable less accounts payable , a non-us gaap measure ) consumed $ 112.6 million of operating cash flow in 2016 compared to sources of $ 46.1 million in 2015. the investment of $ 112.6 million during the 2016 calendar year came from higher accounts receivable of $ 75.1 million , higher inventory of $ 11.6 million , and investment of $ 25.9 million in prepaid expenses and other current assets , net of accruals . this investment in primary working capital was partially offset by a reduction in inventory of $ 77.0 million related to the roll off of fair value adjustments from the merger and acquisitions . the decline in total working capital was further impacted by higher tax payments of $ 137.1 million in 2016 versus 2015. the company 's cash and cash equivalents increased by $ 99.3 million during the year ended december 31 , 2016 to $ 383.9 million . ``` Suspicious Activity Report : the company completed the elimination of certain corporate redundancies , the planning of country consolidation activities and the renegotiating of supply contracts with vendors . additionally , the company initiated reorganization activities that include manufacturing and logistics . the company achieved tax savings as it realized complementary tax attributes of the combined businesses . with regard to revenue synergies , dentsply sirona launched combined commercial activities , such as bundling products and developing cross-selling opportunities . investments in research and development have yielded new products and solutions which is expected to generate sales growth in the future . 32 during 2016 , the company deployed cash in excess of $ 1.2 billion as it returned cash to shareholders through common share repurchases and dividend payments , as well as strengthened the business through acquisitions . during 2016 , the company completed two acquisitions with an aggregate purchase price of $ 341.1 million , including the acquisition of mis implants technologies ltd. ( “ mis ” ) , a manufacturer of dental implant systems , and a small acquisition of a healthcare consumable business . in addition , the company repurchased $ 813.9 million of common shares outstanding in 2016. company profile dentsply sirona is the world 's largest manufacturer of professional dental products and technologies , with a 130-year history of innovation and service to the dental industry and patients worldwide . dentsply sirona develops , manufactures , and markets a comprehensive solutions offering including dental and oral health products as well as other consumable medical devices under a strong portfolio of world class brands . as the dental solutions company , dentsply sirona 's products provide innovative , high-quality and effective solutions to advance patient care and deliver better , safer and faster dentistry . dentsply sirona 's global headquarters is located in york , pennsylvania , and the international headquarters are based in salzburg , austria . the company 's shares are listed in the united states on nasdaq under the symbol xray . business the company operates in two business segments , dental and healthcare consumables and technologies . the dental and healthcare consumables segment includes responsibility for the worldwide design , manufacture , sales and distribution of the company 's dental and healthcare consumable products which include preventive , restorative , instruments , endodontic , and laboratory dental products as well as consumable medical device products . the technologies segment is responsible for the worldwide design , manufacture , sales and distribution of the company 's dental technology products which includes dental implants , cad/cam systems , imaging systems , treatment centers and orthodontic products . principal measurements the principal measurements used by the company in evaluating its business are : ( 1 ) constant currency sales growth by segment and geographic region ; ( 2 ) internal sales growth by segment and geographic region ; and ( 3 ) adjusted operating income and margins of each reportable segment , which excludes the impacts of purchase accounting , corporate expenses , and certain other items to enhance the comparability of results period to period . these principal measurements are not calculated in accordance with accounting principles generally accepted in the united states ; therefore , these items represent non-us gaap measures . these non-us gaap measures may differ from other companies and should not be considered in isolation from , or as a substitute for , measures of financial performance prepared in accordance with us gaap . the company defines “ constant currency ” sales growth as the increase or decrease in net sales from period to period excluding precious metal content and the impact of changes in foreign currency exchange rates . this impact is calculated by comparing current-period revenues to prior-period revenues , with both periods converted at the u.s. dollar to local currency average foreign exchange rate for each month of the prior period , for the currencies in which the company does business . the company defines “ internal ” sales growth as constant currency sales growth excluding the impacts of net acquisitions and divestitures , merger accounting impacts and discontinued products . business drivers the primary drivers of internal growth include macroeconomic factors , global dental market growth , innovation and new product launches by the company , as well as continued investments in sales and marketing resources , including clinical education . management believes that the company 's ability to execute its strategies has allowed it to grow faster than the underlying dental market . the company has a focus on maximizing operational efficiencies on a global basis . the company has expanded the use of technology as well as process improvement initiatives to enhance global efficiency . in addition , management continues to evaluate the consolidation of operations and functions , as part of integration activities , to further reduce costs . the company believes that the benefits from these global efficiency and integration initiatives will improve the cost structure and help mitigate the impacts of rising costs such as energy , employee benefits and regulatory oversight and compliance . 33 the company expects that it will record restructuring charges , from time to time , associated with such initiatives . these restructuring charges could be material to the company 's consolidated financial statements and there can be no assurance that the target adjusted operating income margins will continue to be achieved . in october 2016 , the company announced that it is proposing plans in germany to reorganize and combine portions of its manufacturing , logistics and distribution networks within both of the company 's segments . as required under german law , the company has entered into a statutory co-determination process under which it will collaborate with the appropriate labor groups to jointly define the infrastructure and staffing adjustments necessary to support this initiative . the company also initiated similar actions in other regions of the world . story_separator_special_tag the company also recorded $ 0.8 million of tax expense related to other discrete tax matters . excluding the impact of these tax matters , the company 's effective tax rate was 18.9 % . the effective tax rate was favorably impacted by the company 's change in the mix of consolidated earnings . further information regarding the details of income taxes is presented in note 14 , income taxes , in the notes to consolidated financial statements in item 15 of this form 10-k. the company 's effective income tax rate for 2016 included the net impact of business combination related costs and fair value adjustments , amortization of purchased intangible assets , restructuring program related costs and other costs , credit risk and fair value adjustments and income tax related adjustments which impacted income before income taxes and the provision for income taxes by $ 340.3 million and $ 153.1 million , respectively . the company 's effective income tax rate for 2015 included the net impact of restructuring program related costs and other costs , amortization of purchased intangible assets , business combination related costs and fair value adjustments , income tax related adjustments , credit risk and fair value adjustments and certain fair value adjustments related to an unconsolidated affiliated company which impacted income before income taxes and the provision for income taxes by $ 153.0 million and $ 33.5 million , respectively . 39 net income attributable to dentsply sirona in addition to the results reported in accordance with us gaap , the company provides adjusted net income attributable to dentsply sirona and adjusted earnings per diluted common share ( “ adjusted eps ” ) . the company discloses adjusted net income attributable to dentsply sirona to allow investors to evaluate the performance of the company 's operations exclusive of certain items that impact the comparability of results from period to period and may not be indicative of past or future performance of the normal operations of the company and certain large non-cash charges related to intangible assets either purchased or acquired through a business combination . the company believes that this information is helpful in understanding underlying operating trends and cash flow generation . adjusted net income and adjusted eps are important internal measures for the company . senior management receives a monthly analysis of operating results that includes adjusted net income and adjusted eps and the performance of the company is measured on this basis along with other performance metrics . the adjusted net income attributable to dentsply sirona consists of net income attributable to dentsply sirona adjusted to exclude the following : ( 1 ) business combination related costs and fair value adjustments . these adjustments include costs related to integrating and consummating mergers and recently acquired businesses , as well as costs , gains and losses related to the disposal of businesses or product lines . in addition , this category includes the roll off to the consolidated statement of operations of fair value adjustments related to business combinations , except for amortization expense noted below . these items are irregular in timing and as such may not be indicative of past and future performance of the company and are therefore excluded to allow investors to better understand underlying operating trends . ( 2 ) restructuring program related costs and other costs . these adjustments include costs related to the implementation of restructuring initiatives as well as certain other costs . these costs can include , but are not limited to , severance costs , facility closure costs , lease and contract terminations costs , related professional service costs , duplicate facility and labor costs associated with specific restructuring initiatives , as well as , legal settlements and impairments of assets . these items are irregular in timing , amount and impact to the company 's financial performance . as such , these items may not be indicative of past and future performance of the company and are therefore excluded for the purpose of understanding underlying operating trends . ( 3 ) amortization of purchased intangible assets . this adjustment excludes the periodic amortization expense related to purchased intangible assets . amortization expense has been excluded from adjusted net income attributed to dentsply sirona to allow investors to evaluate and understand operating trends excluding these large non-cash charges . ( 4 ) credit risk and fair value adjustments . these adjustments include both the cost and income impacts of adjustments in certain assets and liabilities including the company 's pension obligations , that are recorded through net income which are due solely to the changes in fair value and credit risk . these items can be variable and driven more by market conditions than the company 's operating performance . as such , these items may not be indicative of past and future performance of the company and therefore are excluded for comparability purposes . ( 5 ) certain fair value adjustments related to an unconsolidated affiliated company . this adjustment represents the fair value adjustment of the unconsolidated affiliated company 's convertible debt instrument held by the company . the affiliate is accounted for under the equity method of accounting . the fair value adjustment is driven by open market pricing of the affiliate 's equity instruments , which has a high degree of variability and may not be indicative of the operating performance of the affiliate or the company . ( 6 ) income tax related adjustments . these adjustments include both income tax expenses and income tax benefits that are representative of income tax adjustments mostly related to prior periods , as well as the final settlement of income tax audits , and discrete tax items resulting from the implementation of restructuring initiatives . these adjustments are irregular in timing and amount and may significantly impact the company 's operating performance . as such , these items may not be indicative of past and future performance of the

we evaluated the joint 64 venture company under the authoritative guidance and concluded that it is a variable interest entity for which we are not the primary beneficiary as we will not have a majority of the board seats and we will not have any power to direct or significantly influence the actions of the entity . we will therefore not consolidate the joint venture company into our financial results but will account for the activities of the joint venture company under the equity method whereby we will absorb any loss or income generated by the entity according to our percentage ownership . at present , we are focusing our resources on the following prioritized product development programs : mn-221 for the treatment of acute exacerbations of asthma and copd exacerbations , for which we initiated a phase 2 clinical trial ( mn-221-cl-007 ) in the first quarter of 2009 to evaluate the safety and efficacy of mn-221 in patients with acute exacerbations of asthma treated in the emergency room . this trial completed enrollment in march 2012. depending on the results of our phase 2 clinical trial ( mn-221-cl-007 ) and our ability to raise additional capital and or to enter into a collaboration with a leading pharmaceutical or biotech company , we intend to define a phase 3 trial and other development plans for mn-221 for the treatment of acute exacerbations of asthma and conduct one or more phase 3 trials . copd development , which included a phase 1b clinical trial in patients with stable , moderate to severe copd , was completed in 2010. in the first quarter of 2012 we initiated an additional phase 1b/2a copd clinical trial that has commenced enrollment and has an anticipated trial completion around the end of the second quarter of 2012. mn-166 , an ibudilast-based product development , for which we continue to pursue discussions with potential partners or other strategic collaboration ( s ) . mn-166 has completed a phase 2 clinical trial in ms in eastern europe in 2008 wherein positive safety and neuroprotective efficacy indicators were obtained , thus , directing next stage development towards a phase 2b progressive ms indication . limited animal safety and product manufacturing and stability work has been completed or is ongoing . in the drug addiction area , a phase 1b/2a opioid withdrawal clinical trial funded by the national institute on drug abuse , or nida , was completed at the end of 2010. a phase 1b nida-funded clinical trial in methamphetamine-dependent volunteers with expert investigators at ucla initiated in the fourth quarter of 2010 and is currently enrolling patients . in addition , a headache and pain specialist in australia initiated an investigator sponsored phase 2 clinical trial of ibudilast as a potential new pharmacotherapy for medication overuse headache that is expected to complete enrollment at the end of 2012. we intend to enter into additional strategic alliances with leading pharmaceutical or biotech companies to support further clinical development of mn-166 . upon completion of proof-of-concept phase 2 clinical trials , we intend to enter into strategic alliances with leading pharmaceutical or biotech companies to support further clinical development , and to keep certain commercialization rights in select markets . depending on the outcome of the phase 2 trial of mn-221 for the treatment of acute exacerbations of asthma , we may seek to raise addition capital and or enter into a collaboration and conduct a phase 3 development program . we may also pursue potential partners and potential acquirers of license rights to our programs in markets outside the u.s. in addition , we continue to limit activities for the balance of our existing product development programs in order to focus on our prioritized product development programs . for each of these remaining product development programs , we plan to conduct development activities only to the extent deemed necessary to maintain our license rights or maximize its value while pursuing a variety of initiatives to monetize such programs . our eight non-prioritized product development programs consist of the following : mn-001 for the treatment of bronchial asthma , for which we initiated a phase 3 clinical program in the fourth quarter of 2006 that we subsequently terminated in the second quarter of 2007 , and for which we developed prototypes of once-per-day oral dosing formulations ; 65 mn-001 for the treatment of interstitial cystitis , for which we completed a phase 2 clinical trial in the first quarter of 2007 ; mn-029 for the treatment of solid tumors , for which we completed one phase 1 clinical trial in the second quarter of 2006 and one phase 1 clinical trial in the fourth quarter of 2007 ; mn-305 for the treatment of generalized anxiety disorder/insomnia , for which we completed a phase 2 clinical trial for the treatment of generalized anxiety disorder in the second quarter of 2006 and a phase 2 clinical trial for the treatment of insomnia in the fourth quarter of 2007 ; mn-221 for the treatment of preterm labor , for which we completed a phase 1 clinical trial to investigate the pharmacokinetic profile of mn-221 in healthy pregnant women not in labor in the second quarter of 2007 ; mn-246 for the treatment of urinary incontinence , for which we completed a phase 1 clinical trial in the fourth quarter of 2006 and a phase 1 food effects study in the first quarter of 2007 ; mn-447 for the treatment of thrombotic disorders , which remains in preclinical development ; and mn-462 for the treatment of thrombotic disorders , which remains in preclinical development . story_separator_special_tag goodwill and purchased intangibles goodwill is recorded when the consideration paid for an acquisition exceeds the fair value of the identified net tangible and intangible assets of acquired businesses . the allocation of purchase price for acquisitions require extensive use of accounting estimates and judgments to allocate the purchase price to the identifiable tangible and intangible assets acquired and liabilities assumed based on their respective fair values . additionally , we must determine whether an acquired entity is considered to be a business or a set of net assets as a portion of the purchase price can only be allocated to goodwill in a business combination . goodwill and intangible assets deemed to have indefinite lives are not amortized , but are subject to annual impairment tests . the amounts and useful lives assigned to intangible assets that have finite useful lives require the use of estimates and the exercise of judgment . these judgments can significantly affect our net operating results . as of december 31 , 2011 and 2010 , we had goodwill and ipr & d recorded of $ 9.6 million and $ 4.8 million , respectively . our annual test date for goodwill and purchased intangibles impairment is december 31 or more frequently if we believe indicators of impairment are present . we periodically re-evaluate the original assumptions and rationale utilized in the establishment of the carrying value and estimated lives of our long-lived assets . the criteria used for these evaluations include management 's estimate of the asset 's continuing ability to generate income from operations and positive cash flows in future periods as well as the strategic significance of any intangible assets in our business objectives . if assets are considered to be impaired , the impairment recognized is the amount by which the carrying value of the assets exceeds the fair value of the assets . fair value measurements we are required to measure certain assets and liabilities at fair value , either upon initial measurement or for subsequent accounting or reporting . we use fair value extensively in the initial measurement of net assets 72 acquired in a business combination and when accounting for and reporting on investment securities and certain financial instruments or assets . we estimate fair value using an exit price approach , which requires , among other things , that we determine the price that would be received to sell an asset or paid to transfer a liability in an orderly market of market participants , considering the highest and best use of assets and , for liabilities , assuming the risk of non-performance will be the same before and after the transfer . many , but not all , of our financial instruments are carried at fair value . in addition , as required under accounting rules for business combinations , the assets acquired and liabilities assumed in the avigen transaction on december 18 , 2009 have been recorded at their estimated fair values as of the acquisition date . for information on fair value for our financial instruments , see notes to consolidated financial statements — note 3. fair value measurements—other than intangibles and goodwill . recently issued accounting standards in september 2011 , the financial accounting standards board , or fasb , issued updated guidance to simplify how entities test for goodwill impairment . the updated guidance permits an assessment of qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit in which goodwill resides is less than its carrying value . for reporting units in which this assessment concludes it is more likely than not that the fair value is more than its carrying value , the updated guidance eliminates the requirement to perform further goodwill impairment testing . this new guidance is effective for fiscal years beginning after december 15 , 2011 and becomes effective for us in the first quarter of fiscal year 2012. we do not expect the adoption to have a material impact on our financial position or results of operations . in june 2011 , the fasb issued a guidance related to the presentation of comprehensive income . the guidance requires an entity to present items of net income and other comprehensive income , or oci , and total comprehensive income either in a single continuous statement of comprehensive income or two separate but continuous statements . we will no longer be allowed to present oci in the statement of stockholders ' equity . earnings per share would continue to be based on net income . although existing guidance related to items that must be presented in oci has not changed , companies will be required to display reclassification adjustments for each component of oci in both net income and oci . also , companies will need to present the components of other comprehensive income in their interim and annual financial statements . this guidance is required to be implemented retrospectively during interim and annual periods beginning after december 15 , 2011 and becomes effective for us in the first quarter of fiscal year 2012. the adoption of this update is not expected to have a material impact on our consolidated financial statements . in may 2011 , the fasb issued updated guidance related to fair value measurements and disclosures that clarified and amended the wording used to describe many of the requirements in gaap for measuring fair value and for disclosing information about fair value measurements . the fasb also clarified the intent of existing fair value measurement requirements . the new and revised disclosures are required to be implemented prospectively during interim and annual periods beginning after december 15 , 2011 and become effective for us in the first quarter of fiscal year 2012. early adoption is not permitted . the adoption of this update is not expected to have a material impact on our consolidated financial statements . results of operations comparison of the years ended december

debt on may 10 , 2010 , we entered into a loan and security agreement , or the loan agreement , with oxford finance corporation , or oxford , under which we borrowed $ 15.0 million at a stated annual interest rate of 12.87 % . the financing was used to satisfy working capital needs , including the continued clinical development of mn-221 . pursuant to the loan agreement , we issued to oxford a warrant to purchase up to 198,020 shares of our common stock , par value $ 0.001 per share , at an exercise price of $ 6.06 per share . based on a black-scholes valuation model , the relative fair value of the warrant was approximately $ 859,000. we accounted for the warrant as a component of stockholders ' equity as the agreement required settlement in shares and under no provision of the agreement were we required to settle the warrant in cash . we accounted for the interest on the debt under the effective interest method wherein we treated the debt issuance costs paid directly to the lender and the relative fair value of the warrants issued to the lender as a discount on the debt ( or a contra liability ) and we treated the debt issuance costs paid to third parties as an asset . the amortization of the debt discount was recorded as interest expense and the amortization of the debt issuance costs paid to third parties was recorded as other expense in our consolidated statement of operations . on april 1 , 2011 , we entered into an agreement with oxford under which we made an early repayment of the loan in-full and wherein oxford waived the prepayment penalty of approximately $ 437,000. reduction-in-force in january 2011 , we had a reduction-in-force , or rif , to reduce costs . we believe that we remain adequately staffed given our research and development focus and utilization of external resources . underwritten firm commitment public offering on march 23 , 2011 , we consummated a firm-commitment underwritten public offering of 2,750,000 units at a price to the public of $ 3.00 per unit for gross proceeds of approximately $ 8.25 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. ```debt on may 10 , 2010 , we entered into a loan and security agreement , or the loan agreement , with oxford finance corporation , or oxford , under which we borrowed $ 15.0 million at a stated annual interest rate of 12.87 % . the financing was used to satisfy working capital needs , including the continued clinical development of mn-221 . pursuant to the loan agreement , we issued to oxford a warrant to purchase up to 198,020 shares of our common stock , par value $ 0.001 per share , at an exercise price of $ 6.06 per share . based on a black-scholes valuation model , the relative fair value of the warrant was approximately $ 859,000. we accounted for the warrant as a component of stockholders ' equity as the agreement required settlement in shares and under no provision of the agreement were we required to settle the warrant in cash . we accounted for the interest on the debt under the effective interest method wherein we treated the debt issuance costs paid directly to the lender and the relative fair value of the warrants issued to the lender as a discount on the debt ( or a contra liability ) and we treated the debt issuance costs paid to third parties as an asset . the amortization of the debt discount was recorded as interest expense and the amortization of the debt issuance costs paid to third parties was recorded as other expense in our consolidated statement of operations . on april 1 , 2011 , we entered into an agreement with oxford under which we made an early repayment of the loan in-full and wherein oxford waived the prepayment penalty of approximately $ 437,000. reduction-in-force in january 2011 , we had a reduction-in-force , or rif , to reduce costs . we believe that we remain adequately staffed given our research and development focus and utilization of external resources . underwritten firm commitment public offering on march 23 , 2011 , we consummated a firm-commitment underwritten public offering of 2,750,000 units at a price to the public of $ 3.00 per unit for gross proceeds of approximately $ 8.25 million . ``` Suspicious Activity Report : we evaluated the joint 64 venture company under the authoritative guidance and concluded that it is a variable interest entity for which we are not the primary beneficiary as we will not have a majority of the board seats and we will not have any power to direct or significantly influence the actions of the entity . we will therefore not consolidate the joint venture company into our financial results but will account for the activities of the joint venture company under the equity method whereby we will absorb any loss or income generated by the entity according to our percentage ownership . at present , we are focusing our resources on the following prioritized product development programs : mn-221 for the treatment of acute exacerbations of asthma and copd exacerbations , for which we initiated a phase 2 clinical trial ( mn-221-cl-007 ) in the first quarter of 2009 to evaluate the safety and efficacy of mn-221 in patients with acute exacerbations of asthma treated in the emergency room . this trial completed enrollment in march 2012. depending on the results of our phase 2 clinical trial ( mn-221-cl-007 ) and our ability to raise additional capital and or to enter into a collaboration with a leading pharmaceutical or biotech company , we intend to define a phase 3 trial and other development plans for mn-221 for the treatment of acute exacerbations of asthma and conduct one or more phase 3 trials . copd development , which included a phase 1b clinical trial in patients with stable , moderate to severe copd , was completed in 2010. in the first quarter of 2012 we initiated an additional phase 1b/2a copd clinical trial that has commenced enrollment and has an anticipated trial completion around the end of the second quarter of 2012. mn-166 , an ibudilast-based product development , for which we continue to pursue discussions with potential partners or other strategic collaboration ( s ) . mn-166 has completed a phase 2 clinical trial in ms in eastern europe in 2008 wherein positive safety and neuroprotective efficacy indicators were obtained , thus , directing next stage development towards a phase 2b progressive ms indication . limited animal safety and product manufacturing and stability work has been completed or is ongoing . in the drug addiction area , a phase 1b/2a opioid withdrawal clinical trial funded by the national institute on drug abuse , or nida , was completed at the end of 2010. a phase 1b nida-funded clinical trial in methamphetamine-dependent volunteers with expert investigators at ucla initiated in the fourth quarter of 2010 and is currently enrolling patients . in addition , a headache and pain specialist in australia initiated an investigator sponsored phase 2 clinical trial of ibudilast as a potential new pharmacotherapy for medication overuse headache that is expected to complete enrollment at the end of 2012. we intend to enter into additional strategic alliances with leading pharmaceutical or biotech companies to support further clinical development of mn-166 . upon completion of proof-of-concept phase 2 clinical trials , we intend to enter into strategic alliances with leading pharmaceutical or biotech companies to support further clinical development , and to keep certain commercialization rights in select markets . depending on the outcome of the phase 2 trial of mn-221 for the treatment of acute exacerbations of asthma , we may seek to raise addition capital and or enter into a collaboration and conduct a phase 3 development program . we may also pursue potential partners and potential acquirers of license rights to our programs in markets outside the u.s. in addition , we continue to limit activities for the balance of our existing product development programs in order to focus on our prioritized product development programs . for each of these remaining product development programs , we plan to conduct development activities only to the extent deemed necessary to maintain our license rights or maximize its value while pursuing a variety of initiatives to monetize such programs . our eight non-prioritized product development programs consist of the following : mn-001 for the treatment of bronchial asthma , for which we initiated a phase 3 clinical program in the fourth quarter of 2006 that we subsequently terminated in the second quarter of 2007 , and for which we developed prototypes of once-per-day oral dosing formulations ; 65 mn-001 for the treatment of interstitial cystitis , for which we completed a phase 2 clinical trial in the first quarter of 2007 ; mn-029 for the treatment of solid tumors , for which we completed one phase 1 clinical trial in the second quarter of 2006 and one phase 1 clinical trial in the fourth quarter of 2007 ; mn-305 for the treatment of generalized anxiety disorder/insomnia , for which we completed a phase 2 clinical trial for the treatment of generalized anxiety disorder in the second quarter of 2006 and a phase 2 clinical trial for the treatment of insomnia in the fourth quarter of 2007 ; mn-221 for the treatment of preterm labor , for which we completed a phase 1 clinical trial to investigate the pharmacokinetic profile of mn-221 in healthy pregnant women not in labor in the second quarter of 2007 ; mn-246 for the treatment of urinary incontinence , for which we completed a phase 1 clinical trial in the fourth quarter of 2006 and a phase 1 food effects study in the first quarter of 2007 ; mn-447 for the treatment of thrombotic disorders , which remains in preclinical development ; and mn-462 for the treatment of thrombotic disorders , which remains in preclinical development . story_separator_special_tag goodwill and purchased intangibles goodwill is recorded when the consideration paid for an acquisition exceeds the fair value of the identified net tangible and intangible assets of acquired businesses . the allocation of purchase price for acquisitions require extensive use of accounting estimates and judgments to allocate the purchase price to the identifiable tangible and intangible assets acquired and liabilities assumed based on their respective fair values . additionally , we must determine whether an acquired entity is considered to be a business or a set of net assets as a portion of the purchase price can only be allocated to goodwill in a business combination . goodwill and intangible assets deemed to have indefinite lives are not amortized , but are subject to annual impairment tests . the amounts and useful lives assigned to intangible assets that have finite useful lives require the use of estimates and the exercise of judgment . these judgments can significantly affect our net operating results . as of december 31 , 2011 and 2010 , we had goodwill and ipr & d recorded of $ 9.6 million and $ 4.8 million , respectively . our annual test date for goodwill and purchased intangibles impairment is december 31 or more frequently if we believe indicators of impairment are present . we periodically re-evaluate the original assumptions and rationale utilized in the establishment of the carrying value and estimated lives of our long-lived assets . the criteria used for these evaluations include management 's estimate of the asset 's continuing ability to generate income from operations and positive cash flows in future periods as well as the strategic significance of any intangible assets in our business objectives . if assets are considered to be impaired , the impairment recognized is the amount by which the carrying value of the assets exceeds the fair value of the assets . fair value measurements we are required to measure certain assets and liabilities at fair value , either upon initial measurement or for subsequent accounting or reporting . we use fair value extensively in the initial measurement of net assets 72 acquired in a business combination and when accounting for and reporting on investment securities and certain financial instruments or assets . we estimate fair value using an exit price approach , which requires , among other things , that we determine the price that would be received to sell an asset or paid to transfer a liability in an orderly market of market participants , considering the highest and best use of assets and , for liabilities , assuming the risk of non-performance will be the same before and after the transfer . many , but not all , of our financial instruments are carried at fair value . in addition , as required under accounting rules for business combinations , the assets acquired and liabilities assumed in the avigen transaction on december 18 , 2009 have been recorded at their estimated fair values as of the acquisition date . for information on fair value for our financial instruments , see notes to consolidated financial statements — note 3. fair value measurements—other than intangibles and goodwill . recently issued accounting standards in september 2011 , the financial accounting standards board , or fasb , issued updated guidance to simplify how entities test for goodwill impairment . the updated guidance permits an assessment of qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit in which goodwill resides is less than its carrying value . for reporting units in which this assessment concludes it is more likely than not that the fair value is more than its carrying value , the updated guidance eliminates the requirement to perform further goodwill impairment testing . this new guidance is effective for fiscal years beginning after december 15 , 2011 and becomes effective for us in the first quarter of fiscal year 2012. we do not expect the adoption to have a material impact on our financial position or results of operations . in june 2011 , the fasb issued a guidance related to the presentation of comprehensive income . the guidance requires an entity to present items of net income and other comprehensive income , or oci , and total comprehensive income either in a single continuous statement of comprehensive income or two separate but continuous statements . we will no longer be allowed to present oci in the statement of stockholders ' equity . earnings per share would continue to be based on net income . although existing guidance related to items that must be presented in oci has not changed , companies will be required to display reclassification adjustments for each component of oci in both net income and oci . also , companies will need to present the components of other comprehensive income in their interim and annual financial statements . this guidance is required to be implemented retrospectively during interim and annual periods beginning after december 15 , 2011 and becomes effective for us in the first quarter of fiscal year 2012. the adoption of this update is not expected to have a material impact on our consolidated financial statements . in may 2011 , the fasb issued updated guidance related to fair value measurements and disclosures that clarified and amended the wording used to describe many of the requirements in gaap for measuring fair value and for disclosing information about fair value measurements . the fasb also clarified the intent of existing fair value measurement requirements . the new and revised disclosures are required to be implemented prospectively during interim and annual periods beginning after december 15 , 2011 and become effective for us in the first quarter of fiscal year 2012. early adoption is not permitted . the adoption of this update is not expected to have a material impact on our consolidated financial statements . results of operations comparison of the years ended december

please refer to the section entitled “ risk factors ” in item 1a in this annual report on form 10-k. operations review during fiscal 2013 , we secured orders and continued to expand our footprint with our customers in the mobile operator market using our current technology and service capabilities . the market for mobile backhaul continues to be our primary addressable market segment and the demand for increasing the backhaul capacity in our customers ' networks continues to grow in line with our expectations . in fiscal 2013 we saw sustained demand in north america as we supported the long-term evolution ( “ lte ” ) deployments of our mobile operator customers . internationally , our business continued to rely on a combination of customers increasing their capacity to handle subscriber growth , the ongoing build-out of some large 3g deployments , and the emergence of early stage lte deployments . our objective continues to be to position aviat networks to support our customers for lte readiness and to ensure that our technology roadmap is well aligned with evolving market requirements . we continue to find that our strength in turnkey and after-sale support services is a differentiating factor in serving new business and enabling us to expand our business with existing customers across all markets . during fiscal 2013 , our growth in revenue over fiscal 2012 was predominantly attributable to an increase in service orders in north america and 27 africa . however , as disclosed above and in the “ risk factors ” section in item 1a of this annual report on form 10-k , a number of factors could prevent us from achieving our objectives , including ongoing pricing pressures attributable to competition and macroeconomic conditions in the geographic markets that we service . during fiscal 2013 , we incurred restructuring expenses that were taken to reduce our operational costs . we intend to complete a majority of the remaining restructuring activities under the fiscal 2013-2014 plan during fiscal 2014. see “ restructuring charges ” below . revenue we manage our sales activities primarily on a geographic basis in north america and three international geographic regions : ( 1 ) africa and middle east , ( 2 ) europe and russia and ( 3 ) latin america and asia pacific . revenue by region for fiscal 2013 , 2012 and 2011 and the related changes are shown in the table below : replace_table_token_6_th our revenue in north america increased $ 15.6 million , or 9.5 % , in fiscal 2013 compared with fiscal 2012 . in fiscal 2013 , we saw improved sales to north american mobile operators which were attributable to their ongoing buildout of lte networks in the region . at the same time , north america sales to non-mobile customers , such as power utilities and state and local government private networks , were flat in fiscal 2013 compared with fiscal 2012. our revenue in north america increased $ 4.5 million , or 2.8 % , in fiscal 2012 compared with fiscal 2011 . we have seen substantial changes in product mix of our sales in this region from year to year . the bulk of our product revenue in north america came from our eclipse product platform , whereas in the first half of fiscal 2011 , our legacy products made up a significant portion of the region 's sales . the revenue growth and product mix changes reflect continued success in transitioning our customer base to the new product platform as well as an increase in our services business from major customers in fiscal 2012. our revenue in africa and middle east increased $ 34.5 million , or 23.4 % , in fiscal 2013 compared with fiscal 2012. the majority of the increase came in the first half of fiscal 2013 and was attributable to demand from mobile operator customers in africa investing in network transmission capacity in order to accommodate growth in network data traffic and to increase their service competitiveness . revenue from mobile operators in europe and russia declined $ 5.6 million , or 10.4 % , in fiscal 2013 compared with fiscal 2012. we believe the decrease was related to economic difficulties experienced generally throughout europe . revenue in latin america and asia pacific declined $ 17.2 million , or 22.1 % , in fiscal 2013 compared with fiscal 2012. the decrease was primarily due to a decline in customer purchases in asia as some of our larger customers , who are beginning to roll out lte service , continue to deploy large orders that we delivered in the past year . our international revenue declined $ 12.6 million , or 4.3 % , in fiscal 2012 compared with fiscal 2011. our business in asia and latin america showed improvement in fiscal 2012 from increased orders from network operators . however , our sales in europe and russia were down from fiscal 2011 primarily due to the reduction of business with a major customer in russia who took substantial deliveries in fiscal 2011 , partially offset by increased orders and sales to wireless network operators in other european countries . in fiscal 2012 , we experienced substantially increased sales with our long-term customers in africa , offsetting the reduced volume in the middle east . africa continued to be our strongest international sector , where we continued to compete successfully for wireless infrastructure business of large network operators , particularly in west africa . our revenue from product sales increased $ 1.2 million , or 0.4 % , in fiscal 2013 compared with fiscal 2012. the increase came primarily from strong sales in africa , offset in part by reductions in asia pacific , europe and a small year-to-year decrease in north america . story_separator_special_tag ) minimum consolidated ebitda measured for each fiscal quarter . as of june 28 , 2013 , we were in compliance with these financial covenants . restructuring payments we have a liability for restructuring activities totaling $ 2.7 million as of june 28 , 2013 , $ 2.3 million of which is classified as current liability and expected to be paid out in cash over the next year . we expect to fund these future payments with available cash and cash flow provided by operations . contractual obligations as of june 28 , 2013 , cash payments due under our contractual obligations are estimated as follows : 33 replace_table_token_14_th _ ( 1 ) the interest rate is 5 % per annum on the two-year term loan expiring on january 31 , 2014 . ( 2 ) from time to time in the normal course of business we may enter into purchasing agreements with our suppliers that require us to accept delivery of , and remit full payment for , finished products that we have ordered , finished products that we requested be held as safety stock , and work in process started on our behalf in the event we cancel or terminate the purchasing agreement . it is not our intent , nor is it reasonably likely , that we would cancel a purchase order that we have executed . because these agreements do not specify fixed or minimum quantities , do not specify minimum or variable price provisions , and do not specify the approximate timing of the transaction , we have no basis to estimate any future liability under these agreements and have therefore excluded them from the table above . ( 3 ) liabilities for uncertain tax positions of $ 15.9 million were included in long-term liabilities in the consolidated balance sheet . at this time , we are unable to make a reasonably reliable estimate of the timing of payments related to this amount due to uncertainties in the timing of tax audit outcomes . ( 4 ) these items are not recorded on our balance sheet . commercial commitments we have entered into commercial commitments in the normal course of business including surety bonds , standby letters of credit and other arrangements with financial institutions and insurers primarily relating to the guarantee of future performance on certain tenders and contracts to provide products and services to customers . as of june 28 , 2013 , we had commercial commitments on outstanding surety bonds and standby letters of credit as follows : replace_table_token_15_th as we have not historically had to pay out on any of our performance guarantees , the outstanding commercial commitments have not been recorded on our consolidated balance sheet . off-balance sheet arrangements 34 in accordance with the definition under sec rules ( item 303 ( a ) ( 4 ) ( ii ) of regulation s-k ) , any of the following qualify as off-balance sheet arrangements : any obligation under certain guarantee contracts ; a retained or contingent interest in assets transferred to an unconsolidated entity or similar entity or similar arrangement that serves as credit , liquidity or market risk support to that entity for such assets ; any obligation , including a contingent obligation , under certain derivative instruments ; and any obligation , including a contingent obligation , under a material variable interest held by the registrant in an unconsolidated entity that provides financing , liquidity , market risk or credit risk support to the registrant , or engages in leasing , hedging or research and development services with the registrant . currently we are not participating in transactions that generate relationships with unconsolidated entities or financial partnerships , including variable interest entities , and we do not have any material retained or contingent interest in assets as defined above . as of june 28 , 2013 , we did not have material financial guarantees or other contractual commitments that are reasonably likely to adversely affect liquidity . in addition , we are not currently a party to any related party transactions that materially affect our results of operations , cash flows or financial condition . due to the downsizing of certain of our operations pursuant to divestitures , restructuring plans or otherwise , some properties leased by us have been sublet to third parties . in the event any of these third parties vacate any of these premises , we would be legally obligated under master lease arrangements . we believe that the financial risk of default by such sublessors is not likely to be individually or in the aggregate material to our financial position , results of operations or cash flows . financial risk management in the normal course of doing business , we are exposed to the risks associated with foreign currency exchange rates and changes in interest rates . we employ established policies and procedures governing the use of financial instruments to manage our exposure to such risks . exchange rate risk we conduct business globally in numerous currencies and are therefore exposed to foreign currency risks . we use derivative instruments to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates . we do not hold nor issue derivatives for trading purposes or make speculative investments in foreign currencies . we use foreign exchange forward contracts to hedge forecasted foreign currency transactions relating to forecasted sales and purchase transactions . these derivatives are designated as cash flow hedges and are carried at fair value . the effective portion of the gain or loss is initially reported as a component of accumulated other comprehensive income ( loss ) , and upon occurrence of the forecasted transaction , is subsequently reclassified into the income or expense line item to which the hedged transaction relates . we also enter into foreign exchange forward contracts to mitigate the change in fair value of specific non-functional currency assets and liabilities on

sources of cash as of june 28 , 2013 , our total cash and cash equivalents were $ 90.0 million . approximately $ 30.8 million , or 34.2 % , was held by entities domiciled in the united states . the remaining balance of $ 59.2 million , or 65.8 % , was held by entities outside the united states . of the amount of cash and cash equivalents held by our foreign subsidiaries at june 28 , 2013 , $ 48.2 million was held in jurisdictions where our undistributed earnings are indefinitely reinvested , and would be subject to u.s. taxes if repatriated . as of june 28 , 2013 , our principal sources of liquidity consisted of the $ 90.0 million in cash and cash equivalents , $ 26.0 million of available credit under our $ 40.0 million credit facility with silicon valley bank ( “ svb ” ) , and future collections of receivables from customers . we regularly require letters of credit from some customers and , from time to time , these letters of credit are discounted without recourse shortly after shipment occurs in order to meet immediate liquidity requirements and to reduce our credit and sovereign risk . historically our primary sources of liquidity have been cash flows from operations , credit facilities and cash proceeds from sale of our equity securities .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```sources of cash as of june 28 , 2013 , our total cash and cash equivalents were $ 90.0 million . approximately $ 30.8 million , or 34.2 % , was held by entities domiciled in the united states . the remaining balance of $ 59.2 million , or 65.8 % , was held by entities outside the united states . of the amount of cash and cash equivalents held by our foreign subsidiaries at june 28 , 2013 , $ 48.2 million was held in jurisdictions where our undistributed earnings are indefinitely reinvested , and would be subject to u.s. taxes if repatriated . as of june 28 , 2013 , our principal sources of liquidity consisted of the $ 90.0 million in cash and cash equivalents , $ 26.0 million of available credit under our $ 40.0 million credit facility with silicon valley bank ( “ svb ” ) , and future collections of receivables from customers . we regularly require letters of credit from some customers and , from time to time , these letters of credit are discounted without recourse shortly after shipment occurs in order to meet immediate liquidity requirements and to reduce our credit and sovereign risk . historically our primary sources of liquidity have been cash flows from operations , credit facilities and cash proceeds from sale of our equity securities . ``` Suspicious Activity Report : please refer to the section entitled “ risk factors ” in item 1a in this annual report on form 10-k. operations review during fiscal 2013 , we secured orders and continued to expand our footprint with our customers in the mobile operator market using our current technology and service capabilities . the market for mobile backhaul continues to be our primary addressable market segment and the demand for increasing the backhaul capacity in our customers ' networks continues to grow in line with our expectations . in fiscal 2013 we saw sustained demand in north america as we supported the long-term evolution ( “ lte ” ) deployments of our mobile operator customers . internationally , our business continued to rely on a combination of customers increasing their capacity to handle subscriber growth , the ongoing build-out of some large 3g deployments , and the emergence of early stage lte deployments . our objective continues to be to position aviat networks to support our customers for lte readiness and to ensure that our technology roadmap is well aligned with evolving market requirements . we continue to find that our strength in turnkey and after-sale support services is a differentiating factor in serving new business and enabling us to expand our business with existing customers across all markets . during fiscal 2013 , our growth in revenue over fiscal 2012 was predominantly attributable to an increase in service orders in north america and 27 africa . however , as disclosed above and in the “ risk factors ” section in item 1a of this annual report on form 10-k , a number of factors could prevent us from achieving our objectives , including ongoing pricing pressures attributable to competition and macroeconomic conditions in the geographic markets that we service . during fiscal 2013 , we incurred restructuring expenses that were taken to reduce our operational costs . we intend to complete a majority of the remaining restructuring activities under the fiscal 2013-2014 plan during fiscal 2014. see “ restructuring charges ” below . revenue we manage our sales activities primarily on a geographic basis in north america and three international geographic regions : ( 1 ) africa and middle east , ( 2 ) europe and russia and ( 3 ) latin america and asia pacific . revenue by region for fiscal 2013 , 2012 and 2011 and the related changes are shown in the table below : replace_table_token_6_th our revenue in north america increased $ 15.6 million , or 9.5 % , in fiscal 2013 compared with fiscal 2012 . in fiscal 2013 , we saw improved sales to north american mobile operators which were attributable to their ongoing buildout of lte networks in the region . at the same time , north america sales to non-mobile customers , such as power utilities and state and local government private networks , were flat in fiscal 2013 compared with fiscal 2012. our revenue in north america increased $ 4.5 million , or 2.8 % , in fiscal 2012 compared with fiscal 2011 . we have seen substantial changes in product mix of our sales in this region from year to year . the bulk of our product revenue in north america came from our eclipse product platform , whereas in the first half of fiscal 2011 , our legacy products made up a significant portion of the region 's sales . the revenue growth and product mix changes reflect continued success in transitioning our customer base to the new product platform as well as an increase in our services business from major customers in fiscal 2012. our revenue in africa and middle east increased $ 34.5 million , or 23.4 % , in fiscal 2013 compared with fiscal 2012. the majority of the increase came in the first half of fiscal 2013 and was attributable to demand from mobile operator customers in africa investing in network transmission capacity in order to accommodate growth in network data traffic and to increase their service competitiveness . revenue from mobile operators in europe and russia declined $ 5.6 million , or 10.4 % , in fiscal 2013 compared with fiscal 2012. we believe the decrease was related to economic difficulties experienced generally throughout europe . revenue in latin america and asia pacific declined $ 17.2 million , or 22.1 % , in fiscal 2013 compared with fiscal 2012. the decrease was primarily due to a decline in customer purchases in asia as some of our larger customers , who are beginning to roll out lte service , continue to deploy large orders that we delivered in the past year . our international revenue declined $ 12.6 million , or 4.3 % , in fiscal 2012 compared with fiscal 2011. our business in asia and latin america showed improvement in fiscal 2012 from increased orders from network operators . however , our sales in europe and russia were down from fiscal 2011 primarily due to the reduction of business with a major customer in russia who took substantial deliveries in fiscal 2011 , partially offset by increased orders and sales to wireless network operators in other european countries . in fiscal 2012 , we experienced substantially increased sales with our long-term customers in africa , offsetting the reduced volume in the middle east . africa continued to be our strongest international sector , where we continued to compete successfully for wireless infrastructure business of large network operators , particularly in west africa . our revenue from product sales increased $ 1.2 million , or 0.4 % , in fiscal 2013 compared with fiscal 2012. the increase came primarily from strong sales in africa , offset in part by reductions in asia pacific , europe and a small year-to-year decrease in north america . story_separator_special_tag ) minimum consolidated ebitda measured for each fiscal quarter . as of june 28 , 2013 , we were in compliance with these financial covenants . restructuring payments we have a liability for restructuring activities totaling $ 2.7 million as of june 28 , 2013 , $ 2.3 million of which is classified as current liability and expected to be paid out in cash over the next year . we expect to fund these future payments with available cash and cash flow provided by operations . contractual obligations as of june 28 , 2013 , cash payments due under our contractual obligations are estimated as follows : 33 replace_table_token_14_th _ ( 1 ) the interest rate is 5 % per annum on the two-year term loan expiring on january 31 , 2014 . ( 2 ) from time to time in the normal course of business we may enter into purchasing agreements with our suppliers that require us to accept delivery of , and remit full payment for , finished products that we have ordered , finished products that we requested be held as safety stock , and work in process started on our behalf in the event we cancel or terminate the purchasing agreement . it is not our intent , nor is it reasonably likely , that we would cancel a purchase order that we have executed . because these agreements do not specify fixed or minimum quantities , do not specify minimum or variable price provisions , and do not specify the approximate timing of the transaction , we have no basis to estimate any future liability under these agreements and have therefore excluded them from the table above . ( 3 ) liabilities for uncertain tax positions of $ 15.9 million were included in long-term liabilities in the consolidated balance sheet . at this time , we are unable to make a reasonably reliable estimate of the timing of payments related to this amount due to uncertainties in the timing of tax audit outcomes . ( 4 ) these items are not recorded on our balance sheet . commercial commitments we have entered into commercial commitments in the normal course of business including surety bonds , standby letters of credit and other arrangements with financial institutions and insurers primarily relating to the guarantee of future performance on certain tenders and contracts to provide products and services to customers . as of june 28 , 2013 , we had commercial commitments on outstanding surety bonds and standby letters of credit as follows : replace_table_token_15_th as we have not historically had to pay out on any of our performance guarantees , the outstanding commercial commitments have not been recorded on our consolidated balance sheet . off-balance sheet arrangements 34 in accordance with the definition under sec rules ( item 303 ( a ) ( 4 ) ( ii ) of regulation s-k ) , any of the following qualify as off-balance sheet arrangements : any obligation under certain guarantee contracts ; a retained or contingent interest in assets transferred to an unconsolidated entity or similar entity or similar arrangement that serves as credit , liquidity or market risk support to that entity for such assets ; any obligation , including a contingent obligation , under certain derivative instruments ; and any obligation , including a contingent obligation , under a material variable interest held by the registrant in an unconsolidated entity that provides financing , liquidity , market risk or credit risk support to the registrant , or engages in leasing , hedging or research and development services with the registrant . currently we are not participating in transactions that generate relationships with unconsolidated entities or financial partnerships , including variable interest entities , and we do not have any material retained or contingent interest in assets as defined above . as of june 28 , 2013 , we did not have material financial guarantees or other contractual commitments that are reasonably likely to adversely affect liquidity . in addition , we are not currently a party to any related party transactions that materially affect our results of operations , cash flows or financial condition . due to the downsizing of certain of our operations pursuant to divestitures , restructuring plans or otherwise , some properties leased by us have been sublet to third parties . in the event any of these third parties vacate any of these premises , we would be legally obligated under master lease arrangements . we believe that the financial risk of default by such sublessors is not likely to be individually or in the aggregate material to our financial position , results of operations or cash flows . financial risk management in the normal course of doing business , we are exposed to the risks associated with foreign currency exchange rates and changes in interest rates . we employ established policies and procedures governing the use of financial instruments to manage our exposure to such risks . exchange rate risk we conduct business globally in numerous currencies and are therefore exposed to foreign currency risks . we use derivative instruments to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates . we do not hold nor issue derivatives for trading purposes or make speculative investments in foreign currencies . we use foreign exchange forward contracts to hedge forecasted foreign currency transactions relating to forecasted sales and purchase transactions . these derivatives are designated as cash flow hedges and are carried at fair value . the effective portion of the gain or loss is initially reported as a component of accumulated other comprehensive income ( loss ) , and upon occurrence of the forecasted transaction , is subsequently reclassified into the income or expense line item to which the hedged transaction relates . we also enter into foreign exchange forward contracts to mitigate the change in fair value of specific non-functional currency assets and liabilities on

customers we serve a broad suite of customers , with our largest customer representing approximately 7 % of our sales . many are companies whose names are widely recognized . they include most producers of residential furniture and bedding , auto and office seating manufacturers , and a variety of other companies . major factors that impact our business many factors impact our business , but those that generally have the greatest impact are market demand , raw material cost trends , and competition . market demand market demand ( including product mix ) is impacted by several economic factors , with consumer confidence being most significant . other important factors include disposable income levels , employment levels , housing turnover , and interest rates . all of these factors influence consumer spending on durable goods , and therefore affect demand for our components and products . some of these factors also influence business spending on facilities and equipment , which impacts approximately one-quarter of our sales . we continue to retain more production capacity than we currently utilize , and with our meaningful operating leverage , earnings should further benefit as market demand continues to improve . for each additional $ 100 million of sales from incremental unit volume produced utilizing this spare capacity , we expect to generate approximately $ 25 million to $ 35 million of additional pre-tax earnings . raw material costs in many of our businesses , we enjoy a cost advantage from being vertically integrated into steel wire and rod . this is a benefit that our competitors do not have . we also experience favorable purchasing leverage from buying large quantities of raw materials . still , our costs can vary significantly as market prices for raw materials ( many of which are commodities ) fluctuate . we typically have short-term commitments from our suppliers ; accordingly , our raw material costs generally move with the market . our ability to recover higher costs ( through selling price increases ) is crucial . when we experience significant increases in raw material costs , we typically implement price increases to recover the higher costs . conversely , when costs decrease significantly , we generally pass those lower costs through to our customers . the timing of our price increases or decreases is important ; we typically experience a lag in recovering higher costs , so we also expect to realize a lag as costs decline . 26 part ii steel is our principal raw material . at various times in past years we have experienced significant cost fluctuations in this commodity . in most cases , the major changes ( both increases and decreases ) were passed through to customers with selling price adjustments . as we begin 2015 , market prices for steel scrap in the u.s. are decreasing . this is leading to downward pricing pressure on steel rod and other types of steel materials . we expect , in certain cases , to pass the lower costs through to our customers . however , our margins could experience some short-term pressure if steel deflation causes us to reduce our selling prices before we consume our higher cost inventories . as a producer of steel rod , we are also impacted by changes in metal margins ( the difference between the cost of steel scrap and the market price for steel rod ) . metal margins within the steel industry have been volatile during certain periods in recent years . in late 2013 and early 2014 , metal margins decreased significantly as market conditions did not allow full recovery of higher scrap costs . an antidumping and countervailing duty case filed in january 2014 by major u.s. steel wire rod producers was concluded in december 2014 , resulting in the implementation of duties on imports of chinese steel wire rod . the antidumping duties range from 106 % to 110 % and the countervailing duties range from 178 % to 193 % . both remain in effect through december 2019. our other raw materials include woven and non-woven fabrics , foam scrap , and chemicals . we have experienced changes in the cost of these materials in recent years , and in most years , have been able to pass them through to our customers . when we raise our prices to recover higher raw material costs , this sometimes causes customers to modify their product designs and replace higher cost components with lower cost components . we must continue to find ways to assist our customers in improving the functionality and reducing the cost of their products , while providing higher margin and profit contribution for our operations . competition many of our markets are highly competitive , with the number of competitors varying by product line . in general , our competitors tend to be smaller , private companies . many of our competitors , both domestic and foreign , compete primarily on the basis of price . our success has stemmed from the ability to remain price competitive , while delivering better product quality , innovation , and customer service . we continue to face pressure from foreign competitors as some of our customers source a portion of their components and finished products offshore . in addition to lower labor rates , foreign competitors benefit ( at times ) from lower raw material costs . they may also benefit from currency factors and more lenient regulatory climates . we typically remain price competitive , even versus many foreign manufacturers , as a result of our highly efficient operations , low labor content , vertical integration in steel and wire , logistics and distribution efficiencies , and large scale purchasing of raw materials and commodities . however , we have also reacted to foreign competition in certain cases by selectively adjusting prices , and by developing new proprietary products that help our customers reduce total costs . story_separator_special_tag the decrease in trade sales of steel rod during 2013 was offset by an increase in intra-segment rod sales , and the rod mill continued to operate at full capacity . 34 part ii earnings from continuing operations decreased as a result of non-cash impairment and other charges related to the goodwill and other intangible assets of our cvp business , and the non-recurrence of a significant tax benefit from 2012. operationally , the earnings benefit from modest unit volume growth and acquisitions was largely offset by an increase in steel costs late in the year that resulted in higher lifo expense . the other items detailed in the table above also contributed to the change in earnings . 2013 earnings from continuing operations also benefited $ 8 million ( $ 5 million after tax ) from gains on asset sales . these gains are primarily comprised of a $ 3 million gain related to a hurricane insurance claim , and $ 3 million for several different properties associated with the closing of various operations in prior years . lifo impact all of our segments use the first-in , first-out ( fifo ) method for valuing inventory . in our consolidated financials , an adjustment is made at the corporate level ( i.e . , outside the segments ) to convert about 50 % of our inventories to the last-in , first-out ( lifo ) method . these are primarily our domestic , steel-related inventories . in 2012 , lower commodity costs led to a lifo benefit of $ 13 million . steel inflation in late 2013 resulted in a significant change in our full-year lifo estimates ( interim expectations for a full-year lifo benefit of $ 12 million changed instead to a full year expense of $ 4 million as steel costs increased late in the year ) and a concentration of lifo expense in the fourth quarter . for further discussion of inventories , see note a to the consolidated financial statements on page 74. interest and income taxes net interest expense in 2013 was flat with 2012. the 2013 worldwide effective income tax rate on our continuing operations was 22 % , compared to 19 % for 2012. in both years the tax rate reflects necessary tax reserve reductions and other tax benefits that lowered the overall rate . the 2013 tax rate includes $ 17 million of favorable adjustments primarily related to the impact of mexico tax law changes , the settlement of certain foreign and state tax audits , and a non-taxable bargain purchase gain . the impact of these items on the tax rate was magnified by our fourth quarter cvp impairment . in 2012 , the tax rate benefited from the release of a $ 38 million valuation allowance on certain canadian deferred tax assets , partially offset by the accrual of $ 11 million of china withholding taxes . 35 part ii segment results ( continuing operations ) in the following section we discuss 2013 sales and ebit from continuing operations for each of our segments . we provide additional detail about segment results and a reconciliation of segment ebit to consolidated ebit in note f to the consolidated financial statements on page 84. reported amounts for 2012 have been retrospectively adjusted to reflect only continuing operations . for further information about discontinued operations , see note b to the consolidated financial statements on page 77. replace_table_token_9_th ( 1 ) this is the change in sales not attributable to acquisitions or divestitures . these are sales that come from the same plants and facilities that we owned one year earlier . ( 2 ) segment margins are calculated on total sales . overall company margin is calculated on external sales . residential furnishings residential furnishings sales increased 3 % in 2013 from unit volume growth in certain product categories and raw material-related price increases in carpet underlay . volume grew primarily in european spring , seating components , sofa sleepers , and carpet underlay . these gains were partially offset by lower adjustable bed volume . within our u.s. spring business , we experienced unit volume growth in boxsprings and comfortcore ® ( which is our pocketed coil innerspring ) , however total domestic innerspring units decreased modestly . furniture hardware unit volume also decreased for the full year . ebit and ebit margins increased in 2013 , primarily due to higher sales , cost improvements , and favorable product mix in u.s. spring . 36 part ii commercial fixturing & components sales in commercial fixturing & components decreased 2 % in 2013 due to lower demand in the office seating market which negatively impacted our work furniture business . ebit and ebit margins decreased in 2013 , primarily from lower sales , unfavorable product mix , and weak performance by our chinese joint venture operation . industrial materials sales in the segment decreased 3 % in 2013 , with revenue from acquisitions more than offset by lower trade sales from our rod mill and steel-related price deflation . the decrease in trade sales of steel rod during the year was more than offset by an increase in intra-segment rod sales , and the rod mill continued to operate at full capacity . a change in the mix of rod sales from trade to intra-segment is generally positive to earnings since that change tends to also shift the production mix to higher-value high carbon rods . ebit and ebit margins improved versus 2012 , primarily due to the absence of acquisition-related costs at western pneumatic tube and earnings from acquisitions . these gains were partially offset by lower metal margins in steel rod in the second half of 2013. we expanded our aerospace products business unit in 2013 with the acquisition of two companies . the first was a u.k.-based business acquired in may that extended our capability in aerospace tube fabrication . we recorded $ 6 million of goodwill related to

liquidity and capitalization our operations provide most of the cash we require , and debt may also be used to fund a portion of our needs . cash from operations was once again strong in 2014. for over 25 years , our operations have provided more than enough cash to fund both capital expenditures and dividend payments . we expect this to again be the case in 2015. capital expenditures increased in 2014 , driven in part by investments to support strong growth in automotive and u.s. spring . we also completed five acquisitions , the largest of which included the three tempur sealy innerspring facilities , and bought back 5.4 million shares of our stock during the year . we ended 2014 with net debt to net capital at 31.5 % , within our long-standing targeted range of 30-40 % . the calculation of net debt as a percent of net capital is presented on page 44. in november 2014 , we issued $ 300 million of 3.8 % notes and repaid $ 180 million of 4.65 % notes that matured . we ended the year with all of our $ 600 million commercial paper program available . cash from operations cash from operations is our primary source of funds . earnings and changes in working capital levels are the two broad factors that generally have the greatest impact on our cash from operations . cash from operations decreased in 2014 from a combination of factors . net earnings declined primarily due to a goodwill impairment charge ( which was a non-cash item ) and increased litigation accruals . this decrease in earnings was partially offset by a net reduction in working capital that resulted from the increased litigation accruals ( a significant portion of which was not paid in 2014 ) , partially offset by higher accounts receivable associated with increased sales volume late in the year . 38 part ii we continue to closely monitor our working capital levels , and ended 2014 with adjusted working capital at 7.9 % of annualized sales from continuing operations 1 . the table below shows this non-gaap calculation .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 capitalization our operations provide most of the cash we require , and debt may also be used to fund a portion of our needs . cash from operations was once again strong in 2014. for over 25 years , our operations have provided more than enough cash to fund both capital expenditures and dividend payments . we expect this to again be the case in 2015. capital expenditures increased in 2014 , driven in part by investments to support strong growth in automotive and u.s. spring . we also completed five acquisitions , the largest of which included the three tempur sealy innerspring facilities , and bought back 5.4 million shares of our stock during the year . we ended 2014 with net debt to net capital at 31.5 % , within our long-standing targeted range of 30-40 % . the calculation of net debt as a percent of net capital is presented on page 44. in november 2014 , we issued $ 300 million of 3.8 % notes and repaid $ 180 million of 4.65 % notes that matured . we ended the year with all of our $ 600 million commercial paper program available . cash from operations cash from operations is our primary source of funds . earnings and changes in working capital levels are the two broad factors that generally have the greatest impact on our cash from operations . cash from operations decreased in 2014 from a combination of factors . net earnings declined primarily due to a goodwill impairment charge ( which was a non-cash item ) and increased litigation accruals . this decrease in earnings was partially offset by a net reduction in working capital that resulted from the increased litigation accruals ( a significant portion of which was not paid in 2014 ) , partially offset by higher accounts receivable associated with increased sales volume late in the year . 38 part ii we continue to closely monitor our working capital levels , and ended 2014 with adjusted working capital at 7.9 % of annualized sales from continuing operations 1 . the table below shows this non-gaap calculation . ``` Suspicious Activity Report : customers we serve a broad suite of customers , with our largest customer representing approximately 7 % of our sales . many are companies whose names are widely recognized . they include most producers of residential furniture and bedding , auto and office seating manufacturers , and a variety of other companies . major factors that impact our business many factors impact our business , but those that generally have the greatest impact are market demand , raw material cost trends , and competition . market demand market demand ( including product mix ) is impacted by several economic factors , with consumer confidence being most significant . other important factors include disposable income levels , employment levels , housing turnover , and interest rates . all of these factors influence consumer spending on durable goods , and therefore affect demand for our components and products . some of these factors also influence business spending on facilities and equipment , which impacts approximately one-quarter of our sales . we continue to retain more production capacity than we currently utilize , and with our meaningful operating leverage , earnings should further benefit as market demand continues to improve . for each additional $ 100 million of sales from incremental unit volume produced utilizing this spare capacity , we expect to generate approximately $ 25 million to $ 35 million of additional pre-tax earnings . raw material costs in many of our businesses , we enjoy a cost advantage from being vertically integrated into steel wire and rod . this is a benefit that our competitors do not have . we also experience favorable purchasing leverage from buying large quantities of raw materials . still , our costs can vary significantly as market prices for raw materials ( many of which are commodities ) fluctuate . we typically have short-term commitments from our suppliers ; accordingly , our raw material costs generally move with the market . our ability to recover higher costs ( through selling price increases ) is crucial . when we experience significant increases in raw material costs , we typically implement price increases to recover the higher costs . conversely , when costs decrease significantly , we generally pass those lower costs through to our customers . the timing of our price increases or decreases is important ; we typically experience a lag in recovering higher costs , so we also expect to realize a lag as costs decline . 26 part ii steel is our principal raw material . at various times in past years we have experienced significant cost fluctuations in this commodity . in most cases , the major changes ( both increases and decreases ) were passed through to customers with selling price adjustments . as we begin 2015 , market prices for steel scrap in the u.s. are decreasing . this is leading to downward pricing pressure on steel rod and other types of steel materials . we expect , in certain cases , to pass the lower costs through to our customers . however , our margins could experience some short-term pressure if steel deflation causes us to reduce our selling prices before we consume our higher cost inventories . as a producer of steel rod , we are also impacted by changes in metal margins ( the difference between the cost of steel scrap and the market price for steel rod ) . metal margins within the steel industry have been volatile during certain periods in recent years . in late 2013 and early 2014 , metal margins decreased significantly as market conditions did not allow full recovery of higher scrap costs . an antidumping and countervailing duty case filed in january 2014 by major u.s. steel wire rod producers was concluded in december 2014 , resulting in the implementation of duties on imports of chinese steel wire rod . the antidumping duties range from 106 % to 110 % and the countervailing duties range from 178 % to 193 % . both remain in effect through december 2019. our other raw materials include woven and non-woven fabrics , foam scrap , and chemicals . we have experienced changes in the cost of these materials in recent years , and in most years , have been able to pass them through to our customers . when we raise our prices to recover higher raw material costs , this sometimes causes customers to modify their product designs and replace higher cost components with lower cost components . we must continue to find ways to assist our customers in improving the functionality and reducing the cost of their products , while providing higher margin and profit contribution for our operations . competition many of our markets are highly competitive , with the number of competitors varying by product line . in general , our competitors tend to be smaller , private companies . many of our competitors , both domestic and foreign , compete primarily on the basis of price . our success has stemmed from the ability to remain price competitive , while delivering better product quality , innovation , and customer service . we continue to face pressure from foreign competitors as some of our customers source a portion of their components and finished products offshore . in addition to lower labor rates , foreign competitors benefit ( at times ) from lower raw material costs . they may also benefit from currency factors and more lenient regulatory climates . we typically remain price competitive , even versus many foreign manufacturers , as a result of our highly efficient operations , low labor content , vertical integration in steel and wire , logistics and distribution efficiencies , and large scale purchasing of raw materials and commodities . however , we have also reacted to foreign competition in certain cases by selectively adjusting prices , and by developing new proprietary products that help our customers reduce total costs . story_separator_special_tag the decrease in trade sales of steel rod during 2013 was offset by an increase in intra-segment rod sales , and the rod mill continued to operate at full capacity . 34 part ii earnings from continuing operations decreased as a result of non-cash impairment and other charges related to the goodwill and other intangible assets of our cvp business , and the non-recurrence of a significant tax benefit from 2012. operationally , the earnings benefit from modest unit volume growth and acquisitions was largely offset by an increase in steel costs late in the year that resulted in higher lifo expense . the other items detailed in the table above also contributed to the change in earnings . 2013 earnings from continuing operations also benefited $ 8 million ( $ 5 million after tax ) from gains on asset sales . these gains are primarily comprised of a $ 3 million gain related to a hurricane insurance claim , and $ 3 million for several different properties associated with the closing of various operations in prior years . lifo impact all of our segments use the first-in , first-out ( fifo ) method for valuing inventory . in our consolidated financials , an adjustment is made at the corporate level ( i.e . , outside the segments ) to convert about 50 % of our inventories to the last-in , first-out ( lifo ) method . these are primarily our domestic , steel-related inventories . in 2012 , lower commodity costs led to a lifo benefit of $ 13 million . steel inflation in late 2013 resulted in a significant change in our full-year lifo estimates ( interim expectations for a full-year lifo benefit of $ 12 million changed instead to a full year expense of $ 4 million as steel costs increased late in the year ) and a concentration of lifo expense in the fourth quarter . for further discussion of inventories , see note a to the consolidated financial statements on page 74. interest and income taxes net interest expense in 2013 was flat with 2012. the 2013 worldwide effective income tax rate on our continuing operations was 22 % , compared to 19 % for 2012. in both years the tax rate reflects necessary tax reserve reductions and other tax benefits that lowered the overall rate . the 2013 tax rate includes $ 17 million of favorable adjustments primarily related to the impact of mexico tax law changes , the settlement of certain foreign and state tax audits , and a non-taxable bargain purchase gain . the impact of these items on the tax rate was magnified by our fourth quarter cvp impairment . in 2012 , the tax rate benefited from the release of a $ 38 million valuation allowance on certain canadian deferred tax assets , partially offset by the accrual of $ 11 million of china withholding taxes . 35 part ii segment results ( continuing operations ) in the following section we discuss 2013 sales and ebit from continuing operations for each of our segments . we provide additional detail about segment results and a reconciliation of segment ebit to consolidated ebit in note f to the consolidated financial statements on page 84. reported amounts for 2012 have been retrospectively adjusted to reflect only continuing operations . for further information about discontinued operations , see note b to the consolidated financial statements on page 77. replace_table_token_9_th ( 1 ) this is the change in sales not attributable to acquisitions or divestitures . these are sales that come from the same plants and facilities that we owned one year earlier . ( 2 ) segment margins are calculated on total sales . overall company margin is calculated on external sales . residential furnishings residential furnishings sales increased 3 % in 2013 from unit volume growth in certain product categories and raw material-related price increases in carpet underlay . volume grew primarily in european spring , seating components , sofa sleepers , and carpet underlay . these gains were partially offset by lower adjustable bed volume . within our u.s. spring business , we experienced unit volume growth in boxsprings and comfortcore ® ( which is our pocketed coil innerspring ) , however total domestic innerspring units decreased modestly . furniture hardware unit volume also decreased for the full year . ebit and ebit margins increased in 2013 , primarily due to higher sales , cost improvements , and favorable product mix in u.s. spring . 36 part ii commercial fixturing & components sales in commercial fixturing & components decreased 2 % in 2013 due to lower demand in the office seating market which negatively impacted our work furniture business . ebit and ebit margins decreased in 2013 , primarily from lower sales , unfavorable product mix , and weak performance by our chinese joint venture operation . industrial materials sales in the segment decreased 3 % in 2013 , with revenue from acquisitions more than offset by lower trade sales from our rod mill and steel-related price deflation . the decrease in trade sales of steel rod during the year was more than offset by an increase in intra-segment rod sales , and the rod mill continued to operate at full capacity . a change in the mix of rod sales from trade to intra-segment is generally positive to earnings since that change tends to also shift the production mix to higher-value high carbon rods . ebit and ebit margins improved versus 2012 , primarily due to the absence of acquisition-related costs at western pneumatic tube and earnings from acquisitions . these gains were partially offset by lower metal margins in steel rod in the second half of 2013. we expanded our aerospace products business unit in 2013 with the acquisition of two companies . the first was a u.k.-based business acquired in may that extended our capability in aerospace tube fabrication . we recorded $ 6 million of goodwill related to

key elements of our business strategy include : ● educating third-party payors on the disproportionately high cost of their population with unaddressed behavioral health conditions that worsen medical comorbidities ; ● demonstrating the potential for improved clinical outcomes and reduced cost associated with using our on trak solution with third-party payors ; ● providing our on trak solution to third-party payors for reimbursement on a case rate , fee for service , or monthly fee basis ; and ● generating outcomes data from our on trak solution to demonstrate cost reductions and facilitate broader adoption . key elements of our growth strategy include : ● expansion of our outreach pool ● evolving our economic and clinical model ● ensuring scalability ● creating a winning culture 21 reporting segment we manage and report our operations through one business segment : healthcare services . the healthcare services segment includes the on t rak solutions marketed to health plans and other third party payors . summary financial information for our reportable segment is as follows : results of operations the table below and the discussion that follows summarize our results of operations and certain selected operating statistics for the last two fiscal years ended december 31 , 2018 and 2017 : replace_table_token_1_th year ended december 31 , 2018 compared w ith year ended december 31 , 2017 summary of consolidated operating results loss from operations before provision for income taxes for the year ended december 31 , 2018 was $ 14.2 million compared with $ 13.6 million for the year ended december 31 , 2017. our $ 7.5 million increase in revenues were offset by the investment in cost of healthcare services due to the increase in headcount needed to service our increase in enrolled members , investments in technology and product to drive efficiencies , and included a non-cash share-based compensation expense of $ 2.1 million related to options issued in december 2017 and throughout 2018. revenues during the year ended december 31 , 2018 , we launched enrollment with three new health plans in the states of illinois , tennessee and california , expanded with several of our current health plans into new service lines , and expanded with another of our health plans into four new states . we have continued to increase enrollment , which has resulted in a net increase in the number of patients enrolled in our on trak solutions compared with the same period in 2017 , this was offset by the timing of billing for certain members who we bill on a per claim basis . for the year ended december 31 , 2018 newly enrolled members increased by 120 % over the same period in 2017. recognized revenue increased by $ 7.5 million , or 97 % , for the year ended december 31 , 2018 , compared with the same period in 2017 , respectively . 22 operating expenses cost of healthcare services cost of healthcare services consists primarily of salaries related to our care coaches , outreach specialists , healthcare provider claims payments to our network of physicians and psychologists , and fees charged by our third party administrators for processing these claims . the increase of $ 4.7 million , or 74 % , for the year ended december 31 , 2018 , compared with the same period in 2017 , respectively , relates primarily to the increase in members being treated , the addition of care coaches , outreach specialists , community care coordinators and other staff to manage the increasing number of enrolled members . in addition , we hire staff in preparation for anticipated future customer contracts and corresponding increases in members eligible for on trak . general and administrative expenses total general and administrative expense increased by $ 5.6 million , or 47 % , for the year ended december 31 , 2018 , compared with the same period in 2017. the increase in general and administrative expenses was primarily related to investments in data science , it and software development to support growth and drive efficiency . in addition , there was an increase of approximately $ 2.1 million in non-cash share-based compensation expense during the twelve months of 2018 related to the issuance of stock options in december 2017 and throughout 2018. we expect our general and administrative expenses to increase for the foreseeable future as we continue to grow our business . however , we expect our general and administrative expenses to decrease significantly as a percentage of our total revenue over the next several years . our general and administrative expenses may fluctuate as a percentage of our total revenue from period to period due to the seasonality of our total revenue and the timing and extent of our general and administrative expenses . interest expense interest expense decreased by approximately $ 2.8 million year ended december 31 , 2018 compared with the same periods in 2017. the decrease during the year ended december 31 , 2018 primarily relates to the convertible debentures and warrants issued in connection with our convertible debentures during 2017. the majority of these instruments were either converted to equity or paid in full in april 2017 and as a result interest expense significantly decreased for the year ended december 31 , 2018. this was partially offset by the interest expense incurred in 2018 related to the issuance of the venture loan and security agreement with horizon technology finance corporation and amortization of debt discount associated with the loan . story_separator_special_tag for example , the assumptions we have made for the expected volatility of our stock price have been based on the historical volatility of our stock , measured over a period generally commensurate with the expected term . if we were to use a different volatility than the actual volatility of our stock price , there may be a significant variance in the amounts of share-based expense from the amounts reported . the weighted average expected option term for the year ended december 31 , 2018 and 2017 reflects the application of the simplified method set out in sec staff accounting bulletin no . 107 , which defines the life as the average of the contractual term of the options and the weighted average vesting period for all option tranches . from time to time , we retain terminated employees as part-time consultants upon their resignation from the company . because the employees continue to provide services to us , their options continue to vest in accordance with the terms set forth under their original grants . due to the change in classification of the option awards , the options are considered modified at the date of termination . the modifications are treated as exchanges of the original awards in return for the issuance of new awards . at the date of termination , the unvested options are no longer accounted for as employee awards and are accounted for as new non-employee awards . the accounting for the portion of the total grants that have already vested and have been previously expensed as equity awards is not changed . there were no employees moved to consulting status for the year ended december 31 , 2018 and 2017 , respectively . recently issued or newly adopted accounting pronouncements in august 2018 , the fasb issued accounting standard update ( “ asu ” ) no . 2018-13 , fair value measurement ( topic 820 ) , which modifies the disclosure requirements on fair value measurements in topic 820 , fair value measurement , including , among other changes , the consideration of costs and benefits when evaluating disclosure requirements . for public companies , the amendments are effective for annual reporting periods beginning after december 15 , 2019 , including interim periods within those annual periods . early adoption is permitted . we are currently assessing the impact that adopting this new accounting guidance will have on its financial statements and footnote disclosures . 26 in june 2018 , the fasb issued asu 2018-07 , improvements to nonemployee share-based payment accounting ( “ asu 2018-07 ” ) , which supersedes asc 505-50 and expands the scope of asc 718 to include all share-based payments arrangements related to the acquisition of goods and services from both employees and nonemployees . for public companies , the amendments are effective for annual reporting periods beginning after december 15 , 2018 , including interim periods within those annual periods . early adoption is permitted , but no earlier than a company 's adoption date of asc 606. we do not believe that the adoption of asu 2018-07 will have a material impact on our consolidated financial statements . in july 2017 , the fasb issued asu 2017-11 , earnings per share ( topic 260 ) ; distinguishing liabilities from equity ( topic 480 ) ; derivatives and hedging ( topic 815 ) : ( part i ) accounting for certain financial instruments with down round features , ( part ii ) replacement of the indefinite deferral for mandatorily redeemable financial instruments of certain nonpublic entities and certain mandatorily redeemable noncontrolling interests with a scope exception ( “ asu 2017-11 ” ) . the amendments in this update are intended to simplify the accounting for certain equity linked financial instruments and embedded features with down round features that result in the strike price being reduced on the basis of the pricing of future equity offerings . under the new guidance , a down round feature will no longer need to be considered when determining whether certain financial instruments or embedded features should be classified as liabilities or equity instruments . that is , a down round feature will no longer preclude equity classification when assessing whether an instrument or embedded feature is indexed to an entity 's own stock . in addition , the amendments clarify existing disclosure requirements for equity-classified instruments . these amendments are effective for fiscal years , and interim periods within those years , beginning after december 15 , 2018 , with early adoption permitted . we do not believe that the adoption of asu 2017-11 will have a material impact on our consolidated financial statements . in november 2016 , the fasb issued asu no . 2016-18 , statement of cash flows ( topic 230 ) : restricted cash ( “ asu 2016-18 ” ) , which clarifies the presentation of restricted cash in the statements of cash flows . under asu 2016-18 , restricted cash is included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statements of cash flows . the company adopted asu 2016-18 as of january 1 , 2018. the following is a summary of cash , cash equivalents and restricted cash total as presented in the statements of cash flows for the years december 31 , 2018 , and 2017 : ( in thousands ) 2018 2017 cash and cash equivalents $ 3,091 $ 4,779 restricted cash ( current and long-term ) 479 - total cash , cash equivalents and restricted cash $ 3,570 $ 4,779 in april 2016 , the fasb issued asu 2016-10 , revenue from contracts with customers ( topic 606 ) ( “ asu 2016-10 ” ) , which amends certain aspects of the board 's new revenue standard , asu 2014-09 , revenue from contracts with customers . the standard should be adopted concurrently with adoption of asu 2014-09 , which is effective for annual

y and capital resources cash , cash equivalents and restricted cash was $ 3.6 million as of december 31 , 2018. as of march 19 , 2019 , we had a balance of approximately $ 2.5 million cash on hand . we had working capital deficit of approximately $ 2.2 million as of december 31 , 2018. we have incurred significant net losses and negative operating cash flows since our inception . we expect to continue to incur negative cash flows and net losses for the next twelve months . our average cash burn rate is approximately $ 762,000 per month . we expect our current cash resources to cover expenses through at least the next twelve months , however , delays in cash collections , revenue , or unforeseen expenditures could impact this estimate . 23 in june 2018 , we entered into a venture loan and security agreement ( the “ loan agreement ” ) with horizon technology finance corporation ( the “ horizon ” ) , which provides for up to $ 7.5 million in loans to the company , including initial loans in the amount of $ 5.0 million funded upon signing of the loan agreement . an additional $ 2.5 million loan was subject to the company 's achievement of billings of not less than $ 5.0 million during any three consecutive month period on or prior to november 30 , 2018. in august 2018 , we incurred the additional $ 2.5 million loan as a result of our achievement of the trailing three month billings exceeding $ 5.0 million on or prior to november 30 , 2018. also , in june 2018 , we entered into a loan and security agreement in connection with a $ 2.5 million receivables financing facility with corporate finance , a division of heritage bank of commerce ( the “ a/r facility ” ) . the a/r facility provides for the borrower entities to borrow up to 85 % of the company 's eligible accounts receivable , as defined in the a/r 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. ```y and capital resources cash , cash equivalents and restricted cash was $ 3.6 million as of december 31 , 2018. as of march 19 , 2019 , we had a balance of approximately $ 2.5 million cash on hand . we had working capital deficit of approximately $ 2.2 million as of december 31 , 2018. we have incurred significant net losses and negative operating cash flows since our inception . we expect to continue to incur negative cash flows and net losses for the next twelve months . our average cash burn rate is approximately $ 762,000 per month . we expect our current cash resources to cover expenses through at least the next twelve months , however , delays in cash collections , revenue , or unforeseen expenditures could impact this estimate . 23 in june 2018 , we entered into a venture loan and security agreement ( the “ loan agreement ” ) with horizon technology finance corporation ( the “ horizon ” ) , which provides for up to $ 7.5 million in loans to the company , including initial loans in the amount of $ 5.0 million funded upon signing of the loan agreement . an additional $ 2.5 million loan was subject to the company 's achievement of billings of not less than $ 5.0 million during any three consecutive month period on or prior to november 30 , 2018. in august 2018 , we incurred the additional $ 2.5 million loan as a result of our achievement of the trailing three month billings exceeding $ 5.0 million on or prior to november 30 , 2018. also , in june 2018 , we entered into a loan and security agreement in connection with a $ 2.5 million receivables financing facility with corporate finance , a division of heritage bank of commerce ( the “ a/r facility ” ) . the a/r facility provides for the borrower entities to borrow up to 85 % of the company 's eligible accounts receivable , as defined in the a/r facility . ``` Suspicious Activity Report : key elements of our business strategy include : ● educating third-party payors on the disproportionately high cost of their population with unaddressed behavioral health conditions that worsen medical comorbidities ; ● demonstrating the potential for improved clinical outcomes and reduced cost associated with using our on trak solution with third-party payors ; ● providing our on trak solution to third-party payors for reimbursement on a case rate , fee for service , or monthly fee basis ; and ● generating outcomes data from our on trak solution to demonstrate cost reductions and facilitate broader adoption . key elements of our growth strategy include : ● expansion of our outreach pool ● evolving our economic and clinical model ● ensuring scalability ● creating a winning culture 21 reporting segment we manage and report our operations through one business segment : healthcare services . the healthcare services segment includes the on t rak solutions marketed to health plans and other third party payors . summary financial information for our reportable segment is as follows : results of operations the table below and the discussion that follows summarize our results of operations and certain selected operating statistics for the last two fiscal years ended december 31 , 2018 and 2017 : replace_table_token_1_th year ended december 31 , 2018 compared w ith year ended december 31 , 2017 summary of consolidated operating results loss from operations before provision for income taxes for the year ended december 31 , 2018 was $ 14.2 million compared with $ 13.6 million for the year ended december 31 , 2017. our $ 7.5 million increase in revenues were offset by the investment in cost of healthcare services due to the increase in headcount needed to service our increase in enrolled members , investments in technology and product to drive efficiencies , and included a non-cash share-based compensation expense of $ 2.1 million related to options issued in december 2017 and throughout 2018. revenues during the year ended december 31 , 2018 , we launched enrollment with three new health plans in the states of illinois , tennessee and california , expanded with several of our current health plans into new service lines , and expanded with another of our health plans into four new states . we have continued to increase enrollment , which has resulted in a net increase in the number of patients enrolled in our on trak solutions compared with the same period in 2017 , this was offset by the timing of billing for certain members who we bill on a per claim basis . for the year ended december 31 , 2018 newly enrolled members increased by 120 % over the same period in 2017. recognized revenue increased by $ 7.5 million , or 97 % , for the year ended december 31 , 2018 , compared with the same period in 2017 , respectively . 22 operating expenses cost of healthcare services cost of healthcare services consists primarily of salaries related to our care coaches , outreach specialists , healthcare provider claims payments to our network of physicians and psychologists , and fees charged by our third party administrators for processing these claims . the increase of $ 4.7 million , or 74 % , for the year ended december 31 , 2018 , compared with the same period in 2017 , respectively , relates primarily to the increase in members being treated , the addition of care coaches , outreach specialists , community care coordinators and other staff to manage the increasing number of enrolled members . in addition , we hire staff in preparation for anticipated future customer contracts and corresponding increases in members eligible for on trak . general and administrative expenses total general and administrative expense increased by $ 5.6 million , or 47 % , for the year ended december 31 , 2018 , compared with the same period in 2017. the increase in general and administrative expenses was primarily related to investments in data science , it and software development to support growth and drive efficiency . in addition , there was an increase of approximately $ 2.1 million in non-cash share-based compensation expense during the twelve months of 2018 related to the issuance of stock options in december 2017 and throughout 2018. we expect our general and administrative expenses to increase for the foreseeable future as we continue to grow our business . however , we expect our general and administrative expenses to decrease significantly as a percentage of our total revenue over the next several years . our general and administrative expenses may fluctuate as a percentage of our total revenue from period to period due to the seasonality of our total revenue and the timing and extent of our general and administrative expenses . interest expense interest expense decreased by approximately $ 2.8 million year ended december 31 , 2018 compared with the same periods in 2017. the decrease during the year ended december 31 , 2018 primarily relates to the convertible debentures and warrants issued in connection with our convertible debentures during 2017. the majority of these instruments were either converted to equity or paid in full in april 2017 and as a result interest expense significantly decreased for the year ended december 31 , 2018. this was partially offset by the interest expense incurred in 2018 related to the issuance of the venture loan and security agreement with horizon technology finance corporation and amortization of debt discount associated with the loan . story_separator_special_tag for example , the assumptions we have made for the expected volatility of our stock price have been based on the historical volatility of our stock , measured over a period generally commensurate with the expected term . if we were to use a different volatility than the actual volatility of our stock price , there may be a significant variance in the amounts of share-based expense from the amounts reported . the weighted average expected option term for the year ended december 31 , 2018 and 2017 reflects the application of the simplified method set out in sec staff accounting bulletin no . 107 , which defines the life as the average of the contractual term of the options and the weighted average vesting period for all option tranches . from time to time , we retain terminated employees as part-time consultants upon their resignation from the company . because the employees continue to provide services to us , their options continue to vest in accordance with the terms set forth under their original grants . due to the change in classification of the option awards , the options are considered modified at the date of termination . the modifications are treated as exchanges of the original awards in return for the issuance of new awards . at the date of termination , the unvested options are no longer accounted for as employee awards and are accounted for as new non-employee awards . the accounting for the portion of the total grants that have already vested and have been previously expensed as equity awards is not changed . there were no employees moved to consulting status for the year ended december 31 , 2018 and 2017 , respectively . recently issued or newly adopted accounting pronouncements in august 2018 , the fasb issued accounting standard update ( “ asu ” ) no . 2018-13 , fair value measurement ( topic 820 ) , which modifies the disclosure requirements on fair value measurements in topic 820 , fair value measurement , including , among other changes , the consideration of costs and benefits when evaluating disclosure requirements . for public companies , the amendments are effective for annual reporting periods beginning after december 15 , 2019 , including interim periods within those annual periods . early adoption is permitted . we are currently assessing the impact that adopting this new accounting guidance will have on its financial statements and footnote disclosures . 26 in june 2018 , the fasb issued asu 2018-07 , improvements to nonemployee share-based payment accounting ( “ asu 2018-07 ” ) , which supersedes asc 505-50 and expands the scope of asc 718 to include all share-based payments arrangements related to the acquisition of goods and services from both employees and nonemployees . for public companies , the amendments are effective for annual reporting periods beginning after december 15 , 2018 , including interim periods within those annual periods . early adoption is permitted , but no earlier than a company 's adoption date of asc 606. we do not believe that the adoption of asu 2018-07 will have a material impact on our consolidated financial statements . in july 2017 , the fasb issued asu 2017-11 , earnings per share ( topic 260 ) ; distinguishing liabilities from equity ( topic 480 ) ; derivatives and hedging ( topic 815 ) : ( part i ) accounting for certain financial instruments with down round features , ( part ii ) replacement of the indefinite deferral for mandatorily redeemable financial instruments of certain nonpublic entities and certain mandatorily redeemable noncontrolling interests with a scope exception ( “ asu 2017-11 ” ) . the amendments in this update are intended to simplify the accounting for certain equity linked financial instruments and embedded features with down round features that result in the strike price being reduced on the basis of the pricing of future equity offerings . under the new guidance , a down round feature will no longer need to be considered when determining whether certain financial instruments or embedded features should be classified as liabilities or equity instruments . that is , a down round feature will no longer preclude equity classification when assessing whether an instrument or embedded feature is indexed to an entity 's own stock . in addition , the amendments clarify existing disclosure requirements for equity-classified instruments . these amendments are effective for fiscal years , and interim periods within those years , beginning after december 15 , 2018 , with early adoption permitted . we do not believe that the adoption of asu 2017-11 will have a material impact on our consolidated financial statements . in november 2016 , the fasb issued asu no . 2016-18 , statement of cash flows ( topic 230 ) : restricted cash ( “ asu 2016-18 ” ) , which clarifies the presentation of restricted cash in the statements of cash flows . under asu 2016-18 , restricted cash is included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statements of cash flows . the company adopted asu 2016-18 as of january 1 , 2018. the following is a summary of cash , cash equivalents and restricted cash total as presented in the statements of cash flows for the years december 31 , 2018 , and 2017 : ( in thousands ) 2018 2017 cash and cash equivalents $ 3,091 $ 4,779 restricted cash ( current and long-term ) 479 - total cash , cash equivalents and restricted cash $ 3,570 $ 4,779 in april 2016 , the fasb issued asu 2016-10 , revenue from contracts with customers ( topic 606 ) ( “ asu 2016-10 ” ) , which amends certain aspects of the board 's new revenue standard , asu 2014-09 , revenue from contracts with customers . the standard should be adopted concurrently with adoption of asu 2014-09 , which is effective for annual

corporate office personnel monitor proprietary credit scores and work with dealerships when the distribution of scores falls outside of prescribed thresholds . additionally , the company has increased its investment in the corporate infrastructure within the collections area , including the hiring of a director of collection practices and review , which is also having a positive effect on results by providing more timely oversight and providing for more accountability on a consistent basis . in addition , the company now has several collection specialists who assist the director of collection practices and review with monitoring and training efforts . also , turnover at the dealership level for collections positions is down compared to historical levels , which is having a positive effect on results . the company believes that the proper execution of its business practices is the single most important determinant of credit loss experience . historically , credit losses , on a percentage basis , tend to be higher at new and developing dealerships than at mature dealerships . generally , this is the case because the management at new and developing dealerships tends to be less experienced in making credit decisions and collecting customer accounts and the customer base is less seasoned . normally the older , more mature dealerships have more repeat customers and on average , repeat customers are a better credit risk than non-repeat customers . the company does believe that higher energy and 20 fuel costs , general inflation and potentially lower personal income levels affecting customers can have a negative impact on collections . the company 's gross margins as a percentage of sales have been fairly consistent from year to year . over the last five fiscal years , the company 's gross margins as a percentage of sales have ranged between approximately 42 % and 44 % . gross margin as a percentage of sales for fiscal 2011 was 42.7 % . the company 's gross margins are based upon the cost of the vehicle purchased , with lower-priced vehicles typically having higher gross margin percentages . gross margins in recent years have been negatively affected by the increase in the average retail sales price ( a function of a higher purchase price ) and higher operating costs , mostly related to increased vehicle repair costs and higher fuel costs . additionally , the percentage of wholesale sales to retail sales , which relate for the most part to repossessed vehicles sold at or near cost , can have a significant effect on overall gross margins . the negative effect from wholesale sales was higher in fiscal 2007 and during the first part of fiscal 2008 due to the increased level of repossession activity coupled with relatively flat retail sales levels . higher retail sales levels and lower repossessions activity during the latter part of fiscal 2008 and for fiscal 2009 helped to bring gross margin percentages back up . gross margin percentages in fiscal 2010 benefitted from higher retail sales levels and from a strong wholesale market for repossessed vehicles due to overall used vehicle supply shortages . the gross margin percentage in fiscal 2011 was negatively affected by higher wholesale sales , increased average retail selling price , higher inventory repair costs and a lower margin on the payment protection plan product primarily related to increased claims associated with severe weather in some of our service areas . the company expects that its gross margin percentage will not change significantly in the near term from its current level ( 43 % range ) . hiring , training and retaining qualified associates are critical to the company 's success . the rate at which the company adds new dealerships and is able to implement operating initiatives is limited by the number of trained managers and support personnel the company has at its disposal . excessive turnover , particularly at the dealership manager level , could impact the company 's ability to add new dealerships and to meet operational initiatives . the company has added resources to recruit , train , and develop personnel , especially personnel targeted to fill dealership manager positions . the company expects to continue to invest in the development of its workforce in fiscal 2012 and beyond . 21 consolidated operations ( operating statement dollars in thousands ) replace_table_token_5_th 2011 compared to 2010 total revenues increased $ 40.3 million , or 11.9 % , in fiscal 2011 , as compared to revenue growth of 13.4 % in fiscal 2010 , principally as a result of ( i ) revenue growth from dealerships that operated a full 12 months in both periods ( $ 24.2 million ) , ( ii ) dealerships opened during fiscal 2010 or dealerships that opened or closed a satellite location during fiscal 2010 ( $ 6.6 million ) , and ( iii ) revenues from dealerships opened during fiscal 2011 ( $ 9.5 million ) . the increase in revenue for fiscal 2011 is attributable to ( i ) a 6.9 % increase in retail unit volumes together with a 2.5 % increase in the average unit sales price , ( ii ) a 23.9 % increase in interest and other income and , ( iii ) a $ 5.0 million increase in wholesale sales . cost of sales , as a percentage of sales , increased to 57.3 % in fiscal 2011 from 56.1 % in fiscal 2010. the company 's cost of sales as a percentage of sales was negatively affected by a higher percentage of wholesale sales , increased average selling price , higher inventory repair costs and a lower margin for the payment protection plan product primarily related to increased claims due to severe weather in a few of our service areas . wholesale sales , for the most part , relate to repossessed vehicles sold at or near cost . story_separator_special_tag these types of transactions , based upon facts and circumstances , have been permissible under the provisions of the internal revenue code ( “ irc ” ) as described in the treasury regulations . for financial accounting purposes , these transactions are eliminated in consolidation and a deferred tax liability has been recorded for this timing difference . the sale of finance receivables from car-mart of arkansas to colonial provides certain legal protection for the company 's finance receivables and , principally because of certain state apportionment characteristics of colonial , also has the effect of reducing the company 's overall effective state income tax rate by approximately 240 basis points . the actual interpretation of the regulations is in part a facts and circumstances matter . the company believes it satisfies the material provisions of the regulations . failure to satisfy those provisions could result in the loss of a tax deduction at the time the receivables are sold and have the effect of increasing the company 's overall effective income tax rate as well as the timing of required tax payments . the internal revenue service ( “ irs ” ) recently concluded the previously reported examinations of the company 's income tax returns for fiscal years 2008 and 2009. as a result of the examinations , the irs has questioned whether deferred payment protection plan ( “ ppp ” ) revenue associated with the sale of certain receivables are subject to the acceleration of advance payments provision of the irc and whether the company may deduct losses on the sale of the ppp receivables in excess of the income recognized on the underlying contracts . the issue is timing in nature and does not affect the overall tax provision , but affects the timing of required tax payments . by letter dated april 2 , 2010 , the irs delivered to the company a revenue agent 's report , which proposes an adjustment for the items discussed above as well as interest . the company intends to vigorously defend its position , and on april 23 , 2010 , the company filed an administrative protest with the appeals office of the irs . the protest disputes the income tax changes proposed by the irs and requests a conference with a representative of the appeals office . the company has not yet been notified by the appeals office of a date for the conference . if the matter is not resolved in the appeals office , and if the irs intends to pursue its position , the company fully intends to ask an appropriate court to consider the issue . the company 's policy is to recognize accrued interest related to unrecognized tax benefits in interest expense and penalties in operating expenses . the company had no accrued penalties and or interest as of april 30 , 2011. critical accounting estimates the preparation of financial statements in conformity with generally accepted accounting principles in the united states of america requires the company to make estimates and assumptions in determining 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 . actual results could differ from the company 's estimates . the company believes the most significant estimate made in the preparation of the consolidated financial statements in item 8 relates to the determination of its allowance for credit losses , which is discussed below . the company 's accounting policies are discussed in note b to the consolidated financial statements in item 8. the company maintains an allowance for credit losses on an aggregate basis at a level it considers sufficient to cover estimated losses in the collection of its finance receivables . at april 30 , 2011 , the weighted average total contract term was 27.3 months with 19.4 months remaining . the reserve amount in the allowance for credit losses at april 30 , 2011 , $ 60.2 million , was 22 % of the principal balance in finance receivables of 30 $ 282.5 million , less unearned payment protection plan revenue of $ 9.0 million . the estimated reserve amount is the company 's anticipated future net charge-offs for losses incurred through the balance sheet date . the allowance takes into account historical credit loss experience ( both timing and severity of losses ) , with consideration given to recent credit loss trends and changes in contract characteristics ( i.e . , average amount financed , months outstanding at loss date , term and age of portfolio ) , delinquency levels , collateral values , economic conditions and underwriting and collection practices . the allowance for credit losses is reviewed at least quarterly by management with any changes reflected in current operations . the calculation of the allowance for credit losses uses the following primary factors : · the number of units repossessed or charged-off as a percentage of total units financed over specific historical periods of time . · the average net repossession and charge-off loss per unit during the last eighteen months , segregated by the number of months since the contract origination date , and adjusted for the expected future average net charge-off loss per unit . about 50 % of the charge-offs that will ultimately occur in the portfolio are expected to occur within 10-11 months following the balance sheet date . the average age of an account at charge-off date is 11.4 months . · the timing of repossession and charge-off losses relative to the date of sale ( i.e . , how long it takes for a repossession or charge-off to occur ) for repossessions and charge-offs occurring during the last eighteen months . a point estimate is produced by this analysis which is then supplemented by any positive or negative subjective factors to arrive at an overall reserve amount that management considers to be a

liquidity and capital resources the following table sets forth certain historical information with respect to the company 's statements of cash flows ( in thousands ) : replace_table_token_8_th the primary drivers of operating profits and cash flows include ( i ) top line sales ( ii ) interest rates on finance receivables , ( iii ) gross margin percentages on vehicle sales , and ( iv ) credit losses . the company generates cash flow from income from operations . historically , most or all of this cash is used to fund finance receivables growth , capital expenditures and common stock repurchases . to the extent finance receivables growth , capital expenditures and common stock repurchases exceed income from operations ; generally the company increases its borrowings under its revolving credit facilities . the majority of the company 's growth has been self-funded . cash flows from operations in fiscal 2011 compared to fiscal 2010 were positively impacted by ( i ) higher sales volumes and increased interest income , ( ii ) a positive impact from current and deferred income taxes , ( iii ) inventory acquired in both repossessions and payment protections plan claims , offset by the net effect of other components of the change in finance receivables including originations and collections , as well as a decrease in the change of accounts payable and accrued liabilities . finance receivables , net , increased by $ 16.9 million during fiscal 2011 . 27 cash flows from operations in fiscal 2010 were positively impacted by ( i ) higher sales volumes and higher gross margin percentages on those sales , ( ii ) lower credit losses as a percentage of sales , ( iii ) increased accounts payable and accrued liabilities , offset by a significant decrease in the positive impact from current and deferred income taxes as well as the net effect of other components of the change in finance receivables including originations , collections , inventory acquired in both repossessions and payment protections plan claims as well as the actual payment protection plan claims .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources the following table sets forth certain historical information with respect to the company 's statements of cash flows ( in thousands ) : replace_table_token_8_th the primary drivers of operating profits and cash flows include ( i ) top line sales ( ii ) interest rates on finance receivables , ( iii ) gross margin percentages on vehicle sales , and ( iv ) credit losses . the company generates cash flow from income from operations . historically , most or all of this cash is used to fund finance receivables growth , capital expenditures and common stock repurchases . to the extent finance receivables growth , capital expenditures and common stock repurchases exceed income from operations ; generally the company increases its borrowings under its revolving credit facilities . the majority of the company 's growth has been self-funded . cash flows from operations in fiscal 2011 compared to fiscal 2010 were positively impacted by ( i ) higher sales volumes and increased interest income , ( ii ) a positive impact from current and deferred income taxes , ( iii ) inventory acquired in both repossessions and payment protections plan claims , offset by the net effect of other components of the change in finance receivables including originations and collections , as well as a decrease in the change of accounts payable and accrued liabilities . finance receivables , net , increased by $ 16.9 million during fiscal 2011 . 27 cash flows from operations in fiscal 2010 were positively impacted by ( i ) higher sales volumes and higher gross margin percentages on those sales , ( ii ) lower credit losses as a percentage of sales , ( iii ) increased accounts payable and accrued liabilities , offset by a significant decrease in the positive impact from current and deferred income taxes as well as the net effect of other components of the change in finance receivables including originations , collections , inventory acquired in both repossessions and payment protections plan claims as well as the actual payment protection plan claims . ``` Suspicious Activity Report : corporate office personnel monitor proprietary credit scores and work with dealerships when the distribution of scores falls outside of prescribed thresholds . additionally , the company has increased its investment in the corporate infrastructure within the collections area , including the hiring of a director of collection practices and review , which is also having a positive effect on results by providing more timely oversight and providing for more accountability on a consistent basis . in addition , the company now has several collection specialists who assist the director of collection practices and review with monitoring and training efforts . also , turnover at the dealership level for collections positions is down compared to historical levels , which is having a positive effect on results . the company believes that the proper execution of its business practices is the single most important determinant of credit loss experience . historically , credit losses , on a percentage basis , tend to be higher at new and developing dealerships than at mature dealerships . generally , this is the case because the management at new and developing dealerships tends to be less experienced in making credit decisions and collecting customer accounts and the customer base is less seasoned . normally the older , more mature dealerships have more repeat customers and on average , repeat customers are a better credit risk than non-repeat customers . the company does believe that higher energy and 20 fuel costs , general inflation and potentially lower personal income levels affecting customers can have a negative impact on collections . the company 's gross margins as a percentage of sales have been fairly consistent from year to year . over the last five fiscal years , the company 's gross margins as a percentage of sales have ranged between approximately 42 % and 44 % . gross margin as a percentage of sales for fiscal 2011 was 42.7 % . the company 's gross margins are based upon the cost of the vehicle purchased , with lower-priced vehicles typically having higher gross margin percentages . gross margins in recent years have been negatively affected by the increase in the average retail sales price ( a function of a higher purchase price ) and higher operating costs , mostly related to increased vehicle repair costs and higher fuel costs . additionally , the percentage of wholesale sales to retail sales , which relate for the most part to repossessed vehicles sold at or near cost , can have a significant effect on overall gross margins . the negative effect from wholesale sales was higher in fiscal 2007 and during the first part of fiscal 2008 due to the increased level of repossession activity coupled with relatively flat retail sales levels . higher retail sales levels and lower repossessions activity during the latter part of fiscal 2008 and for fiscal 2009 helped to bring gross margin percentages back up . gross margin percentages in fiscal 2010 benefitted from higher retail sales levels and from a strong wholesale market for repossessed vehicles due to overall used vehicle supply shortages . the gross margin percentage in fiscal 2011 was negatively affected by higher wholesale sales , increased average retail selling price , higher inventory repair costs and a lower margin on the payment protection plan product primarily related to increased claims associated with severe weather in some of our service areas . the company expects that its gross margin percentage will not change significantly in the near term from its current level ( 43 % range ) . hiring , training and retaining qualified associates are critical to the company 's success . the rate at which the company adds new dealerships and is able to implement operating initiatives is limited by the number of trained managers and support personnel the company has at its disposal . excessive turnover , particularly at the dealership manager level , could impact the company 's ability to add new dealerships and to meet operational initiatives . the company has added resources to recruit , train , and develop personnel , especially personnel targeted to fill dealership manager positions . the company expects to continue to invest in the development of its workforce in fiscal 2012 and beyond . 21 consolidated operations ( operating statement dollars in thousands ) replace_table_token_5_th 2011 compared to 2010 total revenues increased $ 40.3 million , or 11.9 % , in fiscal 2011 , as compared to revenue growth of 13.4 % in fiscal 2010 , principally as a result of ( i ) revenue growth from dealerships that operated a full 12 months in both periods ( $ 24.2 million ) , ( ii ) dealerships opened during fiscal 2010 or dealerships that opened or closed a satellite location during fiscal 2010 ( $ 6.6 million ) , and ( iii ) revenues from dealerships opened during fiscal 2011 ( $ 9.5 million ) . the increase in revenue for fiscal 2011 is attributable to ( i ) a 6.9 % increase in retail unit volumes together with a 2.5 % increase in the average unit sales price , ( ii ) a 23.9 % increase in interest and other income and , ( iii ) a $ 5.0 million increase in wholesale sales . cost of sales , as a percentage of sales , increased to 57.3 % in fiscal 2011 from 56.1 % in fiscal 2010. the company 's cost of sales as a percentage of sales was negatively affected by a higher percentage of wholesale sales , increased average selling price , higher inventory repair costs and a lower margin for the payment protection plan product primarily related to increased claims due to severe weather in a few of our service areas . wholesale sales , for the most part , relate to repossessed vehicles sold at or near cost . story_separator_special_tag these types of transactions , based upon facts and circumstances , have been permissible under the provisions of the internal revenue code ( “ irc ” ) as described in the treasury regulations . for financial accounting purposes , these transactions are eliminated in consolidation and a deferred tax liability has been recorded for this timing difference . the sale of finance receivables from car-mart of arkansas to colonial provides certain legal protection for the company 's finance receivables and , principally because of certain state apportionment characteristics of colonial , also has the effect of reducing the company 's overall effective state income tax rate by approximately 240 basis points . the actual interpretation of the regulations is in part a facts and circumstances matter . the company believes it satisfies the material provisions of the regulations . failure to satisfy those provisions could result in the loss of a tax deduction at the time the receivables are sold and have the effect of increasing the company 's overall effective income tax rate as well as the timing of required tax payments . the internal revenue service ( “ irs ” ) recently concluded the previously reported examinations of the company 's income tax returns for fiscal years 2008 and 2009. as a result of the examinations , the irs has questioned whether deferred payment protection plan ( “ ppp ” ) revenue associated with the sale of certain receivables are subject to the acceleration of advance payments provision of the irc and whether the company may deduct losses on the sale of the ppp receivables in excess of the income recognized on the underlying contracts . the issue is timing in nature and does not affect the overall tax provision , but affects the timing of required tax payments . by letter dated april 2 , 2010 , the irs delivered to the company a revenue agent 's report , which proposes an adjustment for the items discussed above as well as interest . the company intends to vigorously defend its position , and on april 23 , 2010 , the company filed an administrative protest with the appeals office of the irs . the protest disputes the income tax changes proposed by the irs and requests a conference with a representative of the appeals office . the company has not yet been notified by the appeals office of a date for the conference . if the matter is not resolved in the appeals office , and if the irs intends to pursue its position , the company fully intends to ask an appropriate court to consider the issue . the company 's policy is to recognize accrued interest related to unrecognized tax benefits in interest expense and penalties in operating expenses . the company had no accrued penalties and or interest as of april 30 , 2011. critical accounting estimates the preparation of financial statements in conformity with generally accepted accounting principles in the united states of america requires the company to make estimates and assumptions in determining 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 . actual results could differ from the company 's estimates . the company believes the most significant estimate made in the preparation of the consolidated financial statements in item 8 relates to the determination of its allowance for credit losses , which is discussed below . the company 's accounting policies are discussed in note b to the consolidated financial statements in item 8. the company maintains an allowance for credit losses on an aggregate basis at a level it considers sufficient to cover estimated losses in the collection of its finance receivables . at april 30 , 2011 , the weighted average total contract term was 27.3 months with 19.4 months remaining . the reserve amount in the allowance for credit losses at april 30 , 2011 , $ 60.2 million , was 22 % of the principal balance in finance receivables of 30 $ 282.5 million , less unearned payment protection plan revenue of $ 9.0 million . the estimated reserve amount is the company 's anticipated future net charge-offs for losses incurred through the balance sheet date . the allowance takes into account historical credit loss experience ( both timing and severity of losses ) , with consideration given to recent credit loss trends and changes in contract characteristics ( i.e . , average amount financed , months outstanding at loss date , term and age of portfolio ) , delinquency levels , collateral values , economic conditions and underwriting and collection practices . the allowance for credit losses is reviewed at least quarterly by management with any changes reflected in current operations . the calculation of the allowance for credit losses uses the following primary factors : · the number of units repossessed or charged-off as a percentage of total units financed over specific historical periods of time . · the average net repossession and charge-off loss per unit during the last eighteen months , segregated by the number of months since the contract origination date , and adjusted for the expected future average net charge-off loss per unit . about 50 % of the charge-offs that will ultimately occur in the portfolio are expected to occur within 10-11 months following the balance sheet date . the average age of an account at charge-off date is 11.4 months . · the timing of repossession and charge-off losses relative to the date of sale ( i.e . , how long it takes for a repossession or charge-off to occur ) for repossessions and charge-offs occurring during the last eighteen months . a point estimate is produced by this analysis which is then supplemented by any positive or negative subjective factors to arrive at an overall reserve amount that management considers to be a

we seek to improve our overall profitability by implementing cost reduction programs associated with our manufacturing , selling and general and administrative expenses . in november 2013 , the company initiated a cost reduction plan designed to deliver meaningful cost savings and optimal equipment utilization . this plan will result in several plant rationalizations . the costs associated with this plan will primarily consist of one-time costs associated with facility consolidation , including severance and termination benefits for employees of approximately $ 6 million , other costs associated with exiting facilities of approximately $ 30 million and non-cash asset impairment charges of approximately $ 11 million . in addition , as part of this cost reduction plan the company estimates it will incur capital expenditures of approximately $ 13 million . overall these facility restructuring programs are projected to generate approximately $ 27 million of annual operating savings when fully implemented . these amounts are preliminary estimates based on the information currently available to management . the plan is expected to be fully implemented by the end of fiscal 2014. recent developments initial public offering in october 2012 , the company completed an initial public offering and sold 29,411,764 shares of common stock at a public offering price of $ 16.00 per share . in conjunction with the initial public offering the company executed a 12.25 for one stock split of the company 's common stock . the effect of the stock split on outstanding shares and earnings per share has been retroactively applied to all periods presented . transaction fees totaling $ 33 million were included in paid-in capital on the consolidated balance sheets . proceeds , net of transaction fees , of $ 438 million and cash from operations were used to repurchase $ 455 million of 11 % senior subordinated notes due september 2016. as part of the repurchase the company paid premiums of $ 13 million and wrote-off $ 3 million of deferred financing fees . 17 tax receivable agreement in connection with the initial public offering , the company entered into an income tax receivable agreement ( `` tra `` ) that provides for the payment to pre-initial public offering stockholders , option holders and holders of our stock appreciation rights , 85 % of the amount of cash savings , if any , in u.s. federal , foreign , state and local income tax that are actually realized ( or are deemed to be realized in the case of a change of control ) as a result of the utilization of our and our subsidiaries ' net operating losses attributable to periods prior to the initial public offering . the company expects to pay between $ 313 million and $ 360 million in cash related to this agreement . this range is based on the company 's assumptions using various items , including valuation analysis and current tax law . the company recorded an obligation of $ 313 million which was recognized as a reduction of paid-in capital on the consolidated balance sheets . changes in the estimated tra obligation will be recorded as other expense ( income ) in the consolidated statement of operations . payments under the tra are not conditioned upon the parties ' continued ownership of the company . the balance at the end of fiscal 2013 was $ 308 million . during fiscal 2013 , the company made $ 5 million of payments related to the tra with an additional $ 32 million being paid in the first fiscal quarter of 2014. incremental term loan in february 2013 , the company entered into an incremental assumption agreement to increase the commitments under berry plastics corporation 's existing term loan credit agreement by $ 1.4 billion . berry plastics corporation borrowed loans in an aggregate principal amount equal to the full amount of the commitments on such date . the incremental term loans bear interest at libor plus 2.50 % per annum with a libor floor of 1.00 % , matures in february 2020 and are subject to customary amortization . the proceeds from the incremental term loan , in addition to borrowings under the revolving credit facility , were used to ( a ) satisfy and discharge all of berry plastics corporation 's outstanding ( i ) second priority senior secured floating rate notes due 2014 , ( ii ) first priority senior secured floating rate notes due 2015 , ( iii ) 101⁄4 % senior subordinated notes due 2016 and ( iv ) 81⁄4 % first priority senior secured notes due 2015 , which , in each case , were called for redemption in february 2013 and the related indentures and ( b ) pay related fees and expenses . the company recognized a $ 48 million loss on extinguishment of debt related to this debt refinancing . interest rate swap in february 2013 , the company entered into an interest rate swap transaction to protect $ 1 billion of outstanding variable rate term loan debt from future interest rate volatility . the agreement swapped the greater of a three-month variable libor contract or 1.00 % for a fixed three-year rate of 2.355 % , with an effective date in may 2016 and expiration in may 2019. in june 2013 , the company elected to settle this derivative instrument and received $ 16 million as a result of this settlement . the offset is included in accumulated other comprehensive loss and deferred income taxes and will be amortized to interest expense from may 2016 through may 2019 , the original term of the swap agreement . secondary public offerings in april 2013 , we completed a secondary public offering in which certain funds affiliated with apollo and graham sold 18,975,000 shares of common stock at $ 17.00 per share , which included 2,475,000 shares purchased by the underwriters upon the exercise in full of their option to purchase additional shares . story_separator_special_tag the company was in compliance with all covenants at the end of fiscal 2013. our fixed charge coverage ratio , as defined in the revolving credit facility , is calculated based on a numerator consisting of adjusted ebitda less pro forma adjustments , income taxes paid in cash and capital expenditures , and a denominator consisting of scheduled principal payments in respect of indebtedness for borrowed money , interest expense and certain distributions . we are obligated to sustain a minimum fixed charge coverage ratio of 1.0 to 1.0 under the revolving credit facility at any time when the aggregate unused capacity under the revolving credit facility is less than 10 % of the lesser of the revolving credit facility commitments and the borrowing base ( and for 10 business days following the date upon which availability exceeds such threshold ) or during the continuation of an event of default . at the end of fiscal 2013 , the company had unused borrowing capacity of $ 531 million under the revolving credit facility and thus was not subject to the minimum fixed charge coverage ratio covenant . our fixed charge coverage ratio was 2.2 to 1.0 at the end of fiscal 2013. despite not having financial maintenance covenants , our debt agreements contain certain negative covenants . the failure to comply with these negative covenants could restrict our ability to incur additional indebtedness , effect acquisitions , enter into certain significant business combinations , make distributions or redeem indebtedness . the term loan facility contains a negative covenant first lien secured leverage ratio covenant of 4.0 to 1.0 on a pro forma basis for a proposed transaction , such as an acquisition or incurrence of additional first lien debt . our first lien secured leverage ratio was 3.2 to 1.0 at the end of fiscal 2013. a key financial metric utilized in the calculation of the first lien leverage ratio is adjusted ebitda as defined in the company 's senior secured credit facilities . the following table reconciles ( i ) our adjusted ebitda to net income under gaap and ( ii ) our adjusted free cash flow to cash flow from operating activities under gaap . replace_table_token_8_th adjusted ebitda and adjusted free cash flow , as presented in this document , are supplemental financial measures that are not required by , or presented in accordance with , generally accepted accounting principles in the united states ( “ gaap ” ) . adjusted ebitda and adjusted free cash flow are not gaap financial measures and should not be considered as an alternative to operating or net income or cash flows from operating activities , in each case determined in accordance with gaap . we define “ adjusted ebitda ” as net income ( loss ) before depreciation and amortization , income tax expense ( benefit ) , interest expense ( net ) and certain restructuring and business optimization charges and as adjusted for unrealized cost reductions and acquired businesses , including unrealized synergies , which are more particularly defined in our credit documents and the indentures governing our notes . adjusted ebitda is used by our lenders for debt covenant compliance purposes and by our management as one of several measures to evaluate management performance . while the 23 determination of appropriate adjustments in the calculation of adjusted ebitda is subject to interpretation under the terms of the credit facility , management believes the adjustments described above are in accordance with the covenants in the credit facility . adjusted ebitda eliminates certain charges that we believe do not reflect operations and underlying operational performance . although we use adjusted ebitda as a financial measure to assess the performance of our business , the use of adjusted ebitda has important limitations , including that ( 1 ) adjusted ebitda does not represent funds available for dividends , reinvestment or other discretionary uses , or account for one-time expenses and charges ; ( 2 ) adjusted ebitda does not reflect cash outlays for capital expenditures or contractual commitments ; ( 3 ) adjusted ebitda does not reflect changes in , or cash requirements for , working capital ; ( 4 ) adjusted ebitda does not reflect the interest expense or the cash requirements necessary to service interest or principal payments on indebtedness ; ( 5 ) adjusted ebitda does not reflect income tax expense or the cash necessary to pay income taxes ; ( 6 ) adjusted ebitda excludes depreciation and amortization and , although depreciation and amortization are non-cash charges , the assets being depreciated and amortized will often have to be replaced in the future , and adjusted ebitda does not reflect cash requirements for such replacements ; and ( 7 ) adjusted ebitda does not reflect the impact of earnings or charges resulting from matters we consider not to be indicative of our ongoing operations . we define “ adjusted free cash flow ” as cash flow from operating activities less additions to property , plant and equipment . we use adjusted free cash flow as a measure of liquidity because it assists us in assessing our company 's ability to fund its growth through its generation of cash . we believe adjusted free cash flow is useful to an investor in evaluating our liquidity because adjusted free cash flow and similar measures are widely used by investors , securities analysts and other interested parties in our industry to measure a company 's liquidity without regard to revenue and expense recognition , which can vary depending upon accounting methods . although we use adjusted free cash flow as a liquidity measure to assess our ability to generate cash , the use of adjusted free cash flow has important limitations , including that : ( 1 ) adjusted free cash flow does not reflect the cash requirements necessary to service principal payments on our indebtedness ; and ( 2 ) adjusted free cash flow removes the impact of accrual basis

debt extinguishment . debt extinguishment was $ 64 million during fiscal 2013 as a result of loss on extinguishment of debt attributed to $ 37 million of call premium and penalties , $ 19 million of deferred financing fees and $ 8 million of debt discount related to the debt extinguishment that resulted from our incremental term loan capital restructuring and the use of the proceeds from our initial public offering . other income , net . other income was $ 7 million in fiscal 2013 and fiscal 2012 , respectively . these gains are attributed to the fair value adjustment for our interest rate swaps . 20 interest expense , net . interest expense decreased from $ 328 million in fiscal 2012 to $ 244 million in fiscal 2013 primarily as the result of the interest savings that resulted from our incremental term loan capital restructure and initial public offering , which proceeds were used to payoff indebtedness . income tax expense . fiscal 2013 , we recorded an income tax expense of $ 28 million or an effective tax rate of 33 % compared to an income tax expense of $ 2 million or an effective tax rate of 50 % in fiscal 2012. the effective tax rate is impacted by the relative impact of discrete items and certain international entities for which a full valuation allowance is recognized . discussion of results of operations for fiscal 2012 compared to fiscal 2011 net sales . net sales increased from $ 4,561 million in fiscal 2011 to $ 4,766 million in fiscal 2012. this increase is primarily attributed to net sales from acquired businesses of 10 % partially offset by a volume decline of 6 % . the following discussion in this section provides a comparison of net sales by business segment .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 extinguishment . debt extinguishment was $ 64 million during fiscal 2013 as a result of loss on extinguishment of debt attributed to $ 37 million of call premium and penalties , $ 19 million of deferred financing fees and $ 8 million of debt discount related to the debt extinguishment that resulted from our incremental term loan capital restructuring and the use of the proceeds from our initial public offering . other income , net . other income was $ 7 million in fiscal 2013 and fiscal 2012 , respectively . these gains are attributed to the fair value adjustment for our interest rate swaps . 20 interest expense , net . interest expense decreased from $ 328 million in fiscal 2012 to $ 244 million in fiscal 2013 primarily as the result of the interest savings that resulted from our incremental term loan capital restructure and initial public offering , which proceeds were used to payoff indebtedness . income tax expense . fiscal 2013 , we recorded an income tax expense of $ 28 million or an effective tax rate of 33 % compared to an income tax expense of $ 2 million or an effective tax rate of 50 % in fiscal 2012. the effective tax rate is impacted by the relative impact of discrete items and certain international entities for which a full valuation allowance is recognized . discussion of results of operations for fiscal 2012 compared to fiscal 2011 net sales . net sales increased from $ 4,561 million in fiscal 2011 to $ 4,766 million in fiscal 2012. this increase is primarily attributed to net sales from acquired businesses of 10 % partially offset by a volume decline of 6 % . the following discussion in this section provides a comparison of net sales by business segment . ``` Suspicious Activity Report : we seek to improve our overall profitability by implementing cost reduction programs associated with our manufacturing , selling and general and administrative expenses . in november 2013 , the company initiated a cost reduction plan designed to deliver meaningful cost savings and optimal equipment utilization . this plan will result in several plant rationalizations . the costs associated with this plan will primarily consist of one-time costs associated with facility consolidation , including severance and termination benefits for employees of approximately $ 6 million , other costs associated with exiting facilities of approximately $ 30 million and non-cash asset impairment charges of approximately $ 11 million . in addition , as part of this cost reduction plan the company estimates it will incur capital expenditures of approximately $ 13 million . overall these facility restructuring programs are projected to generate approximately $ 27 million of annual operating savings when fully implemented . these amounts are preliminary estimates based on the information currently available to management . the plan is expected to be fully implemented by the end of fiscal 2014. recent developments initial public offering in october 2012 , the company completed an initial public offering and sold 29,411,764 shares of common stock at a public offering price of $ 16.00 per share . in conjunction with the initial public offering the company executed a 12.25 for one stock split of the company 's common stock . the effect of the stock split on outstanding shares and earnings per share has been retroactively applied to all periods presented . transaction fees totaling $ 33 million were included in paid-in capital on the consolidated balance sheets . proceeds , net of transaction fees , of $ 438 million and cash from operations were used to repurchase $ 455 million of 11 % senior subordinated notes due september 2016. as part of the repurchase the company paid premiums of $ 13 million and wrote-off $ 3 million of deferred financing fees . 17 tax receivable agreement in connection with the initial public offering , the company entered into an income tax receivable agreement ( `` tra `` ) that provides for the payment to pre-initial public offering stockholders , option holders and holders of our stock appreciation rights , 85 % of the amount of cash savings , if any , in u.s. federal , foreign , state and local income tax that are actually realized ( or are deemed to be realized in the case of a change of control ) as a result of the utilization of our and our subsidiaries ' net operating losses attributable to periods prior to the initial public offering . the company expects to pay between $ 313 million and $ 360 million in cash related to this agreement . this range is based on the company 's assumptions using various items , including valuation analysis and current tax law . the company recorded an obligation of $ 313 million which was recognized as a reduction of paid-in capital on the consolidated balance sheets . changes in the estimated tra obligation will be recorded as other expense ( income ) in the consolidated statement of operations . payments under the tra are not conditioned upon the parties ' continued ownership of the company . the balance at the end of fiscal 2013 was $ 308 million . during fiscal 2013 , the company made $ 5 million of payments related to the tra with an additional $ 32 million being paid in the first fiscal quarter of 2014. incremental term loan in february 2013 , the company entered into an incremental assumption agreement to increase the commitments under berry plastics corporation 's existing term loan credit agreement by $ 1.4 billion . berry plastics corporation borrowed loans in an aggregate principal amount equal to the full amount of the commitments on such date . the incremental term loans bear interest at libor plus 2.50 % per annum with a libor floor of 1.00 % , matures in february 2020 and are subject to customary amortization . the proceeds from the incremental term loan , in addition to borrowings under the revolving credit facility , were used to ( a ) satisfy and discharge all of berry plastics corporation 's outstanding ( i ) second priority senior secured floating rate notes due 2014 , ( ii ) first priority senior secured floating rate notes due 2015 , ( iii ) 101⁄4 % senior subordinated notes due 2016 and ( iv ) 81⁄4 % first priority senior secured notes due 2015 , which , in each case , were called for redemption in february 2013 and the related indentures and ( b ) pay related fees and expenses . the company recognized a $ 48 million loss on extinguishment of debt related to this debt refinancing . interest rate swap in february 2013 , the company entered into an interest rate swap transaction to protect $ 1 billion of outstanding variable rate term loan debt from future interest rate volatility . the agreement swapped the greater of a three-month variable libor contract or 1.00 % for a fixed three-year rate of 2.355 % , with an effective date in may 2016 and expiration in may 2019. in june 2013 , the company elected to settle this derivative instrument and received $ 16 million as a result of this settlement . the offset is included in accumulated other comprehensive loss and deferred income taxes and will be amortized to interest expense from may 2016 through may 2019 , the original term of the swap agreement . secondary public offerings in april 2013 , we completed a secondary public offering in which certain funds affiliated with apollo and graham sold 18,975,000 shares of common stock at $ 17.00 per share , which included 2,475,000 shares purchased by the underwriters upon the exercise in full of their option to purchase additional shares . story_separator_special_tag the company was in compliance with all covenants at the end of fiscal 2013. our fixed charge coverage ratio , as defined in the revolving credit facility , is calculated based on a numerator consisting of adjusted ebitda less pro forma adjustments , income taxes paid in cash and capital expenditures , and a denominator consisting of scheduled principal payments in respect of indebtedness for borrowed money , interest expense and certain distributions . we are obligated to sustain a minimum fixed charge coverage ratio of 1.0 to 1.0 under the revolving credit facility at any time when the aggregate unused capacity under the revolving credit facility is less than 10 % of the lesser of the revolving credit facility commitments and the borrowing base ( and for 10 business days following the date upon which availability exceeds such threshold ) or during the continuation of an event of default . at the end of fiscal 2013 , the company had unused borrowing capacity of $ 531 million under the revolving credit facility and thus was not subject to the minimum fixed charge coverage ratio covenant . our fixed charge coverage ratio was 2.2 to 1.0 at the end of fiscal 2013. despite not having financial maintenance covenants , our debt agreements contain certain negative covenants . the failure to comply with these negative covenants could restrict our ability to incur additional indebtedness , effect acquisitions , enter into certain significant business combinations , make distributions or redeem indebtedness . the term loan facility contains a negative covenant first lien secured leverage ratio covenant of 4.0 to 1.0 on a pro forma basis for a proposed transaction , such as an acquisition or incurrence of additional first lien debt . our first lien secured leverage ratio was 3.2 to 1.0 at the end of fiscal 2013. a key financial metric utilized in the calculation of the first lien leverage ratio is adjusted ebitda as defined in the company 's senior secured credit facilities . the following table reconciles ( i ) our adjusted ebitda to net income under gaap and ( ii ) our adjusted free cash flow to cash flow from operating activities under gaap . replace_table_token_8_th adjusted ebitda and adjusted free cash flow , as presented in this document , are supplemental financial measures that are not required by , or presented in accordance with , generally accepted accounting principles in the united states ( “ gaap ” ) . adjusted ebitda and adjusted free cash flow are not gaap financial measures and should not be considered as an alternative to operating or net income or cash flows from operating activities , in each case determined in accordance with gaap . we define “ adjusted ebitda ” as net income ( loss ) before depreciation and amortization , income tax expense ( benefit ) , interest expense ( net ) and certain restructuring and business optimization charges and as adjusted for unrealized cost reductions and acquired businesses , including unrealized synergies , which are more particularly defined in our credit documents and the indentures governing our notes . adjusted ebitda is used by our lenders for debt covenant compliance purposes and by our management as one of several measures to evaluate management performance . while the 23 determination of appropriate adjustments in the calculation of adjusted ebitda is subject to interpretation under the terms of the credit facility , management believes the adjustments described above are in accordance with the covenants in the credit facility . adjusted ebitda eliminates certain charges that we believe do not reflect operations and underlying operational performance . although we use adjusted ebitda as a financial measure to assess the performance of our business , the use of adjusted ebitda has important limitations , including that ( 1 ) adjusted ebitda does not represent funds available for dividends , reinvestment or other discretionary uses , or account for one-time expenses and charges ; ( 2 ) adjusted ebitda does not reflect cash outlays for capital expenditures or contractual commitments ; ( 3 ) adjusted ebitda does not reflect changes in , or cash requirements for , working capital ; ( 4 ) adjusted ebitda does not reflect the interest expense or the cash requirements necessary to service interest or principal payments on indebtedness ; ( 5 ) adjusted ebitda does not reflect income tax expense or the cash necessary to pay income taxes ; ( 6 ) adjusted ebitda excludes depreciation and amortization and , although depreciation and amortization are non-cash charges , the assets being depreciated and amortized will often have to be replaced in the future , and adjusted ebitda does not reflect cash requirements for such replacements ; and ( 7 ) adjusted ebitda does not reflect the impact of earnings or charges resulting from matters we consider not to be indicative of our ongoing operations . we define “ adjusted free cash flow ” as cash flow from operating activities less additions to property , plant and equipment . we use adjusted free cash flow as a measure of liquidity because it assists us in assessing our company 's ability to fund its growth through its generation of cash . we believe adjusted free cash flow is useful to an investor in evaluating our liquidity because adjusted free cash flow and similar measures are widely used by investors , securities analysts and other interested parties in our industry to measure a company 's liquidity without regard to revenue and expense recognition , which can vary depending upon accounting methods . although we use adjusted free cash flow as a liquidity measure to assess our ability to generate cash , the use of adjusted free cash flow has important limitations , including that : ( 1 ) adjusted free cash flow does not reflect the cash requirements necessary to service principal payments on our indebtedness ; and ( 2 ) adjusted free cash flow removes the impact of accrual basis

continued periods of high volatility in fuel costs , increased fuel prices or significant disruptions in the supply of aircraft fuel could have a significant negative impact on our operating results and liquidity.” aag 's 2016 results the selected financial data presented below is derived from aag 's audited consolidated financial statements included in part ii , item 8a of this report and should be read in conjunction with those financial statements and the related notes thereto . replace_table_token_14_th 51 ( 1 ) see part ii , item 6. selected consolidated financial data – “reconciliation of gaap to non-gaap financial measures” and note 2 to aag 's consolidated financial statements in part ii , item 8a for details on the components of special items . net income and pre-tax income we realized net income of $ 2.7 billion in 2016. this compares to $ 7.6 billion of net income in 2015 , which included a special $ 3.0 billion non-cash tax benefit , as we reversed the valuation allowance on our deferred tax assets , which include our federal and state nols . as a result of the reversal of the valuation allowance , we recorded a $ 1.6 billion provision for income taxes in 2016 , which is substantially non-cash due to the utilization of nols . accordingly , amounts reported in 2016 for income tax provision and net income are not comparable to 2015. therefore , pre-tax income and pre-tax income excluding special items provides a more meaningful year-over-year comparison . the exclusion of special items provides investors the ability to measure financial performance in a way that is more indicative of our ongoing performance and is more comparable to financial measures presented by other major airlines . management uses pre-tax income excluding special items to evaluate our financial performance . we realized pre-tax income of $ 4.3 billion and $ 4.6 billion in 2016 and 2015 , respectively . excluding the effects of pre-tax special items , pre-tax income was $ 5.1 billion and $ 6.3 billion in 2016 and 2015 , respectively . our 2016 pre-tax results on both a gaap basis and excluding pre-tax net special items were impacted by a decline in revenues due to lower yields . salaries , wages and benefits costs were higher in 2016 , driven by our new labor contracts and the addition of an employee profit sharing program ; however , these increases were substantially offset by a year-over-year decline in fuel costs . for reconciliation of pre-tax and net income excluding special items to their comparable measures on a gaap basis , see part ii , item 6. selected consolidated financial data – “reconciliation of gaap to non-gaap financial measures.” revenue in 2016 , we reported operating revenues of $ 40.2 billion , a decrease of $ 810 million , or 2.0 % , as compared to 2015. mainline and regional passenger revenues were $ 34.6 billion , a decrease of $ 933 million , or 2.6 % , as compared to 2015. the decline in mainline and regional passenger revenues was due to lower yields driven by competitive capacity growth , macroeconomic softness outside of the united states and foreign currency weakness . this decline was offset in part by an increase in other operating revenues primarily due to our new co-branded credit card agreements which became effective in the third quarter of 2016. our mainline and regional total revenue per available seat mile ( trasm ) was 14.70 cents in 2016 , a 3.7 % decrease as compared to 15.25 cents in 2015. fuel our mainline and regional fuel expense totaled $ 6.2 billion in 2016 , which was $ 1.3 billion , or 17.1 % , lower as compared to 2015. this decrease was driven by a 17.6 % decrease in the average price per gallon of fuel to $ 1.42 in 2016 from $ 1.72 in 2015. as of december 31 , 2016 , we did not have any fuel hedging contracts outstanding to hedge our fuel consumption . as such , and assuming we do not enter into any future transactions to hedge our fuel consumption , we will continue to be fully exposed to fluctuations in fuel prices . our current policy is not to enter into transactions to hedge our fuel consumption , although we review that policy from time to time based on market conditions and other factors . 52 other costs we remain committed to actively managing our cost structure , which we believe is necessary in an industry whose economic prospects are heavily dependent upon two variables we can not control : the health of the economy and the price of fuel . our 2016 mainline casm was 11.94 cents , a decrease of 0.8 % , from 12.03 cents in 2015. the decrease was primarily driven by lower fuel costs , offset in part by higher salaries , wages and benefits associated with new labor contracts and the addition of an employee profit sharing program . our 2016 mainline casm excluding special items and fuel was 9.54 cents , an increase of 6.1 % , from 8.99 cents in 2015 , which was primarily driven by higher salaries , wages and benefits as described above . for a reconciliation of mainline casm excluding special items and fuel , see part ii , item 6. selected consolidated financial data – “reconciliation of gaap to non-gaap financial measures.” liquidity and stockholder returns as of december 31 , 2016 , we had approximately $ 8.8 billion in total available liquidity , consisting of $ 6.4 billion in unrestricted cash and investments and $ 2.4 billion in undrawn revolving credit facilities . we also had approximately $ 638 million in restricted cash . during 2016 , we returned $ 4.6 billion to our stockholders , including quarterly dividend payments of $ 224 million and the repurchase of $ 4.4 billion of common stock , or 119.8 million shares . story_separator_special_tag regional operating expenses total regional expenses decreased $ 533 million , or 8.2 % , in 2015 as compared to 2014. the year-over-year decrease was primarily due to a $ 779 million , or 38.8 % , decrease in fuel costs , offset in part by a $ 246 million , or 5.4 % , increase in other regional operating expenses . the average price per gallon of fuel decreased 40.9 % to $ 1.73 in 2015 from $ 2.92 in 2014. the increase in other regional operating expenses was principally due to increased flying under capacity purchase agreements . see note 1 to aag 's consolidated financial statements in part ii , item 8a for further information on regional expenses . nonoperating results replace_table_token_27_th our short-term investments in each period consisted of highly liquid investments that provided nominal returns . in 2015 , other nonoperating expense , net primarily included a $ 592 million special charge to write off all of the value of venezuelan bolivars held by us due to continued lack of repatriations and deterioration of economic conditions in venezuela . we also incurred $ 159 million of net foreign 62 currency losses . the foreign currency losses in 2015 were driven primarily by the strengthening of the u.s. dollar relative to other currencies , principally in latin american and european markets . in 2014 , other nonoperating expense , net primarily included $ 114 million of net foreign currency losses , including a $ 43 million special charge for venezuelan foreign currency losses and $ 56 million of special charges primarily due to early debt extinguishment costs related to the prepayment of our 7.50 % senior secured notes and other indebtedness . the foreign currency losses in 2014 were driven primarily by the strengthening of the u.s. dollar relative to other currencies , principally in the latin american market . income taxes in 2015 , we reversed $ 3.0 billion of the valuation allowance on our deferred tax assets , which resulted in a special non-cash tax benefit recorded in our consolidated statement of operations . in 2014 , we recorded a $ 330 million provision for income taxes , which included $ 346 million of special tax charges . during 2014 , we sold our portfolio of fuel hedging contracts that were scheduled to settle on or after june 30 , 2014. as a result , a special $ 330 million non-cash tax provision was recorded , which is the tax effect associated with gains recorded in oci principally in 2009 due to a net increase in the fair value of our fuel hedging contracts . see note 6 to aag 's consolidated financial statements in part ii , item 8a for additional information on income taxes . american 's results of operations results of operations – 2016 compared to 2015 american realized net income of $ 2.8 billion in 2016. this compares to $ 8.1 billion of net income in 2015 , which included a special $ 3.5 billion non-cash tax benefit as american reversed the valuation allowance on its deferred tax assets , which include its federal and state nols . as a result of the reversal of the valuation allowance , american recorded a $ 1.7 billion provision for income taxes in 2016 , which is substantially non-cash due to the utilization of nols . accordingly , amounts reported in 2016 for income tax provision and net income are not comparable to 2015. american realized pre-tax income of $ 4.4 billion and $ 4.7 billion in 2016 and 2015 , respectively . american 's 2016 pre-tax income was impacted by a decline in revenues due to lower yields . salaries , wages and benefits costs were higher in 2016 , driven by american 's new labor contracts and the addition of an employee profit sharing program ; however , these increases were substantially offset by a year-over-year decline in fuel costs . operating revenues replace_table_token_28_th total operating revenues in 2016 decreased $ 775 million , or 1.9 % , from 2015 driven by lower passenger revenues offset in part by higher other revenue . 63 total passenger revenues declined $ 933 million , or 2.6 % , in 2016 from 2015 driven by a decrease in yield due to competitive capacity growth , macroeconomic softness outside of the united states and foreign currency weakness . cargo revenue decreased $ 60 million , or 7.9 % , in 2016 from 2015 driven primarily by a decrease in domestic and international freight yields . other revenue primarily includes revenue associated with american 's loyalty program , baggage fees , ticketing change fees , airport clubs and inflight services . other revenue increased $ 218 million , or 4.7 % , in 2016 from 2015 driven by an increase in loyalty program revenue . in 2016 and 2015 , other revenues associated with american 's loyalty program were $ 2.1 billion and $ 1.9 billion , respectively , of which $ 1.9 billion and $ 1.7 billion , respectively , related to the marketing component of mileage sales and other marketing related payments . this year-over-year increase was due to american 's new co-branded credit card agreements which became effective in the third quarter of 2016. see note 1 ( i ) to american 's consolidated financial statements in part ii , item 8b for additional information on the loyalty program . operating expenses replace_table_token_29_th total operating expenses were $ 34.9 billion in 2016 , an increase of $ 110 million , or 0.3 % , from 2015. the increase in operating expenses was due to higher salaries , wages and benefits driven by new labor contracts and the addition of an employee profit sharing program ; however , these costs were substantially offset by a year-over-year decline in fuel costs . significant changes in the components of mainline operating expenses are as follows : aircraft fuel and related taxes decreased 18.5 % primarily due

sources and uses of cash aag and american 2016 compared to 2015 operating activities aag 's net cash provided by operating activities was $ 6.5 billion and $ 6.2 billion in 2016 and 2015 , respectively . while aag 's profitability was lower in 2016 as compared to 2015 , cash provided by operating activities increased $ 275 million driven by certain payments received related to our new co-branded credit card agreements that became effective in the third quarter of 2016 . 69 american 's net cash provided by operating activities was $ 1.8 billion and $ 2.6 billion in 2016 and 2015 , respectively , a year-over-year decrease of $ 837 million . we have the ability to move funds freely between our subsidiaries to support our cash requirements . the decline in american 's operating cash flows from 2016 to 2015 was primarily due to intercompany transfers of cash from american to aag in order to fund higher share repurchases in 2016. additionally , in 2015 , american 's operating cash flows included the proceeds from the $ 500 million issuance of aag 's 4.625 % senior notes , which also contributed to the year-over-year decline in operating cash flows . these declines were offset in part by the cash payments related to credit card agreements discussed above . investing activities aag 's net cash used in investing activities was $ 5.7 billion and $ 5.6 billion in 2016 and 2015 , respectively . american 's net cash used in investing activities was $ 5.6 billion in each of 2016 and 2015. aag and american 's principal investing activities in 2016 each included expenditures of $ 5.7 billion for property and equipment , primarily 97 newly delivered aircraft , including 25 airbus a321 aircraft , 24 embraer 175 aircraft , 20 boeing 737-800 aircraft , 18 bombardier crj900 aircraft , eight boeing 787 aircraft and two boeing 777 aircraft . we also had net purchases of $ 149 million of short-term 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. ```sources and uses of cash aag and american 2016 compared to 2015 operating activities aag 's net cash provided by operating activities was $ 6.5 billion and $ 6.2 billion in 2016 and 2015 , respectively . while aag 's profitability was lower in 2016 as compared to 2015 , cash provided by operating activities increased $ 275 million driven by certain payments received related to our new co-branded credit card agreements that became effective in the third quarter of 2016 . 69 american 's net cash provided by operating activities was $ 1.8 billion and $ 2.6 billion in 2016 and 2015 , respectively , a year-over-year decrease of $ 837 million . we have the ability to move funds freely between our subsidiaries to support our cash requirements . the decline in american 's operating cash flows from 2016 to 2015 was primarily due to intercompany transfers of cash from american to aag in order to fund higher share repurchases in 2016. additionally , in 2015 , american 's operating cash flows included the proceeds from the $ 500 million issuance of aag 's 4.625 % senior notes , which also contributed to the year-over-year decline in operating cash flows . these declines were offset in part by the cash payments related to credit card agreements discussed above . investing activities aag 's net cash used in investing activities was $ 5.7 billion and $ 5.6 billion in 2016 and 2015 , respectively . american 's net cash used in investing activities was $ 5.6 billion in each of 2016 and 2015. aag and american 's principal investing activities in 2016 each included expenditures of $ 5.7 billion for property and equipment , primarily 97 newly delivered aircraft , including 25 airbus a321 aircraft , 24 embraer 175 aircraft , 20 boeing 737-800 aircraft , 18 bombardier crj900 aircraft , eight boeing 787 aircraft and two boeing 777 aircraft . we also had net purchases of $ 149 million of short-term investments . ``` Suspicious Activity Report : continued periods of high volatility in fuel costs , increased fuel prices or significant disruptions in the supply of aircraft fuel could have a significant negative impact on our operating results and liquidity.” aag 's 2016 results the selected financial data presented below is derived from aag 's audited consolidated financial statements included in part ii , item 8a of this report and should be read in conjunction with those financial statements and the related notes thereto . replace_table_token_14_th 51 ( 1 ) see part ii , item 6. selected consolidated financial data – “reconciliation of gaap to non-gaap financial measures” and note 2 to aag 's consolidated financial statements in part ii , item 8a for details on the components of special items . net income and pre-tax income we realized net income of $ 2.7 billion in 2016. this compares to $ 7.6 billion of net income in 2015 , which included a special $ 3.0 billion non-cash tax benefit , as we reversed the valuation allowance on our deferred tax assets , which include our federal and state nols . as a result of the reversal of the valuation allowance , we recorded a $ 1.6 billion provision for income taxes in 2016 , which is substantially non-cash due to the utilization of nols . accordingly , amounts reported in 2016 for income tax provision and net income are not comparable to 2015. therefore , pre-tax income and pre-tax income excluding special items provides a more meaningful year-over-year comparison . the exclusion of special items provides investors the ability to measure financial performance in a way that is more indicative of our ongoing performance and is more comparable to financial measures presented by other major airlines . management uses pre-tax income excluding special items to evaluate our financial performance . we realized pre-tax income of $ 4.3 billion and $ 4.6 billion in 2016 and 2015 , respectively . excluding the effects of pre-tax special items , pre-tax income was $ 5.1 billion and $ 6.3 billion in 2016 and 2015 , respectively . our 2016 pre-tax results on both a gaap basis and excluding pre-tax net special items were impacted by a decline in revenues due to lower yields . salaries , wages and benefits costs were higher in 2016 , driven by our new labor contracts and the addition of an employee profit sharing program ; however , these increases were substantially offset by a year-over-year decline in fuel costs . for reconciliation of pre-tax and net income excluding special items to their comparable measures on a gaap basis , see part ii , item 6. selected consolidated financial data – “reconciliation of gaap to non-gaap financial measures.” revenue in 2016 , we reported operating revenues of $ 40.2 billion , a decrease of $ 810 million , or 2.0 % , as compared to 2015. mainline and regional passenger revenues were $ 34.6 billion , a decrease of $ 933 million , or 2.6 % , as compared to 2015. the decline in mainline and regional passenger revenues was due to lower yields driven by competitive capacity growth , macroeconomic softness outside of the united states and foreign currency weakness . this decline was offset in part by an increase in other operating revenues primarily due to our new co-branded credit card agreements which became effective in the third quarter of 2016. our mainline and regional total revenue per available seat mile ( trasm ) was 14.70 cents in 2016 , a 3.7 % decrease as compared to 15.25 cents in 2015. fuel our mainline and regional fuel expense totaled $ 6.2 billion in 2016 , which was $ 1.3 billion , or 17.1 % , lower as compared to 2015. this decrease was driven by a 17.6 % decrease in the average price per gallon of fuel to $ 1.42 in 2016 from $ 1.72 in 2015. as of december 31 , 2016 , we did not have any fuel hedging contracts outstanding to hedge our fuel consumption . as such , and assuming we do not enter into any future transactions to hedge our fuel consumption , we will continue to be fully exposed to fluctuations in fuel prices . our current policy is not to enter into transactions to hedge our fuel consumption , although we review that policy from time to time based on market conditions and other factors . 52 other costs we remain committed to actively managing our cost structure , which we believe is necessary in an industry whose economic prospects are heavily dependent upon two variables we can not control : the health of the economy and the price of fuel . our 2016 mainline casm was 11.94 cents , a decrease of 0.8 % , from 12.03 cents in 2015. the decrease was primarily driven by lower fuel costs , offset in part by higher salaries , wages and benefits associated with new labor contracts and the addition of an employee profit sharing program . our 2016 mainline casm excluding special items and fuel was 9.54 cents , an increase of 6.1 % , from 8.99 cents in 2015 , which was primarily driven by higher salaries , wages and benefits as described above . for a reconciliation of mainline casm excluding special items and fuel , see part ii , item 6. selected consolidated financial data – “reconciliation of gaap to non-gaap financial measures.” liquidity and stockholder returns as of december 31 , 2016 , we had approximately $ 8.8 billion in total available liquidity , consisting of $ 6.4 billion in unrestricted cash and investments and $ 2.4 billion in undrawn revolving credit facilities . we also had approximately $ 638 million in restricted cash . during 2016 , we returned $ 4.6 billion to our stockholders , including quarterly dividend payments of $ 224 million and the repurchase of $ 4.4 billion of common stock , or 119.8 million shares . story_separator_special_tag regional operating expenses total regional expenses decreased $ 533 million , or 8.2 % , in 2015 as compared to 2014. the year-over-year decrease was primarily due to a $ 779 million , or 38.8 % , decrease in fuel costs , offset in part by a $ 246 million , or 5.4 % , increase in other regional operating expenses . the average price per gallon of fuel decreased 40.9 % to $ 1.73 in 2015 from $ 2.92 in 2014. the increase in other regional operating expenses was principally due to increased flying under capacity purchase agreements . see note 1 to aag 's consolidated financial statements in part ii , item 8a for further information on regional expenses . nonoperating results replace_table_token_27_th our short-term investments in each period consisted of highly liquid investments that provided nominal returns . in 2015 , other nonoperating expense , net primarily included a $ 592 million special charge to write off all of the value of venezuelan bolivars held by us due to continued lack of repatriations and deterioration of economic conditions in venezuela . we also incurred $ 159 million of net foreign 62 currency losses . the foreign currency losses in 2015 were driven primarily by the strengthening of the u.s. dollar relative to other currencies , principally in latin american and european markets . in 2014 , other nonoperating expense , net primarily included $ 114 million of net foreign currency losses , including a $ 43 million special charge for venezuelan foreign currency losses and $ 56 million of special charges primarily due to early debt extinguishment costs related to the prepayment of our 7.50 % senior secured notes and other indebtedness . the foreign currency losses in 2014 were driven primarily by the strengthening of the u.s. dollar relative to other currencies , principally in the latin american market . income taxes in 2015 , we reversed $ 3.0 billion of the valuation allowance on our deferred tax assets , which resulted in a special non-cash tax benefit recorded in our consolidated statement of operations . in 2014 , we recorded a $ 330 million provision for income taxes , which included $ 346 million of special tax charges . during 2014 , we sold our portfolio of fuel hedging contracts that were scheduled to settle on or after june 30 , 2014. as a result , a special $ 330 million non-cash tax provision was recorded , which is the tax effect associated with gains recorded in oci principally in 2009 due to a net increase in the fair value of our fuel hedging contracts . see note 6 to aag 's consolidated financial statements in part ii , item 8a for additional information on income taxes . american 's results of operations results of operations – 2016 compared to 2015 american realized net income of $ 2.8 billion in 2016. this compares to $ 8.1 billion of net income in 2015 , which included a special $ 3.5 billion non-cash tax benefit as american reversed the valuation allowance on its deferred tax assets , which include its federal and state nols . as a result of the reversal of the valuation allowance , american recorded a $ 1.7 billion provision for income taxes in 2016 , which is substantially non-cash due to the utilization of nols . accordingly , amounts reported in 2016 for income tax provision and net income are not comparable to 2015. american realized pre-tax income of $ 4.4 billion and $ 4.7 billion in 2016 and 2015 , respectively . american 's 2016 pre-tax income was impacted by a decline in revenues due to lower yields . salaries , wages and benefits costs were higher in 2016 , driven by american 's new labor contracts and the addition of an employee profit sharing program ; however , these increases were substantially offset by a year-over-year decline in fuel costs . operating revenues replace_table_token_28_th total operating revenues in 2016 decreased $ 775 million , or 1.9 % , from 2015 driven by lower passenger revenues offset in part by higher other revenue . 63 total passenger revenues declined $ 933 million , or 2.6 % , in 2016 from 2015 driven by a decrease in yield due to competitive capacity growth , macroeconomic softness outside of the united states and foreign currency weakness . cargo revenue decreased $ 60 million , or 7.9 % , in 2016 from 2015 driven primarily by a decrease in domestic and international freight yields . other revenue primarily includes revenue associated with american 's loyalty program , baggage fees , ticketing change fees , airport clubs and inflight services . other revenue increased $ 218 million , or 4.7 % , in 2016 from 2015 driven by an increase in loyalty program revenue . in 2016 and 2015 , other revenues associated with american 's loyalty program were $ 2.1 billion and $ 1.9 billion , respectively , of which $ 1.9 billion and $ 1.7 billion , respectively , related to the marketing component of mileage sales and other marketing related payments . this year-over-year increase was due to american 's new co-branded credit card agreements which became effective in the third quarter of 2016. see note 1 ( i ) to american 's consolidated financial statements in part ii , item 8b for additional information on the loyalty program . operating expenses replace_table_token_29_th total operating expenses were $ 34.9 billion in 2016 , an increase of $ 110 million , or 0.3 % , from 2015. the increase in operating expenses was due to higher salaries , wages and benefits driven by new labor contracts and the addition of an employee profit sharing program ; however , these costs were substantially offset by a year-over-year decline in fuel costs . significant changes in the components of mainline operating expenses are as follows : aircraft fuel and related taxes decreased 18.5 % primarily due

on august 2 , 2019 , cms granted approval for a new technology add-on payment ( ntap ) for the t2bacteria panel for fiscal year 2020 and in september 2020 , cms extended the approval for 2021. in september 2019 , barda awarded us a milestone-based contract , with an initial value of $ 6 million , and a potential value of up to $ 69 million , for the development of new direct-from-blood diagnostic panels that will run on the t2dx . in september 2020 , we completed the initial phase and barda exercised the first contract option valued at $ 10.5 million . the existing reimbursement codes support our sepsis products and anticipate the same for our lyme disease product candidates . the economic savings associated with our sepsis products are realized directly by hospitals . in the united states , we have a commercial team that is primarily targeting hospitals with the highest concentration of patients at risk for sepsis-related infections . internationally , we have primarily partnered with distributors that target large hospitals in their respective international markets . we believe our sepsis products , which include t2candida , t2bacteria , t2resistance , and t2cauris , will redefine the standard of care in sepsis management while lowering healthcare costs by improving both the precision and the speed to detection of sepsis-causing pathogens . according to a study published in the journal of clinical microbiology in 2010 , targeted therapy for patients with bloodstream infections can be delayed up to 72 hours due to the wait time for blood culture results . in another study published in clinical infectious diseases in 2012 , the delayed administration of appropriate antifungal therapy was associated with higher mortality among patients with septic shock attributed to candida infection and , on that basis , the study concluded that more rapid and accurate diagnostic techniques are needed . due to the high mortality rate associated with candida infections , physicians often will place patients on antifungal drugs while they await blood culture diagnostic results which generally take at least five days to generate a negative test result . antifungal drugs are toxic and may result in side effects and can cost over $ 50 per day . the speed to result of t2candida and t2bacteria coupled with their higher sensitivity as compared to blood culture may help reduce the overuse of ineffective , or even unnecessary , antimicrobial therapy which may reduce side effects for patients , lower hospital costs and potentially counteract the growing resistance to antimicrobial therapy . the administration of inappropriate therapy is a driving force behind the spread of antimicrobial-resistant pathogens , which the united states centers for disease control and prevention , or the cdc , recently called “ one of our most serious health threats . ” the addition of the use of our products , t2bacteria , t2candida , and t2resistance , which all run on the t2dx instrument , with the standard of care for the management of patients suspected of sepsis , enables clinicians to potentially treat 90 % of patients with sepsis pathogen infections with the right targeted therapy within the first twelve hours of development of the symptoms of disease . currently , high risk patients are typically initially treated with broad spectrum antibiotic drugs that typically cover approximately 60 % of patients with infections . of the remaining 40 % of patients , approximately 30 % of the patients typically have a bacterial infection and 10 % typically have candida infections . t2candida and t2bacteria are designed to identify pathogens commonly not covered by broad spectrum antibiotic drugs . we compete with traditional blood culture-based diagnostic companies , including becton dickinson & co. and biomerieux , inc. , as well as companies offering post-culture species identification using both molecular and non-molecular methods , including biomerieux , inc. ( and its affiliate , biofire diagnostics , inc. ) , bruker corporation , accelerate diagnostics , luminex , genmark , cepheid and beckman coulter , a danaher company . in addition , there may be a number of new market entrants in the process of developing other post-blood culture diagnostic technologies that may be perceived as competitive with our technology . karius , inc. offers a lab developed culture independent diagnostic test for the identification of pathogens that has not been cleared by the fda but may be perceived as competitive with our technology . we have never been profitable and have incurred net losses in each year since inception . our accumulated deficit at december 31 , 2020 was $ 423.0 million and we have experienced cash outflows from operating activities over the past years . substantially all of our net losses resulted from costs incurred in connection with our research and development programs and from selling , general and administrative costs associated with our operations . we have incurred significant commercialization expenses related to product sales , marketing , manufacturing and distribution of our fda-cleared products , t2dx , t2candida and t2bacteria . in addition , we will continue to incur significant costs and expenses as we continue to develop other product candidates , improve existing products and maintain , expand and protect our intellectual property portfolio . we may seek to fund our operations through public equity or private equity or debt financings , as well as other sources . however , we may be unable to raise additional funds or enter into such other arrangements when needed on favorable terms or at all . our failure to raise capital or enter into such other arrangements if and when needed would have a negative impact on our business , results of operations and financial condition and our ability to develop , commercialize and drive adoption of the t2dx instrument , t2candida , t2bacteria , t2resistance , t2sars-cov-2 and future t2mr-based diagnostics . story_separator_special_tag the increase was driven by a $ 1.2 million increase in consulting expenses primarily related to the barda contract , an increase of $ 0.2 million in lab and facility expenses primarily for the barda contract and our t2sars-cov-2 panel and higher study related expenses of $ 0.1 million for assay development . these increases were partially offset by a $ 0.8 million decrease in payroll related and travel expenses due to a reduction in headcount and lower materials costs of $ 0.1 million . selling , general and administrative expenses selling , general and administrative expenses were $ 21.3 million for the year ended december 31 , 2020 , compared to $ 27.3 million for the year ended december 31 , 2019 , a decrease of $ 6.0 million . the decrease is driven by a decrease in payroll related expenses of $ 3.8 million and travel expenses of $ 1.0 million , all of which are attributable to a reduction in headcount and travel restrictions as a result of the covid-19 pandemic . stock compensation expense decreased by $ 1.0 million due to the market based restricted stock units reaching the end of the derived service periods and a reduction in headcount . tradeshow and other marketing expenses decreased by $ 0.9 million , primarily due to the impact of the covid-19 pandemic cancellations . expenses related to systems restoration from the 2019 cyber-attack decreased by $ 0.7 million . there was $ 0.2 million less of conferences , primarily due to the covid-19 pandemic cancellations , and $ 0.1 million less dues and subscriptions . the decreases are partially offset by an increase of $ 0.6 million in it support and consulting primarily due to remediating the material weakness , an increase of $ 0.5 million in d & o insurance premiums , and a $ 0.5 million impairment charge from a vacated operating lease , and an increase of $ 0.1 million in consulting fees primarily related to temporary help related to final cyber-recovery efforts in early 2020 , compliance with section 404 of the sarbanes-oxley act and a board members search . interest income interest income was immaterial for the years ended december 31 , 2020 and 2019. interest expense interest expense was $ 5.5 million for the year ended december 31 , 2020 , compared to $ 7.3 million for the year ended december 31 , 2019. interest expense decreased by $ 1.8 million primarily due to the change in fair value of the derivative associated with the crg term loan agreement . 65 other income , net other income , net , was $ 0.1 million for the year ended december 31 , 2020 , compared to $ 0.4 million for the year ended december 31 , 2019. other income , net , decreased $ 0.3 million primarily due to decreased dividend and other investment income . liquidity and capital resources we have incurred losses and cumulative negative cash flows from operations since our inception , and as of december 31 , 2020 and 2019 we had an accumulated deficit of $ 423.0 million and $ 376.2 million respectively . having obtained clearance from the fda and a ce mark in europe to market the t2dx , t2candida , and t2bacteria , we have incurred significant commercialization expenses related to product sales , marketing , manufacturing and distribution . we may seek to continue to fund our operations through public equity or private equity or debt financings , as well as other sources . however , we may be unable to raise additional funds or enter into such other arrangements when needed on favorable terms or at all . our failure to raise capital or enter into such other arrangements if and when needed would have a negative impact on our business , results of operations and financial condition and our ability to develop and commercialize t2dx , t2candida , t2bacteria , t2sars-cov-2 and other product candidates . historically , we have funded our operations primarily through our august 2014 initial public offering , our december 2015 public offering , our september 2016 private investment in public equity ( “ pipe ” ) financing , our september 2017 public offering , our june 2018 public offering , our july 2019 establishment of an equity distribution agreement and equity purchase agreement ( note 7 ) , private placements of redeemable convertible preferred stock and debt financing arrangements . equity distribution agreement on july 30 , 2019 , we entered into an equity distribution agreement ( the “ sales agreement ” ) with canaccord genuity llc , as agent ( “ canaccord ” ) , pursuant to which we may offer and sell shares of common stock in an “ at the market offering ” as defined in rule 415 ( a ) ( 4 ) of the securities act , for aggregate gross sale proceeds of up to $ 30.0 million from time to time through canaccord . on march 9 , 2020 , we entered into an amendment to the sales agreement to increase the aggregate gross sales amount from $ 30.0 million to $ 65.0 million . on april 8 , 2020 , we entered into an amendment to the sales agreement to increase the aggregate gross sales amount from $ 65.0 million to $ 95.0 million . as of december 31 , 2020 , we had sold 101,606,667 shares of common stock with an aggregate gross sales amount of $ 95.0 million . we had agreed to pay canaccord for its services of acting as agent 3 % of the gross proceeds from the sale of the shares pursuant to the sales agreement . legal and accounting fees were reclassified to share capital upon issuance of shares under the sales agreement . purchase agreement on july 29 , 2019 , we entered into a $ 30.0 million purchase agreement ( the “ purchase agreement ” ) with lincoln park capital fund

net cash used in operating activities net cash used in operating activities was $ 43.2 million for the year ended december 31 , 2020 , and consisted primarily of a net loss of $ 46.8 million , an adjustment for non-cash items including stock-based compensation expense of $ 3.9 million , non-cash interest expense of $ 3.2 million , depreciation and amortization expense of $ 1.7 million , non-cash lease expense of $ 1.5 million , a change in fair value of derivative of $ 1.4 million , covid-19 related impairment charge of $ 0.6 million of our t2-owned instruments and components , an impairment of one of our operating lease assets of $ 0.5 million , amortization of bond premium of $ 0.1 million , and a net change in operating assets and liabilities of $ 6.5 million . the net change in operating assets and liabilities was primarily driven by a decrease in operating lease liabilities of $ 2.7 million , an increase in accounts receivable of $ 2.2 million due to higher consumable and instrument sales shipped near quarter end , a decrease in accounts payable of $ 1.6 million due to timing of payments , and an increase in prepaid expenses and other assets of $ 1.1 million primarily related to order deposits with our contract manufacturer and increased software subscriptions , partially offset by an increase in accrued expenses of $ 0.4 million primarily from bonus , $ 0.4 million of a decrease in inventory primarily due to increased sales and an increase in deferred revenue of $ 0.3 million primarily due to warranty and service performance obligations associated with the recent instrument sales . net cash used in operating activities was $ 45.4 million for the year ended december 31 , 2019 , and consisted primarily of a net loss of $ 59.0 million , an adjustment for non-cash items including stock-based compensation expense of $ 5.5 million , non-cash interest expense of $ 2.4 million , depreciation and amortization expense of $ 2.2 million , amortization of operating lease assets of $ 1.4 million , and a change in fair value of derivative of $ 0.3

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```net cash used in operating activities net cash used in operating activities was $ 43.2 million for the year ended december 31 , 2020 , and consisted primarily of a net loss of $ 46.8 million , an adjustment for non-cash items including stock-based compensation expense of $ 3.9 million , non-cash interest expense of $ 3.2 million , depreciation and amortization expense of $ 1.7 million , non-cash lease expense of $ 1.5 million , a change in fair value of derivative of $ 1.4 million , covid-19 related impairment charge of $ 0.6 million of our t2-owned instruments and components , an impairment of one of our operating lease assets of $ 0.5 million , amortization of bond premium of $ 0.1 million , and a net change in operating assets and liabilities of $ 6.5 million . the net change in operating assets and liabilities was primarily driven by a decrease in operating lease liabilities of $ 2.7 million , an increase in accounts receivable of $ 2.2 million due to higher consumable and instrument sales shipped near quarter end , a decrease in accounts payable of $ 1.6 million due to timing of payments , and an increase in prepaid expenses and other assets of $ 1.1 million primarily related to order deposits with our contract manufacturer and increased software subscriptions , partially offset by an increase in accrued expenses of $ 0.4 million primarily from bonus , $ 0.4 million of a decrease in inventory primarily due to increased sales and an increase in deferred revenue of $ 0.3 million primarily due to warranty and service performance obligations associated with the recent instrument sales . net cash used in operating activities was $ 45.4 million for the year ended december 31 , 2019 , and consisted primarily of a net loss of $ 59.0 million , an adjustment for non-cash items including stock-based compensation expense of $ 5.5 million , non-cash interest expense of $ 2.4 million , depreciation and amortization expense of $ 2.2 million , amortization of operating lease assets of $ 1.4 million , and a change in fair value of derivative of $ 0.3 ``` Suspicious Activity Report : on august 2 , 2019 , cms granted approval for a new technology add-on payment ( ntap ) for the t2bacteria panel for fiscal year 2020 and in september 2020 , cms extended the approval for 2021. in september 2019 , barda awarded us a milestone-based contract , with an initial value of $ 6 million , and a potential value of up to $ 69 million , for the development of new direct-from-blood diagnostic panels that will run on the t2dx . in september 2020 , we completed the initial phase and barda exercised the first contract option valued at $ 10.5 million . the existing reimbursement codes support our sepsis products and anticipate the same for our lyme disease product candidates . the economic savings associated with our sepsis products are realized directly by hospitals . in the united states , we have a commercial team that is primarily targeting hospitals with the highest concentration of patients at risk for sepsis-related infections . internationally , we have primarily partnered with distributors that target large hospitals in their respective international markets . we believe our sepsis products , which include t2candida , t2bacteria , t2resistance , and t2cauris , will redefine the standard of care in sepsis management while lowering healthcare costs by improving both the precision and the speed to detection of sepsis-causing pathogens . according to a study published in the journal of clinical microbiology in 2010 , targeted therapy for patients with bloodstream infections can be delayed up to 72 hours due to the wait time for blood culture results . in another study published in clinical infectious diseases in 2012 , the delayed administration of appropriate antifungal therapy was associated with higher mortality among patients with septic shock attributed to candida infection and , on that basis , the study concluded that more rapid and accurate diagnostic techniques are needed . due to the high mortality rate associated with candida infections , physicians often will place patients on antifungal drugs while they await blood culture diagnostic results which generally take at least five days to generate a negative test result . antifungal drugs are toxic and may result in side effects and can cost over $ 50 per day . the speed to result of t2candida and t2bacteria coupled with their higher sensitivity as compared to blood culture may help reduce the overuse of ineffective , or even unnecessary , antimicrobial therapy which may reduce side effects for patients , lower hospital costs and potentially counteract the growing resistance to antimicrobial therapy . the administration of inappropriate therapy is a driving force behind the spread of antimicrobial-resistant pathogens , which the united states centers for disease control and prevention , or the cdc , recently called “ one of our most serious health threats . ” the addition of the use of our products , t2bacteria , t2candida , and t2resistance , which all run on the t2dx instrument , with the standard of care for the management of patients suspected of sepsis , enables clinicians to potentially treat 90 % of patients with sepsis pathogen infections with the right targeted therapy within the first twelve hours of development of the symptoms of disease . currently , high risk patients are typically initially treated with broad spectrum antibiotic drugs that typically cover approximately 60 % of patients with infections . of the remaining 40 % of patients , approximately 30 % of the patients typically have a bacterial infection and 10 % typically have candida infections . t2candida and t2bacteria are designed to identify pathogens commonly not covered by broad spectrum antibiotic drugs . we compete with traditional blood culture-based diagnostic companies , including becton dickinson & co. and biomerieux , inc. , as well as companies offering post-culture species identification using both molecular and non-molecular methods , including biomerieux , inc. ( and its affiliate , biofire diagnostics , inc. ) , bruker corporation , accelerate diagnostics , luminex , genmark , cepheid and beckman coulter , a danaher company . in addition , there may be a number of new market entrants in the process of developing other post-blood culture diagnostic technologies that may be perceived as competitive with our technology . karius , inc. offers a lab developed culture independent diagnostic test for the identification of pathogens that has not been cleared by the fda but may be perceived as competitive with our technology . we have never been profitable and have incurred net losses in each year since inception . our accumulated deficit at december 31 , 2020 was $ 423.0 million and we have experienced cash outflows from operating activities over the past years . substantially all of our net losses resulted from costs incurred in connection with our research and development programs and from selling , general and administrative costs associated with our operations . we have incurred significant commercialization expenses related to product sales , marketing , manufacturing and distribution of our fda-cleared products , t2dx , t2candida and t2bacteria . in addition , we will continue to incur significant costs and expenses as we continue to develop other product candidates , improve existing products and maintain , expand and protect our intellectual property portfolio . we may seek to fund our operations through public equity or private equity or debt financings , as well as other sources . however , we may be unable to raise additional funds or enter into such other arrangements when needed on favorable terms or at all . our failure to raise capital or enter into such other arrangements if and when needed would have a negative impact on our business , results of operations and financial condition and our ability to develop , commercialize and drive adoption of the t2dx instrument , t2candida , t2bacteria , t2resistance , t2sars-cov-2 and future t2mr-based diagnostics . story_separator_special_tag the increase was driven by a $ 1.2 million increase in consulting expenses primarily related to the barda contract , an increase of $ 0.2 million in lab and facility expenses primarily for the barda contract and our t2sars-cov-2 panel and higher study related expenses of $ 0.1 million for assay development . these increases were partially offset by a $ 0.8 million decrease in payroll related and travel expenses due to a reduction in headcount and lower materials costs of $ 0.1 million . selling , general and administrative expenses selling , general and administrative expenses were $ 21.3 million for the year ended december 31 , 2020 , compared to $ 27.3 million for the year ended december 31 , 2019 , a decrease of $ 6.0 million . the decrease is driven by a decrease in payroll related expenses of $ 3.8 million and travel expenses of $ 1.0 million , all of which are attributable to a reduction in headcount and travel restrictions as a result of the covid-19 pandemic . stock compensation expense decreased by $ 1.0 million due to the market based restricted stock units reaching the end of the derived service periods and a reduction in headcount . tradeshow and other marketing expenses decreased by $ 0.9 million , primarily due to the impact of the covid-19 pandemic cancellations . expenses related to systems restoration from the 2019 cyber-attack decreased by $ 0.7 million . there was $ 0.2 million less of conferences , primarily due to the covid-19 pandemic cancellations , and $ 0.1 million less dues and subscriptions . the decreases are partially offset by an increase of $ 0.6 million in it support and consulting primarily due to remediating the material weakness , an increase of $ 0.5 million in d & o insurance premiums , and a $ 0.5 million impairment charge from a vacated operating lease , and an increase of $ 0.1 million in consulting fees primarily related to temporary help related to final cyber-recovery efforts in early 2020 , compliance with section 404 of the sarbanes-oxley act and a board members search . interest income interest income was immaterial for the years ended december 31 , 2020 and 2019. interest expense interest expense was $ 5.5 million for the year ended december 31 , 2020 , compared to $ 7.3 million for the year ended december 31 , 2019. interest expense decreased by $ 1.8 million primarily due to the change in fair value of the derivative associated with the crg term loan agreement . 65 other income , net other income , net , was $ 0.1 million for the year ended december 31 , 2020 , compared to $ 0.4 million for the year ended december 31 , 2019. other income , net , decreased $ 0.3 million primarily due to decreased dividend and other investment income . liquidity and capital resources we have incurred losses and cumulative negative cash flows from operations since our inception , and as of december 31 , 2020 and 2019 we had an accumulated deficit of $ 423.0 million and $ 376.2 million respectively . having obtained clearance from the fda and a ce mark in europe to market the t2dx , t2candida , and t2bacteria , we have incurred significant commercialization expenses related to product sales , marketing , manufacturing and distribution . we may seek to continue to fund our operations through public equity or private equity or debt financings , as well as other sources . however , we may be unable to raise additional funds or enter into such other arrangements when needed on favorable terms or at all . our failure to raise capital or enter into such other arrangements if and when needed would have a negative impact on our business , results of operations and financial condition and our ability to develop and commercialize t2dx , t2candida , t2bacteria , t2sars-cov-2 and other product candidates . historically , we have funded our operations primarily through our august 2014 initial public offering , our december 2015 public offering , our september 2016 private investment in public equity ( “ pipe ” ) financing , our september 2017 public offering , our june 2018 public offering , our july 2019 establishment of an equity distribution agreement and equity purchase agreement ( note 7 ) , private placements of redeemable convertible preferred stock and debt financing arrangements . equity distribution agreement on july 30 , 2019 , we entered into an equity distribution agreement ( the “ sales agreement ” ) with canaccord genuity llc , as agent ( “ canaccord ” ) , pursuant to which we may offer and sell shares of common stock in an “ at the market offering ” as defined in rule 415 ( a ) ( 4 ) of the securities act , for aggregate gross sale proceeds of up to $ 30.0 million from time to time through canaccord . on march 9 , 2020 , we entered into an amendment to the sales agreement to increase the aggregate gross sales amount from $ 30.0 million to $ 65.0 million . on april 8 , 2020 , we entered into an amendment to the sales agreement to increase the aggregate gross sales amount from $ 65.0 million to $ 95.0 million . as of december 31 , 2020 , we had sold 101,606,667 shares of common stock with an aggregate gross sales amount of $ 95.0 million . we had agreed to pay canaccord for its services of acting as agent 3 % of the gross proceeds from the sale of the shares pursuant to the sales agreement . legal and accounting fees were reclassified to share capital upon issuance of shares under the sales agreement . purchase agreement on july 29 , 2019 , we entered into a $ 30.0 million purchase agreement ( the “ purchase agreement ” ) with lincoln park capital fund

in addition , a $ 1.1 million increase in depreciation and amortization expense attributable to our purchase of water transfer assets also contributed to the increase in net loss in 2016. adjusted ebitda for the year ended december 31 , 2016 was a negative $ 3.3 million as compared to $ 6.3 million in 2015. for further details on the calculation of adjusted ebitda see adjusted ebitda section below . industry overview the low crude oil prices since july 2014 that continued through 2016 resulted in our customers significantly scaling back drilling and completion programs , shifting capital resources to higher margin basins , requiring substantial concessions from vendors , and reducing or delaying certain maintenance related work to preserve capital . further , the overall reduction in drilling , completion and service work resulted in more service vendors seeking fewer jobs putting even further downward pressure on the pricing of services . some competitors responded by pricing work at what we believe to be negative margins . although the company has been able to partially mitigate the impact of the operating environment by deploying resources to more active customers and basins , our revenue growth and operating margins have been significantly negatively impacted by reduced overall demand for our services , requiring pricing concessions and the delay of hot oiling and acidizing maintenance work . many customers implemented capital spending programs at the beginning of 2016 and some customers suspended drilling and completion programs altogether until oil and natural gas prices recover and stabilize at an economical price for continuing operations . in addition , some customers delayed their routine hot oiling and acidizing maintenance work . crude prices and the north american rig count have increased significantly since the low points in february 2016 and may 2016 , respectively , signaling that the industry downturn may have hit bottom and begun a market recovery . in the fourth quarter of 2016 , the average united states rig count increased 23 % compared to the third quarter , and we started to see a pickup in completion and production maintenance service activity towards the end of the fourth quarter . segment overview enservco 's reportable business segments are well enhancement services , water transfer services , water hauling services , and construction services . these segments have been selected based on changes in management 's resource allocation and performance assessment in making decisions regarding the company . the following is a description of the segments : well enhancement services : this segment utilizes a fleet of frac water heating units , hot oil trucks and acidizing units to provide well enhancement and completion services to the domestic oil and gas industry . these services include frac water heating , hot oil services , pressure testing , and acidizing services . 35 water transfer services : this segment utilizes high and low volume pumps , lay flat hose , aluminum pipe and manifolds and related equipment to move fresh and or recycled water from a water source such as a pond , lake , river , stream , or water storage facility to frac tanks at drilling locations to be used in connection with well completion activities . also included in this segment are water treatment services whereby to remove bacteria and scale from water , the company uses patented hydropath technology under an agreement with hydroflow usa . water hauling services : this segment utilizes a fleet of trucks and related assets , including specialized tank trucks , vacuum trailers , storage tanks , and disposal facilities to provide various water hauling services . these services are primarily provided by dillco in the hugoton area in kansas and oklahoma . construction services : this segment utilizes a fleet of trucks and equipment to provide supplementary construction and roustabout services to the oil and gas and construction industry . in 2016 , the company started utilizing this fleet of equipment to provide dirt hauling services to a general construction contractor in colorado . segment results : the following tables set forth revenue from operations and segment profits for the company 's business segments for the fiscal years ended december 31 , 2016 and 2015 : replace_table_token_2_th replace_table_token_3_th well enhancement services : for 2016 , well enhancement service revenue declined $ 15.0 million , or 46 % , to $ 17.9 million . a significant decline in demand for our frac water heating services due to unseasonably warm weather in our two largest frac water heating markets ( d-j/niobrara and marcellus/utica ) and the overall decline in drilling and completions activity related to low oil and natural gas price were the primary reasons for the decline in revenues . these declines were partially offset by $ 2.3 million of incremental revenues from our geographic expansion into the texas area . 36 frac water heating revenues for the year ended december 31 , 2016 declined 64 % to $ 6.7 million as compared to $ 18.3 million in 2015. unseasonably warm winter weather in the dj basin and marcellus/utica basin in the first and fourth quarters of 2016 significantly reduced demand for our frac water heating services in these , our two largest frac heating markets . our eastern usa region was hit particularly hard as sufficiently cold weather did not materialize in first and fourth quarter 2016 , contributing to a $ 3.8 million , or 83 % , decline in heating revenues in the marcellus/utica shale basin . further , industry wide declines in drilling and completion programs due to low oil and natural gas prices and price concessions issued to customers also contributed to the annual decline in frac heating revenues . story_separator_special_tag we use , and we believe investors benefit from the presentation of , ebitda and adjusted ebitda in evaluating our operating performance because it provides us and our investors with an additional tool to compare our operating performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect our core operations . we believe that ebitda is useful to investors and other external users of our financial statements in evaluating our operating performance because ebitda is widely used by investors to measure a company 's operating performance without regard to items such as interest expense , taxes , and depreciation and amortization , which can vary substantially from company to company depending upon accounting methods and book value of assets , capital structure and the method by which assets were acquired . additionally , our leverage and fixed charge ratio covenants associated with our 2014 credit agreement require the use of adjusted ebitda in specific calculations . because not all companies use identical calculations , the company 's presentation of non-gaap financial measures may not be comparable to other similarly titled measures of other companies . however , these measures can still be useful in evaluating the company 's performance against its peer companies because management believes the measures provide users with valuable insight into key components of gaap financial disclosures . changes in adjusted ebitda * adjusted ebitda from operations declined $ 9.6 million to a negative $ 3.3 million for the year ended december 31 , 2016 as compared to a positive $ 6.3 million for 2015. this decrease was primarily due to the $ 10.2 million decline in segment profit discussed above . 42 story_separator_special_tag under the revolving credit facility . liquidity : as of december 31 , 2016 , the company 's available liquidity was $ 5.15 million , which was substantially comprised of $ 4.5 million of availability on the credit facility and $ 620,000 in cash . the company continues to borrow from the credit facility to fund working capital requirements . as of march 3 , 2017 , our liquidity decreased by $ 545,000 which consisted of credit facility availability of $ 3.06 million and cash of $ 542,000 . 44 the company has incurred substantial losses from years ended december 31 , 2016 and 2015 and negative cash from operations in 2016 of $ 1.9 million . the company 's current operating plan indicates that it will continue to incur losses from operations . as noted above , the tenth amendment to the company 's 2014 credit agreement with pnc has modified the maturity date of the loan balance to april 30 , 2018. thus , beginning in may 2017 , the entire loan balance ( approximately $ 25.7 million as of march 28 , 2017 ) will be classified as a current liability . the company is exploring alternatives for other sources of capital and for ongoing liquidity needs to enhance its ability to comply with the financial covenants under its credit agreement and fund obligations . the company is working to improve its operating performance and its cash , liquidity and financial position . this includes : ( i ) improving labor and equipment utilization rates ; ( ii ) selling certain assets of the company ; and ( iii ) exploring new bank relationships . however , there can be no assurance that management 's plan to improve the company 's operating performance and financial position will be successful or that the company will be able to obtain additional financing or more favorable covenant requirements . as a result , the company 's ability to pay its obligation and meet its covenant requirement can be adversely affected . working capital : as of december 31 , 2016 , the company had working capital of approximately $ 3.04 million as compared to $ 6.23 million at our 2015 fiscal year end . the decrease in working capital was primarily attributable to a decrease in accounts receivable of $ 2.2 million due to lower frac water heating revenues during the fourth quarter of 2016 as compared to the fourth quarter last year due to warmer weather . further , working capital decreased as a result of an increase in accounts payable and accrued liabilities of $ 640,000 due to extending vendor payments . cash flow from operating activities : cash flow from operating activities for the year ended december 31 , 2016 decreased $ 14.1 million to a cash used in operating activities of $ 2.0 million as compared to cash provided by operating activities of $ 12.1 million during 2015 primarily due to the $ 10.7 million increase in pre-tax net loss and changes in working capital associated with lower revenues . cash flow used in investing activities : cash flow used in investing activities for the fiscal year ended december 31 , 2016 was $ 4.7 million as compared to $ 4.5 million during the comparable period last year . during 2016 , the company purchased $ 4.3 million of water transfer assets from wet and hiit . during 2015 , the company used $ 4.5 million of cash flow to complete the fabrication of equipment from the 2014 capex program . cash flow from financing activities : cash provided in financing activities for fiscal year ended december 31 , 2016 was $ 6.5 million as compared to cash used in financing activities of $ 7.8 million for the year ended 2015. during 2016 , the company completed a secondary stock issuance which provided the company gross proceeds of $ 5.2 million which was offset by stock issuance costs for net proceeds of $ 4.4 million . during 2016 , the company made principal payments of $ 13.9 million to the pnc senior revolving credit facility compared to $ 24.7 million in 2015 . 45 outlook : the current oil and gas environment provides a great opportunity for us to optimize

liquidity and capital resources the following table summarizes our statements of cash flows for the years ended december 31 , 2016 and 2015 and ( combined with the working capital table and discussion below ) is important for understanding our liquidity : replace_table_token_6_th the following table sets forth a summary of certain aspects of our balance sheets at december 31 , 2016 and 2015 : replace_table_token_7_th overview : we have relied on cash flow from operations , borrowings under our revolving credit agreements , and equity offerings to satisfy our liquidity needs . our ability to fund operating cash flow shortfalls , fund capital expenditures , and make acquisitions will depend upon our future operating performance and on the availability of equity and debt financing . at december 31 , 2016 , we had approximately $ 621,000 of cash and cash equivalents and approximately $ 4.5 million available under our asset based senior revolving credit facility . in september 2014 , the company entered into an amended and restated revolving credit and security agreement ( the “ 2014 credit agreement ” ) with pnc bank , national association ( “ pnc ” ) which provides for a five-year $ 30 million senior secured revolving credit facility . the facility allowed the company to borrow up to 85 % of eligible receivables , 85 % of the appraised value of trucks and equipment , and up to 90 % of the cost of new equipment . the company had the option to pay variable interest rate based on ( a ) 1 , 2 or 3 month libor plus applicable margin ranging from 2.50 % to 3.50 % for libor rate loans or ( b ) interest at pnc base rate plus applicable margin of 1.00 % to 2.00 % for domestic rate loans .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources the following table summarizes our statements of cash flows for the years ended december 31 , 2016 and 2015 and ( combined with the working capital table and discussion below ) is important for understanding our liquidity : replace_table_token_6_th the following table sets forth a summary of certain aspects of our balance sheets at december 31 , 2016 and 2015 : replace_table_token_7_th overview : we have relied on cash flow from operations , borrowings under our revolving credit agreements , and equity offerings to satisfy our liquidity needs . our ability to fund operating cash flow shortfalls , fund capital expenditures , and make acquisitions will depend upon our future operating performance and on the availability of equity and debt financing . at december 31 , 2016 , we had approximately $ 621,000 of cash and cash equivalents and approximately $ 4.5 million available under our asset based senior revolving credit facility . in september 2014 , the company entered into an amended and restated revolving credit and security agreement ( the “ 2014 credit agreement ” ) with pnc bank , national association ( “ pnc ” ) which provides for a five-year $ 30 million senior secured revolving credit facility . the facility allowed the company to borrow up to 85 % of eligible receivables , 85 % of the appraised value of trucks and equipment , and up to 90 % of the cost of new equipment . the company had the option to pay variable interest rate based on ( a ) 1 , 2 or 3 month libor plus applicable margin ranging from 2.50 % to 3.50 % for libor rate loans or ( b ) interest at pnc base rate plus applicable margin of 1.00 % to 2.00 % for domestic rate loans . ``` Suspicious Activity Report : in addition , a $ 1.1 million increase in depreciation and amortization expense attributable to our purchase of water transfer assets also contributed to the increase in net loss in 2016. adjusted ebitda for the year ended december 31 , 2016 was a negative $ 3.3 million as compared to $ 6.3 million in 2015. for further details on the calculation of adjusted ebitda see adjusted ebitda section below . industry overview the low crude oil prices since july 2014 that continued through 2016 resulted in our customers significantly scaling back drilling and completion programs , shifting capital resources to higher margin basins , requiring substantial concessions from vendors , and reducing or delaying certain maintenance related work to preserve capital . further , the overall reduction in drilling , completion and service work resulted in more service vendors seeking fewer jobs putting even further downward pressure on the pricing of services . some competitors responded by pricing work at what we believe to be negative margins . although the company has been able to partially mitigate the impact of the operating environment by deploying resources to more active customers and basins , our revenue growth and operating margins have been significantly negatively impacted by reduced overall demand for our services , requiring pricing concessions and the delay of hot oiling and acidizing maintenance work . many customers implemented capital spending programs at the beginning of 2016 and some customers suspended drilling and completion programs altogether until oil and natural gas prices recover and stabilize at an economical price for continuing operations . in addition , some customers delayed their routine hot oiling and acidizing maintenance work . crude prices and the north american rig count have increased significantly since the low points in february 2016 and may 2016 , respectively , signaling that the industry downturn may have hit bottom and begun a market recovery . in the fourth quarter of 2016 , the average united states rig count increased 23 % compared to the third quarter , and we started to see a pickup in completion and production maintenance service activity towards the end of the fourth quarter . segment overview enservco 's reportable business segments are well enhancement services , water transfer services , water hauling services , and construction services . these segments have been selected based on changes in management 's resource allocation and performance assessment in making decisions regarding the company . the following is a description of the segments : well enhancement services : this segment utilizes a fleet of frac water heating units , hot oil trucks and acidizing units to provide well enhancement and completion services to the domestic oil and gas industry . these services include frac water heating , hot oil services , pressure testing , and acidizing services . 35 water transfer services : this segment utilizes high and low volume pumps , lay flat hose , aluminum pipe and manifolds and related equipment to move fresh and or recycled water from a water source such as a pond , lake , river , stream , or water storage facility to frac tanks at drilling locations to be used in connection with well completion activities . also included in this segment are water treatment services whereby to remove bacteria and scale from water , the company uses patented hydropath technology under an agreement with hydroflow usa . water hauling services : this segment utilizes a fleet of trucks and related assets , including specialized tank trucks , vacuum trailers , storage tanks , and disposal facilities to provide various water hauling services . these services are primarily provided by dillco in the hugoton area in kansas and oklahoma . construction services : this segment utilizes a fleet of trucks and equipment to provide supplementary construction and roustabout services to the oil and gas and construction industry . in 2016 , the company started utilizing this fleet of equipment to provide dirt hauling services to a general construction contractor in colorado . segment results : the following tables set forth revenue from operations and segment profits for the company 's business segments for the fiscal years ended december 31 , 2016 and 2015 : replace_table_token_2_th replace_table_token_3_th well enhancement services : for 2016 , well enhancement service revenue declined $ 15.0 million , or 46 % , to $ 17.9 million . a significant decline in demand for our frac water heating services due to unseasonably warm weather in our two largest frac water heating markets ( d-j/niobrara and marcellus/utica ) and the overall decline in drilling and completions activity related to low oil and natural gas price were the primary reasons for the decline in revenues . these declines were partially offset by $ 2.3 million of incremental revenues from our geographic expansion into the texas area . 36 frac water heating revenues for the year ended december 31 , 2016 declined 64 % to $ 6.7 million as compared to $ 18.3 million in 2015. unseasonably warm winter weather in the dj basin and marcellus/utica basin in the first and fourth quarters of 2016 significantly reduced demand for our frac water heating services in these , our two largest frac heating markets . our eastern usa region was hit particularly hard as sufficiently cold weather did not materialize in first and fourth quarter 2016 , contributing to a $ 3.8 million , or 83 % , decline in heating revenues in the marcellus/utica shale basin . further , industry wide declines in drilling and completion programs due to low oil and natural gas prices and price concessions issued to customers also contributed to the annual decline in frac heating revenues . story_separator_special_tag we use , and we believe investors benefit from the presentation of , ebitda and adjusted ebitda in evaluating our operating performance because it provides us and our investors with an additional tool to compare our operating performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect our core operations . we believe that ebitda is useful to investors and other external users of our financial statements in evaluating our operating performance because ebitda is widely used by investors to measure a company 's operating performance without regard to items such as interest expense , taxes , and depreciation and amortization , which can vary substantially from company to company depending upon accounting methods and book value of assets , capital structure and the method by which assets were acquired . additionally , our leverage and fixed charge ratio covenants associated with our 2014 credit agreement require the use of adjusted ebitda in specific calculations . because not all companies use identical calculations , the company 's presentation of non-gaap financial measures may not be comparable to other similarly titled measures of other companies . however , these measures can still be useful in evaluating the company 's performance against its peer companies because management believes the measures provide users with valuable insight into key components of gaap financial disclosures . changes in adjusted ebitda * adjusted ebitda from operations declined $ 9.6 million to a negative $ 3.3 million for the year ended december 31 , 2016 as compared to a positive $ 6.3 million for 2015. this decrease was primarily due to the $ 10.2 million decline in segment profit discussed above . 42 story_separator_special_tag under the revolving credit facility . liquidity : as of december 31 , 2016 , the company 's available liquidity was $ 5.15 million , which was substantially comprised of $ 4.5 million of availability on the credit facility and $ 620,000 in cash . the company continues to borrow from the credit facility to fund working capital requirements . as of march 3 , 2017 , our liquidity decreased by $ 545,000 which consisted of credit facility availability of $ 3.06 million and cash of $ 542,000 . 44 the company has incurred substantial losses from years ended december 31 , 2016 and 2015 and negative cash from operations in 2016 of $ 1.9 million . the company 's current operating plan indicates that it will continue to incur losses from operations . as noted above , the tenth amendment to the company 's 2014 credit agreement with pnc has modified the maturity date of the loan balance to april 30 , 2018. thus , beginning in may 2017 , the entire loan balance ( approximately $ 25.7 million as of march 28 , 2017 ) will be classified as a current liability . the company is exploring alternatives for other sources of capital and for ongoing liquidity needs to enhance its ability to comply with the financial covenants under its credit agreement and fund obligations . the company is working to improve its operating performance and its cash , liquidity and financial position . this includes : ( i ) improving labor and equipment utilization rates ; ( ii ) selling certain assets of the company ; and ( iii ) exploring new bank relationships . however , there can be no assurance that management 's plan to improve the company 's operating performance and financial position will be successful or that the company will be able to obtain additional financing or more favorable covenant requirements . as a result , the company 's ability to pay its obligation and meet its covenant requirement can be adversely affected . working capital : as of december 31 , 2016 , the company had working capital of approximately $ 3.04 million as compared to $ 6.23 million at our 2015 fiscal year end . the decrease in working capital was primarily attributable to a decrease in accounts receivable of $ 2.2 million due to lower frac water heating revenues during the fourth quarter of 2016 as compared to the fourth quarter last year due to warmer weather . further , working capital decreased as a result of an increase in accounts payable and accrued liabilities of $ 640,000 due to extending vendor payments . cash flow from operating activities : cash flow from operating activities for the year ended december 31 , 2016 decreased $ 14.1 million to a cash used in operating activities of $ 2.0 million as compared to cash provided by operating activities of $ 12.1 million during 2015 primarily due to the $ 10.7 million increase in pre-tax net loss and changes in working capital associated with lower revenues . cash flow used in investing activities : cash flow used in investing activities for the fiscal year ended december 31 , 2016 was $ 4.7 million as compared to $ 4.5 million during the comparable period last year . during 2016 , the company purchased $ 4.3 million of water transfer assets from wet and hiit . during 2015 , the company used $ 4.5 million of cash flow to complete the fabrication of equipment from the 2014 capex program . cash flow from financing activities : cash provided in financing activities for fiscal year ended december 31 , 2016 was $ 6.5 million as compared to cash used in financing activities of $ 7.8 million for the year ended 2015. during 2016 , the company completed a secondary stock issuance which provided the company gross proceeds of $ 5.2 million which was offset by stock issuance costs for net proceeds of $ 4.4 million . during 2016 , the company made principal payments of $ 13.9 million to the pnc senior revolving credit facility compared to $ 24.7 million in 2015 . 45 outlook : the current oil and gas environment provides a great opportunity for us to optimize

the lease expires in october 2020 and provides for monthly rent of $ 8,809 . we believe that the monthly rent is commensurate with other properties available in the market . marketing and advisory services agreement with all def digital in april 2015 , the company entered into a strategic marketing and advisory services agreement ( the “ advisory services agreement ” ) with all def digital . tim leissner , a director of the company is also a director of all def digital . the company has paid all def digital $ 152,438 and $ 237,959 for services rendered pursuant to the advisory services agreement during the years ended december 31 , 2015 and 2016 , respectively . loan and security agreement with cd financial we originally entered into a loan and security agreement with cd financial in july 2010 , which provided us with a line of credit to fund operations . as amended in connection with a private investment transaction consummated in april 2015 , the loan and security agreement provides celsius with a revolving line of credit pursuant to which celsius can borrow up to an aggregate maximum of $ 4.5 million from time to time until maturity in january 2020. the credit facility requires quarterly cash payments of interest only at the rate of five percent ( 5 % ) per annum until maturity and is secured by a pledge of substantially all the company 's assets . as of december 31 , 2016 , the principal amount outstanding under the credit facility with cd financial was $ 4.5 million . private offering between december 30 , 2016 and march 14 , 2017 , the company raised an aggregate of $ 15.0 million in capital through the sale of an aggregate of 4,833,329 shares of our common stock at a purchase price of $ 3.00 per share in a private offering to 13 accredited investors . investors in the private placement included : · cd financial ( 533,333 shares ) ; · charmnew limited ( 800,000 shares ) , an existing shareholder of record affiliated with li ka shing , one of our principal shareholders ; · grieg international limited ( 533,333 shares ) , an existing shareholder of record affiliated with chau hoi shuen solina , one of our principal shareholders ; and · nu horizons investment group , llc ( 433,333 shares ) , an existing shareholder of record affiliated with tim leissner , story_separator_special_tag you should read the following discussion in conjunction with the audited financial statements and the corresponding notes , the unaudited financial statements and the corresponding notes included elsewhere in this information statement . this item 7 contains forward-looking statements . the matters discussed in these forward-looking statements are subject to risk , uncertainties , and other factors that could cause actual results to differ materially from those made , projected or implied in the forward-looking statements . please refer to `` item 1a . risk factors `` for a discussion of the uncertainties , risks and assumptions associated with these statements . results of operations year ended december 31 , 2016 compared to year ended december 31 , 2015 revenue for the year ended december 31 , 2016 , revenue was approximately $ 22.8 million , an increase of $ 5.6 million or 33 % from $ 17.2 million in revenue for year ending december 31 , 2015. this revenue growth was mainly associated with blended growth rates of 4 % in international revenues and 59 % in domestic sales . the domestic sales growth of 59 % from 2015 to 2016 was mainly associated from blended growth rates of 70 % from retail accounts , 51 % from health and fitness accounts and 26 % from internet retailer accounts . the overall increase in revenue from 2015 to 2016 was primarily attributable to an increase in sales volume , as opposed to increases in product pricing . 19 the following table sets forth the amount of revenues by category and changes therein for the years ended december 31 , 2016 and 2015 : replace_table_token_2_th gross profit for the year ended december 31 , 2016 , gross profit increased by approximately $ 2.7 million or 39 % to $ 9.7 million compared to $ 7.0 million for 2015. gross profit margins improved 1.9 % to 42.8 % in the year ended december 31 , 2016 from 40.9 % in 2015. the increases in gross profit and the improvement in gross profit margins from 2015 to 2016 are primarily attributable to the increases in revenue and a reduction in the cost of raw materials . sales and marketing expenses sales and marketing expenses for the year ended december 31 , 2016 , were approximately $ 8.7 million , an increase of $ 3.0 million , or 53 % from $ 5.7 million in 2015. the increase is due primarily to increases in investments in marketing programs of $ 1.2 million , increases in human resource investments of $ 1.5 million and increases in related sales expenses totaling $ 360,000. general and administrative expenses general and administrative expenses for the year ended december 31 , 2016 were approximately $ 3.9 million , an increase of $ 730,000 , or 23 % , from $ 3.2 million for the year ended december 31 , 2015. the increase was primarily due to increases in professional fees of $ 430,000 relating in part to the company 's status as a fully reporting company under the exchange act , office related costs of $ 110,000 , investor relations costs of $ 130,000 , human resources costs of $ 120,000 , increased travel costs of $ 130,000 , bad debt expense of $ 70,000 , research and development costs of $ 20,000 and other general administration expenses , offset by savings in stock based compensation expenses of $ 250,000 and depreciation and amortization of $ 20,000. other expense total other expense decreased by approximately $ story_separator_special_tag the lease expires in october 2020 and provides for monthly rent of $ 8,809 . we believe that the monthly rent is commensurate with other properties available in the market . marketing and advisory services agreement with all def digital in april 2015 , the company entered into a strategic marketing and advisory services agreement ( the “ advisory services agreement ” ) with all def digital . tim leissner , a director of the company is also a director of all def digital . the company has paid all def digital $ 152,438 and $ 237,959 for services rendered pursuant to the advisory services agreement during the years ended december 31 , 2015 and 2016 , respectively . loan and security agreement with cd financial we originally entered into a loan and security agreement with cd financial in july 2010 , which provided us with a line of credit to fund operations . as amended in connection with a private investment transaction consummated in april 2015 , the loan and security agreement provides celsius with a revolving line of credit pursuant to which celsius can borrow up to an aggregate maximum of $ 4.5 million from time to time until maturity in january 2020. the credit facility requires quarterly cash payments of interest only at the rate of five percent ( 5 % ) per annum until maturity and is secured by a pledge of substantially all the company 's assets . as of december 31 , 2016 , the principal amount outstanding under the credit facility with cd financial was $ 4.5 million . private offering between december 30 , 2016 and march 14 , 2017 , the company raised an aggregate of $ 15.0 million in capital through the sale of an aggregate of 4,833,329 shares of our common stock at a purchase price of $ 3.00 per share in a private offering to 13 accredited investors . investors in the private placement included : · cd financial ( 533,333 shares ) ; · charmnew limited ( 800,000 shares ) , an existing shareholder of record affiliated with li ka shing , one of our principal shareholders ; · grieg international limited ( 533,333 shares ) , an existing shareholder of record affiliated with chau hoi shuen solina , one of our principal shareholders ; and · nu horizons investment group , llc ( 433,333 shares ) , an existing shareholder of record affiliated with tim leissner , story_separator_special_tag you should read the following discussion in conjunction with the audited financial statements and the corresponding notes , the unaudited financial statements and the corresponding notes included elsewhere in this information statement . this item 7 contains forward-looking statements . the matters discussed in these forward-looking statements are subject to risk , uncertainties , and other factors that could cause actual results to differ materially from those made , projected or implied in the forward-looking statements . please refer to `` item 1a . risk factors `` for a discussion of the uncertainties , risks and assumptions associated with these statements . results of operations year ended december 31 , 2016 compared to year ended december 31 , 2015 revenue for the year ended december 31 , 2016 , revenue was approximately $ 22.8 million , an increase of $ 5.6 million or 33 % from $ 17.2 million in revenue for year ending december 31 , 2015. this revenue growth was mainly associated with blended growth rates of 4 % in international revenues and 59 % in domestic sales . the domestic sales growth of 59 % from 2015 to 2016 was mainly associated from blended growth rates of 70 % from retail accounts , 51 % from health and fitness accounts and 26 % from internet retailer accounts . the overall increase in revenue from 2015 to 2016 was primarily attributable to an increase in sales volume , as opposed to increases in product pricing . 19 the following table sets forth the amount of revenues by category and changes therein for the years ended december 31 , 2016 and 2015 : replace_table_token_2_th gross profit for the year ended december 31 , 2016 , gross profit increased by approximately $ 2.7 million or 39 % to $ 9.7 million compared to $ 7.0 million for 2015. gross profit margins improved 1.9 % to 42.8 % in the year ended december 31 , 2016 from 40.9 % in 2015. the increases in gross profit and the improvement in gross profit margins from 2015 to 2016 are primarily attributable to the increases in revenue and a reduction in the cost of raw materials . sales and marketing expenses sales and marketing expenses for the year ended december 31 , 2016 , were approximately $ 8.7 million , an increase of $ 3.0 million , or 53 % from $ 5.7 million in 2015. the increase is due primarily to increases in investments in marketing programs of $ 1.2 million , increases in human resource investments of $ 1.5 million and increases in related sales expenses totaling $ 360,000. general and administrative expenses general and administrative expenses for the year ended december 31 , 2016 were approximately $ 3.9 million , an increase of $ 730,000 , or 23 % , from $ 3.2 million for the year ended december 31 , 2015. the increase was primarily due to increases in professional fees of $ 430,000 relating in part to the company 's status as a fully reporting company under the exchange act , office related costs of $ 110,000 , investor relations costs of $ 130,000 , human resources costs of $ 120,000 , increased travel costs of $ 130,000 , bad debt expense of $ 70,000 , research and development costs of $ 20,000 and other general administration expenses , offset by savings in stock based compensation expenses of $ 250,000 and depreciation and amortization of $ 20,000. other expense total other expense decreased by approximately $

liquidity and capital resources as of december 31 , 2016 and 2015 , we had cash of approximately $ 11.7 million and $ 10.1 million , respectively and working capital of approximately $ 15.4 million and $ 13.2 million , respectively . cash used in operations during the years ended december 31 , 2016 and 2015 , totaled approximately $ 2.4 million and $ 755,000 , respectively , reflecting capital investments in sales and marketing programs and human resources initiatives . in addition to cash flow from operations , our primary sources of working capital have been private placements of our securities and our credit facility with cd financial , llc ( “ cd financial ” ) , an affiliate of carl desantis , a principal shareholder of the company . we originally entered into a loan and security agreement with cd financial in july 2010 , which provided us with a line of credit to fund operations . as amended in connection with a private investment transaction consummated in april 2015 , the loan and security agreement provides celsius with a revolving line of credit pursuant to which celsius can borrow up to an aggregate maximum of $ 4.5 million from time to time until maturity in january 2020. the credit facility requires quarterly cash payments of interest only at the rate of five percent ( 5 % ) per annum until maturity and is secured by a pledge of substantially all the company 's assets . as of december 31 , 2016 , the principal amount outstanding under the credit facility with cd financial was $ 4.5 million .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources as of december 31 , 2016 and 2015 , we had cash of approximately $ 11.7 million and $ 10.1 million , respectively and working capital of approximately $ 15.4 million and $ 13.2 million , respectively . cash used in operations during the years ended december 31 , 2016 and 2015 , totaled approximately $ 2.4 million and $ 755,000 , respectively , reflecting capital investments in sales and marketing programs and human resources initiatives . in addition to cash flow from operations , our primary sources of working capital have been private placements of our securities and our credit facility with cd financial , llc ( “ cd financial ” ) , an affiliate of carl desantis , a principal shareholder of the company . we originally entered into a loan and security agreement with cd financial in july 2010 , which provided us with a line of credit to fund operations . as amended in connection with a private investment transaction consummated in april 2015 , the loan and security agreement provides celsius with a revolving line of credit pursuant to which celsius can borrow up to an aggregate maximum of $ 4.5 million from time to time until maturity in january 2020. the credit facility requires quarterly cash payments of interest only at the rate of five percent ( 5 % ) per annum until maturity and is secured by a pledge of substantially all the company 's assets . as of december 31 , 2016 , the principal amount outstanding under the credit facility with cd financial was $ 4.5 million . ``` Suspicious Activity Report : the lease expires in october 2020 and provides for monthly rent of $ 8,809 . we believe that the monthly rent is commensurate with other properties available in the market . marketing and advisory services agreement with all def digital in april 2015 , the company entered into a strategic marketing and advisory services agreement ( the “ advisory services agreement ” ) with all def digital . tim leissner , a director of the company is also a director of all def digital . the company has paid all def digital $ 152,438 and $ 237,959 for services rendered pursuant to the advisory services agreement during the years ended december 31 , 2015 and 2016 , respectively . loan and security agreement with cd financial we originally entered into a loan and security agreement with cd financial in july 2010 , which provided us with a line of credit to fund operations . as amended in connection with a private investment transaction consummated in april 2015 , the loan and security agreement provides celsius with a revolving line of credit pursuant to which celsius can borrow up to an aggregate maximum of $ 4.5 million from time to time until maturity in january 2020. the credit facility requires quarterly cash payments of interest only at the rate of five percent ( 5 % ) per annum until maturity and is secured by a pledge of substantially all the company 's assets . as of december 31 , 2016 , the principal amount outstanding under the credit facility with cd financial was $ 4.5 million . private offering between december 30 , 2016 and march 14 , 2017 , the company raised an aggregate of $ 15.0 million in capital through the sale of an aggregate of 4,833,329 shares of our common stock at a purchase price of $ 3.00 per share in a private offering to 13 accredited investors . investors in the private placement included : · cd financial ( 533,333 shares ) ; · charmnew limited ( 800,000 shares ) , an existing shareholder of record affiliated with li ka shing , one of our principal shareholders ; · grieg international limited ( 533,333 shares ) , an existing shareholder of record affiliated with chau hoi shuen solina , one of our principal shareholders ; and · nu horizons investment group , llc ( 433,333 shares ) , an existing shareholder of record affiliated with tim leissner , story_separator_special_tag you should read the following discussion in conjunction with the audited financial statements and the corresponding notes , the unaudited financial statements and the corresponding notes included elsewhere in this information statement . this item 7 contains forward-looking statements . the matters discussed in these forward-looking statements are subject to risk , uncertainties , and other factors that could cause actual results to differ materially from those made , projected or implied in the forward-looking statements . please refer to `` item 1a . risk factors `` for a discussion of the uncertainties , risks and assumptions associated with these statements . results of operations year ended december 31 , 2016 compared to year ended december 31 , 2015 revenue for the year ended december 31 , 2016 , revenue was approximately $ 22.8 million , an increase of $ 5.6 million or 33 % from $ 17.2 million in revenue for year ending december 31 , 2015. this revenue growth was mainly associated with blended growth rates of 4 % in international revenues and 59 % in domestic sales . the domestic sales growth of 59 % from 2015 to 2016 was mainly associated from blended growth rates of 70 % from retail accounts , 51 % from health and fitness accounts and 26 % from internet retailer accounts . the overall increase in revenue from 2015 to 2016 was primarily attributable to an increase in sales volume , as opposed to increases in product pricing . 19 the following table sets forth the amount of revenues by category and changes therein for the years ended december 31 , 2016 and 2015 : replace_table_token_2_th gross profit for the year ended december 31 , 2016 , gross profit increased by approximately $ 2.7 million or 39 % to $ 9.7 million compared to $ 7.0 million for 2015. gross profit margins improved 1.9 % to 42.8 % in the year ended december 31 , 2016 from 40.9 % in 2015. the increases in gross profit and the improvement in gross profit margins from 2015 to 2016 are primarily attributable to the increases in revenue and a reduction in the cost of raw materials . sales and marketing expenses sales and marketing expenses for the year ended december 31 , 2016 , were approximately $ 8.7 million , an increase of $ 3.0 million , or 53 % from $ 5.7 million in 2015. the increase is due primarily to increases in investments in marketing programs of $ 1.2 million , increases in human resource investments of $ 1.5 million and increases in related sales expenses totaling $ 360,000. general and administrative expenses general and administrative expenses for the year ended december 31 , 2016 were approximately $ 3.9 million , an increase of $ 730,000 , or 23 % , from $ 3.2 million for the year ended december 31 , 2015. the increase was primarily due to increases in professional fees of $ 430,000 relating in part to the company 's status as a fully reporting company under the exchange act , office related costs of $ 110,000 , investor relations costs of $ 130,000 , human resources costs of $ 120,000 , increased travel costs of $ 130,000 , bad debt expense of $ 70,000 , research and development costs of $ 20,000 and other general administration expenses , offset by savings in stock based compensation expenses of $ 250,000 and depreciation and amortization of $ 20,000. other expense total other expense decreased by approximately $ story_separator_special_tag the lease expires in october 2020 and provides for monthly rent of $ 8,809 . we believe that the monthly rent is commensurate with other properties available in the market . marketing and advisory services agreement with all def digital in april 2015 , the company entered into a strategic marketing and advisory services agreement ( the “ advisory services agreement ” ) with all def digital . tim leissner , a director of the company is also a director of all def digital . the company has paid all def digital $ 152,438 and $ 237,959 for services rendered pursuant to the advisory services agreement during the years ended december 31 , 2015 and 2016 , respectively . loan and security agreement with cd financial we originally entered into a loan and security agreement with cd financial in july 2010 , which provided us with a line of credit to fund operations . as amended in connection with a private investment transaction consummated in april 2015 , the loan and security agreement provides celsius with a revolving line of credit pursuant to which celsius can borrow up to an aggregate maximum of $ 4.5 million from time to time until maturity in january 2020. the credit facility requires quarterly cash payments of interest only at the rate of five percent ( 5 % ) per annum until maturity and is secured by a pledge of substantially all the company 's assets . as of december 31 , 2016 , the principal amount outstanding under the credit facility with cd financial was $ 4.5 million . private offering between december 30 , 2016 and march 14 , 2017 , the company raised an aggregate of $ 15.0 million in capital through the sale of an aggregate of 4,833,329 shares of our common stock at a purchase price of $ 3.00 per share in a private offering to 13 accredited investors . investors in the private placement included : · cd financial ( 533,333 shares ) ; · charmnew limited ( 800,000 shares ) , an existing shareholder of record affiliated with li ka shing , one of our principal shareholders ; · grieg international limited ( 533,333 shares ) , an existing shareholder of record affiliated with chau hoi shuen solina , one of our principal shareholders ; and · nu horizons investment group , llc ( 433,333 shares ) , an existing shareholder of record affiliated with tim leissner , story_separator_special_tag you should read the following discussion in conjunction with the audited financial statements and the corresponding notes , the unaudited financial statements and the corresponding notes included elsewhere in this information statement . this item 7 contains forward-looking statements . the matters discussed in these forward-looking statements are subject to risk , uncertainties , and other factors that could cause actual results to differ materially from those made , projected or implied in the forward-looking statements . please refer to `` item 1a . risk factors `` for a discussion of the uncertainties , risks and assumptions associated with these statements . results of operations year ended december 31 , 2016 compared to year ended december 31 , 2015 revenue for the year ended december 31 , 2016 , revenue was approximately $ 22.8 million , an increase of $ 5.6 million or 33 % from $ 17.2 million in revenue for year ending december 31 , 2015. this revenue growth was mainly associated with blended growth rates of 4 % in international revenues and 59 % in domestic sales . the domestic sales growth of 59 % from 2015 to 2016 was mainly associated from blended growth rates of 70 % from retail accounts , 51 % from health and fitness accounts and 26 % from internet retailer accounts . the overall increase in revenue from 2015 to 2016 was primarily attributable to an increase in sales volume , as opposed to increases in product pricing . 19 the following table sets forth the amount of revenues by category and changes therein for the years ended december 31 , 2016 and 2015 : replace_table_token_2_th gross profit for the year ended december 31 , 2016 , gross profit increased by approximately $ 2.7 million or 39 % to $ 9.7 million compared to $ 7.0 million for 2015. gross profit margins improved 1.9 % to 42.8 % in the year ended december 31 , 2016 from 40.9 % in 2015. the increases in gross profit and the improvement in gross profit margins from 2015 to 2016 are primarily attributable to the increases in revenue and a reduction in the cost of raw materials . sales and marketing expenses sales and marketing expenses for the year ended december 31 , 2016 , were approximately $ 8.7 million , an increase of $ 3.0 million , or 53 % from $ 5.7 million in 2015. the increase is due primarily to increases in investments in marketing programs of $ 1.2 million , increases in human resource investments of $ 1.5 million and increases in related sales expenses totaling $ 360,000. general and administrative expenses general and administrative expenses for the year ended december 31 , 2016 were approximately $ 3.9 million , an increase of $ 730,000 , or 23 % , from $ 3.2 million for the year ended december 31 , 2015. the increase was primarily due to increases in professional fees of $ 430,000 relating in part to the company 's status as a fully reporting company under the exchange act , office related costs of $ 110,000 , investor relations costs of $ 130,000 , human resources costs of $ 120,000 , increased travel costs of $ 130,000 , bad debt expense of $ 70,000 , research and development costs of $ 20,000 and other general administration expenses , offset by savings in stock based compensation expenses of $ 250,000 and depreciation and amortization of $ 20,000. other expense total other expense decreased by approximately $

; on july 6 , 2017 , we , through certain of our subsidiaries , amended and restated our $ 500 million , asset-based senior secured loan facility , extending the maturity to july 2022 and amending certain other terms ; on august 31 , 2017 , we announced that our board of directors ( the `` board `` ) had approved a new share repurchase program authorizing us to repurchase up to $ 1.0 billion of our common stock over an approximate four-year period expiring on september 30 , 2021 ( the `` 2017 share repurchase program `` ) and terminated the 2014 share repurchase program . during the fiscal year ended september 30 , 2017 , we repurchased and subsequently retired approximately 16.1 million shares of our common stock under the 2014 share repurchase program at an aggregate cost of $ 346.1 million ; and during the fiscal year ended september 30 , 2017 , we recorded a charge of $ 4.0 million for estimated casualty losses resulting from hurricanes that affected areas of the u.s. and puerto rico in august and september . overview description of business at september 30 , 2017 , we operated primarily through two business units , sally beauty supply , or sbs , and beauty systems group , or bsg . we believe we are the largest open-line distributor of professional beauty supplies in the u.s. based on store count . as of september 30 , 2017 , we had 4,963 company-operated stores and supplied 187 franchised stores primarily in north america and selected south american and european countries . within bsg , we also have one of the largest networks of distributor sales consultants for professional beauty products in north america . we offer a wide variety of leading third-party branded and exclusive-label professional beauty supplies , including hair color products , hair care products , styling tools , skin and nail care products and other beauty items . sbs targets retail consumers and salon professionals , while bsg exclusively targets salons and salon professionals . for the year ended september 30 , 2017 , our consolidated net sales and operating earnings were $ 3,938.3 million and $ 478.6 million , respectively . as of september 30 , 2017 , sbs had 3,763 company-operated retail stores ( generally , under the sally beauty banner ) , 2,883 of which are located in the u.s. ( including puerto rico ) , with the remaining 880 company-operated stores located in canada , mexico , the united kingdom , ireland , belgium , france , germany , the netherlands , spain , chile and peru . sbs also supplied 19 franchised stores located in the united kingdom , belgium and certain other european countries . in the u.s. and canada , our sbs stores average approximately 1,700 square feet in size and are located primarily in strip shopping centers . our sbs stores carry an extensive selection of professional beauty supplies for both retail customers and salon professionals , featuring an average of 8,000 skus of beauty products across a variety of product categories including hair color , hair care , skin and nail care , styling tools and other beauty items . our sbs stores carry leading third-party brands , such as opi® , china glaze® , wella® , clairol® , conair® and hot shot tools® , as well as an extensive selection of exclusive-label merchandise . store formats , including average size and product selection , for sbs outside the u.s. and canada vary by marketplace . for the year ended september 30 , 2017 , sbs 's net sales were $ 2,345.1 million , representing 59.5 % of consolidated net sales . as of september 30 , 2017 , bsg had 1,200 company-operated stores ( generally , under the cosmoprof banner ) , supplied 168 franchised stores and had a sales force of approximately 829 distributor sales consultants who train , educate and sell exclusively to salons and salon professionals in the u.s. , canada and mexico . company-operated bsg stores average approximately 2,600 square feet in size and are primarily located in secondary strip shopping centers . bsg stores provide a comprehensive selection of 40 beauty products featuring an average of 10,500 skus that include hair color and care , skin and nail care , styling tools and other beauty items . through bsg 's large store base and sales force , bsg is able to access a significant portion of the highly fragmented u.s. salon industry . bsg stores carry leading third-party brands such as paul mitchell® , wella® , matrix® , schwarzkopf® , kenra® , goldwell® , joico® and aquage® , intended for use in salons and for resale by the salons to their consumers . bsg is also the exclusive source for certain well-known third-party branded products pursuant to exclusive distribution agreements with certain suppliers within specified geographic territories . for the year ended september 30 , 2017 , bsg 's net sales were $ 1,593.2 million , representing 40.5 % of consolidated net sales . key industry and business trends we operate primarily within the large and growing u.s. beauty supply industry . we believe that a number of key industry and business trends and characteristics will influence our business and our financial results going forward . these key trends and characteristics are discussed elsewhere in this annual report . see `` key industry and business trends `` in item 1 of this annual report . restructuring plans in february 2017 , we announced that our board of directors had approved a comprehensive restructuring plan ( the `` 2017 restructuring plan `` ) for our businesses that includes a wide range of organizational efficiency initiatives and other cost reduction opportunities . the 2017 restructuring plan comprised the closure of four administrative offices in the u.s. and canada , reductions in both salaried and hourly workforce and certain other cost reduction activities . story_separator_special_tag sbs 's selling , general and administrative expenses increased $ 7.8 million , or 0.9 % , for the fiscal year ended september 30 , 2017 , compared to the fiscal year ended september 30 , 2016. this increase reflects higher employee compensation and compensation-related expenses of $ 10.0 million ( including wage increases for sales staff at existing stores ) , higher expenses related to recent upgrades to our information technology systems ( approximately $ 4.1 million ) , casualty losses resulting from hurricanes that impacted areas of the u.s. and puerto rico ( $ 4.0 million ) , and higher foreign currency transaction losses ( $ 2.4 million ) . these increases were partially offset by lower advertising expenses ( $ 10.2 million ) and lower sales bonuses ( $ 8.8 million ) . beauty systems group . bsg 's selling , general and administrative expenses increased $ 7.5 million , or 2.1 % , for the fiscal year ended september 30 , 2017 , compared to the fiscal year ended september 30 , 2016. the increase reflects the incremental expenses ( including rent and other occupancy-related expenses ) associated with the increase in store count described above , as well as higher employee compensation and compensation-related expenses of $ 6.7 million ( including incremental wages in connection with bsg stores added during the past 12 months and wage increases for sales staff at existing stores ) and higher expenses related to recent upgrades to our information technology and our point of sale systems , in the aggregate , of approximately $ 2.8 million . unallocated selling , general and administrative expenses . unallocated selling , general and administrative expenses , which represent certain corporate costs ( such as payroll , share-based compensation , employee benefits and travel expenses for corporate staff , certain professional fees , certain new business development expenses and corporate governance expenses ) that have not been charged to our operating segments , decreased $ 30.1 million , or 19.8 % , for the fiscal year ended september 30 , 2017 , compared to the fiscal year ended september 30 , 2016. this decrease was due primarily to lower expenses associated with the data security incidents of $ 14.6 million , lower corporate employee compensation and compensation-related expenses of $ 6.4 million ( including the absence during the current fiscal year of expenses of approximately $ 1.3 million incurred in connection with management transition plans more fully discussed in our annual report on form 10-k for the fiscal year ended september 30 , 2016 ) , lower expenses related to upgrades to our corporate information technology systems of $ 2.8 million , lower share-based compensation expense of $ 2.1 million and lower foreign currency transaction losses of $ 2.0 million . depreciation and amortization consolidated depreciation and amortization increased $ 12.7 million to $ 112.3 million for the fiscal year ended september 30 , 2017 , compared to the fiscal year ended september 30 , 2016. this increase reflects the incremental depreciation and amortization expenses associated with capital expenditures made in the preceding 12 months , mainly in connection with store openings in both operating segments , with store refreshes in the sbs segment ( primarily in the u.s. ) and with ongoing information technology upgrades . this increase was partially offset by the impact of assets that became fully depreciated in the preceding 12 months . restructuring charges during the fiscal year ended september 30 , 2017 , the company incurred charges of approximately $ 22.7 million in connection with the 2017 restructuring plan , including severance and related expenses of $ 12.1 million , facility closure expenses of $ 6.7 million and other expenses of $ 3.9 million . 47 interest expense interest expense decreased $ 11.3 million to $ 132.9 million for the fiscal year ended september 30 , 2017 , compared to the fiscal year ended september 30 , 2015. the decrease in interest expense reflects lower interest expense in the aggregate ( $ 7.2 million ) on the senior notes currently outstanding and the term loan b , compared to the senior notes outstanding prior to our refinancing of debt in december 2015 and july 2017. the decrease in interest expense also reflects a lower loss on extinguishment of debt ( approximately $ 5.3 million ) recognized in connection with our july 2017 refinancing of debt , compared to our december 2015 refinancing of debt . see note 12 of the notes to consolidated financial statements in item 8 — `` financial statements and supplementary data `` contained elsewhere in this annual report and `` liquidity and capital resources `` below for additional information about the company 's debt refinancing . the decrease in interest expense was offset in part by approximately $ 1.1 million of incremental interest expenses in connection with borrowings under the abl facility and the predecessor abl facility , as appropriate . provision for income taxes the provision for income taxes was $ 130.6 million and $ 131.1 million , and the effective income tax rate was 37.8 % and 37.0 % , for the fiscal years ended september 30 , 2017 and 2016 , respectively . the increase in our effective income tax rate for the fiscal year ended september 30 , 2017 , compared to the fiscal year ended september 30 , 2016 , is due primarily to increased losses subject to a valuation allowance in certain of our foreign operations and a non-recurring reduction in non-deductible executive compensation in the prior year . net earnings as a result of the foregoing , consolidated net earnings decreased $ 7.9 million , or 3.5 % , to $ 215.1 million for the fiscal year ended september 30 , 2017 , compared to $ 222.9 million for the fiscal year ended september 30 , 2016. diluted earnings per share for the fiscal year ended september 30 , 2017 were $ 1.56 compared to $ 1.50

net cash provided by operating activities net cash provided by operating activities during the fiscal year ended september 30 , 2017 decreased $ 6.6 million to $ 344.4 million , compared to the fiscal year ended september 30 , 2016 , due primarily to a decrease in net earnings of $ 7.9 million . net cash provided by operating activities during the fiscal year ended september 30 , 2016 increased $ 50.2 million to $ 351.0 million , compared to the fiscal year ended september 30 , 2015. the increase was due primarily to net changes in the adjustments to reconcile net earnings to net cash provided by operating activities , including depreciation and amortization expenses , net loss on extinguishment of debt , share-based compensation expense , deferred income taxes , net loss on disposal of property and equipment and excess tax benefits resulting from share-based compensation activity ( in the aggregate , $ 72.3 million ) . this increase was partially offset by a decrease in net earnings and by net changes in the components of working capital . net cash used by investing activities net cash used by investing activities during the fiscal year ended september 30 , 2017 decreased $ 85.2 million to $ 89.6 million , compared to the fiscal year ended september 30 , 2016. this decrease reflects lower capital expenditures related primarily to sbs store refreshes and lower investments in information technology upgrades in the fiscal year ended september 30 , 2017 , compared to the fiscal year ended september 30 , 2016 ( $ 61.6 million ) and less cash used for acquisitions in the fiscal year ended september 30 , 2017 ( $ 26.1 million ) , partially offset by a decrease in cash proceeds from the

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```net cash provided by operating activities net cash provided by operating activities during the fiscal year ended september 30 , 2017 decreased $ 6.6 million to $ 344.4 million , compared to the fiscal year ended september 30 , 2016 , due primarily to a decrease in net earnings of $ 7.9 million . net cash provided by operating activities during the fiscal year ended september 30 , 2016 increased $ 50.2 million to $ 351.0 million , compared to the fiscal year ended september 30 , 2015. the increase was due primarily to net changes in the adjustments to reconcile net earnings to net cash provided by operating activities , including depreciation and amortization expenses , net loss on extinguishment of debt , share-based compensation expense , deferred income taxes , net loss on disposal of property and equipment and excess tax benefits resulting from share-based compensation activity ( in the aggregate , $ 72.3 million ) . this increase was partially offset by a decrease in net earnings and by net changes in the components of working capital . net cash used by investing activities net cash used by investing activities during the fiscal year ended september 30 , 2017 decreased $ 85.2 million to $ 89.6 million , compared to the fiscal year ended september 30 , 2016. this decrease reflects lower capital expenditures related primarily to sbs store refreshes and lower investments in information technology upgrades in the fiscal year ended september 30 , 2017 , compared to the fiscal year ended september 30 , 2016 ( $ 61.6 million ) and less cash used for acquisitions in the fiscal year ended september 30 , 2017 ( $ 26.1 million ) , partially offset by a decrease in cash proceeds from the ``` Suspicious Activity Report : ; on july 6 , 2017 , we , through certain of our subsidiaries , amended and restated our $ 500 million , asset-based senior secured loan facility , extending the maturity to july 2022 and amending certain other terms ; on august 31 , 2017 , we announced that our board of directors ( the `` board `` ) had approved a new share repurchase program authorizing us to repurchase up to $ 1.0 billion of our common stock over an approximate four-year period expiring on september 30 , 2021 ( the `` 2017 share repurchase program `` ) and terminated the 2014 share repurchase program . during the fiscal year ended september 30 , 2017 , we repurchased and subsequently retired approximately 16.1 million shares of our common stock under the 2014 share repurchase program at an aggregate cost of $ 346.1 million ; and during the fiscal year ended september 30 , 2017 , we recorded a charge of $ 4.0 million for estimated casualty losses resulting from hurricanes that affected areas of the u.s. and puerto rico in august and september . overview description of business at september 30 , 2017 , we operated primarily through two business units , sally beauty supply , or sbs , and beauty systems group , or bsg . we believe we are the largest open-line distributor of professional beauty supplies in the u.s. based on store count . as of september 30 , 2017 , we had 4,963 company-operated stores and supplied 187 franchised stores primarily in north america and selected south american and european countries . within bsg , we also have one of the largest networks of distributor sales consultants for professional beauty products in north america . we offer a wide variety of leading third-party branded and exclusive-label professional beauty supplies , including hair color products , hair care products , styling tools , skin and nail care products and other beauty items . sbs targets retail consumers and salon professionals , while bsg exclusively targets salons and salon professionals . for the year ended september 30 , 2017 , our consolidated net sales and operating earnings were $ 3,938.3 million and $ 478.6 million , respectively . as of september 30 , 2017 , sbs had 3,763 company-operated retail stores ( generally , under the sally beauty banner ) , 2,883 of which are located in the u.s. ( including puerto rico ) , with the remaining 880 company-operated stores located in canada , mexico , the united kingdom , ireland , belgium , france , germany , the netherlands , spain , chile and peru . sbs also supplied 19 franchised stores located in the united kingdom , belgium and certain other european countries . in the u.s. and canada , our sbs stores average approximately 1,700 square feet in size and are located primarily in strip shopping centers . our sbs stores carry an extensive selection of professional beauty supplies for both retail customers and salon professionals , featuring an average of 8,000 skus of beauty products across a variety of product categories including hair color , hair care , skin and nail care , styling tools and other beauty items . our sbs stores carry leading third-party brands , such as opi® , china glaze® , wella® , clairol® , conair® and hot shot tools® , as well as an extensive selection of exclusive-label merchandise . store formats , including average size and product selection , for sbs outside the u.s. and canada vary by marketplace . for the year ended september 30 , 2017 , sbs 's net sales were $ 2,345.1 million , representing 59.5 % of consolidated net sales . as of september 30 , 2017 , bsg had 1,200 company-operated stores ( generally , under the cosmoprof banner ) , supplied 168 franchised stores and had a sales force of approximately 829 distributor sales consultants who train , educate and sell exclusively to salons and salon professionals in the u.s. , canada and mexico . company-operated bsg stores average approximately 2,600 square feet in size and are primarily located in secondary strip shopping centers . bsg stores provide a comprehensive selection of 40 beauty products featuring an average of 10,500 skus that include hair color and care , skin and nail care , styling tools and other beauty items . through bsg 's large store base and sales force , bsg is able to access a significant portion of the highly fragmented u.s. salon industry . bsg stores carry leading third-party brands such as paul mitchell® , wella® , matrix® , schwarzkopf® , kenra® , goldwell® , joico® and aquage® , intended for use in salons and for resale by the salons to their consumers . bsg is also the exclusive source for certain well-known third-party branded products pursuant to exclusive distribution agreements with certain suppliers within specified geographic territories . for the year ended september 30 , 2017 , bsg 's net sales were $ 1,593.2 million , representing 40.5 % of consolidated net sales . key industry and business trends we operate primarily within the large and growing u.s. beauty supply industry . we believe that a number of key industry and business trends and characteristics will influence our business and our financial results going forward . these key trends and characteristics are discussed elsewhere in this annual report . see `` key industry and business trends `` in item 1 of this annual report . restructuring plans in february 2017 , we announced that our board of directors had approved a comprehensive restructuring plan ( the `` 2017 restructuring plan `` ) for our businesses that includes a wide range of organizational efficiency initiatives and other cost reduction opportunities . the 2017 restructuring plan comprised the closure of four administrative offices in the u.s. and canada , reductions in both salaried and hourly workforce and certain other cost reduction activities . story_separator_special_tag sbs 's selling , general and administrative expenses increased $ 7.8 million , or 0.9 % , for the fiscal year ended september 30 , 2017 , compared to the fiscal year ended september 30 , 2016. this increase reflects higher employee compensation and compensation-related expenses of $ 10.0 million ( including wage increases for sales staff at existing stores ) , higher expenses related to recent upgrades to our information technology systems ( approximately $ 4.1 million ) , casualty losses resulting from hurricanes that impacted areas of the u.s. and puerto rico ( $ 4.0 million ) , and higher foreign currency transaction losses ( $ 2.4 million ) . these increases were partially offset by lower advertising expenses ( $ 10.2 million ) and lower sales bonuses ( $ 8.8 million ) . beauty systems group . bsg 's selling , general and administrative expenses increased $ 7.5 million , or 2.1 % , for the fiscal year ended september 30 , 2017 , compared to the fiscal year ended september 30 , 2016. the increase reflects the incremental expenses ( including rent and other occupancy-related expenses ) associated with the increase in store count described above , as well as higher employee compensation and compensation-related expenses of $ 6.7 million ( including incremental wages in connection with bsg stores added during the past 12 months and wage increases for sales staff at existing stores ) and higher expenses related to recent upgrades to our information technology and our point of sale systems , in the aggregate , of approximately $ 2.8 million . unallocated selling , general and administrative expenses . unallocated selling , general and administrative expenses , which represent certain corporate costs ( such as payroll , share-based compensation , employee benefits and travel expenses for corporate staff , certain professional fees , certain new business development expenses and corporate governance expenses ) that have not been charged to our operating segments , decreased $ 30.1 million , or 19.8 % , for the fiscal year ended september 30 , 2017 , compared to the fiscal year ended september 30 , 2016. this decrease was due primarily to lower expenses associated with the data security incidents of $ 14.6 million , lower corporate employee compensation and compensation-related expenses of $ 6.4 million ( including the absence during the current fiscal year of expenses of approximately $ 1.3 million incurred in connection with management transition plans more fully discussed in our annual report on form 10-k for the fiscal year ended september 30 , 2016 ) , lower expenses related to upgrades to our corporate information technology systems of $ 2.8 million , lower share-based compensation expense of $ 2.1 million and lower foreign currency transaction losses of $ 2.0 million . depreciation and amortization consolidated depreciation and amortization increased $ 12.7 million to $ 112.3 million for the fiscal year ended september 30 , 2017 , compared to the fiscal year ended september 30 , 2016. this increase reflects the incremental depreciation and amortization expenses associated with capital expenditures made in the preceding 12 months , mainly in connection with store openings in both operating segments , with store refreshes in the sbs segment ( primarily in the u.s. ) and with ongoing information technology upgrades . this increase was partially offset by the impact of assets that became fully depreciated in the preceding 12 months . restructuring charges during the fiscal year ended september 30 , 2017 , the company incurred charges of approximately $ 22.7 million in connection with the 2017 restructuring plan , including severance and related expenses of $ 12.1 million , facility closure expenses of $ 6.7 million and other expenses of $ 3.9 million . 47 interest expense interest expense decreased $ 11.3 million to $ 132.9 million for the fiscal year ended september 30 , 2017 , compared to the fiscal year ended september 30 , 2015. the decrease in interest expense reflects lower interest expense in the aggregate ( $ 7.2 million ) on the senior notes currently outstanding and the term loan b , compared to the senior notes outstanding prior to our refinancing of debt in december 2015 and july 2017. the decrease in interest expense also reflects a lower loss on extinguishment of debt ( approximately $ 5.3 million ) recognized in connection with our july 2017 refinancing of debt , compared to our december 2015 refinancing of debt . see note 12 of the notes to consolidated financial statements in item 8 — `` financial statements and supplementary data `` contained elsewhere in this annual report and `` liquidity and capital resources `` below for additional information about the company 's debt refinancing . the decrease in interest expense was offset in part by approximately $ 1.1 million of incremental interest expenses in connection with borrowings under the abl facility and the predecessor abl facility , as appropriate . provision for income taxes the provision for income taxes was $ 130.6 million and $ 131.1 million , and the effective income tax rate was 37.8 % and 37.0 % , for the fiscal years ended september 30 , 2017 and 2016 , respectively . the increase in our effective income tax rate for the fiscal year ended september 30 , 2017 , compared to the fiscal year ended september 30 , 2016 , is due primarily to increased losses subject to a valuation allowance in certain of our foreign operations and a non-recurring reduction in non-deductible executive compensation in the prior year . net earnings as a result of the foregoing , consolidated net earnings decreased $ 7.9 million , or 3.5 % , to $ 215.1 million for the fiscal year ended september 30 , 2017 , compared to $ 222.9 million for the fiscal year ended september 30 , 2016. diluted earnings per share for the fiscal year ended september 30 , 2017 were $ 1.56 compared to $ 1.50

pursuant to past conveyances and bankruptcy proceedings , linn energy , inc. ( `` linn `` ) , hilcorp san juan lp ( `` hilcorp `` ) , xto energy , inc. ( `` xto `` ) , bp amoco company ( `` bp `` ) , and red willow production company ( `` red willow `` ) are the operators of certain portions of the hugoton royalty properties and san juan basin royalty properties ( each of linn , hilcorp , xto , bp , and red willow being a `` working interest owner `` , and together , the `` working interest owners `` ) . as used in this report , linn refers to the current operator of the hugoton royalty properties , hilcorp refers to the current operator of the san juan basin—new mexico properties , and bp and red willow refer to the currents co-operators of certain tracts of land included in the san juan basin—colorado properties , unless otherwise indicated . the trust is a passive entity whose purposes are limited to : ( 1 ) converting the royalties to cash , either by retaining them and collecting the proceeds of production ( until production has ceased or the royalties are otherwise terminated ) or by selling or otherwise disposing of the royalties ; and ( 2 ) distributing such cash , net of amounts for payments of liabilities to the trust , to the unitholders . the trust has no sources of liquidity or capital resources other than the revenues , if any , attributable to the royalties and interest on cash held by the trustee as a reserve for liabilities or for distribution . the trust does not undertake or control any capital projects or make capital expenditures . while the trust 's royalty income is net of capital expenditures , these capital expenditures are controlled and paid by the working interests owners , and the trust receives royalty income net of these expenses . in addition , the trust does not have any off-balance sheet arrangements or other contingent obligations . liquidity and capital resources story_separator_special_tag 2016 , because the san juan basin—colorado properties operated by bp generated excess production costs of $ 3,860 during the december 2016 production month and no payment was due to the trust by bp . the effect of the trustee 's election to include the december 2016 production month for the year ended december 31 , 2016 is as follows : ( i ) the summary of royalty income , production , prices and costs include the trust 's proportionate share of gross proceeds of $ 68,327 , the trust 's proportionate share of operating costs of $ 72,187 , and net production volumes attributable to the royalty paid on 40,163 thousand cubic feet ( `` mcf `` ) of natural gas , and ( ii ) $ 3,860 of excess production costs related to the san juan basin—colorado properties operated by bp as of december 31 , 2016 were included in the excess production costs footnote to the trust 's financial statements for the year ended december 31 , 2016 . 30 ( 6 ) effective september 2017 , following hilcorp 's acquisition of conoco , inc. 's ( `` conocophillips `` ) interests in the san juan—new mexico properties , hilcorp continued to make an estimated payment of net proceeds to the trust each month consistent with the monthly amount previously paid by conocophillips . these estimated payments remain subject to reconciliation with respect to actual revenue , costs and net proceeds and the effects of pricing during the prior months after hilcorp has completed its transition as owner of the san juan—new mexico properties . the reconciliation and true-up of the estimated payments for this transition period may affect the trust 's future receipt of net proceeds from hilcorp . financial review replace_table_token_6_th royalty and interest income . the trust 's royalty income was $ 3,028,793 and $ 1,364,791 for the years ended december 31 , 2017 and 2016 , respectively . the increase for the year ended december 31 , 2017 as compared to december 31 , 2016 was primarily a result of higher natural gas , natural gas liquids and oil and condensate prices , reduced capital expenditures and operating costs , and increased net natural gas and natural gas liquids production volumes for the year ended december 31 , 2017. the trust 's interest income for the years ended december 31 , 2017 and 2016 was $ 10,221 and $ 1,899 , respectively . in accordance with the trust indenture and as explained below , interest on cash on hand was paid at a rate equivalent to 1.5 % below the prime interest rate . general and administrative expense . general and administrative expense was $ 100,795 and $ 152,778 for the years ended december 31 , 2017 and 2016 , respectively . the trustee 's fees are included in general and administrative expense . the decrease for the year ended december 31 , 2017 as compared to december 31 , 2016 was primarily a result of general and administrative expenses in the amount of $ 70,460 for december 2017 being paid by the trust in january 2018. if the trust had paid such expenses in december 2017 , general and administrative expenses for the year ended december 31 , 2017 would have been $ 171,255. for the year ended december 31 , 2017 , the trustee was due $ 475,000 for its services . the trust paid $ 433,152 of this amount to the trustee , and $ 41,848 was allocated to offset against interest due to the trust under the trust indenture . story_separator_special_tag the operators have informed the trust that the decrease of approximately 48 % for the year ended december 31 , 2017 as compared to december 31 , 2016 was primarily due to decreased joint venture billings in 2017. capital expenditures attributable to the san juan basin—colorado properties for the years ended december 31 , 2017 and 2016 were $ 0 and $ 0 , respectively . replace_table_token_9_th ( mcf ) ( bbls ) ( bbls ) ( mcf ) ( bbls ) ( bbls ) actual production volumes attributable to the royalty paid for hugoton royalty properties 474,822 — — 497,758 — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ net production volumes attributable to the royalty paid for hugoton royalty properties 383,409 — — 210,532 — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ san juan basin—new mexico properties royalty income . royalty income attributable to the san juan basin—new mexico properties for the years ended december 31 , 2017 and 2016 was $ 1,085,082 and $ 652,108 , respectively . the increase of approximately 66 % for the year ended december 31 , 2017 as compared to december 31 , 2016 was primarily due to higher prices for natural gas , natural gas liquids and oil and condensate , increased net production volumes for natural gas and natural gas liquids and lower capital expenditures , partially offset by higher operating costs for the san juan basin—new mexico properties . 34 operating costs and capital expenditures . operating costs attributable to the san juan basin—new mexico properties for the years ended december 31 , 2017 and 2016 were $ 873,736 and $ 862,283 , respectively . capital expenditures attributable to the san juan basin—new mexico properties for the years ended december 31 , 2017 and 2016 were $ 10,777 and $ 39,061 , respectively . hilcorp has informed the trust that decrease of approximately 72 % for the year ended december 31 , 2017 as compared to december 31 , 2016 was primarily due to discontinuing new capital project spending after the purchase and sales agreement between conocophillips and hilcorp was executed in april 2017. replace_table_token_10_th replace_table_token_11_th effective september 2017 , following hilcorp 's acquisition of conocophillips ' interests in the san juan—new mexico properties , hilcorp continued to make an estimated payment of net proceeds to the trust each month consistent with the monthly amount previously paid by conocophillips . these estimated payments remain subject to reconciliation with respect to actual revenue , costs and net proceeds , and the effects of pricing during the prior months after hilcorp has completed its transition as owner of the san juan—new mexico properties . the reconciliation and true-up of the estimated payments for this transition period may affect the trust 's future receipt of net proceeds from hilcorp . off-balance sheet arrangements none . contractual obligations none . critical accounting policies the financial statements of the trust are prepared on the following basis : ( a ) royalty income recorded for a month is the amount computed and paid by the working interest owners to the trustee for such month rather than either the value of a portion of the oil and gas produced by the working interest owners for such month or the amount subsequently determined to be the trust 's proportionate share of the net proceeds for such month ; ( b ) interest income , interest receivable and distributions payable to unitholders include interest to be earned on short-term investments from the financial statement date through the next date of distribution ; ( c ) trust general and administrative expenses , net of reimbursements , are recorded in the month they are included in the calculation of the monthly distribution amount ; 35 ( d ) amortization of the royalty is computed on a unit-of-production basis and is charged directly to trust corpus since such amount does not affect distributable income ; and ( e ) distributions payable are determined on a monthly basis and are payable to unitholders of record as of the last business day of each month or such later date as the trustee determines is required to comply with applicable law or stock exchange requirements . this basis for reporting distributable income is considered to be the most meaningful because distributions to the unitholders for a month are based on net cash receipts for such month . however , these statements differ from financial statements prepared in accordance with generally accepted accounting principles in the united states because , under such principles , royalty income for a month would be based on net proceeds from production for such month without regard to when calculated or received , general and administrative expenses would be recorded in the month they accrue , and interest income for a month would be calculated only through the end of such month . 36 report of independent registered public accounting firm to the unitholders of mesa royalty trust and bank of new york mellon , as trustee : opinion on the financial statements we have audited the accompanying statements of assets , liabilities and trust corpus of mesa royalty trust ( the trust ) as of december 31 , 2017 and 2016 , the related statements of distributable income and changes in trust corpus for each of the years in the two-year period

liquidity . as discussed in `` business—description of the trust '' under item 1 of this form 10-k , the trust 's primary source of cash is the royalty income received from its share of the net proceeds from the royalty properties , and the only other source of cash is interest income earned pursuant to the trust indenture . for estimates of future royalty income attributable to the royalty , refer to the notes to financial statements under item 8 of this form 10-k. in addition , the working interest owners reimburse the trust each quarter for certain expenses incurred by the trust on their behalf . as of december 31 , 2017 and 2016 , there were $ 0 and $ 0 of unreimbursed expenses , respectively . in accordance with the provisions of the conveyance , generally all revenues received by the trust , net of unreimbursed trust administrative expenses and sums paid to or from any reserves established pursuant to the trust indenture , are distributed to the unitholders . the terms of the trust indenture provide , among other things , that the trustee may establish cash reserves and borrow funds to pay liabilities of the trust , and may pledge assets of the trust to secure payment 28 of the borrowings . during 2011 , the trustee withheld $ 1.0 million to establish a reserve for future unknown contingent liabilities and expenses ( the `` contingent reserve '' ) in accordance with the trust indenture . at any given time , the balance of the contingent reserve is included in cash and short-term 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 . as discussed in `` business—description of the trust '' under item 1 of this form 10-k , the trust 's primary source of cash is the royalty income received from its share of the net proceeds from the royalty properties , and the only other source of cash is interest income earned pursuant to the trust indenture . for estimates of future royalty income attributable to the royalty , refer to the notes to financial statements under item 8 of this form 10-k. in addition , the working interest owners reimburse the trust each quarter for certain expenses incurred by the trust on their behalf . as of december 31 , 2017 and 2016 , there were $ 0 and $ 0 of unreimbursed expenses , respectively . in accordance with the provisions of the conveyance , generally all revenues received by the trust , net of unreimbursed trust administrative expenses and sums paid to or from any reserves established pursuant to the trust indenture , are distributed to the unitholders . the terms of the trust indenture provide , among other things , that the trustee may establish cash reserves and borrow funds to pay liabilities of the trust , and may pledge assets of the trust to secure payment 28 of the borrowings . during 2011 , the trustee withheld $ 1.0 million to establish a reserve for future unknown contingent liabilities and expenses ( the `` contingent reserve '' ) in accordance with the trust indenture . at any given time , the balance of the contingent reserve is included in cash and short-term investments . ``` Suspicious Activity Report : pursuant to past conveyances and bankruptcy proceedings , linn energy , inc. ( `` linn `` ) , hilcorp san juan lp ( `` hilcorp `` ) , xto energy , inc. ( `` xto `` ) , bp amoco company ( `` bp `` ) , and red willow production company ( `` red willow `` ) are the operators of certain portions of the hugoton royalty properties and san juan basin royalty properties ( each of linn , hilcorp , xto , bp , and red willow being a `` working interest owner `` , and together , the `` working interest owners `` ) . as used in this report , linn refers to the current operator of the hugoton royalty properties , hilcorp refers to the current operator of the san juan basin—new mexico properties , and bp and red willow refer to the currents co-operators of certain tracts of land included in the san juan basin—colorado properties , unless otherwise indicated . the trust is a passive entity whose purposes are limited to : ( 1 ) converting the royalties to cash , either by retaining them and collecting the proceeds of production ( until production has ceased or the royalties are otherwise terminated ) or by selling or otherwise disposing of the royalties ; and ( 2 ) distributing such cash , net of amounts for payments of liabilities to the trust , to the unitholders . the trust has no sources of liquidity or capital resources other than the revenues , if any , attributable to the royalties and interest on cash held by the trustee as a reserve for liabilities or for distribution . the trust does not undertake or control any capital projects or make capital expenditures . while the trust 's royalty income is net of capital expenditures , these capital expenditures are controlled and paid by the working interests owners , and the trust receives royalty income net of these expenses . in addition , the trust does not have any off-balance sheet arrangements or other contingent obligations . liquidity and capital resources story_separator_special_tag 2016 , because the san juan basin—colorado properties operated by bp generated excess production costs of $ 3,860 during the december 2016 production month and no payment was due to the trust by bp . the effect of the trustee 's election to include the december 2016 production month for the year ended december 31 , 2016 is as follows : ( i ) the summary of royalty income , production , prices and costs include the trust 's proportionate share of gross proceeds of $ 68,327 , the trust 's proportionate share of operating costs of $ 72,187 , and net production volumes attributable to the royalty paid on 40,163 thousand cubic feet ( `` mcf `` ) of natural gas , and ( ii ) $ 3,860 of excess production costs related to the san juan basin—colorado properties operated by bp as of december 31 , 2016 were included in the excess production costs footnote to the trust 's financial statements for the year ended december 31 , 2016 . 30 ( 6 ) effective september 2017 , following hilcorp 's acquisition of conoco , inc. 's ( `` conocophillips `` ) interests in the san juan—new mexico properties , hilcorp continued to make an estimated payment of net proceeds to the trust each month consistent with the monthly amount previously paid by conocophillips . these estimated payments remain subject to reconciliation with respect to actual revenue , costs and net proceeds and the effects of pricing during the prior months after hilcorp has completed its transition as owner of the san juan—new mexico properties . the reconciliation and true-up of the estimated payments for this transition period may affect the trust 's future receipt of net proceeds from hilcorp . financial review replace_table_token_6_th royalty and interest income . the trust 's royalty income was $ 3,028,793 and $ 1,364,791 for the years ended december 31 , 2017 and 2016 , respectively . the increase for the year ended december 31 , 2017 as compared to december 31 , 2016 was primarily a result of higher natural gas , natural gas liquids and oil and condensate prices , reduced capital expenditures and operating costs , and increased net natural gas and natural gas liquids production volumes for the year ended december 31 , 2017. the trust 's interest income for the years ended december 31 , 2017 and 2016 was $ 10,221 and $ 1,899 , respectively . in accordance with the trust indenture and as explained below , interest on cash on hand was paid at a rate equivalent to 1.5 % below the prime interest rate . general and administrative expense . general and administrative expense was $ 100,795 and $ 152,778 for the years ended december 31 , 2017 and 2016 , respectively . the trustee 's fees are included in general and administrative expense . the decrease for the year ended december 31 , 2017 as compared to december 31 , 2016 was primarily a result of general and administrative expenses in the amount of $ 70,460 for december 2017 being paid by the trust in january 2018. if the trust had paid such expenses in december 2017 , general and administrative expenses for the year ended december 31 , 2017 would have been $ 171,255. for the year ended december 31 , 2017 , the trustee was due $ 475,000 for its services . the trust paid $ 433,152 of this amount to the trustee , and $ 41,848 was allocated to offset against interest due to the trust under the trust indenture . story_separator_special_tag the operators have informed the trust that the decrease of approximately 48 % for the year ended december 31 , 2017 as compared to december 31 , 2016 was primarily due to decreased joint venture billings in 2017. capital expenditures attributable to the san juan basin—colorado properties for the years ended december 31 , 2017 and 2016 were $ 0 and $ 0 , respectively . replace_table_token_9_th ( mcf ) ( bbls ) ( bbls ) ( mcf ) ( bbls ) ( bbls ) actual production volumes attributable to the royalty paid for hugoton royalty properties 474,822 — — 497,758 — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ net production volumes attributable to the royalty paid for hugoton royalty properties 383,409 — — 210,532 — — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ san juan basin—new mexico properties royalty income . royalty income attributable to the san juan basin—new mexico properties for the years ended december 31 , 2017 and 2016 was $ 1,085,082 and $ 652,108 , respectively . the increase of approximately 66 % for the year ended december 31 , 2017 as compared to december 31 , 2016 was primarily due to higher prices for natural gas , natural gas liquids and oil and condensate , increased net production volumes for natural gas and natural gas liquids and lower capital expenditures , partially offset by higher operating costs for the san juan basin—new mexico properties . 34 operating costs and capital expenditures . operating costs attributable to the san juan basin—new mexico properties for the years ended december 31 , 2017 and 2016 were $ 873,736 and $ 862,283 , respectively . capital expenditures attributable to the san juan basin—new mexico properties for the years ended december 31 , 2017 and 2016 were $ 10,777 and $ 39,061 , respectively . hilcorp has informed the trust that decrease of approximately 72 % for the year ended december 31 , 2017 as compared to december 31 , 2016 was primarily due to discontinuing new capital project spending after the purchase and sales agreement between conocophillips and hilcorp was executed in april 2017. replace_table_token_10_th replace_table_token_11_th effective september 2017 , following hilcorp 's acquisition of conocophillips ' interests in the san juan—new mexico properties , hilcorp continued to make an estimated payment of net proceeds to the trust each month consistent with the monthly amount previously paid by conocophillips . these estimated payments remain subject to reconciliation with respect to actual revenue , costs and net proceeds , and the effects of pricing during the prior months after hilcorp has completed its transition as owner of the san juan—new mexico properties . the reconciliation and true-up of the estimated payments for this transition period may affect the trust 's future receipt of net proceeds from hilcorp . off-balance sheet arrangements none . contractual obligations none . critical accounting policies the financial statements of the trust are prepared on the following basis : ( a ) royalty income recorded for a month is the amount computed and paid by the working interest owners to the trustee for such month rather than either the value of a portion of the oil and gas produced by the working interest owners for such month or the amount subsequently determined to be the trust 's proportionate share of the net proceeds for such month ; ( b ) interest income , interest receivable and distributions payable to unitholders include interest to be earned on short-term investments from the financial statement date through the next date of distribution ; ( c ) trust general and administrative expenses , net of reimbursements , are recorded in the month they are included in the calculation of the monthly distribution amount ; 35 ( d ) amortization of the royalty is computed on a unit-of-production basis and is charged directly to trust corpus since such amount does not affect distributable income ; and ( e ) distributions payable are determined on a monthly basis and are payable to unitholders of record as of the last business day of each month or such later date as the trustee determines is required to comply with applicable law or stock exchange requirements . this basis for reporting distributable income is considered to be the most meaningful because distributions to the unitholders for a month are based on net cash receipts for such month . however , these statements differ from financial statements prepared in accordance with generally accepted accounting principles in the united states because , under such principles , royalty income for a month would be based on net proceeds from production for such month without regard to when calculated or received , general and administrative expenses would be recorded in the month they accrue , and interest income for a month would be calculated only through the end of such month . 36 report of independent registered public accounting firm to the unitholders of mesa royalty trust and bank of new york mellon , as trustee : opinion on the financial statements we have audited the accompanying statements of assets , liabilities and trust corpus of mesa royalty trust ( the trust ) as of december 31 , 2017 and 2016 , the related statements of distributable income and changes in trust corpus for each of the years in the two-year period

deferred sales increased by approximately $ 0.4 million from 2013 to 2014 and $ 1.8 million from 2012 to 2013. deferred sales are not recognized until the customer accepts delivery of the product and title has transferred . the majority of these sales are to foreign customers with longer payment terms due to increased shipping times . story_separator_special_tag of the increase was due to the acquisition for $ 74.8 million , net of $ 0.1 million in cash acquired as discussed in note 3. during 2014 we also expended $ 6.8 million on the d-train expansion , $ 0.9 million on tank farm improvements , $ 2.4 million on spare equipment , $ 0.3 on pipeline upgrades , and $ 4.4 million on various plant improvements and equipment . cash used by investing activities during fiscal 2013 was approximately $ 12.7 million , representing an increase of approximately $ 2.5 million over the corresponding period of 2012. during 2013 we purchased an additional $ 7.5 million of stock in amak as discussed in note 8 , expended $ 0.3 million to debottleneck our penhex unit , $ 1.6 million for expansion of the sales loading rack facility , $ 0.9 million for construction of a new control room and lab , $ 0.4 million for transport trucks , and approximately $ 2.1 million for a new tolling unit ( which will be reimbursed by the customer ) . these uses of cash were partially offset by the return of approximately $ 2.0 million from amak which was previously advanced . financing activities cash provided by financing activities during fiscal 2014 was approximately $ 66.6 million versus cash used of $ 2.4 million during the corresponding period of 2013. during 2014 we entered into an amended and restated loan agreement with the bank as discussed in note 12 for the acquisition , financing for the d-train expansion and a working capital line . we also made principal payments of $ 9.2 million on our term debt and $ 11.5 million on our line of credit . cash used by financing activities during fiscal 2013 was approximately $ 2.4 million versus cash used of $ 8.4 million during the corresponding period of 2012. during 2013 we drew $ 6.0 million on our line of credit for working capital purposes and to fund the capital contribution to amak . we also made principal payments of $ 1.5 million on our term debt and $ 7.0 million on our line of credit . credit agreement on october 1 , 2014 , tocco , south hampton , gulf state , and tc ( south hampton , gulf state and tc collectively the “ guarantors ” ) entered into an amended and restated credit agreement ( “ arc agreement ” ) with the lenders which from time to time are parties to the arc agreement ( collectively , the “ lenders ” ) and bank of america , n.a . , a national banking association , as administrative agent for the lenders , and merrill lynch , pierce , fenner & smith incorporated as lead arranger . subject to the terms and conditions of the arc agreement , tocco may ( a ) borrow , repay and re-borrow revolving loans ( collectively , the “ revolving loans ” ) from time to time during the period ending september 30 , 2019 , up to but not exceeding at any one time outstanding $ 40.0 million ( the “ revolving loan commitment ” ) and ( b ) request up to $ 5.0 million of letters of credit and $ 5.0 million of swingline loans . each of the issuance of letters of credit and the advance of swingline loans shall be considered usage of the revolving loan commitment . all outstanding loans under the revolving loans must be repaid on october 1 , 2019. as of december 31 , 2014 , tocco had borrowed funds under the revolving loans aggregating $ 7.2 million . under the arc agreement , tocco also borrowed $ 70.0 million in a single advance term loan ( the “ acquisition term loan ” ) to partially finance the acquisition . under the arc agreement , tocco also has the right to borrow $ 25.0 million in a multiple advance loan ( the “ term loans , ” together with the revolving loans and acquisition term loan , collectively the “ loans ” ) . borrowing availability under the term loans ends on december 31 , 2015. the term loans convert from a multiple advance loan to a “ mini-perm ” loan once tocco has fulfilled certain obligations such as certification that construction of d-train was completed in a good and workmanlike manner , receipt of applicable permits and releases from governmental authorities , and receipt of releases of liens from the contractor and each subcontractor and supplier . the loans also include a $ 40,000,000 uncommitted increase option ( the “ accordion option ” ) . as of december 31 , 2014 , tocco had borrowed funds under this agreement aggregating $ 5.0 million . all of the loans under the arc agreement will accrue interest at the lower of ( i ) a london interbank offered rate ( “ eurodollar rate ” ) plus a margin of between 2.00 % and 2.50 % based on the total leverage ratio of tocco and its 19 subsidiaries on a consolidated basis , or ( ii ) a base rate ( “ base rate ” ) equal to the highest of the federal funds rate plus 0.50 % , the rate announced by bank of america , n.a . as its prime rate , and eurodollar rate plus 1.0 % , plus a margin of between 1.00 % to 1.50 % based on the total leverage ratio of tocco and its subsidiaries on a consolidated basis . story_separator_special_tag officer compensation increased $ 0.1 million due to the addition of an executive during the second half of 2012. directors ' fees also increased $ 0.1 million due to the addition of a director in the fourth quarter of 2012. post-retirement benefits increased due to the return to normal accrual for stock options , whereas for 2012 expired options were reversed . accounting fees increased $ 0.2 million due to the pcaob audits of amak for the years ended december 31 , 2012 , 2011 , and 2010 as well as , our 2012 amended filings including amak . insurance expense increased approximately $ 0.1 million due to changes in policy limits . investor relations expense increased $ 0.2 million due to the granting of warrants to the new investor relations firm . administrative expenses in saudi increased $ 0.1 million due to additional staffing requirements . these increases were partially offset by decreases in travel , legal fees , and expenses associated with amak in saudi arabia . depreciation 2013-2014 depreciation expense increased only slightly by 0.6 % from 2013 to 2014. many of the capital expenditures for 2014 remained in construction in progress accounts at year end . 2012-2013 depreciation expense increased 13.0 % from 2012 to 2013 due to an increase in the amount of depreciable assets year over year . equity in earnings ( losses ) of amak/gain on equity issuance of amak 2013-2014 equity in earnings ( losses ) of amak decreased 122.8 % from 2013 to 2014 due to a number of reasons as discussed below . our equity in amak 's results of operations for 2013 also included a gain from the additional equity issuance by amak of $ 4.0 million . there was no such gain in 2014. the mining sector as a whole has been depressed due to low metal prices and demand . however , the performance of amak to date has been below our expectation , and steps are being taken to improve performance and solidify its position over the long term . the project is self-supporting and cash flow is adequate to meet current needs . for 2014 shipments were 14.0 % short of budgeted volumes as indicated in the table below . there were no shipments in the first quarter of 2014 due to logistics delays and the rebuilding of warehouse stocks . shipments in the second quarter of 2014 , while up in number ( 4 ) , were limited by volume shipped . shipments in the third and fourth quarters were also limited by volume shipped . amak volumes in dry metric tons ( dmt ) for 2014 were as follows : replace_table_token_9_th 25 in addition , amak faced operational issues including mechanical issues and water shortages which caused the plant run time to decrease to 60 % versus the 80+ % which has been the norm over the first 18 months of operation . the water issues have been largely resolved with the addition of more wells , purchases of supplemental water via truck from nearby sources , and the addition of a dam and holding area in a nearby drainage area . the mechanical problems , while a continued concern due to the remote location and lack of vendor expertise within the country , are being addressed with the identification and stocking of critical spares and a change of management staff . during 2014 amak hired a new ceo ( a us citizen ) , a new mining engineer ( a canadian citizen ) , and a new mill manager ( an australian citizen ) . individuals previously in those positions did a creditable job in starting up the facility and getting it to the point of production . however , the amak board felt that for amak to advance to a consistent and profitable operation , a different set of skills was needed . amak incurred expenses to transition the new and old personnel . the new management team presented an action plan to the board of directors at the september meeting which outlined the steps to be taken for improvement and the timeline for implementation . implementation will take a good portion of 2015 to produce results . there was agreement among the group that the plan would position amak for a successful ipo on the saudi arabian stock exchange which is currently targeted for late 2016. finally , in an area over which amak has little to no control , average metal prices were softer for the period and negatively affected amak 's financial results . copper prices may continue to be volatile and are largely affected by economic data announcements from china . zinc prices are predicted to be stronger as time passes due to the run down and closure of several large mines this year and next . we continue to expect better performance based upon the activation of the precious metal circuit ; the activation of an improved and larger volume talc circuit prior ; improved recoveries and product quality based upon better process control and improvements made to mill equipment ; institution of better controls on the ore dilution ; and an ore blending program which should improve product quality and production levels . also in november 2014 , a favorably revised and amended contract with the chinese company supplying the labor for the mill operation was signed . 2012-2013 equity in earnings of amak increased $ 4.9 million from 2012 to 2013 due to amak being in operation for the entire 2013 year versus only a partial year in 2012. gain on equity issuance of amak increased $ 4.0 million from 2012 to 2013 due to the completion of an equity raise in may 2013 as discussed in note 8. capital expenditures 2013-2014 capital expenditures increased 104.8 % from 2013 to 2014. see capital expenditures discussion below for more detail . 2012-2013 capital expenditures decreased 16.1 % from 2012 to 2013. see capital expenditures discussion

sources and uses of cash cash and cash equivalents increased by $ 0.9 million during the year ended december 31 , 2014. the change in cash and cash equivalents is summarized as follows : replace_table_token_6_th operating activities operating activities generated cash of $ 23.2 million during fiscal 2014 as compared with $ 13.2 million of cash provided during fiscal 2013. although the company 's net income decreased by $ 3.9 million from 2013 to 2014 , the cash provided by operations increased by $ 10.0 million due primarily to the following factors : · net income for 2014 included a non-cash equity in loss from amak of $ 1.1 million as compared to equity in earnings from amak $ 4.7 million and gain on equity issued in amak of $ 4.0 million in 2013 ; · net income for 2014 included a non-cash depreciation and amortization charge of $ 5.7 million as compared to 2013 which included a non-cash depreciation charge of $ 4.0 million ; · net income for 2014 included a non-cash share-based compensation charge of $ 2.1 million as compared to 2013 which included a non-cash share-based compensation charge of $ 1.2 million ; · trade receivables increased approximately $ 3.4 million in 2014 ( due to a 9.9 % increase in volume sold during the fourth quarter and receivables acquired from the acquisition ) as compared to an increase of approximately $ 6.3 million ( due to a 40.1 % increase in volume sold during the fourth quarter ) in 2013 ; · inventory decreased approximately $ 2.6 million in 2014 ( due to a 31.9 % decrease in cost per gallon ) as compared to an increase of approximately $ 2.2 million ( due to a 58.8 % increase in deferred sales ) in 2013 ; and 17 · accounts payable and accrued liabilities increased $ 1.8 million in 2014 ( primarily due to the working capital adjustment payable for the acquisition ) as compared to an increase of $ 1.4 million ( primarily due to an increase in the accrual for raw materials ) in 2013. these significant sources of

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```sources and uses of cash cash and cash equivalents increased by $ 0.9 million during the year ended december 31 , 2014. the change in cash and cash equivalents is summarized as follows : replace_table_token_6_th operating activities operating activities generated cash of $ 23.2 million during fiscal 2014 as compared with $ 13.2 million of cash provided during fiscal 2013. although the company 's net income decreased by $ 3.9 million from 2013 to 2014 , the cash provided by operations increased by $ 10.0 million due primarily to the following factors : · net income for 2014 included a non-cash equity in loss from amak of $ 1.1 million as compared to equity in earnings from amak $ 4.7 million and gain on equity issued in amak of $ 4.0 million in 2013 ; · net income for 2014 included a non-cash depreciation and amortization charge of $ 5.7 million as compared to 2013 which included a non-cash depreciation charge of $ 4.0 million ; · net income for 2014 included a non-cash share-based compensation charge of $ 2.1 million as compared to 2013 which included a non-cash share-based compensation charge of $ 1.2 million ; · trade receivables increased approximately $ 3.4 million in 2014 ( due to a 9.9 % increase in volume sold during the fourth quarter and receivables acquired from the acquisition ) as compared to an increase of approximately $ 6.3 million ( due to a 40.1 % increase in volume sold during the fourth quarter ) in 2013 ; · inventory decreased approximately $ 2.6 million in 2014 ( due to a 31.9 % decrease in cost per gallon ) as compared to an increase of approximately $ 2.2 million ( due to a 58.8 % increase in deferred sales ) in 2013 ; and 17 · accounts payable and accrued liabilities increased $ 1.8 million in 2014 ( primarily due to the working capital adjustment payable for the acquisition ) as compared to an increase of $ 1.4 million ( primarily due to an increase in the accrual for raw materials ) in 2013. these significant sources of ``` Suspicious Activity Report : deferred sales increased by approximately $ 0.4 million from 2013 to 2014 and $ 1.8 million from 2012 to 2013. deferred sales are not recognized until the customer accepts delivery of the product and title has transferred . the majority of these sales are to foreign customers with longer payment terms due to increased shipping times . story_separator_special_tag of the increase was due to the acquisition for $ 74.8 million , net of $ 0.1 million in cash acquired as discussed in note 3. during 2014 we also expended $ 6.8 million on the d-train expansion , $ 0.9 million on tank farm improvements , $ 2.4 million on spare equipment , $ 0.3 on pipeline upgrades , and $ 4.4 million on various plant improvements and equipment . cash used by investing activities during fiscal 2013 was approximately $ 12.7 million , representing an increase of approximately $ 2.5 million over the corresponding period of 2012. during 2013 we purchased an additional $ 7.5 million of stock in amak as discussed in note 8 , expended $ 0.3 million to debottleneck our penhex unit , $ 1.6 million for expansion of the sales loading rack facility , $ 0.9 million for construction of a new control room and lab , $ 0.4 million for transport trucks , and approximately $ 2.1 million for a new tolling unit ( which will be reimbursed by the customer ) . these uses of cash were partially offset by the return of approximately $ 2.0 million from amak which was previously advanced . financing activities cash provided by financing activities during fiscal 2014 was approximately $ 66.6 million versus cash used of $ 2.4 million during the corresponding period of 2013. during 2014 we entered into an amended and restated loan agreement with the bank as discussed in note 12 for the acquisition , financing for the d-train expansion and a working capital line . we also made principal payments of $ 9.2 million on our term debt and $ 11.5 million on our line of credit . cash used by financing activities during fiscal 2013 was approximately $ 2.4 million versus cash used of $ 8.4 million during the corresponding period of 2012. during 2013 we drew $ 6.0 million on our line of credit for working capital purposes and to fund the capital contribution to amak . we also made principal payments of $ 1.5 million on our term debt and $ 7.0 million on our line of credit . credit agreement on october 1 , 2014 , tocco , south hampton , gulf state , and tc ( south hampton , gulf state and tc collectively the “ guarantors ” ) entered into an amended and restated credit agreement ( “ arc agreement ” ) with the lenders which from time to time are parties to the arc agreement ( collectively , the “ lenders ” ) and bank of america , n.a . , a national banking association , as administrative agent for the lenders , and merrill lynch , pierce , fenner & smith incorporated as lead arranger . subject to the terms and conditions of the arc agreement , tocco may ( a ) borrow , repay and re-borrow revolving loans ( collectively , the “ revolving loans ” ) from time to time during the period ending september 30 , 2019 , up to but not exceeding at any one time outstanding $ 40.0 million ( the “ revolving loan commitment ” ) and ( b ) request up to $ 5.0 million of letters of credit and $ 5.0 million of swingline loans . each of the issuance of letters of credit and the advance of swingline loans shall be considered usage of the revolving loan commitment . all outstanding loans under the revolving loans must be repaid on october 1 , 2019. as of december 31 , 2014 , tocco had borrowed funds under the revolving loans aggregating $ 7.2 million . under the arc agreement , tocco also borrowed $ 70.0 million in a single advance term loan ( the “ acquisition term loan ” ) to partially finance the acquisition . under the arc agreement , tocco also has the right to borrow $ 25.0 million in a multiple advance loan ( the “ term loans , ” together with the revolving loans and acquisition term loan , collectively the “ loans ” ) . borrowing availability under the term loans ends on december 31 , 2015. the term loans convert from a multiple advance loan to a “ mini-perm ” loan once tocco has fulfilled certain obligations such as certification that construction of d-train was completed in a good and workmanlike manner , receipt of applicable permits and releases from governmental authorities , and receipt of releases of liens from the contractor and each subcontractor and supplier . the loans also include a $ 40,000,000 uncommitted increase option ( the “ accordion option ” ) . as of december 31 , 2014 , tocco had borrowed funds under this agreement aggregating $ 5.0 million . all of the loans under the arc agreement will accrue interest at the lower of ( i ) a london interbank offered rate ( “ eurodollar rate ” ) plus a margin of between 2.00 % and 2.50 % based on the total leverage ratio of tocco and its 19 subsidiaries on a consolidated basis , or ( ii ) a base rate ( “ base rate ” ) equal to the highest of the federal funds rate plus 0.50 % , the rate announced by bank of america , n.a . as its prime rate , and eurodollar rate plus 1.0 % , plus a margin of between 1.00 % to 1.50 % based on the total leverage ratio of tocco and its subsidiaries on a consolidated basis . story_separator_special_tag officer compensation increased $ 0.1 million due to the addition of an executive during the second half of 2012. directors ' fees also increased $ 0.1 million due to the addition of a director in the fourth quarter of 2012. post-retirement benefits increased due to the return to normal accrual for stock options , whereas for 2012 expired options were reversed . accounting fees increased $ 0.2 million due to the pcaob audits of amak for the years ended december 31 , 2012 , 2011 , and 2010 as well as , our 2012 amended filings including amak . insurance expense increased approximately $ 0.1 million due to changes in policy limits . investor relations expense increased $ 0.2 million due to the granting of warrants to the new investor relations firm . administrative expenses in saudi increased $ 0.1 million due to additional staffing requirements . these increases were partially offset by decreases in travel , legal fees , and expenses associated with amak in saudi arabia . depreciation 2013-2014 depreciation expense increased only slightly by 0.6 % from 2013 to 2014. many of the capital expenditures for 2014 remained in construction in progress accounts at year end . 2012-2013 depreciation expense increased 13.0 % from 2012 to 2013 due to an increase in the amount of depreciable assets year over year . equity in earnings ( losses ) of amak/gain on equity issuance of amak 2013-2014 equity in earnings ( losses ) of amak decreased 122.8 % from 2013 to 2014 due to a number of reasons as discussed below . our equity in amak 's results of operations for 2013 also included a gain from the additional equity issuance by amak of $ 4.0 million . there was no such gain in 2014. the mining sector as a whole has been depressed due to low metal prices and demand . however , the performance of amak to date has been below our expectation , and steps are being taken to improve performance and solidify its position over the long term . the project is self-supporting and cash flow is adequate to meet current needs . for 2014 shipments were 14.0 % short of budgeted volumes as indicated in the table below . there were no shipments in the first quarter of 2014 due to logistics delays and the rebuilding of warehouse stocks . shipments in the second quarter of 2014 , while up in number ( 4 ) , were limited by volume shipped . shipments in the third and fourth quarters were also limited by volume shipped . amak volumes in dry metric tons ( dmt ) for 2014 were as follows : replace_table_token_9_th 25 in addition , amak faced operational issues including mechanical issues and water shortages which caused the plant run time to decrease to 60 % versus the 80+ % which has been the norm over the first 18 months of operation . the water issues have been largely resolved with the addition of more wells , purchases of supplemental water via truck from nearby sources , and the addition of a dam and holding area in a nearby drainage area . the mechanical problems , while a continued concern due to the remote location and lack of vendor expertise within the country , are being addressed with the identification and stocking of critical spares and a change of management staff . during 2014 amak hired a new ceo ( a us citizen ) , a new mining engineer ( a canadian citizen ) , and a new mill manager ( an australian citizen ) . individuals previously in those positions did a creditable job in starting up the facility and getting it to the point of production . however , the amak board felt that for amak to advance to a consistent and profitable operation , a different set of skills was needed . amak incurred expenses to transition the new and old personnel . the new management team presented an action plan to the board of directors at the september meeting which outlined the steps to be taken for improvement and the timeline for implementation . implementation will take a good portion of 2015 to produce results . there was agreement among the group that the plan would position amak for a successful ipo on the saudi arabian stock exchange which is currently targeted for late 2016. finally , in an area over which amak has little to no control , average metal prices were softer for the period and negatively affected amak 's financial results . copper prices may continue to be volatile and are largely affected by economic data announcements from china . zinc prices are predicted to be stronger as time passes due to the run down and closure of several large mines this year and next . we continue to expect better performance based upon the activation of the precious metal circuit ; the activation of an improved and larger volume talc circuit prior ; improved recoveries and product quality based upon better process control and improvements made to mill equipment ; institution of better controls on the ore dilution ; and an ore blending program which should improve product quality and production levels . also in november 2014 , a favorably revised and amended contract with the chinese company supplying the labor for the mill operation was signed . 2012-2013 equity in earnings of amak increased $ 4.9 million from 2012 to 2013 due to amak being in operation for the entire 2013 year versus only a partial year in 2012. gain on equity issuance of amak increased $ 4.0 million from 2012 to 2013 due to the completion of an equity raise in may 2013 as discussed in note 8. capital expenditures 2013-2014 capital expenditures increased 104.8 % from 2013 to 2014. see capital expenditures discussion below for more detail . 2012-2013 capital expenditures decreased 16.1 % from 2012 to 2013. see capital expenditures discussion

we have remained focused on our pivot to a land lighter strategy . from controlling the timing of land purchases , to reducing our years-owned supply of homesites , to increasing the percentage of land controlled through options or agreements versus owned land , we are migrating towards a significantly smaller owned land inventory . at the beginning of 2019 , we set a two-year goal of increasing the homesites we control but do not own from 25 % to 40 % of our land needs . we made great progress on this front , and finished the year at 33 % . based on our progress , our new goal is to have 50 % of our land needs controlled versus owned by the end of fiscal 2021. we also believe that , based on our progress on reducing our years-owned supply of homesites from 4.4 years at the end of the third quarter to 4.1 years at the end of the fourth quarter , we can reduce our years-owned supply of homesites to 3 years by the end of fiscal 2021. while our most immediately impactful focus remains on our land spend and our inventory , we are also driving our asset-base lower as we continue to focus on monetizing non-core assets and business segments . our size and scale in each of our strategic markets continues to facilitate our management of costs even in labor constrained markets . our continued focus on technology and leveraging our size and scale is driving efficiencies that are reflected in our consistent improvement in sg & a and our bottom line . in the fourth quarter , our sg & a expense as a percentage of home sale revenues continued its downward trend with our lowest fourth quarter level ever at 7.6 % . in addition , through contributions from our technology initiatives in our financial services platform , we decreased loan origination costs and simplified our business process to improve customer experience , which in part drove the financial services segment 's record profit in the fourth quarter . technology , together with management focus , has enabled efficiency , a better customer experience and a much better bottom line . over the next two years we expect to see some of the same technology-based improvements that we used in our financial services platform affecting our core homebuilding operations , specifically in areas of customer acquisition costs , even flow production and inventory management . our backlog , combined with our current housing inventory , leads us to expect to close between 54,000 and 55,000 homes in fiscal 2020. although the price per home may decrease as we focus more on the entry level market , we expect our fiscal 2020 gross margins to remain consistent with fiscal 2019 as we increase our home sales pace while continuing to focus on reducing construction spend by keeping cost per square foot flat while average square footage is declining , leveraging field expenses over a greater number of deliveries and reducing interest expense . accordingly , we expect to generate strong cash flow in 2020 , that we can use to pay down debt and return capital to shareholders through our increased dividend and strategic share repurchases . with a solid balance sheet , leading market positions and continued execution of our core operating strategies , we believe we are well positioned for strong profitability and cash flow in 2020 . 22 results of operations overview our net earnings attributable to lennar were $ 1.8 billion , or $ 5.74 per diluted share ( $ 5.76 per basic share ) in 2019 and $ 1.7 billion , or $ 5.44 per diluted share ( $ 5.46 per basic share ) in 2018 . the following table sets forth financial and operational information for the years indicated related to our operations : replace_table_token_4_th effects of calatlantic acquisition for the year ended november 30 , 2018 , homebuilding revenue included $ 7.0 billion of revenues , and earnings before income taxes included $ 491.3 million of pre-tax earnings from calatlantic since the date of acquisition , which included acquisition and integration costs of $ 153.0 million . these acquisition and integration costs were comprised mainly of severance 23 expenses and transaction costs and were included within the acquisition and integration costs related to calatlantic line item in the consolidated statement of operations for the year ended november 30 , 2018 . 2019 versus 2018 in july 2019 , the fasb issued accounting standards update 2019-07 , “ codification updates to sec sections-amendments to sec paragraphs pursuant to sec final rule releases no . 33-10532 , disclosure update and simplification `` , which makes a number of changes meant to simplify certain disclosures in financial condition and results of operations , particularly by eliminating year-to-year comparisons between prior periods previously disclosed . in complying with the relevant aspects of the rule covering the current year annual report , we now include disclosures on results of operations for fiscal year 2019 versus 2018 only . for discussion of fiscal year 2018 vs 2017 see “ item 7. management 's discussion and analysis of financial condition and results of operations ” in our annual report filed with the sec for the fiscal year ended november 30 , 2018. revenues from home sales increased 9 % in the year ended november 30 , 2019 to $ 20.6 billion from $ 18.8 billion in the year ended november 30 , 2018 . revenues were higher primarily due to a 13 % increase in the number of home deliveries , excluding unconsolidated entities , partially offset by a 3 % decrease in the average sales price of homes delivered . story_separator_special_tag 30 homebuilding west : revenues from home sales increased in 2019 compared to 2018 , primarily due to an increase in the number of home deliveries in all the states in the segment , except colorado . the increase in revenues was partially offset by a decrease in the average sales price of homes delivered in arizona , california and oregon . the increase in the number of deliveries was primarily due to higher demand as the number of deliveries per active community increased . the decrease in the number of home deliveries in colorado was primarily due to a decrease in active communities and timing of opening and closing of communities . the decrease in the average sales price of homes delivered in arizona , california and oregon was primarily due to our continued focus on the entry-level market and , in general , moving down the price curve . gross margin percentage on home sales for the year ended november 30 , 2019 increased compared to the same period last year primarily due to purchase accounting adjustments on calatlantic homes that were in backlog/construction in progress when we acquired calatlantic , which reduced the gross margin percentage on those deliveries in 2018. financial services segment our financial services reportable segment primarily provides mortgage financing , title and closing services primarily for buyers of our homes , as well as property and casualty insurance . the segment also originates and sells into securitizations commercial mortgage loans through its rmf business . our financial services segment sells substantially all of the residential loans it originates within a short period in the secondary mortgage market , the majority of which are sold on a servicing released , non-recourse basis . after the loans are sold , we retain potential liability for possible claims by purchasers that we breached certain limited industry-standard representations and warranties in the loan sale agreements . the following table sets forth selected financial and operational information related to our financial services segment : replace_table_token_13_th rmf rmf originates and sells into securitizations five , seven and ten year commercial first mortgage loans , which are secured by income producing properties . this business has become a significant contributor to financial services ' revenues . during the year ended november 30 , 2019 , rmf originated loans with a total principal balance of $ 1.6 billion , all of which were recorded as loans held-for-sale , except $ 15.3 million which were recorded as accrual loans within loans receivables , net , and sold $ 1.4 billion of loans into 11 separate securitizations . during the year ended november 30 , 2018 , rmf originated loans with a principal balance of $ 1.4 billion all of which were recorded as loans held-for-sale and sold $ 1.5 billion of loans into 16 separate securitizations . as of november 30 , 2019 and 2018 , originated loans with an unpaid balance of $ 158.4 million and $ 218.4 million , respectively , were sold into a securitization trust but not settled and thus were included as receivables , net . multifamily segment we have been actively involved , primarily through unconsolidated entities , in the development , construction and property management of multifamily rental properties . our multifamily segment focuses on developing a geographically diversified portfolio of institutional quality multifamily rental properties in select u.s. markets . originally , our multifamily segment focused on building multifamily properties and selling them shortly after they were completed . however , more recently we have focused on creating and participating in ventures that build multifamily properties with the intention of retaining them after they are completed . as of november 30 , 2019 and 2018 , our balance sheet had $ 1.1 billion and $ 874.2 million , respectively , of assets related to our multifamily segment , which included investments in unconsolidated entities of $ 561.2 million and $ 481.1 million , respectively . our net investment in our multifamily segment as of november 30 , 2019 and 2018 was $ 829.5 million and $ 703.6 million , respectively . during the year ended november 30 , 2019 , our multifamily segment sold , through its unconsolidated entities , two operating properties and an investment in an operating property resulting in the segment 's $ 28.1 million share of gains . the gain of $ 11.9 million recognized on the sale of the investment in an operating property and 31 recognition of our share of deferred development fees that were capitalized at the joint venture level are included in multifamily equity in earnings ( loss ) from unconsolidated entities and other gain , and are not included in net earnings ( loss ) of unconsolidated entities . during the year ended november 30 , 2018 , our multifamily segment sold , through its unconsolidated entities six operating properties and an investment in an operating property resulting in the segment 's $ 61.2 million share of gains . the gain of $ 15.7 million recognized on the sale of the investment in an operating property and recognition of our share of deferred development fees that were capitalized at the joint venture level are included in multifamily equity in earnings from unconsolidated entities and other gain , and are not included in net earnings of unconsolidated entities . our multifamily segment had equity investments in 19 and 22 unconsolidated entities , including lmv i and lmv ii , as of november 30 , 2019 and 2018 , respectively . as of november 30 , 2019 , our multifamily segment had interests in 63 communities with development costs of $ 7.4 billion , of which 31 communities were completed and operating , six communities were partially completed and leasing , 20 communities were under construction and the remaining communities were owned by joint ventures . as of november 30 , 2019 , our multifamily segment also had a pipeline of potential future projects , which were

financial condition and capital resources at november 30 , 2019 , we had cash and cash equivalents and restricted cash related to our homebuilding , financial services , multifamily and other operations of $ 1.5 billion , compared to $ 1.6 billion at november 30 , 2018 . we finance all of our activities including homebuilding , financial services , multifamily , other and general operating needs primarily with cash generated from our operations , debt issuances and equity offerings as well as cash borrowed under our warehouse lines of credit and our unsecured revolving credit facility ( the `` credit facility '' ) . 32 operating cash flow activities during 2019 and 2018 , cash provided by operating activities totaled $ 1.5 billion and $ 1.7 billion , respectively . during 2019 , cash provided by operating activities was positively impacted by our net earnings and a decrease in receivables of $ 312.3 million , partially offset by an increase in inventories due to strategic land purchases , land development and construction costs of $ 623.6 million and an increase in financial services loans held-for-sale of $ 431.3 million . for the year ended november 30 , 2019 , distributions of earnings from unconsolidated entities were $ 12.8 million , which included ( 1 ) $ 8.5 million from multifamily unconsolidated entities , and ( 2 ) $ 4.3 million from homebuilding unconsolidated entities . during 2018 , cash provided by operating activities was positively impacted by our net earnings , an increase in accounts payable and other liabilities of $ 412.8 million , deferred income tax expense of $ 268.0 million and a decrease in loans held-for-sale of $ 5.8 million of which $ 153.3 million related to our lennar other segment , partially offset by an increase in loans held-for-sale of $ 147.5 million related to financial services . in addition , cash provided by operating activities was negatively impacted by an increase in other assets of $ 24.9 million , an increase in receivables of $ 431.2 million and an increase in inventories due to strategic land purchases , land development and construction costs of $ 135.9 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. ```financial condition and capital resources at november 30 , 2019 , we had cash and cash equivalents and restricted cash related to our homebuilding , financial services , multifamily and other operations of $ 1.5 billion , compared to $ 1.6 billion at november 30 , 2018 . we finance all of our activities including homebuilding , financial services , multifamily , other and general operating needs primarily with cash generated from our operations , debt issuances and equity offerings as well as cash borrowed under our warehouse lines of credit and our unsecured revolving credit facility ( the `` credit facility '' ) . 32 operating cash flow activities during 2019 and 2018 , cash provided by operating activities totaled $ 1.5 billion and $ 1.7 billion , respectively . during 2019 , cash provided by operating activities was positively impacted by our net earnings and a decrease in receivables of $ 312.3 million , partially offset by an increase in inventories due to strategic land purchases , land development and construction costs of $ 623.6 million and an increase in financial services loans held-for-sale of $ 431.3 million . for the year ended november 30 , 2019 , distributions of earnings from unconsolidated entities were $ 12.8 million , which included ( 1 ) $ 8.5 million from multifamily unconsolidated entities , and ( 2 ) $ 4.3 million from homebuilding unconsolidated entities . during 2018 , cash provided by operating activities was positively impacted by our net earnings , an increase in accounts payable and other liabilities of $ 412.8 million , deferred income tax expense of $ 268.0 million and a decrease in loans held-for-sale of $ 5.8 million of which $ 153.3 million related to our lennar other segment , partially offset by an increase in loans held-for-sale of $ 147.5 million related to financial services . in addition , cash provided by operating activities was negatively impacted by an increase in other assets of $ 24.9 million , an increase in receivables of $ 431.2 million and an increase in inventories due to strategic land purchases , land development and construction costs of $ 135.9 million . ``` Suspicious Activity Report : we have remained focused on our pivot to a land lighter strategy . from controlling the timing of land purchases , to reducing our years-owned supply of homesites , to increasing the percentage of land controlled through options or agreements versus owned land , we are migrating towards a significantly smaller owned land inventory . at the beginning of 2019 , we set a two-year goal of increasing the homesites we control but do not own from 25 % to 40 % of our land needs . we made great progress on this front , and finished the year at 33 % . based on our progress , our new goal is to have 50 % of our land needs controlled versus owned by the end of fiscal 2021. we also believe that , based on our progress on reducing our years-owned supply of homesites from 4.4 years at the end of the third quarter to 4.1 years at the end of the fourth quarter , we can reduce our years-owned supply of homesites to 3 years by the end of fiscal 2021. while our most immediately impactful focus remains on our land spend and our inventory , we are also driving our asset-base lower as we continue to focus on monetizing non-core assets and business segments . our size and scale in each of our strategic markets continues to facilitate our management of costs even in labor constrained markets . our continued focus on technology and leveraging our size and scale is driving efficiencies that are reflected in our consistent improvement in sg & a and our bottom line . in the fourth quarter , our sg & a expense as a percentage of home sale revenues continued its downward trend with our lowest fourth quarter level ever at 7.6 % . in addition , through contributions from our technology initiatives in our financial services platform , we decreased loan origination costs and simplified our business process to improve customer experience , which in part drove the financial services segment 's record profit in the fourth quarter . technology , together with management focus , has enabled efficiency , a better customer experience and a much better bottom line . over the next two years we expect to see some of the same technology-based improvements that we used in our financial services platform affecting our core homebuilding operations , specifically in areas of customer acquisition costs , even flow production and inventory management . our backlog , combined with our current housing inventory , leads us to expect to close between 54,000 and 55,000 homes in fiscal 2020. although the price per home may decrease as we focus more on the entry level market , we expect our fiscal 2020 gross margins to remain consistent with fiscal 2019 as we increase our home sales pace while continuing to focus on reducing construction spend by keeping cost per square foot flat while average square footage is declining , leveraging field expenses over a greater number of deliveries and reducing interest expense . accordingly , we expect to generate strong cash flow in 2020 , that we can use to pay down debt and return capital to shareholders through our increased dividend and strategic share repurchases . with a solid balance sheet , leading market positions and continued execution of our core operating strategies , we believe we are well positioned for strong profitability and cash flow in 2020 . 22 results of operations overview our net earnings attributable to lennar were $ 1.8 billion , or $ 5.74 per diluted share ( $ 5.76 per basic share ) in 2019 and $ 1.7 billion , or $ 5.44 per diluted share ( $ 5.46 per basic share ) in 2018 . the following table sets forth financial and operational information for the years indicated related to our operations : replace_table_token_4_th effects of calatlantic acquisition for the year ended november 30 , 2018 , homebuilding revenue included $ 7.0 billion of revenues , and earnings before income taxes included $ 491.3 million of pre-tax earnings from calatlantic since the date of acquisition , which included acquisition and integration costs of $ 153.0 million . these acquisition and integration costs were comprised mainly of severance 23 expenses and transaction costs and were included within the acquisition and integration costs related to calatlantic line item in the consolidated statement of operations for the year ended november 30 , 2018 . 2019 versus 2018 in july 2019 , the fasb issued accounting standards update 2019-07 , “ codification updates to sec sections-amendments to sec paragraphs pursuant to sec final rule releases no . 33-10532 , disclosure update and simplification `` , which makes a number of changes meant to simplify certain disclosures in financial condition and results of operations , particularly by eliminating year-to-year comparisons between prior periods previously disclosed . in complying with the relevant aspects of the rule covering the current year annual report , we now include disclosures on results of operations for fiscal year 2019 versus 2018 only . for discussion of fiscal year 2018 vs 2017 see “ item 7. management 's discussion and analysis of financial condition and results of operations ” in our annual report filed with the sec for the fiscal year ended november 30 , 2018. revenues from home sales increased 9 % in the year ended november 30 , 2019 to $ 20.6 billion from $ 18.8 billion in the year ended november 30 , 2018 . revenues were higher primarily due to a 13 % increase in the number of home deliveries , excluding unconsolidated entities , partially offset by a 3 % decrease in the average sales price of homes delivered . story_separator_special_tag 30 homebuilding west : revenues from home sales increased in 2019 compared to 2018 , primarily due to an increase in the number of home deliveries in all the states in the segment , except colorado . the increase in revenues was partially offset by a decrease in the average sales price of homes delivered in arizona , california and oregon . the increase in the number of deliveries was primarily due to higher demand as the number of deliveries per active community increased . the decrease in the number of home deliveries in colorado was primarily due to a decrease in active communities and timing of opening and closing of communities . the decrease in the average sales price of homes delivered in arizona , california and oregon was primarily due to our continued focus on the entry-level market and , in general , moving down the price curve . gross margin percentage on home sales for the year ended november 30 , 2019 increased compared to the same period last year primarily due to purchase accounting adjustments on calatlantic homes that were in backlog/construction in progress when we acquired calatlantic , which reduced the gross margin percentage on those deliveries in 2018. financial services segment our financial services reportable segment primarily provides mortgage financing , title and closing services primarily for buyers of our homes , as well as property and casualty insurance . the segment also originates and sells into securitizations commercial mortgage loans through its rmf business . our financial services segment sells substantially all of the residential loans it originates within a short period in the secondary mortgage market , the majority of which are sold on a servicing released , non-recourse basis . after the loans are sold , we retain potential liability for possible claims by purchasers that we breached certain limited industry-standard representations and warranties in the loan sale agreements . the following table sets forth selected financial and operational information related to our financial services segment : replace_table_token_13_th rmf rmf originates and sells into securitizations five , seven and ten year commercial first mortgage loans , which are secured by income producing properties . this business has become a significant contributor to financial services ' revenues . during the year ended november 30 , 2019 , rmf originated loans with a total principal balance of $ 1.6 billion , all of which were recorded as loans held-for-sale , except $ 15.3 million which were recorded as accrual loans within loans receivables , net , and sold $ 1.4 billion of loans into 11 separate securitizations . during the year ended november 30 , 2018 , rmf originated loans with a principal balance of $ 1.4 billion all of which were recorded as loans held-for-sale and sold $ 1.5 billion of loans into 16 separate securitizations . as of november 30 , 2019 and 2018 , originated loans with an unpaid balance of $ 158.4 million and $ 218.4 million , respectively , were sold into a securitization trust but not settled and thus were included as receivables , net . multifamily segment we have been actively involved , primarily through unconsolidated entities , in the development , construction and property management of multifamily rental properties . our multifamily segment focuses on developing a geographically diversified portfolio of institutional quality multifamily rental properties in select u.s. markets . originally , our multifamily segment focused on building multifamily properties and selling them shortly after they were completed . however , more recently we have focused on creating and participating in ventures that build multifamily properties with the intention of retaining them after they are completed . as of november 30 , 2019 and 2018 , our balance sheet had $ 1.1 billion and $ 874.2 million , respectively , of assets related to our multifamily segment , which included investments in unconsolidated entities of $ 561.2 million and $ 481.1 million , respectively . our net investment in our multifamily segment as of november 30 , 2019 and 2018 was $ 829.5 million and $ 703.6 million , respectively . during the year ended november 30 , 2019 , our multifamily segment sold , through its unconsolidated entities , two operating properties and an investment in an operating property resulting in the segment 's $ 28.1 million share of gains . the gain of $ 11.9 million recognized on the sale of the investment in an operating property and 31 recognition of our share of deferred development fees that were capitalized at the joint venture level are included in multifamily equity in earnings ( loss ) from unconsolidated entities and other gain , and are not included in net earnings ( loss ) of unconsolidated entities . during the year ended november 30 , 2018 , our multifamily segment sold , through its unconsolidated entities six operating properties and an investment in an operating property resulting in the segment 's $ 61.2 million share of gains . the gain of $ 15.7 million recognized on the sale of the investment in an operating property and recognition of our share of deferred development fees that were capitalized at the joint venture level are included in multifamily equity in earnings from unconsolidated entities and other gain , and are not included in net earnings of unconsolidated entities . our multifamily segment had equity investments in 19 and 22 unconsolidated entities , including lmv i and lmv ii , as of november 30 , 2019 and 2018 , respectively . as of november 30 , 2019 , our multifamily segment had interests in 63 communities with development costs of $ 7.4 billion , of which 31 communities were completed and operating , six communities were partially completed and leasing , 20 communities were under construction and the remaining communities were owned by joint ventures . as of november 30 , 2019 , our multifamily segment also had a pipeline of potential future projects , which were

demand for large volume orders has been at relatively low levels during the past several years . the main driver of demand in this market is capital spending in the chemical processing sector driven by end‑user demand for housing , automotive , energy and agricultural products . the chemical processing market is sensitive to oil prices , currency fluctuations and fiscal policies as well as world economic conditions and gdp growth . increased sales to the chemical processing industry in fiscal 2018 were related to improvement in global spending in the chemical processing sector . additional drivers of demand in this market were the increase in north american production of natural gas liquids and the further downstream processing of chemicals that may utilize equipment that requires high‑performance alloys . sales to the industrial gas turbine market have declined each year from fiscal 2014 to 2018. the collapse of oil prices in 2014 had an adverse impact on small-frame industrial gas turbines used to power oil platforms and transmission systems . as oil prices have moderately recovered , demand has shown improvement in the small-frame turbines . reported significant overcapacity in large-frame turbines primarily used for electrical generation combined with growth in renewable energy facilities has taken a toll on demand for large frame gas turbines . two of the large oem producers of large-frame turbines have reported weak demand and announced restructuring plans in their power generation businesses . while this period of weak demand is not expected to recover quickly , management believes that long‑term demand in this market will stabilize due to higher activity in power generation and alternative power systems . industrial gas turbines are favored in electric generating facilities due to low capital cost at installation , fewer emissions than traditional fossil fuel‑fired facilities and favorable natural gas prices provided by availability of non-conventional ( shale ) gas supplies . as the large-turbine overbuilt situation improves , demand for industrial gas turbines is expected to increase . volume shipped into the other markets category increased from fiscal 2014 to 2015 , then moderated in fiscal 2016 and improved in both fiscal 2017 and 2018. sales to this market in fiscal 2015 included some high-value special application projects with high average selling prices per pound . the industries in this category focus on upgrading overall product quality , improving product performance through increased efficiency , prolonging product life and lowering long‑term costs . companies in these industries are looking to achieve these goals through the use of “ advanced materials ” which support the increased use of high‑performance alloys in an expanding number of applications . in addition to supporting and expanding the traditional businesses of oil and gas , flue‑gas desulfurization , automotive and heat treating , the company expects increased levels of activity overall in non‑traditional markets such as fuel cells and alternative energy applications in the long term . planned equipment outage and upgrade the company is undergoing a significant planned equipment outage and upgrade in the company 's cold-finishing production area during the first quarter of fiscal 2019. certain components of one of the three annealing lines will be down for a planned upgrade which began in mid-october 2018. the duration is expected to be ten to twelve weeks , with the upgraded annealing line put back into service at the end of december 2018 or early january 2019. the additional capital expenditure related to this outage is approximately $ 2.0 million . this outage is necessary to attain the higher capacity levels expected from the company 's recent capital investments . production levels through the cold-finishing production area before the upgrade were at 13.5 million pounds , and the upgrade is expected to increase capacity to 18.0 million pounds . this outage is expected to have a significant impact on the company 's financial results in the first quarter of fiscal 2019 , with reduced revenue and reduced profitability to below breakeven . however , once complete , this line is expected to be one of the key drivers to revenue growth and strengthening profitability over the balance of fiscal 2019. summary of capital spending capital spending was $ 15.0 million and $ 11.1 million in fiscal 2017 and 2018 , respectively , and the forecast for capital spending in fiscal 2019 is approximately $ 16.0 million . the $ 16.0 million of planned capital spending in fiscal 2019 includes the completion of bright annealing upgrades of approximately $ 2.0 million . strategic acquisition activity growth through strategic acquisitions is an important part of the company 's overall strategy to increase shareholder value . during the third quarter of fiscal 2018 , we recorded an expense of $ 1.5 million related to certain legal 34 and due-diligence costs incurred in a strategic acquisition initiative that reached late stage negotiations , but ultimately did not result in an executed purchase agreement . the company remains committed to pursuing alternative strategies to increase shareholder value and strengthen the company . chief executive officer transition during the third quarter of fiscal 2018 , mark m. comerford informed the board of directors of his intention to retire as president and chief executive officer and a director of the company . effective as of may 29 , 2018 , the board of directors appointed michael l. shor as interim president and chief executive officer of the company . effective september 1 , 2018 , the board of directors unanimously appointed mr. shor as the company 's president and chief executive officer . in connection with his interim appointment , mr. shor resigned as a member of the corporate governance and nominating committee of the company 's board and then , upon accepting the permanent position , mr. shor stepped down from his role as chairman of the board but remains a member of the board . robert h. getz , a director of the company since 2006 , has been elected by the board to replace mr. story_separator_special_tag selling , general and administrative expense was $ 47.1 million for fiscal 2018 , an increase of $ 4.7 million , or 11.1 % , from $ 42.4 million in fiscal 2017. the significant drivers of the increase in fiscal 2018 included two events that took place during the third quarter of fiscal 2018. first , expense of $ 1.5 million was recorded related to certain legal and due diligence costs incurred in a strategic acquisition initiative that reached late stage negotiations but ultimately did not result in an executed purchase agreement . second , expense of $ 1.3 million was recorded related to the retirement of the company 's chief executive officer . a portion of the increase in cost was attributable to higher management incentive compensation expense of $ 1.1 million and $ 0.5 million of increased bad debt expense . as a result of the above-mentioned charges , selling , general and administrative expense as a percentage of net revenues increased to 10.8 % for fiscal 2018 compared to 10.7 % for the same period of fiscal 2017. research and technical expense . research and technical expense was $ 3.8 million , or 0.9 % of revenue , for fiscal 2018 , compared to $ 3.9 million , or 1.0 % of net revenue , in fiscal 2017. operating income/ ( loss ) . as a result of the above factors , operating loss in fiscal 2018 was $ ( 3.2 ) million , compared to operating loss of $ ( 16.5 ) million in fiscal 2017. income taxes . income tax expense was $ 17.7 million during fiscal 2018 , a difference of $ 24.7 million from a benefit of $ 7.0 million in the same period of fiscal 2017. the higher tax expense for fiscal 2018 as compared to fiscal 2017 is primarily attributable to the passage of the tax cuts and jobs act during fiscal 2018 , which required the company to revalue its deferred tax assets based on the lowering of the statutory tax rate of 35 % to 21 % ( 24.5 % in fiscal 2018 ) . the section entitled “ impact of the tax cuts and jobs act on deferred tax assets ” and note 6 to the consolidated financial statements in this annual report on form 10-k for the year ended september 30 , 2018 set forth additional information regarding the impact of the tax cuts and jobs act . net income/ ( loss ) . as a result of the above factors , net loss for fiscal 2018 was $ ( 21.8 ) million ( which includes a $ 20.9 million impact of the tax cuts and jobs act and other special charges ) , an increase of $ 11.6 million from net loss of $ ( 10.2 ) million in fiscal 2017 . 41 year ended september 30 , 2017 compared to year ended september 30 , 2016 ( $ in thousands , except per share figures ) replace_table_token_15_th 42 the following table includes a breakdown of net revenues , shipments and average selling prices to the markets served by the company for the periods shown . by market replace_table_token_16_th net revenues . net revenues were $ 395.2 million in fiscal 2017 , a decrease of 2.7 % from $ 406.4 million in fiscal 2016 , due to a decrease in average selling price per pound partially offset by an increase in volume . the average product selling price was $ 20.30 per pound in fiscal 2017 , a decrease of 4.7 % , or $ ( 1.01 ) , from $ 21.31 per pound in fiscal 2016. volume was 18.1 million pounds in fiscal 2017 , an increase of 0.8 % from 18.0 million pounds in fiscal 2016 with increases in the aerospace , chemical processing and other markets . the average product selling price per pound decreased as a result of pricing competition and lower levels of specialty application projects , which decreased average selling price per pound by approximately $ 1.35 , and a lower-value product mix , which decreased average selling price per pound by approximately $ 0.43 , partially offset by higher raw material market prices , which increased average selling price by approximately $ 0.77 per pound . sales to the aerospace market were $ 192.5 million in fiscal 2017 , a decrease of 2.5 % from $ 197.4 million in fiscal 2016 , due to a 3.9 % , or $ 0.88 , decrease in the average selling price per pound , partially offset by a 1.5 % increase in volume . the increase in volume reflects solid aerospace demand especially with respect to new generation engines . the average selling price per pound decrease reflects an increase in pricing competition and a change to a lower-value product mix , which decreased average selling price per pound by approximately $ 1.03 and $ 0.63 , respectively , partially offset by a change in market prices of raw materials , which increased average selling price per pound by approximately $ 0.78. sales to the chemical processing market were $ 70.5 million in fiscal 2017 , a decrease of 2.6 % from $ 72.3 million in fiscal 2016 , due to a 13.2 % , or $ 3.40 , decrease in the average selling price per pound , partially offset by a 12.3 % increase in volume . volumes increased in fiscal 2017 from very low levels . the decrease in the average selling price per pound reflects a change to a lower-value product mix and increased pricing competition , which decreased average selling price per pound by approximately $ 2.69 and $ 1.16 , respectively , partially offset by higher raw material market prices , which increased average selling price per pound by approximately $ 0.45 . 43 sales to the industrial gas turbine market were $ 61.5 million in fiscal 2017 , a decrease of 9.6 % from $ 68.1

liquidity and capital resources comparative cash flow analysis ( 2017 to 2018 ) during fiscal 2018 , the company 's primary source of cash was cash on‑hand and the revolving credit facility which was temporarily drawn against in the fourth quarter of fiscal 2018 , however paid back to zero by september 30 , 2018. at september 30 , 2018 , the company had cash and cash equivalents of $ 9.8 million , inclusive of $ 7.3 million that was held by foreign subsidiaries in various currencies , compared to $ 46.3 million at september 30 , 2017 . 44 net cash used in operating activities was $ 13.7 million in fiscal 2018 compared to net cash provided by operating activities of $ 13.1 million in fiscal 2017. the cash used in operating activities during fiscal 2018 was driven by increases in controllable working capital ( inventory , accounts receivable , accounts payable and accrued expenses ) of $ 32.3 million ( excluding the impact of foreign exchange ) compared to cash used of $ 2.8 million in fiscal 2017 , as well as higher pension contributions of $ 8.8 million as compared to $ 6.8 million during fiscal 2017. additionally , the absence of cash provided in fiscal 2018 from restricted cash contributed to lower cash generated in fiscal 2018 as compared to fiscal 2017 of approximately $ 5.4 million . these factors were partially offset by income generated from operations excluding the impacts of expense that do not impact cash such as depreciation and amortization expense , pension expense and income tax expense .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 comparative cash flow analysis ( 2017 to 2018 ) during fiscal 2018 , the company 's primary source of cash was cash on‑hand and the revolving credit facility which was temporarily drawn against in the fourth quarter of fiscal 2018 , however paid back to zero by september 30 , 2018. at september 30 , 2018 , the company had cash and cash equivalents of $ 9.8 million , inclusive of $ 7.3 million that was held by foreign subsidiaries in various currencies , compared to $ 46.3 million at september 30 , 2017 . 44 net cash used in operating activities was $ 13.7 million in fiscal 2018 compared to net cash provided by operating activities of $ 13.1 million in fiscal 2017. the cash used in operating activities during fiscal 2018 was driven by increases in controllable working capital ( inventory , accounts receivable , accounts payable and accrued expenses ) of $ 32.3 million ( excluding the impact of foreign exchange ) compared to cash used of $ 2.8 million in fiscal 2017 , as well as higher pension contributions of $ 8.8 million as compared to $ 6.8 million during fiscal 2017. additionally , the absence of cash provided in fiscal 2018 from restricted cash contributed to lower cash generated in fiscal 2018 as compared to fiscal 2017 of approximately $ 5.4 million . these factors were partially offset by income generated from operations excluding the impacts of expense that do not impact cash such as depreciation and amortization expense , pension expense and income tax expense . ``` Suspicious Activity Report : demand for large volume orders has been at relatively low levels during the past several years . the main driver of demand in this market is capital spending in the chemical processing sector driven by end‑user demand for housing , automotive , energy and agricultural products . the chemical processing market is sensitive to oil prices , currency fluctuations and fiscal policies as well as world economic conditions and gdp growth . increased sales to the chemical processing industry in fiscal 2018 were related to improvement in global spending in the chemical processing sector . additional drivers of demand in this market were the increase in north american production of natural gas liquids and the further downstream processing of chemicals that may utilize equipment that requires high‑performance alloys . sales to the industrial gas turbine market have declined each year from fiscal 2014 to 2018. the collapse of oil prices in 2014 had an adverse impact on small-frame industrial gas turbines used to power oil platforms and transmission systems . as oil prices have moderately recovered , demand has shown improvement in the small-frame turbines . reported significant overcapacity in large-frame turbines primarily used for electrical generation combined with growth in renewable energy facilities has taken a toll on demand for large frame gas turbines . two of the large oem producers of large-frame turbines have reported weak demand and announced restructuring plans in their power generation businesses . while this period of weak demand is not expected to recover quickly , management believes that long‑term demand in this market will stabilize due to higher activity in power generation and alternative power systems . industrial gas turbines are favored in electric generating facilities due to low capital cost at installation , fewer emissions than traditional fossil fuel‑fired facilities and favorable natural gas prices provided by availability of non-conventional ( shale ) gas supplies . as the large-turbine overbuilt situation improves , demand for industrial gas turbines is expected to increase . volume shipped into the other markets category increased from fiscal 2014 to 2015 , then moderated in fiscal 2016 and improved in both fiscal 2017 and 2018. sales to this market in fiscal 2015 included some high-value special application projects with high average selling prices per pound . the industries in this category focus on upgrading overall product quality , improving product performance through increased efficiency , prolonging product life and lowering long‑term costs . companies in these industries are looking to achieve these goals through the use of “ advanced materials ” which support the increased use of high‑performance alloys in an expanding number of applications . in addition to supporting and expanding the traditional businesses of oil and gas , flue‑gas desulfurization , automotive and heat treating , the company expects increased levels of activity overall in non‑traditional markets such as fuel cells and alternative energy applications in the long term . planned equipment outage and upgrade the company is undergoing a significant planned equipment outage and upgrade in the company 's cold-finishing production area during the first quarter of fiscal 2019. certain components of one of the three annealing lines will be down for a planned upgrade which began in mid-october 2018. the duration is expected to be ten to twelve weeks , with the upgraded annealing line put back into service at the end of december 2018 or early january 2019. the additional capital expenditure related to this outage is approximately $ 2.0 million . this outage is necessary to attain the higher capacity levels expected from the company 's recent capital investments . production levels through the cold-finishing production area before the upgrade were at 13.5 million pounds , and the upgrade is expected to increase capacity to 18.0 million pounds . this outage is expected to have a significant impact on the company 's financial results in the first quarter of fiscal 2019 , with reduced revenue and reduced profitability to below breakeven . however , once complete , this line is expected to be one of the key drivers to revenue growth and strengthening profitability over the balance of fiscal 2019. summary of capital spending capital spending was $ 15.0 million and $ 11.1 million in fiscal 2017 and 2018 , respectively , and the forecast for capital spending in fiscal 2019 is approximately $ 16.0 million . the $ 16.0 million of planned capital spending in fiscal 2019 includes the completion of bright annealing upgrades of approximately $ 2.0 million . strategic acquisition activity growth through strategic acquisitions is an important part of the company 's overall strategy to increase shareholder value . during the third quarter of fiscal 2018 , we recorded an expense of $ 1.5 million related to certain legal 34 and due-diligence costs incurred in a strategic acquisition initiative that reached late stage negotiations , but ultimately did not result in an executed purchase agreement . the company remains committed to pursuing alternative strategies to increase shareholder value and strengthen the company . chief executive officer transition during the third quarter of fiscal 2018 , mark m. comerford informed the board of directors of his intention to retire as president and chief executive officer and a director of the company . effective as of may 29 , 2018 , the board of directors appointed michael l. shor as interim president and chief executive officer of the company . effective september 1 , 2018 , the board of directors unanimously appointed mr. shor as the company 's president and chief executive officer . in connection with his interim appointment , mr. shor resigned as a member of the corporate governance and nominating committee of the company 's board and then , upon accepting the permanent position , mr. shor stepped down from his role as chairman of the board but remains a member of the board . robert h. getz , a director of the company since 2006 , has been elected by the board to replace mr. story_separator_special_tag selling , general and administrative expense was $ 47.1 million for fiscal 2018 , an increase of $ 4.7 million , or 11.1 % , from $ 42.4 million in fiscal 2017. the significant drivers of the increase in fiscal 2018 included two events that took place during the third quarter of fiscal 2018. first , expense of $ 1.5 million was recorded related to certain legal and due diligence costs incurred in a strategic acquisition initiative that reached late stage negotiations but ultimately did not result in an executed purchase agreement . second , expense of $ 1.3 million was recorded related to the retirement of the company 's chief executive officer . a portion of the increase in cost was attributable to higher management incentive compensation expense of $ 1.1 million and $ 0.5 million of increased bad debt expense . as a result of the above-mentioned charges , selling , general and administrative expense as a percentage of net revenues increased to 10.8 % for fiscal 2018 compared to 10.7 % for the same period of fiscal 2017. research and technical expense . research and technical expense was $ 3.8 million , or 0.9 % of revenue , for fiscal 2018 , compared to $ 3.9 million , or 1.0 % of net revenue , in fiscal 2017. operating income/ ( loss ) . as a result of the above factors , operating loss in fiscal 2018 was $ ( 3.2 ) million , compared to operating loss of $ ( 16.5 ) million in fiscal 2017. income taxes . income tax expense was $ 17.7 million during fiscal 2018 , a difference of $ 24.7 million from a benefit of $ 7.0 million in the same period of fiscal 2017. the higher tax expense for fiscal 2018 as compared to fiscal 2017 is primarily attributable to the passage of the tax cuts and jobs act during fiscal 2018 , which required the company to revalue its deferred tax assets based on the lowering of the statutory tax rate of 35 % to 21 % ( 24.5 % in fiscal 2018 ) . the section entitled “ impact of the tax cuts and jobs act on deferred tax assets ” and note 6 to the consolidated financial statements in this annual report on form 10-k for the year ended september 30 , 2018 set forth additional information regarding the impact of the tax cuts and jobs act . net income/ ( loss ) . as a result of the above factors , net loss for fiscal 2018 was $ ( 21.8 ) million ( which includes a $ 20.9 million impact of the tax cuts and jobs act and other special charges ) , an increase of $ 11.6 million from net loss of $ ( 10.2 ) million in fiscal 2017 . 41 year ended september 30 , 2017 compared to year ended september 30 , 2016 ( $ in thousands , except per share figures ) replace_table_token_15_th 42 the following table includes a breakdown of net revenues , shipments and average selling prices to the markets served by the company for the periods shown . by market replace_table_token_16_th net revenues . net revenues were $ 395.2 million in fiscal 2017 , a decrease of 2.7 % from $ 406.4 million in fiscal 2016 , due to a decrease in average selling price per pound partially offset by an increase in volume . the average product selling price was $ 20.30 per pound in fiscal 2017 , a decrease of 4.7 % , or $ ( 1.01 ) , from $ 21.31 per pound in fiscal 2016. volume was 18.1 million pounds in fiscal 2017 , an increase of 0.8 % from 18.0 million pounds in fiscal 2016 with increases in the aerospace , chemical processing and other markets . the average product selling price per pound decreased as a result of pricing competition and lower levels of specialty application projects , which decreased average selling price per pound by approximately $ 1.35 , and a lower-value product mix , which decreased average selling price per pound by approximately $ 0.43 , partially offset by higher raw material market prices , which increased average selling price by approximately $ 0.77 per pound . sales to the aerospace market were $ 192.5 million in fiscal 2017 , a decrease of 2.5 % from $ 197.4 million in fiscal 2016 , due to a 3.9 % , or $ 0.88 , decrease in the average selling price per pound , partially offset by a 1.5 % increase in volume . the increase in volume reflects solid aerospace demand especially with respect to new generation engines . the average selling price per pound decrease reflects an increase in pricing competition and a change to a lower-value product mix , which decreased average selling price per pound by approximately $ 1.03 and $ 0.63 , respectively , partially offset by a change in market prices of raw materials , which increased average selling price per pound by approximately $ 0.78. sales to the chemical processing market were $ 70.5 million in fiscal 2017 , a decrease of 2.6 % from $ 72.3 million in fiscal 2016 , due to a 13.2 % , or $ 3.40 , decrease in the average selling price per pound , partially offset by a 12.3 % increase in volume . volumes increased in fiscal 2017 from very low levels . the decrease in the average selling price per pound reflects a change to a lower-value product mix and increased pricing competition , which decreased average selling price per pound by approximately $ 2.69 and $ 1.16 , respectively , partially offset by higher raw material market prices , which increased average selling price per pound by approximately $ 0.45 . 43 sales to the industrial gas turbine market were $ 61.5 million in fiscal 2017 , a decrease of 9.6 % from $ 68.1

cbiz management will determine the timing and amount of the transaction based on its evaluation of market conditions and other factors . pursuant to previously authorized share repurchase programs , we repurchased 2.3 million shares of our common stock at a total cost of approximately $ 57.6 million in 2020 , 1.2 million shares at a total cost of approximately $ 25.3 million in 2019 and 0.8 million shares at a total cost of approximately $ 15.6 million in 2018. refer to note 13 , common stock , to the accompanying consolidated financial statements for further discussion on the share repurchase program . recent accomplishments and other events workplace awards - in 2020 , we were honored and recognized for 68 various national and local market awards . a sample of the awards won include : best workplace in consulting and professional services - we were named one of the “ 2020 best workplaces in consulting and professional services ” by great place to work . alliance for workplace excellence - we were recognized for three awards in 2020 by the alliance for workplace excellence ; ( i ) workplace excellence seal of approval , ( ii ) health & wellness seal of approval and ( iii ) certificate of recognition – best practices for supporting works 50+ . 21 best places to work - we were selected and honored for the sixth consecutive year as a “ best places to work in insurance ” by business insurance magazine based on our commitment to attracting , developing and retaining great talent through employee benefits and other programs . we were recognized for this award based on core focus areas such as leadership and planning , corporate culture , communications , work environment and overall engagement . 2020 healthiest 100 workplaces in america – springbuk evaluated over 1,000 applicants across six key categories : culture and leadership commitment , foundational components , strategic planning , marketing and communications , programming and interventions , and reporting and analytics . we were honored to be named one of the top 100 winners for the third time . 2020 best and brightest companies in the nation top 101 - for the fifth year in a row , we were honored as a “ best and brightest company ” by nabr based on our commitment to human resource practices and employee enrichment . 2020 best and brightness in wellness – we were honored by nabr , for the fourth consecutive time , as an organization that promotes a culture of wellness . results of operations - continuing operations we provide professional business services that help clients manage their finances and employees . we deliver our integrated services through the following three practice groups : financial services , benefits and insurance services and national practices . a description of these groups ' operating results and factors affecting their businesses is provided below . same-unit revenue represents total revenue adjusted to reflect comparable periods of activity for acquisitions and divestitures . for example , for a business acquired on july 1 , 2019 , revenue for the period january 1 , 2020 through june 30 , 2020 would be reported as revenue from acquired businesses ; same-unit revenue would include revenue for the periods july 1 through december 31 of both years . divested operations represent operations that did not meet the criteria for treatment as discontinued operations . those businesses that have met the requirements to be treated as a discontinued operation are eliminated from continuing operations for all periods presented below . revenue the following table summarizes total revenue for the years ended december 31 , 2020 , 2019 and 2018 : replace_table_token_5_th a detailed discussion of same-unit revenue by practice group is included under “ operating practice groups . ” non-qualified deferred compensation plan - we sponsor a non-qualified deferred compensation plan , under which a cbiz employee 's compensation deferral is held in a rabbi trust and invested accordingly as directed by the employee . income and expenses related to the deferred compensation plan are included in “ operating expenses , ” “ gross margin ” and “ corporate general & administrative expenses ” and are directly offset by deferred compensation gains or losses in “ other income ( expense ) , net ” in the accompanying consolidated statements of comprehensive income . the deferred compensation plan has no impact on “ income from continuing operations before income tax expense ” or diluted earnings per share from continuing operations . 22 operating expenses the following table presents our operating expenses for the years ended december 31 , 2020 , 2019 and 2018 : replace_table_token_6_th 2020 compared to 2019 - our operating expenses increased by $ 1.9 million . operating expense as a percentage of revenue decreased to 85.6 % of revenue from 86.8 % of revenue for the prior year . the deferred compensation plan increased operating expenses by $ 13.8 million and $ 17.2 million in 2020 and 2019 , respectively . excluding the impact of the deferred compensation plan , operating expenses would have been $ 811.5 million , or 84.2 % of revenue , in 2020 compared to $ 806.3 million , or 85.0 % of revenue , in 2019. the majority of our operating expenses relate to personnel costs , which includes ( i ) salaries and benefits , ( ii ) commissions paid to producers ( iii ) incentive compensation and ( iv ) share-based compensation . personnel costs increased $ 24.2 million , or 3.8 % . acquisitions contributed approximately $ 12.1 million to personnel costs . the increase in personnel costs was offset by approximately $ 20.1 million lower travel and entertainment and other discretionary spending in 2020 due to covid-19 . personnel costs and other operating expenses are discussed in further detail under “ operating practice groups . story_separator_special_tag we repurchased 2.4 million shares of our common stock at a total cost of approximately $ 59.6 million in 2020 , 1.3 million shares at a total cost of approximately $ 27.2 million in 2019 and 0.9 million shares at a total cost of approximately $ 17.5 million in 2018. refer to note 13 , common stock , to the accompanying consolidated financial statements for further discussion on the share repurchase program . cash requirements for 2021 - cash requirements for 2021 will include acquisitions , interest payments on debt , seasonal working capital requirements , contingent earnout payments for previous acquisitions , share repurchases and capital expenditures . we believe that cash provided by operations , as well as available funds under our credit facility will be sufficient to meet cash requirements for the next 12 months . 29 obligations and commitments our aggregate amount of future obligations for the next five years and thereafter is set forth below ( in thousands ) : replace_table_token_18_th ( 1 ) our credit facility matures on april 3 , 2023. interest on the credit facility is not determinable due to the revolving nature of the credit facility and the variability of the related interest rate . dollar amounts are estimates based on applying the 2.45 % weighted average rate of the credit facility at december 31 , 2020 to the $ 108.0 million outstanding balance of the credit facility at december 31 , 2020 . ( 2 ) operating leases include the minimum rent commitments under non-cancelable operating leases . amount excludes cash expected to be received under subleases and impact of future renewals . ( 3 ) represents the contingent purchase price liability that is expected to be paid over the next five years resulting from business acquisitions . for the years ended december 31 , 2021 , 2022 , 2023 , 2024 , and 2025 , the cash portions of the contingent purchase price liability are $ 12.2 million , $ 15.4 million , $ 9.0 million , $ 13.0 million , and $ 0.8 million , respectively , with the remaining balance representing the stock portions . ( 4 ) other liabilities include letters of credit and license bonds , contingencies related to the purchase of client lists and federal and state income taxes . for further discussion regarding commitments and contingencies , refer to note 11 , commitments and contingencies , to the accompanying consolidated financial statements . the liability for unrecognized tax benefits of $ 1.5 million under fasb asc topic 740 , income taxes , is excluded , since we are unable to reasonably estimate the timing of cash settlements with the respective tax authorities . off-balance sheet arrangements - we maintain asas with independent cpa firms ( as described more fully under “ business - financial services ” and in note 1 , basis of presentation and significant accounting policies , to the accompanying consolidated financial statements ) , which qualify as variable interest entities . the accompanying consolidated financial statements do not reflect the operations or accounts of variable interest entities as the impact is not material to the consolidated financial condition , results of operations , or cash flows of cbiz . we provide letters of credit for insurance needs as well as to landlords ( lessors ) of our leased premises in lieu of cash security deposits . letters of credit totaled $ 1.7 million and $ 1.3 million at december 31 , 2020 and 2019. in addition , we provide license bonds to various state agencies to meet certain licensing requirements . the amount of license bonds outstanding was $ 2.2 million and $ 2.3 million at december 31 , 2020 and 2019 , respectively . we have various agreements under which we may be obligated to indemnify the other party with respect to certain matters . generally , these indemnification clauses are included in contracts arising in the normal course of business under which we customarily agree to hold the other party harmless against losses arising from a breach of representations , warranties , covenants or agreements , related to matters such as title to assets sold and certain tax matters . payment by us under such indemnification clauses are generally conditioned upon the other party making a claim . such claims are typically subject to challenge by us and to dispute resolution procedures specified in the particular contract . further , our obligations under these agreements may be limited in terms of time and or amount and , in some instances , we may have recourse against third parties for certain payments made by us . it is not possible to predict the maximum potential amount of future payments under these indemnification agreements due to the conditional nature of our obligations and the unique facts of each particular agreement . historically , we have not made any payments under these agreements that have been material individually or in the aggregate . as of december 31 , 2020 , we were not aware of any obligations arising under indemnification agreements that would require material payments . interest rate risk management - we do not purchase or hold any derivative instruments for trading or speculative purposes . we utilize interest rate swaps to manage interest rate risk exposure associated with our floating-rate debt under the credit facility . under these interest rate swap contracts , we receive cash flows from counterparties at variable rates based on the london interbank offered rate ( “ libor ” ) and pay the counterparties a fixed rate . to mitigate counterparty credit risk , we only enter into contracts with selected major financial institutions with investment grade ratings and continually assess their creditworthiness . there are no credit risk-related contingent features in our interest rate swaps nor do the swaps contain provisions under which we would be required to post collateral . 30 as of december 31 , 2020 , the notional value of all

cash provided by operating activities 2020 compared to 2019 - operating activities generated cash of $ 146.8 million during 2020 and consisted of net income of $ 78.3 million , adjusted for certain non-cash items , such as depreciation and amortization expense of $ 23.1 million , share-based compensation expense of $ 8.9 million , bad debt expense of $ 4.4 million , as well as $ 35.0 million of cash generated from working capital management . the $ 48.7 million increase in cash provided by operating activities in 2020 as compared to 2019 was primarily due to a net increase of $ 46.4 million in cash generated from working capital of which approximately $ 16.3 million related to the deferral of payroll tax deposit and payment , as well as an increase of $ 7.6 million in net income , offset by $ 5.3 million decrease in non-cash items . 2019 compared to 2018 - cash flow from operating activities generated cash of $ 98.2 million during 2019 and consisted of net income of $ 70.7 million , adjusted for certain non-cash items , such as depreciation and amortization expense of $ 22.3 million , deferred income taxes of $ 9.7 million , and share-based compensation expense of $ 7.3 million , as well as a working capital use of cash of $ 11.4 million . the $ 7.1 million decrease in cash provided by operating activities in 2019 compared to 2018 was primarily due to a net decrease in cash from working capital of $ 16.5 million , which was offset by the increase in net income of $ 9.1 million . investing activities the majority of our investing activities relate to acquisitions , capital expenditures and net activity related to funds held for clients .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 2020 compared to 2019 - operating activities generated cash of $ 146.8 million during 2020 and consisted of net income of $ 78.3 million , adjusted for certain non-cash items , such as depreciation and amortization expense of $ 23.1 million , share-based compensation expense of $ 8.9 million , bad debt expense of $ 4.4 million , as well as $ 35.0 million of cash generated from working capital management . the $ 48.7 million increase in cash provided by operating activities in 2020 as compared to 2019 was primarily due to a net increase of $ 46.4 million in cash generated from working capital of which approximately $ 16.3 million related to the deferral of payroll tax deposit and payment , as well as an increase of $ 7.6 million in net income , offset by $ 5.3 million decrease in non-cash items . 2019 compared to 2018 - cash flow from operating activities generated cash of $ 98.2 million during 2019 and consisted of net income of $ 70.7 million , adjusted for certain non-cash items , such as depreciation and amortization expense of $ 22.3 million , deferred income taxes of $ 9.7 million , and share-based compensation expense of $ 7.3 million , as well as a working capital use of cash of $ 11.4 million . the $ 7.1 million decrease in cash provided by operating activities in 2019 compared to 2018 was primarily due to a net decrease in cash from working capital of $ 16.5 million , which was offset by the increase in net income of $ 9.1 million . investing activities the majority of our investing activities relate to acquisitions , capital expenditures and net activity related to funds held for clients . ``` Suspicious Activity Report : cbiz management will determine the timing and amount of the transaction based on its evaluation of market conditions and other factors . pursuant to previously authorized share repurchase programs , we repurchased 2.3 million shares of our common stock at a total cost of approximately $ 57.6 million in 2020 , 1.2 million shares at a total cost of approximately $ 25.3 million in 2019 and 0.8 million shares at a total cost of approximately $ 15.6 million in 2018. refer to note 13 , common stock , to the accompanying consolidated financial statements for further discussion on the share repurchase program . recent accomplishments and other events workplace awards - in 2020 , we were honored and recognized for 68 various national and local market awards . a sample of the awards won include : best workplace in consulting and professional services - we were named one of the “ 2020 best workplaces in consulting and professional services ” by great place to work . alliance for workplace excellence - we were recognized for three awards in 2020 by the alliance for workplace excellence ; ( i ) workplace excellence seal of approval , ( ii ) health & wellness seal of approval and ( iii ) certificate of recognition – best practices for supporting works 50+ . 21 best places to work - we were selected and honored for the sixth consecutive year as a “ best places to work in insurance ” by business insurance magazine based on our commitment to attracting , developing and retaining great talent through employee benefits and other programs . we were recognized for this award based on core focus areas such as leadership and planning , corporate culture , communications , work environment and overall engagement . 2020 healthiest 100 workplaces in america – springbuk evaluated over 1,000 applicants across six key categories : culture and leadership commitment , foundational components , strategic planning , marketing and communications , programming and interventions , and reporting and analytics . we were honored to be named one of the top 100 winners for the third time . 2020 best and brightest companies in the nation top 101 - for the fifth year in a row , we were honored as a “ best and brightest company ” by nabr based on our commitment to human resource practices and employee enrichment . 2020 best and brightness in wellness – we were honored by nabr , for the fourth consecutive time , as an organization that promotes a culture of wellness . results of operations - continuing operations we provide professional business services that help clients manage their finances and employees . we deliver our integrated services through the following three practice groups : financial services , benefits and insurance services and national practices . a description of these groups ' operating results and factors affecting their businesses is provided below . same-unit revenue represents total revenue adjusted to reflect comparable periods of activity for acquisitions and divestitures . for example , for a business acquired on july 1 , 2019 , revenue for the period january 1 , 2020 through june 30 , 2020 would be reported as revenue from acquired businesses ; same-unit revenue would include revenue for the periods july 1 through december 31 of both years . divested operations represent operations that did not meet the criteria for treatment as discontinued operations . those businesses that have met the requirements to be treated as a discontinued operation are eliminated from continuing operations for all periods presented below . revenue the following table summarizes total revenue for the years ended december 31 , 2020 , 2019 and 2018 : replace_table_token_5_th a detailed discussion of same-unit revenue by practice group is included under “ operating practice groups . ” non-qualified deferred compensation plan - we sponsor a non-qualified deferred compensation plan , under which a cbiz employee 's compensation deferral is held in a rabbi trust and invested accordingly as directed by the employee . income and expenses related to the deferred compensation plan are included in “ operating expenses , ” “ gross margin ” and “ corporate general & administrative expenses ” and are directly offset by deferred compensation gains or losses in “ other income ( expense ) , net ” in the accompanying consolidated statements of comprehensive income . the deferred compensation plan has no impact on “ income from continuing operations before income tax expense ” or diluted earnings per share from continuing operations . 22 operating expenses the following table presents our operating expenses for the years ended december 31 , 2020 , 2019 and 2018 : replace_table_token_6_th 2020 compared to 2019 - our operating expenses increased by $ 1.9 million . operating expense as a percentage of revenue decreased to 85.6 % of revenue from 86.8 % of revenue for the prior year . the deferred compensation plan increased operating expenses by $ 13.8 million and $ 17.2 million in 2020 and 2019 , respectively . excluding the impact of the deferred compensation plan , operating expenses would have been $ 811.5 million , or 84.2 % of revenue , in 2020 compared to $ 806.3 million , or 85.0 % of revenue , in 2019. the majority of our operating expenses relate to personnel costs , which includes ( i ) salaries and benefits , ( ii ) commissions paid to producers ( iii ) incentive compensation and ( iv ) share-based compensation . personnel costs increased $ 24.2 million , or 3.8 % . acquisitions contributed approximately $ 12.1 million to personnel costs . the increase in personnel costs was offset by approximately $ 20.1 million lower travel and entertainment and other discretionary spending in 2020 due to covid-19 . personnel costs and other operating expenses are discussed in further detail under “ operating practice groups . story_separator_special_tag we repurchased 2.4 million shares of our common stock at a total cost of approximately $ 59.6 million in 2020 , 1.3 million shares at a total cost of approximately $ 27.2 million in 2019 and 0.9 million shares at a total cost of approximately $ 17.5 million in 2018. refer to note 13 , common stock , to the accompanying consolidated financial statements for further discussion on the share repurchase program . cash requirements for 2021 - cash requirements for 2021 will include acquisitions , interest payments on debt , seasonal working capital requirements , contingent earnout payments for previous acquisitions , share repurchases and capital expenditures . we believe that cash provided by operations , as well as available funds under our credit facility will be sufficient to meet cash requirements for the next 12 months . 29 obligations and commitments our aggregate amount of future obligations for the next five years and thereafter is set forth below ( in thousands ) : replace_table_token_18_th ( 1 ) our credit facility matures on april 3 , 2023. interest on the credit facility is not determinable due to the revolving nature of the credit facility and the variability of the related interest rate . dollar amounts are estimates based on applying the 2.45 % weighted average rate of the credit facility at december 31 , 2020 to the $ 108.0 million outstanding balance of the credit facility at december 31 , 2020 . ( 2 ) operating leases include the minimum rent commitments under non-cancelable operating leases . amount excludes cash expected to be received under subleases and impact of future renewals . ( 3 ) represents the contingent purchase price liability that is expected to be paid over the next five years resulting from business acquisitions . for the years ended december 31 , 2021 , 2022 , 2023 , 2024 , and 2025 , the cash portions of the contingent purchase price liability are $ 12.2 million , $ 15.4 million , $ 9.0 million , $ 13.0 million , and $ 0.8 million , respectively , with the remaining balance representing the stock portions . ( 4 ) other liabilities include letters of credit and license bonds , contingencies related to the purchase of client lists and federal and state income taxes . for further discussion regarding commitments and contingencies , refer to note 11 , commitments and contingencies , to the accompanying consolidated financial statements . the liability for unrecognized tax benefits of $ 1.5 million under fasb asc topic 740 , income taxes , is excluded , since we are unable to reasonably estimate the timing of cash settlements with the respective tax authorities . off-balance sheet arrangements - we maintain asas with independent cpa firms ( as described more fully under “ business - financial services ” and in note 1 , basis of presentation and significant accounting policies , to the accompanying consolidated financial statements ) , which qualify as variable interest entities . the accompanying consolidated financial statements do not reflect the operations or accounts of variable interest entities as the impact is not material to the consolidated financial condition , results of operations , or cash flows of cbiz . we provide letters of credit for insurance needs as well as to landlords ( lessors ) of our leased premises in lieu of cash security deposits . letters of credit totaled $ 1.7 million and $ 1.3 million at december 31 , 2020 and 2019. in addition , we provide license bonds to various state agencies to meet certain licensing requirements . the amount of license bonds outstanding was $ 2.2 million and $ 2.3 million at december 31 , 2020 and 2019 , respectively . we have various agreements under which we may be obligated to indemnify the other party with respect to certain matters . generally , these indemnification clauses are included in contracts arising in the normal course of business under which we customarily agree to hold the other party harmless against losses arising from a breach of representations , warranties , covenants or agreements , related to matters such as title to assets sold and certain tax matters . payment by us under such indemnification clauses are generally conditioned upon the other party making a claim . such claims are typically subject to challenge by us and to dispute resolution procedures specified in the particular contract . further , our obligations under these agreements may be limited in terms of time and or amount and , in some instances , we may have recourse against third parties for certain payments made by us . it is not possible to predict the maximum potential amount of future payments under these indemnification agreements due to the conditional nature of our obligations and the unique facts of each particular agreement . historically , we have not made any payments under these agreements that have been material individually or in the aggregate . as of december 31 , 2020 , we were not aware of any obligations arising under indemnification agreements that would require material payments . interest rate risk management - we do not purchase or hold any derivative instruments for trading or speculative purposes . we utilize interest rate swaps to manage interest rate risk exposure associated with our floating-rate debt under the credit facility . under these interest rate swap contracts , we receive cash flows from counterparties at variable rates based on the london interbank offered rate ( “ libor ” ) and pay the counterparties a fixed rate . to mitigate counterparty credit risk , we only enter into contracts with selected major financial institutions with investment grade ratings and continually assess their creditworthiness . there are no credit risk-related contingent features in our interest rate swaps nor do the swaps contain provisions under which we would be required to post collateral . 30 as of december 31 , 2020 , the notional value of all

it also included provisions for legalizing on a federal level hemp 's cultivation , transport and sale for the first time in more than 75 years . hemp , not previously distinguished by the federal government from cannabis , a schedule 1 drug and banned as an agricultural crop , lacks substantive plant biology research and suffers from suboptimal genetics , highly fragmented germplasm and rampant inconsistencies . we are targeting hemp-based solutions that allow farmers to reliably and consistently achieve compliance with usda regulations , through varieties with improved functionality and application of specific attributes such as select cannabinoid contents for health and wellness , enhanced proteins profiles for plant-based dietary applications and industrial applications such as clothing and hempcrete . arcadia conducts its business in only federal and state markets in which its activities are legal . 29 on october 31 , 2019 , the usda published the interim final rule as authorized by the agriculture improvement act of 2018 for hemp cultivation , which mandates that states test hemp crops and dispose of `` hot `` crops that exceed 0.3 % thc . while hemp farmers will have access to crop protection options , the destruction of hot crops that fail these stringent inspections will not be a covered loss under crop insurance programs . in 2019 alone , more than 20 % of u.s. hemp crops were non-compliant , representing over $ 2 billion in losses for growers . arcadia goodhemp in december 2019 , we announced the launch of a new product line , goodhemp , as the company 's new commercial brand for delivering genetically superior hemp seeds , transplants , flower and extracts . on august 21 , 2020 , the company acquired by merger industrial seed innovations ( isi ) , an oregon-based industrial hemp breeding and seed company . as a result of the acquisition , the company acquired isi 's commercial and genetic assets , including seed varieties , germplasm library and intellectual property . isi 's rogue and umpqua seed varieties are now part of arcadia 's portfolio , alongside the company 's goodhemp line of genetically superior hemp seeds , transplants , and extracts . the acquisition has significantly broadened and accelerated commercialization of arcadia 's hemp-related breeding platform , as well as established a breeding research and development facility in the pacific northwest , a key production area in the hemp industry . the hemp business journal estimates the hemp cbd market – the primary non-psychoactive compound in hemp – totaled $ 190 million in u.s. sales in 2018. by 2025 , the brightfield group , a hemp and cbd market research firm , projects u.s. sales of hemp-based cbd to reach $ 16.8 billion . additionally , markets and markets estimates the non-cannabinoid , industrial hemp global market will exceed $ 26 billion by 2025. archipelago ventures hawaii , llc in august 2019 , we formed a new joint venture to serve the hawaiian , north american and asian hemp markets , archipelago ventures hawaii , llc ( “ archipelago ” ) . this new venture between arcadia and legacy ventures hawaii ( “ legacy ” ) combines arcadia 's extensive genetic expertise and seed innovation history with legacy 's growth capital and strategic advisory expertise in the hawaiian markets . additionally , legacy brings to the partnership years of proven success in extraction , product formulation and sales of cannabinol oil and distillate products through its equity partner , vapen cbd . legacy was originally formed to be a vehicle for its partners to pursue hemp opportunities within the hawaiian islands . archipelago creates a vertically integrated supply chain , from seed to sale , we believe the first of its kind in hawaii , and has three important strategic imperatives : ( 1 ) ensure a reliable supply chain during critical scale up of the global hemp market , a major risk mitigation for success , ( 2 ) ensure high quality throughout the supply chain , from genetics to the field and field to the customer and ( 3 ) ensure being well-positioned to address the unique needs and opportunities of the hawaiian market . arcadia goodwheat in 2018 , we launched our goodwheat brand , a non-genetically modified ( non-gm ) portfolio of wheat products that enables food manufacturers to differentiate their consumer-facing brands . consumer food companies are looking to simplify their food ingredient formulations and consumers are demanding “ clean labeling ” in their foods , paying more for foods having fewer artificial ingredients and more natural , recognizable and healthy ingredients . a 2017 survey by pr agency ingredient communications found that 73 % of consumers are happy to pay a higher retail price for a food or drink product made with ingredients they recognize . because goodwheat increases the nutrient density directly in the primary grains and oils , it provides the mechanism for food formulation simplification naturally , cost effectively and in a timeframe to meet evolving consumer demands . the brand launch is a key element of the company 's go-to-market strategy to achieve greater value for its innovations by participating in downstream consumer revenue opportunities . we designed the brand to make an immediate connection with consumers that products made with goodwheat meet their demands for healthier wheat options that also taste great . the goodwheat brand encompasses our current and future non-gm wheat portfolio of high fiber resistant starch ( rs ) and reduced gluten wheat varieties , as well as future wheat innovations . in october 2019 , the u.s. patent and trademark office granted us the latest patents for extended shelf life wheat , the newest trait in our non-genetically modified wheat portfolio . this new trait was designed to promote whole wheat consumption by improving the shelf life and taste of whole grain wheat products . story_separator_special_tag this includes replicating field trials , coordinating with our partners on their development programs and scaling harvest production of wheat and hemp . as of december 31 , 2020 , we had cash and cash equivalents of $ 14.0 million , restricted cash of $ 2.0 million and short-term investments of $ 11.6 million . for the years ended december 31 , 2020 and 2019 , the company had net losses of $ 6.0 million and $ 28.9 million , respectively , and net cash used in operations of $ 30.2 million and $ 17.2 million , respectively . as is disclosed in note 23 , on january 25 , 2021 , the company entered into a securities purchase agreement with certain institutional and accredited investors relating to the issuance and sale in a private placement of shares of company common stock and warrants for an aggregate of $ 25.1 million , exclusive of any related transaction fees . as is disclosed in note 12 and 13 , the company obtained funding through one common stock and warrant financing and two warrant exercise financings during 2020 , and two common stock and warrant financings and two 36 warrant exercise financings during 2019 . o n december 22 , 2020 , the company entered into agreements with institutional investors through a registered direct offering in the amount of $ 8 million , exclusive of any related transaction fees . in may and july 20 20 , investors exercised warrants in the amount of $ 9.4 million , exclusive of transactions costs . we believe that our existing cash , restricted cash , cash equivalents and short-term investments will be sufficient to meet our anticipated cash requirements for at least the next 12 months . we may seek to raise additional funds through debt or equity financings , if necessary . we may also consider entering into additional partner arrangements . our sale of additional equity would result in dilution to our stockholders . our incurrence of debt would result in debt service obligations , and the instruments governing our debt could provide for additional operating and financing covenants that would restrict our operations . if we do require additional funds and are not able to secure adequate additional funding , we may be forced to reduce our spending , extend payment terms with our suppliers , liquidate assets , or suspend or curtail planned development programs . any of these actions could materially harm our business , results of operations and financial condition . cash flows the following table summarizes our cash flows for the periods indicated ( in thousands ) : replace_table_token_2_th story_separator_special_tag roman ; font-size:10pt ; font-weight : normal ; font-style : normal ; text-transform : none ; font-variant : normal ; `` > we recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services . see note 2 for further detail . 38 we generally recognize product revenues once passage of title has occurred , which is generally upon shipment . shipping and handling costs charged to customers are recorded as revenues and included in cost of product revenues at the tim e the sale is recognized . we have determined that , at the inception of each license agreement , there is only one deliverable for the license for , access to and assistance with the development of the specified intellectual property . we recognize revenue up-front and annual license fees in full when it is deemed probable to be earned . see note 2 for further detail . we recognize royalty revenue when the company can reasonably determine the amounts earned . we recognize revenue related to milestone payments when it is probable that such amounts would not be reversed . see note 2 for further detail . up-front license fees for newly executed agreements are recognized upon execution . annual license fees and milestone fees are variable consideration that is initially constrained and recognized only when it is probable that such amounts would not be reversed . the evaluation and analysis of such fees is performed and once the annual license or milestone fee is deemed probable to have been earned , it is recognized in full in that period . see note 2 for further detail . contract research revenue consists of amounts earned from performing contracted research activities for third parties . activities performed are related to breeding programs or the genetic engineering of plants and are subject to an executed agreement . we generally recognize fees for research activities ratably over the contractually specified performance period . grant revenues are recognized as eligible research and development expenses are incurred using a proportional performance recognition methodology . inventories inventory costs are tracked on a lot-identified basis , valued at the lower of cost or net realizable value and are included as cost of product revenues when sold . we compare the cost of inventories with market value and write down inventories to net realizable value , if lower . we write down inventory when conditions indicate that the net realizable value may be less than cost due to physical deterioration , obsolescence , changes in price levels or other factors . additionally , we provide reserves for excess and slow-moving inventory to its estimated net realizable value . the inventory write-downs are based upon estimates about future demand from our customers and distributors and market conditions . future events that could significantly influence our judgment and related estimates include conditions in target markets , introduction of new products or changes to current or future competitor products . stock-based compensation we recognize compensation expense related to the employee stock purchase plan and stock options based on the estimated fair value of the awards on the date of grant , net of estimated forfeitures . we estimate the

cash flows from operating activities cash used in operating activities for the year ended december 31 , 2020 was $ 30.2 million . our net loss of $ 6.0 million , adjustments in our working capital accounts of $ 11.5 million , gain on sale of verdeca of $ 8.8 million , corporate securities received in exchange for license agreement of $ 4.3 million , change in fair value of common stock warrant liabilities of $ 6.6 million , operating lease payments of $ 910,000 , unrealized gain on corporate securities of $ 656,000 and net amortization of investment premium of $ 44,000 were partially offset by non-cash charges of $ 2.0 million for stock-based compensation , depreciation and amortization of $ 662,000 , lease amortization of $ 1.0 million , loss on extinguishment of warrant liability of $ 635,000 , as well as $ 4.3 million of inventory write-downs . cash used in operating activities for the year ended december 31 , 2019 was $ 17.2 million . our net loss of $ 28.9 million , change in fair value of contingent consideration of $ 1.0 million , operating lease payments of $ 715,000 , and net amortization of investment premium and discount of $ 180,000 were partially offset by the change in fair value of common stock warrant liabilities and common stock adjustment feature liability of $ 9.2 million , non-cash charges of $ 2.3 million for stock-based compensation , depreciation and amortization of $ 194,000 , lease amortization of $ 708,000 , as well as $ 0.7 million of offering costs incurred in connection with financing activities and adjustments in our working capital accounts of $ 0.1 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 from operating activities cash used in operating activities for the year ended december 31 , 2020 was $ 30.2 million . our net loss of $ 6.0 million , adjustments in our working capital accounts of $ 11.5 million , gain on sale of verdeca of $ 8.8 million , corporate securities received in exchange for license agreement of $ 4.3 million , change in fair value of common stock warrant liabilities of $ 6.6 million , operating lease payments of $ 910,000 , unrealized gain on corporate securities of $ 656,000 and net amortization of investment premium of $ 44,000 were partially offset by non-cash charges of $ 2.0 million for stock-based compensation , depreciation and amortization of $ 662,000 , lease amortization of $ 1.0 million , loss on extinguishment of warrant liability of $ 635,000 , as well as $ 4.3 million of inventory write-downs . cash used in operating activities for the year ended december 31 , 2019 was $ 17.2 million . our net loss of $ 28.9 million , change in fair value of contingent consideration of $ 1.0 million , operating lease payments of $ 715,000 , and net amortization of investment premium and discount of $ 180,000 were partially offset by the change in fair value of common stock warrant liabilities and common stock adjustment feature liability of $ 9.2 million , non-cash charges of $ 2.3 million for stock-based compensation , depreciation and amortization of $ 194,000 , lease amortization of $ 708,000 , as well as $ 0.7 million of offering costs incurred in connection with financing activities and adjustments in our working capital accounts of $ 0.1 million . ``` Suspicious Activity Report : it also included provisions for legalizing on a federal level hemp 's cultivation , transport and sale for the first time in more than 75 years . hemp , not previously distinguished by the federal government from cannabis , a schedule 1 drug and banned as an agricultural crop , lacks substantive plant biology research and suffers from suboptimal genetics , highly fragmented germplasm and rampant inconsistencies . we are targeting hemp-based solutions that allow farmers to reliably and consistently achieve compliance with usda regulations , through varieties with improved functionality and application of specific attributes such as select cannabinoid contents for health and wellness , enhanced proteins profiles for plant-based dietary applications and industrial applications such as clothing and hempcrete . arcadia conducts its business in only federal and state markets in which its activities are legal . 29 on october 31 , 2019 , the usda published the interim final rule as authorized by the agriculture improvement act of 2018 for hemp cultivation , which mandates that states test hemp crops and dispose of `` hot `` crops that exceed 0.3 % thc . while hemp farmers will have access to crop protection options , the destruction of hot crops that fail these stringent inspections will not be a covered loss under crop insurance programs . in 2019 alone , more than 20 % of u.s. hemp crops were non-compliant , representing over $ 2 billion in losses for growers . arcadia goodhemp in december 2019 , we announced the launch of a new product line , goodhemp , as the company 's new commercial brand for delivering genetically superior hemp seeds , transplants , flower and extracts . on august 21 , 2020 , the company acquired by merger industrial seed innovations ( isi ) , an oregon-based industrial hemp breeding and seed company . as a result of the acquisition , the company acquired isi 's commercial and genetic assets , including seed varieties , germplasm library and intellectual property . isi 's rogue and umpqua seed varieties are now part of arcadia 's portfolio , alongside the company 's goodhemp line of genetically superior hemp seeds , transplants , and extracts . the acquisition has significantly broadened and accelerated commercialization of arcadia 's hemp-related breeding platform , as well as established a breeding research and development facility in the pacific northwest , a key production area in the hemp industry . the hemp business journal estimates the hemp cbd market – the primary non-psychoactive compound in hemp – totaled $ 190 million in u.s. sales in 2018. by 2025 , the brightfield group , a hemp and cbd market research firm , projects u.s. sales of hemp-based cbd to reach $ 16.8 billion . additionally , markets and markets estimates the non-cannabinoid , industrial hemp global market will exceed $ 26 billion by 2025. archipelago ventures hawaii , llc in august 2019 , we formed a new joint venture to serve the hawaiian , north american and asian hemp markets , archipelago ventures hawaii , llc ( “ archipelago ” ) . this new venture between arcadia and legacy ventures hawaii ( “ legacy ” ) combines arcadia 's extensive genetic expertise and seed innovation history with legacy 's growth capital and strategic advisory expertise in the hawaiian markets . additionally , legacy brings to the partnership years of proven success in extraction , product formulation and sales of cannabinol oil and distillate products through its equity partner , vapen cbd . legacy was originally formed to be a vehicle for its partners to pursue hemp opportunities within the hawaiian islands . archipelago creates a vertically integrated supply chain , from seed to sale , we believe the first of its kind in hawaii , and has three important strategic imperatives : ( 1 ) ensure a reliable supply chain during critical scale up of the global hemp market , a major risk mitigation for success , ( 2 ) ensure high quality throughout the supply chain , from genetics to the field and field to the customer and ( 3 ) ensure being well-positioned to address the unique needs and opportunities of the hawaiian market . arcadia goodwheat in 2018 , we launched our goodwheat brand , a non-genetically modified ( non-gm ) portfolio of wheat products that enables food manufacturers to differentiate their consumer-facing brands . consumer food companies are looking to simplify their food ingredient formulations and consumers are demanding “ clean labeling ” in their foods , paying more for foods having fewer artificial ingredients and more natural , recognizable and healthy ingredients . a 2017 survey by pr agency ingredient communications found that 73 % of consumers are happy to pay a higher retail price for a food or drink product made with ingredients they recognize . because goodwheat increases the nutrient density directly in the primary grains and oils , it provides the mechanism for food formulation simplification naturally , cost effectively and in a timeframe to meet evolving consumer demands . the brand launch is a key element of the company 's go-to-market strategy to achieve greater value for its innovations by participating in downstream consumer revenue opportunities . we designed the brand to make an immediate connection with consumers that products made with goodwheat meet their demands for healthier wheat options that also taste great . the goodwheat brand encompasses our current and future non-gm wheat portfolio of high fiber resistant starch ( rs ) and reduced gluten wheat varieties , as well as future wheat innovations . in october 2019 , the u.s. patent and trademark office granted us the latest patents for extended shelf life wheat , the newest trait in our non-genetically modified wheat portfolio . this new trait was designed to promote whole wheat consumption by improving the shelf life and taste of whole grain wheat products . story_separator_special_tag this includes replicating field trials , coordinating with our partners on their development programs and scaling harvest production of wheat and hemp . as of december 31 , 2020 , we had cash and cash equivalents of $ 14.0 million , restricted cash of $ 2.0 million and short-term investments of $ 11.6 million . for the years ended december 31 , 2020 and 2019 , the company had net losses of $ 6.0 million and $ 28.9 million , respectively , and net cash used in operations of $ 30.2 million and $ 17.2 million , respectively . as is disclosed in note 23 , on january 25 , 2021 , the company entered into a securities purchase agreement with certain institutional and accredited investors relating to the issuance and sale in a private placement of shares of company common stock and warrants for an aggregate of $ 25.1 million , exclusive of any related transaction fees . as is disclosed in note 12 and 13 , the company obtained funding through one common stock and warrant financing and two warrant exercise financings during 2020 , and two common stock and warrant financings and two 36 warrant exercise financings during 2019 . o n december 22 , 2020 , the company entered into agreements with institutional investors through a registered direct offering in the amount of $ 8 million , exclusive of any related transaction fees . in may and july 20 20 , investors exercised warrants in the amount of $ 9.4 million , exclusive of transactions costs . we believe that our existing cash , restricted cash , cash equivalents and short-term investments will be sufficient to meet our anticipated cash requirements for at least the next 12 months . we may seek to raise additional funds through debt or equity financings , if necessary . we may also consider entering into additional partner arrangements . our sale of additional equity would result in dilution to our stockholders . our incurrence of debt would result in debt service obligations , and the instruments governing our debt could provide for additional operating and financing covenants that would restrict our operations . if we do require additional funds and are not able to secure adequate additional funding , we may be forced to reduce our spending , extend payment terms with our suppliers , liquidate assets , or suspend or curtail planned development programs . any of these actions could materially harm our business , results of operations and financial condition . cash flows the following table summarizes our cash flows for the periods indicated ( in thousands ) : replace_table_token_2_th story_separator_special_tag roman ; font-size:10pt ; font-weight : normal ; font-style : normal ; text-transform : none ; font-variant : normal ; `` > we recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services . see note 2 for further detail . 38 we generally recognize product revenues once passage of title has occurred , which is generally upon shipment . shipping and handling costs charged to customers are recorded as revenues and included in cost of product revenues at the tim e the sale is recognized . we have determined that , at the inception of each license agreement , there is only one deliverable for the license for , access to and assistance with the development of the specified intellectual property . we recognize revenue up-front and annual license fees in full when it is deemed probable to be earned . see note 2 for further detail . we recognize royalty revenue when the company can reasonably determine the amounts earned . we recognize revenue related to milestone payments when it is probable that such amounts would not be reversed . see note 2 for further detail . up-front license fees for newly executed agreements are recognized upon execution . annual license fees and milestone fees are variable consideration that is initially constrained and recognized only when it is probable that such amounts would not be reversed . the evaluation and analysis of such fees is performed and once the annual license or milestone fee is deemed probable to have been earned , it is recognized in full in that period . see note 2 for further detail . contract research revenue consists of amounts earned from performing contracted research activities for third parties . activities performed are related to breeding programs or the genetic engineering of plants and are subject to an executed agreement . we generally recognize fees for research activities ratably over the contractually specified performance period . grant revenues are recognized as eligible research and development expenses are incurred using a proportional performance recognition methodology . inventories inventory costs are tracked on a lot-identified basis , valued at the lower of cost or net realizable value and are included as cost of product revenues when sold . we compare the cost of inventories with market value and write down inventories to net realizable value , if lower . we write down inventory when conditions indicate that the net realizable value may be less than cost due to physical deterioration , obsolescence , changes in price levels or other factors . additionally , we provide reserves for excess and slow-moving inventory to its estimated net realizable value . the inventory write-downs are based upon estimates about future demand from our customers and distributors and market conditions . future events that could significantly influence our judgment and related estimates include conditions in target markets , introduction of new products or changes to current or future competitor products . stock-based compensation we recognize compensation expense related to the employee stock purchase plan and stock options based on the estimated fair value of the awards on the date of grant , net of estimated forfeitures . we estimate the

factors that might cause or contribute to such a discrepancy include , but are not limited to , those described in our other sec filings . overview we are a blank check company incorporated in delaware on november 14 , 2019 for the purpose of effecting a merger , capital stock exchange , asset acquisition , stock purchase , reorganization or similar initial business combination with one or more businesses . our sponsor is svac sponsor llc , a delaware limited liability company . our registration statements for our ipo became effective on september 9 , 2020. on september 14 , 2020 , we consummated the ipo of 36,000,000 units at $ 10.00 per unit , generating gross proceeds of $ 360.0 million , and incurring offering costs of approximately $ 23.0 million , inclusive of $ 16.2 million in deferred underwriting commissions . the underwriters were granted a 45-day option from the date of the final prospectus relating to the ipo to purchase up to 5,400,000 additional units to cover over-allotments , if any , at $ 10.00 per unit , less underwriting discounts and commissions . on september 18 , 2020 , the underwriters partially exercised the over-allotment option and on september 23 , 2020 , purchased an additional 4,423,453 units , generating gross proceeds of approximately $ 44.2 million , and incurred additional offering costs of approximately $ 2.7 million ( net of approximately $ 221,000 in reimbursement for certain expenses from the underwriters ) , including approximately $ 2.0 million in deferred underwriting fees . as of november 2 , 2020 , holders of the units may elect to separately trade the public shares and the detachable redeemable warrants included in the units . simultaneously with the closing of the ipo , we completed the private sale of an aggregate of 6,133,333 private warrants to our sponsor at a purchase price of $ 1.50 per private placement warrant , generating gross proceeds of $ 9.2 million . in connection with the underwriters ' partial exercise of their over-allotment option , our sponsor purchased an additional 589,794 private placement warrants , generating gross proceeds of approximately $ 0.9 million . upon the closing of the ipo , the sale of the private placement warrants , the sale of the over-allotment units and the sale of 589,794 additional private placement warrants , $ 404.2 million ( $ 10.00 per unit ) of the net proceeds of such sales were placed in the trust account located in the united states with continental stock transfer & trust company acting as trustee , and invested only in u.s. “ government securities , ” within the meaning set forth in section 2 ( a ) ( 16 ) of the investment company act , with a maturity of 185 days or less , or in money market funds meeting the conditions of paragraphs ( d ) ( 2 ) , ( d ) ( 3 ) and ( d ) ( 4 ) of rule 2a-7 under the investment company act , which invest only in direct u.s. government treasury obligations , as determined by us , until the earlier of : ( i ) the completion of an initial business combination and ( ii ) the distribution of the trust account as described elsewhere herein . 58 if we are unable to complete an initial business combination within 24 months from the closing of the ipo , or september 14 , 2022 , we will ( i ) cease all operations , except for the purpose of winding up , ( ii ) as promptly as reasonably possible but not more than ten business days thereafter , redeem the public shares , at a per-share price , payable in cash , equal to the aggregate amount then on deposit in the trust account , including interest earned on the funds held in the trust account and not previously released to us to pay our franchise and income taxes ( less up to $ 100,000 of interest to pay dissolution expenses ) , divided by the number of then-outstanding public shares , which redemption will completely extinguish the public stockholders ' rights as stockholders ( including the right to receive further liquidating distributions , if any ) , subject to applicable law , and ( iii ) as promptly as reasonably possible following such redemption , subject to the approval of our remaining stockholders and our board of directors , dissolve and liquidate , subject in each case to our obligations under delaware law to provide for claims of creditors and the requirements of other applicable law . on february 21 , 2021 , we entered into the merger agreement , which provides for , among other things , ( i ) cyxtera to be contributed to newco by the cyxtera stockholder , with cyxtera becoming a wholly-owned subsidiary of newco , ( ii ) merger sub 1 to be merged with and into newco , with newco surviving the first merger as a wholly-owned subsidiary of svac and merger sub 1 ceasing to exist , and ( iii ) immediately following the first merger , newco to be merged with and into merger sub 2 , with merger sub 2 surviving the second merger as a wholly-owned subsidiary of svac and newco ceasing to exist . as a result of the cyxtera business combination , cyxtera and the various operating subsidiaries of cyxtera will become subsidiaries of svac , with the cyxtera stockholder becoming a stockholder of svac . story_separator_special_tag our investments held in the trust account are classified as trading securities . trading securities are presented on the balance sheet at fair value at the end of each reporting period . gains and losses resulting from the change in fair value of these investments are included in net gain from investments held in trust account in the statement of operations . the estimated fair values of investments held in the trust account are determined using available market information , other than for investments in open-ended money market funds with published daily net asset values ( “ nav ” ) , in which case we use nav as a practical expedient to fair value . the nav on these investments is typically held constant at $ 1.00 per unit . 61 class a common stock subject to possible redemption we account for our class a common stock subject to possible redemption in accordance with the guidance in asc topic 480 “ distinguishing liabilities from equity . ” shares of class a common stock subject to mandatory redemption ( if any ) are classified as liability instruments and are measured at fair value . shares of conditionally redeemable class a common stock ( including class a common stock that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within our control ) are classified as temporary equity . at all other times , shares of class a common stock are classified as stockholders ' equity . our class a common stock features certain redemption rights that are considered to be outside of our control and subject to the occurrence of uncertain future events . accordingly , as of december 31 , 2020 , 38,346,069 shares of class a common stock subject to possible redemption are presented as temporary equity , outside of the stockholders ' equity section of our balance sheet . net loss per common share we comply with accounting and disclosure requirements of fasb asc topic 260 , “ earnings per share . ” net income per share is computed by dividing net income ( loss ) applicable to common stockholders by the weighted average number of shares of common stock outstanding for the period . we have not considered the effect of the warrants sold in the ipo and private placement to purchase an aggregate of 20,197,611 shares of class a common stock in the calculation of diluted earnings per share , since their inclusion would be anti-dilutive under the treasury stock method . as a result , diluted earnings per share is the same as basic earnings per share for the period . our statement of operations includes a presentation of income per share for common stock subject to redemption in a manner similar to the two-class method of income per share . net income per share , basic and diluted for class a common stock is calculated by dividing the net gain from investments held in the trust account of approximately $ 169,000 , net of applicable franchise taxes of approximately $ 169,000 for the year ended december 31 , 2020 , by the weighted average number of shares of class a common stock outstanding for the period . net loss per share , basic and diluted for class b common stock for the year ended december 31 , 2020 is calculated by dividing the general and administration expenses of approximately $ 174,000 and franchise taxes of approximately $ 31,000 , resulting in a net loss of approximately $ 205,000 , by the weighted average number of class b common stock outstanding for the period . off-balance sheet arrangements and contractual obligations as of december 31 , 2020 , we did not have any off-balance sheet arrangements as defined in item 303 ( a ) ( 4 ) ( ii ) of regulation s-k and did not have any commitments or contractual obligations . jobs act the jobs act contains provisions that , among other things , relax certain reporting requirements for qualifying public companies . we qualify as an “ emerging growth company ” and under the jobs act are allowed to comply with new or revised accounting pronouncements based on the effective date for private ( not publicly traded ) companies . we have elected to delay the adoption of new or revised accounting standards , and as a result , we may not comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth companies . as a result , the financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates . additionally , we are in the process of evaluating the benefits of relying on the other reduced reporting requirements provided by the jobs act . subject to certain conditions set forth in the jobs act , if , as an “ emerging growth company , ” we choose to rely on such exemptions we may not be required to , among other things , ( i ) provide an auditor 's attestation report on our system of internal controls over financial reporting pursuant to section 404 , ( ii ) provide all of the compensation disclosure that may be required of non-emerging growth public companies under the dodd-frank wall street reform and consumer protection act , ( iii ) comply with any requirement that may be adopted by the pcaob regarding mandatory audit firm rotation or a supplement to the auditor 's report providing additional information about the audit and the financial statements ( auditor discussion and analysis ) and ( iv ) disclose certain executive compensation related items such as the correlation between executive compensation and performance and comparisons of the chief executive officer 's compensation to median employee compensation . these exemptions will apply for a period of five years following

liquidity and capital resources as of december 31 , 2020 , we had approximately $ 2.6 million in our operating bank account , and working capital of approximately $ 2.5 million . further , we have incurred and expect to continue to incur significant costs in pursuit of our acquisition plans . our liquidity needs to date have been satisfied through the payment of $ 25,000 from our sponsor to purchase the founder shares , a loan under a promissory note of approximately $ 141,000 from our sponsor , and the net proceeds from the consummation of the sale of the private placement not held in the trust account . we fully repaid the promissory note on september 14 , 2020. in addition , in order to finance transaction costs in connection with an initial business combination , our sponsor or an affiliate of our sponsor , or our officers and directors may , but are not obligated to , provide us working capital loans . as of december 31 , 2020 , there were no working capital loans outstanding . based on the foregoing , management believes that we will have sufficient working capital and borrowing capacity from our sponsor or an affiliate of our sponsor , or certain of our officers and directors to meet its needs through the earlier of the consummation of an initial business combination or one year from this filing . over this time period , we will be using these funds for paying existing accounts payable , identifying and evaluating prospective initial business combination candidates , performing due diligence on prospective target businesses , paying for travel expenditures , selecting the target business to merge with or acquire , and structuring , negotiating and consummating the initial business combination .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 approximately $ 2.6 million in our operating bank account , and working capital of approximately $ 2.5 million . further , we have incurred and expect to continue to incur significant costs in pursuit of our acquisition plans . our liquidity needs to date have been satisfied through the payment of $ 25,000 from our sponsor to purchase the founder shares , a loan under a promissory note of approximately $ 141,000 from our sponsor , and the net proceeds from the consummation of the sale of the private placement not held in the trust account . we fully repaid the promissory note on september 14 , 2020. in addition , in order to finance transaction costs in connection with an initial business combination , our sponsor or an affiliate of our sponsor , or our officers and directors may , but are not obligated to , provide us working capital loans . as of december 31 , 2020 , there were no working capital loans outstanding . based on the foregoing , management believes that we will have sufficient working capital and borrowing capacity from our sponsor or an affiliate of our sponsor , or certain of our officers and directors to meet its needs through the earlier of the consummation of an initial business combination or one year from this filing . over this time period , we will be using these funds for paying existing accounts payable , identifying and evaluating prospective initial business combination candidates , performing due diligence on prospective target businesses , paying for travel expenditures , selecting the target business to merge with or acquire , and structuring , negotiating and consummating the initial business combination . ``` Suspicious Activity Report : factors that might cause or contribute to such a discrepancy include , but are not limited to , those described in our other sec filings . overview we are a blank check company incorporated in delaware on november 14 , 2019 for the purpose of effecting a merger , capital stock exchange , asset acquisition , stock purchase , reorganization or similar initial business combination with one or more businesses . our sponsor is svac sponsor llc , a delaware limited liability company . our registration statements for our ipo became effective on september 9 , 2020. on september 14 , 2020 , we consummated the ipo of 36,000,000 units at $ 10.00 per unit , generating gross proceeds of $ 360.0 million , and incurring offering costs of approximately $ 23.0 million , inclusive of $ 16.2 million in deferred underwriting commissions . the underwriters were granted a 45-day option from the date of the final prospectus relating to the ipo to purchase up to 5,400,000 additional units to cover over-allotments , if any , at $ 10.00 per unit , less underwriting discounts and commissions . on september 18 , 2020 , the underwriters partially exercised the over-allotment option and on september 23 , 2020 , purchased an additional 4,423,453 units , generating gross proceeds of approximately $ 44.2 million , and incurred additional offering costs of approximately $ 2.7 million ( net of approximately $ 221,000 in reimbursement for certain expenses from the underwriters ) , including approximately $ 2.0 million in deferred underwriting fees . as of november 2 , 2020 , holders of the units may elect to separately trade the public shares and the detachable redeemable warrants included in the units . simultaneously with the closing of the ipo , we completed the private sale of an aggregate of 6,133,333 private warrants to our sponsor at a purchase price of $ 1.50 per private placement warrant , generating gross proceeds of $ 9.2 million . in connection with the underwriters ' partial exercise of their over-allotment option , our sponsor purchased an additional 589,794 private placement warrants , generating gross proceeds of approximately $ 0.9 million . upon the closing of the ipo , the sale of the private placement warrants , the sale of the over-allotment units and the sale of 589,794 additional private placement warrants , $ 404.2 million ( $ 10.00 per unit ) of the net proceeds of such sales were placed in the trust account located in the united states with continental stock transfer & trust company acting as trustee , and invested only in u.s. “ government securities , ” within the meaning set forth in section 2 ( a ) ( 16 ) of the investment company act , with a maturity of 185 days or less , or in money market funds meeting the conditions of paragraphs ( d ) ( 2 ) , ( d ) ( 3 ) and ( d ) ( 4 ) of rule 2a-7 under the investment company act , which invest only in direct u.s. government treasury obligations , as determined by us , until the earlier of : ( i ) the completion of an initial business combination and ( ii ) the distribution of the trust account as described elsewhere herein . 58 if we are unable to complete an initial business combination within 24 months from the closing of the ipo , or september 14 , 2022 , we will ( i ) cease all operations , except for the purpose of winding up , ( ii ) as promptly as reasonably possible but not more than ten business days thereafter , redeem the public shares , at a per-share price , payable in cash , equal to the aggregate amount then on deposit in the trust account , including interest earned on the funds held in the trust account and not previously released to us to pay our franchise and income taxes ( less up to $ 100,000 of interest to pay dissolution expenses ) , divided by the number of then-outstanding public shares , which redemption will completely extinguish the public stockholders ' rights as stockholders ( including the right to receive further liquidating distributions , if any ) , subject to applicable law , and ( iii ) as promptly as reasonably possible following such redemption , subject to the approval of our remaining stockholders and our board of directors , dissolve and liquidate , subject in each case to our obligations under delaware law to provide for claims of creditors and the requirements of other applicable law . on february 21 , 2021 , we entered into the merger agreement , which provides for , among other things , ( i ) cyxtera to be contributed to newco by the cyxtera stockholder , with cyxtera becoming a wholly-owned subsidiary of newco , ( ii ) merger sub 1 to be merged with and into newco , with newco surviving the first merger as a wholly-owned subsidiary of svac and merger sub 1 ceasing to exist , and ( iii ) immediately following the first merger , newco to be merged with and into merger sub 2 , with merger sub 2 surviving the second merger as a wholly-owned subsidiary of svac and newco ceasing to exist . as a result of the cyxtera business combination , cyxtera and the various operating subsidiaries of cyxtera will become subsidiaries of svac , with the cyxtera stockholder becoming a stockholder of svac . story_separator_special_tag our investments held in the trust account are classified as trading securities . trading securities are presented on the balance sheet at fair value at the end of each reporting period . gains and losses resulting from the change in fair value of these investments are included in net gain from investments held in trust account in the statement of operations . the estimated fair values of investments held in the trust account are determined using available market information , other than for investments in open-ended money market funds with published daily net asset values ( “ nav ” ) , in which case we use nav as a practical expedient to fair value . the nav on these investments is typically held constant at $ 1.00 per unit . 61 class a common stock subject to possible redemption we account for our class a common stock subject to possible redemption in accordance with the guidance in asc topic 480 “ distinguishing liabilities from equity . ” shares of class a common stock subject to mandatory redemption ( if any ) are classified as liability instruments and are measured at fair value . shares of conditionally redeemable class a common stock ( including class a common stock that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within our control ) are classified as temporary equity . at all other times , shares of class a common stock are classified as stockholders ' equity . our class a common stock features certain redemption rights that are considered to be outside of our control and subject to the occurrence of uncertain future events . accordingly , as of december 31 , 2020 , 38,346,069 shares of class a common stock subject to possible redemption are presented as temporary equity , outside of the stockholders ' equity section of our balance sheet . net loss per common share we comply with accounting and disclosure requirements of fasb asc topic 260 , “ earnings per share . ” net income per share is computed by dividing net income ( loss ) applicable to common stockholders by the weighted average number of shares of common stock outstanding for the period . we have not considered the effect of the warrants sold in the ipo and private placement to purchase an aggregate of 20,197,611 shares of class a common stock in the calculation of diluted earnings per share , since their inclusion would be anti-dilutive under the treasury stock method . as a result , diluted earnings per share is the same as basic earnings per share for the period . our statement of operations includes a presentation of income per share for common stock subject to redemption in a manner similar to the two-class method of income per share . net income per share , basic and diluted for class a common stock is calculated by dividing the net gain from investments held in the trust account of approximately $ 169,000 , net of applicable franchise taxes of approximately $ 169,000 for the year ended december 31 , 2020 , by the weighted average number of shares of class a common stock outstanding for the period . net loss per share , basic and diluted for class b common stock for the year ended december 31 , 2020 is calculated by dividing the general and administration expenses of approximately $ 174,000 and franchise taxes of approximately $ 31,000 , resulting in a net loss of approximately $ 205,000 , by the weighted average number of class b common stock outstanding for the period . off-balance sheet arrangements and contractual obligations as of december 31 , 2020 , we did not have any off-balance sheet arrangements as defined in item 303 ( a ) ( 4 ) ( ii ) of regulation s-k and did not have any commitments or contractual obligations . jobs act the jobs act contains provisions that , among other things , relax certain reporting requirements for qualifying public companies . we qualify as an “ emerging growth company ” and under the jobs act are allowed to comply with new or revised accounting pronouncements based on the effective date for private ( not publicly traded ) companies . we have elected to delay the adoption of new or revised accounting standards , and as a result , we may not comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth companies . as a result , the financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates . additionally , we are in the process of evaluating the benefits of relying on the other reduced reporting requirements provided by the jobs act . subject to certain conditions set forth in the jobs act , if , as an “ emerging growth company , ” we choose to rely on such exemptions we may not be required to , among other things , ( i ) provide an auditor 's attestation report on our system of internal controls over financial reporting pursuant to section 404 , ( ii ) provide all of the compensation disclosure that may be required of non-emerging growth public companies under the dodd-frank wall street reform and consumer protection act , ( iii ) comply with any requirement that may be adopted by the pcaob regarding mandatory audit firm rotation or a supplement to the auditor 's report providing additional information about the audit and the financial statements ( auditor discussion and analysis ) and ( iv ) disclose certain executive compensation related items such as the correlation between executive compensation and performance and comparisons of the chief executive officer 's compensation to median employee compensation . these exemptions will apply for a period of five years following

such revenue is offset by certain property specific operating expenses , such as real estate taxes , repairs and maintenance , property management , utilities and insurance expenses , along with certain other costs and expenses , such as depreciation and amortization costs and general and administrative and interest expenses . our revenue growth is dependent , in part , on our ability to ( i ) increase rental income , through increasing either or both occupancy rates and rental rates at our properties , ( ii ) maximize tenant recoveries and ( iii ) minimize operating and certain other expenses . revenues generated from rental income and tenant recoveries are a significant source of funds , in addition to income generated from gains/losses on the sale of our properties ( as discussed below ) , for our liquidity . the leasing of property , in general , and occupancy rates , rental rates , operating expenses and certain non-operating expenses , in particular , are impacted , variously , by property specific , market specific , general economic and other conditions , many of which are beyond our control . the leasing of property also entails various risks , including the risk of tenant default . if we were unable to maintain or increase occupancy rates and rental rates at our properties or to maintain tenant recoveries and operating and certain other expenses consistent with historical levels and proportions , our revenue would decline . further , if a significant number of our tenants were unable to pay rent ( including tenant recoveries ) or if we were unable to rent our properties on favorable terms , our financial condition , results of operations , cash flow and ability to pay dividends on , and the market price of , our common stock would be adversely affected . 25 our revenue growth is also dependent , in part , on our ability to acquire existing , and develop new industrial properties on favorable terms . the company seeks to identify opportunities to acquire existing industrial properties on favorable terms , and , when conditions permit , also seeks to acquire and develop new industrial properties on favorable terms . existing properties , as they are acquired , and acquired and developed properties , as they are leased , generate revenue from rental income , tenant recoveries and fees , income from which , as discussed above , is a source of funds for our distributions . the acquisition and development of properties is impacted , variously , by property specific , market specific , general economic and other conditions , many of which are beyond our control . the acquisition and development of properties also entails various risks , including the risk that our investments may not perform as expected . for example , acquired existing and acquired and developed new properties may not sustain and or achieve anticipated occupancy and rental rate levels . with respect to acquired and developed new properties , we may not be able to complete construction on schedule or within budget , resulting in increased debt service expense and construction costs and delays in leasing the properties . also , we face significant competition for attractive acquisition and development opportunities from other well-capitalized real estate investors , including publicly-traded reits and private investors . further , as discussed below , we may not be able to finance the acquisition and development opportunities we identify . if we were unable to acquire and develop sufficient additional properties on favorable terms , or if such investments did not perform as expected , our revenue growth would be limited and our financial condition , results of operations , cash flow and ability to pay dividends on , and the market price of , our common stock would be adversely affected . we also generate income from the sale of our properties ( including existing buildings , buildings which we have developed or re-developed on a merchant basis and land ) . the gain/loss on , and fees from , the sale of such properties are included in our income and can be a significant source of funds , in addition to revenues generated from rental income and tenant recoveries . proceeds from sales are being used to repay outstanding debt and , market conditions permitting , may be used to fund the acquisition of existing , and the acquisition and development of new , industrial properties . the sale of properties is impacted , variously , by property specific , market specific , general economic and other conditions , many of which are beyond our control . the sale of properties also entails various risks , including competition from other sellers and the availability of attractive financing for potential buyers of our properties . further , our ability to sell properties is limited by safe harbor rules applying to reits under the code which relate to the number of properties that may be disposed of in a year , their tax bases and the cost of improvements made to the properties , along with other tests which enable a reit to avoid punitive taxation on the sale of assets . if we are unable to sell properties on favorable terms , our income growth would be limited and our financial condition , results of operations , cash flow and ability to pay dividends on , and the market price of , our common stock could be adversely affected . we utilize a portion of the net sales proceeds from property sales , borrowings under our unsecured credit facility , and proceeds from the issuance , when and as warranted , of additional debt and equity securities to refinance debt and finance future acquisitions and developments . story_separator_special_tag ended december 31 , 2014 and 2013 , respectively , resulted from the sale of land parcels that did not meet the criteria for inclusion in discontinued operations . 31 comparison of year ended december 31 , 2013 to year ended december 31 , 2012 our net income ( loss ) available to first industrial realty trust , inc. 's common stockholders and participating securities was $ 25.9 million and $ ( 22.1 ) million for the years ended december 31 , 2013 and 2012 , respectively . basic and diluted net income ( loss ) available to first industrial realty trust , inc. 's common stockholders was $ 0.24 per share and $ ( 0.24 ) per share for the years ended december 31 , 2013 and 2012 , respectively . the tables below summarize our revenues , property expenses and depreciation and other amortization by various categories for the years ended december 31 , 2013 and 2012. same store properties are properties owned prior to january 1 , 2012 and held as an in-service property through december 31 , 2013 and developments and redevelopments that were placed in service prior to january 1 , 2012 or were substantially completed for the 12 months prior to january 1 , 2012. properties which are at least 75 % occupied at acquisition are placed in service . acquisitions ( that are less than 75 % occupied at the date of acquisition ) , developments and redevelopments are placed in service as they reach the earlier of a ) stabilized occupancy ( generally defined as 90 % occupied ) , or b ) one year subsequent to acquisition or development/redevelopment construction completion . properties are moved from the same store classification to the redevelopment classification when capital expenditures for a project are estimated to exceed 25 % of the undepreciated gross book value of the property . acquired properties are properties that were acquired subsequent to december 31 , 2011 and held as an operating property through december 31 , 2013. sold properties are properties that were sold subsequent to december 31 , 2011 . ( re ) developments and land are land parcels and developments and redevelopments that were not : a ) substantially complete 12 months prior to january 1 , 2012 or b ) stabilized prior to january 1 , 2012. other revenues are derived from the operations of our maintenance company , fees earned from our joint ventures and other miscellaneous revenues . other expenses are derived from the operations of our maintenance company and other miscellaneous regional expenses . our future financial condition and results of operations , including rental revenues , may be impacted by the future acquisition and sale of properties . our future revenues and expenses may vary materially from historical rates . for the years ended december 31 , 2013 and 2012 , the average occupancy rates of our same store properties were 90.1 % and 88.3 % , respectively . replace_table_token_14_th revenues from same store properties increased $ 8.4 million primarily due to increases in occupancy and tenant recoveries , partially offset by a decrease in lease cancellation fees . revenues from acquired properties increased $ 0.8 million due to the two leased industrial properties acquired subsequent to december 31 , 2011 totaling approximately 1.0 million square feet of gla . revenues from sold properties decreased $ 10.7 million due to the 95 industrial properties sold subsequent to december 31 , 2011 totaling approximately 7.2 million square feet of gla . revenues from ( re ) developments and land increased $ 5.9 million due to an increase in occupancy . other revenues decreased $ 1.2 million primarily due to certain one-time revenue transactions during the year ended december 31 , 2012 , as well as a decrease in leasing fees earned from our joint ventures and a decrease in revenues from the operations of our maintenance company for the year ended december 31 , 2013 , as compared to the year ended december 31 , 2012 . 32 replace_table_token_15_th property expenses include real estate taxes , repairs and maintenance , property management , utilities , insurance and other property related expenses . property expenses from same store properties increased $ 6.1 million primarily due to an increase in real estate tax expense due to refunds received in 2012 relating to previous years and an increase in repairs and maintenance expense due to the higher snow removal costs incurred during the year ended december 31 , 2013 as compared to the year ended december 31 , 2012 due to the mild 2012 winter . property expenses from acquired properties increased $ 0.6 million due to properties acquired subsequent to december 31 , 2011. property expenses from sold properties decreased $ 4.5 million due to properties sold subsequent to december 31 , 2011. property expenses from ( re ) developments and land increased $ 1.5 million primarily due to an increase in real estate tax expense . other expenses remained relatively unchanged . general and administrative expense decreased $ 2.2 million , or 8.9 % , during the year ended december 31 , 2013 compared to the year ended december 31 , 2012 due primarily to the acceleration of expense recorded during 2012 related to restricted stock held by the company 's ceo in connection with the terms of his employment agreement that was entered into in december 2012. for the years ended december 31 , 2013 and 2012 , we recognized $ 0.3 million and $ 0.04 million , respectively , of expense related to costs associated with acquiring buildings from third parties . the impairment reversal included in continuing operations for the year ended december 31 , 2012 of $ 0.2 million is primarily comprised of an impairment reversal relating to certain industrial properties that no longer qualified for held for sale classification . replace_table_token_16_th depreciation and other amortization for same store properties decreased $ 5.6 million due to a decrease in

liquidity and capital resources at december 31 , 2014 , our cash and cash equivalents and restricted cash were approximately $ 9.5 million and $ 1.8 million , respectively . restricted cash is primarily comprised of cash held in escrow in connection with gross proceeds from the sales of certain industrial properties . these sales proceeds will be disbursed as we exchange industrial properties under section 1031 of the code . we also had $ 433.0 million available for additional borrowings under our unsecured credit facility . we have considered our short-term ( through december 31 , 2015 ) liquidity needs and the adequacy of our estimated cash flow from operations and other expected liquidity sources to meet these needs . we have $ 23.2 million in mortgage loans payable outstanding at december 31 , 2014 that mature or we anticipate prepaying during 2015. we expect to satisfy these payment obligations prior to december 31 , 2015 with borrowings under our unsecured credit facility . with the exception of these payment obligations , we believe that our principal short-term liquidity needs are to fund normal recurring expenses , property acquisitions , developments , renovations , expansions and other nonrecurring capital improvements , debt service requirements , the minimum distributions required to maintain our reit qualification under the code and distributions approved by our board of directors . we anticipate that these needs will be met with cash flows provided by operating activities as well as the disposition of select assets . these needs may also be met by the issuance of additional equity securities or long-term unsecured indebtedness , subject to market conditions and contractual restrictions or borrowings under our unsecured credit facility . we expect to meet long-term ( after december 31 , 2015 ) liquidity requirements such as property acquisitions , developments , scheduled debt maturities , major renovations , expansions and other nonrecurring capital improvements through the disposition of select assets , long-term unsecured and secured indebtedness and the issuance of additional equity securities , subject to market conditions .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 , 2014 , our cash and cash equivalents and restricted cash were approximately $ 9.5 million and $ 1.8 million , respectively . restricted cash is primarily comprised of cash held in escrow in connection with gross proceeds from the sales of certain industrial properties . these sales proceeds will be disbursed as we exchange industrial properties under section 1031 of the code . we also had $ 433.0 million available for additional borrowings under our unsecured credit facility . we have considered our short-term ( through december 31 , 2015 ) liquidity needs and the adequacy of our estimated cash flow from operations and other expected liquidity sources to meet these needs . we have $ 23.2 million in mortgage loans payable outstanding at december 31 , 2014 that mature or we anticipate prepaying during 2015. we expect to satisfy these payment obligations prior to december 31 , 2015 with borrowings under our unsecured credit facility . with the exception of these payment obligations , we believe that our principal short-term liquidity needs are to fund normal recurring expenses , property acquisitions , developments , renovations , expansions and other nonrecurring capital improvements , debt service requirements , the minimum distributions required to maintain our reit qualification under the code and distributions approved by our board of directors . we anticipate that these needs will be met with cash flows provided by operating activities as well as the disposition of select assets . these needs may also be met by the issuance of additional equity securities or long-term unsecured indebtedness , subject to market conditions and contractual restrictions or borrowings under our unsecured credit facility . we expect to meet long-term ( after december 31 , 2015 ) liquidity requirements such as property acquisitions , developments , scheduled debt maturities , major renovations , expansions and other nonrecurring capital improvements through the disposition of select assets , long-term unsecured and secured indebtedness and the issuance of additional equity securities , subject to market conditions . ``` Suspicious Activity Report : such revenue is offset by certain property specific operating expenses , such as real estate taxes , repairs and maintenance , property management , utilities and insurance expenses , along with certain other costs and expenses , such as depreciation and amortization costs and general and administrative and interest expenses . our revenue growth is dependent , in part , on our ability to ( i ) increase rental income , through increasing either or both occupancy rates and rental rates at our properties , ( ii ) maximize tenant recoveries and ( iii ) minimize operating and certain other expenses . revenues generated from rental income and tenant recoveries are a significant source of funds , in addition to income generated from gains/losses on the sale of our properties ( as discussed below ) , for our liquidity . the leasing of property , in general , and occupancy rates , rental rates , operating expenses and certain non-operating expenses , in particular , are impacted , variously , by property specific , market specific , general economic and other conditions , many of which are beyond our control . the leasing of property also entails various risks , including the risk of tenant default . if we were unable to maintain or increase occupancy rates and rental rates at our properties or to maintain tenant recoveries and operating and certain other expenses consistent with historical levels and proportions , our revenue would decline . further , if a significant number of our tenants were unable to pay rent ( including tenant recoveries ) or if we were unable to rent our properties on favorable terms , our financial condition , results of operations , cash flow and ability to pay dividends on , and the market price of , our common stock would be adversely affected . 25 our revenue growth is also dependent , in part , on our ability to acquire existing , and develop new industrial properties on favorable terms . the company seeks to identify opportunities to acquire existing industrial properties on favorable terms , and , when conditions permit , also seeks to acquire and develop new industrial properties on favorable terms . existing properties , as they are acquired , and acquired and developed properties , as they are leased , generate revenue from rental income , tenant recoveries and fees , income from which , as discussed above , is a source of funds for our distributions . the acquisition and development of properties is impacted , variously , by property specific , market specific , general economic and other conditions , many of which are beyond our control . the acquisition and development of properties also entails various risks , including the risk that our investments may not perform as expected . for example , acquired existing and acquired and developed new properties may not sustain and or achieve anticipated occupancy and rental rate levels . with respect to acquired and developed new properties , we may not be able to complete construction on schedule or within budget , resulting in increased debt service expense and construction costs and delays in leasing the properties . also , we face significant competition for attractive acquisition and development opportunities from other well-capitalized real estate investors , including publicly-traded reits and private investors . further , as discussed below , we may not be able to finance the acquisition and development opportunities we identify . if we were unable to acquire and develop sufficient additional properties on favorable terms , or if such investments did not perform as expected , our revenue growth would be limited and our financial condition , results of operations , cash flow and ability to pay dividends on , and the market price of , our common stock would be adversely affected . we also generate income from the sale of our properties ( including existing buildings , buildings which we have developed or re-developed on a merchant basis and land ) . the gain/loss on , and fees from , the sale of such properties are included in our income and can be a significant source of funds , in addition to revenues generated from rental income and tenant recoveries . proceeds from sales are being used to repay outstanding debt and , market conditions permitting , may be used to fund the acquisition of existing , and the acquisition and development of new , industrial properties . the sale of properties is impacted , variously , by property specific , market specific , general economic and other conditions , many of which are beyond our control . the sale of properties also entails various risks , including competition from other sellers and the availability of attractive financing for potential buyers of our properties . further , our ability to sell properties is limited by safe harbor rules applying to reits under the code which relate to the number of properties that may be disposed of in a year , their tax bases and the cost of improvements made to the properties , along with other tests which enable a reit to avoid punitive taxation on the sale of assets . if we are unable to sell properties on favorable terms , our income growth would be limited and our financial condition , results of operations , cash flow and ability to pay dividends on , and the market price of , our common stock could be adversely affected . we utilize a portion of the net sales proceeds from property sales , borrowings under our unsecured credit facility , and proceeds from the issuance , when and as warranted , of additional debt and equity securities to refinance debt and finance future acquisitions and developments . story_separator_special_tag ended december 31 , 2014 and 2013 , respectively , resulted from the sale of land parcels that did not meet the criteria for inclusion in discontinued operations . 31 comparison of year ended december 31 , 2013 to year ended december 31 , 2012 our net income ( loss ) available to first industrial realty trust , inc. 's common stockholders and participating securities was $ 25.9 million and $ ( 22.1 ) million for the years ended december 31 , 2013 and 2012 , respectively . basic and diluted net income ( loss ) available to first industrial realty trust , inc. 's common stockholders was $ 0.24 per share and $ ( 0.24 ) per share for the years ended december 31 , 2013 and 2012 , respectively . the tables below summarize our revenues , property expenses and depreciation and other amortization by various categories for the years ended december 31 , 2013 and 2012. same store properties are properties owned prior to january 1 , 2012 and held as an in-service property through december 31 , 2013 and developments and redevelopments that were placed in service prior to january 1 , 2012 or were substantially completed for the 12 months prior to january 1 , 2012. properties which are at least 75 % occupied at acquisition are placed in service . acquisitions ( that are less than 75 % occupied at the date of acquisition ) , developments and redevelopments are placed in service as they reach the earlier of a ) stabilized occupancy ( generally defined as 90 % occupied ) , or b ) one year subsequent to acquisition or development/redevelopment construction completion . properties are moved from the same store classification to the redevelopment classification when capital expenditures for a project are estimated to exceed 25 % of the undepreciated gross book value of the property . acquired properties are properties that were acquired subsequent to december 31 , 2011 and held as an operating property through december 31 , 2013. sold properties are properties that were sold subsequent to december 31 , 2011 . ( re ) developments and land are land parcels and developments and redevelopments that were not : a ) substantially complete 12 months prior to january 1 , 2012 or b ) stabilized prior to january 1 , 2012. other revenues are derived from the operations of our maintenance company , fees earned from our joint ventures and other miscellaneous revenues . other expenses are derived from the operations of our maintenance company and other miscellaneous regional expenses . our future financial condition and results of operations , including rental revenues , may be impacted by the future acquisition and sale of properties . our future revenues and expenses may vary materially from historical rates . for the years ended december 31 , 2013 and 2012 , the average occupancy rates of our same store properties were 90.1 % and 88.3 % , respectively . replace_table_token_14_th revenues from same store properties increased $ 8.4 million primarily due to increases in occupancy and tenant recoveries , partially offset by a decrease in lease cancellation fees . revenues from acquired properties increased $ 0.8 million due to the two leased industrial properties acquired subsequent to december 31 , 2011 totaling approximately 1.0 million square feet of gla . revenues from sold properties decreased $ 10.7 million due to the 95 industrial properties sold subsequent to december 31 , 2011 totaling approximately 7.2 million square feet of gla . revenues from ( re ) developments and land increased $ 5.9 million due to an increase in occupancy . other revenues decreased $ 1.2 million primarily due to certain one-time revenue transactions during the year ended december 31 , 2012 , as well as a decrease in leasing fees earned from our joint ventures and a decrease in revenues from the operations of our maintenance company for the year ended december 31 , 2013 , as compared to the year ended december 31 , 2012 . 32 replace_table_token_15_th property expenses include real estate taxes , repairs and maintenance , property management , utilities , insurance and other property related expenses . property expenses from same store properties increased $ 6.1 million primarily due to an increase in real estate tax expense due to refunds received in 2012 relating to previous years and an increase in repairs and maintenance expense due to the higher snow removal costs incurred during the year ended december 31 , 2013 as compared to the year ended december 31 , 2012 due to the mild 2012 winter . property expenses from acquired properties increased $ 0.6 million due to properties acquired subsequent to december 31 , 2011. property expenses from sold properties decreased $ 4.5 million due to properties sold subsequent to december 31 , 2011. property expenses from ( re ) developments and land increased $ 1.5 million primarily due to an increase in real estate tax expense . other expenses remained relatively unchanged . general and administrative expense decreased $ 2.2 million , or 8.9 % , during the year ended december 31 , 2013 compared to the year ended december 31 , 2012 due primarily to the acceleration of expense recorded during 2012 related to restricted stock held by the company 's ceo in connection with the terms of his employment agreement that was entered into in december 2012. for the years ended december 31 , 2013 and 2012 , we recognized $ 0.3 million and $ 0.04 million , respectively , of expense related to costs associated with acquiring buildings from third parties . the impairment reversal included in continuing operations for the year ended december 31 , 2012 of $ 0.2 million is primarily comprised of an impairment reversal relating to certain industrial properties that no longer qualified for held for sale classification . replace_table_token_16_th depreciation and other amortization for same store properties decreased $ 5.6 million due to a decrease in

overview overall , the company 's financial performance improved in 2012 as compared to 2011 , especially due to the results for the first nine months of 2012. the company had net income in 2012 in the amount of $ 376,691 as compared to a net loss of $ 351,680 for 2011 , or a increase of $ 728,371 . the increase in net income for the year ended december 31 , 2012 was due to several factors including management 's decision to reduce costs through layoffs and salary reductions for all employees early in the year and management 's efforts in finding new revenues to replace those products that were lagging due to the slow economic conditions in the construction industry . by not only reducing employee costs , but also by managing all production and overhead cost , the company was able increase profit on jobs with little or no profit at the time of bidding . the company incurred a net loss of $ 607,995 for the fourth quarter of 2012 due primarily to the continued weak construction economy , legal expenses of $ 160,000 related to the intellectual properties infringement lawsuit discussed in `` business - patents and proprietary information `` above and the total reinstatement and partial repayment of a portion of salaries reduced from february through december 2012. the partial repayment of salaries was made possible by the high cash balances available to the company . the company has subsequently been awarded two new large slenderwall projects that will begin early in the second quarter of 2013. in addition , the company has received a verbal commitment for a large architectural contract , that if awarded ( for which there can be no assurance ) , will begin late in the second quarter of 2013. as a result of the contracts awarded above and with the contract to provide rental barrier for the presidential inauguration in january 2013 , the company believes it will be profitable for at least the first three quarters of 2013 , although no assurance can be given . results of operations year ended december 31 , 2012 compared to the year ended december 31 , 2011 for the year ended december 31 , 2012 , the company had total revenue of $ 24,893,613 compared to total revenue of $ 26,696,727 for the year ended december 31 , 2011 , a decrease of $ 1,803,114 , or 7 % . sales include revenues from product sales , royalty income , barrier rental income and shipping and installation income . product sales are further divided into wall panel sales , which include soundwall , architectural and slenderwall panels , highway barrier , beach prisms , easi-set® and easi-span® buildings , utility and farm products and miscellaneous precast products . the following table summarizes the sales by product type and a comparison for the years ended december 31 , 2012 and 2011 : 11 replace_table_token_1_th wall panel sales – wall panel sales are generally medium to large contracts issued by general contractors for production and delivery of a specific wall panel product for a specific construction project . changes in the mix of wall panel sales depend on what contracts are in production during the period . soundwall sales increased significantly in 2012 due primarily to a large soundwall contract for a road project started in mid 2012 for which production will be completed in the first quarter of 2013. architectural sales decreased significantly in 2012 as continued downward price pressure on architectural projects made it difficult for the company to bid competitively on these projects . management believes it may be at least another year before architectural jobs will return to higher profit margin levels . slenderwall sales decreased in 2012 due to two large slenderwall contracts that were substantially completed in 2011 replaced with only two small jobs in 2012. the company was recently awarded a large slenderwall project in new jersey that will start in the second quarter of 2013 and could significantly increase slenderwall sales in 2013. miscellaneous wall sales are mainly retaining walls which are used to hold back earth on sloped land . these types of projects were down in 2012 due to the continued weakness in the construction industry . barrier sales – barrier sales are dependent on the number of highway projects active during the period and whether customers are more prone to buy barrier than to rent . in 2012 barrier sales increased by 29 % from the previous year . this increase relates to a major highway project that funded in 2012 and began construction in the summer of the year . it is anticipated by the company that barrier sales will decrease slightly or remain flat in 2013. beach prisms – the company made its first sales of beach prisms in 2009 and continued to make minor sales in 2010 and 2011. there were no sales in 2012. the company is still in the process of seeking to acquire the necessary permits from the states of maryland and virginia , which has been more difficult than originally estimated . the company did receive a permit in the state of virginia during 2011 and anticipates that further permits will occur and additional sales will be forthcoming , however , this can not be assured . easi-set® and easi-span® building sales – easi-set® and easi-span® building sales increased by 10 % compared to the same period in 2011. the increased sales of buildings was primarily due to the sale of several easi-span® buildings ( the larger sized buildings ) . story_separator_special_tag the decrease was due to decreased sales salaries and general sales expenses partially offset by increased advertising expense . operating income – the company had operating income for the year ended december 31 , 2012 of $ 687,762 compared to an operating loss of $ 364,836 for the year ended december 31 , 2011 , an increase of $ 1,052,598. the increase in operating income was primarily the result of a decrease in cost of goods sold for the year ended december 31 , 2012 as a percentage of revenue as discussed above . 13 interest expense – interest expense was $ 134,828 for the year ended december 31 , 2012 compared to $ 136,067 for the year ended december 31 , 2011 . the decrease of $ 1,239 , or 1 % , was due primarily to lower balances on notes payable outstanding . income tax expense – the company had an income tax expense of $ 182,000 for the year ended december 31 , 2012 compared to an income tax benefit of $ 136,000 for the year ended december 31 , 2011 . net income – the company had net income of $ 376,691 for the year ended december 31 , 2012 , compared to a net loss of $ 351,680 for the same period in 2011. the basic and diluted earnings per share for 2012 was $ 0.08 , compared to basic and diluted net loss per share of $ 0.07 for the year ended december 31 , 2011 . there were 4,826,182 basic and 4,867,475 diluted weighted average shares outstanding in 2012 and 4,790,476 basic and diluted weighted average shares outstanding in the 2011. story_separator_special_tag giving due consideration to materiality . the company does not believe there is a great likelihood that materially different amounts would be reported related to the accounting policies described below , however , application of these accounting policies involves the exercise of judgment and the use of assumptions as to future uncertainties and as a result , actual results could differ from these estimates . the company evaluates the adequacy of its allowance for doubtful accounts at the end of each quarter . in performing this evaluation , the company analyzes the payment history of its significant past due accounts , subsequent cash collections on these accounts and comparative accounts receivable aging statistics . based on this information , along with other related factors , the company develops what it considers to be a reasonable estimate of the uncollectible amounts included in accounts receivable . this estimate involves significant judgment by the management of the company . actual uncollectible amounts may differ from the company 's estimate . the company recognizes revenue on the sale of its standard precast concrete products at shipment date , including revenue derived from any projects to be completed under short-term contracts . installation services for precast concrete products , leasing and royalties are recognized as revenue as they are earned on an accrual basis . licensing fees are recognized under the accrual method unless collectability is in doubt , in which event revenue is recognized as cash is received . certain sales of soundwall , slenderwall , and other architectural concrete products are recognized upon completion of units produced under long-term contracts . when necessary , provisions for estimated losses on these contracts are made in the period in which such losses are determined . changes in job performance , conditions and contract settlements that affect profit are recognized in the period in which the changes occur . unbilled trade accounts receivable represents revenue earned on units produced and not yet billed . seasonality the company services the construction industry primarily in areas of the united states where construction activity may be inhibited by adverse weather during the winter . as a result , the company may experience reduced revenues from december through february and realize the substantial part of its revenues during the other months of the year . the company may experience lower profits , or losses , during the winter months , and as such , must have sufficient working capital to fund its operations at a reduced level until the spring construction season . the failure to generate or obtain sufficient working capital during the winter may have a material adverse effect on the company . inflation management believes that the company 's operations were not significantly affected by inflation in 2012 and 2011 , particularly in the purchases of certain raw materials such as steel and fuel . the company believes that raw material pricing will see some modest increases in 2013 as the economy continues its slow recovery , although no assurance can be given regarding future pricing . other comments as of march 4 , 2013 the company 's sales backlog of inventoried products and unbilled construction contracts was approximately $ 6.7 million as compared to approximately $ 7.8 million at approximately the same time in 2011. the reduction in the backlog relates to the weak construction industry as well as the shortening of the time period between bidding a project and putting the project into production compared to longer lead times when funding is more readily available in a strong construction industry . the majority of the projects relating to the sales backlog as of march 4 , 2013 are scheduled to be shipped during 2013. the company also maintains a regularly occurring repeat customer business , which should be considered in addition to the orders in the sales backlog described above . these orders typically have a quick turn around and represent purchases of the company 's inventoried standard products , such as highway safety barrier , utility and easi-set building products . historically , this regularly occurring segment of our customer base is equal to approximately $ 5,000,000 to $ 7,000,000 annually . the risk exists that recessionary economic conditions may adversely affect the company more than it has experienced to date . to mitigate

liquidity and capital resources the company financed its capital expenditures and operating requirements in 2012 with cash flows from operations . the company has a note payable to sonabank ( the “ bank ” ) , headquartered in mclean , virginia , with a balance of $ 2,209,415 as of december 31 , 2012 . the note payable was acquired by sonabank from greater atlantic bank on december 4 , 2009 in a transaction through the federal deposit insurance corporation . the note had an original term of twenty-three years beginning on june 25 , 1998 with an interest rate of .5 % above prime , secured by principally by all of the assets of the company . the loan is guaranteed in part by the u.s. department of agriculture rural business-cooperative service 's loan guarantee . under the terms of the note , the bank will permit chattel mortgages on purchased equipment not to exceed $ 250,000 for any one individual loan so long as the company is not in default . also , the company is limited to $ 1,000,000 for annual capital expenditures . at december 31 , 2012 , the company was in compliance with all covenants pursuant to the loan agreement as amended except for the payment of cash dividends on december 31 , 2012 , for which the company received approval prior to payment . at december 31 , 2012 , the company had cash totaling $ 4,367,474 compared to $ 2,130,686 at december 31 , 2011 .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 financed its capital expenditures and operating requirements in 2012 with cash flows from operations . the company has a note payable to sonabank ( the “ bank ” ) , headquartered in mclean , virginia , with a balance of $ 2,209,415 as of december 31 , 2012 . the note payable was acquired by sonabank from greater atlantic bank on december 4 , 2009 in a transaction through the federal deposit insurance corporation . the note had an original term of twenty-three years beginning on june 25 , 1998 with an interest rate of .5 % above prime , secured by principally by all of the assets of the company . the loan is guaranteed in part by the u.s. department of agriculture rural business-cooperative service 's loan guarantee . under the terms of the note , the bank will permit chattel mortgages on purchased equipment not to exceed $ 250,000 for any one individual loan so long as the company is not in default . also , the company is limited to $ 1,000,000 for annual capital expenditures . at december 31 , 2012 , the company was in compliance with all covenants pursuant to the loan agreement as amended except for the payment of cash dividends on december 31 , 2012 , for which the company received approval prior to payment . at december 31 , 2012 , the company had cash totaling $ 4,367,474 compared to $ 2,130,686 at december 31 , 2011 . ``` Suspicious Activity Report : overview overall , the company 's financial performance improved in 2012 as compared to 2011 , especially due to the results for the first nine months of 2012. the company had net income in 2012 in the amount of $ 376,691 as compared to a net loss of $ 351,680 for 2011 , or a increase of $ 728,371 . the increase in net income for the year ended december 31 , 2012 was due to several factors including management 's decision to reduce costs through layoffs and salary reductions for all employees early in the year and management 's efforts in finding new revenues to replace those products that were lagging due to the slow economic conditions in the construction industry . by not only reducing employee costs , but also by managing all production and overhead cost , the company was able increase profit on jobs with little or no profit at the time of bidding . the company incurred a net loss of $ 607,995 for the fourth quarter of 2012 due primarily to the continued weak construction economy , legal expenses of $ 160,000 related to the intellectual properties infringement lawsuit discussed in `` business - patents and proprietary information `` above and the total reinstatement and partial repayment of a portion of salaries reduced from february through december 2012. the partial repayment of salaries was made possible by the high cash balances available to the company . the company has subsequently been awarded two new large slenderwall projects that will begin early in the second quarter of 2013. in addition , the company has received a verbal commitment for a large architectural contract , that if awarded ( for which there can be no assurance ) , will begin late in the second quarter of 2013. as a result of the contracts awarded above and with the contract to provide rental barrier for the presidential inauguration in january 2013 , the company believes it will be profitable for at least the first three quarters of 2013 , although no assurance can be given . results of operations year ended december 31 , 2012 compared to the year ended december 31 , 2011 for the year ended december 31 , 2012 , the company had total revenue of $ 24,893,613 compared to total revenue of $ 26,696,727 for the year ended december 31 , 2011 , a decrease of $ 1,803,114 , or 7 % . sales include revenues from product sales , royalty income , barrier rental income and shipping and installation income . product sales are further divided into wall panel sales , which include soundwall , architectural and slenderwall panels , highway barrier , beach prisms , easi-set® and easi-span® buildings , utility and farm products and miscellaneous precast products . the following table summarizes the sales by product type and a comparison for the years ended december 31 , 2012 and 2011 : 11 replace_table_token_1_th wall panel sales – wall panel sales are generally medium to large contracts issued by general contractors for production and delivery of a specific wall panel product for a specific construction project . changes in the mix of wall panel sales depend on what contracts are in production during the period . soundwall sales increased significantly in 2012 due primarily to a large soundwall contract for a road project started in mid 2012 for which production will be completed in the first quarter of 2013. architectural sales decreased significantly in 2012 as continued downward price pressure on architectural projects made it difficult for the company to bid competitively on these projects . management believes it may be at least another year before architectural jobs will return to higher profit margin levels . slenderwall sales decreased in 2012 due to two large slenderwall contracts that were substantially completed in 2011 replaced with only two small jobs in 2012. the company was recently awarded a large slenderwall project in new jersey that will start in the second quarter of 2013 and could significantly increase slenderwall sales in 2013. miscellaneous wall sales are mainly retaining walls which are used to hold back earth on sloped land . these types of projects were down in 2012 due to the continued weakness in the construction industry . barrier sales – barrier sales are dependent on the number of highway projects active during the period and whether customers are more prone to buy barrier than to rent . in 2012 barrier sales increased by 29 % from the previous year . this increase relates to a major highway project that funded in 2012 and began construction in the summer of the year . it is anticipated by the company that barrier sales will decrease slightly or remain flat in 2013. beach prisms – the company made its first sales of beach prisms in 2009 and continued to make minor sales in 2010 and 2011. there were no sales in 2012. the company is still in the process of seeking to acquire the necessary permits from the states of maryland and virginia , which has been more difficult than originally estimated . the company did receive a permit in the state of virginia during 2011 and anticipates that further permits will occur and additional sales will be forthcoming , however , this can not be assured . easi-set® and easi-span® building sales – easi-set® and easi-span® building sales increased by 10 % compared to the same period in 2011. the increased sales of buildings was primarily due to the sale of several easi-span® buildings ( the larger sized buildings ) . story_separator_special_tag the decrease was due to decreased sales salaries and general sales expenses partially offset by increased advertising expense . operating income – the company had operating income for the year ended december 31 , 2012 of $ 687,762 compared to an operating loss of $ 364,836 for the year ended december 31 , 2011 , an increase of $ 1,052,598. the increase in operating income was primarily the result of a decrease in cost of goods sold for the year ended december 31 , 2012 as a percentage of revenue as discussed above . 13 interest expense – interest expense was $ 134,828 for the year ended december 31 , 2012 compared to $ 136,067 for the year ended december 31 , 2011 . the decrease of $ 1,239 , or 1 % , was due primarily to lower balances on notes payable outstanding . income tax expense – the company had an income tax expense of $ 182,000 for the year ended december 31 , 2012 compared to an income tax benefit of $ 136,000 for the year ended december 31 , 2011 . net income – the company had net income of $ 376,691 for the year ended december 31 , 2012 , compared to a net loss of $ 351,680 for the same period in 2011. the basic and diluted earnings per share for 2012 was $ 0.08 , compared to basic and diluted net loss per share of $ 0.07 for the year ended december 31 , 2011 . there were 4,826,182 basic and 4,867,475 diluted weighted average shares outstanding in 2012 and 4,790,476 basic and diluted weighted average shares outstanding in the 2011. story_separator_special_tag giving due consideration to materiality . the company does not believe there is a great likelihood that materially different amounts would be reported related to the accounting policies described below , however , application of these accounting policies involves the exercise of judgment and the use of assumptions as to future uncertainties and as a result , actual results could differ from these estimates . the company evaluates the adequacy of its allowance for doubtful accounts at the end of each quarter . in performing this evaluation , the company analyzes the payment history of its significant past due accounts , subsequent cash collections on these accounts and comparative accounts receivable aging statistics . based on this information , along with other related factors , the company develops what it considers to be a reasonable estimate of the uncollectible amounts included in accounts receivable . this estimate involves significant judgment by the management of the company . actual uncollectible amounts may differ from the company 's estimate . the company recognizes revenue on the sale of its standard precast concrete products at shipment date , including revenue derived from any projects to be completed under short-term contracts . installation services for precast concrete products , leasing and royalties are recognized as revenue as they are earned on an accrual basis . licensing fees are recognized under the accrual method unless collectability is in doubt , in which event revenue is recognized as cash is received . certain sales of soundwall , slenderwall , and other architectural concrete products are recognized upon completion of units produced under long-term contracts . when necessary , provisions for estimated losses on these contracts are made in the period in which such losses are determined . changes in job performance , conditions and contract settlements that affect profit are recognized in the period in which the changes occur . unbilled trade accounts receivable represents revenue earned on units produced and not yet billed . seasonality the company services the construction industry primarily in areas of the united states where construction activity may be inhibited by adverse weather during the winter . as a result , the company may experience reduced revenues from december through february and realize the substantial part of its revenues during the other months of the year . the company may experience lower profits , or losses , during the winter months , and as such , must have sufficient working capital to fund its operations at a reduced level until the spring construction season . the failure to generate or obtain sufficient working capital during the winter may have a material adverse effect on the company . inflation management believes that the company 's operations were not significantly affected by inflation in 2012 and 2011 , particularly in the purchases of certain raw materials such as steel and fuel . the company believes that raw material pricing will see some modest increases in 2013 as the economy continues its slow recovery , although no assurance can be given regarding future pricing . other comments as of march 4 , 2013 the company 's sales backlog of inventoried products and unbilled construction contracts was approximately $ 6.7 million as compared to approximately $ 7.8 million at approximately the same time in 2011. the reduction in the backlog relates to the weak construction industry as well as the shortening of the time period between bidding a project and putting the project into production compared to longer lead times when funding is more readily available in a strong construction industry . the majority of the projects relating to the sales backlog as of march 4 , 2013 are scheduled to be shipped during 2013. the company also maintains a regularly occurring repeat customer business , which should be considered in addition to the orders in the sales backlog described above . these orders typically have a quick turn around and represent purchases of the company 's inventoried standard products , such as highway safety barrier , utility and easi-set building products . historically , this regularly occurring segment of our customer base is equal to approximately $ 5,000,000 to $ 7,000,000 annually . the risk exists that recessionary economic conditions may adversely affect the company more than it has experienced to date . to mitigate

total estimated costs of the feasibility program are based on management 's assessment of costs to complete the program based on an evaluation of the portion of the program completed , costs incurred to date , planned program activities , anticipated program timelines and the expected future costs of the program . adjustments to revenue are recorded if estimated costs to complete change materially from previous periods . to the extent that our estimated costs change materially , our revenues recorded under this activity could be materially affected and such change could have a material adverse effect on our operations in future periods . during the second quarter of 2005 , management increased its estimate of costs to complete the feasibility program to $ 16.1 million from its prior estimate . the increase in the cost to complete the feasibility program was primarily attributed to the additional patient safety monitoring related to amending the phase ii proof-of -concept clinical trial protocols for ep-2104r announced in july 2005. the impact of increasing the estimated cost to complete the feasibility program resulted in a reduction in product development revenue of approximately $ 1.5 million during the same period . during the fourth quarter of 2005 , management lowered its estimate of the cost to complete the feasibility program from $ 16.1 million to $ 15.2 million at december 31 , 2005 as a result of increased enrollment rate for this clinical trial . this latest reduction in the estimated total cost of the feasibility program resulted in an increase in product development revenue of $ 449,944 , which was recognized in the fourth quarter of 2005. revenue under our research collaboration with schering ag is recognized as services are provided , for which schering ag is obligated to reimburse us . royalty revenue is recognized based on actual revenues reported to us by bracco and schering ag . prior to the fourth quarter of 2004 , we recognized royalty revenue based on royalty reports received from bracco or on bracco 's estimates , historical revenues and trends when royalty reports from bracco were not available in a timely manner . in december 2004 , we were notified that bracco was asserting that it had overstated its non-u.s. royalties to us for the period 2001 to 2004 , and that bracco would offset the amount of the overstatement against its payments to us , including those triggered by fda approval of multihance ® in the u.s. although we are disputing bracco 's position regarding the overstatement , we recognized the impact of bracco 's claimed overstatement by reducing our 2004 royalty revenue . in addition , because we no longer believe that we have a reasonable basis to make royalty estimates under the agreement with bracco , we have , commencing in the fourth quarter of 2004 , only recognized royalty revenue from bracco in the period in which royalty reports are received . research and development research and development costs , including those associated with technology , licenses and patents , are expensed as incurred . research and development costs include employee salaries and related costs , third party service costs , the costs of preclinical and clinical trial supplies and consulting expenses . in order to conduct research and development activities and compile regulatory submissions , we enter into contracts with vendors who render services over extended periods of time , generally one to three years . 33 typically , we enter into three types of vendor contracts : time-based , patient-based or a combination thereof . under a time-based contract , using critical factors contained within the contract , usually the stated duration of the contract and the timing of services provided , we record the contractual expense for each service provided under the contract ratably over the period during which we estimate the service will be performed . under a patient-based contract , we first determine an appropriate per patient cost using critical factors contained within the contract , which include the estimated number of patients and the total dollar value of the contract . we then record expense based upon the total number of patients enrolled during the period . on a quarterly basis , we review both the timetable of services to be rendered and the timing of services actually rendered . based upon this review , revisions may be made to the forecasted timetable or to the extent of services performed , or both , in order to reflect our most current estimate of the contract . adjustments are recorded in the period in which the revisions are estimable . these adjustments could have a material effect on our results of operations . employee stock compensation we have elected to follow accounting principles board opinion no . 25 , “accounting for stock issued to employees , ” or apb 25 , and related interpretations in accounting for our employee stock options under the intrinsic value method , rather than the alternative fair value accounting provided for under statement of financial accounting standards no . 123 ( r ) , “share-based payments — an amendment of fasb statement no . 123 and 95 , ” or sfas 123r . under apb 25 , because the exercise price is equal to the market price of the underlying stock on the date of the grant , no compensation expense is recognized . our financial results could be materially adversely affected by the required adoption of sfas 123r , effective january 1 , 2006 , to the extent of the additional compensation expense that we would have to recognize , which could change significantly from period to period based on several factors , including the number of stock options granted and fluctuations in our stock price and or interest rates . see note 2 to the notes to financial statements . story_separator_special_tag because of anticipated spending for the continued development of vasovist and ep-2104r and to support selective research programs , we do not expect positive cash flow from operating activities for any future quarterly or annual period prior to commercialization of vasovist in the u.s. the following table represents payments due under contractual obligations and commercial commitments as of december 31 , 2005 : replace_table_token_3_th we have incurred tax losses to date and therefore have not paid significant federal or state income taxes since inception . as of december 31 , 2005 , we had federal net operating loss carryforwards of approximately $ 180.4 million available to offset future taxable income . these amounts expire at various times through 2025. as a result of ownership changes resulting from sales of equity securities , our ability to use the net operating loss carryforwards is subject to limitations as defined in sections 382 and 383 of the internal revenue code of 1986 , as amended , or the code . we currently estimate that the annual limitation on our use of net operating losses generated through may 31 , 1996 to be approximately $ 900,000. pursuant to sections 382 and 383 of the code , the change in ownership resulting from public equity offerings in 1997 and any other future ownership changes may further limit utilization of losses and credits in any one year . we also are eligible for research and development tax credits that can be carried forward to offset federal taxable income . the annual limitation and the timing of attaining profitability may result in the expiration of net operating loss and tax credit carryforwards before utilization . certain factors that may affect future results of operations this report contains certain forward-looking statements as that term is defined in the private securities litigation reform act of 1995. such statements are based on management 's current expectations and are subject to a number of factors and uncertainties , which could cause actual results to differ materially from those described in the forward-looking statements . we caution investors that there can be no assurance that actual results or business conditions will not differ materially from those projected or suggested in such forward-looking statements as a result of various factors , including , but not limited to , the following : the uncertainties associated with pre-clinical studies and clinical trials ; our lack of product revenues ; our history of operating losses and accumulated deficit ; our lack of commercial manufacturing experience and commercial sales , distribution and marketing capabilities ; reliance on suppliers of key materials necessary for production of our products and technologies ; the potential development by competitors of competing products and technologies ; our dependence on existing and potential collaborative partners , and the lack of assurance that we will receive any funding under such 40 relationships to develop and maintain strategic alliances ; the lack of assurance regarding patent and other protection for our proprietary technology ; governmental regulation of our activities , facilities , products and personnel ; the dependence on key personnel ; uncertainties as to the extent of reimbursement for the costs of our potential products and related treatments by government and private health insurers and other organizations ; the potential adverse impact of government-directed health care reform ; the risk of product liability claims ; and economic conditions , both generally and those specifically related to the biotechnology industry . as a result , our future development efforts involve a high degree of risk . for further information , refer to the more specific risks and uncertainties discussed throughout this annual report on form 10-k. management 's report on internal controls our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in rules 13a-15 ( f ) and 15d-15 ( f ) under the securities exchange act of 1934 , as amended , as a process designed by , or under the supervision of , our principal executive and principal financial officers and effected by our board of directors , management and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles . our internal control over financial reporting includes those policies and procedures that : pertain to the maintenance of records that , in reasonable detail , accurately and fairly reflects transactions in and dispositions of our assets ; provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles , and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors ; and provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition , use or disposition of our assets that could have a material effect on the financial statements . because of its inherent limitations , internal control over financial reporting may not prevent or detect misstatements . projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions , or that the degree of compliance with the policies or procedures may deteriorate . our management assessed the effectiveness of our internal control over financial reporting as of december 31 , 2005. in making this assessment , management used the criteria set forth by the committee of sponsoring organizations of the treadway commission ( coso ) in internal control-integrated framework . based on this assessment , management has concluded that , as of december 31 , 2005 , our internal control over financial reporting is effective based on those criteria . our independent registered public accounting firm has issued an audit report on our assessment of our internal control over financial reporting . this report appears immediately following below . 41 report of independent registered public accounting firm the board of directors and shareholders

liquidity and capital resources our principal sources of liquidity consist of cash , cash equivalents and available-for-sale marketable securities of $ 124.7 million at december 31 , 2005 as compared to $ 164.4 million at december 31 , 2004. the decrease in cash , cash equivalents and available-for-sale marketable securities was primarily attributed to funding of our ongoing operations and to management 's decision not to drawdown the $ 15.0 million loan facility from schering ag at the end of 2005. we used approximately $ 24.3 million of net cash to fund operations for the year ended december 31 , 2005 , which compares to $ 22.5 million for the same period in 2004. the net use of cash to fund operations during the year ended december 31 , 2005 resulted from the net loss of $ 24.3 million , combined with a reduction in deferred revenue of $ 2.4 million , and was offset by decreases in accounts receivable of $ 173,000 and prepaid expenses of $ 238,000 , an increase in accounts payable of $ 330,000 and to non-cash expenses , primarily comprised of depreciation and amortization of $ 1.7 million . the reduction in deferred revenue resulted from the offset of prepaid royalties from bracco , plus the recognition of other license fee revenue related to payments from schering ag , tyco/ mallinckrodt and bracco , which are being amortized into revenue in accordance with the requirements of sab 104. the decrease in accounts receivable was primarily attributed to lower pre-launch marketing costs reimbursable by schering ag . the decrease in prepaid expenses resulted from the change in the timing of insurance premium payments . the increase in accounts payable was due to a number of larger clinical trial invoices that came in late in the year related to the ep-2104r development program .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 principal sources of liquidity consist of cash , cash equivalents and available-for-sale marketable securities of $ 124.7 million at december 31 , 2005 as compared to $ 164.4 million at december 31 , 2004. the decrease in cash , cash equivalents and available-for-sale marketable securities was primarily attributed to funding of our ongoing operations and to management 's decision not to drawdown the $ 15.0 million loan facility from schering ag at the end of 2005. we used approximately $ 24.3 million of net cash to fund operations for the year ended december 31 , 2005 , which compares to $ 22.5 million for the same period in 2004. the net use of cash to fund operations during the year ended december 31 , 2005 resulted from the net loss of $ 24.3 million , combined with a reduction in deferred revenue of $ 2.4 million , and was offset by decreases in accounts receivable of $ 173,000 and prepaid expenses of $ 238,000 , an increase in accounts payable of $ 330,000 and to non-cash expenses , primarily comprised of depreciation and amortization of $ 1.7 million . the reduction in deferred revenue resulted from the offset of prepaid royalties from bracco , plus the recognition of other license fee revenue related to payments from schering ag , tyco/ mallinckrodt and bracco , which are being amortized into revenue in accordance with the requirements of sab 104. the decrease in accounts receivable was primarily attributed to lower pre-launch marketing costs reimbursable by schering ag . the decrease in prepaid expenses resulted from the change in the timing of insurance premium payments . the increase in accounts payable was due to a number of larger clinical trial invoices that came in late in the year related to the ep-2104r development program . ``` Suspicious Activity Report : total estimated costs of the feasibility program are based on management 's assessment of costs to complete the program based on an evaluation of the portion of the program completed , costs incurred to date , planned program activities , anticipated program timelines and the expected future costs of the program . adjustments to revenue are recorded if estimated costs to complete change materially from previous periods . to the extent that our estimated costs change materially , our revenues recorded under this activity could be materially affected and such change could have a material adverse effect on our operations in future periods . during the second quarter of 2005 , management increased its estimate of costs to complete the feasibility program to $ 16.1 million from its prior estimate . the increase in the cost to complete the feasibility program was primarily attributed to the additional patient safety monitoring related to amending the phase ii proof-of -concept clinical trial protocols for ep-2104r announced in july 2005. the impact of increasing the estimated cost to complete the feasibility program resulted in a reduction in product development revenue of approximately $ 1.5 million during the same period . during the fourth quarter of 2005 , management lowered its estimate of the cost to complete the feasibility program from $ 16.1 million to $ 15.2 million at december 31 , 2005 as a result of increased enrollment rate for this clinical trial . this latest reduction in the estimated total cost of the feasibility program resulted in an increase in product development revenue of $ 449,944 , which was recognized in the fourth quarter of 2005. revenue under our research collaboration with schering ag is recognized as services are provided , for which schering ag is obligated to reimburse us . royalty revenue is recognized based on actual revenues reported to us by bracco and schering ag . prior to the fourth quarter of 2004 , we recognized royalty revenue based on royalty reports received from bracco or on bracco 's estimates , historical revenues and trends when royalty reports from bracco were not available in a timely manner . in december 2004 , we were notified that bracco was asserting that it had overstated its non-u.s. royalties to us for the period 2001 to 2004 , and that bracco would offset the amount of the overstatement against its payments to us , including those triggered by fda approval of multihance ® in the u.s. although we are disputing bracco 's position regarding the overstatement , we recognized the impact of bracco 's claimed overstatement by reducing our 2004 royalty revenue . in addition , because we no longer believe that we have a reasonable basis to make royalty estimates under the agreement with bracco , we have , commencing in the fourth quarter of 2004 , only recognized royalty revenue from bracco in the period in which royalty reports are received . research and development research and development costs , including those associated with technology , licenses and patents , are expensed as incurred . research and development costs include employee salaries and related costs , third party service costs , the costs of preclinical and clinical trial supplies and consulting expenses . in order to conduct research and development activities and compile regulatory submissions , we enter into contracts with vendors who render services over extended periods of time , generally one to three years . 33 typically , we enter into three types of vendor contracts : time-based , patient-based or a combination thereof . under a time-based contract , using critical factors contained within the contract , usually the stated duration of the contract and the timing of services provided , we record the contractual expense for each service provided under the contract ratably over the period during which we estimate the service will be performed . under a patient-based contract , we first determine an appropriate per patient cost using critical factors contained within the contract , which include the estimated number of patients and the total dollar value of the contract . we then record expense based upon the total number of patients enrolled during the period . on a quarterly basis , we review both the timetable of services to be rendered and the timing of services actually rendered . based upon this review , revisions may be made to the forecasted timetable or to the extent of services performed , or both , in order to reflect our most current estimate of the contract . adjustments are recorded in the period in which the revisions are estimable . these adjustments could have a material effect on our results of operations . employee stock compensation we have elected to follow accounting principles board opinion no . 25 , “accounting for stock issued to employees , ” or apb 25 , and related interpretations in accounting for our employee stock options under the intrinsic value method , rather than the alternative fair value accounting provided for under statement of financial accounting standards no . 123 ( r ) , “share-based payments — an amendment of fasb statement no . 123 and 95 , ” or sfas 123r . under apb 25 , because the exercise price is equal to the market price of the underlying stock on the date of the grant , no compensation expense is recognized . our financial results could be materially adversely affected by the required adoption of sfas 123r , effective january 1 , 2006 , to the extent of the additional compensation expense that we would have to recognize , which could change significantly from period to period based on several factors , including the number of stock options granted and fluctuations in our stock price and or interest rates . see note 2 to the notes to financial statements . story_separator_special_tag because of anticipated spending for the continued development of vasovist and ep-2104r and to support selective research programs , we do not expect positive cash flow from operating activities for any future quarterly or annual period prior to commercialization of vasovist in the u.s. the following table represents payments due under contractual obligations and commercial commitments as of december 31 , 2005 : replace_table_token_3_th we have incurred tax losses to date and therefore have not paid significant federal or state income taxes since inception . as of december 31 , 2005 , we had federal net operating loss carryforwards of approximately $ 180.4 million available to offset future taxable income . these amounts expire at various times through 2025. as a result of ownership changes resulting from sales of equity securities , our ability to use the net operating loss carryforwards is subject to limitations as defined in sections 382 and 383 of the internal revenue code of 1986 , as amended , or the code . we currently estimate that the annual limitation on our use of net operating losses generated through may 31 , 1996 to be approximately $ 900,000. pursuant to sections 382 and 383 of the code , the change in ownership resulting from public equity offerings in 1997 and any other future ownership changes may further limit utilization of losses and credits in any one year . we also are eligible for research and development tax credits that can be carried forward to offset federal taxable income . the annual limitation and the timing of attaining profitability may result in the expiration of net operating loss and tax credit carryforwards before utilization . certain factors that may affect future results of operations this report contains certain forward-looking statements as that term is defined in the private securities litigation reform act of 1995. such statements are based on management 's current expectations and are subject to a number of factors and uncertainties , which could cause actual results to differ materially from those described in the forward-looking statements . we caution investors that there can be no assurance that actual results or business conditions will not differ materially from those projected or suggested in such forward-looking statements as a result of various factors , including , but not limited to , the following : the uncertainties associated with pre-clinical studies and clinical trials ; our lack of product revenues ; our history of operating losses and accumulated deficit ; our lack of commercial manufacturing experience and commercial sales , distribution and marketing capabilities ; reliance on suppliers of key materials necessary for production of our products and technologies ; the potential development by competitors of competing products and technologies ; our dependence on existing and potential collaborative partners , and the lack of assurance that we will receive any funding under such 40 relationships to develop and maintain strategic alliances ; the lack of assurance regarding patent and other protection for our proprietary technology ; governmental regulation of our activities , facilities , products and personnel ; the dependence on key personnel ; uncertainties as to the extent of reimbursement for the costs of our potential products and related treatments by government and private health insurers and other organizations ; the potential adverse impact of government-directed health care reform ; the risk of product liability claims ; and economic conditions , both generally and those specifically related to the biotechnology industry . as a result , our future development efforts involve a high degree of risk . for further information , refer to the more specific risks and uncertainties discussed throughout this annual report on form 10-k. management 's report on internal controls our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in rules 13a-15 ( f ) and 15d-15 ( f ) under the securities exchange act of 1934 , as amended , as a process designed by , or under the supervision of , our principal executive and principal financial officers and effected by our board of directors , management and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles . our internal control over financial reporting includes those policies and procedures that : pertain to the maintenance of records that , in reasonable detail , accurately and fairly reflects transactions in and dispositions of our assets ; provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles , and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors ; and provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition , use or disposition of our assets that could have a material effect on the financial statements . because of its inherent limitations , internal control over financial reporting may not prevent or detect misstatements . projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions , or that the degree of compliance with the policies or procedures may deteriorate . our management assessed the effectiveness of our internal control over financial reporting as of december 31 , 2005. in making this assessment , management used the criteria set forth by the committee of sponsoring organizations of the treadway commission ( coso ) in internal control-integrated framework . based on this assessment , management has concluded that , as of december 31 , 2005 , our internal control over financial reporting is effective based on those criteria . our independent registered public accounting firm has issued an audit report on our assessment of our internal control over financial reporting . this report appears immediately following below . 41 report of independent registered public accounting firm the board of directors and shareholders

however , the amount of the change that is reasonably possible can not be estimated . the evaluation of the adequacy of loan collateral is often based upon estimates and appraisals . due to changing economic conditions , the valuations determined from such estimates and appraisals may also change . accordingly , the company may ultimately incur losses that vary from management 's current estimates . adjustments to the allowance for loan losses will be reported in the period such adjustments become known or can be reasonably estimated . all loan losses are charged to the allowance for loan losses when the loss actually occurs or when the collectability of the principal is unlikely . recoveries are credited to the allowance at the time of recovery . emerging growth company pursuant to the jobs act , an egc is provided the option to adopt new or revised accounting standards that may be issued by the fasb or the sec either ( i ) within the same periods as those otherwise applicable to non-egcs or ( ii ) within the same time periods as private companies . the company elected the option to utilize the delayed effective dates of recently issued accounting standards . as permitted by the jobs act , so long as it qualifies as an egc , the company will take advantage of some of the reduced regulatory and reporting requirements that are available to it , including , but not limited to , not being required to comply with the auditor attestation requirements of section 404 ( b ) of the sarbanes-oxley act , reduced disclosure obligations regarding executive compensation , and exemptions from the requirements of holding non-binding advisory votes on executive compensation and golden parachute payments . recently issued accounting standards for a discussion of the impact of recently issued accounting standards , please see note 3 to the company 's consolidated financial statements 40 selected financial information the following table includes selected financial information for the company for the periods indicated : replace_table_token_0_th nm – not meaningful discussion of financial condition summary the company had total assets of $ 3.36 billion at december 31 , 2019 , compared with $ 2.18 billion at december 31 , 2018. loans , net of deferred fees and unamortized costs , increased by $ 807.7 million , or 43.3 % , to $ 2.67 billion at december 31 , 2019 as compared to $ 1.87 billion at december 31 , 2018. for 2019 , the bank 's loan production was $ 1.1 billion , as compared to $ 830.4 million for the year ended december 31 , 2018. the increase in loans during 2019 consisted , primarily , of loan originations and purchases of $ 584.7 million in real estate loans and $ 506.0 million in commercial and industrial loans . the increase in loan production in 2019 was the result of expanding existing lending relationships , particularly in skilled nursing facilities , as well as developing new relationships . new loans generated from existing 41 relationships amounted to $ 497.1 million , or 46 % , of the total loan production for 2019. new loans related to skilled nursing facilities amounted to $ 330.0 million , or 30 % , of the total loan production for 2019. the bank was able to fund the increased level of loan production with deposits , which increased $ 1.13 billion , or 68.1 % , during the year ended december 31 , 2019. total cash and cash equivalents increased $ 158.3 million , or 67.9 % , to $ 391.2 million at december 31 , 2019 , as compared to $ 233.0 million at december 31 , 2018. total securities , primarily those classified as available-for-sale ( “ afs ” ) , increased $ 203.8 million , or 548.9 % to $ 240.9 million at december 31 , 2019 , as compared to $ 37.1 million at december 31 , 2018. the increases in cash and cash equivalents and securities reflect the strong growth in deposits of $ 1.13 billion that exceeded growth in loans of $ 807.7 million . at december 31 , 2019 , $ 126.2 million of afs securities were pledged as collateral for certain deposits and were , therefore , considered encumbered as of december 31 , 2019. there were no securities pledged at december 31 , 2018. total deposits increased $ 1.13 billion , or 68.1 % , to $ 2.79 billion at december 31 , 2019 , as compared to $ 1.66 billion at december 31 , 2018. this was due to an increase of $ 838.3 million in interest-bearing deposits to $ 1.70 billion at december 31 , 2019 , as compared to $ 862.0 million at december 31 , 2018 , and an increase of $ 291.9 million in non-interest-bearing deposits to $ 1.09 billion at december 31 , 2019 , as compared to $ 798.6 million at december 31 , 2018. the increase in deposits was primarily due to growth in the bank 's bankruptcy account deposit vertical and property management accounts , as well as deposit growth in the bank 's retail network . federal home loan bank of new york ( “ fhlb ” ) advances decreased by $ 41.0 million , or 22.2 % , to $ 144.0 million at december 31 , 2019 , as compared to $ 185.0 million at december 31 , 2018 , as the deposit growth during the year was sufficient to support the bank 's loan growth and to reduce the level of borrowings . story_separator_special_tag the subordinated notes may be redeemed in whole or in part , at a redemption price equal to 100 % of the principal amount of the subordinated notes plus any accrued and unpaid interest . secured borrowings the bank has loan participation agreements with counterparties . the bank is generally the servicer for these loans . if the transfer of the participation interest does not qualify for sale treatment under current accounting guidance , the amount of the loan transferred is recorded as a secured borrowing . there were $ 43.0 million in secured borrowings as of december 31 , 2019 and none as of december 31 , 2018. discussion of the results of operations for the year ended december 31 , 2019 net income net income increased $ 4.5 million to $ 30.1 million for 2019 , as compared to $ 25.6 million for 2018. this increase was primarily due to a $ 26.4 million increase in net interest income , partially offset by a $ 1.5 million decrease in non-interest income , a $ 16.5 million increase in non-interest expense and a $ 2.7 million increase in income tax expense . 54 net interest income analysis net interest income is the difference between interest earned on assets and interest incurred on liabilities . the following table presents an analysis of net interest income by each major category of interest-earning assets and interest-bearing liabilities for the years ended december 31 , 2019 , 2018 and 2017 ( dollars in thousands ) . non-accrual loans were included in the computation of average balances and therefore have a zero yield . replace_table_token_17_th ( 1 ) amount includes deferred loan fees and non-performing loans . ( 2 ) determined by subtracting the weighted average cost of total interest-bearing liabilities from the weighted average yield on total interest-earning assets . ( 3 ) determined by dividing net interest income by total average interest-earning assets . 55 rate/volume analysis the following table presents the effects of changing rates and volumes on net interest income for the periods indicated . the rate column shows the effects attributable to changes in rate ( changes in rate multiplied by prior volume ) . the volume column shows the effects attributable to changes in volume ( changes in volume multiplied by prior rate ) . the net column represents the sum of the prior columns . for purposes of this table , changes attributable to both rate and volume , which can not be segregated , have been allocated proportionately , based on the changes due to rate and the changes due to volume ( dollars in thousands ) . replace_table_token_18_th net interest margin decreased 24 basis points to 3.46 % for 2019 from 3.70 % for 2018. total average interest-earning assets increased $ 898.0 million to $ 2.82 billion for 2019 , as compared to $ 1.93 billion for 2018. the total yield on average interest-earning assets increased 24 basis points to 4.60 % for 2019 as compared to 4.36 % for 2018. the cost of interest-bearing liabilities increased 43 basis points to 2.05 % for 2019 , as compared to 1.62 % for 2018. non-interest-bearing deposits accounted for 38 % of total funding in 2019 , as compared to 53 % in 2018. as a result , the ratio of average interest-earning assets to average interest-bearing liabilities decreased to 1.80x for 2019 , as compared to 2.45x for 2018. interest income interest income increased $ 45.8 million to $ 129.8 million for 2019 , as compared to $ 83.9 million for 2018. this increase was primarily due to increases of $ 39.8 million in interest income on loans , $ 3.0 million in interest on afs securities , and $ 2.7 million in interest on overnight deposits . the increase in interest income on loans was due to a $ 699.5 million increase in the average balance of loans to $ 2.30 billion and a 26 basis point increase in the average yield to 5.08 % for 2019 , as compared to an average balance of $ 1.60 billion and an average yield of 4.82 % on loans for 2018. the increase in the average balance of loans reflects the bank 's focus on expanding existing relationships and developing new ones . the growth in the loan portfolio was led by growth in the bank 's healthcare portfolio . new loans related to skilled nursing facilities amounted to $ 330.0 million , or 30 % of total loan production in 2019. the increase in interest on afs securities was due to an $ 113.7 million increase in average balance of afs securities to $ 142.1 million for 2019 , as compared to $ 28.5 million for 2018. additionally , the average yield on afs securities increased 39 basis points to 2.52 % , as compared to 2.13 % for those same periods . the increase in interest on overnight deposits was due to an increase of $ 80.1 million in the average balance of overnight funds to $ 348.7 million for 2019 , as compared to $ 268.6 million for 2018. the average yield on overnight deposits increased 34 basis points to 2.22 % , as compared to 1.88 % for those same periods . 56 interest expense interest expense increased $ 19.5 million to $ 32.2 million for 2019 , as compared to $ 12.7 million for 2018. this increase was due primarily to a $ 16.4 million increase in interest on deposits and a $ 3.0 million increase in interest on borrowings . the increase in interest expense on deposits was primarily due to a $ 669.7 million increase in the average balance of interest-bearing deposits to $ 1.36 billion for 2019 and a 56 basis point increase in the average cost of deposits to 1.88 % , as compared to an average balance of $ 688.3 million and an average cost of 1.32 % for 2018. the growth in the average balance of

liquidity and capital resources liquidity is the ability to meet current and future financial obligations of a short-term nature . the bank 's primary sources of funds consist of deposit inflows , loan repayments and maturities and sales of securities . while maturities and scheduled amortization of loans and securities are predictable sources of funds , deposit flows and mortgage prepayments are greatly influenced by general interest rates , economic conditions and competition . the bank regularly reviews the need to adjust investments in liquid assets based upon an assessment of : ( 1 ) expected loan demand , ( 2 ) expected deposit flows , ( 3 ) yields available on interest earning deposits and securities , and ( 4 ) the objectives of the alco program . excess liquid assets are invested generally in interest earning deposits and short- and intermediate-term securities . the bank 's most liquid assets are cash and cash equivalents . the levels of these assets are dependent on operating , financing , lending and investing activities during any given period . at december 31 , 2019 and 2018 , cash and cash equivalents totaled $ 391.2 million and $ 233.0 million , respectively . securities classified as afs , which provide additional sources of liquidity , totaled $ 234.9 million at december 31 , 2019 and $ 30.4 million at december 31 , 2018. there were $ 126.2 million of afs securities pledged as collateral for certain deposits at december 31 , 2019. there were no securities pledged at december 31 , 2018 . 58 at december 31 , 2019 , the bank had the ability to borrow $ 437.8 million from the federal home loan bank of new york ( “ fhlbny ” ) , of which it had borrowed $ 144.0 million . it also had an available line of credit with the frbny discount window of $ 99.2 million . the fhlb advances were used to supplement deposit funding to support loan growth .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources liquidity is the ability to meet current and future financial obligations of a short-term nature . the bank 's primary sources of funds consist of deposit inflows , loan repayments and maturities and sales of securities . while maturities and scheduled amortization of loans and securities are predictable sources of funds , deposit flows and mortgage prepayments are greatly influenced by general interest rates , economic conditions and competition . the bank regularly reviews the need to adjust investments in liquid assets based upon an assessment of : ( 1 ) expected loan demand , ( 2 ) expected deposit flows , ( 3 ) yields available on interest earning deposits and securities , and ( 4 ) the objectives of the alco program . excess liquid assets are invested generally in interest earning deposits and short- and intermediate-term securities . the bank 's most liquid assets are cash and cash equivalents . the levels of these assets are dependent on operating , financing , lending and investing activities during any given period . at december 31 , 2019 and 2018 , cash and cash equivalents totaled $ 391.2 million and $ 233.0 million , respectively . securities classified as afs , which provide additional sources of liquidity , totaled $ 234.9 million at december 31 , 2019 and $ 30.4 million at december 31 , 2018. there were $ 126.2 million of afs securities pledged as collateral for certain deposits at december 31 , 2019. there were no securities pledged at december 31 , 2018 . 58 at december 31 , 2019 , the bank had the ability to borrow $ 437.8 million from the federal home loan bank of new york ( “ fhlbny ” ) , of which it had borrowed $ 144.0 million . it also had an available line of credit with the frbny discount window of $ 99.2 million . the fhlb advances were used to supplement deposit funding to support loan growth . ``` Suspicious Activity Report : however , the amount of the change that is reasonably possible can not be estimated . the evaluation of the adequacy of loan collateral is often based upon estimates and appraisals . due to changing economic conditions , the valuations determined from such estimates and appraisals may also change . accordingly , the company may ultimately incur losses that vary from management 's current estimates . adjustments to the allowance for loan losses will be reported in the period such adjustments become known or can be reasonably estimated . all loan losses are charged to the allowance for loan losses when the loss actually occurs or when the collectability of the principal is unlikely . recoveries are credited to the allowance at the time of recovery . emerging growth company pursuant to the jobs act , an egc is provided the option to adopt new or revised accounting standards that may be issued by the fasb or the sec either ( i ) within the same periods as those otherwise applicable to non-egcs or ( ii ) within the same time periods as private companies . the company elected the option to utilize the delayed effective dates of recently issued accounting standards . as permitted by the jobs act , so long as it qualifies as an egc , the company will take advantage of some of the reduced regulatory and reporting requirements that are available to it , including , but not limited to , not being required to comply with the auditor attestation requirements of section 404 ( b ) of the sarbanes-oxley act , reduced disclosure obligations regarding executive compensation , and exemptions from the requirements of holding non-binding advisory votes on executive compensation and golden parachute payments . recently issued accounting standards for a discussion of the impact of recently issued accounting standards , please see note 3 to the company 's consolidated financial statements 40 selected financial information the following table includes selected financial information for the company for the periods indicated : replace_table_token_0_th nm – not meaningful discussion of financial condition summary the company had total assets of $ 3.36 billion at december 31 , 2019 , compared with $ 2.18 billion at december 31 , 2018. loans , net of deferred fees and unamortized costs , increased by $ 807.7 million , or 43.3 % , to $ 2.67 billion at december 31 , 2019 as compared to $ 1.87 billion at december 31 , 2018. for 2019 , the bank 's loan production was $ 1.1 billion , as compared to $ 830.4 million for the year ended december 31 , 2018. the increase in loans during 2019 consisted , primarily , of loan originations and purchases of $ 584.7 million in real estate loans and $ 506.0 million in commercial and industrial loans . the increase in loan production in 2019 was the result of expanding existing lending relationships , particularly in skilled nursing facilities , as well as developing new relationships . new loans generated from existing 41 relationships amounted to $ 497.1 million , or 46 % , of the total loan production for 2019. new loans related to skilled nursing facilities amounted to $ 330.0 million , or 30 % , of the total loan production for 2019. the bank was able to fund the increased level of loan production with deposits , which increased $ 1.13 billion , or 68.1 % , during the year ended december 31 , 2019. total cash and cash equivalents increased $ 158.3 million , or 67.9 % , to $ 391.2 million at december 31 , 2019 , as compared to $ 233.0 million at december 31 , 2018. total securities , primarily those classified as available-for-sale ( “ afs ” ) , increased $ 203.8 million , or 548.9 % to $ 240.9 million at december 31 , 2019 , as compared to $ 37.1 million at december 31 , 2018. the increases in cash and cash equivalents and securities reflect the strong growth in deposits of $ 1.13 billion that exceeded growth in loans of $ 807.7 million . at december 31 , 2019 , $ 126.2 million of afs securities were pledged as collateral for certain deposits and were , therefore , considered encumbered as of december 31 , 2019. there were no securities pledged at december 31 , 2018. total deposits increased $ 1.13 billion , or 68.1 % , to $ 2.79 billion at december 31 , 2019 , as compared to $ 1.66 billion at december 31 , 2018. this was due to an increase of $ 838.3 million in interest-bearing deposits to $ 1.70 billion at december 31 , 2019 , as compared to $ 862.0 million at december 31 , 2018 , and an increase of $ 291.9 million in non-interest-bearing deposits to $ 1.09 billion at december 31 , 2019 , as compared to $ 798.6 million at december 31 , 2018. the increase in deposits was primarily due to growth in the bank 's bankruptcy account deposit vertical and property management accounts , as well as deposit growth in the bank 's retail network . federal home loan bank of new york ( “ fhlb ” ) advances decreased by $ 41.0 million , or 22.2 % , to $ 144.0 million at december 31 , 2019 , as compared to $ 185.0 million at december 31 , 2018 , as the deposit growth during the year was sufficient to support the bank 's loan growth and to reduce the level of borrowings . story_separator_special_tag the subordinated notes may be redeemed in whole or in part , at a redemption price equal to 100 % of the principal amount of the subordinated notes plus any accrued and unpaid interest . secured borrowings the bank has loan participation agreements with counterparties . the bank is generally the servicer for these loans . if the transfer of the participation interest does not qualify for sale treatment under current accounting guidance , the amount of the loan transferred is recorded as a secured borrowing . there were $ 43.0 million in secured borrowings as of december 31 , 2019 and none as of december 31 , 2018. discussion of the results of operations for the year ended december 31 , 2019 net income net income increased $ 4.5 million to $ 30.1 million for 2019 , as compared to $ 25.6 million for 2018. this increase was primarily due to a $ 26.4 million increase in net interest income , partially offset by a $ 1.5 million decrease in non-interest income , a $ 16.5 million increase in non-interest expense and a $ 2.7 million increase in income tax expense . 54 net interest income analysis net interest income is the difference between interest earned on assets and interest incurred on liabilities . the following table presents an analysis of net interest income by each major category of interest-earning assets and interest-bearing liabilities for the years ended december 31 , 2019 , 2018 and 2017 ( dollars in thousands ) . non-accrual loans were included in the computation of average balances and therefore have a zero yield . replace_table_token_17_th ( 1 ) amount includes deferred loan fees and non-performing loans . ( 2 ) determined by subtracting the weighted average cost of total interest-bearing liabilities from the weighted average yield on total interest-earning assets . ( 3 ) determined by dividing net interest income by total average interest-earning assets . 55 rate/volume analysis the following table presents the effects of changing rates and volumes on net interest income for the periods indicated . the rate column shows the effects attributable to changes in rate ( changes in rate multiplied by prior volume ) . the volume column shows the effects attributable to changes in volume ( changes in volume multiplied by prior rate ) . the net column represents the sum of the prior columns . for purposes of this table , changes attributable to both rate and volume , which can not be segregated , have been allocated proportionately , based on the changes due to rate and the changes due to volume ( dollars in thousands ) . replace_table_token_18_th net interest margin decreased 24 basis points to 3.46 % for 2019 from 3.70 % for 2018. total average interest-earning assets increased $ 898.0 million to $ 2.82 billion for 2019 , as compared to $ 1.93 billion for 2018. the total yield on average interest-earning assets increased 24 basis points to 4.60 % for 2019 as compared to 4.36 % for 2018. the cost of interest-bearing liabilities increased 43 basis points to 2.05 % for 2019 , as compared to 1.62 % for 2018. non-interest-bearing deposits accounted for 38 % of total funding in 2019 , as compared to 53 % in 2018. as a result , the ratio of average interest-earning assets to average interest-bearing liabilities decreased to 1.80x for 2019 , as compared to 2.45x for 2018. interest income interest income increased $ 45.8 million to $ 129.8 million for 2019 , as compared to $ 83.9 million for 2018. this increase was primarily due to increases of $ 39.8 million in interest income on loans , $ 3.0 million in interest on afs securities , and $ 2.7 million in interest on overnight deposits . the increase in interest income on loans was due to a $ 699.5 million increase in the average balance of loans to $ 2.30 billion and a 26 basis point increase in the average yield to 5.08 % for 2019 , as compared to an average balance of $ 1.60 billion and an average yield of 4.82 % on loans for 2018. the increase in the average balance of loans reflects the bank 's focus on expanding existing relationships and developing new ones . the growth in the loan portfolio was led by growth in the bank 's healthcare portfolio . new loans related to skilled nursing facilities amounted to $ 330.0 million , or 30 % of total loan production in 2019. the increase in interest on afs securities was due to an $ 113.7 million increase in average balance of afs securities to $ 142.1 million for 2019 , as compared to $ 28.5 million for 2018. additionally , the average yield on afs securities increased 39 basis points to 2.52 % , as compared to 2.13 % for those same periods . the increase in interest on overnight deposits was due to an increase of $ 80.1 million in the average balance of overnight funds to $ 348.7 million for 2019 , as compared to $ 268.6 million for 2018. the average yield on overnight deposits increased 34 basis points to 2.22 % , as compared to 1.88 % for those same periods . 56 interest expense interest expense increased $ 19.5 million to $ 32.2 million for 2019 , as compared to $ 12.7 million for 2018. this increase was due primarily to a $ 16.4 million increase in interest on deposits and a $ 3.0 million increase in interest on borrowings . the increase in interest expense on deposits was primarily due to a $ 669.7 million increase in the average balance of interest-bearing deposits to $ 1.36 billion for 2019 and a 56 basis point increase in the average cost of deposits to 1.88 % , as compared to an average balance of $ 688.3 million and an average cost of 1.32 % for 2018. the growth in the average balance of

key elements of our growth strategies and operating policies are to : ● acquire quality neighborhood and community shopping centers in the northeastern part of the united states with a concentration on properties in the metropolitan new york tri-state area outside of the city of new york , and unlock further value in these properties with selective enhancements to both the property and tenant mix , as well as improvements to management and leasing fundamentals . our hope is to grow our assets through acquisitions by 5 % to 10 % per year on a dollar value basis subject to the availability of acquisitions that meet our investment parameters ; ● selectively dispose of underperforming properties and re-deploy the proceeds into potentially higher performing properties that meet our acquisition criteria ; ● invest in our properties for the long term through regular maintenance , periodic renovations and capital improvements , enhancing their attractiveness to tenants and customers , as well as increasing their value ; ● leverage opportunities to increase gla at existing properties , through development of pad sites and reconfiguring of existing square footage , to meet the needs of existing or new tenants ; ● proactively manage our leasing strategy by aggressively marketing available gla , renewing existing leases with strong tenants , and replacing weak ones when necessary , with an eye toward securing leases that include regular or fixed contractual increases to minimum rents , replacing below-market-rent leases with increased market rents when possible and further improving the quality of our tenant mix at our shopping centers ; ● maintain strong working relationships with our tenants , particularly our anchor tenants ; ● maintain a conservative capital structure with low debt levels ; and ● control property operating and administrative costs . highlights of fiscal 2019 ; recent developments set forth below are highlights of our recent property acquisitions , other investments , property dispositions and financings : ● in december 2018 , we purchased the lakeview plaza shopping center for $ 12 million , exclusive of closing costs . lakeview is a 177,000 square foot grocery-anchored shopping center located in brewster , ny . when we purchased the property , we anticipated having to invest up to $ 8 million for capital improvements and for re-tenanting at the property . we purchased the property with available cash and a borrowing on our unsecured revolving credit facility ( “ facility ” ) . as of the date of this report , we have expended approximately $ 5.4 million of the $ 8 million anticipated additional investment . ● in march 2019 , we completed the refinancing of our $ 14.9 million mortgage secured by our darien , ct shopping center . the new mortgage principal balance is $ 25 million , and the note has a term of ten years and requires payments of principal and interest at the rate of libor plus 1.65 % . we also entered into an interest rate swap with the new lender , which converts the variable interest rate ( based on libor ) to a fixed rate of 4.815 % per annum . the fixed interest rate on the refinanced mortgage was 6.55 % . ● in march 2019 , we completed the refinancing of our existing $ 9.1 million mortgage secured by our newark , nj shopping center . the new mortgage principal balance is $ 10 million , and the note has a term of ten years and requires payments of principal and interest at the fixed rate of 4.63 % , which is a reduction from the fixed interest rate of 6.15 % on the refinanced mortgage . ● in march 2019 , we sold plaza 59 , a commercial real estate property located in spring valley , ny of which we owned a 50 % undivided tenancy-in-common interest , which we accounted for under the equity method of accounting . the total loss on sale was $ 924,000 , of which our 50 % share was $ 462,000. this resulted in our equity in net income from plaza 59 being reduced by $ 462,000. this loss has been added back to our funds from operations ( “ ffo ” ) as discussed below in this item 7 . ● in june 2019 , we placed a first mortgage on our brewster , ny property . the new mortgage has a principal balance of $ 12.0 million , has a term of 10 years and requires payments of principal and interest at the rate of libor plus 1.75 % . concurrent with entering into the mortgage , we also entered into an interest rate swap contract with the new lender , which converts the variable interest rate ( based on libor ) to a fixed rate of 3.6325 % per annum . ● in june 2019 , we sold our starbucks plaza shopping center located in monroe , ct as that property did not meet our stated investment objective of owning grocery or pharmacy-anchored shopping centers in the suburban communities that surround new york city . the property was acquired by us in 2007 , and we sold the property for $ 3.65 million and realized a gain on sale of $ 416,000. this gain is not included in our funds from operations ( “ ffo ” ) as discussed below in this item 7 . ● in june 2019 , we redeemed 4,150 units of ub new city i , llc ( “ new city ” ) from the noncontrolling member . the total cash price paid for the redemption was $ 91,000. as a result of the redemption , our ownership percentage of new city increased to 78.2 % from 75.3 % . ● in june 2019 and august 2019 , we redeemed 62,696 units of ub high ridge , llc ( “ high ridge ” ) from the noncontrolling member . the total cash price paid for the redemption was $ 1.4 story_separator_special_tag quantitative and qualitative disclosures about market risk ” included in this annual report on form 10-k for additional information on our interest rate risk . at october 31 , 2019 , we had no draws outstanding on our facility . we currently maintain a ratio of total debt to total assets below 29 % and a fixed charge coverage ratio of over 3.49 to 1 ( excluding preferred stock dividends ) , which we believe will allow us to obtain additional secured mortgage loans or other types of borrowings , if necessary . we own 53 properties in our consolidated portfolio that are not encumbered by secured mortgage debt . at october 31 , 2019 , we had borrowing capacity of $ 99 million on our facility . our facility includes financial covenants that limit , among other things , our ability to incur unsecured and secured indebtedness . see note 4 to our consolidated financial statements included in item 8 of this annual report on form 10-k for additional information on these and other restrictions . unsecured revolving credit facility and other property financings we have a $ 100 million unsecured revolving credit facility with a syndicate of three banks , bny mellon , bmo and wells fargo n.a . with the ability under certain conditions to additionally increase the capacity to $ 150 million , subject to lender approval . the maturity date of the facility is august 23 , 2020 with a one-year extension at our option . borrowings under the facility can be used for general corporate purposes and the issuance of up to $ 10 million of letters of credit . borrowings will bear interest at our option of eurodollar rate plus 1.35 % to 1.95 % or bny mellon 's prime lending rate plus 0.35 % to 0.95 % , based on consolidated indebtedness , as defined . we pay a quarterly commitment fee on the unused commitment amount of 0.15 % to 0.25 % per annum , based on outstanding borrowings during the year . as of october 31 , 2019 , we had no outstanding borrowings on the facility . our ability to borrow under the facility is subject to our compliance with the covenants and other restrictions on an ongoing basis . as discussed above , the principal financial covenants limit our level of secured and unsecured indebtedness and additionally require us to maintain certain debt coverage ratios . we were in compliance with such covenants at october 31 , 2019. during the year ended october 31 , 2019 , we borrowed $ 25.5 million on our facility for property acquisitions , to fund capital improvements to our properties and for general corporate purposes . for the year ended october 31 , 2019 , we repaid $ 54.1 million of borrowings on our facility with available cash , proceeds from mortgage financings , proceeds from investment property sales and proceeds from the issuance of a new series of preferred stock . see note 4 to our consolidated financial statements included in item 8 of this annual report on form 10-k for a further description of mortgage financing transactions in fiscal 2019. net cash flows from operating activities increase from fiscal 2018 to 2019 : the increase in operating cash flows was primarily due to our properties generating additional operating income in the fiscal year ended october 31 , 2019 when compared with the corresponding prior period . this additional operating income was predominantly from properties acquired in fiscal 2018 and fiscal 2019 offset by a decrease in lease termination income of $ 3.6 million in fiscal 2019 when compared with fiscal 2018. in fiscal 2018 one of our grocery store tenants paid us $ 3.7 million to terminate its lease early . increase from fiscal 2017 to 2018 : the increase in operating cash flows was primarily due to our properties generating additional operating income in the fiscal year ended october 31 , 2018 when compared with the corresponding prior period . this additional operating income was predominantly from properties acquired in fiscal 2017 and fiscal 2018 and lease termination income of $ 3.8 million received in fiscal 2018 versus $ 2.4 million in fiscal 2017. net cash flows from investing activities decrease from fiscal 2018 to 2019 : the decrease in net cash flows used in investing activities in fiscal 2019 when compared to fiscal 2018 was the result of selling our marketable security portfolio in the second quarter of fiscal 2019 and realizing proceeds on that sale of $ 6 million . the marketable securities were purchased in the first half of fiscal 2018. these transactions created an $ 11 million positive variance in cash flows from investing activities in fiscal 2019 when compared with the corresponding prior period . in addition , the decrease in cash flows used in investing activities was the result of one of our unconsolidated joint ventures selling a property it owned in the second quarter of fiscal 2019 and distributing $ 5 million in sales proceeds to us . in addition , this decrease in net cash used by investing activities was the result of us selling one property in fiscal 2019 that provided $ 3.4 million in sales proceeds versus having no property sales in the corresponding prior period . this decrease in net cash used by investing activities was partially offset by us acquiring one property for $ 12 million in fiscal 2019 versus purchasing three properties in fiscal 2018 that required $ 6.8 million in equity and expending $ 10.5 million more for improvements to properties and deferred charges in fiscal 2019 versus the corresponding prior period . increase from fiscal 2017 to 2018 : the increase in net cash flows used in investing activities in fiscal 2018 when compared to net cash provided by investing activities in fiscal 2017 was the result of our selling two properties in fiscal 2017 , which generated proceeds of $ 45.3 million .

cash generated : fiscal 2019 : ( total $ 178.9 million ) ● proceeds from revolving credit line borrowings in the amount of $ 25.5 million . ● proceeds from mortgage financing of $ 47 million . ● proceeds from the issuance of a new series of preferred stock totaling $ 106.2 million . fiscal 2018 : ( total $ 43.8 million ) ● proceeds from revolving credit line borrowings in the amount of $ 33.6 million . ● proceeds from mortgage financing of $ 10 million . fiscal 2017 : ( total $ 213.5 million ) ● proceeds from mortgage note payable in the amount of $ 50 million . ● proceeds from revolving credit line borrowings in the amount of $ 52 million . ● proceeds from the issuance of series h preferred stock in the amount of $ 111.3 million . cash used : fiscal 2019 : ( total $ 152.7 million ) ● dividends to shareholders in the amount of $ 55.4 million . ● repayment of mortgage notes payable in the amount of $ 33.4 million . ● repayment of revolving credit line borrowings in the amount of $ 54.1 million . ● additional acquisitions and distributions to noncontrolling interests of $ 9.5 million . fiscal 2018 : ( total $ 87.3 million ) ● dividends to shareholders in the amount of $ 53.9 million . ● repayment of mortgage notes payable in the amount of $ 24.1 million . ● repayment of revolving credit line borrowings in the amount of $ 9 million . fiscal 2017 : ( total $ 291.4 million ) ● dividends to shareholders in the amount of $ 55.6 million . ● repayment of mortgage notes payable in the amount of $ 43.7 million . ● repayment of revolving credit line borrowings in the amount of $ 56 million . ● redemption of preferred stock in the amount of $ 129.4 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 generated : fiscal 2019 : ( total $ 178.9 million ) ● proceeds from revolving credit line borrowings in the amount of $ 25.5 million . ● proceeds from mortgage financing of $ 47 million . ● proceeds from the issuance of a new series of preferred stock totaling $ 106.2 million . fiscal 2018 : ( total $ 43.8 million ) ● proceeds from revolving credit line borrowings in the amount of $ 33.6 million . ● proceeds from mortgage financing of $ 10 million . fiscal 2017 : ( total $ 213.5 million ) ● proceeds from mortgage note payable in the amount of $ 50 million . ● proceeds from revolving credit line borrowings in the amount of $ 52 million . ● proceeds from the issuance of series h preferred stock in the amount of $ 111.3 million . cash used : fiscal 2019 : ( total $ 152.7 million ) ● dividends to shareholders in the amount of $ 55.4 million . ● repayment of mortgage notes payable in the amount of $ 33.4 million . ● repayment of revolving credit line borrowings in the amount of $ 54.1 million . ● additional acquisitions and distributions to noncontrolling interests of $ 9.5 million . fiscal 2018 : ( total $ 87.3 million ) ● dividends to shareholders in the amount of $ 53.9 million . ● repayment of mortgage notes payable in the amount of $ 24.1 million . ● repayment of revolving credit line borrowings in the amount of $ 9 million . fiscal 2017 : ( total $ 291.4 million ) ● dividends to shareholders in the amount of $ 55.6 million . ● repayment of mortgage notes payable in the amount of $ 43.7 million . ● repayment of revolving credit line borrowings in the amount of $ 56 million . ● redemption of preferred stock in the amount of $ 129.4 million . ``` Suspicious Activity Report : key elements of our growth strategies and operating policies are to : ● acquire quality neighborhood and community shopping centers in the northeastern part of the united states with a concentration on properties in the metropolitan new york tri-state area outside of the city of new york , and unlock further value in these properties with selective enhancements to both the property and tenant mix , as well as improvements to management and leasing fundamentals . our hope is to grow our assets through acquisitions by 5 % to 10 % per year on a dollar value basis subject to the availability of acquisitions that meet our investment parameters ; ● selectively dispose of underperforming properties and re-deploy the proceeds into potentially higher performing properties that meet our acquisition criteria ; ● invest in our properties for the long term through regular maintenance , periodic renovations and capital improvements , enhancing their attractiveness to tenants and customers , as well as increasing their value ; ● leverage opportunities to increase gla at existing properties , through development of pad sites and reconfiguring of existing square footage , to meet the needs of existing or new tenants ; ● proactively manage our leasing strategy by aggressively marketing available gla , renewing existing leases with strong tenants , and replacing weak ones when necessary , with an eye toward securing leases that include regular or fixed contractual increases to minimum rents , replacing below-market-rent leases with increased market rents when possible and further improving the quality of our tenant mix at our shopping centers ; ● maintain strong working relationships with our tenants , particularly our anchor tenants ; ● maintain a conservative capital structure with low debt levels ; and ● control property operating and administrative costs . highlights of fiscal 2019 ; recent developments set forth below are highlights of our recent property acquisitions , other investments , property dispositions and financings : ● in december 2018 , we purchased the lakeview plaza shopping center for $ 12 million , exclusive of closing costs . lakeview is a 177,000 square foot grocery-anchored shopping center located in brewster , ny . when we purchased the property , we anticipated having to invest up to $ 8 million for capital improvements and for re-tenanting at the property . we purchased the property with available cash and a borrowing on our unsecured revolving credit facility ( “ facility ” ) . as of the date of this report , we have expended approximately $ 5.4 million of the $ 8 million anticipated additional investment . ● in march 2019 , we completed the refinancing of our $ 14.9 million mortgage secured by our darien , ct shopping center . the new mortgage principal balance is $ 25 million , and the note has a term of ten years and requires payments of principal and interest at the rate of libor plus 1.65 % . we also entered into an interest rate swap with the new lender , which converts the variable interest rate ( based on libor ) to a fixed rate of 4.815 % per annum . the fixed interest rate on the refinanced mortgage was 6.55 % . ● in march 2019 , we completed the refinancing of our existing $ 9.1 million mortgage secured by our newark , nj shopping center . the new mortgage principal balance is $ 10 million , and the note has a term of ten years and requires payments of principal and interest at the fixed rate of 4.63 % , which is a reduction from the fixed interest rate of 6.15 % on the refinanced mortgage . ● in march 2019 , we sold plaza 59 , a commercial real estate property located in spring valley , ny of which we owned a 50 % undivided tenancy-in-common interest , which we accounted for under the equity method of accounting . the total loss on sale was $ 924,000 , of which our 50 % share was $ 462,000. this resulted in our equity in net income from plaza 59 being reduced by $ 462,000. this loss has been added back to our funds from operations ( “ ffo ” ) as discussed below in this item 7 . ● in june 2019 , we placed a first mortgage on our brewster , ny property . the new mortgage has a principal balance of $ 12.0 million , has a term of 10 years and requires payments of principal and interest at the rate of libor plus 1.75 % . concurrent with entering into the mortgage , we also entered into an interest rate swap contract with the new lender , which converts the variable interest rate ( based on libor ) to a fixed rate of 3.6325 % per annum . ● in june 2019 , we sold our starbucks plaza shopping center located in monroe , ct as that property did not meet our stated investment objective of owning grocery or pharmacy-anchored shopping centers in the suburban communities that surround new york city . the property was acquired by us in 2007 , and we sold the property for $ 3.65 million and realized a gain on sale of $ 416,000. this gain is not included in our funds from operations ( “ ffo ” ) as discussed below in this item 7 . ● in june 2019 , we redeemed 4,150 units of ub new city i , llc ( “ new city ” ) from the noncontrolling member . the total cash price paid for the redemption was $ 91,000. as a result of the redemption , our ownership percentage of new city increased to 78.2 % from 75.3 % . ● in june 2019 and august 2019 , we redeemed 62,696 units of ub high ridge , llc ( “ high ridge ” ) from the noncontrolling member . the total cash price paid for the redemption was $ 1.4 story_separator_special_tag quantitative and qualitative disclosures about market risk ” included in this annual report on form 10-k for additional information on our interest rate risk . at october 31 , 2019 , we had no draws outstanding on our facility . we currently maintain a ratio of total debt to total assets below 29 % and a fixed charge coverage ratio of over 3.49 to 1 ( excluding preferred stock dividends ) , which we believe will allow us to obtain additional secured mortgage loans or other types of borrowings , if necessary . we own 53 properties in our consolidated portfolio that are not encumbered by secured mortgage debt . at october 31 , 2019 , we had borrowing capacity of $ 99 million on our facility . our facility includes financial covenants that limit , among other things , our ability to incur unsecured and secured indebtedness . see note 4 to our consolidated financial statements included in item 8 of this annual report on form 10-k for additional information on these and other restrictions . unsecured revolving credit facility and other property financings we have a $ 100 million unsecured revolving credit facility with a syndicate of three banks , bny mellon , bmo and wells fargo n.a . with the ability under certain conditions to additionally increase the capacity to $ 150 million , subject to lender approval . the maturity date of the facility is august 23 , 2020 with a one-year extension at our option . borrowings under the facility can be used for general corporate purposes and the issuance of up to $ 10 million of letters of credit . borrowings will bear interest at our option of eurodollar rate plus 1.35 % to 1.95 % or bny mellon 's prime lending rate plus 0.35 % to 0.95 % , based on consolidated indebtedness , as defined . we pay a quarterly commitment fee on the unused commitment amount of 0.15 % to 0.25 % per annum , based on outstanding borrowings during the year . as of october 31 , 2019 , we had no outstanding borrowings on the facility . our ability to borrow under the facility is subject to our compliance with the covenants and other restrictions on an ongoing basis . as discussed above , the principal financial covenants limit our level of secured and unsecured indebtedness and additionally require us to maintain certain debt coverage ratios . we were in compliance with such covenants at october 31 , 2019. during the year ended october 31 , 2019 , we borrowed $ 25.5 million on our facility for property acquisitions , to fund capital improvements to our properties and for general corporate purposes . for the year ended october 31 , 2019 , we repaid $ 54.1 million of borrowings on our facility with available cash , proceeds from mortgage financings , proceeds from investment property sales and proceeds from the issuance of a new series of preferred stock . see note 4 to our consolidated financial statements included in item 8 of this annual report on form 10-k for a further description of mortgage financing transactions in fiscal 2019. net cash flows from operating activities increase from fiscal 2018 to 2019 : the increase in operating cash flows was primarily due to our properties generating additional operating income in the fiscal year ended october 31 , 2019 when compared with the corresponding prior period . this additional operating income was predominantly from properties acquired in fiscal 2018 and fiscal 2019 offset by a decrease in lease termination income of $ 3.6 million in fiscal 2019 when compared with fiscal 2018. in fiscal 2018 one of our grocery store tenants paid us $ 3.7 million to terminate its lease early . increase from fiscal 2017 to 2018 : the increase in operating cash flows was primarily due to our properties generating additional operating income in the fiscal year ended october 31 , 2018 when compared with the corresponding prior period . this additional operating income was predominantly from properties acquired in fiscal 2017 and fiscal 2018 and lease termination income of $ 3.8 million received in fiscal 2018 versus $ 2.4 million in fiscal 2017. net cash flows from investing activities decrease from fiscal 2018 to 2019 : the decrease in net cash flows used in investing activities in fiscal 2019 when compared to fiscal 2018 was the result of selling our marketable security portfolio in the second quarter of fiscal 2019 and realizing proceeds on that sale of $ 6 million . the marketable securities were purchased in the first half of fiscal 2018. these transactions created an $ 11 million positive variance in cash flows from investing activities in fiscal 2019 when compared with the corresponding prior period . in addition , the decrease in cash flows used in investing activities was the result of one of our unconsolidated joint ventures selling a property it owned in the second quarter of fiscal 2019 and distributing $ 5 million in sales proceeds to us . in addition , this decrease in net cash used by investing activities was the result of us selling one property in fiscal 2019 that provided $ 3.4 million in sales proceeds versus having no property sales in the corresponding prior period . this decrease in net cash used by investing activities was partially offset by us acquiring one property for $ 12 million in fiscal 2019 versus purchasing three properties in fiscal 2018 that required $ 6.8 million in equity and expending $ 10.5 million more for improvements to properties and deferred charges in fiscal 2019 versus the corresponding prior period . increase from fiscal 2017 to 2018 : the increase in net cash flows used in investing activities in fiscal 2018 when compared to net cash provided by investing activities in fiscal 2017 was the result of our selling two properties in fiscal 2017 , which generated proceeds of $ 45.3 million .

replace_table_token_4_th the net effect of our foreign currency translations for the year ended december 31 , 2011 was a $ 0.6 million increase in revenue and a $ 0.5 million increase in operating expenses versus the year ended december 31 , 2010. the net effect of our foreign 17 currency translations for the year ended december 31 , 2010 was a $ 0.3 million decrease in revenue and a $ 16,000 decrease in operating expenses versus the year ended december 31 , 2009. results of operations the following table presents our consolidated statements of operations in comparative format . replace_table_token_5_th 18 the following table presents our consolidated statements of operations reflected as a percentage of total revenue . replace_table_token_6_th revenue revenue is comprised of license fees and services and customer support . license fees and services revenue represent the fees we receive from the licensing of our software products and those services directly related to the delivery of the licensed product as well as integration services and time and materials work . customer support revenue includes annual support fees , recurring maintenance fees , minor product upgrades and warranty fees . warranty fees are typically bundled with a license sale and the related revenue , based on vendor specific objective evidence ( “vsoe” ) , is deferred and recognized ratably over the warranty period . license fees and services license fees and services revenue decreased 33 % , or $ 4.9 million to $ 9.8 million for the year ended december 31 , 2011 compared to $ 14.6 million for the year ended december 31 , 2010. the decrease is due to declines in dynamic sim allocation ( “dsa” ) , tertio service activation ( “tsa” ) and billing mediation revenues of $ 2.8 million , $ 1.6 million and $ 0.5 million , respectively . license fees and services revenue decreased 16 % , or $ 2.9 million to $ 14.6 million for the year ended december 31 , 2010 compared to $ 17.5 million for the year ended december 31 , 2009. this decrease is primarily due to a decline in tsa 19 revenue of $ 4.4 million , partially offset by increased revenue from our dsa solution of $ 1.1 million and billing mediation revenue of $ 0.4 million . customer support customer support revenue increased 13 % , or $ 1.1 million , to $ 9.3 million for the year ended december 31 , 2011 from $ 8.2 million for the year ended december 31 , 2010. the increase in customer support revenue was primarily the result of the increase in our dsa installed customer base as well as increased revenue from tsa . customer support revenue increased 12 % , or $ 0.9 million , to $ 8.2 million for the year ended december 31 , 2010 from $ 7.3 million for the year ended december 31 , 2009. the increase in customer support revenue was primarily the result of the increase in our dsa installed customer base as well as increased revenue from tsa . costs of revenue , excluding depreciation and amortization costs of revenue consist primarily of personnel costs , facilities costs , the costs of third-party software and all other direct costs associated with these personnel . costs of revenue , excluding depreciation and amortization were $ 7.4 million , $ 8.6 million and $ 8.4 million for the years ended december 31 , 2011 , 2010 and 2009 , respectively . costs of license fees and services , excluding depreciation and amortization costs of revenue for license fees and services decreased 14 % , or $ 0.8 million , to $ 5.2 million for the year ended december 31 , 2011 from $ 6.0 million for the year ended december 31 , 2010. the decrease in costs was primarily the result of reduced staff , subcontractors and third party software expense , all a result of lower revenue . as a percentage of license fees and services revenue , costs of license fees and services , excluding depreciation and amortization , increased to 53 % for the year ended december 31 , 2011 from 41 % for the year ended december 31 , 2010. the increase in costs as a percentage of licenses fees and services revenue is primarily related to lower revenue during the period . costs of revenue for license fees and services increased 9 % , or $ 0.5 million , to $ 6.0 million for the year ended december 31 , 2010 from $ 5.5 million for the year ended december 31 , 2009. as a percentage of license fees and services revenue , costs of license fees and services , excluding depreciation and amortization , increased to 41 % for the year ended december 31 , 2010 from 31 % for the year ended december 31 , 2009.the increase in costs and as a percentage of license fees and services revenue was primarily the result of increased effort and on site presence on projects as well as lower revenue during the period . costs of customer support , excluding depreciation and amortization costs of revenue for customer support decreased 14 % , or $ 0.4 million , to $ 2.2 million for the year ended december 31 , 2011 from $ 2.6 million for the year ended december 31 , 2010. the decrease in costs is related to fewer hours spent on support projects . as a percentage of customer support revenue , costs of customer support revenue , excluding depreciation and amortization , decreased to 24 % for the year ended december 31 , 2011 from 32 % for the year ended december 31 , 2010. the decrease in costs as a percentage of customer support revenue is due primarily to the aforementioned decrease in costs as well as increased revenue during the period . story_separator_special_tag if the arrangement includes a customer acceptance provision , the hours to complete the acceptance testing are included in the total estimated direct labor hours ; therefore , the related revenue is recognized as the acceptance testing is performed . revenue is not recognized in full until the customer has provided proof of acceptance on the arrangement . generally , our contracts are accounted for individually . however , when certain criteria are met , it may be necessary to account for two or more contracts as one to reflect the substance of the group of contracts . we record amounts billed in advance of services being performed as unearned revenue . unbilled work-in-progress represents revenue earned but not yet billable under the terms of the fixed-price contracts . all such amounts are expected to be billed and collected within 12 months . we may encounter budget and schedule overruns on fixed-price contracts caused by increased labor or overhead costs . we make adjustments to cost estimates in the period in which the facts requiring such revisions become known . we record estimated losses , if any , in the period in which current estimates of total contract revenue and contract costs indicate a loss . if revisions to cost estimates are obtained after the balance sheet date but before the issuance of the interim or annual financial statements , we make adjustments to the interim or annual financial statements accordingly . in arrangements where the services are not essential to the functionality of the delivered software , we recognize license revenue when a license agreement has been signed , delivery and acceptance have occurred , the fee is fixed or determinable and collectability is reasonably assured . where applicable , we unbundle and record as revenue fees from multiple element arrangements as 24 the elements are delivered to the extent that vsoe of fair value of the undelivered elements exist . if vsoe for the undelivered elements does not exist , we defer fees from such arrangements until the earlier of the date that vsoe does exist on the undelivered elements or all of the elements have been delivered . we recognize revenue from fixed-price service contracts using the proportional performance method of accounting , which is similar to the percentage-of-completion method described above . we recognize revenue from professional services provided pursuant to time-and-materials based contracts and training services as the services are performed , as that is when our obligation to our customers under such arrangements is fulfilled . we recognize customer support , including maintenance revenue , ratably over the service contract period . when maintenance is bundled with the original license fee arrangement , its fair value , based upon vsoe , is deferred and recognized during the periods when services are provided . allowance for doubtful accounts we make judgments related to our ability to collect outstanding accounts receivable . we provide allowances for receivables when their collection becomes doubtful by recording an expense . we determine the allowance based on our assessment of the realization of receivables using historical information and current economic trends , including assessing the probability of collection from customers . if the financial condition of our customers were to deteriorate , resulting in an impairment of their ability to make payments owed to us , an increase in the allowance for doubtful accounts would be required . we evaluate the adequacy of the allowance regularly and make adjustments accordingly . adjustments to the allowance for doubtful accounts could materially affect our results of operations . income taxes significant judgment is required in determining our provision for income taxes . we assess the likelihood that our deferred tax asset will be recovered from future taxable income , and to the extent we believe that recovery is not likely , we establish a valuation allowance . we consider future taxable income projections , historical results and ongoing tax planning strategies in assessing the recoverability of deferred tax assets . however , adjustments could be required in the future if we determine that the amount to be realized is less or greater than the amount that we recorded . such adjustments , if any , could have a material impact on our results of our operations . we use a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return . for those benefits to be recognized , a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities . the company uses the incremental approach to recognizing excess tax benefits associated with equity compensation . as of december 31 , 2011 and 2010 , we had no liability for unrecognized tax benefits . we do not believe there will be any material changes to our unrecognized tax positions over the next twelve months . goodwill goodwill is the excess of acquisition cost of an acquired entity over the fair value of the identifiable net assets acquired . goodwill is not amortized , but tested for impairment annually or whenever indicators of impairment exist . these indicators may include a significant change in the business climate , legal factors , operating performance indicators , competition , sale or disposition of a significant portion of the business or other factors . application of the goodwill impairment test requires judgment , including the identification of reporting units , assignment of assets and liabilities to reporting units , assignment of goodwill to reporting units , and determination of the fair value of each reporting unit . we performed our annual goodwill impairment test as of july 31 , 2011 , which we had $ 16.9 million of goodwill included the following reporting units , license and services ( “l & s” ) — uk of $ 7.6 million and customer support ( “cs” ) — uk of $ 9.3 million . the fair value of each

liquidity and capital resources we have historically financed operations through cash flows from operations as well as debt and equity transactions . at december 31 , 2011 , our principal sources of liquidity were $ 34.3 million in cash and cash equivalents and $ 4.5 million in contract receivables , net of allowances . net cash provided by operating activities for the year ended december 31 , 2011 , 2010 and 2009 was $ 4.9 million , $ 5.8 million and $ 3.6 million , respectively . the decrease in cash provided by operating activities for the year ended december 31 , 2011 was due to decrease in accounts payable and accrued liabilities and an increase in prepaid and other assets , partially offset by an increase in contract receivables . net cash provided by ( used in ) continuing operating activities was ( $ 1.4 ) million , $ 14,000 and ( $ 1.7 ) million for the years ended december 31 , 2011 , 2010 and 2009 , respectively . the decrease in cash provided by continuing operating activities for the year ended december 31 , 2011 was primarily due to a decrease in accounts payable and accrued liabilities and an increase in prepaid and other assets , partially offset by an increase in contract receivables . the increase in cash provided by operating activities during the year ended december 31 , 2010 compared to 2009 was related to optional pre-payments of accrued interest on our subordinated debt , which is classified as other long-term obligations and the change in the timing of our unearned revenue billings .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources we have historically financed operations through cash flows from operations as well as debt and equity transactions . at december 31 , 2011 , our principal sources of liquidity were $ 34.3 million in cash and cash equivalents and $ 4.5 million in contract receivables , net of allowances . net cash provided by operating activities for the year ended december 31 , 2011 , 2010 and 2009 was $ 4.9 million , $ 5.8 million and $ 3.6 million , respectively . the decrease in cash provided by operating activities for the year ended december 31 , 2011 was due to decrease in accounts payable and accrued liabilities and an increase in prepaid and other assets , partially offset by an increase in contract receivables . net cash provided by ( used in ) continuing operating activities was ( $ 1.4 ) million , $ 14,000 and ( $ 1.7 ) million for the years ended december 31 , 2011 , 2010 and 2009 , respectively . the decrease in cash provided by continuing operating activities for the year ended december 31 , 2011 was primarily due to a decrease in accounts payable and accrued liabilities and an increase in prepaid and other assets , partially offset by an increase in contract receivables . the increase in cash provided by operating activities during the year ended december 31 , 2010 compared to 2009 was related to optional pre-payments of accrued interest on our subordinated debt , which is classified as other long-term obligations and the change in the timing of our unearned revenue billings . ``` Suspicious Activity Report : replace_table_token_4_th the net effect of our foreign currency translations for the year ended december 31 , 2011 was a $ 0.6 million increase in revenue and a $ 0.5 million increase in operating expenses versus the year ended december 31 , 2010. the net effect of our foreign 17 currency translations for the year ended december 31 , 2010 was a $ 0.3 million decrease in revenue and a $ 16,000 decrease in operating expenses versus the year ended december 31 , 2009. results of operations the following table presents our consolidated statements of operations in comparative format . replace_table_token_5_th 18 the following table presents our consolidated statements of operations reflected as a percentage of total revenue . replace_table_token_6_th revenue revenue is comprised of license fees and services and customer support . license fees and services revenue represent the fees we receive from the licensing of our software products and those services directly related to the delivery of the licensed product as well as integration services and time and materials work . customer support revenue includes annual support fees , recurring maintenance fees , minor product upgrades and warranty fees . warranty fees are typically bundled with a license sale and the related revenue , based on vendor specific objective evidence ( “vsoe” ) , is deferred and recognized ratably over the warranty period . license fees and services license fees and services revenue decreased 33 % , or $ 4.9 million to $ 9.8 million for the year ended december 31 , 2011 compared to $ 14.6 million for the year ended december 31 , 2010. the decrease is due to declines in dynamic sim allocation ( “dsa” ) , tertio service activation ( “tsa” ) and billing mediation revenues of $ 2.8 million , $ 1.6 million and $ 0.5 million , respectively . license fees and services revenue decreased 16 % , or $ 2.9 million to $ 14.6 million for the year ended december 31 , 2010 compared to $ 17.5 million for the year ended december 31 , 2009. this decrease is primarily due to a decline in tsa 19 revenue of $ 4.4 million , partially offset by increased revenue from our dsa solution of $ 1.1 million and billing mediation revenue of $ 0.4 million . customer support customer support revenue increased 13 % , or $ 1.1 million , to $ 9.3 million for the year ended december 31 , 2011 from $ 8.2 million for the year ended december 31 , 2010. the increase in customer support revenue was primarily the result of the increase in our dsa installed customer base as well as increased revenue from tsa . customer support revenue increased 12 % , or $ 0.9 million , to $ 8.2 million for the year ended december 31 , 2010 from $ 7.3 million for the year ended december 31 , 2009. the increase in customer support revenue was primarily the result of the increase in our dsa installed customer base as well as increased revenue from tsa . costs of revenue , excluding depreciation and amortization costs of revenue consist primarily of personnel costs , facilities costs , the costs of third-party software and all other direct costs associated with these personnel . costs of revenue , excluding depreciation and amortization were $ 7.4 million , $ 8.6 million and $ 8.4 million for the years ended december 31 , 2011 , 2010 and 2009 , respectively . costs of license fees and services , excluding depreciation and amortization costs of revenue for license fees and services decreased 14 % , or $ 0.8 million , to $ 5.2 million for the year ended december 31 , 2011 from $ 6.0 million for the year ended december 31 , 2010. the decrease in costs was primarily the result of reduced staff , subcontractors and third party software expense , all a result of lower revenue . as a percentage of license fees and services revenue , costs of license fees and services , excluding depreciation and amortization , increased to 53 % for the year ended december 31 , 2011 from 41 % for the year ended december 31 , 2010. the increase in costs as a percentage of licenses fees and services revenue is primarily related to lower revenue during the period . costs of revenue for license fees and services increased 9 % , or $ 0.5 million , to $ 6.0 million for the year ended december 31 , 2010 from $ 5.5 million for the year ended december 31 , 2009. as a percentage of license fees and services revenue , costs of license fees and services , excluding depreciation and amortization , increased to 41 % for the year ended december 31 , 2010 from 31 % for the year ended december 31 , 2009.the increase in costs and as a percentage of license fees and services revenue was primarily the result of increased effort and on site presence on projects as well as lower revenue during the period . costs of customer support , excluding depreciation and amortization costs of revenue for customer support decreased 14 % , or $ 0.4 million , to $ 2.2 million for the year ended december 31 , 2011 from $ 2.6 million for the year ended december 31 , 2010. the decrease in costs is related to fewer hours spent on support projects . as a percentage of customer support revenue , costs of customer support revenue , excluding depreciation and amortization , decreased to 24 % for the year ended december 31 , 2011 from 32 % for the year ended december 31 , 2010. the decrease in costs as a percentage of customer support revenue is due primarily to the aforementioned decrease in costs as well as increased revenue during the period . story_separator_special_tag if the arrangement includes a customer acceptance provision , the hours to complete the acceptance testing are included in the total estimated direct labor hours ; therefore , the related revenue is recognized as the acceptance testing is performed . revenue is not recognized in full until the customer has provided proof of acceptance on the arrangement . generally , our contracts are accounted for individually . however , when certain criteria are met , it may be necessary to account for two or more contracts as one to reflect the substance of the group of contracts . we record amounts billed in advance of services being performed as unearned revenue . unbilled work-in-progress represents revenue earned but not yet billable under the terms of the fixed-price contracts . all such amounts are expected to be billed and collected within 12 months . we may encounter budget and schedule overruns on fixed-price contracts caused by increased labor or overhead costs . we make adjustments to cost estimates in the period in which the facts requiring such revisions become known . we record estimated losses , if any , in the period in which current estimates of total contract revenue and contract costs indicate a loss . if revisions to cost estimates are obtained after the balance sheet date but before the issuance of the interim or annual financial statements , we make adjustments to the interim or annual financial statements accordingly . in arrangements where the services are not essential to the functionality of the delivered software , we recognize license revenue when a license agreement has been signed , delivery and acceptance have occurred , the fee is fixed or determinable and collectability is reasonably assured . where applicable , we unbundle and record as revenue fees from multiple element arrangements as 24 the elements are delivered to the extent that vsoe of fair value of the undelivered elements exist . if vsoe for the undelivered elements does not exist , we defer fees from such arrangements until the earlier of the date that vsoe does exist on the undelivered elements or all of the elements have been delivered . we recognize revenue from fixed-price service contracts using the proportional performance method of accounting , which is similar to the percentage-of-completion method described above . we recognize revenue from professional services provided pursuant to time-and-materials based contracts and training services as the services are performed , as that is when our obligation to our customers under such arrangements is fulfilled . we recognize customer support , including maintenance revenue , ratably over the service contract period . when maintenance is bundled with the original license fee arrangement , its fair value , based upon vsoe , is deferred and recognized during the periods when services are provided . allowance for doubtful accounts we make judgments related to our ability to collect outstanding accounts receivable . we provide allowances for receivables when their collection becomes doubtful by recording an expense . we determine the allowance based on our assessment of the realization of receivables using historical information and current economic trends , including assessing the probability of collection from customers . if the financial condition of our customers were to deteriorate , resulting in an impairment of their ability to make payments owed to us , an increase in the allowance for doubtful accounts would be required . we evaluate the adequacy of the allowance regularly and make adjustments accordingly . adjustments to the allowance for doubtful accounts could materially affect our results of operations . income taxes significant judgment is required in determining our provision for income taxes . we assess the likelihood that our deferred tax asset will be recovered from future taxable income , and to the extent we believe that recovery is not likely , we establish a valuation allowance . we consider future taxable income projections , historical results and ongoing tax planning strategies in assessing the recoverability of deferred tax assets . however , adjustments could be required in the future if we determine that the amount to be realized is less or greater than the amount that we recorded . such adjustments , if any , could have a material impact on our results of our operations . we use a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return . for those benefits to be recognized , a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities . the company uses the incremental approach to recognizing excess tax benefits associated with equity compensation . as of december 31 , 2011 and 2010 , we had no liability for unrecognized tax benefits . we do not believe there will be any material changes to our unrecognized tax positions over the next twelve months . goodwill goodwill is the excess of acquisition cost of an acquired entity over the fair value of the identifiable net assets acquired . goodwill is not amortized , but tested for impairment annually or whenever indicators of impairment exist . these indicators may include a significant change in the business climate , legal factors , operating performance indicators , competition , sale or disposition of a significant portion of the business or other factors . application of the goodwill impairment test requires judgment , including the identification of reporting units , assignment of assets and liabilities to reporting units , assignment of goodwill to reporting units , and determination of the fair value of each reporting unit . we performed our annual goodwill impairment test as of july 31 , 2011 , which we had $ 16.9 million of goodwill included the following reporting units , license and services ( “l & s” ) — uk of $ 7.6 million and customer support ( “cs” ) — uk of $ 9.3 million . the fair value of each

pursuant to the fgl merger agreement , except for certain shares specified in the fgl merger agreement , each issued and outstanding share of common stock of fgl was automatically cancelled and converted into the right to receive $ 31.10 in cash . the total consideration received by hrg as a result of the completion of the fgl merger was $ 1,488.3 million . in addition , pursuant to a share purchase agreement , on november 30 , 2017 , front street re ( delaware ) ltd. sold to the cf entities all of the issued and outstanding shares of front street for $ 65.0 million , which was subject to reduction for customary transaction expenses . refer to note 3 – divestitures in notes to the consolidated financial statements , included elsewhere in this annual report , for further discussion pertaining to the divestitures . spectrum merger on july 13 , 2018 , sbh ( formerly hrg ) closed its agreement and plan of merger with its majority owned subsidiary , spectrum brands legacy , inc. ( “ spectrum legacy ” , formerly spectrum brands holdings , inc. ) . sbh incurred significant transaction costs associated with the spectrum merger that impacted the comparability of the consolidated results of operations . effective as of the closing date of the spectrum merger , management and control of the organization was assumed by its majority-owned subsidiary , spectrum , and the company continues to operate as the consumer products company that was principally conducted by its majority owned subsidiary . see note 4 – acquisitions in notes to the consolidated financial statements , included elsewhere in this annual report , for more information on the spectrum merger and associated transaction costs . additionally , as a result of the spectrum merger , hrg and spectrum legacy joined in the filing of u.s. consolidated tax returns starting july 13 , 2018. the form of the spectrum merger allowed for the hrg capital and net operating loss carryforwards to be used to offset future income and the u.s. tax gain on the sale of the gbl business to energizer . as a result , sbh released $ 365.3 million of valuation allowance on its net deferred tax assets since it became more likely than not that the assets will be realized . restructuring activity we continually seek to improve our operational efficiency , match our manufacturing capacity and product costs to market demand and better utilize our manufacturing resources . we have undertaken various initiatives to reduce manufacturing and operating costs . the most significant of these initiatives are :  global productivity improvement plan , which began at the start of the year ended september 30 , 2019 and is anticipated to be completed by september 2022 .  hhi distribution center consolidation , which began during the second quarter of the year ended september 30 , 2017 and was closed in december 2018 .  gpc rightsizing initiative which began during the second quarter of the year ended september 30 , 2017 and was closed in september 2018. see note 5 - restructuring and related charges in the notes to the consolidated financial statements , included elsewhere within this annual report , for additional detail regarding restructuring and related activity . ‎ 31 refinancing activity the following recent financing activity has a significant impact on the comparability of financial results on the consolidated financial statements .  during the year ended september 30 , 2019 , the company ( 1 ) repaid $ 452.6 million of its 6.625 % senior unsecured notes with an outstanding principal of $ 570.0 million , consisting of a repayment of $ 285.0 million on march 31 , 2019 plus a repayment of $ 167.6 million on september 24 , 2019 using proceeds from the gac divestitures ; ( 2 ) issued $ 300.0 million of 5.00 % senior unsecured notes due september 2029 ; ( 3 ) repaid its 7.75 % senior unsecured notes in full on january 30 , 2019 using proceeds received from the gbl and gac divestitures ; ( 4 ) repaid its usd term loan in full on january 4 , 2019 using proceeds received from the divestiture of gbl ; and ( 5 ) repaid its cad term loan in full on october 31 , 2018 .  during the year ended september 30 , 2018 , hrg ( 1 ) paid off $ 92.0 million aggregate principal amount of the hgi energy notes ; ( 2 ) redeemed all $ 864.4 million outstanding principal amount of its 7.875 % senior secured notes due 2019 at a redemption price equal to 100 % of the principal amount , plus accrued and unpaid interest to the redemption rate ; and ( 3 ) paid off $ 50.0 million aggregate principal amount of a hgi funding loan due july 13 , 2018 .  during the year ended september 30 , 2017 , spectrum legacy refinanced a portion of its debt to extend maturities and reduce borrowing costs including entering into various amendments to the credit agreement under its term loans resulting in an increase to the usd term loan , repayment of the euro term loan , increase in the capacity of the revolver facility and changes to the applicable variable interest rates . see note 12 - debt in the notes to the consolidated financial statements , included elsewhere within this annual report , for additional detail regarding debt . safety recall on june 10 , 2017 , the company initiated a voluntary safety recall of various rawhide chew products for dogs sold by the company 's gpc segment due to possible chemical contamination . story_separator_special_tag this expense was partially offset by a $ 48.0 million tax benefit from recalculating our liability for the one-time deemed mandatory repatriation of post-1986 undistributed foreign subsidiary earnings and profits after application of the regulations and the final calculations for its fiscal 2018 federal income tax returns , including our ability to offset the liability in part by foreign tax credits . the income recognized as a result of the regulations , the u.s. gain on the sale of the battery business , and the u.s. operating results for the year ended september 30 , 2019 have made it more likely than not that we can use certain federal net operating losses subject to ownership change limitations . we therefore released $ 36.7 million of valuation allowance related to these net operating losses during the year ended september 30 , 2019. our effective tax rate for the year ended september 30 , 2018 was significantly impacted by the tax reform act and the release of valuation allowances over capital and net operating loss carryforwards due to completion of the spectrum merger . the tax reform act permanently reduces the u.s. corporate income tax rate from a maximum of 35 % to a flat 21 % rate , effective january 1 , 2018. we released $ 371.7 million of valuation allowance on its u.s. federal net deferred tax assets since it was more likely than not that the assets will be realized and recorded valuation allowance of $ 6.1 million on non-u.s. net deferred tax assets . as a result of the tax reform act , the company recorded $ 166.7 million of tax benefit for restatement of u.s. deferred tax assets and liabilities and a provisional $ 73.1 million of income tax expense for the one-time deemed mandatory repatriation . our effective tax rate for the year ended september 30 , 2017 differs from the u.s federal statutory rate of 35 % due to income earned outside the u.s. that is subject to statutory rates lower than 35 % . additionally , we recognized a $ 36.1 million tax benefit for changes in our assessment over our ability to effectively repatriate tax-free non-u.s. earnings upon which liabilities were previously recorded , and a $ 9.3 million tax benefit for the recognition of additional federal and state tax credits . we also recorded a $ 14.7 million valuation allowance on additional state net operating losses that more likely than not will expire unused . see note 16 – income taxes in notes to the consolidated financial statements , included elsewhere within this annual report for additional detail . income from discontinued operations . discontinued operations includes the results of operations , financial position and cash flows for the following businesses that are reported separately as discontinued operations : ( 1 ) gbl that was classified as held for sale effective december 29 , 2017 and reported as a component of discontinued operations for all periods presented through the close of sale on january 2 , 2019 ; ( 2 ) gac that was classified as held for sale effective october 29 , 2018 , subsequent to the balance sheet date of september 30 , 2018 , and retroactively recasted as a component of discontinued operations for all periods presented through the close of sale on january 28 , 2019 ; and ( 3 ) hrg insurance operations , for all periods presented through the close of sale on november 30 , 2017. see note 3 – divestitures in notes to the consolidated financial statements , included elsewhere in this annual report , for more information on the divestitures and the assets and liabilities classified as held for sale .  income from discontinued operations , net of tax , for the year ended september 30 , 2019 increased $ 214.9 million due to gbl income of $ 974.9 million , which includes recognition of $ 989.8 million of pre-tax gain on the sale of gbl operations , net of reclassified accumulated other comprehensive loss realized of $ 18.5 million ; offset by a loss on sale of gac discontinued operations primarily attributable to a write-down of net assets to fair value of $ 115.7 million , net reclassified accumulated other comprehensive gain realized of $ 3.3 million ; net tax expense of $ 199.3 million associated with the gbl and gac divestitures ; plus $ 476.4 million of pre-tax gain on fgl discontinued operations in the prior year primarily attributable to the recognition of $ 445.9 million to reclassify accumulated other comprehensive income related to fgl , that was previously included in equity ; offset by the recognition of a write-down on net assets of $ 14.2 million upon completion of sale . income from discontinued operations , net of tax , for the year ended september 30 , 2018 increased $ 155.7 million , or 53.8 % , due to the decrease in income from gbl discontinued operations of $ 62.7 million , decrease in income from gac discontinued operations of $ 126.4 million and increase in income from fgl discontinued operations of $ 189.3 million . the decrease in income from gbl discontinued operations is primarily attributable to incremental transaction related costs that was recognized for the planned divestitures , increased operating expenses for selling and marketing activities and increased interest expense allocated to discontinued operations from increased variable rates . the decrease in income from gac discontinued operations is primarily attributable the recognition of a goodwill impairment of $ 92.5 million , operating inefficiencies driven by restructuring initiatives to consolidated domestic operations , new product development and marketing costs , higher material costs and unfavorable product mix . the increase in income from fgl is primarily attributable to the recognition of $ 445.9 million to reclassify accumulated other comprehensive income related to fgl , that was previously included in equity ; offset by the recognition of a write-down on net assets of $ 14.2 million on fgl and

cash flows from financing activities cash flows used by financing activities for sbh continuing operations increased $ 1,316.7 million for the year ended september 30 , 2019 due to the incremental debt repayment , treasury share repurchase activity and dividend payments to sbh shareholders after completion of the spectrum merger partially offset by new debt issuance . cash flows used by financing activities for sbh continuing operations increased $ 1,117.3 million for the year ended september 30 , 2018 due to reduced proceeds from debt , incremental debt repayment , and dividend payments to sbh shareholders after completion of the spectrum merger . cash flows provided by financing activities for sb/rh continuing operations decreased $ 2,783.5 million for the year ended september 30 , 2019 due to the incremental debt repayment , incremental dividend payments to parent company , partially offset by new debt issuance . cash flows provided by financing activities for sb/rh continuing operations increased $ 422.2 million for the year ended september 30 , 2018 due to incremental proceeds from the issuance of debt with its parent company , lower payment on debt ; offset by increased dividend payments to parent company . ‎ 43 debt during the year ended september 30 , 2019 , the company made $ 2,649.9 million of payment on debts , including the redemption of the usd term loans of $ 1,231.7 million , 7.75 % notes of $ 890.0 million with a premium on extinguishment of $ 26.4 million , partial paydown of 6.625 % notes of $ 452.6 million with payment of early extinguishment of $ 9.2 million , cad term loan of $ 32.6 million , and other debt payments of $ 16.6 million . during the year ended september 30 , 2019 , the company recognized incremental proceed from the issuance of debt due to the issuance of $ 300 million of 5.00 % senior notes . during the year ended september 30 , 2018 , the company recognized reduced proceeds from the issuance of debt financing of $ 296.0 million primarily due to the issuance of usd term loan debt and hgi funding 2017 loan 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. ```cash flows from financing activities cash flows used by financing activities for sbh continuing operations increased $ 1,316.7 million for the year ended september 30 , 2019 due to the incremental debt repayment , treasury share repurchase activity and dividend payments to sbh shareholders after completion of the spectrum merger partially offset by new debt issuance . cash flows used by financing activities for sbh continuing operations increased $ 1,117.3 million for the year ended september 30 , 2018 due to reduced proceeds from debt , incremental debt repayment , and dividend payments to sbh shareholders after completion of the spectrum merger . cash flows provided by financing activities for sb/rh continuing operations decreased $ 2,783.5 million for the year ended september 30 , 2019 due to the incremental debt repayment , incremental dividend payments to parent company , partially offset by new debt issuance . cash flows provided by financing activities for sb/rh continuing operations increased $ 422.2 million for the year ended september 30 , 2018 due to incremental proceeds from the issuance of debt with its parent company , lower payment on debt ; offset by increased dividend payments to parent company . ‎ 43 debt during the year ended september 30 , 2019 , the company made $ 2,649.9 million of payment on debts , including the redemption of the usd term loans of $ 1,231.7 million , 7.75 % notes of $ 890.0 million with a premium on extinguishment of $ 26.4 million , partial paydown of 6.625 % notes of $ 452.6 million with payment of early extinguishment of $ 9.2 million , cad term loan of $ 32.6 million , and other debt payments of $ 16.6 million . during the year ended september 30 , 2019 , the company recognized incremental proceed from the issuance of debt due to the issuance of $ 300 million of 5.00 % senior notes . during the year ended september 30 , 2018 , the company recognized reduced proceeds from the issuance of debt financing of $ 296.0 million primarily due to the issuance of usd term loan debt and hgi funding 2017 loan in the prior year . ``` Suspicious Activity Report : pursuant to the fgl merger agreement , except for certain shares specified in the fgl merger agreement , each issued and outstanding share of common stock of fgl was automatically cancelled and converted into the right to receive $ 31.10 in cash . the total consideration received by hrg as a result of the completion of the fgl merger was $ 1,488.3 million . in addition , pursuant to a share purchase agreement , on november 30 , 2017 , front street re ( delaware ) ltd. sold to the cf entities all of the issued and outstanding shares of front street for $ 65.0 million , which was subject to reduction for customary transaction expenses . refer to note 3 – divestitures in notes to the consolidated financial statements , included elsewhere in this annual report , for further discussion pertaining to the divestitures . spectrum merger on july 13 , 2018 , sbh ( formerly hrg ) closed its agreement and plan of merger with its majority owned subsidiary , spectrum brands legacy , inc. ( “ spectrum legacy ” , formerly spectrum brands holdings , inc. ) . sbh incurred significant transaction costs associated with the spectrum merger that impacted the comparability of the consolidated results of operations . effective as of the closing date of the spectrum merger , management and control of the organization was assumed by its majority-owned subsidiary , spectrum , and the company continues to operate as the consumer products company that was principally conducted by its majority owned subsidiary . see note 4 – acquisitions in notes to the consolidated financial statements , included elsewhere in this annual report , for more information on the spectrum merger and associated transaction costs . additionally , as a result of the spectrum merger , hrg and spectrum legacy joined in the filing of u.s. consolidated tax returns starting july 13 , 2018. the form of the spectrum merger allowed for the hrg capital and net operating loss carryforwards to be used to offset future income and the u.s. tax gain on the sale of the gbl business to energizer . as a result , sbh released $ 365.3 million of valuation allowance on its net deferred tax assets since it became more likely than not that the assets will be realized . restructuring activity we continually seek to improve our operational efficiency , match our manufacturing capacity and product costs to market demand and better utilize our manufacturing resources . we have undertaken various initiatives to reduce manufacturing and operating costs . the most significant of these initiatives are :  global productivity improvement plan , which began at the start of the year ended september 30 , 2019 and is anticipated to be completed by september 2022 .  hhi distribution center consolidation , which began during the second quarter of the year ended september 30 , 2017 and was closed in december 2018 .  gpc rightsizing initiative which began during the second quarter of the year ended september 30 , 2017 and was closed in september 2018. see note 5 - restructuring and related charges in the notes to the consolidated financial statements , included elsewhere within this annual report , for additional detail regarding restructuring and related activity . ‎ 31 refinancing activity the following recent financing activity has a significant impact on the comparability of financial results on the consolidated financial statements .  during the year ended september 30 , 2019 , the company ( 1 ) repaid $ 452.6 million of its 6.625 % senior unsecured notes with an outstanding principal of $ 570.0 million , consisting of a repayment of $ 285.0 million on march 31 , 2019 plus a repayment of $ 167.6 million on september 24 , 2019 using proceeds from the gac divestitures ; ( 2 ) issued $ 300.0 million of 5.00 % senior unsecured notes due september 2029 ; ( 3 ) repaid its 7.75 % senior unsecured notes in full on january 30 , 2019 using proceeds received from the gbl and gac divestitures ; ( 4 ) repaid its usd term loan in full on january 4 , 2019 using proceeds received from the divestiture of gbl ; and ( 5 ) repaid its cad term loan in full on october 31 , 2018 .  during the year ended september 30 , 2018 , hrg ( 1 ) paid off $ 92.0 million aggregate principal amount of the hgi energy notes ; ( 2 ) redeemed all $ 864.4 million outstanding principal amount of its 7.875 % senior secured notes due 2019 at a redemption price equal to 100 % of the principal amount , plus accrued and unpaid interest to the redemption rate ; and ( 3 ) paid off $ 50.0 million aggregate principal amount of a hgi funding loan due july 13 , 2018 .  during the year ended september 30 , 2017 , spectrum legacy refinanced a portion of its debt to extend maturities and reduce borrowing costs including entering into various amendments to the credit agreement under its term loans resulting in an increase to the usd term loan , repayment of the euro term loan , increase in the capacity of the revolver facility and changes to the applicable variable interest rates . see note 12 - debt in the notes to the consolidated financial statements , included elsewhere within this annual report , for additional detail regarding debt . safety recall on june 10 , 2017 , the company initiated a voluntary safety recall of various rawhide chew products for dogs sold by the company 's gpc segment due to possible chemical contamination . story_separator_special_tag this expense was partially offset by a $ 48.0 million tax benefit from recalculating our liability for the one-time deemed mandatory repatriation of post-1986 undistributed foreign subsidiary earnings and profits after application of the regulations and the final calculations for its fiscal 2018 federal income tax returns , including our ability to offset the liability in part by foreign tax credits . the income recognized as a result of the regulations , the u.s. gain on the sale of the battery business , and the u.s. operating results for the year ended september 30 , 2019 have made it more likely than not that we can use certain federal net operating losses subject to ownership change limitations . we therefore released $ 36.7 million of valuation allowance related to these net operating losses during the year ended september 30 , 2019. our effective tax rate for the year ended september 30 , 2018 was significantly impacted by the tax reform act and the release of valuation allowances over capital and net operating loss carryforwards due to completion of the spectrum merger . the tax reform act permanently reduces the u.s. corporate income tax rate from a maximum of 35 % to a flat 21 % rate , effective january 1 , 2018. we released $ 371.7 million of valuation allowance on its u.s. federal net deferred tax assets since it was more likely than not that the assets will be realized and recorded valuation allowance of $ 6.1 million on non-u.s. net deferred tax assets . as a result of the tax reform act , the company recorded $ 166.7 million of tax benefit for restatement of u.s. deferred tax assets and liabilities and a provisional $ 73.1 million of income tax expense for the one-time deemed mandatory repatriation . our effective tax rate for the year ended september 30 , 2017 differs from the u.s federal statutory rate of 35 % due to income earned outside the u.s. that is subject to statutory rates lower than 35 % . additionally , we recognized a $ 36.1 million tax benefit for changes in our assessment over our ability to effectively repatriate tax-free non-u.s. earnings upon which liabilities were previously recorded , and a $ 9.3 million tax benefit for the recognition of additional federal and state tax credits . we also recorded a $ 14.7 million valuation allowance on additional state net operating losses that more likely than not will expire unused . see note 16 – income taxes in notes to the consolidated financial statements , included elsewhere within this annual report for additional detail . income from discontinued operations . discontinued operations includes the results of operations , financial position and cash flows for the following businesses that are reported separately as discontinued operations : ( 1 ) gbl that was classified as held for sale effective december 29 , 2017 and reported as a component of discontinued operations for all periods presented through the close of sale on january 2 , 2019 ; ( 2 ) gac that was classified as held for sale effective october 29 , 2018 , subsequent to the balance sheet date of september 30 , 2018 , and retroactively recasted as a component of discontinued operations for all periods presented through the close of sale on january 28 , 2019 ; and ( 3 ) hrg insurance operations , for all periods presented through the close of sale on november 30 , 2017. see note 3 – divestitures in notes to the consolidated financial statements , included elsewhere in this annual report , for more information on the divestitures and the assets and liabilities classified as held for sale .  income from discontinued operations , net of tax , for the year ended september 30 , 2019 increased $ 214.9 million due to gbl income of $ 974.9 million , which includes recognition of $ 989.8 million of pre-tax gain on the sale of gbl operations , net of reclassified accumulated other comprehensive loss realized of $ 18.5 million ; offset by a loss on sale of gac discontinued operations primarily attributable to a write-down of net assets to fair value of $ 115.7 million , net reclassified accumulated other comprehensive gain realized of $ 3.3 million ; net tax expense of $ 199.3 million associated with the gbl and gac divestitures ; plus $ 476.4 million of pre-tax gain on fgl discontinued operations in the prior year primarily attributable to the recognition of $ 445.9 million to reclassify accumulated other comprehensive income related to fgl , that was previously included in equity ; offset by the recognition of a write-down on net assets of $ 14.2 million upon completion of sale . income from discontinued operations , net of tax , for the year ended september 30 , 2018 increased $ 155.7 million , or 53.8 % , due to the decrease in income from gbl discontinued operations of $ 62.7 million , decrease in income from gac discontinued operations of $ 126.4 million and increase in income from fgl discontinued operations of $ 189.3 million . the decrease in income from gbl discontinued operations is primarily attributable to incremental transaction related costs that was recognized for the planned divestitures , increased operating expenses for selling and marketing activities and increased interest expense allocated to discontinued operations from increased variable rates . the decrease in income from gac discontinued operations is primarily attributable the recognition of a goodwill impairment of $ 92.5 million , operating inefficiencies driven by restructuring initiatives to consolidated domestic operations , new product development and marketing costs , higher material costs and unfavorable product mix . the increase in income from fgl is primarily attributable to the recognition of $ 445.9 million to reclassify accumulated other comprehensive income related to fgl , that was previously included in equity ; offset by the recognition of a write-down on net assets of $ 14.2 million on fgl and

35 we use the following factors to determine the loan loss allowance for the general portfolio category : · internal risk ratings system . we maintain risk ratings for our borrowers that are updated at least annually and are based on the following : - general financial condition of the borrower ; - our estimate of the adequacy of the collateral securing our loans ; - our judgment of the quality of the borrower 's management ; - our judgment of the borrower 's competitive position within its service territory and industry ; - our estimate of the potential impact of proposed regulation and litigation ; and - other factors specific to individual borrowers or classes of borrowers . · standard & poor 's historical corporate bond default table . the table provides expected default rates for all corporate bonds based on rating level and the remaining maturity . we correlate our internal risk ratings to the ratings used in the corporate bond default table . we use the default table to assist in estimating our loan loss allowance because we have limited history from which to develop loss expectations . · recovery rates . estimated recovery rates are based on our historical recovery experience by member class calculated by comparing loan balances at the time of default to the total loss recorded on the loan . at may 31 , 2011 and 2010 , we had a total of $ 18,592 million and $ 18,037 million of loans , respectively , in the general portfolio . this total excludes $ 227 million and $ 237 million of loans at may 31 , 2011 and 2010 , respectively , that have a u.s. government guarantee of all principal and interest payments . we do not maintain a loan loss allowance on loans that are guaranteed by the u.s. government . at may 31 , 2011 and 2010 , we had a total loss allowance of $ 99 million and $ 125 million , respectively , for loans in the general portfolio representing coverage of 0.5 percent and 0.7 percent , respectively , of the total loans for the general portfolio . in addition to the loan loss allowance for the general portfolio as calculated above , we maintain an unallocated reserve for the general portfolio . our unallocated reserve has two components : · a single-obligor reserve to cover the additional risk associated with large loan exposures . this unallocated reserve is based on our internal risk ratings and applied to exposures above an established threshold . at may 31 , 2011 and 2010 , our single-obligor reserve was $ 25 million and $ 28 million , respectively . · an economic and environmental reserve to cover factors we believe are currently affecting the financial results of borrowers but are not reflected in our internal risk rating process and , therefore , present an increased risk of losses incurred as of the balance sheet date . we use annual audited financial statements from our borrowers as part of our internal risk rating process . there could be a lag between the time various environmental and economic factors occur and the time when these factors are reflected in the annual audited financial statements of the borrower and , therefore , the internal risk rating we determine for the borrower . our corporate credit committee makes a quarterly determination of the percentage to apply to loans in the general portfolio as an additional reserve . this reserve component may be set at up to 10 percent of the amount of the calculated general loan loss allowance for each type of loan exposure . at may 31 , 2011 , the corporate credit committee set the economic and environmental component of the unallocated reserve to be $ 0.5 million , representing 7 percent of the general reserve held for telecommunications loans compared with $ 3 million at may 31 , 2010 representing 2 percent of the general reserve held for cfc and ncsc loans and 7 percent of the general reserve held for rtfc loans . at may 31 , 2010 , the corporate credit committee took into consideration the effect on our borrowers from ( i ) the economic downturn , ( ii ) the increase in the unemployment rate , ( iii ) the decline in the housing market that led to a significant increase in foreclosures and ( iv ) specifically for telecommunications borrowers , reduced discretionary spending for telecommunications services , increased competition from wireless providers and continued loss of access lines among rural local exchange carriers . at may 31 , 2011 , the corporate credit committee concluded that these factors continued to affect rtfc borrowers , but that cfc and ncsc borrowers were not significantly affected by the economic downturn and maintained or improved financial ratios . as a result , the corporate credit committee reduced the unallocated reserve for cfc and ncsc loans to zero . impaired loans a loan is considered to be impaired when we do not expect to collect all principal and interest payments as scheduled by the original loan terms , other than an insignificant delay or an insignificant shortfall in amount . factors considered in determining impairment may include , but are not limited to : · the review of the borrower 's audited financial statements and interim financial statements if available , · the borrower 's payment history , · communication with the borrower , 36 · economic conditions in the borrower 's service territory , · pending legal action involving the borrower , · restructure agreements between us and the borrower and · estimates of the value of the borrower 's assets that have been pledged as collateral to secure our loans . story_separator_special_tag ( 4 ) changes due to average volume and average rate represent a calculated amount and are not intended to sum . ( 5 ) for derivative cash settlements , variance due to average volume represents the change in derivative cash settlements that resulted from the change in the average notional amount of derivative contracts outstanding . variance due to average rate represents the change in derivative cash settlements that resulted from the net difference between the average rate paid and the average rate received for interest rate swaps during the period . ( 6 ) see non-gaap financial measures for further explanation of the adjustment we make in our financial analysis to include the derivative cash settlements in interest expense . during the year ended may 31 , 2011 , interest expense decreased 8 percent compared with the same prior-year period primarily due to the 28 basis point reduction in the total cost of debt . the lower cost of debt was mostly the result of refinancing maturing term debt with a combination of commercial paper and term debt at lower interest rates . during fiscal year 2011 , we increased the utilization of commercial paper in our funding mix . the increase in commercial paper to 15 percent of the total average debt outstanding for fiscal year 2011 from 11 percent for the prior-year period was offset by the decrease in medium-term notes to 21 percent of the total average debt outstanding from 24 percent for the prior-year period . 41 at an average cost of 0.32 percent and 0.36 percent for the years ended may 31 , 2011 and 2010 , commercial paper is our lowest-cost source of debt funding and significantly lower in average cost compared with medium-term notes of 6.23 percent and 6.02 percent for the same periods , respectively . a decrease to our cost of debt also resulted from our issuance of collateral trust bonds in november 2010 at an average interest rate of 1.54 percent in order to refinance maturing collateral trust bonds with a fixed rate of 4.375 percent and redeem subordinated deferrable debt with a fixed rate of 6.75 percent . we lowered our average cost for long-term notes payable by 37 basis points during the year ended may 31 , 2011 compared with the prior-year period . in january 2011 , we repriced $ 750 million of long-term notes payable to the federal financing bank at an average effective rate of 1.73 percent compared with an effective rate of 5.20 percent prior to repricing . in addition , we issued notes totaling $ 400 million to the federal agricultural mortgage corporation in september 2010 and october 2010 , at rates ranging from 0.62 percent to 0.67 percent . these notes matured during the third quarter of fiscal year 2011. during the year ended may 31 , 2010 , interest expense decreased 2 percent compared with the same prior-year period primarily due to the 10 basis point reduction in the cost of debt resulting from the lower overall interest rate environment . the decrease in the average cost of debt was driven largely by the decrease in interest rates for commercial paper and long-term notes payable to the federal agricultural finance corporation . this decrease was partially offset by maintaining a lower balance of commercial paper in our overall funding mix and issuing more term debt , including collateral trust bonds , member capital securities and notes payable to the federal agricultural finance corporation . the adjusted interest expense , which includes all derivative cash settlements , was $ 848 million for the year ended may 31 , 2011 , compared with $ 935 million and $ 822 million for the years ended may 31 , 2010 and 2009 , respectively . the adjusted interest expense was lower during the year ended may 31 , 2011 due to the lower interest expense noted above and the decrease in the derivative cash settlements expense discussed further below . the adjusted interest expense was higher during the year ended may 31 , 2010 as compared with the same prior-year period primarily due to cash settlements income resulting from terminated interest rate swaps during fiscal year 2009 as discussed further below . see non-gaap financial measures for further explanation of the adjustment we make in our financial analysis to include all derivative cash settlements in interest expense . net interest income the following tables represent a summary of the effect on net interest income and adjusted net interest income from changes in the components of total interest income and total interest expense described above . the following tables also summarize the net yield and adjusted net yield and the changes to net interest income and adjusted net interest income due to changes in average volume versus changes to interest rates . replace_table_token_19_th ( 1 ) see non-gaap financial measures for further explanation of the adjustment we make in our financial analysis to include the derivative cash settlements in interest expense , which affects adjusted net interest income . replace_table_token_20_th ( 1 ) calculated using the following formula : ( current period average balance – prior-year period average balance ) x prior-year period average rate . ( 2 ) calculated using the following formula : ( current period average rate – prior-year period average rate ) x current period average balance . ( 3 ) the net change attributable to the combined impact of volume and rate has been allocated to each in proportion to the absolute dollar amounts of change . 42 the increase of 28 percent to net interest income for the year ended may 31 , 2011 compared with the prior-year period was primarily due to the reduction to interest expense , partially offset by the decrease in interest income as explained previously . net interest income decreased 3 percent during the year ended may 31 , 2010 compared with the prior-year period as the decline in the average yield of

outstanding debt the following table breaks out our debt outstanding and the weighted average interest rates by type of debt at may 31 : replace_table_token_31_th ( 1 ) includes $ 309 million and $ 372 million related to the daily liquidity fund at may 31 , 2011 and 2010 , respectively . ( 2 ) includes variable-rate debt that has been swapped to a fixed rate net of any fixed-rate debt that has been swapped to a variable rate . ( 3 ) the rate on commercial paper notes does not change once the note has been issued . however , the rates on new commercial paper notes change daily , and commercial paper notes generally have maturities of less than 90 days . therefore , commercial paper notes are classified as variable-rate debt . also includes fixed-rate debt that has been swapped to a variable rate net of any variable-rate debt that has been swapped to a fixed rate . total debt outstanding increased by $ 341 million at may 31 , 2011 as compared with may 31 , 2010 primarily due to the need to fund the $ 418 million increase to total assets . the increase to total assets was primarily due to increases of $ 420 million to net loans outstanding and $ 239 million to the balance of foreclosed assets offset by the reduction of $ 220 million to the balance of cash . commercial paper and bank bid notes represented a higher percentage of the total debt outstanding at may 31 , 2011 compared with the percentage at may 31 , 2010 as a result of its use to refinance maturing term debt during the period . in july 2010 , $ 400 million of variable-rate collateral trust bonds matured , and in october 2010 , $ 500 million of 4.375 percent collateral trust bonds matured . in september 2010 , we redeemed $ 125 million of 6.75 percent subordinated deferrable debt . additionally , maturities of medium-term notes exceeded new advances by $ 575 million during the year ended may 31 , 2011. these debt maturities were refinanced with a combination of commercial paper and collateral trust bonds .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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. ```outstanding debt the following table breaks out our debt outstanding and the weighted average interest rates by type of debt at may 31 : replace_table_token_31_th ( 1 ) includes $ 309 million and $ 372 million related to the daily liquidity fund at may 31 , 2011 and 2010 , respectively . ( 2 ) includes variable-rate debt that has been swapped to a fixed rate net of any fixed-rate debt that has been swapped to a variable rate . ( 3 ) the rate on commercial paper notes does not change once the note has been issued . however , the rates on new commercial paper notes change daily , and commercial paper notes generally have maturities of less than 90 days . therefore , commercial paper notes are classified as variable-rate debt . also includes fixed-rate debt that has been swapped to a variable rate net of any variable-rate debt that has been swapped to a fixed rate . total debt outstanding increased by $ 341 million at may 31 , 2011 as compared with may 31 , 2010 primarily due to the need to fund the $ 418 million increase to total assets . the increase to total assets was primarily due to increases of $ 420 million to net loans outstanding and $ 239 million to the balance of foreclosed assets offset by the reduction of $ 220 million to the balance of cash . commercial paper and bank bid notes represented a higher percentage of the total debt outstanding at may 31 , 2011 compared with the percentage at may 31 , 2010 as a result of its use to refinance maturing term debt during the period . in july 2010 , $ 400 million of variable-rate collateral trust bonds matured , and in october 2010 , $ 500 million of 4.375 percent collateral trust bonds matured . in september 2010 , we redeemed $ 125 million of 6.75 percent subordinated deferrable debt . additionally , maturities of medium-term notes exceeded new advances by $ 575 million during the year ended may 31 , 2011. these debt maturities were refinanced with a combination of commercial paper and collateral trust bonds . ``` Suspicious Activity Report : 35 we use the following factors to determine the loan loss allowance for the general portfolio category : · internal risk ratings system . we maintain risk ratings for our borrowers that are updated at least annually and are based on the following : - general financial condition of the borrower ; - our estimate of the adequacy of the collateral securing our loans ; - our judgment of the quality of the borrower 's management ; - our judgment of the borrower 's competitive position within its service territory and industry ; - our estimate of the potential impact of proposed regulation and litigation ; and - other factors specific to individual borrowers or classes of borrowers . · standard & poor 's historical corporate bond default table . the table provides expected default rates for all corporate bonds based on rating level and the remaining maturity . we correlate our internal risk ratings to the ratings used in the corporate bond default table . we use the default table to assist in estimating our loan loss allowance because we have limited history from which to develop loss expectations . · recovery rates . estimated recovery rates are based on our historical recovery experience by member class calculated by comparing loan balances at the time of default to the total loss recorded on the loan . at may 31 , 2011 and 2010 , we had a total of $ 18,592 million and $ 18,037 million of loans , respectively , in the general portfolio . this total excludes $ 227 million and $ 237 million of loans at may 31 , 2011 and 2010 , respectively , that have a u.s. government guarantee of all principal and interest payments . we do not maintain a loan loss allowance on loans that are guaranteed by the u.s. government . at may 31 , 2011 and 2010 , we had a total loss allowance of $ 99 million and $ 125 million , respectively , for loans in the general portfolio representing coverage of 0.5 percent and 0.7 percent , respectively , of the total loans for the general portfolio . in addition to the loan loss allowance for the general portfolio as calculated above , we maintain an unallocated reserve for the general portfolio . our unallocated reserve has two components : · a single-obligor reserve to cover the additional risk associated with large loan exposures . this unallocated reserve is based on our internal risk ratings and applied to exposures above an established threshold . at may 31 , 2011 and 2010 , our single-obligor reserve was $ 25 million and $ 28 million , respectively . · an economic and environmental reserve to cover factors we believe are currently affecting the financial results of borrowers but are not reflected in our internal risk rating process and , therefore , present an increased risk of losses incurred as of the balance sheet date . we use annual audited financial statements from our borrowers as part of our internal risk rating process . there could be a lag between the time various environmental and economic factors occur and the time when these factors are reflected in the annual audited financial statements of the borrower and , therefore , the internal risk rating we determine for the borrower . our corporate credit committee makes a quarterly determination of the percentage to apply to loans in the general portfolio as an additional reserve . this reserve component may be set at up to 10 percent of the amount of the calculated general loan loss allowance for each type of loan exposure . at may 31 , 2011 , the corporate credit committee set the economic and environmental component of the unallocated reserve to be $ 0.5 million , representing 7 percent of the general reserve held for telecommunications loans compared with $ 3 million at may 31 , 2010 representing 2 percent of the general reserve held for cfc and ncsc loans and 7 percent of the general reserve held for rtfc loans . at may 31 , 2010 , the corporate credit committee took into consideration the effect on our borrowers from ( i ) the economic downturn , ( ii ) the increase in the unemployment rate , ( iii ) the decline in the housing market that led to a significant increase in foreclosures and ( iv ) specifically for telecommunications borrowers , reduced discretionary spending for telecommunications services , increased competition from wireless providers and continued loss of access lines among rural local exchange carriers . at may 31 , 2011 , the corporate credit committee concluded that these factors continued to affect rtfc borrowers , but that cfc and ncsc borrowers were not significantly affected by the economic downturn and maintained or improved financial ratios . as a result , the corporate credit committee reduced the unallocated reserve for cfc and ncsc loans to zero . impaired loans a loan is considered to be impaired when we do not expect to collect all principal and interest payments as scheduled by the original loan terms , other than an insignificant delay or an insignificant shortfall in amount . factors considered in determining impairment may include , but are not limited to : · the review of the borrower 's audited financial statements and interim financial statements if available , · the borrower 's payment history , · communication with the borrower , 36 · economic conditions in the borrower 's service territory , · pending legal action involving the borrower , · restructure agreements between us and the borrower and · estimates of the value of the borrower 's assets that have been pledged as collateral to secure our loans . story_separator_special_tag ( 4 ) changes due to average volume and average rate represent a calculated amount and are not intended to sum . ( 5 ) for derivative cash settlements , variance due to average volume represents the change in derivative cash settlements that resulted from the change in the average notional amount of derivative contracts outstanding . variance due to average rate represents the change in derivative cash settlements that resulted from the net difference between the average rate paid and the average rate received for interest rate swaps during the period . ( 6 ) see non-gaap financial measures for further explanation of the adjustment we make in our financial analysis to include the derivative cash settlements in interest expense . during the year ended may 31 , 2011 , interest expense decreased 8 percent compared with the same prior-year period primarily due to the 28 basis point reduction in the total cost of debt . the lower cost of debt was mostly the result of refinancing maturing term debt with a combination of commercial paper and term debt at lower interest rates . during fiscal year 2011 , we increased the utilization of commercial paper in our funding mix . the increase in commercial paper to 15 percent of the total average debt outstanding for fiscal year 2011 from 11 percent for the prior-year period was offset by the decrease in medium-term notes to 21 percent of the total average debt outstanding from 24 percent for the prior-year period . 41 at an average cost of 0.32 percent and 0.36 percent for the years ended may 31 , 2011 and 2010 , commercial paper is our lowest-cost source of debt funding and significantly lower in average cost compared with medium-term notes of 6.23 percent and 6.02 percent for the same periods , respectively . a decrease to our cost of debt also resulted from our issuance of collateral trust bonds in november 2010 at an average interest rate of 1.54 percent in order to refinance maturing collateral trust bonds with a fixed rate of 4.375 percent and redeem subordinated deferrable debt with a fixed rate of 6.75 percent . we lowered our average cost for long-term notes payable by 37 basis points during the year ended may 31 , 2011 compared with the prior-year period . in january 2011 , we repriced $ 750 million of long-term notes payable to the federal financing bank at an average effective rate of 1.73 percent compared with an effective rate of 5.20 percent prior to repricing . in addition , we issued notes totaling $ 400 million to the federal agricultural mortgage corporation in september 2010 and october 2010 , at rates ranging from 0.62 percent to 0.67 percent . these notes matured during the third quarter of fiscal year 2011. during the year ended may 31 , 2010 , interest expense decreased 2 percent compared with the same prior-year period primarily due to the 10 basis point reduction in the cost of debt resulting from the lower overall interest rate environment . the decrease in the average cost of debt was driven largely by the decrease in interest rates for commercial paper and long-term notes payable to the federal agricultural finance corporation . this decrease was partially offset by maintaining a lower balance of commercial paper in our overall funding mix and issuing more term debt , including collateral trust bonds , member capital securities and notes payable to the federal agricultural finance corporation . the adjusted interest expense , which includes all derivative cash settlements , was $ 848 million for the year ended may 31 , 2011 , compared with $ 935 million and $ 822 million for the years ended may 31 , 2010 and 2009 , respectively . the adjusted interest expense was lower during the year ended may 31 , 2011 due to the lower interest expense noted above and the decrease in the derivative cash settlements expense discussed further below . the adjusted interest expense was higher during the year ended may 31 , 2010 as compared with the same prior-year period primarily due to cash settlements income resulting from terminated interest rate swaps during fiscal year 2009 as discussed further below . see non-gaap financial measures for further explanation of the adjustment we make in our financial analysis to include all derivative cash settlements in interest expense . net interest income the following tables represent a summary of the effect on net interest income and adjusted net interest income from changes in the components of total interest income and total interest expense described above . the following tables also summarize the net yield and adjusted net yield and the changes to net interest income and adjusted net interest income due to changes in average volume versus changes to interest rates . replace_table_token_19_th ( 1 ) see non-gaap financial measures for further explanation of the adjustment we make in our financial analysis to include the derivative cash settlements in interest expense , which affects adjusted net interest income . replace_table_token_20_th ( 1 ) calculated using the following formula : ( current period average balance – prior-year period average balance ) x prior-year period average rate . ( 2 ) calculated using the following formula : ( current period average rate – prior-year period average rate ) x current period average balance . ( 3 ) the net change attributable to the combined impact of volume and rate has been allocated to each in proportion to the absolute dollar amounts of change . 42 the increase of 28 percent to net interest income for the year ended may 31 , 2011 compared with the prior-year period was primarily due to the reduction to interest expense , partially offset by the decrease in interest income as explained previously . net interest income decreased 3 percent during the year ended may 31 , 2010 compared with the prior-year period as the decline in the average yield of

our solutions include outsourcing the functions of procurement , inventory and warehouse management , logistics , point of issue technology , project management , business process and performance metrics reporting . these solutions allow us to leverage the infrastructure of our sap enterprise resource planning ( “ erp ” ) system and other technologies to streamline our customers ' purchasing process , from requisition to procurement to payment , by digitally managing workflow , improving approval routing and providing robust reporting functionality . we support land and offshore operations for all the major oil and gas producing regions around the world through our network of locations . our key markets , beyond north america , include latin america , the north sea , the middle east , asia pacific and the former soviet union ( “ fsu ” ) . products sold through our locations support greenfield expansion upstream capital projects , midstream infrastructure and transmission and mro consumables used in day-to-day production . we provide downstream energy and industrial products for petroleum refining , chemical processing , lng terminals , power generation utilities and industrial manufacturing operations and customer on-site locations . we stock or sell more than 300,000 skus through our branch network . our supplier network consists of thousands of vendors in approximately 40 countries . from our operations in over 20 countries , we sell to customers operating in approximately 80 countries . the supplies and equipment stocked by each of our branches is customized to meet varied and changing local customer demands . the breadth and scale of our offering enhances our value proposition to our customers , suppliers and shareholders . we employ advanced information technologies , including a common erp platform across most of our business , to provide complete procurement , materials management and logistics coordination to our customers around the globe . having a common erp platform allows immediate visibility into our inventory assets , operations and financials worldwide , enhancing decision making and efficiency . our revenue and operating results are related to the level of worldwide oil and gas drilling and production activities and the profitability and cash flow of oil and gas companies and drilling contractors , which in turn are affected by current and anticipated prices of oil and gas . oil and gas prices have been and are likely to continue to be volatile . see item 1a . “ risk factors . ” we conduct our operations through three business segments : united states , canada and international . see “ business—summary of reportable segments ” for a discussion of each of these business segments . 26 unless indicated otherwise , results of operations data are presented in accordanc e with accounting principles generally accepted in the united states ( “ gaap ” ) . in an effort to provide investors with additional information regarding our results as determined by gaap , we may disclose non-gaap financial measures . the primary non-gaap fina ncial measure we focus on is earnings before interest , taxes , depreciation and amortization , excluding other costs ( “ ebitda excluding other costs ” ) . this financial measure excludes the impact of certain amounts and is not calculated in accordance with gaap . see “ non-gaap financial measures and reconciliations ” in results of operations for an explanation of our use of non-gaap financial measures and reconciliations to the corresponding measures calculated in accordance with gaap . operating environment overview our results are dependent on , among other things , the level of worldwide oil and gas drilling and completions , well remediation activity , crude and natural gas prices , capital spending by oilfield service companies and drilling contractors , and the worldwide oil and gas inventory levels . key industry indicators for the past three years include the following : replace_table_token_3_th * averages for the years indicated . see sources on following page . 27 the following table details the u.s. , canadian , and international rig activity and west texas intermediate ( “ wti ” ) oil prices for the past nine quarters ended december 31 , 2018 : sources : rig count : baker hughes , inc. ( www.bhge.com ) ; west texas intermediate crude and natural gas prices : department of energy , energy information administration ( www.eia.doe.gov ) ; hot-rolled coil prices : american metal market steelbenchmarker hot roll coil usa ( www.amm.com ) . the worldwide average rig count increased 8.9 % ( from 2,030 to 2,211 ) and the u.s. increased 17.9 % ( from 875 to 1,032 ) in 2018 compared to 2017. the average price of west texas intermediate ( “ wti ” ) crude increased 27.6 % ( from $ 50.88 per barrel to $ 64.94 per barrel ) and natural gas prices increased 6.0 % ( from $ 2.99 per mmbtu to $ 3.17 per mmbtu ) in 2018 compared to 2017. the average price of hot-rolled coil increased 33.4 % ( from $ 620.10 per short ton to $ 827.25 per short ton ) in 2018 compared to 2017. u.s. rig count at february 1 , 2019 was 1,045 rigs , up 1.3 % compared to the 2018 average of 1,032 rigs . the price for wti crude was $ 51.79 per barrel at january 28 , 2019 , down 20.2 % from the 2018 average . the price for natural gas was $ 3.05 per mmbtu at january 28 , 2019 , down 3.8 % from the 2018 average . the price for hot-rolled coil was $ 731.20 per short ton at january 14 , 2019 , down 11.6 % from the 2018 average . 28 executive summary for the year ended december 31 , 2018 , the company generated net income of $ 52 million , or $ 0.47 per fully diluted share on $ 3,127 million in revenue . story_separator_special_tag story_separator_special_tag to $ 127 million in 2016. the decline in reconciling adjustments decreased mainly due to reductions in provisions for inventory and doubtful accounts in 2017 versus 2016. net changes in operating assets and liabilities , net of acquisitions , was a deficit of $ 135 million in 2017 compared to $ 342 million provided in 2016. the deficit was primarily due to increases of $ 110 million and $ 64 million , in inventories and receivables , respectively , as market conditions improved in 2017 , offset by an increase in accounts payable and accrued liabilities of $ 43 million . net cash provided by investing activities in 2017 was $ 8 million compared to net cash used in investing activities of $ 183 million in 2016. cash provided by investing activities in 2017 was primarily related to the proceeds from disposal of assets , and other for $ 16 million . net cash provided by financing activities served as the primary source of liquidity . net cash provided by financing activities for 2017 was $ 94 million related to net borrowings from the revolving credit facility , compared to $ 47 million used in financing activities in 2016 associated with net repayments under the revolving credit facility . effect of the change in exchange rates the effect of the change in exchange rates on cash flows was a decrease of $ 9 million and an increase of $ 5 million for the years ended december 31 , 2018 and 2017 , respectively . 35 capital spending we intend to pursue additional acquisition candidates , but the timing , size or success of any acquisition effort and the related potential capital commitments can not be predicted . we continue to expect to fund future cash acquisitions primarily with cash flow from operations and the usage of the available portion of the revolving credit facility . we expect capital expenditures for fiscal year 2019 to be approximately $ 20 million primarily related to purchases of property , plant and equipment . off-balance sheet arrangements we are often party to certain transactions that require off-balance sheet arrangements such as performance bonds , guarantees and operating leases for equipment that are not reflected in our consolidated balance sheets . these arrangements are made in our normal course of business and they are not reasonably likely to have a current or future material adverse effect on our financial condition , results of operations , liquidity or cash flows . contractual obligations the following table summarizes our aggregate contractual fixed and variable obligations as of december 31 , 2018 ( in millions ) : replace_table_token_8_th critical accounting policies and estimates in preparing the financial statements , we make assumptions , estimates and judgments that affect the amounts reported . we periodically evaluate our estimates and judgments that are most critical in nature , which are related to allowance for doubtful accounts , inventory reserves , goodwill , purchase price allocation of acquisitions , vendor consideration and income taxes . our estimates are based on historical experience and on our future expectations that we believe are reasonable . the combination of these factors forms the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results are likely to differ from our current estimates and those differences may be material . allowance for doubtful accounts we grant credit to our customers , which operate primarily in the energy industry . concentrations of credit risk are limited because we have a large number of geographically diverse customers , thus spreading trade credit risk . we control credit risk through credit evaluations , credit limits and monitoring procedures . we perform periodic credit evaluations of our customers ' financial condition and generally do not require collateral , but may require letters of credit for certain international sales . credit losses are provided for in the financial statements and changes in estimates can be material . allowances for doubtful accounts are determined based on a continuous process of assessing the company 's portfolio on an individual customer basis taking into account current market conditions and trends . this process consists of a thorough review of historical collection experience , current aging status of the customer accounts , and financial condition of the company 's customers . based on a review of these factors , the company will establish or adjust allowances for specific customers . at december 31 , 2018 and 2017 , allowance for doubtful accounts totaled $ 27 million and $ 29 million , or 5.3 % and 6.4 % of gross accounts receivable , respectively . inventory reserves inventories consist primarily of oilfield and industrial finished goods . inventories are stated at the lower of cost or net realizable value and using average cost methods . allowances for excess and obsolete inventories are determined based on the company 's historical usage of inventory on hand as well as its future expectations . the company 's estimated carrying value of inventory therefore depends upon demand driven by oil and gas spending activity , which depends in turn upon oil , gas and steel prices , the general outlook for economic growth worldwide , available financing for the company 's customers , political stability in major oil and gas producing areas , and the potential obsolescence of various inventory items we stock , among other factors . at december 31 , 2018 and 2017 , inventory reserves totaled $ 28 million and $ 40 million , or 4.4 % and 6.3 % of gross inventory , respectively . changes in our estimates can be material under different market conditions . 36 goodwill the company has $ 314 million of goodwill as of december 31 , 2018. generally accepted accounting principles require the company to test goodwill for impairment at least annually or more frequently whenever events or circumstances occur indicating that it might be impaired

liquidity and capital resources we assess liquidity in terms of our ability to generate cash to fund operating , investing and financing activities . we expect resources to be available to reinvest in existing businesses , strategic acquisitions and capital expenditures to meet short and long-term objectives . we believe that cash on hand , cash generated from expected results of operations and amounts available under our revolving credit facility will be sufficient to fund operations , anticipated working capital needs and other cash requirements , including capital expenditures . at december 31 , 2018 and 2017 , we had cash and cash equivalents of $ 116 million and $ 98 million , respectively . as of december 31 , 2018 , $ 95 million of our cash and cash equivalents was maintained in the accounts of our various foreign subsidiaries . historically , it has been the practice and intention of the company to indefinitely reinvest the earnings of its foreign subsidiaries in those operations . in light of the significant changes made by the tcja , the company will no longer be indefinitely reinvested with regard to its pre-2018 earnings in canada and the united kingdom . these earnings were subject to the tcja 's one-time transition tax and the future repatriation of these earnings will not result in additional income tax expense or foreign withholding taxes due to the company 's available tax attributes . no additional income taxes have been provided for other foreign earnings as these amounts continue to be indefinitely reinvested . the company makes a determination each period concerning its intent and ability to indefinitely reinvest the cash held by its foreign subsidiaries .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources we assess liquidity in terms of our ability to generate cash to fund operating , investing and financing activities . we expect resources to be available to reinvest in existing businesses , strategic acquisitions and capital expenditures to meet short and long-term objectives . we believe that cash on hand , cash generated from expected results of operations and amounts available under our revolving credit facility will be sufficient to fund operations , anticipated working capital needs and other cash requirements , including capital expenditures . at december 31 , 2018 and 2017 , we had cash and cash equivalents of $ 116 million and $ 98 million , respectively . as of december 31 , 2018 , $ 95 million of our cash and cash equivalents was maintained in the accounts of our various foreign subsidiaries . historically , it has been the practice and intention of the company to indefinitely reinvest the earnings of its foreign subsidiaries in those operations . in light of the significant changes made by the tcja , the company will no longer be indefinitely reinvested with regard to its pre-2018 earnings in canada and the united kingdom . these earnings were subject to the tcja 's one-time transition tax and the future repatriation of these earnings will not result in additional income tax expense or foreign withholding taxes due to the company 's available tax attributes . no additional income taxes have been provided for other foreign earnings as these amounts continue to be indefinitely reinvested . the company makes a determination each period concerning its intent and ability to indefinitely reinvest the cash held by its foreign subsidiaries . ``` Suspicious Activity Report : our solutions include outsourcing the functions of procurement , inventory and warehouse management , logistics , point of issue technology , project management , business process and performance metrics reporting . these solutions allow us to leverage the infrastructure of our sap enterprise resource planning ( “ erp ” ) system and other technologies to streamline our customers ' purchasing process , from requisition to procurement to payment , by digitally managing workflow , improving approval routing and providing robust reporting functionality . we support land and offshore operations for all the major oil and gas producing regions around the world through our network of locations . our key markets , beyond north america , include latin america , the north sea , the middle east , asia pacific and the former soviet union ( “ fsu ” ) . products sold through our locations support greenfield expansion upstream capital projects , midstream infrastructure and transmission and mro consumables used in day-to-day production . we provide downstream energy and industrial products for petroleum refining , chemical processing , lng terminals , power generation utilities and industrial manufacturing operations and customer on-site locations . we stock or sell more than 300,000 skus through our branch network . our supplier network consists of thousands of vendors in approximately 40 countries . from our operations in over 20 countries , we sell to customers operating in approximately 80 countries . the supplies and equipment stocked by each of our branches is customized to meet varied and changing local customer demands . the breadth and scale of our offering enhances our value proposition to our customers , suppliers and shareholders . we employ advanced information technologies , including a common erp platform across most of our business , to provide complete procurement , materials management and logistics coordination to our customers around the globe . having a common erp platform allows immediate visibility into our inventory assets , operations and financials worldwide , enhancing decision making and efficiency . our revenue and operating results are related to the level of worldwide oil and gas drilling and production activities and the profitability and cash flow of oil and gas companies and drilling contractors , which in turn are affected by current and anticipated prices of oil and gas . oil and gas prices have been and are likely to continue to be volatile . see item 1a . “ risk factors . ” we conduct our operations through three business segments : united states , canada and international . see “ business—summary of reportable segments ” for a discussion of each of these business segments . 26 unless indicated otherwise , results of operations data are presented in accordanc e with accounting principles generally accepted in the united states ( “ gaap ” ) . in an effort to provide investors with additional information regarding our results as determined by gaap , we may disclose non-gaap financial measures . the primary non-gaap fina ncial measure we focus on is earnings before interest , taxes , depreciation and amortization , excluding other costs ( “ ebitda excluding other costs ” ) . this financial measure excludes the impact of certain amounts and is not calculated in accordance with gaap . see “ non-gaap financial measures and reconciliations ” in results of operations for an explanation of our use of non-gaap financial measures and reconciliations to the corresponding measures calculated in accordance with gaap . operating environment overview our results are dependent on , among other things , the level of worldwide oil and gas drilling and completions , well remediation activity , crude and natural gas prices , capital spending by oilfield service companies and drilling contractors , and the worldwide oil and gas inventory levels . key industry indicators for the past three years include the following : replace_table_token_3_th * averages for the years indicated . see sources on following page . 27 the following table details the u.s. , canadian , and international rig activity and west texas intermediate ( “ wti ” ) oil prices for the past nine quarters ended december 31 , 2018 : sources : rig count : baker hughes , inc. ( www.bhge.com ) ; west texas intermediate crude and natural gas prices : department of energy , energy information administration ( www.eia.doe.gov ) ; hot-rolled coil prices : american metal market steelbenchmarker hot roll coil usa ( www.amm.com ) . the worldwide average rig count increased 8.9 % ( from 2,030 to 2,211 ) and the u.s. increased 17.9 % ( from 875 to 1,032 ) in 2018 compared to 2017. the average price of west texas intermediate ( “ wti ” ) crude increased 27.6 % ( from $ 50.88 per barrel to $ 64.94 per barrel ) and natural gas prices increased 6.0 % ( from $ 2.99 per mmbtu to $ 3.17 per mmbtu ) in 2018 compared to 2017. the average price of hot-rolled coil increased 33.4 % ( from $ 620.10 per short ton to $ 827.25 per short ton ) in 2018 compared to 2017. u.s. rig count at february 1 , 2019 was 1,045 rigs , up 1.3 % compared to the 2018 average of 1,032 rigs . the price for wti crude was $ 51.79 per barrel at january 28 , 2019 , down 20.2 % from the 2018 average . the price for natural gas was $ 3.05 per mmbtu at january 28 , 2019 , down 3.8 % from the 2018 average . the price for hot-rolled coil was $ 731.20 per short ton at january 14 , 2019 , down 11.6 % from the 2018 average . 28 executive summary for the year ended december 31 , 2018 , the company generated net income of $ 52 million , or $ 0.47 per fully diluted share on $ 3,127 million in revenue . story_separator_special_tag story_separator_special_tag to $ 127 million in 2016. the decline in reconciling adjustments decreased mainly due to reductions in provisions for inventory and doubtful accounts in 2017 versus 2016. net changes in operating assets and liabilities , net of acquisitions , was a deficit of $ 135 million in 2017 compared to $ 342 million provided in 2016. the deficit was primarily due to increases of $ 110 million and $ 64 million , in inventories and receivables , respectively , as market conditions improved in 2017 , offset by an increase in accounts payable and accrued liabilities of $ 43 million . net cash provided by investing activities in 2017 was $ 8 million compared to net cash used in investing activities of $ 183 million in 2016. cash provided by investing activities in 2017 was primarily related to the proceeds from disposal of assets , and other for $ 16 million . net cash provided by financing activities served as the primary source of liquidity . net cash provided by financing activities for 2017 was $ 94 million related to net borrowings from the revolving credit facility , compared to $ 47 million used in financing activities in 2016 associated with net repayments under the revolving credit facility . effect of the change in exchange rates the effect of the change in exchange rates on cash flows was a decrease of $ 9 million and an increase of $ 5 million for the years ended december 31 , 2018 and 2017 , respectively . 35 capital spending we intend to pursue additional acquisition candidates , but the timing , size or success of any acquisition effort and the related potential capital commitments can not be predicted . we continue to expect to fund future cash acquisitions primarily with cash flow from operations and the usage of the available portion of the revolving credit facility . we expect capital expenditures for fiscal year 2019 to be approximately $ 20 million primarily related to purchases of property , plant and equipment . off-balance sheet arrangements we are often party to certain transactions that require off-balance sheet arrangements such as performance bonds , guarantees and operating leases for equipment that are not reflected in our consolidated balance sheets . these arrangements are made in our normal course of business and they are not reasonably likely to have a current or future material adverse effect on our financial condition , results of operations , liquidity or cash flows . contractual obligations the following table summarizes our aggregate contractual fixed and variable obligations as of december 31 , 2018 ( in millions ) : replace_table_token_8_th critical accounting policies and estimates in preparing the financial statements , we make assumptions , estimates and judgments that affect the amounts reported . we periodically evaluate our estimates and judgments that are most critical in nature , which are related to allowance for doubtful accounts , inventory reserves , goodwill , purchase price allocation of acquisitions , vendor consideration and income taxes . our estimates are based on historical experience and on our future expectations that we believe are reasonable . the combination of these factors forms the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources . actual results are likely to differ from our current estimates and those differences may be material . allowance for doubtful accounts we grant credit to our customers , which operate primarily in the energy industry . concentrations of credit risk are limited because we have a large number of geographically diverse customers , thus spreading trade credit risk . we control credit risk through credit evaluations , credit limits and monitoring procedures . we perform periodic credit evaluations of our customers ' financial condition and generally do not require collateral , but may require letters of credit for certain international sales . credit losses are provided for in the financial statements and changes in estimates can be material . allowances for doubtful accounts are determined based on a continuous process of assessing the company 's portfolio on an individual customer basis taking into account current market conditions and trends . this process consists of a thorough review of historical collection experience , current aging status of the customer accounts , and financial condition of the company 's customers . based on a review of these factors , the company will establish or adjust allowances for specific customers . at december 31 , 2018 and 2017 , allowance for doubtful accounts totaled $ 27 million and $ 29 million , or 5.3 % and 6.4 % of gross accounts receivable , respectively . inventory reserves inventories consist primarily of oilfield and industrial finished goods . inventories are stated at the lower of cost or net realizable value and using average cost methods . allowances for excess and obsolete inventories are determined based on the company 's historical usage of inventory on hand as well as its future expectations . the company 's estimated carrying value of inventory therefore depends upon demand driven by oil and gas spending activity , which depends in turn upon oil , gas and steel prices , the general outlook for economic growth worldwide , available financing for the company 's customers , political stability in major oil and gas producing areas , and the potential obsolescence of various inventory items we stock , among other factors . at december 31 , 2018 and 2017 , inventory reserves totaled $ 28 million and $ 40 million , or 4.4 % and 6.3 % of gross inventory , respectively . changes in our estimates can be material under different market conditions . 36 goodwill the company has $ 314 million of goodwill as of december 31 , 2018. generally accepted accounting principles require the company to test goodwill for impairment at least annually or more frequently whenever events or circumstances occur indicating that it might be impaired

the following table illustrates the effects of the impairment charges , restructuring charge and gain on the sale of assets on devry 's earnings . management believes that the non-gaap disclosure of net income and earnings per share excluding these discrete items provides investors with useful supplemental information regarding the underlying business trends and performance of devry 's ongoing operations and is useful for period-over-period comparisons of such operations given the discrete nature of the impairment and restructuring charges and gain on the sale of assets . devry uses these supplemental financial measures internally in its management and budgeting process . however , these non-gaap financial measures should be viewed in addition to , and not as a substitute for , devry 's reported results prepared in accordance with gaap . the following table reconciles these non-gaap measures to the most directly comparable gaap information ( in thousands , except per share data ) : replace_table_token_17_th results of operations the following table presents information with respect to the relative size to revenue of each item in the consolidated statements of income for the current and prior two fiscal years . percentages may not add because of rounding . replace_table_token_18_th 50 fiscal year ended june 30 , 2012 vs. fiscal year ended june 30 , 2011 revenues total consolidated revenues for fiscal year 2012 of $ 2,089.8 million decreased $ 92.6 million , or 4.2 % , as compared to last year . revenues decreased within devry 's business , technology and management segment as a result of a decline in student enrollments and an increase in scholarships due to the challenging economic environment , persistent unemployment and heightened competition . this decrease was partially offset by revenue increases within devry 's medical and healthcare and international , k-12 and professional education segments as a result of growth in total student enrollments , improved student retention and tuition price increases . in addition , auc , which was acquired on august 3 , 2011 , and fbv , which was acquired on february 29 , 2012 contributed to offsetting the revenue decline during fiscal year 2012. management expects that total revenues will be slightly down for fiscal year 2013 as compared to fiscal year 2012 , driven largely by the impact from declines in new student enrollments within devry university and carrington experienced in fiscal year 2012 , partially offset by anticipated revenue growth within devry 's other educational institutions . management believes that fiscal years 2014 through 2016 will represent a period of recovery and growth for devry , assuming modest enrollment growth at devry university , a recovery of enrollments within carrington , and continued growth within devry 's other educational institutions . business , technology and management during fiscal year 2012 , business , technology and management segment revenues decreased 10.7 % to $ 1,303.6 million as compared to the year-ago period as a result of a decline in undergraduate student enrollments and an increase in scholarships due to the challenging economic environment , persistent unemployment and heightened competition . the business , technology and management segment is comprised solely of devry university . key trends in enrollment and tuition pricing are set forth below . undergraduate new student enrollment by term : decreased by 33.8 % from july 2010 ( 13,627 students ) to july 2011 ( 9,026 students ) ; decreased by 28.4 % from september 2010 ( 10,060 students ) to september 2011 ( 7,200 students ) ; decreased by 19.8 % from november 2010 ( 8,092 students ) to november 2011 ( 6,488 students ) ; decreased by 22.5 % from january 2011 ( 7,217 students ) to january 2012 ( 5,593 students ) ; decreased by 17.3 % from march 2011 ( 7,898 students ) to march 2012 ( 6,533 students ) : and decreased by 14.3 % from may 2011 ( 6,690 students ) to may 2012 ( 5,730 students ) . undergraduate total student enrollment by term : decreased by 6.5 % from july 2010 ( 64,155 students ) to july 2011 ( 59,966 students ) ; decreased by 9.9 % from september 2010 ( 73,153 students ) to september 2011 ( 65,933 students ) ; decreased by 13.3 % from november 2010 ( 69,307 students ) to november 2011 ( 60,103 students ) ; decreased by 14.9 % from january 2011 ( 73,339 students ) to january 2012 ( 62,435 students ) ; decreased by 15.5 % from march 2011 ( 67,374 students ) to march 2012 ( 56,958 students ) : and decreased by 14.7 % from may 2011 ( 70,393 students ) to may 2012 ( 60,044 students ) . graduate coursetaker enrollment , including the keller graduate school of management : the term “coursetaker” refers to the number of courses taken by a student . thus , one student taking two courses is counted as two coursetakers . increased by 1.9 % from the july 2010 session ( 21,165 coursetakers ) to the july 2011 session ( 21,576 coursetakers ) ; 51 increased by 2.3 % from the september 2010 session ( 23,389 coursetakers ) to the september 2011 session ( 23,937 coursetakers ) ; increased by 0.3 % from the november 2010 session ( 23,199 coursetakers ) to the november 2011 session ( 23,264 coursetakers ) ; decreased by 3.0 % from the january 2011 session ( 24,784 coursetakers ) to the january 2012 session ( 24,029 coursetakers ) ; decreased by 4.3 % from the march 2011 session ( 24,406 coursetakers ) to the march 2012 session ( 23,366 coursetakers ) ; and decreased by 4.5 % from the may 2011 session ( 23,802 coursetakers ) to the may 2012 session ( 22,732 coursetakers ) . tuition rates : effective with the summer 2011 term , devry university 's u.s. undergraduate tuition is $ 597 per credit hour for students enrolling in 1 to 11 credit hours . story_separator_special_tag the increase was the combined result of decreased operating leverage from declining enrollments and incremental investments , which include advertising , student services and home office support personnel . asset impairment charge during fiscal year 2012 , devry recorded non-cash asset impairments totaling $ 94.4 million , which were comprised of $ 75.0 million related to its carrington reporting unit and $ 19.4 million relating to its advanced academics reporting unit . in the second quarter of fiscal year 2012 , revenues and operating income for devry 's carrington colleges group reporting unit were significantly below management 's expectations driven primarily by a larger than expected decline in new student enrollments . carrington 's revenue declined 27 % during the second quarter as compared to the prior year . as a result of the significant decrease in revenue , carrington generated an operating loss in the second quarter as compared to operating income in the year-ago period . to improve carrington 's financial results , management is executing a turn-around plan which includes which includes increasing its focus on building carrington 's brand awareness , optimizing its marketing approach to emphasize the development of internally-generated inquiries , and improving its recruiting process through its new student contact center . carrington is also making additional investments in its website interface and admissions processes to better serve prospective students . though management believes its planned business and operational strategies will reverse this negative trend there is increased uncertainty as to the timing of this reversal . accordingly , management revised its forecast and future cash flow projections for carrington , and performed an interim impairment analysis . as a result , during the second quarter of fiscal year 2012 , devry recorded a non-cash asset impairment charge of $ 75 million related to its carrington reporting unit . at advanced academics , revenue was significantly below management 's expectation during the fourth quarter of fiscal year 2012 , as a result of decreased funding for large school districts served by advanced academics . advanced academics revenue declined 46.4 % during the fourth quarter of fiscal year 2012 and the reporting unit generated an operating loss of $ 5.0 million as compared to operating income of $ 2.1 million in the year-ago quarter . as a result of the decline in revenue and in connection with devry 's annual impairment analysis , management revised its forecast and future cash flow projections for advanced academics , which resulted in an estimated fair market value which was below its book value . as a result , devry recorded a non-cash asset impairment charge of $ 19.4 million . see note 8 to the consolidated financial statements in this annual report on form 10-k for the year ended june 30 , 2012 , for additional disclosure on the impairment analyses . 56 restructuring charge during the fourth quarter of fiscal 2012 , devry implemented an involuntary reduction in force ( rif ) that reduced its workforce by approximately 570 positions across all reporting units . this resulted in a pre-tax charge of approximately $ 7.1 million that primarily represented severance pay and benefits for these employees . this was allocated to the segments as follows : $ 5.0 million to business technology and management , $ 2.0 million to medical and healthcare and $ 0.1 million to international , k-12 and professional education . cash payments for the severance charges and restructuring charges were approximately $ 1.4 million for the year ended june 30 , 2012. the remaining $ 5.7 is accrued as of june 30 , 2012 , and is expected to be paid by the end of the second quarter of fiscal 2013. operating income total consolidated operating income for fiscal year 2012 of $ 204.2 million decreased $ 289.9 million , or 58.7 % , as compared to the prior year . the largest driver of the decline in operating income during fiscal year 2012 was $ 94.4 million non-cash asset impairment charge . in addition , revenue declines at devry university , carrington colleges , advanced academics and the restructuring charge also contributed to the decline in operating income . operating income decreased within all three of devry 's respective segments . business , technology and management business , technology and management segment operating income decreased 44.0 % to $ 201.1 million during fiscal year 2012 , as compared to the prior year . the decrease in operating income was the result of lower revenue and decreased operating leverage and a restructuring charge of $ 5.0 million ( as discussed earlier ) . management continues to mitigate the effects of this challenging environment by aligning its cost structure with student enrollments while also targeting investments in growth initiatives such as new programs . medical and healthcare medical and healthcare segment operating income decreased 91.0 % to $ 9.6 million during fiscal year 2012 as compared to the prior year . the decrease in operating income was the result of an operating loss at carrington and an asset impairment charge of $ 75.0 million ( as discussed earlier ) , which was partially offset by an increase in operating income at both chamberlain and ross university schools of medicine and veterinary medicine and the incremental contribution to operating income from auc . carrington generated an operating loss of as compared to operating income of in fiscal year 2011 , as a result of lower student enrollments as compared to the year ago period , partially offset by cost reduction measures . excluding the asset impairment and restructuring charges , the medical and healthcare segment operating income declined 19.0 % to $ 86.6 million during fiscal year 2012. international , k-12 and professional education international , k-12 and professional education segment operating income decreased 89.3 % to $ 3.5 million during fiscal year 2012 as compared to the prior year . the decrease in operating income was the result of an operating loss and

cash from operations cash generated from operations in fiscal year 2012 was $ 277.4 million , compared to $ 408.0 million in the prior year period . cash flow from operations decreased $ 188.4 million due to lower net income compared to fiscal 2011. this was partially offset by $ 94.4 million in non-cash impairment charges included in net income in fiscal 2012. in addition , cash flow from operations decreased $ 5.1 million compared to the prior year as a result of an increase in accounts receivable , net of related reserves , which resulted from higher revenues in the medical and healthcare and international , k-12 and professional education segments . the change in net deferred income tax liabilities resulted in a $ 34.1 million reduction in operating cash flows compared to the prior year . an increase in net gains on the sale and disposition of assets resulted in an additional $ 3.0 million reduction to operating cash flows compared to the prior year . in addition , cash flow from operations decreased by $ 34.8 million compared to fiscal 2012 from a larger use of cash compared to the prior year for changes in levels of prepaid expenses , accounts payable and accrued expenses . variations in the levels of accrued and prepaid expenses and accounts payable from period to period are caused , in part , by the timing of the period-end relative to devry 's payroll and bill payment cycles . these decreases in operating cash flows were partially offset by smaller decreases in the effects of changes in deferred tuition revenue and advanced tuition payments of $ 6.0 million as compared to the prior year . also , an increase in non-cash expenses for depreciation , amortization and stock-based compensation resulted in a $ 28.7 million greater source of cash compared to the prior year . investing activities capital expenditures in fiscal year 2012 were $ 129.1 million compared to $ 135.7 million in the year-ago period .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```cash from operations cash generated from operations in fiscal year 2012 was $ 277.4 million , compared to $ 408.0 million in the prior year period . cash flow from operations decreased $ 188.4 million due to lower net income compared to fiscal 2011. this was partially offset by $ 94.4 million in non-cash impairment charges included in net income in fiscal 2012. in addition , cash flow from operations decreased $ 5.1 million compared to the prior year as a result of an increase in accounts receivable , net of related reserves , which resulted from higher revenues in the medical and healthcare and international , k-12 and professional education segments . the change in net deferred income tax liabilities resulted in a $ 34.1 million reduction in operating cash flows compared to the prior year . an increase in net gains on the sale and disposition of assets resulted in an additional $ 3.0 million reduction to operating cash flows compared to the prior year . in addition , cash flow from operations decreased by $ 34.8 million compared to fiscal 2012 from a larger use of cash compared to the prior year for changes in levels of prepaid expenses , accounts payable and accrued expenses . variations in the levels of accrued and prepaid expenses and accounts payable from period to period are caused , in part , by the timing of the period-end relative to devry 's payroll and bill payment cycles . these decreases in operating cash flows were partially offset by smaller decreases in the effects of changes in deferred tuition revenue and advanced tuition payments of $ 6.0 million as compared to the prior year . also , an increase in non-cash expenses for depreciation , amortization and stock-based compensation resulted in a $ 28.7 million greater source of cash compared to the prior year . investing activities capital expenditures in fiscal year 2012 were $ 129.1 million compared to $ 135.7 million in the year-ago period . ``` Suspicious Activity Report : the following table illustrates the effects of the impairment charges , restructuring charge and gain on the sale of assets on devry 's earnings . management believes that the non-gaap disclosure of net income and earnings per share excluding these discrete items provides investors with useful supplemental information regarding the underlying business trends and performance of devry 's ongoing operations and is useful for period-over-period comparisons of such operations given the discrete nature of the impairment and restructuring charges and gain on the sale of assets . devry uses these supplemental financial measures internally in its management and budgeting process . however , these non-gaap financial measures should be viewed in addition to , and not as a substitute for , devry 's reported results prepared in accordance with gaap . the following table reconciles these non-gaap measures to the most directly comparable gaap information ( in thousands , except per share data ) : replace_table_token_17_th results of operations the following table presents information with respect to the relative size to revenue of each item in the consolidated statements of income for the current and prior two fiscal years . percentages may not add because of rounding . replace_table_token_18_th 50 fiscal year ended june 30 , 2012 vs. fiscal year ended june 30 , 2011 revenues total consolidated revenues for fiscal year 2012 of $ 2,089.8 million decreased $ 92.6 million , or 4.2 % , as compared to last year . revenues decreased within devry 's business , technology and management segment as a result of a decline in student enrollments and an increase in scholarships due to the challenging economic environment , persistent unemployment and heightened competition . this decrease was partially offset by revenue increases within devry 's medical and healthcare and international , k-12 and professional education segments as a result of growth in total student enrollments , improved student retention and tuition price increases . in addition , auc , which was acquired on august 3 , 2011 , and fbv , which was acquired on february 29 , 2012 contributed to offsetting the revenue decline during fiscal year 2012. management expects that total revenues will be slightly down for fiscal year 2013 as compared to fiscal year 2012 , driven largely by the impact from declines in new student enrollments within devry university and carrington experienced in fiscal year 2012 , partially offset by anticipated revenue growth within devry 's other educational institutions . management believes that fiscal years 2014 through 2016 will represent a period of recovery and growth for devry , assuming modest enrollment growth at devry university , a recovery of enrollments within carrington , and continued growth within devry 's other educational institutions . business , technology and management during fiscal year 2012 , business , technology and management segment revenues decreased 10.7 % to $ 1,303.6 million as compared to the year-ago period as a result of a decline in undergraduate student enrollments and an increase in scholarships due to the challenging economic environment , persistent unemployment and heightened competition . the business , technology and management segment is comprised solely of devry university . key trends in enrollment and tuition pricing are set forth below . undergraduate new student enrollment by term : decreased by 33.8 % from july 2010 ( 13,627 students ) to july 2011 ( 9,026 students ) ; decreased by 28.4 % from september 2010 ( 10,060 students ) to september 2011 ( 7,200 students ) ; decreased by 19.8 % from november 2010 ( 8,092 students ) to november 2011 ( 6,488 students ) ; decreased by 22.5 % from january 2011 ( 7,217 students ) to january 2012 ( 5,593 students ) ; decreased by 17.3 % from march 2011 ( 7,898 students ) to march 2012 ( 6,533 students ) : and decreased by 14.3 % from may 2011 ( 6,690 students ) to may 2012 ( 5,730 students ) . undergraduate total student enrollment by term : decreased by 6.5 % from july 2010 ( 64,155 students ) to july 2011 ( 59,966 students ) ; decreased by 9.9 % from september 2010 ( 73,153 students ) to september 2011 ( 65,933 students ) ; decreased by 13.3 % from november 2010 ( 69,307 students ) to november 2011 ( 60,103 students ) ; decreased by 14.9 % from january 2011 ( 73,339 students ) to january 2012 ( 62,435 students ) ; decreased by 15.5 % from march 2011 ( 67,374 students ) to march 2012 ( 56,958 students ) : and decreased by 14.7 % from may 2011 ( 70,393 students ) to may 2012 ( 60,044 students ) . graduate coursetaker enrollment , including the keller graduate school of management : the term “coursetaker” refers to the number of courses taken by a student . thus , one student taking two courses is counted as two coursetakers . increased by 1.9 % from the july 2010 session ( 21,165 coursetakers ) to the july 2011 session ( 21,576 coursetakers ) ; 51 increased by 2.3 % from the september 2010 session ( 23,389 coursetakers ) to the september 2011 session ( 23,937 coursetakers ) ; increased by 0.3 % from the november 2010 session ( 23,199 coursetakers ) to the november 2011 session ( 23,264 coursetakers ) ; decreased by 3.0 % from the january 2011 session ( 24,784 coursetakers ) to the january 2012 session ( 24,029 coursetakers ) ; decreased by 4.3 % from the march 2011 session ( 24,406 coursetakers ) to the march 2012 session ( 23,366 coursetakers ) ; and decreased by 4.5 % from the may 2011 session ( 23,802 coursetakers ) to the may 2012 session ( 22,732 coursetakers ) . tuition rates : effective with the summer 2011 term , devry university 's u.s. undergraduate tuition is $ 597 per credit hour for students enrolling in 1 to 11 credit hours . story_separator_special_tag the increase was the combined result of decreased operating leverage from declining enrollments and incremental investments , which include advertising , student services and home office support personnel . asset impairment charge during fiscal year 2012 , devry recorded non-cash asset impairments totaling $ 94.4 million , which were comprised of $ 75.0 million related to its carrington reporting unit and $ 19.4 million relating to its advanced academics reporting unit . in the second quarter of fiscal year 2012 , revenues and operating income for devry 's carrington colleges group reporting unit were significantly below management 's expectations driven primarily by a larger than expected decline in new student enrollments . carrington 's revenue declined 27 % during the second quarter as compared to the prior year . as a result of the significant decrease in revenue , carrington generated an operating loss in the second quarter as compared to operating income in the year-ago period . to improve carrington 's financial results , management is executing a turn-around plan which includes which includes increasing its focus on building carrington 's brand awareness , optimizing its marketing approach to emphasize the development of internally-generated inquiries , and improving its recruiting process through its new student contact center . carrington is also making additional investments in its website interface and admissions processes to better serve prospective students . though management believes its planned business and operational strategies will reverse this negative trend there is increased uncertainty as to the timing of this reversal . accordingly , management revised its forecast and future cash flow projections for carrington , and performed an interim impairment analysis . as a result , during the second quarter of fiscal year 2012 , devry recorded a non-cash asset impairment charge of $ 75 million related to its carrington reporting unit . at advanced academics , revenue was significantly below management 's expectation during the fourth quarter of fiscal year 2012 , as a result of decreased funding for large school districts served by advanced academics . advanced academics revenue declined 46.4 % during the fourth quarter of fiscal year 2012 and the reporting unit generated an operating loss of $ 5.0 million as compared to operating income of $ 2.1 million in the year-ago quarter . as a result of the decline in revenue and in connection with devry 's annual impairment analysis , management revised its forecast and future cash flow projections for advanced academics , which resulted in an estimated fair market value which was below its book value . as a result , devry recorded a non-cash asset impairment charge of $ 19.4 million . see note 8 to the consolidated financial statements in this annual report on form 10-k for the year ended june 30 , 2012 , for additional disclosure on the impairment analyses . 56 restructuring charge during the fourth quarter of fiscal 2012 , devry implemented an involuntary reduction in force ( rif ) that reduced its workforce by approximately 570 positions across all reporting units . this resulted in a pre-tax charge of approximately $ 7.1 million that primarily represented severance pay and benefits for these employees . this was allocated to the segments as follows : $ 5.0 million to business technology and management , $ 2.0 million to medical and healthcare and $ 0.1 million to international , k-12 and professional education . cash payments for the severance charges and restructuring charges were approximately $ 1.4 million for the year ended june 30 , 2012. the remaining $ 5.7 is accrued as of june 30 , 2012 , and is expected to be paid by the end of the second quarter of fiscal 2013. operating income total consolidated operating income for fiscal year 2012 of $ 204.2 million decreased $ 289.9 million , or 58.7 % , as compared to the prior year . the largest driver of the decline in operating income during fiscal year 2012 was $ 94.4 million non-cash asset impairment charge . in addition , revenue declines at devry university , carrington colleges , advanced academics and the restructuring charge also contributed to the decline in operating income . operating income decreased within all three of devry 's respective segments . business , technology and management business , technology and management segment operating income decreased 44.0 % to $ 201.1 million during fiscal year 2012 , as compared to the prior year . the decrease in operating income was the result of lower revenue and decreased operating leverage and a restructuring charge of $ 5.0 million ( as discussed earlier ) . management continues to mitigate the effects of this challenging environment by aligning its cost structure with student enrollments while also targeting investments in growth initiatives such as new programs . medical and healthcare medical and healthcare segment operating income decreased 91.0 % to $ 9.6 million during fiscal year 2012 as compared to the prior year . the decrease in operating income was the result of an operating loss at carrington and an asset impairment charge of $ 75.0 million ( as discussed earlier ) , which was partially offset by an increase in operating income at both chamberlain and ross university schools of medicine and veterinary medicine and the incremental contribution to operating income from auc . carrington generated an operating loss of as compared to operating income of in fiscal year 2011 , as a result of lower student enrollments as compared to the year ago period , partially offset by cost reduction measures . excluding the asset impairment and restructuring charges , the medical and healthcare segment operating income declined 19.0 % to $ 86.6 million during fiscal year 2012. international , k-12 and professional education international , k-12 and professional education segment operating income decreased 89.3 % to $ 3.5 million during fiscal year 2012 as compared to the prior year . the decrease in operating income was the result of an operating loss and

86 by inhibiting srebp , a master regulator of lipid metabolism in the body , cat-2054 has the potential to significantly reduce low-density lipoprotein cholesterol , or ldl-c ; it may also have beneficial effects on other metabolic parameters such as triglycerides , glucose and liver fat . this profile may differentiate cat-2054 from currently approved therapies for hypercholesterolemia and others in development . we are developing cat-2054 to be used in addition to statins in patients who can not achieve their ldl-c goals with statins alone . we initiated a phase 2a trial in patients with hypercholesterolemia in december 2015 , which is ongoing . we anticipate that we will report top-line data from the phase 2a trial in the third quarter of 2016. additionally , we are currently conducting studies and have generated positive data in preclinical models that support the therapeutic potential of the cat-2000 series in nonalcoholic steatohepatitis , or nash . cat-4001 is a smart linker conjugate of monomethyl fumarate and dha . cat-4001 is a small molecule that activates nrf2 and inhibits nf- k b , or nuclear factor kappa-light chain enhancer of activated b cells , that we are developing as a potential treatment for neurodegenerative diseases such as friedreich 's ataxia and amyotrophic lateral sclerosis , or als . nrf2 , or nuclear factor ( erythroid-derived 2 ) -like 2 , is a gene transcription factor , a protein that works inside of cells to control the expression of genes , that controls the body 's response to cellular stress and oxidative damage . the nrf2 and nf- k b pathways have been implicated in friedreich 's ataxia and als . we plan to conduct investigational new drug application , or ind , enabling studies in 2016 for cat-4001 . we hold rights to cat-4001 throughout the world . since our inception in june 2008 , we have devoted substantially all of our resources to developing our proprietary platform technology , identifying potential product candidates , undertaking preclinical studies and conducting clinical trials for our three clinical-stage compounds , building our intellectual property portfolio , organizing and staffing our company , business planning , raising capital , and providing general and administrative support for these operations . to date , we have primarily financed our operations through private placements of our preferred stock , a secured debt financing , and our ipo . from our inception through december 31 , 2015 , we had raised an aggregate of $ 172.2 million , of which $ 92.9 million was from private placements of preferred stock , $ 69.0 million represented in gross proceeds from our ipo , $ 10.0 million was from a secured debt financing and $ 0.3 million was from common stock option exercises . in june 2015 , we completed our ipo , in which we sold an aggregate of 5,750,000 shares of our common stock , including 750,000 shares of common stock sold pursuant to the underwriters ' exercise of their option to purchase additional shares of common stock , at a price to the public of $ 12.00 per share . net proceeds from the ipo were $ 61.7 million , after deducting underwriting discounts , commissions and offering-related expenses of approximately $ 7.3 million . in connection with our ipo , all shares of our preferred stock were automatically converted into an aggregate of 9,029,549 shares of our common stock and our outstanding warrants to purchase 315,688 shares of preferred stock were automatically converted into warrants to purchase 24,566 shares of common stock . in connection with the ipo , we also effected a one-for-12.85 reverse split of our common stock . all share , share equivalent and per share amounts presented herein have been adjusted to reflect the reverse stock split . the ratios by which shares of preferred stock are convertible into shares of common stock have been adjusted to reflect the effects of the reverse stock split . we have not generated any revenue to date . we have incurred significant annual net operating losses in every year since our inception and expect to incur a net operating loss in 2015 and continue to incur net operating losses for the foreseeable future . as of december 31 , 2015 , we had an accumulated deficit of $ 108.0 million . we expect to continue to incur significant expenses and increasing operating losses for the next several years . our net losses may fluctuate significantly from quarter to quarter and year to year . we anticipate that our expenses will increase significantly if and as we continue to develop 87 and conduct clinical trials with respect to our cat-1004 and cat-2054 product candidates ; initiate and continue research , preclinical and clinical development efforts for our other product candidates and potential product candidates ; maintain , expand and protect our intellectual property portfolio ; establish a commercial infrastructure to support the marketing and sale of certain of our product candidates ; hire additional personnel , such as clinical , regulatory , quality control and scientific personnel ; and operate as a public company . financial overview revenue to date , we have not generated any revenue from product sales or any other source and do not expect to generate any revenue from the sale of products in the near future . in the future , we will seek to generate revenue primarily from a combination of product sales and collaborations with strategic partners . story_separator_special_tag the risk-free interest rates for periods within the expected life of the option were based on the u.s. treasury yield curve in effect during the period the options were granted . we are also required to estimate forfeitures at the time of grant , and revise those estimates in subsequent periods if actual forfeitures differ from our estimates . we use historical data to estimate pre-vesting option forfeitures and record stock-based compensation expense only for those awards that are expected to vest . to the extent that actual forfeitures differ from our estimates , the difference is recorded as a cumulative adjustment in the period the estimates were revised . stock-based compensation expense recognized in the financial statements is based on awards that are ultimately expected to vest . we have computed the fair value of employee , director , consultant and advisor stock options at date of grant using the following weighted-average assumptions : replace_table_token_7_th prior to our ipo , the estimated fair value of our common stock was determined contemporaneously by our board of directors based on valuation estimates provided by management and prepared in accordance with the framework of the american institute of certified public accountants ' technical practice aid , valuation of privately-held-company equity securities issued as compensation . certain of these valuation estimates were prepared with the assistance of a third-party specialist . our contemporaneous valuations of our common stock were based on a number of objective and subjective factors , including external market conditions affecting the biotechnology industry sector and the prices at which we sold shares of preferred stock , the superior rights and preferences of securities senior to our common stock at the time of each grant and the likelihood of achieving a liquidity event such as an ipo . 93 the following table summarizes the classification of our stock-based compensation expense recognized in our statements of operations ( in thousands ) : replace_table_token_8_th results of operations comparison of the years ended december 31 , 2015 and 2014 the following table summarizes our results of operations for the years ended december 31 , 2015 and 2014 , together with the dollar change in those items ( in thousands ) : replace_table_token_9_th research and development expenses research and development expenses increased by $ 7.3 million to $ 23.0 million for the year ended december 31 , 2015 from $ 15.7 million for the year ended december 31 , 2014 , an increase of 46 % . the increase in research and development expenses was primarily attributable to a net increase of $ 5.7 million in direct program costs , reflecting an increase of $ 5.2 million in costs related to cat-1004 primarily related to the movedmd phase 1/2 clinical trial , and a net increase of $ 0.5 million in costs related to our other programs . in addition , the costs related to internal research and development increased by $ 1.6 million , $ 0.8 million of which was attributable to compensation increases for new hires , $ 0.4 million of which was attributable to obligations under a letter agreement with a former employee , pursuant to which we agreed to make severance payments , $ 0.3 million of which was attributable to increases in consulting and professional services , and $ 0.1 million of which was attributable to increased facilities expense . general and administrative expenses general and administrative expenses increased by $ 2.6 million to $ 8.6 million for the year ended december 31 , 2015 from $ 6.0 million for the year ended december 31 , 2014 , an increase of 43 % . the increase in general and administrative expenses was primarily attributable to increased employee costs of $ 1.4 million associated with salaries , benefits , and stock-based compensation expenses for new hires ; increased consulting and professional fees and franchise taxes of $ 0.8 million , driven by the costs of becoming and operating as a public company ; increased insurance expense of $ 0.3 million due to our public company directors and officers insurance policy ; and increased facilities expense of $ 0.1 million . 94 other expense , net other expense , net increased by $ 0.8 million to $ 1.0 million for the year ended december 31 , 2015 from $ 0.2 million for the year ended december 31 , 2014. other expense primarily consists of interest expense , which increased by $ 0.8 million for the year ended december 31 , 2015 due to the interest expense on our credit facility , which we entered into in august 2014. comparison of the years ended december 31 , 2014 and 2013 the following table summarizes our results of operations for the years ended december 31 , 2014 and 2013 , together with the dollar change in those items ( in thousands ) : replace_table_token_10_th research and development expense research and development expenses increased by $ 1.7 million to $ 15.7 million for the year ended december 31 , 2014 from $ 14.0 million for the year ended december 31 , 2013 , an increase of 12 % . the increase in research and development expenses was partially attributable to a net increase of $ 1.0 million in direct program costs , reflecting an increase of $ 2.6 million for cat-2054 manufacturing and preclinical development costs associated with ind-enabling studies , an increase of $ 0.8 million for cat-1004 manufacturing and preclinical development costs , and an increase of $ 0.6 million in our general research and platform programs , which were partially offset by a decrease of $ 3.0 million in cat-2003 clinical trial , manufacturing and preclinical development costs due to the completion of two phase 2 clinical trials in late 2013 and early 2014. in addition , the costs related to internal research and development increased by $ 0.7 million , primarily attributable to stock-based compensation expense . general and administrative expense general and administrative expenses increased by $ 1.9 million

cash flows comparison of the year ended december 31 , 2015 and 2014 the following table provides information regarding our cash flows for the year ended december 31 , 2015 and 2014 ( in thousands ) : replace_table_token_11_th net cash used in operating activities net cash used in operating activities was $ 29.8 million for the year ended december 31 , 2015 and consisted primarily of a net loss of $ 32.6 million adjusted for non-cash items , including stock-based compensation expense of $ 1.7 million , non-cash interest expense of $ 0.3 million and depreciation and amortization expense of $ 0.2 million , and a net decrease in operating assets of $ 0.6 million , which resulted primarily from an increase in accrued expenses of $ 0.9 million and an increase in accounts payable of $ 0.2 million , partially offset by an increase in prepaid expenses and other current assets of $ 0.5 million . 98 net cash used in operating activities was $ 20.4 million for the year ended december 31 , 2014 and consisted primarily of a net loss of $ 21.9 million adjusted for non-cash items , including stock-based compensation expense of $ 0.9 million and depreciation and amortization expense of $ 0.3 million , and a net decrease in operating assets of $ 0.3 million , which resulted primarily from a net increase in accounts payable and accrued expenses of $ 0.5 million , partially offset by an increase in prepaid expenses and other current assets of $ 0.2 million . net cash used in investing activities net cash used in investing activities was $ 0.4 million during the year ended december 31 , 2015 compared to $ 0.2 million during the year ended december 31 , 2014 , an increase of $ 0.2 million , which primarily resulted from leasehold improvements pursuant to expanding our leased office space .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 comparison of the year ended december 31 , 2015 and 2014 the following table provides information regarding our cash flows for the year ended december 31 , 2015 and 2014 ( in thousands ) : replace_table_token_11_th net cash used in operating activities net cash used in operating activities was $ 29.8 million for the year ended december 31 , 2015 and consisted primarily of a net loss of $ 32.6 million adjusted for non-cash items , including stock-based compensation expense of $ 1.7 million , non-cash interest expense of $ 0.3 million and depreciation and amortization expense of $ 0.2 million , and a net decrease in operating assets of $ 0.6 million , which resulted primarily from an increase in accrued expenses of $ 0.9 million and an increase in accounts payable of $ 0.2 million , partially offset by an increase in prepaid expenses and other current assets of $ 0.5 million . 98 net cash used in operating activities was $ 20.4 million for the year ended december 31 , 2014 and consisted primarily of a net loss of $ 21.9 million adjusted for non-cash items , including stock-based compensation expense of $ 0.9 million and depreciation and amortization expense of $ 0.3 million , and a net decrease in operating assets of $ 0.3 million , which resulted primarily from a net increase in accounts payable and accrued expenses of $ 0.5 million , partially offset by an increase in prepaid expenses and other current assets of $ 0.2 million . net cash used in investing activities net cash used in investing activities was $ 0.4 million during the year ended december 31 , 2015 compared to $ 0.2 million during the year ended december 31 , 2014 , an increase of $ 0.2 million , which primarily resulted from leasehold improvements pursuant to expanding our leased office space . ``` Suspicious Activity Report : 86 by inhibiting srebp , a master regulator of lipid metabolism in the body , cat-2054 has the potential to significantly reduce low-density lipoprotein cholesterol , or ldl-c ; it may also have beneficial effects on other metabolic parameters such as triglycerides , glucose and liver fat . this profile may differentiate cat-2054 from currently approved therapies for hypercholesterolemia and others in development . we are developing cat-2054 to be used in addition to statins in patients who can not achieve their ldl-c goals with statins alone . we initiated a phase 2a trial in patients with hypercholesterolemia in december 2015 , which is ongoing . we anticipate that we will report top-line data from the phase 2a trial in the third quarter of 2016. additionally , we are currently conducting studies and have generated positive data in preclinical models that support the therapeutic potential of the cat-2000 series in nonalcoholic steatohepatitis , or nash . cat-4001 is a smart linker conjugate of monomethyl fumarate and dha . cat-4001 is a small molecule that activates nrf2 and inhibits nf- k b , or nuclear factor kappa-light chain enhancer of activated b cells , that we are developing as a potential treatment for neurodegenerative diseases such as friedreich 's ataxia and amyotrophic lateral sclerosis , or als . nrf2 , or nuclear factor ( erythroid-derived 2 ) -like 2 , is a gene transcription factor , a protein that works inside of cells to control the expression of genes , that controls the body 's response to cellular stress and oxidative damage . the nrf2 and nf- k b pathways have been implicated in friedreich 's ataxia and als . we plan to conduct investigational new drug application , or ind , enabling studies in 2016 for cat-4001 . we hold rights to cat-4001 throughout the world . since our inception in june 2008 , we have devoted substantially all of our resources to developing our proprietary platform technology , identifying potential product candidates , undertaking preclinical studies and conducting clinical trials for our three clinical-stage compounds , building our intellectual property portfolio , organizing and staffing our company , business planning , raising capital , and providing general and administrative support for these operations . to date , we have primarily financed our operations through private placements of our preferred stock , a secured debt financing , and our ipo . from our inception through december 31 , 2015 , we had raised an aggregate of $ 172.2 million , of which $ 92.9 million was from private placements of preferred stock , $ 69.0 million represented in gross proceeds from our ipo , $ 10.0 million was from a secured debt financing and $ 0.3 million was from common stock option exercises . in june 2015 , we completed our ipo , in which we sold an aggregate of 5,750,000 shares of our common stock , including 750,000 shares of common stock sold pursuant to the underwriters ' exercise of their option to purchase additional shares of common stock , at a price to the public of $ 12.00 per share . net proceeds from the ipo were $ 61.7 million , after deducting underwriting discounts , commissions and offering-related expenses of approximately $ 7.3 million . in connection with our ipo , all shares of our preferred stock were automatically converted into an aggregate of 9,029,549 shares of our common stock and our outstanding warrants to purchase 315,688 shares of preferred stock were automatically converted into warrants to purchase 24,566 shares of common stock . in connection with the ipo , we also effected a one-for-12.85 reverse split of our common stock . all share , share equivalent and per share amounts presented herein have been adjusted to reflect the reverse stock split . the ratios by which shares of preferred stock are convertible into shares of common stock have been adjusted to reflect the effects of the reverse stock split . we have not generated any revenue to date . we have incurred significant annual net operating losses in every year since our inception and expect to incur a net operating loss in 2015 and continue to incur net operating losses for the foreseeable future . as of december 31 , 2015 , we had an accumulated deficit of $ 108.0 million . we expect to continue to incur significant expenses and increasing operating losses for the next several years . our net losses may fluctuate significantly from quarter to quarter and year to year . we anticipate that our expenses will increase significantly if and as we continue to develop 87 and conduct clinical trials with respect to our cat-1004 and cat-2054 product candidates ; initiate and continue research , preclinical and clinical development efforts for our other product candidates and potential product candidates ; maintain , expand and protect our intellectual property portfolio ; establish a commercial infrastructure to support the marketing and sale of certain of our product candidates ; hire additional personnel , such as clinical , regulatory , quality control and scientific personnel ; and operate as a public company . financial overview revenue to date , we have not generated any revenue from product sales or any other source and do not expect to generate any revenue from the sale of products in the near future . in the future , we will seek to generate revenue primarily from a combination of product sales and collaborations with strategic partners . story_separator_special_tag the risk-free interest rates for periods within the expected life of the option were based on the u.s. treasury yield curve in effect during the period the options were granted . we are also required to estimate forfeitures at the time of grant , and revise those estimates in subsequent periods if actual forfeitures differ from our estimates . we use historical data to estimate pre-vesting option forfeitures and record stock-based compensation expense only for those awards that are expected to vest . to the extent that actual forfeitures differ from our estimates , the difference is recorded as a cumulative adjustment in the period the estimates were revised . stock-based compensation expense recognized in the financial statements is based on awards that are ultimately expected to vest . we have computed the fair value of employee , director , consultant and advisor stock options at date of grant using the following weighted-average assumptions : replace_table_token_7_th prior to our ipo , the estimated fair value of our common stock was determined contemporaneously by our board of directors based on valuation estimates provided by management and prepared in accordance with the framework of the american institute of certified public accountants ' technical practice aid , valuation of privately-held-company equity securities issued as compensation . certain of these valuation estimates were prepared with the assistance of a third-party specialist . our contemporaneous valuations of our common stock were based on a number of objective and subjective factors , including external market conditions affecting the biotechnology industry sector and the prices at which we sold shares of preferred stock , the superior rights and preferences of securities senior to our common stock at the time of each grant and the likelihood of achieving a liquidity event such as an ipo . 93 the following table summarizes the classification of our stock-based compensation expense recognized in our statements of operations ( in thousands ) : replace_table_token_8_th results of operations comparison of the years ended december 31 , 2015 and 2014 the following table summarizes our results of operations for the years ended december 31 , 2015 and 2014 , together with the dollar change in those items ( in thousands ) : replace_table_token_9_th research and development expenses research and development expenses increased by $ 7.3 million to $ 23.0 million for the year ended december 31 , 2015 from $ 15.7 million for the year ended december 31 , 2014 , an increase of 46 % . the increase in research and development expenses was primarily attributable to a net increase of $ 5.7 million in direct program costs , reflecting an increase of $ 5.2 million in costs related to cat-1004 primarily related to the movedmd phase 1/2 clinical trial , and a net increase of $ 0.5 million in costs related to our other programs . in addition , the costs related to internal research and development increased by $ 1.6 million , $ 0.8 million of which was attributable to compensation increases for new hires , $ 0.4 million of which was attributable to obligations under a letter agreement with a former employee , pursuant to which we agreed to make severance payments , $ 0.3 million of which was attributable to increases in consulting and professional services , and $ 0.1 million of which was attributable to increased facilities expense . general and administrative expenses general and administrative expenses increased by $ 2.6 million to $ 8.6 million for the year ended december 31 , 2015 from $ 6.0 million for the year ended december 31 , 2014 , an increase of 43 % . the increase in general and administrative expenses was primarily attributable to increased employee costs of $ 1.4 million associated with salaries , benefits , and stock-based compensation expenses for new hires ; increased consulting and professional fees and franchise taxes of $ 0.8 million , driven by the costs of becoming and operating as a public company ; increased insurance expense of $ 0.3 million due to our public company directors and officers insurance policy ; and increased facilities expense of $ 0.1 million . 94 other expense , net other expense , net increased by $ 0.8 million to $ 1.0 million for the year ended december 31 , 2015 from $ 0.2 million for the year ended december 31 , 2014. other expense primarily consists of interest expense , which increased by $ 0.8 million for the year ended december 31 , 2015 due to the interest expense on our credit facility , which we entered into in august 2014. comparison of the years ended december 31 , 2014 and 2013 the following table summarizes our results of operations for the years ended december 31 , 2014 and 2013 , together with the dollar change in those items ( in thousands ) : replace_table_token_10_th research and development expense research and development expenses increased by $ 1.7 million to $ 15.7 million for the year ended december 31 , 2014 from $ 14.0 million for the year ended december 31 , 2013 , an increase of 12 % . the increase in research and development expenses was partially attributable to a net increase of $ 1.0 million in direct program costs , reflecting an increase of $ 2.6 million for cat-2054 manufacturing and preclinical development costs associated with ind-enabling studies , an increase of $ 0.8 million for cat-1004 manufacturing and preclinical development costs , and an increase of $ 0.6 million in our general research and platform programs , which were partially offset by a decrease of $ 3.0 million in cat-2003 clinical trial , manufacturing and preclinical development costs due to the completion of two phase 2 clinical trials in late 2013 and early 2014. in addition , the costs related to internal research and development increased by $ 0.7 million , primarily attributable to stock-based compensation expense . general and administrative expense general and administrative expenses increased by $ 1.9 million

based upon the levels of inventory we were carrying before the medical device excise tax was effective , we did not recognize any of the excise tax until the fourth quarter of 2013. the excise tax is derived from a constructive sales price , as defined by u.s. tax law and internal revenue service ( irs ) guidance . prior to the medical device excise tax effective date , the irs issued interim rules ( see irs notice 2012-77 ) that provide , among other things , that medical device manufacturers selling to an affiliated distribution entity may apply a 28.75 % discount off retail selling prices when computing the tax base . we are in discussions with the irs as to what an appropriate constructive sales price should be under irs excise tax regulations and our specific business model . as a result of our discussions with the irs , our ultimate medical device excise tax may differ from the amount determined under notice 2012-77. we estimate the cost in 2014 will be approximately $ 10 million per quarter . since we recognize the medical device excise tax as a part of the cost of inventory , the amount expensed in any particular quarter will vary according to u.s. sales levels in that quarter . we expect to continue making investments in research and development ( r & d ) of between 4 and 4.5 percent of sales in 2014. selling , general and administrative expenses ( sg & a ) as a percentage of sales is expected to be between 38.5 and 39 percent in 2014 as we realize efficiencies from our quality and operational excellence initiatives and further leverage revenue growth . we expect to incur approximately $ 250 million of expenses in 2014 related to our quality and operational excellence initiatives and integration costs from recent acquisitions . the quality and operational excellence programs are intended to improve our future operating results and include centralizing or outsourcing certain functions and improving quality , distribution , sourcing , manufacturing and information technology systems . we expect to recognize the 18 zimmer holdings , inc. 2013 form 10-k annual report majority of these expenses in “special items” on our statement of earnings , but some will be related to inventory and be reflected in costs of products sold . assuming variable interest rates remain at december 31 , 2013 levels , we expect interest income and expense , net , to be similar to 2013. we expect our etr to increase in 2014 relative to 2013 , as we do not anticipate certain significant costs , such as excess and obsolete inventory charges and “certain claims” that were incurred in jurisdictions with higher tax rates , to recur , thus increasing the profit in those higher tax jurisdictions . based upon the above , we expect reported net earnings and diluted earnings per share to increase in a range of approximately 13 to 17 percent in 2014 relative to 2013 , stemming from anticipated higher sales and an improved gross margin . results of operations net sales by reportable segment the following tables present net sales by reportable segment and the components of the percentage changes ( dollars in millions ) : replace_table_token_3_th replace_table_token_4_th “foreign exchange” as used in the tables in this report represents the effect of changes in foreign currency exchange rates on sales growth . net sales by product category the following tables present net sales by product category and the components of the percentage changes ( dollars in millions ) : replace_table_token_5_th replace_table_token_6_th 19 zimmer holdings , inc. 2013 form 10-k annual report beginning in 2013 , our knees product category net sales include certain early intervention products that are primarily used in knee procedures . in 2012 and 2011 , these products were included in the surgical and other product category . net sales in the years ended december 31 , 2012 and 2011 related to these products have been reclassified to conform to the 2013 presentation . the following table presents net sales by product category by region ( dollars in millions ) : replace_table_token_7_th 20 zimmer holdings , inc. 2013 form 10-k annual report demand ( volume and mix ) trends increased volume and changes in the mix of product sales contributed 7 percentage points of year-over-year sales growth in 2013 , which is a higher growth rate than experienced in 2012 compared to 2011. in 2013 , accelerated growth was fueled by the introduction of new products , such as persona the personalized knee system and the transposal fluid waste management system . we believe procedure volumes in the broader musculoskeletal market remained stable or improved slightly in 2013 relative to 2012. we believe long-term indicators point toward sustained growth driven by an aging global population , growth in emerging markets , obesity , proven clinical benefits , new material technologies , advances in surgical techniques and more active lifestyles , among other factors . in addition , demand for clinically proven premium products and patient specific devices will continue to positively affect sales growth in markets that recognize the value in these advanced technologies . pricing trends global selling prices had a negative effect of 2 percent on year-over-year sales during 2013. our americas and europe reporting segments and certain countries in our asia pacific reporting segment continued to experience pricing pressure from governmental healthcare cost containment efforts and from local hospitals and health systems . for 2014 , we estimate that selling prices will decline slightly more than they did in 2013 due to a biennial price adjustment in japan in the second quarter of 2014 along with some moderately weaker pricing in europe . story_separator_special_tag while changes in foreign currency exchange rates decreased sales by 10 percent in 2013 compared to 2012 , this decline was largely offset by hedge gains recorded in 2013 versus hedge losses recorded in 2012. non-gaap operating performance measures we use financial measures that differ from financial measures determined in accordance with gaap to evaluate our operating performance . these non-gaap financial measures exclude the impact of inventory step-up , certain inventory and manufacturing related charges connected to quality enhancement and remediation efforts , inventory obsolescence charges associated with products we intend to discontinue , “certain claims , ” “special items , ” and any related effects on our income tax provision associated with these items in addition to certain other tax adjustments . we use this information internally and believe it is helpful to investors because it allows more meaningful period-to-period comparisons of our ongoing operating results , it helps to perform trend analysis and to better identify operating trends that may otherwise be masked or distorted by these types of items , and it provides a higher degree of transparency of certain items . certain of these non-gaap financial measures are used as metrics for our incentive compensation programs . our non-gaap adjusted net earnings used for internal management purposes for the years ended december 31 , 2013 , 2012 and 2011 were $ 988.4 million , $ 932.5 million , and $ 905.6 million , respectively , and our non-gaap adjusted diluted earnings per share were $ 5.75 , $ 5.30 , and $ 4.80 , respectively . the following are reconciliations from our gaap net earnings and diluted earnings per share to our non-gaap adjusted net earnings and non-gaap adjusted diluted earnings per share used for internal management purposes ( in millions , except per share amounts ) . replace_table_token_10_th * the tax effect is calculated based upon the statutory rates for the jurisdictions where the items were incurred . replace_table_token_11_th * the tax effect is calculated based upon the statutory rates for the jurisdictions where the items were incurred . story_separator_special_tag able to issue new senior notes , we intend to borrow against our senior credit facility to pay these notes . 25 zimmer holdings , inc. 2013 form 10-k annual report we have a five year $ 1,350 million revolving , multi-currency , senior unsecured credit facility maturing may 9 , 2017 ( senior credit facility ) . there were no borrowings outstanding under the senior credit facility at december 31 , 2013. we and certain of our wholly owned foreign subsidiaries are the borrowers under the senior credit facility . borrowings under the senior credit facility bear interest at a libor-based rate plus an applicable margin determined by reference to our senior unsecured long-term credit rating and the amounts drawn under the senior credit facility , at an alternate base rate , or at a fixed-rate determined through a competitive bid process . the senior credit facility contains customary affirmative and negative covenants and events of default for an unsecured financing arrangement , including , among other things , limitations on consolidations , mergers and sales or transfers of assets . financial covenants include a maximum leverage ratio of 3.0 to 1.0. if we fall below an investment grade credit rating , additional restrictions would result , including restrictions on investments , payment of dividends and stock repurchases . we were in compliance with all covenants under the senior credit facility as of december 31 , 2013. commitments under the senior credit facility are subject to certain fees , including a facility fee and a utilization fee . we have a term loan agreement ( term loan ) with one of the lenders under the senior credit facility for 11.7 billion japanese yen that will mature on may 31 , 2016. borrowings under the term loan bear interest at a fixed rate of 0.61 percent per annum until maturity . we also have available uncommitted credit facilities totaling $ 50.7 million . we place our cash and cash equivalents in highly-rated financial institutions and limit the amount of credit exposure to any one entity . we invest only in high-quality financial instruments in accordance with our internal investment policy . as of december 31 , 2013 , we had short-term and long-term investments in debt securities with a fair value of $ 807.7 million . these investments are in debt securities of many different issuers and therefore we believe we have no significant concentration of risk with a single issuer . all of these debt securities remain highly-rated and we believe the risk of default by the issuers is low . as of december 31 , 2013 , $ 891.9 million of our cash and cash equivalents and short-term and long-term investments were held in jurisdictions outside of the u.s. and are expected to be indefinitely reinvested for continued use in foreign operations . repatriation of these assets to the u.s. may have tax consequences . $ 478.8 million of this amount is denominated in u.s. dollars and therefore bears no foreign currency translation risk . the balance of these assets is denominated in currencies of the various countries where we operate . we may use excess cash to repurchase common stock under our share repurchase program . effective january 1 , 2014 , we have a new share repurchase program that authorizes purchases of up to $ 1.0 billion with no expiration date . no further purchases will be made under the previous share repurchase program . management believes that cash flows from operations and available borrowings under the senior credit facility or from the public and private debt markets are sufficient to meet our working capital , capital expenditure and debt service needs , as well as return cash to stockholders in the form of dividends and share repurchases . should investment opportunities arise , we believe that our earnings , balance sheet and cash flows will allow us to obtain

liquidity and capital resources cash flows provided by operating activities were $ 963.1 million in 2013 , compared to $ 1,151.9 million in 2012. the principal source of cash from operating activities in 2013 was net earnings . non-cash charges included in net earnings accounted for another $ 288.8 million of operating cash . all other items of operating cash flows in 2013 were outflows of $ 84.9 million of cash . the lower cash flows provided by operating activities in the 2013 period were primarily due to increases in inventory caused by the medical device excise tax and inventory investments to support new product launches . additionally , cash flows were unfavorable compared to the 24 zimmer holdings , inc. 2013 form 10-k annual report prior year due to spending on our quality and operational excellence initiatives . these unfavorable items were partially offset by lower product liability payments for durom cup claims , and lower funding required on our u.s. pension plans for 2013. at december 31 , 2013 , we had 65 days of sales outstanding in trade accounts receivable , which was higher by one day compared to december 31 , 2012. at december 31 , 2013 , we had 285 days of inventory on hand , a decrease of 16 days compared to december 31 , 2012. we consider the changes in days of sales outstanding and days of inventory on hand as normal fluctuations for our business . cash flows used in investing activities were $ 282.5 million in 2013 , compared to $ 592.1 million in 2012. additions to instruments increased in 2013 due to purchases for significant product launches , such as persona the personalized knee system . spending on other property , plant and equipment was relatively consistent in 2013 relative to 2012 , reflecting cash outlays necessary to complete new product-related investments and replace older machinery and equipment . in 2014 , instrument additions are expected to be in a range of $ 200 to $ 210 million as part of our ongoing launch of persona the personalized knee system .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity and capital resources cash flows provided by operating activities were $ 963.1 million in 2013 , compared to $ 1,151.9 million in 2012. the principal source of cash from operating activities in 2013 was net earnings . non-cash charges included in net earnings accounted for another $ 288.8 million of operating cash . all other items of operating cash flows in 2013 were outflows of $ 84.9 million of cash . the lower cash flows provided by operating activities in the 2013 period were primarily due to increases in inventory caused by the medical device excise tax and inventory investments to support new product launches . additionally , cash flows were unfavorable compared to the 24 zimmer holdings , inc. 2013 form 10-k annual report prior year due to spending on our quality and operational excellence initiatives . these unfavorable items were partially offset by lower product liability payments for durom cup claims , and lower funding required on our u.s. pension plans for 2013. at december 31 , 2013 , we had 65 days of sales outstanding in trade accounts receivable , which was higher by one day compared to december 31 , 2012. at december 31 , 2013 , we had 285 days of inventory on hand , a decrease of 16 days compared to december 31 , 2012. we consider the changes in days of sales outstanding and days of inventory on hand as normal fluctuations for our business . cash flows used in investing activities were $ 282.5 million in 2013 , compared to $ 592.1 million in 2012. additions to instruments increased in 2013 due to purchases for significant product launches , such as persona the personalized knee system . spending on other property , plant and equipment was relatively consistent in 2013 relative to 2012 , reflecting cash outlays necessary to complete new product-related investments and replace older machinery and equipment . in 2014 , instrument additions are expected to be in a range of $ 200 to $ 210 million as part of our ongoing launch of persona the personalized knee system . ``` Suspicious Activity Report : based upon the levels of inventory we were carrying before the medical device excise tax was effective , we did not recognize any of the excise tax until the fourth quarter of 2013. the excise tax is derived from a constructive sales price , as defined by u.s. tax law and internal revenue service ( irs ) guidance . prior to the medical device excise tax effective date , the irs issued interim rules ( see irs notice 2012-77 ) that provide , among other things , that medical device manufacturers selling to an affiliated distribution entity may apply a 28.75 % discount off retail selling prices when computing the tax base . we are in discussions with the irs as to what an appropriate constructive sales price should be under irs excise tax regulations and our specific business model . as a result of our discussions with the irs , our ultimate medical device excise tax may differ from the amount determined under notice 2012-77. we estimate the cost in 2014 will be approximately $ 10 million per quarter . since we recognize the medical device excise tax as a part of the cost of inventory , the amount expensed in any particular quarter will vary according to u.s. sales levels in that quarter . we expect to continue making investments in research and development ( r & d ) of between 4 and 4.5 percent of sales in 2014. selling , general and administrative expenses ( sg & a ) as a percentage of sales is expected to be between 38.5 and 39 percent in 2014 as we realize efficiencies from our quality and operational excellence initiatives and further leverage revenue growth . we expect to incur approximately $ 250 million of expenses in 2014 related to our quality and operational excellence initiatives and integration costs from recent acquisitions . the quality and operational excellence programs are intended to improve our future operating results and include centralizing or outsourcing certain functions and improving quality , distribution , sourcing , manufacturing and information technology systems . we expect to recognize the 18 zimmer holdings , inc. 2013 form 10-k annual report majority of these expenses in “special items” on our statement of earnings , but some will be related to inventory and be reflected in costs of products sold . assuming variable interest rates remain at december 31 , 2013 levels , we expect interest income and expense , net , to be similar to 2013. we expect our etr to increase in 2014 relative to 2013 , as we do not anticipate certain significant costs , such as excess and obsolete inventory charges and “certain claims” that were incurred in jurisdictions with higher tax rates , to recur , thus increasing the profit in those higher tax jurisdictions . based upon the above , we expect reported net earnings and diluted earnings per share to increase in a range of approximately 13 to 17 percent in 2014 relative to 2013 , stemming from anticipated higher sales and an improved gross margin . results of operations net sales by reportable segment the following tables present net sales by reportable segment and the components of the percentage changes ( dollars in millions ) : replace_table_token_3_th replace_table_token_4_th “foreign exchange” as used in the tables in this report represents the effect of changes in foreign currency exchange rates on sales growth . net sales by product category the following tables present net sales by product category and the components of the percentage changes ( dollars in millions ) : replace_table_token_5_th replace_table_token_6_th 19 zimmer holdings , inc. 2013 form 10-k annual report beginning in 2013 , our knees product category net sales include certain early intervention products that are primarily used in knee procedures . in 2012 and 2011 , these products were included in the surgical and other product category . net sales in the years ended december 31 , 2012 and 2011 related to these products have been reclassified to conform to the 2013 presentation . the following table presents net sales by product category by region ( dollars in millions ) : replace_table_token_7_th 20 zimmer holdings , inc. 2013 form 10-k annual report demand ( volume and mix ) trends increased volume and changes in the mix of product sales contributed 7 percentage points of year-over-year sales growth in 2013 , which is a higher growth rate than experienced in 2012 compared to 2011. in 2013 , accelerated growth was fueled by the introduction of new products , such as persona the personalized knee system and the transposal fluid waste management system . we believe procedure volumes in the broader musculoskeletal market remained stable or improved slightly in 2013 relative to 2012. we believe long-term indicators point toward sustained growth driven by an aging global population , growth in emerging markets , obesity , proven clinical benefits , new material technologies , advances in surgical techniques and more active lifestyles , among other factors . in addition , demand for clinically proven premium products and patient specific devices will continue to positively affect sales growth in markets that recognize the value in these advanced technologies . pricing trends global selling prices had a negative effect of 2 percent on year-over-year sales during 2013. our americas and europe reporting segments and certain countries in our asia pacific reporting segment continued to experience pricing pressure from governmental healthcare cost containment efforts and from local hospitals and health systems . for 2014 , we estimate that selling prices will decline slightly more than they did in 2013 due to a biennial price adjustment in japan in the second quarter of 2014 along with some moderately weaker pricing in europe . story_separator_special_tag while changes in foreign currency exchange rates decreased sales by 10 percent in 2013 compared to 2012 , this decline was largely offset by hedge gains recorded in 2013 versus hedge losses recorded in 2012. non-gaap operating performance measures we use financial measures that differ from financial measures determined in accordance with gaap to evaluate our operating performance . these non-gaap financial measures exclude the impact of inventory step-up , certain inventory and manufacturing related charges connected to quality enhancement and remediation efforts , inventory obsolescence charges associated with products we intend to discontinue , “certain claims , ” “special items , ” and any related effects on our income tax provision associated with these items in addition to certain other tax adjustments . we use this information internally and believe it is helpful to investors because it allows more meaningful period-to-period comparisons of our ongoing operating results , it helps to perform trend analysis and to better identify operating trends that may otherwise be masked or distorted by these types of items , and it provides a higher degree of transparency of certain items . certain of these non-gaap financial measures are used as metrics for our incentive compensation programs . our non-gaap adjusted net earnings used for internal management purposes for the years ended december 31 , 2013 , 2012 and 2011 were $ 988.4 million , $ 932.5 million , and $ 905.6 million , respectively , and our non-gaap adjusted diluted earnings per share were $ 5.75 , $ 5.30 , and $ 4.80 , respectively . the following are reconciliations from our gaap net earnings and diluted earnings per share to our non-gaap adjusted net earnings and non-gaap adjusted diluted earnings per share used for internal management purposes ( in millions , except per share amounts ) . replace_table_token_10_th * the tax effect is calculated based upon the statutory rates for the jurisdictions where the items were incurred . replace_table_token_11_th * the tax effect is calculated based upon the statutory rates for the jurisdictions where the items were incurred . story_separator_special_tag able to issue new senior notes , we intend to borrow against our senior credit facility to pay these notes . 25 zimmer holdings , inc. 2013 form 10-k annual report we have a five year $ 1,350 million revolving , multi-currency , senior unsecured credit facility maturing may 9 , 2017 ( senior credit facility ) . there were no borrowings outstanding under the senior credit facility at december 31 , 2013. we and certain of our wholly owned foreign subsidiaries are the borrowers under the senior credit facility . borrowings under the senior credit facility bear interest at a libor-based rate plus an applicable margin determined by reference to our senior unsecured long-term credit rating and the amounts drawn under the senior credit facility , at an alternate base rate , or at a fixed-rate determined through a competitive bid process . the senior credit facility contains customary affirmative and negative covenants and events of default for an unsecured financing arrangement , including , among other things , limitations on consolidations , mergers and sales or transfers of assets . financial covenants include a maximum leverage ratio of 3.0 to 1.0. if we fall below an investment grade credit rating , additional restrictions would result , including restrictions on investments , payment of dividends and stock repurchases . we were in compliance with all covenants under the senior credit facility as of december 31 , 2013. commitments under the senior credit facility are subject to certain fees , including a facility fee and a utilization fee . we have a term loan agreement ( term loan ) with one of the lenders under the senior credit facility for 11.7 billion japanese yen that will mature on may 31 , 2016. borrowings under the term loan bear interest at a fixed rate of 0.61 percent per annum until maturity . we also have available uncommitted credit facilities totaling $ 50.7 million . we place our cash and cash equivalents in highly-rated financial institutions and limit the amount of credit exposure to any one entity . we invest only in high-quality financial instruments in accordance with our internal investment policy . as of december 31 , 2013 , we had short-term and long-term investments in debt securities with a fair value of $ 807.7 million . these investments are in debt securities of many different issuers and therefore we believe we have no significant concentration of risk with a single issuer . all of these debt securities remain highly-rated and we believe the risk of default by the issuers is low . as of december 31 , 2013 , $ 891.9 million of our cash and cash equivalents and short-term and long-term investments were held in jurisdictions outside of the u.s. and are expected to be indefinitely reinvested for continued use in foreign operations . repatriation of these assets to the u.s. may have tax consequences . $ 478.8 million of this amount is denominated in u.s. dollars and therefore bears no foreign currency translation risk . the balance of these assets is denominated in currencies of the various countries where we operate . we may use excess cash to repurchase common stock under our share repurchase program . effective january 1 , 2014 , we have a new share repurchase program that authorizes purchases of up to $ 1.0 billion with no expiration date . no further purchases will be made under the previous share repurchase program . management believes that cash flows from operations and available borrowings under the senior credit facility or from the public and private debt markets are sufficient to meet our working capital , capital expenditure and debt service needs , as well as return cash to stockholders in the form of dividends and share repurchases . should investment opportunities arise , we believe that our earnings , balance sheet and cash flows will allow us to obtain

the preparation of these consolidated financial statements requires our management to make assumptions and estimates about future events and apply judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . these estimates are based on management 's historical industry experience and on various other assumptions that are believed to be reasonable under the circumstances . on a regular basis , we evaluate these accounting policies , assumptions , estimates and judgments to ensure that our financial statements are presented fairly and in accordance with gaap . however , because future events and their effects can not be determined with certainty , actual results may differ from our estimates , and such differences could be material . a full discussion of our significant accounting policies is contained in note 2 to our consolidated financial statements , which is included in item 8 – “ financial statements and supplementary data ” of this report . we believe that the following accounting estimates are the most critical to aid in fully understanding and evaluating our financial results . these estimates require our most difficult , subjective or complex judgments because they relate to matters that are inherently uncertain . we have reviewed these critical accounting policies and estimates and related disclosures with our audit committee . long-lived assets we review long-lived assets , such as property and equipment , and intangible assets subject to amortization , for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable . these events or changes in circumstances include , but are not limited to , significant underperformance relative to historical or projected future operating results , significant changes in the manner of use of the acquired assets or the strategy for the overall business , and significant negative industry or economic trends . recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset group to the estimated undiscounted cash flows over the estimated remaining useful life of the primary asset included in the asset group . if the asset group is not recoverable , the impairment loss is calculated as the excess of the carrying value over the fair value . we define our asset group as an operating club or restaurant location , which is also our reporting unit or the lowest level for which cash flows can be identified . key estimates in the undiscounted cash flow model include management 's estimate of the projected revenues and operating margins . if fair value is used to determine an impairment loss , an additional key assumption is the selection of a weighted-average cost of capital to discount cash flows . assets to be disposed of are separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell and are no longer depreciated . during the fourth quarter of 2018 , we impaired one club and one bombshells by a total of $ 1.6 million ; during the fourth quarter of fiscal 2017 , we impaired one club by $ 385,000 ; and during the fourth quarter of fiscal 2016 , we impaired one property held for sale by $ 1.4 million . goodwill and other intangible assets goodwill and other intangible assets that have indefinite useful lives are tested annually for impairment during our fourth fiscal quarter , and are tested for impairment more frequently if events and circumstances indicate that the asset might be impaired . 23 our impairment calculations require management to make assumptions and to apply judgment in order to estimate fair values . if our actual results are not consistent with our estimates and assumptions , we may be exposed to impairments that could be material . we do not believe that there is a reasonable likelihood that there will be a change in the estimates or assumptions we used that could cause a material change in our calculated impairment charges . for our goodwill impairment review , we have the option to first perform a qualitative assessment to determine if it is more likely than not that the fair value of the reporting unit is less than its carrying value . this assessment is based on several factors , including industry and market conditions , overall financial performance , including an assessment of cash flows in comparison to actual and projected results of prior periods . if it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value based on our qualitative analysis , or if we elect to skip this step , we perform a step 1 quantitative analysis to determine the fair value of the reporting unit . the fair value is determined using market-related valuation models , including earnings multiples , discounted cash flows , and comparable asset market values . key estimates in the undiscounted cash flow model include management 's estimate of the projected revenues and operating margins , along with the selection of a weighted-average cost of capital to discount cash flows . we recognize goodwill impairment in the amount that the carrying value of the reporting unit exceeds the fair value of the reporting unit , not to exceed the amount of goodwill allocated to the reporting unit , based on the results of our step 1 analysis . for the year ended september 30 , 2017 , we identified four reporting units that were impaired and recognized a goodwill impairment loss totaling $ 4.7 million . no goodwill impairment was recorded in fiscal 2018 and 2016. for indefinite-lived intangibles , specifically sob licenses , we determine fair value by estimating the multiperiod excess earnings of the asset with key assumptions being similar to those used in the goodwill impairment valuation model . story_separator_special_tag replace_table_token_18_th income taxes income taxes were a benefit of $ 3.1 million in 2018 , an expense of $ 6.4 million in 2017 , and an expense of $ 2.4 million in 2016. our effective income tax rate was a 16.7 % benefit in 2018 , and 43.4 % and 18.5 % expense in 2017 and 2016 , respectively . the components of our annual effective income tax rate are the following : replace_table_token_19_th 32 on december 22 , 2017 , during our first quarter 2018 , the tax cuts and jobs act ( the “ tax act ” ) was enacted into law , which provides for significant changes to the u.s. internal revenue code of 1986 , as amended , such as a reduction in the statutory federal corporate tax rate from a maximum of 35 % to a flat 21 % rate effective from january 1 , 2018 forward and changes and limitations to certain tax deductions . the company has a fiscal year end of september 30 , so the change to the statutory corporate tax rate results in a blended federal statutory rate of 24.5 % for its fiscal year 2018. the increase in state tax effective rate from 2017 to 2018 was mainly caused by the impact of return-to-provision true-up , which has an expense impact in 2018 while having a benefit in 2017. during fiscal year 2017 , due to higher income before tax , our income tax rate has increased to 37 % , of which has impacted the fourth quarter with the change in rate from 35 % in the first nine months of the year and in prior years . a full year impact in the change in rate of our deferred tax liability has also been recognized in the fourth quarter . the change in deferred tax liability rate for 2017 is due to the 1 % increase in our effective tax rate from the increase in the federal rate and also an increase in the states rate . this amount results from increasing by 2 % the rate applied to our entire deferred tax liabilities at the beginning of the year . the reserve for uncertain tax positions results from an audit of the returns of one of the states in which we operate . as a result of the items discussed above which affected the fiscal year , the fourth quarter effective tax rate rose to 99.6 % expense on a pre-tax loss . during fiscal year 2016 , we recognized a $ 2.0 million tax benefit representing the net amount to be realized from fiscal 2016 and from amending certain prior year federal tax returns to take available fica tip tax credits , which were not taken in prior years . 33 non-gaap financial measures in addition to our financial information presented in accordance with gaap , management uses certain non-gaap financial measures , within the meaning of the sec regulation g , to clarify and enhance understanding of past performance and prospects for the future . generally , a non-gaap financial measure is a numerical measure of a company 's operating performance , financial position or cash flows that excludes or includes amounts that are included in or excluded from the most directly comparable measure calculated and presented in accordance with gaap . we monitor non-gaap financial measures because it describes the operating performance of the company and helps management and investors gauge our ability to generate cash flow , excluding ( or including ) some items that management believes are not representative of the ongoing business operations of the company , but are included in ( or excluded from ) the most directly comparable measures calculated and presented in accordance with gaap . relative to each of the non-gaap financial measures , we further set forth our rationale as follows : non-gaap operating income and non-gaap operating margin . we calculate non-gaap operating income and non-gaap operating margin by excluding the following items from income from operations and operating margin : amortization of intangibles , gain on settlement of patron tax case , gains or losses on sale of assets , impairment of assets , stock-based compensation , settlement of lawsuits , and gain on insurance . we believe that excluding these items assists investors in evaluating period-over-period changes in our operating income and operating margin without the impact of items that are not a result of our day-to-day business and operations . non-gaap net income and non-gaap net income per diluted share . we calculate non-gaap net income and non-gaap net income per diluted share by excluding or including certain items to net income attributable to rcihh common shareholders and diluted earnings per share . excluded items are : amortization of intangibles , gain on settlement of patron tax case , income tax expense ( benefit ) , impairment charges , gains or losses on sale of assets , stock-based compensation , settlement of lawsuits , costs and charges related to debt refinancing , and gain on insurance . included item is the non-gaap provision for current and deferred income taxes , calculated as the tax effect at 24.5 % , 37 % , and 35 % in 2018 , 2017 , and 2016 , respectively , effective tax rate of the pre-tax non-gaap income before taxes . we believe that excluding and including such items help management and investors better understand our operating activities . adjusted ebitda . we calculate adjusted ebitda by excluding the following items from net income attributable to rcihh common shareholders : depreciation expense , amortization of intangibles , impairment of assets , income tax expense ( benefit ) , interest expense , interest income , gains or losses on sale of assets , settlement of lawsuits , gain on settlement of patron tax case , and gain on insurance . we believe that adjusting for such items helps management and investors better understand our operating activities .

cash flows from financing activities following are our summarized cash flows from financing activities ( in thousands ) : replace_table_token_26_th we purchased shares of our common stock representing 0 shares , 89,685 shares , and 747,081 shares in 2018 , 2017 , and 2016 , respectively . during the second quarter of 2016 , we started paying quarterly dividends in the amount of $ 0.03 per share . see note 7 to our consolidated financial statements for a detailed discussion of our debt obligations and note 19 related to the refinancing of several of our real estate notes payable . non-gaap cash flow measure management also uses certain non-gaap cash flow measures such as free cash flows . we define free cash flow as net cash provided by operating activities less maintenance capital expenditures . replace_table_token_27_th we do not include total capital expenditures as a reduction from net cash flow from operating activities to arrive at free cash flow . this is because , based on our capital allocation strategy , acquisitions and development of our own clubs and restaurants are our primary uses of free cash flow . debt financing see notes 7 and 19 to our consolidated financial statements for detail regarding our long-term debt activity , including those subsequent to the fiscal year ended september 30 , 2018 . 39 contractual obligations and commitments we have long-term contractual obligations primarily in the form of debt obligations and operating leases . the following table ( in thousands ) summarizes our contractual obligations and their aggregate maturities as well as future minimum rent payments . future interest payments related to debt were estimated using the interest rate in effect at september 30 , 2018. replace_table_token_28_th ( a ) we have $ 165,000 of uncertain tax positions recorded in accrued liabilities as of september 30 , 2018. it is expected that these assessments will be settled within the next twelve months . see note 8 to our consolidated financial statements .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as 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 following are our summarized cash flows from financing activities ( in thousands ) : replace_table_token_26_th we purchased shares of our common stock representing 0 shares , 89,685 shares , and 747,081 shares in 2018 , 2017 , and 2016 , respectively . during the second quarter of 2016 , we started paying quarterly dividends in the amount of $ 0.03 per share . see note 7 to our consolidated financial statements for a detailed discussion of our debt obligations and note 19 related to the refinancing of several of our real estate notes payable . non-gaap cash flow measure management also uses certain non-gaap cash flow measures such as free cash flows . we define free cash flow as net cash provided by operating activities less maintenance capital expenditures . replace_table_token_27_th we do not include total capital expenditures as a reduction from net cash flow from operating activities to arrive at free cash flow . this is because , based on our capital allocation strategy , acquisitions and development of our own clubs and restaurants are our primary uses of free cash flow . debt financing see notes 7 and 19 to our consolidated financial statements for detail regarding our long-term debt activity , including those subsequent to the fiscal year ended september 30 , 2018 . 39 contractual obligations and commitments we have long-term contractual obligations primarily in the form of debt obligations and operating leases . the following table ( in thousands ) summarizes our contractual obligations and their aggregate maturities as well as future minimum rent payments . future interest payments related to debt were estimated using the interest rate in effect at september 30 , 2018. replace_table_token_28_th ( a ) we have $ 165,000 of uncertain tax positions recorded in accrued liabilities as of september 30 , 2018. it is expected that these assessments will be settled within the next twelve months . see note 8 to our consolidated financial statements . ``` Suspicious Activity Report : the preparation of these consolidated financial statements requires our management to make assumptions and estimates about future events and apply judgments that affect the reported amounts of assets , liabilities , revenues and expenses , and related disclosure of contingent assets and liabilities . these estimates are based on management 's historical industry experience and on various other assumptions that are believed to be reasonable under the circumstances . on a regular basis , we evaluate these accounting policies , assumptions , estimates and judgments to ensure that our financial statements are presented fairly and in accordance with gaap . however , because future events and their effects can not be determined with certainty , actual results may differ from our estimates , and such differences could be material . a full discussion of our significant accounting policies is contained in note 2 to our consolidated financial statements , which is included in item 8 – “ financial statements and supplementary data ” of this report . we believe that the following accounting estimates are the most critical to aid in fully understanding and evaluating our financial results . these estimates require our most difficult , subjective or complex judgments because they relate to matters that are inherently uncertain . we have reviewed these critical accounting policies and estimates and related disclosures with our audit committee . long-lived assets we review long-lived assets , such as property and equipment , and intangible assets subject to amortization , for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable . these events or changes in circumstances include , but are not limited to , significant underperformance relative to historical or projected future operating results , significant changes in the manner of use of the acquired assets or the strategy for the overall business , and significant negative industry or economic trends . recoverability of assets to be held and used is measured by a comparison of the carrying amount of the asset group to the estimated undiscounted cash flows over the estimated remaining useful life of the primary asset included in the asset group . if the asset group is not recoverable , the impairment loss is calculated as the excess of the carrying value over the fair value . we define our asset group as an operating club or restaurant location , which is also our reporting unit or the lowest level for which cash flows can be identified . key estimates in the undiscounted cash flow model include management 's estimate of the projected revenues and operating margins . if fair value is used to determine an impairment loss , an additional key assumption is the selection of a weighted-average cost of capital to discount cash flows . assets to be disposed of are separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell and are no longer depreciated . during the fourth quarter of 2018 , we impaired one club and one bombshells by a total of $ 1.6 million ; during the fourth quarter of fiscal 2017 , we impaired one club by $ 385,000 ; and during the fourth quarter of fiscal 2016 , we impaired one property held for sale by $ 1.4 million . goodwill and other intangible assets goodwill and other intangible assets that have indefinite useful lives are tested annually for impairment during our fourth fiscal quarter , and are tested for impairment more frequently if events and circumstances indicate that the asset might be impaired . 23 our impairment calculations require management to make assumptions and to apply judgment in order to estimate fair values . if our actual results are not consistent with our estimates and assumptions , we may be exposed to impairments that could be material . we do not believe that there is a reasonable likelihood that there will be a change in the estimates or assumptions we used that could cause a material change in our calculated impairment charges . for our goodwill impairment review , we have the option to first perform a qualitative assessment to determine if it is more likely than not that the fair value of the reporting unit is less than its carrying value . this assessment is based on several factors , including industry and market conditions , overall financial performance , including an assessment of cash flows in comparison to actual and projected results of prior periods . if it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value based on our qualitative analysis , or if we elect to skip this step , we perform a step 1 quantitative analysis to determine the fair value of the reporting unit . the fair value is determined using market-related valuation models , including earnings multiples , discounted cash flows , and comparable asset market values . key estimates in the undiscounted cash flow model include management 's estimate of the projected revenues and operating margins , along with the selection of a weighted-average cost of capital to discount cash flows . we recognize goodwill impairment in the amount that the carrying value of the reporting unit exceeds the fair value of the reporting unit , not to exceed the amount of goodwill allocated to the reporting unit , based on the results of our step 1 analysis . for the year ended september 30 , 2017 , we identified four reporting units that were impaired and recognized a goodwill impairment loss totaling $ 4.7 million . no goodwill impairment was recorded in fiscal 2018 and 2016. for indefinite-lived intangibles , specifically sob licenses , we determine fair value by estimating the multiperiod excess earnings of the asset with key assumptions being similar to those used in the goodwill impairment valuation model . story_separator_special_tag replace_table_token_18_th income taxes income taxes were a benefit of $ 3.1 million in 2018 , an expense of $ 6.4 million in 2017 , and an expense of $ 2.4 million in 2016. our effective income tax rate was a 16.7 % benefit in 2018 , and 43.4 % and 18.5 % expense in 2017 and 2016 , respectively . the components of our annual effective income tax rate are the following : replace_table_token_19_th 32 on december 22 , 2017 , during our first quarter 2018 , the tax cuts and jobs act ( the “ tax act ” ) was enacted into law , which provides for significant changes to the u.s. internal revenue code of 1986 , as amended , such as a reduction in the statutory federal corporate tax rate from a maximum of 35 % to a flat 21 % rate effective from january 1 , 2018 forward and changes and limitations to certain tax deductions . the company has a fiscal year end of september 30 , so the change to the statutory corporate tax rate results in a blended federal statutory rate of 24.5 % for its fiscal year 2018. the increase in state tax effective rate from 2017 to 2018 was mainly caused by the impact of return-to-provision true-up , which has an expense impact in 2018 while having a benefit in 2017. during fiscal year 2017 , due to higher income before tax , our income tax rate has increased to 37 % , of which has impacted the fourth quarter with the change in rate from 35 % in the first nine months of the year and in prior years . a full year impact in the change in rate of our deferred tax liability has also been recognized in the fourth quarter . the change in deferred tax liability rate for 2017 is due to the 1 % increase in our effective tax rate from the increase in the federal rate and also an increase in the states rate . this amount results from increasing by 2 % the rate applied to our entire deferred tax liabilities at the beginning of the year . the reserve for uncertain tax positions results from an audit of the returns of one of the states in which we operate . as a result of the items discussed above which affected the fiscal year , the fourth quarter effective tax rate rose to 99.6 % expense on a pre-tax loss . during fiscal year 2016 , we recognized a $ 2.0 million tax benefit representing the net amount to be realized from fiscal 2016 and from amending certain prior year federal tax returns to take available fica tip tax credits , which were not taken in prior years . 33 non-gaap financial measures in addition to our financial information presented in accordance with gaap , management uses certain non-gaap financial measures , within the meaning of the sec regulation g , to clarify and enhance understanding of past performance and prospects for the future . generally , a non-gaap financial measure is a numerical measure of a company 's operating performance , financial position or cash flows that excludes or includes amounts that are included in or excluded from the most directly comparable measure calculated and presented in accordance with gaap . we monitor non-gaap financial measures because it describes the operating performance of the company and helps management and investors gauge our ability to generate cash flow , excluding ( or including ) some items that management believes are not representative of the ongoing business operations of the company , but are included in ( or excluded from ) the most directly comparable measures calculated and presented in accordance with gaap . relative to each of the non-gaap financial measures , we further set forth our rationale as follows : non-gaap operating income and non-gaap operating margin . we calculate non-gaap operating income and non-gaap operating margin by excluding the following items from income from operations and operating margin : amortization of intangibles , gain on settlement of patron tax case , gains or losses on sale of assets , impairment of assets , stock-based compensation , settlement of lawsuits , and gain on insurance . we believe that excluding these items assists investors in evaluating period-over-period changes in our operating income and operating margin without the impact of items that are not a result of our day-to-day business and operations . non-gaap net income and non-gaap net income per diluted share . we calculate non-gaap net income and non-gaap net income per diluted share by excluding or including certain items to net income attributable to rcihh common shareholders and diluted earnings per share . excluded items are : amortization of intangibles , gain on settlement of patron tax case , income tax expense ( benefit ) , impairment charges , gains or losses on sale of assets , stock-based compensation , settlement of lawsuits , costs and charges related to debt refinancing , and gain on insurance . included item is the non-gaap provision for current and deferred income taxes , calculated as the tax effect at 24.5 % , 37 % , and 35 % in 2018 , 2017 , and 2016 , respectively , effective tax rate of the pre-tax non-gaap income before taxes . we believe that excluding and including such items help management and investors better understand our operating activities . adjusted ebitda . we calculate adjusted ebitda by excluding the following items from net income attributable to rcihh common shareholders : depreciation expense , amortization of intangibles , impairment of assets , income tax expense ( benefit ) , interest expense , interest income , gains or losses on sale of assets , settlement of lawsuits , gain on settlement of patron tax case , and gain on insurance . we believe that adjusting for such items helps management and investors better understand our operating activities .

we are also in the final planning stages for a phase 2/3 trial for lenzilumab to treat patients who have undergone allogeneic hematopoietic stem cell therapy ( “ hsct ” ) who are at high and intermediate risk for acute gvhd . the trial is expected to be conducted by the impact partnership , a collection of 22 stem cell transplant centers located in the united kingdom . 92 our proprietary , patented humaneered technology platform is a method for converting existing antibodies ( typically murine ) into engineered , high-affinity human antibodies designed for therapeutic use , particularly with acute and chronic conditions . we have developed or in-licensed targets or research antibodies , typically from academic institutions , and then applied our humaneered technology to produce them . lenzilumab and our other two product candidates , ifabotuzumab and hgen005 , are humaneered monoclonal antibodies . our humaneered antibodies are closer to human antibodies than chimeric or conventionally humanized antibodies and have a high affinity for their target but low immunogenicity . we believe our humaneered antibodies offer additional advantages , such as high potency , a slow off-rate and a lower likelihood to induce an inappropriate immune response or infusion related reactions . our pipeline our lenzilumab-based clinical-stage pipeline comprises a phase 3 potential registration study in covid-19 which has fully enrolled , the nih-sponsored and funded activ-5/bet program in covid-19 , a currently enrolling phase 1b/2 study ( zuma-19 ) as sequenced therapy of lenzilumab and yescarta , a planned phase 2/3 study in acute gvhd , and a planned phase 2 study in cmml , the latter two of which we expect will be majority funded by partners . while the majority of our clinical programs involve lenzilumab , we have also fully enrolled an ifabotuzumab phase 1 study in gbm . except for the potential of lenzilumab for covid-19 under an eua , our product candidates are in the clinical stage of development and will require substantial time , resources , research and development , and regulatory approval prior to commercialization . furthermore , it may be years before any of our products are approved for use , if at all . our current pipeline is depicted below : 1 phase 3 may not be necessary for approval in zuma-19 ; precedent is car-ts to date have been approved on phase 2 data 2 uk 3 us , eu , australia results of operations general at december 31 , 2020 , we had an accumulated deficit of $ 374.4 million , primarily as a result of research and development and general and administrative expenses as well as costs incurred in reorganization . while we may in the future generate revenue from a variety of sources , including license fees , milestone payments , and research and development payments in connection with strategic partnerships , our product candidates are at an early stage of development and may never be successfully developed or commercialized . accordingly , we expect to continue to incur substantial losses from operations for the foreseeable future , and there can be no assurance that we will ever generate significant revenue or profits . 93 research and development expenses conducting research and development is central to our business model . we expense both internal and external research and development costs as incurred . we track external research and development costs incurred by project for each of our clinical programs . our external research and development costs consist primarily of : · expenses incurred under agreements with contract research organizations , investigative sites , and consultants that conduct our clinical trials and a substantial portion of our pre-clinical activities ; · the cost of acquiring and manufacturing clinical trial and eua materials prior to receiving an eua ; and · other costs associated with development activities , including additional studies . other research and development costs consist primarily of internal research and development costs such as salaries and related fringe benefit costs for our employees ( such as workers compensation and health insurance premiums ) , stock-based compensation charges , and external costs not allocated to one of our clinical programs . internal research and development costs generally benefit multiple projects and are not separately tracked per project . the following table shows our total research and development expenses for the years ended december 31 , 2020 and 2019 : replace_table_token_1_th selling , general and administrative expenses selling , general and administrative expenses consist principally of personnel-related costs , costs related to our preparation for commercialization of lenzilumab , professional fees for legal and patent expenses , consulting , audit and tax services , investor and public relations costs , rent and other general operating expenses not otherwise included in research and development . for the years ended december 31 , 2020 and 2019 , selling , general and administrative expenses were $ 15.8 million and $ 6.3 million , respectively . 94 comparison of years ended december 31 , 2020 and 2019 ( $ 000 's ) replace_table_token_2_th license revenue increased $ 0.3 million in 2020 from $ 0 for the year ended december 31 , 2019 to $ 0.3 million for the year ended december 31 , 2020. the increase is due to the signing of the south korea agreement , described in more detail in note 3 to the consolidated financial statements included in this annual report on form 10-k. research and development expenses increased $ 70.1 million in 2020 from $ 2.6 million for the year ended december 31 , 2019 to $ 72.7 million for the year ended december 31 , 2020. the increase is primarily due to increased clinical trial and clinical material manufacturing costs related to the covid-19 clinical trials . story_separator_special_tag of these , we issued 316,666 shares to cheval . dr. dale chappell , who was serving as our ex-officio chief scientific officer at the time and currently serves as our chief scientific officer , controls bhc and reports beneficial ownership of all shares held by it and its affiliates , including cheval . after giving effect to the shares issued upon such conversions , no convertible notes issued in 2018 or 2019 were outstanding as of december 31 , 2020. as of december 31 , 2019 , we had accrued $ 0.1 million in interest related to the 2019 notes . interest expense related to the 2019 notes , recorded during the year ended december 31 , 2020 , was approximately $ 219,000 . 100 2019 bridge notes on june 28 , 2019 , we issued three short-term , secured bridge notes ( the “ june bridge notes ” ) evidencing an aggregate of $ 1.7 million of loans made to us by three parties : cheval , an affiliate of bhc , our controlling stockholder at the time , lent $ 750,000 ; nomis bay , our second largest stockholder at the time , lent $ 750,000 ; and dr. durrant , our chief executive officer and chairman of our board of directors , lent $ 200,000. the $ 1.7 million in proceeds was recorded as advance notes in the consolidated balance sheet as of december 31 , 2019. as previously disclosed , the june bridge notes were repaid in june 2020 with proceeds from the private placement , and the june bridge notes were extinguished . on november 12 , 2019 , we issued two short-term , secured bridge notes ( the “ november bridge notes ” and together with the june bridge notes , the “ 2019 bridge notes ” ) evidencing an aggregate of $ 350,000 of loans made us by two parties : cheval , an affiliate of bhc , our controlling stockholder at the time , lent $ 250,000 ; and cameron durrant , m.d . , mba , our chief executive officer and chairman of our board of directors , lent $ 100,000 . as previously disclosed , the november bridge notes were repaid in june 2020 with proceeds from the private placement . in april 2020 , we issued two short-term , secured bridge notes ( the “ april bridge notes ” and together with the june bridge notes and the november bridge notes , the “ bridge notes ” ) evidencing an aggregate of $ 350,000 of loans made to us : cheval , an affiliate of bhc , our controlling stockholder at the time , loaned $ 100,000 , and nomis bay , our second largest stockholder , loaned $ 250,000. the proceeds from the april bridge notes were used for working capital and general corporate purposes . as previously disclosed , these april bridge notes were repaid in june 2020 with proceeds from the private placement , and these bridge notes were extinguished . the bridge notes were secured by a lien on substantially all the company 's assets , which liens have been released . the bridge notes accrued interest at a rate of 7.0 % per annum . interest expense related to the bridge notes , recorded during the year ended december 31 , 2020 , was approximately $ 66,000 . 2020 convertible redeemable notes in march 2020 , we delivered two convertible redeemable promissory notes ( the “ 2020 notes ” ) evidencing loans with an aggregate principal amount of $ 518,333 made to us . the 2020 notes accrued interest at a rate of 7.0 % per annum and contained an original issue discount of $ 33,000 and $ 18,833 , respectively . we used the proceeds from the 2020 notes for working capital . as previously disclosed , the notes were repaid in june 2020 with proceeds from the private placement , and the notes were extinguished . interest expense related to the 2020 notes , recorded during the year ended december 31 , 2020 , was approximately $ 165,000. interest expense includes the original issue discount amortization of approximately $ 52,000 for the year ended december 31 , 2020. equity line of credit on november 8 , 2019 , we entered into a purchase agreement and a registration rights agreement with lincoln park , pursuant to which we had the right to sell to lincoln park up to $ 20,000,000 in shares of our common stock , subject to certain limitations and conditions set forth in the purchase agreement . in connection with the signing of the eloc purchase agreement on november 8 , 2019 , we issued 141,318 shares of its common stock to lpc . the issuance of the shares was recorded as debt issuance costs in common stock and additional paid-in capital with no net effect on stockholders ' equity ( deficit ) . during the months of december 2019 and january 2020 , we issued a total of 140,000 shares for aggregate proceeds of $ 0.3 million under the eloc purchase agreement . on june 2 , 2020 , following completion of the private placement , we notified lpc of our decision to terminate the eloc purchase agreement . the termination of the eloc purchase agreement became effective on june 3 , 2020 . 101 contracts eversana agreement on january 10 , 2021 , we announced that we had entered into a master services agreement ( the “ eversana agreement ” ) with eveersana life science services , llc ( “ eversana ” ) pursuant to which eversana will serve as our end-to-end commercial partner , providing us with a full suite of services in connection with the potential launch of lenzilumab . we will pay eversana fees and reimburse it for its expenses in performing the services as established in applicable statements of work . eversana has agreed to defer its fees pending our receipt of an

liquidity and capital resources since our inception , we have financed our operations primarily through proceeds from the public offerings and private placements of our common and preferred stock , debt financings , interest income earned on cash , and cash equivalents , and marketable securities , borrowings against lines of credit , and receipts from prior collaboration agreements . at december 31 , 2020 , we had cash and cash equivalents of $ 67.7 million . as of march 5,2021 , we had cash and cash equivalents of $ 74.3 million . primary sources of and uses of cash the following table sets forth the primary sources and uses of cash and cash equivalents for each of the periods presented below ( $ 000 's ) : replace_table_token_3_th net cash used in operating activities was $ 69.9 million and $ 4.0 million for the years ended december 31 , 2020 and 2019 , respectively . cash used in operating activities in 2019 primarily related to our net loss of $ 10.3 million , adjusted for non-cash items , such as $ 2.0 million in stock-based compensation , changes in operating assets and liabilities of $ 4.1 million and other non-cash items of $ 0.2 million . cash used in operating activities in 2020 primarily related to our net loss of $ 89.0 million , adjusted for non-cash items , such as $ 2.1 million in stock-based compensation , changes in operating assets and liabilities of $ 16.6 million and other non-cash items of $ 0.4 million . net cash used in investing activities was $ 20,000 for the year ended december 31 , 2020. this relates to the acquisition of intangible 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 since our inception , we have financed our operations primarily through proceeds from the public offerings and private placements of our common and preferred stock , debt financings , interest income earned on cash , and cash equivalents , and marketable securities , borrowings against lines of credit , and receipts from prior collaboration agreements . at december 31 , 2020 , we had cash and cash equivalents of $ 67.7 million . as of march 5,2021 , we had cash and cash equivalents of $ 74.3 million . primary sources of and uses of cash the following table sets forth the primary sources and uses of cash and cash equivalents for each of the periods presented below ( $ 000 's ) : replace_table_token_3_th net cash used in operating activities was $ 69.9 million and $ 4.0 million for the years ended december 31 , 2020 and 2019 , respectively . cash used in operating activities in 2019 primarily related to our net loss of $ 10.3 million , adjusted for non-cash items , such as $ 2.0 million in stock-based compensation , changes in operating assets and liabilities of $ 4.1 million and other non-cash items of $ 0.2 million . cash used in operating activities in 2020 primarily related to our net loss of $ 89.0 million , adjusted for non-cash items , such as $ 2.1 million in stock-based compensation , changes in operating assets and liabilities of $ 16.6 million and other non-cash items of $ 0.4 million . net cash used in investing activities was $ 20,000 for the year ended december 31 , 2020. this relates to the acquisition of intangible assets . ``` Suspicious Activity Report : we are also in the final planning stages for a phase 2/3 trial for lenzilumab to treat patients who have undergone allogeneic hematopoietic stem cell therapy ( “ hsct ” ) who are at high and intermediate risk for acute gvhd . the trial is expected to be conducted by the impact partnership , a collection of 22 stem cell transplant centers located in the united kingdom . 92 our proprietary , patented humaneered technology platform is a method for converting existing antibodies ( typically murine ) into engineered , high-affinity human antibodies designed for therapeutic use , particularly with acute and chronic conditions . we have developed or in-licensed targets or research antibodies , typically from academic institutions , and then applied our humaneered technology to produce them . lenzilumab and our other two product candidates , ifabotuzumab and hgen005 , are humaneered monoclonal antibodies . our humaneered antibodies are closer to human antibodies than chimeric or conventionally humanized antibodies and have a high affinity for their target but low immunogenicity . we believe our humaneered antibodies offer additional advantages , such as high potency , a slow off-rate and a lower likelihood to induce an inappropriate immune response or infusion related reactions . our pipeline our lenzilumab-based clinical-stage pipeline comprises a phase 3 potential registration study in covid-19 which has fully enrolled , the nih-sponsored and funded activ-5/bet program in covid-19 , a currently enrolling phase 1b/2 study ( zuma-19 ) as sequenced therapy of lenzilumab and yescarta , a planned phase 2/3 study in acute gvhd , and a planned phase 2 study in cmml , the latter two of which we expect will be majority funded by partners . while the majority of our clinical programs involve lenzilumab , we have also fully enrolled an ifabotuzumab phase 1 study in gbm . except for the potential of lenzilumab for covid-19 under an eua , our product candidates are in the clinical stage of development and will require substantial time , resources , research and development , and regulatory approval prior to commercialization . furthermore , it may be years before any of our products are approved for use , if at all . our current pipeline is depicted below : 1 phase 3 may not be necessary for approval in zuma-19 ; precedent is car-ts to date have been approved on phase 2 data 2 uk 3 us , eu , australia results of operations general at december 31 , 2020 , we had an accumulated deficit of $ 374.4 million , primarily as a result of research and development and general and administrative expenses as well as costs incurred in reorganization . while we may in the future generate revenue from a variety of sources , including license fees , milestone payments , and research and development payments in connection with strategic partnerships , our product candidates are at an early stage of development and may never be successfully developed or commercialized . accordingly , we expect to continue to incur substantial losses from operations for the foreseeable future , and there can be no assurance that we will ever generate significant revenue or profits . 93 research and development expenses conducting research and development is central to our business model . we expense both internal and external research and development costs as incurred . we track external research and development costs incurred by project for each of our clinical programs . our external research and development costs consist primarily of : · expenses incurred under agreements with contract research organizations , investigative sites , and consultants that conduct our clinical trials and a substantial portion of our pre-clinical activities ; · the cost of acquiring and manufacturing clinical trial and eua materials prior to receiving an eua ; and · other costs associated with development activities , including additional studies . other research and development costs consist primarily of internal research and development costs such as salaries and related fringe benefit costs for our employees ( such as workers compensation and health insurance premiums ) , stock-based compensation charges , and external costs not allocated to one of our clinical programs . internal research and development costs generally benefit multiple projects and are not separately tracked per project . the following table shows our total research and development expenses for the years ended december 31 , 2020 and 2019 : replace_table_token_1_th selling , general and administrative expenses selling , general and administrative expenses consist principally of personnel-related costs , costs related to our preparation for commercialization of lenzilumab , professional fees for legal and patent expenses , consulting , audit and tax services , investor and public relations costs , rent and other general operating expenses not otherwise included in research and development . for the years ended december 31 , 2020 and 2019 , selling , general and administrative expenses were $ 15.8 million and $ 6.3 million , respectively . 94 comparison of years ended december 31 , 2020 and 2019 ( $ 000 's ) replace_table_token_2_th license revenue increased $ 0.3 million in 2020 from $ 0 for the year ended december 31 , 2019 to $ 0.3 million for the year ended december 31 , 2020. the increase is due to the signing of the south korea agreement , described in more detail in note 3 to the consolidated financial statements included in this annual report on form 10-k. research and development expenses increased $ 70.1 million in 2020 from $ 2.6 million for the year ended december 31 , 2019 to $ 72.7 million for the year ended december 31 , 2020. the increase is primarily due to increased clinical trial and clinical material manufacturing costs related to the covid-19 clinical trials . story_separator_special_tag of these , we issued 316,666 shares to cheval . dr. dale chappell , who was serving as our ex-officio chief scientific officer at the time and currently serves as our chief scientific officer , controls bhc and reports beneficial ownership of all shares held by it and its affiliates , including cheval . after giving effect to the shares issued upon such conversions , no convertible notes issued in 2018 or 2019 were outstanding as of december 31 , 2020. as of december 31 , 2019 , we had accrued $ 0.1 million in interest related to the 2019 notes . interest expense related to the 2019 notes , recorded during the year ended december 31 , 2020 , was approximately $ 219,000 . 100 2019 bridge notes on june 28 , 2019 , we issued three short-term , secured bridge notes ( the “ june bridge notes ” ) evidencing an aggregate of $ 1.7 million of loans made to us by three parties : cheval , an affiliate of bhc , our controlling stockholder at the time , lent $ 750,000 ; nomis bay , our second largest stockholder at the time , lent $ 750,000 ; and dr. durrant , our chief executive officer and chairman of our board of directors , lent $ 200,000. the $ 1.7 million in proceeds was recorded as advance notes in the consolidated balance sheet as of december 31 , 2019. as previously disclosed , the june bridge notes were repaid in june 2020 with proceeds from the private placement , and the june bridge notes were extinguished . on november 12 , 2019 , we issued two short-term , secured bridge notes ( the “ november bridge notes ” and together with the june bridge notes , the “ 2019 bridge notes ” ) evidencing an aggregate of $ 350,000 of loans made us by two parties : cheval , an affiliate of bhc , our controlling stockholder at the time , lent $ 250,000 ; and cameron durrant , m.d . , mba , our chief executive officer and chairman of our board of directors , lent $ 100,000 . as previously disclosed , the november bridge notes were repaid in june 2020 with proceeds from the private placement . in april 2020 , we issued two short-term , secured bridge notes ( the “ april bridge notes ” and together with the june bridge notes and the november bridge notes , the “ bridge notes ” ) evidencing an aggregate of $ 350,000 of loans made to us : cheval , an affiliate of bhc , our controlling stockholder at the time , loaned $ 100,000 , and nomis bay , our second largest stockholder , loaned $ 250,000. the proceeds from the april bridge notes were used for working capital and general corporate purposes . as previously disclosed , these april bridge notes were repaid in june 2020 with proceeds from the private placement , and these bridge notes were extinguished . the bridge notes were secured by a lien on substantially all the company 's assets , which liens have been released . the bridge notes accrued interest at a rate of 7.0 % per annum . interest expense related to the bridge notes , recorded during the year ended december 31 , 2020 , was approximately $ 66,000 . 2020 convertible redeemable notes in march 2020 , we delivered two convertible redeemable promissory notes ( the “ 2020 notes ” ) evidencing loans with an aggregate principal amount of $ 518,333 made to us . the 2020 notes accrued interest at a rate of 7.0 % per annum and contained an original issue discount of $ 33,000 and $ 18,833 , respectively . we used the proceeds from the 2020 notes for working capital . as previously disclosed , the notes were repaid in june 2020 with proceeds from the private placement , and the notes were extinguished . interest expense related to the 2020 notes , recorded during the year ended december 31 , 2020 , was approximately $ 165,000. interest expense includes the original issue discount amortization of approximately $ 52,000 for the year ended december 31 , 2020. equity line of credit on november 8 , 2019 , we entered into a purchase agreement and a registration rights agreement with lincoln park , pursuant to which we had the right to sell to lincoln park up to $ 20,000,000 in shares of our common stock , subject to certain limitations and conditions set forth in the purchase agreement . in connection with the signing of the eloc purchase agreement on november 8 , 2019 , we issued 141,318 shares of its common stock to lpc . the issuance of the shares was recorded as debt issuance costs in common stock and additional paid-in capital with no net effect on stockholders ' equity ( deficit ) . during the months of december 2019 and january 2020 , we issued a total of 140,000 shares for aggregate proceeds of $ 0.3 million under the eloc purchase agreement . on june 2 , 2020 , following completion of the private placement , we notified lpc of our decision to terminate the eloc purchase agreement . the termination of the eloc purchase agreement became effective on june 3 , 2020 . 101 contracts eversana agreement on january 10 , 2021 , we announced that we had entered into a master services agreement ( the “ eversana agreement ” ) with eveersana life science services , llc ( “ eversana ” ) pursuant to which eversana will serve as our end-to-end commercial partner , providing us with a full suite of services in connection with the potential launch of lenzilumab . we will pay eversana fees and reimburse it for its expenses in performing the services as established in applicable statements of work . eversana has agreed to defer its fees pending our receipt of an

net interest margin increased to 3.20 % for 2017 , compared with 3.17 % for 2016. in response to the assessment of risk in the loan portfolio , including net loan growth and charge-offs , we recorded a $ 12.9 million provision for loan losses during 2017 , compared to a $ 2.8 million provision during 2016. the increase from 2016 was caused primarily by deterioration in the credit quality of commercial and industrial loans to one borrower . the provision for loan losses represents a charge to earnings necessary to establish an allowance for loan losses that , in management 's evaluation , is adequate to provide coverage for the estimated probable inherent losses on outstanding loans . our allowance for loan losses at december 31 , 2017 was 1.45 % of total loans , compared with 1.24 % of total loans at december 31 , 2016. total noninterest income for 2017 decreased $ 0.2 million , or 1.6 % , compared to 2016 , and comprised 17 % of total revenues . total noninterest expense for 2017 increased $ 0.6 million , or 1.9 % , compared to 2016. our efficiency ratio for 2017 was 64.0 % compared to 66.9 % for 2016. the company 's effective tax rate increased to 75.5 % for 2017 from 33.1 % for 2016. the increase in the effective tax rate is due to a $ 3.6 million write-down of our deferred tax assets resulting from the tax reform act . 38 tangible common equity ( tce ) , a non-gaap measure , is a measure of a company 's capital which is useful in evaluating the quality and adequacy of capital . the ratio of tangible common equity to total tangible assets was 9.84 % as of december 31 , 2017 , compared with 9.34 % at december 31 , 2016. see “ non-gaap financial meas ures ” for a discussion of and reconciliation to the most directly comparable u . s . gaap measure . the following sections provide more details on subjects presented in this overview . critical accounting policies and estimates our consolidated financial statements are prepared based on the application of certain accounting policies , the most significant of which are described in note 1 to our consolidated financial statements for the year ended december 31 , 2017 , which are contained elsewhere in this report . certain of these policies require numerous estimates and strategic or economic assumptions that may prove inaccurate or subject to variation and may materially and adversely affect our reported results and financial position for the current period or future periods . the use of estimates , assumptions , and judgments are necessary when financial assets and liabilities are required to be recorded at , or adjusted to reflect , fair value . assets carried at fair value inherently result in more financial statement volatility . fair values and information used to record valuation adjustments for certain assets and liabilities are either based on quoted market prices or are provided by other independent third-party sources , when available . when such information is not available , management estimates valuation adjustments based upon historical experience and on various other assumptions that we believe to be reasonable under the circumstances . management evaluates our estimates and assumptions on an ongoing basis . changes in underlying factors , assumptions or estimates in any of these areas could have a material impact on our future financial condition and results of operations . we have identified the following accounting policies and estimates that , due to the difficult , subjective or complex judgments and assumptions inherent in those policies and estimates and the potential sensitivity of our financial statements to those judgments and assumptions , are critical to an understanding of our financial condition and results of operations . we believe that the judgments , estimates and assumptions used in the preparation of our financial statements are reasonable and appropriate . allowance for loan losses we record estimated probable inherent credit losses in the loan portfolio as an allowance for loan losses . the methodologies and assumptions for determining the adequacy of the overall allowance for loan losses involve significant judgments to be made by management . some of the more critical judgments supporting our allowance for loan losses include judgments about the credit-worthiness of borrowers , estimated value of underlying collateral , assumptions about cash flow , determination of loss factors for estimating credit losses , and the impact of current events , conditions , and other factors impacting the level of inherent losses . under different conditions or using different assumptions , the actual or estimated credit losses ultimately realized by us may be different from our estimates . in determining the allowance , we estimate losses on individual impaired loans and on groups of loans that are not impaired , where the probable loss can be identified and reasonably estimated . on a quarterly basis , we assess the risk inherent in our loan portfolio based on qualitative and quantitative trends in the portfolio , including the internal risk classification of loans , historical loss rates , changes in the nature and volume of the loan portfolio , industry or borrower concentrations , delinquency trends , detailed reviews of significant loans with identified weaknesses , and the impacts of local , regional , and national economic factors on the quality of the loan portfolio . based on this analysis , we may record a provision for loan losses in order to maintain the allowance at appropriate levels . for a more complete discussion of the methodology employed to calculate the allowance for loan losses , see note 1 to our consolidated financial statements for the year ended december 31 , 2017 , which is included elsewhere in this report . story_separator_special_tag replace_table_token_9_th 2017 compared to 2016 the largest increase between 2016 and 2017 within noninterest expense was related to the new lease of our corporate headquarters which we moved into in the first quarter of 2017. this new lease resulted in an increase in occupancy expense of 35.2 % . data processing and software expense increased from 2016 to 2017 due to an increase in the volume of transactions and implementation of new software in our mortgage banking line of business . the increase in equipment expense from 2016 to 2017 is related to the increasing cost of managing our it network . a decrease in other operating expense of 12.7 % , in 2017 compared to 2016 was primarily due to the fact that we did not have to significantly adjust contingent consideration expense in 2017. our contingent consideration expense is the result of our acquisition of farmington financial group , llc in 2014. as mortgage origination volumes change from our original estimates the resulting increase or decrease in contingent consideration is recorded in other operating expense . our efficiency ratio ( ratio of noninterest expense to the sum of net interest income and noninterest income ) was 64.0 % and 66.9 % for 2017 and 2016 , respectively . the efficiency ratio measures the amount of expense that is incurred to generate a dollar of revenue . the efficiency ratio was positively impacted by growth in our net interest income and noninterest income that outpaced our increases in expenses . for 2017 , our revenue base ( net interest income plus noninterest income ) grew at rate of approximately three times our noninterest expense . 2016 compared to 2015 the largest increase between 2015 and 2016 within noninterest expense was related to employee costs as salaries and employee benefits increased due to our expanded presence in the nashville msa . at december 31 , 2016 , the number of our full-time equivalent employees had increased to 170 as compared to 162 at december 31 , 2015. the increase in equipment expense from 2015 to 2016 is related to the increasing cost of managing our it network . regulatory fees increased 19.2 % in 2016 compared to 2015 primarily as a result of increasing fdic insurance expense . the fdic modified the way insurance assessments are calculated and this change took place in the third quarter of 2016 , increasing our expense compared to prior periods . an increase in other operating expense of 14.2 % , in 2016 compared to 2015 was primarily the result of increasing contingent consideration expenses associated with our mortgage line of business . our efficiency ratio was 66.9 % and 71.0 % for 2016 and 2015 , respectively . the efficiency ratio was positively impacted by growth in our net interest income and noninterest income that outpaced our increases in expenses . for 2016 , our revenue base ( net interest income plus noninterest income ) grew at rate of approximately two times our noninterest expense . 46 income taxes 2017 compared to 2016 we recorded income tax expense of $ 4.6 million and $ 4.5 million in 2017 and 2016 , respectively . our effective income tax rate for 2017 and 2016 was 75.5 % and 33.1 % , respectively . our effective tax rate differs from the statutory tax rate by our investments in municipal securities , company owned life insurance , state tax credits , net of the effect of certain non-deductible expenses and the recognition of excess tax benefits related to stock compensation and the 2017 tax law change . on december 22 , 2017 , the tax reform act was enacted into law . the tax reform act provides for significant changes to the u.s. tax code that impact businesses . effective january 1 , 2018 , the u.s. federal tax rate for corporations was reduced from 35 % to 21 % , for u.s. taxable income and requires a one-time re-measurement of deferred taxes to reflect their value at a lower tax rate of 21 % . accordingly , the company re-measured its deferred tax assets based on the rates at which they are expected to reverse in the future , which is generally 21 % . as a result of the reduction in the corporate income tax rate , the company is required to revalue its net deferred tax assets to account for the future impact of lower corporate tax rates on this deferred amount and record any change in the value of such assets as a one-time , non-cash charge on its income statement . as a result of the tax reform act , we recorded a $ 3.56 million increase in income tax expense for 2017. if we adjust this $ 3.56 million write-down out of income tax expense , our adjusted effective tax rate for 2017 would have been 17.5 % . this lower adjusted effective tax rate is due to lower taxable income and recognition of excess tax benefits related to stock compensation . however , the company is still analyzing certain aspects of the tax reform act and refining its calculations , which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts . we are required to recognize the effect of the tax law changes in the period of enactment , such as re-measuring our deferred tax assets as well as reassessing the net realizability of our deferred tax assets . in december 2017 , the sec staff issued staff accounting bulletin no . 118 , income tax accounting implications of the tax cuts and jobs act ( sab 118 ) , which allows us to record provisional amounts during a measurement period not to extend beyond one year of the enactment date . since the tax reform act was passed late in the fourth quarter of 2017 , and ongoing guidance and accounting interpretation is expected over the next 12 months , we

liquidity risk management liquidity risk is the risk that we will be unable to meet our obligations as they become due because of an inability to liquidate assets or obtain adequate funding . to manage liquidity risk , management has established a comprehensive management process for identifying , measuring , monitoring and controlling liquidity risk . because of its critical importance to the viability of the bank , liquidity risk management is fully integrated into our risk management processes . critical elements of our liquidity risk management include : effective corporate governance consisting of oversight by the board of directors and active involvement by management ; appropriate strategies , policies , procedures , and limits used to manage and mitigate liquidity risk ; comprehensive liquidity risk measurement and monitoring systems ( including assessments of the current and prospective cash flows or sources and uses of funds ) that are commensurate with the complexity and business activities of the bank ; active management of intraday liquidity and collateral ; an appropriately diverse mix of existing and potential future funding sources ; adequate levels of highly liquid marketable securities free of legal , regulatory , or operational impediments , that can be used to meet liquidity needs in stressful situations ; comprehensive contingency funding plans that sufficiently address potential adverse liquidity events and emergency cash flow requirements ; and internal controls and internal audit processes sufficient to determine the adequacy of the institution 's liquidity risk management process . the role of liquidity management is to ensure funds are available to meet depositors ' withdrawal and borrowers ' credit demands while at the same time optimizing financial results within our corporate guidelines . this is accomplished by balancing changes in demand for funds with changes in the supply of those funds . liquidity is provided by short-term liquid assets that can be converted to cash , investment securities available-for-sale , various lines of credit available to us , and the ability to attract funds from external sources , principally deposits .

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.

Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text. ```liquidity risk management liquidity risk is the risk that we will be unable to meet our obligations as they become due because of an inability to liquidate assets or obtain adequate funding . to manage liquidity risk , management has established a comprehensive management process for identifying , measuring , monitoring and controlling liquidity risk . because of its critical importance to the viability of the bank , liquidity risk management is fully integrated into our risk management processes . critical elements of our liquidity risk management include : effective corporate governance consisting of oversight by the board of directors and active involvement by management ; appropriate strategies , policies , procedures , and limits used to manage and mitigate liquidity risk ; comprehensive liquidity risk measurement and monitoring systems ( including assessments of the current and prospective cash flows or sources and uses of funds ) that are commensurate with the complexity and business activities of the bank ; active management of intraday liquidity and collateral ; an appropriately diverse mix of existing and potential future funding sources ; adequate levels of highly liquid marketable securities free of legal , regulatory , or operational impediments , that can be used to meet liquidity needs in stressful situations ; comprehensive contingency funding plans that sufficiently address potential adverse liquidity events and emergency cash flow requirements ; and internal controls and internal audit processes sufficient to determine the adequacy of the institution 's liquidity risk management process . the role of liquidity management is to ensure funds are available to meet depositors ' withdrawal and borrowers ' credit demands while at the same time optimizing financial results within our corporate guidelines . this is accomplished by balancing changes in demand for funds with changes in the supply of those funds . liquidity is provided by short-term liquid assets that can be converted to cash , investment securities available-for-sale , various lines of credit available to us , and the ability to attract funds from external sources , principally deposits . ``` Suspicious Activity Report : net interest margin increased to 3.20 % for 2017 , compared with 3.17 % for 2016. in response to the assessment of risk in the loan portfolio , including net loan growth and charge-offs , we recorded a $ 12.9 million provision for loan losses during 2017 , compared to a $ 2.8 million provision during 2016. the increase from 2016 was caused primarily by deterioration in the credit quality of commercial and industrial loans to one borrower . the provision for loan losses represents a charge to earnings necessary to establish an allowance for loan losses that , in management 's evaluation , is adequate to provide coverage for the estimated probable inherent losses on outstanding loans . our allowance for loan losses at december 31 , 2017 was 1.45 % of total loans , compared with 1.24 % of total loans at december 31 , 2016. total noninterest income for 2017 decreased $ 0.2 million , or 1.6 % , compared to 2016 , and comprised 17 % of total revenues . total noninterest expense for 2017 increased $ 0.6 million , or 1.9 % , compared to 2016. our efficiency ratio for 2017 was 64.0 % compared to 66.9 % for 2016. the company 's effective tax rate increased to 75.5 % for 2017 from 33.1 % for 2016. the increase in the effective tax rate is due to a $ 3.6 million write-down of our deferred tax assets resulting from the tax reform act . 38 tangible common equity ( tce ) , a non-gaap measure , is a measure of a company 's capital which is useful in evaluating the quality and adequacy of capital . the ratio of tangible common equity to total tangible assets was 9.84 % as of december 31 , 2017 , compared with 9.34 % at december 31 , 2016. see “ non-gaap financial meas ures ” for a discussion of and reconciliation to the most directly comparable u . s . gaap measure . the following sections provide more details on subjects presented in this overview . critical accounting policies and estimates our consolidated financial statements are prepared based on the application of certain accounting policies , the most significant of which are described in note 1 to our consolidated financial statements for the year ended december 31 , 2017 , which are contained elsewhere in this report . certain of these policies require numerous estimates and strategic or economic assumptions that may prove inaccurate or subject to variation and may materially and adversely affect our reported results and financial position for the current period or future periods . the use of estimates , assumptions , and judgments are necessary when financial assets and liabilities are required to be recorded at , or adjusted to reflect , fair value . assets carried at fair value inherently result in more financial statement volatility . fair values and information used to record valuation adjustments for certain assets and liabilities are either based on quoted market prices or are provided by other independent third-party sources , when available . when such information is not available , management estimates valuation adjustments based upon historical experience and on various other assumptions that we believe to be reasonable under the circumstances . management evaluates our estimates and assumptions on an ongoing basis . changes in underlying factors , assumptions or estimates in any of these areas could have a material impact on our future financial condition and results of operations . we have identified the following accounting policies and estimates that , due to the difficult , subjective or complex judgments and assumptions inherent in those policies and estimates and the potential sensitivity of our financial statements to those judgments and assumptions , are critical to an understanding of our financial condition and results of operations . we believe that the judgments , estimates and assumptions used in the preparation of our financial statements are reasonable and appropriate . allowance for loan losses we record estimated probable inherent credit losses in the loan portfolio as an allowance for loan losses . the methodologies and assumptions for determining the adequacy of the overall allowance for loan losses involve significant judgments to be made by management . some of the more critical judgments supporting our allowance for loan losses include judgments about the credit-worthiness of borrowers , estimated value of underlying collateral , assumptions about cash flow , determination of loss factors for estimating credit losses , and the impact of current events , conditions , and other factors impacting the level of inherent losses . under different conditions or using different assumptions , the actual or estimated credit losses ultimately realized by us may be different from our estimates . in determining the allowance , we estimate losses on individual impaired loans and on groups of loans that are not impaired , where the probable loss can be identified and reasonably estimated . on a quarterly basis , we assess the risk inherent in our loan portfolio based on qualitative and quantitative trends in the portfolio , including the internal risk classification of loans , historical loss rates , changes in the nature and volume of the loan portfolio , industry or borrower concentrations , delinquency trends , detailed reviews of significant loans with identified weaknesses , and the impacts of local , regional , and national economic factors on the quality of the loan portfolio . based on this analysis , we may record a provision for loan losses in order to maintain the allowance at appropriate levels . for a more complete discussion of the methodology employed to calculate the allowance for loan losses , see note 1 to our consolidated financial statements for the year ended december 31 , 2017 , which is included elsewhere in this report . story_separator_special_tag replace_table_token_9_th 2017 compared to 2016 the largest increase between 2016 and 2017 within noninterest expense was related to the new lease of our corporate headquarters which we moved into in the first quarter of 2017. this new lease resulted in an increase in occupancy expense of 35.2 % . data processing and software expense increased from 2016 to 2017 due to an increase in the volume of transactions and implementation of new software in our mortgage banking line of business . the increase in equipment expense from 2016 to 2017 is related to the increasing cost of managing our it network . a decrease in other operating expense of 12.7 % , in 2017 compared to 2016 was primarily due to the fact that we did not have to significantly adjust contingent consideration expense in 2017. our contingent consideration expense is the result of our acquisition of farmington financial group , llc in 2014. as mortgage origination volumes change from our original estimates the resulting increase or decrease in contingent consideration is recorded in other operating expense . our efficiency ratio ( ratio of noninterest expense to the sum of net interest income and noninterest income ) was 64.0 % and 66.9 % for 2017 and 2016 , respectively . the efficiency ratio measures the amount of expense that is incurred to generate a dollar of revenue . the efficiency ratio was positively impacted by growth in our net interest income and noninterest income that outpaced our increases in expenses . for 2017 , our revenue base ( net interest income plus noninterest income ) grew at rate of approximately three times our noninterest expense . 2016 compared to 2015 the largest increase between 2015 and 2016 within noninterest expense was related to employee costs as salaries and employee benefits increased due to our expanded presence in the nashville msa . at december 31 , 2016 , the number of our full-time equivalent employees had increased to 170 as compared to 162 at december 31 , 2015. the increase in equipment expense from 2015 to 2016 is related to the increasing cost of managing our it network . regulatory fees increased 19.2 % in 2016 compared to 2015 primarily as a result of increasing fdic insurance expense . the fdic modified the way insurance assessments are calculated and this change took place in the third quarter of 2016 , increasing our expense compared to prior periods . an increase in other operating expense of 14.2 % , in 2016 compared to 2015 was primarily the result of increasing contingent consideration expenses associated with our mortgage line of business . our efficiency ratio was 66.9 % and 71.0 % for 2016 and 2015 , respectively . the efficiency ratio was positively impacted by growth in our net interest income and noninterest income that outpaced our increases in expenses . for 2016 , our revenue base ( net interest income plus noninterest income ) grew at rate of approximately two times our noninterest expense . 46 income taxes 2017 compared to 2016 we recorded income tax expense of $ 4.6 million and $ 4.5 million in 2017 and 2016 , respectively . our effective income tax rate for 2017 and 2016 was 75.5 % and 33.1 % , respectively . our effective tax rate differs from the statutory tax rate by our investments in municipal securities , company owned life insurance , state tax credits , net of the effect of certain non-deductible expenses and the recognition of excess tax benefits related to stock compensation and the 2017 tax law change . on december 22 , 2017 , the tax reform act was enacted into law . the tax reform act provides for significant changes to the u.s. tax code that impact businesses . effective january 1 , 2018 , the u.s. federal tax rate for corporations was reduced from 35 % to 21 % , for u.s. taxable income and requires a one-time re-measurement of deferred taxes to reflect their value at a lower tax rate of 21 % . accordingly , the company re-measured its deferred tax assets based on the rates at which they are expected to reverse in the future , which is generally 21 % . as a result of the reduction in the corporate income tax rate , the company is required to revalue its net deferred tax assets to account for the future impact of lower corporate tax rates on this deferred amount and record any change in the value of such assets as a one-time , non-cash charge on its income statement . as a result of the tax reform act , we recorded a $ 3.56 million increase in income tax expense for 2017. if we adjust this $ 3.56 million write-down out of income tax expense , our adjusted effective tax rate for 2017 would have been 17.5 % . this lower adjusted effective tax rate is due to lower taxable income and recognition of excess tax benefits related to stock compensation . however , the company is still analyzing certain aspects of the tax reform act and refining its calculations , which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts . we are required to recognize the effect of the tax law changes in the period of enactment , such as re-measuring our deferred tax assets as well as reassessing the net realizability of our deferred tax assets . in december 2017 , the sec staff issued staff accounting bulletin no . 118 , income tax accounting implications of the tax cuts and jobs act ( sab 118 ) , which allows us to record provisional amounts during a measurement period not to extend beyond one year of the enactment date . since the tax reform act was passed late in the fourth quarter of 2017 , and ongoing guidance and accounting interpretation is expected over the next 12 months , we